Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 14, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Entity Registrant Name | PACIFIC WEBWORKS INC | |
Entity Central Index Key | 1,086,303 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 49,713,895 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 363,562 | $ 609,313 |
Receivables | ||
Trade, less allowance for doubtful receivables of $0 in 2014 and $0 in 2015 | 1,896,689 | 1,081,286 |
Prepaid expenses and other current assets | 18,691 | 56,635 |
Inventory | 15,522 | 20,289 |
Total current assets | 2,294,464 | 1,767,523 |
PROPERTY AND EQUIPMENT, NET | 10,683 | 13,995 |
Restricted cash | 189,011 | 300,208 |
Security deposit | 4,825 | 4,825 |
Deferred Expenses | 16,690 | 60,972 |
Goodwill | 1,946,253 | 1,946,253 |
Total Assets | 4,461,926 | 4,093,776 |
CURRENT LIABILITIES | ||
Accounts payable | 87,083 | 50,528 |
Accrued liabilities | $ 434,764 | 149,487 |
Notes payable, current portion | 24,601 | |
Deferred revenue | $ 52,029 | 169,229 |
Total current liabilities | 573,876 | 393,845 |
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 | (14,231,379) | (14,419,498) |
Total stockholders' equity | 3,888,050 | 3,699,931 |
Total liabilities and stockholders' equity | $ 4,461,926 | $ 4,093,776 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Trade receivables, allowance for doubtful receivables | $ 0 | $ 0 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
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 OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | ||||
Hosting, gateway and maintenance fees | $ 2,365,571 | $ 930,250 | $ 3,875,400 | $ 1,336,226 |
Product sales | 53,466 | 72,461 | 82,496 | 142,649 |
Revenues | 2,419,037 | 1,002,711 | 3,957,896 | 1,478,875 |
Cost of sales | 1,190,265 | 605,778 | 2,506,805 | 845,780 |
Gross profit | 1,228,772 | 396,933 | 1,451,091 | 633,095 |
Selling expenses | 33,368 | 79,377 | 85,432 | 161,797 |
Research and development | 53,083 | 59,155 | 107,546 | 114,089 |
General and administrative | 517,463 | 401,295 | 1,066,253 | 765,699 |
Depreciation and amortization | 1,656 | 1,065 | 3,312 | 2,130 |
Total operating expenses | 605,570 | 540,892 | 1,262,543 | 1,043,715 |
Income (loss) from operations | 623,202 | (143,959) | 188,548 | (410,620) |
Other income (expense) | ||||
Interest income (expense), net | (191) | 3,050 | (429) | 6,082 |
Total other income (expense) | (191) | 3,050 | (429) | 6,082 |
Income (loss) before income taxes | 623,011 | (140,909) | 188,119 | (404,538) |
Income tax expense | 4 | 4 | ||
Net Income (loss) | $ 623,011 | $ (140,913) | $ 188,119 | $ (404,542) |
LOSS PER SHARE | ||||
Basic | $ 0.01 | $ 0 | $ 0 | $ (0.01) |
Diluted | $ 0.01 | $ 0 | $ 0 | $ (0.01) |
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 CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows From Operating Activities | ||
Net loss | $ 188,119 | $ (404,542) |
Adjustments to reconcile net loss to net cash used for operating activities | ||
Depreciation and amortization | 3,312 | 2,130 |
Changes in assets and liabilities | ||
Receivables | (815,403) | (385,551) |
Restricted cash | 111,197 | (49,993) |
Prepaid expenses and other assets | 82,226 | (200,780) |
Inventory | $ 4,767 | (16,010) |
Interest receivable | (6,285) | |
Accounts payable and accrued liabilities | $ 321,832 | 162,367 |
Deferred revenue | (117,200) | 321,151 |
Net cash used for operating activities | $ (221,150) | $ (577,513) |
Cash Flows From Investing Activities | ||
Net cash provided by (used for) investing activities | ||
Cash Flows From Financing Activities | ||
Cash paid on notes payable | $ (24,601) | $ (25,642) |
Net cash used for financing activities | (24,601) | (25,642) |
Net increase (decrease) in cash and cash equivalents | (245,751) | (603,155) |
Cash and cash equivalents at beginning of period | 609,313 | 1,928,821 |
Cash and cash equivalents at end of period | 363,562 | 1,325,666 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | $ 540 | $ 620 |
BASIS OF FINANCIAL STATEMENT PR
BASIS OF FINANCIAL STATEMENT PRESENTATION | 6 Months Ended |
Jun. 30, 2015 | |
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, 20 1 4 Annual Report on Form 10-K. Operating res ults for the six month period ending June 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 201 5 . Reclassifications Certain prior period balances have been reclassified to conform to current period presentation. |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2015 | |
NOTES PAYABLE [Abstract] | |
NOTES PAYABLE | NOTE 2 NOTE S PAYABLE On August 28, 2013 the Company entered into a $ 42,738 The financing agreement carries a 5.24 10 4,377 During the three month period ended June 30, 2014, the Company made principal payments of $ 12,821 310 For the six month period ended June 30, 2014, the Company made principal payments of $ 25,642 620 The note has been paid in full. On September 2, 2014 the C ompany entered into a $ 44,281 financing agreement for payment of its business insurance. The financing agreement carries a 5.24 9 ayments of $ 5,028 . As of December 31, 2014, the balance was $ 24,601 June 30, 2015 , the Company made principal payments of $ 9,840 216 . For the six month period ended June 30, 2015, the Company made principal payments of $ 24,601 540 June 30, 2015, the note had been paid in full. |
NOTES RECEIVABLE
NOTES RECEIVABLE | 6 Months Ended |
Jun. 30, 2015 | |
NOTES RECEIVABLE [Abstract] | |
NOTES RECEIVABLE | NOTE 3 NOTES RECEIVABLE On August 3, 2011, the Company, through its World Commerce Network, LLC subsidiary, issued a $ 250,000 On August 15, 2011, Headlamp Ventures established a revolving line of credit facility and issued an initial $ 400,000 3.00 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 4 COMMITMENTS & CONTINGENCIES 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 4,300 4,425 4,550 4,700 4,825 4,825 |
LITIGATION MATTERS
LITIGATION MATTERS | 6 Months Ended |
Jun. 30, 2015 | |
LITIGATION MATTERS [Abstract] | |
LITIGATION MATTERS | NOTE 5 LITIGATION MATTERS 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 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. 546,798 15 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 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. In October 2014 the Company filed a motion to disqualify the remainder of the law firm representing the plaintiffs in this matter. On March 12, 2015, the Court de nied this motion. The Company subsequently filed for interlocutory appeal and on April 30, 2015, the Utah Court of Appeals denied this petition. 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, 2015 | |
SEGMENT REPORTING [Abstract] | |
SEGMENT REPORTING | NOTE 6 SEGMENT REPORTING Three Months Ended Three Months Ended June 30 , 201 4 a June 3 0 , 2015 a Business Unit Revenues, net Net income (loss) Revenues, net Net income (loss) Pacific Web Works $ 20,719 $ (335,570 ) $ - $ (286,143 ) IntelliPay 113,585 99,345 83,974 69,795 Headlamp Ventures 72,461 10,458 53,466 19,389 TradeWorks 820 683 600 576 Thrifty Seeker - (124 ) - (150 ) Promontory Marketing - (45 ) - (60 ) World Commerce Network - 3,160 - - Dynamic WebTools 795,126 81,180 2,280,997 819,604 Total $ 1,002,711 $ (140,913 ) $ 2,419,037 $ 623,011 a Amounts include all intercompany receivables, payables, revenues and expenses prior to elimination for c onsolidation. Six Months Ended Six Months Ended June 30, 2014 a June 30, 2015 a Business Unit Revenues, net Net income (loss) Revenues, net Net income (loss) Pacific Web Works $ 45,927 $ (736,821 ) $ - $ (652,929 ) IntelliPay 236,983 202,865 174,065 143,413 Headlamp Ventures 142,629 2,390 82,496 18,733 TradeWorks 1,720 1,583 1,270 1,246 Thrifty Seeker 20 (255 ) - (299 ) Promontory Marketing - (90 ) - (115 ) World Commerce Network - 6,285 - (6 ) Dynamic WebTools 1,051,596 119,501 3,700,065 678,076 Total $ 1,478,875 $ (404,542 ) $ 3,957,896 $ 188,119 a Amounts include all intercompany receivables, payables, revenues and expenses prior to elimination for consolidation. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2015 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 7 SUBSEQUENT EVENTS The Company has evaluated subsequent events in accordance with the provisions of ASC 855 and has identified the following reportable subsequent events: In the Headlamp Ventures, LLC, action against Marc Dider the Court granted the motion described in note 5 for summary judgment in the amount of $ 546,798 July 14, 2015 15 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
SEGMENT REPORTING [Abstract] | |
Summary of Business Unit Information | Three Months Ended Three Months Ended June 30 , 201 4 a June 3 0 , 2015 a Business Unit Revenues, net Net income (loss) Revenues, net Net income (loss) Pacific Web Works $ 20,719 $ (335,570 ) $ - $ (286,143 ) IntelliPay 113,585 99,345 83,974 69,795 Headlamp Ventures 72,461 10,458 53,466 19,389 TradeWorks 820 683 600 576 Thrifty Seeker - (124 ) - (150 ) Promontory Marketing - (45 ) - (60 ) World Commerce Network - 3,160 - - Dynamic WebTools 795,126 81,180 2,280,997 819,604 Total $ 1,002,711 $ (140,913 ) $ 2,419,037 $ 623,011 a Amounts include all intercompany receivables, payables, revenues and expenses prior to elimination for c onsolidation. Six Months Ended Six Months Ended June 30, 2014 a June 30, 2015 a Business Unit Revenues, net Net income (loss) Revenues, net Net income (loss) Pacific Web Works $ 45,927 $ (736,821 ) $ - $ (652,929 ) IntelliPay 236,983 202,865 174,065 143,413 Headlamp Ventures 142,629 2,390 82,496 18,733 TradeWorks 1,720 1,583 1,270 1,246 Thrifty Seeker 20 (255 ) - (299 ) Promontory Marketing - (90 ) - (115 ) World Commerce Network - 6,285 - (6 ) Dynamic WebTools 1,051,596 119,501 3,700,065 678,076 Total $ 1,478,875 $ (404,542 ) $ 3,957,896 $ 188,119 a Amounts include all intercompany receivables, payables, revenues and expenses prior to elimination for consolidation. |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Sep. 02, 2014 | Aug. 28, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 |
August 28, 2013, Financing Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 42,738 | ||||||
Annual rate | 5.24% | ||||||
Debt Instrument, Term | 10 months | ||||||
Monthly payments | $ 4,377 | ||||||
Principal payment | $ 12,821 | $ 25,642 | |||||
Interest payment | $ 310 | $ 620 | |||||
September 2, 2014 Financial Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 44,281 | ||||||
Annual rate | 5.24% | ||||||
Debt Instrument, Term | 9 months | ||||||
Monthly payments | $ 5,028 | ||||||
Principal payment | $ 9,840 | $ 24,601 | |||||
Interest payment | $ 216 | $ 540 | |||||
Notes payable | $ 24,601 |
NOTES RECEIVABLE (Details)
NOTES RECEIVABLE (Details) - USD ($) | Aug. 15, 2011 | Aug. 03, 2011 |
Bryan Development, LLC [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 250,000 | |
Grupo Zapata Arce [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 400,000 | |
Fee per metric ton of iron ore purchased with proceeds of the note | $ 3 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Monthly lease obligation | ||
Year one | $ 4,300 | |
Year two | 4,425 | |
Year three | 4,550 | |
Year four | 4,700 | |
Year five | 4,825 | |
Security deposit | $ 4,825 | $ 4,825 |
Lease expiration period | May 31, 2018 |
LITIGATION MATTERS (Details)
LITIGATION MATTERS (Details) - USD ($) | Jul. 14, 2015 | Jun. 30, 2015 |
LITIGATION MATTERS [Abstract] | ||
Settlement expense | $ 400,000 | |
Damages sought | $ 300,000 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Judgement amount | $ 546,798 | |
Judgement interest rate | 15.00% |
SEGMENT REPORTING (Schedule of
SEGMENT REPORTING (Schedule of Segment Reporting By Business Unit) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenues, net | $ 2,419,037 | $ 1,002,711 | $ 3,957,896 | $ 1,478,875 |
Net income (loss) | 623,011 | (140,913) | $ 188,119 | (404,542) |
Pacific Web Works [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 20,719 | 45,927 | ||
Net income (loss) | (286,143) | (335,570) | $ (652,929) | (736,821) |
IntelliPay [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 83,974 | 113,585 | 174,065 | 236,983 |
Net income (loss) | 69,795 | 99,345 | 143,413 | 202,865 |
Headlamp Ventures [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 53,466 | 72,461 | 82,496 | 142,629 |
Net income (loss) | 19,389 | 10,458 | 18,733 | 2,390 |
Trade Works [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 600 | 820 | 1,270 | 1,720 |
Net income (loss) | $ 576 | $ 683 | $ 1,246 | 1,583 |
Thrifty Seeker [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 20 | |||
Net income (loss) | $ (150) | $ (124) | $ (299) | $ (255) |
Promontory Marketing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | ||||
Net income (loss) | $ (60) | $ (45) | $ (115) | $ (90) |
World Commerce Network [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | ||||
Net income (loss) | $ 3,160 | $ (6) | $ 6,285 | |
Dynamic WebTools [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | $ 2,280,997 | 795,126 | 3,700,065 | 1,051,596 |
Net income (loss) | $ 819,604 | $ 81,180 | $ 678,076 | $ 119,501 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Jul. 14, 2015 - Subsequent Event [Member] - USD ($) | Total |
Subsequent Event [Line Items] | |
Judgement amount | $ 546,798 |
Judgement interest rate | 15.00% |