Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 14, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'EROOMSYSTEM TECHNOLOGIES INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 24,107,865 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001110361 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $1,632,318 | $1,962,572 |
Investment in certificate of deposit | 22,832 | 0 |
Note receivable | 150,000 | 0 |
Accounts receivable, net of allowance for doubtful accounts of $8,579 at September 30, 2013 and $12,353 at December 31, 2012 | 48,614 | 66,600 |
Inventory | 226,376 | 157,921 |
Prepaid expenses | 11,052 | 22,641 |
Total Current Assets | 2,091,192 | 2,209,734 |
PROPERTY AND EQUIPMENT | ' | ' |
Property and equipment, net of accumulated depreciation of $33,103 at September 30, 2013 and $20,331 at December 31, 2012 | 62,416 | 67,568 |
INVESTMENT IN REAL PROPERTY TAX LIENS | 13,422 | 26,267 |
NOTE RECEIVABLE | 412,466 | 449,863 |
DEPOSITS | 3,183 | 3,183 |
Total Assets | 2,582,679 | 2,756,615 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 10,858 | 18,682 |
Accrued liabilities and customer deposits | 48,364 | 81,724 |
Total Current Liabilities | 59,222 | 100,406 |
Total Liabilities | 59,222 | 100,406 |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, $0.001 par value; 5,000,000 shares authorized; none outstanding | 0 | 0 |
Common stock, $0.001 par value; 50,000,000 shares authorized; shares outstanding 24,107,865 at September 30, 2013 and 24,057,865 at December 31, 2012 | 24,108 | 24,058 |
Additional paid-in capital | 34,194,126 | 34,184,508 |
Accumulated deficit | -31,694,777 | -31,552,357 |
Total Stockholders' Equity | 2,523,457 | 2,656,209 |
Total Liabilities and Stockholders' Equity | $2,582,679 | $2,756,615 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts (in Dollars) | $8,579 | $12,353 |
Accumulated depreciation (in Dollars) | $33,103 | $20,331 |
Preferred stock par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in Shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in Shares) | 0 | 0 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in Shares) | 50,000,000 | 50,000,000 |
Common stock, shares outstanding (in Shares) | 24,107,865 | 24,057,865 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
REVENUE | ' | ' | ' | ' |
Product sales | $130,239 | $140,873 | $356,775 | $403,768 |
Maintenance fees | 15,000 | 33,836 | 60,178 | 107,649 |
Total Revenue | 145,239 | 174,709 | 416,953 | 511,417 |
COST OF REVENUE | ' | ' | ' | ' |
Product sales | 100,247 | 101,793 | 230,103 | 282,435 |
Maintenance | 750 | 2,871 | 2,708 | 14,134 |
Total Cost of Revenue | 100,997 | 104,664 | 232,811 | 296,569 |
GROSS MARGIN | 44,242 | 70,045 | 184,142 | 214,848 |
INVESTMENT INCOME | 10,060 | 2,785 | 15,430 | 8,824 |
TOTAL GROSS MARGIN AND INVESTMENT INCOME | 54,302 | 72,830 | 199,572 | 223,672 |
OPERATING EXPENSES | ' | ' | ' | ' |
Selling, general and administrative expense, including non-cash compensation of $6,500, $10,500, $9,668, $12,487, respectively | 88,732 | 87,795 | 259,280 | 309,247 |
Research and development expense | 22,559 | 46,077 | 82,712 | 132,762 |
Net Operating Expenses | 111,291 | 133,872 | 341,992 | 442,009 |
Net Loss | ($56,989) | ($61,042) | ($142,420) | ($218,337) |
Basic Loss Per Common Share (in Dollars per share) | $0 | $0 | ($0.01) | ($0.01) |
Diluted Loss Per Common Share (in Dollars per share) | $0 | $0 | ($0.01) | ($0.01) |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Selling, general and administrative expense, non-cash compensation (in Dollars) | $6,500 | $10,500 | $9,668 | $12,487 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net loss | ($142,420) | ($218,337) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 12,772 | 16,601 |
Loss on sale of equipment | 0 | 15,125 |
Loss on investment in certificate of deposit | 2,168 | 0 |
Non-cash compensation expense | 9,668 | 12,487 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 17,986 | 6,852 |
Inventory | -71,490 | -6,197 |
Prepaid expenses | 11,589 | -13,592 |
Accounts payable | -7,824 | 14,404 |
Accrued liabilities | -33,360 | -53,643 |
Net Cash Used In Operating Activities | -200,911 | -226,300 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Purchase of property and equipment | -4,585 | -5,235 |
Purchase of investments in real property tax liens | 0 | -2,398 |
Proceeds from sale of equipment | 0 | 30,650 |
Purchase of certificate of deposit | -25,000 | 0 |
Advances made under note receivable | -150,000 | 0 |
Proceeds from collections of real property tax liens | 12,845 | 3,089 |
Proceeds from collection of note receivable, non-performing | 37,397 | 37,534 |
Net Cash Provided by (Used in) Investing Activities | -129,343 | 63,640 |
Net Decrease in Cash | -330,254 | -162,660 |
Cash and cash equivalents at Beginning of Period | 1,962,572 | 2,191,396 |
Cash and cash equivalents at End of Period | $1,632,318 | $2,028,736 |
NOTE_1_BASIS_OF_PRESENTATION_A
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Basis of Presentation and Significant Accounting Policies [Text Block] | ' | ||||||||||||||||
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||
Condensed Financial Statements - The accompanying unaudited condensed consolidated financial statements include the accounts of eRoomSystem Technologies, Inc. and its wholly-owned subsidiaries (the "Company"). Intercompany accounts and transactions have been eliminated in consolidation. These financial statements are condensed and, therefore, do not include all disclosures normally required by generally accepted accounting principles. These statements should be read in conjunction with the Company's annual financial statements for the fiscal year ended December 31, 2012 included in the Company's Annual Report on Form 10-K. In particular, the Company's organization, nature of operations and significant accounting principles were presented in Note 1 to the consolidated financial statements in that annual report. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2013. | |||||||||||||||||
Cash and Cash Equivalents – Cash and cash equivalents include highly-liquid debt investments with original maturities of three months or less, readily convertible to known amounts of cash. | |||||||||||||||||
Investment in Real Property Tax Liens – The investments in the real property tax liens are accounted for as an investment in troubled debts and are carried at cost. Collection of interest, penalties and expense reimbursements is not certain and is recognized upon being realized. The Company has evaluated the collectability of the tax liens and believes the investments are realizable over time as the first position liens are secured by the related real property and the estimated fair value of the real property is in excess of the carrying value of the tax liens and the estimated cost to foreclose and sell the real property. Therefore the Company has not provided an allowance for loan losses against the carrying value of the tax liens at September 30, 2013. | |||||||||||||||||
Notes Receivable – Notes receivable are stated at their historical carrying amount and are evaluated for impairment. When projections indicate that the carrying value of a note is not recoverable, the carrying value is reduced by the estimated excess of the carrying value over the projected discounted cash flows. No impairment was deemed necessary during 2013 or 2012. Notes receivable that are classified as troubled debt are classified as a long-term asset, interest income is not recognized until the carrying value has been recovered and payments received are recognized as a reduction of the carrying value of the note. | |||||||||||||||||
Accounts Receivable - Accounts receivable are stated at the historical carrying amount, net of write-offs and allowances. The Company has established an overall allowance based upon historical experience of 15% of the outstanding balance in addition to any specific customer collection issues identified by the Company. Uncollectible accounts receivable are written off when a settlement is reached or when the Company has determined that the balance will not be collected. | |||||||||||||||||
Inventory - The Company maintains an inventory of product that is sold in the refreshment centers in a number of hotels. In addition, the Company maintains an inventory of minibars and baskets to be placed in Hotels. The inventory is purchased as finished goods and is valued using the first in, first out method. | |||||||||||||||||
Income Taxes - The Company recognizes an asset or liability for the deferred tax consequences of all temporary differences between the tax basis of assets or liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. These deferred tax assets or liabilities are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. Deferred tax assets are reviewed periodically for recoverability and valuation allowances are provided, as necessary. A liability is provided for uncertain tax positions that are not likely to be sustained during examination by taxing authorities. | |||||||||||||||||
Net Earnings (Loss) per Common Share - Basic earnings (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding. Diluted earnings (loss) per common share is computed by dividing net income (loss), adjusted to add back interest associated with convertible debt, by the weighted-average number of common shares and dilutive potential common share equivalents outstanding. When dilutive, the incremental potential common shares issuable upon exercise of stock options are determined by the treasury stock method. | |||||||||||||||||
The following table is a reconciliation of the numerators and denominators used in the calculation of basic and diluted loss per share for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
For the three months | For the nine months | ||||||||||||||||
ended September 30, | ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net loss | $ | (56,989 | ) | $ | (61,042 | ) | $ | (142,420 | ) | $ | (218,337 | ) | |||||
Basic weighted-average common shares outstanding | 24,106,235 | 24,057,865 | 24,074,165 | 24,020,639 | |||||||||||||
Effect of dilutive securities | |||||||||||||||||
Stock options and warrants | - | - | - | - | |||||||||||||
Diluted weighted-average common shares outstanding | 24,106,235 | 24,057,865 | 24,074,165 | 24,020,639 | |||||||||||||
Basic loss per share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | |||||
Diluted loss per share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | |||||
During the three and nine months ended September 30, 2013 and 2012, there were 542,500 and 482,500 respectively of potential common stock equivalents from options and warrants that were not included in the computation of diluted loss per share because their effect would have been anti-dilutive. | |||||||||||||||||
NOTE_2_INVESTMENTS
NOTE 2 - INVESTMENTS | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block Supplement [Abstract] | ' |
Cost and Equity Method Investments Disclosure [Text Block] | ' |
NOTE 2 - INVESTMENTS | |
Investment in Real Property Tax Liens –During the nine months ended September 30, 2013, the Company did not purchase real property tax liens. The Company collected $12,845 in tax lien settlements. The New Jersey municipal tax liens are receivable from the real property owners and are secured by a first priority lien on the related real property. Upon foreclosure, the Company would obtain ownership of the real property. The tax lien receivables accrue interest up to 18% per annum, accrue penalties at 2% to 6% per annum and are also increased by the amount of any collection expenses incurred. The investment in the real property tax liens are accounted for as an investment in troubled debts and are carried at cost. Collection of interest, penalties and expense reimbursements is not certain and is recognized upon being realized. The carrying amount of the real property tax liens approximates their fair value based on the market value for similar tax liens. | |
NOTE_3_NOTE_RECEIVABLE
NOTE 3 - NOTE RECEIVABLE | 9 Months Ended |
Sep. 30, 2013 | |
Receivables [Abstract] | ' |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' |
NOTE 3 - NOTES RECEIVABLE | |
BlackBird Loan | |
On July 24, 2008, the Company loaned $500,000 to BlackBird Corporation (“BlackBird”) under the terms of a 10% senior secured convertible promissory note (the “Secured Note”). The Secured Note bore interest at 10% per annum, payable quarterly, and was due June 30, 2009. In addition, BlackBird issued 50,000 shares of its common stock to the Company. On the date of issuance, the fair value of BlackBird’s common stock was not determinable and the shares were valued at zero. BlackBird further agreed in July 2008, notwithstanding the terms of the note, if the loan was not repaid by January 1, 2009, interest on the note would accrue at 18% per annum starting January 1, 2009. The Secured Note was not paid by January 1, 2009 and it continued to accrue interest at 18% per annum. On April 1, 2011, the Company agreed to extend the due date of the Secured Note to June 30, 2011. | |
BlackBird did not pay its interest payment for the second quarter of 2011 in a timely fashion. On November 3, 2011, the Company entered into a forbearance agreement with BlackBird to reduce the interest rate on the Secured Note to 10% retroactive to April 1, 2011 and to not foreclose on BlackBird’s assets if BlackBird remains in compliance with the terms of the agreement. As part of this agreement, BlackBird agreed to pay all outstanding interest due on the loan through September 30, 2011 by November 11, 2011. BlackBird also agreed to make monthly interest payments within 10 days after the end of each month. The outstanding accrued interest of $25,069 as of September 30, 2011 was paid in full on November 10, 2011. | |
The concession granted to BlackBird on November 3, 2011 constituted a troubled debt restructuring under current accounting guidance. As a result, the note was classified as a long-term asset. Interest income under the terms of the Secured Note is no longer being recognized until the carrying value has been recovered, and payments received are recognized as a reduction of the carrying value of the note. The carrying value of the note receivable was $412,466 at September 30, 2013. | |
The note receivable was evaluated for impairment and the Company determined that it is likely that estimated future payments from BlackBird or the cash flows from BlackBird’s operations and the value of the underlying collateral is sufficient that upon foreclosure the Company would be able to realize the carrying value of the note. If BlackBird fails to comply with the terms of the agreement dated November 3, 2011, the Company plans on foreclosing on the underlying collateral to collect on the note. Therefore no impairment was recognized during the nine months ended September 30, 2013 or 2012. | |
The note receivable is assessed for impairment on a quarterly basis. If projections were to indicate that the carrying value of the promissory note was not recoverable, the carrying value would be reduced by the estimated excess of the carrying value over the projected discounted cash flows. The evaluations are based on the estimated projected discounted cash flows from BlackBird and from the liquidation value of the underlying collateral. | |
Management has estimated that the fair value of the note receivable was approximately $414,000 at both September 30, 2013 and December 31, 2012. | |
Note Receivable | |
On June 25, 2013, the Company loaned $150,000 to a New York limited liability company under the terms of a one year 12% mortgage note. Interest is due and payable monthly. The entire principal amount is due and payable on the maturity date. The mortgage is collateralized by a commercial property. The Company intends to hold this note to maturity. The carrying amount of the note receivable approximates its fair value based on its short-term maturity. | |
NOTE_4_STOCKHOLDERS_EQUITY
NOTE 4 - STOCKHOLDERS' EQUITY | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | |||||||||||||||
NOTE 4 - STOCKHOLDERS’ EQUITY | ||||||||||||||||
During the nine months ended September 30, 2013, the Company granted options to purchase 50,000 shares of common stock to employees for services rendered. These options, which vested immediately, have an exercise price of $0.08 per share and are exercisable through April 19, 2018. These options were valued at approximately $0.06 per share, or $3,168, using the Black-Scholes option pricing model with the following assumptions: risk free interest rate of 0.72%, dividend yield of 0.0%, volatility of 112% and expected life of 5 years. | ||||||||||||||||
During the nine months ended September 30, 2012, the Company granted options to purchase 25,000 shares of common stock to an employee for services rendered. These options, which vested immediately, have an exercise price of $0.10 per share and are exercisable through February 22, 2017. These options were valued at approximately $0.08 per share, or $1,987, using the Black-Scholes option pricing model with the following assumptions: risk free interest rate of 1.41%, dividend yield of 0.0%, volatility of 111% and expected life of 5 years. | ||||||||||||||||
During the nine months ended September 30, 2012, 1,386,946 options to purchase shares of common stock expired. | ||||||||||||||||
During the nine months ended September 30, 2013, the Company issued 50,000 shares of common stock to its Board of Directors in recognition of services rendered. These shares were valued at $6,500 ($0.13 per share). | ||||||||||||||||
During the nine months ended September 30, 2012, the Company issued 50,000 shares of common stock to its Board of Directors in recognition of services rendered as well as 25,000 shares to a consultant in recognition of services rendered. These shares were valued at $10,500 ($0.14 per share). | ||||||||||||||||
Stock-based compensation expense relating to stock options of $9,668 and $12,487 was recognized during the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||
There was no unrecognized compensation related to stock options at September 30, 2013. | ||||||||||||||||
A summary of stock option and warrant activity for the nine months ended September 30, 2013 is as follows: | ||||||||||||||||
Options and Warrants | Exercise Price Range | Weighted - Average Exercise Price | ||||||||||||||
Balance, December 31, 2012 | 492,500 | $ | 0.1 | - | $ | 0.26 | $ | 0.21 | ||||||||
Granted | 50,000 | 0.08 | - | 0.08 | 0.08 | |||||||||||
Expired | - | - | - | - | ||||||||||||
Balance, September 30, 2013 | 542,500 | 0.08 | - | 0.26 | 0.19 | |||||||||||
Weighted-average fair value of options granted during the nine months ended September 30, 2013 | $ | 0.06 | ||||||||||||||
All of the options and warrants were exercisable at September 30, 2013. At September 30, 2013, there was no intrinsic value for the options and warrants outstanding. | ||||||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | ' | ||||||||||||||||
Condensed Financial Statements - The accompanying unaudited condensed consolidated financial statements include the accounts of eRoomSystem Technologies, Inc. and its wholly-owned subsidiaries (the "Company"). Intercompany accounts and transactions have been eliminated in consolidation. These financial statements are condensed and, therefore, do not include all disclosures normally required by generally accepted accounting principles. These statements should be read in conjunction with the Company's annual financial statements for the fiscal year ended December 31, 2012 included in the Company's Annual Report on Form 10-K. In particular, the Company's organization, nature of operations and significant accounting principles were presented in Note 1 to the consolidated financial statements in that annual report. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2013. | |||||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||||||||||
Cash and Cash Equivalents – Cash and cash equivalents include highly-liquid debt investments with original maturities of three months or less, readily convertible to known amounts of cash. | |||||||||||||||||
Cost Method Investments, Policy [Policy Text Block] | ' | ||||||||||||||||
Investment in Real Property Tax Liens – The investments in the real property tax liens are accounted for as an investment in troubled debts and are carried at cost. Collection of interest, penalties and expense reimbursements is not certain and is recognized upon being realized. The Company has evaluated the collectability of the tax liens and believes the investments are realizable over time as the first position liens are secured by the related real property and the estimated fair value of the real property is in excess of the carrying value of the tax liens and the estimated cost to foreclose and sell the real property. Therefore the Company has not provided an allowance for loan losses against the carrying value of the tax liens at September 30, 2013. | |||||||||||||||||
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | ' | ||||||||||||||||
Notes Receivable – Notes receivable are stated at their historical carrying amount and are evaluated for impairment. When projections indicate that the carrying value of a note is not recoverable, the carrying value is reduced by the estimated excess of the carrying value over the projected discounted cash flows. No impairment was deemed necessary during 2013 or 2012. Notes receivable that are classified as troubled debt are classified as a long-term asset, interest income is not recognized until the carrying value has been recovered and payments received are recognized as a reduction of the carrying value of the note. | |||||||||||||||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' | ||||||||||||||||
Accounts Receivable - Accounts receivable are stated at the historical carrying amount, net of write-offs and allowances. The Company has established an overall allowance based upon historical experience of 15% of the outstanding balance in addition to any specific customer collection issues identified by the Company. Uncollectible accounts receivable are written off when a settlement is reached or when the Company has determined that the balance will not be collected. | |||||||||||||||||
Inventory, Policy [Policy Text Block] | ' | ||||||||||||||||
Inventory - The Company maintains an inventory of product that is sold in the refreshment centers in a number of hotels. In addition, the Company maintains an inventory of minibars and baskets to be placed in Hotels. The inventory is purchased as finished goods and is valued using the first in, first out method. | |||||||||||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||||||||||
Income Taxes - The Company recognizes an asset or liability for the deferred tax consequences of all temporary differences between the tax basis of assets or liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. These deferred tax assets or liabilities are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. Deferred tax assets are reviewed periodically for recoverability and valuation allowances are provided, as necessary. A liability is provided for uncertain tax positions that are not likely to be sustained during examination by taxing authorities. | |||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||||||||||
Net Earnings (Loss) per Common Share - Basic earnings (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding. Diluted earnings (loss) per common share is computed by dividing net income (loss), adjusted to add back interest associated with convertible debt, by the weighted-average number of common shares and dilutive potential common share equivalents outstanding. When dilutive, the incremental potential common shares issuable upon exercise of stock options are determined by the treasury stock method. | |||||||||||||||||
The following table is a reconciliation of the numerators and denominators used in the calculation of basic and diluted loss per share for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
For the three months | For the nine months | ||||||||||||||||
ended September 30, | ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net loss | $ | (56,989 | ) | $ | (61,042 | ) | $ | (142,420 | ) | $ | (218,337 | ) | |||||
Basic weighted-average common shares outstanding | 24,106,235 | 24,057,865 | 24,074,165 | 24,020,639 | |||||||||||||
Effect of dilutive securities | |||||||||||||||||
Stock options and warrants | - | - | - | - | |||||||||||||
Diluted weighted-average common shares outstanding | 24,106,235 | 24,057,865 | 24,074,165 | 24,020,639 | |||||||||||||
Basic loss per share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | |||||
Diluted loss per share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | |||||
During the three and nine months ended September 30, 2013 and 2012, there were 542,500 and 482,500 respectively of potential common stock equivalents from options and warrants that were not included in the computation of diluted loss per share because their effect would have been anti-dilutive. |
NOTE_1_BASIS_OF_PRESENTATION_A1
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 'The following table is a reconciliation of the numerators and denominators used in the calculation of basic and diluted loss per share for the three and nine months ended September 30, 2013 and 2012: | ||||||||||||||||
For the three months | For the nine months | ||||||||||||||||
ended September 30, | ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net loss | $ | (56,989 | ) | $ | (61,042 | ) | $ | (142,420 | ) | $ | (218,337 | ) | |||||
Basic weighted-average common shares outstanding | 24,106,235 | 24,057,865 | 24,074,165 | 24,020,639 | |||||||||||||
Effect of dilutive securities | |||||||||||||||||
Stock options and warrants | - | - | - | - | |||||||||||||
Diluted weighted-average common shares outstanding | 24,106,235 | 24,057,865 | 24,074,165 | 24,020,639 | |||||||||||||
Basic loss per share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | |||||
Diluted loss per share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) |
NOTE_4_STOCKHOLDERS_EQUITY_Tab
NOTE 4 - STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | 'A summary of stock option and warrant activity for the nine months ended September 30, 2013 is as follows: | |||||||||||||||
Options and Warrants | Exercise Price Range | Weighted - Average Exercise Price | ||||||||||||||
Balance, December 31, 2012 | 492,500 | $ | 0.1 | - | $ | 0.26 | $ | 0.21 | ||||||||
Granted | 50,000 | 0.08 | - | 0.08 | 0.08 | |||||||||||
Expired | - | - | - | - | ||||||||||||
Balance, September 30, 2013 | 542,500 | 0.08 | - | 0.26 | 0.19 | |||||||||||
Weighted-average fair value of options granted during the nine months ended September 30, 2013 | $ | 0.06 |
NOTE_1_BASIS_OF_PRESENTATION_A2
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) (Options and Warrants [Member]) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Options and Warrants [Member] | ' | ' |
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 542,500 | 482,500 |
NOTE_1_BASIS_OF_PRESENTATION_A3
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Earnings per Share (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Schedule of Earnings per Share [Abstract] | ' | ' | ' | ' |
Net loss (in Dollars) | ($56,989) | ($61,042) | ($142,420) | ($218,337) |
Basic weighted-average common shares outstanding | 24,106,235 | 24,057,865 | 24,074,165 | 24,020,639 |
Effect of dilutive securities | ' | ' | ' | ' |
Stock options and warrants | 0 | 0 | 0 | 0 |
Diluted weighted-average common shares outstanding | 24,106,235 | 24,057,865 | 24,074,165 | 24,020,639 |
Basic loss per share (in Dollars per share) | $0 | $0 | ($0.01) | ($0.01) |
Diluted loss per share (in Dollars per share) | $0 | $0 | ($0.01) | ($0.01) |
NOTE_2_INVESTMENTS_Details
NOTE 2 - INVESTMENTS (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
NOTE 2 - INVESTMENTS (Details) [Line Items] | ' | ' |
Proceeds from Sale, Maturity and Collection of Investments (in Dollars) | $12,845 | $3,089 |
Investment in Real Property Tax Liens [Member] | ' | ' |
NOTE 2 - INVESTMENTS (Details) [Line Items] | ' | ' |
Investment Interest Rate | 18.00% | ' |
Investment in real property tax liens, penalty rate | '2% to 6% | ' |
NOTE_3_NOTE_RECEIVABLE_Details
NOTE 3 - NOTE RECEIVABLE (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2009 | Dec. 31, 2008 | |
Receivables [Abstract] | ' | ' | ' | ' | ' | ' |
Loans and Leases Receivable, Collateral for Secured Borrowings | ' | ' | ' | ' | ' | $500,000 |
Loan receivable, interest rate | 12.00% | ' | ' | ' | 18.00% | 10.00% |
Shares of common stock issued with loan receivable (in Shares) | ' | ' | ' | ' | ' | 50,000 |
Fair value of shares issued with loan receivable | ' | ' | ' | ' | ' | 0 |
Loan receivable, interest rate after reduction | ' | ' | ' | 10.00% | ' | ' |
Proceeds from Collection of Notes Receivable | 37,397 | 37,534 | ' | 25,069 | ' | ' |
Notes, Loans and Financing Receivable, Net, Noncurrent | 412,466 | ' | 449,863 | ' | ' | ' |
Provision for Loan and Lease Losses | 0 | ' | 0 | ' | ' | ' |
Notes Receivable, Fair Value Disclosure | 414,000 | 414,000 | ' | ' | ' | ' |
Payments to Acquire Notes Receivable | $150,000 | $0 | ' | ' | ' | ' |
Loan Receivable, Term | '1 year | ' | ' | ' | ' | ' |
NOTE_4_STOCKHOLDERS_EQUITY_Det
NOTE 4 - STOCKHOLDERS' EQUITY (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
NOTE 4 - STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' |
Stock Issued During Period, Shares, Issued for Services (in Shares) | 50,000 | 25,000 |
Stock Issued During Period, Value, Issued for Services | $6,500 | $10,500 |
Share Price (in Dollars per share) | $0.13 | $0.14 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options and Warrants | 0 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Warrants, Outstanding, Intrinsic Value | 0 | ' |
Employee Stock Option [Member] | ' | ' |
NOTE 4 - STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 50,000 | 25,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $0.08 | $0.10 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $0.06 | $0.08 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 3,168 | 1,987 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.72% | 1.41% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 112.00% | 111.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '5 years | '5 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period (in Shares) | ' | 1,386,946 |
Allocated Share-based Compensation Expense | $9,668 | $12,487 |
Director [Member] | ' | ' |
NOTE 4 - STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' |
Stock Issued During Period, Shares, Issued for Services (in Shares) | ' | 50,000 |
NOTE_4_STOCKHOLDERS_EQUITY_Det1
NOTE 4 - STOCKHOLDERS' EQUITY (Details) - Schedule of Share Based Compensation (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Options and Warrants [Member] | ' |
NOTE 4 - STOCKHOLDERS' EQUITY (Details) - Schedule of Share Based Compensation [Line Items] | ' |
Balance, December 31, 2012 (in Shares) | 492,500 |
Granted (in Shares) | 50,000 |
Expired (in Shares) | 0 |
Balance, September 30, 2013 (in Shares) | 542,500 |
Weighted-Average Exercise Price [Member] | ' |
NOTE 4 - STOCKHOLDERS' EQUITY (Details) - Schedule of Share Based Compensation [Line Items] | ' |
Balance, December 31, 2012 | 0.21 |
Granted | 0.08 |
Expired | 0 |
Balance, September 30, 2013 | 0.19 |
Weighted-average fair value of options granted during the nine months ended September 30, 2013 | 0.06 |
Minimum [Member] | Exercise Price Range [Member] | ' |
NOTE 4 - STOCKHOLDERS' EQUITY (Details) - Schedule of Share Based Compensation [Line Items] | ' |
Balance, December 31, 2012 | 0.1 |
Granted | 0.08 |
Expired | 0 |
Balance, September 30, 2013 | 0.08 |
Maximum [Member] | Exercise Price Range [Member] | ' |
NOTE 4 - STOCKHOLDERS' EQUITY (Details) - Schedule of Share Based Compensation [Line Items] | ' |
Balance, December 31, 2012 | 0.26 |
Granted | 0.08 |
Expired | 0 |
Balance, September 30, 2013 | 0.26 |