| Schedule of Allowance for Doubtful Accounts |
The movement in the allowance for doubtful
accounts for the years ended December 31, 2018 and 2017 was as follows:
| |
|
December 31, 2018 |
|
|
December 31, 2017 |
|
| Beginning balance |
|
$ |
185,000 |
|
|
$ |
156,000 |
|
| Provision |
|
|
724,000 |
|
|
|
410,000 |
|
| Write-offs |
|
|
(720,000 |
) |
|
|
(381,000 |
) |
| Ending balance |
|
$ |
189,000 |
|
|
$ |
185,000 |
|
|
| Schedule of Prior Adjustments for Implements to New Revenue Recognition |
The following table
reconciles the balances as presented for the year ended December 31, 2018 to the balances prior to the adjustments made to implement
the new revenue recognition standard for the same period:
| |
|
Year Ended December 31, 2018 |
|
| |
|
As Presented |
|
|
Impact of New Revenue
Standard
|
|
|
Previous
Revenue
Standard
|
|
| NET REVENUE |
|
$ |
50,545,781 |
|
|
$ |
40,934 |
|
|
$ |
50,504,847 |
|
| OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
| Direct operating costs |
|
|
31,252,535 |
|
|
|
- |
|
|
|
31,252,535 |
|
| Selling and marketing |
|
|
1,611,982 |
|
|
|
7,986 |
|
|
|
1,603,996 |
|
| General and administrative |
|
|
16,264,473 |
|
|
|
- |
|
|
|
16,264,473 |
|
| Research and development |
|
|
1,029,510 |
|
|
|
- |
|
|
|
1,029,510 |
|
| Change in contingent consideration |
|
|
73,271 |
|
|
|
- |
|
|
|
73,271 |
|
| Depreciation and amortization |
|
|
2,853,827 |
|
|
|
- |
|
|
|
2,853,827 |
|
| Total operating expenses |
|
|
53,085,598 |
|
|
|
7,986 |
|
|
|
53,077,612 |
|
| OPERATING (LOSS) INCOME |
|
|
(2,539,817 |
) |
|
|
32,948 |
|
|
|
(2,572,765 |
) |
| OTHER: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
|
100,788 |
|
|
|
- |
|
|
|
100,788 |
|
| Interest expense |
|
|
(351,168 |
) |
|
|
- |
|
|
|
(351,168 |
) |
| Other income - net |
|
|
494,332 |
|
|
|
- |
|
|
|
494,332 |
|
| (LOSS) INCOME BEFORE INCOME TAXES |
|
|
(2,295,865 |
) |
|
|
32,948 |
|
|
|
(2,328,813 |
) |
| Income tax benefit |
|
|
(157,385 |
) |
|
|
- |
|
|
|
(157,385 |
) |
| NET (LOSS) INCOME |
|
$ |
(2,138,480 |
) |
|
$ |
32,948 |
|
|
$ |
(2,171,428 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred stock dividend |
|
|
4,823,987 |
|
|
|
- |
|
|
|
4,823,987 |
|
| NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS |
|
$ |
(6,962,467 |
) |
|
$ |
32,948 |
|
|
$ |
(6,995,415 |
) |
| Loss per common share |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted loss per share |
|
$ |
(0.59 |
) |
|
$ |
0.00 |
|
|
$ |
(0.60 |
) |
|