Emarine Global (EMRN) 10-Q 19 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 15, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'Pollex, Inc.	'
Entity Central Index Key	'0001178377	'
Trading Symbol	'pllx	'
Is Entity's Reporting Status Current	'Yes	'
Is Entity Voluntary Filer	'No	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	5,121,688
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Amendment Flag	'false	'
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013
CURRENT ASSETS	'	'
Cash and cash equivalents	$29,292	$4,745
Due from related party	24,795	'
Total current asset	54,087	4,745
Property and equipment, net of accumulated depreciation of $10,479 and $10,291 at June 30, 2014 and December 31, 2013, respectively	'	188
License agreements, net of accumulated amortization of $0 and $42,500, at June 30, 2014 and December 31, 2013, respectively	'	80,000
Other asset- Deposit	1,300	1,300
Total Assets	55,387	86,233
CURRENT LIABILITIES	'	'
Accrued expenses and accounts payable	904,957	835,406
Amounts due to affiliate under service agreement	891,000	771,000
Advances from affiliate	368,477	333,277
Loans payable	1,215,799	1,160,403
Total Current Liabilities	3,380,233	3,100,086
Commitments and Contingencies	'	'
Stockholders' Deficit	'	'
Common stock, authorized 300,000,000 shares; par value $0.001; 5,121,688 issued and outstanding at June 30, 2014 and December 31, 2013, respectively	5,120	5,120
Additional paid-in capital	136,914,861	136,874,861
Accumulated deficit	-140,244,827	-139,893,834
Total Stockholders' Deficit	-3,324,846	-3,013,853
Total Liabilities and Stockholders' Deficit	$55,387	$86,233

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Statement Of Financial Position [Abstract]	'	'
Accumulated depreciation of property and equipment (in dollars)	$10,479	$10,291
Accumulated amortization of license agreements (in dollars)	$0	$42,500
Common stock, par value (in dollar per share)	$0.00	$0.00
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	5,121,688	5,121,688
Common stock, shares outstanding (in shares)	5,121,688	5,121,688

STATEMENTS_OF_OPERATIONS

STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]	'	'	'	'
REVENUES	$16,894	$44,051	$35,720	$77,749
COSTS AND EXPENSES	'	'	'	'
Cost of goods sold	'	14,491	586	23,827
Selling, general and administrative	78,967	47,448	149,773	75,313
Related party service agreement	60,000	60,000	120,000	120,000
Impairment of license agreements	70,000	16,841	70,000	28,510
Depreciation and amortization	5,082	8,620	10,188	17,722
Total Costs and Expenses	214,049	147,400	350,547	265,372
OPERATING LOSS	-197,155	-103,349	-314,827	-187,623
OTHER EXPENSE	'	'	'	'
Interest expense	-18,998	-19,437	-36,166	-38,659
Total Other Expense	-18,998	-19,437	-36,166	-38,659
LOSS BEFORE INCOME TAXES	-216,153	-122,786	-350,993	-226,282
PROVISION FOR INCOME TAXES	'	'	'	'
NET LOSS	($216,153)	($122,786)	($350,993)	($226,282)
NET LOSS PER COMMON SHARE (Basic and Diluted)	($0.04)	($0.02)	($0.07)	($0.04)
WEIGHTED AVERAGE SHARES OUTSTANDING	5,121,688	5,121,688	5,121,688	5,121,688

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
NET LOSS	($350,993)	($226,282)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	10,188	17,722
Bad debt expense	'	28,510
Impairment of license agreements	70,000	'
Contributed services	40,000	'
Changes in assets and liabilities:	'	'
(Increase) decrease in accounts receivable	-708	-28,510
(Increase) decrease in receivable from affiliate	-24,795	'
Increase (decrease) in accrued expenses	69,551	13,724
Increase (decrease) in amounts due affiliate under service agreement	120,000	120,000
Net cash used in operating activities	-66,757	-74,836
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Purchase of property and equipment	'	'
Proceeds from termination of license agreement	'	'
Acquisition of license agreements	'	'
Net cash used in investing activities	'	'
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Proceeds from advance from affiliate	75,200	94,000
Repayment of advance from affiliate	-40,000	'
Loan proceeds	85,000	'
Repayment of loan	-28,896	'
Net cash provided by financing activities	91,304	94,000
Net increase in cash	24,547	19,164
CASH AT BEGINNING OF PERIOD	4,745	3,836
CASH AT END OF PERIOD	29,292	23,000
SUPPLEMENTAL CASH FLOW DISCLOSURES:	'	'
Cash paid for interest	'	'
Cash paid for taxes	'	'
Assumption of accounts receivable by lender	$708	'

Basis_of_Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2014
Basis of Presentation [Abstract]	'
BASIS OF PRESENTATION	'
	NOTE A – BASIS OF PRESENTATION
	The accompanying financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary in order to make the financial statements not misleading have been included. Results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. For further information, refer to the financial statements and footnotes thereto included in the Pollex, Inc. annual report on Form 10-K for the year ended December 31, 2013.

Going_Concern

Going Concern	6 Months Ended
	Jun. 30, 2014
Going Concern [Abstract]	'
GOING CONCERN	'
	NOTE B – GOING CONCERN
	As shown in the accompanying financial statements, the Company incurred net losses of $350,993 and $226,282 for the six months ended June 30, 2014 and 2013, respectively, and has an accumulated deficit of $140,244,827 at June 30, 2014.  In order to fund future operations, the Company will need to raise capital through the equity markets and generate revenue through its license agreements. Failure to raise adequate capital and generate adequate sales revenues could result in the Company having to curtail or cease operations.  Additionally, even if the Company does raise sufficient capital to support its operating expenses and generate adequate revenues, there can be no assurances that the revenue will be sufficient to enable it to develop business to a level where it will generate profits and cash flows from operations. These matters raise substantial doubt about the Company’s ability to continue as a going concern. However, the accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

License_Agreements

License Agreements	6 Months Ended
	Jun. 30, 2014
License Agreements [Abstract]	'
LICENSE AGREEMENTS	'
	NOTE C – LICENSE AGREEMENTS
	The Company began operating the online game, The Great Merchant, in open beta testing in January 2010. During the six months ended June 30, 2014 and 2013, the Company generated revenues of $35,012 and $48,891, respectively, from this beta testing.
	The Company has acquired license agreements for online games for use in South Korea.  Each license also has a royalty fee which varies for each license. The licenses have terms of 2 to 3 years, beginning when they are launched commercially.  Under the license agreements, the Company is required to pay the licensor 24%- 25% of gross sales.
	During the three months ended June 30, 2014, the Company decided to no longer utilize its licenses in South Korea and to focus on the Great Merchant and other gaming opportunities in the US. As such, the license agreements were written off and an impairment of $70,000 was recognized during the three months ended June 30, 2014. The licenses are comprised as follows:
		June 30,		December 31,			Estimated
		2014		2013			Useful Life
	License agreements	$	-	$	122,500		2-3 years
	Accumulated amortization		-		(42,500	)
		$	-	$	80,000
	Amortization expense was $10,000 and $16,458 for the six months ended June 30, 2014 and 2013, respectively.
	The Company engaged a Korea-based service provider to support and maintain the online game, and collect payments from customers. Under this agreement the service provider is required to pay the Company 29% of the gross sales on the contracted games. For the six months ended June 30, 2014 and 2013, the Company billed such 29%, or $708 and $28,510, respectively.  For the six months ended June 30, 2014 and 2013, the Company was billed $586 and $23,827, respectively, by the licensor on these games.
	At December 31, 2013, a note holder agreed to assume the amounts due from the Korea-based service provider, up to $150,000.  As such, the Company reduced the note by $708 and $138,897 at June 30, 2014 and December 31, 2013, respectively.

Related_Party_Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2014
Related Party Transactions [Abstract]	'
RELATED PARTY TRANSACTIONS	'
	NOTE D – RELATED PARTY TRANSACTIONS
	Certain expenses have been paid on behalf of the Company by Joytoto Co., Ltd (“Joytoto Korea”), of which the Company is a majority owned subsidiary. The Company has recognized the expenses and corresponding payable to Joytoto Korea as due to affiliate. The advances are non-interest bearing and have no specific repayment date. During the six months ended June 30, 2014, the Company received proceeds of $75,200 and repaid $40,000. During the three months ended June 30, 2014, the Company received proceeds of $94,000.
	The Company has entered into a Service Agreement with Gameforyou, Incorporated, a wholly-owned subsidiary of Joytoto Korea. Under this agreement, Gameforyou, Incorporated provides translation, customer support, and system operations and maintenance. The Company is required to pay Gameforyou, Incorporated $10,000 in cash and $10,000 in cash or stock each month. Any issuance of stock will be at the market value or at a price determined and agreed to by both parties. For the six months ended June 30, 2014 and 2013, $120,000 and $120,000, respectively, were recognized in the Statement of Operations under this agreement. At June 30, 2014 and December 31, 2013, $891,000 and $771,000, respectively were due to Gameforyou, Incorporated.
	The amount due from a related party of $24,795 represents an amount paid by the Company on behalf of a related party. This amount was repaid to the Company in July 2014.

Loans_Payable

Loans Payable	6 Months Ended
	Jun. 30, 2014
Loans Payable [Abstract]	'
Loans payable	'
	NOTE E – LOANS PAYABLE
	The loans payable consists of borrowings from two notes. The terms of the promissory notes are one year and bear interest at an annual rate of 6% and are unsecured. The notes may be repaid at any time prior to its due date without a prepayment penalty. Of the notes, $1,130,799 are in default at June 30, 2014 and $85,000 are due March 31, 2015.
	At December 31, 2013, one of the note holders agreed to assume the amounts due from the Korea-based service provider, up to $150,000. As such, the Company reduced the note by $708 and $138,897 at June 30, 2014 and December 31, 2013, respectively.
	During the six months ended June 30, 2014, the Company received proceeds of $85,000 and repaid $28,896.

Income_Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2014
Income Taxes [Abstract]	'
INCOME TAXES	'
	NOTE F - INCOME TAXES
	At June 30, 2014 and December 31, 2013, the Company had unused net operating loss carryforwards of approximately $5,983,000 and $5,742,000, respectively, for income tax purposes, which expire between 2027 and 2034. The net operating loss carryforwards may result in future income tax benefits of approximately $2,034,000 and $1,952,000, respectively; however because realization is uncertain at this time, a valuation reserve in the same amount has been established. Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
	Significant components of the Company’s deferred tax liabilities and assets as of June 30, 2014 and December 31, 2013 are as follows:
		June 30,			December 31,
		2014			2013
	Deferred tax liabilities	$	-		$	-
	Deferred tax asset-
	Net operating loss carryforward		2,034,000			1,952,000
	Valuation allowance		(2,034,000	)		(1,952,000	)
	Net deferred tax asset	$	-		$	-
	The income tax expense (benefit) differs from the amount computed by applying the United States statutory corporate income tax rate as follows:
		June 30,
		2014			2013
	U.S statutory income tax rate		34	%		34	%
	Change in valuation allowance of deferred tax assets		(34	%)		(34	%)
	Net deferred tax asset		-	%		-	%

Warrants

Warrants	6 Months Ended
	Jun. 30, 2014
Warrants [Abstract]	'
WARRANTS	'
	NOTE G – WARRANTS
	Warrant activity for the six months ended June 30, 2014 is as follows:
		Shares		Weighted
				Average
				Grant Date
				Fair Value
	Outstanding, January 1, 2014		946,667	$	41.46
	Granted		-		-
	Forfeited		-		-
	Expired		-		-
	Exercised		-		-
	Outstanding, June 30, 2014		946,667	$	41.46
	The weighted average remaining contractual life and exercise price of the warrants outstanding and exercisable at June 30, 2014 was 0.34 years and $4.95, respectively. The warrants outstanding had no intrinsic value at June 30, 2014.

Employment_Agreement

Employment Agreement	6 Months Ended
	Jun. 30, 2014
Employment Agreement [Abstract]	'
EMPLOYMENT AGREEMENTS	'
	NOTE F- EMPLOYMENT AGREEMENTS
	On March 21, 2014, the Company entered into three year employment agreement Seong Sam Cho, to serve as Chief Executive Officer, President and Chairman for an annual salary of $1.00.
	For the six months ended June 30, 2014, the Company recorded $40,000 for the fair value of the services contributed by Seong Sam Cho.

License_Agreements_Tables

License Agreements (Tables)	6 Months Ended
	Jun. 30, 2014
License Agreements [Abstract]	'
Shedule of license agreements	'
		June 30,		December 31,			Estimated
		2014		2013			Useful Life
	License agreements	$	-	$	122,500		2-3 years
	Accumulated amortization		-		(42,500	)
		$	-	$	80,000

Income_Taxes_Tables

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2014
Income Taxes [Abstract]	'
Schedule of components of deferred tax liabilities and assets	'
		June 30,			December 31,
		2014			2013
	Deferred tax liabilities	$	-		$	-
	Deferred tax asset-
	Net operating loss carryforward		2,034,000			1,952,000
	Valuation allowance		(2,034,000	)		(1,952,000	)
	Net deferred tax asset	$	-		$	-
Schedule of income tax expense (benefit) by applying the United States statutory corporate income tax rate	'
		June 30,
		2014			2013
	U.S statutory income tax rate		34	%		34	%
	Change in valuation allowance of deferred tax assets		(34	%)		(34	%)
	Net deferred tax asset		-	%		-	%

Warrants_Tables

Warrants (Tables)	6 Months Ended
	Jun. 30, 2014
Warrants [Abstract]	'
Schedule of warrant activity	'
		Shares		Weighted
				Average
				Grant Date
				Fair Value
	Outstanding, January 1, 2014		946,667	$	41.46
	Granted		-		-
	Forfeited		-		-
	Expired		-		-
	Exercised		-		-
	Outstanding, June 30, 2014		946,667	$	41.46

Going_Concern_Details

Going Concern (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Going Concern [Abstract]	'	'	'	'	'
NET LOSS	$216,153	$122,786	$350,993	$226,282	'
Accumulated deficit	$140,244,827	'	$140,244,827	'	$139,893,834

License_Agreements_Details

License Agreements (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014	Jun. 30, 2014
			Minimum [Member]	Maximum [Member]
Estimated usefull life of license agreements	'	'	'2 years	'3 years
License agreements	'	$122,500	'	'
Accumulated amortization	0	-42,500	'	'
Finite-lived intangible assets net	'	$80,000	'	'

License_Agreements_Detail_Text

License Agreements (Detail Textuals) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Acquired Finite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Licence agreement	'	'	'	'	$122,500
Impairment of license agreements	70,000	16,841	70,000	28,510	'
Revenue generated	16,894	44,051	35,720	77,749	'
Assumption of accounts receivable by lender	'	'	708	'	'
Korea-based service provider	'	'	'	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Due from to related party	'	'	'	'	150,000
Licensing agreements	'	'	'	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Amortization expense	'	'	10,000	16,458	'
Impairment of license agreements	70,000	'	'	'	'
Licensing agreements | The Great Merchant	'	'	'	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Revenue generated	'	'	35,012	48,891	'
Licensing agreements | Korea-based service provider	'	'	'	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Licence agreement	708	28,510	708	28,510	'
License Costs	'	'	586	23,827	'
Percentage of gross sales	'	'	29.00%	29.00%	'
Assumption of accounts receivable by lender	'	'	$708	$138,897	'
Licensing agreements | Minimum	'	'	'	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'	'	'	'
License agreements, terms	'	'	'2 years	'	'
Percentage of gross sales	'	'	24.00%	'	'
Licensing agreements | Maximum	'	'	'	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'	'	'	'
License agreements, terms	'	'	'3 years	'	'
Percentage of gross sales	'	'	25.00%	'	'

Related_Party_Transactions_Det

Related Party Transactions (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Dec. 31, 2013
					Game For You	Game For You
					Service agreement	Service agreement
Related Party Transaction [Line Items]	'	'	'	'	'	'
Amounts due to related party in cash per month	'	'	'	'	$10,000	'
Amounts due to related party in cash or stock per month	'	'	'	'	10,000	'
Related party service agreement	60,000	60,000	120,000	120,000	'	'
Amount due from related party	24,795	'	24,795	'	'	'
Repaid to Gameforyou, Incorporated	'	'	40,000	'	'	'
Amount due to Gameforyou, Incorporated	'	'	'	'	891,000,000	771,000
Advances from an affiliate	'	'	75,200	94,000	'	'
Proceeds from related party	'	'	$94,000	'	'	'

Loans_Payable_Details

Loans Payable (Details) (USD $)	6 Months Ended			6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013	Jun. 30, 2014	Jun. 30, 2013
	Promissory_Note		Korea-based service provider	Licensing Agreements [Member]	Licensing Agreements [Member]
				Korea-based service provider	Korea-based service provider
Loans Payable [Line Items]	'	'	'	'	'
Promissory note, term	'1 year	'	'	'	'
Promissory note, number	2	'	'	'	'
Promissory note, rate of interest	6.00%	'	'	'	'
Loan proceeds	$85,000	'	'	'	'
Repayment of loan	28,896	'	'	'	'
Due from to related party	'	'	150,000	'	'
Assumption of accounts receivable by lender	708	'	'	708	138,897
Repayment of debt	1,130,799	'	'	'	'
Long term debt due	$85,000	'	'	'	'
Debt Instrument, due date	31-Mar-15	'	'	'	'

Income_Taxes_Details

Income Taxes - (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Income Taxes [Abstract]	'	'
Deferred tax liabilities	'	'
Deferred tax asset-	'	'
Net operating loss carryforward	2,034,000	1,952,000
Valuation allowance	-2,034,000	-1,952,000
Net deferred tax asset	'	'

Income_Taxes_Details_1

Income Taxes - (Details 1)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Income Taxes [Abstract]	'	'
U.S. statutory income tax rate	34.00%	34.00%
Change in valuation allowance of deferred tax assets	-34.00%	-34.00%
Net deferred tax asset	'	'

Income_Taxes_Detail_Textuals

Income Taxes (Detail Textuals) (USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Income Taxes [Abstract]	'	'
Unused net operating loss carryforward	$5,983,000	$5,742,000
Operating loss carryforwards expiration period	'Expire between 2027 and 2034.	'
Net operating loss carryforward	$2,034,000	$1,952,000

Warrants_Details

Warrants (Details) (Warrant)	6 Months Ended
	Jun. 30, 2014
Warrant	'
Shares	'
Outstanding, beginning balance	946,667
Granted	'
Forfeited	'
Expired	'
Exercised	'
Outstanding, ending balance	946,667
Weighted Average Grant Date Fair Value	'
Outstanding, beginning balance	41.46
Granted	'
Forfeited	'
Expired	'
Exercised	'
Outstanding, ending balance	41.46

Warrants_Detail_Textuals

Warrants (Detail Textuals) (Warrant, USD $)	6 Months Ended
	Jun. 30, 2014
Warrant	'
Class of Warrant or Right [Line Items]	'
Weighted average remaining contractual life of warrants	'4 months 2 days
Exercise price of warrants outstanding and exercisable	4.95
Intrinsic value of the warrants outstanding and exercisable	'

Employment_Agreement_Details

Employment Agreement (Details) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]	'	'
Fair value of contributed services	$40,000	'
Seong Sam Cho	'	'
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]	'	'
Annual salary	1	'
Fair value of contributed services	$40,000	'