Enterprise Diversified 10-Q 14 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 14, 2014
Document And Entity Information	'	'
Entity Registrant Name	'SiteStar Corp.	'
Entity Central Index Key	'0001096934	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
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	'	74,085,705
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

Balance_Sheets_Unaudited

Balance Sheets (Unaudited) (USD $)	Jun. 30, 2014	Dec. 31, 2013
ASSETS	'	'
Real estate - held-for-resale	$2,573,530	$2,712,441
Real estate - held for investment, net	817,635	531,165
Cash and cash equivalents	238,185	118,469
Accounts receivable, net	21,876	35,129
Prepaid expenses	1,360	1,394
Property, plant and equipment, net	146,314	146,314
Goodwill, net	1,166,494	1,166,494
Deferred tax assets	'	74,276
Other assets	217,563	217,563
Total assets	5,182,957	5,003,245
LIABILITIES	'	'
Accounts payable	56,606	12,121
Accrued expenses	28,884	19,129
Deferred revenue	304,174	312,898
Notes payable	900,615	900,615
Notes payable - stockholder	63,547	59,826
Total liabilities	1,353,826	1,304,589
STOCKHOLDERS' EQUITY	'	'
Preferred Stock, $.001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding	'	'
Common stock, $.001 par value, 300,000,000 shares authorized, 91,326,463 shares issued and 74,085,705 shares outstanding at June 30, 2014 and December 31, 2013	91,326	91,326
Additional paid-in capital	13,880,947	13,880,947
Treasury stock, at cost, 17,240,758 common shares	-789,518	-789,518
Accumulated deficit	-9,353,624	-9,484,099
Total stockholders equity	3,829,131	3,698,656
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$5,182,957	$5,003,245

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Preferred Stock Par Value	$0.00	$0.00
Preferred Stock Shares Authorized	10,000,000	10,000,000
Preferred Stock Shares Issued	0	0
Preferred Stock Shares Outstanding	0	0
Common Stock Par Value	$0.00	$0.00
Common Stock Shares Authorized	300,000,000	300,000,000
Common Stock Shares Issued	91,326,463	91,326,463
Common Stock Shares Outstanding	74,085,705	74,085,705
Common Shares Treasury Stock	17,240,758	17,240,758

Statements_of_Operations_Unaud

Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
REVENUE	'	'	'	'
Internet	$499,618	$594,274	$1,018,854	$1,265,375
Real estate	31,820	15,122	191,708	30,992
Revenue	531,438	609,396	1,210,562	1,296,367
COST OF REVENUE	'	'	'	'
Internet	175,836	312,454	374,612	663,426
Real estate	14,147	'	159,939	3,076
Cost of Revenue	189,983	312,454	534,551	666,502
GROSS PROFIT	341,455	296,942	676,011	629,865
OPERATING EXPENSES:	'	'	'	'
Selling general and administrative expenses	187,632	258,653	469,429	461,300
INCOME FROM OPERATIONS	153,823	38,289	206,582	168,565
OTHER INCOME (EXPENSES):	'	'	'	'
Other income	-54	1,221	533	1,723
Interest expense	-1,201	-1,141	-2,365	-2,471
TOTAL OTHER INCOME (EXPENSE)	-1,255	80	-1,832	-748
INCOME BEFORE INCOME TAXES	152,568	38,369	204,750	167,817
INCOME TAXES (EXPENSE) BENEFIT	74,275	-16,731	74,275	-64,537
NET INCOME	$78,293	$21,638	$130,475	$103,460
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE	$0	$0	$0	$0
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED	74,085,705	74,085,705	74,085,705	74,085,705

Statements_of_Cash_Flows_Unaud

Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net income	$130,475	$103,460
Adjustments to reconcile net income to net cash provided by (used in) operating activities:	'	'
Depreciation and amortization expense	10,831	8,431
Allowance for doubtful accounts	-2,689	34
Deferred income taxes	26,767	63,060
(Increase) decrease in accounts receivable	15,942	8,850
(Increase) decrease in prepaid expenses	34	6,515
(Increase) decrease in real estate	-158,388	-206,251
Decrease in accounts payable	44,483	-15,669
Increase (decrease) in accrued expenses	60,985	-6,249
Decrease in deferred revenue	-8,724	-41,628
Net cash provided by (used in) operating activities	119,716	-79,447
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
(Increase) decrease in other assets held for resale	'	3
Net cash provided by (used in) investing activities	'	3
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Repayment of notes payable - stockholders	'	'
Net cash provided by (used in) financing activities	'	'
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	119,716	-79,444
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	118,469	148,590
CASH AND CASH EQUIVALENTS - END OF PERIOD	238,185	69,146
Supplemental Disclosures of Cash Flow Information	'	'
Income Taxes Paid	0	1,696
Interest Expense Paid	$2,365	$2,471

1_BASIS_OF_PRESENTATION_AND_SI

1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	'
	NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
	Basis of Presentation
	The unaudited condensed consolidated financial statements have been prepared by SiteStar Corporation (the “Company” or “SiteStar”), pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) have been omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K.  The results for the six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the full year ending December 31, 2014.
	Significant Accounting Policies
	See the Notes to Consolidated Financial Statements in the Company’s 2013 Annual Report on Form 10-K.
	Recently Issued Accounting Pronouncements
	No new accounting pronouncement issued or effective during this fiscal quarter has had or is expected to have a material impact on the consolidated financial statements.
	Income Per Share
	The basic income per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding.  Diluted income per common share is computed similar to basic income per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The Company has no potentially dilutive securities.  The following table represents the calculations of basic and diluted income per share:
	For the three months ended June 30, 2014 and 2013:
		2014		2013
	Net income available to common shareholders	$	78,293	$	21,638
	Weighted average number of common shares		74,085,705		74,085,705
	Basic and diluted income per share	$	0	$	0
	For the six months ended June 30, 2014 and 2013:
		2014		2013
	Net income available to common shareholders	$	130,475	$	103,460
	Weighted average number of common shares		74,085,705		74,085,705
	Basic and diluted income per share	$	0	$	0

2_COMMON_STOCK

2. COMMON STOCK	6 Months Ended
	Jun. 30, 2014
Equity [Abstract]	'
2. COMMON STOCK	'
	NOTE 2 – COMMON STOCK
	During the six months ended June 30, 2014, the Company issued no shares of common stock and repurchased no treasury shares.

3_SEGMENT_INFORMATION

3. SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2014
Segment Reporting [Abstract]	'
3. SEGMENT INFORMATION	'
	NOTE 3 – SEGMENT INFORMATION
	The Company has three business units with separate management and reporting infrastructures that offer different products and services.  The business units have been aggregated into three reportable segments: Corporate, Real estate and Internet.  The Corporate group is the holding company which oversees the operating of the Internet group and arranges financing. The real estate group invests in, refurbishes and markets real estate for resale.  The Internet group provides Internet access to customers throughout the U.S. and Canada. The Company evaluates the performance of its operating segments based on income from operations, before income taxes, accounting changes, non-recurring items, and interest income and expense.
	Summarized financial information concerning the Company's reportable segments is shown in the following tables for the three months ended June 30, 2014 and 2013:
	30-Jun-14
		Corporate			Real estate		Internet		Consolidated
	Revenue	$	—		$	31,820	$	499,618	$	531,438
	Operating income (loss)	$	(33,679	)	$	17,673	$	136,149	$	153,823
	Depreciation and amortization	$	—		$	—	$	5,553	$	5,553
	Interest expense	$	—		$	—	$	1,201	$	1,201
	Real estate	$	—		$	3,391,165	$	—	$	3,391,165
	Intangible assets	$	—		$	—	$	1,166,494	$	1,166,494
	Total assets	$	—		$	3,391,165	$	1,791,792	$	5,182,957
	30-Jun-13
		Corporate			Real estate		Internet		Consolidated
	Revenue	$	—		$	15,122	$	594,274	$	609,396
	Operating income (loss)	$	(50,990	)	$	15,122	$	74,157	$	38,289
	Depreciation and amortization	$	—		$	—	$	1,488	$	1,488
	Interest expense	$	—		$	—	$	1,141	$	1,141
	Real estate	$	—		$	3,124,514	$	—	$	3,124,514
	Intangible assets	$	—		$	—	$	1,288,809	$	1,288,809
	Total assets	$	—		$	3,124,514	$	1,933,919	$	5,058,433
	Summarized financial information concerning the Company's reportable segments is shown in the following tables for the six months ended June 30, 2014 and 2013:
	30-Jun-14
		Corporate			Real estate		Internet		Consolidated
	Revenue	$	—		$	191,708	$	1,018,854	$	1,210,562
	Operating income (loss)	$	(93,678	)	$	31,769	$	268,491	$	206,582
	Depreciation and amortization	$	—		$	—	$	10,831	$	10,831
	Interest expense	$	—		$	—	$	2,365	$	2,365
	Real estate	$	—		$	3,391,165	$	—	$	3,391,165
	Intangible assets	$	—		$	—	$	1,166,494	$	1,166,494
	Total assets	$	—		$	3,391,165	$	1,791,792	$	5,182,957
	30-Jun-13
		Corporate			Real estate		Internet		Consolidated
	Revenue	$	—		$	30,992	$	1,265,375	$	1,296,367
	Operating income (loss)	$	(88,115	)	$	27,916	$	228,764	$	168,565
	Depreciation and amortization	$	—		$	—	$	8,431	$	8,431
	Interest expense	$	—		$	—	$	2,471	$	2,471
	Real estate	$	—		$	3,124,514	$	—	$	3,124,514
	Intangible assets	$	—		$	—	$	1,288,809	$	1,288,809
	Total assets	$	—		$	3,124,514	$	1,933,919	$	5,058,433

4_NOTES_PAYABLE

4. NOTES PAYABLE	6 Months Ended
	Jun. 30, 2014
Debt Disclosure [Abstract]	'
4. NOTES PAYABLE	'
	NOTE 4 - NOTES PAYABLE
	This USA Telephone note payable is due and is currently in litigation. At June 30, 2014, and December 31, 2013, the balance consist of the following:
		2014		2013
	Non-interest bearing amount due on acquisition of USA Telephone customers per contract payable in thirty six monthly installments starting January 2008.	$	900,615	$	900,615
	Litigation
	United Systems Access, Inc., et al. v. SiteStar Corporation, Civil Action, Docket No. CV-13-161, (York County Superior Court). This is a breach of contract claim, whereby Plaintiff has alleged that SiteStar has failed to pay the amounts owed on a Promissory Note. SiteStar has filed a counterclaim for damages for overpayments and breach of contract associated with Plaintiff’s misrepresentation of the customer lists and was shorted revenues associated the number of customers contracted for. Plaintiff seeks monetary damages in the amount of $900,615. Litigation is currently in the discovery phase of litigation. The parties have exchanged documents but have not yet taken depositions. SiteStar is currently contesting the Litigation. A mediation hearing in the matter took place on April 25, 2014, as required by the Maine Rules of Civil Procedure, however, no ruling has yet been issued. The estimate of the upper limit of a potential loss is $900,615 which has been accrued. Management is vigorously defending this claim.

1_BASIS_OF_PRESENTATION_AND_SI1

1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
Basis of Presentation	'
	Basis of Presentation
	The unaudited condensed consolidated financial statements have been prepared by SiteStar Corporation (the “Company” or “SiteStar”), pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) have been omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K.  The results for the six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the full year ending December 31, 2014.
Significant Accounting Policies	'
	Significant Accounting Policies
	See the Notes to Consolidated Financial Statements in the Company’s 2013 Annual Report on Form 10-K.
Recently Issued Accounting Pronouncements	'
	Recently Issued Accounting Pronouncements
	No new accounting pronouncement issued or effective during this fiscal quarter has had or is expected to have a material impact on the consolidated financial statements.
Income Per Share	'
	Income Per Share
	The basic income per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding.  Diluted income per common share is computed similar to basic income per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The Company has no potentially dilutive securities.  The following table represents the calculations of basic and diluted income per share:
	For the three months ended June 30, 2014 and 2013:
		2014		2013
	Net income available to common shareholders	$	78,293	$	21,638
	Weighted average number of common shares		74,085,705		74,085,705
	Basic and diluted income per share	$	0	$	0
	For the six months ended June 30, 2014 and 2013:
		2014		2013
	Net income available to common shareholders	$	130,475	$	103,460
	Weighted average number of common shares		74,085,705		74,085,705
	Basic and diluted income per share	$	0	$	0

1_BASIS_OF_PRESENTATION_AND_SI2

1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
Income Per Share	'
		2014		2013
	Net income available to common shareholders	$	78,293	$	21,638
	Weighted average number of common shares		74,085,705		74,085,705
	Basic and diluted income per share	$	0	$	0
	For the six months ended June 30, 2014 and 2013:
		2014		2013
	Net income available to common shareholders	$	130,475	$	103,460
	Weighted average number of common shares		74,085,705		74,085,705
	Basic and diluted income per share	$	0	$	0

3_SEGMENT_INFORMATION_Tables

3. SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2014
Segment Reporting [Abstract]	'
Segment Information	'
		Corporate			Real estate		Internet		Consolidated
	Revenue	$	—		$	31,820	$	499,618	$	531,438
	Operating income (loss)	$	(33,679	)	$	17,673	$	136,149	$	153,823
	Depreciation and amortization	$	—		$	—	$	5,553	$	5,553
	Interest expense	$	—		$	—	$	1,201	$	1,201
	Real estate	$	—		$	3,391,165	$	—	$	3,391,165
	Intangible assets	$	—		$	—	$	1,166,494	$	1,166,494
	Total assets	$	—		$	3,391,165	$	1,791,792	$	5,182,957
	30-Jun-13
		Corporate			Real estate		Internet		Consolidated
	Revenue	$	—		$	15,122	$	594,274	$	609,396
	Operating income (loss)	$	(50,990	)	$	15,122	$	74,157	$	38,289
	Depreciation and amortization	$	—		$	—	$	1,488	$	1,488
	Interest expense	$	—		$	—	$	1,141	$	1,141
	Real estate	$	—		$	3,124,514	$	—	$	3,124,514
	Intangible assets	$	—		$	—	$	1,288,809	$	1,288,809
	Total assets	$	—		$	3,124,514	$	1,933,919	$	5,058,433
	Summarized financial information concerning the Company's reportable segments is shown in the following tables for the six months ended June 30, 2014 and 2013:
	30-Jun-14
		Corporate			Real estate		Internet		Consolidated
	Revenue	$	—		$	191,708	$	1,018,854	$	1,210,562
	Operating income (loss)	$	(93,678	)	$	31,769	$	268,491	$	206,582
	Depreciation and amortization	$	—		$	—	$	10,831	$	10,831
	Interest expense	$	—		$	—	$	2,365	$	2,365
	Real estate	$	—		$	3,391,165	$	—	$	3,391,165
	Intangible assets	$	—		$	—	$	1,166,494	$	1,166,494
	Total assets	$	—		$	3,391,165	$	1,791,792	$	5,182,957
	30-Jun-13
		Corporate			Real estate		Internet		Consolidated
	Revenue	$	—		$	30,992	$	1,265,375	$	1,296,367
	Operating income (loss)	$	(88,115	)	$	27,916	$	228,764	$	168,565
	Depreciation and amortization	$	—		$	—	$	8,431	$	8,431
	Interest expense	$	—		$	—	$	2,471	$	2,471
	Real estate	$	—		$	3,124,514	$	—	$	3,124,514
	Intangible assets	$	—		$	—	$	1,288,809	$	1,288,809
	Total assets	$	—		$	3,124,514	$	1,933,919	$	5,058,433

4_NOTES_PAYABLE_Tables

4. NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2014
Debt Disclosure [Abstract]	'
Notes Payable	'
		2014		2013
	Non-interest bearing amount due on acquisition of USA Telephone customers per contract payable in thirty six monthly installments starting January 2008.	$	900,615	$	900,615

1_BASIS_OF_PRESENTATION_AND_SI3

1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Income Per Share (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Accounting Policies [Abstract]	'	'	'	'
Net income available to common shareholders	$78,293	$21,638	$130,475	$103,460
Weighted average number of common shares	74,085,705	74,085,705	74,085,705	74,085,705
Basic and diluted income per share	$0	$0	$0	$0

3_SEGMENT_INFORMATION_Segment_

3. SEGMENT INFORMATION - Segment Information (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Interest expense	$1,201	$1,141	$2,365	$2,471
Real estate	31,820	15,122	191,708	30,992
Corporate	'	'	'	'
Revenue	'	'	'	'
Operating income (loss)	-33,679	-50,990	-93,678	-88,115
Depreciation and amortization	'	'	'	'
Interest expense	'	'	'	'
Real estate	'	'	'	'
Intangible assets	'	'	'	'
Total assets	'	'	'	'
Real Estate	'	'	'	'
Revenue	31,820	15,122	191,708	30,992
Operating income (loss)	17,673	15,122	31,769	27,916
Depreciation and amortization	5,553	'	10,831	'
Interest expense	'	'	'	'
Real estate	3,391,165	3,124,514	3,391,165	3,124,514
Intangible assets	'	'	'	'
Total assets	3,391,165	3,124,514	3,391,165	3,124,514
Internet	'	'	'	'
Revenue	499,618	594,274	1,018,854	1,265,375
Operating income (loss)	136,149	74,157	268,491	228,764
Depreciation and amortization	'	1,488	'	8,431
Interest expense	1,201	1,141	2,365	2,471
Real estate	'	'	'	'
Intangible assets	1,166,494	1,288,809	1,166,494	1,288,809
Total assets	1,791,792	1,933,919	1,791,792	1,933,919
Consolidated	'	'	'	'
Revenue	531,438	609,396	1,210,562	1,296,367
Operating income (loss)	153,823	38,289	206,582	168,565
Depreciation and amortization	5,553	1,488	10,831	8,431
Interest expense	1,201	1,141	2,365	2,471
Real estate	3,391,165	3,124,514	3,391,165	3,124,514
Intangible assets	1,166,494	1,288,809	1,166,494	1,288,809
Total assets	$5,182,957	$5,058,433	$5,182,957	$5,058,433

4_NOTES_PAYABLE_Notes_Payable_

4. NOTES PAYABLE - Notes Payable (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]	'	'
Non-interest bearing amount due on acquisition of USA Telephone customers per contract payable in thirty six monthly installments starting January 2008.	$900,615	$900,615

4_NOTES_PAYABLE_Details_Narrat

4. NOTES PAYABLE (Details Narrative) (USD $)	Jun. 30, 2014
Debt Disclosure [Abstract]	'
Estimated Upper Limit of a Potential Loss	$900,615