Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 15, 2013 | |
Document And Entity Information Abstract | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Entity Registrant Name | 'E-DEBIT GLOBAL CORP. | ' |
Entity Central Index Key | '0001129120 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 320,046,834 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheet (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash | $15,181 | $46,898 |
Restricted cash | 92,686 | 188,236 |
Accounts receivable net of allowance for doubtful accounts of $22,468 and $23,413 | 50,182 | 37,791 |
Other receivable - related parties | 12,336 | 16,535 |
Inventory | 64,978 | 68,628 |
Prepaid expense and deposit | 2,361 | 9,022 |
Total current assets | 237,724 | 367,110 |
Property and equipment, net of depreciation | 149,774 | 225,190 |
Investment, at cost | 40 | 20 |
Intangible Assets, net of amortization | 10,447 | 43,926 |
Total assets | 397,985 | 636,246 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 562,795 | 396,988 |
Accrued liabilities | 79,512 | 98,026 |
Loans payable | 239,342 | 287,047 |
Indebtedness to related parties | 1,468,382 | 1,517,601 |
Shareholder loans | 297,265 | 292,741 |
Total current liabilities | 2,647,296 | 2,592,403 |
Total liabilities | 2,647,296 | 2,592,403 |
COMMITMENTS AND CONTINGENCIES (Notes 1,4,9,10,11,12,15) | ' | ' |
STOCKHOLDERS' DEFICIT | ' | ' |
Preferred stock - authorized 200,000,000 shares, no par value, 81,518,410 shares issued and outstanding at September 30, 2013 and 81,518,410 at December 31, 2012 | 1,475,493 | 1,475,493 |
Common stock - authorized 10,000,000,000 shares, no par value; 320,046,834 shares issued and outstanding at September 30, 2013 and 320,046,834 at December 31, 2012 | 2,212,392 | 2,212,392 |
Additional paid-in capital | 1,009,414 | 654,018 |
Accumulated other comprehensive income | 165,883 | 86,207 |
Accumulated deficit | -7,112,493 | -6,384,267 |
Total stockholders' deficit | -2,249,311 | -1,956,157 |
Total liabilities and stockholders' Deficit | $397,985 | $636,246 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheet (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Condensed Consolidated Balance Sheet [Abstract] | ' | ' |
Allowance for doubtful accounts | $22,468 | $23,413 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, no par value | $0 | $0 |
Preferred stock, shares issued | 81,518,410 | 81,518,410 |
Preferred stock, shares outstanding | 81,518,410 | 81,518,410 |
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 |
Common stock, no par value | $0 | $0 |
Common stock, shares issued | 320,046,834 | 320,046,834 |
Common stock, shares outstanding | 320,046,834 | 320,046,834 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations(USD ($)) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenue - | ' | ' | ' | ' |
Equipment and supplies | $3,109 | $2,963 | $11,608 | $3,018 |
Residual and interchange income | 247,106 | 591,496 | 765,532 | 1,761,765 |
Other | 6,348 | 10,200 | 28,321 | 57,724 |
Total revenue | 256,563 | 604,659 | 805,461 | 1,822,507 |
Cost of sales - | ' | ' | ' | ' |
Equipment and supplies | 2,318 | 3,039 | 9,746 | 13,492 |
Residual and interchange costs | 140,838 | 376,337 | 433,293 | 1,142,926 |
Other | 103,167 | 130,021 | 347,702 | 438,294 |
Total cost of sales | 246,323 | 509,397 | 790,741 | 1,594,712 |
Gross profit | 10,240 | 95,262 | 14,720 | 227,795 |
Operating expenses - | ' | ' | ' | ' |
Depreciation and amortization | 25,130 | 24,305 | 82,192 | 78,007 |
Consulting fees | 38,041 | 39,692 | 115,897 | 129,237 |
Legal and accounting fees | 8,764 | 9,872 | 57,424 | 54,957 |
Salaries and benefits | 96,362 | 121,324 | 329,077 | 374,865 |
Travel, delivery and vehicle expenses | 18,637 | 25,578 | 22,390 | 38,963 |
Other | 57,713 | 81,813 | 168,513 | 273,019 |
Total operating expenses | 244,647 | 302,584 | 775,493 | 949,048 |
(-Loss-) from operations | -234,407 | -207,322 | -760,773 | -721,253 |
Other income (expense) - | ' | ' | ' | ' |
Interest expense | -30,346 | -22,480 | -95,085 | -108,990 |
Gain on sale | ' | ' | 107,548 | 263,418 |
Other income | 20,084 | 10,079 | 20,084 | 10,079 |
Net (-loss-) before income taxes | -244,669 | -219,723 | -728,226 | -556,746 |
Provision for income taxes | ' | ' | ' | ' |
Net (-loss-) | ($244,669) | ($219,723) | ($728,226) | ($556,746) |
Basic net (-loss-) per common share | $0 | $0 | $0 | $0 |
Weighted number of shares outstanding | 320,046,834 | 252,222,677 | 320,046,834 | 147,573,788 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Condensed Consolidated Statemenst of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net (-loss-) | ($244,669) | ($219,723) | ($728,226) | ($556,746) |
Other comprehensive income (-loss-), net of tax | ' | ' | ' | ' |
Foreign currency translation adjustment | -42,316 | -47,560 | 79,676 | -48,872 |
Other comprehensive income (-loss-), net of tax | -42,316 | -47,560 | 79,676 | -48,872 |
Comprehensive (-loss-) | ($286,985) | ($267,283) | ($648,550) | ($605,618) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Changes in Stockholders' Deficit (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated (Deficit) [Member] |
Balance at Dec. 31, 2012 | ($1,956,157) | $1,475,493 | $2,212,392 | $654,018 | $86,207 | ($6,384,267) |
Balance, shares at Dec. 31, 2012 | 320,046,834 | 81,518,410 | 320,046,834 | ' | ' | ' |
Forgiveness of debt related parties | 355,396 | ' | ' | 355,396 | ' | ' |
Other comprehensive income, net of tax | 79,676 | ' | ' | ' | 79,676 | ' |
Net income for the nine months ended September 30, 2013 | -728,226 | ' | ' | ' | ' | -728,226 |
Balance at Sep. 30, 2013 | ($2,249,311) | $1,475,493 | $2,212,392 | $1,009,414 | $165,883 | ($7,112,493) |
Balance, shares at Sep. 30, 2013 | 320,046,834 | 81,518,410 | 320,046,834 | ' | ' | ' |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net (loss) income from operations | ($728,226) | ($556,746) |
Reconciling adjustments - | ' | ' |
Depreciation and amortization | 82,192 | 78,007 |
Bad debt | 10,521 | ' |
Changes in operating assets and liabilities | ' | ' |
Restricted cash | 95,550 | -546,782 |
Accounts receivable | -8,192 | 1,784 |
Inventory | 3,650 | 14,058 |
Prepaid expenses and other | 6,661 | 15,410 |
Accounts payable and accrued liabilities | 147,293 | 309,113 |
Net cash (used for) provided by operations | -390,551 | -685,156 |
Cash flows from investing activities: | ' | ' |
Purchase of equipment | -6,859 | ' |
Disposal of equipment | ' | ' |
Net cash (used for) provided by investing activities | -6,859 | ' |
Cash flows from financing activities: | ' | ' |
Indebtedness to related parties | 230,833 | 584,560 |
Repayments to related parties | -102,956 | -208,965 |
Proceeds from related parties | 213,721 | 164,235 |
Proceeds from loans | ' | 126,003 |
Repayments of loans | -55,581 | ' |
Net cash (used for) provided by financing activities | 286,017 | 665,833 |
Foreign currency translation adjustment | 79,676 | -48,872 |
Net change in cash and cash equivalents | -31,717 | -68,195 |
Cash at beginning of year | 46,898 | 96,492 |
Cash at end of year | 15,181 | 28,297 |
Supplemental schedules: | ' | ' |
Cash paid for interest | 22,341 | 27,924 |
Cash paid for income taxes | ' | ' |
Noncash investing and financing activities | ' | ' |
Shares issued for the settlement of debt | ' | 235,460 |
Forgiveness of debt - related party | 355,396 | ' |
Transfer fixed assets to inventory | $21,184 | ' |
Basis_of_Presentation_and_Natu
Basis of Presentation and Nature of Operations | 9 Months Ended |
Sep. 30, 2013 | |
Basis Of Presentation And Nature Of Operations [Abstract] | ' |
Basis of Presentation and Nature of Operations | ' |
Note 1 - Basis of Presentation and Nature of Operations | |
The accompanying consolidated balance sheet as of December 31, 2012 has been derived from audited financial statements and the accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the interim reporting requirements of Regulation S-X. The accompanying interim consolidated financial statements included herein have been prepared by E-Debit Global Corporation (the "Corporation") without audit, pursuant to the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. In management's opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Certain information and footnote disclosure normally included in the financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted as allowed by such rules and regulations, and E-Debit Global Corporation believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these financial statements be read in conjunction with the December 31, 2012 audited financial statements and the accompanying notes thereto contained in the Annual Report on Form 10-K filed with the Securities and Exchange Commission. While management believes the procedures followed in preparing these financial statements are reasonable, the accuracy of the amounts are in some respects dependent upon the facts that will exist, and procedures that will be accomplished by E-Debit Global Corporation later in the year. The results of operations for the interim periods are not necessarily indicative of the results of operations for the full year. In management's opinion all adjustments necessary for a fair presentation of the Corporation's financial statements are reflected in the interim periods included. | |
Westsphere Asset Corporation, Inc. (Corporation) was incorporated in Colorado on July 21, 1998 as Newslink Networks TDS, Inc. and changed its name to Westsphere Asset Corporation Inc. on April 29, 1999. On April 2, 2010, the Corporation officially changed its name to E-Debit Global Corporation. | |
On September 18, 2012, the Corporation amended its articles of incorporation to increase its authorized capital to Ten Billion (10,000,000,000) shares of no par value common stock and Two Hundred Million (200,000,000) of no par value preferred stock. | |
The Corporation's primary business is the sale and operation of cash vending (ATM) and point of sale (POS) machines in Canada. | |
Reclassification | |
Certain amounts previously reported have been reclassified to conform to current presentation. Certain labels of accounts/classifications have been changed. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Recent Accounting Pronouncements [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Note 2 - Recent Accounting Pronouncements | |
In July 2013, the FASB amended Accounting Standards Codification ("ASC") 740, "Income Taxes." The amendment provides guidance on the financial statement presentation of an unrecognized tax benefit, as either a reduction of a deferred tax asset or as a liability, when a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward exists. The amendments will be effective for interim and annual periods beginning after December 15, 2013 and may be applied on a retrospective basis. Early adoption is permitted. We do not anticipate that this adoption will have a significant effect on our financial position, results of operation or cash flows. | |
In March 2013, the Financial Accounting Standards Board ("FASB") issued new accounting guidance clarifying the accounting for the release of cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a non-profit activity or a business within a foreign entity. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. We do not anticipate that this adoption will have a significant impact on our financial position, results of operations or cash flows. | |
In February 2013, FASB issued new accounting guidance clarifying the accounting for obligations resulting from joint and several liability arrangements for which the total amount under the arrangement is fixed at the reporting date. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. We do not anticipate that this adoption will have a significant impact on our financial position, results of operations or cash flows. | |
A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, management has not determined whether implementation of such proposed standards would be material to our consolidated financial statements. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||
Sep. 30, 2013 | |||
Fair Value Measurements [Abstract] | ' | ||
Fair Value Measurements | ' | ||
Note 3 - Fair Value Measurements | |||
The carrying amounts of current assets and current liabilities approximate fair value because of the short-term nature or the current rates at which the Corporation could borrow funds with similar remaining maturities. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment, and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates. The Corporation does not hold or issue financial instruments for trading purposes, nor does it utilize derivative instruments. | |||
The FASB ASC clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows: | |||
Level 1 | Quoted prices in active markets for identical assets or liabilities. | ||
Level 2: | Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability. | ||
Level 3: | Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | ||
The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Restricted_cash
Restricted cash | 9 Months Ended |
Sep. 30, 2013 | |
Restricted cash [Abstract] | ' |
Restricted cash | ' |
Note 4 - Restricted cash | |
The Corporation relies on a contractual agreement with Moneris Solution Corporation to settle daily ATM vault cash dispensements throughout our ATM Network into our bank account. The ATM vault cash will be settled to the cash owners within 24 hours turn around. |
Accounts_Receivable
Accounts Receivable | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounts Receivable [Abstract] | ' | ||||||||
Accounts Receivable | ' | ||||||||
Note 5 - Accounts Receivable | |||||||||
Accounts receivable consists of amounts due from customers. The nature of the receivables consists of equipment sales, parts and accessories, and service provided. The Corporation considers accounts more than 180 days old to be past due, since the Corporation can withhold the transactions revenue owed to the customers should their receivables become past due. The account is deemed uncollectible and written off when the site locations are out of business and or in receivership. The Corporation uses the allowance method for recognizing bad debts. When an account is deemed uncollectible, it is written off against the allowance. | |||||||||
September 30, 2013 | 31-Dec-12 | ||||||||
Accounts Receivable | |||||||||
Equipment | - | $ | 597 | ||||||
Services | 1,455 | - | |||||||
Surcharge fee | 5,889 | 6,873 | |||||||
Partial Dispense | 10,119 | 12,733 | |||||||
Sale of ATM Contracts | 19,413 | 30,153 | |||||||
GST refund | 12,040 | 10,848 | |||||||
Other | 23,734 | - | |||||||
72,650 | $ | 61,204 | |||||||
Less: Allowance for doubtful accounts | (22,468 | ) | (23,413 | ) | |||||
$ | 50,182 | $ | 37,791 | ||||||
The bad debt expense for the nine months ended September 30, 2013 and September 30, 2012 totaled $0 and $10,923, respectively. The bad debt is reflected in the accompanying consolidated Statements of Operations as Other operating expenses. |
Inventory
Inventory | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
Note 6 - Inventory | |||||||||
Inventory consists of the following elements: | |||||||||
Quantity | Cost | ||||||||
31-Dec-12 | |||||||||
ATM | 27 | $ | 68,628 | ||||||
Parts and accessories | - | - | |||||||
Total | $ | 68,628 | |||||||
Quantity | Cost | ||||||||
September 30, 2013 | |||||||||
ATM | 28 | $ | 64,978 | ||||||
Parts and accessories | - | - | |||||||
Total | $ | 64,978 | |||||||
Inventories are valued at the lesser of cost (on a first-in, first-out method) or net realizable value. |
Property_and_Equipment
Property and Equipment | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
Note 7 - Property and Equipment | |||||||||
Property and equipment in service consists of the following elements: | |||||||||
Cost | Accumulated | Net | Depreciation | ||||||
Depreciation/ | Book Value | Rate | |||||||
Amortization | and | ||||||||
Method | |||||||||
December 31, 2012 - | |||||||||
Office furniture and equipment | $ | 62,380 | $ | 38,947 | $ | 23,433 | 20% DB | ||
Computer hardware and software | 180,349 | 142,516 | 37,833 | 30% DB | |||||
ATM machines | 210,627 | 47,789 | 162,838 | 30% DB | |||||
Other | 7,494 | 6,408 | 1,086 | Var | |||||
$ | 460,850 | $ | 235,660 | $ | 225,190 | ||||
September 30, 2013 - | |||||||||
Office furniture and equipment | $ | 39,049 | $ | 31,661 | $ | 7,388 | 20% DB | ||
Computer hardware and software | 145,936 | 115,176 | 30,760 | 30% DB | |||||
ATM machines | 161,306 | 49,942 | 111,364 | 30% DB | |||||
Other | 8,180 | 7,918 | 262 | Var | |||||
$ | 354,471 | $ | 204,697 | $ | 149,774 | ||||
There are no leased ATMs included in the Corporation's property and equipment for the nine months ended September 30, 2013 and for the year ended December 31, 2012. | |||||||||
Depreciation and amortization have been provided in amounts sufficient to recover asset costs over their estimated useful lives. All components of property and equipment are being depreciated or amortized. Depreciation and amortization expense for the nine months ended September 30, 2013 and September 30, 2012 totaled $82,192 and $78,007, respectively. |
Deferred_CostsIntangible_Asset
Deferred Costs/Intangible Assets | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Deferred Costs/Intangible Assets [Abstract] | ' | |||||||||||||
Deferred Costs/Intangible Assets | ' | |||||||||||||
Note 8 - Deferred Costs/Intangible Assets | ||||||||||||||
On the 9th of November 2007, E-Debit contracted with ACI Worldwide through its wholly owned subsidiary Westsphere Systems Inc. (WSI) to provide its ACI 'Base 24 On Demand" (AOD) hosted solution for ATM and POS transaction acquiring where WSI shares responsibilities with ACI as the transaction processor. ACI hosts the processing environment which is set up to specific requirements as set out by WSI, which supports WSI ATM and POS devices, debit and credit transaction processing and card management requirement that is unique and scalable to WSI's current and future requirements and not shared with other ACI customers. ACI supplies software acquisition, operation and maintenance, facilities, operations and environment development and maintenance and disaster recovery infrastructure and services; whereby WSI supports, authorizes and distributes all settlements and revenues distributions through its account maintenance software developed by WSI and specific to ACI On Demand processing platform. | ||||||||||||||
As a result Westsphere Systems Inc. processed all transactions through its association with ACI hosted transaction processing solution eliminating the costs, restrictions, and potential risks of relying on third party processors. | ||||||||||||||
The Corporation capitalized costs related to development of software totaling $168,690 in 2007. The Corporation is amortizing these costs over its expected life. E-Debit officially launched its switch in January 2009 and commenced rollover of ATMs to process all transactions through its association with ACI. The deferred costs were reclassified as intangible assets upon the completion of all the specific requirements including coding and testing in year 2009. The Corporation assessed the useful life of the intangible asset in relation to its five-year contract with ACI commencing November 2008. The Corporation also determined the technology may be outdated at the end of the term of the contract and an enhancement of the software may be required at that time. | ||||||||||||||
Depreciation is calculated using a declining balance method. | ||||||||||||||
Intangible assets consist of the following elements: | ||||||||||||||
Cost | Accumulated | Depreciation | ||||||||||||
Amortization | Net | Method | ||||||||||||
Book Value | ||||||||||||||
December 31, 2012 - | ||||||||||||||
License - ACI | $ | 168,690 | $ | 134,953 | $ | 33,737 | Straight-line | |||||||
Patent | 15,076 | 14,416 | 660 | Straight-line | ||||||||||
License - Paragon | 18,319 | $ | 8,790 | 9,529 | Straight-line | |||||||||
$ | 202,085 | $ | 158,159 | $ | 43,926 | |||||||||
September 30, 2013 - | ||||||||||||||
License - ACI | $ | 162,906 | $ | 154,763 | $ | 8,143 | Straight-line | |||||||
Patent | 15,255 | 15,255 | - | Straight-line | ||||||||||
License - Paragon | 17,691 | $ | 15,387 | 2,304 | Straight-line | |||||||||
$ | 195,852 | $ | 185,405 | $ | 10,447 | |||||||||
Depreciation and amortization have been provided in amounts sufficient to recover asset costs over their estimated useful lives. Depreciation and amortization expense for the nine months ended September 30, 2013 and September 30, 2012 totaled $27,246 and $27,910, respectively. This depreciation and amortization expense was part of the totals which are reflected in the accompanying consolidated statements of operations as Depreciation and amortization. | ||||||||||||||
Expected future depreciation and amortization of the intangible assets are as follows: | ||||||||||||||
Year | Amount | |||||||||||||
2013 | $10,447 | |||||||||||||
Loans_Payable
Loans Payable | 9 Months Ended |
Sep. 30, 2013 | |
Loans Payable [Abstract] | ' |
Loans Payable | ' |
Note 9 - Loans Payable | |
In September 2007, Vencash entered into a loan agreement with an initial term of twelve months totaling $97,063 ($100,000 CDN) with an external arms-length investor, bearing interest at 12% per annum, with blended monthly payments of interest only of $942 ($1,000 CDN). The initial term may be automatically extended for further six (6) month terms (a "renewal period") after the end of the initial term or terminated subject to mutual termination agreements. The investor must give a written notice not less than 90 days before the end of the initial term or renewal period, whichever the case may be, to not renew the loan agreement. Vencash must notify the investor not less than 60 days before the end of the initial term or renewal period, its intention to terminate the loan. Currently, no written notice has been received from the investor to Vencash or vice versa. | |
As of September 30, 2013, the balance is $97,063 ($100,000 CDN). This loan is included in the accompanying consolidated balance sheet as Loans payable. | |
In November 2007, Westsphere's subsidiary Westsphere Systems Inc. (WSI) raised $126,389 ($131,000 CDN) through a loan agreement with an initial term of twenty-four months with an external arms-length investor, bearing interest at 12% per annum, with blended monthly payments of interest only of $1,261 ($1,310 CDN). The initial term may be automatically extended for further twelve month terms (a "renewal period") after the end of the initial term or terminated subject to mutual termination agreements. The investor must give a written notice not less than 90 days before the end of the initial term or renewal period, whichever the case may be, to not renew the loan agreement. Vencash must notify the investor not less than 30 days before the end of the initial term or renewal period, its intention to terminate the loan. Currently, no written notice has been received from the investor to WSI or vice versa. The purpose of the loan was to fund the switch development project. In February 2010, the loan was reduced by $62,212 ($65,000 CDN) in exchange for 622,123 common shares at $0.10 per share. In May 2012, the loan was reduced by $981 ($998 CDN) in offsetting against the expenses. In September 2012, the loan was reduced by $59 ($60 CDN) in offsetting against the expenses. In December 2012, WSI recorded an accrued interest of $4,324 ($4,547 CDN). In March 2013, WSI recorded an accrued interest of $1,914 ($1,947 CDN). In June 2013, WSI recorded an accrued interest of $1,852 ($1,947 CDN). In September 2013, WSI recorded an accrued interest of $1,890 ($1,947 CDN). As of September 30, 2013, the balance is $73,117 ($75,330 CDN). This loan is included in the accompanying consolidated balance sheet as loans payable. | |
On December 20, 2011 the Corporation and its subsidiaries jointly and severally entered into a Demand Loan Agreement and related GSA with an investor for a loan of $196,643 ($200,000 CDN) at a prime lending rate of Canadian Prime plus four (4%) percent. Under the GSA, this debt is collateralized by all of the Corporation's assets. Upon demand the Corporation has forty-five (45) days to repay the Demand Loan and interest. On October 24, 2012, the loan was repaid by $105,588 ($107,390 CDN). On December 5, 2012, the loan was repaid by $75,218 ($76,503 CDN). In June 2013, the loan was repaid by $15,837 ($16,107 CDN). As of September 30, 2013, the balance is $0. This loan is included in the accompanying consolidated balance sheet as Loans payable. | |
On August 15, 2012 the Corporation and its subsidiaries jointly and severally entered into a Demand Loan Agreement and related GSA with an arms-length third party investor for a loan of $95,852 ($100,000 CDN) at a prime lending rate of Canadian Prime plus four (4%) percent. Under the GSA, this debt is collateralized by all of the Corporation's assets. Upon demand the Corporation has forty-five (45) days to repay the Demand Loan and interest. In March 2013, E-Debit recorded an accrued interest of $1,836 ($1,868 CDN). In June 2013, E-Debit recorded an accrued interest of $2,023 ($2,070 CDN). In June 2013, the loan was repaid by $31,743 ($33,924 CDN). In September 2013, E-Debit recorded an accrued interest of $1,194 ($1,242 CDN). As of September 30, 2013, the balance is $69,162 ($71,256 CDN). This loan is included in the accompanying consolidated balance sheet as Loans payable. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Commitments and Contingencies [Abstract] | ' | ||||||||
Commitments and Contingencies | ' | ||||||||
Note 10 - Commitments and Contingencies | |||||||||
The Corporation leases real estate (office and warehouse space) under non-cancellable operating leases that expire on varying dates through 2014. | |||||||||
The Corporation leases additional real estate (office and warehouse space) for an "Initial Term" commencing June 1, 2010 on a month to month basis. The Corporation may renew the Lease on a monthly basis by giving notice to the Landlord. | |||||||||
The Corporation also has an obligation for an equipment lease through 2016. | |||||||||
The Corporation's real estate leases are with an affiliated Corporation that is controlled by the Corporation's president. | |||||||||
Minimum future rental payments under non-cancellable operating leases having remaining terms in excess of one year are as follows: | |||||||||
Real Estate | Other | ||||||||
2013 | $ | 17,492 | $ | 943 | |||||
2014 | $ | 11,742 | $ | 4,434 | |||||
2015 | $ | - | $ | 4,434 | |||||
2016 | $ | - | $ | 2,217 | |||||
30-Sep-13 | 31-Dec-12 | ||||||||
Rental expense | $ | 79,795 | $ | 96,602 | |||||
On May 28, 2004 Peter Gregory filed an action in the Ontario Superior Court of Justice against Vencash Capital Corporation. Peter Gregory was a former Vencash distributor and agent who filed the action related to a claim of wrongful dismissal from Vencash for $260,000 (CDN). On July 30, 2004 Vencash filed a Statement of Defence and Counterclaim in the amount of $1,600,000 for breach of contract, breach of confidence, breach of fiduciary duties, interference with economic relations, damages for inducing breach of contract, and punitive damages. The Corporation believes the claim by Gregory to be without merit. In January 2012, the Corporation received a copy of notice of garnishment from our bank institution against Vencash's bank account for the total amount not to exceed $31,649 CDN. The Corporation did not receive the notification for the judgement and this notice was rescinded by the bank upon delivery. As of September 2013 the Corporation has not been contacted further relating to the action initiated by Gregory. The Corporation is currently reviewing the related correspondence and is in consultation with legal counsel and upon completion of the review will respond to any further action initiated by Gregory in this regard. | |||||||||
On January 25, 2009, Victory ATM filed an action in the Nova Scotia Superior Court against Vencash Capital Corporation. Victory ATM was formerly a customer of Vencash distributor Bullion Investments Inc. and claimed that supplied vault cash to a contracted armoured car Corporation had been misappropriated for a total of approximately $45,000 CDN. The Corporation has filed a statement of defense stating that Vencash had no care control or access to the vault cash supplied by Victory ATM and the only role that Vencash played was processing the Victory ATM transactions in their designated site locations. The Corporation believes the claim by Victory ATM to be without merit and has not accrued a liability for the claim. As of September 2013, our Nova Scotia legal counsel has advised that the plaintiff revived its action against Vencash Capital Corporation. The Corporation is currently reviewing the related correspondence and is in consultation with legal counsel and upon completion of the review will respond to any further action initiated by Victory ATM in this regard. | |||||||||
On December 11, 2012, Mainland Investments, Inc. and Research Driven Investor, LLC filed an action in the Alberta Court of Queen's Bench against E-Debit Global Corporation, E-Debit's officers, and various other parties. Mainland Investment Inc. and Research Driven Investor, LLC (RDI) (specialized investor relations firms) claimed for a total of $150,000 CDN related to an alleged investor relations consulting agreement between RDI and the Corporation. On February 4, 2013, the Corporation and E-Debit's officers have filed a statement of defense denying that there had ever existed an agreement between RDI and E-Debit. The Corporation has a signed Investor Relations Consulting Agreement with Open Waters Investments Inc. (OWI) and deny that OWI ever had authority to enter into written or oral agreement with RDI on behalf of E-Debit, or that E-Debit ever contractually agreed to or represented that it had appointed RDI as its advisor. The Corporation believes the claim by Mainland Investments, and Research Drive Investor, LLC to be without merit and has not accrued a liability for the claim. As of September 2013, there has been no change in this action since last filing. The Corporation will respond to any further action initiated by Mainland Investments, Inc. and Research Driven Investor, LLC in this regard. | |||||||||
On December 14, 2012, Trans-Armored Canada Inc. filed an action in the Nova Scotia Superior Court against Westsphere Systems Inc. (WSI). Trans-Armored Canada Inc. (TAC) was formerly a contracted armoured car Corporation to deliver vault cash to site locations and claimed for a total outstanding debt of $34,325 CDN. As set out in the 15th of August 2007 TAC/Vencash Agreement, the Corporation's President and Chief Executive Officer sits as a member of the board of directors and represents 50% of TAC's board of directors. The Corporation has released what it believes to be the full and final payment to TAC in May 2012 where the Corporation and TAC mutually agreed to offset the full amount of deposit due from TAC against the accounts payable owed to TAC. The Corporation believes the claim by Trans-Armored Canada Inc. to be without merit and has not accrued a liability for the claim. As of September 2013, there has been no change in this action since last filing. The Corporation will respond to any further action initiated by Trans-Armored Canada Inc. in this regard. | |||||||||
Since 2009, Interac, MasterCard and VISA have mandated a hardware and software security upgrade for ATMs, Debit Terminals and the Corporation's Switch. | |||||||||
Security upgrades are required under Interac, MasterCard, and VISA rules. These upgrades include the requirements to have: | |||||||||
(a) | EMV (Europay, MasterCard, VISA) certified chip card (the replacement technology for the historical magnetic stripe cards)software/readers, and | ||||||||
(b) | network approved encrypted PIN pad ("EPP") devices, installed on all ATMs and debit terminals: thereby providing the ability to accept EMV chip card transactions. This has required and will also require further upgrading the Corporation's Switch to process EMV chip card transactions, and adding additional encryption methods to Corporations managed ATMs and Debit terminals, Triple DES Encryption. | ||||||||
The Corporation's understanding of the deadlines mandated by Interac and MasterCard for conversion of ATMs and debit terminals (i.e. to read the EMV microchip on a card rather than a magnetic stripe) are as follows: | |||||||||
(a) | 50% of all ATMs had to upgraded with an EMV certified chip pin entry device by December 31, 2011 and 100% of ATMs must be upgraded by December 31, 2012; | ||||||||
(b) | 35% of debit terminals had to upgraded with an EMV certified chip pin entry device by December 31, 2010, 60% must be converted by December 31, 2012, and 100% must be upgraded by December 31, 2015. | ||||||||
VISA's rule changes do not require a switch to the new technology by any particular date. However, both MasterCard and VISA rules provide that after March 31, 2011, certain liabilities (i.e. in respect of transaction errors or frauds) will be reallocated to industry participants who are still accessing the MasterCard and VISA networks using non-upgraded equipment, cards or software. | |||||||||
In addition to the security upgrades to ATM and Debit Terminals, in order to access Interac, cards (i.e. the debit cards issued by financial institutions) had to upgraded (i.e. reissued) to have EMV chips installed: 65% by December 31 2011 and 100% by December 31, 2012. | |||||||||
The result of non-compliance can include penalties, fines, sanctions and contractual penalties by the applicable Network(s) and ultimately disconnection of the ATM and Debit Terminal device or card from the Network for failure to comply by the end dates. The Corporation will be investing maintenance capital and upgrading its IT department to meet these upgrade deadlines. The Corporation's customers who own their own equipment are encouraged to make the necessary changes to their equipment and in some cases the Corporation has the contractual right to make the necessary changes for the customer (and charge the customer for the cost of the change). | |||||||||
Management believes that the Corporation and/or its subsidiaries are in compliance 100% with EMV requirements. | |||||||||
Related_Party_transactions
Related Party transactions | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Related Party transactions [Abstract] | ' | ||||||||||
Related Party transactions | ' | ||||||||||
Note 11 - Related Party transactions | |||||||||||
Investment, at cost: | |||||||||||
In October 2010, E-Debit sold 41 common shares (41%) of the issued and outstanding shares held in its wholly owned subsidiary, 1105725 Alberta Ltd. o/a Personal Financial Solutions (PFS) at $1.00 per share. The common shares were sold to a number Corporation that is controlled by an officer of E-Debit. The purchaser agrees that the current outstanding advances made to the Corporation by E-Debit will remain outstanding and owed by the related party to E-Debit. As a result of the sale transaction, E-Debit remains a 10% shareholder in Personal Financial Solutions. PFS has had no active business activities for the last four years. The 10% or $10 interest in Personal Financial Solutions is reflected in the accompanying consolidated balance sheet as investment, at cost. | |||||||||||
In May 2011, E-Debit sold 90 common shares (90%) of the issued and outstanding shares held in its wholly owned subsidiary, Cash Direct Financial Services Ltd. (CDF) at $1.00 per share. The common shares were sold to a number Corporation that is controlled by the president of E-Debit. The purchaser agreed that the current outstanding advances made to Cash Direct by the Corporation will remain outstanding and owed by the related party to E-Debit. As a result of the sale transaction, E-Debit remains a 10% shareholder in Cash Direct Financial Services. CDF commenced the sale of ATMs in 2012. The 10% or $10 interest in Cash Direct Financial Services is reflected in the accompanying consolidated balance sheet as investment, at cost. | |||||||||||
On December 13, 2012, Group Link Inc. ("Group Link") was incorporated under the laws of the Province of Alberta as the foundation of the re-establishment of our nationwide distribution network, which in the past allowed for our presence in the Canadian marketplace. | |||||||||||
The Corporation was the majority shareholder of Group Link holding 55% of the issued and outstanding common stock of the Corporation. The Corporation's Chief Executive Officer is Group Link's Chief Executive Officer and Director and holds personally 15% of the issued and outstanding common stock of Group Link. E-Debit's Chief Operating Officer is a Director and personally holds 10% of the issued and outstanding common stock of Group Link. Group Link's President and Group Link's Chief Development Officer both are Directors of Group Link and each hold 10% of the issued and outstanding common stock of the Group Link. | |||||||||||
In May 2013, E-Debit sold 45 common shares (45%) of the issued and outstanding shares held in its majority shareholder of Group Link Inc. at $1.00 per share. The common shares were sold to Screenfin Inc. that is controlled by the Group Link's President. The purchaser agreed that the current outstanding advances made to Group Link by the Corporation will remain outstanding and owed to E-Debit. Terms and conditions of the sale leave E-Debit with a Perpetual Royalty Grant of three and six fourths (3.64%) percent of Group Link Inc. net sales as well as a Perpetual Group Link share position of 10% with Board of Director appointment of a minimum of twenty (20%) percent. As a result of the sale transaction, E-Debit remains a 10% shareholder in Group Link Inc. Group Link commenced its business activities in July 2013. The 10% or $10 interest in Group Link Inc. is reflected in the accompanying consolidated balance sheet as investment, at cost. | |||||||||||
In May 2013, E-Debit sold 90% of the issued and outstanding shares of all classes held in its wholly owned subsidiary, E-Debit International Inc. for $90. The shares of all classes were sold to two outside investors: CPM Financial Services Inc. $80 (80%) and Winsoft Technology Solutions Inc. $10 (10%). The purchaser agreed that the current outstanding advances made to E-Debit International Inc. by the Corporation will remain outstanding and owed to E-Debit. E-Debit and the Purchaser agreed E-Debit debt shall be repaid after all other debt holders have been paid. | |||||||||||
Terms and conditions of the sale leave E-Debit with a Perpetual Royalty Grant of three and two thirds (3.66%) percent of E-Debit International Inc. net sales. Winsoft will take an initial seven and quarter (7.25%) payment agreement of E-Debit International Inc. net sales until receipt of $550,000 CDN at which time Winsoft will receive a Perpetual Royalty Grant of three and two thirds (3.66%) percent of E-Debit International Inc. net sales as well as a Perpetual Group Link share position of ten (10%) of the issued and outstanding shares of all classes of E-Debit International Inc. As a result of the sale transaction, E-Debit remains a 10% shareholder in E-Debit International Inc. The 10% or $10 interest in E-Debit International Inc. is reflected in the accompanying consolidated balance sheet as investment, at cost. | |||||||||||
Other receivable - related parties: | |||||||||||
The other receivable - related parties was from the sale transaction of 41% of the subsidiary 1105725 Alberta Ltd. o/s Personal Financial Solutions (PFS) in October 2010 and sale transaction of 90% of the subsidiary Cash Direct Financial Services Ltd. (CDF) in May 2011, and sale transactions to E-Debit's directors. | |||||||||||
As of September 30, 2013 and December 31, 2012, the Corporation setup an allowance for doubtful collections of $68,435 and $52,746 respectively for the related parties' receivables, as collection was unknown. | |||||||||||
The following table summarizes the Corporation's others receivable from related parties' transactions as of September 30, 2013 and December 31, 2012: | |||||||||||
2013 | 2012 | ||||||||||
1105725 Alberta Ltd. o/a | $ | 38,785 | $ | 40,162 | |||||||
Personal Financial Solutions | |||||||||||
Cash Direct Financial Services Ltd. | 12,152 | 12,584 | |||||||||
Trans Amored Canada | 17,498 | 7,922 | |||||||||
Accounts receivable - directors | 12,336 | 8,613 | |||||||||
$ | 80,771 | $ | 69,281 | ||||||||
Less: Allowance for doubtful accounts | (68,435 | ) | (52,746 | ) | |||||||
$ | 12,336 | $ | 16,535 | ||||||||
The current outstanding advances are reflected in the accompanying consolidated balance sheet as other receivable - related parties and totaled $12,336 and $16,535, respectively, at September 30, 2013 and December 31, 2012. | |||||||||||
Real estate leases: | |||||||||||
The Corporation's real estate leases are with an affiliated Corporation that is controlled by the Corporation's president. | |||||||||||
The Corporation leases real estate (office and warehouse space) under non-cancellable operating leases that expire on varying dates through 2014. The monthly lease payment is $5,747 ($5,971 CDN). | |||||||||||
The Corporation leases additional real estate (office and warehouse space) for an "Initial Term" commencing June 1, 2010 on a month to month basis. The Corporation may renew the Lease on a monthly basis by giving notice to the Landlord. The monthly lease payment is $2,984 ($3,100 CDN). | |||||||||||
Minimum future rental payments under non-cancellable operating leases having remaining terms in excess of one year are as follows: | |||||||||||
Real Estate | |||||||||||
2013 | $ | 17,492 | |||||||||
2014 | $ | 11,742 | |||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||
Rental expense | $ | 79,795 | $ | 96,602 | |||||||
Residual and interchange costs: | |||||||||||
The following table summarizes the amounts paid by the Corporation for residual and interchange fees to related parties for the nine months ended September 30, 2013: | |||||||||||
Payable to: | 30-Sep-13 | ||||||||||
Three affiliated companies that are controlled by E-Debit's President. | $ | 13,207 | |||||||||
An affiliated Corporation that is controlled by E-Debit's vice President. | $ | 8,730 | |||||||||
An affiliated Corporation that is controlled by E-Debit's director. | $ | 1,725 | |||||||||
An affiliated Corporation that is controlled by E-Debit's director. | $ | 176 | |||||||||
Total | $ | 23,838 | |||||||||
The residual and interchange paid to related parties are in accordance with the contracts with their distributorship. The above payments are reflected in the accompanying consolidated statements of operations as residual and interchange costs. | |||||||||||
Indebtedness to related parties: | |||||||||||
The Corporation expensed $23,749 ($24,675 CDN) during the third quarter 2013 for consulting and management services to an affiliated Corporation that is controlled by the Corporation's president. This expense is reflected in the accompanying consolidated Statements of Operations as a Consulting fees. | |||||||||||
In February 2011, the Corporation and its subsidiary, Westsphere Systems Inc., jointly signed the General Security Agreement (GSA) for the current debts owed to related parties and shareholders. The Corporation has requested that the related parties and shareholders individually or collectively advance loans up to one million five hundred thousand ($1,500,000) dollars in Canadian Funds to the Corporation. The loans are due "On Demand" with initial thirty-six months (36) terms which can be renewed from the date initial funds were advanced. The interest rate is Eight (8%) percent per year and is payable quarterly. Under the GSA, these debts are collateralized by the Corporation's Accounts Receivables, Inventory, Equipment, Intangibles, Leasehold, Real and Immovable Property, and Proceeds. | |||||||||||
In December 2011, the Corporation and its subsidiaries jointly and severally, signed a General Security Agreement (GSA) as well as loan agreements related to the loan from an investor for $200,000. As a result the aforementioned GSA dated February 2011 was cancelled in order that this new loan and GSA could be filed in priority to other loans advance to the Corporation by related parties. | |||||||||||
Upon completion of the first party claim related to the December loan and GSA the Corporation and its subsidiaries jointly and severally signed a GSA for the current debts owed to related parties and shareholders. The Corporation has requested that the related parties and shareholders individually or collectively advance loans up to one million seven hundred and fifty thousand ($1,750,000) dollars in Canadian Funds to the Corporation. The loans are due "On Demand" with initial thirty-six months (36) terms which can be renewed from the date initial funds were advanced. The interest rate is Eight (8%) percent per year and is payable quarterly. Under the GSA, these debts are collateralized by the Corporation's Accounts Receivables, Inventory, Equipment, Intangibles, Leasehold, Real and Immovable Property, and Proceeds. | |||||||||||
In May 2013, the Company's president assigned $355,396 debt owed to an affiliated company that is controlled by the Company's president from the company wholly owned subsidiary, Westsphere Systems Inc. to E-Debit International Inc. The assignment of debt was considered as forgiveness of debt by related party and is reflected in the accompanying consolidated balance sheet as Additional paid-in capital. | |||||||||||
The total amount owed to related parties (consist of indebtedness to related parties and shareholder loans) as of September 30, 2013 is $1,765,647 ($1,819,075 CDN). The remaining credit available to be drawn against related to this GSA and Line of Credit is $0. | |||||||||||
The following table summarizes the Corporation's indebtedness to related parties' transactions as of September 30, 2013 and December 31, 2012: | |||||||||||
Payable to: | 30-Sep-13 | 31-Dec-12 | Terms/Maturities | Interest Rate | |||||||
A loan advanced from E-Debit's President for working capital. | $ | 85,690 | $ | 95,674 | Demand loans | 8% per annum | |||||
A loan advanced from an affiliated Corporation that is controlled by E-Debit's President for working capital. | 796,317 | 867,701 | |||||||||
Demand loans | 8% per annum | ||||||||||
A loan advanced from E-Debit's vice President for working capital. | 11,443 | 8,521 | 8% per annum | ||||||||
Demand loans | |||||||||||
A loan advanced from E-Debit's officers for working capital. | 12,569 | 6,421 | Demand loans | 8% per annum | |||||||
A loan advanced from E-Debit's directors for working capital. | 98,319 | 89,353 | Demand loans | 8% per annum | |||||||
A loan advanced from E-Debit's director for working capital. | 240,103 | 208,926 | Demand loans | No interest | |||||||
Officers' and Directors' bonuses payable carried forward from year 2002 | 26,293 | 33,611 | |||||||||
Demand loans | No interest | ||||||||||
A loan advanced from an affiliated Corporation that is controlled by E-Debit's President for working capital. | 197,648 | 207,394 | |||||||||
Demand loans | No interest | ||||||||||
Total | $ | 1,468,382 | $ | 1,517,601 | |||||||
The indebtedness to related parties as of September 30, 2013 consists of loans that are payable on demand by the related parties. The interest rate is Eight (8%) percent annually calculated and paid quarterly attached to the related party loans. There is no interest attached to a loan advanced from E-Debit's director of $240,103, the Officers' and Directors' bonuses payable carried forward from year 2002 of $26,293, and the loan advanced from an affiliated company that is controlled by E-Debit's President for working capital of $197,648. The above obligations are reflected in the accompanying consolidated balance sheet as indebtedness to related parties. | |||||||||||
The indebtedness to related parties as of December 31, 2012 consists of loans that are payable on demand by the related parties. The interest rate is Eight (8%) percent per year and is payable quarterly. There is no interest attached to a loan advanced from E-Debit's director of $208,926, the Officers' and Directors' bonuses payable carried forward from year 2002 of $33,611, and the loan advanced from an affiliated Corporation that is controlled by E-Debit's President for working capital of $207,394 at December 31, 2012. The above obligations are reflected in the accompanying consolidated balance sheet as indebtedness to related parties. |
Shareholder_loans
Shareholder loans | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Shareholder Loans [Abstract] | ' | ||||||||||
Shareholder loans | ' | ||||||||||
Note 12 - Shareholder loans | |||||||||||
In December 2011, the Corporation and its subsidiaries jointly and severally signed the General Security Agreement (GSA) for the current debts owed to related parties and shareholders. The Corporation has requested that the related parties and shareholders individually or collectively advance loans up to one million seven hundred and fifty thousand ($1,750,000) dollars in Canadian Funds to the Corporation. The terms of loans are "On Demand" with initial thirty-six months (36) terms which can be renewed from the date initial funds were advanced. The interest rate is Eight (8%) percent annually calculated and paid quarterly. Under the GSA, these debts are collateralized by the Corporation's Accounts Receivables, Inventory, Equipment, Intangibles, Leasehold, Real and Immovable Property, and Proceeds. | |||||||||||
The following table summarizes the Corporation's shareholder loans transactions as of September 30, 2013 and December 31, 2012: | |||||||||||
Payable to: | 30-Sep-13 | December 31, 212 | Terms/Maturities | Interest Rate | |||||||
A loan advanced from E-Debit's vice President for working capital. | 53,385 | 55,280 | |||||||||
Demand loans | 8% per annum | ||||||||||
A loan advanced from E-Debit's directors for working capital. | 152,156 | 142,481 | Demand loans | 8% per annum | |||||||
A loan advanced from E-Debit's vice President for working capital. | 43,193 | 44,726 | |||||||||
Demand loans | 12% per annum | ||||||||||
A loan advanced from E-Debit's shareholder for working capital. | 48,531 | 50,254 | |||||||||
Demand loans | 9% per annum | ||||||||||
Total | $ | 297,265 | $ | 292,741 | |||||||
E-Debit's shareholder loans as of September 30, 2013 are related to cash advanced from E-Debit's vice president totaling $53,385 and from directors totaling $152,156 and have an interest rate of 8% per annum calculated and paid quarterly with no specific terms of repayment. The remaining balance of shareholder loans totaling $91,724 consist of a loan advance from E-Debit's vice president totaling $43,193 with an interest rate of 12% per annum and no specific terms of repayment, and a loan advance from a shareholder of $48,531 with an interest rate of 9% per annum and no specific terms of repayment. The above obligations are reflected in the accompanying consolidated balance sheet as shareholder loans. | |||||||||||
E-Debit's shareholder loans as of December 31, 2012 are related to cash advanced from E-Debit's vice president totaling $55,280 and from directors totaling $142,481 and have an interest rate of 8% per annum calculated and paid quarterly with no specific terms of repayment. The remaining balance of shareholder loans totaling $94,980 consist of a loan advance from E-Debit's vice president totaling $44,726 has an interest rate of 12% per annum with no specific terms of repayment, and a loan advance from a shareholder of $50,254 has an interest rate of 9% per annum with no specific terms of repayment. The above obligations are reflected in the accompanying consolidated balance sheet as shareholder loans. |
Other_Revenue
Other Revenue | 9 Months Ended |
Sep. 30, 2013 | |
Other Revenue [Abstract] | ' |
Other Revenue | ' |
Note 13 - Other Revenue | |
In June 2013, the Company concluded the sales of a portion of the Company's eastern Canada ATMs site location contracts to an investor for a total of $107,548 ($110,032 CDN). This sale transaction is included in the accompanying consolidated income statement as Gain on sale. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Note 14 - Subsequent Events | |
The Company has evaluated events subsequent to September 30, 2013 and through the date the financial statements were available to be issued to assess the need for potential recognition or disclosure in this report. No events were noted that require recognition or disclosure in these financial statements. |
Going_Concern
Going Concern | 9 Months Ended |
Sep. 30, 2013 | |
Going Concern [Abstract] | ' |
Going Concern | ' |
Note 15 - Going Concern | |
The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Corporation as a going concern. The Corporation has recurring net losses from operations, and had a working capital deficit and a stockholders' deficit at September 30, 2013 and December 31, 2012. These conditions raise substantial doubt as to the Corporation's ability to continue as a going concern. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might be necessary should the Corporation be unable to continue as a going concern. | |
Management recognizes that the Corporation must generate additional resources to enable it to continue operations. Management intends to raise additional funds through debt financing and equity financing or through other means that it deems necessary, with a view to moving forward and sustaining a prolonged growth in its strategy phases. However, no assurance can be given that the Corporation will be successful in raising additional capital. Management's plans also include restructuring and reorganizing its subsidiaries to save costs. Furthermore, management is in the process of negotiations with a third party investor to potentially sell part or all of the Corporation's ATM estate. In addition, there is no demand for payment on the accounts payable to related parties of $1,468,382 and shareholder loans of $297,265 as these liabilities are owed to internal officers and directors. Further, even if the Corporation raises additional capital, there can be no assurance that the Corporation will achieve profitability or positive cash flow. If management is unable to raise additional capital and expected significant revenues do not result in positive cash flow, the Corporation will not be able to meet its obligations and may have to cease operations. |
Basis_of_Presentation_and_Natu1
Basis of Presentation and Nature of Operations (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Basis Of Presentation And Nature Of Operations [Abstract] | ' |
Reclassification | ' |
Reclassification | |
Certain amounts previously reported have been reclassified to conform to current presentation. Certain labels of accounts/classifications have been changed. |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounts Receivable [Abstract] | ' | ||||||||
Schedule of Accounts Receivable | ' | ||||||||
September 30, 2013 | 31-Dec-12 | ||||||||
Accounts Receivable | |||||||||
Equipment | - | $ | 597 | ||||||
Services | 1,455 | - | |||||||
Surcharge fee | 5,889 | 6,873 | |||||||
Partial Dispense | 10,119 | 12,733 | |||||||
Sale of ATM Contracts | 19,413 | 30,153 | |||||||
GST refund | 12,040 | 10,848 | |||||||
Other | 23,734 | - | |||||||
72,650 | $ | 61,204 | |||||||
Less: Allowance for doubtful accounts | (22,468 | ) | (23,413 | ) | |||||
$ | 50,182 | $ | 37,791 | ||||||
Inventory_Tables
Inventory (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory [Abstract] | ' | ||||||||
Schedule of Inventory | ' | ||||||||
Inventory consists of the following elements: | |||||||||
Quantity | Cost | ||||||||
31-Dec-12 | |||||||||
ATM | 27 | $ | 68,628 | ||||||
Parts and accessories | - | - | |||||||
Total | $ | 68,628 | |||||||
Quantity | Cost | ||||||||
September 30, 2013 | |||||||||
ATM | 28 | $ | 64,978 | ||||||
Parts and accessories | - | - | |||||||
Total | $ | 64,978 |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
Schedule of Property and Equipment | ' | ||||||||
Property and equipment in service consists of the following elements: | |||||||||
Cost | Accumulated | Net | Depreciation | ||||||
Depreciation/ | Book Value | Rate | |||||||
Amortization | and | ||||||||
Method | |||||||||
December 31, 2012 - | |||||||||
Office furniture and equipment | $ | 62,380 | $ | 38,947 | $ | 23,433 | 20% DB | ||
Computer hardware and software | 180,349 | 142,516 | 37,833 | 30% DB | |||||
ATM machines | 210,627 | 47,789 | 162,838 | 30% DB | |||||
Other | 7,494 | 6,408 | 1,086 | Var | |||||
$ | 460,850 | $ | 235,660 | $ | 225,190 | ||||
September 30, 2013 - | |||||||||
Office furniture and equipment | $ | 39,049 | $ | 31,661 | $ | 7,388 | 20% DB | ||
Computer hardware and software | 145,936 | 115,176 | 30,760 | 30% DB | |||||
ATM machines | 161,306 | 49,942 | 111,364 | 30% DB | |||||
Other | 8,180 | 7,918 | 262 | Var | |||||
$ | 354,471 | $ | 204,697 | $ | 149,774 |
Deferred_CostsIntangible_Asset1
Deferred Costs/Intangible Assets (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Deferred Costs/Intangible Assets [Abstract] | ' | |||||||||||||
Schedule of Intangible Assets | ' | |||||||||||||
Intangible assets consist of the following elements: | ||||||||||||||
Cost | Accumulated | Depreciation | ||||||||||||
Amortization | Net | Method | ||||||||||||
Book Value | ||||||||||||||
December 31, 2012 - | ||||||||||||||
License - ACI | $ | 168,690 | $ | 134,953 | $ | 33,737 | Straight-line | |||||||
Patent | 15,076 | 14,416 | 660 | Straight-line | ||||||||||
License - Paragon | 18,319 | $ | 8,790 | 9,529 | Straight-line | |||||||||
$ | 202,085 | $ | 158,159 | $ | 43,926 | |||||||||
September 30, 2013 - | ||||||||||||||
License - ACI | $ | 162,906 | $ | 154,763 | $ | 8,143 | Straight-line | |||||||
Patent | 15,255 | 15,255 | - | Straight-line | ||||||||||
License - Paragon | 17,691 | $ | 15,387 | 2,304 | Straight-line | |||||||||
$ | 195,852 | $ | 185,405 | $ | 10,447 | |||||||||
Schedule of Expected Depreciation and Amortization Expense | ' | |||||||||||||
Expected future depreciation and amortization of the intangible assets are as follows: | ||||||||||||||
Year | Amount | |||||||||||||
2013 | $10,447 | |||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Commitments and Contingencies [Abstract] | ' | ||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | ||||||||
Minimum future rental payments under non-cancellable operating leases having remaining terms in excess of one year are as follows: | |||||||||
Real Estate | Other | ||||||||
2013 | $ | 17,492 | $ | 943 | |||||
2014 | $ | 11,742 | $ | 4,434 | |||||
2015 | $ | - | $ | 4,434 | |||||
2016 | $ | - | $ | 2,217 | |||||
Schedule of Rent Expense | ' | ||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
Rental expense | $ | 79,795 | $ | 96,602 |
Related_Party_transactions_Tab
Related Party transactions (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Related Party Transaction [Line Items] | ' | ||||||||||
Schedule of Rent Expense | ' | ||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||
Rental expense | $ | 79,795 | $ | 96,602 | |||||||
Related Party [Member] | ' | ||||||||||
Related Party Transaction [Line Items] | ' | ||||||||||
Schedule of Other Receivables | ' | ||||||||||
The following table summarizes the Corporation's others receivable from related parties' transactions as of September 30, 2013 and December 31, 2012: | |||||||||||
2013 | 2012 | ||||||||||
1105725 Alberta Ltd. o/a | $ | 38,785 | $ | 40,162 | |||||||
Personal Financial Solutions | |||||||||||
Cash Direct Financial Services Ltd. | 12,152 | 12,584 | |||||||||
Trans Amored Canada | 17,498 | 7,922 | |||||||||
Accounts receivable - directors | 12,336 | 8,613 | |||||||||
$ | 80,771 | $ | 69,281 | ||||||||
Less: Allowance for doubtful accounts | (68,435 | ) | (52,746 | ) | |||||||
$ | 12,336 | $ | 16,535 | ||||||||
Schedule of Future Non-Cancelable Minimum Lease Payments with Related Party | ' | ||||||||||
Minimum future rental payments under non-cancellable operating leases having remaining terms in excess of one year are as follows: | |||||||||||
Real Estate | |||||||||||
2013 | $ | 17,492 | |||||||||
2014 | $ | 11,742 | |||||||||
Schedule of Residual and Interchange Costs | ' | ||||||||||
The following table summarizes the amounts paid by the Corporation for residual and interchange fees to related parties for the nine months ended September 30, 2013: | |||||||||||
Payable to: | 30-Sep-13 | ||||||||||
Three affiliated companies that are controlled by E-Debit's President. | $ | 13,207 | |||||||||
An affiliated Corporation that is controlled by E-Debit's vice President. | $ | 8,730 | |||||||||
An affiliated Corporation that is controlled by E-Debit's director. | $ | 1,725 | |||||||||
An affiliated Corporation that is controlled by E-Debit's director. | $ | 176 | |||||||||
Total | $ | 23,838 | |||||||||
Schedule of Indebtedness | ' | ||||||||||
The following table summarizes the Corporation's indebtedness to related parties' transactions as of September 30, 2013 and December 31, 2012: | |||||||||||
Payable to: | 30-Sep-13 | 31-Dec-12 | Terms/Maturities | Interest Rate | |||||||
A loan advanced from E-Debit's President for working capital. | $ | 85,690 | $ | 95,674 | Demand loans | 8% per annum | |||||
A loan advanced from an affiliated Corporation that is controlled by E-Debit's President for working capital. | 796,317 | 867,701 | |||||||||
Demand loans | 8% per annum | ||||||||||
A loan advanced from E-Debit's vice President for working capital. | 11,443 | 8,521 | 8% per annum | ||||||||
Demand loans | |||||||||||
A loan advanced from E-Debit's officers for working capital. | 12,569 | 6,421 | Demand loans | 8% per annum | |||||||
A loan advanced from E-Debit's directors for working capital. | 98,319 | 89,353 | Demand loans | 8% per annum | |||||||
A loan advanced from E-Debit's director for working capital. | 240,103 | 208,926 | Demand loans | No interest | |||||||
Officers' and Directors' bonuses payable carried forward from year 2002 | 26,293 | 33,611 | |||||||||
Demand loans | No interest | ||||||||||
A loan advanced from an affiliated Corporation that is controlled by E-Debit's President for working capital. | 197,648 | 207,394 | |||||||||
Demand loans | No interest | ||||||||||
Total | $ | 1,468,382 | $ | 1,517,601 |
Shareholder_loans_Tables
Shareholder loans (Tables) (Shareholders [Member]) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Shareholders [Member] | ' | ||||||||||
Related Party Transaction [Line Items] | ' | ||||||||||
Schedule of Indebtedness | ' | ||||||||||
The following table summarizes the Corporation's shareholder loans transactions as of September 30, 2013 and December 31, 2012: | |||||||||||
Payable to: | 30-Sep-13 | December 31, 212 | Terms/Maturities | Interest Rate | |||||||
A loan advanced from E-Debit's vice President for working capital. | 53,385 | 55,280 | |||||||||
Demand loans | 8% per annum | ||||||||||
A loan advanced from E-Debit's directors for working capital. | 152,156 | 142,481 | Demand loans | 8% per annum | |||||||
A loan advanced from E-Debit's vice President for working capital. | 43,193 | 44,726 | |||||||||
Demand loans | 12% per annum | ||||||||||
A loan advanced from E-Debit's shareholder for working capital. | 48,531 | 50,254 | |||||||||
Demand loans | 9% per annum | ||||||||||
Total | $ | 297,265 | $ | 292,741 |
Basis_of_Presentation_and_Natu2
Basis of Presentation and Nature of Operations (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 18, 2012 |
Basis Of Presentation And Nature Of Operations [Abstract] | ' | ' | ' |
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 |
Common stock, no par value | $0 | $0 | $0 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 |
Preferred stock, no par value | $0 | $0 | $0 |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts receivable, gross | $72,650 | ' | $61,204 |
Less: Allowance for doubtful accounts | -22,468 | ' | -23,413 |
Total accounts receivable, net | 50,182 | ' | 37,791 |
Bad debt expense | 0 | 10,923 | ' |
Equipment [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts receivable, gross | ' | ' | 597 |
Services [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts receivable, gross | 1,455 | ' | ' |
Surcharge fee [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts receivable, gross | 5,889 | ' | 6,873 |
Partial Dispense [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts receivable, gross | 10,119 | ' | 12,733 |
Sale of ATM Contracts [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts receivable, gross | 19,413 | ' | 30,153 |
GST refund [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts receivable, gross | 12,040 | ' | 10,848 |
Other [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts receivable, gross | $23,734 | ' | ' |
Inventory_Details
Inventory (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Inventory Type [Line Items] | ' | ' |
Inventory | $64,978 | $68,628 |
ATM [Member] | ' | ' |
Inventory Type [Line Items] | ' | ' |
Inventory | 64,978 | 68,628 |
Inventory quantity | 28 | 27 |
Parts and Accessories [Member] | ' | ' |
Inventory Type [Line Items] | ' | ' |
Inventory | ' | ' |
Inventory quantity | ' | ' |
Property_and_Equipment_Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Office furniture and equipment [Member] | Office furniture and equipment [Member] | Computer hardware and software [Member] | Computer hardware and software [Member] | ATM machines [Member] | ATM machines [Member] | Other [Member] | Other [Member] | ||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost | $354,471 | ' | $354,471 | ' | $460,850 | $39,049 | $62,380 | $145,936 | $180,349 | $161,306 | $210,627 | $8,180 | $7,494 |
Accumulated Depreciation/Amortization | 204,697 | ' | 204,697 | ' | 235,660 | 31,661 | 38,947 | 115,176 | 142,516 | 49,942 | 47,789 | 7,918 | 6,408 |
Net Book Value | 149,774 | ' | 149,774 | ' | 225,190 | 7,388 | 23,433 | 30,760 | 37,833 | 111,364 | 162,838 | 262 | 1,086 |
Depreciation Rate and Method | ' | ' | ' | ' | ' | '20% DB | '20% DB | '30% DB | '30% DB | '30% DB | '30% DB | 'Var | 'Var |
Depreciation and amortization | $25,130 | $24,305 | $82,192 | $78,007 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred_CostsIntangible_Asset2
Deferred Costs/Intangible Assets (Schedule of Intangible Assets) (Details) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2007 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
License - ACI [Member] | License - ACI [Member] | Patent [Member] | Patent [Member] | License - Paragon [Member] | License - Paragon [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized costs related to development of software | ' | ' | $168,690 | ' | ' | ' | ' | ' | ' | ' |
Cost | 195,852 | ' | ' | 202,085 | 162,906 | 168,690 | 15,255 | 15,076 | 17,691 | 18,319 |
Accumulated Amortization | 185,405 | ' | ' | 158,159 | 154,763 | 134,953 | 15,255 | 14,416 | 15,387 | 8,790 |
Net Book Value | 10,447 | ' | ' | 43,926 | 8,143 | 33,737 | ' | 660 | 2,304 | 9,529 |
Depreciation Method | ' | ' | ' | ' | 'Straight-line | 'Straight-line | 'Straight-line | 'Straight-line | 'Straight-line | 'Straight-line |
Depreciation and amortization expense | $27,246 | $27,910 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred_CostsIntangible_Asset3
Deferred Costs/Intangible Assets (Schedule of Expected Depreciation and Amortization Expense) (Details) (USD $) | Sep. 30, 2013 |
Deferred Costs/Intangible Assets [Abstract] | ' |
2013 | $10,447 |
Loans_Payable_Details
Loans Payable (Details) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2007 | Sep. 30, 2007 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | 31-May-12 | 31-May-12 | Feb. 28, 2010 | Feb. 28, 2010 | Nov. 30, 2007 | Nov. 30, 2007 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Dec. 20, 2011 | Dec. 20, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Aug. 15, 2012 | Aug. 15, 2012 |
USD ($) | USD ($) | Vencash [Member] | Vencash [Member] | Vencash [Member] | Vencash [Member] | Westsphere Systems Inc [Member] | Westsphere Systems Inc [Member] | Westsphere Systems Inc [Member] | Westsphere Systems Inc [Member] | Westsphere Systems Inc [Member] | Westsphere Systems Inc [Member] | Westsphere Systems Inc [Member] | Westsphere Systems Inc [Member] | Westsphere Systems Inc [Member] | Westsphere Systems Inc [Member] | Westsphere Systems Inc [Member] | Westsphere Systems Inc [Member] | Westsphere Systems Inc [Member] | Westsphere Systems Inc [Member] | Westsphere Systems Inc [Member] | Westsphere Systems Inc [Member] | Demand Loan Agreement and GSA One [Member] | Demand Loan Agreement and GSA One [Member] | Demand Loan Agreement and GSA One [Member] | Demand Loan Agreement and GSA One [Member] | Demand Loan Agreement and GSA One [Member] | Demand Loan Agreement and GSA One [Member] | Demand Loan Agreement and GSA One [Member] | Demand Loan Agreement and GSA One [Member] | Demand Loan Agreement and GSA One [Member] | Demand Loan Agreement and GSA Two [Member] | Demand Loan Agreement and GSA Two [Member] | Demand Loan Agreement and GSA Two [Member] | Demand Loan Agreement and GSA Two [Member] | Demand Loan Agreement and GSA Two [Member] | Demand Loan Agreement and GSA Two [Member] | Demand Loan Agreement and GSA Two [Member] | Demand Loan Agreement and GSA Two [Member] | |
USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issued | ' | ' | $97,063 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $126,389 | 131,000 | ' | ' | ' | ' | ' | ' | $196,643 | 200,000 | ' | ' | ' | ' | ' | ' | ' | $95,852 | 100,000 |
Initial term of loan | ' | ' | '12 months | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | '24 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | 12.00% | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Periodic payments, interest | ' | ' | 942 | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,261 | 1,310 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Periodic payments, frequency | ' | ' | 'monthly | 'monthly | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'monthly | 'monthly | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Renewal period, term | ' | ' | '6 months | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancellation notification period minimum, issuer | ' | ' | '90 days | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancellation notification period minimum, borrower | ' | ' | '60 days | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, reduction in principal balance due to repayment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,837 | 16,107 | 75,218 | 76,503 | 105,588 | 107,390 | ' | ' | ' | ' | ' | 31,743 | 33,924 | ' | ' | ' | ' |
Debt instrument, other reductions in principal balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -59 | -60 | -981 | -998 | -62,212 | -65,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest accrued in the period | ' | ' | ' | ' | ' | ' | 1,890 | 1,947 | 1,852 | 1,947 | 1,914 | 1,947 | 4,324 | 4,547 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,194 | 1,242 | 2,023 | 2,070 | 1,836 | 1,868 | ' | ' |
Loans payable | $239,342 | $287,047 | ' | ' | $97,063 | 100,000 | $73,117 | 75,330 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $69,162 | 71,256 | ' | ' | ' | ' | ' | ' |
Shares issued for loans payable conversion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 622,123 | 622,123 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price for shares issued for loans payable conversion, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Canadian Prime plus | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 4.00% | ' | ' | ' | ' | ' | ' | ' | 4.00% | 4.00% |
Number of days to pay upon demand | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '45 days | '45 days | ' | ' | ' | ' | ' | ' | ' | '45 days | '45 days |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (CAD) | 1 Months Ended | |||||
Jan. 31, 2012 | Jul. 31, 2004 | 31-May-04 | Jan. 31, 2009 | Dec. 31, 2012 | Dec. 31, 2012 | |
Peter Gregory [Member] | Peter Gregory [Member] | Peter Gregory [Member] | Victory ATM [Member] | Mainland Investments, Inc. and Research Driven Investor, LLC [Member] | Trans-Armored Canada Inc. [Member] | |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Amount of claim filed against the company | ' | ' | 260,000 | ' | 150,000 | 34,325 |
Counter claim amount | ' | 1,600,000 | ' | ' | ' | ' |
Garnishment amount, maximum | 31,649 | ' | ' | ' | ' | ' |
Misappropriated claim amount | ' | ' | ' | 45,000 | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) (USD $) | Sep. 30, 2013 |
Real Estate [Member] | ' |
Operating Leased Assets [Line Items] | ' |
2013 | $17,492 |
2014 | 11,742 |
2015 | ' |
2016 | ' |
Other [Member] | ' |
Operating Leased Assets [Line Items] | ' |
2013 | 943 |
2014 | 4,434 |
2015 | 4,434 |
2016 | $2,217 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Schedule of Rent Expense) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies [Abstract] | ' | ' |
Rental expense | $79,795 | $96,602 |
Related_Party_transactions_Inv
Related Party transactions (Investment at cost) (Details) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | 31-May-11 | Sep. 30, 2013 | Oct. 31, 2010 | 31-May-13 | Sep. 30, 2013 | Dec. 13, 2012 | Dec. 13, 2012 | Dec. 13, 2012 | Dec. 13, 2012 | Dec. 13, 2012 | Sep. 30, 2013 | 31-May-13 | 31-May-13 | 31-May-13 | 31-May-13 |
USD ($) | USD ($) | Cash Direct Financial Services Ltd. [Member] | Cash Direct Financial Services Ltd. [Member] | Personal Financial Solutions [Member] | Personal Financial Solutions [Member] | Group Link [Member] | Group Link [Member] | Group Link [Member] | Group Link [Member] | Group Link [Member] | Group Link [Member] | Group Link [Member] | E-Debit International Inc. [Member] | E-Debit International Inc. [Member] | E-Debit International Inc. [Member] | E-Debit International Inc. [Member] | E-Debit International Inc. [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Chief Executive Officer [Member] | Chief Operating Officer [Member] | President [Member] | Chief Development Officer [Member] | USD ($) | USD ($) | CPM Financial Services Inc. [Member] | Winsoft Technology Solutions Inc. [Member] | Winsoft Technology Solutions Inc. [Member] | ||||
USD ($) | CAD | USD ($) | ||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment owned, number of shares sold | ' | ' | ' | 90 | ' | 41 | 45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment owned, percentage of ownership sold | ' | ' | ' | 90.00% | ' | 41.00% | 45.00% | ' | ' | ' | ' | ' | ' | ' | 90.00% | 80.00% | ' | 10.00% |
Investment owned, sale price per share | ' | ' | ' | $1 | ' | $1 | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment owned, percentage | ' | ' | 10.00% | 10.00% | 10.00% | 10.00% | ' | 10.00% | 55.00% | 15.00% | 10.00% | 10.00% | 10.00% | 10.00% | ' | ' | ' | ' |
Investment, at cost | $40 | $20 | $10 | ' | $10 | ' | ' | $10 | ' | ' | ' | ' | ' | $10 | $90 | $80 | ' | $10 |
Number of years with no business activities | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Perpetual Royalty Grant, percentage | ' | ' | ' | ' | ' | ' | 3.64% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.66% | ' |
Perpetual Group Link share position, percentage | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' |
Payment Agreement, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.25% | ' |
Net sales payment agreement, maximum amount receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 550,000 | ' |
Related_Party_transactions_Oth
Related Party transactions (Other receivable - related parties) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 31, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | 31-May-11 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Personal Financial Solutions [Member] | Personal Financial Solutions [Member] | Personal Financial Solutions [Member] | Cash Direct Financial Services Ltd. [Member] | Cash Direct Financial Services Ltd. [Member] | Cash Direct Financial Services Ltd. [Member] | Trans Amored Canada [Member] | Trans Amored Canada [Member] | Accounts Receivable - Directors [Member] | Accounts Receivable - Directors [Member] | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment owned, percentage of ownership sold | ' | ' | ' | ' | 41.00% | ' | ' | 90.00% | ' | ' | ' | ' |
Related parties other receivables, gross | $80,771 | $69,281 | $38,785 | $40,162 | ' | $12,152 | $12,584 | ' | $17,498 | $7,922 | $12,336 | $8,613 |
Less: Allowance for doubtful accounts | -68,435 | -52,746 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related parties, due from | $12,336 | $16,535 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related_Party_transactions_Rea
Related Party transactions (Real estate leases) (Details) | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
USD ($) | USD ($) | Real Estate [Member] | Office And Warehouse [Member] | Office And Warehouse [Member] | President and Affiliated Company [Member] | President and Affiliated Company [Member] | |
USD ($) | USD ($) | CAD | Real Estate [Member] | Real Estate [Member] | |||
USD ($) | CAD | ||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Monthly lease payment | ' | ' | ' | $5,747 | 5,971 | $2,984 | 3,100 |
2013 | ' | ' | 17,492 | ' | ' | ' | ' |
2014 | ' | ' | 11,742 | ' | ' | ' | ' |
2015 | ' | ' | ' | ' | ' | ' | ' |
2016 | ' | ' | ' | ' | ' | ' | ' |
Rental expense | $79,795 | $96,602 | ' | ' | ' | ' | ' |
Related_Party_transactions_Res
Related Party transactions (Residual and interchange costs) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transaction [Line Items] | ' |
Residual and interchange fees paid to related parties | $23,838 |
Three Affiliated Companies Controlled By President [Member] | ' |
Related Party Transaction [Line Items] | ' |
Residual and interchange fees paid to related parties | 13,207 |
Affiliated Corporation Controlled By Vice President [Member] | ' |
Related Party Transaction [Line Items] | ' |
Residual and interchange fees paid to related parties | 8,730 |
Affiliated Corporation Controlled By Director One [Member] | ' |
Related Party Transaction [Line Items] | ' |
Residual and interchange fees paid to related parties | 1,725 |
Affiliated Corporation Controlled By Director Two [Member] | ' |
Related Party Transaction [Line Items] | ' |
Residual and interchange fees paid to related parties | $176 |
Related_Party_transactions_Ind
Related Party transactions (Indebtedness to related parties) (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | ||||||
31-May-13 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2011 | Feb. 28, 2011 | Dec. 31, 2011 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | President and Affiliated Company [Member] | President and Affiliated Company [Member] | Related Parties and Shareholders Individually or Collecively Advance Loans [Member] | Related Parties and Shareholders Individually or Collecively Advance Loans [Member] | General Security Agreement and Loan Agreement [Member] | |
USD ($) | CAD | CAD | CAD | USD ($) | |||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consulting fees | ' | $38,041 | $39,692 | $115,897 | $129,237 | ' | $23,749 | 24,675 | ' | ' | ' |
Incremental amount of advance loans | ' | ' | ' | ' | ' | ' | ' | ' | 1,750,000 | 1,500,000 | ' |
Initial term of loan | ' | ' | ' | ' | ' | ' | ' | ' | '36 months | '36 months | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 8.00% | ' |
Forgiveness of debt related parties | 355,396 | ' | ' | 355,396 | ' | ' | ' | ' | ' | ' | ' |
Total indebtedness to related parties and shareholder loans | ' | 1,765,647 | ' | 1,765,647 | ' | 1,819,075 | ' | ' | ' | ' | 200,000 |
Unused borrowing capacity | ' | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' |
Related_Party_transactions_Sch
Related Party transactions (Schedule of Indebtedness) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' |
Loans due to related parties | $1,468,382 | $1,517,601 |
Loan Advanced from E-Debit's President at 8% for Working Capital [Member] | Demand Loan Arrangement [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Loans due to related parties | 85,690 | 95,674 |
Interest rate | 8.00% | 8.00% |
Loan Advanced from Affiliated Company at 8% that is controlled by E-Debit's President for Working Capital [Member] | Demand Loan Arrangement [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Loans due to related parties | 796,317 | 867,701 |
Interest rate | 8.00% | 8.00% |
Loan Advanced from E-Debit's Vice President at 8% for Working Capital [Member] | Demand Loan Arrangement [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Loans due to related parties | 11,443 | 8,521 |
Interest rate | 8.00% | 8.00% |
Loan Advanced from E-Debit's Officers at 8% for Working Capital [Member] | Demand Loan Arrangement [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Loans due to related parties | 12,569 | 6,421 |
Interest rate | 8.00% | 8.00% |
Loan Advanced from E-Debit's Directors at 8% for Working Capital [Member] | Demand Loan Arrangement [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Loans due to related parties | 98,319 | 89,353 |
Interest rate | 8.00% | 8.00% |
Loan Advanced from E-Debit's Director at 0% for Working Capital [Member] | Demand Loan Arrangement [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Loans due to related parties | 240,103 | 208,926 |
Interest rate | 0.00% | 0.00% |
Officers' and Directors' Bonuses Payable Carried Forward From Year 2002 [Member] | Demand Loan Arrangement [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Loans due to related parties | 26,293 | 33,611 |
Interest rate | 0.00% | 0.00% |
Loan Advanced from Affiliated Company at 0% that is controlled by E-Debit's President for Working Capital [Member] | Demand Loan Arrangement [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Loans due to related parties | $197,648 | $207,394 |
Interest rate | 0.00% | 0.00% |
Shareholder_loans_Details
Shareholder loans (Details) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 28, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | Related Parties and Shareholders Individually or Collecively Advance Loans [Member] | Related Parties and Shareholders Individually or Collecively Advance Loans [Member] | Loan Advanced from E-Debit's Vice President at 8% for Working Capital [Member] | Loan Advanced from E-Debit's Vice President at 8% for Working Capital [Member] | Loan Advanced from E-Debit's Directors at 8% for Working Capital [Member] | Loan Advanced from E-Debit's Directors at 8% for Working Capital [Member] | Loan Advanced from E-Debit's Vice President at 12% for Working Capital [Member] | Loan Advanced from E-Debit's Vice President at 12% for Working Capital [Member] | Loan Advanced from E-Debit's Shareholder 9% for Working Capital [Member] | Loan Advanced from E-Debit's Shareholder 9% for Working Capital [Member] | |
CAD | CAD | Demand Loan [Member] | Demand Loan [Member] | Demand Loan [Member] | Demand Loan [Member] | Demand Loan [Member] | Demand Loan [Member] | Demand Loan [Member] | Demand Loan [Member] | |||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental amount of advance loans | ' | ' | 1,750,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Initial term of loan | ' | ' | '36 months | '36 months | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 12.00% | 12.00% | 9.00% | 9.00% |
Loans due to shareholders | $297,265 | $292,741 | ' | ' | $53,385 | $55,280 | $152,156 | $142,481 | $43,193 | $44,726 | $48,531 | $50,254 |
Other_Revenue_Details
Other Revenue (Details) | 1 Months Ended | 9 Months Ended | ||
Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
USD ($) | CAD | USD ($) | USD ($) | |
Schedule Of Other Revenue [Line Items] | ' | ' | ' | ' |
Gain on sale | $107,548 | 110,032 | $107,548 | $263,418 |
Going_Concern_Details
Going Concern (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Going Concern [Abstract] | ' | ' |
Indebtedness to related parties | $1,468,382 | $1,517,601 |
Shareholder loans | $297,265 | $292,741 |