| Schedule of Changes in Allowance for Credit Losses |
Changes
in the allowance for credit losses for the periods ended September 30, 2026 and 2025 were as follows:
Schedule of Changes
in Allowance for Credit Losses
| As of December 31, 2025 | |
$ | (39,514 | ) |
| (Provisions) Reductions charged to operating results | |
| (20,487 | ) |
| Account write-offs | |
| 18,000 | |
| As of March 31, 2026 | |
$ | (42,001 | ) |
| (Provisions) Reductions charged to operating results | |
| 10,663 | |
| Account write-off recovery | |
| (5,610 | ) |
| As of June 30, 2026 | |
$ | (36,948 | ) |
| (Provisions) Reductions charged to operating results | |
| (310 | ) |
| As of September 30, 2026 | |
$ | (37,258 | ) |
| As of December 31, 2024 | |
$ | (55,907 | ) |
| (Provisions) Reductions charged to operating results | |
| (44,189 | ) |
| Account write-offs | |
| 15,063 | |
| As of March 31, 2025 | |
$ | (85,033 | ) |
| (Provisions) Reductions charged to operating results | |
| 11,223 | |
| Account write-offs | |
| 2,293 | |
| As of June 30, 2025 | |
$ | (71,517 | ) |
| (Provisions) Reductions charged to operating results | |
| (42,010 | ) |
| Account write-offs | |
| 15,456 | |
| As of September 30, 2025 | |
$ | (98,071 | ) |
|
| Schedule of Changes in Contract Assets and Liabilities |
The
following tables present changes in our accounts receivable and contract assets during the nine months ended September 30, 2026 and
2025:
Schedule
of Changes in Contract Assets and Liabilities
| | |
Balance at
Beginning of
Period | | |
Billings | | |
Payments Received | | |
Balance at
End of Period | |
| Nine months ended September 30, 2026 | |
| | | |
| | | |
| | | |
| | |
| Accounts receivable | |
$ | 1,239,802 | | |
$ | 12,725,367 | | |
$ | (13,084,305 | ) | |
$ | 880,864 | |
| | |
| | | |
| | | |
| | | |
| | |
| Nine months ended September 30, 2025 | |
| | | |
| | | |
| | | |
| | |
| Accounts receivable | |
$ | 1,111,504 | | |
$ | 13,077,000 | | |
$ | (13,237,014 | ) | |
$ | 951,490 | |
| | |
Balance at
Beginning of
Period | | |
Revenue
Recognized in
Advance of
Billings | | |
Billings | | |
Balance at End of Period | |
| Nine months ended September 30, 2026 | |
| | | |
| | | |
| | | |
| | |
| Accounts receivable, unbilled | |
$ | 909,574 | | |
$ | 3,538,759 | | |
$ | (3,598,074 | ) | |
$ | 850,259 | |
| | |
| | | |
| | | |
| | | |
| | |
| Nine months ended September 30, 2025 | |
| | | |
| | | |
| | | |
| | |
| Accounts receivable, unbilled | |
$ | 1,296,524 | | |
$ | 3,502,308 | | |
$ | (4,083,059 | ) | |
$ | 715,773 | |
The
following table presents changes in our contract liabilities during the nine months ended September 30, 2026 and 2025:
| | |
Balance at | | |
| | |
| | |
Balance at | |
| | |
Beginning | | |
| | |
Recognized | | |
End of | |
| | |
of Period | | |
Billings | | |
Revenue | | |
Period | |
| Nine months ended September 30, 2026 | |
| | | |
| | | |
| | | |
| | |
| Contract liabilities: Deferred revenue | |
$ | 3,371,263 | | |
$ | 6,533,552 | | |
$ | (5,789,084 | ) | |
$ | 4,115,731 | |
| | |
| | | |
| | | |
| | | |
| | |
| Nine months ended September 30, 2025 | |
| | | |
| | | |
| | | |
| | |
| Contract liabilities: Deferred revenue | |
$ | 3,411,852 | | |
$ | 5,961,069 | | |
$ | (5,737,273 | ) | |
$ | 3,635,648 | |
|
| Schedule of Information by Operating Segment |
Information
by operating segment is as follows:
Schedule
of Information by Operating Segment
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| | |
For the three months ended
September 30, | | |
For the nine months ended
September 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Revenues | |
| | |
| | |
| | |
| |
| Software | |
$ | 2,034,499 | | |
$ | 2,017,087 | | |
$ | 5,988,765 | | |
$ | 5,978,925 | |
| Document Services | |
| 1,993,188 | | |
| 1,984,358 | | |
| 5,894,581 | | |
| 6,280,678 | |
| Total revenues | |
$ | 4,027,687 | | |
$ | 4,001,445 | | |
$ | 11,883,346 | | |
$ | 12,259,603 | |
| | |
| | | |
| | | |
| | | |
| | |
| Cost of revenues | |
| | | |
| | | |
| | | |
| | |
| Software | |
$ | 327,527 | | |
$ | 271,576 | | |
$ | 922,942 | | |
$ | 818,670 | |
| Document Services | |
| 996,767 | | |
| 1,161,965 | | |
| 3,155,965 | | |
| 3,410,131 | |
| Total cost of revenues | |
$ | 1,324,294 | | |
$ | 1,433,541 | | |
$ | 4,078,907 | | |
$ | 4,228,801 | |
| | |
| | | |
| | | |
| | | |
| | |
| Gross profit | |
| | | |
| | | |
| | | |
| | |
| Software | |
$ | 1,706,972 | | |
$ | 1,745,511 | | |
$ | 5,065,823 | | |
$ | 5,160,255 | |
| Document Services | |
| 996,421 | | |
| 822,393 | | |
| 2,738,616 | | |
| 2,870,547 | |
| Total gross profit | |
$ | 2,703,393 | | |
$ | 2,567,904 | | |
$ | 7,804,439 | | |
$ | 8,030,802 | |
| | |
| | | |
| | | |
| | | |
| | |
| Capital additions, net | |
| | | |
| | | |
| | | |
| | |
| Software | |
$ | 96,455 | | |
$ | 141,991 | | |
$ | 388,180 | | |
$ | 376,011 | |
| Document Services | |
| 40,196 | | |
| 63,973 | | |
| 101,396 | | |
| 301,857 | |
| Total capital additions, net | |
$ | 136,651 | | |
$ | 205,964 | | |
$ | 489,576 | | |
$ | 677,868 | |
| | |
September 30, 2026 | | |
December 31, 2025 | |
| Goodwill | |
| | | |
| | |
| Software | |
$ | 3,989,645 | | |
$ | 3,989,645 | |
| Document Services | |
| 1,800,176 | | |
| 1,800,176 | |
| Total goodwill | |
$ | 5,789,821 | | |
$ | 5,789,821 | |
| | |
September 30, 2026 | | |
December 31, 2025 | |
| Total assets | |
| | | |
| | |
| Software | |
$ | 10,333,056 | | |
$ | 9,606,662 | |
| Document Services | |
| 6,376,967 | | |
| 7,698,910 | |
| Total assets | |
$ | 16,710,023 | | |
$ | 17,305,572 | |
|