Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 14, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Entity Registrant Name | 'PACIFIC WEBWORKS INC | ' |
Entity Central Index Key | '0001086303 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 49,713,895 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $1,325,666 | $1,928,821 |
Receivables | ' | ' |
Trade, less allowance for doubtful receivables of $0 in 2013 and $0 in 2014 | 473,575 | 88,024 |
Prepaid expenses and other current assets | 16,264 | 48,520 |
Inventory | 39,009 | 22,999 |
Notes receivable | 250,000 | 250,000 |
Interest receivable | 36,667 | 30,382 |
Total current assets | 2,141,181 | 2,368,746 |
PROPERTY AND EQUIPMENT, NET | 7,289 | 9,420 |
Restricted cash | 170,669 | 120,676 |
Security deposit | 4,825 | 4,825 |
Deferred Expenses | 263,130 | 30,094 |
Goodwill | 1,946,253 | 1,946,253 |
Total Assets | 4,533,347 | 4,480,014 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 217,024 | 47,765 |
Accrued liabilities | 139,304 | 146,196 |
Notes payable, current portion | ' | 25,643 |
Deferred revenue | 382,812 | 61,661 |
Total current liabilities | 739,140 | 281,265 |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock - par value $0.001; authorized 50,000,000; issued and outstanding 49,713,895 and 49,713,895, respectively | 49,714 | 49,714 |
Additional paid-in capital | 18,069,715 | 18,069,715 |
Accumulated deficit | -14,325,222 | -13,920,680 |
Total stockholders' equity | 3,794,207 | 4,198,749 |
Total liabilities and stockholders' equity | $4,533,347 | $4,480,014 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' |
Trade receivables, allowance for doubtful receivables | $0 | $0 |
Common stock, par value per share | $0.00 | $0.00 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 49,713,895 | 49,713,895 |
Common stock, shares outstanding | 49,713,895 | 49,713,895 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues | ' | ' | ' | ' |
Hosting, gateway and maintenance fees | $930,250 | $182,299 | $1,336,226 | $359,813 |
Product sales | 72,461 | 91,581 | 142,649 | 141,189 |
Revenues | 1,002,711 | 273,880 | 1,478,875 | 501,002 |
Cost of sales | 605,778 | 107,534 | 845,780 | 159,656 |
Gross profit | 396,933 | 166,346 | 633,095 | 341,346 |
Selling expenses | 79,377 | 52,143 | 161,797 | 75,128 |
Research and development | 59,155 | 62,003 | 114,089 | 120,738 |
General and administrative | 401,295 | 277,676 | 765,699 | 506,866 |
Depreciation and amortization | 1,065 | 6,161 | 2,130 | 14,612 |
Total operating expenses | 540,892 | 397,983 | 1,043,715 | 717,344 |
Loss from operations | -143,959 | -231,637 | -410,620 | -375,998 |
Other income (expense) | ' | ' | ' | ' |
Interest income (expense), net | 3,050 | 8,715 | 6,082 | 10,519 |
Loss on equity investment | ' | ' | ' | -5,785 |
Other income | ' | ' | ' | ' |
Gain on sale of assets | ' | 143,290 | ' | 143,290 |
Total other income (expense) | 3,050 | 152,005 | 6,082 | 148,024 |
Loss before income taxes | -140,909 | -79,632 | -404,538 | -227,974 |
Income tax benefit | ' | -29,100 | ' | -89,000 |
Income tax expense | 4 | ' | 4 | ' |
Net loss | ($140,913) | ($50,532) | ($404,542) | ($138,974) |
LOSS PER SHARE | ' | ' | ' | ' |
Basic | $0 | $0 | ($0.01) | $0 |
Diluted | $0 | $0 | ($0.01) | $0 |
Weighted-average common shares outstanding | ' | ' | ' | ' |
Basic | 49,713,895 | 49,713,895 | 49,713,895 | 49,713,895 |
Fully Diluted | 49,713,895 | 49,713,895 | 49,713,895 | 49,713,895 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash Flows From Operating Activities | ' | ' |
Net loss | ($404,542) | ($138,974) |
Adjustments to reconcile net loss to net cash used for operating activities | ' | ' |
Depreciation and amortization | 2,130 | 14,612 |
Loss on equity method investments | ' | 5,785 |
Gain on sale of assets | ' | -143,290 |
Changes in assets and liabilities | ' | ' |
Deferred tax asset | ' | -89,000 |
Deposits | ' | -4,825 |
Receivables | -385,551 | -19,967 |
Restricted cash | -49,993 | 411,486 |
Prepaid expenses and other assets | -200,780 | -17,167 |
Inventory | -16,010 | -10,367 |
Interest receivable | -6,285 | -6,285 |
Accounts payable and accrued liabilities | 162,367 | -403,431 |
Deferred revenue | 321,151 | 11,328 |
Net cash used for operating activities | -577,513 | -390,095 |
Cash Flows From Investing Activities | ' | ' |
Purchase of investments | ' | -2,000 |
Proceeds from sale of property and equipment | ' | 509,023 |
Net cash provided by investing activities | ' | 507,023 |
Cash Flows From Financing Activities | ' | ' |
Cash paid on notes payable | -25,642 | -7,562 |
Net cash used for financing activities | -25,642 | -7,562 |
Net increase (decrease) in cash and cash equivalents | -603,155 | 109,366 |
Cash and cash equivalents at beginning of period | 1,928,821 | 1,655,801 |
Cash and cash equivalents at end of period | 1,325,666 | 1,765,167 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid for interest | 620 | 341 |
Cash paid for income taxes | ' | ' |
BASIS_OF_FINANCIAL_STATEMENT_P
BASIS OF FINANCIAL STATEMENT PRESENTATION | 6 Months Ended |
Jun. 30, 2014 | |
BASIS OF FINANCIAL STATEMENT PRESENTATION [Abstract] | ' |
BASIS OF FINANCIAL STATEMENT PRESENTATION | ' |
NOTE 1 – BASIS OF FINANCIAL STATEMENT PRESENTATION | |
The accompanying unaudited consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the U. S. Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented adequately ensure that the information is not misleading, it is suggested that these interim consolidated financial statements be read in conjunction with the Company's audited financial statements and notes thereto included in its December 31, 2013 Annual Report on Form 10-K. Operating results for the six month period ending June 30, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014. | |
Reclassifications | |
Certain prior period balances have been reclassified to conform to current period presentation. |
NOTES_PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2014 | |
NOTES PAYABLE [Abstract] | ' |
NOTES PAYABLE | ' |
NOTE 2 – NOTES PAYABLE | |
On January 27, 2010, the Company executed a Promissory Note Secured by a Deed of Trust with Assignment of Rents in the principal amount of $1,000,000. The holder of the note was entitled to receive the entire principal amount with all accrued interest, at 7% interest per annum, payable on or before January 27, 2012. On January 25, 2012, the maturity date of the note was extended to January 27, 2015. | |
On July 10, 2012, the Company executed a Promissory Note Secured by a Deed of Trust with Assignment of Rents in the principal amount of $100,000. The holder of the note was entitled to receive the entire principal amount with all accrued interest, at 7% interest per annum, payable on or before December 31, 2012. On November 2, 2012, the maturity date of the note was extended to January 10, 2014. | |
On August 31, 2012, the Company executed a Promissory Note Secured by a Deed of Trust with Assignment of Rents in the principal amount of $50,000. The holder of the note was entitled to receive the entire principal amount with all accrued interest, at 7% interest per annum, payable on or before December 31, 2012. On November 2, 2012, the maturity date of the note was extended to January 10, 2014. | |
The January 27, 2010, July 10, 2012 and August 31, 2012 Promissory Notes were secured by a deed of trust with assignment of rents on the Company's principal office building and a second commercial building the Company owned in Salt Lake City, Utah. Also, the Note holder was entitled to collect rents and lease amounts, if any, from the buildings upon any default and could at its option elect to foreclose on the properties. The Company could make payments prior to the due date and any payments were to be applied first to the reduction of interest and the balance to the outstanding principal. In the event that the Company failed to pay any amount when due, then the amount owing would become immediately due and a default interest rate of 15% would apply to the principal amount. On June 6, 2013, the Company sold its principal office building and second commercial building in Salt Lake City, Utah for a total of $1,850,000. The proceeds of the sale satisfied the $1,340,597 in Promissory Notes dated January 27, 2010, July 10, 2012 and August 31, 2012 in full including all accrued interest, with the remaining cash proceeds of $509,023 remitted directly to the Company. A gain of $143,290 was recognized on the sale of these assets during the year ended December 31, 2013. | |
On December 2, 2011, the Company assumed a Promissory Note in the principal amount of $30,000 as part of its acquisition of Asher, LLC. The holder of the note is entitled to receive the entire principal amount with all accrued interest, at 5% interest per annum, on or before January 1, 2014. As of December 31, 2013, the principal and interest on this note had been satisfied in full. | |
On August 28, 2013 the Company entered into a $42,738 financing agreement for payment of its business insurance. The financing agreement carries a 5.24% annual rate of interest and requires the Company to make 10 monthly payments of $4,377. During the three month period ended June 30, 2014, the Company made principal payments of $12,821 and interest of $310. For the six month period ended June 30, 2014, the Company made principal payments of $25,642 and interest of $620. |
NOTES_RECEIVABLE
NOTES RECEIVABLE | 6 Months Ended |
Jun. 30, 2014 | |
NOTES RECEIVABLE [Abstract] | ' |
NOTES RECEIVABLE | ' |
NOTE 3 – NOTES RECEIVABLE | |
On July 28, 2011, the Company, through its Headlamp Ventures, LLC subsidiary, established a revolving line of credit facility and issued an initial $400,000 promissory note to Bsquare Red, LLC, a Utah limited liability company, to be used as working capital in their internet marketing business. The note carries a 15% effective annual rate of interest. On October 3, 2011, the principal amount of the promissory note was increased to $500,000. On July 31, 2012, the maturity date of the promissory note was extended to August 1, 2013. On July 23, 2013, the maturity date of the promissory note was extended to August 1, 2014. It is noted that Bsquare Red, LLC is owned by family members of the Company's CEO. On December 30, 2013, the promissory note was repaid in full. | |
On August 3, 2011, the Company, through its World Commerce Network, LLC subsidiary, issued a $250,000 promissory note to Bryan Development, LLC, a Utah limited liability company, for use as working capital in its business investment activities. On December 31, 2012, the maturity date of the promissory note was extended to December 31, 2013, on December 31, 2013, the maturity date of the promissory note was extended to June 30, 2014 and on June 30, 2014 the maturity date of the promissory note was extended to August 31, 2015. | |
On August 15, 2011, Headlamp Ventures established a revolving line of credit facility and issued an initial $400,000 promissory note to Grupo Zapata Arce, a division of Metales y Minerales S.A. De C.V., a corporation organized under the laws of Mexico, for use in its iron ore exporting business. Interest is charged on amounts outstanding in the form of a fee of $3.00 per metric ton of iron ore purchased with proceeds of the note. On September 20, 2011, Grupo Zapata Arce Division Metales y Minerals S.A. de C.V., LLC was added as a party to the revolving line of credit and promissory note originally established on August 15, 2011 for Grupo Zapata Arce. Grupo Zapata Arce is positioned in an industry experiencing resurgent demand that is especially driven by emerging markets around the world. However, as of August 31, 2013 Grupo Zapata Arce is in default under the promissory note and Headlamp Ventures has initiated legal action to collect the amount due. (See Note 6 – Litigation Matters, below.) |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2014 | |
INVESTMENTS [Abstract] | ' |
INVESTMENTS | ' |
NOTE 4 – INVESTMENTS | |
On April 21, 2011, Pacific WebWorks invested $250,000 in common units of Middlebury Ventures II, LLC, a Delaware limited liability company formed for the purpose of participating in the Fisker Holdings, Inc. Series C-1 and subsequent rounds of financing. On December 27, 2011, the Company invested an additional $93,280 in common units of Middlebury Ventures II, LLC. On March 28, 2012, the Company invested an additional $25,000 in common units of Middlebury Ventures II, LLC. The funds are to be used by Middlebury Ventures II, LLC for the acquisition of Fisker Holdings, Inc. Series D-1 Shares pursuant to the Fisker Series D-1 transaction documents. Fisker Holdings, Inc. is an automotive company competing in the luxury hybrid-electric vehicle market. During August, 2012, Middlebury Ventures II, LLC changed its name to Ridgemaker Ventures II, LLC. On November, 22, 2013, Fisker Holdings, Inc. filed for Chapter 11 bankruptcy and on December 31, 2013, the Company recognized an $82,531 unrealized loss on its investment to impair its carrying value to $0, the current estimated market value. | |
On November 11, 2011, the Company, through its Headlamp Ventures, LLC subsidiary, invested a total of $250,000 in Payroll Innovations, LLC and PickYourPayday.com, LLC, sister companies having common ownership and management and providing payroll debit card and online payroll advance service to small and mid-sized employers. For value received, the Company holds a 25% ownership position in Payroll Innovations, LLC and PickYourPayday.com, LLC. On May 30, 2012, the Company invested an additional total of $30,000 in Payroll Innovations, LLC and PickYourPayday.com, LLC to meet a capital call approved by the members. During September, October and November, 2012, the Company invested an additional total of $34,500 and in March, 2013, the Company invested an additional total of $2,000 in Payroll Innovations, LLC and PickYourPayday.com, LLC to meet capital calls approved by the members. For the year ended December 31, 2013 the Company recognized a $210,717 loss on its equity investment. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2014 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
NOTE 5 – COMMITMENTS & CONTINGENCIES | |
The Ridgemaker Ventures II, LLC operating agreement contains a 40% capital call provision specifically associated with the Fisker D-1 round of financing, which includes a 40% capital call component. Members of Ridgemaker Ventures II, LLC are required to invest an amount up to 40% of their investment to date at the time of the capital call, based on the percentage of the total capital call. Those members failing to meet the capital call encounter an automatic conversion of their shares into common shares on a 2:1 basis. Those members that meet the capital call will convert their shares into common shares on a 1:1 basis at such time when there is a market for Fisker securities. An updated operating agreement was instituted in association with the Fisker E-1 round of financing. The updated operating agreement contains a 30% capital call provision specifically associated with the Fisker E-1 round of financing, which provides for an exchange of D-1 shares on a 1:5.8418 basis for investors that meet their E-1 capital call obligation. | |
The Payroll Innovations, LLC and PickYourPayday.com, LLC operating agreements provide for capital calls upon approval by 75% of the membership voting interest. The total amount of each approved capital call is also subject to approval by 75% of the membership voting interest. In a capital call each member is required to invest its proportionate share based on its membership interest. No member's interest in the companies can be diluted without unanimous approval by the members. | |
During the year ended December 31, 2013, the Company entered into a lease agreement for commercial office space. The lease runs through May 31, 2018 and provides for monthly payments of $4,300 in year one, $4,425 in year two, $4,550 in year three, $4,700 in year four and $4,825 in year five. A security deposit in the amount of $4,825 was required upon lease execution. |
LITIGATION_MATTERS
LITIGATION MATTERS | 6 Months Ended |
Jun. 30, 2014 | |
LITIGATION MATTERS [Abstract] | ' |
LITIGATION MATTERS | ' |
NOTE 6 – LITIGATION MATTERS | |
During the year ended December 31, 2012, the Company was involved in five class action law suits. All plaintiffs in these cases were represented by the same legal firm and each complaint sought class action certification. The complaints alleged that Pacific WebWorks violated consumer protection laws, committed fraud and used deceptive trade practices in relation to the manner in which Pacific WebWorks charged for purchases of its products. Each action sought compensatory and punitive damages, plus reasonable costs and attorney fees. The actions are as follows: | |
On November 9, 2009, Barbara Ford filed an action in the Circuit Court of Cook County, Illinois, Chancery Division. A second action was filed on November 12, 2009, by Deanna Pelletier in the Superior Court of the State of California, County of Solano. A third action was filed by Lisa Rasmussen on November 20, 2009, in the Superior Court of Washington, Snohomish County. On December 18, 2009, the Barbara Ford matter was removed to the United States District Court for the Northern District of Illinois. On December 18, 2009, the Deanna Pelletier matter was removed to the United States District Court for the Eastern District of California. On December 23, 2009, the Lisa Rasmussen matter was removed to the United States District Court for the Western District of Washington. | |
On July 10, 2010, Thomas Aikens filed an action in the Circuit Court of Jackson County, Missouri, which matter was removed to the United States District Court for the Western District of Missouri. This matter was brought by the same law firm as the above cases. | |
On September 19, 2011, Lynette Booth filed an action in the Circuit Court of Cook County, Illinois, Chancery Division alleging violations of consumer protection laws by Pacific WebWorks. This case was removed to the United States District Court for the Northern District of Illinois on December 1, 2011. Damages are unspecified in this action. Pacific WebWorks answered the complaint and denied liability, intent to defend against all such claims. | |
In response to these actions, Pacific WebWorks retained legal counsel to vigorously defend the Company in these lawsuits. Discovery began on the class certification phase in the Illinois, Washington and California lawsuits. Our legal counsel opposed class certification and filed motions to dismiss all claims in the Illinois and Washington actions, which motions were granted in part and denied in part. Pacific WebWorks renewed its motion to dismiss in the Illinois action, which motion has not yet been ruled upon. In addition, Pacific Webworks brought motions to dismiss the Pelletier, Guffey and Aikens actions, which motions have not yet been ruled upon. | |
On May 24, 2012, the Company entered into a Stipulation of Class Action Settlement relating to its outstanding class action lawsuits. The settlement agreement required the Company to contribute a maximum of $400,000 to the settlement fund, class counsel and claims administration fees. The Company's entry into the settlement agreement was intended to reduce its overall litigation expense by putting an end to the significant legal fees continually incurred to defend against the actions. As of December 31, 2011 and 2012, the Company had recorded a liability of $400,000 in contemplation of reaching settlement on its outstanding class action lawsuits. As a part of the settlement agreement, the Company agreed to establish an escrow account and deposit the amount of their maximum contribution into the escrow account to be held there during the settlement approval process. The escrow account was established and fully funded by the Company with the appropriate $400,000 maximum contribution on July 2, 2012. | |
On November 28, 2012, the Class Action Settlement received final approval in the Circuit Court of Cook County, Illinois. On January 10, 2013, the $400,000 held in escrow was contributed to the settlement fund, class counsel and claims administration fees. The Company considers this matter to be closed. | |
On September 6, 2013 our subsidiary, Headlamp Ventures, LLC, filed a complaint against Marc Didier in the Third District Court Salt Lake County State of Utah. The complaint alleges that Headlamp Ventures loaned Grupo Zapata Arce (“Zapata”) $400,000 and Mr. Didier guaranteed the Loan Agreement and Note. Zapata failed to repay the loan by the due date of August 31, 2013 and is in default. Pursuant to the Guaranty and Security Agreement, Mr. Didier is obligated for all amounts due and owing. Headlamp Ventures seeks repayment of the loan amount, plus interest, attorneys' fees and punitive damages. | |
On November 15, 2013 Pacific WebWorks, Inc. was served a summons by the Third Judicial District Court in and for Salt Lake County, State of Utah. The plaintiffs, Allen Stutelberg, Harold Schmunk and Michael Greer, filed a derivative action alleging Pacific WebWorks, Inc. and five former and current members of the board of directors, officers and/or employees of the Company committed corporate waste, breached fiduciary duties and committed civil conspiracy resulting in mismanagement of the Company's assets and affairs and usurpation of corporate opportunities. The plaintiffs seek general and punitive damages in excess of $300,000 for each of the five causes of action to be proven at a jury trial. The Company retained legal counsel to vigorously defend against these allegations. The Company's counsel filed an answer to the summons and filed a motion to disqualify plaintiff's attorney due to a conflict of interest. The Company's motion to disqualify plaintiff's attorney was granted in July 2014. | |
We are involved in various other disputes and claims arising in the normal course of our business. In the opinion of management, any resulting litigation from these disputes and claims will not have a material effect on our financial position and results of operations. |
SEGMENT_REPORTING
SEGMENT REPORTING | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
SEGMENT REPORTING [Abstract] | ' | ||||||||||||||||||||
SEGMENT REPORTING | ' | ||||||||||||||||||||
NOTE 7 – SEGMENT REPORTING | |||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||
June 30, 2013a | June 30, 2014a | ||||||||||||||||||||
Business Unit | Revenues, net | Net income (loss) | Revenues, net | Net income (loss) | |||||||||||||||||
Pacific Web Works | $ | 41,962 | $ | (163,874 | ) | $ | 20,719 | $ | (335,570 | ) | |||||||||||
IntelliPay | 113,383 | 97,018 | 113,585 | 99,345 | |||||||||||||||||
Headlamp Ventures | 90,705 | 45,190 | 72,461 | 10,458 | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||
June 30, 2013a | June 30, 2014a | ||||||||||||||||||||
Business Unit | Revenues, net | Net income (loss) | Revenues, net | Net income (loss) | |||||||||||||||||
TradeWorks | 1,070 | 938 | 820 | 683 | |||||||||||||||||
Thrifty Seeker | 876 | (86 | ) | - | (124 | ) | |||||||||||||||
Promontory Marketing | - | (369 | ) | - | (45 | ) | |||||||||||||||
World Commerce Network | - | 3,100 | - | 3,160 | |||||||||||||||||
Dynamic WebTools | 25,884 | -32,449 | 795,126 | 81,180 | |||||||||||||||||
Total | $ | 273,880 | $ | (50,532 | ) | $ | 1,002,711 | $ | (140,913 | ) | |||||||||||
aAmounts include all intercompany receivables, payables, revenues and expenses prior to elimination | |||||||||||||||||||||
for consolidation. | |||||||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, 2013a | June 30, 2014a | ||||||||||||||||||||
Business Unit | Revenues, net | Net income (loss) | Revenues, net | Net income (loss) | |||||||||||||||||
Pacific Web Works | $ | 93,435 | $ | (386,350 | ) | $ | 45,927 | $ | (736,821 | ) | |||||||||||
IntelliPay | 237,587 | 205,585 | 236,983 | 202,865 | |||||||||||||||||
Headlamp Ventures | 140,018 | 66,075 | 142,629 | 2,390 | |||||||||||||||||
TradeWorks | 2,270 | 2,138 | 1,720 | 1,583 | |||||||||||||||||
Thrifty Seeker | 1,171 | (243 | ) | 20 | (254 | ) | |||||||||||||||
Promontory Marketing | - | (414 | ) | - | (91 | ) | |||||||||||||||
World Commerce Network | - | 6,165 | - | 6,285 | |||||||||||||||||
Dynamic WebTools | 26,521 | -31,930 | 1,051,596 | 119,501 | |||||||||||||||||
Total | $ | 501,002 | $ | (138,974 | ) | $ | 1,478,875 | $ | (404,542 | ) | |||||||||||
aAmounts include all intercompany receivables, payables, revenues and expenses prior to elimination | |||||||||||||||||||||
for consolidation. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2014 | |
SUBSEQUENT EVENTS [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 8 – SUBSEQUENT EVENTS | |
The Company has evaluated subsequent events in accordance with the provisions of ASC 855 and has identified no reportable subsequent events. |
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
SEGMENT REPORTING [Abstract] | ' | ||||||||||||||||||||
Summary of Business Unit Information | ' | ||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||
June 30, 2013a | June 30, 2014a | ||||||||||||||||||||
Business Unit | Revenues, net | Net income (loss) | Revenues, net | Net income (loss) | |||||||||||||||||
Pacific Web Works | $ | 41,962 | $ | (163,874 | ) | $ | 20,719 | $ | (335,570 | ) | |||||||||||
IntelliPay | 113,383 | 97,018 | 113,585 | 99,345 | |||||||||||||||||
Headlamp Ventures | 90,705 | 45,190 | 72,461 | 10,458 | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||
June 30, 2013a | June 30, 2014a | ||||||||||||||||||||
Business Unit | Revenues, net | Net income (loss) | Revenues, net | Net income (loss) | |||||||||||||||||
TradeWorks | 1,070 | 938 | 820 | 683 | |||||||||||||||||
Thrifty Seeker | 876 | (86 | ) | - | (124 | ) | |||||||||||||||
Promontory Marketing | - | (369 | ) | - | (45 | ) | |||||||||||||||
World Commerce Network | - | 3,100 | - | 3,160 | |||||||||||||||||
Dynamic WebTools | 25,884 | -32,449 | 795,126 | 81,180 | |||||||||||||||||
Total | $ | 273,880 | $ | (50,532 | ) | $ | 1,002,711 | $ | (140,913 | ) | |||||||||||
aAmounts include all intercompany receivables, payables, revenues and expenses prior to elimination | |||||||||||||||||||||
for consolidation. | |||||||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, 2013a | June 30, 2014a | ||||||||||||||||||||
Business Unit | Revenues, net | Net income (loss) | Revenues, net | Net income (loss) | |||||||||||||||||
Pacific Web Works | $ | 93,435 | $ | (386,350 | ) | $ | 45,927 | $ | (736,821 | ) | |||||||||||
IntelliPay | 237,587 | 205,585 | 236,983 | 202,865 | |||||||||||||||||
Headlamp Ventures | 140,018 | 66,075 | 142,629 | 2,390 | |||||||||||||||||
TradeWorks | 2,270 | 2,138 | 1,720 | 1,583 | |||||||||||||||||
Thrifty Seeker | 1,171 | (243 | ) | 20 | (254 | ) | |||||||||||||||
Promontory Marketing | - | (414 | ) | - | (91 | ) | |||||||||||||||
World Commerce Network | - | 6,165 | - | 6,285 | |||||||||||||||||
Dynamic WebTools | 26,521 | -31,930 | 1,051,596 | 119,501 | |||||||||||||||||
Total | $ | 501,002 | $ | (138,974 | ) | $ | 1,478,875 | $ | (404,542 | ) | |||||||||||
aAmounts include all intercompany receivables, payables, revenues and expenses prior to elimination | |||||||||||||||||||||
for consolidation. |
NOTES_PAYABLE_Details
NOTES PAYABLE (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Aug. 31, 2012 | Jul. 10, 2012 | Jan. 27, 2010 | Aug. 31, 2013 | Jun. 30, 2014 | Aug. 28, 2013 | Dec. 02, 2011 | |
Secured Debt [Member] | Secured Debt [Member] | Secured Debt [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | $50,000 | $100,000 | $1,000,000 | ' | ' | $42,738 | $30,000 |
Annual rate | ' | ' | ' | ' | ' | 7.00% | 7.00% | 7.00% | ' | ' | 5.24% | 5.00% |
Default, interest rate | ' | ' | ' | ' | ' | 15.00% | 15.00% | 15.00% | ' | ' | ' | ' |
Proceeds from sale of property and equipment | ' | ' | ' | 509,023 | 1,850,000 | ' | ' | ' | ' | ' | ' | ' |
Repayment of secured debt by proceeds from sale of assets | ' | ' | ' | ' | 1,340,597 | ' | ' | ' | ' | ' | ' | ' |
Monthly payments | ' | ' | ' | ' | ' | ' | ' | ' | 4,377 | ' | ' | ' |
Principal payment | 12,821 | ' | ' | ' | ' | ' | ' | ' | ' | 25,642 | ' | ' |
Interest payment | 310 | ' | ' | ' | ' | ' | ' | ' | ' | 620 | ' | ' |
Gain on sale of assets | ' | $143,290 | ' | $143,290 | $143,290 | ' | ' | ' | ' | ' | ' | ' |
NOTES_RECEIVABLE_Details
NOTES RECEIVABLE (Details) (USD $) | 1 Months Ended | ||||||
Jul. 31, 2011 | Jun. 30, 2014 | Dec. 31, 2013 | Oct. 03, 2011 | Aug. 15, 2011 | Aug. 03, 2011 | Jul. 28, 2011 | |
NOTES RECEIVABLE [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Notes receivable | ' | $250,000 | $250,000 | ' | $400,000 | $250,000 | $400,000 |
Related party receivables | ' | ' | ' | 500,000 | ' | ' | ' |
Interest rate on loans | 15.00% | ' | ' | ' | ' | ' | ' |
Fee per metric ton of iron ore purchased with proceeds of the note | ' | ' | ' | ' | $3 | ' | ' |
INVESTMENTS_Details
INVESTMENTS (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Mar. 01, 2013 | Nov. 30, 2012 | 30-May-12 | Nov. 11, 2011 | Dec. 31, 2013 | Mar. 28, 2012 | Dec. 27, 2011 | Apr. 21, 2011 | |
Equity Securities [Member] | Equity Securities [Member] | Equity Securities [Member] | Equity Securities [Member] | ||||||||||
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25,000 | $93,280 | $250,000 |
Investments | ' | ' | ' | ' | ' | 2,000 | 34,500 | 30,000 | 250,000 | ' | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' |
Loss on equity method investments | ' | ' | ' | ($5,785) | ($210,717) | ' | ' | ' | ' | ($82,531) | ' | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | ' |
Ridgemaker Ventures II, LLC capital call provision, percent of investment | 40.00% | ' |
Fisker round of financing, capital call provision | 30.00% | ' |
Ridgemaker Ventures II, LLC conversion ratio, failed requirement | 2 | ' |
Ridgemaker Ventures II, LLC conversion ratio | 1 | ' |
Fisker round of financing, conversion ratio | 0.1712 | ' |
Membership voting approval interest percentage for Payroll Innovations, LLC and PickYourPayday.com, LLC capital calls | 75.00% | ' |
Monthly rent payments for the first year of the leased commercial office space | $4,300 | ' |
Monthly rent payments for the second year of the leased commercial office space | 4,425 | ' |
Monthly rent payments for the third year of the leased commercial office space | 4,550 | ' |
Monthly rent payments for the forth year of the leased commerical office space | 4,700 | ' |
Monthly rent payments for the fifth year of the leased commerical office space | 4,825 | ' |
Security deposit | $4,825 | $4,825 |
Lease expiration period | 31-May-18 | ' |
LITIGATION_MATTERS_Details
LITIGATION MATTERS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
LITIGATION MATTERS [Abstract] | ' | ' | ' |
Number of lawsuits | ' | 5 | ' |
Settlement fund, amount | ' | $400,000 | $400,000 |
Settlement expense | 400,000 | ' | ' |
Damages sought | $300,000 | ' | ' |
SEGMENT_REPORTING_Schedule_of_
SEGMENT REPORTING (Schedule of Segment Reporting By Business Unit) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues, net | $1,002,711 | $273,880 | $1,478,875 | $501,002 |
Net income (loss) | -140,913 | -50,532 | -404,542 | -138,974 |
Pacific Web Works [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues, net | 20,719 | 41,962 | 45,927 | 93,435 |
Net income (loss) | -335,570 | -163,874 | -736,821 | -386,350 |
Headlamp Ventures [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues, net | 72,461 | 90,705 | 142,629 | 140,018 |
Net income (loss) | 10,458 | 45,190 | 2,390 | 66,075 |
IntelliPay [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues, net | 113,585 | 113,383 | 236,983 | 237,587 |
Net income (loss) | 99,345 | 97,018 | 202,865 | 205,585 |
Thrifty Seeker [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues, net | ' | 876 | 20 | 1,171 |
Net income (loss) | -124 | -86 | -254 | -243 |
Trade Works [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues, net | 820 | 1,070 | 1,720 | 2,270 |
Net income (loss) | 683 | 938 | 1,583 | 2,138 |
Promontory Marketing [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues, net | ' | ' | ' | ' |
Net income (loss) | -45 | -369 | -91 | -414 |
Dynamic WebTools [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues, net | 795,126 | 25,884 | 1,051,596 | 26,521 |
Net income (loss) | 81,180 | -32,449 | 119,501 | -31,930 |
World Commerce Network [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues, net | ' | ' | ' | ' |
Net income (loss) | $3,160 | $3,100 | $6,285 | $6,165 |