Emarine Global (EMRN) 10-Q 20 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	19-May-15
Document and Entity Information [Abstract]
Entity Registrant Name	Pollex, Inc.
Entity Central Index Key	1178377
Trading Symbol	pllx
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Document Type	10-Q
Document Period End Date	31-Mar-15
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,121,688

Balance_Sheets

Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current Assets
Cash and cash equivalents	$3,493	$4,329
Due from related party	79,342	53,423
Total Current Assets	82,835	57,752
Property and equipment, net of accumulated depreciation of $10,479 and $10,479 at March 31, 2015 and December 31, 2014, respectively
Other asset - Deposit	1,300	1,300
Total Assets	84,135	59,052
CURRENT LIABILITIES
Accounts payable	518,152	506,093
Accrued expenses	416,931	398,943
Amounts due to affiliate under service agreement	1,071,000	1,011,000
Advances from affiliate	413,497	388,477
Loans payable	1,215,799	1,215,799
Total Current Liabilities	3,635,379	3,520,312
Commitments and contingencies
Stockholders' Deficit
Common stock, authorized 300,000,000 shares; par value $0.001; 5,121,688 issued and outstanding at March 31, 2015 and December 31, 2014, respectively	5,120	5,120
Additional paid-in capital	136,974,861	136,954,861
Accumulated deficit	-140,531,225	-140,421,241
Total Stockholders' Deficit	-3,551,244	-3,461,260
Total Liabilities and Stockholders' Deficit	$84,135	$59,052

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Balance Sheets [Abstract]
Accumulated depreciation of property and equipment (in dollars)	$10,479	$10,479
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	5,121,688	5,121,688
Common stock, shares outstanding	5,121,688	5,121,688

Statements_of_Operations_Unaud

Statements of Operations (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statements of Operations [Abstract]
REVENUES	$21,759	$18,826
COSTS AND EXPENSES
Cost of goods sold		586
Selling, general and administrative	53,756	70,806
Related party service agreement	60,000	60,000
Depreciation and amortization		5,106
Total Costs and Expenses	113,756	136,498
OPERATING LOSS	-91,997	-117,672
OTHER EXPENSE
Interest expense	-17,987	-17,168
Total Other Expense	-17,987	-17,168
LOSS BEFORE INCOME TAXES	-109,984	-134,840
PROVISION FOR INCOME TAXES
NET LOSS	($109,984)	($134,840)
NET LOSS PER COMMON SHARE (Basic and Diluted)	($0.02)	($0.03)
WEIGHTED AVERAGE SHARES OUTSTANDING	5,121,688	5,121,688

Statements_of_Cash_Flows

Statements of Cash Flows (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	($109,984)	($134,840)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		5,106
Contributed services	20,000	20,000
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		-708
(Increase) decrease in receivable from affiliate	-25,919
Increase (decrease) in accounts payable	12,059
Increase (decrease) in accrued expenses	17,988	7,889
Increase (decrease) in amounts due affiliate under service agreement	60,000	60,000
Net cash used in operating activities	-25,856	-42,553
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from advance from affiliate	25,020	23,700
Repayment of advance from affiliate		-40,000
Loan proceeds		85,000
Repayment of loan		-28,896
Net cash provided by financing activities	25,020	39,804
Net increase (decrease) in cash	-836	-2,749
CASH AT BEGINNING OF PERIOD	4,329	4,745
CASH AT END OF PERIOD	3,493	1,996
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	3 Months Ended
	Mar. 31, 2015
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 months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. 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, 2014.

Going_Concern

Going Concern	3 Months Ended
	Mar. 31, 2015
Going Concern [Abstract]
GOING CONCERN	NOTE B – GOING CONCERN
	As shown in the accompanying financial statements, the Company incurred net losses of $109,984 and $134,840 for the three months ended March 31, 2015 and 2014, respectively, had negative working capital of $3,552,544 at March 31, 2015 and had an accumulated deficit of $140,531,225 at March 31, 2015.  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	3 Months Ended
	Mar. 31, 2015
License Agreements [Abstract]
LICENSE AGREEMENTS	NOTE C – LICENSE AGREEMENTS
	The Company’s license agreements consist of the following:
		1	On April 18, 2007, the Company entered into a master license agreement with Joytoto Korea granting the Company a 10 year license for up to 4 online games, including The Great Merchant. This license is renewable for two additional 5 year terms for $10,000. Prior to the launch of the Great Merchant in 2010, the Company determined that the master license agreement was fully impaired.
	The Company began operating The Great Merchant, in open beta testing in January 2010. During the three months ended March 31, 2015 and 2014, the Company generated revenues of $21,759 and $18,118, respectively, from The Great Merchant.
		2	Beginning in 2010, the Company acquired licenses for online games 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.
	The Company engaged a Korea-based service provider to support and maintain the online games, and collect payments from customers.  Under this agreement the service provider is required to pay the Company 29% of gross sales.  For the three months ended March 31, 2015 and 2014, the Company billed such 29%, or $0 and $708, respectively. In June 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 United States.

Related_Party_Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2015
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 three months ended March 31, 2015, the Company received proceeds of $25,020. During the three months ended March 31, 2014, the Company received proceeds of $23,700 and repaid $40,000.
	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 three months ended March 31, 2015 and 2014, $60,000 and $60,000, respectively, were recognized in the Statement of Operations under this agreement. At March 31, 2015 and December 31, 2014, $1,071,000 and $1,011,000, respectively were due to Gameforyou, Incorporated.
	During the year ended December 31, 2014, the Company began making purchases of computer equipment for resale by a related company, BCasual, Incorporated (“BCasual”.) During the year ended December 31, 2014, the Company made purchases of $177,045 on behalf of BCasual, of which $53,423 was due from BCasual at December 31, 2014. During the three months ended March 31, 2015, the Company made additional purchases of $60,981 and received payments of $35,062, resulting in a balance of $79,342 at March 31, 2015.
	In June 2014, the Company entered a sublease agreement with BCasual for its’ existing office space. BCasual agreed to pay the Company $1,250 per month under this agreement.

Loans_Payable

Loans Payable	3 Months Ended
	Mar. 31, 2015
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.
	During the three months ended March 31, 2014, the Company received proceeds of $85,000 and repaid $28,896.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2015
Income Taxes [Abstract]
INCOME TAXES	NOTE F - INCOME TAXES
	At March 31, 2015 and December 31, 2014, the Company had unused net operating loss carryforwards of approximately $6,300,000 and $6,200,000, respectively, for income tax purposes, which expire between 2027 and 2035. The net operating loss carryforwards may result in future income tax benefits of approximately $2,145,000 and $2,108,000, 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 at March 31, 2015 and December 31, 2014 are as follows:
		March  31,			December 31,
		2015			2014
	Deferred tax liabilities	$	-		$	-
	Deferred tax asset-
	Net operating loss carryforward		2,145,000			2,108,000
	Valuation allowance		(2,145,000	)		(2,108,,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:
		March 31,
		2015			2014
	U.S statutory income tax rate		34	%		34	%
	Change in valuation allowance of deferred tax assets		(34	%)		(34	%)
	Net deferred tax asset		-	%		-	%

Stockholders_Deficit

Stockholders' Deficit	3 Months Ended
	Mar. 31, 2015
Stockholders' Deficit [Abstract]
STOCKHOLDERS' DEFICIT	NOTE G – STOCKHOLDERS’ DEFICIT
	Preferred stock- The Company is authorized to issue 10,000,000 shares of $0.001 par value preferred stock. No shares of preferred stock were issued and outstanding at March 31, 2015 or December 31, 2014.
	Common stock- The Company is authorized to issue 300,000,000 shares of $0.001 par value common stock. 5,121,688 shares of common stock were issued and outstanding at March 31, 2015 and December 31, 2014.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE H- COMMITMENTS AND CONTINGENCIES
	Property Leases:
	On September 5, 2012, the Company signed a lease for office space in Santa Clara, California. The lease term is through September 30, 2015.  The Company’s made a deposit of $1,300 and the rent payments are $1,380 per month. In June 2014, the Company entered a sublease agreement with BCasual for its’ existing office space. BCasual agreed to pay the Company $1,250 per month under this agreement.
	The minimum future lease commitment at March 31, 2015 on the above lease is $8,280, through September 30, 2015, exclusive of $7,500 in noncancelable subleases.
	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 three months ended March 31, 2015 and 2014, the Company recorded $20,000 and $20,000, respectively, for the fair value of the services contributed by Seong Sam Cho.

Income_Taxes_Tables

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2015
Income Taxes [Abstract]
Schedule of components of deferred tax liabilities and assets
		March  31,			December 31,
		2015			2014
	Deferred tax liabilities	$	-		$	-
	Deferred tax asset-
	Net operating loss carryforward		2,145,000			2,108,000
	Valuation allowance		(2,145,000	)		(2,108,,000	)
	Net deferred tax asset	$	-		$	-
Schedule of income tax expense (benefit) by applying the United States statutory corporate income tax rate		March 31,
		2015			2014
	U.S statutory income tax rate		34	%		34	%
	Change in valuation allowance of deferred tax assets		(34	%)		(34	%)
	Net deferred tax asset		-	%		-	%

Going_Concern_Details

Going Concern (Details) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Going Concern [Abstract]
Net loss	($109,984)	($134,840)	($527,407)
Working capital	3,552,544
Accumulated deficit	($140,531,225)		($140,421,241)

License_Agreements_Details

License Agreements (Details) (USD $)	3 Months Ended		1 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Apr. 18, 2007	Jan. 31, 2010
Finite-Lived Intangible Assets [Line Items]
Revenue generated	$21,759	$18,826
Assumption of accounts receivable by lender		708
Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated usefull life of license agreements		2 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated usefull life of license agreements		3 years
Licensing agreements
Finite-Lived Intangible Assets [Line Items]
License renew period term			The Company a 10 year license for up to 4 online games. This license is renewable for two additional 5 year terms for $10,000.
Licensing agreements | Korea-based service provider
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$10,000
Estimated usefull life of license agreements	10 years
Percentage of gross sales	29.00%
License renew period term				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.
Licensing agreements | Minimum
Finite-Lived Intangible Assets [Line Items]
Percentage of gross sales	24.00%
Licensing agreements | Maximum
Finite-Lived Intangible Assets [Line Items]
Percentage of gross sales	25.00%

Related_Party_Transactions_Det

Related Party Transactions (Details) (USD $)	1 Months Ended	3 Months Ended
	Jun. 30, 2014	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Related party service agreement		$60,000	$60,000
Amount due from Gameforyou, Incorporated		35,062
Repaid to Gameforyou, Incorporated		79,342
Amount due to Gameforyou, Incorporated		1,071,000		1,011,000
Purchase of equipment, related party		60,981		177,045
Due from related party		79,342		53,423
Rental payment per month	1,250
Repayments of related party debt			40,000
Joytoto Co Ltd [Member]
Related Party Transaction [Line Items]
Proceeds from related party debt		25,020	23,700
Repayments of related party debt			40,000
Gameforyou | 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

Loans_Payable_Details

Loans Payable (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
	Promissory_Note
Loans Payable (Textual)
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

Income_Taxes_Details

Income Taxes - (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Income Taxes [Abstract]
Deferred tax liabilities
Deferred tax asset-
Net operating loss carryforward	2,145,000	2,108,000
Valuation allowance	-2,145,000	-2,108,000
Net deferred tax asset

Income_Taxes_Details_1

Income Taxes - (Details 1)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
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_Details_Textual

Income Taxes (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Income Taxes [Abstract]
Unused net operating loss carryforward	$6,300,000	$6,200,000
Operating loss carryforwards expiration period	Expire between 2027 and 2035.
Net operating loss carryforward	$2,145,000	$2,108,000

Stockholders_Deficit_Details

Stockholders' Deficit (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Stockholders' Deficit (Textual)
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	5,121,688	5,121,688
Common stock, shares outstanding	5,121,688	5,121,688

Commitments_and_Contingencies_

Commitments and Contingencies (Details) (USD $)	1 Months Ended	0 Months Ended	1 Months Ended
	Jun. 30, 2014	Mar. 21, 2014	Sep. 05, 2012	Mar. 31, 2015	Mar. 31, 2014
Operating Leased Assets [Line Items]
Rental payment per month	$1,250
Fair value of services				20,000	20,000
Chief Executive Officer, President and Chairman - Seong Sam Cho
Operating Leased Assets [Line Items]
Term of agreement		3 years
Annual salary		1
Property lease
Operating Leased Assets [Line Items]
Deposit on property lease			1,300
Rental payment per month			1,380
Lease term			The lease term is through September 30, 2015.
Minimum future lease commitments				8,280
Minimum future lease commitments noncancelable sublease				$7,500