Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision (benefit) for income taxes for the years ended December 31, 2016 and 2015 consisted of the following:

	2016		2015
Current
Federal	$	—	$	—
State		—		—
Foreign		2,800		3,700
	$	2,800	$	3,700
Deferred
Federal	$	—	$	—
State		—		—
Foreign		—		—
		—		—
Total	$	2,800	$	3,700

Schedule of Effective Income Tax Rate Reconciliation

The following table summarizes the differences between income tax expense and the amount computed applying the federal income tax rate of 34% for the years ended December 31, 2016 and 2015:

	2016			2015
Federal income tax (benefit) at statutory rate	$	(629,000	)	$	(1,491,600	)
State income tax (benefit) at statutory rate		(3,700	)		(8,100	)
Foreign tax rate differential		(300	)		700
Compensation from exercise of non-qualified stock options and restricted stock awards		2,100			3,400
SBC – NQ cancellations		163,100			23,500
Change in valuation allowance		434,000			1,470,000
Warrant liability		(10,000	)		(65,100	)
Meals and entertainment (50%)		2,500			7,700
Tax rate changes		(800	)		(2,500	)
Other items		44,900			65,700
Provision (benefit) for income tax	$	2,800		$	3,700

Schedule of Deferred Tax Assets and Liabilities

The following table sets forth those differences as of December 31, 2016 and 2015:

	2016			2015
Net operating loss carryforwards	$	21,808,000		$	21,033,000
Tax credit carryforwards		1,047,000			1,047,000
Compensation expense – non-qualified stock options		620,000			730,000
Deferred revenue and maintenance service contracts		1,181,000			1,344,400
Warrant liability		-			1,000
Reserves and other		73,000			157,000
Total deferred tax assets		24,729,000			24,312,000
Deferred tax liability – depreciation, amortization and capitalized software		(7,000	)		(24,000	)
Net deferred tax asset		24,722,000			24,288,000
Valuation allowance		(24,722,000	)		(24,288,000	)
Net deferred tax asset	$	—		$	—