Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 30, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | PAID INC | ||
Entity Central Index Key | 1017655 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Smaller Reporting Company | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Trading Symbol | PAYD | ||
Entity Common Stock, Shares Outstanding | 343,774,050 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $25,975,000 |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | ||
Cash and cash equivalents | $651,318 | $463,285 |
Investments in marketable securities | 0 | 106,097 |
Accounts receivable, net | 91,574 | 340,663 |
Other receivables, net | 120,338 | 635,056 |
Inventories | 1,305 | 1,305 |
Prepaid expenses and other current assets | 42,567 | 41,180 |
Advanced royalties, net | 82,905 | 214,527 |
Total current assets | 990,007 | 1,802,113 |
Property and equipment, net | 18,489 | 43,614 |
Intangible asset, net | 4,242 | 5,184 |
Deposits and other assets | 23,387 | 0 |
Total assets | 1,036,125 | 1,850,911 |
Current liabilities: | ||
Accounts payable | 215,707 | 500,320 |
Capital leases - current portion | 15,223 | 20,775 |
Accrued expenses | 674,019 | 438,948 |
Deferred revenues | 7,102 | 13,614 |
Total current liabilities | 912,051 | 973,657 |
Long term liabilities: | ||
Capital leases - net of current portion | 3,095 | 19,848 |
Total liabilities | 915,146 | 993,505 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock, $0.001 par value, 550,000,000 and 350,000,000 shares authorized; 339,374,050 and 328,874,050 shares issued and outstanding at December 31, 2014 and 2013, respectively | 339,374 | 328,874 |
Common Stock Subscribed not Issued | 25,000 | 0 |
Additional paid-in capital | 53,506,353 | 52,744,046 |
Accumulated other comprehensive loss | 0 | -131,536 |
Accumulated deficit | -53,749,748 | -52,083,978 |
Total shareholders' equity | 120,979 | 857,406 |
Total liabilities and shareholders' equity | $1,036,125 | $1,850,911 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS [Parenthetical] (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 550,000,000 | 350,000,000 |
Common stock, shares issued | 339,374,050 | 328,874,050 |
Common stock, shares outstanding | 339,374,050 | 328,874,050 |
STATEMENTS_OF_COMPREHENSIVE_LO
STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | $796,756 | $4,352,568 |
Cost of revenues | 476,812 | 2,966,427 |
Gross profit | 319,944 | 1,386,141 |
Operating expenses | 1,458,255 | 2,878,682 |
Loss from operations | -1,138,311 | -1,492,541 |
Other income (expense): | ||
Interest income (expense), net | 1,065 | -3,166 |
Other income (expense), net | 408,581 | -166,661 |
Unrealized gain on investments in trading securities | 0 | 94,856 |
Realized loss on investments in available-for-sale securities | -79,983 | |
Write down of other receivables | -334,719 | 0 |
Gain on settlement of liabilities | 34,759 | 0 |
Unrealized (loss) gain on stock price guarantee | -554,732 | 443,242 |
Total other income (expense), net | -525,029 | 368,271 |
Loss before provision for income taxes | -1,663,340 | -1,124,270 |
Provision for income taxes | 2,430 | 3,650 |
Net loss | -1,665,770 | -1,127,920 |
Loss per share - basic and diluted | ($0.01) | ($0.01) |
Weighted average number of common shares outstanding - basic and diluted | 330,372,041 | 328,874,050 |
Net loss | -1,665,770 | -1,127,920 |
Net unrealized loss on investments in available-for-sale securities | 0 | -131,536 |
Total comprehensive loss | ($1,665,770) | ($1,259,456) |
STATEMENTS_OF_CHANGES_IN_SHARE
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Common Stock Subscribed But Not Issued [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Stock Subscription Receivable [Member] |
Balance at Dec. 31, 2012 | $1,685,271 | $328,874 | $0 | $52,376,455 | $0 | ($50,956,058) | ($64,000) |
Balance (in shares) at Dec. 31, 2012 | 328,874,050 | ||||||
Recognition of loss on investments in available-for-sale securities | -131,536 | -131,536 | |||||
Share-based compensation expense | 367,591 | 367,591 | |||||
Services rendered in consideration of payment for common stock | 64,000 | 64,000 | |||||
Net loss | -1,127,920 | -1,127,920 | |||||
Balance at Dec. 31, 2013 | 857,406 | 328,874 | 0 | 52,744,046 | -131,536 | -52,083,978 | 0 |
Balance (in shares) at Dec. 31, 2013 | 328,874,050 | ||||||
Sale of common stock | 525,000 | 10,500 | 0 | 514,500 | 0 | 0 | 0 |
Sale of common stock (in shares) | 10,500,000 | 10,500,000 | |||||
Recognition of loss on investments in available-for-sale securities | 131,536 | 131,536 | |||||
Common stock subscribed but not issued | 25,000 | 0 | 25,000 | 0 | 0 | 0 | 0 |
Share-based compensation expense | 247,807 | 247,807 | |||||
Net loss | -1,665,770 | -1,665,770 | |||||
Balance at Dec. 31, 2014 | $120,979 | $339,374 | $25,000 | $53,506,353 | $0 | ($53,749,748) | $0 |
Balance (in shares) at Dec. 31, 2014 | 339,374,050 |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | ||
Net loss | ($1,665,770) | ($1,127,920) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 26,067 | 73,907 |
Loss on disposal of assets | 0 | 60,229 |
Unrealized gain on investments in trading securities | 0 | -94,856 |
Realized loss on investments in available-for-sale securities | 79,983 | 0 |
Provision for bad debt | 29,612 | 59,203 |
Write down of other receivables | 334,719 | 105,843 |
Write down of advanced royalties | 136,246 | 0 |
Services rendered in consideration of payment for common stock | 0 | 64,000 |
Share-based compensation | 247,807 | 367,591 |
Change in fair value of stock price guarantee | 554,732 | -443,242 |
Gain on settlement of liabilities | -34,759 | 0 |
Amortization of prepaid facility costs | 0 | 784,049 |
Out of period adjustment | -321,601 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | 219,477 | -28,528 |
Other receivables | 214,758 | |
Inventories | 0 | 419,404 |
Prepaid expenses and other current assets | -1,387 | -246,999 |
Advanced royalties | -4,624 | 115,269 |
Deposits and other assets | -23,387 | 0 |
Accounts payable | -284,613 | -235,672 |
Accrued expenses | 1,940 | -630,652 |
Deferred revenues | -6,512 | -216,867 |
Net cash (used in) provided by operating activities | -497,312 | -975,241 |
Cash flows from investing activities: | ||
Proceeds from sale of property and equipment | 0 | 31,830 |
Proceeds from sale of investments in available-for-sale securities | 157,650 | 0 |
Net cash provided by (used in) investing activities | 157,650 | 31,830 |
Cash flows from financing activities: | ||
Payments on capital lease | -22,305 | -26,338 |
Proceeds from issuance of common stock | 525,000 | 0 |
Common stock subscribed but not issued | 25,000 | 0 |
Net cash (used in) provided by financing activities | 527,695 | -26,338 |
Net change in cash and cash equivalents | 188,033 | -969,749 |
Cash and cash equivalents, beginning of year | 463,285 | 1,433,034 |
Cash and cash equivalents, ending of year | 651,318 | 463,285 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Income taxes | 3,971 | 0 |
Interest | 1,869 | 3,166 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Reclass of capital lease obligations to accounts payable | $0 | $7,966 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Business Description and Basis of Presentation [Text Block] | NOTE 1. ORGANIZATION |
PAID, Inc. (“PAID”, the “Company”, “we”, “us”, “our”) has developed AuctionInc, which is a suite of online shipping and tax management tools assisting businesses with e-commerce storefronts, shipping solutions, tax calculation, inventory management, and auction processing. The product has tools to assist with other aspects of the fulfillment process, but the main purpose of the product is to provide accurate shipping and tax calculations and packaging algorithms that provide customers with the best possible shipping and tax solutions. | |
The Company has five United States patents issued by the United States Patent and Trademark Office (USPTO) and one pending patent application. The Company intends to license its intellectual property on commercially reasonable terms to licensees in order to generate revenue for the Company. As part of this revenue generation effort, the Company commenced on December 20, 2013 patent infringement litigation against eBay, Inc. (Paid, Inc. v. eBay, Inc.; CV No. 4:13-cv-40151-TSH) in the United States District Court for the District of Massachusetts Central Division. The Company’s goal is to develop a robust licensing program utilizing its intellectual property assets. | |
Previously, the Company's primary focus was to provide brand-related services to businesses, celebrity clients in the entertainment industry as well as charitable organizations. PAID's brand management, brand marketing, social media marketing, product design and merchandising, website design; development and hosting services were designed to grow each client's customer base in size, loyalty and revenue generation. We offered entertainers and business entities comprehensive web-presence and related services supporting and managing clients' official websites and fan-community services including e-commerce, VIP ticketing, live event fan experiences, user-generated content, client content publishing and distribution, fan forums, social network management, social media marketing, customer data capture, management and analysis. | |
MANAGEMENTS_PLANS
MANAGEMENT'S PLANS | 12 Months Ended |
Dec. 31, 2014 | |
Managements Plan [Abstract] | |
Managements Plan [Text Block] | NOTE 2. MANAGEMENT’S PLANS |
The accompanying financial statements have been prepared on a going concern basis which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has continued to incur losses, although it has taken significant steps to reduce them. For the year ended December 31, 2014, the Company reported a net loss of $1,665,770. The Company has an accumulated deficit of $53,749,748 at December 31, 2014 and used $497,312 of cash in operations for the year ended December 31, 2014. These factors raise substantial doubt about the Company’s ability to continue as a going concern. | |
In 2013, the Company entered into a partnership agreement with Music City Networks (“MCN”). In accordance with the agreement, as of the effective date, MCN provides client based services directly to the Company’s clients in exchange for a profit participation as defined in the agreement. Going forward, the primary focus of the Company is to expand upon and monetize its intellectual property. | |
Management has reduced the Company’s losses in the music and entertainment area and focused the Company on its growing patent portfolio. The Company has restructured personnel and partnered with MCN to oversee business functions, such as fulfillment operations, client services, and business development. This changes the business model for engaging in these activities to improve efficiency and reduce costs. The Company will no longer pursue clients in the celebrity service industry due to the costliness of this aspect of the business. | |
These changes reduced revenues and gross profit in 2014. Management feels that AuctionInc will be a beneficial portion of our business and provide more opportunity for growth. The costs of doing business have been and will be significantly reduced in hopes of eliminating the net loss and providing positive cash flow from operations. In addition, the Company continues to increase its efforts to generate income from its patents. | |
Although there can be no assurances, the Company believes that the above management plan will be sufficient to meet the Company's working capital requirements through the end of 2015 and will have a positive impact on the Company for 2015 and future years. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Significant Accounting Policies [Text Block] | NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Presentation and Basis of Financial Statements | |||
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). | |||
The Company has evaluated subsequent events through the filing date of this Form 10-K, and determined that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes, other than as disclosed in the accompanying notes. | |||
Use of Estimates | |||
The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by the Company’s management include, but are not limited to, the collectability of accounts receivable and other receivables, the valuation of inventories, the recoverability of long-lived assets, valuation of deferred tax assets and liabilities and the estimated fair value of the royalty and advance guarantees, and share-based transactions. Actual results could materially differ from those estimates. | |||
Fair Value Measurements | |||
The Company measures the fair value of certain of its financial assets on a recurring basis. A fair value hierarchy is used to rank the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: | |||
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities; | |||
Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as unadjusted quoted prices for similar assets and liabilities, unadjusted quoted prices in the markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and | |||
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||
At December 31, 2014 and 2013, the Company’s financial instruments include cash and cash equivalents, investments in marketable securities, accounts receivable, other receivables, accounts payable, capital leases, and accrued expenses. The carrying amount of cash and cash equivalents, accounts receivable, other receivables, accounts payable, capital leases, and accrued expenses approximates fair value due to the short-term maturities of these instruments. The fair value of the investments in marketable securities was determined based on quoted prices in active markets for identical assets or Level 1 inputs. | |||
Cash and Cash Equivalents | |||
The Company considers all highly liquid temporary cash investments with an initial maturity of three months or less to be cash equivalents. Management believes that the carrying amounts of cash equivalents approximate their fair value because of the short maturity period. | |||
Concentration of Credit Risk | |||
The Company maintains cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At December 31, 2014, the Company had amounts in these accounts in excess of the FDIC insurance limit. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to these deposits. | |||
The Company extends credit based on an evaluation of the customer's financial condition, generally without requiring collateral. Exposure to losses on receivables is principally dependent on each customer's financial condition. The Company monitors its exposure for credit losses and maintains allowances for anticipated losses. Although the Company expects to collect amounts due, actual collections may differ from the estimated amounts. As of December 31, 2014 and 2013, the Company recorded a provision for doubtful accounts of $38,609 and $53,300, respectively. | |||
For the years ended December 31, 2014 and 2013, revenues from one and three clients, respectively, accounted for approximately 65% and 64%, respectively, of total revenues. These revenues were generated from the sales of tour merchandise, VIP services, and our AuctionInc shipping calculator products. | |||
Investments In Marketable Securities | |||
The Company accounted for its investments in marketable securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 320. The Company determined the appropriate classification of its investments at the time of purchase and reevaluated such designation at each balance sheet date. | |||
As of July 1, 2013, the Company reclassified its investments from trading securities to available-for-sale securities. Marketable debt and equity securities that were bought and held principally for the purpose of selling them in the near term were classified as trading securities and were reported at fair value, with unrealized gains and losses recognized in earnings. Available-for-sale securities were stated at fair value, generally based on market quotes, to the extent they were available. Unrealized gains and losses, net of applicable deferred taxes, were recorded as a component of other comprehensive income (loss) and reported in shareholders’ equity. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and were reported in earnings in the statements of comprehensive loss. As of December 31, 2014, the Company liquidated its available-for-sale securities. | |||
Other Receivables | |||
Other receivables consist of shares of our common stock held by the Company’s landlord, Carruth Capital, which are available-for-sale. As of December 31, 2014 and 2013, are 2,528,091 and 3,528,091, shares held by Carruth Capital, respectively and were valued at $120,338 and $635,056, respectively, based on the market price of our common stock on those respective dates. The Company records an impairment of these shares when the market price decreases in the accompanying consolidated statements of comprehensive loss. For the year ended December 31, 2014, the write down of other receivables was $334,719. | |||
Inventories | |||
Inventories consist of merchandise for sale and are stated at the lower of average cost or market determined on a first-in, first-out (FIFO) method. When a purchase contains multiple copies of the same item, they are stated at average cost. | |||
At each balance sheet date, the Company evaluates its ending inventory quantities on hand and on order and records a provision for excess quantities and obsolescence. Among other factors, the Company considers historical demand and forecasted demand in relation to the inventory on hand, competitiveness of product offerings, market conditions and product life cycles when determining obsolescence and net realizable value. In addition, the Company considers changes in the market value of components in determining the net realizable value of its inventory. Provisions are made to reduce excess or obsolete inventories to their estimated net realizable values. Once established, write-downs are considered permanent adjustments to the cost basis of the excess or obsolete inventories. | |||
Advanced Royalties | |||
Advanced royalties represent amounts the Company has advanced to certain clients and are recoupable against future royalties earned by the clients. Advances are issued in either cash or shares of the Company’s common stock and advanced amounts are calculated based on the clients’ projected earning potential over a fixed period of time. Advances made by issuing stock or common stock options are recorded at their fair value on the date of issue. If the shares do not reach the required price per share, the Company has the option of issuing additional shares or making cash payment of the difference between the sales price and the fair value of the stock. The Company records a liability for the difference between the fair value of the stock and the guaranteed sales price amount. The change in fair value of the stock price guarantee is recorded in the accompanying statements of comprehensive loss (see Note 9). For the year ended December 31, 2014, the Company wrote down its advanced royalties by $136,246 due to a decrease in expected recoupable royalties and is included in operating expenses in the accompanying statement of comprehensive loss. | |||
Property and Equipment | |||
Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of 3 to 5 years. Any leasehold improvements are depreciated at the lesser of the useful life of the asset or the lease term. | |||
Intangible Assets | |||
Intangible assets consist of patents which are being amortized on a straight-line basis over their estimated useful life of 17 years. | |||
Long-Lived Assets | |||
The Company reviews the carrying values of its long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the expected future cash flow from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment loss is recognized and measured using the fair value of the related asset. No impairment charges were incurred during the years ended December 31, 2014 and 2013. There can be no assurance, however, that market conditions will not change or demand for the Company’s services will continue, which could result in impairment of long-lived assets in the future. | |||
Revenue Recognition | |||
The Company generates revenue principally from sales of fan experiences, fan club membership fees, shipping calculator subscriptions, and from client services. | |||
The Company recognizes revenues in accordance with the FASB ASC Topic 605. Accordingly, the Company recognizes revenues when there is persuasive evidence that an arrangement exists, product delivery and acceptance have occurred, the sales price is fixed or determinable, and collectability of the resulting receivable is reasonably assured. | |||
For shipping calculator revenues the Company recognizes subscription revenue on a monthly basis. Customers’ renewal dates are based on their date of installation and registration of the shipping calculator line of products. Payments are made via credit card for the month following the service. | |||
Fan experience sales generally include tickets and related experiences at concerts and other events conducted by performing artists. Revenues associated with these fan experiences are generally reported gross, rather than net, and are deferred until the related event has been concluded, at which time the revenues and related direct costs are recognized. | |||
Fan club membership fees are recognized ratably over the term of the related membership, generally one year. | |||
For sales of merchandise owned and warehoused by the Company, the Company is responsible for conducting the sale, billing the customer, shipping the merchandise to the customer, processing customer returns and collecting accounts receivable. The Company recognizes revenue upon verification of the credit card transaction and shipment of the merchandise, discharging all obligations of the Company with respect to the transaction. During 2013 the Company moved its merchandising operations to MCN in Nashville, TN. Revenues are recognized by means of a profit split calculation payable as a commission due to the Company. | |||
Client services revenues include web development and design, creative services, marketing services and general business consulting services. For contracts that are of a short duration and fixed price, revenue is recognized when there are no significant obligations and upon acceptance by the customer of the completed project. Revenues on longer-term fixed price contracts are recognized using the percentage-of-completion method. Services that are performed on a time and material basis are recognized as the related services are performed. | |||
Cost of Revenues | |||
Cost of revenues include event tickets, ticketing and venue fees, shipping and handling fees associated with e-commerce sales, merchandise and royalties paid to clients. | |||
Operating Expenses | |||
Operating expenses include indirect client related expenses, including credit card processing fees, payroll, travel, facility costs, and other general and administrative expenses. | |||
Advertising | |||
Advertising costs are charged to expense as incurred. For the years ended December 31, 2014 and 2013, advertising expense totaled $6,125 and $7,815, respectively, and are included in operating expenses in the accompanying statements of comprehensive loss. | |||
Share-Based Compensation | |||
The Company grants options to purchase the Company’s common stock to employees, directors and consultants under stock option plans. The benefits provided under these plans are share-based payments that the Company accounts for using the fair value method. | |||
The fair value of each option award is estimated on the date of grant using a Black-Scholes-Merton option pricing model (“Black-Scholes-Merton model”) that uses assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to, expected stock price volatility, actual and projected employee stock option exercise behaviors, risk-free interest rate and expected dividends. Expected volatilities are based on the historical volatility of the Company’s common stock and other factors. The expected terms of options granted are based on analyses of historical employee termination rates and option exercises. The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of the grant. Since the Company does not expect to pay dividends on common stock in the foreseeable future, it estimated the dividend yield to be 0%. | |||
Share-based compensation expense recognized during a period is based on the value of the portion of share-based payment awards that is ultimately expected to vest and is amortized under the straight-line attribution method. As share-based compensation expense recognized in the accompanying statements of comprehensive loss for the years ended December 31, 2014 and 2013 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. The fair value method requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates forfeitures based on historical experience. Changes to the estimated forfeiture rate are accounted for as a cumulative effect of change in the period the change occurred. | |||
Since the Company has a net operating loss carry-forward as of December 31, 2014 and 2013, no excess tax benefits for tax deductions related to share-based awards were recognized from stock options exercised in the years ended December 31, 2014 and 2013 that would have resulted in a reclassification from cash flows from operating activities to cash flows from financing activities. | |||
Income Taxes | |||
The Company accounts for income taxes and the related accounts under the liability method. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and the income tax bases of assets and liabilities. A valuation allowance is applied against any net deferred tax asset if, based on available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Therefore, the Company has recorded a full valuation allowance against the net deferred tax assets. The Company’s income tax provision consists of state minimum taxes. | |||
The Company recognizes any uncertain income tax positions on income tax returns at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. | |||
The total unrecognized tax benefit resulting in an increase in deferred tax assets and corresponding increase in the valuation allowance at December 31, 2014 is $1.3 million. There are no unrecognized tax benefits included in the balance sheet that would, if recognized, affect the effective tax rate. | |||
The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had $0 accrued for interest and penalties on each of the Company’s balance sheets at December 31, 2014 and 2013. | |||
The Company is subject to taxation in the U.S. and various state jurisdictions. The Company’s tax years for 2011 and forward for federal and 2010 and forward for state purposes are subject to examination by the U.S., Massachusetts and New Jersey tax authorities due to the carry-forward of unutilized net operating losses. The Company does not foresee material changes to its gross uncertain income tax position liability within the next twelve months. | |||
Earnings (Loss) Per Common Share | |||
Basic earnings (loss) per share represent income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income (loss) that would result from the assumed issuance. The potential common shares that may be issued by the Company relate to outstanding stock options and have been excluded from the computation of diluted earnings (loss) per share because they would reduce the reported loss per share and therefore have an anti-dilutive effect. | |||
For the year ended December 31, 2014, there were approximately 10,746,000 potentiallydilutive shares that were excluded from the diluted earnings (loss) per share as their effect would have been antidilutive for the year then ended. | |||
Segment Reporting | |||
The Company reports information about segments of its business in its annual financial statements and reports selected segment information in its quarterly reports issued to shareholders. The Company also reports on its entity-wide disclosures about the products and services it provides and reports revenues and its major customers. The Company’s two reportable segments are managed separately based on fundamental differences in their operations. At December 31, 2014, the Company operated in the following two reportable segments (see Note 12): | |||
a. | Entertainment services, and | ||
b. | Shipping calculator services. | ||
The Company evaluates performance and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described in this summary of significant accounting policies. The Company’s chief operating decision maker is the President, Chief Executive Officer and Chief Financial Officer. | |||
Out-of-Period Adjustment | |||
During the year ended December 31, 2014, the Company recorded an out-of-period adjustment related to the correction of a $321,601 overstatement of accrued expenses related to prior periods, which had the effect of decreasing net loss and is included in other income (expense), net in the accompanying statement of comprehensive loss. The Company does not believe the correction of this error is material to its financial statements for any prior periods or year ended December 31, 2013. | |||
Recent Accounting Pronouncements | |||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements-Going Concern”. Currently, there is no guidance in U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the reporting periods beginning after December 15, 2016 and early application is permitted. Management is currently assessing the impact the adoption of ASU 2014-15 will have on our financial statements. | |||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”. ASU 2014-09 supersedes the revenue recognition requirements in FASB Topic 605, "Revenue Recognition". The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, and early adoption is prohibited. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Management has not yet selected a transition method and is currently assessing the impact the adoption of ASU 2014-09 will have on our financial statements. | |||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | NOTE 4. PROPERTY AND EQUIPMENT | |||||||
At December 31, property and equipment consisted of the following: | ||||||||
2014 | 2013 | |||||||
Computer equipment and software | $ | 125,830 | $ | 125,830 | ||||
Office furniture and equipment | 19,580 | 19,580 | ||||||
Website development costs | 314,190 | 314,190 | ||||||
459,600 | 459,600 | |||||||
Accumulated depreciation | -441,111 | -415,986 | ||||||
$ | 18,489 | $ | 43,614 | |||||
Depreciation expense of property and equipment for the years ended December 31, 2014 and 2013 amounted to $25,125 and $72,966, respectively. | ||||||||
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Intangible Assets Disclosure [Text Block] | NOTE 5. INTANGIBLE ASSETS | |||||||
The Company has a patent for the real-time calculation of shipping costs for items purchased through online auctions using a zip code as a destination location indicator. It includes shipping charge calculations across multiple carriers and accounts for additional characteristics of the item being shipped, such as weight, special packaging or handling, and insurance costs. | ||||||||
On January 29, 2008, the Company was granted a patent for a technique for facilitating advanced, rapid, accurate estimation of shipping costs across multiple shipping carriers and shipping options between buyer and seller in an online auction. Since that time the Company has received four additional patents. These patents help facilitate rapid and accurate estimation of shipping costs across multiple shipping carriers and also include real-time calculation of shipping. Further continuations include the addition of shipping calculation with taxes and enhanced shipping promotions. | ||||||||
At December 31, intangible assets consisted of the following: | ||||||||
2014 | 2013 | |||||||
Patents | $ | 16,000 | $ | 16,000 | ||||
Accumulated amortization | -11,758 | -10,816 | ||||||
$ | 4,242 | $ | 5,184 | |||||
Amortization expense of intangible assets for the years ended December 31, 2014, and 2013 was $942 and $941, respectively. Estimated future annual amortization expense is approximately $900 for each year through 2019. | ||||||||
FAIR_VALUE_DISCLOSURE
FAIR VALUE DISCLOSURE | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Fair Value Disclosures [Text Block] | NOTE 6. FAIR VALUE DISCLOSURE | |||||||||||
The following table presents fair values for those assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the measurements fall. No transfers among the levels within the fair value hierarchy occurred during the years ended December 31, 2014 or 2013. | ||||||||||||
Fair Value | ||||||||||||
Level | 2014 | 2013 | ||||||||||
Investments in marketable securities | 1 | $ | - | $ | 106,097 | |||||||
For the year ended December 31, 2014, the Company recorded a realized loss of $79,983, which comprises of a realized gain of $51,553 and an unrealized loss of $131,536 transferred from accumulated other comprehensive loss to earnings, on the sale of investments in available-for-sale securities. | ||||||||||||
For the year ended December 31, 2013, the Company recorded an unrealized gain of $94,856 on the change in fair value of the investments in marketable securities (trading) and an unrealized loss of $131,536 on the change in fair value of the investments in marketable securities (available-for-sale). | ||||||||||||
ACCRUED_EXPENSES
ACCRUED EXPENSES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 7. ACCRUED EXPENSES | |||||||
At December 31, accrued expenses consist of the following: | ||||||||
2014 | 2013 | |||||||
Payroll and related costs | $ | 2,019 | $ | 2,446 | ||||
Royalties | 80,572 | 421,963 | ||||||
Stock price guarantee (see Note 9) | 554,732 | - | ||||||
Other | 36,696 | 14,539 | ||||||
Total | $ | 674,019 | $ | 438,948 | ||||
LONGTERM_LIABILITIES
LONG-TERM LIABILITIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Leases, Capital [Abstract] | ||||||||
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | NOTE 8. LONG-TERM LIABILITIES | |||||||
Capital Lease Obligations | ||||||||
The Company is obligated under capital leases for equipment, which expire at various dates through April 2016. The assets capitalized under these leases and associated accumulated depreciation at December 31, are as follows: | ||||||||
2014 | 2013 | |||||||
Property and equipment | $ | 83,000 | $ | 83,000 | ||||
Accumulated depreciation | -77,500 | -63,100 | ||||||
$ | 5,500 | $ | 19,900 | |||||
Depreciation of equipment under capital leases is included in depreciation expense. | ||||||||
Minimum future lease payments under capital lease obligations as of December 31, 2014 are as follows: | ||||||||
Year Ended December 31, | ||||||||
2015 | $ | 16,248 | ||||||
2016 | 3,013 | |||||||
Total future minimum lease payments | 19,261 | |||||||
Less amount representing interest | -943 | |||||||
Present value of net minimum lease payments | 18,318 | |||||||
Less current portion | -15,223 | |||||||
$ | 3,095 | |||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | NOTE 9. COMMITMENTS AND CONTINGENCIES | ||||
Lease Commitment | |||||
In November 2013, the Company moved its offices located at 40 Washington Street, Westborough, MA and entered into a lease for premises located at 200 Friberg Parkway, Westborough, MA. The Company resides at 200 Friberg Parkway with a lease that is for a three-year term ending in November 2016. The original lease at 40 Washington Street was prepaid with 6,082,985 shares of common stock having a closing price of $0.21 per share on August 22, 2011. The payment was for rent over five years, projected taxes and operating expenses, and a security deposit. As a result of the termination of the 40 Washington Street lease, the Company forfeited its security deposit of $83,134, which was previously paid with shares of common stock of the Company, paid a termination fee of $166,865, recorded an other receivable, net due from the landlord, Carruth Capital, in the amount of $120,338 and $635,056 in the accompanying balance sheets as of December 31, 2014 and 2013, respectively. | |||||
The approximate future minimum rent under the current operating lease for each of the remaining years is: | |||||
2015 | $ | 15,000 | |||
2016 | 13,000 | ||||
$ | 28,000 | ||||
Stock Price Guarantee | |||||
In connection with the Company’s advance royalties with a client, the Company guaranteed that shares of common stock would sell for at least $0.12 per share. If the shares are not at the required $0.12 per share when they are sold, the Company has the option of issuing additional shares at their fair value or making cash payments for the difference between the guaranteed price per share and the fair value of the stock. As of December 31, 2014 and 2013, the stock price guarantee was $554,732 , and $0, respectively as the Company’s stock price was below $0.12 per share at December 31, 2014, although any required payment would be disputed by the Company. | |||||
Legal Matters | |||||
In the normal course of business, the Company periodically becomes involved in litigation. As of December 31, 2014, in the opinion of management, the Company had no pending litigation that would have a material adverse effect on the Company's financial position, results of operations, or cash flows. | |||||
The Company commenced on December 20, 2013 patent infringement litigation against eBay, Inc. (Paid, Inc. v. eBay, Inc.; CV No. 4:13-cv-40151-TSH) in the United States District Court for the District of Massachusetts Central Division. On June 30, 2014, PAID and eBay filed a joint motion to stay the district court litigation pending completion of eBay’s petitions for covered business review that were filed with the Patent and Trial and Appeal Board (“PTAB”). On September 30, 2014 the PTAB announced that it had granted petitions filed by eBay for covered business method review of PAID’s United States Patent Nos. 8,635,150, 8,521,642, 8,352,357, and 7,930,237, entitled “Method and System for Improved Online Auction.” | |||||
Indemnities and Guarantees | |||||
The Company has made certain indemnities and guarantees, under which it may be required to make payments to a guaranteed or indemnified party, in relation to certain actions or transactions. The Company indemnifies its directors, officers, employees and agents, as permitted under the laws of the State of Delaware. In connection with its facility leases, the Company has agreed to indemnify its lessors for certain claims arising from the use of the facilities. The duration of the guarantees and indemnities varies, and is generally tied to the life of the agreement. These guarantees and indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated nor incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities and guarantees in the accompanying balance sheets. | |||||
COMMON_STOCK
COMMON STOCK | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Equity [Abstract] | |||||||||||||||
Share holders Equity And Share Based Payments [Text Block] | NOTE 10. COMMON STOCK | ||||||||||||||
Additional Common Stock Approved and Issued | |||||||||||||||
In October 2014, the shareholders approved an amendments to the Company’s Certificate of Incorporation to increase the Company’s authorized shares of common stock from 350,000,000 to 550,000,000 and to make effective a reverse stock split at a range of 1 for 10 through 1 for 50 to reduce the number of authorized shares of the Company’s common stock, subject to the Board of Director’s discretion. | |||||||||||||||
During the year ended December 31, 2014, the Company sold 10,500,000 shares of common stock for proceeds of $525,000. Additionally the Company sold 500,000 shares of common stock that have not been issued to a shareholder and accordingly, the unissued shares have been reflected as common stock subscribed but not issued in the amount of $25,000 in the accompanying balance sheet as of December 31, 2014. | |||||||||||||||
From January 1, 2015 through the filing date of this Annual Report, the Company issued a total of 4,400,000 shares of common stock for gross proceeds of $195,000. | |||||||||||||||
Share-based Incentive Plans | |||||||||||||||
During the years ended December 31, 2014 and 2013, the Company had three stock option plans that include both incentive and non-qualified options to be granted to certain eligible employees, non-employee directors, or consultants of the Company. | |||||||||||||||
Active Plans: | |||||||||||||||
2012 Plan | |||||||||||||||
On October 15, 2012, the Company adopted the 2012 Non-Qualified Stock Option Plan (the "2012 Plan"). The purpose of the 2012 Plan, is to provide long-term incentives and rewards to those employees of the Company, and any other individuals, whether directors, consultants or advisors who are in a position to contribute to the long-term success and growth of the Company. The options granted have a 10 year contractual term and vest one hundred percent on the date of grant. There are 6,000,000 shares reserved for future issuance under this plan. Information with respect to stock options granted under this plan during the years ended December 31, 2014 and 2013 is as follows: | |||||||||||||||
Weighted average | |||||||||||||||
exercise price per | |||||||||||||||
Number of shares | share | ||||||||||||||
Options outstanding at December 31, 2012 | 7,000,000 | $ | 0.043 | ||||||||||||
Granted | 2,000,000 | $ | 0.092 | ||||||||||||
Cancelled | — | $ | — | ||||||||||||
Exercised | — | $ | — | ||||||||||||
Options outstanding at December 31, 2013 | 9,000,000 | $ | 0.054 | ||||||||||||
Granted | 6,000,000 | $ | 0.054 | ||||||||||||
Cancelled | — | $ | — | ||||||||||||
Exercised | — | $ | — | ||||||||||||
Options outstanding at December 31, 2014 | 15,000,000 | $ | 0.102 | ||||||||||||
2011 Plan | |||||||||||||||
On February 1, 2011, the Company adopted the 2011 Non-Qualified Stock Option Plan (the "2011 Plan"), to replace the 2001 Plan discussed below, and has filed Registration Statements on Form S-8 to register 30,000,000 shares of its common stock. Under the 2011 Plan, employees and consultants may elect to receive their gross compensation in the form of options, exercisable at $0.001 per share, to acquire the number of shares of the Company's common stock equal to their gross compensation divided by the fair value of the stock on the date of grant. The options granted have a 10 year contractual term and have vesting periods that range from one hundred percent on the date of grant to one third immediately, one third vesting in 18 months and the final on third vesting in 36 months from the date of the grant. Information with respect to stock options granted under this plan during the years ended December 31, 2014 and 2013 is as follows: | |||||||||||||||
Number of | Weighted | ||||||||||||||
average exercise | |||||||||||||||
shares | price per share | ||||||||||||||
Options outstanding at December 31, 2012 | 3,000,000 | $ | 0.015 | ||||||||||||
Granted | 2,250,000 | $ | 0.115 | ||||||||||||
Cancelled | -3,000,000 | $ | 0.145 | ||||||||||||
Exercised | - | $ | - | ||||||||||||
Options outstanding at December 31 2013 | 2,250,000 | $ | 0.115 | ||||||||||||
Granted | 750,000 | $ | 0.054 | ||||||||||||
Cancelled | - | $ | - | ||||||||||||
Exercised | - | $ | - | ||||||||||||
Options outstanding at December 31, 2014 | 3,000,000 | $ | 0.121 | ||||||||||||
At December 31, 2014 there are no shares reserved for issuance under this plan. | |||||||||||||||
2002 Plan | |||||||||||||||
The 2002 Stock Option Plan (“2002 Plan”) provides for the award of qualified and non-qualified options for up to 30,000,000 shares. The options granted have a ten-year contractual term and have a vesting schedule of either immediately, two years, or four years from the date of grant. Information with respect to stock options granted under this plan during the years ended December 31, 2014, and 2013 is as follows: | |||||||||||||||
Number of | Weighted | ||||||||||||||
average exercise | |||||||||||||||
shares | price per share | ||||||||||||||
Options outstanding at December 31, 2012 | 8,000,000 | $ | 0.095 | ||||||||||||
Granted | - | $ | - | ||||||||||||
Cancelled or Expired | - | $ | - | ||||||||||||
Exercised | - | $ | - | ||||||||||||
Options outstanding at December 31, 2013 | 8,000,000 | $ | 0.095 | ||||||||||||
Granted | - | $ | - | ||||||||||||
Cancelled or Expired | - | $ | - | ||||||||||||
Exercised | - | $ | - | ||||||||||||
Options outstanding at December 31, 2014 | 8,000,000 | $ | 0.095 | ||||||||||||
There are currently no shares reserved for issuance under this plan. | |||||||||||||||
2001 Plan | |||||||||||||||
The 2001 Non-Qualified Stock Option Plan (the "2001 Plan") expired on January 31, 2011. The Company adopted the 2001 Plan on February 1, 2001 and filed Registration Statements on Form S-8 to register 120,000,000 shares of its common stock. Under the 2001 Plan, employees and consultants could have elected to receive their gross compensation in the form of options, exercisable at $0.001 per share, to acquire the number of shares of the Company's common stock equal to their gross compensation divided by the fair value of the stock on the date of grant. Information with respect to stock options granted under this plan during the years ended December 31, 2014, and 2013 is as follows: | |||||||||||||||
Number of | Weighted | ||||||||||||||
average exercise | |||||||||||||||
shares | price per share | ||||||||||||||
Options outstanding at December 31, 2012 | 30,582 | $ | 0.001 | ||||||||||||
Granted | - | $ | 0.001 | ||||||||||||
Cancelled | -30,582 | $ | 0.001 | ||||||||||||
Exercised | - | - | |||||||||||||
Options outstanding at December 31, 2013 | - | $ | - | ||||||||||||
Cancelled | - | - | |||||||||||||
Exercised | - | $ | - | ||||||||||||
Options outstanding at December 31, 2014 | - | $ | - | ||||||||||||
There are currently no shares reserved for issuance under this plan. | |||||||||||||||
Fair value of issuances | |||||||||||||||
The fair value of the Company's option grants under the 2012, 2011, and 2002 Plans was estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions: | |||||||||||||||
2014 | 2013 | ||||||||||||||
Expected term (based upon historical experience) | 5-6 years | 5-6 years | |||||||||||||
Expected volatility | 130.50% 42 | 127.95% - 132.84 % | |||||||||||||
Expected dividends | None | None | |||||||||||||
Risk free interest rate | 1.0%-2.0 % | 1.0%-2.0 % | |||||||||||||
No options were exercised during the year ended December 31, 2014. | |||||||||||||||
The weighted-average grant date fair value of options granted during the year ended December 31, 2014 was $0.06 per share. | |||||||||||||||
For the years ended December 31, 2014 and 2013, the Company recorded share-based compensation expense related to stock options of $247,807 and $367,591 and are included in operating expenses in the accompanying statements of comprehensive loss, respectively. | |||||||||||||||
The Company had an aggregate of $250,845 of unrecognized share-based compensation expense for options outstanding as of December 31, 2014, which is expected to be recognized over a weighted average period of 1.28 years. | |||||||||||||||
Information pertaining to options outstanding and exercisable at December 31, 2014 is as follows: | |||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||
Weighted | Weighted | ||||||||||||||
Average | Average | ||||||||||||||
Number of | Remaining | Number of | Remaining | ||||||||||||
Contractual | Contractual | ||||||||||||||
Exercise Prices | Shares | Life (In Years) | Shares | Life (In Years) | |||||||||||
$ | 0.041 | 5,000,000 | 7.79 | 5,000,000 | 7.79 | ||||||||||
$ | 0.048 | 2,000,000 | 7.94 | 2,000,000 | 7.94 | ||||||||||
$ | 0.054 | 6,750,000 | 9.89 | 3,650,625 | 9.89 | ||||||||||
$ | 0.065 | 5,000,000 | 7.61 | 5,000,000 | 7.61 | ||||||||||
$ | 0.092 | 3,500,000 | 8.39 | 3,046,250 | 8.39 | ||||||||||
$ | 0.145 | 3,000,000 | 6.87 | 3,000,000 | 6.87 | ||||||||||
$ | 0.16 | 750,000 | 8.97 | 426,875 | 8.97 | ||||||||||
26,000,000 | 8.32 | 22,123,750 | 8.09 | ||||||||||||
Summary of all stock option plans during the years ended December 31, 2014 and 2013 is as follows: | |||||||||||||||
Weighted | |||||||||||||||
Average | |||||||||||||||
Number of | Weighted | Remaining | Aggregate | ||||||||||||
Contractual | |||||||||||||||
Shares | Average Price | Life (In Years) | Intrinsic Value | ||||||||||||
Options outstanding at December 31, 2012 | 18,030,582 | $ | 0.083 | ||||||||||||
Granted | 4,250,000 | 0.104 | |||||||||||||
Cancelled | -3,030,582 | 0.144 | |||||||||||||
Options exercisable at December 31, 2013 | 19,250,000 | 0.078 | |||||||||||||
Granted | 6,750,000 | 0.054 | |||||||||||||
Options outstanding and expected to vest at December 31, 2014 | 26,000,000 | 0.072 | $ | 8.32 | $ | 33,000 | |||||||||
Options exercisable at December 31, 2014 | 22,123,750 | $ | 0.073 | $ | 8.09 | $ | 33,000 | ||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Tax Disclosure [Text Block] | NOTE 11. INCOME TAXES | ||||||||
The Company is subject to taxation in the United States, Massachusetts and New Jersey. The provision for income taxes for the years ended December 31, 2014 and 2013 are summarized below: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2,013 | ||||||||
Current: | |||||||||
Federal | $ | - | $ | - | |||||
State | 2,430 | 3,650 | |||||||
Total current | 2,430 | 3,650 | |||||||
Deferred: | |||||||||
Federal | -846,000 | 3215000 | |||||||
State | -424,000 | -174,000 | |||||||
Change in valuation allowance | 1,270,000 | -3,041,000 | |||||||
Total deferred | - | - | |||||||
Income tax provision (benefit) | $ | 2,430 | $ | 3,650 | |||||
A reconciliation of income taxes computed by applying the statutory U.S. income tax rate to the Company’s loss before income taxes to the income provision is as follows: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2,013 | ||||||||
U.S. federal statutory tax rate | 34 | % | 34 | % | |||||
State tax benefit, net | -0.04 | % | -0.21 | % | |||||
Gain on stock price guarantee | - | % | 13.38 | % | |||||
Other | -0.24 | % | -0.01 | % | |||||
Valuation allowance | -33.92 | % | -47.48 | % | |||||
Effective income tax rate | -0.2 | % | -0.32 | % | |||||
Deferred tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
NOL's | $ | 16,311,000 | $ | 17,728,000 | |||||
State taxes | -435,000 | -49,000 | |||||||
Inventory and other reserves | 194,000 | 22,000 | |||||||
Depreciation and amortization | 1,000 | -4,000 | |||||||
Change in value of stock | 238,000 | - | |||||||
NQ stock option expense | 674,000 | 556,000 | |||||||
Total deferred tax assets | 16,983,000 | 18,253,000 | |||||||
Valuation allowance | -16,983,000 | -18,253,000 | |||||||
Net deferred tax assets | $ | - | $ | - | |||||
Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Accordingly, the net deferred tax assets have been fully offset by a valuation allowance. The valuation allowance decreased by approximately $1,270,000 in 2014. | |||||||||
As of December 31, 2014, the Company had net operating loss carryforwards for federal income tax purposes of approximately $45,000,000 which expire beginning in the year 2019. As of December 31, 2014, the Company had net operating loss carryforwards for state income tax purposes of approximately $13,000,000 which expire beginning in the year 2014. | |||||||||
Utilization of the net operating losses may be subject to substantial annual limitation due to federal and state ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such annual limitations could result in the expiration of the net operating losses ad credits before their utilization. The Company has not performed an analysis to determine the limitation of the net operating loss carryforwards. | |||||||||
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment Reporting Disclosure [Text Block] | NOTE 12. SEGMENT REPORTING | |||||||
The Company’s operations are classified into two principal reportable segments that provide different products or services. The Company operates in the following two reportable segments: | ||||||||
(a) | Entertainment services, and | |||||||
(b) | Shipping calculator services. | |||||||
The Company evaluates performance and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described in the summary of accounting policies. | ||||||||
The following table summarizes segment operating balances for operations by reportable segment, has been prepared in accordance with the internal accounting policies, and may not be presented in accordance with GAAP. | ||||||||
Year ended | Year ended | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Net revenue from external customers: | ||||||||
Entertainment services | $ | 647,510 | $ | 4,189,674 | ||||
Shipping calculator services | 149,246 | 162,894 | ||||||
Total net revenue from external customers: | 796,756 | 4,352,568 | ||||||
Operating income (loss) from operations: | ||||||||
Entertainment services | -1,146,290 | -1,525,030 | ||||||
Shipping calculator services | 7,979 | 32,489 | ||||||
Total operating loss from operations: | -1,138,311 | -1,492,541 | ||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 13. SUBSEQUENT EVENTS |
From January 1, 2015 through the filing date of this Annual Report, the Company issued a total of 4,400,000 shares of common stock for gross proceeds of $195,000. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Basis of Accounting, Policy [Policy Text Block] | |||
Presentation and Basis of Financial Statements | |||
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). | |||
The Company has evaluated subsequent events through the filing date of this Form 10-K, and determined that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes, other than as disclosed in the accompanying notes. | |||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates | ||
The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by the Company’s management include, but are not limited to, the collectability of accounts receivable and other receivables, the valuation of inventories, the recoverability of long-lived assets, valuation of deferred tax assets and liabilities and the estimated fair value of the royalty and advance guarantees, and share-based transactions. Actual results could materially differ from those estimates. | |||
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Measurements | ||
The Company measures the fair value of certain of its financial assets on a recurring basis. A fair value hierarchy is used to rank the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: | |||
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities; | |||
Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as unadjusted quoted prices for similar assets and liabilities, unadjusted quoted prices in the markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and | |||
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||
At December 31, 2014 and 2013, the Company’s financial instruments include cash and cash equivalents, investments in marketable securities, accounts receivable, other receivables, accounts payable, capital leases, and accrued expenses. The carrying amount of cash and cash equivalents, accounts receivable, other receivables, accounts payable, capital leases, and accrued expenses approximates fair value due to the short-term maturities of these instruments. The fair value of the investments in marketable securities was determined based on quoted prices in active markets for identical assets or Level 1 inputs. | |||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents | ||
The Company considers all highly liquid temporary cash investments with an initial maturity of three months or less to be cash equivalents. Management believes that the carrying amounts of cash equivalents approximate their fair value because of the short maturity period. | |||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk | ||
The Company maintains cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At December 31, 2014, the Company had amounts in these accounts in excess of the FDIC insurance limit. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to these deposits. | |||
The Company extends credit based on an evaluation of the customer's financial condition, generally without requiring collateral. Exposure to losses on receivables is principally dependent on each customer's financial condition. The Company monitors its exposure for credit losses and maintains allowances for anticipated losses. Although the Company expects to collect amounts due, actual collections may differ from the estimated amounts. As of December 31, 2014 and 2013, the Company recorded a provision for doubtful accounts of $38,609 and $53,300, respectively. | |||
For the years ended December 31, 2014 and 2013, revenues from one and three clients, respectively, accounted for approximately 65% and 64%, respectively, of total revenues. These revenues were generated from the sales of tour merchandise, VIP services, and our AuctionInc shipping calculator products. | |||
Investment, Policy [Policy Text Block] | Investments In Marketable Securities | ||
The Company accounted for its investments in marketable securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 320. The Company determined the appropriate classification of its investments at the time of purchase and reevaluated such designation at each balance sheet date. | |||
As of July 1, 2013, the Company reclassified its investments from trading securities to available-for-sale securities. Marketable debt and equity securities that were bought and held principally for the purpose of selling them in the near term were classified as trading securities and were reported at fair value, with unrealized gains and losses recognized in earnings. Available-for-sale securities were stated at fair value, generally based on market quotes, to the extent they were available. Unrealized gains and losses, net of applicable deferred taxes, were recorded as a component of other comprehensive income (loss) and reported in shareholders’ equity. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and were reported in earnings in the statements of comprehensive loss. As of December 31, 2014, the Company liquidated its available-for-sale securities. | |||
Receivables, Policy [Policy Text Block] | Other Receivables | ||
Other receivables consist of shares of our common stock held by the Company’s landlord, Carruth Capital, which are available-for-sale. As of December 31, 2014 and 2013, are 2,528,091 and 3,528,091, shares held by Carruth Capital, respectively and were valued at $120,338 and $635,056, respectively, based on the market price of our common stock on those respective dates. The Company records an impairment of these shares when the market price decreases in the accompanying consolidated statements of comprehensive loss. For the year ended December 31, 2014, the write down of other receivables was $334,719. | |||
Inventory, Policy [Policy Text Block] | Inventories | ||
Inventories consist of merchandise for sale and are stated at the lower of average cost or market determined on a first-in, first-out (FIFO) method. When a purchase contains multiple copies of the same item, they are stated at average cost. | |||
At each balance sheet date, the Company evaluates its ending inventory quantities on hand and on order and records a provision for excess quantities and obsolescence. Among other factors, the Company considers historical demand and forecasted demand in relation to the inventory on hand, competitiveness of product offerings, market conditions and product life cycles when determining obsolescence and net realizable value. In addition, the Company considers changes in the market value of components in determining the net realizable value of its inventory. Provisions are made to reduce excess or obsolete inventories to their estimated net realizable values. Once established, write-downs are considered permanent adjustments to the cost basis of the excess or obsolete inventories. | |||
Advanced Royalties [Policy Text Block] | Advanced Royalties | ||
Advanced royalties represent amounts the Company has advanced to certain clients and are recoupable against future royalties earned by the clients. Advances are issued in either cash or shares of the Company’s common stock and advanced amounts are calculated based on the clients’ projected earning potential over a fixed period of time. Advances made by issuing stock or common stock options are recorded at their fair value on the date of issue. If the shares do not reach the required price per share, the Company has the option of issuing additional shares or making cash payment of the difference between the sales price and the fair value of the stock. The Company records a liability for the difference between the fair value of the stock and the guaranteed sales price amount. The change in fair value of the stock price guarantee is recorded in the accompanying statements of comprehensive loss (see Note 9). For the year ended December 31, 2014, the Company wrote down its advanced royalties by $136,246 due to a decrease in expected recoupable royalties and is included in operating expenses in the accompanying statement of comprehensive loss. | |||
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment | ||
Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of 3 to 5 years. Any leasehold improvements are depreciated at the lesser of the useful life of the asset or the lease term. | |||
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets | ||
Intangible assets consist of patents which are being amortized on a straight-line basis over their estimated useful life of 17 years. | |||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets | ||
The Company reviews the carrying values of its long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the expected future cash flow from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment loss is recognized and measured using the fair value of the related asset. No impairment charges were incurred during the years ended December 31, 2014 and 2013. There can be no assurance, however, that market conditions will not change or demand for the Company’s services will continue, which could result in impairment of long-lived assets in the future. | |||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | ||
The Company generates revenue principally from sales of fan experiences, fan club membership fees, shipping calculator subscriptions, and from client services. | |||
The Company recognizes revenues in accordance with the FASB ASC Topic 605. Accordingly, the Company recognizes revenues when there is persuasive evidence that an arrangement exists, product delivery and acceptance have occurred, the sales price is fixed or determinable, and collectability of the resulting receivable is reasonably assured. | |||
For shipping calculator revenues the Company recognizes subscription revenue on a monthly basis. Customers’ renewal dates are based on their date of installation and registration of the shipping calculator line of products. Payments are made via credit card for the month following the service. | |||
Fan experience sales generally include tickets and related experiences at concerts and other events conducted by performing artists. Revenues associated with these fan experiences are generally reported gross, rather than net, and are deferred until the related event has been concluded, at which time the revenues and related direct costs are recognized. | |||
Fan club membership fees are recognized ratably over the term of the related membership, generally one year. | |||
For sales of merchandise owned and warehoused by the Company, the Company is responsible for conducting the sale, billing the customer, shipping the merchandise to the customer, processing customer returns and collecting accounts receivable. The Company recognizes revenue upon verification of the credit card transaction and shipment of the merchandise, discharging all obligations of the Company with respect to the transaction. During 2013 the Company moved its merchandising operations to MCN in Nashville, TN. Revenues are recognized by means of a profit split calculation payable as a commission due to the Company. | |||
Client services revenues include web development and design, creative services, marketing services and general business consulting services. For contracts that are of a short duration and fixed price, revenue is recognized when there are no significant obligations and upon acceptance by the customer of the completed project. Revenues on longer-term fixed price contracts are recognized using the percentage-of-completion method. Services that are performed on a time and material basis are recognized as the related services are performed. | |||
Cost of Sales, Policy [Policy Text Block] | Cost of Revenues | ||
Cost of revenues include event tickets, ticketing and venue fees, shipping and handling fees associated with e-commerce sales, merchandise and royalties paid to clients. | |||
Operating Expenses, Policy [Policy Text Block] | Operating Expenses | ||
Operating expenses include indirect client related expenses, including credit card processing fees, payroll, travel, facility costs, and other general and administrative expenses. | |||
Advertising Costs, Policy [Policy Text Block] | Advertising | ||
Advertising costs are charged to expense as incurred. For the years ended December 31, 2014 and 2013, advertising expense totaled $6,125 and $7,815, respectively, and are included in operating expenses in the accompanying statements of comprehensive loss. | |||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share-Based Compensation | ||
The Company grants options to purchase the Company’s common stock to employees, directors and consultants under stock option plans. The benefits provided under these plans are share-based payments that the Company accounts for using the fair value method. | |||
The fair value of each option award is estimated on the date of grant using a Black-Scholes-Merton option pricing model (“Black-Scholes-Merton model”) that uses assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to, expected stock price volatility, actual and projected employee stock option exercise behaviors, risk-free interest rate and expected dividends. Expected volatilities are based on the historical volatility of the Company’s common stock and other factors. The expected terms of options granted are based on analyses of historical employee termination rates and option exercises. The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of the grant. Since the Company does not expect to pay dividends on common stock in the foreseeable future, it estimated the dividend yield to be 0%. | |||
Share-based compensation expense recognized during a period is based on the value of the portion of share-based payment awards that is ultimately expected to vest and is amortized under the straight-line attribution method. As share-based compensation expense recognized in the accompanying statements of comprehensive loss for the years ended December 31, 2014 and 2013 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. The fair value method requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates forfeitures based on historical experience. Changes to the estimated forfeiture rate are accounted for as a cumulative effect of change in the period the change occurred. | |||
Since the Company has a net operating loss carry-forward as of December 31, 2014 and 2013, no excess tax benefits for tax deductions related to share-based awards were recognized from stock options exercised in the years ended December 31, 2014 and 2013 that would have resulted in a reclassification from cash flows from operating activities to cash flows from financing activities. | |||
Income Tax, Policy [Policy Text Block] | Income Taxes | ||
The Company accounts for income taxes and the related accounts under the liability method. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and the income tax bases of assets and liabilities. A valuation allowance is applied against any net deferred tax asset if, based on available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Therefore, the Company has recorded a full valuation allowance against the net deferred tax assets. The Company’s income tax provision consists of state minimum taxes. | |||
The Company recognizes any uncertain income tax positions on income tax returns at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. | |||
The total unrecognized tax benefit resulting in an increase in deferred tax assets and corresponding increase in the valuation allowance at December 31, 2014 is $1.3 million. There are no unrecognized tax benefits included in the balance sheet that would, if recognized, affect the effective tax rate. | |||
The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had $0 accrued for interest and penalties on each of the Company’s balance sheets at December 31, 2014 and 2013. | |||
The Company is subject to taxation in the U.S. and various state jurisdictions. The Company’s tax years for 2011 and forward for federal and 2010 and forward for state purposes are subject to examination by the U.S., Massachusetts and New Jersey tax authorities due to the carry-forward of unutilized net operating losses. The Company does not foresee material changes to its gross uncertain income tax position liability within the next twelve months. | |||
Earnings Per Share, Policy [Policy Text Block] | Earnings (Loss) Per Common Share | ||
Basic earnings (loss) per share represent income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income (loss) that would result from the assumed issuance. The potential common shares that may be issued by the Company relate to outstanding stock options and have been excluded from the computation of diluted earnings (loss) per share because they would reduce the reported loss per share and therefore have an anti-dilutive effect. | |||
For the year ended December 31, 2014, there were approximately 10,746,000 potentiallydilutive shares that were excluded from the diluted earnings (loss) per share as their effect would have been antidilutive for the year then ended | |||
Segment Reporting, Policy [Policy Text Block] | Segment Reporting | ||
The Company reports information about segments of its business in its annual financial statements and reports selected segment information in its quarterly reports issued to shareholders. The Company also reports on its entity-wide disclosures about the products and services it provides and reports revenues and its major customers. The Company’s two reportable segments are managed separately based on fundamental differences in their operations. At December 31, 2014, the Company operated in the following two reportable segments (see Note 12): | |||
a. | Entertainment services, and | ||
b. | Shipping calculator services. | ||
The Company evaluates performance and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described in this summary of significant accounting policies. The Company’s chief operating decision maker is the President, Chief Executive Officer and Chief Financial Officer. | |||
Reclassification, Policy [Policy Text Block] | Out-of-Period Adjustment | ||
During the year ended December 31, 2014, the Company recorded an out-of-period adjustment related to the correction of a $321,601 overstatement of accrued expenses related to prior periods, which had the effect of decreasing net loss and is included in other income (expense), net in the accompanying statement of comprehensive loss. The Company does not believe the correction of this error is material to its financial statements for any prior periods or year ended December 31, 2013. | |||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements | ||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements-Going Concern”. Currently, there is no guidance in U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the reporting periods beginning after December 15, 2016 and early application is permitted. Management is currently assessing the impact the adoption of ASU 2014-15 will have on our financial statements. | |||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”. ASU 2014-09 supersedes the revenue recognition requirements in FASB Topic 605, "Revenue Recognition". The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, and early adoption is prohibited. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Management has not yet selected a transition method and is currently assessing the impact the adoption of ASU 2014-09 will have on our financial statements. | |||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | ||||||||
At December 31, property and equipment consisted of the following: | ||||||||
2014 | 2013 | |||||||
Computer equipment and software | $ | 125,830 | $ | 125,830 | ||||
Office furniture and equipment | 19,580 | 19,580 | ||||||
Website development costs | 314,190 | 314,190 | ||||||
459,600 | 459,600 | |||||||
Accumulated depreciation | -441,111 | -415,986 | ||||||
$ | 18,489 | $ | 43,614 | |||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | At December 31, intangible assets consisted of the following: | |||||||
2014 | 2013 | |||||||
Patents | $ | 16,000 | $ | 16,000 | ||||
Accumulated amortization | -11,758 | -10,816 | ||||||
$ | 4,242 | $ | 5,184 | |||||
FAIR_VALUE_DISCLOSURE_Tables
FAIR VALUE DISCLOSURE (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ||||||||||||
The following table presents fair values for those assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the measurements fall. No transfers among the levels within the fair value hierarchy occurred during the years ended December 31, 2014 or 2013. | ||||||||||||
Fair Value | ||||||||||||
Level | 2014 | 2013 | ||||||||||
Investments in marketable securities | 1 | $ | - | $ | 106,097 | |||||||
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | At December 31, accrued expenses consist of the following: | |||||||
2014 | 2013 | |||||||
Payroll and related costs | $ | 2,019 | $ | 2,446 | ||||
Royalties | 80,572 | 421,963 | ||||||
Stock price guarantee (see Note 9) | 554,732 | - | ||||||
Other | 36,696 | 14,539 | ||||||
Total | $ | 674,019 | $ | 438,948 | ||||
LONGTERM_LIABILITIES_Tables
LONG-TERM LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Leases, Capital [Abstract] | ||||||||
Schedule of Capital Leased Assets [Table Text Block] | The Company is obligated under capital leases for equipment, which expire at various dates through April 2016. The assets capitalized under these leases and associated accumulated depreciation at December 31, are as follows: | |||||||
2014 | 2013 | |||||||
Property and equipment | $ | 83,000 | $ | 83,000 | ||||
Accumulated depreciation | -77,500 | -63,100 | ||||||
$ | 5,500 | $ | 19,900 | |||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Minimum future lease payments under capital lease obligations as of December 31, 2014 are as follows: | |||||||
Year Ended December 31, | ||||||||
2015 | $ | 16,248 | ||||||
2016 | 3,013 | |||||||
Total future minimum lease payments | 19,261 | |||||||
Less amount representing interest | -943 | |||||||
Present value of net minimum lease payments | 18,318 | |||||||
Less current portion | -15,223 | |||||||
$ | 3,095 | |||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The approximate future minimum rent under the current operating lease for each of the remaining years is: | ||||
2015 | $ | 15,000 | |||
2016 | 13,000 | ||||
$ | 28,000 | ||||
COMMON_STOCK_Tables
COMMON STOCK (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Summary of all stock option plans during the years ended December 31, 2014 and 2013 is as follows: | ||||||||||||||
Weighted | |||||||||||||||
Average | |||||||||||||||
Number of | Weighted | Remaining | Aggregate | ||||||||||||
Contractual | |||||||||||||||
Shares | Average Price | Life (In Years) | Intrinsic Value | ||||||||||||
Options outstanding at December 31, 2012 | 18,030,582 | $ | 0.083 | ||||||||||||
Granted | 4,250,000 | 0.104 | |||||||||||||
Cancelled | -3,030,582 | 0.144 | |||||||||||||
Options exercisable at December 31, 2013 | 19,250,000 | 0.078 | |||||||||||||
Granted | 6,750,000 | 0.054 | |||||||||||||
Options outstanding and expected to vest at December 31, 2014 | 26,000,000 | 0.072 | $ | 8.32 | $ | 33,000 | |||||||||
Options exercisable at December 31, 2014 | 22,123,750 | $ | 0.073 | $ | 8.09 | $ | 33,000 | ||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Information pertaining to options outstanding and exercisable at December 31, 2014 is as follows: | ||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||
Weighted | Weighted | ||||||||||||||
Average | Average | ||||||||||||||
Number of | Remaining | Number of | Remaining | ||||||||||||
Contractual | Contractual | ||||||||||||||
Exercise Prices | Shares | Life (In Years) | Shares | Life (In Years) | |||||||||||
$ | 0.041 | 5,000,000 | 7.79 | 5,000,000 | 7.79 | ||||||||||
$ | 0.048 | 2,000,000 | 7.94 | 2,000,000 | 7.94 | ||||||||||
$ | 0.054 | 6,750,000 | 9.89 | 3,650,625 | 9.89 | ||||||||||
$ | 0.065 | 5,000,000 | 7.61 | 5,000,000 | 7.61 | ||||||||||
$ | 0.092 | 3,500,000 | 8.39 | 3,046,250 | 8.39 | ||||||||||
$ | 0.145 | 3,000,000 | 6.87 | 3,000,000 | 6.87 | ||||||||||
$ | 0.16 | 750,000 | 8.97 | 426,875 | 8.97 | ||||||||||
26,000,000 | 8.32 | 22,123,750 | 8.09 | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of the Company's option grants under the 2012, 2011, and 2002 Plans was estimated at the date of grant using the Black-Scholes model with the following weighted average assumptions: | ||||||||||||||
2014 | 2013 | ||||||||||||||
Expected term (based upon historical experience) | 5-6 years | 5-6 years | |||||||||||||
Expected volatility | 130.50% 42 | 127.95% - 132.84 % | |||||||||||||
Expected dividends | None | None | |||||||||||||
Risk free interest rate | 1.0%-2.0 % | 1.0%-2.0 % | |||||||||||||
Non Qualified Stock Option 2012 Plan [Member] | |||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Information with respect to stock options granted under this plan during the years ended December 31, 2014and 2013 is as follows: | ||||||||||||||
Number of shares | Weighted average | ||||||||||||||
exercise price per | |||||||||||||||
share | |||||||||||||||
Options outstanding at December 31, 2012 | 7,000,000 | $ | 0.043 | ||||||||||||
Granted | 2,000,000 | $ | 0.092 | ||||||||||||
Cancelled | — | $ | — | ||||||||||||
Exercised | — | $ | — | ||||||||||||
Options outstanding at December 31, 2013 | 9,000,000 | $ | 0.054 | ||||||||||||
Granted | 6,000,000 | $ | 0.054 | ||||||||||||
Cancelled | — | $ | — | ||||||||||||
Exercised | — | $ | — | ||||||||||||
Options outstanding at December 31, 2014 | 15,000,000 | $ | 0.102 | ||||||||||||
Non Qualified Stock Option 2011 Plan [Member] | |||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Information with respect to stock options granted under this plan during the years ended December 31, 2014 and 2013 is as follows: | ||||||||||||||
Number of | Weighted | ||||||||||||||
shares | average exercise | ||||||||||||||
price per share | |||||||||||||||
Options outstanding at December 31, 2012 | 3,000,000 | $ | 0.015 | ||||||||||||
Granted | 2,250,000 | $ | 0.115 | ||||||||||||
Cancelled | (3,000,000 | ) | $ | 0.145 | |||||||||||
Exercised | - | $ | - | ||||||||||||
Options outstanding at December 31 2013 | 2,250,000 | $ | 0.115 | ||||||||||||
Granted | 750,000 | $ | 0.054 | ||||||||||||
Cancelled | - | $ | - | ||||||||||||
Exercised | - | $ | - | ||||||||||||
Options outstanding at December 31, 2014 | 3,000,000 | $ | 0.121 | ||||||||||||
Stock Option Plan 2002 [Member] | |||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Information with respect to stock options granted under this plan during the years ended December 31, 2014, and 2013 is as follows: | ||||||||||||||
Number of | Weighted | ||||||||||||||
shares | average exercise | ||||||||||||||
price per share | |||||||||||||||
Options outstanding at December 31, 2012 | 8,000,000 | $ | 0.095 | ||||||||||||
Granted | - | $ | - | ||||||||||||
Cancelled or Expired | - | $ | - | ||||||||||||
Exercised | - | $ | - | ||||||||||||
Options outstanding at December 31, 2013 | 8,000,000 | $ | 0.095 | ||||||||||||
Granted | - | $ | - | ||||||||||||
Cancelled or Expired | - | $ | - | ||||||||||||
Exercised | - | $ | - | ||||||||||||
Options outstanding at December 31, 2014 | 8,000,000 | $ | 0.095 | ||||||||||||
Non Qualified Stock Option Plan 2001 [Member] | |||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Information with respect to stock options granted under this plan during the years ended December 31, 2014, and 2013 is as follows: | ||||||||||||||
Number of | Weighted | ||||||||||||||
shares | average exercise | ||||||||||||||
price per share | |||||||||||||||
Options outstanding at December 31, 2012 | 30,582 | $ | 0.001 | ||||||||||||
Granted | - | $ | 0.001 | ||||||||||||
Cancelled | (30,582 | ) | $ | 0.001 | |||||||||||
Exercised | - | - | |||||||||||||
Options outstanding at December 31, 2013 | - | $ | - | ||||||||||||
Cancelled | - | - | |||||||||||||
Exercised | - | $ | - | ||||||||||||
Options outstanding at December 31, 2014 | - | $ | - | ||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The Company is subject to taxation in the United States, Massachusetts and New Jersey. The provision for income taxes for the years ended December 31, 2014 and 2013 are summarized below: | ||||||||
December 31, | December 31, | ||||||||
2014 | 2,013 | ||||||||
Current: | |||||||||
Federal | $ | - | $ | - | |||||
State | 2,430 | 3,650 | |||||||
Total current | 2,430 | 3,650 | |||||||
Deferred: | |||||||||
Federal | -846,000 | 3215000 | |||||||
State | -424,000 | -174,000 | |||||||
Change in valuation allowance | 1,270,000 | -3,041,000 | |||||||
Total deferred | - | - | |||||||
Income tax provision (benefit) | $ | 2,430 | $ | 3,650 | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of income taxes computed by applying the statutory U.S. income tax rate to the Company’s loss before income taxes to the income provision is as follows: | ||||||||
December 31, | December 31, | ||||||||
2014 | 2,013 | ||||||||
U.S. federal statutory tax rate | 34 | % | 34 | % | |||||
State tax benefit, net | -0.04 | % | -0.21 | % | |||||
Gain on stock price guarantee | - | % | 13.38 | % | |||||
Other | -0.24 | % | -0.01 | % | |||||
Valuation allowance | -33.92 | % | -47.48 | % | |||||
Effective income tax rate | -0.2 | % | -0.32 | % | |||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Deferred tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows: | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
NOL's | $ | 16,311,000 | $ | 17,728,000 | |||||
State taxes | -435,000 | -49,000 | |||||||
Inventory and other reserves | 194,000 | 22,000 | |||||||
Depreciation and amortization | 1,000 | -4,000 | |||||||
Change in value of stock | 238,000 | - | |||||||
NQ stock option expense | 674,000 | 556,000 | |||||||
Total deferred tax assets | 16,983,000 | 18,253,000 | |||||||
Valuation allowance | -16,983,000 | -18,253,000 | |||||||
Net deferred tax assets | $ | - | $ | - | |||||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table summarizes segment operating balances for operations by reportable segment, has been prepared in accordance with the internal accounting policies, and may not be presented in accordance with GAAP. | |||||||
Year ended | Year ended | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Net revenue from external customers: | ||||||||
Entertainment services | $ | 647,510 | $ | 4,189,674 | ||||
Shipping calculator services | 149,246 | 162,894 | ||||||
Total net revenue from external customers: | 796,756 | 4,352,568 | ||||||
Operating income (loss) from operations: | ||||||||
Entertainment services | -1,146,290 | -1,525,030 | ||||||
Shipping calculator services | 7,979 | 32,489 | ||||||
Total operating loss from operations: | -1,138,311 | -1,492,541 | ||||||
MANAGEMENTS_PLANS_Details_Text
MANAGEMENT'S PLANS (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Managements Plan [Line Items] | ||
Net loss | ($1,665,770) | ($1,127,920) |
Accumulated deficit | -53,749,748 | -52,083,978 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | ($497,312) | ($975,241) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Line Items] | ||
Allowance for Doubtful Accounts Receivable | $38,609 | $53,300 |
Advertising Expense | 6,125 | 7,815 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 10,746,000 | |
Unrecognized Tax Benefits, Ending Balance | 1,300,000 | |
Share-Based Compensation Arrangement By Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 0 | 0 |
Income Tax Examination, Likelihood of Unfavorable Settlement | 50 | |
FDIC Indemnification Asset | 250,000 | |
Common Stock Held For Sale | 2,528,091 | 3,528,091 |
Other Receivables | 120,338 | 635,056 |
Allowance for Doubtful Accounts Receivable, Write-offs | 334,719 | 105,843 |
Advanced Royalties Receivables Written Down | 136,246 | 0 |
Prior Period Reclassification Adjustment | $321,601 | $0 |
Revenue [Member] | ||
Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 65.00% | 64.00% |
Patents [Member] | ||
Accounting Policies [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 17 years | |
Minimum [Member] | ||
Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Maximum [Member] | ||
Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Computer equipment and software | $125,830 | $125,830 |
Office furniture and equipment | 19,580 | 19,580 |
Website development costs | 314,190 | 314,190 |
Property, Plant and Equipment, Gross | 459,600 | 459,600 |
Accumulated depreciation | -441,111 | -415,986 |
Property, Plant and Equipment, Net | $18,489 | $43,614 |
PROPERTY_AND_EQUIPMENT_Details1
PROPERTY AND EQUIPMENT (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $25,125 | $72,966 |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Patents | $16,000 | $16,000 |
Accumulated amortization | -11,758 | -10,816 |
Intangible asset, net | $4,242 | $5,184 |
INTANGIBLE_ASSETS_Details_Text
INTANGIBLE ASSETS (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | $942 | $941 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 900 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 900 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 900 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 900 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 900 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $900 |
FAIR_VALUE_DISCLOSURE_Details
FAIR VALUE DISCLOSURE (Details) (Fair Value, Inputs, Level 1 [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments in marketable securities | $0 | $106,097 |
FAIR_VALUE_DISCLOSURE_Details_
FAIR VALUE DISCLOSURE (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gain (Loss) on Sale of Securities, Net | ($79,983) | $0 |
Available-for-sale Securities, Gross Realized Gains | 51,553 | |
Available-for-sale Equity Securities, Gross Unrealized Loss | 131,536 | |
Trading Securities, Unrealized Holding Gain | 94,856 | |
Trading Securities, Unrealized Holding Loss | $131,536 |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Payables and Accruals [Line Items] | ||
Payroll and related costs | $2,019 | $2,446 |
Royalties | 80,572 | 421,963 |
Stock price guarantee (see Note 9) | 554,732 | 0 |
Other | 36,696 | 14,539 |
Total | $674,019 | $438,948 |
LONGTERM_LIABILITIES_Details
LONG-TERM LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Capital Leased Assets [Line Items] | ||
Property and equipment | $83,000 | $83,000 |
Accumulated depreciation | -77,500 | -63,100 |
Capital Leases, Balance Sheet, Assets by Major Class, Net | $5,500 | $19,900 |
LONGTERM_LIABILITIES_Details_1
LONG-TERM LIABILITIES (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Capital Leased Assets [Line Items] | ||
2015 | $16,248 | |
2016 | 3,013 | |
Total future minimum lease payments | 19,261 | |
Less amount representing interest | -943 | |
Present value of net minimum lease payments | 18,318 | |
Less current portion | 15,223 | 20,775 |
Capital leases - net of current | $3,095 | $19,848 |
COMMITMENTS_AND_CONTIGENCIES_D
COMMITMENTS AND CONTIGENCIES (Details) (USD $) | Dec. 31, 2014 |
Other Commitments [Line Items] | |
2015 | $15,000 |
2016 | 13,000 |
Operating Leases, Future Minimum Payments Due | $28,000 |
COMMITMENTS_AND_CONTIGENCIES_D1
COMMITMENTS AND CONTIGENCIES (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Stock Issued During Period, Shares, Lease Payment (in shares) | 6,082,985 | ||
Common Stock, Closing Market Price (in dollars per share) | $0.21 | ||
Guaranteed Benefit Liability, Net | $0 | ||
Share Price | $0.12 | ||
Lease Commitment, Forfeiture Of Security Deposit | 83,134 | ||
TerminationFee | 166,865 | ||
Other Receivables | 120,338 | 635,056 | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 3 years | ||
Stock Market Price Guarantee [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Guaranteed Benefit Liability, Net | $554,732 | $0 | |
Share Price | $0.12 | ||
Maximum Stock Price To Be Reached | $0.12 |
COMMON_STOCK_Details
COMMON STOCK (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Options outstanding, Beginning | 19,250,000 | 18,030,582 |
Number of shares, Granted | 6,750,000 | 4,250,000 |
Number of shares, Cancelled | -3,030,582 | |
Number of shares, Options outstanding, Ending | 22,123,750 | 19,250,000 |
Weighted average exercise price, Options Outstanding, Beginning | $0.08 | $0.08 |
Weighted average exercise price, Granted | $0.05 | $0.10 |
Weighted average exercise price, Cancelled | $0.14 | |
Weighted average exercise price, Options Outstanding, Ending | $0.07 | $0.08 |
Non Qualified Stock Option 2012 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Options outstanding, Beginning | 9,000,000 | 7,000,000 |
Number of shares, Granted | 6,000,000 | 2,000,000 |
Number of shares, Cancelled | 0 | 0 |
Number of shares, Exercised | 0 | 0 |
Number of shares, Options outstanding, Ending | 15,000,000 | 9,000,000 |
Weighted average exercise price, Options Outstanding, Beginning | $0.05 | $0.04 |
Weighted average exercise price, Granted | $0.05 | $0.09 |
Weighted average exercise price, Cancelled | $0 | $0 |
Weighted average exercise price, Exercised | $0 | $0 |
Weighted average exercise price, Options Outstanding, Ending | $0.10 | $0.05 |
COMMON_STOCK_Details_1
COMMON STOCK (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Options outstanding, Beginning | 19,250,000 | 18,030,582 |
Number of shares, Granted | 6,750,000 | 4,250,000 |
Number of shares, Cancelled | -3,030,582 | |
Number of shares, Options outstanding, Ending | 22,123,750 | 19,250,000 |
Weighted average exercise price, Options Outstanding, Beginning | $0.08 | $0.08 |
Weighted average exercise price, Granted | $0.05 | $0.10 |
Weighted average exercise price, Cancelled | $0.14 | |
Weighted average exercise price, Options Outstanding, Ending | $0.07 | $0.08 |
Non Qualified Stock Option 2011 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Options outstanding, Beginning | 2,250,000 | 3,000,000 |
Number of shares, Granted | 750,000 | 2,250,000 |
Number of shares, Cancelled | -3,000,000 | |
Number of shares, Exercised | 0 | 0 |
Number of shares, Options outstanding, Ending | 3,000,000 | 2,250,000 |
Weighted average exercise price, Options Outstanding, Beginning | $0.12 | $0.02 |
Weighted average exercise price, Granted | $0.05 | $0.12 |
Weighted average exercise price, Cancelled | $0 | $0.14 |
Weighted average exercise price, Exercised | $0 | $0 |
Weighted average exercise price, Options Outstanding, Ending | $0.12 | $0.12 |
COMMON_STOCK_Details_2
COMMON STOCK (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Options outstanding, Beginning | 19,250,000 | 18,030,582 |
Number of shares, Granted | 6,750,000 | 4,250,000 |
Number of shares, Options outstanding, Ending | 22,123,750 | 19,250,000 |
Weighted average exercise price, Options Outstanding, Beginning | $0.08 | $0.08 |
Weighted average exercise price, Granted | $0.05 | $0.10 |
Weighted average exercise price, Cancelled or Expired | $0.14 | |
Weighted average exercise price, Options Outstanding, Ending | $0.07 | $0.08 |
Stock Option Plan 2002 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Options outstanding, Beginning | 8,000,000 | 8,000,000 |
Number of shares, Granted | 0 | 0 |
Number of shares, Cancelled or Expired | 0 | 0 |
Number of shares, Exercised | 0 | 0 |
Number of shares, Options outstanding, Ending | 8,000,000 | 8,000,000 |
Weighted average exercise price, Options Outstanding, Beginning | $0.10 | $0.10 |
Weighted average exercise price, Granted | $0 | $0 |
Weighted average exercise price, Cancelled or Expired | $0 | $0 |
Weighted average exercise price, Exercised | $0 | $0 |
Weighted average exercise price, Options Outstanding, Ending | $0.10 | $0.10 |
COMMON_STOCK_Details_3
COMMON STOCK (Details 3) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Options outstanding, Beginning | 19,250,000 | 18,030,582 |
Number of shares, Granted | 6,750,000 | 4,250,000 |
Number of shares, Cancelled | -3,030,582 | |
Number of shares, Options outstanding, Ending | 22,123,750 | 19,250,000 |
Weighted average exercise price, Options Outstanding, Beginning | $0.08 | $0.08 |
Weighted average exercise price, Granted | $0.05 | $0.10 |
Weighted average exercise price, Cancelled | $0.14 | |
Weighted average exercise price, Options Outstanding, Ending | $0.07 | $0.08 |
Non Qualified Stock Option Plan 2001 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Options outstanding, Beginning | 0 | 30,582 |
Number of shares, Granted | 0 | |
Number of shares, Cancelled | 0 | -30,582 |
Number of shares, Exercised | 0 | 0 |
Number of shares, Options outstanding, Ending | 0 | 0 |
Weighted average exercise price, Options Outstanding, Beginning | $0 | $0.00 |
Weighted average exercise price, Granted | $0.00 | |
Weighted average exercise price, Cancelled | $0 | $0.00 |
Weighted average exercise price, Exercised | $0 | $0 |
Weighted average exercise price, Options Outstanding, Ending | $0 | $0 |
COMMON_STOCK_Details_4
COMMON STOCK (Details 4) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividends | 0.00% | |
Issuances Of Stock Options One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividends | 0.00% | |
Issuances Of Stock Options One [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (based upon historical experience) | 6 years | 6 years |
Expected volatility | 130.50% | 132.84% |
Risk free interest rate | 2.00% | 2.00% |
Issuances Of Stock Options One [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (based upon historical experience) | 5 years | 5 years |
Expected volatility | 42.00% | 127.95% |
Risk free interest rate | 1.00% | 1.00% |
COMMON_STOCK_Details_5
COMMON STOCK (Details 5) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number of Shares | 26,000,000 |
Options Outstanding, Weighted Average Remaining Contractual Life (In Years) | 8 years 3 months 25 days |
Options Exercisable, Number of Shares | 22,123,750 |
Options Exercisable, Weighted Average Remaining Contractual Life (In Years) | 8 years 1 month 2 days |
Exercise Price Range 1 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Prices | 0.041 |
Options Outstanding, Number of Shares | 5,000,000 |
Options Outstanding, Weighted Average Remaining Contractual Life (In Years) | 7 years 9 months 14 days |
Options Exercisable, Number of Shares | 5,000,000 |
Options Exercisable, Weighted Average Remaining Contractual Life (In Years) | 7 years 9 months 14 days |
Exercise Price Range 2 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Prices | 0.048 |
Options Outstanding, Number of Shares | 2,000,000 |
Options Outstanding, Weighted Average Remaining Contractual Life (In Years) | 7 years 11 months 8 days |
Options Exercisable, Number of Shares | 2,000,000 |
Options Exercisable, Weighted Average Remaining Contractual Life (In Years) | 7 years 11 months 8 days |
Exercise Price Range 3 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Prices | 0.054 |
Options Outstanding, Number of Shares | 6,750,000 |
Options Outstanding, Weighted Average Remaining Contractual Life (In Years) | 9 years 10 months 20 days |
Options Exercisable, Number of Shares | 3,650,625 |
Options Exercisable, Weighted Average Remaining Contractual Life (In Years) | 9 years 10 months 20 days |
Exercise Price Range 4 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Prices | 0.065 |
Options Outstanding, Number of Shares | 5,000,000 |
Options Outstanding, Weighted Average Remaining Contractual Life (In Years) | 7 years 7 months 10 days |
Options Exercisable, Number of Shares | 5,000,000 |
Options Exercisable, Weighted Average Remaining Contractual Life (In Years) | 7 years 7 months 10 days |
Exercise Price Range 5 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Prices | 0.092 |
Options Outstanding, Number of Shares | 3,500,000 |
Options Outstanding, Weighted Average Remaining Contractual Life (In Years) | 8 years 4 months 20 days |
Options Exercisable, Number of Shares | 3,046,250 |
Options Exercisable, Weighted Average Remaining Contractual Life (In Years) | 8 years 4 months 20 days |
Exercise Price Range 6 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Prices | 0.145 |
Options Outstanding, Number of Shares | 3,000,000 |
Options Outstanding, Weighted Average Remaining Contractual Life (In Years) | 6 years 10 months 13 days |
Options Exercisable, Number of Shares | 3,000,000 |
Options Exercisable, Weighted Average Remaining Contractual Life (In Years) | 6 years 10 months 13 days |
Exercise Price Range 7 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Prices | 0.16 |
Options Outstanding, Number of Shares | 750,000 |
Options Outstanding, Weighted Average Remaining Contractual Life (In Years) | 8 years 11 months 19 days |
Options Exercisable, Number of Shares | 426,875 |
Options Exercisable, Weighted Average Remaining Contractual Life (In Years) | 8 years 11 months 19 days |
COMMON_STOCK_Details_6
COMMON STOCK (Details 6) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Options outstanding, Beginning | 19,250,000 | 18,030,582 |
Number of shares, Granted | 6,750,000 | 4,250,000 |
Number of shares, Cancelled | -3,030,582 | |
Number of Shares, Options outstanding and expected to vest | 26,000,000 | |
Number of shares, Options outstanding, Ending | 22,123,750 | 19,250,000 |
Weighted average exercise price, Options Outstanding, Beginning | $0.08 | $0.08 |
Weighted average exercise price, Granted | $0.05 | $0.10 |
Weighted average exercise price, Cancelled | $0.14 | |
Weighted average exercise price, Options outstanding and expected to vest | $0.07 | |
Weighted average exercise price, Options Outstanding, Ending | $0.07 | $0.08 |
Weighted Average Remaining Contractual Life, Options outstanding and expected to vest (In Years) | 8 years 3 months 25 days | |
Weighted Average Remaining Contractual Life, Options exercisable (In Years) | 8 years 1 month 2 days | |
Aggregate Intrinsic Value, Options outstanding and expected to vest (in dollars) | $33,000 | |
Aggregate Intrinsic Value, Options exercisable (in dollars) | $33,000 |
COMMON_STOCK_Details_Textual
COMMON STOCK (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2015 | Mar. 27, 2015 | Sep. 30, 2014 | Oct. 01, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 500,000 | |||||
Share-based Compensation, Total | $247,807 | $367,591 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $0.06 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | 250,845 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 3 months 11 days | |||||
Common Stock, Shares Authorized | 550,000,000 | 350,000,000 | 350,000,000 | |||
Stock Issued During Period, Shares, New Issues | 10,500,000 | |||||
Proceeds from Issuance of Common Stock | 525,000 | 0 | ||||
Stockholders' Equity, Reverse Stock Split | reverse stock split at a range of 1 for 10 through 1 for 50 to reduce the number of authorized shares of the Companys common stock, subject to the Board of Directors discretion. | |||||
Stock Issued During Period, Value, New Issues | 525,000 | |||||
Common Stock, Value, Subscriptions | 25,000 | 0 | ||||
Subsequent Event [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 4,400,000 | |||||
Proceeds from Issuance of Common Stock | 195,000 | 195,000 | ||||
Reverse Stock Split [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common Stock, Shares Authorized | 550,000,000 | |||||
Common Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 10,500,000 | |||||
Stock Issued During Period, Value, New Issues | $10,500 | |||||
Common Stock [Member] | Subsequent Event [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 4,400,000 | |||||
Non Qualified Stock Option Plan 2001 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in dollars per share) | $0.00 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 120,000,000 | |||||
Non Qualified Stock Option 2012 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Contractual Term | 10 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in shares) | 6,000,000 | |||||
Non Qualified Stock Option 2002 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 30,000,000 | |||||
Non Qualified Stock Option 2011 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Contractual Term | 10 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in dollars per share) | $0.00 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 30,000,000 | |||||
Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Period Description | The options granted have a 10 year contractual term and have vesting periods that range from one hundred percent on the date of grant to one third immediately, one third vesting in 18 months and the final on third vesting in 36 months from the date of the grant. | |||||
Stock Option Plan 2002 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Contractual Term | 0 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | vesting schedule of either immediately, two years, or four years from the date of grant |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | ||
Federal | $0 | $0 |
State | 2,430 | 3,650 |
Total current | 2,430 | 3,650 |
Deferred: | ||
Federal | -846,000 | 3,215,000 |
State | -424,000 | -174,000 |
Change in valuation allowance | 1,270,000 | -3,041,000 |
Total deferred | 0 | 0 |
Income tax provision (benefit) | $2,430 | $3,650 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
INCOME TAXES [Line Items] | ||
U.S. federal statutory tax rate | 34.00% | 34.00% |
State tax benefit, net | -0.04% | -0.21% |
Gain on stock price guarantee | 0.00% | 13.38% |
Other | -0.24% | -0.01% |
Valuation allowance | -33.92% | -47.48% |
Effective income tax rate | -0.20% | -0.32% |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
INCOME TAXES [Line Items] | ||
NOL's | $16,311,000 | $17,728,000 |
State taxes | -435,000 | -49,000 |
Inventory and other reserves | 194,000 | 22,000 |
Depreciation and amortization | 1,000 | -4,000 |
Change in value of stock | 238,000 | 0 |
NQ stock option expense | 674,000 | 556,000 |
Deferred Tax Assets, Gross | 16,983,000 | 18,253,000 |
Valuation allowance | -16,983,000 | -18,253,000 |
Net deferred tax asset | $0 | $0 |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | ||
Tax Adjustments, Settlements, and Unusual Provisions | $1,270,000 | ($3,041,000) |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 13,000,000 | |
Operating Loss Carryforwards Expiration Period | 2014 | |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | $45,000,000 | |
Operating Loss Carryforwards Expiration Period | 2019 |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Net revenue from external customers: | ||
Entertainment services | $647,510 | $4,189,674 |
Shipping calculator services | 149,246 | 162,894 |
Total net revenue from external customers: | 796,756 | 4,352,568 |
Operating income (loss) from operations: | ||
Entertainment services | -1,146,290 | -1,525,030 |
Shipping calculator services | 7,979 | 32,489 |
Total operating loss from operations: | ($1,138,311) | ($1,492,541) |
SUBSEQUENT_EVENTS_Details_Text
SUBSEQUENT EVENTS (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2015 | Mar. 27, 2015 | |
Subsequent Event [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 10,500,000 | |||
Proceeds from Issuance of Common Stock | $525,000 | $0 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 4,400,000 | |||
Proceeds from Issuance of Common Stock | $195,000 | $195,000 |