Emarine Global (EMRN) 10-Q 14 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 14, 2015
Document Information [Line Items]
Entity Registrant Name	Pollex, Inc.
Entity Central Index Key	1,178,377
Trading Symbol	PLLX
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,121,688

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$ 4,241	$ 4,329
Due from related party	70,352	53,423
Total current assets	74,593	57,752
Property and equipment, net of accumulated depreciation of $10,479 and $10,479 at June 30, 2015 and December 31, 2014, respectively	0	0
Other Asset - Deposit	1,300	1,300
Total Assets	75,893	59,052
CURRENT LIABILITIES
Accounts payable	509,854	506,093
Accrued expenses	447,368	398,943
Amounts due to affiliate under service agreement	1,131,000	1,011,000
Advances from affiliate	416,197	388,477
Loans payable	1,215,799	1,215,799
Total Current Liabilities	3,720,218	3,520,312
Stockholders' Deficit
Preferred Stock, authorized 10,000,000 shares; par value $0.001; none issued and outstanding at June 30, 2015 and December 31, 2014, respectively	0	0
Common stock, authorized 300,000,000 shares; par value $0.001; 5,121,688 issued and outstanding at June 30, 2015 and December 31, 2014, respectively	5,120	5,120
Additional paid-in capital	136,994,861	136,954,861
Accumulated deficit	(140,644,306)	(140,421,241)
Total Stockholders’ Deficit	(3,644,325)	(3,461,260)
Total Liabilities and Stockholders’ Deficit	$ 75,893	$ 59,052

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Accumulated depreciation of property and equipment (in dollars)	$ 10,479	$ 10,479
Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
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

STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
REVENUES	$ 21,016	$ 16,894	$ 42,775	$ 35,720
COSTS AND EXPENSES
Cost of goods sold	0	0	0	586
Selling, general and administrative	55,910	78,967	109,666	149,773
Related party service agreement	60,000	60,000	120,000	120,000
Impairment of license agreements	0	70,000	0	70,000
Depreciation and amortization	0	5,082	0	10,188
Total Costs and Expenses	115,910	214,049	229,666	350,547
OPERATING LOSS	(94,894)	(197,155)	(186,891)	(314,827)
OTHER EXPENSE
Interest expense	(18,187)	(18,998)	(36,174)	(36,166)
Total Other Expense	(18,187)	(18,998)	(36,174)	(36,166)
LOSS BEFORE INCOME TAXES	(113,081)	(216,153)	(223,065)	(350,993)
PROVISION FOR INCOME TAXES	0	0	0	0
NET LOSS	$ (113,081)	$ (216,153)	$ (223,065)	$ (350,993)
NET LOSS PER COMMON SHARE (Basic and Diluted)	$ (0.02)	$ (0.04)	$ (0.04)	$ (0.07)
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, 2015	Jun. 30, 2014
Net loss	$ (223,065)	$ (350,993)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	0	10,188
Impairment of license agreements	0	70,000
Contributed Service	40,000	40,000
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	0	(708)
(Increase) decrease in receivable from affiliate	(16,929)	(24,795)
Increase (decrease) in accounts payable	3,761	0
Increase (decrease) in accrued expenses	48,425	69,551
Increase (decrease) in amounts due affiliate under service agreement	120,000	120,000
Net cash used in operating activities	(27,808)	(66,757)
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities	0	0
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from advance from affiliate	28,720	75,200
Repayment of advance from affiliate	(1,000)	(40,000)
Loan proceeds	0	85,000
Repayment of loan	0	(28,896)
Net cash provided by financing activities	27,720	91,304
Net increase (decrease) in cash	(88)	24,547
CASH AT BEGINNING OF PERIOD	4,329	4,745
CASH AT END OF PERIOD	4,241	29,292
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Cash paid for interest	0	0
Cash paid for taxes	0	0
Assumption of accounts receivable by lender	$ 0	$ 708

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [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, 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	6 Months Ended
	Jun. 30, 2015
Going Concern [Abstract]
GOING CONCERN	NOTE B – GOING CONCERN As shown in the accompanying financial statements, the Company incurred net losses of $ 223,065 3,645,625 140,644,306

License Agreements

License Agreements	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [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. The Company began operating The Great Merchant, in open beta testing in January 2010. During the six months ended June 30, 2015 and 2014, the Company generated revenues of $ 42,775 35,012 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 29 708

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 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 six months ended June 30, 2015, the Company received proceeds of $ 28,720 75,200 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 10,000 120,000 120,000 1,131,000 1,011,000 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 53,423 107,341 90,412 70,352 In June 2014, the Company entered a sublease agreement with BCasual for its’ existing office space. BCasual agreed to pay the Company $ 1,250

Loans Payable

Loans Payable	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [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 During the six months ended June 30, 2014, the Company received proceeds of $ 85,000 28,896

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE F - INCOME TAXES At June 30, 2015 and December 31, 2014, the Company had unused net operating loss carryforwards of approximately $ 6,400,000 6,200,000 2,170,000 2,108,000 June 30, December 31, 2015 2014 Deferred tax liabilities $ - $ - Deferred tax asset- Net operating loss carryforward 2,170,000 2,108,000 Valuation allowance (2,170,000) (2,108,000) Net deferred tax asset $ - $ - June 30, 2015 2014 U.S statutory income tax rate 34 % 34 % Change in valuation allowance of deferred tax assets (34) % (34) % Net deferred tax asset - % - %

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE G- 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 made a deposit of $ 1,300 1,380 1,250 The minimum future lease commitment at June 30, 2015 on the above lease is $ 4,140 3,750 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, 2015 and 2014, the Company recorded $ 40,000 40,000

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Schedule of components of deferred tax liabilities and assets	Significant components of the Company’s deferred tax liabilities and assets at June 30, 2015 and December 31, 2014 are as follows: June 30, December 31, 2015 2014 Deferred tax liabilities $ - $ - Deferred tax asset- Net operating loss carryforward 2,170,000 2,108,000 Valuation allowance (2,170,000) (2,108,000) Net deferred tax asset $ - $ -
Schedule of income tax expense (benefit) by applying the United States statutory corporate income tax rate	The income tax expense (benefit) differs from the amount computed by applying the United States statutory corporate income tax rate as follows: June 30, 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 Textual)

Going Concern (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Going Concern [Line Items]
Net loss	$ (113,081)	$ (216,153)	$ (223,065)	$ (350,993)
Working Capital	3,645,625		3,645,625
Accumulated deficit	$ (140,644,306)		$ (140,644,306)		$ (140,421,241)

License Agreements (Details Tex

License Agreements (Details Textual) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	Jan. 31, 2010	Apr. 18, 2007	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Revenue generated			$ 21,016	$ 16,894	$ 42,775	$ 35,720
Assumption Of Accounts Receivable By Lender					$ 0	$ 708
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
License renew period term		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.
Licensing Agreements [Member] | Korea Based Service Provider [Member]
Finite-Lived Intangible Assets [Line Items]
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.
Percentage Gross Sales					29.00%

Related Party Transactions (Det

Related Party Transactions (Details Textual) - USD ($)	1 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Related party service agreement		$ 120,000	$ 120,000
Amount due from Gameforyou, Incorporated		90,412
Repaid to Gameforyou, Incorporated		70,352
Amount due to Gameforyou, Incorporated		1,131,000		$ 1,011,000
Purchase of equipment, related party		107,341		177,045
Due from related party		70,352		$ 53,423
Rental payment per month	$ 1,250
Repayments of Related Party Debt		1,000	40,000
Game For You [Member] | Service Agreement [Member]
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
Joytoto Co Ltd [Member]
Related Party Transaction [Line Items]
Repayments of Related Party Debt			40,000
Proceeds from Related Party Debt		$ 28,720	$ 75,200

Loans Payable (Details Textual)

Loans Payable (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Debt Instrument [Line Items]
Promissory note, rate of interest	6.00%
Loan proceeds	$ 0	$ 85,000
Repayment of loan	$ 0	$ 28,896

Income Taxes - (Details)

Income Taxes - (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Income Tax [Line Items]
Deferred tax liabilities	$ 0	$ 0
Deferred tax asset-
Net operating loss carryforward	2,170,000	2,108,000
Valuation allowance	(2,170,000)	(2,108,000)
Net deferred tax asset	$ 0	$ 0

Income Taxes - (Details 1)

Income Taxes - (Details 1)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Income Tax [Line Items]
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	0.00%	0.00%

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Income Tax [Line Items]
Unused net operating loss carryforward	$ 6,400,000	$ 6,200,000
Net operating loss carryforward	$ 2,170,000	$ 2,108,000

Commitments and Contingencies (

Commitments and Contingencies (Details Textual) - USD ($)	1 Months Ended		6 Months Ended
	Jun. 30, 2014	Mar. 21, 2014	Jun. 30, 2015	Dec. 31, 2014
Operating Leased Assets [Line Items]
Rental payment per month	$ 1,250
Fair value of services			$ 40,000	$ 40,000
Property Lease [Member]
Operating Leased Assets [Line Items]
Rental payment per month			1,380
Deposit on property lease			1,300
Minimum future lease commitments			4,140
Minimum future lease commitments noncancelable sublease			$ 3,750
Chief Executive Officer, President and Chairman - Seong Sam Cho
Operating Leased Assets [Line Items]
Annual salary		$ 1