COMSovereign Holding (COMS) 10-Q 1 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 01, 2013
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'MACROSOLVE INC	'
Entity Central Index Key	'0001178727	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	188,644,731

BALANCE_SHEETS_UNAUDITED

BALANCE SHEETS (UNAUDITED) (USD $)	Sep. 30, 2013	Dec. 31, 2012
CURRENT ASSETS:	'	'
Cash	$757,986	$659,204
Accounts receivable - trade	67,188	74,056
Prepaid expenses and other	97,919	519,330
Total current assets	923,093	1,252,590
PROPERTY AND EQUIPMENT, at cost:	4,237	21,651
Less - accumulated depreciation and amortization	-1,442	-19,462
Net property and equipment	2,795	2,189
OTHER ASSETS:	'	'
Investment in DecisionPoint Systems, Inc.	442,281	579,875
Investment in MEDL Mobile Holdings, Inc.	46,179	'
Investment in Endexx Corporation	10,010	'
Other assets	68,251	64,227
Total other assets	566,721	644,102
TOTAL ASSETS	1,492,609	1,898,881
CURRENT LIABILITIES:	'	'
Current maturities of long-term debt	90,000	90,000
Accounts payable - trade and accrued liabilities	139,065	84,062
Unearned income	'	500,000
Total current liabilities	229,065	674,062
LONG-TERM DEBT, less current maturities	'	'
Note Payable - Shareholders	579,202	541,752
Oklahoma Technology Commercialization Center	57,500	125,000
Convertible debentures	150,000	150,000
Total long-term debt, less current maturities	786,702	816,752
COMMITMENTS AND CONTINGENCIES	'	'
STOCKHOLDERS' EQUITY:	'	'
Common stock, $.01 par value; authorized 500,000,000 shares; issued and outstanding 188,644,731 and179,831,987 shares, at September 30, 2013 and December 31, 2012, respectively	1,886,447	1,798,320
Additional paid-in capital	13,298,362	13,230,111
Accumulated other comprehensive income	-316,530	-170,125
Accumulated deficit	-14,391,437	-14,450,239
Total stockholders' equity	476,842	408,067
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$1,492,609	$1,898,881

BALANCE_SHEETS_UNAUDITED_Paren

BALANCE SHEETS (UNAUDITED) (Parenthenticals) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement Of Financial Position [Abstract]	'	'
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	188,644,731	179,831,987
Common stock, shares outstanding	188,644,731	179,831,987

STATEMENTS_OF_INCOME_AND_COMPR

STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]	'	'	'	'
Net revenues	$161,246	$558,738	$1,129,597	$1,980,990
Cost of revenues	101,583	261,444	509,699	859,645
Gross profit	59,663	297,294	619,898	1,121,345
Selling, general and administrative expense	169,386	756,628	528,827	2,951,163
(Loss) Income from operations	-109,723	-459,334	91,071	-1,829,818
OTHER INCOME (EXPENSE):	'	'	'	'
Interest income	1,637	25	5,857	53
Interest expense	-12,820	-21,317	-38,126	-138,186
Total other expense	-11,183	-21,292	-32,269	-138,133
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	-120,906	-480,626	58,802	-1,967,951
DISCONTINUED OPERATIONS Loss from operations of discontinued Illume Mobile operations	'	-197,387	'	-197,387
NET INCOME (LOSS)	-120,906	-678,013	58,802	-2,165,338
OTHER COMPREHENSIVE INCOME, net of tax	'	'	'	'
Unrealized holding loss arising during the period	-220,008	-107,072	-146,405	-107,072
COMPREHENSIVE (LOSS)	-340,914	-785,085	-87,603	-2,272,410
INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS:	'	'	'	'
Net income (loss)	-120,906	-678,013	58,802	-2,165,338
Income (loss) allocable to common stockholders	($120,906)	($678,013)	$58,802	($2,165,338)
Weighted average number of common shares outstanding	186,551,952	176,710,333	185,026,337	162,690,085
Basic and diluted net income (loss) from continuing operations per share	$0	$0	$0	($0.01)
Basic and diluted net loss from discontinued operations per share	$0	$0	$0	$0
Basic and diluted net income (loss) per share	$0	$0	$0	($0.01)

STATEMENTS_OF_CASH_FLOWS_UNAUD

STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
OPERATING ACTIVITIES:	'	'
Net income (loss)	$58,802	($2,165,338)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:	'	'
Depreciation and amortization	2,536	516,693
Loss on disposal of fixed assets	435	4,246
Stock based compensation	106,408	303,568
Changes in current assets and liabilities:	'	'
Decrease in accounts receivable - trade	6,868	102,944
Decrease in note receivable	'	135,577
Decrease in prepaid expenses and other	421,381	235,219
Increase (decrease) in accounts payable - trade and accrued liabilities	41,473	-290,394
Increase in accrued debenture interest	13,530	107,641
Increase in accrued shareholder loan interest	23,950	'
Increase accrued salary - note payable	13,500	'
(Decrease) increase in unearned income	-500,000	5,571
Net cash provided by (used in) operating activities	188,883	-1,044,273
INVESTING ACTIVITIES:	'	'
Cash received from sale of Illume Mobile	'	250,000
Investment in Endexx Corporation	-15,000	'
Purchase of equipment	-1,467	-8,580
Software development costs	'	-233,390
Patent costs	-6,134	'
Net cash (used in) investing activities	-22,601	8,030
FINANCING ACTIVITIES:	'	'
Net proceeds from debenture financing	'	500,000
Reduction of accrued debenture interest	'	-233,782
Common stock issued for accrued debenture interest	'	216,330
Proceeds from shareholder loans, including accrued interest	'	790,621
Repayment of shareholder loans, including accrued interest	'	-115,247
Proceeds from sale of common stock	'	250,000
Shareholder loans converted to debentures	'	-320,000
Repayment of bank line of credit	'	-10,000
Repayments of notes payable	-67,500	0
Net cash (used in) provided by financing activities	-67,500	1,077,922
NET INCREASE IN CASH	98,782	41,679
CASH, beginning of period	659,204	273,132
CASH, end of period	757,986	314,811
Cash paid during the Nine Months ended September 30:	'	'
Interest	'	46,631
Income taxes	'	'
Noncash activities for the Nine Months ended September 30:	'	'
Stock issued for debenture interest	'	216,330
Stock issued for MEDL investment	50,000	'
Stock received from DecisionPoint Systems for sale of Illume Mobile assets, less unrealized market loss of $107,072	'	$642,928

STATEMENTS_OF_CASH_FLOWS_UNAUD1

STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthenticals) (USD $)	9 Months Ended
	Sep. 30, 2012
Statement of Cash Flows [Abstract]	'
unrealized market loss	$107,072

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2013
Basis of Presentation [Abstract]	'
BASIS OF PRESENTATION	'
	1.	BASIS OF PRESENTATION
	The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.  The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the financial statements not misleading.  The financial statements as of December 31, 2012 have been audited by an independent registered public accounting firm. These financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s 10K for the calendar year ended December 31, 2012.

INVESTMENTS

INVESTMENTS	9 Months Ended
	Sep. 30, 2013
DECISIONPOINT SYSTEMS, INC.	'
Investment [Line Items]	'
Investments in advance to affiliates subsidiaries associates and joint ventures	'
	2.	INVESTMENT IN DECISIONPOINT SYSTEMS, INC.
	As further described in the 2012 10K, on July 31, 2012, the Company sold the Illume Mobile assets and operations to DecisionPoint Systems, Inc. (DPSI) for $250,000 cash and 617,284 shares of DPSI stock valued at $1.215 per share or a total of $750,000. In accordance with ASU 2011-05, the stock is classified as available-for-sale equity and the unrealized market gains or losses are recorded as Other Comprehensive Income. Due to the volatility and thin trading of DPSI shares, the Company has determined that the fair market value on the measurement date will be computed from the volume-weighted average trading price for the entire third quarter of 2013. The unrealized loss on the investment consists of the following:
			Number
	DPSI stock		of Shares		30-Sep-13
	Basis at December 31, 2012			617,284	$	579,875
	Basis at Report Date			617,284	$	442,281
	Unrealized market loss				$	(137,594	)
MEDL MOBILE HOLDINGS, INC.	'
Investment [Line Items]	'
Investments in advance to affiliates subsidiaries associates and joint ventures	'
	3.	INVESTMENT IN MEDL MOBILE HOLDINGS, INC.
	On March 8, 2013, the Company entered into an agreement with MEDL Mobile Holdings, Inc. (MEDL) to bring forth a program that offers access to the Company’s ‘816’ patent to app developers. MEDL received the right to grant a license to its clients on a ‘per install’ basis on a revenue sharing arrangement with the Company. As a part of the agreement, each Company received $50,000 worth of the other’s stock with the price per share determined by the Volume Weighted Average Price (“VWAP”) for each stock for the last twenty trading days prior to execution of the agreement. The Company received 147,692 shares of MEDL stock priced at $0.34 per share the MEDL received 2,500,000 shares of the Company’s stock priced at $0.02 per share.
	In accordance with ASU 2011-05, the stock is classified as available-for-sale equity and the unrealized market gains or losses are recorded as Other Comprehensive Income. Due to the volatility of MEDL shares, the Company has determined that the fair market value on the measurement date will be computed from the volume-weighted average trading price for the entire third quarter of 2013. The unrealized loss on the investment consists of the following:
			Number
	MEDL stock		of Shares		30-Sep-13
	Basis at acquisition-March 8, 2013			147,692	$	50,000
	Basis at Report Date			147,692	$	46,179
	Unrealized market loss				$	(3,821	)
ENDEXX CORPORATION	'
Investment [Line Items]	'
Investments in advance to affiliates subsidiaries associates and joint ventures	'
	4.	INVESTMENT IN ENDEXX CORPORATION
	On June 5, 2013, the Company entered into six month agreement with Endexx Corporation (EDXC) to coordinate business planning, investor interests and intellectual property for a mobile app venture that uniquely addresses advertising market analytics. Additionally, Endexx received a variable limited ‘816’ license during the course of the business advisory engagement while its app is in development with the agreement that a permanent license will be negotiated upon completion.  Endexx will pay the Company $15,000 compensation by issuing 125,000 shares of EDXC restricted stock priced at $.12 per share and the balance to be paid in cash.
	In accordance with ASU 2011-05, the stock is classified as available-for-sale equity and the unrealized market gains or losses are recorded as Other Comprehensive Income. Due to the volatility of EDXC shares, the Company has determined that the fair market value on the measurement date will be computed from the daily volume-weighted average trading price for the entire third quarter of 2013. The unrealized loss on the investment consists of the following:
			Number
	EDXC stock		of Shares		30-Sep-13
	Basis at acquisition-June 13,2013			125,000	$	15,000
	Basis at Report Date			125,000	$	10,010
	Unrealized market loss				$	(4,990	)

NOTES_PAYABLE_SHAREHOLDERS

NOTES PAYABLE - SHAREHOLDERS	9 Months Ended
	Sep. 30, 2013
Oklahoma Technology Commercialization Center [Abstract]	'
NOTE PAYABLE - SHAREHOLDERS	'
	5.	NOTE PAYABLE - SHAREHOLDERS
	On September 30, 2013, the Company reclassified $13,500 deferred compensation to a note payable due to Kendall Carpenter as stipulated in her employment agreement. The note bears a 6% interest rate and is due by September 30, 2014. There was no unpaid accrued interest at September 30, 2013. For the first nine months of 2013, the Company accrued $23,950 interest on notes payable to shareholders.

OKLAHOMA_TECHNOLOGY_COMMERCIAL

OKLAHOMA TECHNOLOGY COMMERCIALIZATION CENTER	9 Months Ended
	Sep. 30, 2013
Oklahoma Technology Commercialization Center [Abstract]	'
OKLAHOMA TECHNOLOGY COMMERCIALIZATION CENTER	'
	6.	OKLAHOMA TECHNOLOGY COMMERCIALIZATION CENTER
	The Company is repaying $7,500 per month, or $67,500 through the first nine months of 2013, on its refundable award from the State of Oklahoma Technology Business Finance Program.

SHAREHOLDERS_EQUITY

SHAREHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2013
Shareholders' Equity [Abstract]	'
SHAREHOLDERS' EQUITY	'
	7.	SHAREHOLDERS’ EQUITY
	The Company issued a total of 8,812,744 common shares in the nine months ended September 30, 2013, described further as follows:
	The Company issued a total of 386,048 shares of common stock to its two independent directors in October 2013 for their third quarter 2013 compensation valued at $4,000 per director. The same directors also received 423,280 shares of common stock in January 2013 for their fourth quarter 2012 compensation valued at $4,000 per director.
	The Company issued 1,706,731 shares of common stock in October 2013 to a management employee in lieu of $35,500 cash compensation for services rendered in the third quarter of 2013. The Company issued 868,852 shares of compensation shares in July 2013 to a management executive in lieu of $26,500 cash compensation for services rendered during the second quarter of 2013. The Company issued 1,019,231 shares of common stock in April 2013 to a management employee in lieu of $26,500 cash compensation for services rendered in the first quarter of 2013. The Company issued 1,908,602 shares of common stock in January 2013 to a management employee which had been recorded at a value of $1,909 in stock based compensation based upon individual tax elections made by the recipient. The shares were awarded quarterly on a Restricted Stock Agreement which has a six month time lapse restriction and is subject to forfeiture upon voluntary termination of employment.
	As described in Footnote #3, the Company issued 2,500,000 shares of restricted common stock on March 8, 2013 to MEDL Mobile Holdings, Inc. valued at $50,000.

INVESTMENTS_Tables

INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2013
DECISIONPOINT SYSTEMS, INC.	'
Investment [Line Items]	'
Schedule of unrealized loss of the investment	'
		Number
	DPSI stock	of Shares		30-Sep-13
	Basis at December 31, 2012		617,284	$	579,875
	Basis at Report Date		617,284	$	442,281
	Unrealized market loss			$	(137,594
MEDL MOBILE HOLDINGS, INC.	'
Investment [Line Items]	'
Schedule of unrealized loss of the investment	'
		Number
	MEDL stock	of Shares		30-Sep-13
	Basis at acquisition-March 8, 2013		147,692	$	50,000
	Basis at Report Date		147,692	$	46,179
	Unrealized market loss			$	(3,821	)
ENDEXX CORPORATION	'
Investment [Line Items]	'
Schedule of unrealized loss of the investment	'
		Number
	EDXC stock	of Shares		30-Sep-13
	Basis at acquisition-June 13,2013		125,000	$	15,000
	Basis at Report Date		125,000	$	10,010
	Unrealized market loss			$	(4,990	)

INVESTMENTS_IN_DECISIONPOINT_S

INVESTMENTS IN DECISIONPOINT SYSTEMS, INC. - Unrealized loss on the investment (Details) (DecisionPoint Systems, Inc, USD $)	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Jul. 31, 2012
DecisionPoint Systems, Inc	'	'	'
Investment [Line Items]	'	'	'
Number of Shares	617,284	617,284	617,284
Available-for-sale securities	$650,557	$617,284	'
Unrealized market gain (loss)	($137,594)	'	'

INVESTMENTS_IN_DECISIONPOINT_S1

INVESTMENTS IN DECISIONPOINT SYSTEMS, INC. (Detail Textuals) (DecisionPoint Systems, Inc, USD $)	1 Months Ended
	Jul. 31, 2012	Sep. 30, 2013	Dec. 31, 2012
DecisionPoint Systems, Inc	'	'	'
Investment [Line Items]	'	'	'
Cash received from sale of assets	$250,000	'	'
Number of shares received	617,284	617,284	617,284
Share price	$1.22	'	'
Value of shares received	$750,000	'	'
Nature Of Transaction	'Company sold the Illume Mobile assets and operations to DecisionPoint Systems, Inc	'	'

INVESTMENTS_IN_MEDL_MOBILE_HOL

INVESTMENTS IN MEDL MOBILE HOLDINGS, INC. - Unrealized gain on the investment (Details) (MEDL Mobile Holdings, Inc, USD $)	9 Months Ended
	Sep. 30, 2013	Mar. 08, 2013
MEDL Mobile Holdings, Inc	'	'
Investment [Line Items]	'	'
Number of Shares	147,692	147,692
Available-for-sale securities	$46,179	$50,000
Unrealized market gain (loss)	($3,821)	'

INVESTMENTS_IN_MEDL_MOBILE_HOL1

INVESTMENTS IN MEDL MOBILE HOLDINGS, INC. (Detail Textuals) (MEDL Mobile Holdings, Inc, USD $)	0 Months Ended
	Mar. 08, 2013	Sep. 30, 2013
MEDL Mobile Holdings, Inc	'	'
Investment [Line Items]	'	'
Value of other stock received by company	$50,000	'
Number of shares received	147,692	147,692
Shares issued	2,500,000	'
Equity issuance price per share	$0.02	'
Nature Of Transaction	'Company entered into an agreement with MEDL Mobile Holdings, Inc. (MEDL) to bring forth a program that offers access to the Company's 816' patent to app developers.	'

INVESTMENTS_IN_ENDEXX_CORPORAT

INVESTMENTS IN ENDEXX CORPORATION (Details) (Endexx Corporation [Member], USD $)	9 Months Ended
	Sep. 30, 2013	Jun. 13, 2013	Jun. 05, 2013
Endexx Corporation [Member]	'	'	'
Investment [Line Items]	'	'	'
Number of Shares	15,000	125,000	125,000
Available-for-sale securities	$10,010	$125,000	'
Unrealized market gain (loss)	($4,990)	'	'

INVESTMENTS_IN_ENDEXX_CORPORAT1

INVESTMENTS IN ENDEXX CORPORATION (Detail Textuals) (ENDEXX CORPORATION, USD $)	0 Months Ended
	Jun. 05, 2013	Sep. 30, 2013	Jun. 13, 2013
ENDEXX CORPORATION	'	'	'
Value of other stock received by company	$15,000	'	'
Number of shares received	125,000	15,000	125,000
Share Price	$0.12	'	'
Nature Of Transaction	'Company entered into six month agreement with Endexx Corporation (EDXC) to coordinate business planning, investor interests and intellectual property for a mobile app venture that uniquely addresses advertising market analytics.	'	'

NOTES_PAYABLE_SHAREHOLDERS_Det

NOTES PAYABLE - SHAREHOLDERS (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Debt Instrument [Line Items]	'
Interest rate, notes payable	6.00%
Accrued interest on notes payable	$23,950
Maturity date	30-Sep-14
Kendall Carpenter [Member]	'
Debt Instrument [Line Items]	'
Deferred compensation	$13,500

OKLAHOMA_TECHNOLOGY_COMMERCIAL1

OKLAHOMA TECHNOLOGY COMMERCIALIZATION CENTER (Details) (Oklahoma Technology Business Finance Program, USD $)	9 Months Ended
	Sep. 30, 2013
Oklahoma Technology Business Finance Program	'
Debt Instrument [Line Items]	'
Monthly payment	$7,500
Periodic payment of refundable award	$67,500

SHAREHOLDERS_EQUITY_Detail_Tex

SHAREHOLDERS' EQUITY (Detail Textuals) (USD $)	3 Months Ended	0 Months Ended	9 Months Ended	1 Months Ended	9 Months Ended		3 Months Ended		9 Months Ended
	Jun. 30, 2013	Mar. 08, 2013	Sep. 30, 2013	Jan. 31, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Mar. 31, 2013	Sep. 30, 2013
		MEDL Mobile Holdings, Inc	Restricted Stock	Restricted Stock	Restricted Stock	Common Stock	Common Stock	Common Stock	Common Stock
			MEDL Mobile Holdings, Inc	Director	Director		Management	Management	Management
				Fourth quarter 2012 compensation	Third quarter 2013 compensation
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'	'	'	'	'
Shares issued	'	2,500,000	2,500,000	423,280	386,048	8,812,744	'	'	'
Number of shares issued for services	868,852	'	'	'	'	'	1,706,731	1,019,231	1,908,602
Cash compensation for shares issued for services	$26,500	'	'	'	'	'	$35,500	$26,500	'
Stock based compensation	'	'	'	4,000	4,000	'	'	'	1,909
Value of common stock issued to MEDL Mobile Holdings, Inc.	'	'	$50,000	'	'	'	'	'	'
Number of directors	'	'	'	'	2	'	'	'	'
Vesting period	'	'	'	'	'	'	'	'	'6 months