Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

 

Throughout this report, the terms “we”, “us”, “ours”, “ISC” and “company” refer to Intelligent Systems Corporation, including its wholly-owned and majority-owned subsidiaries. The unaudited Consolidated Financial Statements presented in this Form

10

-Q have been prepared in accordance with accounting principles generally accepted in the United States applicable to interim financial statements. Accordingly, they do

not

include all of the information and notes required for complete financial statements. In the opinion of ISC management, these Consolidated Financial Statements contain all adjustments (which comprise only normal and recurring accruals) necessary to present fairly the financial position and results of operations as of and for the

three

and

six

month periods ended

June 30, 2019

and

2018.

The interim results for the

three

and

six

months ended

June 30, 2019

are

not

necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with our Consolidated Financial Statements and notes thereto for the fiscal year ended

December 31, 2018,

as filed in our Annual Report on Form

10

-K.

There have been

no

material changes in the Company’s significant accounting policies, other than the adoption of accounting standards update (“ASU”)

2016

-

02,

Leases (Topic

842

) related to the accounting for leases, as of

January 1, 2019

as described below, as compared to the significant accounting policies described in the Company’s Annual Report on Form

10

-K for the year ended

December 31, 2018.

New Accounting Pronouncements, Policy [Policy Text Block]

Accounting Pronouncements Adopted

In

February 2016,

the FASB issued ASU

2016

-

02,

Leases (Topic

842

) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under prior accounting guidance. ASU

2016

-

02

requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. We adopted ASU

2016

-

02

as of

January 1, 2019

utilizing the modified retrospective transition method at the beginning of the

first

quarter of

2019.

We have elected the package of practical expedients, which allows the Company

not

to reassess (

1

) whether any expired or existing contracts as of the adoption date are or contain a lease, (

2

) lease classification for any expired or existing leases as of the adoption date, (

3

) initial direct costs for any existing leases as of the adoption date and (

4

) the application of hindsight when determining lease term and assessing impairment of right-of-use assets. The adoption of the new standard on

January 1, 2019,

resulting in a lease obligation and related right-of-use asset of approximately

$1,258,000

.

The impact on the statement of operations was

not

material.

We have considered all other recently issued accounting pronouncements and do

not

believe the adoption of such pronouncements will have a material impact on our Consolidated Financial Statements.