Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 08, 2013 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'PAYMENT DATA SYSTEMS INC | ' |
Entity Central Index Key | '0001088034 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 124,940,474 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Assets | ' | ' |
Cash and cash equivalents | $9,057,819 | $3,759,791 |
Accounts receivable, net | 141,558 | 403,303 |
Prepaid expenses and other | 85,532 | 114,699 |
Total current assets | 9,284,909 | 4,277,793 |
Property and equipment, net | 130,966 | 91,330 |
Other assets | ' | ' |
Related party receivable | ' | 702,337 |
Marketable securities | 23,953 | 31,467 |
Other assets | 113,644 | 52,693 |
Total other assets | 137,597 | 786,497 |
Total assets | 9,553,472 | 5,155,620 |
Current liabilities: | ' | ' |
Accounts payable | 42,091 | 203,066 |
Accrued expenses | 840,163 | 695,202 |
Customer deposits payable | 8,155,247 | 2,115,122 |
Deferred revenue | 137 | 3,875 |
Total current liabilities | 9,037,638 | 3,017,265 |
Stockholders' equity | ' | ' |
Common stock, $0.001 par value, 200,000,000 shares authorized; 147,721,077 and 147,721,077 issued, and 137,150,323 and 142,725,833 outstanding at September 30, 2013 (unaudited) and December 31, 2012, respectively | 147,721 | 147,721 |
Additional paid-in capital | 56,873,423 | 56,873,423 |
Treasury stock, at cost; 10,570,754 and 4,995,244 shares | -1,241,749 | -238,158 |
Deferred compensation | -1,360,240 | -1,580,050 |
Accumulated deficit | -53,903,321 | -53,064,581 |
Total stockholders' equity | 515,834 | 2,138,355 |
Total liabilities and stockholders' equity | $9,553,472 | $5,155,620 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Stockholders Equity | ' | ' |
Common Stock Shares Par Value | $0.00 | $0.00 |
Common Stock Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock Shares Issued | 147,721,077 | 147,721,077 |
Common Stock Shares Outstanding | 137,150,323 | 142,725,833 |
Treasury Stock | 10,570,754 | 4,995,244 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenues | $962,633 | $2,333,698 | $2,952,966 | $5,099,269 |
Operating expenses | ' | ' | ' | ' |
Cost of services | 824,857 | 1,272,169 | 2,474,945 | 2,952,838 |
Selling, general and administrative | ' | ' | ' | ' |
Stock-based compensation | 73,270 | 59,520 | 219,810 | 178,560 |
Other expenses | 324,862 | 379,016 | 1,049,247 | 1,149,415 |
Depreciation | 8,871 | 1,968 | 22,749 | 3,578 |
Total operating expenses | 1,231,860 | 1,712,673 | 3,766,751 | 4,284,391 |
Operating income (loss) | -269,227 | 621,025 | -813,785 | 814,878 |
Other income (loss) | ' | ' | ' | ' |
Realized/unrealized gain (loss) on marketable securities | -59,584 | 17,450 | -7,514 | 2,299 |
Other income (expense), net | 78 | -724 | 651 | 8,952 |
Total other income and (expense) | -59,506 | 16,726 | -6,863 | 11,251 |
Income (loss) before income taxes | -328,733 | 637,751 | -820,648 | 826,129 |
Income taxes | 11,092 | 11,009 | 18,092 | 26,009 |
Net income (loss) | ($339,825) | $626,742 | ($838,740) | $800,120 |
Earnings (Loss) Per Share | ' | ' | ' | ' |
Basic and diluted earnings (net loss) per common share: | $0 | $0 | $0 | $0.01 |
Weighted average common shares outstanding | ' | ' | ' | ' |
Basic | 125,040,474 | 128,515,984 | 126,529,627 | 128,515,984 |
Diluted | 125,040,474 | 129,764,054 | 126,529,627 | 129,764,054 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Operating activities | ' | ' |
Net income (loss) | ($838,740) | $800,120 |
Adjustments to reconcile net income (loss) to net cash (used) by operating activities | ' | ' |
Unrealized loss on marketable securities | 7,514 | -2,299 |
Depreciation | 22,749 | 3,578 |
Non-cash stock based compensation | 219,810 | 178,560 |
Changes in current assets and current liabilities | ' | ' |
Accounts receivable | 261,745 | -115,684 |
Prepaid expenses and other | 29,168 | -57,764 |
Other assets | -60,951 | -11,000 |
Accounts payable and accrued expenses | -16,014 | 507,038 |
Customer deposits payable | 6,040,125 | -1,621,796 |
Deferred revenue | -3,738 | -61 |
Net cash provided (used) by operating activities: | 5,661,668 | -319,308 |
Investing activities | ' | ' |
Purchases of property and equipment | -62,385 | -22,922 |
Net cash (used) by investing activities: | -62,385 | -22,922 |
Financing Activities | ' | ' |
Proceeds from line of credit | ' | 479,405 |
Payments on line of credit | ' | -779,405 |
Purchases of treasury stock | -301,255 | ' |
Net cash (used) by financing activities | -301,255 | -300,000 |
Change in cash and cash equivalents | 5,298,028 | -642,230 |
Cash and cash equivalents, beginning of period | 3,759,791 | 3,678,688 |
Cash and cash equivalents, end of period | 9,057,819 | 3,036,458 |
Non-cash item: | ' | ' |
Settlement of related party receivable with treasury stock | $702,337 | ' |
1_Basis_of_Presentation
1. Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
1. Basis of Presentation | ' |
The accompanying unaudited consolidated financial statements of Payment Data Systems, Inc. and its subsidiaries (the “Company”) have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying interim consolidated financial statements reflect all adjustments of a normal recurring nature considered necessary to present fairly the Company's financial position, results of operations and cash flows for such periods. The accompanying interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission on April 1, 2013. Results of operations for interim periods are not necessarily indicative of results that may be expected for any other interim periods or the full fiscal year. | |
Cash and Cash Equivalents: Cash and cash equivalents includes cash and other money market instruments. The Company considers all highly liquid investments with an original maturity of ninety days or less to be cash equivalents. Cash also includes customer deposits. | |
Marketable Securities: The Company classifies its marketable security investment portfolio as either held to maturity, available-for-sale, or trading. At September 30, 2013, all of the Company’s marketable securities were trading. Securities classified as trading are carried at fair value with unrealized gains and losses included in the consolidated statement of operations. Classification as current or non-current is based primarily on whether there is an active public market for such security, as well as the daily trading volume of a security relative to the Company’s ownership position. | |
Customer Deposits: A security deposit may be required by the Company. The deposit is used to offset any returned items or chargebacks to the Company. The customer deposit may be revised by the Company based on periodic review of transaction volumes, amounts and chargebacks. Repayment of the deposit to the customer is generally within 90 to 180 days beyond the date the last item is processed by the Company on behalf of the customer. The customer deposit does not accrue interest. | |
Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Reclassification: Certain amounts for 2012 have been reclassified for comparative purposes for 2013. |
2_Accrued_Expenses
2. Accrued Expenses | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
2. Accrued Expenses | ' | ||||||||
Accrued expenses consisted of the following balances: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accrued salaries | $ | 120,850 | $ | 142,257 | |||||
Reserve for processing losses | 297,365 | 214,560 | |||||||
Accrued commissions | 93,659 | 78,071 | |||||||
Accrued taxes | 47,569 | 92,849 | |||||||
Other accrued expenses | 280,720 | 167,465 | |||||||
Total accrued expenses | $ | 840,163 | $ | 695,202 | |||||
3_Line_of_Credit
3. Line of Credit | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
3. Line of Credit | ' |
In November 2011, the Company secured a line of credit, which provided a maximum borrowing of $500,000. The credit line bore interest at 2.25% and was collateralized by a $500,000 certificate of deposit. The line of credit and associated certificate of deposit matured on November 16, 2012. Accordingly, the line of credit expired according to its terms and the collateral was released. |
4_Net_Income_Loss_Per_Share
4. Net Income (Loss) Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings (Loss) Per Share | ' | ||||||||||||||||
4. Net Income (Loss) Per Share | ' | ||||||||||||||||
Basic earnings per share (EPS) were computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted EPS differs from basic EPS due to the assumed conversion of potentially dilutive awards and options that were outstanding during the period. The following is a reconciliation of the numerators and the denominators of the basic and diluted per share computations for net income (loss) for the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Numerator for basic and diluted earnings per share, net income (loss) available to common shareholders | $ | (339,825 | ) | $ | 626,742 | $ | (838,740 | ) | $ | 800,120 | |||||||
Denominator: | |||||||||||||||||
Denominator for basic earnings per share, weighted average shares outstanding | 125,040,474 | 128,515,984 | 126,529,627 | 128,515,984 | |||||||||||||
Effect of dilutive securities | - | 1,248,070 | - | 1,248,070 | |||||||||||||
Denominator for diluted earnings per share, adjusted weighted average shares and assumed conversion | 125,040,474 | 129,764,054 | 126,529,627 | 129,764,054 | |||||||||||||
Basic earnings (loss) per common share | $ | 0 | $ | 0 | $ | 0 | $ | 0.01 | |||||||||
Diluted earnings (loss) per common share and common share equivalent | $ | 0 | $ | 0 | $ | 0 | $ | 0.01 | |||||||||
The awards and options to purchase shares of common stock that were outstanding for the three and nine months ended September 30, 2013 and 2012 and were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive are as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30 | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Anti-dilutive awards and options | 14,799,270 | 9,720,813 | 14,862,274 | 9,720,813 |
5_Fair_Value_Measurements
5. Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
5. Fair Value Measurements | ' | ||||||||||||||||
ASC Topic 820 established a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). | |||||||||||||||||
The three levels of the fair value hierarchy defined by the standard are as follows: | |||||||||||||||||
Level 1: | Quoted prices are available in active markets for identical assets or liabilities; | ||||||||||||||||
Level 2: | Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; or | ||||||||||||||||
Level 3: | Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations. | ||||||||||||||||
The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that are accounted for at fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. | |||||||||||||||||
At September 30, 2013 | |||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Marketable securities | $ | 23,953 | $ | - | $ | - | $ | 23,953 | |||||||||
Liabilities: | |||||||||||||||||
None | $ | - | $ | - | $ | - | $ | - | |||||||||
At December 31, 2012 | |||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Marketable securities | $ | 31,467 | $ | - | $ | - | $ | 31,467 | |||||||||
Liabilities: | |||||||||||||||||
None | $ | - | $ | - | $ | - | $ | - | |||||||||
The Company’s financial instruments relate to its trading marketable securities, which are valued using quoted market prices. Adjustments to fair value are recorded in the consolidated statement of operations. | |||||||||||||||||
6_Related_Party_Transactions
6. Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
6. Related Party Transactions | ' |
Mr. Michael R. Long and Louis A. Hoch | |
As previously disclosed, in 2002, the Company recognized a loss on margin loans it guaranteed for Michael R. Long, then Chairman of the Board of Directors and Chief Executive Officer, and the Company’s current Chief Executive Officer and Chief Financial Officer; and Louis A. Hoch, the Company’s President and Chief Operating Officer, in the amounts of $535,302 and $449,371, respectively. In February 2007, the Company signed employment agreements with Mr. Long and Mr. Hoch that required each to repay his respective obligation to the Company in four equal annual payments of cash or stock or any combination thereof. In December 2007, the Company accepted common stock and stock options valued at $133,826 and $112,343 from Mr. Long and Mr. Hoch, respectively, in satisfaction of their annual payments for 2007 as provided for under their respective employment agreements. | |
In December 2008, Mr. Long and Mr. Hoch did not pay the Company the second annual installment pursuant to their respective employment agreements. They each withheld payment of the installment due because the Company had deferred payment of their salary increases for 2008 called for under their respective employment agreements. At December 31, 2008, the Company owed Mr. Long and Mr. Hoch deferred salaries of $110,000 and $100,000, respectively, and Mr. Long and Mr. Hoch owed the Company $133,825 and $112,343, respectively, for the second installment of their loan repayments. The total amount owed to the Company for the second installment was $246,168 and is classified as “Related Party Receivable” on the Company’s balance sheet at December 31, 2008. On March 30, 2009, the Company accepted 680,715 shares of the Company’s common stock valued at $23,825 and 352,658 shares of the Company’s common stock valued at $12,343 from Mr. Long and Mr. Hoch, respectively, in partial satisfaction of their annual payments due to the Company for 2008 as provided for under their employment agreements. The partial payments of $23,825 and $12,343 made to the Company by Mr. Long and Mr. Hoch, respectively, equaled the difference between the amount each owed to the Company for the second installment of their loan repayments and the amount the Company owed to each executive as deferred salary. The common stock accepted from Mr. Long and Mr. Hoch was valued at $0.035 per share, which was the closing price of the common stock on March 30, 2009. The common stock accepted from Mr. Long and Mr. Hoch was recorded as treasury stock with a total cost of $36,168. | |
On November 12, 2009, the Company executed amendments to its employment agreements with Mr. Long and Mr. Hoch. Under the terms of their respective amended employment agreements, Mr. Long and Mr. Hoch agreed to reduce their annual base salaries for 2009 to $190,000 and $175,000, respectively, from $375,000 and $350,000, respectively. | |
In December 2009, Mr. Long and Mr. Hoch did not pay the Company the third annual installment pursuant to their respective employment agreements. They each withheld payment of the installment due because the Company had partially deferred payment of their salary for 2009 called for under their respective employment agreements. At December 31, 2009, the Company owed Mr. Long and Mr. Hoch deferred salaries for 2009 of $162,385 and $141,808, respectively, and Mr. Long and Mr. Hoch owed the Company $133,825 and $112,343, respectively, for the third installment of their loan repayments. The total amount owed to the Company for the unpaid installments was $456,168 and was classified as “Related Party Receivable” on the Company’s balance sheet at December 31, 2009. | |
On April 12, 2010, the Company executed a second amendment to its employment agreements with Mr. Long and Mr. Hoch. Under the terms of the second amendment to their respective amended employment agreements, Mr. Long and Mr. Hoch agreed to reduce their annual base salaries for 2010 to $24,000 each from $375,000 and $350,000, respectively, and to change their annual bonus limit from 100% of current salary to 100% of the highest salary received in any year of the agreement. | |
In December 2010, Mr. Long and Mr. Hoch did not pay the Company the fourth and final annual installment pursuant to their respective employment agreements. They each withheld payment of the installment due because the Company continued to be unable to pay the deferred salaries that were called for under their respective employment agreements. At December 31, 2010, the Company owed Mr. Long and Mr. Hoch deferred salaries of $147,368 and $126,915, respectively, in regards to their 2009 deferred salary balances. As of December 31, 2010, Mr. Long and Mr. Hoch owed the Company $133,825 and $112,343, respectively, for the fourth and final installment of their loan repayments. The total amount owed to the Company for the unpaid installments was classified as “Related Party Receivable” on the Company’s balance sheet and was $702,337 and $703,060 is at December 31, 2011 and 2010, respectively. | |
On January 14, 2011, the Company executed a third amendment to its employment agreements with Mr. Long and Mr. Hoch. Under the terms of the third amendment to their respective employment agreements, Mr. Long and Mr. Hoch agreed to reduce their annual base salaries for 2011 to $24,000 and $24,000, respectively, from $375,000 and $350,000, respectively. | |
At December 31, 2011, the Company owed Mr. Long and Mr. Hoch a total of $23,473 and $3,300, respectively, in regards to their 2010 deferred salary balances, which were included in accrued expenses on the Company’s balance sheet. The Company paid the obligations in the first quarter of 2012 and thus, the Company’s balance sheet at December 31, 2012 did not reflect any such amounts owed at December 31, 2012. | |
On July 2, 2012, the Company executed a fourth amendment to its employment agreements with Mr. Long and Mr. Hoch. Under the terms of the fourth amendment to their respective employment agreements, Mr. Long and Mr. Hoch agreed to amend their annual base salaries for 2012 to $255,000 and $235,000, respectively, from $375,000 and $350,000, respectively. | |
As of December 31, 2012, Mr. Long owed the Company $377,651 and Mr. Hoch owed the Company $324,686. The total amount for the unpaid installments of $702,337 is classified as “Related Party Receivable” on the Company’s balance sheet at December 31, 2012. | |
On March 11, 2013, in accordance with the Company’s employment agreements with Mr. Long and Mr. Hoch, the Company accepted shares of the Company’s common stock owned by Mr. Long and Mr. Hoch as satisfaction in full for the remaining amounts owed to the Company as annual payments due to the loss on margin loans guaranteed by the Company for Mr. Long and Mr. Hoch. | |
On March 11, 2013, the Company also agreed to purchase additional shares of its common stock owned by Mr. Long and Mr. Hoch, valued at $156,852 and $144,403, respectively, in lieu of the issuances of cash bonuses to Mr. Long and Mr. Hoch. Such bonuses were intended to compensate the executives for their service. As a result, the Company incurred a one-time reduction in cash of $301,255. | |
Accordingly, on March 11, 2013, the Company accepted an aggregate of 2,969,459 shares of the Company’s common stock valued at $534,503, and an aggregate of 2,606,051 shares of the Company’s common stock valued at $469,089 from Mr. Long and Mr. Hoch, respectively, as satisfaction in full of their aggregated outstanding amounts of $702,337 owed to the Company and aggregated compensation of $301,255 paid to Mr. Long and Mr. Hoch in lieu of cash bonuses. The common stock accepted from Mr. Long and Mr. Hoch was valued at $0.18 per share, which was the closing price of the common stock on March 1, 2013. The common stock accepted from Mr. Long and Mr. Hoch was recorded as treasury stock and the Company no longer carries a “Related Party Receivable” on its balance sheet. | |
Accordingly, following the completion of these transactions the Company has no remaining receivables or payables related to Mr. Long, Mr. Hoch or any other officer of the Company. | |
Herb Authier | |
During the nine months ended September 30, 2013 and the year ended December 31, 2012, the Company paid Herb Authier a total of $30,769 and $31,250 in cash, respectively, for services related to network engineering and administration that he provided to the Company. Mr. Authier is the father-in-law of Louis Hoch, the Company’s President and Chief Operating Officer. | |
1_Basis_of_Presentation_Polici
1. Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents: Cash and cash equivalents includes cash and other money market instruments. The Company considers all highly liquid investments with an original maturity of ninety days or less to be cash equivalents. Cash also includes customer deposits. | |
Marketable Securities | ' |
Marketable Securities: The Company classifies its marketable security investment portfolio as either held to maturity, available-for-sale, or trading. At September 30, 2013, all of the Company’s marketable securities were trading. Securities classified as trading are carried at fair value with unrealized gains and losses included in the consolidated statement of operations. Classification as current or non-current is based primarily on whether there is an active public market for such security, as well as the daily trading volume of a security relative to the Company’s ownership position. | |
Customer Deposits | ' |
Customer Deposits: A security deposit may be required by the Company. The deposit is used to offset any returned items or chargebacks to the Company. The customer deposit may be revised by the Company based on periodic review of transaction volumes, amounts and chargebacks. Repayment of the deposit to the customer is generally within 90 to 180 days beyond the date the last item is processed by the Company on behalf of the customer. The customer deposit does not accrue interest. | |
Estimates | ' |
Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Reclassification | ' |
Reclassification: Certain amounts for 2012 have been reclassified for comparative purposes for 2013. |
2_Accrued_Expenses_Tables
2. Accrued Expenses (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Denominator | ' | ||||||||
Accrued Expenses | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accrued salaries | $ | 120,850 | $ | 142,257 | |||||
Reserve for processing losses | 297,365 | 214,560 | |||||||
Accrued commissions | 93,659 | 78,071 | |||||||
Accrued taxes | 47,569 | 92,849 | |||||||
Other accrued expenses | 280,720 | 167,465 | |||||||
Total accrued expenses | $ | 840,163 | $ | 695,202 |
4_Net_Income_Loss_Per_Share_Ta
4. Net Income (Loss) Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings (Loss) Per Share | ' | ||||||||||||||||
Earnings per Share Numerator and Denominator | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Numerator for basic and diluted earnings per share, net income (loss) available to common shareholders | $ | (339,825 | ) | $ | 626,742 | $ | (838,740 | ) | $ | 800,120 | |||||||
Denominator: | |||||||||||||||||
Denominator for basic earnings per share, weighted average shares outstanding | 125,040,474 | 128,515,984 | 126,529,627 | 128,515,984 | |||||||||||||
Effect of dilutive securities | - | 1,248,070 | - | 1,248,070 | |||||||||||||
Denominator for diluted earnings per share, adjusted weighted average shares and assumed conversion | 125,040,474 | 129,764,054 | 126,529,627 | 129,764,054 | |||||||||||||
Basic earnings (loss) per common share | $ | 0 | $ | 0 | $ | 0 | $ | 0.01 | |||||||||
Diluted earnings (loss) per common share and common share equivalent | $ | 0 | $ | 0 | $ | 0 | $ | 0.01 | |||||||||
Computation of diluted earnings per share anti-dilutive | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30 | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Anti-dilutive awards and options | 14,799,270 | 9,720,813 | 14,862,274 | 9,720,813 |
5_Fair_Value_Measurements_Tabl
5. Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measures | ' | ||||||||||||||||
At September 30, 2013 | |||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Marketable securities | $ | 23,953 | $ | - | $ | - | $ | 23,953 | |||||||||
Liabilities: | |||||||||||||||||
None | $ | - | $ | - | $ | - | $ | - | |||||||||
At December 31, 2012 | |||||||||||||||||
Recurring Fair Value Measures | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Marketable securities | $ | 31,467 | $ | - | $ | - | $ | 31,467 | |||||||||
Liabilities: | |||||||||||||||||
None | $ | - | $ | - | $ | - | $ | - |
2_Accrued_Expenses_Details
2. Accrued Expenses (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Numerator | ' | ' |
Accrued salaries | $120,850 | $142,257 |
Reserve for processing losses | 297,365 | 214,560 |
Accrued commissions | 93,659 | 78,071 |
Accrued taxes | 47,569 | 92,849 |
Other accrued expenses | 280,720 | 167,465 |
Total accrued expenses | $840,163 | $695,202 |
4_Net_Income_Loss_Per_Share_De
4. Net Income (Loss) Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net Income Loss Per Share Details | ' | ' | ' | ' | ' |
Numerator for basic and diluted earnings per share, net income (loss) available to common shareholders | $626,742 | ($339,825) | ' | ($838,740) | $800,120 |
Denominator for basic earnings per share, weighted average shares outstanding | 125,040,474 | 125,040,474 | 128,515,984 | 126,529,627 | 128,515,984 |
Effect of dilutive securities | $1,248,070 | ' | ' | ' | $1,248,070 |
Denominator for diluted earnings per share, adjusted weighted average shares and assumed conversion | 125,040,474 | 125,040,474 | 129,764,054 | 126,529,627 | 129,764,054 |
Basic earnings (loss) per common share | $0 | $0 | ' | $0 | $0.01 |
Diluted earnings (loss) per common share and common share equivalent | $0 | $0 | ' | $0 | $0.01 |
4_Net_Income_Loss_Per_Share_De1
4. Net Income (Loss) Per Share (Details 1) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net Income Loss Per Share Details 1 | ' | ' | ' | ' |
Anti-dilutive options | 9,720,813 | 14,799,270 | 14,862,274 | 9,720,813 |
5_Fair_Value_Measurements_Deta
5. Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Level 1 | ' | ' |
Marketable Securities | $23,953 | $31,467 |
Liabilities | ' | ' |
Liabilities | ' | ' |
Level 2 | ' | ' |
Marketable Securities | ' | ' |
Liabilities | ' | ' |
Liabilities | ' | ' |
Level 3 | ' | ' |
Marketable Securities | ' | ' |
Liabilities | ' | ' |
Liabilities | ' | ' |
Total | ' | ' |
Marketable Securities | 23,953 | 31,467 |
Liabilities | ' | ' |
Liabilities | ' | ' |
6_Related_Party_Transactions_D
6. Related Party Transactions (Details Narrative) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Related Party Transactions Details Narrative | ' | ' |
Company paid Herb Authier (fathe-in-law to the Companybs President and Chief Operating Officer) for services related to network engineering and administration | $30,769 | $31,250 |