Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 07, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'QUOTEMEDIA INC | ' |
Entity Central Index Key | '0001101433 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-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 | ' | 90,444,162 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Current assets: | ' | ' |
Cash | $526,864 | $425,899 |
Accounts receivable, net of allowance for doubtful accounts of $90,000 and $200,000 at September 30, 2014 and December 31, 2013, respectively | 446,596 | 538,995 |
Prepaid expenses | 43,526 | 42,017 |
Other current assets | 30,271 | 305,603 |
Total current assets | 1,047,257 | 1,312,514 |
Deposits | 20,140 | 20,962 |
Property and equipment, net | 1,471,882 | 1,377,625 |
Goodwill | 110,000 | 110,000 |
Intangible assets | 83,952 | 88,405 |
Total assets | 2,733,231 | 2,909,506 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 1,306,409 | 1,258,374 |
Deferred revenue | 599,999 | 543,507 |
Total current liabilities | 1,906,408 | 1,801,881 |
Long-term portion of amounts due to related parties | 8,164,207 | 7,380,675 |
Stockholders' deficit: | ' | ' |
Preferred stock, nondesignated, 10,000,000 shares authorized, none issued | ' | ' |
Common stock, $0.001 par value,150,000,000 shares authorized, 90,444,162 and 90,444,162 shares issued and outstanding | 90,445 | 90,445 |
Additional paid-in capital | 8,940,381 | 8,930,743 |
Accumulated deficit | -16,368,210 | -15,294,238 |
Total stockholders' deficit | -7,337,384 | -6,273,050 |
Total liabilities and stockholders' deficit | $2,733,231 | $2,909,506 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Current assets: | ' | ' |
Accounts receivable | $90,000 | $200,000 |
Stockholders' deficit: | ' | ' |
Preferred stock nondesignated, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock nondesignated, shares issued | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 90,444,162 | 90,444,162 |
Common stock, shares outstanding | 90,444,162 | 90,444,162 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Condensed Consolidated Statements Of Operations | ' | ' | ' | ' |
Revenue | $2,292,698 | $2,395,733 | $6,795,721 | $7,160,432 |
COST OF REVENUE | 1,280,244 | 1,298,590 | 3,793,020 | 3,904,274 |
GROSS PROFIT | 1,012,454 | 1,097,143 | 3,002,701 | 3,256,158 |
OPERATING EXPENSES | ' | ' | ' | ' |
Sales and marketing | 390,343 | 415,270 | 1,211,203 | 1,241,560 |
General and administrative | 471,243 | 493,039 | 1,529,605 | 1,545,308 |
Software development | 250,612 | 233,133 | 793,784 | 832,446 |
Total operating expenses | 1,112,198 | 1,141,442 | 3,534,592 | 3,619,314 |
OPERATING LOSS | -99,744 | -44,299 | -531,891 | -363,156 |
OTHER INCOME AND (EXPENSE) | ' | ' | ' | ' |
Foreign exchange gain (loss) | 58,995 | -17,901 | 36,410 | 31,834 |
Interest expense (related party) | -198,903 | -175,381 | -575,748 | -510,693 |
Total other income and (expense) | -139,908 | -193,282 | -539,338 | -478,859 |
LOSS BEFORE INCOME TAXES | -239,652 | -237,581 | -1,071,229 | -842,015 |
Provision for income taxes | -919 | -961 | -2,743 | -2,930 |
NET LOSS | ($240,571) | ($238,542) | ($1,073,972) | ($844,945) |
Basic and diluted loss per share | $0 | $0 | ($0.01) | ($0.01) |
WEIGHTED AVERAGE SHARES OUTSTANDING | ' | ' | ' | ' |
Basic and diluted | 90,444,162 | 90,039,311 | 90,444,162 | 89,596,430 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Operating activities: | ' | ' |
Net loss | ($1,073,972) | ($844,945) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 636,407 | 601,513 |
Bad debt expense | 23,988 | 152,461 |
Stock-based compensation expense | 9,638 | 7,281 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 68,411 | -95,972 |
Prepaid expenses | -1,509 | 18,728 |
Other current assets | 275,332 | -33,078 |
Deposits | 822 | 688 |
Accounts payable and amounts due to related parties | 831,567 | 581,914 |
Deferred revenue | 56,492 | 79,740 |
Net cash provided by operating activities | 827,176 | 468,330 |
Investing activities: | ' | ' |
Purchase of fixed assets | -100,511 | -73,136 |
Purchase of intangible assets | ' | -2,380 |
Capitalized application software | -625,700 | -603,496 |
Net cash used in investing activities | -726,211 | -679,012 |
Net increase (decrease) in cash | 100,965 | -210,682 |
Cash and equivalents, beginning of period | 425,899 | 658,100 |
Cash and equivalents, end of period | $526,864 | $447,418 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2014 | |
Notes to Financial Statements | ' |
Note 1. BASIS OF PRESENTATION | ' |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the generally accepted accounting principles for interim financial statements and instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for a full year. In connection with the preparation of the condensed financial statements, the Company evaluated subsequent events after the balance sheet date of September 30, 2014 through the filing of this report. | |
These financial statements should be read in conjunction with our financial statements and the notes thereto for the fiscal year ended December 31, 2013 contained in our Form 10-K filed with the Securities and Exchange Commission dated March 28, 2014. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2014 | |
Notes to Financial Statements | ' |
Note 2. SIGNIFICANT ACCOUNTING POLICIES | ' |
a) Nature of operations | |
We are a software developer and distributor of financial market data and related services to a global marketplace. We specialize in the collection, aggregation, and delivery of both delayed and real-time financial data content via the Internet. We develop and license software components that deliver dynamic content to banks, brokerage firms, financial institutions, mutual fund companies, online information and financial portals, media outlets, public companies, and corporate intranets. | |
b) Basis of consolidation | |
The consolidated financial statements include the operations of Quotemedia, Ltd., a wholly owned subsidiary of Quotemedia, Inc. All intercompany transactions and balances have been eliminated. | |
c) Foreign currency translation and transactions | |
The U.S. dollar is the functional currency of all our company's operations. Foreign currency asset and liability amounts are remeasured into U.S. dollars at end-of-period exchange rates, except for equipment and intangible assets, which are remeasured at historical rates. Foreign currency income and expenses are remeasured at average exchange rates in effect during the period, except for expenses related to balance sheet amounts remeasured at historical exchange rates. Exchange gains and losses arising from remeasurement of foreign currency-denominated monetary assets and liabilities are included in income in the period in which they occur. | |
d) Accounting Pronouncements | |
New Accounting Standards | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The standard is effective for public entities for annual and interim periods beginning after December 15, 2016. Early adoption is not permitted. The Company is currently evaluating the impact that this guidance will have on our consolidated financial position, results of operations and related disclosures. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718), which makes amendments to the codification topic 718, Accounting for Share-Based Payments, when the terms of an award provide that a performance target could be achieved after the requisite service period. The new accounting standards update becomes effective for the Company on January 1, 2016. The Company does not expect that this guidance will have an impact on its financial position, results of operations or cash flows as the Company does not currently have any outstanding awards with a performance target that could be achieved after the requisite service period. | |
In August 2014, the FASB issued ASU No. 2014-15, Disclosures of Uncertainties About an Entity's Ability to Continue as a Going Concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on our consolidated financial position, results of operations and related disclosures. | |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||
Note 3. FINANCIAL INSTRUMENTS | ' | ||||||||||||||||
a) Fair value of financial instruments | |||||||||||||||||
FASB ASC 820, Fair Value Measurements and Disclosures establishes three levels of inputs that may be used to measure fair value: quoted prices in active markets for identical assets or liabilities (referred to as Level 1), observable inputs other than Level 1 that are observable for the asset or liability either directly or indirectly (referred to as Level 2), and unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities (referred to as Level 3). | |||||||||||||||||
From time to time we utilize forward contracts that are measured at fair market value on a recurring basis based on Level 2 inputs. The fair market values for forward contracts at September 30, 2014 and December 31, 2013 were liabilities of $4,400 and $6,535, respectively, and were included in accrued liabilities. | |||||||||||||||||
b) Derivative instruments | |||||||||||||||||
A significant portion of our expenses are paid in Canadian dollars; therefore, changes to the exchange rate between the U.S. and Canadian dollar affect our operating results. To manage this exchange rate risk, from time to time we utilize forward contracts to purchase Canadian dollars. Our Company policy limits contracts to maturities of one year or less from the date of issuance. We do not enter into foreign exchange forward contracts for trading purposes. | |||||||||||||||||
We account for derivatives and hedging activities in accordance with FASB ASC 815, Derivatives and Hedging, which requires that all derivative instruments be recorded on the balance sheet at their respective fair values. The accounting for changes in the fair value of a derivative instrument is dependent upon whether the derivative has been designated and qualifies as part of a hedging relationship and on the type of hedging relationship. | |||||||||||||||||
We have chosen not to elect hedge accounting for these forward contracts; therefore, changes in fair value for these instruments are immediately recognized in earnings and included in our foreign exchange gain (loss). The fluctuations in the value of these forward contracts do, however, generally offset the impact of changes in the value of the underlying risk that they are intended to economically hedge. | |||||||||||||||||
The following table provides gross notional value of foreign currency derivative financial instruments and the related net asset or liability. The table presents the notional amount (at contract exchange rates) and the fair value of the derivatives in U.S. dollars: | |||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||
Notional | Net Asset | Notional | Net Asset | ||||||||||||||
Amount | (Liability) | Amount | (Liability) | ||||||||||||||
Forward contracts | $ | 200,000 | $ | (4,400 | ) | $ | 300,000 | $ | (6,535 | ) | |||||||
We are required to maintain a margin deposit with a foreign exchange corporation based on the value of the forward contracts outstanding. Margin deposits totaling $11,000 and $16,900 are included in other current assets on our September 30, 2014 and December 31, 2013 balance sheets, respectively. |
RELATED_PARTIES
RELATED PARTIES | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Note 4. RELATED PARTIES | ' | ||||||||
The following table summarizes amounts due to related parties at September 30, 2014 and December 31, 2013: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Purchase of business unit | $ | 175,350 | $ | 182,910 | |||||
Computer hosting services | 33,806 | 13,931 | |||||||
Office rent | 1,027,672 | 995,215 | |||||||
Other | 17,276 | 17,276 | |||||||
Loan | 841,078 | 790,983 | |||||||
Lead generation services | 1,132,212 | 1,050,729 | |||||||
Due to Management | 4,936,813 | 4,329,631 | |||||||
$ | 8,164,207 | $ | 7,380,675 | ||||||
As a matter of policy, all related party transactions are subject to review and approval by the Company’s Board of Directors. All repayments of amounts due to related parties must be approved by our Board of Directors. Repayments are subject to our company having sufficient cash on hand and are intended not to impair continuing business operations. All amounts due to related parties have been classified as non-current liabilities as we do not expect to make any repayments within a year of the September 30, 2014 balance sheet date. Our related party creditors have agreed to these repayment terms. | |||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||||||||
Note 5. STOCK-BASED COMPENSATION | ' | ||||||||||||||||||||||
FASB ASC 718, Stock Compensation requires all share-based payments to employees, including grants of employee stock options, to be recognized as compensation expense over the service period (generally the vesting period) in the consolidated financial statements based on their fair values. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount recognized. | |||||||||||||||||||||||
Total estimated stock-based compensation expense, related to all of the Company’s stock-based awards, recognized for the three and nine months ended September 30, 2014 and 2013 was comprised as follows: | |||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Sales and marketing | $ | 1,899 | $ | 426 | $ | 3,635 | $ | 1,278 | |||||||||||||||
General and administrative | 2,001 | 2,001 | 6,003 | 6,003 | |||||||||||||||||||
Total stock-based compensation | $ | 3,900 | $ | 2,427 | $ | 9,638 | $ | 7,281 | |||||||||||||||
At September 30, 2014 there was $28,006 of unrecognized compensation cost related to non-vested share-based payments which is expected to be recognized over a weighted-average period of 1.57 years. | |||||||||||||||||||||||
We calculate the fair value of stock options and warrants granted under the provisions of FASB ASC 718 using the Black-Scholes valuation model with the following assumptions: | |||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Expected dividend yield | N/A | N/A | - | N/A | |||||||||||||||||||
Expected stock price volatility | N/A | N/A | 206 | % | N/A | ||||||||||||||||||
Risk-free interest rate | N/A | N/A | 4 | % | N/A | ||||||||||||||||||
Expected life of options | N/A | N/A | 5.86 | N/A | |||||||||||||||||||
Weighted average fair value of options and warrants granted | N/A | N/A | $ | 0.03 | N/A | ||||||||||||||||||
The following table represents stock option and warrant activity for the nine months ended September 30, 2014: | |||||||||||||||||||||||
Weighted- | |||||||||||||||||||||||
Options and | Average | ||||||||||||||||||||||
Warrants | Exercise Price | ||||||||||||||||||||||
Outstanding at December 31, 2013 | 12,027,803 | $ | 0.05 | ||||||||||||||||||||
Stock options granted | 350,000 | $ | 0.03 | ||||||||||||||||||||
Outstanding at September 30, 2014 | 12,377,803 | $ | 0.05 | ||||||||||||||||||||
The following table summarizes our non-vested stock option and warrant activity for the nine months ended September 30, 2014: | |||||||||||||||||||||||
Weighted- | |||||||||||||||||||||||
Options and | Average Grant | ||||||||||||||||||||||
Warrants | Date Fair Value | ||||||||||||||||||||||
Non-vested stock options and warrants at | |||||||||||||||||||||||
31-Dec-13 | 375,551 | $ | 0.04 | ||||||||||||||||||||
Stock options granted | 350,000 | $ | 0.03 | ||||||||||||||||||||
Vested during the period | (329,179 | ) | $ | 0.04 | |||||||||||||||||||
Non-vested stock options and warrants at | |||||||||||||||||||||||
30-Sep-14 | 396,372 | $ | 0.04 | ||||||||||||||||||||
Options and Warrants | |||||||||||||||||||||||
Options and Warrants Outstanding | Exercisable | ||||||||||||||||||||||
Weighted | |||||||||||||||||||||||
Number | Average | Weighted | Number | Weighted | |||||||||||||||||||
Outstanding at | Remaining | Average | Exercisable at | Average | |||||||||||||||||||
September 30, | Contractual | Exercise | September 30, | Exercise | |||||||||||||||||||
2014 | Life | Price | 2014 | Price | |||||||||||||||||||
$ | 0.03-0.10 | 11,877,803 | 1.62 | $ | 0.04 | 11,481,431 | $ | 0.04 | |||||||||||||||
$ | 0.11-0.40 | 500,000 | 0.13 | $ | 0.4 | 500,000 | $ | 0.4 | |||||||||||||||
As at September 30, 2014 all stock options and warrants have been granted with exercise prices equal to or greater than the market value of the underlying common shares on the date of grant. | |||||||||||||||||||||||
The options and warrants outstanding and exercisable at September 30, 2014 had no intrinsic value. The intrinsic value of stock options and warrants are calculated as the amount by which the market price of our common stock exceeds the exercise price of the option or warrant. |
LOSS_PER_SHARE
LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2014 | |
Notes to Financial Statements | ' |
Note 6. LOSS PER SHARE | ' |
The basic and diluted net loss per share was $(0.00) and $(0.00) per share for the three months ended September 30, 2014 and 2013, respectively. The basic and diluted net loss per share was $(0.01) and $(0.01) per share for the nine months ended September 30, 2014 and 2013, respectively. There were 12,377,803 stock options and warrants excluded from the calculation of dilutive loss per share for the three and nine months ended September 30, 2014, because they were anti-dilutive. There were 13,727,803 stock options and warrants excluded from the calculation of dilutive loss per share for the comparative three and nine months ended September 30, 2013, because they were anti-dilutive. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Significant Accounting Policies Policies | ' |
Nature of operations | ' |
We are a software developer and distributor of financial market data and related services to a global marketplace. We specialize in the collection, aggregation, and delivery of both delayed and real-time financial data content via the Internet. We develop and license software components that deliver dynamic content to banks, brokerage firms, financial institutions, mutual fund companies, online information and financial portals, media outlets, public companies, and corporate intranets. | |
Basis of consolidation | ' |
The consolidated financial statements include the operations of Quotemedia, Ltd., a wholly owned subsidiary of Quotemedia, Inc. All intercompany transactions and balances have been eliminated. | |
Foreign currency translation and transactions | ' |
The U.S. dollar is the functional currency of all our company's operations. Foreign currency asset and liability amounts are remeasured into U.S. dollars at end-of-period exchange rates, except for equipment and intangible assets, which are remeasured at historical rates. Foreign currency income and expenses are remeasured at average exchange rates in effect during the period, except for expenses related to balance sheet amounts remeasured at historical exchange rates. Exchange gains and losses arising from remeasurement of foreign currency-denominated monetary assets and liabilities are included in income in the period in which they occur. | |
Accounting Pronouncements | ' |
New Accounting Standards | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The standard is effective for public entities for annual and interim periods beginning after December 15, 2016. Early adoption is not permitted. The Company is currently evaluating the impact that this guidance will have on our consolidated financial position, results of operations and related disclosures. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718), which makes amendments to the codification topic 718, Accounting for Share-Based Payments, when the terms of an award provide that a performance target could be achieved after the requisite service period. The new accounting standards update becomes effective for the Company on January 1, 2016. The Company does not expect that this guidance will have an impact on its financial position, results of operations or cash flows as the Company does not currently have any outstanding awards with a performance target that could be achieved after the requisite service period. | |
In August 2014, the FASB issued ASU No. 2014-15, Disclosures of Uncertainties About an Entity's Ability to Continue as a Going Concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on our consolidated financial position, results of operations and related disclosures. |
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Financial Instruments Tables | ' | ||||||||||||||||
Notional amount (at contract exchange rates) and the fair value of the derivatives | ' | ||||||||||||||||
The following table provides gross notional value of foreign currency derivative financial instruments and the related net asset or liability. The table presents the notional amount (at contract exchange rates) and the fair value of the derivatives in U.S. dollars: | |||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||
Notional | Net Asset | Notional | Net Asset | ||||||||||||||
Amount | (Liability) | Amount | (Liability) | ||||||||||||||
Forward contracts | $ | 200,000 | $ | (4,400 | ) | $ | 300,000 | $ | (6,535 | ) |
RELATED_PARTIES_Tables
RELATED PARTIES (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Related Parties Tables | ' | ||||||||
Amounts due to related parties | ' | ||||||||
The following table summarizes amounts due to related parties at September 30, 2014 and December 31, 2013: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Purchase of business unit | $ | 175,350 | $ | 182,910 | |||||
Computer hosting services | 33,806 | 13,931 | |||||||
Office rent | 1,027,672 | 995,215 | |||||||
Other | 17,276 | 17,276 | |||||||
Loan | 841,078 | 790,983 | |||||||
Lead generation services | 1,132,212 | 1,050,729 | |||||||
Due to Management | 4,936,813 | 4,329,631 | |||||||
$ | 8,164,207 | $ | 7,380,675 |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Stock-Based Compensation Tables | ' | ||||||||||||||||||||||
Estimated stock-based compensation expense, related to stock-based awards, recognized | ' | ||||||||||||||||||||||
Total estimated stock-based compensation expense, related to all of the Company’s stock-based awards, recognized for the three and nine months ended September 30, 2014 and 2013 was comprised as follows: | |||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Sales and marketing | $ | 1,899 | $ | 426 | $ | 3,635 | $ | 1,278 | |||||||||||||||
General and administrative | 2,001 | 2,001 | 6,003 | 6,003 | |||||||||||||||||||
Total stock-based compensation | $ | 3,900 | $ | 2,427 | $ | 9,638 | $ | 7,281 | |||||||||||||||
Fair value of stock options and warrants granted under the provisions | ' | ||||||||||||||||||||||
We calculate the fair value of stock options and warrants granted under the provisions of FASB ASC 718 using the Black-Scholes valuation model with the following assumptions: | |||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Expected dividend yield | N/A | N/A | - | N/A | |||||||||||||||||||
Expected stock price volatility | N/A | N/A | 206 | % | N/A | ||||||||||||||||||
Risk-free interest rate | N/A | N/A | 4 | % | N/A | ||||||||||||||||||
Expected life of options | N/A | N/A | 5.86 | N/A | |||||||||||||||||||
Weighted average fair value of options and warrants granted | N/A | N/A | $ | 0.03 | N/A | ||||||||||||||||||
Stock option and warrant activity | ' | ||||||||||||||||||||||
The following table represents stock option and warrant activity for the nine months ended September 30, 2014: | |||||||||||||||||||||||
Weighted- | |||||||||||||||||||||||
Options and | Average | ||||||||||||||||||||||
Warrants | Exercise Price | ||||||||||||||||||||||
Outstanding at December 31, 2013 | 12,027,803 | $ | 0.05 | ||||||||||||||||||||
Stock options granted | 350,000 | $ | 0.03 | ||||||||||||||||||||
Outstanding at September 30, 2014 | 12,377,803 | $ | 0.05 | ||||||||||||||||||||
Nonvested stock option and warrant activity | ' | ||||||||||||||||||||||
The following table summarizes our non-vested stock option and warrant activity for the nine months ended September 30, 2014: | |||||||||||||||||||||||
Weighted- | |||||||||||||||||||||||
Options and | Average Grant | ||||||||||||||||||||||
Warrants | Date Fair Value | ||||||||||||||||||||||
Non-vested stock options and warrants at | |||||||||||||||||||||||
31-Dec-13 | 375,551 | $ | 0.04 | ||||||||||||||||||||
Stock options granted | 350,000 | $ | 0.03 | ||||||||||||||||||||
Vested during the period | (329,179 | ) | $ | 0.04 | |||||||||||||||||||
Non-vested stock options and warrants at | |||||||||||||||||||||||
30-Sep-14 | 396,372 | $ | 0.04 | ||||||||||||||||||||
Option and Warrants | ' | ||||||||||||||||||||||
Options and Warrants | |||||||||||||||||||||||
Options and Warrants Outstanding | Exercisable | ||||||||||||||||||||||
Weighted | |||||||||||||||||||||||
Number | Average | Weighted | Number | Weighted | |||||||||||||||||||
Outstanding at | Remaining | Average | Exercisable at | Average | |||||||||||||||||||
September 30, | Contractual | Exercise | September 30, | Exercise | |||||||||||||||||||
2014 | Life | Price | 2014 | Price | |||||||||||||||||||
$ | 0.03-0.10 | 11,877,803 | 1.62 | $ | 0.04 | 11,481,431 | $ | 0.04 | |||||||||||||||
$ | 0.11-0.40 | 500,000 | 0.13 | $ | 0.4 | 500,000 | $ | 0.4 | |||||||||||||||
FINANCIAL_INSTRUMENTS_Details
FINANCIAL INSTRUMENTS (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Net Asset (Liability) | ($4,400) | ($6,535) |
Forward contracts [Member] | ' | ' |
Notional Amount | 200,000 | 300,000 |
Net Asset (Liability) | ($4,400) | ($6,535) |
FINANCIAL_INSTRUMENTS_Details_
FINANCIAL INSTRUMENTS (Details Narrative) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Financial Instruments Details Narrative | ' | ' |
Fair market value | ($4,400) | ($6,535) |
Margin deposits totaling | $11,000 | $16,900 |
RELATED_PARTIES_Details
RELATED PARTIES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Due to related parties | $8,164,207 | $7,380,675 |
Purchase of Business Unit | ' | ' |
Due to related parties | 175,350 | 182,910 |
Computer Hosting Services | ' | ' |
Due to related parties | 33,806 | 13,931 |
Office Rent | ' | ' |
Due to related parties | 1,027,672 | 995,215 |
Other | ' | ' |
Due to related parties | 17,276 | 17,276 |
Loan | ' | ' |
Due to related parties | 841,078 | 790,983 |
Lead Generation Services | ' | ' |
Due to related parties | 1,132,212 | 1,050,729 |
Due to Management | ' | ' |
Due to related parties | $4,936,813 | $4,329,631 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Stock-Based Compensation Details | ' | ' | ' | ' |
Sales and marketing | $1,899 | $426 | $3,635 | $1,278 |
General and administrative | 2,001 | 2,001 | 6,003 | 6,003 |
Total stock-based compensation | $3,900 | $2,427 | $9,638 | $7,281 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Stock-Based Compensation Details 1 | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | ' |
Expected stock price volatility | ' | ' | 206.00% | ' |
Risk-free interest rate | ' | ' | 4.00% | ' |
Expected life of options | '0 years | ' | '5 years 10 months 10 days | ' |
Weighted average fair value of options and warrants granted | ' | ' | $0.03 | ' |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details 2) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Options and Warrants | ' |
Outstanding at December 31, 2013 | 12,027,803 |
Stock options granted | 350,000 |
Outstanding at September 30, 2014 | 12,377,803 |
Outstanding at December 31, 2013 | $0.05 |
Stock options granted | $0.03 |
Outstanding at September 30, 2014 | $0.05 |
STOCKBASED_COMPENSATION_Detail3
STOCK-BASED COMPENSATION (Details 3) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Options and Warrants | ' |
Non-vested stock options and warrants at December 31, 2013 | 375,551 |
Stock options granted | 350,000 |
Vested during the period | -329,179 |
Non-vested stock options and warrants at September 30, 2014 | 396,372 |
Weighted- Average Grant Date Fair Value | ' |
Non-vested stock options and warrants at December 31, 2013 | $0.04 |
Stock options granted | $0.03 |
Vested during the period | $0.04 |
Non-vested stock options and warrants at September 30, 2014 | $0.04 |
STOCKBASED_COMPENSATION_Detail4
STOCK-BASED COMPENSATION (Details 4) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
0.03-0.10 | 0.11-0.40 | |||
Options and Warrants | ' | ' | ' | ' |
Number Outstanding | 12,377,803 | 12,027,803 | 11,877,803 | 500,000 |
Weighted Average Remaining Contractual Life | ' | ' | '1 year 7 months 13 days | '1 month 17 days |
Weighted-Average Exercise Price | $0.05 | $0.05 | $0.04 | $0.40 |
Number Exercisable | ' | ' | 11,481,431 | 500,000 |
Exercisable Weighted-Average Exercise Price | ' | ' | $0.04 | $0.40 |
STOCKBASED_COMPENSATION_Detail5
STOCK-BASED COMPENSATION (Details Narrative) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Stock-Based Compensation Details Narrative | ' |
Unrecognized compensation cost related to non-vested share-based payments | $28,006 |
Share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | '1 year 6 months 26 days |
LOSS_PER_SHARE_Details_Narrati
LOSS PER SHARE (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Loss Per Share Details Narrative | ' | ' | ' | ' |
Net loss per share - basic and diluted | $0 | $0 | ($0.01) | ($0.01) |
Stock options and warrants excluded from the calculation of dilutive loss per share because they were anti-dilutive | 12,377,803 | 13,727,803 | 12,377,803 | 13,727,803 |