Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 14-May-14 | |
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 | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $1,338,484 | $1,376,822 |
Investment in available for sale securities | 22,961 | 22,734 |
Notes receivable | 404,000 | 402,000 |
Accounts receivable, net of allowance for doubtful accounts of $6,489 at March 31, 2014 and $10,100 at December 31, 2013 | 86,211 | 57,233 |
Inventory | 37,656 | 28,237 |
Advance to hotels | 60,574 | 46,418 |
Prepaid expenses | 10,209 | 13,248 |
Total Current Assets | 1,960,095 | 1,946,692 |
PROPERTY AND EQUIPMENT | ' | ' |
Property and equipment, net of accumulated depreciation of $35,849 at March 31, 2014 and $32,076 at December 31, 2013 | 100,833 | 100,480 |
NOTE RECEIVABLE, non-performing | 372,260 | 399,863 |
INVESTMENT IN REAL PROPERTY TAX LIENS | 13,422 | 13,422 |
DEPOSITS | 2,933 | 2,933 |
Total Assets | 2,449,543 | 2,463,390 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 32,601 | 15,012 |
Accrued liabilities | 42,683 | 75,633 |
Customer deposits | 0 | 4,313 |
Total Current Liabilities | 75,284 | 94,958 |
Total Liabilities | 75,284 | 94,958 |
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 March 31, 2014 and 24,107,865 at December 31, 2013 | 24,108 | 24,108 |
Additional paid-in capital | 34,198,413 | 34,195,344 |
Accumulated deficit | -31,848,489 | -31,851,020 |
Accumulated other comprehensive income | 227 | 0 |
Total Stockholders' Equity | 2,374,259 | 2,368,432 |
Total Liabilities and Stockholders' Equity | $2,449,543 | $2,463,390 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Allowance for doubtful accounts (in Dollars) | $6,489 | $10,100 |
Accumulated depreciation (in Dollars) | $35,849 | $32,076 |
Preferred stock par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares outstanding | 24,107,865 | 24,107,865 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
REVENUE | $182,559 | $138,399 |
COST OF REVENUE | 102,312 | 70,693 |
GROSS MARGIN | 80,247 | 67,706 |
INVESTMENT INCOME | 14,336 | 2,229 |
TOTAL GROSS MARGIN AND INVESTMENT INCOME | 94,583 | 69,935 |
OPERATING EXPENSES | ' | ' |
Selling, general and administrative expense, including non-cash compensation of $3,069 and $0 respectively | 79,687 | 86,906 |
Research and development expense | 12,365 | 38,076 |
Net Operating Expenses | 92,052 | 124,982 |
Net Income (Loss) | 2,531 | -55,047 |
Other Comprehensive Income | ' | ' |
Change in unrealized gain | 227 | 0 |
Comprehensive Income (Loss) | $2,758 | ($55,047) |
Basic Income (Loss) Per Common Share (in Dollars per share) | $0 | $0 |
Diluted Income (Loss) Per Common Share (in Dollars per share) | $0 | $0 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) (Parentheticals) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Selling, general and administrative expense, non-cash compensation | $3,069 | $0 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income (loss) | $2,531 | ($55,047) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 3,774 | 5,179 |
Non-cash compensation expense | 3,069 | 0 |
Interest accrued on notes receivable | -2,000 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -28,978 | 25,430 |
Inventory | -9,419 | -17,065 |
Advance to hotels | -14,156 | 0 |
Prepaid expenses | 3,039 | 2,972 |
Accounts payable | 17,589 | 7,940 |
Accrued liabilities | -32,950 | -36,260 |
Customer deposits | -4,313 | 0 |
Net Cash Used In Operating Activities | -61,814 | -66,851 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Purchase of property and equipment | -4,127 | -1,371 |
Proceeds from collection of note receivable, non-performing | 27,603 | 12,603 |
Net Cash Provided by Investing Activities | 23,476 | 11,232 |
Net Decrease in Cash | -38,338 | -55,619 |
Cash and cash equivalents at Beginning of Period | 1,376,822 | 1,962,572 |
Cash and cash equivalents at End of Period | $1,338,484 | $1,906,953 |
NOTE_1_BASIS_OF_PRESENTATION_A
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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, 2013 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 months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2014. | |||||||||
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. | |||||||||
Investments in Debt and Equity Securities Available for Sale – Debt and equity securities available for sale include securities that can be sold at any time based upon needs or market conditions. Available for sale securities are accounted for at fair value, with unrealized gains and losses on these securities, net of income tax provisions, reflected in stockholders’ equity as accumulated other comprehensive income. | |||||||||
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 7% 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. The inventory is purchased as finished goods and is valued using the first in, first out method. | |||||||||
Advances to Hotels – The Company makes advances to hotels for their purchases of alcoholic beverages. The hotels’ alcoholic beverages are placed in the Company’s refreshment centers and the advances are settled at the date the hotel customers purchases the beverages from the refreshment centers. | |||||||||
Notes Receivable - The notes receivable are stated at the historical carrying amount and are evaluated for impairment. When projections indicate that the carrying value of the note is not recoverable, the carrying value will be reduced by the estimated excess of the carrying value over the projected discounted cash flows. No impairment was deemed necessary during 2014 or 2013. The Company has evaluated the collectability of current notes receivable and believes the notes are realizable as they 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 notes 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 notes receivable at March 31, 2014 and December 31, 2013. Except the carrying amount of the current notes receivable approximates their fair value because of their short-term maturities. However, one of the notes has been classified as long term (see Note 3). | |||||||||
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 March 31, 2014 and December 31, 2013. | |||||||||
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 months ended March 31, 2014 and 2013: | |||||||||
For the three months ended March 31, | |||||||||
2014 | 2013 | ||||||||
Net income (loss) | $ | 2,531 | $ | (55,047 | ) | ||||
Basic weighted-average common shares outstanding | 24,107,865 | 24,057,865 | |||||||
Effect of dilutive securities | |||||||||
Stock options and warrants | 5,238 | - | |||||||
Diluted weighted-average common shares outstanding | 24,113,103 | 24,057,865 | |||||||
Basic income (loss) per share | $ | - | $ | - | |||||
Diluted income (loss) per share | $ | - | $ | - | |||||
During the three months ended March 31, 2014 and 2013, there were 292,500 and 492,500 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 | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||||||
Cost and Equity Method Investments Disclosure [Text Block] | ' | ||||||||||||||||
NOTE 2 - INVESTMENTS | |||||||||||||||||
Investment in Real Property Tax Liens – At March 31, 2014, the Company held $13,422 of real property tax liens from various municipalities in New Jersey. During the three months ended March 31, 2014 and 2013, the Company did not purchase any additional tax lien products and did not collect any 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% 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. | |||||||||||||||||
Investment in Available for Sale Debt Securities | |||||||||||||||||
Debt Securities | Cost Basis | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||
Corporate Debt Securities | $ | 22,734 | $ | 227 | $ | - | $ | 22,961 | |||||||||
The corporate debt securities mature on August 31, 2018 and May 29, 2020. | |||||||||||||||||
NOTE_3_NOTE_RECEIVABLE
NOTE 3 - NOTE RECEIVABLE | 3 Months Ended |
Mar. 31, 2014 | |
Receivables [Abstract] | ' |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' |
NOTE 3 - NOTES RECEIVABLE | |
Non-Performing 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. 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 $372,260 and $399,863 at March 31, 2014 and December 31, 2013, respectively. | |
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 three months ended March 31, 2014 or 2013. | |
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 at March 31, 2014 and December 31, 2013 was approximately $414,000 and $414,000, respectively. | |
Notes 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. | |
On December 26, 2013, the Company loaned $250,000 to an individual 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. | |
Accrued interest on notes receivable was $4,000 and $2,000 at March 31, 2014 and December 31, 2013, respectively, and was included in notes receivable in the accompanying condensed consolidated balance sheets. | |
NOTE_4_STOCKHOLDERS_EQUITY
NOTE 4 - STOCKHOLDERS' EQUITY | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | ||||||||||||||
NOTE 4 - STOCKHOLDERS’ EQUITY | |||||||||||||||
During the three months ended March 31, 2014, the Company granted options to purchase 75,000 shares of common stock to employees for services rendered. These options, which vested immediately, have an exercise price of $0.05 per share and are exercisable through March 24, 2019. These options were valued at approximately $0.04 per share, or $3,069, using the Black-Scholes option pricing model with the following assumptions: risk free interest rate of 1.76%, dividend yield of 0.0%, volatility of 117% and expected life of 5 years. The pricing model utilized the full life of the options as the Company generally has a low turnover rate of its employees. | |||||||||||||||
During the three months ended March 31, 2014 and 2013, 25,000 and 695 options to purchase shares of common stock expired, respectively. | |||||||||||||||
Stock-based compensation expense relating to stock options of $3,069 and $0 was recognized during the three months ended March 31, 2014 and 2013, respectively. There was no unrecognized compensation related to stock options at March 31, 2014. A summary of stock option and warrant activity for the three months ended March 31, 2014 is as follows: | |||||||||||||||
Options and Warrants | Exercise Price Range | Weighted - Average Exercise Price | |||||||||||||
Balance, December 31, 2013 | 342,500 | $ | 0.1 | - | 0.26 | $ | 0.14 | ||||||||
Granted | 75,000 | 0.05 | - | 0.05 | 0.05 | ||||||||||
Expired | (25,000 | ) | 0.14 | - | 0.14 | 0.14 | |||||||||
Balance, March 31, 2014 | 392,500 | 0.05 | - | 0.26 | 0.12 | ||||||||||
Exercisable, March 31, 2014 | 392,500 | $ | 0.05 | - | 0.26 | $ | 0.12 | ||||||||
Weighted-average fair value of options granted during | $ | 0.04 | |||||||||||||
the three months ended March 31, 2014 | |||||||||||||||
All of the options and warrants were exercisable at March 31, 2014. At March 31, 2014, the intrinsic value for the options and warrants outstanding was $1,750. | |||||||||||||||
NOTE_5_FAIR_VALUE_OF_FINANCIAL
NOTE 5 - FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||
NOTE 5 – FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||
Generally accepted accounting principles define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, a hierarchy has been established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: | |||||||||||||||||
Level 1 – Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||
Level 2 – Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data. | |||||||||||||||||
Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. | |||||||||||||||||
The Company uses fair value to measure certain assets and liabilities on a recurring basis when fair value is the primary measure for accounting. Fair value is also used on a nonrecurring basis to measure certain assets when applying lower of cost or market accounting or when adjusting carrying values. Fair value is also used when evaluating impairment on certain assets, including notes receivable and long-lived assets. The following table sets forth the estimated fair values of the Company’s financial assets as of March 31, 2014 and December 31, 2013: | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
Quoted Prices | |||||||||||||||||
in | |||||||||||||||||
Active | |||||||||||||||||
Markets | Significant | ||||||||||||||||
for Identical | Significant | Unobservable | |||||||||||||||
Assets | Observable Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
31-Mar-14 | |||||||||||||||||
Assets: | |||||||||||||||||
Debt securities available for sale | $ | 22,961 | $ | - | $ | 22,961 | $ | - | |||||||||
Real property tax liens | 13,422 | - | - | 13,422 | |||||||||||||
Notes receivable | 404,000 | - | - | 404,000 | |||||||||||||
Notes receivable, non-performing | 372,000 | - | - | 372,000 | |||||||||||||
Total | $ | 812,383 | $ | - | $ | 22,961 | $ | 789,422 | |||||||||
31-Dec-13 | |||||||||||||||||
Assets: | |||||||||||||||||
Debt securities available for sale | $ | 22,734 | $ | - | $ | 22,734 | $ | - | |||||||||
Real property tax liens | 13,422 | - | - | 13,422 | |||||||||||||
Notes receivable | 402,000 | - | - | 402,000 | |||||||||||||
Notes receivable, non-performing | 414,000 | - | - | 414,000 | |||||||||||||
Total | $ | 852,156 | $ | - | $ | 22,734 | $ | 829,422 | |||||||||
Following is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs: | |||||||||||||||||
Real | Notes Receivable | ||||||||||||||||
Property Tax | Notes | Non- | |||||||||||||||
Liens | Receivable | Performing | |||||||||||||||
Balance - December 31, 2012 | $ | 26,267 | $ | - | $ | 414,000 | |||||||||||
Purchases | 400,000 | - | |||||||||||||||
Collections | (12,845 | ) | - | - | |||||||||||||
Included in earnings | - | 2,000 | - | ||||||||||||||
Balance - December 31, 2013 | 13,422 | 402,000 | 414,000 | ||||||||||||||
Included in earnings | - | 2,000 | |||||||||||||||
Collections | - | - | (15,000 | ) | |||||||||||||
Change in estimated future cash flow | - | - | (27,000 | ) | |||||||||||||
Balance - March 31, 2014 | $ | 13,422 | $ | 404,000 | $ | 372,000 | |||||||||||
NOTE_6_CONCENTRATION_OF_CREDIT
NOTE 6 - CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS | 3 Months Ended |
Mar. 31, 2014 | |
Risks and Uncertainties [Abstract] | ' |
Concentration Risk Disclosure [Text Block] | ' |
NOTE 6 – CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS | |
The Company's historical revenues and receivables have been derived primarily from the lodging industry. The Company offers credit terms in connection with its sale of products from refreshment centers. The Company performs ongoing credit evaluations of its customers' financial condition and does not require collateral from its customers. The Company maintains an allowance for uncollectible accounts receivable based upon a percentage of accounts receivable at year end. | |
At March 31, 2014, the Company had accounts receivable from one customer accounted for 47% of total accounts receivable. | |
During the three months ended March 31, 2014, revenues from one customer accounted for 35% of total revenues and 28% from a second customer. | |
During the three months ended March 31, 2013, revenues from one customer accounted for 39% of total revenues. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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, 2013 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 months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2014. | |||||||||
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. | |||||||||
Marketable Securities, Policy [Policy Text Block] | ' | ||||||||
Investments in Debt and Equity Securities Available for Sale – Debt and equity securities available for sale include securities that can be sold at any time based upon needs or market conditions. Available for sale securities are accounted for at fair value, with unrealized gains and losses on these securities, net of income tax provisions, reflected in stockholders’ equity as accumulated other comprehensive income. | |||||||||
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 7% 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. The inventory is purchased as finished goods and is valued using the first in, first out method. | |||||||||
Receivables, Policy [Policy Text Block] | ' | ||||||||
Advances to Hotels – The Company makes advances to hotels for their purchases of alcoholic beverages. The hotels’ alcoholic beverages are placed in the Company’s refreshment centers and the advances are settled at the date the hotel customers purchases the beverages from the refreshment centers. | |||||||||
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | ' | ||||||||
Notes Receivable - The notes receivable are stated at the historical carrying amount and are evaluated for impairment. When projections indicate that the carrying value of the note is not recoverable, the carrying value will be reduced by the estimated excess of the carrying value over the projected discounted cash flows. No impairment was deemed necessary during 2014 or 2013. The Company has evaluated the collectability of current notes receivable and believes the notes are realizable as they 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 notes 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 notes receivable at March 31, 2014 and December 31, 2013. Except the carrying amount of the current notes receivable approximates their fair value because of their short-term maturities. However, one of the notes has been classified as long term (see Note 3). | |||||||||
Investment, 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 March 31, 2014 and December 31, 2013. | |||||||||
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 months ended March 31, 2014 and 2013: | |||||||||
For the three months ended March 31, | |||||||||
2014 | 2013 | ||||||||
Net income (loss) | $ | 2,531 | $ | (55,047 | ) | ||||
Basic weighted-average common shares outstanding | 24,107,865 | 24,057,865 | |||||||
Effect of dilutive securities | |||||||||
Stock options and warrants | 5,238 | - | |||||||
Diluted weighted-average common shares outstanding | 24,113,103 | 24,057,865 | |||||||
Basic income (loss) per share | $ | - | $ | - | |||||
Diluted income (loss) per share | $ | - | $ | - | |||||
During the three months ended March 31, 2014 and 2013, there were 292,500 and 492,500 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) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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 months ended March 31, 2014 and 2013: | ||||||||
For the three months ended March 31, | |||||||||
2014 | 2013 | ||||||||
Net income (loss) | $ | 2,531 | $ | (55,047 | ) | ||||
Basic weighted-average common shares outstanding | 24,107,865 | 24,057,865 | |||||||
Effect of dilutive securities | |||||||||
Stock options and warrants | 5,238 | - | |||||||
Diluted weighted-average common shares outstanding | 24,113,103 | 24,057,865 | |||||||
Basic income (loss) per share | $ | - | $ | - | |||||
Diluted income (loss) per share | $ | - | $ | - |
NOTE_2_INVESTMENTS_Tables
NOTE 2 - INVESTMENTS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | 'Investment in Available for Sale Debt Securities | ||||||||||||||||
Debt Securities | Cost Basis | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||
Corporate Debt Securities | $ | 22,734 | $ | 227 | $ | - | $ | 22,961 |
NOTE_4_STOCKHOLDERS_EQUITY_Tab
NOTE 4 - STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | 'A summary of stock option and warrant activity for the three months ended March 31, 2014 is as follows: | ||||||||||||||
Options and Warrants | Exercise Price Range | Weighted - Average Exercise Price | |||||||||||||
Balance, December 31, 2013 | 342,500 | $ | 0.1 | - | 0.26 | $ | 0.14 | ||||||||
Granted | 75,000 | 0.05 | - | 0.05 | 0.05 | ||||||||||
Expired | (25,000 | ) | 0.14 | - | 0.14 | 0.14 | |||||||||
Balance, March 31, 2014 | 392,500 | 0.05 | - | 0.26 | 0.12 | ||||||||||
Exercisable, March 31, 2014 | 392,500 | $ | 0.05 | - | 0.26 | $ | 0.12 | ||||||||
Weighted-average fair value of options granted during | $ | 0.04 | |||||||||||||
the three months ended March 31, 2014 | |||||||||||||||
NOTE_5_FAIR_VALUE_OF_FINANCIAL1
NOTE 5 - FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | 'The following table sets forth the estimated fair values of the Company’s financial assets as of March 31, 2014 and December 31, 2013: | ||||||||||||||||
Quoted Prices | |||||||||||||||||
in | |||||||||||||||||
Active | |||||||||||||||||
Markets | Significant | ||||||||||||||||
for Identical | Significant | Unobservable | |||||||||||||||
Assets | Observable Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
31-Mar-14 | |||||||||||||||||
Assets: | |||||||||||||||||
Debt securities available for sale | $ | 22,961 | $ | - | $ | 22,961 | $ | - | |||||||||
Real property tax liens | 13,422 | - | - | 13,422 | |||||||||||||
Notes receivable | 404,000 | - | - | 404,000 | |||||||||||||
Notes receivable, non-performing | 372,000 | - | - | 372,000 | |||||||||||||
Total | $ | 812,383 | $ | - | $ | 22,961 | $ | 789,422 | |||||||||
31-Dec-13 | |||||||||||||||||
Assets: | |||||||||||||||||
Debt securities available for sale | $ | 22,734 | $ | - | $ | 22,734 | $ | - | |||||||||
Real property tax liens | 13,422 | - | - | 13,422 | |||||||||||||
Notes receivable | 402,000 | - | - | 402,000 | |||||||||||||
Notes receivable, non-performing | 414,000 | - | - | 414,000 | |||||||||||||
Total | $ | 852,156 | $ | - | $ | 22,734 | $ | 829,422 | |||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | 'Following is a summary of changes in the condensed consolidated balance sheet line items measured using level 3 inputs: | ||||||||||||||||
Real | Notes Receivable | ||||||||||||||||
Property Tax | Notes | Non- | |||||||||||||||
Liens | Receivable | Performing | |||||||||||||||
Balance - December 31, 2012 | $ | 26,267 | $ | - | $ | 414,000 | |||||||||||
Purchases | 400,000 | - | |||||||||||||||
Collections | (12,845 | ) | - | - | |||||||||||||
Included in earnings | - | 2,000 | - | ||||||||||||||
Balance - December 31, 2013 | 13,422 | 402,000 | 414,000 | ||||||||||||||
Included in earnings | - | 2,000 | |||||||||||||||
Collections | - | - | (15,000 | ) | |||||||||||||
Change in estimated future cash flow | - | - | (27,000 | ) | |||||||||||||
Balance - March 31, 2014 | $ | 13,422 | $ | 404,000 | $ | 372,000 |
NOTE_1_BASIS_OF_PRESENTATION_A2
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) (Options and Warrants [Member]) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
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 | 292,500 | 492,500 |
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 | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule of Earnings per Share [Abstract] | ' | ' |
Net income (loss) (in Dollars) | $2,531 | ($55,047) |
Basic weighted-average common shares outstanding | 24,107,865 | 24,057,865 |
Effect of dilutive securities | ' | ' |
Stock options and warrants | 5,238 | 0 |
Diluted weighted-average common shares outstanding | 24,113,103 | 24,057,865 |
Basic income (loss) per share (in Dollars per share) | $0 | $0 |
Diluted income (loss) per share (in Dollars per share) | $0 | $0 |
NOTE_2_INVESTMENTS_Details
NOTE 2 - INVESTMENTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Investment in Real Property Tax Liens [Member] | Investment in Real Property Tax Liens [Member] | Investment in Real Property Tax Liens [Member] | |||
Minimum [Member] | Maximum [Member] | ||||
NOTE 2 - INVESTMENTS (Details) [Line Items] | ' | ' | ' | ' | ' |
Other Long-term Investments (in Dollars) | $13,422 | $13,422 | $13,422 | ' | ' |
Investment Interest Rate | ' | ' | 18.00% | ' | ' |
Investment in real property tax liens, penalty rate | ' | ' | ' | 2.00% | 6.00% |
NOTE_2_INVESTMENTS_Details_Sch
NOTE 2 - INVESTMENTS (Details) - Schedule of Available-for-sale Securities Reconciliation (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
NOTE 2 - INVESTMENTS (Details) - Schedule of Available-for-sale Securities Reconciliation [Line Items] | ' |
Corporate Debt Securities | $22,961 |
Cost Basis [Member] | ' |
NOTE 2 - INVESTMENTS (Details) - Schedule of Available-for-sale Securities Reconciliation [Line Items] | ' |
Corporate Debt Securities | 22,734 |
Unrealized Gains [Member] | ' |
NOTE 2 - INVESTMENTS (Details) - Schedule of Available-for-sale Securities Reconciliation [Line Items] | ' |
Corporate Debt Securities | 227 |
Unrealized Losses [Member] | ' |
NOTE 2 - INVESTMENTS (Details) - Schedule of Available-for-sale Securities Reconciliation [Line Items] | ' |
Corporate Debt Securities | $0 |
NOTE_3_NOTE_RECEIVABLE_Details
NOTE 3 - NOTE RECEIVABLE (Details) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Note Receivable, Non-Performing Loan [Member] | Note Receivable, Non-Performing Loan [Member] | Note Receivable, Non-Performing Loan [Member] | Note Receivable, Non-Performing Loan [Member] | Note Receivable, Non-Performing Loan [Member] | Note Receivable, Non-Performing Loan [Member] | Note Receivable June 25, 2013 [Member] | Note Receivable December 26, 2013 [Member] | ||||
NOTE 3 - NOTE RECEIVABLE (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans and Leases Receivable, Collateral for Secured Borrowings | ' | ' | ' | ' | ' | ' | ' | $500,000 | ' | ' | ' |
Loan receivable, interest rate | ' | ' | ' | ' | ' | ' | 18.00% | 10.00% | ' | 12.00% | 12.00% |
Shares of common stock issued with loan receivable (in Shares) | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' |
Loan receivable, interest rate after reduction | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' |
Proceeds from Collection of Notes Receivable | 27,603 | 12,603 | ' | ' | ' | 25,069 | ' | ' | ' | ' | ' |
Notes, Loans and Financing Receivable, Net, Noncurrent | 372,260 | ' | 399,863 | 372,260 | ' | ' | ' | ' | 399,863 | ' | ' |
Provision for Loan and Lease Losses | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' |
Notes Receivable, Fair Value Disclosure | 404,000 | ' | 402,000 | 414,000 | ' | ' | ' | ' | 414,000 | ' | ' |
Payments to Acquire Notes Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | 250,000 |
Loan Receivable, Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '1 year |
Interest Receivable, Current | ' | $4,000 | $2,000 | ' | ' | ' | ' | ' | ' | ' | ' |
NOTE_4_STOCKHOLDERS_EQUITY_Det
NOTE 4 - STOCKHOLDERS' EQUITY (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
NOTE 4 - STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' |
Share-based Compensation | $3,069 | $0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Warrants, Outstanding, Intrinsic Value | 1,750 | ' |
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) | 75,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 'vested immediately | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $0.05 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $0.04 | ' |
Share-based Compensation by Share-based Payment Award, Options, Fair Value Grants in Period | 3,069 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.76% | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 117.00% | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '5 years | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period (in Shares) | 25,000 | 695 |
Share-based Compensation | 3,069 | 0 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $0 | ' |
NOTE_4_STOCKHOLDERS_EQUITY_Det1
NOTE 4 - STOCKHOLDERS' EQUITY (Details) - Schedule of Share-based Compensation, Activity (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Options and Warrants [Member] | ' |
NOTE 4 - STOCKHOLDERS' EQUITY (Details) - Schedule of Share-based Compensation, Activity [Line Items] | ' |
Balance, December 31, 2013 (in Shares) | 342,500 |
Granted (in Shares) | 75,000 |
Expired (in Shares) | -25,000 |
Balance, March 31, 2014 (in Shares) | 392,500 |
Exercisable, March 31, 2014 (in Shares) | 392,500 |
Exercise Price Range [Member] | Minimum [Member] | ' |
NOTE 4 - STOCKHOLDERS' EQUITY (Details) - Schedule of Share-based Compensation, Activity [Line Items] | ' |
Balance, December 31, 2013 | 0.1 |
Granted | 0.05 |
Expired | 0.14 |
Balance, March 31, 2014 | 0.05 |
Exercisable, March 31, 2014 | 0.05 |
Exercise Price Range [Member] | Maximum [Member] | ' |
NOTE 4 - STOCKHOLDERS' EQUITY (Details) - Schedule of Share-based Compensation, Activity [Line Items] | ' |
Balance, December 31, 2013 | 0.26 |
Granted | 0.05 |
Expired | 0.14 |
Balance, March 31, 2014 | 0.26 |
Exercisable, March 31, 2014 | 0.26 |
Weighted-Average Exercise Price [Member] | ' |
NOTE 4 - STOCKHOLDERS' EQUITY (Details) - Schedule of Share-based Compensation, Activity [Line Items] | ' |
Balance, December 31, 2013 | 0.14 |
Granted | 0.05 |
Expired | 0.14 |
Balance, March 31, 2014 | 0.12 |
Exercisable, March 31, 2014 | 0.12 |
Weighted-average fair value of options granted during the three months ended March 31, 2014 | 0.04 |
NOTE_5_FAIR_VALUE_OF_FINANCIAL2
NOTE 5 - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Schedule of Fair Value, Assets Measured on Recurring Basis (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Assets: | ' | ' |
Debt securities available for sale | $22,961 | $22,734 |
Real property tax liens | 13,422 | 13,422 |
Notes receivable | 404,000 | 402,000 |
Notes receivable, non-performing | 372,000 | 414,000 |
Total | 812,383 | 852,156 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Debt securities available for sale | 0 | 0 |
Real property tax liens | 0 | 0 |
Notes receivable | 0 | 0 |
Notes receivable, non-performing | 0 | 0 |
Total | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Debt securities available for sale | 22,961 | 22,734 |
Real property tax liens | 0 | 0 |
Notes receivable | 0 | 0 |
Notes receivable, non-performing | 0 | 0 |
Total | 22,961 | 22,734 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Debt securities available for sale | 0 | 0 |
Real property tax liens | 13,422 | 13,422 |
Notes receivable | 404,000 | 402,000 |
Notes receivable, non-performing | 372,000 | 414,000 |
Total | $789,422 | $829,422 |
NOTE_5_FAIR_VALUE_OF_FINANCIAL3
NOTE 5 - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Notes Receivable [Member] | Notes Receivable [Member] | Investments [Member] | Investments [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' |
Balance | $414,000 | $414,000 | $26,267 | $13,422 | $402,000 | ' |
Purchases | ' | ' | ' | ' | ' | 400,000 |
Collections | -15,000 | ' | -12,845 | ' | ' | ' |
Change in estimated future cash flow | -27,000 | ' | ' | ' | ' | ' |
Included in earnings | ' | ' | ' | ' | 2,000 | 2,000 |
Balance | $372,000 | $414,000 | $13,422 | $13,422 | $404,000 | $402,000 |
NOTE_6_CONCENTRATION_OF_CREDIT1
NOTE 6 - CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS (Details) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | |
Customer A [Member] | Customer B [Member] | Credit Concentration Risk [Member] | Customer Concentration Risk [Member] | |
Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | Sales Revenue, Goods, Net [Member] | |
Sales Revenue, Goods, Net [Member] | Sales Revenue, Goods, Net [Member] | |||
NOTE 6 - CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS (Details) [Line Items] | ' | ' | ' | ' |
Concentration Risk, Customer | ' | ' | 'one customer | 'one customer |
Concentration Risk, Percentage | 35.00% | 28.00% | 47.00% | 39.00% |