Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 12, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'ROOMLINX INC | ' |
Entity Central Index Key | '0001021096 | ' |
Trading Symbol | 'rmlx | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 6,411,413 |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $1,788,309 | $3,211,182 |
Accounts receivable, net | 1,856,489 | 1,761,503 |
Leases receivable, current portion | 857,405 | 995,220 |
Prepaid and other current assets | 146,091 | 115,902 |
Inventory, net | 2,659,378 | 3,308,792 |
Total current assets | 7,307,672 | 9,392,599 |
Property and equipment, net | 521,067 | 790,873 |
Leases receivable, non-current | 1,024,065 | 1,672,245 |
Total assets | 8,852,804 | 11,855,717 |
Current liabilities: | ' | ' |
Line of credit, net of discount, current portion | 340,000 | ' |
Accounts payable | 4,255,286 | 5,079,204 |
Accrued expenses and other current liabilities | 422,031 | 668,012 |
Customer deposits | 1,123,448 | 1,125,248 |
Notes payable and other obligations, current portion | 21,414 | 21,884 |
Unearned income, current portion | 119,766 | 187,540 |
Deferred revenue, current portion | 731,287 | 609,988 |
Total current liabilities | 7,013,232 | 7,691,876 |
Deferred revenue, less current portion | 270,238 | 294,963 |
Notes payable and other obligations, less current portion | 30,899 | 47,691 |
Unearned income, less current portion | 91,768 | 198,404 |
Line of credit, net of discount, less current portion | 3,923,696 | 4,007,177 |
Total liabilities | 11,329,833 | 12,240,111 |
Deficit: | ' | ' |
Common stock - $0.001 par value, 200,000,000 shares authorized: 6,411,413 and 6,405,413 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 6,411 | 6,405 |
Additional paid-in capital | 37,352,957 | 36,971,369 |
Accumulated deficit | -40,029,283 | -37,571,896 |
Accumulated other comprehensive (loss) income | -849 | 7,684 |
Total Roomlinx, Inc. shareholders' deficit | -2,526,764 | -442,438 |
Non-controlling interest | 49,735 | 58,044 |
Total deficit | -2,477,029 | -384,394 |
Total liabilities and deficit | 8,852,804 | 11,855,717 |
Class A Preferred Stock | ' | ' |
Deficit: | ' | ' |
Preferred stock - $0.20 par value, 5,000,000 shares authorized: Class A - 720,000 shares authorized, issued and outstanding (liquidation preference of $144,000) | $144,000 | $144,000 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Preferred stock, par value (in dollars per share) | $0.20 | $0.20 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 6,411,413 | 6,405,413 |
Common stock, shares outstanding | 6,411,413 | 6,405,413 |
Class A Preferred Stock | ' | ' |
Preferred stock, par value (in dollars per share) | $0.20 | $0.20 |
Preferred stock, shares authorized | 720,000 | 720,000 |
Preferred stock, shares issued | 720,000 | 720,000 |
Preferred stock, shares outstanding | 720,000 | 720,000 |
Preferred stock, liquidation preference (in dollars) | $144,000 | $144,000 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenues: | ' | ' | ' | ' |
Total | $2,988,230 | $2,387,214 | $7,559,096 | $6,060,141 |
Operating expenses: | ' | ' | ' | ' |
Operations | 256,269 | 628,638 | 1,052,499 | 1,550,403 |
Product development | 163,137 | 312,076 | 636,686 | 837,586 |
Selling, general and administrative | 600,270 | 737,066 | 2,042,856 | 1,995,343 |
Depreciation | 92,519 | 191,389 | 276,715 | 559,364 |
Loss on asset impairment | ' | 1,112,470 | ' | 1,112,470 |
Total direct costs and operating expenses | 3,212,185 | 5,045,682 | 9,704,022 | 11,402,682 |
Operating loss | -223,955 | -2,658,468 | -2,144,926 | -5,342,541 |
Non-operating income (expense): | ' | ' | ' | ' |
Interest expense | -168,190 | -157,259 | -465,947 | -450,455 |
Interest income | 44,217 | 86,279 | 145,177 | 224,188 |
Other income | ' | 181,962 | ' | 181,962 |
Total Non operating income (expense) | -123,973 | 110,982 | -320,770 | -44,305 |
Net loss | -347,928 | -2,547,486 | -2,465,696 | -5,386,846 |
Less: net (income) loss attributable to the non-controlling interest | 2,875 | -7,850 | 8,309 | -4,790 |
Net loss attributable to the Company | -345,053 | -2,555,336 | -2,457,387 | -5,391,636 |
Other comprehensive (loss) income: | ' | ' | ' | ' |
Currency translation (loss) gain | -21,283 | 29,766 | -8,533 | 22,375 |
Comprehensive loss | -366,336 | -2,525,570 | -2,465,920 | -5,369,261 |
Comprehensive loss attributable to the non-controlling interest | ' | ' | ' | ' |
Comprehensive loss attributable to the Company | -366,336 | -2,525,570 | -2,465,920 | -5,369,261 |
Net loss per common share: | ' | ' | ' | ' |
Basic and diluted (in dollars per share) | ($0.05) | ($0.40) | ($0.38) | ($0.93) |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic and diluted (in shares) | 6,407,630 | 6,404,631 | 6,406,160 | 5,803,265 |
Hospitality | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Product and installation | 1,404,535 | 1,254,998 | 2,879,357 | 2,954,406 |
Services | 1,359,827 | 910,601 | 4,020,554 | 2,414,351 |
Direct costs and operating expenses: | ' | ' | ' | ' |
Direct costs (exclusive of operating expenses and depreciation shown seperately below): | 1,948,081 | 1,918,368 | 5,209,077 | 4,862,279 |
Residential | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Services | 223,868 | 221,615 | 659,185 | 691,384 |
Direct costs and operating expenses: | ' | ' | ' | ' |
Direct costs (exclusive of operating expenses and depreciation shown seperately below): | $151,909 | $145,675 | $486,189 | $485,237 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN DEFICIT (unaudited) (USD $) | Preferred Stock A | Common Stock | Additional Paid - in Capital | Accumulated Other Comprehensive Income | Accumulated (Deficit) | Non-Contolling Interest | Total |
Balance at Dec. 31, 2012 | $144,000 | $6,405 | $36,971,369 | $7,684 | ($37,571,896) | $58,044 | ($384,394) |
Balance (in shares) at Dec. 31, 2012 | 720,000 | 6,405,413 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Restricted shares of common stock vested | ' | 6 | 11,994 | ' | ' | ' | 12,000 |
Restricted shares of common stock vested (in shares) | ' | 6,000 | ' | ' | ' | ' | ' |
Stock based compensation | ' | ' | 369,594 | ' | ' | ' | 369,594 |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Net loss | ' | ' | ' | ' | -2,457,387 | -8,309 | -2,465,696 |
Translation loss | ' | ' | ' | -8,533 | ' | ' | -8,533 |
Balance at Sep. 30, 2013 | $144,000 | $6,411 | $37,352,957 | ($849) | ($40,029,283) | $49,735 | ($2,477,029) |
Balance (in shares) at Sep. 30, 2013 | 720,000 | 6,411,413 | ' | ' | ' | ' | ' |
CONSOLIDATED_CASH_FLOW_STATEME
CONSOLIDATED CASH FLOW STATEMENTS (unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net loss | ($2,465,696) | ($5,386,846) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation | 276,715 | 559,364 |
Amortization of debt discount | 256,519 | 246,614 |
Stock-based compensation | 369,594 | 420,679 |
Compensation cost related to restricted stock issuances | 13,118 | ' |
Settlement of royalty payable | ' | -179,834 |
Provision for uncollectable accounts and leases receivable | 107,218 | 100,211 |
Reserve for inventory obsolescence | ' | 22,500 |
Asset impairment | ' | 1,112,470 |
Change in operating assets and liabilities: | ' | ' |
Accounts receivable | -119,435 | -592,176 |
Prepaid and other current assets | -30,189 | -400,782 |
Inventory | 649,414 | -2,348,144 |
Accounts payable and other liabilities | -1,071,018 | 2,375,361 |
Customer deposits | -1,800 | ' |
Unearned income | -174,410 | -161,803 |
Deferred revenue | 96,574 | 2,408,709 |
Total adjustments | 372,300 | 3,563,169 |
Net cash used in operating activities: | -2,093,396 | -1,823,677 |
Cash flows from investing activities: | ' | ' |
Lease financing provided to customers | ' | -142,879 |
Payments received on leases receivable | 703,226 | 721,739 |
Purchase of property and equipment | -16,540 | -183,789 |
Net cash provided by investing activities: | 686,686 | 395,071 |
Cash flows from financing activities: | ' | ' |
Proceeds from sale of common stock, net | ' | 2,993,311 |
Proceeds from the line of credit | ' | 1,000,000 |
Proceeds from notes payable | ' | 45,000 |
Payments on capital lease | -8,344 | -9,700 |
Payments on notes payable | -8,918 | -47,824 |
Net cash (used in) provided by financing activities | -17,262 | 3,980,787 |
Effects of foreign currency translation | 1,099 | 17,584 |
Net (decrease) increase in cash and equivalents | -1,422,873 | 2,569,765 |
Cash and equivalents at beginning of period | 3,211,182 | 361,228 |
Cash and equivalents at end of period | 1,788,309 | 2,930,993 |
Supplemental cash flow information: | ' | ' |
Cash paid for interest | 213,201 | 202,231 |
Non-cash investing and financing activities: | ' | ' |
Restricted stock vested | 12,000 | ' |
Assets acquired under capital lease | ' | 34,617 |
Warants isssed in connection with line of credit | ' | $350,167 |
Organization_and_Significant_A
Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Business Description and Accounting Policies [Abstract] | ' |
Organization and Significant Accounting Policies | ' |
1. Organization and Significant Accounting Policies | |
Description of Business: Roomlinx, Inc. (“Roomlinx” or the “Company”) is incorporated under the laws of the state of Nevada. The Company sells, installs, and services in-room media and entertainment solutions for hotels, resorts, and time share properties; including its proprietary Interactive TV platform, internet, and free to guest and video on demand programming. Roomlinx also sells, installs and services telephone, internet, and television services for residential consumers. The Company develops software and integrates hardware to facilitate the distribution of Hollywood, adult, and specialty content, business applications, national and local advertising, and concierge services. The Company also sells, installs and services hardware for wired networking solutions and wireless fidelity networking solutions, also known as Wi-Fi, for high-speed internet access to hotels, resorts, and time share locations. The Company installs and creates services that address the productivity and communications needs of hotel, resort and time share guests, as well as residential consumers. | |
Basis of Consolidation: The consolidated financial statements include Roomlinx, Inc. and its wholly-owned subsidiaries, Canadian Communications LLC, Cardinal Connect, LLC, Cardinal Broadband, LLC, and Arista Communications, LLC, a 50% subsidiary, controlled by the Company. Canadian Communications and Cardinal Connect, LLC, are non-operating entities. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Basis of Presentation: The accompanying consolidated unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included in the accompanying unaudited financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the financial statements and notes thereto, included in the Company's Form 10-K as of and for the year ended December 31, 2012. | |
Reclassification: Certain amounts in the 2012 financial statements have been reclassified to conform to the current year presentation. | |
Going Concern and Management Plans: The Company has experienced recurring losses and negative cash flows from operations. At September 30, 2013, the Company had approximate balances of cash and cash equivalents of $1,790,000, working capital of $290,000, total deficit of $2,480,000 and accumulated deficit of $40,000,000. To date the Company has in large part relied on debt and equity financing to fund its shortfall in cash generated from operations. As of September 30, 2013, the Company has available approximately $19,800,000 under its line of credit, however, as described below, any borrowings under the line of credit could be limited. | |
As described in Note 7, on May 4, 2013, the Company executed a Fourth Amendment to the Revolving Credit, Security and Warrant Purchase Agreement previously entered into by them on June 5, 2009 (the “Original Agreement”). Pursuant to the Amendment, the Original Agreement has been amended to provide that the making of any and all Revolving Loans (as defined in the Original Agreement) shall be at the sole and absolute discretion of Cenfin. Accordingly, the Company’s ability to borrow under the line of credit is at the discretion of the lender, and there are no assurances that the lender will permit the Company to borrow under the line of credit. Management is closely monitoring the cash balances, cash needs and expense levels and has implemented a cost reduction plan. Accordingly, the Company’s cash balance has remained relatively constant through the three months ended September 30, 2013. If the Company is unable to borrow additional funds under the line of credit or obtain financing from alternative sources, the Company estimates its current cash and cash equivalents are sufficient to fund operations for at least the next twelve months. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that might result should the Company be unable to continue as a going concern. | |
Accounts Receivable: Accounts receivables are uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date. Accounts receivable are stated at the amount billed to the customer. Accounts receivable in excess of 30 days old are considered delinquent. Outstanding customer invoices are periodically assessed for collectability. The assessment and related estimate are based on current credit-worthiness and payment history. As of September 30, 2013 and December 31, 2012, the Company recorded an allowance of approximately $253,000 and $229,000, respectively. | |
Revenue Recognition: Revenue is derived from the installation and ongoing services of in-room media, entertainment, and HD television programming solutions in addition to wired networking solutions and Wireless Fidelity networking solutions. Revenue is recognized when all applicable recognition criteria have been met, which generally include a) persuasive evidence of an existing arrangement; b) fixed or determinable price; c) delivery has occurred or service has been rendered; d) collectability of the sales price is reasonably assured. | |
Installations and service arrangements are contractually predetermined and such contractual arrangements may provide for multiple deliverables, revenue is recognized in accordance with ASC Topic 605, Multiple Deliverable Revenue. The application of ASC Topic 605 may result in the deferral of revenue recognition for installations across the service period of the contract and the re-allocation and/or deferral of revenue recognition across various service arrangements. Below is a summary of such application of the revenue recognition policy as it relates to installation and service arrangements the Company has with its customers. | |
The Company enters into contractual arrangements to provide multiple deliverables which may include some or all of the following - systems installations and a variety of services related to high speed internet access, free-to-guest, video on demand and iTV systems as well as residential phone, internet and television. Each of these elements must be identified and individually evaluated for separation. The term “element” is used interchangeably with the term “deliverable” and the Company considers the facts and circumstances as it relates to its performance obligations in the arrangement and includes product and service elements, a license or right to use an asset, and other obligations negotiated for and assumed in the agreement. Analyzing an arrangement to identify all of the elements requires the use of judgment. In the determination of the elements included in Roomlinx agreements, embedded software and inconsequential or perfunctory activities were taken into consideration. | |
Once the Deliverables have been identified, the Relative Fair Value of each Element was determined under the concept of Relative Selling Price (RSP) for which the Company applied the hierarchy of selling price under ASC Topic 605 as follows: | |
VSOE - Vendor specific objective evidence is still the most preferred criteria with which to establish fair value of a deliverable. VSOE is the price of a deliverable when a company sells it on an open market separately from a bundled transaction. | |
TPE - Third party evidence is the second most preferred criteria with which to establish fair value of a deliverable. The measure for the pricing of this criterion is the price that a competitor or other third party sells a similar deliverable in a similar transaction or situation. | |
RSP - Relative selling price is the price that management would use for a deliverable if the item were sold separately on a regular basis which is consistent with company selling practices. The clear distinction between RSP and VSOE is that under VSOE, management must sell or intend to sell the deliverable separately from the bundle, or has sold the deliverable separately from the bundle already. With RSP, a company may have no plan to sell the deliverable on a stand-alone basis. | |
Hospitality Installation Revenues | |
Hospitality installations include High Speed Internet Access (HSIA), Interactive Television (iTV), Free to Guest (FTG) and Video on Demand (VOD). Under the terms of these typical product sales and equipment installation contracts, a 50% deposit is due at the time of contract execution and is recorded as deferred revenue. Upon the completion of the installation process, deferred revenue is realized. However, in some cases related to VOD installations or upgrades, the Company extends credit to customers and records a receivable against the revenue recognized at the completion of the installation. | |
Additionally, the Company may provide the customer with a lease financing arrangement provided the customer has demonstrated its credit worthiness to the satisfaction of the Company. Under the terms and conditions of the lease arrangements, these leases have been classified and recorded as Sale-Type Leases under ASC Topic 840-30 and accordingly, revenue is recognized upon completion and customer acceptance of the installation which gives rise to a lease receivable and unearned income. | |
Hospitality Service, Content and Usage Revenues | |
The Company provides ongoing 24x7 support to both its hotel customers and their guests, content and maintenance as applicable to those products purchased, installed and serviced under contract. Generally, support is invoiced in arrears on a monthly basis with content and usage, which are dependent on guest take rates and buying habits. Service maintenance and usage revenue also includes revenue from meeting room services, which are billed as the events occur. | |
Residential Revenues | |
Residential revenues consist of equipment sales and installation charges, support and maintenance of voice, internet, and television services, and content provider residuals, installation commissions, and management fees. Installations charges are added to the monthly service fee for voice, internet, and television, which is invoiced in advance creating deferred revenue to be realized in the appropriate period. The Company’s policy prohibits the issuance of customer credits during the month of cancelation. The Company earns residuals as a percentage of monthly customer service charges and a flat rate for each new customer sign up. Residuals are recorded monthly. Commissions and management fees are variable and therefore revenue is recognized at the time of payment. | |
Concentrations | |
Credit Risk: The Company's operating cash balances are maintained in financial institutions and periodically exceed federally insured limits. The Company believes that the financial strength of these institutions mitigates the underlying risk of loss. To date, these concentrations of credit risk have not had a significant impact on the Company’s financial position or results of operations. | |
Accounts Receivable: At September 30, 2013 and December 31, 2012, Hyatt Corporation-controlled properties represented 42% and 49%, respectively of accounts receivable, and other Hyatt properties in the aggregate represented 33% and 29%, respectively, of accounts receivable. | |
Revenue: During the three months ended September 30, 2013 and 2012, Hyatt Corporation-controlled properties contributed 29% and 28%, respectively, and other Hyatt properties in the aggregate contributed 56% and 43%, respectively, of Roomlinx’s US Hospitality revenue. Additionally, one customer contributed 54% to Roomlinx’s Canadian hospitality revenue in 2013 versus contributing 55% in 2012. | |
During the nine months ended September 30, 2013 and 2012, Hyatt Corporation-controlled properties contributed 25% and 38%, respectively, and other Hyatt properties in the aggregate contributed 55% and 29%, respectively, of Roomlinx’s US Hospitality revenue. Additionally, one customer contributed 53% to Roomlinx’s Canadian hospitality revenue in 2013 versus contributing 54% in 2012. | |
Fair Value Measurement: The Company discloses fair value information about financial instruments based on a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2013 and December 31, 2012. | |
The respective carrying value of certain financial instruments approximate their fair values. These financial instruments include cash and cash equivalents, accounts receivable, leases receivable, accounts payable, capital lease obligations, notes payable and the line of credit. The carrying value of cash and cash equivalents, accounts receivable, leases receivable, and accounts payable approximate fair value due to their short term nature. The carrying amount of capital lease obligations and notes payable approximates their fair values as the pricing and terms of these liabilities approximate market rates. The fair value of the line of credit is not practicable to estimate because of the related party nature of the underlying transactions. The Company has no financial instruments with the exception of cash and cash equivalents (level 1) valued on a recurring basis. | |
Long-Lived Assets: The Company reviews the carrying value of long-lived assets, such as property and equipment, whenever events or circumstances indicate the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized to reduce the carrying value of the asset to its estimated fair value. | |
Segments: We operate and prepare our financial reports based on two segments; Hospitality and Residential. We have determined these segments based on the location, design, and end users of our products. | |
Hospitality: Our Hospitality segment includes hotels, resorts, and timeshare properties in the United States, Canada, and Other Foreign. As of September 30, 2013 and 2012, Other Foreign included Mexico and Aruba. The products offered under our hospitality segment include the installation of, and the support and service of, high-speed internet access networks, proprietary Interactive TV platform, free to guest programming, and on-demand movie programming, as well as advertising and e-commerce products. | |
Residential: Our residential segment includes multi-dwelling unit customers and business customers (non-hospitality) in the United States. The products offered include the installation of, and the support and service of, telephone, internet, and television services. | |
Foreign Currency Translation: The US Dollar is the functional currency of the Company. Assets and liabilities denominated in foreign currencies are re-measured into US Dollars and the resulting gains and losses are included in the consolidated statements of comprehensive loss as a component of other income (expense). | |
Earnings (Loss) Per Share: The Company computes earnings (loss) per share by dividing net income (loss) by the weighted average number of shares of common stock and dilutive common stock equivalents outstanding during the period. Dilutive common stock equivalents consist of shares issuable upon the exercise of the Company's stock options and warrants. Potentially dilutive securities, purchase stock options and warrants, are excluded from the calculation when their inclusion would be anti-dilutive, such as periods when a net loss is reported or when the exercise price of the instrument exceeds the fair market value. Accordingly, the weighted average shares outstanding have not been adjusted for dilutive shares. Outstanding stock options and warrants are not considered in the calculation as the impact of the potential common shares (totaling approximately 2,440,720 and 2,477,541 shares as of September 30, 2013 and September 30, 2012, respectively) would be to decrease the net loss per share. | |
Use of Estimates: The preparation of the Company’s consolidated financial statements in conformity with generally accepted accounting principles requires the Company’s management to make estimates and assumptions that affect the amounts of assets and liabilities, the 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. Actual results could differ from those estimates. |
Leases_Receivable
Leases Receivable | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Receivables [Abstract] | ' | ||||
Leases Receivable | ' | ||||
2. Leases Receivable | |||||
As of September 30, 2013, the Company had $1,881,470 in leases receivables compared to $2,802,465 at December 31, 2012, less a reserve for uncollectible accounts of $0 and $135,000, respectively. During the nine months ended September 30, 2013 and 2012 the Company received payments of $703,226 and $721,739, respectively. The Company did not enter into any new leases in the nine months ended September 30, 2013; and during the nine months ended September 30, 2012, the Company entered into one lease receivable in the amount of $142,879. These leases have terms of 60 months and an average interest rate of 9.5%. In addition, during the nine months ended September 30, 2013 and 2012, the Company recorded a loss of $82,768 and $60,211 respectively, related to the early termination of lease receivable contracts. These amounts are net of the return of equipment to inventory and are included in direct costs in the consolidated statements of comprehensive loss. | |||||
Future minimum receipts on lease receivables are as follows: | |||||
Twelve Months ended | Minimum Receipts | ||||
September 30, | |||||
2014 | $ | 857,405 | |||
2015 | 650,661 | ||||
2016 | 307,957 | ||||
2017 | 65,447 | ||||
$ | 1,881,470 | ||||
Inventory
Inventory | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
3. Inventory | |||||||||
Inventory, principally large order quantity items which are required for the Company’s media and entertainment installations, is stated at the lower of cost (first-in, first-out) basis or market. The Company generally maintains only the inventory necessary for contemplated installations. Work in progress represents the cost of equipment and third party installation related to installations which were not yet completed. | |||||||||
The Company performs an analysis of slow-moving or obsolete inventory periodically and any necessary valuation reserves, which could potentially be significant, are included in the period in which the evaluations are completed. As of September 30, 2013 and December 31, 2012, the inventory obsolescence reserve was mainly related to raw materials and results in a new cost basis for accounting purposes. | |||||||||
Inventory balances as of September 30, 2013 and December 31, 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 2,381,470 | $ | 2,546,441 | |||||
Work in process | 397,908 | 882,351 | |||||||
2,779,378 | 3,428,792 | ||||||||
Reserve for obsolescence | (120,000 | ) | (120,000 | ) | |||||
Inventory, net | $ | 2,659,378 | $ | 3,308,792 | |||||
Asset_Impairment
Asset Impairment | 9 Months Ended |
Sep. 30, 2013 | |
Asset Impairment Charges [Abstract] | ' |
Asset Impairment | ' |
4. Asset Impairment | |
The Company’s wholly-owned subsidiary, Cardinal Hospitality, Ltd. (“CHL”) provides video-on-demand (“VOD”) utilizing proprietary technology to approximately 130 hotel properties in Canada (“the CHL properties”). The CHL properties are primarily economy-class hotels. | |
During the three months ended September 30, 2012, the Company determined that it would no longer utilize its proprietary VOD system in future VOD service installations. Rather than invest in upgrading or refreshing its proprietary technology, the Company determined it would purchase a third-party platform for all future VOD installations. In addition, it concluded that its primary business strategy and technology development efforts will be focused on its proprietary interactive TV platform. Due to the economy class nature of the CHL properties, management determined that the interactive TV platform is not appropriate for deployment at those properties. Consequently, while services provided to the CHL properties will continue, no significant new business development will be pursued. | |
As a result of this strategic change we performed an evaluation as of September 30, 2012 of our long-lived assets associated with the CHL properties consisting primarily of property, plant, and equipment and property receivables. In assessing impairment for long-lived assets we followed the provisions of ASC 360. We performed our testing of the asset group at the individual property level, and our assessment included contractual terms and identifiable cash flows associated with providing on-going service. | |
In performing the test, we determined that the total of the expected future undiscounted cash flows directly related to services provided at the CHL properties was less than the carrying value of the asset group. Therefore, an impairment charge was required. An impairment charge of approximately $920,000 and $47,000 related to PP&E and property receivables, respectively, represented the difference between the fair values of the asset group and its carrying values and is reflected as Loss on asset impairment in the consolidated statements of comprehensive loss for the three and nine months ended September 30, 2012. The impairment charges resulted from the excess of the carrying value of the asset group over the fair value (calculated based on the discounted expected future cash flows associated with VOD and free to guest services during the underlying contractual period). | |
In addition, we performed an analysis of the value of inventory held by CHL to determine the impact of the change in business strategy, as of September 30, 2012. We determined that a write off of approximately $146,000 was required to reflect the obsolete nature of the inventory associated with VOD service. The charge is included in the Loss on asset impairment in the consolidated statements of comprehensive loss for the three and nine months ended September 30, 2012. |
Settlement_of_Royalty_Payable
Settlement of Royalty Payable | 9 Months Ended |
Sep. 30, 2013 | |
Settlement Of Royalty Payable [Abstract] | ' |
Settlement of Royalty Payable | ' |
5. Settlement of Royalty Payable | |
In November 2011, the Company entered into a revised license agreement for studio films. Under the terms of the agreement, the Company was required to pay $105,000 in four equal quarterly payments to settle all previous amounts due to a studio. In August 2012, the Company made the final payment resulting in a gain on the settlement of royalty payable in the amount of $179,834, such amount representing the excess of the accrued liability less the agreed upon settlement of $105,000. The settlement of royalty payable is included in other income on the consolidated statements of comprehensive loss for the three and nine months ended September 30, 2012. | |
Notes_Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2013 | |
Notes Payable [Abstract] | ' |
Notes Payable | ' |
6. Notes Payable | |
The Company has a note payable with a principal balance of $33,843 at September 30, 2013 versus three notes payable with an aggregate principal balance of $42,761 at December 31, 2012. This note bears interest at 11%, and expires August 1, 2016. Monthly principal and interest payments total $1,163. |
Line_of_Credit
Line of Credit | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Line Of Credit [Abstract] | ' | ||||
Line of Credit | ' | ||||
7. Line of Credit | |||||
On June 5, 2009, the Company entered into a Revolving Credit, Security and Warrant Purchase Agreement (the “Credit Agreement”) with Cenfin LLC, an entity principally owned by significant shareholders of the Company. The Credit Agreement permits us to borrow up to $25 million until June 5, 2017. On May 3, 2013, the Company and Cenfin executed a fourth amendment to the Credit Agreement which provided Cenfin sole and absolute discretion related to funding any advance requested by Roomlinx. Advances must be repaid at the earlier of 5 years from the date of borrowing or at the expiration of the Credit Agreement. The principal balance may be repaid at any time without penalty. Borrowings accrue interest, payable quarterly on the unpaid principal and interest at a rate equal to the Federal Funds Rate at July 15 of each year plus 5% (approximately 5.19% at September 30, 2013). The Credit Agreement is collateralized by substantially all of our assets, and requires the Company to maintain a total outstanding indebtedness to total assets ratio of less than 3 to 1. | |||||
Amounts outstanding under the Credit Agreement were $5,176,000 at September 30, 2013 and December 31, 2012. These advances will be repaid at various dates between 2014 and 2017. A total of $19,824,000 is available for future borrowings, subject to the terms of the amended agreement. Interest expense of $190,252 and $196,846, exclusive of accretion of the debt discount of $256,519 and $246,614, was recorded for the nine months ended September 30, 2013 and 2012, respectively. The unamortized balance of the debt discount was $912,304 and $1,168,823 at September 30, 2013 and December 31, 2012, respectively. | |||||
The Credit Agreement requires that, in conjunction with each advance, we issue Cenfin warrants to purchase shares of Roomlinx common stock equal to 50% of the principal amount funded divided by (i) $2.00 on the first $5,000,000 of borrowings on or after July 15, 2010 ($4,712,000 as of September 30, 2013) or (ii) thereafter the fair market value of the Company’s common stock on the date of such draw for advances in excess of $5,000,000. The exercise price of the warrants is $2.00 for the warrants issued on the first $5,000,000 of borrowings made after July 15, 2010 and, thereafter, the average of the high and low market price for the Company’s common stock on the date of issuance. The exercise period of these warrants expire three years from the date of issuance. | |||||
Future minimum payments against the line of credit are as follows: | |||||
Twelve Months ended | Minimum | ||||
September 30, | Payments | ||||
2014 | $ | 340,000 | |||
2015 | 1,106,000 | ||||
2016 | 2,130,000 | ||||
2017 | 1,600,000 | ||||
$ | 5,176,000 |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
8. Commitments and Contingencies | |
Operating Leases: On April 10, 2012 the Company executed a lease agreement for office space with an effective date of May 1, 2012. Terms of the lease established a base rent per square foot plus operating expenses throughout the term of the lease which expires September 30, 2015, and which includes the lessor waiving several months of base rent and pre-defined annual escalation of the base rent per square foot. The Company had a deferred rent liability of $52,259 and $55,025 included in other liabilities as of September 30, 2013 and December 31, 2012, respectively. The Company has future minimum lease payments of $137,764 and $152,085 during the twelve months ended September 30, 2014 and 2015, respectively. | |
Capital Lease Obligations: The Company has a capital lease arrangement related to the acquisition of software. These arrangements are collateralized by the software and expire in March 2015 with future minimum lease payments as follows: $12,036 and $6,434 for the twelve month periods ended September 30, 2014 and 2015, respectively. |
Equity
Equity | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||
Equity | ' | ||||||||||||||||
9. Equity | |||||||||||||||||
Preferred Stock: The Company has authorized 5,000,000 preferred shares with a $0.20 par value, of which 720,000 shares have been designated as Class A Preferred Stock. The Class A Preferred stock has a liquidation preference of $0.20 per share and is entitled to receive cumulative annual dividends at the rate of 9%, payable in either cash or additional shares of Class A Preferred Stock, at the option of the Company. As of September 30, 2013 and December 31, 2012 there were 720,000 shares of Class A Preferred Stock issued and outstanding. Undeclared Class A dividends accumulated and unpaid as of September 30, 2013 and December 31, 2012, were $194,880 and $185,160, respectively; these dividends are not included in accrued expenses. | |||||||||||||||||
Common Stock: The Company has authorized 200,000,000 shares of $0.001 par value common stock. As of September 30, 2013 and December 31, 2012, there were 6,411,413 and 6,405,413 shares of common stock issued and outstanding, respectively. | |||||||||||||||||
During the nine months ended September 30, 2013, the Company granted 24,000 restricted shares of common stock at a fair market value of $2.00 per share (equal to the closing price of the Company’s common stock quoted on the NASDAQ Bulletin Board Service as of the grant date) to three non-employee directors of the Company. The shares vest in equal annual installments beginning on August 27, 2013 through 2015. | |||||||||||||||||
As of July 31, 2013, one of the non-employee directors resigned resulting in the forfeiture of 6,000 restricted shares of common stock. During the nine months ended September 30, 2013, the Company recognized non-employee director compensation cost of $13,118 recorded in selling, general and administrative expenses in the consolidated statement of comprehensive loss and in accrued expenses in the accompanying balance sheet. | |||||||||||||||||
Warrants: | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, the Company had 1,542,800 warrants outstanding of which, 902,800 warrants were issued in connection with the line of credit (see Note 7). | |||||||||||||||||
During the nine months ended September 30, 2012, 250,000 warrants were granted pursuant to clauses in the Cenfin Credit Agreement. The warrants were issued at an exercise price of $2.00 per share, vested immediately and expire three years from the date of grant. In addition, 640,000 warrants were issued pursuant to clauses in the Stock Purchase Agreement dated May 4, 2012, between the Company and certain investors. These warrants were issued at an exercise price of $3.75 per share, vested immediately and expire three years from the date of grant. No warrants were issued in the nine month period ended September 30, 2013. | |||||||||||||||||
The following are assumptions utilized in estimation of the fair value of the warrants issued during the nine month period ended September 30, 2012: | |||||||||||||||||
2012 | |||||||||||||||||
Term | 3 years | ||||||||||||||||
Expected volatility | 108% - 148% | ||||||||||||||||
Risk free interest rate | 0.35% - 0.57% | ||||||||||||||||
Dividend yield | 0% | ||||||||||||||||
The following is a summary of such outstanding warrants for the nine month period ended September 30, 2013: | |||||||||||||||||
Warrants | Shares | Weighted | Weighted | Aggregate | |||||||||||||
Underlying | Average | Remaining | Intrinsic | ||||||||||||||
Warrants | Exercise | Contractual | Value | ||||||||||||||
Price | Life (in years) | ||||||||||||||||
Outstanding at January 1, 2013 | 1,542,800 | $ | 2.84 | ||||||||||||||
Granted and Issued | - | - | |||||||||||||||
Expired/Cancelled | - | - | |||||||||||||||
Outstanding and exercisable at September 30, 2013 | 1,542,800 | $ | 2.84 | 1.22 | $ | - | |||||||||||
Options: | |||||||||||||||||
In 2004, the Company adopted a long term incentive stock option plan (the “Stock Option Plan”) which covers key employees, officers, directors and other individuals providing bona fide services to the Company. On December 27, 2012, subject to stockholder approval, the board of directors voted to amend the Stock Option Plan to (i) adjust the maximum allowable shares of common stock upon exercise of options which may be granted from 1,200,000 to 2,000,000 shares of common stock and (ii) remove the provision from the Stock Option Plan which provided that any shares that are surrendered to or withheld by the Company in connection with any award or that are otherwise forfeited after issuance shall not be available for purchase pursuant to incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended. As of September 30, 2013, options to purchase 897,920 shares were outstanding. The options vest as determined by the Board of Directors and are exercisable for a period of no more than 10 years. | |||||||||||||||||
On January 11, 2013, the board of directors approved the grant of 30,000 Incentive Stock Options at an exercise price of $2.06 per share. These options vest ratably on the anniversary date over a three year period and expire 7 years from the grant date. The weighted average grant date fair value of such options was $1.68. | |||||||||||||||||
Pursuant to the execution of the Hyatt MSA, on March 14, 2012 the board of directors approved the grant of 500,000 stock options (“Hyatt options”) at a strike price of $4.00 per share vesting on a pro rata basis over three years or the acceleration of such vesting rights relative to installation performance metrics at the Hyatt properties as defined by the board of directors, whichever is greater, and expiring 7 years from the date of grant. On December 27, 2012, the board of directors approved re-pricing the Hyatt options from the exercise price of $4.00 per share to $2.10 per share ($0.10 above the closing price per the NASDAQ OTC Bulletin as of that date), resulting in a change to the expected volatility and risk free interest rate as previously reported. | |||||||||||||||||
On June 14, 2013, the Company had outstanding options to purchase an aggregate of 925,027 shares of common stock, of which options to purchase 300,833 shares of common stock were Hyatt Options, when the Board determined to reduce the exercise price of a total of 354,445 of the non-Hyatt Options to $0.60 per share (the closing price of the common stock on June 14, 2013 was $0.60 per share). None of the Options subject to the exercise price reduction are Hyatt Options. | |||||||||||||||||
The following are the assumptions utilized in the estimation of stock-based compensation related to the stock option grants for the nine month periods ended September 30, 2013 and September 30, 2012: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected term | 7 years | 7 years | |||||||||||||||
Expected volatility | 213% | 218% - 225% | |||||||||||||||
Risk free interest rate | 1.28% | 1.11% - 1.69% | |||||||||||||||
Dividend yield | 0% | 0% | |||||||||||||||
A summary of stock option activity under the Stock Option Plan is presented below: | |||||||||||||||||
Number of | Weighted | Remaining | Aggregate | ||||||||||||||
Shares | Average | Contractual | Intrinsic | ||||||||||||||
Exercise | Life (in | Value | |||||||||||||||
Price | years) | ||||||||||||||||
Outstanding at January 1, 2013 | 1,086,074 | $ | 2.74 | ||||||||||||||
Granted | 30,000 | 0.6 | |||||||||||||||
Forfeited | (218,154 | ) | 2.27 | ||||||||||||||
Outstanding at September 30, 2013 | 897,920 | $ | 1.6 | 4.9 | $ | - | |||||||||||
Exercisable at September 30, 2013 | 428,314 | $ | 1.78 | 3.78 | $ | - | |||||||||||
The Company recorded stock-based compensation expense of $369,594 and $420,679 for the nine month periods ended September 30, 2013 and 2012, respectively. The amounts are recorded in selling, general and administrative expense in the consolidated statements of comprehensive loss. The fair value of stock options that vested and became exercisable during the nine months ended September 30, 2013 and 2012 was $334,618 and $24,620 respectively. At September 30, 2013, there was approximately $1,100,000 in unrecognized compensation cost related to stock options that will be recorded over a weighted average future period of approximately 3 years. | |||||||||||||||||
A summary of the activity of non-vested options under the Company’s plan for the nine months ended September 30, 2013 is presented below: | |||||||||||||||||
Non-vested | Weighted | Weighted | |||||||||||||||
Shares | Average | Average | |||||||||||||||
Underlying | Exercise | Grant Date | |||||||||||||||
Options | Price | Fair Value | |||||||||||||||
Non-vested at January 1, 2013 | 763,363 | $ | 2.16 | $ | 1.95 | ||||||||||||
Granted | 30,000 | 0.6 | 0.6 | ||||||||||||||
Vested | (151,683 | ) | 1.91 | 1.82 | |||||||||||||
Forfeited | (172,074 | ) | 2.2 | 1.96 | |||||||||||||
Non-vested at September 30, 2013 | 469,606 | $ | 1.43 | $ | 1.33 |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
10. Segment Information | |||||||||||||||||
Financial information for our segment as of and for the three and nine months ended September 30, 2013 and 2012, is as follows: | |||||||||||||||||
Hospitality | Residential | Corporate | Totals | ||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||
Revenue | $ | 2,764,362 | $ | 223,868 | $ | - | $ | 2,988,230 | |||||||||
Operating income (loss) | $ | 153,921 | $ | (41,477 | ) | $ | (336,399 | ) | $ | (223,955 | ) | ||||||
Net income (loss) | $ | 29,948 | $ | (41,477 | ) | $ | (336,399 | ) | $ | (347,928 | ) | ||||||
Three months ended September 30, 2012 | |||||||||||||||||
Revenue | $ | 2,165,599 | $ | 221,615 | $ | - | $ | 2,387,214 | |||||||||
Operating loss | $ | (2,181,514 | ) | $ | (45,306 | ) | $ | (431,648 | ) | $ | (2,658,468 | ) | |||||
Net loss | $ | (1,985,025 | ) | $ | (45,306 | ) | $ | (517,155 | ) | $ | (2,547,486 | ) | |||||
Nine months ended September 30, 2013 | |||||||||||||||||
Revenue | $ | 6,899,911 | $ | 659,185 | $ | - | $ | 7,559,096 | |||||||||
Operating loss | $ | (717,272 | ) | $ | (242,943 | ) | $ | (1,184,711 | ) | $ | (2,144,926 | ) | |||||
Net loss | $ | (1,038,042 | ) | $ | (242,943 | ) | $ | (1,184,711 | ) | $ | (2,465,696 | ) | |||||
Nine months ended September 30, 2012 | |||||||||||||||||
Revenue | $ | 5,368,757 | $ | 691,384 | $ | - | $ | 6,060,141 | |||||||||
Operating loss | $ | (4,114,148 | ) | $ | (111,821 | ) | $ | (1,116,572 | ) | $ | (5,342,541 | ) | |||||
Net loss | $ | (3,909,414 | ) | $ | (111,821 | ) | $ | (1,365,611 | ) | $ | (5,386,846 | ) | |||||
As of September 30, 2013 | |||||||||||||||||
Total assets | $ | 8,563,448 | $ | 206,717 | $ | 82,639 | $ | 8,852,804 | |||||||||
Financial information of geographical data by segment as of and for the three and nine months ended September 30, 2013 and 2012, is as follows: | |||||||||||||||||
United States | Canada | Other Foreign | Totals | ||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||
Hospitality: | |||||||||||||||||
Product and installation | $ | 1,404,535 | $ | - | $ | - | $ | 1,404,535 | |||||||||
Services | 1,234,474 | 115,081 | 10,272 | $ | 1,359,827 | ||||||||||||
Residential: | |||||||||||||||||
Services | 223,868 | - | - | $ | 223,868 | ||||||||||||
Totals | $ | 2,862,877 | $ | 115,081 | $ | 10,272 | $ | 2,988,230 | |||||||||
Three months ended September 30, 2012 | |||||||||||||||||
Hospitality: | |||||||||||||||||
Product and installation | $ | 1,254,998 | $ | - | $ | - | $ | 1,254,998 | |||||||||
Services | 695,502 | 189,334 | 25,765 | $ | 910,601 | ||||||||||||
Residential: | |||||||||||||||||
Services | 221,615 | - | - | $ | 221,615 | ||||||||||||
Totals | $ | 2,172,115 | $ | 189,334 | $ | 25,765 | $ | 2,387,214 | |||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Hospitality: | |||||||||||||||||
Product and installation | $ | 2,879,357 | $ | - | $ | - | $ | 2,879,357 | |||||||||
Services | 3,476,251 | 369,187 | 175,116 | $ | 4,020,554 | ||||||||||||
Residential: | |||||||||||||||||
Services | 659,185 | - | - | $ | 659,185 | ||||||||||||
Totals | $ | 7,014,793 | $ | 369,187 | $ | 175,116 | $ | 7,559,096 | |||||||||
Nine months ended September 30, 2012 | |||||||||||||||||
Hospitality: | |||||||||||||||||
Product and installation | $ | 2,954,406 | $ | - | $ | - | $ | 2,954,406 | |||||||||
Services | 1,816,736 | 494,204 | 103,411 | $ | 2,414,351 | ||||||||||||
Residential: | |||||||||||||||||
Services | 691,384 | - | - | $ | 691,384 | ||||||||||||
Totals | $ | 5,462,526 | $ | 494,204 | $ | 103,411 | $ | 6,060,141 | |||||||||
As of September 30, 2013 | |||||||||||||||||
Total assets | $ | 8,150,455 | $ | 477,861 | $ | 224,488 | $ | 8,852,804 |
Contingent_Liabilities
Contingent Liabilities | 9 Months Ended | ||
Sep. 30, 2013 | |||
Loss Contingency [Abstract] | ' | ||
Contingent Liabilities | ' | ||
11 | Contingent Liabilities | ||
The Company is in receipt of a District Court Civil Summons, dated May 29, 2012, in the matter of “CLC Networks, Inc. and Skada Capital, LLC v. Roomlinx, Inc.”, commenced in the District Court of Boulder County, Colorado (the “Action”). The plaintiffs in the Action claim that the Company owes them certain unpaid sales commissions, including with respect to Hyatt Corporation in connection with that certain Master Services and Equipment Purchase Agreement, as described in the Company’s Current Report on Form 8-K, as filed with the Securities and Exchange Commission on March 13, 2012. The Company believes the plaintiffs’ claims are without merit. The Action is currently pending. | |||
The Company is in receipt of a letter from Technology Integration Group ("TIG") demanding payment of approximately $2,430,000 with respect to inventory and services which the Company purchased from TIG. The amount (net of payments made in 2013) is recorded in accounts payable in the accompanying consolidated balance sheets as of September 30, 2013 and December 31, 2012. TIG subsequently filed an action in California State Court although the Company has not yet been served in such action. The Company believes that it has meritorious defenses and counterclaims in respect of TIG's claim. The Company intends to pursue a settlement of all claims with TIG and is in discussions with TIG in respect thereof. | |||
The Company is in receipt of a request for indemnification from Hyatt in connection with a case brought in US Federal Court in California by Ameranth, Inc., against, among others, Hyatt. In connection with such case, the plaintiffs have identified the Company’s e-concierge software as allegedly infringing Ameranth’s patents. The Company licenses the e-concierge software from a third party and accordingly has made a corresponding indemnification request to such third party. The Company believes that any such claim may also be covered by the Company’s liability insurance coverage and accordingly the Company does not expect that this matter will result in any material liability to the Company. | |||
The Company is in receipt of a District Court Civil Summons, dated August 23, 2013, in the matter of “ScanSource v. Roomlinx, Inc.”, commenced in the District Court of Greenville County, South Carolina (the “Action”). The plaintiffs in the Action claim that the Company owes them approximately $473,000 with respect to inventory which the Company purchased. The amount is recorded in accounts payable in the accompanying consolidated balance sheets as of September 30, 2013 and December 31, 2012. The Company intends to pursue a settlement of all claims. | |||
The Company is in receipt of a letter from the BSA Software Alliance (“BSA”) in connection with copyright infringement of computer software products alleging the unauthorized duplication of various computer software products. BSA has threatened to file an action against the Company if it does not timely respond to its request for an internal audit. The Company intends to review BSA’s claims and respond appropriately. |
Organization_and_Significant_A1
Organization and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Business Description and Accounting Policies [Abstract] | ' |
Basis of Consolidation | ' |
Basis of Consolidation: The consolidated financial statements include Roomlinx, Inc. and its wholly-owned subsidiaries, Canadian Communications LLC, Cardinal Connect, LLC, Cardinal Broadband, LLC, and Arista Communications, LLC, a 50% subsidiary, controlled by the Company. Canadian Communications and Cardinal Connect, LLC, are non-operating entities. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Basis of Presentation | ' |
Basis of Presentation: The accompanying consolidated unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included in the accompanying unaudited financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the financial statements and notes thereto, included in the Company's Form 10-K as of and for the year ended December 31, 2012. | |
Reclassification | ' |
Reclassification: Certain amounts in the 2012 financial statements have been reclassified to conform to the current year presentation. | |
Going Concern and Management Plans | ' |
Going Concern and Management Plans: The Company has experienced recurring losses and negative cash flows from operations. At September 30, 2013, the Company had approximate balances of cash and cash equivalents of $1,790,000, working capital of $290,000, total deficit of $2,480,000 and accumulated deficit of $40,000,000. To date the Company has in large part relied on debt and equity financing to fund its shortfall in cash generated from operations. As of September 30, 2013, the Company has available approximately $19,800,000 under its line of credit, however, as described below, any borrowings under the line of credit could be limited. | |
As described in Note 7, on May 4, 2013, the Company executed a Fourth Amendment to the Revolving Credit, Security and Warrant Purchase Agreement previously entered into by them on June 5, 2009 (the “Original Agreement”). Pursuant to the Amendment, the Original Agreement has been amended to provide that the making of any and all Revolving Loans (as defined in the Original Agreement) shall be at the sole and absolute discretion of Cenfin. Accordingly, the Company’s ability to borrow under the line of credit is at the discretion of the lender, and there are no assurances that the lender will permit the Company to borrow under the line of credit. Management is closely monitoring the cash balances, cash needs and expense levels and has implemented a cost reduction plan. Accordingly, the Company’s cash balance has remained relatively constant through the three months ended September 30, 2013. If the Company is unable to borrow additional funds under the line of credit or obtain financing from alternative sources, the Company estimates its current cash and cash equivalents are sufficient to fund operations for at least the next twelve months. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that might result should the Company be unable to continue as a going concern. | |
Accounts receivable | ' |
Accounts Receivable: Accounts receivables are uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date. Accounts receivable are stated at the amount billed to the customer. Accounts receivable in excess of 30 days old are considered delinquent. Outstanding customer invoices are periodically assessed for collectability. The assessment and related estimate are based on current credit-worthiness and payment history. As of September 30, 2013 and December 31, 2012, the Company recorded an allowance of approximately $253,000 and $229,000, respectively. | |
Revenue Recognition | ' |
Revenue Recognition: Revenue is derived from the installation and ongoing services of in-room media, entertainment, and HD television programming solutions in addition to wired networking solutions and Wireless Fidelity networking solutions. Revenue is recognized when all applicable recognition criteria have been met, which generally include a) persuasive evidence of an existing arrangement; b) fixed or determinable price; c) delivery has occurred or service has been rendered; d) collectability of the sales price is reasonably assured. | |
Installations and service arrangements are contractually predetermined and such contractual arrangements may provide for multiple deliverables, revenue is recognized in accordance with ASC Topic 605, Multiple Deliverable Revenue. The application of ASC Topic 605 may result in the deferral of revenue recognition for installations across the service period of the contract and the re-allocation and/or deferral of revenue recognition across various service arrangements. Below is a summary of such application of the revenue recognition policy as it relates to installation and service arrangements the Company has with its customers. | |
The Company enters into contractual arrangements to provide multiple deliverables which may include some or all of the following - systems installations and a variety of services related to high speed internet access, free-to-guest, video on demand and iTV systems as well as residential phone, internet and television. Each of these elements must be identified and individually evaluated for separation. The term “element” is used interchangeably with the term “deliverable” and the Company considers the facts and circumstances as it relates to its performance obligations in the arrangement and includes product and service elements, a license or right to use an asset, and other obligations negotiated for and assumed in the agreement. Analyzing an arrangement to identify all of the elements requires the use of judgment. In the determination of the elements included in Roomlinx agreements, embedded software and inconsequential or perfunctory activities were taken into consideration. | |
Once the Deliverables have been identified, the Relative Fair Value of each Element was determined under the concept of Relative Selling Price (RSP) for which the Company applied the hierarchy of selling price under ASC Topic 605 as follows: | |
VSOE - Vendor specific objective evidence is still the most preferred criteria with which to establish fair value of a deliverable. VSOE is the price of a deliverable when a company sells it on an open market separately from a bundled transaction. | |
TPE - Third party evidence is the second most preferred criteria with which to establish fair value of a deliverable. The measure for the pricing of this criterion is the price that a competitor or other third party sells a similar deliverable in a similar transaction or situation. | |
RSP - Relative selling price is the price that management would use for a deliverable if the item were sold separately on a regular basis which is consistent with company selling practices. The clear distinction between RSP and VSOE is that under VSOE, management must sell or intend to sell the deliverable separately from the bundle, or has sold the deliverable separately from the bundle already. With RSP, a company may have no plan to sell the deliverable on a stand-alone basis. | |
Hospitality Installation Revenues | |
Hospitality installations include High Speed Internet Access (HSIA), Interactive Television (iTV), Free to Guest (FTG) and Video on Demand (VOD). Under the terms of these typical product sales and equipment installation contracts, a 50% deposit is due at the time of contract execution and is recorded as deferred revenue. Upon the completion of the installation process, deferred revenue is realized. However, in some cases related to VOD installations or upgrades, the Company extends credit to customers and records a receivable against the revenue recognized at the completion of the installation. | |
Additionally, the Company may provide the customer with a lease financing arrangement provided the customer has demonstrated its credit worthiness to the satisfaction of the Company. Under the terms and conditions of the lease arrangements, these leases have been classified and recorded as Sale-Type Leases under ASC Topic 840-30 and accordingly, revenue is recognized upon completion and customer acceptance of the installation which gives rise to a lease receivable and unearned income. | |
Hospitality Service, Content and Usage Revenues | |
The Company provides ongoing 24x7 support to both its hotel customers and their guests, content and maintenance as applicable to those products purchased, installed and serviced under contract. Generally, support is invoiced in arrears on a monthly basis with content and usage, which are dependent on guest take rates and buying habits. Service maintenance and usage revenue also includes revenue from meeting room services, which are billed as the events occur. | |
Residential Revenues | |
Residential revenues consist of equipment sales and installation charges, support and maintenance of voice, internet, and television services, and content provider residuals, installation commissions, and management fees. Installations charges are added to the monthly service fee for voice, internet, and television, which is invoiced in advance creating deferred revenue to be realized in the appropriate period. The Company’s policy prohibits the issuance of customer credits during the month of cancelation. The Company earns residuals as a percentage of monthly customer service charges and a flat rate for each new customer sign up. Residuals are recorded monthly. Commissions and management fees are variable and therefore revenue is recognized at the time of payment. | |
Concentrations | ' |
Concentrations | |
Credit Risk: The Company's operating cash balances are maintained in financial institutions and periodically exceed federally insured limits. The Company believes that the financial strength of these institutions mitigates the underlying risk of loss. To date, these concentrations of credit risk have not had a significant impact on the Company’s financial position or results of operations. | |
Accounts Receivable: At September 30, 2013 and December 31, 2012, Hyatt Corporation-controlled properties represented 42% and 49%, respectively of accounts receivable, and other Hyatt properties in the aggregate represented 33% and 29%, respectively, of accounts receivable. | |
Revenue: During the three months ended September 30, 2013 and 2012, Hyatt Corporation-controlled properties contributed 29% and 28%, respectively, and other Hyatt properties in the aggregate contributed 56% and 43%, respectively, of Roomlinx’s US Hospitality revenue. Additionally, one customer contributed 54% to Roomlinx’s Canadian hospitality revenue in 2013 versus contributing 55% in 2012. | |
During the nine months ended September 30, 2013 and 2012, Hyatt Corporation-controlled properties contributed 25% and 38%, respectively, and other Hyatt properties in the aggregate contributed 55% and 29%, respectively, of Roomlinx’s US Hospitality revenue. Additionally, one customer contributed 53% to Roomlinx’s Canadian hospitality revenue in 2013 versus contributing 54% in 2012. | |
Fair Value Measurement | ' |
Fair Value Measurement: The Company discloses fair value information about financial instruments based on a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2013 and December 31, 2012. | |
The respective carrying value of certain financial instruments approximate their fair values. These financial instruments include cash and cash equivalents, accounts receivable, leases receivable, accounts payable, capital lease obligations, notes payable and the line of credit. The carrying value of cash and cash equivalents, accounts receivable, leases receivable, and accounts payable approximate fair value due to their short term nature. The carrying amount of capital lease obligations and notes payable approximates their fair values as the pricing and terms of these liabilities approximate market rates. The fair value of the line of credit is not practicable to estimate because of the related party nature of the underlying transactions. The Company has no financial instruments with the exception of cash and cash equivalents (level 1) valued on a recurring basis. | |
Long-Lived Assets | ' |
Long-Lived Assets: The Company reviews the carrying value of long-lived assets, such as property and equipment, whenever events or circumstances indicate the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized to reduce the carrying value of the asset to its estimated fair value. | |
Segments | ' |
Segments: We operate and prepare our financial reports based on two segments; Hospitality and Residential. We have determined these segments based on the location, design, and end users of our products. | |
Hospitality: Our Hospitality segment includes hotels, resorts, and timeshare properties in the United States, Canada, and Other Foreign. As of September 30, 2013 and 2012, Other Foreign included Mexico and Aruba. The products offered under our hospitality segment include the installation of, and the support and service of, high-speed internet access networks, proprietary Interactive TV platform, free to guest programming, and on-demand movie programming, as well as advertising and e-commerce products. | |
Residential: Our residential segment includes multi-dwelling unit customers and business customers (non-hospitality) in the United States. The products offered include the installation of, and the support and service of, telephone, internet, and television services. | |
Foreign Currency Translation | ' |
Foreign Currency Translation: The US Dollar is the functional currency of the Company. Assets and liabilities denominated in foreign currencies are re-measured into US Dollars and the resulting gains and losses are included in the consolidated statements of comprehensive loss as a component of other income (expense). | |
Earnings (Loss) Per Share | ' |
Earnings (Loss) Per Share: The Company computes earnings (loss) per share by dividing net income (loss) by the weighted average number of shares of common stock and dilutive common stock equivalents outstanding during the period. Dilutive common stock equivalents consist of shares issuable upon the exercise of the Company's stock options and warrants. Potentially dilutive securities, purchase stock options and warrants, are excluded from the calculation when their inclusion would be anti-dilutive, such as periods when a net loss is reported or when the exercise price of the instrument exceeds the fair market value. Accordingly, the weighted average shares outstanding have not been adjusted for dilutive shares. Outstanding stock options and warrants are not considered in the calculation as the impact of the potential common shares (totaling approximately 2,440,720 and 2,477,541 shares as of September 30, 2013 and September 30, 2012, respectively) would be to decrease the net loss per share. | |
Use of Estimates | ' |
Use of Estimates: The preparation of the Company’s consolidated financial statements in conformity with generally accepted accounting principles requires the Company’s management to make estimates and assumptions that affect the amounts of assets and liabilities, the 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. Actual results could differ from those estimates. |
Leases_Receivable_Tables
Leases Receivable (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Receivables [Abstract] | ' | ||||
Schedule of future minimum receipts on lease receivables | ' | ||||
Twelve Months ended | Minimum Receipts | ||||
September 30, | |||||
2014 | $ | 857,405 | |||
2015 | 650,661 | ||||
2016 | 307,957 | ||||
2017 | 65,447 | ||||
$ | 1,881,470 | ||||
Inventory_Tables
Inventory (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of inventory balances | ' | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 2,381,470 | $ | 2,546,441 | |||||
Work in process | 397,908 | 882,351 | |||||||
2,779,378 | 3,428,792 | ||||||||
Reserve for obsolescence | (120,000 | ) | (120,000 | ) | |||||
Inventory, net | $ | 2,659,378 | $ | 3,308,792 | |||||
Line_of_Credit_Tables
Line of Credit (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Line Of Credit [Abstract] | ' | ||||
Schedule of future minimum payments under the line of credit | ' | ||||
Twelve Months ended | Minimum | ||||
September 30, | Payments | ||||
2014 | $ | 340,000 | |||
2015 | 1,106,000 | ||||
2016 | 2,130,000 | ||||
2017 | 1,600,000 | ||||
$ | 5,176,000 | ||||
Equity_Tables
Equity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||
Schedule of estimation of the fair value of the warrants granted | ' | ||||||||||||||||
2012 | |||||||||||||||||
Term | 3 years | ||||||||||||||||
Expected volatility | 108% - 148% | ||||||||||||||||
Risk free interest rate | 0.35% - 0.57% | ||||||||||||||||
Dividend yield | 0% | ||||||||||||||||
Schedule of outstanding warrants | ' | ||||||||||||||||
Warrants | Shares | Weighted | Weighted | Aggregate | |||||||||||||
Underlying | Average | Remaining | Intrinsic | ||||||||||||||
Warrants | Exercise | Contractual | Value | ||||||||||||||
Price | Life (in years) | ||||||||||||||||
Outstanding at January 1, 2013 | 1,542,800 | $ | 2.84 | ||||||||||||||
Granted and Issued | - | - | |||||||||||||||
Expired/Cancelled | - | - | |||||||||||||||
Outstanding and exercisable at September 30, 2013 | 1,542,800 | $ | 2.84 | 1.22 | $ | - | |||||||||||
Schedule of fair value assumption in stock based compensation related to stock option | ' | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected term | 7 years | 7 years | |||||||||||||||
Expected volatility | 213% | 218% - 225% | |||||||||||||||
Risk free interest rate | 1.28% | 1.11% - 1.69% | |||||||||||||||
Dividend yield | 0% | 0% | |||||||||||||||
Schedule of stock option activity under the stock option plan | ' | ||||||||||||||||
Number of | Weighted | Remaining | Aggregate | ||||||||||||||
Shares | Average | Contractual | Intrinsic | ||||||||||||||
Exercise | Life (in | Value | |||||||||||||||
Price | years) | ||||||||||||||||
Outstanding at January 1, 2013 | 1,086,074 | $ | 2.74 | ||||||||||||||
Granted | 30,000 | 0.6 | |||||||||||||||
Forfeited | (218,154 | ) | 2.27 | ||||||||||||||
Outstanding at September 30, 2013 | 897,920 | $ | 1.6 | 4.9 | $ | - | |||||||||||
Exercisable at September 30, 2013 | 428,314 | $ | 1.78 | 3.78 | $ | - | |||||||||||
Schedule of non-vested options under the company's plan | ' | ||||||||||||||||
Non-vested | Weighted | Weighted | |||||||||||||||
Shares | Average | Average | |||||||||||||||
Underlying | Exercise | Grant Date | |||||||||||||||
Options | Price | Fair Value | |||||||||||||||
Non-vested at January 1, 2013 | 763,363 | $ | 2.16 | $ | 1.95 | ||||||||||||
Granted | 30,000 | 0.6 | 0.6 | ||||||||||||||
Vested | (151,683 | ) | 1.91 | 1.82 | |||||||||||||
Forfeited | (172,074 | ) | 2.2 | 1.96 | |||||||||||||
Non-vested at September 30, 2013 | 469,606 | $ | 1.43 | $ | 1.33 | ||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of financial information of segments | ' | ||||||||||||||||
Hospitality | Residential | Corporate | Totals | ||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||
Revenue | $ | 2,764,362 | $ | 223,868 | $ | - | $ | 2,988,230 | |||||||||
Operating income (loss) | $ | 153,921 | $ | (41,477 | ) | $ | (336,399 | ) | $ | (223,955 | ) | ||||||
Net income (loss) | $ | 29,948 | $ | (41,477 | ) | $ | (336,399 | ) | $ | (347,928 | ) | ||||||
Three months ended September 30, 2012 | |||||||||||||||||
Revenue | $ | 2,165,599 | $ | 221,615 | $ | - | $ | 2,387,214 | |||||||||
Operating loss | $ | (2,181,514 | ) | $ | (45,306 | ) | $ | (431,648 | ) | $ | (2,658,468 | ) | |||||
Net loss | $ | (1,985,025 | ) | $ | (45,306 | ) | $ | (517,155 | ) | $ | (2,547,486 | ) | |||||
Nine months ended September 30, 2013 | |||||||||||||||||
Revenue | $ | 6,899,911 | $ | 659,185 | $ | - | $ | 7,559,096 | |||||||||
Operating loss | $ | (717,272 | ) | $ | (242,943 | ) | $ | (1,184,711 | ) | $ | (2,144,926 | ) | |||||
Net loss | $ | (1,038,042 | ) | $ | (242,943 | ) | $ | (1,184,711 | ) | $ | (2,465,696 | ) | |||||
Nine months ended September 30, 2012 | |||||||||||||||||
Revenue | $ | 5,368,757 | $ | 691,384 | $ | - | $ | 6,060,141 | |||||||||
Operating loss | $ | (4,114,148 | ) | $ | (111,821 | ) | $ | (1,116,572 | ) | $ | (5,342,541 | ) | |||||
Net loss | $ | (3,909,414 | ) | $ | (111,821 | ) | $ | (1,365,611 | ) | $ | (5,386,846 | ) | |||||
As of September 30, 2013 | |||||||||||||||||
Total assets | $ | 8,563,448 | $ | 206,717 | $ | 82,639 | $ | 8,852,804 | |||||||||
Schedule of financial information of geographical data by segment | ' | ||||||||||||||||
United States | Canada | Other Foreign | Totals | ||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||
Hospitality: | |||||||||||||||||
Product and installation | $ | 1,404,535 | $ | - | $ | - | $ | 1,404,535 | |||||||||
Services | 1,234,474 | 115,081 | 10,272 | $ | 1,359,827 | ||||||||||||
Residential: | |||||||||||||||||
Services | 223,868 | - | - | $ | 223,868 | ||||||||||||
Totals | $ | 2,862,877 | $ | 115,081 | $ | 10,272 | $ | 2,988,230 | |||||||||
Three months ended September 30, 2012 | |||||||||||||||||
Hospitality: | |||||||||||||||||
Product and installation | $ | 1,254,998 | $ | - | $ | - | $ | 1,254,998 | |||||||||
Services | 695,502 | 189,334 | 25,765 | $ | 910,601 | ||||||||||||
Residential: | |||||||||||||||||
Services | 221,615 | - | - | $ | 221,615 | ||||||||||||
Totals | $ | 2,172,115 | $ | 189,334 | $ | 25,765 | $ | 2,387,214 | |||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Hospitality: | |||||||||||||||||
Product and installation | $ | 2,879,357 | $ | - | $ | - | $ | 2,879,357 | |||||||||
Services | 3,476,251 | 369,187 | 175,116 | $ | 4,020,554 | ||||||||||||
Residential: | |||||||||||||||||
Services | 659,185 | - | - | $ | 659,185 | ||||||||||||
Totals | $ | 7,014,793 | $ | 369,187 | $ | 175,116 | $ | 7,559,096 | |||||||||
Nine months ended September 30, 2012 | |||||||||||||||||
Hospitality: | |||||||||||||||||
Product and installation | $ | 2,954,406 | $ | - | $ | - | $ | 2,954,406 | |||||||||
Services | 1,816,736 | 494,204 | 103,411 | $ | 2,414,351 | ||||||||||||
Residential: | |||||||||||||||||
Services | 691,384 | - | - | $ | 691,384 | ||||||||||||
Totals | $ | 5,462,526 | $ | 494,204 | $ | 103,411 | $ | 6,060,141 | |||||||||
As of September 30, 2013 | |||||||||||||||||
Total assets | $ | 8,150,455 | $ | 477,861 | $ | 224,488 | $ | 8,852,804 | |||||||||
Organization_and_Significant_A2
Organization and Significant Accounting Policies (Detail Textuals) (USD $) | 9 Months Ended | |||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |
Organization, Consolidation and Presentation Of Financial Statements [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $1,788,309 | $3,211,182 | $2,930,993 | $361,228 |
Working capital | 290,000 | ' | ' | ' |
Total deficit | 2,480,000 | ' | ' | ' |
Accumulated deficit | -40,029,283 | -37,571,896 | ' | ' |
Line of credit facility available for future borrowings | 19,800,000 | ' | ' | ' |
Allowance for doubtful accounts receivable | $253,000 | $229,000 | ' | ' |
Arista Communications, LLC | ' | ' | ' | ' |
Organization, Consolidation and Presentation Of Financial Statements [Line Items] | ' | ' | ' | ' |
Percentage of interest held by Canadian Communication LLC | 50.00% | ' | ' | ' |
Organization_and_Significant_A3
Organization and Significant Accounting Policies (Detail Textuals 1) (Accounts Receivable, Credit Risk) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Hyatt Corporation | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage | 42.00% | 49.00% |
Other Hyatt properties | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage | 33.00% | 29.00% |
Organization_and_Significant_A4
Organization and Significant Accounting Policies (Detail Textuals 2) (Credit Risk, Revenue, Hospitality) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Customer | Customer | Customer | Customer | |
CANADA | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Number of customers | 1 | 1 | 1 | 1 |
Concentration risk percentage | 54.00% | 55.00% | 53.00% | 54.00% |
Hyatt Corporation | United states | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk percentage | 29.00% | 28.00% | 25.00% | 38.00% |
Other Hyatt properties | United states | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concentration risk percentage | 56.00% | 43.00% | 55.00% | 29.00% |
Organization_and_Significant_A5
Organization and Significant Accounting Policies (Detail Textuals 3) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Number of operating segments | 2 | ' |
Percentage of deposit due and recorded as deferred revenue | 50.00% | ' |
Warrants And Stock Options | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Outstanding stock options and warrants are not considered in the calculation of earnings per share (in shares) | 2,440,720 | 2,477,541 |
Leases_Receivable_Future_minim
Leases Receivable - Future minimum receipts on lease receivables (Details) (USD $) | Sep. 30, 2013 |
Receivables [Abstract] | ' |
2014 | $857,405 |
2015 | 650,661 |
2016 | 307,957 |
2017 | 65,447 |
Total future minimum receipts | $1,881,470 |
Leases_Receivable_Detail_Textu
Leases Receivable (Detail Textuals) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Lease_Receivable | |||
Receivables [Abstract] | ' | ' | ' |
Leases receivables | $1,881,470 | ' | $2,802,465 |
Leases receivables, reserve for uncollectable accounts | 0 | ' | 135,000 |
Payments received on leases receivable | 703,226 | 721,739 | ' |
Number of lease receivable | ' | 1 | ' |
Payments to acquire lease receivables | ' | 142,879 | ' |
Term of lease agreement | ' | '60 months | ' |
Interest rate on lease | ' | 9.50% | ' |
Loss due to early termination of lease receivable contracts | $82,768 | $60,211 | ' |
Inventory_Details
Inventory (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $2,381,470 | $2,546,441 |
Work in process | 397,908 | 882,351 |
Inventory, gross | 2,779,378 | 3,428,792 |
Reserve for obsolescence | -120,000 | -120,000 |
Inventory, net | $2,659,378 | $3,308,792 |
Asset_Impairment_Details_Textu
Asset Impairment (Details Textuals) (USD $) | 9 Months Ended | ||||
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Cardinal Hospitality, Ltd | Property, Plant and Equipment | Property receivables | Canada | ||
Video on demand | Cardinal Hospitality, Ltd | Cardinal Hospitality, Ltd | Cardinal Hospitality, Ltd | ||
Hotel | |||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Number of hotels in canada | ' | ' | ' | ' | 130 |
Impairment charges | ' | ' | $920,000 | $47,000 | ' |
Inventory Write-down | $22,500 | $146,000 | ' | ' | ' |
Settlement_of_Royalty_Payable_
Settlement of Royalty Payable (Detail Textuals) (USD $) | 9 Months Ended | 1 Months Ended | |
Sep. 30, 2012 | Aug. 31, 2012 | Nov. 30, 2011 | |
Revised license agreement for studio films | Revised license agreement for studio films | ||
Installment | |||
Settlement Of Royalty Payable [Line Items] | ' | ' | ' |
Royalty payable under the agreement | ' | ' | $105,000 |
Number of quarterly payments | ' | ' | 4 |
Gain on the settlement of royalty payable | $179,834 | $179,834 | ' |
Notes_Payable_Detail_Textuals
Notes Payable (Detail Textuals) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Note_Payable | ||
Debt Instrument [Line Items] | ' | ' |
Number of notes payable | ' | 3 |
Aggregate principal balance of three notes payable | $33,843 | $42,761 |
Interest rate on notes payable | 11.00% | 11.00% |
Description of principal and interest payment | 'Monthly | ' |
Monthly principal and interest payments | $1,163 | ' |
Line_of_Credit_Future_minimum_
Line of Credit - Future minimum payments under the line of credit (Details) (Revolving Credit, USD $) | Sep. 30, 2013 |
Revolving Credit | ' |
Line Of Credit Facility [Line Items] | ' |
2014 | $340,000 |
2015 | 1,106,000 |
2016 | 2,130,000 |
2017 | 1,600,000 |
Total | $5,176,000 |
Line_of_Credit_Detail_Textuals
Line of Credit (Detail Textuals) (USD $) | 0 Months Ended | 9 Months Ended | ||
Jun. 05, 2009 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Line of credit facility available for future borrowings | ' | $19,800,000 | ' | ' |
Revolving Credit | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Amounts outstanding under the credit agreement | ' | 5,176,000 | ' | ' |
Unamortized balance of debt discount | ' | 912,304 | ' | 1,168,823 |
Revolving Credit | Credit Agreement | Cenfin LLC | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Revolving credit maximum permissible borrowing limit | 25,000,000 | ' | ' | ' |
Period of repayment of advances | '5 years | ' | ' | ' |
Description of interest rate on borrowings | 'Borrowings accrue interest, payable quarterly on the unpaid principal and interest at a rate equal to the Federal Funds Rate at July 15 of each year plus 5% (approximately 5.19% at September 30, 2013) | ' | ' | ' |
Description of variable rate basis | 'Federal Funds Rate | ' | ' | ' |
Variable basis spread | 5.00% | ' | ' | ' |
Interest rate | ' | 5.19% | ' | ' |
Total outstanding indebtedness to total assets ratio maintained by company | 'Less than 3 to 1 | ' | ' | ' |
Amounts outstanding under the credit agreement | ' | 5,176,000 | ' | 5,176,000 |
Line of credit facility available for future borrowings | ' | 19,824,000 | ' | ' |
Interest expense | ' | 190,252 | 196,846 | ' |
Accretion of the debt discount | ' | $256,519 | $246,614 | ' |
Line_of_Credit_Detail_Textuals1
Line of Credit (Detail Textuals 1) (Revolving Credit, Security and Warrant Purchase Agreement, Cenfin LLC, USD $) | 0 Months Ended | 9 Months Ended |
Jul. 15, 2010 | Sep. 30, 2013 | |
Revolving Credit | Security and Warrant Purchase Agreement | Cenfin LLC | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Percentage of principal amount of borrowing used for warrants issue | ' | 50.00% |
Exercise price of warrant on the first $5,000,000 of borrowings | ' | 2 |
Specified amount of first draw | $5,000,000 | $4,712,000 |
Minimum first draw amount for determining number of shares called by warrants using fair market value | ' | 5,000,000 |
Maximum amount drawn | ' | $5,000,000 |
Exercise price of warrants (in dollars per warrant) | ' | 2 |
Warrant expiry period | ' | '3 years |
Commitments_and_Contingencies_
Commitments and Contingencies (Detail Textuals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Deferred rent liability included in other liability | $52,259 | $55,025 |
Operating Leases Future Minimum Payments: | ' | ' |
Future minimum operating leases payments for 2014 | 137,764 | ' |
Future minimum operating lease payments for 2015 | $152,085 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Detail Textuals 1) (Software, USD $) | Sep. 30, 2013 |
Software | ' |
Capital Lease Future Minimum Payments: | ' |
Future minimum capital lease obligations payments for 2014 | $12,036 |
Future minimum capital lease obligations payments for 2015 | $6,434 |
Equity_Estimation_fair_value_o
Equity - Estimation fair value of warrants granted (Details) (Warrants) | 9 Months Ended |
Sep. 30, 2012 | |
Class of Warrant or Right [Line Items] | ' |
Term | '3 years |
Dividend yield | 0.00% |
Minimum | ' |
Class of Warrant or Right [Line Items] | ' |
Expected volatility | 108.00% |
Risk free interest rate | 0.35% |
Maximum | ' |
Class of Warrant or Right [Line Items] | ' |
Expected volatility | 148.00% |
Risk free interest rate | 0.57% |
Equity_Outstanding_warrants_De
Equity - Outstanding warrants (Details 1) (Warrants, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Warrants | ' |
Shares Underlying Warrants | ' |
Outstanding at January 1, 2013 | 1,542,800 |
Granted and Issued | ' |
Expired/Cancelled | ' |
Outstanding and exercisable at September 30, 2013 | 1,542,800 |
Weighted Average Exercise Price | ' |
Outstanding at January 1, 2013 | $2.84 |
Granted and Issued | ' |
Expired/Cancelled | ' |
Outstanding and exercisable at September 30, 2013 | $2.84 |
Outstanding and exercisable, Weighted Remaining Contractual Life (in years) | '1 year 2 months 19 days |
Outstanding and exercisable, Aggregate Intrinsic Value | ' |
Equity_Fair_value_assumption_o
Equity - Fair value assumption of options in stock based compensation (Details 2) (Stock options) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' | ' |
Expected term | '7 years | '7 years |
Expected volatility | 213.00% | ' |
Risk free interest rate | 1.28% | ' |
Dividend yield | 0.00% | 0.00% |
Minimum | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' | ' |
Expected volatility | ' | 218.00% |
Risk free interest rate | ' | 1.11% |
Maximum | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' | ' |
Expected volatility | ' | 225.00% |
Risk free interest rate | ' | 1.69% |
Equity_Summary_of_stock_option
Equity - Summary of stock option activity under stock option plan (Details 3) (Stock options, USD $) | Jun. 14, 2013 | Sep. 30, 2013 |
Stock option plan | ||
Options, Number of Shares | ' | ' |
Outstanding at January 1, 2013 | 925,027 | 1,086,074 |
Granted | ' | 30,000 |
Forfeited | ' | -218,154 |
Outstanding at September 30, 2013 | 925,027 | 897,920 |
Exercisable at September 30, 2013 | ' | 428,314 |
Options, Weighted Average Exercise Price | ' | ' |
Outstanding at January 1, 2013 | ' | $2.74 |
Granted | ' | $0.60 |
Forfeited | ' | $2.27 |
Outstanding at September 30, 2013 | ' | $1.60 |
Exercisable at September 30, 2013 | ' | $1.78 |
Options Outstanding, Remaining Contractual Life (in years) | ' | '4 years 10 months 24 days |
Options Exercisable, Remaining Contractual Life (in years) | ' | '3 years 9 months 11 days |
Options Outstanding, Aggregate Intrinsic Value | ' | ' |
Options Exercisable, Aggregate Intrinsic Value | ' | ' |
Equity_Summary_of_activity_of_
Equity - Summary of activity of non-vested options (Details 4) (Stock option plan, Stock options, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Stock option plan | Stock options | ' |
Non-vested Shares Underlying Options | ' |
Non-vested at January 1, 2013 | 763,363 |
Granted | 30,000 |
Vested | -151,683 |
Forfeited | -172,074 |
Non-vested at September 30, 2013 | 469,606 |
Weighted Average Exercise Price | ' |
Non-vested at January 1, 2013 | $2.16 |
Granted | $0.60 |
Vested | $1.91 |
Forfeited | $2.20 |
Non-vested at September 30, 2013 | $1.43 |
Weighted Average Grant Date Fair Value | ' |
Non-vested at January 1, 2013 | $1.95 |
Granted | $0.60 |
Vested | $1.82 |
Forfeited | $1.96 |
Non-vested at September 30, 2013 | $1.33 |
Equity_Detail_Textuals
Equity (Detail Textuals) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Class of Stock [Line Items] | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $0.20 | $0.20 |
Class A Preferred Stock | ' | ' |
Class of Stock [Line Items] | ' | ' |
Preferred stock, shares authorized | 720,000 | 720,000 |
Preferred stock, par value (in dollars per share) | $0.20 | $0.20 |
Preferred stock, shares issued | 720,000 | 720,000 |
Preferred stock, shares outstanding | 720,000 | 720,000 |
Preferred stock, liquidation preference (in dollars per share) | $0.20 | ' |
Cumulative annual dividend rate | 9.00% | ' |
Accumulated and unpaid dividend (in dollars) | $194,880 | $185,160 |
Equity_Detail_Textuals_1
Equity (Detail Textuals 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | 4-May-12 | Jul. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Cenfin Credit Agreement | Stock Purchase Agreement | Restricted Stock | Restricted Stock | Warrants | Warrants | Warrants | Warrants | |||
Non employee directors | Non employee directors | Line of Credit | Line of Credit | |||||||
Director | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 200,000,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | 6,411,413 | 6,405,413 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | 6,411,413 | 6,405,413 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of non employee directors | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' |
Restricted shares of common granted | ' | ' | ' | ' | ' | 24,000 | ' | ' | ' | ' |
Fair market value (in dollars per share) | ' | ' | ' | ' | ' | $2 | ' | ' | ' | ' |
Stock based compensation recorded in selling, general and administrative expenses | ' | ' | ' | ' | ' | $13,118 | ' | ' | ' | ' |
Number of outstanding warrants | ' | ' | ' | ' | ' | ' | 1,542,800 | 1,542,800 | ' | ' |
Number of warrants issued | ' | ' | ' | 640,000 | ' | ' | ' | ' | 902,800 | 902,800 |
Forfeited restricted shares of common stock | ' | ' | ' | ' | 6,000 | ' | ' | ' | ' | ' |
Warrants granted pursuant to clause | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrants (in dollars per warrant) | ' | ' | 2 | 3.75 | ' | ' | ' | ' | ' | ' |
Term of expire | ' | ' | '3 years | '3 years | ' | ' | ' | ' | ' | ' |
Equity_Detail_Textuals_2
Equity (Detail Textuals 2) (USD $) | Jun. 14, 2013 | Jan. 11, 2013 | Dec. 27, 2012 | Mar. 14, 2012 | Jun. 14, 2013 | Jun. 14, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 27, 2012 | Dec. 31, 2004 |
Stock options | Incentive Stock Options | Stock option plan | Stock option plan | Stock option plan | Stock option plan | Stock option plan | Stock option plan | Stock option plan | Stock option plan | |
Hyatt Options | Hyatt Options | Hyatt Options | Non Hyatt Options | Stock options | Stock options | Stock options | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issue of common stock upon exercise of options granted pursuant to the Stock Option Plan (in shares) | ' | 30,000 | ' | 500,000 | ' | ' | ' | ' | 2,000,000 | 1,200,000 |
Number of option outstanding | 925,027 | ' | ' | ' | 300,833 | 354,445 | 897,920 | 1,086,074 | ' | ' |
Exercise price of option | ' | ' | $2.10 | $4 | ' | $0.60 | $0.60 | ' | ' | ' |
Exercise price of option closing price | ' | $2.06 | $0.10 | ' | ' | $0.60 | ' | ' | ' | ' |
Options vesting period | ' | '3 years | ' | '3 years | ' | ' | ' | ' | ' | ' |
Expiry period of options | ' | '7 years | ' | '7 years | ' | ' | '10 years | ' | ' | ' |
Weighted average grant fair value of options | ' | $1.68 | ' | ' | ' | ' | $0.60 | ' | ' | ' |
Equity_Detail_Textuals_3
Equity (Detail Textuals 3) (Stock options, USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Stock options | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | $369,594 | $420,679 |
Fair value of stock options that vested and became exercisable | 334,618 | 24,620 |
Unrecognized compensation cost | $1,100,000 | ' |
Weighted average future period | '3 years | ' |
Segment_Information_Segment_da
Segment Information - Segment data (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | $2,988,230 | $2,387,214 | $7,559,096 | $6,060,141 | ' |
Operating (loss) | -223,955 | -2,658,468 | -2,144,926 | -5,342,541 | ' |
Net Income (loss) | -347,928 | -2,547,486 | -2,465,696 | -5,386,846 | ' |
Total assets | 8,852,804 | ' | 8,852,804 | ' | 11,855,717 |
Operating segments | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | 2,988,230 | 2,387,214 | 7,559,096 | 6,060,141 | ' |
Total assets | 8,852,804 | ' | 8,852,804 | ' | ' |
Operating segments | Hospitality | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | 2,764,362 | 2,165,599 | 6,899,911 | 5,368,757 | ' |
Operating (loss) | 153,921 | -2,181,514 | -717,272 | -4,114,148 | ' |
Net Income (loss) | 29,948 | -1,985,025 | -1,038,042 | -3,909,414 | ' |
Total assets | 8,563,448 | ' | 8,563,448 | ' | ' |
Operating segments | Residential | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | 223,868 | 221,615 | 659,185 | 691,384 | ' |
Operating (loss) | -41,477 | -45,306 | -242,943 | -111,821 | ' |
Net Income (loss) | -41,477 | -45,306 | -242,943 | -111,821 | ' |
Total assets | 206,717 | ' | 206,717 | ' | ' |
Corporate | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Operating (loss) | -336,399 | -431,648 | -1,184,711 | -1,116,572 | ' |
Net Income (loss) | -336,399 | -517,155 | -1,184,711 | -1,365,611 | ' |
Total assets | $82,639 | ' | $82,639 | ' | ' |
Segment_Information_Geographic
Segment Information - Geographical data by segment (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Totals | $2,988,230 | $2,387,214 | $7,559,096 | $6,060,141 | ' |
Total assets | 8,852,804 | ' | 8,852,804 | ' | 11,855,717 |
Hospitality | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Product and installation | 1,404,535 | 1,254,998 | 2,879,357 | 2,954,406 | ' |
Services | 1,359,827 | 910,601 | 4,020,554 | 2,414,351 | ' |
Residential | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Services | 223,868 | 221,615 | 659,185 | 691,384 | ' |
Operating segments | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Totals | 2,988,230 | 2,387,214 | 7,559,096 | 6,060,141 | ' |
Total assets | 8,852,804 | ' | 8,852,804 | ' | ' |
Operating segments | United states | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Totals | 2,862,877 | 2,172,115 | 7,014,793 | 5,462,526 | ' |
Total assets | 8,150,455 | ' | 8,150,455 | ' | ' |
Operating segments | Canada | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Totals | 115,081 | 189,334 | 369,187 | 494,204 | ' |
Total assets | 477,861 | ' | 477,861 | ' | ' |
Operating segments | Other Foreign | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Totals | 10,272 | 25,765 | 175,116 | 103,411 | ' |
Total assets | 224,488 | ' | 224,488 | ' | ' |
Operating segments | Hospitality | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Product and installation | 1,404,535 | 1,254,998 | 2,879,357 | 2,954,406 | ' |
Services | 1,359,827 | 910,601 | 4,020,554 | 2,414,351 | ' |
Totals | 2,764,362 | 2,165,599 | 6,899,911 | 5,368,757 | ' |
Total assets | 8,563,448 | ' | 8,563,448 | ' | ' |
Operating segments | Hospitality | United states | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Product and installation | 1,404,535 | 1,254,998 | 2,879,357 | 2,954,406 | ' |
Services | 1,234,474 | 695,502 | 3,476,251 | 1,816,736 | ' |
Operating segments | Hospitality | Canada | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Product and installation | ' | ' | ' | ' | ' |
Services | 115,081 | 189,334 | 369,187 | 494,204 | ' |
Operating segments | Hospitality | Other Foreign | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Product and installation | ' | ' | ' | ' | ' |
Services | 10,272 | 25,765 | 175,116 | 103,411 | ' |
Operating segments | Residential | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Product and installation | ' | ' | ' | ' | ' |
Services | 223,868 | 221,615 | 659,185 | 691,384 | ' |
Totals | 223,868 | 221,615 | 659,185 | 691,384 | ' |
Total assets | 206,717 | ' | 206,717 | ' | ' |
Operating segments | Residential | United states | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Services | 223,868 | 221,615 | 659,185 | 691,384 | ' |
Operating segments | Residential | Canada | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Services | ' | ' | ' | ' | ' |
Operating segments | Residential | Other Foreign | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Services | ' | ' | ' | ' | ' |
Contingent_Liabilities_Detail_
Contingent Liabilities (Detail Textuals) (Pending litigation, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Technology Integration Group | ' |
Loss Contingencies [Line Items] | ' |
Payment demanded pursuant to purchase of inventory | $2,430,000 |
ScanSource | ' |
Loss Contingencies [Line Items] | ' |
Payment demanded pursuant to purchase of inventory | $473,000 |