| Restatement Disclosure [Text Block] |
2. RESTATEMENT
OIn
January 1, 2009, we adopted Financial Account Standards
Board (“FASB”) authoritative guidance
establishing accounting and reporting standards for
Noncontrolling Interests in Consolidated Financial
Statements. The standard requires the
recognition of a noncontrolling interest in a subsidiary as
a component of equity in the consolidated financial
statements, separate from the parent’s equity for all
periods presented. In addition, the standard
requires the parent to attribute to the noncontrolling
interest its share of net income and losses of the
subsidiary and to disclose on the face of the consolidated
income statement the amounts of net income and losses
attributed to the noncontrolling interest. The
standard also requires the parent to attribute to the
noncontrolling interest its share of losses even if such
attribution results in a deficit noncontrolling interest
balance within the parent’s equity accounts. We
recently determined that we have not been applying the
guidance correctly in all respects because we have not been
attributing to the noncontrolling interest (held by common
shareholders of our CoreCord Software subsidiary) its share
of the losses or income of the subsidiary and have not been
disclosing such attributed amounts on the face of the
consolidated statements of
operations. Accordingly, we have restated the
consolidated financial statements for the years ended
December 31, 2011 and 2010. Below is a summary
of the impact of the restatement:
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For
the year ended December 31, 2011, we previously
reported net income of $657,000. In
restatement, we attributed losses of $400,000 to
the noncontrolling interest, resulting in net
income attributable to Intelligent Systems
Corporation of $1,057,000 ($0.11 per basic and
diluted share), as restated.
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As
of December 31, 2011, we previously reported
Intelligent Systems Corporation
stockholders’ equity of $5,531,000 and
noncontrolling interest equity of $1,516,000. In
restatement, we reduced Intelligent Systems
Corporation stockholders’ accumulated
deficit by $1,619,000 (representing the
accumulated losses attributed to the
noncontrolling interest) and reduced the
noncontrolling interest equity by the same
amount. After restatement, at December
31, 2011, Intelligent Systems Corporation
stockholders’ equity increased to
$7,150,000 and the noncontrolling interest became
a deficit of $103,000. Total
stockholders’ equity was unchanged at
$7,047,000.
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For
the year ended December 31, 2010, we previously
reported net loss of $187,000. In restatement, we
attributed losses of $465,000 to the
noncontrolling interest, resulting in net income
attributable to Intelligent Systems Corporation
of $278,000 ($0.03 per basic and diluted share),
as restated.
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As
of December 31, 2010, we previously reported
Intelligent Systems Corporation
stockholders’ equity of $4,945,000 and
noncontrolling interest equity of $1,516,000. In
restatement, we reduced Intelligent Systems
Corporation stockholders’ accumulated
deficit by $1,219,000 (representing the
accumulated losses attributed to the
noncontrolling interest) and reduced the
noncontrolling interest equity by the same
amount. After restatement, at December 31, 2010,
Intelligent Systems Corporation
stockholders’ equity increased to
$6,164,000 and the noncontrolling interest
decreased to $297,000. Total
stockholders’ equity was unchanged at
$6,461,000.
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As
of January 1, 2010, we previously reported
Intelligent Systems Corporation
stockholders’ equity of $5,093,000 and
noncontrolling interest equity of
$1,516,000. In restatement, we reduced
Intelligent Systems Corporation
stockholders’ accumulated deficit by
$754,000 (representing the accumulated losses
attributed to the noncontrolling interest) and
reduced the noncontrolling interest equity by the
same amount. After restatement, at January 1,
2010, Intelligent Systems Corporation
stockholders’ equity increased to
$5,847,000 and the noncontrolling interest
decreased to $762,000.
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