2019 Q1 Form 10-K Financial Statement

#000149523119000030 Filed on March 28, 2019

View on sec.gov

Income Statement

Concept 2019 Q1 2018 Q1 2018
Revenue $4.794M $3.896M $20.10M
YoY Change 23.03% -19.4% -17.75%
Cost Of Revenue $2.099M $2.163M $9.042M
YoY Change -2.95% -7.44% -21.95%
Gross Profit $2.694M $1.733M $11.06M
YoY Change 55.45% -42.36% -13.96%
Gross Profit Margin 56.21% 44.48% 55.01%
Selling, General & Admin $3.970M $3.371M $15.17M
YoY Change 17.77% -30.3% -9.78%
% of Gross Profit 147.33% 194.47% 137.18%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $436.2K $265.5K $1.298M
YoY Change 64.33% -26.79% -14.4%
% of Gross Profit 16.19% 15.32% 11.74%
Operating Expenses $6.505M $5.799M $25.51M
YoY Change 12.17% -23.04% -14.73%
Operating Profit -$1.711M -$1.903M -$5.409M
YoY Change -10.06% -29.55% -1.23%
Interest Expense $128.5K $21.31K $269.5K
YoY Change 502.81% 24.8% 314.89%
% of Operating Profit
Other Income/Expense, Net -$119.1K -$142.2K -$309.4K
YoY Change -16.25% 676.25% -3723.72%
Pretax Income -$1.830M -$2.050M -$5.720M
YoY Change -10.73% -24.63% 4.57%
Income Tax
% Of Pretax Income
Net Earnings -$1.831M -$2.045M -$5.718M
YoY Change -10.49% -24.79% 4.59%
Net Earnings / Revenue -38.19% -52.49% -28.45%
Basic Earnings Per Share
Diluted Earnings Per Share -$145.5K -$353.4K -$669.8K
COMMON SHARES
Basic Shares Outstanding 12.82M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q1 2018 Q1 2018
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.320M $2.760M $1.970M
YoY Change -15.94% -36.7% -49.62%
Cash & Equivalents $2.315M $2.760M $1.970M
Short-Term Investments
Other Short-Term Assets $27.40K $39.29K $570.0K
YoY Change -30.27% 270.69% 42.5%
Inventory
Prepaid Expenses $367.2K $672.3K
Receivables $6.066M $3.739M $7.070M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $8.776M $6.760M $9.610M
YoY Change 29.81% -25.86% 20.88%
LONG-TERM ASSETS
Property, Plant & Equipment $236.1K $369.3K $270.0K
YoY Change -36.06% -9.69% -6.9%
Goodwill $8.317M $3.605M
YoY Change 130.72% 0.0%
Intangibles $2.827M $532.1K
YoY Change 431.29% -62.33%
Long-Term Investments
YoY Change
Other Assets $140.0K $150.0K $140.0K
YoY Change -6.67% 7.14% -6.67%
Total Long-Term Assets $13.56M $5.668M $13.31M
YoY Change 139.25% -15.41% 134.33%
TOTAL ASSETS
Total Short-Term Assets $8.776M $6.760M $9.610M
Total Long-Term Assets $13.56M $5.668M $13.31M
Total Assets $22.34M $12.43M $22.92M
YoY Change 79.72% -21.44% 68.16%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.249M $1.261M $2.620M
YoY Change 78.42% -20.14% 48.86%
Accrued Expenses $2.557M $1.711M $1.970M
YoY Change 49.42% -7.71% 23.9%
Deferred Revenue $5.465M $3.262M
YoY Change 67.54%
Short-Term Debt $1.340M $730.0K $1.530M
YoY Change 83.56% 206.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $15.73M $8.295M $15.70M
YoY Change 89.58% 9.16% 103.63%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $440.0K $0.00
YoY Change -45.68% -100.0%
Total Long-Term Liabilities $0.00 $440.0K $0.00
YoY Change -100.0% -45.68% -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $15.73M $8.295M $15.70M
Total Long-Term Liabilities $0.00 $440.0K $0.00
Total Liabilities $15.73M $8.733M $15.70M
YoY Change 80.13% 3.91% 88.48%
SHAREHOLDERS EQUITY
Retained Earnings -$54.93M -$49.42M
YoY Change 11.14% 10.99%
Common Stock $1.281K $582.00
YoY Change 120.1% 2.65%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $6.611M $3.696M $7.220M
YoY Change
Total Liabilities & Shareholders Equity $22.34M $12.43M $22.92M
YoY Change 79.72% -21.44% 68.16%

Cashflow Statement

Concept 2019 Q1 2018 Q1 2018
OPERATING ACTIVITIES
Net Income -$1.831M -$2.045M -$5.718M
YoY Change -10.49% -24.79% 4.59%
Depreciation, Depletion And Amortization $436.2K $265.5K $1.298M
YoY Change 64.33% -26.79% -14.4%
Cash From Operating Activities $885.2K -$1.117M -$5.582M
YoY Change -179.23% -26.69% 165.82%
INVESTING ACTIVITIES
Capital Expenditures $2.383K $140.2K $170.2K
YoY Change -98.3% 2571.36% 499.1%
Acquisitions -$11.27K
YoY Change
Other Investing Activities $0.00 $0.00 $20.00K
YoY Change -100.0% 100.0%
Cash From Investing Activities -$346.2K -$259.2K -$908.6K
YoY Change 33.54% 282.08% 379.01%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$192.2K $230.0K $4.553M
YoY Change -183.57% -12042.52% 1739.12%
NET CHANGE
Cash From Operating Activities $885.2K -$1.117M -$5.582M
Cash From Investing Activities -$346.2K -$259.2K -$908.6K
Cash From Financing Activities -$192.2K $230.0K $4.553M
Net Change In Cash $346.8K -$1.147M -$1.938M
YoY Change -130.25% -28.07% -5.08%
FREE CASH FLOW
Cash From Operating Activities $885.2K -$1.117M -$5.582M
Capital Expenditures $2.383K $140.2K $170.2K
Free Cash Flow $882.8K -$1.257M -$5.753M
YoY Change -170.21% -17.78% 170.27%

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0
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CY2018 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense Other
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6521469 USD
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3149949 USD
CY2017 us-gaap Gain Loss On Sale Of Property Plant Equipment
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8757 USD
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-156 USD
CY2017 us-gaap General And Administrative Expense
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CY2018 us-gaap General And Administrative Expense
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CY2017Q4 us-gaap Goodwill
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3604720 USD
CY2018Q4 us-gaap Goodwill
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8316722 USD
CY2018 us-gaap Goodwill Acquired During Period
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4712002 USD
CY2017 us-gaap Goodwill Impairment Loss
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0 USD
CY2018 us-gaap Goodwill Impairment Loss
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0 USD
CY2017 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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6300000 USD
CY2017 us-gaap Increase Decrease In Accounts Payable
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318452 USD
CY2018 us-gaap Increase Decrease In Accounts Payable
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710446 USD
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-58368 USD
CY2018 us-gaap Increase Decrease In Accounts Receivable
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280420 USD
CY2017 us-gaap Increase Decrease In Accrued Liabilities
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730179 USD
CY2018 us-gaap Increase Decrease In Accrued Liabilities
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-1784084 USD
CY2017 us-gaap Increase Decrease In Deferred Revenue
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-34291 USD
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-45126 USD
CY2017 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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10596 USD
CY2018 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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-14784 USD
CY2017 us-gaap Increase Decrease In Security Deposits
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13098 USD
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5464 USD
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667909 USD
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3149949 USD
CY2017 us-gaap Interest Expense
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64950 USD
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InterestExpense
269473 USD
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37898 USD
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150900 USD
CY2017 us-gaap Issuance Of Stock And Warrants For Services Or Claims
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181995 USD
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125000 USD
CY2018 us-gaap Lessee Operating Sublease Option To Extend
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one additional year until April 30, 2020
CY2017Q4 us-gaap Liabilities
Liabilities
8333718 USD
CY2018Q4 us-gaap Liabilities
Liabilities
15699762 USD
CY2017Q4 us-gaap Liabilities And Stockholders Equity
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13627303 USD
CY2018Q4 us-gaap Liabilities And Stockholders Equity
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22918077 USD
CY2017Q4 us-gaap Liabilities Current
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7706531 USD
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15699762 USD
CY2017Q4 us-gaap Lines Of Credit Current
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500550 USD
CY2018 us-gaap Loss Contingency Undiscounted Amount Of Insurance Related Assessment Liability
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500000 USD
CY2017 us-gaap Net Cash Provided By Used In Financing Activities
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247548 USD
CY2018 us-gaap Net Cash Provided By Used In Financing Activities
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4552695 USD
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-189686 USD
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CY2017 us-gaap Net Cash Provided By Used In Operating Activities
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-2100069 USD
CY2018 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-5582480 USD
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-5467699 USD
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-5718407 USD
CY2018 us-gaap New Accounting Pronouncement Or Change In Accounting Principle Effect Of Change On Net Income
NewAccountingPronouncementOrChangeInAccountingPrincipleEffectOfChangeOnNetIncome
-98822 USD
CY2017 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
8537 USD
CY2018 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-309357 USD
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29913885 USD
CY2018 us-gaap Operating Expenses
OperatingExpenses
25508745 USD
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OperatingIncomeLoss
-5476236 USD
CY2018 us-gaap Operating Income Loss
OperatingIncomeLoss
-5409050 USD
CY2018Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
500000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
248236 USD
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OperatingLeasesFutureMinimumPaymentsDueCurrent
248236 USD
CY2017 us-gaap Other Asset Impairment Charges
OtherAssetImpairmentCharges
0 USD
CY2018 us-gaap Other Asset Impairment Charges
OtherAssetImpairmentCharges
0 USD
CY2017Q4 us-gaap Other Assets Current
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9140 USD
CY2018Q4 us-gaap Other Assets Current
OtherAssetsCurrent
39203 USD
CY2017 us-gaap Other Nonoperating Income Expense
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34218 USD
CY2018 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-28090 USD
CY2017 us-gaap Payment Of Financing And Stock Issuance Costs
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12353 USD
CY2018 us-gaap Payment Of Financing And Stock Issuance Costs
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712345 USD
CY2018 us-gaap Payments For Operating Activities
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5582480 USD
CY2017 us-gaap Payments For Previous Acquisition
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266898 USD
CY2018 us-gaap Payments For Previous Acquisition
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120930 USD
CY2017 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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0 USD
CY2018 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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-11266 USD
CY2017 us-gaap Payments To Acquire Property Plant And Equipment
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28405 USD
CY2018 us-gaap Payments To Acquire Property Plant And Equipment
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170175 USD
CY2017 us-gaap Payments To Develop Software
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174379 USD
CY2018 us-gaap Payments To Develop Software
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755164 USD
CY2017Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
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0.0001
CY2018Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
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0.0001
CY2018Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2017 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
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26249 USD
CY2018Q4 us-gaap Prepaid Expense Current
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527968 USD
CY2017Q4 us-gaap Preferred Stock Shares Authorized
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10000000 shares
CY2018Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2018Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2017Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2018Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2017Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2018Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2017Q4 us-gaap Preferred Stock Value
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0 USD
CY2018Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2017Q4 us-gaap Prepaid Expense Current
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389104 USD
CY2017 us-gaap Share Based Compensation
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635427 USD
CY2018 us-gaap Share Based Compensation
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580693 USD
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Expirations In Period
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63013 shares
CY2018 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
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17253 USD
CY2017 us-gaap Proceeds From Repayments Of Lines Of Credit
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500550 USD
CY2018 us-gaap Proceeds From Repayments Of Lines Of Credit
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-298283 USD
CY2017Q4 us-gaap Property Plant And Equipment Gross
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1076072 USD
CY2018Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
1270801 USD
CY2017Q4 us-gaap Property Plant And Equipment Net
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286043 USD
CY2018Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
272239 USD
CY2017 us-gaap Provision For Doubtful Accounts
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40302 USD
CY2018 us-gaap Provision For Doubtful Accounts
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93378 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
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-47277420 USD
CY2018Q4 us-gaap Retained Earnings Accumulated Deficit
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-53094649 USD
CY2017 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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24437649 USD
CY2018 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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20099695 USD
CY2017 us-gaap Revenues
Revenues
24437649 USD
CY2018 us-gaap Revenues
Revenues
20099695 USD
CY2017Q4 us-gaap Security Deposit
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148638 USD
CY2018Q4 us-gaap Security Deposit
SecurityDeposit
143174 USD
CY2017 us-gaap Selling And Marketing Expense
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7593197 USD
CY2018 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
6484320 USD
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
150 USD
CY2018 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice
6.29
CY2017 us-gaap Stock Issued During Period Shares Share Based Compensation Gross
StockIssuedDuringPeriodSharesShareBasedCompensationGross
12274 shares
CY2016 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
0 shares
CY2017 us-gaap Stock Issued During Period Value Acquisitions
StockIssuedDuringPeriodValueAcquisitions
928041 USD
CY2018 us-gaap Stock Issued During Period Value Acquisitions
StockIssuedDuringPeriodValueAcquisitions
1896783 USD
CY2017 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
26249 USD
CY2018 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
17253 USD
CY2017 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
155000 USD
CY2018 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
125000 USD
CY2017 us-gaap Stock Option Plan Expense
StockOptionPlanExpense
618204 USD
CY2018 us-gaap Stock Option Plan Expense
StockOptionPlanExpense
390760 USD
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
8987863 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
5293585 USD
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
7218315 USD
CY2017 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
5674901 shares
CY2018 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
8541725 shares
CY2018 us-gaap Advertising Cost Policy Expensed Advertising Cost
AdvertisingCostPolicyExpensedAdvertisingCost
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Advertising Costs</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Advertising costs are charged to expense as they are incurred, including payments to content creators to promote the Company. Advertising costs charged to operations for the </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">twelve months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;"> were approximately </font><font style="font-family:inherit;font-size:10pt;">$470,000</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$324,000</font><font style="font-family:inherit;font-size:10pt;">, respectively. Advertising costs are included in sales and marketing expense in the accompanying consolidated statements of operations.</font></div></div>
CY2018 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Concentrations of credit risk with respect to accounts receivable were typically limited because a large number of geographically diverse customers make up the Company&#8217;s customer base, thus spreading the trade credit risk. However, with the Company's acquisition of TapInfluence, it has increased credit exposure on certain customers who carry significant credit balances related to their Marketplace Spend. The Company controls credit risk through credit approvals, credit limits and monitoring procedures. The Company performs credit evaluations of its customers, but generally does not require collateral to support accounts receivable. The Company had </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> customers that together accounted for </font><font style="font-family:inherit;font-size:10pt;">36%</font><font style="font-family:inherit;font-size:10pt;"> of total accounts receivable at </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">no</font><font style="font-family:inherit;font-size:10pt;"> customer that accounted for </font><font style="font-family:inherit;font-size:10pt;">more than 10%</font><font style="font-family:inherit;font-size:10pt;"> at </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;">. The Company had </font><font style="font-family:inherit;font-size:10pt;">no</font><font style="font-family:inherit;font-size:10pt;"> customer that accounted for </font><font style="font-family:inherit;font-size:10pt;">more than 10%</font><font style="font-family:inherit;font-size:10pt;"> of its revenue during either of the </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">twelve months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;"> or </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;">. </font></div></div>
CY2018 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Reclassifications</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain items have been reclassified in the 2017 financial statements to conform to the 2018 presentation. In the Statements of Cash Flows, the Company has reclassified payments on acquisition liabilities as financing activities rather than as a change in accrued expenses in operating activities. </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Use of Estimates</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"></font></div></div>

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