Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 11, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | Orbital Tracking Corp. | |
Entity Central Index Key | 1,058,307 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 72,977,104 | |
Trading Symbol | TRKK | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash | $ 501,689 | $ 114,733 |
Accounts receivable, net | 212,604 | 96,758 |
Inventory | 427,570 | 335,267 |
Unbilled revenue | 88,333 | 54,344 |
Prepaid expenses | 80,582 | 171,164 |
Other current assets | 85,097 | 29,841 |
Total current assets | 1,395,875 | 802,107 |
Property and equipment, net | 1,860,716 | 1,978,338 |
Intangible assets, net | 237,500 | 250,000 |
Total assets | 3,494,091 | 3,030,445 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 879,229 | 536,906 |
Deferred revenue | 21,723 | 2,624 |
Related party payable | 60,434 | 67,453 |
Derivative liabilities - current portion | 1,237 | |
Liabilities from discontinued operations | 112,397 | 112,397 |
Total current liabilities | 1,073,783 | 720,617 |
Derivative liabilities - long term portion | ||
Total Liabilities | 1,073,783 | 720,617 |
Stockholders' Equity: | ||
Common Shares, $0.0001 par value; 750,000,000 shares authorized, 70,977,104 and 57,309,364 outstanding as of June 30, 2017 and December 31, 2016, respectively | 7,098 | 5,731 |
Additional paid-in capital | 10,390,534 | 6,935,817 |
Accumulated (deficit) | (7,961,679) | (4,601,406) |
Accumulated other comprehensive loss | (18,299) | (32,941) |
Total stockholder equity | 2,420,308 | 2,309,828 |
Total liabilities and stockholders' equity | 3,494,091 | 3,030,445 |
Preferred Series A [Member] | ||
Stockholders' Equity: | ||
Preferred Stock, $0.0001 par value; 50,000,000 shares authorized | ||
Preferred Series B [Member] | ||
Stockholders' Equity: | ||
Preferred Stock, $0.0001 par value; 50,000,000 shares authorized | 1 | 1 |
Preferred Series C [Member] | ||
Stockholders' Equity: | ||
Preferred Stock, $0.0001 par value; 50,000,000 shares authorized | 354 | 354 |
Preferred Series D [Member] | ||
Stockholders' Equity: | ||
Preferred Stock, $0.0001 par value; 50,000,000 shares authorized | 301 | 343 |
Preferred Series E [Member] | ||
Stockholders' Equity: | ||
Preferred Stock, $0.0001 par value; 50,000,000 shares authorized | 740 | 793 |
Preferred Series F [Member] | ||
Stockholders' Equity: | ||
Preferred Stock, $0.0001 par value; 50,000,000 shares authorized | 110 | 110 |
Preferred Series G [Member] | ||
Stockholders' Equity: | ||
Preferred Stock, $0.0001 par value; 50,000,000 shares authorized | 1,008 | 1,008 |
Preferred Series H [Member] | ||
Stockholders' Equity: | ||
Preferred Stock, $0.0001 par value; 50,000,000 shares authorized | 9 | 9 |
Preferred Series I [Member] | ||
Stockholders' Equity: | ||
Preferred Stock, $0.0001 par value; 50,000,000 shares authorized | 9 | 9 |
Preferred Series J [Member] | ||
Stockholders' Equity: | ||
Preferred Stock, $0.0001 par value; 50,000,000 shares authorized | 5 | |
Preferred Series K [Member] | ||
Stockholders' Equity: | ||
Preferred Stock, $0.0001 par value; 50,000,000 shares authorized | $ 117 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 70,977,104 | 57,309,364 |
Common stock, shares outstanding | 70,977,104 | 57,309,364 |
Preferred Series A [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 20,000 | 20,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Preferred Series B [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 30,000 | 30,000 |
Preferred stock, shares issued | 6,666 | 6,666 |
Preferred stock, shares outstanding | 6,666 | 6,666 |
Preferred Series C [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 |
Preferred stock, shares issued | 3,540,365 | 3,540,365 |
Preferred stock, shares outstanding | 3,540,365 | 3,540,365 |
Preferred Series D [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 3,008,984 | 3,428,984 |
Preferred stock, shares outstanding | 3,008,984 | 3,428,984 |
Preferred Series E [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 8,746,000 | 8,746,000 |
Preferred stock, shares issued | 7,402,877 | 7,929,651 |
Preferred stock, shares outstanding | 7,402,877 | 7,929,651 |
Preferred Series F [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,100,000 | 1,100,000 |
Preferred stock, shares issued | 1,099,998 | 1,099,998 |
Preferred stock, shares outstanding | 1,099,998 | 1,099,998 |
Preferred Series G [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,090,000 | 10,090,000 |
Preferred stock, shares issued | 10,083,351 | 10,083,351 |
Preferred stock, shares outstanding | 10,083,351 | 10,083,351 |
Preferred Series H [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 200,000 | 200,000 |
Preferred stock, shares issued | 87,500 | 87,500 |
Preferred stock, shares outstanding | 87,500 | 87,500 |
Preferred Series I [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 114,944 | 114,944 |
Preferred stock, shares issued | 92,944 | 92,944 |
Preferred stock, shares outstanding | 92,944 | 92,944 |
Preferred Series J [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | ||
Preferred stock, shares issued | 54,669 | 54,669 |
Preferred stock, shares outstanding | 54,669 | 54,669 |
Preferred Series K [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,250,000 | 1,250,000 |
Preferred stock, shares issued | 1,166,652 | 1,166,652 |
Preferred stock, shares outstanding | 1,166,652 | 1,166,652 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,567,191 | $ 1,188,593 | $ 2,938,881 | $ 2,483,857 |
Cost of sales | 1,272,551 | 1,004,891 | 2,344,325 | 1,892,323 |
Gross profit | 296,640 | 183,702 | 594,556 | 591,534 |
Operating expenses: | ||||
Selling and general administrative | 144,160 | 160,624 | 298,616 | 314,887 |
Salaries, wages and payroll taxes | 181,870 | 170,981 | 334,594 | 344,836 |
Stock based compensation | 600,000 | 600,000 | ||
Professional fees | 119,809 | 387,916 | 268,655 | 688,484 |
Depreciation and amortization | 74,086 | 63,334 | 150,158 | 146,156 |
Total operating expenses | 1,119,925 | 782,855 | 1,652,023 | 1,494,363 |
(Loss) before other expenses and income taxes | (825,287) | (599,153) | (1,057,467) | (902,829) |
Other (income) expense | ||||
Change in fair value of derivative instruments, net | (123) | 39,659 | (1,237) | (424,846) |
Interest expense | 218 | 527,108 | 436 | 602,986 |
Other expense - Subscription Holders Preferred | 2,308,981 | 2,308,981 | ||
Foreign currency exchange rate variance | (3,847) | 7,817 | (5,374) | 32,822 |
Total other expense | 2,305,229 | 574,584 | 2,302,806 | 210,962 |
Net loss | (3,130,516) | (1,173,737) | (3,360,273) | (1,113,791) |
Comprehensive Income: | ||||
Net (loss) income | (3,130,516) | (1,173,737) | (3,360,273) | (1,113,791) |
Foreign currency translation adjustments | 9,050 | 4,413 | 14,642 | (2,375) |
Comprehensive loss | $ (3,121,466) | $ (1,169,324) | $ (3,345,631) | $ (1,116,166) |
NET INCOME LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | ||||
Weighted number of common shares outstanding - basic | 67,052,540 | 27,667,167 | 43,645,916 | 24,190,850 |
Weighted number of common shares outstanding - diluted | 67,052,540 | 27,667,167 | 43,645,916 | 24,190,850 |
Basic net (loss) per share | $ (0.05) | $ (0.04) | $ (0.08) | $ (0.06) |
Diluted net (loss) per share | $ (0.05) | $ (0.04) | $ (0.08) | $ (0.06) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (3,360,273) | $ (1,113,791) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Change in fair value of derivative liabilities | 1,237 | 424,846 |
Depreciation expense | 137,658 | 133,656 |
Amortization of intangible asset | 12,500 | 12,500 |
Preferred stock-based price protection expense | 2,308,981 | |
Amortization of notes payable discount | 602,515 | |
Stock based compensation | 600,000 | |
Amortization of prepaid expense in connection with the issuance of common stock issued for prepaid services | 80,582 | 164,608 |
Imputed interest | 436 | 471 |
Change in operating assets and liabilities: | ||
Accounts receivable | (115,846) | (63,198) |
Inventory | (92,303) | (38,004) |
Unbilled revenue | (33,989) | 5,705 |
Prepaid expense | 10,000 | (1,237) |
Other current assets | (55,256) | 1,047 |
Accounts payable and accrued liabilities | 389,017 | 31,342 |
Deferred revenue | 19,099 | (16,662) |
Net (used in) operating activities | (100,631) | (705,892) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (16,964) | (30,654) |
Net (cash used) in investing activities | (16,964) | (30,654) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments of convertible notes payable | (100,834) | |
Proceeds from sale of preferred stock | 500,000 | |
Proceeds (repayments) of note payable, related party, net | (7,019) | 11,571 |
Net cash provided by (used in) financing activities | 492,981 | (89,263) |
Effect of exchange rate on cash | 11,570 | (2,375) |
Net increase (decrease) in cash | 386,956 | (828,187) |
Cash beginning of period | 114,733 | 963,329 |
Cash end of period | 501,689 | 135,142 |
Cash paid during the period for | ||
Interest | ||
Income tax | ||
NON CASH FINANCE AND INVESTING ACTIVITY | ||
Common stock issued for prepaid services | 100,000 | |
Preferred stock issued for accounts payable | 46,694 | |
Preferred stock issued for conversion of debt | $ 650,670 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the financial statements not misleading. The consolidated financial statements as of December 31, 2016 have been audited by an independent registered public accounting firm. The accounting policies and procedures employed in the preparation of these condensed consolidated financial statements have been derived from the audited financial statements of the Company for the year ended December 31, 2016, which are contained in Form 10-K as filed with the Securities and Exchange Commission on April 7, 2017. The consolidated balance sheet as of December 31, 2016 was derived from those financial statements. Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and the rules and regulations of the U.S Securities and Exchange Commission for Interim Financial Information. The condensed consolidated financial statements of the Company include the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. All adjustments (consisting of normal recurring items) necessary to present fairly the Company’s financial position as of June 30, 2017, and the results of operations and cash flows for the six months ended June 30, 2017 have been included. The results of operations for the six months ended June 30, 2017 are not necessarily indicative of the results to be expected for the full year. Description of Business Orbital Tracking Corp. (the “Company”) was formerly Great West Resources, Inc., a Nevada corporation. The Company, through its wholly owned subsidiaries, Global Telesat Communications Limited (“GTCL”) and Orbital Satcom Corp. (“Orbital Satcom”) is a provider of satellite based hardware, airtime and related services both in the United States and internationally. The Company’s principal focus is on growing the Company’s existing satellite based hardware, airtime and related services business line and developing the Company’s own tracking devices for use by retail customers worldwide. Use of Estimates In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition, and revenues and expenses for the years then ended. Actual results may differ significantly from those estimates. Significant estimates made by management include, but are not limited to, the assumptions used to calculate stock-based compensation, derivative liabilities, preferred deemed dividend and common stock issued for services. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when acquired to be cash equivalents. The Company places its cash with a high credit quality financial institution. The Company’s account at this institution is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. To reduce its risk associated with the failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds deposits. Accounts receivable and allowance for doubtful accounts The Company has a policy of reserving for questionable accounts based on its best estimate of the amount of probable credit losses in its existing accounts receivable. The Company periodically reviews its accounts receivable to determine whether an allowance is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt. Account balances deemed to be uncollectible are charged to the bad debt expense after all means of collection have been exhausted and the potential for recovery is considered remote. As of June 30, 2017, and December 31, 2016, there is an allowance for doubtful accounts of $415 and $6,720. Foreign Currency Translation The Company’s reporting currency is US Dollars. The accounts of one of the Company’s subsidiaries, GTCL, is maintained using the appropriate local currency, (Great British Pound) as the functional currency. All assets and liabilities are translated into U.S. Dollars at balance sheet date, shareholders’ equity is translated at historical rates and revenue and expense accounts are translated at the average exchange rate for the year or the reporting period. The translation adjustments are deferred as a separate component of stockholders’ equity, captioned as accumulated other comprehensive (loss) gain. Transaction gains and losses arising from exchange rate fluctuation on transactions denominated in a currency other than the functional currency is included in the statements of operations. The relevant translation rates are as follows: for the three and six months ended June 30, 2017 closing rate at 1.30240 US$: GBP, average rate at 1.27779 US$: GBP and 1.25801 US$: GBP. For the three and six months ended June 30, 2016 closing rate at 1.3311 US$: GBP, average rate at 1.43544 US$: GBP and 1.43414 US$: GBP and for the year ended 2016 closing rate at 1.2345 US$: GBP, average rate at 1.35585 US$ GBP. Global Telesat Communications LTD, (GTCL) represents 70.6% of total company sales for the six months ended June 30, 2017 and as such, currency rate variances have an impact on results. For the six months ended June 30, 2017 the net effect on revenues were impacted by the differences in exchange rate from quarterly average exchange of 1.43414 to 1.25801. Had the yearly average rate remained, sales for the six months would have been higher by $290,606. GTCL comparable sales in GBP, its home currency, increased 31.3% or £412,574, from £1,237,379 to £1,649,954, for the six months ended June 30, 2017 as compared to June 30, 2016. Revenue Recognition and Unearned Revenue The Company recognizes revenue from satellite services when earned, as services are rendered or delivered to customers. Equipment sales revenue is recognized when the equipment is delivered to and accepted by the customer. Only equipment sales are subject to warranty. Historically, the Company has not incurred significant expenses for warranties. The Company’s customers generally purchase a combination of our products and services as part of a multiple element arrangement. The Company’s assessment of which revenue recognition guidance is appropriate to account for each element in an arrangement can involve significant judgment. This assessment has a significant impact on the amount and timing of revenue recognition. Revenue is recognized when all of the following criteria have been met: ● Persuasive evidence of an arrangement exists. Contracts and customer purchase orders are generally used to determine the existence of an arrangement. ● Delivery has occurred. Shipping documents and customer acceptance, when applicable, are used to verify delivery. ● The fee is fixed or determinable. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. ● Collectability is reasonably assured. We assess collectability based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history. In accordance with ASC 605-25, Revenue Recognition Multiple-Element Arrangements, Intangible assets Intangible assets include customer contracts purchased and recorded based on the cost to acquire them. These assets are amortized over 10 years. Useful lives of intangible assets are periodically evaluated for reasonableness and the assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may no longer be recoverable. Goodwill and other intangible assets In accordance with ASC 350-30-65, “Intangibles - Goodwill and Others”, the Company assesses the impairment of identifiable intangibles whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors the Company considers to be important which could trigger an impairment review include the following: 1. Significant underperformance relative to expected historical or projected future operating results; 2. Significant changes in the manner of use of the acquired assets or the strategy for the overall business; and 3. Significant negative industry or economic trends. When the Company determines that the carrying value of intangibles may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flows, the Company records an impairment charge. The Company measures any impairment based on a projected discounted cash flow method using a discount rate determined by management to be commensurate with the risk inherent in the current business model. Significant management judgment is required in determining whether an indicator of impairment exists and in projecting cash flows. Property and Equipment Property and equipment are carried at historical cost less accumulated depreciation. Depreciation is based on the estimated service lives of the depreciable assets and is calculated using the straight-line method. Expenditures that increase the value or productive capacity of assets are capitalized. Fully depreciated assets are retained in the property and equipment, and accumulated depreciation accounts until they are removed from service. When property and equipment are retired, sold or otherwise disposed of, the asset’s carrying amount and related accumulated depreciation are removed from the accounts and any gain or loss is included in operations. Repairs and maintenance are expensed as incurred. The estimated useful lives of property and equipment are generally as follows: Years Office furniture and fixtures 4 Computer equipment 4 Appliques 10 Website development 2 Impairment of long-lived assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company did not consider it necessary to record any impairment charges during the periods ended June 30, 2017 and December 31, 2016, respectively. Fair value of financial instruments The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures”, for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing US GAAP that require the use of fair value measurements which establishes a framework for measuring fair value and expands disclosure about such fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. The following table presents a reconciliation of the derivative liability measured at fair value on a recurring basis using significant unobservable input (Level 3) from January 1, 2017 to June 30, 2017: Conversion Feature Derivative Liability Warrant Liability Total Balance at January 1, 2017 $ - $ 1,237 $ 1,237 Change in fair value included in earnings - (1,237 ) (1,237 ) Balance June 30, 2017 $ - $ - $ - The Company did not identify any other assets or liabilities that are required to be presented on the condensed consolidated balance sheets at fair value in accordance with the accounting guidance. The carrying amounts reported in the balance sheet for cash, accounts payable, and accrued expenses approximate their estimated fair market value based on the short-term maturity of the instruments. Stock Based Compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date. Income Taxes The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes The Company follows the provision of ASC 740-10 related to Accounting for Uncertain Income Tax Positions. When tax returns are filed, there may be uncertainty about the merits of positions taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured at the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefit associated with tax positions taken that exceed the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all more likely than not to be upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits. The Company has adopted ASC 740-10-25, “Definition of Settlement”, which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion and examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. The federal and state income tax returns of the Company are subject to examination by the IRS and state taxing authorities, generally for three years after they are filed. Earnings per Common Share Net income (loss) per common share is calculated in accordance with ASC Topic 260: Earnings per Share (“ASC 260”). Basic income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. The computation of diluted net loss per share does not include dilutive common stock equivalents in the weighted average shares outstanding as they would be anti-dilutive. For the three months and six months ended June 30, 2017 and June 30, 2016, respectively, the Company had net loss, therefore all dilutive securities are excluded. The following are dilutive common stock equivalents during the period ended: June 30, 2017 June 30, 2016 Convertible preferred stock 370,180,815 209,416,215 Stock options 42,850,000 2,850,000 Stock warrants - 5,000 Total 413,030,815 212,271,215 Related Party Transactions A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. Reclassifications Certain reclassifications have been made to the prior year’s financial statements to conform to the current year’s presentation. These reclassifications had no effect on previously reported results of operations. The Company reclassified certain expense accounts to conform to the currents year’s treatment. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) Revenue Recognition ”- “Revenue from Contracts with Customers; Deferral of the Effective Date,” Management does not believe that any recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements. |
Going Concern Considerations
Going Concern Considerations | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern Considerations | NOTE 2 - GOING CONCERN CONSIDERATIONS The accompanying condensed consolidated financial statements are prepared assuming the Company will continue as a going concern. At June 30, 2017, the Company had an accumulated deficit of approximately $7,961,679, working capital of approximately $322,092 and net loss of approximately $3,360,273 during the six months ended June 30, 2017. These factors raise substantial doubt about the Company’s ability to continue as a going concern for one year from the issuance of the financial statements. The ability of the Company to continue as a going concern is dependent upon obtaining additional capital and financing. Management intends to attempt to raise additional funds by way of a public or private offering. While the Company believes in the viability of its strategy to raise additional funds, there can be no assurances to that effect. The condensed consolidated financial statements do not include any adjustments relating to classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. |
Orbital Tracking Corp and Globa
Orbital Tracking Corp and Global Telesat Communications Limited Share Exchange, Reverse Acquisition and Recapitalization | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Orbital Tracking Corp and Global Telesat Communications Limited Share Exchange, Reverse Acquisition and Recapitalization | NOTE 3 – ORBITAL TRACKING CORP AND GLOBAL TELESAT COMMUNICATIONS LIMITED SHARE EXCHANGE, REVERSE ACQUISITION AND RECAPITALIZATION On February 19, 2015, the Company entered into a Share Exchange Agreement with Global Telesat Communications Limited, a Private Limited Company formed under the laws of England and Wales (“GTCL”) and all of the holders of the outstanding equity of GTCL (the “GTCL Shareholders”). Upon closing of the transactions contemplated under the Exchange Agreement the GTCL Shareholders (7 members) transferred all of the issued and outstanding equity of GTCL to the OTC in exchange for (i) an aggregate of 2,540,000 shares of the common stock of the OTC and 8,746,000 shares of the newly issued Series E Convertible Preferred Stock of the OTC with each share of Series E Convertible Preferred Stock convertible into ten shares of common stock, (ii) a cash payment of $375,000 and (iii) a one-year promissory note in the amount of $122,536. Such exchange caused GTCL to become a wholly owned subsidiary of the Company. For accounting purposes, this transaction is being accounted for as a reverse acquisition and has been treated as a recapitalization of Orbital Tracking Corp. with Global Telesat Communications Limited considered the accounting acquirer, and the financial statements of the accounting acquirer became the financial statements of the registrant. The completion of the Share Exchange resulted in a change of control. The Share Exchange was accounted for as a reverse acquisition and re-capitalization. The GTCL Shareholders obtained approximately 39% of voting control on the date of Share Exchange. GTCL was the acquirer for financial reporting purposes and the Orbital Tracking Corp. was the acquired company. The consolidated financial statements after the acquisition include the balance sheets of both companies at historical cost, the historical results of GTCL and the results of the Company from the acquisition date. All share and per share information in the accompanying consolidated financial statements and footnotes has been retroactively restated to reflect the recapitalization. As part of agreement, OTC shareholders retained 5,383,172 shares of the Common Stock, 20,000 shares of series A Convertible Preferred Stock, 6,666 shares of series B Convertible Preferred Stock, 1,197,442 shares of series C Convertible Preferred Stock and 5,000,000 shares of series D Convertible Preferred Stock. Property and equipment $ 4,973 Accounts receivable 34,585 Cash in bank 30,934 Prepaid expenses 2,219,677 Inventory 40,161 Intangible asset 250,000 Current liabilities (469,643 ) Due to related party (2,174 ) Derivative liability (4,936 ) Liabilities of discontinued operations (112,397 ) Total purchase price/assets acquired $ 1,991,180 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | NOTE 4 - STOCKHOLDERS’ EQUITY (DEFICIT) Preferred Stock As of June 30, 2017, there were 50,000,000 shares of Preferred Stock authorized. As of June 30, 2017, there were 20,000 shares of Series A Convertible Preferred Stock authorized and 0 shares issued and outstanding, due to the conversion of 20,000 shares of Series A into 20,000 shares of common stock. As of June 30, 2017, there were 30,000 shares of Series B Convertible Preferred Stock authorized and 6,666 shares issued and outstanding. As of June 30, 2017, there were 4,000,000 shares of Series C Convertible Preferred Stock authorized and 3,540,365 shares issued and outstanding. As of June 30, 2017, there were 5,000,000 shares of Series D Convertible Preferred Stock authorized and 3,008,984 shares issued and outstanding. As of June 30, 2017, there were 8,746,000 shares of Series E Convertible Preferred Stock authorized and 7,402,877 shares issued and outstanding. As of June 30, 2017, there were 1,100,000 shares of Series F shares authorized and 1,099,998 shares issued and outstanding. As of June 30, 2017, there were 10,090,000 shares of Series G shares authorized and 10,083,351 shares issued and outstanding. As of June 30, 2017, there were 200,000 shares of Series H shares authorized and 87,500 shares issued and outstanding. As of June 30, 2017, there were 114,944 shares of Series I shares authorized and 92,944 shares issued and outstanding. As of June 30, 2017, there were 125,000 shares of Series J shares authorized and 54,669 issued and outstanding. As of June 30, 2017, there were 1,250,000 shares of Series K shares authorized and 1,166,652 issued and outstanding Common Stock As of June 30, 2017, there were 750,000,000 shares of Common Stock authorized and 70,977,104 shares issued and outstanding. On January 3, 2017, the Company issued an aggregate of 816,810 shares of common stock upon the conversion of 35,000 shares of Series D Preferred Stock and 11,681 shares of Series E Preferred Stock. On January 4, 2017, the Company issued an aggregate of 1,000,000 shares of common stock upon the conversion of 100,000 shares of Series E Preferred Stock. On January 6, 2017, the Company issued an aggregate of 6,140 shares of common stock upon the conversion of 614 shares of Series E Preferred Stock. On January 11, 2017, the Company issued an aggregate of 1,200,000 shares of common stock upon the conversion of 60,000 shares of Series D Preferred Stock. On January 31, 2017, the Company issued an aggregate of 2,500,000 shares of common stock upon the conversion of 125,000 shares of Series D Preferred Stock On March 2, 2017, the Company issued an aggregate of 1,000,000 shares of common stock upon the conversion of 50,000 shares of Series D Preferred Stock. On March 7, 2017, the Company issued an aggregate of 1,000,000 shares of common stock upon the conversion of 100,000 shares of Series E Preferred Stock. On April 21, 2017, the Company issued an aggregate of 1,000,000 shares of common stock upon the conversion of 100,000 shares of Series E Convertible Preferred Stock. On May 31, 2017, the Company entered separate subscription agreements with accredited investors relating to the issuance and sale of 50,000 of shares of Series J Preferred Stock at a purchase price of $10.00 per share, as well as, the issuance of 4,669 shares of Series J Preferred Stock for accounts payable of $46,694. The initial conversion price is $0.01 per share, subject to adjustment as set forth in the Series J certificate of designation. The Company is prohibited from effecting a conversion of the Series J Preferred Stock to the extent that, because of such conversion, the investor would beneficially own more than 4.99% of the number of shares of the Company’s common stock outstanding immediately after giving effect to the issuance of shares of common stock upon conversion of the Series J Preferred Stock. Each share of Series J Preferred Stock entitles the holder to cast one vote per share of Series J Preferred Stock owned as of the record date for the determination of shareholders entitled to vote, subject to the 4.99% beneficial ownership limitation. The Company received the necessary consents as required from prior subscription agreements, Series F Preferred Stock, Series G Preferred Stock and Preferred Series H Preferred Stock, as well as antidilution rights. The Company was required to issue 1,089,389 shares of Series K Preferred Stock, which is convertible into 108,938,900 shares of the Company’s common stock, to the certain holders for the consent and anti-dilution rights. In addition, the Company issued to a vendor as settlement of Preferred Series C Stock issued for services, 76,763 shares of Series K Preferred Stock, convertible into 7,676,300 shares of common stock, in lieu of Series C Preferred Stock. The additional issuances for the consent, anti-dilution rights and settlement, resulted in the recording of other expense and additional paid in capital of $2,308,981. Stock Options 2014 Equity Incentive Plan On January 21, 2014, the Board approved the adoption of a 2014 Equity Incentive Plan (the “2014 Plan”). The purpose of the 2014 Plan is to promote the success of the Company and to increase stockholder value by providing an additional means through the grant of awards to attract, motivate, retain and reward selected employees and other eligible persons. The 2014 Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock, restricted stock units, stock appreciation rights and other types of stock-based awards to the Company’s employees, officers, directors and consultants. Pursuant to the terms of the 2014 Plan, either the Board or a board committee is authorized to administer the plan, including by determining which eligible participants will receive awards, the number of shares of common stock subject to the awards and the terms and conditions of such awards. Unless earlier terminated by the Board, the Plan shall terminate at the close of business on January 21, 2024. Up to 226,667 shares of common stock are issuable pursuant to awards under the 2014 Plan, as adjusted in a single adjustment for an issuance no later than sixty (60) days following the date of shareholder approval of the Plan in connection with (i) a private placement of the Company’s securities in which the Corporation receives gross proceeds of at least $1,000,000 and (ii) an acquisition of at least 50 mining leases and/or claims in the Holbrook Basin. On December 28, 2015, the Company issued Ms. Carlise, Chief Financial Officer, a ten-year option to purchase 500,000 shares of common stock as compensation for services provided to the Company. The options have an exercise price of $0.05 per share, were fully vested on the date of grant and shall expire in December 2025. The 500,000 options were valued on the grant date at approximately $1.30 per option or a total of $650,000 using a Black-Scholes option pricing model with the following assumptions: stock price of $1.30 per share (based on the closing price of the Company’s common stock of the date of issuance), volatility of 992%, expected term of 10 years, and a risk free interest rate of 1.05%. In connection with the stock option grant, the Company recorded stock based compensation for the three months ended June 30, 2017 and for the year ended December 31, 2016 of $0 and $0, respectively. Also on December 28, 2015, the Company issued Mr. Delgado, its Director, a ten-year option to purchase 200,000 shares of common stock as compensation for services provided to the Company. The options have an exercise price of $0.05 per share, were fully vested on the date of grant and shall expire in December 2025. The 200,000 options were valued on the grant date at approximately $1.30 per option or a total of $260,000 using a Black-Scholes option pricing model with the following assumptions: stock price of $1.30 per share (based on the closing price of the Company’s common stock of the date of issuance), volatility of 992%, expected term of 10 years, and a risk free interest rate of 1.05%. In connection with the stock option grant, the Company recorded stock based compensation for the three months ended June 30, 2017 and for the year ended December 31, 2016 of $0 and $0, respectively. On December 16, 2016, the Company issued options to Mr. Phipps, to purchase up to 10,000,000 shares of common stock. The options were issued outside of the Company’s 2014 Equity Incentive Plan and are not governed by the 2014 Plan. The options have an exercise price of $0.01 per share, vest immediately, and have a term of ten years. The 10,000,000 options were valued on the grant date at approximately $0.019 per option or a total of $190,000 using a Black-Scholes option pricing model with the following assumptions: stock price of $0.019 per share (based on the closing price of the Company’s common stock of the date of issuance), volatility of 872%, expected term of 10 years, and a risk-free interest rate of 1.0500%. In connection with the stock option grant, the Company recorded stock based compensation for the year ended December 31, 2016 of $190,000, respectively. On May 26, 2017, the Company issued 5,000,000 options to Mr. Phipps, 3,750,000 options to Theresa Carlise, 1,250,000 options to Hector Delgado, its Director and 20,000,000 options to certain employees of the Company. The employees are the adult children of our Chief Executive Officer. The options were issued outside of the Company’s 2014 Equity Incentive Plan and are not governed by the 2014 Plan. The options have an exercise price of $0.01 per share, vest immediately, and have a term of ten years. The 30,000,000 options were valued on the grant date at approximately $0.02 per option or a total of $600,000 using a Black-Scholes option pricing model with the following assumptions: stock price of $0.02 per share (based on the closing price of the Company’s common stock of the date of issuance), volatility of 736%, expected term of 10 years, and a risk-free interest rate of 1.30%. In connection with the stock option grant, the Company recorded stock based compensation for the six months ended June 30, 2017 of $600,000, respectively. A summary of the status of the Company’s outstanding stock options and changes during the six months ended June 30, 2017 is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Balance at January 1, 2017 12,850,000 $ 0.02 9.10 Granted 30,000,000 0.01 9.91 Exercised — — — Forfeited — — — Cancelled — — Balance outstanding and exercisable at June 30, 2017 42,850,000 $ 0.01 9.52 Stock Warrants A summary of the status of the Company’s outstanding stock warrants and changes during the six months ended June 30, 2017 is as follows: Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Balance at January 1, 2017 5,000 $ 4.50 0.35 Granted — — — Exercised — — — Forfeited ( expired May 19, 2017 5,000 4.50 — Cancelled — — — Balance outstanding at June 30, 2017 — $ — — |
Prepaid Stock Based Compensatio
Prepaid Stock Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Stock Based Compensation | NOTE 5 – PREPAID STOCK BASED COMPENSATION Prepaid expenses amounted to $80,582 at June 30, 2017 and $171,164 at December 31, 2016. Prepaid expenses include prepayments in cash for professional fees and prepayments made with equity instruments which are being amortized over the terms of their respective agreements. Amortization of the prepaid expense is included professional fees. For the six months ended June 30, 2017 and 2016, amortization expense was $80,582 and $173,009, respectively. The current portion consists primarily of costs paid for future services which will occur within a year. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 6 – INTANGIBLE ASSETS On February 19, 2015, the Company purchased an intangible asset valued at $250,000 for 1,000,000 shares of common stock. Amortization of customer contracts will be included in general and administrative expenses. The Company began amortizing the customer contracts in January 2015. Amortization expense for the three and six months ended June 30, 2017 and 2016 was $6,250 and $6,250, respectively, and $12,500 and $12,500, respectively. Future amortization of intangible assets is as follows: 2017 12,500 2018 25,000 2019 25,000 2020 25,000 2021 and thereafter 100,000 Total $ 187,500 On February 19, 2015, the Company issued 1,000,000 of its common stock, par value $0.0001, at $0.05 per share, or $50,000, to a consultant as compensation for the design and delivery of dual mode gsm/Globalstar Simplex tracking devices and related hardware and intellectual property. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 7 - PROPERTY AND EQUIPMENT Property and equipment consisted of the following: June 30, 2017 December 31, 2016 Office furniture and fixtures $ 95,369 $ 90,728 Computer equipment 38,915 29,066 Appliques 2,160,096 2,160,096 Website development 112,942 100,436 Less accumulated depreciation (546,606 ) (401,989 ) Total $ 1,860,716 $ 1,978,337 Depreciation expense was $137,658 for the six months ended June 30, 2017. For the six months ended June 30, 2016 depreciation expense was $133,656. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 8 - INVENTORIES At June 30, 2017 and December 31, 2016, inventories consisted of the following: June 30, 2017 December 31, 2016 Finished goods $ 427,570 $ 335,267 Less reserve for obsolete inventory - - Total $ 427,570 $ 335,267 For the six months ended June 30, 2017 and the year ended December 31, 2016, the Company did not make any change for reserve for obsolete inventory. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 9 - RELATED PARTY TRANSACTIONS The Company has received financing from the Company’s Chief Executive Officer. No formal repayment terms or arrangements existed prior to February 19, 2015, when as part of the Share Exchange Agreement, the Company entered into a note with David Phipps where the stockholder loans bear no interest and are due February 19, 2016. On February 19, 2016, the note was extended an additional year to February 19, 2017 and on January 9, 2017 the note was extended another additional year to February 19, 2018. The balance of the related party note payable was $15,004 as of June 30, 2017. The accounts payable due to related party includes advances for inventory due to David Phipps of $41,669 and wages of $3,761. Total payments due to David Phipps as of June 30, 2017 and December 31, 2016 are $60,434 and $67,453, respectively. Also, as part of the Share Exchange Agreement entered into on February 19, 2015, Mr. Phipps received a payment of $25,000 as compensation for transition services that he provided. The Company employs two individuals who are related to Mr. Phipps, of which earned gross wages totaled $32,679 for the six months ended June 30, 2017. For the six months ended June 30, 2016, the Company employed two individuals who were related to Mr. Phipps of which earned gross wages of $25,210. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10 - COMMITMENTS AND CONTINGENCIES Employment Agreements On February 19, 2015, Orbital Satcom entered into an employment agreement with Mr. Phipps, whereby Mr. Phipps agreed to serve as the President of Orbital Satcom for a period of two years, subject to renewal, in consideration for an annual salary of $180,000. Additionally, under the terms of the employment agreement, Mr. Phipps shall be eligible for an annual bonus if the Company meets certain criteria, as established by the Board of Directors. Mr. Phipps remains the sole director of GTCL following the closing of the Share Exchange. Mr. Phipps and the Company entered into an Indemnification Agreement at the closing. The Company entered into an employment agreement with Ms. Carlise on June 9, 2015. The agreement has a term of one year, and shall automatically be extended for additional terms of one year each. The agreement provides for an annual base salary of $72,000. In addition to the base salary Ms. Carlise shall be eligible to receive an annual cash bonus if the Company meets or exceeds criteria adopted by the Compensation Committee of the Board of Directors and shall be eligible for grants of awards under stock option or other equity incentive plans of the Company. On December 28, 2015, the Company amended her employment agreement. Effective December 1, 2015, the term of Ms. Carlise’s employment was extended to December 1, 2016 from June 9, 2016, her annual salary was increased to $140,000 from $72,000 and she agreed to devote her full business time to the Company. The term of the Original Agreement, as amended by the Amendment, shall automatically extend for additional terms of one year each, unless either party gives prior written notice of non-renewal to the other party no later than 60 days prior to the expiration of the initial term or the then current renewal term, as applicable. On March 3, 2016, the Company entered into a two-year Executive Employment Agreement with Mr. Phipps, effective January 1, 2016. Under the Employment Agreement, Mr. Phipps will serve as the Company’s Chief Executive Officer and President, and receive an annual base salary equal to the sum of $144,000 and £48,000, or $65,078 at the yearly conversion rate of 1.3558. Mr. Phipps is also eligible for bonus compensation in an amount equal to up to fifty (50%) percent of his then-current base salary if the Company meets or exceeds criteria adopted by the Compensation Committee, if any, or Board and equity awards as may be approved in the discretion of the Compensation Committee or Board. Also on March 3, 2016 and effective January 1, 2016, the Company’s wholly owned subsidiary Orbital Satcom Corp. and Mr. Phipps, terminated an employment agreement between them dated February 19, 2015 pursuant to which Mr. Phipps was employed as President of Orbital Satcom for an annual base salary of $180,000. The other terms of this agreement with the Company are identical to the terms of Mr. Phipps’ employment agreement with Orbital Satcom described above. Litigation From time to time, the Company may become involved in litigation relating to claims arising out of our operations in the normal course of business. The Company is not currently involved in any pending legal proceeding or litigation and, to the best of our knowledge, no governmental authority is contemplating any proceeding to which the Company is a party or to which any of the Company’s properties is subject, which would reasonably be likely to have a material adverse effect on the Company’s business, financial condition and operating results. |
Derivative Liability
Derivative Liability | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Liability | NOTE 11– DERIVATIVE LIABILITY In June 2008 a FASB approved guidance related to the determination of whether a freestanding equity-linked instrument should be classified as equity or debt under the provisions of FASB ASC Topic No. 815-40, Derivatives and Hedging – Contracts in an Entity’s Own Stock. The adoption of this requirement will affect accounting for convertible instruments and warrants with provisions that protect holders from declines in the stock price (“down-round” provisions). Warrants with such provisions are no longer recorded in equity and are reclassified as a liability. Instruments with down-round protection are not considered indexed to a company’s own stock under ASC Topic 815, because neither the occurrence of a sale of common stock by the company at market nor the issuance of another equity-linked instrument with a lower strike price is an input to the fair value of a fixed-for-fixed option on equity shares. In connection with the issuance of its 6% convertible debentures and related warrants, the Company has determined that the terms of the convertible warrants include down-round provisions under which the exercise price could be affected by future equity offerings. Accordingly, the warrants are accounted for as liabilities at the date of issuance and adjusted to fair value through earnings at each reporting date. On May 17, 2016, the Company entered into exchange agreements with holders of the Company’s outstanding convertible notes in the amount of $504,168 originally issued on December 28, 2015 (the “Notes”) pursuant to which the Notes were cancelled and the exchanging holders were issued an aggregate of 10,083,351 shares of newly designated Series G Convertible Preferred Stock. Upon the conversion of the Series G Convertible Preferred Stock, additional paid in capital increased by $649,662 from the decrease in the Notes payable of $504,168, decrease in derivative liabilities of $146,502 and increase in Series G Convertible Preferred Stock of $1,008. The Notes were accounted for as liabilities at the date of issuance and adjusted to fair value through earnings at each reporting date. The Company recorded amortization for the discount to the Notes of $0 and $602,515 at June 30, 2017 and December 31, 2016. As of June 30, 2017, and December 31, 2016, the Company has an unamortized discount balance of $0. The Company has recognized derivative liabilities of $0 at June 30, 2017 and December 31, 2016, respectively. The gain (loss) resulting from the decrease (increase) in fair value of this convertible instrument was $422,974 for the year ended December 31, 2016. The Company has recognized derivative liabilities for related warrants of $0 and $1,237 at June 30, 2017 and December 31, 2016, respectively. The gain resulting from the decrease in fair value of this convertible instrument was $1,237 and $3,119 for the six months ended June 30, 2017 and the year ended December 31, 2016, respectively. On May 19, 2017, the related warrant expired. Conversion feature derivative liability Warrant liability Total Balance at January 1, 2016 $ 614,035 $ 4,356 $ 618,391 Change in fair value included in earnings (422,974 ) (3,119 ) (426,093 ) Net effect on additional paid in capital (191,062 ) - (191,062 ) Balance at December 31, 2016 $ - $ 1,237 $ 1,237 Change in fair value included in earnings - (1,237 ) (1,237 ) Balance at June 30, 2017 $ - $ - $ - |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentrations | NOTE 12 - CONCENTRATIONS Customers: No customer accounted for 10% or more of the Company’s revenues during the three months ended June 30, 2017 and 2016. Suppliers: The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s purchases for the three months ended June 30, 2017 and 2016. June 30, 2017 June 30, 2016 Globalstar Europe $ 359,525 14.6 % $ 252,991 14.9 % Network Innovations $ 843,516 34.1 % $ 613,598 36.0 % |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 13 - SUBSEQUENT EVENTS On July 18, 2017, the Company issued an aggregate of 2,000,000 shares of common stock upon the conversion of 200,000 shares of Series E Convertible Preferred Stock. |
Basis of Presentation and Sum19
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and the rules and regulations of the U.S Securities and Exchange Commission for Interim Financial Information. The condensed consolidated financial statements of the Company include the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. All adjustments (consisting of normal recurring items) necessary to present fairly the Company’s financial position as of June 30, 2017, and the results of operations and cash flows for the six months ended June 30, 2017 have been included. The results of operations for the six months ended June 30, 2017 are not necessarily indicative of the results to be expected for the full year. |
Description of Business | Description of Business Orbital Tracking Corp. (the “Company”) was formerly Great West Resources, Inc., a Nevada corporation. The Company, through its wholly owned subsidiaries, Global Telesat Communications Limited (“GTCL”) and Orbital Satcom Corp. (“Orbital Satcom”) is a provider of satellite based hardware, airtime and related services both in the United States and internationally. The Company’s principal focus is on growing the Company’s existing satellite based hardware, airtime and related services business line and developing the Company’s own tracking devices for use by retail customers worldwide. |
Use of Estimates | Use of Estimates In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition, and revenues and expenses for the years then ended. Actual results may differ significantly from those estimates. Significant estimates made by management include, but are not limited to, the assumptions used to calculate stock-based compensation, derivative liabilities, preferred deemed dividend and common stock issued for services. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when acquired to be cash equivalents. The Company places its cash with a high credit quality financial institution. The Company’s account at this institution is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. To reduce its risk associated with the failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds deposits. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivable and allowance for doubtful accounts The Company has a policy of reserving for questionable accounts based on its best estimate of the amount of probable credit losses in its existing accounts receivable. The Company periodically reviews its accounts receivable to determine whether an allowance is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt. Account balances deemed to be uncollectible are charged to the bad debt expense after all means of collection have been exhausted and the potential for recovery is considered remote. As of June 30, 2017, and December 31, 2016, there is an allowance for doubtful accounts of $415 and $6,720. |
Foreign Currency Translation | Foreign Currency Translation The Company’s reporting currency is US Dollars. The accounts of one of the Company’s subsidiaries, GTCL, is maintained using the appropriate local currency, (Great British Pound) as the functional currency. All assets and liabilities are translated into U.S. Dollars at balance sheet date, shareholders’ equity is translated at historical rates and revenue and expense accounts are translated at the average exchange rate for the year or the reporting period. The translation adjustments are deferred as a separate component of stockholders’ equity, captioned as accumulated other comprehensive (loss) gain. Transaction gains and losses arising from exchange rate fluctuation on transactions denominated in a currency other than the functional currency is included in the statements of operations. The relevant translation rates are as follows: for the three and six months ended June 30, 2017 closing rate at 1.30240 US$: GBP, average rate at 1.27779 US$: GBP and 1.25801 US$: GBP. For the three and six months ended June 30, 2016 closing rate at 1.3311 US$: GBP, average rate at 1.43544 US$: GBP and 1.43414 US$: GBP and for the year ended 2016 closing rate at 1.2345 US$: GBP, average rate at 1.35585 US$ GBP. Global Telesat Communications LTD, (GTCL) represents 70.6% of total company sales for the six months ended June 30, 2017 and as such, currency rate variances have an impact on results. For the six months ended June 30, 2017 the net effect on revenues were impacted by the differences in exchange rate from quarterly average exchange of 1.43414 to 1.25801. Had the yearly average rate remained, sales for the six months would have been higher by $290,606. GTCL comparable sales in GBP, its home currency, increased 31.3% or £412,574, from £1,237,379 to £1,649,954, for the six months ended June 30, 2017 as compared to June 30, 2016. |
Revenue Recognition and Unearned Revenue | Revenue Recognition and Unearned Revenue The Company recognizes revenue from satellite services when earned, as services are rendered or delivered to customers. Equipment sales revenue is recognized when the equipment is delivered to and accepted by the customer. Only equipment sales are subject to warranty. Historically, the Company has not incurred significant expenses for warranties. The Company’s customers generally purchase a combination of our products and services as part of a multiple element arrangement. The Company’s assessment of which revenue recognition guidance is appropriate to account for each element in an arrangement can involve significant judgment. This assessment has a significant impact on the amount and timing of revenue recognition. Revenue is recognized when all of the following criteria have been met: ● Persuasive evidence of an arrangement exists. Contracts and customer purchase orders are generally used to determine the existence of an arrangement. ● Delivery has occurred. Shipping documents and customer acceptance, when applicable, are used to verify delivery. ● The fee is fixed or determinable. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. ● Collectability is reasonably assured. We assess collectability based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history. In accordance with ASC 605-25, Revenue Recognition Multiple-Element Arrangements, |
Intangible Assets | Intangible assets Intangible assets include customer contracts purchased and recorded based on the cost to acquire them. These assets are amortized over 10 years. Useful lives of intangible assets are periodically evaluated for reasonableness and the assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may no longer be recoverable. |
Goodwill and Other Intangible Assets | Goodwill and other intangible assets In accordance with ASC 350-30-65, “Intangibles - Goodwill and Others”, the Company assesses the impairment of identifiable intangibles whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors the Company considers to be important which could trigger an impairment review include the following: 1. Significant underperformance relative to expected historical or projected future operating results; 2. Significant changes in the manner of use of the acquired assets or the strategy for the overall business; and 3. Significant negative industry or economic trends. When the Company determines that the carrying value of intangibles may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flows, the Company records an impairment charge. The Company measures any impairment based on a projected discounted cash flow method using a discount rate determined by management to be commensurate with the risk inherent in the current business model. Significant management judgment is required in determining whether an indicator of impairment exists and in projecting cash flows. |
Property and Equipment | Property and Equipment Property and equipment are carried at historical cost less accumulated depreciation. Depreciation is based on the estimated service lives of the depreciable assets and is calculated using the straight-line method. Expenditures that increase the value or productive capacity of assets are capitalized. Fully depreciated assets are retained in the property and equipment, and accumulated depreciation accounts until they are removed from service. When property and equipment are retired, sold or otherwise disposed of, the asset’s carrying amount and related accumulated depreciation are removed from the accounts and any gain or loss is included in operations. Repairs and maintenance are expensed as incurred. The estimated useful lives of property and equipment are generally as follows: Years Office furniture and fixtures 4 Computer equipment 4 Appliques 10 Website development 2 |
Impairment of long-lived assets | Impairment of long-lived assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company did not consider it necessary to record any impairment charges during the periods ended June 30, 2017 and December 31, 2016, respectively. |
Fair Value of Financial Instruments | Fair value of financial instruments The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures”, for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing US GAAP that require the use of fair value measurements which establishes a framework for measuring fair value and expands disclosure about such fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. The following table presents a reconciliation of the derivative liability measured at fair value on a recurring basis using significant unobservable input (Level 3) from January 1, 2017 to June 30, 2017: Conversion Feature Derivative Liability Warrant Liability Total Balance at January 1, 2017 $ - $ 1,237 $ 1,237 Change in fair value included in earnings - (1,237 ) (1,237 ) Balance June 30, 2017 $ - $ - $ - The Company did not identify any other assets or liabilities that are required to be presented on the condensed consolidated balance sheets at fair value in accordance with the accounting guidance. The carrying amounts reported in the balance sheet for cash, accounts payable, and accrued expenses approximate their estimated fair market value based on the short-term maturity of the instruments. |
Stock Based Compensation | Stock Based Compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date. |
Income Taxes | Income Taxes The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes The Company follows the provision of ASC 740-10 related to Accounting for Uncertain Income Tax Positions. When tax returns are filed, there may be uncertainty about the merits of positions taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured at the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefit associated with tax positions taken that exceed the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all more likely than not to be upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits. The Company has adopted ASC 740-10-25, “Definition of Settlement”, which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion and examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. The federal and state income tax returns of the Company are subject to examination by the IRS and state taxing authorities, generally for three years after they are filed. |
Earnings Per Common Share | Earnings per Common Share Net income (loss) per common share is calculated in accordance with ASC Topic 260: Earnings per Share (“ASC 260”). Basic income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. The computation of diluted net loss per share does not include dilutive common stock equivalents in the weighted average shares outstanding as they would be anti-dilutive. For the three months and six months ended June 30, 2017 and June 30, 2016, respectively, the Company had net loss, therefore all dilutive securities are excluded. The following are dilutive common stock equivalents during the period ended: June 30, 2017 June 30, 2016 Convertible preferred stock 370,180,815 209,416,215 Stock options 42,850,000 2,850,000 Stock warrants - 5,000 Total 413,030,815 212,271,215 |
Related Party Transactions | Related Party Transactions A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior year’s financial statements to conform to the current year’s presentation. These reclassifications had no effect on previously reported results of operations. The Company reclassified certain expense accounts to conform to the currents year’s treatment. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) Revenue Recognition ”- “Revenue from Contracts with Customers; Deferral of the Effective Date,” Management does not believe that any recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements. |
Basis of Presentation and Sum20
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life of Property and Equipment | The estimated useful lives of property and equipment are generally as follows: Years Office furniture and fixtures 4 Computer equipment 4 Appliques 10 Website development 2 |
Schedule of Reconciliation of Derivative Liability Measured at Fair Value | The following table presents a reconciliation of the derivative liability measured at fair value on a recurring basis using significant unobservable input (Level 3) from January 1, 2017 to June 30, 2017: Conversion Feature Derivative Liability Warrant Liability Total Balance at January 1, 2017 $ - $ 1,237 $ 1,237 Change in fair value included in earnings - (1,237 ) (1,237 ) Balance June 30, 2017 $ - $ - $ - |
Schedule of Dilutive Common Stock Equivalents | The following are dilutive common stock equivalents during the period ended: June 30, 2017 June 30, 2016 Convertible preferred stock 370,180,815 209,416,215 Stock options 42,850,000 2,850,000 Stock warrants - 5,000 Total 413,030,815 212,271,215 |
Orbital Tracking Corp and Glo21
Orbital Tracking Corp and Global Telesat Communications Limited Share Exchange, Reverse Acquisition, Recapitalization (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price/Assets Acquisition | Property and equipment $ 4,973 Accounts receivable 34,585 Cash in bank 30,934 Prepaid expenses 2,219,677 Inventory 40,161 Intangible asset 250,000 Current liabilities (469,643 ) Due to related party (2,174 ) Derivative liability (4,936 ) Liabilities of discontinued operations (112,397 ) Total purchase price/assets acquired $ 1,991,180 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of Outstanding Stock Options Activities | A summary of the status of the Company’s outstanding stock options and changes during the six months ended June 30, 2017 is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Balance at January 1, 2017 12,850,000 $ 0.02 9.10 Granted 30,000,000 0.01 9.91 Exercised — — — Forfeited — — — Cancelled — — Balance outstanding and exercisable at June 30, 2017 42,850,000 $ 0.01 9.52 |
Schedule of Outstanding Stock Warrants Activities | A summary of the status of the Company’s outstanding stock warrants and changes during the six months ended June 30, 2017 is as follows: Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Balance at January 1, 2017 5,000 $ 4.50 0.35 Granted — — — Exercised — — — Forfeited ( expired May 19, 2017 5,000 4.50 — Cancelled — — — Balance outstanding at June 30, 2017 — $ — — |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Future Amortization of Intangible Assets | Future amortization of intangible assets is as follows: 2017 12,500 2018 25,000 2019 25,000 2020 25,000 2021 and thereafter 100,000 Total $ 187,500 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: June 30, 2017 December 31, 2016 Office furniture and fixtures $ 95,369 $ 90,728 Computer equipment 38,915 29,066 Appliques 2,160,096 2,160,096 Website development 112,942 100,436 Less accumulated depreciation (546,606 ) (401,989 ) Total $ 1,860,716 $ 1,978,337 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | At June 30, 2017 and December 31, 2016, inventories consisted of the following: June 30, 2017 December 31, 2016 Finished goods $ 427,570 $ 335,267 Less reserve for obsolete inventory - - Total $ 427,570 $ 335,267 |
Derivative Liability (Tables)
Derivative Liability (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Conversion Feature Derivative Liability | Conversion feature derivative liability Warrant liability Total Balance at January 1, 2016 $ 614,035 $ 4,356 $ 618,391 Change in fair value included in earnings (422,974 ) (3,119 ) (426,093 ) Net effect on additional paid in capital (191,062 ) - (191,062 ) Balance at December 31, 2016 $ - $ 1,237 $ 1,237 Change in fair value included in earnings - (1,237 ) (1,237 ) Balance at June 30, 2017 $ - $ - $ - |
Concentrations (Tables)
Concentrations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration Risk | The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s purchases for the three months ended June 30, 2017 and 2016. June 30, 2017 June 30, 2016 Globalstar Europe $ 359,525 14.6 % $ 252,991 14.9 % Network Innovations $ 843,516 34.1 % $ 613,598 36.0 % |
Basis of Presentation and Sum28
Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2017GBP (£) | Dec. 31, 2016USD ($) | Jun. 30, 2016 | |
Cash insured by FDIC | $ 250,000 | |||
Allowance for doubtful accounts receivable | $ 415 | $ 6,720 | ||
Intangible asset, amortization period | 10 years | 10 years | ||
Asset impairment charges | ||||
Global Telesat Communications Limited [Member] | ||||
Sales average rate percentage | 70.60% | 70.60% | ||
Increase in asset value | $ 290,606 | |||
Minimum [Member] | Global Telesat Communications Limited [Member] | ||||
Foreign currency translation rate | 1.43414 | |||
Maximum [Member] | Global Telesat Communications Limited [Member] | ||||
Foreign currency translation rate | 1.25801 | |||
US$: GBP [Member] | ||||
Foreign currency translation rate | 1.25801 | 1.2345 | 1.43414 | |
US$: GBP [Member] | Closing Rate [Member] | ||||
Foreign currency translation rate | 1.30240 | 1.3311 | ||
US$: GBP [Member] | Average Rate [Member] | ||||
Foreign currency translation rate | 1.27779 | 1.35585 | 1.43544 | |
Sales In GBP [Member] | Global Telesat Communications Limited [Member] | ||||
Sales average rate percentage | 31.30% | 31.30% | ||
Increase in asset value | £ | £ 412,574 | |||
Sales In GBP [Member] | Minimum [Member] | Global Telesat Communications Limited [Member] | ||||
Increase in asset value | £ | 1,237,379 | |||
Sales In GBP [Member] | Maximum [Member] | Global Telesat Communications Limited [Member] | ||||
Increase in asset value | £ | £ 1,649,954 |
Basis of Presentation and Sum29
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Estimated Useful Life of Property and Equipment (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Office Furniture and Fixtures [Member] | |
Estimated useful life | 4 years |
Computer Equipment [Member] | |
Estimated useful life | 4 years |
Appliques [Member] | |
Estimated useful life | 10 years |
Website Development [Member] | |
Estimated useful life | 2 years |
Basis of Presentation and Sum30
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Reconciliation of Derivative Liability Measured at Fair Value (Details) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Balance at Beginning of Period | $ 1,237 |
Change in fair value included in earnings | (1,237) |
Balance at End of Period | |
Conversion Feature Derivative Liability [Member] | |
Balance at Beginning of Period | |
Change in fair value included in earnings | |
Balance at End of Period | |
Warrant Liability [Member] | |
Balance at Beginning of Period | 1,237 |
Change in fair value included in earnings | (1,237) |
Balance at End of Period |
Basis of Presentation and Sum31
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Dilutive Common Stock Equivalents (Details) - shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Dilutive common stock equivalents | 413,030,815 | 212,271,215 |
Convertible Preferred Stock [Member] | ||
Dilutive common stock equivalents | 370,180,815 | 209,416,215 |
Stock Option [Member] | ||
Dilutive common stock equivalents | 42,850,000 | 2,850,000 |
Stock Warrant [Member] | ||
Dilutive common stock equivalents | 5,000 |
Going Concern Considerations (D
Going Concern Considerations (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Accumulated (deficit) | $ 7,961,679 | $ 7,961,679 | $ 4,601,406 | ||
Working capital | 322,092 | 322,092 | |||
Net loss | $ 3,130,516 | $ 1,173,737 | $ 3,360,273 | $ 1,113,791 |
Orbital Tracking Corp and Glo33
Orbital Tracking Corp and Global Telesat Communications Limited Share Exchange Reverse Acquisition, Recapitalization (Details) - USD ($) | Feb. 19, 2015 | Jun. 30, 2017 |
Number of common stock shares | 2,540,000 | 5,383,172 |
Number of common stock shares, value | $ 375,000 | |
Promissory note | $ 122,536 | |
Global Telesat Communications Limited [Member] | ||
Voting rights | The GTCL Shareholders obtained approximately 39% of voting control on the date of Share Exchange. | |
Series E Convertible Preferred Stock [Member] | ||
Number of common stock shares | 8,746,000 | |
Preferred Series A [Member] | ||
Number of common stock shares | 20,000 | |
Preferred Series B [Member] | ||
Number of common stock shares | 6,666 | |
Preferred Series C [Member] | ||
Number of common stock shares | 1,197,442 | |
Preferred Series D [Member] | ||
Number of common stock shares | 5,000,000 |
Orbital Tracking Corp and Glo34
Orbital Tracking Corp and Global Telesat Communications Limited Share Exchange, Reverse Acquisition and Recapitalization - Schedule of Purchase Price/Assets Acquisition (Details) | Jun. 30, 2017USD ($) |
Business Combinations [Abstract] | |
Property and equipment | $ 4,973 |
Accounts receivable | 34,585 |
Cash in bank | 30,934 |
Prepaid expenses | 2,219,677 |
Inventory | 40,161 |
Intangible asset | 250,000 |
Current liabilities | (469,643) |
Due to related party | (2,174) |
Derivative liability | (4,936) |
Liabilities of discontinued operations | (112,397) |
Total purchase price/assets acquired | $ 1,991,180 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | May 31, 2017 | May 26, 2017 | Apr. 21, 2017 | Mar. 07, 2017 | Mar. 02, 2017 | Jan. 31, 2017 | Jan. 11, 2017 | Jan. 06, 2017 | Jan. 04, 2017 | Jan. 03, 2017 | Dec. 16, 2016 | Dec. 28, 2015 | Feb. 19, 2015 | Jan. 21, 2014 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||||||||||
Common stock, shares authorized | 750,000,000 | 750,000,000 | 750,000,000 | ||||||||||||||||
Common stock, shares issued | 70,977,104 | 70,977,104 | 57,309,364 | ||||||||||||||||
Common stock, shares outstanding | 70,977,104 | 70,977,104 | 57,309,364 | ||||||||||||||||
Number of common stock shares issued during the period | 2,540,000 | 5,383,172 | |||||||||||||||||
Other expenses | $ 2,308,981 | $ (2,308,981) | $ (2,308,981) | ||||||||||||||||
Additional paid in capital | $ 2,308,981 | 10,390,534 | $ 10,390,534 | $ 6,935,817 | |||||||||||||||
Number of stock options granted during the period | 30,000,000 | ||||||||||||||||||
Stock based compensation | $ 600,000 | $ 600,000 | |||||||||||||||||
2014 Equity Incentive Plan [Member] | |||||||||||||||||||
Maximum common stock shares issuable to awards under plan | 226,667 | ||||||||||||||||||
Stock option plan termination date | Jan. 21, 2024 | ||||||||||||||||||
Gross proceeds from issuance of private placement | $ 1,000,000 | ||||||||||||||||||
Stock option term | 10 years | ||||||||||||||||||
Purchase price per share | $ 0.01 | ||||||||||||||||||
Number of stock options granted during the period | 30,000,000 | ||||||||||||||||||
Stock option exercise price per share | $ 0.02 | ||||||||||||||||||
Stock option granted value | $ 600,000 | ||||||||||||||||||
Fair value assumptions, expected volatility rate | 736.00% | ||||||||||||||||||
Fair value assumptions, expected term | 10 years | ||||||||||||||||||
Fair value assumptions, expected risk free interest rate | 1.30% | ||||||||||||||||||
Stock based compensation | 600,000 | ||||||||||||||||||
2014 Equity Incentive Plan [Member] | Mr. Carlise [Member] | |||||||||||||||||||
Stock option term | 10 years | ||||||||||||||||||
Number of common stock shares issued during the period | 500,000 | ||||||||||||||||||
Purchase price per share | $ 0.05 | ||||||||||||||||||
Stock option expire date | Dec. 31, 2025 | ||||||||||||||||||
Number of stock options granted during the period | 500,000 | ||||||||||||||||||
Stock option exercise price per share | $ 1.30 | ||||||||||||||||||
Stock option granted value | $ 650,000 | ||||||||||||||||||
Fair value assumptions, expected volatility rate | 992.00% | ||||||||||||||||||
Fair value assumptions, expected term | 10 years | ||||||||||||||||||
Fair value assumptions, expected risk free interest rate | 1.05% | ||||||||||||||||||
Stock based compensation | 0 | 0 | |||||||||||||||||
2014 Equity Incentive Plan [Member] | Mr. Delgado [Member] | |||||||||||||||||||
Stock option term | 10 years | ||||||||||||||||||
Number of common stock shares issued during the period | 200,000 | ||||||||||||||||||
Purchase price per share | $ 0.05 | ||||||||||||||||||
Stock option expire date | Dec. 31, 2025 | ||||||||||||||||||
Number of stock options granted during the period | 200,000 | ||||||||||||||||||
Stock option exercise price per share | $ 1.30 | ||||||||||||||||||
Stock option granted value | $ 260,000 | ||||||||||||||||||
Fair value assumptions, expected volatility rate | 992.00% | ||||||||||||||||||
Fair value assumptions, expected term | 10 years | ||||||||||||||||||
Fair value assumptions, expected risk free interest rate | 1.05% | ||||||||||||||||||
Stock based compensation | $ 0 | 0 | |||||||||||||||||
2014 Equity Incentive Plan [Member] | Mr. Phipps [Member] | |||||||||||||||||||
Stock option term | 10 years | ||||||||||||||||||
Number of common stock shares issued during the period | 5,000,000 | 10,000,000 | |||||||||||||||||
Purchase price per share | $ 0.01 | ||||||||||||||||||
Number of stock options granted during the period | 10,000,000 | ||||||||||||||||||
Stock option exercise price per share | $ 0.019 | ||||||||||||||||||
Stock option granted value | $ 190,000 | ||||||||||||||||||
Fair value assumptions, expected volatility rate | 872.00% | ||||||||||||||||||
Fair value assumptions, expected term | 10 years | ||||||||||||||||||
Fair value assumptions, expected risk free interest rate | 1.05% | ||||||||||||||||||
Stock based compensation | $ 190,000 | ||||||||||||||||||
2014 Equity Incentive Plan [Member] | Theresa Carlise [Member] | |||||||||||||||||||
Number of common stock shares issued during the period | 3,750,000 | ||||||||||||||||||
2014 Equity Incentive Plan [Member] | Hector Delgado [Member] | |||||||||||||||||||
Number of common stock shares issued during the period | 1,250,000 | ||||||||||||||||||
2014 Equity Incentive Plan [Member] | Employee [Member] | |||||||||||||||||||
Number of common stock shares issued during the period | 20,000,000 | ||||||||||||||||||
Preferred Series A [Member] | |||||||||||||||||||
Preferred stock, shares authorized | 20,000 | 20,000 | 20,000 | ||||||||||||||||
Preferred stock, shares issued | |||||||||||||||||||
Preferred stock, shares outstanding | |||||||||||||||||||
Convertible preferred stock shares issued upon conversion | 20,000 | 20,000 | |||||||||||||||||
Number of common stock shares issued during the period | 20,000 | ||||||||||||||||||
Preferred Series B [Member] | |||||||||||||||||||
Preferred stock, shares authorized | 30,000 | 30,000 | 30,000 | ||||||||||||||||
Preferred stock, shares issued | 6,666 | 6,666 | 6,666 | ||||||||||||||||
Preferred stock, shares outstanding | 6,666 | 6,666 | 6,666 | ||||||||||||||||
Number of common stock shares issued during the period | 6,666 | ||||||||||||||||||
Preferred Series C [Member] | |||||||||||||||||||
Preferred stock, shares authorized | 4,000,000 | 4,000,000 | 4,000,000 | ||||||||||||||||
Preferred stock, shares issued | 3,540,365 | 3,540,365 | 3,540,365 | ||||||||||||||||
Preferred stock, shares outstanding | 3,540,365 | 3,540,365 | 3,540,365 | ||||||||||||||||
Shares converted | 7,676,300 | ||||||||||||||||||
Number of common stock shares issued during the period | 1,197,442 | ||||||||||||||||||
Preferred Series D [Member] | |||||||||||||||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | ||||||||||||||||
Preferred stock, shares issued | 3,008,984 | 3,008,984 | 3,428,984 | ||||||||||||||||
Preferred stock, shares outstanding | 3,008,984 | 3,008,984 | 3,428,984 | ||||||||||||||||
Shares issued upon conversion | 1,000,000 | 2,500,000 | 1,200,000 | 816,810 | |||||||||||||||
Shares converted | 50,000 | 125,000 | 60,000 | 35,000 | |||||||||||||||
Number of common stock shares issued during the period | 5,000,000 | ||||||||||||||||||
Preferred Series E [Member] | |||||||||||||||||||
Preferred stock, shares authorized | 8,746,000 | 8,746,000 | 8,746,000 | ||||||||||||||||
Preferred stock, shares issued | 7,402,877 | 7,402,877 | 7,929,651 | ||||||||||||||||
Preferred stock, shares outstanding | 7,402,877 | 7,402,877 | 7,929,651 | ||||||||||||||||
Shares issued upon conversion | 1,000,000 | 1,000,000 | 6,140 | 1,000,000 | |||||||||||||||
Shares converted | 100,000 | 100,000 | 614 | 100,000 | 11,681 | ||||||||||||||
Preferred Series F [Member] | |||||||||||||||||||
Preferred stock, shares authorized | 1,100,000 | 1,100,000 | 1,100,000 | ||||||||||||||||
Preferred stock, shares issued | 1,099,998 | 1,099,998 | 1,099,998 | ||||||||||||||||
Preferred stock, shares outstanding | 1,099,998 | 1,099,998 | 1,099,998 | ||||||||||||||||
Preferred Series G [Member] | |||||||||||||||||||
Preferred stock, shares authorized | 10,090,000 | 10,090,000 | 10,090,000 | ||||||||||||||||
Preferred stock, shares issued | 10,083,351 | 10,083,351 | 10,083,351 | ||||||||||||||||
Preferred stock, shares outstanding | 10,083,351 | 10,083,351 | 10,083,351 | ||||||||||||||||
Preferred Series H [Member] | |||||||||||||||||||
Preferred stock, shares authorized | 200,000 | 200,000 | 200,000 | ||||||||||||||||
Preferred stock, shares issued | 87,500 | 87,500 | 87,500 | ||||||||||||||||
Preferred stock, shares outstanding | 87,500 | 87,500 | 87,500 | ||||||||||||||||
Preferred Series I [Member] | |||||||||||||||||||
Preferred stock, shares authorized | 114,944 | 114,944 | 114,944 | ||||||||||||||||
Preferred stock, shares issued | 92,944 | 92,944 | 92,944 | ||||||||||||||||
Preferred stock, shares outstanding | 92,944 | 92,944 | 92,944 | ||||||||||||||||
Preferred Series J [Member] | |||||||||||||||||||
Preferred stock, shares authorized | |||||||||||||||||||
Preferred stock, shares issued | 54,669 | 54,669 | 54,669 | ||||||||||||||||
Preferred stock, shares outstanding | 54,669 | 54,669 | 54,669 | ||||||||||||||||
Number of common stock shares issued during the period | 50,000 | ||||||||||||||||||
Purchase price per share | $ 10 | ||||||||||||||||||
Accounts payable | $ 46,694 | ||||||||||||||||||
Conversion price | $ 0.01 | ||||||||||||||||||
Owned beneficial percentage | 4.99% | ||||||||||||||||||
Preferred Series K [Member] | |||||||||||||||||||
Preferred stock, shares authorized | 1,250,000 | 1,250,000 | 1,250,000 | ||||||||||||||||
Preferred stock, shares issued | 1,166,652 | 1,166,652 | 1,166,652 | ||||||||||||||||
Preferred stock, shares outstanding | 1,166,652 | 1,166,652 | 1,166,652 | ||||||||||||||||
Shares converted | 108,938,900 | ||||||||||||||||||
Number of common stock shares issued during the period | 1,089,389 | ||||||||||||||||||
Stock issued during period for services | 76,763 | ||||||||||||||||||
Preferred Series J Two [Member] | |||||||||||||||||||
Number of common stock shares issued during the period | 4,669 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Outstanding Stock Options Activities (Details) | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Equity [Abstract] | |
Number of Options, Beginning Balance | shares | 12,850,000 |
Number of Options, Granted | shares | 30,000,000 |
Number of Options, Exercised | shares | |
Number of Options, Forfeited | shares | |
Number of Options, Cancelled | shares | |
Number of Options, Ending of Balance | shares | 42,850,000 |
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 0.02 |
Weighted Average Exercise Price, Granted | $ / shares | 0.01 |
Weighted Average Exercise Price, Exercised | $ / shares | |
Weighted Average Exercise Price, Forfeited | $ / shares | |
Weighted Average Exercise Price, Cancelled | $ / shares | |
Weighted Average Exercise Price, Ending of Balance | $ / shares | $ 0.01 |
Weighted Average Remaining Contractual Life (Years), Beginning | 9 years 1 month 6 days |
Weighted Average Remaining Contractual Life (Years), Granted | 9 years 10 months 28 days |
Weighted Average Remaining Contractual Life (Years), Ending | 9 years 6 months 7 days |
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending of Balance | 9 years 6 months 7 days |
Stockholders' Equity - Schedu37
Stockholders' Equity - Schedule of Outstanding Stock Warrants Activities (Details) | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Equity [Abstract] | |
Number of Warrants, Beginning Balance | shares | 5,000 |
Number of Warrants, Granted | shares | |
Number of Warrants, Exercised | shares | |
Number of Warrants, Forfeited (expired May 19, 2017) | shares | 5,000 |
Number of Warrants, Cancelled | shares | |
Number of Warrants, Ending Balance | shares | |
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 4.50 |
Weighted Average Exercise Price, Granted | $ / shares | |
Weighted Average Exercise Price, Exercised | $ / shares | |
Weighted Average Exercise Price, Forfeited (expired May 19, 2017) | $ / shares | 4.50 |
Weighted Average Exercise Price, Cancelled | $ / shares | |
Weighted Average Exercise Price, Ending Balance | $ / shares | |
Weighted Average Remaining Contractual Life (Years), Beginning | 4 months 6 days |
Weighted Average Remaining Contractual Life (Years), Ending | 0 years |
Prepaid Stock Based Compensat38
Prepaid Stock Based Compensation (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid expenses | $ 80,582 | $ 171,164 | |
Amortization of prepaid expenses | $ 80,582 | $ 173,009 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) | Feb. 19, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Amortization expense | $ 6,250 | $ 6,250 | $ 12,500 | $ 12,500 | ||
Common stock par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Consultant [Member] | ||||||
Intangible asset purchase value | $ 250,000 | |||||
Number of common stock issued | 1,000,000 | |||||
Common stock par value | $ 0.0001 | |||||
Share issued price per share | $ 0.05 | |||||
Number of common stock issued, value | $ 50,000 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Future Amortization of Intangible Assets (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Total | $ 237,500 | $ 250,000 |
Intangible Assets [Member] | ||
2,017 | 12,500 | |
2,018 | 25,000 | |
2,019 | 25,000 | |
2,020 | 25,000 | |
2021 and thereafter | 100,000 | |
Total | $ 187,500 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 137,658 | $ 133,656 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Office furniture and fixtures | $ 95,369 | $ 90,728 |
Computer equipment | 38,915 | 29,066 |
Appliques | 2,160,096 | 2,160,096 |
Website development | 112,942 | 100,436 |
Less accumulated depreciation | (546,606) | (401,989) |
Total | $ 1,860,716 | $ 1,978,338 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 427,570 | $ 335,267 |
Less reserve for obsolete inventory | ||
Total | $ 427,570 | $ 335,267 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Feb. 19, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Note payable related party | $ 15,004 | |||
David Phipps [Member] | ||||
Payment due to related party | 41,669 | |||
Gross wages paid | 3,761 | |||
Due to related party | 60,434 | $ 67,453 | ||
Compensation paid | $ 25,000 | |||
Two Individuals Related to Mr.Phipps [Member] | ||||
Gross wages paid | $ 32,679 | $ 25,210 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - Employment Agreements [Member] | Mar. 03, 2016USD ($) | Mar. 03, 2016GBP (£) | Dec. 28, 2015USD ($) | Jun. 09, 2015USD ($) | Feb. 19, 2015USD ($) |
David Phipps [Member] | |||||
Employment agreement term | 2 years | ||||
Annual salary | $ 65,078 | $ 180,000 | |||
Change in annual salary | $ 144,000 | ||||
Employment agreement term description | the Company entered into a two-year Executive Employment Agreement with Mr. Phipps, effective January 1, 2016. | the Company entered into a two-year Executive Employment Agreement with Mr. Phipps, effective January 1, 2016. | |||
Average conversion rate | 1.3558 | 1.3558 | |||
Bonus compensation percentage | 50.00% | 50.00% | |||
Base salary per annum | $ 180,000 | ||||
David Phipps [Member] | GBP [Member] | |||||
Annual salary | £ | £ 48,000 | ||||
Mr. Carlise [Member] | |||||
Employment agreement term | 1 year | ||||
Annual salary | $ 72,000 | ||||
Change in annual salary | $ 72,000 | ||||
Mr. Carlise [Member] | Annual Salary Increased [Member] | |||||
Change in annual salary | $ 140,000 |
Derivative Liability (Details N
Derivative Liability (Details Narrative) - USD ($) | Dec. 28, 2015 | Jun. 30, 2017 | Dec. 31, 2016 | May 17, 2016 |
Change in convertible note payable | $ 422,974 | $ 422,974 | ||
Change in derivative liabilities | 1,237 | 426,093 | ||
6% Convertible Debentures [Member] | ||||
Percentage of issuance convertible debentures and related warrants | 6.00% | |||
Convertible notes value outstanding | $ 504,168 | |||
Increase in additional paid in capital | $ 649,662 | |||
Change in convertible note payable | 504,168 | |||
Change in derivative liabilities | $ 146,502 | |||
Unamortized discount | 0 | 602,515 | ||
Derivative liabilities recognized value | 0 | 0 | ||
6% Convertible Debentures [Member] | Series G Convertible Preferred Stock [Member] | ||||
Preferred stock shares issued | 10,083,351 | |||
Change in value of preferred stock | $ 1,008 | |||
Stock Warrant [Member] | ||||
Change in convertible note payable | 1,237 | 3,119 | ||
Derivative liabilities recognized value | $ 0 | $ 1,237 |
Derivative Liability - Schedule
Derivative Liability - Schedule of Conversion Feature Derivative Liability (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Balance at Beginning of Period | $ 1,237 | $ 618,391 |
Change in fair value included in earnings | (1,237) | (426,093) |
Net effect on additional paid in capital | (191,062) | |
Balance at End of Period | 1,237 | |
Conversion Feature Derivative Liability [Member] | ||
Balance at Beginning of Period | 614,035 | |
Change in fair value included in earnings | (422,974) | |
Net effect on additional paid in capital | (191,062) | |
Balance at End of Period | ||
Warrant Liability [Member] | ||
Balance at Beginning of Period | 1,237 | 4,356 |
Change in fair value included in earnings | (1,237) | (3,119) |
Net effect on additional paid in capital | ||
Balance at End of Period | $ 1,237 |
Concentrations (Details Narrati
Concentrations (Details Narrative) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
No Customer [Member] | Revenues [Member] | ||
Concentration risk | 10.00% | 10.00% |
Concentrations - Schedule of Co
Concentrations - Schedule of Concentration Risk (Details) - Supplier Concentration Risk [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Concentration risk percentage | 10.00% | 10.00% |
Globalstar Europe [Member] | ||
Purchases | $ 359,525 | $ 252,991 |
Concentration risk percentage | 14.60% | 14.90% |
Network Innovations [Member] | ||
Purchases | $ 848,516 | $ 613,598 |
Concentration risk percentage | 34.10% | 36.00% |
Concentrations - Schedule of 50
Concentrations - Schedule of Concentration Risk (Details) (Parenthetical) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Supplier Concentration Risk [Member] | ||
Concentration risk | 10.00% | 10.00% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Preferred Series E [Member] - shares | Jul. 18, 2017 | Apr. 21, 2017 | Mar. 07, 2017 | Jan. 06, 2017 | Jan. 04, 2017 | Jan. 03, 2017 |
Conversion of stock, shares issued | 1,000,000 | 1,000,000 | 6,140 | 1,000,000 | ||
Conversion of stock, shares converted | 100,000 | 100,000 | 614 | 100,000 | 11,681 | |
Subsequent Event [Member] | ||||||
Conversion of stock, shares issued | 2,000,000 | |||||
Conversion of stock, shares converted | 200,000 |