Note 1 - Summary of Significant Accounting Policies	9 Months Ended
Sep. 30, 2020
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 nine month periods ended September 30, 2020 and 2019. The interim results for the three and nine months ended September 30, 2020 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, 2019, as filed in our Annual Report on Form 10 -K. There have been no material changes in the Company's significant accounting policies as compared to the significant accounting policies described in the Company's Annual Report on Form 10 -K for the year ended December 31, 2019. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016 - 13, Measurement of Credit Losses on Financial Instruments, to require financial assets carried at amortized cost to be presented at the net amount expected to be collected based on historical experience, current conditions and forecasts. Subsequently, the FASB issued ASU No. 2018 - 19, Codification Improvements to Topic 326, to clarify that receivables arising from operating leases are within the scope of lease accounting standards. Further, the FASB issued ASU No. 2019 - 04, ASU No. 2019 - 05, ASU 2019 - 10 and ASU 2019 - 11 to provide additional guidance on the credit losses standard. The ASUs are effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. Adoption of the ASUs is on a modified retrospective basis. We plan to adopt the ASUs on January 1, 2023. The ASUs are currently not expected to have a material impact on our Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019 - 12, Income Taxes (Topic 740 ): Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Topic 740 related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill and allocating consolidated income taxes to separate financial statements of entities not subject to income tax. This standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. We plan to adopt this standard in the first quarter of 2021 and the adoption is not expected to have a material impact on the Consolidated Financial Statements. In January 2020, the FASB issued ASU 2020 - 01, Investments-Equity Securities (Topic 321 ), Investments-Equity Method and Joint Ventures (Topic 323 ), and Derivatives and Hedging (Topic 815 ): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (“ASU 2020 - 01” ), which clarifies certain interactions between the guidance to account for certain equity securities, investments under the equity method of accounting and forward contracts or purchased options to purchase securities under Topic 321, Topic 323 and Topic 815. For public entities, ASU 2020 - 01 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020. We are currently assessing the impact that the adoption of ASU 2020 - 01 will have on our Consolidated Financial Statements. 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.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

-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

nine

month periods ended

September 30, 2020

and

2019.

The interim results for the

three

and

nine

months ended

September 30, 2020

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, 2019,

as filed in our Annual Report on Form

-K.

There have been

material changes in the Company's significant accounting policies as compared to the significant accounting policies described in the Company's Annual Report on Form

-K for the year ended

December 31, 2019.

Recent Accounting Pronouncements

Not

Yet Adopted

June 2016,

the FASB issued ASU

No.

2016

13,

Measurement of Credit Losses on Financial Instruments, to require financial assets carried at amortized cost to be presented at the net amount expected to be collected based on historical experience, current conditions and forecasts. Subsequently, the FASB issued ASU

No.

2018

19,

Codification Improvements to Topic

326,

to clarify that receivables arising from operating leases are within the scope of lease accounting standards. Further, the FASB issued ASU

No.

2019

04,

ASU

No.

2019

05,

ASU

2019

and ASU

2019

to provide additional guidance on the credit losses standard. The ASUs are effective for interim and annual periods beginning after

December 15, 2022,

with early adoption permitted. Adoption of the ASUs is on a modified retrospective basis. We plan to adopt the ASUs on

January 1, 2023.

The ASUs are currently

not

expected to have a material impact on our Consolidated Financial Statements.

December 2019,

the FASB issued ASU

2019

12,

Income Taxes (Topic

740

): Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Topic

740

related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill and allocating consolidated income taxes to separate financial statements of entities

not

subject to income tax. This standard is effective for fiscal years beginning after

December 15, 2020,

with early adoption permitted. We plan to adopt this standard in the

first

quarter of

2021

and the adoption is

not

expected to have a material impact on the Consolidated Financial Statements.

January 2020,

the FASB issued ASU

2020

01,

Investments-Equity Securities (Topic

321

), Investments-Equity Method and Joint Ventures (Topic

323

), and Derivatives and Hedging (Topic

815

): Clarifying the Interactions between Topic

321,

Topic

323,

and Topic

815

(“ASU

2020

01”

), which clarifies certain interactions between the guidance to account for certain equity securities, investments under the equity method of accounting and forward contracts or purchased options to purchase securities under Topic

321,

Topic

323

and Topic

815.

For public entities, ASU

2020

is effective for fiscal years, including interim periods within those fiscal years, beginning after

December 15, 2020.

We are currently assessing the impact that the adoption of ASU

2020

will have on our Consolidated Financial Statements.

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.