Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2015 | |
Document and Entity Information: | ||
Entity Registrant Name | FULLNET COMMUNICATIONS INC | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2015 | |
Trading Symbol | fulo | |
Amendment Flag | false | |
Entity Central Index Key | 1,092,570 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 9,118,161 | |
Entity Public Float | $ 262,087 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | No | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | FY |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | |
ASSETS | |||
Cash | $ 16,012 | $ 14,614 | |
Accounts receivable, net | 6,308 | 12,389 | |
Prepaid expenses and other current assets | 2,505 | 9,377 | |
Total current assets | 24,825 | 36,380 | |
PROPERTY AND EQUIPMENT, net | 96,388 | 109,288 | |
OTHER ASSETS AND INTANGIBLE ASSETS | 7,064 | 8,661 | |
TOTAL ASSETS | 128,277 | 154,329 | |
LIABILITIES | |||
Accounts payable | 201,540 | 214,917 | |
Accrued and other liabilities | 543,316 | 486,961 | |
Convertible notes payable, related party - current portion | 46,811 | 46,811 | |
Deferred revenue | 355,545 | 354,967 | |
Total current liabilities | 1,147,212 | 1,103,656 | |
CONVERTIBLE NOTES PAYABLE, related party - less current portion | 168,025 | 199,063 | |
Total liabilities | 1,315,237 | 1,302,719 | |
STOCKHOLDERS' DEFICIT | |||
Preferred stock | [1] | 544,703 | 490,905 |
Common stock | [2] | 91 | 91 |
Additional paid-in capital | 8,640,542 | 8,678,869 | |
Accumulated deficit | (10,372,296) | (10,318,255) | |
Total stockholders' deficit | (1,186,960) | (1,148,390) | |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 128,277 | $ 154,329 | |
[1] | $.001 par value; authorized, 10,000,000 shares; Series A convertible issued and outstanding, 987,102 shares | ||
[2] | $.00001 par value; authorized, 40,000,000 shares; issued and outstanding, 9,118,161 shares |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position Parenthetical | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock Series A convertible, shares outstanding | 987,102 | 987,102 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares outstanding | 9,118,161 | 9,118,161 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
REVENUES | ||
Access service revenues | $ 72,271 | $ 89,689 |
Co-location and other revenues | 1,806,166 | 1,664,562 |
Total revenues | 1,878,437 | 1,754,251 |
OPERATING COSTS AND EXPENSES | ||
Cost of access service revenues | 87,930 | 99,004 |
Cost of co-location and other revenues | 303,488 | 361,872 |
Selling, general and administrative expenses | 1,492,413 | 1,394,203 |
Depreciation and amortization | 32,876 | 40,165 |
Impairment expense | 0 | 11,007 |
Total operating costs and expenses | 1,916,707 | 1,906,251 |
LOSS FROM OPERATIONS | (38,270) | (152,000) |
INTEREST EXPENSE | (15,771) | (15,744) |
NET LOSS | (54,041) | (167,744) |
Preferred stock dividends | (53,798) | (60,523) |
Net loss available to common stockholders | $ (107,839) | $ (228,267) |
Net loss per common share - basic and diluted | $ (0.01) | $ (0.03) |
Weighted average shares outstanding - basic and diluted | 9,118,161 | 9,118,161 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Preferred Stock | Additional Paid In Capital | Accumulated Deficit | Total |
Stockholders' deficit at Dec. 31, 2013 | $ 91 | $ 430,382 | $ 8,716,803 | $ (10,150,511) | $ (1,003,235) |
Shares outstanding at Dec. 31, 2013 | 9,118,161 | 987,102 | |||
Stock options compensation | 22,589 | 22,589 | |||
Amortization of increasing dividend rate preferred stock discount | $ 60,523 | (60,523) | 0 | ||
Net loss | (167,744) | (167,744) | |||
Stockholders' deficit at Dec. 31, 2014 | $ 91 | $ 490,905 | 8,678,869 | (10,318,255) | (1,148,390) |
Shares outstanding at Dec. 31, 2014 | 9,118,161 | 987,102 | |||
Stock options compensation | 15,471 | 15,471 | |||
Amortization of increasing dividend rate preferred stock discount | $ 53,798 | (53,798) | 0 | ||
Net loss | (54,041) | (54,041) | |||
Stockholders' deficit at Dec. 31, 2015 | $ 91 | $ 544,703 | $ 8,640,542 | $ (10,372,296) | $ (1,186,960) |
Shares outstanding at Dec. 31, 2015 | 9,118,161 | 987,102 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (54,041) | $ (167,744) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation and amortization | 32,876 | 40,165 |
Stock options compensation | 15,471 | 22,589 |
Impairment expense | 0 | 11,007 |
Provision for uncollectible accounts receivable | (657) | (5,665) |
Net (increase) decrease in Accounts receivable | 6,738 | 10,816 |
Net (increase) decrease in Prepaid expenses and other current assets | 6,872 | (649) |
Net increase (decrease) in Accounts payable | (13,377) | 51,308 |
Net increase (decrease) in Accrued and other liabilities | 56,355 | 67,461 |
Net increase (decrease) in Deferred revenue | 578 | 48,757 |
Net cash provided by operating activities | 50,815 | 78,045 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Cash paid for property and equipment | (18,379) | (62,188) |
Cash paid for intangible asset | (2,000) | |
Net cash used in investing activities | (18,379) | (64,188) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal payments on borrowings under notes payable | (31,038) | (29,315) |
Net cash used in financing activities | (31,038) | (29,315) |
Net increase (decrease) in cash | 1,398 | (15,458) |
Cash at beginning of period | 14,614 | 30,072 |
Cash at end of period | 16,012 | 14,614 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | 15,771 | 15,744 |
NON-CASH FINANCING ACTIVITIES | ||
Property and equipment purchased on accounts | 36,532 | |
Amortization of increasing dividend rate preferred stock discount | $ 53,798 | $ 60,523 |
Note A - Summary of Accounting
Note A - Summary of Accounting Policies and Nature of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note A - Summary of Accounting Policies and Nature of Operations | NOTE A SUMMARY OF ACCOUNTING POLICIES AND NATURE OF OPERATIONS A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows. Nature of Operations FullNet Communications, Inc. and Subsidiaries (the Company) is an integrated communications provider (ICP) offering integrated communications, Internet connectivity, data storage and advanced voice and data solutions to individuals, businesses, organizations, educational institutions and governmental agencies. Through its subsidiaries, FullNet, Inc., FullTel, Inc., FullWeb, Inc. and CallMultiplier, Inc., the Company provides high quality, reliable and scalable Internet based solutions designed to meet customer needs. Services offered include: Dial-up and direct high-speed connectivity to the Internet through the FullNet brand name; Backbone services to private label Internet services providers (ISPs) and businesses; Carrier-neutral telecommunications premise co-location; Web page hosting; Equipment co-location; Advanced voice and data solutions; and Traditional telephone services. Consolidation The consolidated financial statements include the accounts of FullNet Communications, Inc. and its wholly owned subsidiaries FullNet, Inc., FullTel, Inc., FullWeb, Inc., and CallMultiplier, Inc.. All material inter-company accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures; accordingly, actual results could differ from those estimates. Cash Equivalents Cash equivalents are represented by operating accounts or money market accounts maintained with insured financial institutions which consist of highly liquid investments that mature in three months or less from date of purchase. Accounts Receivable The Company operates and grants credit, on an uncollateralized basis. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of customers comprising the Companys customer base and their dispersion across different industries as well as the Companys emphasis on obtaining deposits and/or payment in advance for services from the majority of its customers. During the years ended December 31, 2015 and 2014, the Company had two customers that each comprised approximately 8% and 7% of total revenues. Accounts receivable, other than certain large customer accounts which are evaluated individually, are considered past due for purposes of determining the allowance for doubtful accounts based on past experience of collectability as follows: 1 29 days 1.5 % 30 59 days 30 % 60 89 days 50 % > 90 days 100 % In addition, if the Company becomes aware of a specific customers inability to meet its financial obligations, a specific reserve is recoded against amounts due to reduce the net recognized receivable to the amount reasonably expected to be collected. Total bad debt expense and direct write-off for the year ended December 31, 2015 was $777. There was a net reduction in bad debt expense and direct write-off for the year ended December 31, 2014 of $5,665. Accounts receivable consist of the following at December 31: Schedule of Accounts Receivable 2015 2014 Accounts receivable $ 209,737 $ 216,475 Less allowance for doubtful accounts (203,429) (204,086) $ 6,308 $ 12,389 Property and Equipment Property and equipment are stated at cost. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the related assets as follows: Software 3 years Computers and equipment 5 years Furniture and fixtures 7 years Leasehold improvements Shorter of estimated life of improvement or the lease term Property and equipment consist of the following at December 31: 2015 2014 Computers and equipment $ 1,551,962 $ 1,542,699 Leasehold improvements 1,092,569 1,083,453 Software 58,041 58,041 Furniture and fixtures 34,581 34,581 2,737,153 2,718,774 Less accumulated depreciation (2,640,765) (2,609,486) $ 96,388 $ 109,288 Depreciation expense for the years ended December 31, 2015 and 2014 was $31,279 and $34,067, respectively. Long-Lived Assets All long-lived assets held and used by the Company, including intangible assets, are reviewed to determine whether any events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. In accordance with ASC 360-10-35 Impairment or Disposal of Long-lived Assets, the Company bases its evaluation on such impairment indicators as the nature of the assets, the future economic benefit of the assets, any historical or future profitability measurements, as well as other external market conditions or factors that may be present. If such impairment indicators are present or other factors exist that indicate that the carrying amount of the asset may not be recoverable the Company determines whether impairment has occurred through the use of an undiscounted cash flows analysis of the asset. If impairment has occurred, the Company recognizes a loss for the difference between the carrying amount and the estimated value of the asset. During the year ended December 31, 2014, $2,000 was paid for intangible assets and none were purchased in 2015. The Company incurred an impairment expense of $11,007 in 2014 and no impairment expense was incurred in 2015. Amortization expense for the years ended December 31, 2015 and 2014 was $1,597 and $6,098, respectively. Revenue Recognition Revenues are reported on a monthly basis as services are provided, price is fixed and determinable, persuasive evidence of an arrangement exists and collectability of the resulting receivable is reasonably assured. Revenue that is received in advance of the services provided is deferred until the services are provided by the Company. Revenue related to set up charges is also deferred and amortized over the life of the contract. Revenues are presented net of taxes and fees billed to customers and remitted to governmental authorities. Advertising The Company expenses advertising production costs as they are incurred and advertising communication costs the first time the advertising takes place. Advertising expense for the years ended December 31, 2015 and 2014 was $130,032 and $99,805, respectively. Income Taxes The Company accounts for income taxes utilizing ASC 740, Income Taxes (SFAS No. 109). ASC 740 requires the measurement of deferred tax assets for deductible temporary differences and operating loss carry forwards, and of deferred tax liabilities for taxable temporary differences. Measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. The effects of future changes in tax laws or rates are not included in the measurement. The Company recognizes the amount of taxes payable or refundable for the current year and recognizes deferred tax liabilities and assets for the expected future tax consequences of events and transactions that have been recognized in the Companys financial statements or tax returns. The Company currently has substantial net operating loss carry forwards. The Company has recorded a 100% valuation allowance against net deferred tax assets due to uncertainty of their ultimate realization. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense and does not believe it has any material unrealized tax benefits at December 31, 2015. The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. Income (Loss) Per Share Income (loss) per share basic is calculated by dividing net income (loss) by the weighted average number of shares of stock outstanding during the year, including shares issuable without additional consideration. Income per share assuming dilution is calculated by dividing net income by the weighted average number of shares outstanding during the year adjusted for the effect of dilutive potential shares calculated using the treasury stock method. 2015 2014 Numerator: Net loss available to common shareholders $ (107,839) $ (228,267) Denominator: Weighted average shares and share equivalents outstanding basic and diluted 9,118,161 9,118,161 Net loss per share basic and diluted $ (.01) $ (.03) Basic and diluted loss per share were the same for the years ended December 31, 2015 and 2014 because there was a net loss for the year. Stock-Based Compensation The Company does not have a written employee stock option plan. The Company has historically granted only employee stock options with an exercise price equal to the market price of the Companys stock at the date of grant, a contractual term of ten years, and a vesting period of three years ratably on the first, second and third anniversaries of the date of grant (with limited exceptions). All employee stock options granted during 2015 and 2014 were nonqualified stock options. Stock-based compensation is measured at the grant date, based on the calculated fair value of the option, and is recognized as an expense on a straight-line basis over the requisite employee service period (generally the vesting period of the grant). The fair values of the granted options are estimated at the date of grant using the Black-Scholes option pricing model. See Note G Common Stock and Stock-Based Compensation for further information on stock-based compensation. Beneficial Conversion Features The intrinsic value of a beneficial conversion feature inherent to a convertible note payable, which is not bifurcated and accounted for separately from the convertible note payable and may not be settled in cash upon conversion, is treated as a discount to the convertible note payable. This discount is amortized over the period from the date of issuance to the date the note is due using the effective interest method. If the note payable is retired prior to the end of its contractual term, the unamortized discount is expensed in the period of retirement to interest expense. In general, the beneficial conversion feature is measured by comparing the effective conversion price, after considering the relative fair value of detachable instruments included in the financing transaction, if any, to the fair value of the common shares at the commitment date to be received upon conversion. Related Parties 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. Fair Value Measurements The Company measures its financial assets and liabilities in accordance with the requirements of FASB ASC 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 Level 2 Level 3 Recent Accounting Pronouncements There have been no recent accounting pronouncements that would impact our financial statements. |
Note B - Going Concern
Note B - Going Concern | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note B - Going Concern | NOTE B GOING CONCERN The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. However, the Company has sustained substantial net losses. At December 31, 2015 and 2014 current liabilities exceeded current assets by $1,122,387 and $1,067,276, respectively. These factors raise substantial doubt about the Companys ability to continue as a going concern. In view of the matters described in the preceding paragraph, the ability of the Company to continue as a going concern is dependent upon continued operations of the Company that in turn is dependent upon the Companys ability to meet its financing requirements on a continuing basis, to maintain present financing, to achieve the objectives of its business plan and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. The Companys business plan includes, among other things, expansion through mergers and acquisitions and the development of its web hosting, co-location, traditional telephone services and advanced voice and data solutions. Execution of the Companys business plan will require significant capital to fund capital expenditures, working capital needs and debt service. Current cash balances will not be sufficient to fund the Companys current business plan beyond the next few months. As a consequence, the Company is currently focusing on revenue enhancement and cost cutting opportunities as well as working to sell non-core assets and to extend vendor payment terms. The Company continues to seek additional convertible debt or equity financing as well as the placement of a credit facility to fund the Companys liquidity. There can be no assurance that the Company will be able to obtain additional capital on satisfactory terms, or at all, or on terms that will not dilute the shareholders interests. |
Note C - Convertible Notes Paya
Note C - Convertible Notes Payable Related Party | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note C - Convertible Notes Payable Related Party | NOTE C CONVERTIBLE NOTES PAYABLE RELATED PARTY Notes payable consist of the following: Schedule of Notes Payable Related Party December 31, 2015 December 31, 2014 Secured convertible promissory note from a shareholder; interest rate of 6% through December 31, 2014, 7% through December 31, 2015, 8% through December 31, 2016, 8.5% through December 31, 2017, and 9% through May 31, 2018, with fixed monthly payments of $3,301 through the Maturity Date, at which time the remaining balance of principal and all accrued interest shall be due and payable; matures May 31, 2018; secured by all tangible and intangible assets of the Company (1) $ 171,799 $ 198,363 Secured convertible promissory note from a shareholder; interest at 6%, requires monthly installments of interest only through May 31, 2014, then requires monthly installments of $600 including principal and interest; matures May 31, 2023; secured by certain equipment of the Company (2) 43,037 47,511 214,836 245,874 Less current portion 46,811 46,811 Convertible notes payable, related party - less current portion $ 168,025 $ 199,063 (1) The note holder has the right to convert the note, in its entirety or in part, into common stock of the Company at the rate of $1.00 per share. During the years 2015 and 2014, the Company made principal payments totaling $26,564 and $26,826, respectively. The secured convertible promissory note had a balance of $171,799 at December 31, 2015 of which $39,608 is short-term and $132,191 is long-term. The Company analyzed the conversion option for derivative accounting and beneficial conversion features consideration under ASC 815-15 Derivatives and Hedging and ASC 470-20 Convertible Securities with Beneficial Conversion Features and noted none. (2) The note holder has the right to convert the note, in its entirety or in part, into common stock of the Company at the rate of $1.00 per share. During the years 2015 and 2014, the Company made principal payments of $4,474 and $2,489, respectively. The secured convertible promissory note had a balance of $43,037 at December 31, 2015 of which $7,203 is short-term and $35,834 is long-term. This secured convertible promissory note is secured by certain equipment of the Company. Upon payment of the balance due on this secured convertible promissory note title of the equipment will be transferred to the Company free and clear of all liens and encumbrances. The Company analyzed the conversion option for derivative accounting and beneficial conversion features consideration under ASC 815-15 Derivatives and Hedging and ASC 470-20 Convertible Securities with Beneficial Conversion Features and noted none. Aggregate future maturities of notes payable and accrued interest at December 31, 2015 are as follows: 2016 $ 31,584 2017 33,418 2018 121,946 2019 5,685 2020 6,036 Thereafter 16,167 $ 214,836 |
Note D - Commitments and Contin
Note D - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note D - Commitments and Contingencies | NOTE D COMMITMENTS AND CONTINGENCIES COMMITMENTS Operating Leases The Company leases its executive office space under a non-cancelable operating lease, at an effective annual rental rate of $16.50 per square foot, which will expire December 31, 2019. Future minimum lease payments required at December 31, 2015 under non-cancelable operating leases that have initial lease terms exceeding one year are presented in the following table: Year ending December 31 2016 $ 221,782 2017 221,782 2018 221,782 2019 221,782 $ 887,128 Rental expense for all operating leases for the years ended December 31, 2015 and 2014 was approximately $316,148 and $309,949, respectively. The Companys long-term non-cancelable operating lease includes scheduled base rental increases over the term of the lease. The total amount of the base rental payments is charged to expense on the straight-line method over the term of the lease. The Company had recorded a deferred credit of $26,092 at December 31, 2015, which is reflected in Accrued and Other Liabilities on the Balance Sheet to reflect the net excess of rental expense over cash payments since inception of the lease. In addition to the base rent payments the Company pays a monthly allocation of the buildings operating expenses. CONTINGENCIES As a provider of telecommunications, the Company is affected by regulatory proceedings in the ordinary course of its business at the state and federal levels. These include proceedings before both the Federal Communications Commission and the Oklahoma Corporation Commission (OCC). In addition, in its operations the Company relies on obtaining many of its underlying telecommunications services and/or facilities from incumbent local exchange carriers or other carriers pursuant to interconnection or other agreements or arrangements. In January 2007, the Company concluded a regulatory proceeding pursuant to the Federal Telecommunications Act of 1996 before the OCC relating to the terms of its interconnection agreement with Southwestern Bell Telephone, L.P. d/b/a AT&T, which succeeds a prior interconnection agreement. The OCC approved this agreement in May 2007. This agreement may be affected by regulatory proceedings at the federal and state levels, with possible adverse impacts on the Company. The Company is unable to accurately predict the outcomes of such regulatory proceedings at this time, but an unfavorable outcome could have a material adverse effect on the Companys business, financial condition or results of operations. |
Note E - Income Taxes
Note E - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note E - Income Taxes | NOTE E INCOME TAXES The Company uses the liability method, where deferred tax assets and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes. The Company has historically incurred losses from operations and therefore had no tax liability. The net deferred asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $2,863,509 and $2,824,227 for 2015 and 2014, respectively and will begin expiring in 2023. Deferred tax assets consist of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realizability. Deferred tax assets consist of the following: December 31, 2015 December 31, 2014 Net operating loss carry-forwards $ 973,593 $ 960,237 Valuation allowance (973,593) (960,237) $ - $ - |
Note F - Common Stock and Stock
Note F - Common Stock and Stock-based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note F - Common Stock and Stock-based Compensation | NOTE F COMMON STOCK AND STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION The Company does not have a written employee stock option plan. The Company has historically granted only employee stock options with an exercise price equal to the market price of the Companys stock at the date of grant, a contractual term of ten years, and a vesting period of three years ratably on the first, second and third anniversaries of the date of grant (with limited exceptions). All employee stock options granted during 2015 and 2014 were nonqualified stock options. Stock-based compensation is measured at the grant date, based on the calculated fair value of the option, and is recognized as an expense on a straight-line basis over the requisite employee service period (generally the vesting period of the grant). The following table summarizes the Companys employee stock option activity for the years ended December 31, 2015 and 2014: Schedule of Employee Stock Option Activity Options Weighted average exercise price Weighted average remaining contractual life (yrs) Aggregate intrinsicvalue Options outstanding, December 31, 2013 3,202,882 $.030 9.10 - Options exercisable, December 31, 2013 1,755,882 $.027 8.75 $ 42,261 Options granted during the year 127,500 .027 - - Options forfeited during the year (20,000) .025 - - Options expired during the year (15,000) 0.050 - - Options outstanding, December 31, 2014 3,295,382 $ .029 8.20 - Options exercisable, December 31, 2014 1,933,549 $ .025 7.84 $ 50,788 Options granted during the year 186,000 .043 - - Options forfeited during the year (158,500) .040 - - Options expired during the year (78,000) .085 - - Options outstanding, December 31, 2015 3,244,882 $.028 7.40 - Options exercisable, December 31, 2015 2,477,215 $.026 7.26 $ 9,089 The following table summarizes the Companys non-vested employee stock option activity for years ended December 31, 2015 and 2014: 2015 2014 Non-vested options outstanding, beginning of year 1,361,833 1,447,000 Options granted during the year 186,000 127,500 Options vested during the year (661,667) (192,667) Options forfeited during the year (158,500) (20,000) Non-vested options outstanding, end of year 727,666 1,361,833 The fair values of the granted options are estimated at the date of grant using the Black-Scholes option pricing model. In addition to the exercise and grant date prices of the options, certain weighted average assumptions that were used to estimate the fair value of stock option grants in the respective periods are listed in the table below: 2015 2014 Risk free interest rate 1.42% - 1.53 % 1.41% - 1.70 % Expected lives (in years) 5 5 Expected volatility 209% - 218 % 222% - 234 % Dividend yield 0 % 0 % The following table shows total stock options compensation expense included in the Consolidated Statements of Operations and the effect on basic and diluted earnings per share for the years ended December 31: 2015 2014 Stock options compensation $ 15,471 $ 22,589 Impact on income per share: Basic $ - $ - Assuming dilution $ - $ - During the year 2015, 30,000 employee stock options were granted which will vest one-third on each annual anniversary of the grant date resulting in $322 of stock options compensation. During the year 2015, 4,000 employee stock options were granted which vested during the year resulting in $156 of stock options compensation. Stock options compensation of $14,993 recorded in the year 2015 was related to options that were granted in prior years. During the year 2015, 152,000 employee stock options were granted and forfeited in the same year. Additionally, 6,500 employee stock options were forfeited that related to options granted in prior years. At December 31, 2015 there was $3,642 of unrecognized stock options compensation that is expected to be recognized as an expense over a weighted-average period of 5.1 years. Also during the year 2015, 78,000 of employee stock options were expired. During the year 2014, 127,500 employee stock options were granted which will vest one-third on each annual anniversary of the grant date resulting in $276 of stock options compensation. Stock options compensation of $22,313 recorded in the year 2014 was related to options that were granted in prior years. During the year 2014, 3,000 employee stock options were granted and forfeited in the same year. Additionally, 17,000 employee stock options were forfeited that related to options granted in prior years. At December 31, 2014 there was $17,584 of unrecognized stock options compensation that is expected to be recognized as an expense over a weighted-average period of 5.2 years. Also during the year 2014, 15,000 of employee stock options were expired. Common Stock Purchase Warrants Outstanding common stock purchase warrants issued to non-employees outstanding at December 31, 2015 are as follows: Number of shares Exerciase price Expiration year 250,000 $ .003 2023 The following table summarizes the Companys common stock purchase warrant activity for the years ended December 31: 2015 Weighted Average Exercise Price 2014 Weighted Average Exercise Price Warrants outstanding, beginning of year 815,000 $ .004 815,000 $ .005 Warrants expired during the year (565,000) .005 - - Warrants outstanding, end of year 250,000 $ .003 815,000 $ .004 The 250,000 warrants outstanding at December 31, 2015 were issued as equity compensation for consulting services. No warrants were granted during the years ended December 31, 2015 and 2014. |
Note G - Series A Convertible P
Note G - Series A Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note G - Series A Convertible Preferred Stock | NOTE G SERIES A CONVERTIBLE PREFERRED STOCK On March 30, 2016 the Companys board of directors made the determination that it was in the best interest of the Company and its stockholders to conserve the Companys working capital at this time and not make the annual dividend payment for the year ending December 31, 2015, on its Series A Convertible Preferred Stock. The Company has never made an annual dividend payment on its Series A convertible preferred stock. The holders of shares of the Series A convertible preferred stock are entitled to receive, when and as declared by the Companys board of directors, dividends in cash in the amount of one cent per share per annum through December 31, 2016, five cents per share per annum through December 31, 2017, six cents per share per annum through December 31, 2018, seven cents per share per annum through December 31, 2019, eight cents per share per annum through December 31, 2020, nine cents per share per annum through December 31, 2021, ten cents per share per annum through December 31, 2022, eleven cents per share per annum through December 31, 2023, and twelve cents per share per annum thereafter, payable within 90 days following the 31st day of December each year on such date as determined by the board of directors. The dividends are cumulative and beginning January 1, 2017, the board of directors of the Company may elect to make any required dividend payment with the Companys unregistered common stock in lieu of cash. Due to the unstated dividend cost arising from the gradually increasing dividends on the Series A convertible preferred stock, the Company calculated a discount on the Series A convertible preferred stock at the time of issuance as the present value of the difference between (i) the dividends that are payable in the periods preceding commencement of the perpetual twelve cents per share per annum dividend; and (ii) the perpetual twelve cents per share per annum dividend for a corresponding number of periods; discounted at a market rate of 12% totaling $309,337. The Series A convertible preferred stock was valued at the market price on the respective date of issuance for a total value of $672,472. The discount will be amortized over the periods preceding commencement of the perpetual dividend, by charging imputed dividend cost against retained earnings and increasing the carrying amount of the Series A convertible preferred stock by a corresponding amount. The discount amortization for the years ended December 31, 2015 and 2014 was $53,798 and $60,523, respectively. The Series A convertible preferred stock was originally issued as non-voting and provided that in the event that the Company failed, for any reason, to make a dividend payment as set forth above, then each share of the Series A convertible preferred stock shall thereafter be entitled to two votes upon any matter that the holders of the common stock of the Company are entitled to vote upon. On March 31, 2014, the Companys board of directors made the determination that it was in the best interest of the Company and its stockholders to conserve the Companys working capital at that time and not make the annual dividend payment for the year ending December 31, 2013. As a result each share of the Series A convertible preferred stock became thereafter entitled to two votes upon any matter that the holders of the common stock of the Company are entitled to vote upon. The Series A convertible preferred stock may be redeemed at the option of the Companys board of directors for one dollar per share plus all accrued and unpaid dividends thereon at the date of redemption. In addition, at any time after a change of control of the Company, the holders of the Series A convertible preferred stock shall have the right, at the election of a majority of the holders, to require the Company to redeem all of the Series A convertible preferred stock for one dollar per share plus all accrued and unpaid dividends thereon at the date of redemption. The Series A convertible preferred stock has a liquidation preference of one dollar per share plus all accrued and unpaid dividends thereon in the event of liquidation, dissolution or winding up of the Company. The Company analyzed the embedded conversion option for derivative accounting consideration under ASC 815-15 Derivatives and Hedging and determined that the conversion option should be classified as equity. The Company analyzed the conversion option for beneficial conversion features consideration under ASC 470-20 Convertible Securities with Beneficial Conversion Features and noted none. |
Note H - Property and Equipment
Note H - Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note H - Property and Equipment | NOTE H PROPERTY AND EQUIPMENT During the year ended December 31, 2015, $18,379 was paid for property and equipment. During the year ended December 31, 2014, $62,188 was paid for property and equipment and $36,532 was purchased on account. Depreciation expense for the years ended December 31, 2015 and 2014 was $31,279 and $34,067, respectively. |
Note I - Change in Estimate
Note I - Change in Estimate | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note I - Change in Estimate | NOTE I CHANGE IN ESTIMATE As a result of a change in managements estimation of a contingent liability arising from the acquisition of certain business assets in 2012, the Company recorded an additional expense in the amount of $32,749 during the year ended December 31, 2015. |
Note A - Summary of Accountin16
Note A - Summary of Accounting Policies and Nature of Operations: Nature of Operations (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Nature of Operations | Nature of Operations FullNet Communications, Inc. and Subsidiaries (the Company) is an integrated communications provider (ICP) offering integrated communications, Internet connectivity, data storage and advanced voice and data solutions to individuals, businesses, organizations, educational institutions and governmental agencies. Through its subsidiaries, FullNet, Inc., FullTel, Inc., FullWeb, Inc. and CallMultiplier, Inc., the Company provides high quality, reliable and scalable Internet based solutions designed to meet customer needs. Services offered include: Dial-up and direct high-speed connectivity to the Internet through the FullNet brand name; Backbone services to private label Internet services providers (ISPs) and businesses; Carrier-neutral telecommunications premise co-location; Web page hosting; Equipment co-location; Advanced voice and data solutions; and Traditional telephone services. |
Note A - Summary of Accountin17
Note A - Summary of Accounting Policies and Nature of Operations: Consolidation (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Consolidation | Consolidation The consolidated financial statements include the accounts of FullNet Communications, Inc. and its wholly owned subsidiaries FullNet, Inc., FullTel, Inc., FullWeb, Inc., and CallMultiplier, Inc.. All material inter-company accounts and transactions have been eliminated. |
Note A - Summary of Accountin18
Note A - Summary of Accounting Policies and Nature of Operations: Use of Estimates (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures; accordingly, actual results could differ from those estimates. |
Note A - Summary of Accountin19
Note A - Summary of Accounting Policies and Nature of Operations: Cash Equivalents (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Cash Equivalents | Cash Equivalents Cash equivalents are represented by operating accounts or money market accounts maintained with insured financial institutions which consist of highly liquid investments that mature in three months or less from date of purchase. |
Note A - Summary of Accountin20
Note A - Summary of Accounting Policies and Nature of Operations: Accounts Receivable (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Accounts Receivable | Accounts Receivable The Company operates and grants credit, on an uncollateralized basis. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of customers comprising the Companys customer base and their dispersion across different industries as well as the Companys emphasis on obtaining deposits and/or payment in advance for services from the majority of its customers. During the years ended December 31, 2015 and 2014, the Company had two customers that each comprised approximately 8% and 7% of total revenues. Accounts receivable, other than certain large customer accounts which are evaluated individually, are considered past due for purposes of determining the allowance for doubtful accounts based on past experience of collectability as follows: 1 29 days 1.5 % 30 59 days 30 % 60 89 days 50 % > 90 days 100 % In addition, if the Company becomes aware of a specific customers inability to meet its financial obligations, a specific reserve is recoded against amounts due to reduce the net recognized receivable to the amount reasonably expected to be collected. Total bad debt expense and direct write-off for the year ended December 31, 2015 was $777. There was a net reduction in bad debt expense and direct write-off for the year ended December 31, 2014 of $5,665. Accounts receivable consist of the following at December 31: Schedule of Accounts Receivable 2015 2014 Accounts receivable $ 209,737 $ 216,475 Less allowance for doubtful accounts (203,429) (204,086) $ 6,308 $ 12,389 |
Note A - Summary of Accountin21
Note A - Summary of Accounting Policies and Nature of Operations: Property and Equipment (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the related assets as follows: Software 3 years Computers and equipment 5 years Furniture and fixtures 7 years Leasehold improvements Shorter of estimated life of improvement or the lease term Property and equipment consist of the following at December 31: 2015 2014 Computers and equipment $ 1,551,962 $ 1,542,699 Leasehold improvements 1,092,569 1,083,453 Software 58,041 58,041 Furniture and fixtures 34,581 34,581 2,737,153 2,718,774 Less accumulated depreciation (2,640,765) (2,609,486) $ 96,388 $ 109,288 Depreciation expense for the years ended December 31, 2015 and 2014 was $31,279 and $34,067, respectively. |
Note A - Summary of Accountin22
Note A - Summary of Accounting Policies and Nature of Operations: Long-lived Assets (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Long-lived Assets | Long-Lived Assets All long-lived assets held and used by the Company, including intangible assets, are reviewed to determine whether any events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. In accordance with ASC 360-10-35 Impairment or Disposal of Long-lived Assets, the Company bases its evaluation on such impairment indicators as the nature of the assets, the future economic benefit of the assets, any historical or future profitability measurements, as well as other external market conditions or factors that may be present. If such impairment indicators are present or other factors exist that indicate that the carrying amount of the asset may not be recoverable the Company determines whether impairment has occurred through the use of an undiscounted cash flows analysis of the asset. If impairment has occurred, the Company recognizes a loss for the difference between the carrying amount and the estimated value of the asset. During the year ended December 31, 2014, $2,000 was paid for intangible assets and none were purchased in 2015. The Company incurred an impairment expense of $11,007 in 2014 and no impairment expense was incurred in 2015. Amortization expense for the years ended December 31, 2015 and 2014 was $1,597 and $6,098, respectively. |
Note A - Summary of Accountin23
Note A - Summary of Accounting Policies and Nature of Operations: Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Revenue Recognition | Revenue Recognition Revenues are reported on a monthly basis as services are provided, price is fixed and determinable, persuasive evidence of an arrangement exists and collectability of the resulting receivable is reasonably assured. Revenue that is received in advance of the services provided is deferred until the services are provided by the Company. Revenue related to set up charges is also deferred and amortized over the life of the contract. Revenues are presented net of taxes and fees billed to customers and remitted to governmental authorities. |
Note A - Summary of Accountin24
Note A - Summary of Accounting Policies and Nature of Operations: Advertising (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Advertising | Advertising The Company expenses advertising production costs as they are incurred and advertising communication costs the first time the advertising takes place. Advertising expense for the years ended December 31, 2015 and 2014 was $130,032 and $99,805, respectively. |
Note A - Summary of Accountin25
Note A - Summary of Accounting Policies and Nature of Operations: Income Taxes (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Income Taxes | Income Taxes The Company accounts for income taxes utilizing ASC 740, Income Taxes (SFAS No. 109). ASC 740 requires the measurement of deferred tax assets for deductible temporary differences and operating loss carry forwards, and of deferred tax liabilities for taxable temporary differences. Measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. The effects of future changes in tax laws or rates are not included in the measurement. The Company recognizes the amount of taxes payable or refundable for the current year and recognizes deferred tax liabilities and assets for the expected future tax consequences of events and transactions that have been recognized in the Companys financial statements or tax returns. The Company currently has substantial net operating loss carry forwards. The Company has recorded a 100% valuation allowance against net deferred tax assets due to uncertainty of their ultimate realization. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense and does not believe it has any material unrealized tax benefits at December 31, 2015. The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. |
Note A - Summary of Accountin26
Note A - Summary of Accounting Policies and Nature of Operations: Income Per Share (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Income Per Share | Income (Loss) Per Share Income (loss) per share basic is calculated by dividing net income (loss) by the weighted average number of shares of stock outstanding during the year, including shares issuable without additional consideration. Income per share assuming dilution is calculated by dividing net income by the weighted average number of shares outstanding during the year adjusted for the effect of dilutive potential shares calculated using the treasury stock method. 2015 2014 Numerator: Net loss available to common shareholders $ (107,839) $ (228,267) Denominator: Weighted average shares and share equivalents outstanding basic and diluted 9,118,161 9,118,161 Net loss per share basic and diluted $ (.01) $ (.03) Basic and diluted loss per share were the same for the years ended December 31, 2015 and 2014 because there was a net loss for the year. |
Note A - Summary of Accountin27
Note A - Summary of Accounting Policies and Nature of Operations: Stock-based Compensation (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Stock-based Compensation | Stock-Based Compensation The Company does not have a written employee stock option plan. The Company has historically granted only employee stock options with an exercise price equal to the market price of the Companys stock at the date of grant, a contractual term of ten years, and a vesting period of three years ratably on the first, second and third anniversaries of the date of grant (with limited exceptions). All employee stock options granted during 2015 and 2014 were nonqualified stock options. Stock-based compensation is measured at the grant date, based on the calculated fair value of the option, and is recognized as an expense on a straight-line basis over the requisite employee service period (generally the vesting period of the grant). The fair values of the granted options are estimated at the date of grant using the Black-Scholes option pricing model. See Note G Common Stock and Stock-Based Compensation for further information on stock-based compensation. |
Note A - Summary of Accountin28
Note A - Summary of Accounting Policies and Nature of Operations: Beneficial Conversion Features (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Beneficial Conversion Features | Beneficial Conversion Features The intrinsic value of a beneficial conversion feature inherent to a convertible note payable, which is not bifurcated and accounted for separately from the convertible note payable and may not be settled in cash upon conversion, is treated as a discount to the convertible note payable. This discount is amortized over the period from the date of issuance to the date the note is due using the effective interest method. If the note payable is retired prior to the end of its contractual term, the unamortized discount is expensed in the period of retirement to interest expense. In general, the beneficial conversion feature is measured by comparing the effective conversion price, after considering the relative fair value of detachable instruments included in the financing transaction, if any, to the fair value of the common shares at the commitment date to be received upon conversion. |
Note A - Summary of Accountin29
Note A - Summary of Accounting Policies and Nature of Operations: Related Parties (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Related Parties | Related Parties 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. |
Note A - Summary of Accountin30
Note A - Summary of Accounting Policies and Nature of Operations: Fair Value Measurements (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Fair Value Measurements | Fair Value Measurements The Company measures its financial assets and liabilities in accordance with the requirements of FASB ASC 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 Level 2 Level 3 |
Note A - Summary of Accountin31
Note A - Summary of Accounting Policies and Nature of Operations: Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There have been no recent accounting pronouncements that would impact our financial statements. |
Note B - Going Concern_ Basis o
Note B - Going Concern: Basis of Accounting (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
Basis of Accounting | The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. |
Note A - Summary of Accountin33
Note A - Summary of Accounting Policies and Nature of Operations: Accounts Receivable: Schedule of Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Accounts Receivable | Schedule of Accounts Receivable 2015 2014 Accounts receivable $ 209,737 $ 216,475 Less allowance for doubtful accounts (203,429) (204,086) $ 6,308 $ 12,389 |
Note A - Summary of Accountin34
Note A - Summary of Accounting Policies and Nature of Operations: Property and Equipment: Schedule of estimated useful lives of property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of estimated useful lives of property and equipment | Software 3 years Computers and equipment 5 years Furniture and fixtures 7 years Leasehold improvements Shorter of estimated life of improvement or the lease term |
Note A - Summary of Accountin35
Note A - Summary of Accounting Policies and Nature of Operations: Property and Equipment: Schedule of Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Property, Plant and Equipment | 2015 2014 Computers and equipment $ 1,551,962 $ 1,542,699 Leasehold improvements 1,092,569 1,083,453 Software 58,041 58,041 Furniture and fixtures 34,581 34,581 2,737,153 2,718,774 Less accumulated depreciation (2,640,765) (2,609,486) $ 96,388 $ 109,288 |
Note A - Summary of Accountin36
Note A - Summary of Accounting Policies and Nature of Operations: Income Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | 2015 2014 Numerator: Net loss available to common shareholders $ (107,839) $ (228,267) Denominator: Weighted average shares and share equivalents outstanding basic and diluted 9,118,161 9,118,161 Net loss per share basic and diluted $ (.01) $ (.03) |
Note C - Convertible Notes Pa37
Note C - Convertible Notes Payable Related Party: Schedule of Notes Payable Related Party (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Notes Payable Related Party | Notes payable consist of the following: Schedule of Notes Payable Related Party December 31, 2015 December 31, 2014 Secured convertible promissory note from a shareholder; interest rate of 6% through December 31, 2014, 7% through December 31, 2015, 8% through December 31, 2016, 8.5% through December 31, 2017, and 9% through May 31, 2018, with fixed monthly payments of $3,301 through the Maturity Date, at which time the remaining balance of principal and all accrued interest shall be due and payable; matures May 31, 2018; secured by all tangible and intangible assets of the Company (1) $ 171,799 $ 198,363 Secured convertible promissory note from a shareholder; interest at 6%, requires monthly installments of interest only through May 31, 2014, then requires monthly installments of $600 including principal and interest; matures May 31, 2023; secured by certain equipment of the Company (2) 43,037 47,511 214,836 245,874 Less current portion 46,811 46,811 Convertible notes payable, related party - less current portion $ 168,025 $ 199,063 |
Note C - Convertible Notes Pa38
Note C - Convertible Notes Payable Related Party: Schedule of Maturities of Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Maturities of Long-term Debt | 2016 $ 31,584 2017 33,418 2018 121,946 2019 5,685 2020 6,036 Thereafter 16,167 $ 214,836 |
Note D - Commitments and Cont39
Note D - Commitments and Contingencies: Contractual Obligation, Future Minimum Payments Under Operating Lease (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Contractual Obligation, Future Minimum Payments Under Operating Lease | Year ending December 31 2016 $ 221,782 2017 221,782 2018 221,782 2019 221,782 $ 887,128 |
Note E - Income Taxes_ Schedule
Note E - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets consist of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realizability. Deferred tax assets consist of the following: December 31, 2015 December 31, 2014 Net operating loss carry-forwards $ 973,593 $ 960,237 Valuation allowance (973,593) (960,237) $ - $ - |
Note F - Common Stock and Sto41
Note F - Common Stock and Stock-based Compensation: Schedule of Share-based Compensation, Activity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Activity | Schedule of Employee Stock Option Activity Options Weighted average exercise price Weighted average remaining contractual life (yrs) Aggregate intrinsicvalue Options outstanding, December 31, 2013 3,202,882 $.030 9.10 - Options exercisable, December 31, 2013 1,755,882 $.027 8.75 $ 42,261 Options granted during the year 127,500 .027 - - Options forfeited during the year (20,000) .025 - - Options expired during the year (15,000) 0.050 - - Options outstanding, December 31, 2014 3,295,382 $ .029 8.20 - Options exercisable, December 31, 2014 1,933,549 $ .025 7.84 $ 50,788 Options granted during the year 186,000 .043 - - Options forfeited during the year (158,500) .040 - - Options expired during the year (78,000) .085 - - Options outstanding, December 31, 2015 3,244,882 $.028 7.40 - Options exercisable, December 31, 2015 2,477,215 $.026 7.26 $ 9,089 |
Note F - Common Stock and Sto42
Note F - Common Stock and Stock-based Compensation: Schedule of Nonvested Share Activity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Nonvested Share Activity | 2015 2014 Non-vested options outstanding, beginning of year 1,361,833 1,447,000 Options granted during the year 186,000 127,500 Options vested during the year (661,667) (192,667) Options forfeited during the year (158,500) (20,000) Non-vested options outstanding, end of year 727,666 1,361,833 |
Note F - Common Stock and Sto43
Note F - Common Stock and Stock-based Compensation: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | 2015 2014 Risk free interest rate 1.42% - 1.53 % 1.41% - 1.70 % Expected lives (in years) 5 5 Expected volatility 209% - 218 % 222% - 234 % Dividend yield 0 % 0 % |
Note F - Common Stock and Sto44
Note F - Common Stock and Stock-based Compensation: Schedule of Stock Options Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Stock Options Compensation Expense | 2015 2014 Stock options compensation $ 15,471 $ 22,589 Impact on income per share: Basic $ - $ - Assuming dilution $ - $ - |
Note F - Common Stock and Sto45
Note F - Common Stock and Stock-based Compensation: Schedule of Outstanding common stock purchase warrants issued to non-employees (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Outstanding common stock purchase warrants issued to non-employees | Number of shares Exerciase price Expiration year 250,000 $ .003 2023 |
Note F - Common Stock and Sto46
Note F - Common Stock and Stock-based Compensation: Schedule of common stock purchase warrant activity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of common stock purchase warrant activity | 2015 Weighted Average Exercise Price 2014 Weighted Average Exercise Price Warrants outstanding, beginning of year 815,000 $ .004 815,000 $ .005 Warrants expired during the year (565,000) .005 - - Warrants outstanding, end of year 250,000 $ .003 815,000 $ .004 |
Note A - Summary of Accountin47
Note A - Summary of Accounting Policies and Nature of Operations: Accounts Receivable: Schedule of Accounts Receivable (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Details | ||
Accounts Receivable, Gross, Current | $ 209,737 | $ 216,475 |
Allowance for Doubtful Accounts Receivable, Current | (203,429) | (204,086) |
Accounts receivable, net | $ 6,308 | $ 12,389 |
Note A - Summary of Accountin48
Note A - Summary of Accounting Policies and Nature of Operations: Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Property, Plant and Equipment, Depreciation Methods | straight-line method | |
Depreciation | $ 31,279 | $ 34,067 |
Note A - Summary of Accountin49
Note A - Summary of Accounting Policies and Nature of Operations: Property and Equipment: Schedule of estimated useful lives of property and equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Software and Software Development Costs | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer Equipment | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and Fixtures | |
Property, Plant and Equipment, Useful Life | 7 years |
Leasehold Improvements | |
Property Plant and Equipment, Estimated useful life, Description | Shorter of estimated life of improvement or the lease term |
Note A - Summary of Accountin50
Note A - Summary of Accounting Policies and Nature of Operations: Property and Equipment: Schedule of Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Details | ||
Machinery and Equipment, Gross | $ 1,551,962 | $ 1,542,699 |
Leasehold Improvements, Gross | 1,092,569 | 1,083,453 |
Capitalized Computer Software, Gross | 58,041 | 58,041 |
Furniture and Fixtures, Gross | 34,581 | 34,581 |
Property, Plant and Equipment, Gross | 2,737,153 | 2,718,774 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (2,640,765) | (2,609,486) |
PROPERTY AND EQUIPMENT, net | $ 96,388 | $ 109,288 |
Note A - Summary of Accountin51
Note A - Summary of Accounting Policies and Nature of Operations: Long-lived Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Goodwill, Impairment Loss | $ 0 | $ 11,007 |
Amortization | $ 1,597 | $ 6,098 |
Note A - Summary of Accountin52
Note A - Summary of Accounting Policies and Nature of Operations: Advertising (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Advertising Expense | $ 130,032 | $ 99,805 |
Note A - Summary of Accountin53
Note A - Summary of Accounting Policies and Nature of Operations: Income Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Net loss available to common stockholders | $ (107,839) | $ (228,267) |
Weighted average shares outstanding - basic and diluted | 9,118,161 | 9,118,161 |
Net loss per common share - basic and diluted | $ (0.01) | $ (0.03) |
Note B - Going Concern (Details
Note B - Going Concern (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Substantial Doubt about Going Concern, Conditions or Events | At December 31, 2015 and 2014 current liabilities exceeded current assets by $1,122,387 and $1,067,276, respectively. | |
Excess of liabilities over assets | $ 1,122,387 | $ 1,067,276 |
Substantial Doubt about Going Concern, Management's Plans, Substantial Doubt Not Alleviated | The Company’s business plan includes, among other things, expansion through mergers and acquisitions and the development of its web hosting, co-location, traditional telephone services and advanced voice and data solutions. Execution of the Company’s business plan will require significant capital to fund capital expenditures, working capital needs and debt service. Current cash balances will not be sufficient to fund the Company’s current business plan beyond the next few months. |
Note C - Convertible Notes Pa55
Note C - Convertible Notes Payable Related Party: Schedule of Notes Payable Related Party (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Related Party Transaction, Due from (to) Related Party | $ 214,836 | $ 245,874 | |
Related Party Transaction, Due from (to) Related Party, Current | 46,811 | 46,811 | |
Related Party Transaction, Due from (to) Related Party, Noncurrent | $ 168,025 | 199,063 | |
Related Party Note 1 | |||
Related Party Transaction, Description of Transaction | [1] | Secured convertible promissory note from a shareholder | |
Debt Instrument, Maturity Date | [1] | May 31, 2018 | |
Debt Instrument, Collateral | [1] | secured by all tangible and intangible assets of the Company | |
Related Party Transaction, Due from (to) Related Party | [1] | $ 171,799 | 198,363 |
Related Party Note 1 | Through December 31, 2014 | |||
Related Party Transaction, Rate | [1] | 6.00% | |
Related Party Note 1 | Through December 31, 2015 | |||
Related Party Transaction, Rate | [1] | 7.00% | |
Related Party Note 1 | Through December 31, 2016 | |||
Related Party Transaction, Rate | [1] | 8.00% | |
Related Party Note 1 | Through December 31, 2017 | |||
Related Party Transaction, Rate | [1] | 8.50% | |
Related Party Note 1 | Through May 31, 2018 | |||
Related Party Transaction, Rate | [1] | 9.00% | |
Related Party Note 2 | |||
Related Party Transaction, Description of Transaction | [2] | Secured convertible promissory note from a shareholder | |
Related Party Transaction, Rate | [2] | 6.00% | |
Debt Instrument, Maturity Date | [2] | May 31, 2023 | |
Debt Instrument, Collateral | [2] | secured by certain equipment of the Company | |
Related Party Transaction, Due from (to) Related Party | [2] | $ 43,037 | $ 47,511 |
Related Party Transaction, Terms and Manner of Settlement | [2] | requires monthly installments of interest only through May 31, 2014, then requires monthly installments of $600 including principal and interest | |
[1] | The note holder has the right to convert the note, in its entirety or in part, into common stock of the Company at the rate of $1.00 per share. During the years 2015 and 2014, the Company made principal payments totaling $26,564 and $26,826, respectively. The secured convertible promissory note had a balance of $171,799 at December 31, 2015 of which $39,608 is short-term and $132,191 is long-term. The Company analyzed the conversion option for derivative accounting and beneficial conversion features consideration under ASC 815-15 Derivatives and Hedging and ASC 470-20 Convertible Securities with Beneficial Conversion Features and noted none. | ||
[2] | The note holder has the right to convert the note, in its entirety or in part, into common stock of the Company at the rate of $1.00 per share. During the years 2015 and 2014, the Company made principal payments of $4,474 and $2,489, respectively. The secured convertible promissory note had a balance of $43,037 at December 31, 2015 of which $7,203 is short-term and $35,834 is long-term. This secured convertible promissory note is secured by certain equipment of the Company. Upon payment of the balance due on this secured convertible promissory note title of the equipment will be transferred to the Company free and clear of all liens and encumbrances. The Company analyzed the conversion option for derivative accounting and beneficial conversion features consideration under ASC 815-15 Derivatives and Hedging and ASC 470-20 Convertible Securities with Beneficial Conversion Features and noted none. |
Note C - Convertible Notes Pa56
Note C - Convertible Notes Payable Related Party (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Note 1 | ||
Related Party Notes, Principal Payment | $ 26,564 | $ 26,826 |
Related Party Notes, Balance | 171,799 | |
Related Party Notes, Balance, Short-term | 39,608 | |
Related Party Notes, Balance, Long-term | 132,191 | |
Related Party Note 2 | ||
Related Party Notes, Principal Payment | 4,474 | $ 2,489 |
Related Party Notes, Balance | 43,037 | |
Related Party Notes, Balance, Short-term | 7,203 | |
Related Party Notes, Balance, Long-term | $ 35,834 |
Note C - Convertible Notes Pa57
Note C - Convertible Notes Payable Related Party: Schedule of Maturities of Long-term Debt (Details) | Dec. 31, 2015USD ($) |
Details | |
Long-term Debt and Capital Lease Obligations, Repayments of Principal in Next Twelve Months | $ 31,584 |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Two | 33,418 |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Three | 121,946 |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Four | 5,685 |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Five | 6,036 |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal after Year Five | 16,167 |
Long-term Debt and Capital Lease Obligations | $ 214,836 |
Note D - Commitments and Cont58
Note D - Commitments and Contingencies: Contractual Obligation, Future Minimum Payments Under Operating Lease (Details) | Dec. 31, 2015USD ($) |
Details | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 221,782 |
Operating Leases, Future Minimum Payments, Due in Two Years | 221,782 |
Operating Leases, Future Minimum Payments, Due in Three Years | 221,782 |
Operating Leases, Future Minimum Payments, Due in Four Years | 221,782 |
Operating Leases, Future Minimum Payments Due | $ 887,128 |
Note D - Commitments and Cont59
Note D - Commitments and Contingencies: Commitments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Operating Leases, Rent Expense | $ 316,148 | $ 309,949 |
Description of Lessee Leasing Arrangements, Operating Leases | The Company’s long-term non-cancelable operating lease includes scheduled base rental increases over the term of the lease. The total amount of the base rental payments is charged to expense on the straight-line method over the term of the lease. | |
Deferred Rent Credit | $ 26,092 |
Note D - Commitments and Cont60
Note D - Commitments and Contingencies: Contingencies (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Details | |
Loss Contingency, Management's Assessment and Process | The Company is unable to accurately predict the outcomes of such regulatory proceedings at this time, but an unfavorable outcome could have a material adverse effect on the Company’s business, financial condition or results of operations. |
Note E - Income Taxes_ Schedu61
Note E - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Details | ||
Operating Loss Carryforwards | $ 973,593 | $ 960,237 |
Operating Loss Carryforwards, Valuation Allowance | $ (973,593) | $ (960,237) |
Note F - Common Stock and Sto62
Note F - Common Stock and Stock-based Compensation: Schedule of Share-based Compensation, Activity (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | |
Details | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | shares | 3,295,382 | 3,202,882 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 0.029 | $ 0.030 |
Options Outstanding, Weighted Average Remaining Contractual Life in Years | 8.20 | 9.10 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 1,933,549 | 1,755,882 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 0.025 | $ 0.027 |
Options Exercisable, Weighted Average Remaining Contractual Life in Years | 7.84 | 8.75 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 50,788 | $ 42,261 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 186,000 | 127,500 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 0.043 | $ 0.027 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | shares | (158,500) | (20,000) |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ / shares | $ 0.040 | $ 0.025 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | shares | (78,000) | (15,000) |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ / shares | $ 0.085 | $ 0.050 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | shares | 3,244,882 | 3,295,382 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares | $ 0.028 | $ 0.029 |
Options Outstanding, Weighted Average Remaining Contractual Life in Years | 7.40 | 8.20 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 2,477,215 | 1,933,549 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 0.026 | $ 0.025 |
Options Exercisable, Weighted Average Remaining Contractual Life in Years | 7.26 | 7.84 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 9,089 | $ 50,788 |
Note F - Common Stock and Sto63
Note F - Common Stock and Stock-based Compensation: Schedule of Nonvested Share Activity (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Beginning Balance | 1,361,833 | 1,447,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 186,000 | 127,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | (661,667) | (192,667) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (158,500) | (20,000) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Ending Balance | 727,666 | 1,361,833 |
Note F - Common Stock and Sto64
Note F - Common Stock and Stock-based Compensation: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Assumptions, Expected Term | 5 years | 5 years |
Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% |
Minimum | ||
Fair Value Assumptions, Risk Free Interest Rate | 1.42% | 1.41% |
Fair Value Assumptions, Expected Volatility Rate | 209.00% | 222.00% |
Maximum | ||
Fair Value Assumptions, Risk Free Interest Rate | 1.53% | 1.70% |
Fair Value Assumptions, Expected Volatility Rate | 218.00% | 234.00% |
Note F - Common Stock and Sto65
Note F - Common Stock and Stock-based Compensation: Schedule of Stock Options Compensation Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Allocated Share-based Compensation Expense | $ 15,471 | $ 22,589 |
Note F - Common Stock and Sto66
Note F - Common Stock and Stock-based Compensation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (158,500) | (20,000) |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 3,642 | $ 17,584 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 78,000 | 15,000 |
Warrants granted | $ 0 | $ 0 |
Vest one-third on each annual anniversary of the grant date | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 30,000 | 127,500 |
Stock Options Compensation | $ 322 | $ 276 |
Vested during the year | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 4,000 | |
Stock Options Compensation | $ 156 | |
Related to options that were granted in prior years | ||
Stock Options Compensation | $ 14,993 | $ 22,313 |
In the same year | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 152,000 | 3,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 152,000 | 3,000 |
Related to options granted in prior years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 6,500 | 17,000 |
Note F - Common Stock and Sto67
Note F - Common Stock and Stock-based Compensation: Schedule of Outstanding common stock purchase warrants issued to non-employees (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Details | |
Common Stock purchase warrants issued to non-employees, outstanding | shares | 250,000 |
Common Stock purchase warrants issued to non-employees, exercise price | $ / shares | $ 0.003 |
Common Stock purchase warrants issued to non-employees, expiration year | 2,023 |
Note F - Common Stock and Sto68
Note F - Common Stock and Stock-based Compensation: Schedule of common stock purchase warrant activity (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Details | ||||
Warrants and Rights Outstanding | $ 250,000 | [1] | $ 815,000 | $ 815,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.003 | $ 0.004 | $ 0.005 | |
Warrants expired | $ (565,000) | |||
Warrants expired, weighted average price | $ 0.005 | |||
[1] | Issued as equity compensation for consulting services. |
Note G - Series A Convertible69
Note G - Series A Convertible Preferred Stock (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Convertible Preferred Stock, Terms of Conversion | On March 30, 2016 the Company’s board of directors made the determination that it was in the best interest of the Company and its stockholders to conserve the Company’s working capital at this time and not make the annual dividend payment for the year ending December 31, 2015, on its Series A Convertible Preferred Stock. The Company has never made an annual dividend payment on its Series A convertible preferred stock. | |
Preferred Stock, Dividend Payment Rate, Variable | one cent per share per annum through December 31, 2016, five cents per share per annum through December 31, 2017, six cents per share per annum through December 31, 2018, seven cents per share per annum through December 31, 2019, eight cents per share per annum through December 31, 2020, nine cents per share per annum through December 31, 2021, ten cents per share per annum through December 31, 2022, eleven cents per share per annum through December 31, 2023, and twelve cents per share per annum thereafter | |
Preferred Stock, Dividend Payment Terms | payable within 90 days following the 31st day of December each year on such date as determined by the board of directors. The dividends are cumulative and beginning January 1, 2017, the board of directors of the Company may elect to make any required dividend payment with the Company’s unregistered common stock in lieu of cash. | |
Series A Preferred Stock, Discount Amortization | $ 53,798 | $ 60,523 |
Note H - Property and Equipme70
Note H - Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Property, Plant and Equipment, Additions | $ 18,379 | $ 62,188 |
Property and equipment purchased on accounts | $ 36,532 |
Note I - Change in Estimate (De
Note I - Change in Estimate (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Details | |
Change in Accounting Estimate, Description | As a result of a change in management’s estimation of a contingent liability arising from the acquisition of certain business assets in 2012, the Company recorded an additional expense in the amount of $32,749 during the year ended December 31, 2015. |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 32,749 |