Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Going Concern [Policy Text Block]

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As shown in the financial statements, the Company

has incurred losses of

$230,699

 and

$453,240

 for the years ended

December 31, 2017

and

2016,

respectively. In addition, the Company has a negative working capital of

$552,255

and an accumulated deficit of

$41,010,552

at

December 31, 2017.

These conditions raise doubt about the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon its ability to generate sufficient revenue and cash flow to meet its obligations as they come due, which management believes it will be able to do. To date, the Company has funded operations primarily through the issuance of common stock, warrants and options to outside investors and to the Company's management. The Company believes that its operations will generate additional funds and that additional funding from outside investors and the Company's management will continue to be available to the Company when needed. The consolidated financial statements do

not

include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary in the event the Company cannot continue as a going concern.

Consolidation, Policy [Policy Text Block]

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiar

y. All intercompany accounts and transactions have been eliminated.

Cash and Cash Equivalents, Policy [Policy Text Block]

The Company maintains cash in bank deposit accounts which, at times,

may

exceed federally insured limits. The Company has

not

experienced any losses on these accounts.

Use of Estimates, Policy [Policy Text Block]

The preparation of financial statements in conformity with accounting principles generally accepted in the

United States of America 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 revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash Equivalents [Policy Text Block]

The Company considers all highly liquid investments with original maturities of

three

months or less to be cash equivalents.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

The Company sells its products to customers on an open credit basis. The Company

’s trade accounts receivable are due from such customers and are generally uncollateralized. Management closely monitors outstanding accounts receivable and charges off to expense any balances that are determined to be uncollectible or establishes an allowance for doubtful accounts. As of

December 31, 2017

and

2016,

the Company had

no

account receivable. 

Revenue Recognition, Policy [Policy Text Block]

Revenue from hardware product sales is recognized when the product has been shipped and the collection of payment is reasonably assured. Revenue recognized from these sales is net of applicable provisions for refunds, discounts and allowances. Engineering services sales are recognized upon the service having been provided.

The Company had

no

hardware product sales in

2017

or

2016.

Revenue from software sales is recognized when the product has been delivered. Revenue from multiple element contracts (hardware, software and engineering) is allocated to the various elements based on fair value. If objective evidence of fair value is

not

available, revenue from these contracts is deferred until the earlier of when objective evidence of fair value does exist or all elements of the contract have been delivered. Discounts will be applied to each element on a proportionate basis.

No

portion of the revenue will be recognized if the portion of the revenue allocable to delivered elements is subject to forfeiture, refund or other concession.

The Company had

no

software sales in

2017

or

2016.

Revenue is recognized for digital water marking based on a contracted usage schedule on a monthly billing cycle.

Revenue for digital watermarking software usage totaled $-

0

- in

2017

and

2016.

Income Tax, Policy [Policy Text Block]

Income taxes are accounted for under the liability method. Under this method, deferred tax assets and liabilities are recorded based on the temporary differences between the financial statement and the tax bas

is of assets and liabilities and for operating loss carry forwards measured using the enacted tax rates in effect for the year in which the differences are expected to reverse. The Company periodically evaluates the reliability of its net deferred tax assets and records a valuation allowance if, based on the weight of available evidence, it is more likely than

not

that some or all of the deferred tax assets will

not

be realized.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

The foreign assets and liabilities of the Company are translated into U.S. dollars at current exchange rates, and revenue and expenses are translated at average rates of exchange prevailing during the period. The aggregate effect of translation adjustments is immaterial at

December 31, 2017

and

2016.

Earnings Per Share, Policy [Policy Text Block]

Basic loss per common share ("

EPS

") is computed as net loss divided by the weighted-average number of common shares outstanding during the period. Diluted EPS includes the impact of common stock potentially issuable upon the exercise of options and warrants. As of

December 31, 2017

and

2016

there were

no

potentially issuable common stock, except for stock purchase warrants.

New Accounting Pronouncements, Policy [Policy Text Block]

Management does

not

believe that any other recently issued, but

not

yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.