Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 06, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | MobileSmith, Inc. | |
Entity Central Index Key | 1,113,513 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 19,827,542 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 800,170 | $ 320,286 |
Restricted cash | 125,000 | 125,000 |
Trade Accounts Receivable, Net of Allowance for Doubtful Accounts of $11,500 and $22,000, Respectively | 293,479 | 193,907 |
Prepaid expenses and other current assets | 76,928 | 64,973 |
Total current assets | 1,295,577 | 704,166 |
Property and equipment, net | 108,770 | 116,567 |
Capitalized software, net | 452,322 | 507,217 |
Intangible assets, net | 63,860 | 72,604 |
Other assets | 13,788 | 21,312 |
Total Other Assets | 638,740 | 717,700 |
TOTAL ASSETS | 1,934,317 | 1,421,866 |
Current liabilities | ||
Trade Accounts Payable | 42,913 | 94,862 |
Accrued Expenses | 64,511 | 106,668 |
Accrued interest | 397,548 | 501,957 |
Capital Lease Obligations | 28,225 | 28,378 |
Deferred revenue | 629,771 | 579,264 |
Bank Loan | 5,000,000 | 0 |
Total current liabilities | 6,162,968 | 1,311,129 |
Long-term liabilities: | ||
Bank Loan | 0 | 5,000,000 |
Convertible Notes Payable, Related Parties, Net of Discount | 30,352,194 | 25,985,330 |
Convertible Notes Payable, Net of Discount | 680,640 | 680,640 |
Capital Lease Obligations | 101,234 | 114,637 |
Deferred Rent | 57,841 | 61,010 |
Total long-term liabilities | 31,191,909 | 31,841,617 |
Total liabilities | 37,354,877 | 33,152,746 |
Stockholders' deficit: | ||
Preferred Stock, $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding at June 30, 2015 and December 31, 2014 | 0 | 0 |
Common Stock, $0.001 par value, 45,000,000 shares authorized, 19,827,542 shares issued and outstanding at June 30, 2015 and December 31, 2014 | 19,828 | 19,828 |
Additional paid-in capital | 97,495,991 | 97,453,374 |
Accumulated deficit | (132,936,379) | (129,204,082) |
Total stockholders' deficit | (35,420,560) | (31,730,880) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 1,934,317 | $ 1,421,866 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts | $ 11,500 | $ 22,000 |
Stockholders' equity: | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 45,000,000 | 45,000,000 |
Common stock, issued | 19,827,542 | 19,827,542 |
Common stock, outstanding | 19,827,542 | 19,827,542 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
REVENUES: | ||||
Subscription and Support | $ 377,545 | $ 194,783 | $ 773,733 | $ 382,729 |
Professional Services and Other | 30,000 | 0 | 60,000 | 0 |
Total revenues | 407,545 | 194,783 | 833,733 | 382,729 |
COST OF REVENUES | ||||
Subscription and Support | 74,229 | 124,682 | 133,698 | 260,269 |
Professional Services and Other | 14,272 | 0 | 23,545 | 0 |
Total Cost of Revenue | 88,501 | 124,682 | 157,243 | 260,269 |
GROSS PROFIT (LOSS) | 319,044 | 70,101 | 676,490 | 122,459 |
OPERATING EXPENSES: | ||||
Sales and marketing | 267,047 | 235,627 | 559,246 | 455,784 |
Research and development | 333,685 | 261,737 | 673,825 | 530,614 |
General and administrative | 283,887 | 347,402 | 598,453 | 682,569 |
Impairment of Long Lived Assets, Net | 0 | 16,296 | 0 | 16,296 |
Total operating expenses | 884,619 | 861,062 | 1,831,524 | 1,685,263 |
LOSS FROM OPERATIONS | (565,575) | (790,961) | (1,155,034) | (1,562,804) |
OTHER INCOME (EXPENSE): | ||||
Other Income | 1,111 | 633 | 1,490 | 1,889 |
Interest expense, net | (1,311,617) | (1,095,243) | (2,578,753) | (1,921,685) |
Gain on reversal of a liability | 0 | 169,861 | 0 | 169,861 |
Gain (Loss) On Debt Extinguishment | 0 | 50,129 | 0 | 50,129 |
Total Other Expense | (1,310,506) | (874,620) | (2,577,263) | (1,699,806) |
NET LOSS | $ (1,876,081) | $ (1,665,581) | $ (3,732,297) | $ (3,262,610) |
NET LOSS PER COMMON SHARE: | ||||
Basic and Fully Diluted from Continuing Operations | $ (0.09) | $ (0.08) | $ (0.19) | $ (0.16) |
WEIGHTED-AVERAGE NUMBER OF SHARES USED IN COMPUTING NET LOSS PER COMMON SHARE: | ||||
Basic and fully diluted | 19,827,542 | 19,827,542 | 19,827,542 | 19,827,542 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (3,732,297) | $ (3,262,610) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 81,007 | 83,383 |
Bad Debt Expense Reversal | (6,000) | 0 |
Amortization of Debt Discount | 1,166,864 | 722,605 |
Share Based Compensation | 42,617 | 53,056 |
Impairment of long lived assets | 0 | 16,296 |
Gain on debt extinguishment | 0 | (50,129) |
Changes in assets and liabilities: | ||
Accounts Receivable | (93,822) | 1,601 |
Prepaid Expenses and Other Current Assets | (4,069) | (9,535) |
Accounts Payable | (51,949) | (6,332) |
Deferred revenue | 50,507 | 47,506 |
Accrued and other expenses | (149,735) | (131,513) |
Net Cash Used in Operating Activities | (2,696,877) | (2,535,672) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Payments to Acquire Property, Plant and Equipment | (9,683) | (7,983) |
Net Cash Used in Investing Activities | (9,683) | (7,983) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Restricted cash used to pay interest expense | 97,385 | 144,219 |
Deposit of Cash to Restricted Account | (97,385) | (125,000) |
Repayment of Bank Loan | 0 | (5,000,000) |
Proceeds from Bank Loan | 0 | 5,000,000 |
Proceeds from Issuance of Long Term Debt | 3,200,000 | 3,440,000 |
Repayments of debt borrowings | (13,556) | (12,767) |
Net cash provided by financing activities | 3,186,444 | 3,446,452 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 479,884 | 902,797 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 320,286 | 223,514 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 800,170 | 1,126,311 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for: Interest | 787,853 | 577,271 |
The Company Recorded Debt Discount Associated with Beneficial Conversion Feature | $ 0 | $ 1,625,357 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, shares at Dec. 31, 2014 | 19,827,542 | |||
Beginning Balance, amount at Dec. 31, 2014 | $ 19,828 | $ 97,453,374 | $ (129,204,082) | $ (31,730,880) |
Equity-Based Compensation | 0 | 42,617 | 0 | 42,617 |
Net loss | $ 0 | 0 | (3,732,297) | $ (3,732,297) |
Ending Balance, shares at Jun. 30, 2015 | 19,827,542 | 19,827,542 | ||
Ending Balance, amount at Jun. 30, 2015 | $ 19,828 | $ 97,495,991 | $ (132,936,379) | $ (35,420,560) |
1. DESCRIPTION OF BUSINESS AND
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | MobileSmith, Inc. (referred to herein as the Company, us, we, or our) was incorporated as Smart Online, Inc. in the State of Delaware in 1993. The Company changed its name to MobileSmith, Inc. effective July 1, 2013. The Company develops and markets software products and services tailored to users of mobile devices. The Companys flagship product is the MobileSmith® Platform (the Platform). The Platform is an innovative app development platform that enables organizations to rapidly create, deploy, and manage custom, native smartphone and tablet apps deliverable across iOS and Android mobile platforms. These condensed consolidated financial statements include accounts of the Company and its wholly-owned subsidiary, which was created to explore the concept of a consumer targeted mobile app development platform. From time to time, the Company may create additional wholly-owned subsidiaries in order to test various new services as a part of its research and development process. The subsidiary has not had material activity in 2015. The Companys principal products and services include: ● Subscription to its Software as a Service (SaaS) cloud based mobile app development platform to customers who design and build their own apps; ● Dedicated internal and secure mobile development platform for the U.S. Department of Defense and related contractors; ● Custom mobile application design and development services; ● Mobile application marketing services; and ● Mobile strategy implementation consulting. The Company prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Pursuant to these rules and regulations, the Company has condensed or omitted certain information and footnote disclosures it normally includes in its audited annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). In managements opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present its financial position, results of operations, cash flows, and stockholders deficit as of June 30, 2015. The Companys interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited annual consolidated financial statements and notes thereto included in the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2014 on file with the SEC (the Annual Report). There have been no material changes to the Companys significant accounting policies as compared to the significant accounting policies described in the Annual Report. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. During the six months ended June 30, 2015 and 2014, the Company incurred net losses as well as negative cash flows from operations. These factors indicate that the Company may be unable to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts or classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Recently Issued Accounting Pronouncements The Company evaluates new significant accounting pronouncements at each reporting period. For the period ended June 30, 2015, the Company did not adopt any new pronouncement that had or is expected to have a material effect on the Companys presentation of its condensed consolidated financial statements. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-9 Revenue from Contracts with Customers (Topic 606). This guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance is effective for annual reporting periods beginning after December 15, 2017, and early adoption is not permitted. The Company will adopt this standard in fiscal year 2018 and is currently assessing its impact. In August of 2014, the FASB issued ASU 2014-15 Presentation of Financial Statements Going Concern (Subtopic 205-40). This ASU defines managements responsibility to evaluate whether there is substantial doubt about an organizations ability to continue as a going concern and provides guidance on required financial statement footnote disclosures. The ASU is effective for annual periods ending after December 15, 2016. The Company will adopt the ASU in fiscal year 2016 and is currently assessing its impact. |
2. DEBT
2. DEBT | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
2. DEBT | The table below summarizes the Companys debt at June 30, 2015 and December 31, 2014: Debt Description June 30, December 31, 2015 2014 Maturity Rate Comerica Bank LSA $ 5,000,000 $ 5,000,000 Jun-16 3.85 % Capital lease obligations - Noteholder lease 103,222 113,093 Aug-19 8.00 % Capital lease obligations - office furniture 26,237 29,922 Sep-16 9.80 % Convertible notes - related parties, net of discount of $3,172,037 and $4,338,901, respectively 30,352,194 25,985,330 Nov-16 8.00 % Convertible notes, net of discount of $50,129 680,640 680,640 Nov-16 8.00 % Total debt 36,162,293 31,808,985 Less: current portion of long term debt Capital lease obligations 28,225 28,378 Comerica Bank LSA 5,000,000 - Total current portion of long term debt 5,028,225 28,378 Debt - long term $ 31,134,068 $ 31,780,607 Convertible Notes During the six months ended June 30, 2015, the Company sold $3,200,000 of additional unsecured Convertible Subordinated Notes unsecured Convertible Subordinated Note Purchase Agreement dated December 10, 2014 The table below summarizes convertible notes issued as of June 30, 2015 by type: Convertible Notes Type: Balance 2007 NPA notes, net of discount $ 27,332,834 2014 NPA notes 3,700,000 Total convertible notes, net of discount $ 31,032,834 |
3. COMMITMENTS AND CONTINGENCIE
3. COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
3. COMMITMENTS AND CONTINGENCIES | Aggregate future lease commitments The Company leases computers, office equipment and office furniture under capital lease agreements that expire through August 2019. Total amount financed under these capital leases at June 30, 2015 was $129,459. This obligation is included within the Companys total debt. The table below summarizes Companys future obligations under its capital leases: Year: 2015 $ 19,629 2016 39,259 2017 39,259 2018 34,189 2019 19,412 151,748 Less amount representing interest (22,289 ) Capital lease obligations $ 129,459 The Company leases its office space in Raleigh, North Carolina pursuant to a lease with an initial term that expires in March 2019. The lease contains an option to renew for two three-year terms. In addition, the Company leases a vehicle pursuant to a lease that expires in July 2016. The table below summarizes the Companys future obligations under its office and vehicle operating leases: Year: 2015 $ 81,624 2016 165,678 2017 167,786 2018 172,418 2019 44,082 Total $ 631,588 Legal Proceedings The Company may be subject to legal proceedings and litigation arising in the ordinary course of business. The Company will record a liability when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. The Company periodically evaluates developments in its legal matters that could affect the amount of liability that it has previously accrued, if any, and makes adjustments as appropriate. Significant judgment is required to determine both the likelihood of there being, and the estimated amount of, a loss related to such matters, and the Companys judgment may be incorrect. The outcome of any proceeding is not determinable in advance. Until the final resolution of any such matters that the Company may be required to accrue for, there may be an exposure to loss in excess of the amount accrued, and such amounts could be material. |
4. EQUITY COMPENSATION
4. EQUITY COMPENSATION | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
4. EQUITY COMPENSATION | The following is a summary of the stock option activity for the six months ended June 30, 2015: Weighted Weighted Average Aggregate Number of Average Remaining Intrinsic Shares Exercise Price Contractual Term Value Outstanding, December 31, 2014 403,661 $ 1.45 Cancelled (42,312 ) 1.53 Issued - - Outstanding, June 30, 2015 361,349 $ 1.44 4.12 $ 53,707 Vested and exercisable, June 30, 2015 242,521 $ 1.36 4.55 $ 47,361 Aggregate intrinsic value represents the difference between the closing price of the Companys common stock at June 30, 2015 and the exercise price of outstanding, in-the-money stock options. The closing price of the common stock at June 30, 2015, as reported on the Over-the-Counter Bulletin Board, was $1.50 per share. At June 30, 2015, $103,519 |
5. MAJOR CUSTOMERS AND CONCENTR
5. MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK | 6 Months Ended |
Jun. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
5. MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK | For the six months ended June 30, 2015, two major customers accounted for 33% of total revenues and five customers accounted for 69% of the accounts receivable balance. For the six months ended June 30, 2014, two major customers accounted for 28% of total revenues and five customers accounted for 75% of the accounts receivable balance. |
2. DEBT (Tables)
2. DEBT (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Company's debt | Debt Description June 30, December 31, 2015 2014 Maturity Rate Comerica Bank LSA $ 5,000,000 $ 5,000,000 Jun-16 3.85 % Capital lease obligations - Noteholder lease 103,222 113,093 Aug-19 8.00 % Capital lease obligations - office furniture 26,237 29,922 Sep-16 9.80 % Convertible notes - related parties, net of discount of $3,172,037 and $4,338,901, respectively 30,352,194 25,985,330 Nov-16 8.00 % Convertible notes, net of discount of $50,129 680,640 680,640 Nov-16 8.00 % Total debt 36,162,293 31,808,985 Less: current portion of long term debt Capital lease obligations 28,225 28,378 Comerica Bank LSA 5,000,000 - Total current portion of long term debt 5,028,225 28,378 Debt - long term $ 31,134,068 $ 31,780,607 |
Summary of convertible notes | Convertible Notes Type: Balance 2007 NPA notes, net of discount $ 27,332,834 2014 NPA notes 3,700,000 Total convertible notes, net of discount $ 31,032,834 |
3. COMMITMENTS AND CONTINGENC13
3. COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Company's future obligations under its capital leases | Year: 2015 $ 19,629 2016 39,259 2017 39,259 2018 34,189 2019 19,412 151,748 Less amount representing interest (22,289 ) Capital lease obligations $ 129,459 |
Company's future obligation under the new office and vehicle leases | Year: 2015 $ 81,624 2016 165,678 2017 167,786 2018 172,418 2019 44,082 Total $ 631,588 |
4. EQUITY COMPENSATION (Tables)
4. EQUITY COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity Compensation Tables | |
Schedule of Stock Options Outstanding | Weighted Weighted Average Aggregate Number of Average Remaining Intrinsic Shares Exercise Price Contractual Term Value Outstanding, December 31, 2014 403,661 $ 1.45 Cancelled (42,312 ) 1.53 Issued - - Outstanding, June 30, 2015 361,349 $ 1.44 4.12 $ 53,707 Vested and exercisable, June 30, 2015 242,521 $ 1.36 4.55 $ 47,361 |
2. DEBT (Details)
2. DEBT (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Details | ||
Comerica Bank LSA | $ 5,000,000 | $ 5,000,000 |
Capital leases obligations - Noteholder lease | 103,222 | 113,093 |
Capital lease obligations - Office furniture | 26,237 | 29,922 |
Convertible notes - related parties, net of discount of $3,172,037 and $4,338,901, respectively | 30,352,194 | 25,985,330 |
Convertible notes, net of discount of $50,129 | 680,640 | 680,640 |
Total debt | 36,162,293 | 31,808,985 |
Less: current portion of long term debt | ||
Capital lease obligations | 28,225 | 28,378 |
Comerica Bank LSA | 5,000,000 | 0 |
Total current portion of long term debt | 5,028,225 | 28,378 |
Debt - long term | $ 31,134,068 | $ 31,780,607 |
2. DEBT (Details 1)
2. DEBT (Details 1) | Jun. 30, 2015USD ($) |
Convertible notes, net of discount | $ 31,032,834 |
2007 NPA notes, net of discount | |
Convertible notes, net of discount | 27,332,834 |
2014 NPA notes | |
Convertible notes, net of discount | $ 3,700,000 |
3. COMMITMENTS AND CONTINGENC17
3. COMMITMENTS AND CONTINGENCIES (Details) | Jun. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,015 | $ 19,629 |
2,016 | 39,259 |
2,017 | 39,259 |
2,018 | 34,189 |
2,019 | 19,412 |
Thereafter | 0 |
Less amount representing interest | (22,289) |
Capital lease obligations | $ 129,459 |
3. COMMITMENTS AND CONTINGENC18
3. COMMITMENTS AND CONTINGENCIES (Details 1) | Jun. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,015 | $ 81,624 |
2,016 | 165,678 |
2,017 | 167,786 |
2,018 | 172,418 |
2,019 | 44,082 |
Total | $ 631,588 |
4. EQUITY COMPENSATION (Details
4. EQUITY COMPENSATION (Details) - 6 months ended Jun. 30, 2015 - USD ($) | Total |
Equity Compensation Details | |
Number of Shares Outstanding, Beginning | 403,661 |
Number of Shares Cancelled | (42,312) |
Number of Shares Issued | 0 |
Number of Shares Outstanding, Ending | 361,349 |
Stock Options Vested and Exercisable Number of Shares | 242,521 |
Weighted Average Exercise Price Outstanding, Beginning | $ 1.45 |
Weighted Average Exercise Price Cancelled | 1.53 |
Weighted Average Exercise Price Issued | 0 |
Weighted Average Exercise Price Outstanding, Ending | 1.44 |
Weighted Average Exercise Price Vested and exercisable, Ending | $ 1.36 |
Weighted Average Remaining Contractual Life (in years) Outstanding | 4 years 1 month 13 days |
Weighted Average Remaining Contractual Life (in years) Vested and expected to vest | 4 years 6 months 18 days |
Aggregate Intrinsic Value Outstanding | $ 53,707 |
Aggregate Intrinsic Value vested and expected to vest | $ 47,361 |
5. MAJOR CUSTOMERS AND CONCEN20
5. MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Details Narrative) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Two Customer | ||
Percentage of revenues from major customers | 33.00% | 28.00% |
Five Customer | ||
Percentage of accounts receivables from major customers | 69.00% | 75.00% |