Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 5-May-15 | |
Document And Entity Information | ||
Entity Registrant Name | QUOTEMEDIA INC | |
Entity Central Index Key | 1101433 | |
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 | 90,444,162 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $195,697 | $423,053 |
Accounts receivable, net | 466,731 | 405,727 |
Prepaid expenses | 66,479 | 48,985 |
Other current assets | 33,057 | 40,940 |
Total current assets | 761,964 | 918,705 |
Deposits | 17,908 | 19,273 |
Property and equipment, net | 1,509,563 | 1,486,267 |
Goodwill | 110,000 | 110,000 |
Intangible assets | 80,984 | 82,468 |
Total assets | 2,480,419 | 2,616,713 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 1,253,299 | 1,249,659 |
Deferred revenue | 541,279 | 559,214 |
Total current liabilities | 1,794,578 | 1,808,873 |
Long-term portion of amounts due to related parties | 8,581,841 | 8,398,160 |
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 | 9,002,092 | 8,998,192 |
Accumulated deficit | -16,988,537 | -16,678,957 |
Total stockholders' deficit | -7,896,000 | -7,590,320 |
Total liabilities and stockholders' deficit | $2,480,419 | $2,616,713 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Condensed Consolidated Balance Sheets Parenthetical | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, 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 | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Condensed Consolidated Statements Of Operations | ||
LICENSING FEES | $2,188,317 | $2,224,067 |
COST OF REVENUE | 1,261,398 | 1,273,283 |
GROSS PROFIT | 926,919 | 950,784 |
OPERATING EXPENSES | ||
Sales and marketing | 380,680 | 414,078 |
General and administrative | 483,418 | 539,600 |
Software development | 260,340 | 244,412 |
Total operating expenses | 1,124,438 | 1,198,090 |
OPERATING LOSS | -197,519 | -247,306 |
OTHER INCOME AND (EXPENSE) | ||
Foreign exchange gain (loss) | 97,998 | 26,221 |
Interest expense (related party) | -209,251 | -185,228 |
Total other income and (expense) | -111,253 | -159,007 |
LOSS BEFORE INCOME TAXES | -308,772 | -406,313 |
Income tax expense | -808 | -907 |
NET LOSS | ($309,580) | ($407,220) |
LOSS PER SHARE | ||
Basic and diluted loss per share | $0 | $0 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||
Basic and diluted | 90,444,162 | 90,444,162 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Operating activities: | ||
Net loss | ($309,580) | ($407,220) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 222,129 | 209,732 |
Bad debt expense | 18,991 | 5,472 |
Stock-based compensation expense | 3,900 | 2,363 |
Changes in assets and liabilities: | ||
Accounts receivable | -79,995 | 115,804 |
Prepaid expenses | -17,494 | 6,587 |
Other current assets | 7,883 | 2,980 |
Deposits | 1,365 | 657 |
Accounts payable and amounts due to related parties | 187,321 | 411,314 |
Deferred revenue | -17,935 | -40,974 |
Net cash provided by operating activities | 16,585 | 306,715 |
Investing activities: | ||
Purchase of fixed assets | -68,724 | -53,186 |
Capitalized application software | -175,217 | -193,298 |
Net cash used in investing activities | -243,941 | -246,484 |
Net increase (decrease) in cash | -227,356 | 60,231 |
Cash, beginning of year | 423,053 | 425,899 |
Cash, end of year | $195,697 | $486,130 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
Basis Of Presentation | |
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 consolidated financial statements the Company evaluated subsequent events after the balance sheet date of March 31, 2015 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, 2014 contained in our Form 10-K filed with the Securities and Exchange Commission dated March 31, 2015. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2015 | |
Significant Accounting Policies | |
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) Allowances for doubtful accounts | |
We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. The Company determines the allowance by reviewing the age of the receivables and assessing the anticipated ability of customers to pay. No collateral is required for any of the receivables and the Company does not usually apply financing charges to outstanding accounts receivable balances. If the financial condition of our customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. The allowance for doubtful accounts was $90,000 as at March 31, 2015 and December 31, 2014. | |
e) Accounting Pronouncements | |
Recently Adopted Accounting Guidance | |
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. | |
Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Financial Instruments | |||||||||||||||||
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. We had no forward contracts outstanding at March 31, 2015. At December 31, 2014, the fair market value for forward contracts was a liability of $5,297 and was 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: | |||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||
Notional Amount | Net Asset (Liability) | Notional Amount | Net Asset (Liability) | ||||||||||||||
Forward contracts | $ | - | $ | - | $ | 200,000 | $ | (5,297 | ) | ||||||||
We are required to maintain a margin deposit with a foreign exchange corporation based on the value of the forward contracts outstanding. There were no margin deposits at March 31, 2015. Margin deposits totaling $11,500 are included in other current assets at December 31, 2014. |
RELATED_PARTIES
RELATED PARTIES | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Related Parties | |||||||||
Note 4. RELATED PARTIES | The following table summarizes amounts due to related parties at March 31, 2015 and December 31, 2014: | ||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Purchase of business unit | $ | 162,683 | $ | 171,576 | |||||
Computer hosting services | 25,699 | 43,579 | |||||||
Office rent | 966,712 | 1,005,367 | |||||||
Other | 17,276 | 17,276 | |||||||
Loan | 851,915 | 850,112 | |||||||
Lead generation services | 1,190,016 | 1,160,754 | |||||||
Due to Management | 5,367,541 | 5,149,496 | |||||||
$ | 8,581,842 | $ | 8,398,160 | ||||||
As a matter of policy all related party transactions are subject to review and approval by the Company’s Board of Directors. All amounts due to related parties have been classified as non-current liabilities as we do not expect to repay amounts due to related parties within a year of the March 31, 2015 balance sheet date. Repayments are subject to our company having sufficient cash on hand and are intended not to impair continuing business operations. Our related party creditors have agreed to these repayment terms. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||||
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 months ended March 31, 2015 and 2014 was comprised as follows: | ||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||
March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Sales and marketing | $ | 1,899 | $ | 362 | ||||||||||||||||||
General and administrative | 2,001 | 2,001 | ||||||||||||||||||||
Total stock-based compensation | $ | 3,900 | $ | 2,363 | ||||||||||||||||||
At March 31, 2015 there was $20,206 of unrecognized compensation cost related to non-vested share-based payments which is expected to be recognized over a weighted-average period of 0.97 years. | ||||||||||||||||||||||
The following table represents stock option and warrant activity for the three months ended March 31, 2015: | ||||||||||||||||||||||
Options and | Weighted- | |||||||||||||||||||||
Warrants | Average | |||||||||||||||||||||
Exercise | ||||||||||||||||||||||
Price | ||||||||||||||||||||||
Outstanding at December 31, 2014 | 11,877,803 | $ | 0.04 | |||||||||||||||||||
Stock options forfeited/expired | (50,000 | ) | $ | 0.04 | ||||||||||||||||||
Outstanding at March 31, 2015 | 11,827,803 | $ | 0.04 | |||||||||||||||||||
The following table summarizes our non-vested stock option and warrant activity for the three months ended March 31, 2015: | ||||||||||||||||||||||
Options and | Weighted- Average Grant Date Fair Value | |||||||||||||||||||||
Warrants | ||||||||||||||||||||||
Non-vested stock options and warrants at | ||||||||||||||||||||||
31-Dec-14 | 298,323 | $ | 0.04 | |||||||||||||||||||
Vested during the period | (5,001 | ) | $ | 0.07 | ||||||||||||||||||
Non-vested stock options and warrants at | ||||||||||||||||||||||
31-Mar-15 | 293,322 | $ | 0.04 | |||||||||||||||||||
Options and Warrants | ||||||||||||||||||||||
Options and Warrants Outstanding | Exercisable | |||||||||||||||||||||
Weighted | ||||||||||||||||||||||
Number | Average | Weighted | Number | Weighted | ||||||||||||||||||
Outstanding at | Remaining | Average | Exercisable at | Average | ||||||||||||||||||
March 31, | Contractual | Exercise | March 31, | Exercise | ||||||||||||||||||
2015 | Life | Price | 2015 | Price | ||||||||||||||||||
$0.05-0.07 | 11,827,803 | 2.7 | $ | 0.04 | 11,534,481 | $ | 0.04 | |||||||||||||||
As at March 31, 2015 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. | ||||||||||||||||||||||
At March 31, 2015 the aggregate intrinsic value of options and warrants outstanding was $1,236,296. The aggregate intrinsic value of options and warrants exercisable was $1,205,546. 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 | 3 Months Ended |
Mar. 31, 2015 | |
Loss Per Share | |
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 March 31, 2015 and 2014, respectively. There were 11,827,803 stock options and warrants excluded from the calculation of dilutive loss per share for the three months ended March 31, 2015 and 2014 because they were anti-dilutive. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
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. |
Allowances for doubtful accounts | We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. The Company determines the allowance by reviewing the age of the receivables and assessing the anticipated ability of customers to pay. No collateral is required for any of the receivables and the Company does not usually apply financing charges to outstanding accounts receivable balances. If the financial condition of our customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. The allowance for doubtful accounts was $90,000 as at March 31, 2015 and December 31, 2014. |
Accounting Pronouncements | Recently Adopted Accounting Guidance |
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. | |
Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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: | ||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||
Notional Amount | Net Asset (Liability) | Notional Amount | Net Asset (Liability) | ||||||||||||||
Forward contracts | $ | - | $ | - | $ | 200,000 | $ | (5,297 | ) | ||||||||
RELATED_PARTIES_Tables
RELATED PARTIES (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Related Parties Tables | |||||||||
Amounts due to related parties | The following table summarizes amounts due to related parties at March 31, 2015 and December 31, 2014: | ||||||||
31-Mar-15 | December | ||||||||
31, 2014 | |||||||||
Purchase of business unit | $ | 162,683 | $ | 171,576 | |||||
Computer hosting services | 25,699 | 43,579 | |||||||
Office rent | 966,712 | 1,005,367 | |||||||
Other | 17,276 | 17,276 | |||||||
Loan | 851,915 | 850,112 | |||||||
Lead generation services | 1,190,016 | 1,160,754 | |||||||
Due to Management | 5,367,541 | 5,149,496 | |||||||
$ | 8,581,842 | $ | 8,398,160 | ||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Stock-Based Compensation Tables | ||||||||||||||||||||||
Total estimated stock-based compensation expense | Total estimated stock-based compensation expense, related to all of the Company’s stock-based awards, recognized for the three months ended March 31, 2015 and 2014 was comprised as follows: | |||||||||||||||||||||
Three months ended | ||||||||||||||||||||||
March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Sales and marketing | $ | 1,899 | $ | 362 | ||||||||||||||||||
General and administrative | 2,001 | 2,001 | ||||||||||||||||||||
Total stock-based compensation | $ | 3,900 | $ | 2,363 | ||||||||||||||||||
Stock option and warrant activity | The following table represents stock option and warrant activity for the three months ended March 31, 2015: | |||||||||||||||||||||
Options and | Weighted- | |||||||||||||||||||||
Warrants | Average | |||||||||||||||||||||
Exercise | ||||||||||||||||||||||
Price | ||||||||||||||||||||||
Outstanding at December 31, 2014 | 11,877,803 | $ | 0.04 | |||||||||||||||||||
Stock options forfeited/expired | (50,000 | ) | $ | 0.04 | ||||||||||||||||||
Outstanding at March 31, 2015 | 11,827,803 | $ | 0.04 | |||||||||||||||||||
Nonvested stock option and warrant activity | The following table summarizes our non-vested stock option and warrant activity for the three months ended March 31, 2015: | |||||||||||||||||||||
Options and | Weighted- Average Grant Date Fair Value | |||||||||||||||||||||
Warrants | ||||||||||||||||||||||
Non-vested stock options and warrants at | ||||||||||||||||||||||
31-Dec-14 | 298,323 | $ | 0.04 | |||||||||||||||||||
Vested during the period | (5,001 | ) | $ | 0.07 | ||||||||||||||||||
Non-vested stock options and warrants at | ||||||||||||||||||||||
31-Mar-15 | 293,322 | $ | 0.04 | |||||||||||||||||||
Option and Warrats | ||||||||||||||||||||||
Options and Warrants | ||||||||||||||||||||||
Options and Warrants Outstanding | Exercisable | |||||||||||||||||||||
Weighted | ||||||||||||||||||||||
Number | Average | Weighted | Number | Weighted | ||||||||||||||||||
Outstanding at | Remaining | Average | Exercisable at | Average | ||||||||||||||||||
March 31, | Contractual | Exercise | March 31, | Exercise | ||||||||||||||||||
2015 | Life | Price | 2015 | Price | ||||||||||||||||||
$0.05-0.07 | 11,827,803 | 2.7 | $ | 0.04 | 11,534,481 | $ | 0.04 | |||||||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Significant Accounting Policies Details Narrative | ||
Allowance for doubtful accounts | $90,000 | $90,000 |
FINANCIAL_INSTRUMENTS_Details
FINANCIAL INSTRUMENTS (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Net Asset (Liability) | ($5,297) | |
Forward Contracts [Member] | ||
Notional Amount | 200,000 | |
Net Asset (Liability) | ($5,297) |
FINANCIAL_INSTRUMENTS_Details_
FINANCIAL INSTRUMENTS (Details Narrative) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Financial Instruments Details Narrative | ||
Fair market value for forward contract | ($5,297) | |
Margin deposits totaling | $11,500 |
RELATED_PARTIES_Details
RELATED PARTIES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Due to related parties | $8,581,841 | $8,398,160 |
Purchase of Business Unit [Member] | ||
Due to related parties | 162,683 | 171,576 |
Computer Hosting Services [Member] | ||
Due to related parties | 25,699 | 43,579 |
Office Rent [Member] | ||
Due to related parties | 966,712 | 1,005,367 |
Other [Member] | ||
Due to related parties | 17,276 | 17,276 |
Loan [Member] | ||
Due to related parties | 851,915 | 850,112 |
Lead Generation Services [Member] | ||
Due to related parties | 1,190,016 | 1,160,754 |
Due to Management [Member] | ||
Due to related parties | $5,367,541 | $5,149,496 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Total stock-based compensation | $3,900 | $2,363 |
Selling and marketing [Member] | ||
Total stock-based compensation | 1,899 | 362 |
General and administrative [Member] | ||
Total stock-based compensation | $2,001 | $2,001 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 1) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Options and Warrants | |
Outstanding - Opening Balance | 11,877,803 |
Stock options forfeited/expired | -50,000 |
Outstanding - Ending Balance | 11,827,803 |
Weighted-Average Exercise Price | |
Weighted-Average Exercise Price Outstanding - Opening Balance | $0.04 |
Stock options forfeited/expired | $0.04 |
Weighted-Average Exercise Price Outstanding - Ending Balance | $0.04 |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details 2) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Options and Warrants | |
Outstanding - Opening Balance | 298,323 |
Vested during the period | -5,001 |
Outstanding - Ending Balance | 293,322 |
Weighted-Average Exercise Price | |
Weighted-Average Exercise Price Outstanding - Opening Balance | $0.04 |
Vested during the period | $0.07 |
Weighted-Average Exercise Price Outstanding - Ending Balance | $0.04 |
STOCKBASED_COMPENSATION_Detail3
STOCK-BASED COMPENSATION (Details 3) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Number Outstanding | 11,827,803 | 11,877,803 |
Weighted-Average Exercise Price | $0.04 | $0.04 |
0.05-0.07 | ||
Number Outstanding | 11,827,803 | |
Weighted Average Remaining Contractual Life | 2 years 8 months 12 days | |
Weighted-Average Exercise Price | $0.04 | |
Number Exercisable | 11,534,481 | |
Weighted-Average Exercise Price | $0.04 |
STOCKBASED_COMPENSATION_Detail4
STOCK-BASED COMPENSATION (Details Narrative) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Stock-Based Compensation Details Narrative | |
Unrecognized compensation cost related to non-vested share-based payments | $20,206 |
Non-vested share-based payments which is expected to be recognized over a weighted-average period | 11 months 19 days |
Aggregate intrinsic value of options and warrants | 1,236,296 |
Aggregate intrinsic value of options and warrants exercisable | $1,205,546 |
LOSS_PER_SHARE_Details_Narrati
LOSS PER SHARE (Details Narrative) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Loss Per Share Details Narrative | ||
Loss per share - basic and diluted | $0 | $0 |
Stock options and warrants excluded from the calculation of dilutive loss per share because they were anti-dilutive | 11,827,803 | 11,827,803 |