Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 15-May-15 | |
Document And Entity Information | ||
Entity Registrant Name | SITESTAR CORP | |
Entity Central Index Key | 1096934 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
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 | Q1 | |
Document Fiscal Year Focus | 2015 |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Real estate - held-for-resale | $2,335,410 | $2,293,061 |
Real estate - held for investment, net | 1,276,968 | 1,107,402 |
Cash and cash equivalents | 124,864 | 369,694 |
Accounts receivable, net | 15,305 | 21,811 |
Prepaid expenses | 1,340 | 1,340 |
Property, plant and equipment, net | 146,314 | 146,314 |
Goodwill, net | 1,166,494 | 1,166,494 |
Other assets | 200,052 | 200,056 |
Total assets | 5,266,747 | 5,306,172 |
LIABILITIES | ||
Accounts payable | 31,664 | 14,963 |
Accrued expenses | 32,437 | 34,315 |
Deferred revenue | 284,151 | 273,440 |
Notes payable | 900,615 | 900,615 |
Total liabilities | 1,248,867 | 1,223,333 |
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 in 2014 and 2013 and 74,085,705 shares outstanding in 2014 and 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 | -9,164,875 | -9,099,916 |
Total stockholders equity | 4,017,880 | 4,082,839 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,266,747 | $5,306,172 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | |
Mar. 31, 2015 | Mar. 31, 2014 | |
REVENUE | ||
Internet | $418,974 | $519,235 |
Real estate | 37,975 | 159,889 |
Revenue | 456,949 | 679,124 |
COST OF REVENUE | ||
Internet | 154,129 | 198,776 |
Real estate | 15,790 | 138,680 |
Cost of Revenue | 169,919 | 337,456 |
GROSS PROFIT | 287,030 | 341,668 |
OPERATING EXPENSES: | ||
Selling general and administrative expenses | 350,067 | 288,908 |
INCOME (LOSS) FROM OPERATIONS | -63,037 | 52,760 |
OTHER INCOME (EXPENSES): | ||
Other income | -1,922 | 586 |
Interest expense | -1,164 | |
TOTAL OTHER INCOME (EXPENSES) | -1,922 | -578 |
INCOME (LOSS) BEFORE INCOME TAXES | -64,959 | 52,182 |
INCOME TAX EXPENSE | ||
NET INCOME (LOSS) | ($64,959) | $52,182 |
BASIC AND DILUTED INCOME PER SHARE | $0 | $0 |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED | 74,085,705 | 74,085,705 |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | ($64,959) | $52,182 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation, amortization and impairment | 8,512 | 5,278 |
Allowance for doubtful accounts | -356 | -2,223 |
(Increase) decrease in accounts receivable | 6,866 | 13,575 |
(Increase) decrease in prepaid expenses | 47 | |
(Increase) decrease in real estate held for investment | -42,349 | -54,209 |
(Increase) decrease in real estate held for resale | -178,078 | |
Decrease in accounts payable | 16,701 | 16,407 |
Increase (decrease) in accrued expenses | -1,878 | 1,391 |
Decrease in deferred revenue | 10,711 | 4,807 |
Net cash provided by (used in) operating activities | -244,830 | 37,255 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
(Increase) decrease in other assets held for resale | ||
Net cash provided by (used in) investing activities | ||
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 | -244,830 | 37,255 |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 369,694 | 118,469 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 124,864 | 155,724 |
Supplemental Disclosures of Cash Flow Information | ||
Income Taxes Paid | 0 | 0 |
Interest Expense Paid | $0 | $1,164 |
1_BASIS_OF_PRESENTATION_AND_SI
1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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, 2014 included in the Company’s Annual Report on Form 10-K. The results for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the full year ending December 31, 2015. | |||||||||
Significant Accounting Policies | |||||||||
See the Notes to Consolidated Financial Statements in the Company’s 2014 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 March 31, 2015 and 2014: | |||||||||
2015 | 2014 | ||||||||
Net income (loss) available to common shareholders | $ | (64,959 | ) | $ | 52,182 | ||||
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 | 3 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
2. COMMON STOCK | NOTE 2 – COMMON STOCK |
During the three months ended March 31, 2015 and 2014, the Company issued no shares of common stock and repurchased no treasury shares. |
3_SEGMENT_INFORMATION
3. SEGMENT INFORMATION | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 operations 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. | |||||||||||||||||
SITESTAR CORPORATION | |||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||
UNAUDITED | |||||||||||||||||
Summarized financial information concerning the Company's reportable segments is shown in the following tables for the three months ended March 31, 2015 and 2014: | |||||||||||||||||
31-Mar-15 | |||||||||||||||||
Corporate | Real estate | Internet | Consolidated | ||||||||||||||
Revenue | $ | — | $ | 37,975 | $ | 418,974 | $ | 456,949 | |||||||||
Operating income (loss) | $ | (199,154 | ) | $ | 22,185 | $ | 113,932 | $ | (63,037 | ) | |||||||
Depreciation and amortization | $ | — | $ | 8,512 | $ | — | $ | 8,512 | |||||||||
Interest expense | $ | — | $ | — | $ | — | $ | — | |||||||||
Real estate | $ | — | $ | 3,612,378 | $ | — | $ | 36,120,378 | |||||||||
Intangible assets | $ | — | $ | — | $ | 1,166,494 | $ | 1,166,494 | |||||||||
Total assets | $ | — | $ | 3,612,378 | $ | 1,684,369 | $ | 5,296,747 | |||||||||
31-Mar-14 | |||||||||||||||||
Corporate | Real estate | Internet | Consolidated | ||||||||||||||
Revenue | $ | — | $ | 159,889 | $ | 519,235 | $ | 679,124 | |||||||||
Operating income (loss) | $ | (59,999 | ) | $ | 12,794 | $ | 98,664 | $ | 52,760 | ||||||||
Depreciation and amortization | $ | — | $ | — | $ | 5,278 | $ | 5,278 | |||||||||
Interest expense | $ | — | $ | — | $ | 1,164 | $ | 1,164 | |||||||||
Real estate | $ | — | $ | 3,292,537 | $ | — | $ | 3,292,537 | |||||||||
Intangible assets | $ | — | $ | — | $ | 1,166,494 | $ | 1,166,494 | |||||||||
Total assets | $ | — | $ | 3,292,537 | $ | 1,785,495 | $ | 5,078,032 | |||||||||
4_NOTES_PAYABLE
4. NOTES PAYABLE | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
4. NOTES PAYABLE | NOTE 4 - NOTES PAYABLE | ||||||||
This USA Telephone note payable is due and is currently in litigation. At March 31, 2015, and December 31, 2014, the balance consist of the following: | |||||||||
2015 | 2014 | ||||||||
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. A judicial settlement conference is tentatively to be scheduled for some time in June. Management is vigorously defending this claim. |
1_BASIS_OF_PRESENTATION_AND_SI1
1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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, 2014 included in the Company’s Annual Report on Form 10-K. The results for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the full year ending December 31, 2015. | |||||||||
Significant Accounting Policies | Significant Accounting Policies | ||||||||
See the Notes to Consolidated Financial Statements in the Company’s 2014 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 March 31, 2015 and 2014: | |||||||||
2015 | 2014 | ||||||||
Net income (loss) available to common shareholders | $ | (64,959 | ) | $ | 52,182 | ||||
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) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Income Per Share | 2015 | 2014 | |||||||
Net income (loss) available to common shareholders | $ | (64,959 | ) | $ | 52,182 | ||||
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) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Information | Corporate | Real estate | Internet | Consolidated | |||||||||||||
Revenue | $ | — | $ | 37,975 | $ | 418,974 | $ | 456,949 | |||||||||
Operating income (loss) | $ | (199,154 | ) | $ | 22,185 | $ | 113,932 | $ | (63,037 | ) | |||||||
Depreciation and amortization | $ | — | $ | 8,512 | $ | — | $ | 8,512 | |||||||||
Interest expense | $ | — | $ | — | $ | — | $ | — | |||||||||
Real estate | $ | — | $ | 3,612,378 | $ | — | $ | 36,120,378 | |||||||||
Intangible assets | $ | — | $ | — | $ | 1,166,494 | $ | 1,166,494 | |||||||||
Total assets | $ | — | $ | 3,612,378 | $ | 1,684,369 | $ | 5,296,747 | |||||||||
31-Mar-14 | |||||||||||||||||
Corporate | Real estate | Internet | Consolidated | ||||||||||||||
Revenue | $ | — | $ | 159,889 | $ | 519,235 | $ | 679,124 | |||||||||
Operating income (loss) | $ | (59,999 | ) | $ | 12,794 | $ | 98,664 | $ | 52,760 | ||||||||
Depreciation and amortization | $ | — | $ | — | $ | 5,278 | $ | 5,278 | |||||||||
Interest expense | $ | — | $ | — | $ | 1,164 | $ | 1,164 | |||||||||
Real estate | $ | — | $ | 3,292,537 | $ | — | $ | 3,292,537 | |||||||||
Intangible assets | $ | — | $ | — | $ | 1,166,494 | $ | 1,166,494 | |||||||||
Total assets | $ | — | $ | 3,292,537 | $ | 1,785,495 | $ | 5,078,032 |
4_NOTES_PAYABLE_Tables
4. NOTES PAYABLE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Notes Payable | 2015 | 2014 | |||||||
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 | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Accounting Policies [Abstract] | ||
Net income (loss) available to common shareholders | ($64,959) | $52,182 |
Weighted average number of common shares | 74,085,705 | 74,085,705 |
Basic and diluted income per share | $0 | $0 |
3_SEGMENT_INFORMATION_Segment_
3. SEGMENT INFORMATION - Segment Information (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Interest expense | $1,164 | |
Corporate | ||
Revenue | ||
Operating income (loss) | -199,154 | -59,999 |
Depreciation and amortization | ||
Interest expense | ||
Real estate | ||
Intangible assets | ||
Total assets | ||
Real Estate | ||
Revenue | 37,975 | 159,889 |
Operating income (loss) | 22,185 | 12,794 |
Depreciation and amortization | 8,512 | |
Interest expense | ||
Real estate | 3,612,378 | 3,292,537 |
Intangible assets | ||
Total assets | 3,612,378 | 3,292,537 |
Internet | ||
Revenue | 418,974 | 519,235 |
Operating income (loss) | 113,932 | 98,664 |
Depreciation and amortization | 5,278 | |
Interest expense | 1,164 | |
Real estate | ||
Intangible assets | 1,166,494 | 1,166,494 |
Total assets | 1,684,369 | 1,785,495 |
Consolidated | ||
Revenue | 456,949 | 679,124 |
Operating income (loss) | -63,037 | 52,760 |
Depreciation and amortization | 8,512 | 5,278 |
Interest expense | 1,164 | |
Real estate | 36,120,378 | 3,292,537 |
Intangible assets | 1,166,494 | 1,166,494 |
Total assets | $5,296,747 | $5,078,032 |
4_NOTES_PAYABLE_Notes_Payable_
4. NOTES PAYABLE - Notes Payable (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [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 $) | Mar. 31, 2015 |
Payables and Accruals [Abstract] | |
Potential Litigation Loss | $900,615 |