Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 18, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | EROOMSYSTEM TECHNOLOGIES INC | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 24,167,865 | ||
Entity Public Float | $1,099,802 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 1110361 | ||
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-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ||
Cash and cash equivalents | $1,453,971 | $1,376,822 |
Restricted cash | 61,350 | 0 |
Investment in available for sale securities | 24,455 | 22,734 |
Notes receivable | 702,500 | 402,000 |
Accounts receivable, net of allowance for doubtful accounts of $5,101 and $10,100 | 67,771 | 57,233 |
Inventory | 79,191 | 28,237 |
Advance to hotels | 74,370 | 46,418 |
Prepaid expenses | 111,064 | 13,248 |
Total Current Assets | 2,574,672 | 1,946,692 |
PROPERTY AND EQUIPMENT | ||
Property and equipment, net of accumulated depreciation of $15,409 and $32,076 | 63,287 | 100,480 |
NOTE RECEIVABLE, non-performing | 0 | 399,863 |
INVESTMENT IN REAL PROPERTY TAX LIENS | 22,688 | 13,422 |
DEPOSITS | 2,933 | 2,933 |
Total Assets | 2,663,580 | 2,463,390 |
CURRENT LIABILITIES | ||
Accounts payable | 22,783 | 15,012 |
Accrued liabilities | 87,998 | 75,633 |
Securities borrowed | 60,959 | 0 |
Customer deposits | 0 | 4,313 |
Total Current Liabilities | 171,740 | 94,958 |
Total Liabilities | 171,740 | 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 24,167,865 and 24,107,865 | 24,168 | 24,108 |
Additional paid-in capital | 34,203,953 | 34,195,344 |
Accumulated deficit | -31,738,002 | -31,851,020 |
Accumulated other comprehensive income | 1,721 | 0 |
Total Stockholders' Equity | 2,491,840 | 2,368,432 |
Total Liabilities and Stockholders' Equity | $2,663,580 | $2,463,390 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance for doubtful accounts (in Dollars) | $5,101 | $10,100 |
Accumulated depreciation (in Dollars) | $15,409 | $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 | 24,167,865 | 24,107,865 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUE | $794,461 | $600,563 |
COST OF REVENUE | 401,907 | 330,650 |
GROSS MARGIN | 392,554 | 269,913 |
OPERATING EXPENSES | ||
Selling, general and administrative expense, including non-cash compensation of $8,669 and $10,886 | 436,021 | 432,947 |
Research and development expense | 43,896 | 160,357 |
Net Operating Expenses | 479,917 | 593,304 |
OTHER INCOME | ||
Investment Income | 200,381 | 24,728 |
Net Income (Loss) | 113,018 | -298,663 |
Other Comprehensive Income (Loss) | ||
Unrealized holding gain (loss) | 16,579 | 0 |
Reclassification to realized gain (included in net income) | -14,858 | 0 |
Comprehensive Income (Loss) | $114,739 | ($298,663) |
Basic Income (Loss) Per Common Share (in Dollars per share) | $0 | ($0.01) |
Diluted Income (Loss) Per Common Share (in Dollars per share) | $0 | ($0.01) |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parentheticals) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Selling, general and administrative expense, non-cash compensation | $8,669 | $10,886 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Under Review) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Beginning of Year at Dec. 31, 2012 | $24,058 | $34,184,508 | ($31,552,357) | $0 | |
Balance at Beginning of Year (in Shares) at Dec. 31, 2012 | 24,057,865 | ||||
Issuance to directors and employee for services (in Shares) | 50,000 | ||||
Unrealized loss on marketable securities | 0 | 0 | |||
Net income/(Loss) | -298,663 | -298,663 | |||
Issuance to directors for services | 50 | 6,450 | |||
Issuance of shares and options to employees | 4,386 | ||||
Balance at end of year at Dec. 31, 2013 | 24,108 | 34,195,344 | -31,851,020 | 0 | 2,368,432 |
Balance at end of year (in Shares) at Dec. 31, 2013 | 24,107,865 | 24,107,865 | |||
Issuance to directors and employee for services (in Shares) | 60,000 | ||||
Unrealized loss on marketable securities | 1,721 | 16,579 | |||
Net income/(Loss) | 113,018 | 113,018 | |||
Issuance to directors for services | 60 | 4,950 | |||
Issuance of shares and options to employees | 3,659 | ||||
Balance at end of year at Dec. 31, 2014 | $24,168 | $34,203,953 | ($31,738,002) | $1,721 | $2,491,840 |
Balance at end of year (in Shares) at Dec. 31, 2014 | 24,167,865 | 24,167,865 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $113,018 | ($298,663) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 10,449 | 16,986 |
Accrued interest receivable | -500 | -2,000 |
Gain on sale of marketable securities | -14,858 | 0 |
Gain (loss) on sale of equipment | -850 | 5,392 |
Loss on impairment of equipment | 33,645 | 46,440 |
Unrealized loss on investment in certificate of deposit | 0 | 2,266 |
Non-cash compensation expense | 8,669 | 10,886 |
Changes in operating assets and liabilities: | ||
Restricted cash | -61,350 | 0 |
Accounts receivable | -10,538 | 9,367 |
Inventory | -50,954 | -15,001 |
Advance to hotels | -27,952 | 0 |
Prepaid expenses | -97,816 | 9,393 |
Accounts payable | 7,771 | -3,670 |
Accrued liabilities | 12,365 | -1,778 |
Borrowed shares | 60,959 | 0 |
Customer deposits | -4,313 | 0 |
Net Cash Used In Operating Activities | -22,255 | -220,382 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | -6,901 | -3,463 |
Purchase of investments in real property tax liens | -9,266 | 0 |
Purchase of marketable securities | -25,000 | 0 |
Proceeds from sale of equipment | 850 | 0 |
Purchase of certificate of deposit | 0 | -25,000 |
Advances made under notes receivable | -700,000 | -400,000 |
Proceeds from collection of note receivable | 400,000 | 0 |
Proceeds from sale of marketable securities | 39,858 | 0 |
Proceeds from collections of real property tax liens | 0 | 12,845 |
Return of deposit | 0 | 250 |
Proceeds from collection of note receivable, non-performing | 399,863 | 50,000 |
Net Cash Provided by (Used In) Investing Activities | 99,404 | -365,368 |
Net Increase (Decrease) in Cash | 77,149 | -585,750 |
Cash and cash equivalents at Beginning of Period | 1,376,822 | 1,962,572 |
Cash and cash equivalents at End of Period | $1,453,971 | $1,376,822 |
NOTE_1_BASIS_OF_PRESENTATION_A
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Organization, Nature of Operations and Principles of Consolidation - eRoomSystem Technologies, Inc. is a Nevada corporation. eRoomSystem Technologies, Inc. and its subsidiaries, collectively referred to as the "Company," provide a complete line of amenity services for hotels. | |||||||||
The accompanying consolidated financial statements include the accounts of eRoomSystem Technologies, Inc. and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. | |||||||||
Use of Estimates in the Preparation of Financial Statements - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. | |||||||||
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. At December 31, 2014 and 2013, the Company held cash in excess of federally insured limits of $316,075 and $510,043, respectively. | |||||||||
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. | |||||||||
Securities Borrowed - Securities borrowed are carried at the amounts of cash collateral received in connection with the transactions and accounted for as collateralized financing transactions. In connection with trading activities, we borrow securities to cover short sales. When we borrow securities, we generally provide cash to the lender as collateral, which is reflected in our Consolidated Balance Sheet as Restricted Cash. We earn interest revenues on this cash collateral. | |||||||||
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% and 15% at December 31, 2014 and 2013 respectively, 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 maintained an inventory of refreshment centers to be placed in Hotels through September 30, 2013. During fourth quarter 2013, the refreshment centers were capitalized as property and equipment. 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 remove 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 carrying amount of the notes receivable approximates their fair value because of their short-term maturities. However, one of the notes was classified as long term for the year ended December 31, 2013 (see Note 3). | |||||||||
Investment in Real Property Tax Liens – The investments in real property tax liens are accounted for as investments in troubled debt 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 no impairment was recognized on the tax liens at December 31, 2014 and 2013. | |||||||||
Property and Equipment - Property and equipment consist primarily of eRoomServ refreshment centers and are stated at cost, less accumulated depreciation. Major additions and improvements are capitalized, while repairs and maintenance costs are expensed when incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets as follows: | |||||||||
eRoomServ refreshment centers in service | 5 - 7 years | ||||||||
Computer and office equipment | 3 - 7 years | ||||||||
Vehicles and other | 7 years | ||||||||
Depreciation expense was $10,449 and $16,986 for the years ended December 31, 2014 and 2013, respectively. On retirement, trade-in or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the statement of operations. | |||||||||
During the fourth quarter 2013, the Company determined that refreshment centers would no longer be sold to hotels, but would rather be used to replace existing refreshment centers used by the Company. As a result, the cost of refreshment centers in the amount of $92,880 was moved from inventory to property and equipment in fourth quarter 2013. In addition, the Company assessed the carrying value of these refreshment centers and determined, based on their projected future cash flows, that the refreshment centers were impaired. As a result, the carrying value of the refreshment centers was written down to their fair value, determined by their projected future cash flows, which resulted in the recognition of $46,440 of impairment expense during the year ended December 31, 2013. During the second quarter 2014, the Company determined the need to reduce the carrying value of refreshment centers installed in hotel rooms to its estimated value. As a result, the cost of refreshment centers in the amount of $70,348 was written down in the amount of $33,645. | |||||||||
Capitalized Software Costs - In accordance with FASB Accounting Standards Codification (ASC) 985, Accounting for the Costs of Computer Software to be Sold, Leased or Otherwise Marketed, development costs incurred in the research and development of new software products to be sold, leased or otherwise marketed are expensed as incurred until technological feasibility in the form of a working model has been established. Internally generated software development costs were $43,896 for the year ended December 31, 2014 and were $48,168 for the year ended December 31, 2013. The Company has charged its software development costs to research and development expense in the accompanying consolidated statements of operations. | |||||||||
Valuation of Long-Lived Assets - The carrying values of long-lived assets, including notes receivable, are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying values may not be recoverable. When such an event occurs the Company projects the undiscounted cash flows to be generated from the use of the asset and its eventual disposition over the remaining life of the asset. If projections indicate that the carrying value of the asset will not be recovered, the carrying value of the asset is reduced by the estimated excess of the carrying value over the projected discounted cash flows estimated to be generated by the asset. During second quarter 2014, the Company determined the need to reduce the carrying value of refreshment centers installed in hotel rooms to its estimated value. As a result, the Company recognized an impairment loss of $33,645 during the year ended December 31, 2014. The Company reevaluated its long-lived assets at December 31, 2014 and found they represented current estimated market value. During the fourth quarter 2013, the carrying value of refreshment centers in property and equipment was impaired and the Company recognized an impairment loss of $46,440 during the year ended December 31, 2013. | |||||||||
Revenue Recognition - The Company generates revenues from the sale of products in refreshment centers, from maintenance services and the lease of equipment. In the fiscal year ended December 31, 2013 revenue from the sale of products was $525,385, and revenue from maintenance services and the lease of equipment was $75,178. Cost of maintenance services and the lease of equipment was immaterial in 2013. There was no revenue or cost of revenue in 2014 from maintenance services and the lease of equipment in 2014. | |||||||||
Revenue from the sale of refreshments from the refreshment centers is recognized upon removal of the item from the refreshment center by the hotel guest. Maintenance revenue is recognized as the services are performed. Lease revenue is recognized over the term of the lease | |||||||||
Stock-Based Compensation - The Company has one stock-based employee compensation plan, which is described more fully in Note 8. The Company utilizes the fair value recognition provisions of FASB ASC 718, Stock Compensation. Accordingly, the Company records expense, if applicable, for (i) the unvested portion of grants issued during 2014 and 2013 and (ii) new grant issuances, both of which will be expensed over the requisite service (i.e., vesting) periods. | |||||||||
Sales and Marketing - Sales and marketing expenses include the costs of advertising, promotions, seminars, and other programs. Advertising costs are expensed as incurred. Advertising expense was $11,908 and $0 in fiscal years 2014 and 2013, respectively. | |||||||||
Research and Development – Research and development costs are expensed as incurred. | |||||||||
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. | |||||||||
Accounting for Uncertainty in Income Taxes – The Company analyzes its filing positions in all jurisdictions where it is required to file income tax returns for the open tax years in such jurisdictions. The Company provides a liability for the potential tax, penalty and interest on uncertain tax positions that are not likely to be sustained upon audit. | |||||||||
Net Loss per Common Share – Basic income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding. Diluted income (loss) per common share is computed by dividing net income (loss), 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 common share: | |||||||||
For the years ended December 31, | |||||||||
2014 | 2013 | ||||||||
Net income (loss) | $ | 113,018 | $ | (298,663 | ) | ||||
Basic weighted-average common shares outstanding | 24,139,098 | 24,082,660 | |||||||
Effect of dilutive securities | |||||||||
Stock options and warrants | 34,154 | - | |||||||
Diluted weighted-average common shares outstanding | 24,173,252 | 24,082,660 | |||||||
Basic income (loss) per share | $ | 0 | $ | (0.01 | ) | ||||
Diluted income (loss) per share | $ | 0 | $ | (0.01 | ) | ||||
As of December 31, 2014 and 2013, there were potential common stock equivalents from options and warrants of 92,500 and 342,500 respectively that were not included in the computation of diluted loss per common share because their effect would have been anti-dilutive. | |||||||||
Recent Accounting Pronouncements | |||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. Upon the effective date, the ASU replaces almost all existing revenue recognition guidance, including industry specific guidance, in United States Generally Accepted Accounting Principles. This standard is effective for fiscal years and interim reporting periods beginning after December 15, 2016. Early application is not permitted. The Standard permits the use of either the retrospective or modified retrospective (cumulative effect) transition method. The Company is currently assessing the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures upon implementation in the first quarter of fiscal year 2018. | |||||||||
Subsequent Events – The Company evaluates events subsequent to its balance sheet date for disclosure through the date the financial statements are issued. | |||||||||
NOTE_2_INVESTMENTS
NOTE 2 - INVESTMENTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||||||||||
Cost and Equity Method Investments Disclosure [Text Block] | NOTE 2 – INVESTMENTS | ||||||||||||||||
Investment in Equity Securities Available for Sale – The Company was issued 50,000 shares of stock in Blackbird Corporation in July 2008. On June 7, 2010, Blackbird entered into a share exchange with RPID later renamed Spot Mobile International Ltd (“Spot Mobile”). The 50,000 shares of common stock of Blackbird were exchanged for 1,700,000 restricted shares of common stock of Spot Mobile. The Spot Mobile shares were reverse split in October 2010 to 56,667 shares. The Company reduced the carrying value of the investment in Spot Mobile to zero by recording a $1,700 unrealized loss during the year ended December 31, 2012, which is included in other comprehensive loss. In 2013, the Company recognized the loss as a realized loss in its operations. | |||||||||||||||||
Investments in equity securities as of December 31, 2013 are summarized below: | |||||||||||||||||
Equity Securities | Cost Basis | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||
Spot Mobile | $ | - | $ | - | $ | - | $ | - | |||||||||
On the date of issuance, the fair value of BlackBird’s common stock was not determinable and the shares were valued at zero. | |||||||||||||||||
Investment in Available for Sale Debt Securities | |||||||||||||||||
Debt Securities | Cost Basis | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||
Corporate Debt Securities | $ | 22,734 | $ | 1,721 | $ | - | $ | 24,455 | |||||||||
The corporate debt securities mature on August 31, 2018 and May 29, 2020. | |||||||||||||||||
Investment in Real Property Tax Liens – At December 31, 2014, the Company held $22,688 of real property tax liens from various municipalities in New Jersey. During the year ended December 31, 2014, the Company purchased $9,266 of additional tax lien products. During the year ended December 31, 2013, the Company did not purchase any additional tax lien products and 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% 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. | |||||||||||||||||
NOTE_3_NOTE_RECEIVABLE
NOTE 3 - NOTE RECEIVABLE | 12 Months Ended |
Dec. 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 was no longer being recognized until the carrying value had been recovered, and payments received were recognized as a reduction of the carrying value of the note. During second quarter 2014, the Secured Note was paid in full and interest income of $124,451 was recognized. The carrying value of the note receivable was $399,863 at December 31, 2013. | |
Notes Receivable | |
In 2013 and 2014, the Company loaned $1,100,000 in amounts ranging from $150,000 to $450,000 to various parties for a one year term with mortgage notes ranging in interest from 5% - 12%. Interest is due and payable monthly. The entire principal amounts are due and payable on the maturity date. The mortgages are collateralized by either commercial or residential property. Proceeds collected on these notes in 2014 totaled $400,000. The carrying amounts of loans outstanding on December 31, 2013 and 2014 were $402,000 and $702,500 including interest accrued. The carrying amount of the note receivable approximates its fair value based on its short-term maturity. There was no loan loss allowance at December 31, 2014 due to the repayment in full of a loan in fourth quarter. | |
Accrued interest on notes receivable was $2,500 and $2,000 at December 31, 2014 and 2013 respectively, and was included in notes receivable in the accompanying consolidated balance sheets. | |
NOTE_4_FAIR_VALUE_OF_FINANCIAL
NOTE 4 - FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Disclosures [Text Block] | NOTE 4 – 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, all of which were determined to be Level 3 fair values, as of December 31, 2014 and 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-Dec-14 | |||||||||||||||||
Assets: | |||||||||||||||||
Debt securities available for sale | $ | 24,455 | $ | - | $ | 24,455 | $ | - | |||||||||
December 31, | |||||||||||||||||
Assets: | 2013 | ||||||||||||||||
Certificate of deposit | $ | 22,734 | |||||||||||||||
Equity securities available for sale | - | ||||||||||||||||
Real property tax liens | 13,422 | ||||||||||||||||
Notes receivable | 402,000 | ||||||||||||||||
Accounts receivable | 57,233 | ||||||||||||||||
Notes receivable, non-performing | 414,000 | ||||||||||||||||
Total | $ | 909,389 | |||||||||||||||
NOTE_5_COMMITMENTS_AND_CONTING
NOTE 5 - COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 5 – COMMITMENTS AND CONTINGENCIES |
Employment and Consulting Agreements - On March 27, 2014, the Company entered into a new employment agreement with its chief executive officer and president for a two year term with automatic two year extensions unless terminated at least thirty days earlier in writing. The agreement provides for an annual salary of $150,000. The agreement requires that the chief executive officer not compete with the Company during the term of employment and for three years subsequent to termination. | |
Operating Leases as Lessee - The Company leases office space in Lakewood, NJ for monthly rent payments of $1,600 through February 2015. Future lease payments through December 31, 2015 are $3,200. The lease renews on March 1, 2015 for a one year period through February 2016. Future lease payments through December 31, 2015 are $17,500 and $3,500 in 2016. The Company is renting warehouse space in Salt Lake City, Utah, and Lakewood, NJ on a month to month basis. The leases provide for monthly rent payments totaling approximately $750. | |
Rent expense for the years ended December 31, 2014 and 2013 was $32,415 and $29,083, respectively. | |
NOTE_6_INCOME_TAXES
NOTE 6 - INCOME TAXES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Tax Disclosure [Text Block] | NOTE 6 – INCOME TAXES | ||||||||
The Company files income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. As of December 31, 2014, the Company had no unrecognized tax benefits that, if recognized, would affect the Company’s effective income tax rate over the next 12 months. The Company currently believes that all significant filing positions are highly certain and that all of its significant income tax filing positions and deductions would be sustained upon audit. Therefore, the Company has no reserves for uncertain tax positions and no adjustments to such reserves were required by generally accepted accounting principles. The Company’s tax returns are subject to U.S. federal or state and local examinations by tax authorities for the years ended December 31, 2011 through 2014. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in selling, general and administrative expenses. During the years ended December 31, 2014 and 2013, the Company did not incur any tax related interest and penalties. | |||||||||
The significant components of the Company's deferred income tax assets as of December 31, 2014 and 2013 are as follows: | |||||||||
For the years ending December 31, | 2014 | 2013 | |||||||
Deferred Income Tax Assets: | |||||||||
Net operating loss carryforwards | $ | 7,016,411 | $ | 7,026,743 | |||||
Reserves and accrued liabilities | 34,745 | 17,699 | |||||||
Other assets | (9,187 | ) | 3,925 | ||||||
Total Deferred Income Tax Assets | $ | 7,041,969 | $ | 7,048,367 | |||||
Valuation allowance | (7,041,969 | ) | (7,048,367 | ) | |||||
Deferred Income Tax Liability - Depreciation and Amortization | - | - | |||||||
Net Deferred Income Tax Asset | $ | - | $ | - | |||||
The amount of, and ultimate realization of, the deferred income tax assets are dependent, in part, upon the tax laws in effect, the Company's future earnings, and other future events, the effects of which cannot be determined. The Company has established a valuation allowance against its deferred income tax assets. Management believes that, based on a number of factors, the available objective evidence creates sufficient uncertainty regarding the realizability of these deferred income tax assets to warrant the valuation allowance. | |||||||||
No income tax provision or benefit was recognized from operations or from other comprehensive income (loss) during the years ended December 31, 2014 or 2013. The Company has paid no federal or state income taxes in 2014 and 2013: | |||||||||
The following is a reconciliation of the provision for income taxes from operations computed using the federal statutory rate to the provision for income taxes: | |||||||||
For the years ending December 31, | 2014 | 2013 | |||||||
Tax at statutory rate (34%) | $ | 38,426 | $ | (101,545 | ) | ||||
Other non-deductible expenses and adjustments | (15,841 | ) | 18,286 | ||||||
Change in valuation allowance | (24,043 | ) | 87,112 | ||||||
State tax, net of federal tax benefit | 1,458 | (3,853 | ) | ||||||
Provision for Income Taxes | $ | - | $ | - | |||||
The following summarizes the tax net operating loss carryforwards and their respective expiration dates as of December 31, 2014: | |||||||||
Years ending December 31, | |||||||||
2018 | 3,517,208 | ||||||||
2019 | 3,032,912 | ||||||||
2020 | 5,087,650 | ||||||||
2021 | 2,704,379 | ||||||||
2022 | 3,601,005 | ||||||||
2023 | 1,169,588 | ||||||||
2029 | 54,850 | ||||||||
2031 | 83,846 | ||||||||
2032 | 335,200 | ||||||||
2033 | 295,512 | ||||||||
Total net operating loss carryforwards | $ | 19,882,150 | |||||||
NOTE_7_STOCKHOLDERS_EQUITY
NOTE 7 - STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 7 – STOCKHOLDERS' EQUITY |
During the year ended December 31, 2014, the Company issued 50,000 shares of common stock valued at $5,000 ($0.10 per share based on market value on the date issued) to its Board of Directors for services rendered. During the year ended December 31, 2014, the Company issued 10,000 shares of common stock valued at $600 ($0.06 per share based on market value on the date issued) to an employee for services rendered. | |
During the year ended December 31, 2013, the Company issued 50,000 shares of common stock valued at $6,500 ($0.13 per share based on market value on the date issued) to its Board of Directors for services rendered. | |
NOTE_8_STOCK_OPTIONS_AND_WARRA
NOTE 8 - STOCK OPTIONS AND WARRANTS | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 8 – STOCK OPTIONS AND WARRANTS | |||||||||||||||||||||||
Employee Grants - During 2000, the stockholders of the Company approved adoption of the 2000 Stock Option Plan (the "2000 Plan"). The Company is authorized to issue 3,000,000 common shares under the 2000 Plan, as amended. | ||||||||||||||||||||||||
The 2000 Plan, as amended, provides for both the direct award of shares and the grant of options to purchase shares. The Company's compensation committee administers the plan and has discretion in determining the employees, directors, independent contractors and advisors who receive awards, the type of awards (stock, incentive stock options or non-qualified stock options) granted, the term, vesting and exercise prices. The exercise price for the options may be paid in cash or in shares of the Company's common stock that have been outstanding for more than six months, which shares are valued at their fair value on the exercise date. In the event of a change in control (as defined in the Plan), all restrictions on awards issued under the 2000 Plan will lapse and unexercised options will become fully vested. | ||||||||||||||||||||||||
During the year ended December 31, 2014, the Company granted options to purchase 75,000 shares of common stock to employees for extraordinary 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 $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 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 year ended December 31, 2013, the Company granted options to purchase 75,000 shares of common stock to employees for extraordinary services rendered. These options, which vested immediately, have an exercise price ranging from $0.06 to $0.08 per share and are exercisable through November 27, 2018. These options were valued at $4,386 using the Black-Scholes option pricing model with the following assumptions: risk free interest rate ranging from 0.72% to 1.36%, dividend yield of 0.0%, volatility ranging from 112% through 116% 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. | ||||||||||||||||||||||||
Compensation expense relating to stock options of $3,069 and $4,386 was recognized during the years ended December 31, 2014 and 2013, respectively. There was no unrecognized compensation related to stock options at December 31, 2014. | ||||||||||||||||||||||||
During the years ended December 31, 2014 and 2013, options to purchase 175,000 and 225,000 shares of common stock expired, respectively. During the years ended December 31, 2014 and 2013 no options were forfeited. | ||||||||||||||||||||||||
A summary of stock option and warrant activity for the years ended December 31, 2014 and 2013 is as follows: | ||||||||||||||||||||||||
Options and Warrants | Exercise Price Range | Weighted - Average | Weighted-Average Life | Aggregate Intrinsic Value | ||||||||||||||||||||
Exercise Price | ||||||||||||||||||||||||
Balance, December 31, 2012 | 492,500 | 0.1 | - | 0.26 | 0.21 | |||||||||||||||||||
Granted | 75,000 | 0.06 | - | 0.08 | 0.07 | |||||||||||||||||||
Expired | (225,000 | ) | 0.26 | - | 0.26 | 0.26 | ||||||||||||||||||
Balance, December 31, 2013 | 342,500 | $ | 0.1 | - | $ | 0.22 | $ | 0.14 | 5 | $ | 2,000 | |||||||||||||
Granted | 75,000 | 0.05 | - | 0.05 | 0.05 | |||||||||||||||||||
Expired | (175,000 | ) | 0.12 | - | 0.26 | 0.19 | ||||||||||||||||||
Balance, December 31, 2014 | 242,500 | 0.05 | - | 0.22 | 0.09 | 5.5 | $ | 4,250 | ||||||||||||||||
Exercisable, December 31, 2014 | 242,500 | $ | 0.05 | - | $ | 0.22 | $ | 0.09 | 5.5 | $ | 4,250 | |||||||||||||
Weighted-average fair value of options granted during the year ended December 31, 2013 | $ | 0.06 | ||||||||||||||||||||||
Weighted-average fair value of options granted during the year ended December 31, 2014 | $ | 0.04 | ||||||||||||||||||||||
NOTE_9_CONCENTRATION_OF_CREDIT
NOTE 9 - CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS | 12 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 9 – 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 revenue-sharing contracts and 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 December 31, 2014, the Company had accounts receivable from two customers accounting for 56% of total accounts receivable. | |
During the year ended December 31, 2014, revenues from two customers accounted for 62% of total revenues. | |
During the year ended December 31, 2013, revenues from one customer accounted for 40% of total revenues. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Basis of Accounting, Policy [Policy Text Block] | Organization, Nature of Operations and Principles of Consolidation - eRoomSystem Technologies, Inc. is a Nevada corporation. eRoomSystem Technologies, Inc. and its subsidiaries, collectively referred to as the "Company," provide a complete line of amenity services for hotels. | ||||||||
The accompanying consolidated financial statements include the accounts of eRoomSystem Technologies, Inc. and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. | |||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates in the Preparation of Financial Statements - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. | ||||||||
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. At December 31, 2014 and 2013, the Company held cash in excess of federally insured limits of $316,075 and $510,043, respectively. | ||||||||
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. | ||||||||
Securities Borrowed and Loaned Policy [Policy Text Block] | Securities Borrowed - Securities borrowed are carried at the amounts of cash collateral received in connection with the transactions and accounted for as collateralized financing transactions. In connection with trading activities, we borrow securities to cover short sales. When we borrow securities, we generally provide cash to the lender as collateral, which is reflected in our Consolidated Balance Sheet as Restricted Cash. We earn interest revenues on this cash collateral. | ||||||||
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% and 15% at December 31, 2014 and 2013 respectively, 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 maintained an inventory of refreshment centers to be placed in Hotels through September 30, 2013. During fourth quarter 2013, the refreshment centers were capitalized as property and equipment. 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 remove 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 carrying amount of the notes receivable approximates their fair value because of their short-term maturities. However, one of the notes was classified as long term for the year ended December 31, 2013 (see Note 3). | ||||||||
Investment, Policy [Policy Text Block] | Investment in Real Property Tax Liens – The investments in real property tax liens are accounted for as investments in troubled debt 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 no impairment was recognized on the tax liens at December 31, 2014 and 2013. | ||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment - Property and equipment consist primarily of eRoomServ refreshment centers and are stated at cost, less accumulated depreciation. Major additions and improvements are capitalized, while repairs and maintenance costs are expensed when incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets as follows: | ||||||||
eRoomServ refreshment centers in service | 5 - 7 years | ||||||||
Computer and office equipment | 3 - 7 years | ||||||||
Vehicles and other | 7 years | ||||||||
Depreciation expense was $10,449 and $16,986 for the years ended December 31, 2014 and 2013, respectively. On retirement, trade-in or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the statement of operations. | |||||||||
During the fourth quarter 2013, the Company determined that refreshment centers would no longer be sold to hotels, but would rather be used to replace existing refreshment centers used by the Company. As a result, the cost of refreshment centers in the amount of $92,880 was moved from inventory to property and equipment in fourth quarter 2013. In addition, the Company assessed the carrying value of these refreshment centers and determined, based on their projected future cash flows, that the refreshment centers were impaired. As a result, the carrying value of the refreshment centers was written down to their fair value, determined by their projected future cash flows, which resulted in the recognition of $46,440 of impairment expense during the year ended December 31, 2013. During the second quarter 2014, the Company determined the need to reduce the carrying value of refreshment centers installed in hotel rooms to its estimated value. As a result, the cost of refreshment centers in the amount of $70,348 was written down in the amount of $33,645. | |||||||||
Research, Development, and Computer Software, Policy [Policy Text Block] | Capitalized Software Costs - In accordance with FASB Accounting Standards Codification (ASC) 985, Accounting for the Costs of Computer Software to be Sold, Leased or Otherwise Marketed, development costs incurred in the research and development of new software products to be sold, leased or otherwise marketed are expensed as incurred until technological feasibility in the form of a working model has been established. Internally generated software development costs were $43,896 for the year ended December 31, 2014 and were $48,168 for the year ended December 31, 2013. The Company has charged its software development costs to research and development expense in the accompanying consolidated statements of operations. | ||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Valuation of Long-Lived Assets - The carrying values of long-lived assets, including notes receivable, are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying values may not be recoverable. When such an event occurs the Company projects the undiscounted cash flows to be generated from the use of the asset and its eventual disposition over the remaining life of the asset. If projections indicate that the carrying value of the asset will not be recovered, the carrying value of the asset is reduced by the estimated excess of the carrying value over the projected discounted cash flows estimated to be generated by the asset. During second quarter 2014, the Company determined the need to reduce the carrying value of refreshment centers installed in hotel rooms to its estimated value. As a result, the Company recognized an impairment loss of $33,645 during the year ended December 31, 2014. The Company reevaluated its long-lived assets at December 31, 2014 and found they represented current estimated market value. During the fourth quarter 2013, the carrying value of refreshment centers in property and equipment was impaired and the Company recognized an impairment loss of $46,440 during the year ended December 31, 2013. | ||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition - The Company generates revenues from the sale of products in refreshment centers, from maintenance services and the lease of equipment. In the fiscal year ended December 31, 2013 revenue from the sale of products was $525,385, and revenue from maintenance services and the lease of equipment was $75,178. Cost of maintenance services and the lease of equipment was immaterial in 2013. There was no revenue or cost of revenue in 2014 from maintenance services and the lease of equipment in 2014. | ||||||||
Revenue from the sale of refreshments from the refreshment centers is recognized upon removal of the item from the refreshment center by the hotel guest. Maintenance revenue is recognized as the services are performed. Lease revenue is recognized over the term of the lease | |||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation - The Company has one stock-based employee compensation plan, which is described more fully in Note 8. The Company utilizes the fair value recognition provisions of FASB ASC 718, Stock Compensation. Accordingly, the Company records expense, if applicable, for (i) the unvested portion of grants issued during 2014 and 2013 and (ii) new grant issuances, both of which will be expensed over the requisite service (i.e., vesting) periods. | ||||||||
Advertising Costs, Policy [Policy Text Block] | Sales and Marketing - Sales and marketing expenses include the costs of advertising, promotions, seminars, and other programs. Advertising costs are expensed as incurred. Advertising expense was $11,908 and $0 in fiscal years 2014 and 2013, respectively. | ||||||||
Research and Development Expense, Policy [Policy Text Block] | Research and Development – Research and development costs are expensed as incurred. | ||||||||
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. | ||||||||
Income Tax Uncertainties, Policy [Policy Text Block] | Accounting for Uncertainty in Income Taxes – The Company analyzes its filing positions in all jurisdictions where it is required to file income tax returns for the open tax years in such jurisdictions. The Company provides a liability for the potential tax, penalty and interest on uncertain tax positions that are not likely to be sustained upon audit. | ||||||||
Earnings Per Share, Policy [Policy Text Block] | Net Loss per Common Share – Basic income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding. Diluted income (loss) per common share is computed by dividing net income (loss), 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 common share: | |||||||||
For the years ended December 31, | |||||||||
2014 | 2013 | ||||||||
Net income (loss) | $ | 113,018 | $ | (298,663 | ) | ||||
Basic weighted-average common shares outstanding | 24,139,098 | 24,082,660 | |||||||
Effect of dilutive securities | |||||||||
Stock options and warrants | 34,154 | - | |||||||
Diluted weighted-average common shares outstanding | 24,173,252 | 24,082,660 | |||||||
Basic income (loss) per share | $ | 0 | $ | (0.01 | ) | ||||
Diluted income (loss) per share | $ | 0 | $ | (0.01 | ) | ||||
As of December 31, 2014 and 2013, there were potential common stock equivalents from options and warrants of 92,500 and 342,500 respectively that were not included in the computation of diluted loss per common share because their effect would have been anti-dilutive. | |||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements | ||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. Upon the effective date, the ASU replaces almost all existing revenue recognition guidance, including industry specific guidance, in United States Generally Accepted Accounting Principles. This standard is effective for fiscal years and interim reporting periods beginning after December 15, 2016. Early application is not permitted. The Standard permits the use of either the retrospective or modified retrospective (cumulative effect) transition method. The Company is currently assessing the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures upon implementation in the first quarter of fiscal year 2018. | |||||||||
Subsequent Events, Policy [Policy Text Block] | Subsequent Events – The Company evaluates events subsequent to its balance sheet date for disclosure through the date the financial statements are issued. |
NOTE_1_BASIS_OF_PRESENTATION_A1
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Property, Plant and Equipment [Table Text Block] | Depreciation is computed using the straight-line method over the estimated useful lives of the related assets as follows: | ||||||||
eRoomServ refreshment centers in service | 5 - 7 years | ||||||||
Computer and office equipment | 3 - 7 years | ||||||||
Vehicles and other | 7 years | ||||||||
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 common share: | ||||||||
For the years ended December 31, | |||||||||
2014 | 2013 | ||||||||
Net income (loss) | $ | 113,018 | $ | (298,663 | ) | ||||
Basic weighted-average common shares outstanding | 24,139,098 | 24,082,660 | |||||||
Effect of dilutive securities | |||||||||
Stock options and warrants | 34,154 | - | |||||||
Diluted weighted-average common shares outstanding | 24,173,252 | 24,082,660 | |||||||
Basic income (loss) per share | $ | 0 | $ | (0.01 | ) | ||||
Diluted income (loss) per share | $ | 0 | $ | (0.01 | ) |
NOTE_2_INVESTMENTS_Tables
NOTE 2 - INVESTMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity Securities [Member] | |||||||||||||||||
NOTE 2 - INVESTMENTS (Tables) [Line Items] | |||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Investments in equity securities as of December 31, 2013 are summarized below: | ||||||||||||||||
Equity Securities | Cost Basis | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||
Spot Mobile | $ | - | $ | - | $ | - | $ | - | |||||||||
Debt Securities [Member] | |||||||||||||||||
NOTE 2 - INVESTMENTS (Tables) [Line Items] | |||||||||||||||||
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 | $ | 1,721 | $ | - | $ | 24,455 |
NOTE_4_FAIR_VALUE_OF_FINANCIAL1
NOTE 4 - FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 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, all of which were determined to be Level 3 fair values, as of December 31, 2014 and 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-Dec-14 | |||||||||||||||||
Assets: | |||||||||||||||||
Debt securities available for sale | $ | 24,455 | $ | - | $ | 24,455 | $ | - | |||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | December 31, | ||||||||||||||||
Assets: | 2013 | ||||||||||||||||
Certificate of deposit | $ | 22,734 | |||||||||||||||
Equity securities available for sale | - | ||||||||||||||||
Real property tax liens | 13,422 | ||||||||||||||||
Notes receivable | 402,000 | ||||||||||||||||
Accounts receivable | 57,233 | ||||||||||||||||
Notes receivable, non-performing | 414,000 | ||||||||||||||||
Total | $ | 909,389 |
NOTE_6_INCOME_TAXES_Tables
NOTE 6 - INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The significant components of the Company's deferred income tax assets as of December 31, 2014 and 2013 are as follows: | ||||||||
For the years ending December 31, | 2014 | 2013 | |||||||
Deferred Income Tax Assets: | |||||||||
Net operating loss carryforwards | $ | 7,016,411 | $ | 7,026,743 | |||||
Reserves and accrued liabilities | 34,745 | 17,699 | |||||||
Other assets | (9,187 | ) | 3,925 | ||||||
Total Deferred Income Tax Assets | $ | 7,041,969 | $ | 7,048,367 | |||||
Valuation allowance | (7,041,969 | ) | (7,048,367 | ) | |||||
Deferred Income Tax Liability - Depreciation and Amortization | - | - | |||||||
Net Deferred Income Tax Asset | $ | - | $ | - | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following is a reconciliation of the provision for income taxes from operations computed using the federal statutory rate to the provision for income taxes: | ||||||||
For the years ending December 31, | 2014 | 2013 | |||||||
Tax at statutory rate (34%) | $ | 38,426 | $ | (101,545 | ) | ||||
Other non-deductible expenses and adjustments | (15,841 | ) | 18,286 | ||||||
Change in valuation allowance | (24,043 | ) | 87,112 | ||||||
State tax, net of federal tax benefit | 1,458 | (3,853 | ) | ||||||
Provision for Income Taxes | $ | - | $ | - | |||||
Summary of Operating Loss Carryforwards [Table Text Block] | The following summarizes the tax net operating loss carryforwards and their respective expiration dates as of December 31, 2014: | ||||||||
Years ending December 31, | |||||||||
2018 | 3,517,208 | ||||||||
2019 | 3,032,912 | ||||||||
2020 | 5,087,650 | ||||||||
2021 | 2,704,379 | ||||||||
2022 | 3,601,005 | ||||||||
2023 | 1,169,588 | ||||||||
2029 | 54,850 | ||||||||
2031 | 83,846 | ||||||||
2032 | 335,200 | ||||||||
2033 | 295,512 | ||||||||
Total net operating loss carryforwards | $ | 19,882,150 |
NOTE_8_STOCK_OPTIONS_AND_WARRA1
NOTE 8 - STOCK OPTIONS AND WARRANTS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | A summary of stock option and warrant activity for the years ended December 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||
Options and Warrants | Exercise Price Range | Weighted - Average | Weighted-Average Life | Aggregate Intrinsic Value | ||||||||||||||||||||
Exercise Price | ||||||||||||||||||||||||
Balance, December 31, 2012 | 492,500 | 0.1 | - | 0.26 | 0.21 | |||||||||||||||||||
Granted | 75,000 | 0.06 | - | 0.08 | 0.07 | |||||||||||||||||||
Expired | (225,000 | ) | 0.26 | - | 0.26 | 0.26 | ||||||||||||||||||
Balance, December 31, 2013 | 342,500 | $ | 0.1 | - | $ | 0.22 | $ | 0.14 | 5 | $ | 2,000 | |||||||||||||
Granted | 75,000 | 0.05 | - | 0.05 | 0.05 | |||||||||||||||||||
Expired | (175,000 | ) | 0.12 | - | 0.26 | 0.19 | ||||||||||||||||||
Balance, December 31, 2014 | 242,500 | 0.05 | - | 0.22 | 0.09 | 5.5 | $ | 4,250 | ||||||||||||||||
Exercisable, December 31, 2014 | 242,500 | $ | 0.05 | - | $ | 0.22 | $ | 0.09 | 5.5 | $ | 4,250 | |||||||||||||
Weighted-average fair value of options granted during the year ended December 31, 2013 | $ | 0.06 | ||||||||||||||||||||||
Weighted-average fair value of options granted during the year ended December 31, 2014 | $ | 0.04 |
NOTE_1_BASIS_OF_PRESENTATION_A2
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | 6 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Cash, Uninsured Amount | $316,075 | $510,043 | |
Depreciation | 10,449 | 16,986 | |
Asset Impairment Charges | 33,645 | 46,440 | |
Capitalized Computer Software, Gross | 43,896 | 48,168 | |
Sales Revenue, Goods, Gross | 525,385 | ||
Sales Revenue, Services, Other | 75,178 | ||
Advertising Expense | 11,908 | 0 | |
Equity Option [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) | 92,500 | 342,500 | |
Equipment [Member] | |||
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Property, Plant and Equipment, Transfers and Changes | 92,880 | ||
Asset Impairment Charges | 46,440 | ||
eRoomServ Refreshment Centers in Service [Member] | |||
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Asset Impairment Charges | 33,645 | ||
Property, Plant and Equipment, Gross | $70,348 |
NOTE_1_BASIS_OF_PRESENTATION_A3
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2014 | |
eRoomServ Refreshment Centers in Service [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 5 years |
eRoomServ Refreshment Centers in Service [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 7 years |
Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 7 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 7 years |
NOTE_1_BASIS_OF_PRESENTATION_A4
NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Earnings per Share (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Earnings per Share [Abstract] | ||
Net income (loss) (in Dollars) | $113,018 | ($298,663) |
Basic weighted-average common shares outstanding | 24,139,098 | 24,082,660 |
Stock options and warrants | 34,154 | 0 |
Diluted weighted-average common shares outstanding | 24,173,252 | 24,082,660 |
Basic income (loss) per share (in Dollars per share) | $0 | ($0.01) |
Diluted income (loss) per share (in Dollars per share) | $0 | ($0.01) |
NOTE_2_INVESTMENTS_Details
NOTE 2 - INVESTMENTS (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2008 | Dec. 31, 2012 | Dec. 31, 2010 | |
NOTE 2 - INVESTMENTS (Details) [Line Items] | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | $16,579 | $0 | |||
Payments to Acquire Investments | 9,266 | 0 | |||
Proceeds from Sale, Maturity and Collection of Investments | 0 | 12,845 | |||
Collateralized Mortgage Obligations [Member] | Minimum [Member] | |||||
NOTE 2 - INVESTMENTS (Details) [Line Items] | |||||
Investment in real property tax liens, penalty rate | 2.00% | ||||
Collateralized Mortgage Obligations [Member] | Maximum [Member] | |||||
NOTE 2 - INVESTMENTS (Details) [Line Items] | |||||
Investment in real property tax liens, penalty rate | 6.00% | ||||
Collateralized Mortgage Obligations [Member] | |||||
NOTE 2 - INVESTMENTS (Details) [Line Items] | |||||
Investment Owned, at Fair Value | 22,688 | ||||
Payments to Acquire Investments | 9,266 | ||||
Proceeds from Sale, Maturity and Collection of Investments | 12,845 | ||||
Investment Interest Rate | 18.00% | ||||
Blackbird Corporation [Member] | |||||
NOTE 2 - INVESTMENTS (Details) [Line Items] | |||||
Investment in Equity Securities, Available for Sale, Shares, Received (in Shares) | 50,000 | ||||
Spot Mobile [Member] | |||||
NOTE 2 - INVESTMENTS (Details) [Line Items] | |||||
Investment in Equity Securities, Available for Sale, Shares Received in Share Exchange (in Shares) | 1,700,000 | ||||
Investment in Equity Securities, Available for Sale, Shares, Post Reverse Split (in Shares) | 56,667 | ||||
Available-for-sale Securities, Equity Securities, Current | 0 | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | ($1,700) |
NOTE_2_INVESTMENTS_Details_Sch
NOTE 2 - INVESTMENTS (Details) - Schedule of Available-for-sale Equity Securities Reconciliation (Equity Securities [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Equity Securities [Member] | |
NOTE 2 - INVESTMENTS (Details) - Schedule of Available-for-sale Equity Securities Reconciliation [Line Items] | |
Spot Mobile | $0 |
Spot Mobile | 0 |
Spot Mobile | 0 |
Spot Mobile | $0 |
NOTE_2_INVESTMENTS_Details_Sch1
NOTE 2 - INVESTMENTS (Details) - Schedule of Available-for-sale Debt Securities Reconciliation (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
NOTE 2 - INVESTMENTS (Details) - Schedule of Available-for-sale Debt Securities Reconciliation [Line Items] | ||
Corporate Debt Securities | $24,455 | $22,734 |
Debt Securities [Member] | ||
NOTE 2 - INVESTMENTS (Details) - Schedule of Available-for-sale Debt Securities Reconciliation [Line Items] | ||
Corporate Debt Securities | 22,734 | |
Corporate Debt Securities | 1,721 | |
Corporate Debt Securities | 0 | |
Corporate Debt Securities | $24,455 |
NOTE_3_NOTE_RECEIVABLE_Details
NOTE 3 - NOTE RECEIVABLE (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 24 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Nov. 10, 2011 | Nov. 03, 2011 | Jan. 01, 2009 | Jul. 24, 2008 | Jun. 30, 2014 | Dec. 31, 2014 | |
NOTE 3 - NOTE RECEIVABLE (Details) [Line Items] | ||||||||
Payments to Acquire Notes Receivable | $700,000 | $400,000 | ||||||
Proceeds from Collection of Notes Receivable | 400,000 | 0 | ||||||
Notes, Loans and Financing Receivable, Net, Noncurrent | 0 | 399,863 | 0 | |||||
Notes, Loans and Financing Receivable, Net, Current | 702,500 | 402,000 | 702,500 | |||||
Non-Performing Loan Receivable [Member] | ||||||||
NOTE 3 - NOTE RECEIVABLE (Details) [Line Items] | ||||||||
Payments to Acquire Notes Receivable | 500,000 | |||||||
Loan Receivable, Interest Rate | 10.00% | 18.00% | 10.00% | |||||
Sale of Stock, Number of Shares Issued in Transaction (in Shares) | 50,000 | |||||||
Proceeds from Collection of Notes Receivable | 25,069 | |||||||
Investment Income, Interest | 124,451 | |||||||
Notes, Loans and Financing Receivable, Net, Noncurrent | 399,863 | |||||||
Notes Receivable [Member] | Minimum [Member] | ||||||||
NOTE 3 - NOTE RECEIVABLE (Details) [Line Items] | ||||||||
Payments to Acquire Notes Receivable | 150,000 | |||||||
Loan Receivable, Interest Rate | 5.00% | |||||||
Notes Receivable [Member] | Maximum [Member] | ||||||||
NOTE 3 - NOTE RECEIVABLE (Details) [Line Items] | ||||||||
Payments to Acquire Notes Receivable | 450,000 | |||||||
Loan Receivable, Interest Rate | 12.00% | |||||||
Notes Receivable [Member] | ||||||||
NOTE 3 - NOTE RECEIVABLE (Details) [Line Items] | ||||||||
Payments to Acquire Notes Receivable | 1,100,000 | |||||||
Proceeds from Collection of Notes Receivable | 400,000 | |||||||
Loan Receivable, Term | 1 year | |||||||
Notes, Loans and Financing Receivable, Net, Current | 702,500 | 402,000 | 702,500 | |||||
Interest Receivable, Current | $2,500 | $2,000 | $2,500 |
NOTE_4_FAIR_VALUE_OF_FINANCIAL2
NOTE 4 - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Schedule of Fair Value, Assets Measured on Recurring Basis (USD $) | Dec. 31, 2014 |
Assets: | |
Debt securities available for sale | $24,455 |
Fair Value, Inputs, Level 1 [Member] | |
Assets: | |
Debt securities available for sale | 0 |
Fair Value, Inputs, Level 2 [Member] | |
Assets: | |
Debt securities available for sale | 24,455 |
Fair Value, Inputs, Level 3 [Member] | |
Assets: | |
Debt securities available for sale | $0 |
NOTE_4_FAIR_VALUE_OF_FINANCIAL3
NOTE 4 - FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Fair Value, Assets Measured on Recurring Basis (USD $) | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis [Abstract] | |
Certificate of deposit | $22,734 |
Equity securities available for sale | 0 |
Real property tax liens | 13,422 |
Notes receivable | 402,000 |
Accounts receivable | 57,233 |
Notes receivable, non-performing | 414,000 |
Total | $909,389 |
NOTE_5_COMMITMENTS_AND_CONTING1
NOTE 5 - COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Mar. 27, 2014 | |
NOTE 5 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | |||
Operating Leases, Rent Expense | $32,415 | $29,083 | |
Chief Executive Officer [Member] | |||
NOTE 5 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | |||
Deferred Compensation Arrangement with Individual, Maximum Contractual Term | 2 years | ||
Other Commitments, Description | automatic two year extensions unless terminated at least thirty days earlier in writing | ||
Other Commitment | 150,000 | ||
Other Commitment, Non-Compete Term | 3 years | ||
Building [Member] | Lease Expiring February 2015 [Member] | |||
NOTE 5 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | |||
Operating Leases, Rent Expense, Minimum Rentals | 1,600 | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 3,200 | ||
Building [Member] | Lease Commencing March 2015 [Member] | |||
NOTE 5 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 17,500 | ||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 1 year | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 3,500 | ||
Land and Building [Member] | |||
NOTE 5 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | |||
Operating Leases, Rent Expense, Minimum Rentals | $750 | ||
Description of Lessee Leasing Arrangements, Operating Leases | month to month basis |
NOTE_6_INCOME_TAXES_Details
NOTE 6 - INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits | $0 | |
Income Tax Expense (Benefit) | $0 | $0 |
NOTE_6_INCOME_TAXES_Details_Sc
NOTE 6 - INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Income Tax Assets: | ||
Net operating loss carryforwards | $7,016,411 | $7,026,743 |
Reserves and accrued liabilities | 34,745 | 17,699 |
Other assets | -9,187 | 3,925 |
Total Deferred Income Tax Assets | 7,041,969 | 7,048,367 |
Valuation allowance | -7,041,969 | -7,048,367 |
Deferred Income Tax Liability - Depreciation and Amortization | 0 | 0 |
Net Deferred Income Tax Asset | $0 | $0 |
NOTE_6_INCOME_TAXES_Details_Sc1
NOTE 6 - INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||
Tax at statutory rate (34%) | $38,426 | ($101,545) |
Other non-deductible expenses and adjustments | -15,841 | 18,286 |
Change in valuation allowance | -24,043 | 87,112 |
State tax, net of federal tax benefit | 1,458 | -3,853 |
Provision for Income Taxes | $0 | $0 |
NOTE_6_INCOME_TAXES_Details_Sc2
NOTE 6 - INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation (Parentheticals) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||
Tax at statutory rate | 34.00% | 34.00% |
NOTE_6_INCOME_TAXES_Details_Su
NOTE 6 - INCOME TAXES (Details) - Summary of Operating Loss Carryforwards (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforward, Expriation Date | |
Operating Loss Carryforward, Amount | $19,882,150 |
Operating Loss Carryforward Expiration, 2018 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforward, Expriation Date | 2018 |
Operating Loss Carryforward, Amount | 3,517,208 |
Operating Loss Carryforward Expiration, 2019 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforward, Expriation Date | 2019 |
Operating Loss Carryforward, Amount | 3,032,912 |
Operating Loss Carryforward Expiration, 2020 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforward, Expriation Date | 2020 |
Operating Loss Carryforward, Amount | 5,087,650 |
Operating Loss Carryforward Expiration, 2021 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforward, Expriation Date | 2021 |
Operating Loss Carryforward, Amount | 2,704,379 |
Operating Loss Carryforward Expiration, 2022 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforward, Expriation Date | 2022 |
Operating Loss Carryforward, Amount | 3,601,005 |
Operating Loss Carryforward Expiration, 2023 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforward, Expriation Date | 2023 |
Operating Loss Carryforward, Amount | 1,169,588 |
Operating Loss Carryforward Expiration, 2029 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforward, Expriation Date | 2029 |
Operating Loss Carryforward, Amount | 54,850 |
Operating Loss Carryforward Expiration, 2031 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforward, Expriation Date | 2031 |
Operating Loss Carryforward, Amount | 83,846 |
Operating Loss Carryforward Expiration, 2032 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforward, Expriation Date | 2032 |
Operating Loss Carryforward, Amount | 335,200 |
Operating Loss Carryforward Expiration, 2033 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforward, Expriation Date | 2033 |
Operating Loss Carryforward, Amount | $295,512 |
NOTE_7_STOCKHOLDERS_EQUITY_Det
NOTE 7 - STOCKHOLDERS' EQUITY (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Director [Member] | ||
NOTE 7 - STOCKHOLDERS' EQUITY (Details) [Line Items] | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 50,000 | 50,000 |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $5,000 | $6,500 |
Shares Issued, Price Per Share | $0.10 | $0.13 |
Employee [Member] | ||
NOTE 7 - STOCKHOLDERS' EQUITY (Details) [Line Items] | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 10,000 | |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $600 | |
Shares Issued, Price Per Share | $0.06 |
NOTE_8_STOCK_OPTIONS_AND_WARRA2
NOTE 8 - STOCK OPTIONS AND WARRANTS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2000 | |
NOTE 8 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 75,000 | 75,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Fair Value of Options Granted (in Dollars) | $3,069 | $4,386 | |
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% | 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 | 5 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 0.72% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 1.36% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 112.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 116.00% | ||
Share-based Compensation (in Dollars) | 8,669 | 10,886 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period (in Shares) | 175,000 | 225,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period (in Shares) | 0 | 0 | |
Employee Stock Option [Member] | |||
NOTE 8 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||
Share-based Compensation (in Dollars) | $3,069 | $4,386 | |
Minimum [Member] | |||
NOTE 8 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $0.05 | $0.06 | |
Maximum [Member] | |||
NOTE 8 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercise Price (in Dollars per share) | $0.08 | ||
2000 Stock Option Plan [Member] | |||
NOTE 8 - STOCK OPTIONS AND WARRANTS (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 3,000,000 |
NOTE_8_STOCK_OPTIONS_AND_WARRA3
NOTE 8 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Activity (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
NOTE 8 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Activity [Line Items] | |||
Options and Warrants, Balance (in Shares) | 242,500 | 342,500 | 492,500 |
Options and Warrants, Weighted Average Exercise Price | $0.09 | $0.14 | $0.21 |
Options and Warrants, Weighted-Average Life | 5 years 6 months | 5 years | |
Options and Warrants, Aggregate Intrinsic Value (in Dollars) | $4,250 | $2,000 | |
Exercisable, December 31, 2014 (in Shares) | 242,500 | ||
Exercisable, December 31, 2014 | $0.09 | ||
Exercisable, December 31, 2014 | 5 years 6 months | ||
Exercisable, December 31, 2014 (in Dollars) | $4,250 | ||
Weighted-average Fair Value of Options Granted | $0.04 | $0.06 | |
Options and Warrants, Granted (in Shares) | 75,000 | 75,000 | |
Options and Warrants, Granted, Weighted Average Exercise Price | $0.05 | $0.07 | |
Options and Warrants, Expired (in Shares) | -175,000 | -225,000 | |
Options and Warrants, Expired, Weighted Average Exercise Price | $0.19 | $0.26 | |
Minimum [Member] | |||
NOTE 8 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Activity [Line Items] | |||
Optionas and Warrants, Exercise Price Range | $0.05 | $0.10 | $0.10 |
Exercisable, December 31, 2014 | $0.05 | ||
Options and Warrants, Granted, Exercise Price Range | $0.05 | $0.06 | |
Options and Warrants, Expired, Exercise Price Range | $0.12 | $0.26 | |
Maximum [Member] | |||
NOTE 8 - STOCK OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Activity [Line Items] | |||
Optionas and Warrants, Exercise Price Range | $0.22 | $0.22 | $0.26 |
Exercisable, December 31, 2014 | $0.22 | ||
Options and Warrants, Granted, Exercise Price Range | $0.05 | $0.08 | |
Options and Warrants, Expired, Exercise Price Range | $0.26 | $0.26 |
NOTE_9_CONCENTRATION_OF_CREDIT1
NOTE 9 - CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Customers A and B [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||
NOTE 9 - CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS (Details) [Line Items] | ||
Concentration Risk, Percentage | 56.00% | |
Customers A and B [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | ||
NOTE 9 - CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS (Details) [Line Items] | ||
Concentration Risk, Percentage | 62.00% | |
Customer A [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | ||
NOTE 9 - CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS (Details) [Line Items] | ||
Concentration Risk, Percentage | 40.00% |