Genesis Financial 10-Q 19 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 19, 2018
Document And Entity Information
Entity Registrant Name	GENESIS FINANCIAL INC
Entity Central Index Key	1,183,082
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		35,711,905
Trading Symbol	GFNL
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash	$ 20,020	$ 756,515
Prepaid expenses and other current assets	25,450	25,000
Total current assets	45,470	781,515
Technology and equipment, net	431,694	171,889
Goodwill	1,835,684
Other assets	113,810	1,000
Total Assets	2,426,658	954,404
Current liabilities:
Accounts payable and accrued expenses	1,531,147	112,437
Loans payable and accrued interest, net	1,862,466	1,344,933
Total liabilities	3,393,613	1,457,370
Stockholders' deficit:
Preferred stock, $0.0001 par value, 6,000,000 total authorized, 2,500,000 authorized are designated as Series A 8% cumulative convertible preferred, Nil and 1,190,021 Series A 8% cumulative convertible preferred issued and outstanding at September 30, 2018 and December 31, 2017 (liquidation values of $Nil and $5,070,000), respectively		2,943,265
Common stock value	35,712
Additional paid-in capital	60,651,093	1,218,490
Accumulated deficit	(61,653,760)	(4,664,721)
Total stockholders' deficit	(966,955)	(502,966)
Total Liabilities and Stockholders' Deficit	2,426,658	954,404
Series A Common Stock [Member]
Stockholders' deficit:
Common stock value

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	6,000,000	6,000,000
Preferred stock, shares liquidation values		$ 5,070,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	35,711,905
Common stock, shares outstanding	35,711,905
Series A 8% Cumulative Convertible Preferred [Member]
Preferred stock, shares designated	2,500,000	2,500,000
Preferred stock, shares issued		1,190,021
Preferred stock, shares outstanding		1,190,021
Series A Common Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued		7,041,515
Common stock, shares outstanding		7,041,515

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Expenses:
Professional services	$ 407,980	$ 71,873	$ 2,163,294	$ 103,101
Compensation, payroll taxes and benefits	265,769	78,578	755,654	245,430
Technologies and telecomm	19,927	55,661	100,451	92,164
Depreciation and amortization	39,435	13,227	101,123	39,681
Taxes, licenses and insurance	32,781		81,973	2,429
Occupancy and equipment	27,114	2,079	67,209	4,341
Loss of deposits on planned acquisition of SmartPay Leasing, LLC	(200,000)		(200,000)
Other operating expenses	5,697	960	70,273	1,528
Total operating expenses	998,703	222,378	3,539,977	488,674
Net loss from operations	(998,703)	(222,378)	(3,539,977)	(488,674)
Interest income	1	1	114	23
Interest expense	(255,340)	(3,421)	(412,543)	(3,421)
Net loss	$ (1,254,042)	$ (225,798)	$ (3,952,406)	$ (492,072)
Loss per share of common stock, basic and diluted	$ (0.04)	$ (0.03)	$ (0.13)	$ (0.07)
Weighted-average number of common shares outstanding, basic and diluted	35,711,905	7,041,515	30,954,827	7,041,519

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flows From Operating Activities:
Net loss	$ (3,952,406)	$ (492,072)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss of deposits on planned acquisition of SmartPay Leasing, LLC	(200,000)
Depreciation and amortization	101,123	39,681
Amortization of debt issuance costs	219,673	2,818
Common stock issued for loan fee on note payable	80,000
Professional services compensated with stock-based compensation	953,241
Net change in operating working capital items	995,734	13,765
Net cash used in operating activities	(1,402,635)	(435,808)
Cash Flows From Investing Activities:
Cash acquired in acquisitions	40,353
Purchases of technology and equipment	(120,303)
Deposits on planned acquisition of SmartPay Leasing, LLC	(200,000)
Net cash used in investing activities	(279,950)
Cash Flows From Financing Activities:
Proceeds from loans payable	946,090	350,000
Debt issuance costs paid on loans payable		(19,500)
Net cash provided by financing activities	946,090	330,500
Net decrease in cash	(736,495)	(105,308)
Cash - beginning of period	756,515	254,759
Cash - end of period	20,020	149,451
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest		19,500
Cash paid during the period for income taxes
Supplemental Disclosure of Non-Cash Financing Activity
Issuance of common stock for the reverse merger of EPOINT Payment Corp. and Genesis Financial, Inc. (see Note 6 for assets acquired and liabilities assumed)	1,759,500
Issuance of common stock for the acquisition of Fintech Holdings, LLC (see Note 6 for assets acquired and liabilities assumed)	52,871,210
Common stock issued in exchange of notes payable	250,000
Common stock issued as debt issuance costs	130,000
Issuance of warrants for note extension	$ 561,100

Background

Background	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Background	1. BACKGROUND Nature of Operations Epoint is in the business of providing a range of alternate financial products designed for cost-efficient delivery via a smart phone or other mobile device. Epoint intends to initiate financial services offerings with an integrated “Mobile First” enabled program targeting underbanked and unbanked consumers, initially in North America, which will include micro credit, mobile phone device financing programs, money transfers, prepaid debit cards, bill payments, mobile top up, check processing, insurance and travel. Epoint intends to leverage its relationships and agreements with key technology and media participants, together with appropriate financial institutions and distribution collaborators, to offer target consumers a wide range of price leading and more convenient local and international financial services, including money transfer, bill payment, mobile top up, Point of Sale (POS) payments, instant micro loans, check processing, insurance and travel services, all of which are to be delivered via an advanced proprietary platform technology. Reverse Merger with EPOINT Payment Corp. On February 12, 2018, Epoint issued warrants to purchase 1,970,250 shares of common stock to certain partners, associates, and designees of Whitestone Investment Network, Inc., a mergers and acquisition advisory group which was instrumental in introducing the management of Epoint to Genesis, and in structuring the Exchange Agreement. At the closing of the Exchange Agreement on February 15, 2018, Genesis also issued to these entities warrants to purchase up to 1,970,250 shares of its common stock in exchange for an equal number of Epoint common stock warrants. The warrants are exercisable through February 12, 2023 at a per share exercise price of $3.00. At the closing of the Exchange Agreement on February 15, 2018, noteholders of $250,000 in principal amount of convertible loans payable (described in Note 5) voluntarily elected to convert their loans into 100,000 shares of Genesis common stock at a conversion rate of $2.50 per share. Prior to the closing, Genesis was engaged in the business of buying and selling seller financed real estate loans and originating commercial real estate loans and providing start-up funding (the “Prior Business”). In connection with the closings and as mandated by the terms of the Exchange Agreement, Genesis and the Coghlan Family Corporation (the “Coghlan Family Corporation”), an entity controlled by John R. Coghlan, one of the directors and the holder of the majority of the outstanding debt of Genesis prior to the closing, entered into an agreement with Genesis pursuant to which the Coghlan Family Corporation agreed, at a mutually agreeable date after the closings, to assume and otherwise discharge all of Genesis’ outstanding debt, except for a loan of $100,000 payable to Coghlan Family Corporation (the “CFC Loan”), in consideration of the transfer to it by Genesis of the assets related to the Prior Business (the “Purchase and Sale Agreement”). The CFC Loan bears interest at an annual rate of 6% and the maturity date was extended to May 15, 2019. Upon extension of the note in May 2018, Genesis issued to Coghlan Family Corporation 65,000 shares of Common Stock. In accordance with Financial Accounting Standards Board Accounting Standards Codification section 805, “Business Combinations”, Genesis has accounted for the Exchange Agreement transaction as a reverse business combination using the acquisition method. This determination is based on Epoint shareholders obtaining voting control as well as management and Board control of the combined entity. Accordingly, the assets and liabilities and the historical operations that are reflected in these consolidated financial statements are those of Epoint and are recorded at the historical cost basis of Epoint, and the assets and liabilities of Genesis at the merger date were recorded at their fair values. For accounting purposes, Genesis is deemed to have issued 879,765 common shares to the legacy shareholders of Genesis. Using an estimated fair value of common stock on February 15, 2018 of $2.00 per share, the purchase price of the 879,765 shares held by the legacy shareholders of Genesis was approximately $1,759,500. The difference between the fair value of these shares and the recorded fair value of assets acquired and liabilities assumed of Genesis totaling $1,835,684 was allocated to Goodwill. The preliminary fair value estimates for the consideration paid and the assets acquired and liabilities assumed for our acquisition is based on preliminary calculations and valuations and our estimates and assumptions are subject to change as we obtain additional information for our estimates during the measurement period (up to one year from the acquisition date). The primary areas of those preliminary estimates that were not yet finalized related to valuation of goodwill and fair value of common stock. Acquisition of Fintech Henceforth, all references to the “Company” shall mean and include Genesis Financial., Inc. and its subsidiaries, following the closing of the Exchange Agreements.

Liquidity

Liquidity	9 Months Ended
	Sep. 30, 2018
Liquidity
Liquidity	2. LIQUIDITY Historically, the Company has funded its cash and liquidity needs through the issuance of equity, equity-linked or debt securities. The Company has incurred a net loss of $3,952,406 and has an accumulated deficit of $61,653,760 as of and for the nine months ended September 30, 2018. The Company has been dependent on raising capital from debt and equity financings to meet its needs for cash flow used in operating activities. For the nine months ended September 30, 2018, the Company raised $946,090 from financing activities in order to meet cash flow requirements in operating activities. This situation creates uncertainties about the Company’s ability to execute its business plan, finance operations, and indicates substantial doubt about the Company’s ability to continue as a going concern for at least one year from the date these financial statements were issued. At September 30, 2018, the Company had $20,020 of cash on hand with a negative working capital of $3.3 million. The Company’s ability to meet its ongoing operating cash needs is dependent on generating positive cash flow, primarily through raising capital on an immediate basis, and ultimately generating revenue and controlling expenses. During the first quarter of 2018, the Company entered into an eWallet transaction processing services agreement, and began receiving payments that have been recorded as contract liability that will be recognized as revenue once control of these services are transferred to the customer. In addition, subsequent to September 30, 2018 and through November 19, 2018, the Company raised an additional $14,988 in cash through debt offerings (see Note 9, Subsequent Events). However, the Company’s current cash resources are not sufficient to support its operations as presently conducted, pay down maturing debt, or permit it to take advantage of business opportunities that may arise. At December 31, 2018 debt obligations totaling approximately $2.0 million mature and must be repaid. We currently do not have sufficient funds to repay those debt obligations and must secure additional equity or debt capital in order to repay those obligations or obtain additional extensions of maturity, of which no assurance can be provided that we can obtain the needed funding or maturity extension on commercially reasonable terms or at all.

Summary of Significant Accounti

Summary of Significant Accounting and Reporting Policies	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting and Reporting Policies	3. SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Basis of Presentation and Consolidation Use of Estimates Risks and Uncertainties Earnings (Loss) Per Share Revenue Recognition We determine revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, we satisfy a performance obligation Cash and Cash Equivalents Fair Value Measurements - The hierarchy of fair value valuation techniques under U.S. GAAP provides for three levels: Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, generally would require significant management judgment. The three levels for categorizing assets and liabilities under U.S. GAAP’s fair value measurement requirements are as follows: Level 1: Fair value of the asset or liability is determined using unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Fair value of the asset or liability is determined using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Fair value of the asset or liability is determined using unobservable inputs that are significant to the fair value measurement and reflect management’s own assumptions regarding the applicable asset or liability. None of the Company’s assets or liabilities were measured at fair value at September 30, 2018 and December 31, 2017. However, U.S. GAAP requires the disclosure of fair value information about financial instruments that are not measured at fair value. Financial instruments consist principally of accounts payable, accrued liabilities, notes payable, and convertible note payable. The estimated fair value of accounts payable, and accrued liabilities approximates their carrying value due to the short period of time to their maturities. At September 30, 2018 and December 31, 2017, the Company’s notes payable and convertible notes payable are at fixed rates and due to their short-term nature the carrying value approximates fair value. Technology and Equipment - The Company capitalizes certain software development costs incurred in connection with its eWallet and Micro Line of Credit products. Costs incurred in the preliminary stages of development are expensed as incurred. Once a product has reached the application development stage, internal and external costs, if direct and incremental, are capitalized until the product is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality; that is, modifications that enable the software to perform tasks that it previously was incapable of performing. Maintenance costs are expensed as incurred. Goodwill - Impairment of long-lived assets and long-lived assets to be disposed of - Debt Issuance Costs Income Taxes - Income tax positions that meet the “more-likely-than-not” recognition threshold are measured at the largest amount of income tax benefit that is more than 50 percent likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with income tax positions taken that exceeds the amount measured as described above would be reflected as a liability for unrecognized income tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized income tax benefits would be classified as additional income taxes in the accompanying consolidated statements of operations. There were no unrecognized income tax benefits, nor any interest and penalties associated with unrecognized income tax benefits, accrued or expensed at and for the nine months ended September 30, 2018 and 2017. The Company files federal income tax returns in the U.S. and various state income tax returns. The Company is no longer subject to examinations by the related tax authorities for the Company’s U.S. federal and state income tax returns for years prior to 2014. Stock-Based Compensation - Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, which amends guidance on revenue recognition from contracts with customers. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most contract revenue recognition guidance, including industry-specific guidance. In July 2015, FASB deferred by one year the effective dates of its new revenue recognition standard for public and nonpublic entities. In addition, in March 2016, the FASB issued ASU 2016-08, which further clarifies the implementation guidance on principal versus agent considerations contained in ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, to clarify the implementation guidance on identifying performance obligations and licensing. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The adoption on January 1, 2018 of ASU 2014-09 did not have a material effect on the consolidated financial statements as we did not have any contracts with customers prior to January 1, 2018. Recent Accounting Pronouncements - In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842). In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718) – Improvements to Nonemployee Share-Based Payment Accounting, which aligns the accounting for share-based payment awards issued to employees and nonemployees. Under ASU 2018-07, the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. The new standard is effective on January 1, 2019, and early adoption is permitted, including in interim periods, and should be applied to all new awards granted after the date of adoption. The Company is currently assessing the potential impact this ASU will have on our consolidated results of operations, financial position, and cash flows.

Technology and Equipment

Technology and Equipment	9 Months Ended
	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Technology and Equipment	4. TECHNOLOGY AND EQUIPMENT Technology and equipment consists of the following as of September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Software $ 771,024 $ 260,000 Leasehold improvements 9,050 - Computer equipment 30,336 5,106 Total cost 810,410 265,106 Less accumulated depreciation and amortization (378,716 ) (93,217 ) Total technology and equipment, net $ 431,694 $ 171,889

Loans Payable

Loans Payable	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Loans Payable	5. LOANS PAYABLE Loans payable and accrued interest consists of the following as of September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Convertible notes payable issued at a 7.8% debt discount. The notes had a 1-year maturity, due in August 2018. The notes had an automatic mandatory conversion feature upon the closing of an initial public offering or merger with, or acquisition by, a reporting company (the “IPO”) where the principal balance and any accrued interest are converted into equity securities at a price equal to $2.50 per share of the reporting company. If the IPO has not occurred on or before the one-year maturity date, the Company could extend the maturity date an additional 6 months bearing interest at 10.8%. The notes had a voluntary conversion feature where the investor could convert at any time into Series A Common Stock of Epoint at the conversion price of $2.50 per share. As described in Note 1, these notes were converted into common stock of the Company in February 2018. $ - $ 250,000 Convertible note payable bearing interest at 10.0%. The note principal plus accrued interest is due in full in December 2018. The note has an automatic conversion feature upon the closing of an IPO where the principal balance and any accrued interest are converted into equity securities at a price equal to 70% of the price per share sold to the public or, if no shares are sold to public at time of the IPO, 70% of the weighted average five trading day sale price of the shares of the reporting company. The note has a voluntary conversion feature where the investor may convert at any time into common stock of the Company at the conversion price of $2.50 per share. 100,000 100,000 Note payable bearing interest at 6.0%. The note principal plus accrued interest is due in full in May 2019. As described in Note 1, this note was assumed in February 2018 as part of the merger with Epoint. 100,000 - Notes payable bearing interest at 6.0%. The notes have a 6-month maturity where the principal and accrued interest is due in full at various dates in 2018 and 2019. As of September 30, 2018, there were outstanding notes in aggregate principal amount and accrued interest of $1,649,115 where the maturity dates were extended to December 31, 2018 and are accruing additional interest at a 6.0% interest rate. 1,946,091 1,000,000 Total loans payable 2,146,091 1,350,000 Accrued interest 119,609 6,739 Debt issuance costs, net of amortization (403,234 ) (11,806 ) Total loans payable and accrued interest, net $ 1,862,466 $ 1,344,933

Stockholder's Deficit

Stockholder's Deficit	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Stockholder's Deficit	6. STOCKHOLDER’S DEFICIT Series A 8% Cumulative Convertible Preferred Stock Series A Common Stock Common Stock Additional Paid-in Accumulated Total Stockholders’ Shares Amount Shares Amount Shares Amount Capital Deficit Deficit Balance - December 31, 2017 1,190,021 $ 2,943,265 7,041,515 $ - - $ - $ 1,218,490 $ (4,664,721 ) $ (502,966 ) Common shares issued on conversion of convertible notes - - - - 100,000 100 249,900 - 250,000 Issuance of warrants and options as stock-based compensation - - - - - - 953,241 - 953,241 Effect of reverse merger on legacy shareholders of EPOINT Payment Corp. (1,190,021 ) (2,943,265 ) (7,041,515 ) - 8,231,536 8,231 2,935,034 - - Effect of reverse merger on legacy shareholders of Genesis Financial, Inc. - - - - 879,765 880 1,758,620 - 1,759,500 Common shares issued for acquisition of Fintech Holdings, LLC - - - - 26,435,604 26,436 52,844,772 (53,036,634 ) (165,424 ) Common shares issued for note extension - - - - 65,000 65 129,935 - 130,000 Issuance of warrants for note extension - - - - - - 561,100 - 561,100 Net loss - - - - - - - (3,952,406 ) (3,952,406 ) Balance - September 30, 2018 - $ - - $ - 35,711,905 $ 35,712 $ 60,651,093 $ (61,653,760 ) $ (966,955 ) Reverse Merger As discussed in Note 1, Genesis has accounted for the Exchange Agreement transaction as a reverse business combination using the acquisition method. The fair value of the assets acquired and liabilities assumed in the Exchange Agreement are as follows: Purchase price: 879,765 shares of common stock valued at $2.00 per share $ 1,759,500 Assets acquired and liabilities assumed: Cash 14,666 Prepaid expenses and other current assets 25,000 Accounts payable and accrued expenses (15,850 ) Loan payable (100,000 ) Goodwill 1,835,684 $ 1,759,500 Pro Forma Financial Information The following unaudited pro forma consolidated results of operations for the three and nine months ended September 30, 2018 and 2017 assume the reverse business combination was completed on January 1, 2017: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Pro forma revenues $ - $ 5,843 $ - $ 38,998 Pro forma net loss (1,254,042 ) (313,214 ) (3,569,359 ) (799,462 ) Pro forma basic and diluted net loss per share $ (0.04 ) $ (0.01 ) $ (0.12 ) $ (0.02 ) Pro forma data does not purport to be indicative of the results that would have been obtained had these events actually occurred at the beginning of the periods presented and is not intended to be a projection of future results. All share and per share data in the accompanying financial statements and footnotes have been retroactively reflected for the reverse merger. Warrants As discussed in Note 1, at the closing of the Exchange Agreement, Genesis issued to Epoint’s shareholders warrants to purchase up to an additional 845,000 shares of common stock in exchange for an equal number of Epoint common stock warrants. The warrants are exercisable through February 12, 2028 at a per share exercise price of $3.00. Also at the closing of the Exchange Agreement, Genesis issued warrants to purchase up to 1,970,250 shares of its common stock in exchange for an equal number of Epoint common stock warrants. The warrants are exercisable through February 12, 2023 at a per share exercise price of $3.00. The estimated fair value of the warrants of $776,397 was expensed in full at issuance. On August 22, 2018, Genesis issued a total of 1,550,000 warrants to certain noteholders as a material inducement for them to extend the maturity date of their notes to December 31, 2018. The warrants are exercisable through August 22, 2021 at a per share exercise price of $1.00. The estimated fair value of the warrants of $561,100 was recorded as debt issuance cost and will be amortized to interest expense over the extended maturity period of the notes, with $187,033 recorded in the three months ended September 30, 2018. The estimated fair value of the warrants at issuance was based on a combination of management’s best estimate of the share price, and the Black-Scholes option-pricing model using the weighted-average assumptions below: Volatility 50 % Risk-free interest rate 2.44 % Expected term (in years) 2.72 Expected dividend yield - Fair value of warrant $ 0.38 A summary of activity in warrants is as follows: Weighted Weighted Average Average Remaining Exercise Warrants Life Price Outstanding at December 31, 2017 845,000 2.5 years $ 3.00 Nine months ended September 30, 2018: Granted 4,365,250 5.3 years $ 2.29 Exercised - - $ - Exchanged (845,000 ) 2.5 years $ 3.00 Outstanding at September 30, 2018 4,365,250 4.8 years $ 2.29 Conversion of Debt As discussed in Note 1, at the closing of the Exchange Agreement on February 15, 2018, noteholders of $250,000 of convertible loans payable (described in Note 5) voluntarily elected to convert their loans into 100,000 shares of Genesis common stock at a conversion rate of $2.50 per share. Purchase and Sale Agreement As discussed in Note 1, in connection with the closings and as mandated by the terms of the Exchange Agreement, Genesis and the Coghlan Family Corporation, an entity controlled by John R. Coghlan, one of the directors and the holder of the majority of the outstanding debt of Genesis prior to the closings, entered into the Purchase and Sale Agreement with Genesis pursuant to which the Coghlan Family Corporation agreed, at a mutually agreeable date after the closings, to assume and otherwise discharge all of Genesis’ outstanding debt, except for the CFC Loan, in consideration of the transfer to it by Genesis of the assets related to the Prior Business. The summary of the sale of assets and discharge of liabilities under the Purchase and Sale Agreement are as follows, and is not included in these consolidated financial statements as the transaction occurred in connection with the closing of the reverse merger with Epoint and amounts in these consolidated financial statements prior to the reverse merger relate to Epoint operations only: Cash and cash equivalents $ 4,786 Investments in real estate limited liability companies 103,584 Loans held for sale 285,919 Long-term investment 212,619 Real estate leasehold interest, net 93,000 Technology and equipment, net 511 Total assets sold $ 700,419 Line of credit, affiliated company $ (690,419 ) Other current liabilities (10,000 ) Total liabilities discharged $ (700,419 ) Fintech Exchange Agreement As discussed in Note 1, immediately following the closing of the Exchange Agreement, on February 15, 2018, Genesis and Fintech LLC signed and closed the Fintech Exchange Agreement pursuant to which Genesis issued to the members of Fintech LLC an aggregate of 26,435,604 shares of Parent Common Stock. As described more fully in Note 1, the assets and liabilities of Fintech LLC and Fintech Investments have been recorded at their historical cost basis at the merger date, and are included in the Company’s consolidated financial statements. The assets acquired and liabilities assumed in the Fintech Exchange Agreement are as follows: Purchase price: 26,435,604 shares of common stock valued at $2.00 per share $ 52,871,210 Assets acquired and liabilities assumed: Cash 25,687 Technology and equipment, net 240,625 Accounts payable and accrued expenses (431,736 ) (165,424 ) Accumulated deficit impact 53,036,634 $ 52,871,210 Issuance of Common Stock In May 2018, the Company issued 65,000 shares of its common stock to a lender under a loan extension agreement. The fair value of the 65,000 shares of common stock amounting to $130,000 was recorded as a debt issuance cost to be amortized over the revised term of the note payable. Stock-Based Compensation The Company also issues, from time to time, options which are not issued under or subject to a formal option plan. At September 30, 2018, there were 1,900,000 options outstanding that were not issued under a formal option plan. A summary of all stock option activity at and for the nine months ended September 30, 2018 is presented below: Weighted Average # of Exercise Options Price Outstanding at December 31, 2017 - $ - Nine months ended September 30, 2018: Granted 1,900,000 $ 3.09 Exercised - - Canceled - - Outstanding at September 30, 2018 1,900,000 $ 3.09 At September 30, 2018, there were 1,668,750 unvested options with a weighted average exercise price of $3.09. The unvested options will vest in accordance with the vesting schedule in each respective option agreement, which is two years from the grant date. The aggregate intrinsic value of options outstanding and options exercisable at September 30, 2018 was $Nil. During the nine months ended September 30, 2018, 231,250 options became vested. The Company uses the Black-Scholes valuation model to measure the grant-date fair value of stock options. The calculation includes several assumptions that require management’s judgment. The expected term of the options is calculated using the simplified method described in GAAP. The simplified method defines the expected term as the average of the contractual term and the vesting period. Estimated volatility is derived from volatility calculated using historical closing prices of common shares of similar entities whose share prices are publicly available for the expected term of the options. The risk-free interest rate is based on the U.S. Treasury constant maturities in effect at the time of grant for the expected term of the options. The following weighted average assumptions were used in the Black-Scholes valuation model for options granted during the nine months ended September 30, 2018: Risk-free interest rate 3.01 % Expected term (in years) 6.0 Dividend yield - Expected volatility 50 % The weighted average grant date fair value per share of stock options granted during the nine months ended September 30, 2018 was $0.75. The aggregate grant date fair value of the 1,900,000 options granted during the nine months ended September 30, 2018 was $1,423,000. For the nine months ended September 30, 2018 and 2017, total stock option expense related to stock options was $176,844 and $Nil, respectively. At September 30, 2018, the total compensation cost related to stock options not yet recognized is approximately $1,246,156, which is expected to be recognized over a weighted average period of approximately 1.76 years.

Related-Party Transactions

Related-Party Transactions	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
Related-Party Transactions	7. RELATED-PARTY TRANSACTIONS (i) Commencing August 2015, Epoint contracted Fintech Investments to provide development and distribution support services for the Company’s eWallet and Micro Line of Credit (“MLOC”) platforms. Fintech holds the underlying intellectual property pertaining to the Company technology platforms, including the eWallet and MLOC platforms. Gary Larkin, the Founder, Chairman and Chief Executive Officer of Epoint, is also the sole shareholder, Founder, Chairman and Chief Executive Officer of Fintech. Epoint made payments to Fintech of $40,000 and $85,582 in the nine months ended September 30, 2018 and 2017, respectively, and such payments are included in Technologies and telecomm expenses on the Consolidated Statements of Operations. (ii) Since July 2015, Epoint, the Company’s wholly owned subsidiary, contracted 3rd Rock Communications, Inc. (“3rd Rock”) to provide bookkeeping and general administrative services. 3rd Rock is a Delaware corporation wholly-owned by Gary Larkin, the Founder, Chairman and Chief Executive Officer of Epoint, and his spouse. Epoint made payments to 3rd Rock of $9,000 and $27,000 in the nine months ended September 30, 2018 and 2017, respectively, and such payments are included in Professional services expenses on the Consolidated Statements of Operations. (iii) In a prior year, Fintech entered into a license agreement with 3rd Rock to acquire global license rights to certain intellectual property licensed to 3rd Rock by Cash America Holdings, Inc. and Enova Financial, LLC, for the exploitation of a micro-credit program. Under this agreement, Fintech has committed to pay to 3rd Rock a gross sum of $500,000 periodically through September 2018 and, has to date, made scheduled payments to 3rd Rock in the amount of $75,000. The intellectual property is included in Technology and equipment, and the payable of $425,000 as of September 30, 2018 to 3rd Rock is included in Accounts payable and accrued expenses on the Consolidated Balance Sheet. (iv) In connection with $135,000 in aggregate principal amount of the notes payable bearing interest at 6% referred to in Note 5 above (Notes Payable) issued by the Company’s subsidiary Epoint Payment Corp (“Epoint”) in May-June 2018, Debit Plus LLC, (“DP”) the Company’s largest stockholder and under management and control of Gary Larkin, the Company’s Executive Co-Chairman and Roy Rose, the Company’s Chief Executive Officer and Executive Co-Chairman, entered into an agreement with such noteholders pursuant to which such noteholders were granted an option, exercisable by it on or before the earlier of 30 days prior to the maturity of such note or December 31, 2018, to exchange their note for a specified number of shares of the Company’s common stock held by DP. Epoint agreed to the assignment of the notes to DP. (v) In connection with $100,000 in aggregate principal amount of the notes payable (the “Note”) bearing interest at 6% referred to in Note 5 above (Notes Payable) issued by the Company’s subsidiary Epoint Payment Corp (“Epoint”) on June 14, 2018 to Roy Rose (“Lender”), the Company’s Chief Executive Officer and Executive Co-Chairman, the Company entered into an Asset Exchange Option Agreement with the Lender where it pledged a $100,000 deposit (classified in Other assets on the Balance Sheet) (the “Asset”) as collateral against the note. The Asset may be exchanged for full satisfaction of the Note by mutual agreement of the Company and Lender at any time prior to the maturity date of the Note. In the event of default on the Note, the Lender may exercise the Option at his discretion, and in doing so will have the full support of the Company to affect the exchange in a timely manner while working within the terms and conditions of the Asset.

Planned Acquisition Of Smartpay

Planned Acquisition Of Smartpay Leasing, LLC	9 Months Ended
	Sep. 30, 2018
Business Combination, Step Acquisition [Abstract]
Planned Acquisition Of Smartpay Leasing, LLC	8. PLANNED ACQUISITION OF SMARTPAY LEASING, LLC On February 15, 2018, Epoint entered into a Membership Interest Purchase Agreement (the “SmartPay MIPA”) with WNLI Holdings, Inc., a corporation organized under the laws of the State of Ohio (“Seller”), and SmartPay Leasing LLC, a limited liability company organized under the laws of the State of Delaware (“SmartPay”), pursuant to which Epoint agreed to purchase from the Seller all of the outstanding membership interests of SmartPay for consideration of $48.5 million in cash and the assumption by Epoint of certain specified liabilities of SmartPay. Epoint assigned all of its rights under the agreement to Genesis on March 7, 2018. The Company paid an initial $100,000 deposit in March 2018. The closing of the transactions contemplated under the SmartPay MIPA was subject to customary closing conditions, including the raising by Genesis of approximately $60 million to cover the purchase price, related costs and continuing operations. The SmartPay MIPA provided for certain termination rights of the parties, including termination by a party if the closing does not occur on or before July 15, 2018. In addition, the Seller may have terminated the agreement if the parties did not reach agreement on or before June 1, 2018 with respect to the retention of certain SmartPay employees and by June 15, 2018, if the Company did not either deliver to the Seller a firm financing commitment for an amount sufficient to fund the purchase price or did not remit to the Seller $100,000 on account of the purchase price. The Company made the $100,000 payment in June 2018. On July 15, 2018, the SmartPay MIPA with the Seller to acquire SmartPay Leasing LLC terminated as the closing conditions were not satisfied and no extension of the termination date was obtained. As a result, Genesis recorded a $200,000 loss of deposits on planned acquisition of SmartPay Leasing, LLC in the consolidated statements of operations for the three months ended September 30, 2018.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	9. SUBSEQUENT EVENTS Subsequent to September 30, 2018 through November 19, 2018, the Company raised an additional $14,988 in cash through a series of notes payable bearing interest at 6.0%. The notes have a 6-month maturity.

Summary of Significant Accoun_2

Summary of Significant Accounting and Reporting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation
Use of Estimates	Use of Estimates
Risks and Uncertainties	Risks and Uncertainties
Earnings (Loss) Per Share	Earnings (Loss) Per Share
Revenue Recognition	Revenue Recognition We determine revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, we satisfy a performance obligation
Cash and Cash Equivalents	Cash and Cash Equivalents
Fair Value Measurements	Fair Value Measurements - The hierarchy of fair value valuation techniques under U.S. GAAP provides for three levels: Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, generally would require significant management judgment. The three levels for categorizing assets and liabilities under U.S. GAAP’s fair value measurement requirements are as follows: Level 1: Fair value of the asset or liability is determined using unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Fair value of the asset or liability is determined using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Fair value of the asset or liability is determined using unobservable inputs that are significant to the fair value measurement and reflect management’s own assumptions regarding the applicable asset or liability. None of the Company’s assets or liabilities were measured at fair value at September 30, 2018 and December 31, 2017. However, U.S. GAAP requires the disclosure of fair value information about financial instruments that are not measured at fair value. Financial instruments consist principally of accounts payable, accrued liabilities, notes payable, and convertible note payable. The estimated fair value of accounts payable, and accrued liabilities approximates their carrying value due to the short period of time to their maturities. At September 30, 2018 and December 31, 2017, the Company’s notes payable and convertible notes payable are at fixed rates and due to their short-term nature the carrying value approximates fair value.
Technology and Equipment	Technology and Equipment - The Company capitalizes certain software development costs incurred in connection with its eWallet and Micro Line of Credit products. Costs incurred in the preliminary stages of development are expensed as incurred. Once a product has reached the application development stage, internal and external costs, if direct and incremental, are capitalized until the product is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality; that is, modifications that enable the software to perform tasks that it previously was incapable of performing. Maintenance costs are expensed as incurred.
Goodwill	Goodwill -
Impairment of Long-lived Assets and Long-lived Assets to be Disposed of	Impairment of long-lived assets and long-lived assets to be disposed of -
Debt Issuance Costs	Debt Issuance Costs
Income Taxes	Income Taxes - Income tax positions that meet the “more-likely-than-not” recognition threshold are measured at the largest amount of income tax benefit that is more than 50 percent likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with income tax positions taken that exceeds the amount measured as described above would be reflected as a liability for unrecognized income tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized income tax benefits would be classified as additional income taxes in the accompanying consolidated statements of operations. There were no unrecognized income tax benefits, nor any interest and penalties associated with unrecognized income tax benefits, accrued or expensed at and for the nine months ended September 30, 2018 and 2017. The Company files federal income tax returns in the U.S. and various state income tax returns. The Company is no longer subject to examinations by the related tax authorities for the Company’s U.S. federal and state income tax returns for years prior to 2014.
Stock-Based Compensation	Stock-Based Compensation -
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, which amends guidance on revenue recognition from contracts with customers. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most contract revenue recognition guidance, including industry-specific guidance. In July 2015, FASB deferred by one year the effective dates of its new revenue recognition standard for public and nonpublic entities. In addition, in March 2016, the FASB issued ASU 2016-08, which further clarifies the implementation guidance on principal versus agent considerations contained in ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, to clarify the implementation guidance on identifying performance obligations and licensing. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The adoption on January 1, 2018 of ASU 2014-09 did not have a material effect on the consolidated financial statements as we did not have any contracts with customers prior to January 1, 2018.
Recent Accounting Pronouncements	Recent Accounting Pronouncements - In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842). In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718) – Improvements to Nonemployee Share-Based Payment Accounting, which aligns the accounting for share-based payment awards issued to employees and nonemployees. Under ASU 2018-07, the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. The new standard is effective on January 1, 2019, and early adoption is permitted, including in interim periods, and should be applied to all new awards granted after the date of adoption. The Company is currently assessing the potential impact this ASU will have on our consolidated results of operations, financial position, and cash flows.

Technology and Equipment (Table

Technology and Equipment (Tables)	9 Months Ended
	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Schedule of Technology and Equipment	Technology and equipment consists of the following as of September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Software $ 771,024 $ 260,000 Leasehold improvements 9,050 - Computer equipment 30,336 5,106 Total cost 810,410 265,106 Less accumulated depreciation and amortization (378,716 ) (93,217 ) Total technology and equipment, net $ 431,694 $ 171,889

Loans Payable (Tables)

Loans Payable (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Schedule of Loans Payable and Accrued Interest	Loans payable and accrued interest consists of the following as of September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Convertible notes payable issued at a 7.8% debt discount. The notes had a 1-year maturity, due in August 2018. The notes had an automatic mandatory conversion feature upon the closing of an initial public offering or merger with, or acquisition by, a reporting company (the “IPO”) where the principal balance and any accrued interest are converted into equity securities at a price equal to $2.50 per share of the reporting company. If the IPO has not occurred on or before the one-year maturity date, the Company could extend the maturity date an additional 6 months bearing interest at 10.8%. The notes had a voluntary conversion feature where the investor could convert at any time into Series A Common Stock of Epoint at the conversion price of $2.50 per share. As described in Note 1, these notes were converted into common stock of the Company in February 2018. $ - $ 250,000 Convertible note payable bearing interest at 10.0%. The note principal plus accrued interest is due in full in December 2018. The note has an automatic conversion feature upon the closing of an IPO where the principal balance and any accrued interest are converted into equity securities at a price equal to 70% of the price per share sold to the public or, if no shares are sold to public at time of the IPO, 70% of the weighted average five trading day sale price of the shares of the reporting company. The note has a voluntary conversion feature where the investor may convert at any time into common stock of the Company at the conversion price of $2.50 per share. 100,000 100,000 Note payable bearing interest at 6.0%. The note principal plus accrued interest is due in full in May 2019. As described in Note 1, this note was assumed in February 2018 as part of the merger with Epoint. 100,000 - Notes payable bearing interest at 6.0%. The notes have a 6-month maturity where the principal and accrued interest is due in full at various dates in 2018 and 2019. As of September 30, 2018, there were outstanding notes in aggregate principal amount and accrued interest of $1,649,115 where the maturity dates were extended to December 31, 2018 and are accruing additional interest at a 6.0% interest rate. 1,946,091 1,000,000 Total loans payable 2,146,091 1,350,000 Accrued interest 119,609 6,739 Debt issuance costs, net of amortization (403,234 ) (11,806 ) Total loans payable and accrued interest, net $ 1,862,466 $ 1,344,933

Stockholder's Deficit (Tables)

Stockholder's Deficit (Tables)	9 Months Ended
	Sep. 30, 2018
Schedule of Stockholder's Deficit	Series A 8% Cumulative Convertible Preferred Stock Series A Common Stock Common Stock Additional Paid-in Accumulated Total Stockholders’ Shares Amount Shares Amount Shares Amount Capital Deficit Deficit Balance - December 31, 2017 1,190,021 $ 2,943,265 7,041,515 $ - - $ - $ 1,218,490 $ (4,664,721 ) $ (502,966 ) Common shares issued on conversion of convertible notes - - - - 100,000 100 249,900 - 250,000 Issuance of warrants and options as stock-based compensation - - - - - - 953,241 - 953,241 Effect of reverse merger on legacy shareholders of EPOINT Payment Corp. (1,190,021 ) (2,943,265 ) (7,041,515 ) - 8,231,536 8,231 2,935,034 - - Effect of reverse merger on legacy shareholders of Genesis Financial, Inc. - - - - 879,765 880 1,758,620 - 1,759,500 Common shares issued for acquisition of Fintech Holdings, LLC - - - - 26,435,604 26,436 52,844,772 (53,036,634 ) (165,424 ) Common shares issued for note extension - - - - 65,000 65 129,935 - 130,000 Issuance of warrants for note extension - - - - - - 561,100 - 561,100 Net loss - - - - - - - (3,952,406 ) (3,952,406 ) Balance - September 30, 2018 - $ - - $ - 35,711,905 $ 35,712 $ 60,651,093 $ (61,653,760 ) $ (966,955 )
Schedule of Assets Acquired and Liabilities Assumed	The fair value of the assets acquired and liabilities assumed in the Exchange Agreement are as follows: Purchase price: 879,765 shares of common stock valued at $2.00 per share $ 1,759,500 Assets acquired and liabilities assumed: Cash 14,666 Prepaid expenses and other current assets 25,000 Accounts payable and accrued expenses (15,850 ) Loan payable (100,000 ) Goodwill 1,835,684 $ 1,759,500
Schedule of Business Combination Proforma Information	The following unaudited pro forma consolidated results of operations for the three and nine months ended September 30, 2018 and 2017 assume the reverse business combination was completed on January 1, 2017: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Pro forma revenues $ - $ 5,843 $ - $ 38,998 Pro forma net loss (1,254,042 ) (313,214 ) (3,569,359 ) (799,462 ) Pro forma basic and diluted net loss per share $ (0.04 ) $ (0.01 ) $ (0.12 ) $ (0.02 )
Schedule of Black-Scholes Pricing Model Using the Weighted-average Assumptions	The estimated fair value of the warrants at issuance was based on a combination of management’s best estimate of the share price, and the Black-Scholes option-pricing model using the weighted-average assumptions below: Volatility 50 % Risk-free interest rate 2.44 % Expected term (in years) 2.72 Expected dividend yield - Fair value of warrant $ 0.38 The following weighted average assumptions were used in the Black-Scholes valuation model for options granted during the nine months ended September 30, 2018: Risk-free interest rate 3.01 % Expected term (in years) 6.0 Dividend yield - Expected volatility 50 %
Summary of Activity in Warrants	A summary of activity in warrants is as follows: Weighted Weighted Average Average Remaining Exercise Warrants Life Price Outstanding at December 31, 2017 845,000 2.5 years $ 3.00 Nine months ended September 30, 2018: Granted 4,365,250 5.3 years $ 2.29 Exercised - - $ - Exchanged (845,000 ) 2.5 years $ 3.00 Outstanding at September 30, 2018 4,365,250 4.8 years $ 2.29
Summary of Sale of Assets and Discharge of Liabilities	The summary of the sale of assets and discharge of liabilities under the Purchase and Sale Agreement are as follows, and is not included in these consolidated financial statements as the transaction occurred in connection with the closing of the reverse merger with Epoint and amounts in these consolidated financial statements prior to the reverse merger relate to Epoint operations only: Cash and cash equivalents $ 4,786 Investments in real estate limited liability companies 103,584 Loans held for sale 285,919 Long-term investment 212,619 Real estate leasehold interest, net 93,000 Technology and equipment, net 511 Total assets sold $ 700,419 Line of credit, affiliated company $ (690,419 ) Other current liabilities (10,000 ) Total liabilities discharged $ (700,419 )
Share-based Compensation, Stock Options, Activity	A summary of all stock option activity at and for the nine months ended September 30, 2018 is presented below: Weighted Average # of Exercise Options Price Outstanding at December 31, 2017 - $ - Nine months ended September 30, 2018: Granted 1,900,000 $ 3.09 Exercised - - Canceled - - Outstanding at September 30, 2018 1,900,000 $ 3.09
Fintech Exchange Agreement [Member]
Schedule of Assets Acquired and Liabilities Assumed	The assets acquired and liabilities assumed in the Fintech Exchange Agreement are as follows: Purchase price: 26,435,604 shares of common stock valued at $2.00 per share $ 52,871,210 Assets acquired and liabilities assumed: Cash 25,687 Technology and equipment, net 240,625 Accounts payable and accrued expenses (431,736 ) (165,424 ) Accumulated deficit impact 53,036,634 $ 52,871,210

Background (Details Narrative)

Background (Details Narrative) - USD ($)	Feb. 15, 2018	Sep. 30, 2018	Aug. 22, 2018	Jun. 14, 2018	Feb. 12, 2018	Dec. 31, 2017
Warrants to purchase shares of common stock			1,550,000
Warrants exercise price		$ 3.09	$ 1
Loan payable		$ 1,862,466				$ 1,344,933
Epoint Payment Corp [Member]
Debt interest rate		6.00%		6.00%
Capital Stock Exchange Agreement [Member]
Number of common shares issued during period	26,435,604
Warrants to purchase shares of common stock	1,970,250
Number of common shares issued for conversion of stock, value	$ 250,000
Number of common shares issued for conversion of stock	100,000
Conversion price per share	$ 2.50
Fair value of assets acquired and liabilities assumed	$ 1,835,684
Capital Stock Exchange Agreement [Member] | Legacy Shareholders of Genesis [Member]
Number of common shares issued during period	879,765
Shares issued, price per share	$ 2
Number of common shares issued during period, value	$ 1,759,500
Capital Stock Exchange Agreement [Member] | February 12, 2023 [Member]
Warrants exercise price	$ 3
Capital Stock Exchange Agreement [Member] | Epoint Payment Corp [Member]
Acquired percentage	100.00%
Number of common shares issued during period	8,231,536
Warrants to purchase shares of common stock	845,000				1,970,250
Capital Stock Exchange Agreement [Member] | Epoint Payment Corp [Member] | February 12, 2028 [Member]
Warrants exercise price	$ 3
Capital Stock Exchange Agreement [Member] | Coghlan Family Corporation [Member]
Number of common shares issued during period	65,000
Loan payable	$ 100,000
Debt maturity date	May 15, 2019
Debt interest rate	6.00%

Liquidity (Details Narrative)

Liquidity (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Net loss	$ 1,254,042	$ 225,798	$ 3,952,406	$ 492,072
Accumulated deficit	61,653,760		61,653,760		$ 4,664,721
Net cash provided by financing activities			946,090	$ 330,500
Cash	20,020		20,020
Working capital			3,300,000
Through November 14, 2018 [Member]
Notes payable	14,988		14,988
December 31, 2018 [Member]
Debt obligations	$ 2,000,000		$ 2,000,000

Summary of Significant Accoun_3

Summary of Significant Accounting and Reporting Policies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Stock option to purchase a common stock	1,900,000		1,900,000
Impairment loss
Net debt issuance costs	$ 403,234		$ 403,234		$ 11,806
Income tax examination, likelihood of unfavorable settlement			The largest amount of income tax benefit that is more than 50 percent
Unrecognized income tax benefits
Stock-based compensation			$ 953,241
Warrants [Member]
Antidilutive securities excluded from computation of net income, per outstanding unit, amount	$ 4,365,250		$ 4,365,250
Common Stock [Member]
Antidilutive securities excluded from computation of net income, per outstanding unit, amount	$ 42,267	$ 42,267	$ 42,267	$ 42,267

Technology and Equipment - Sche

Technology and Equipment - Schedule of Technology and Equipment (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Total cost	$ 810,410	$ 265,106
Less accumulated depreciation and amortization	(378,716)	(93,217)
Total technology and equipment, net	431,694	171,889
Software [Member]
Total cost	771,024	260,000
Leasehold Improvements [Member]
Total cost	9,050
Computer Equipment [Member]
Total cost	$ 30,336	$ 5,106

Loans Payable - Schedule of Loa

Loans Payable - Schedule of Loans Payable and Accrued Interest (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Total loans payable	$ 2,146,091	$ 1,350,000
Accrued interest	119,609	6,739
Debt issuance costs, net of amortization	(403,234)	(11,806)
Total loans payable and accrued interest, net	1,862,466	1,344,933
Loan Payable One [Member]
Total loans payable		250,000
Loan Payable Two [Member]
Total loans payable	100,000	100,000
Loan Payable Three [Member]
Total loans payable	100,000
Loan Payable Four [Member]
Total loans payable	$ 1,946,091	$ 1,000,000

Loans Payable - Schedule of L_2

Loans Payable - Schedule of Loans Payable and Accrued Interest (Details) (Parenthetical) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Loan Payable One [Member]
Percentage of convertible notes payable issued at debt discount		7.80%
Debt maturity term		1 year
Due date		Aug. 31, 2018
Conversion price price per share		$ 2.50
Interest rate		10.80%
Loan Payable Two [Member]
Percentage of convertible notes payable issued at debt discount	10.00%	10.00%
Due date	Dec. 31, 2018	Dec. 31, 2018
Conversion price price per share	$ 2.50	$ 2.50
Equity securities description	The note has an automatic conversion feature upon the closing of an IPO where the principal balance and any accrued interest are converted into equity securities at a price equal to 70% of the price per share sold to the public or, if no shares are sold to public at time of the IPO, 70% of the weighted average five trading day sale price of the shares of the reporting company.	The note has an automatic conversion feature upon the closing of an IPO where the principal balance and any accrued interest are converted into equity securities at a price equal to 70% of the price per share sold to the public or, if no shares are sold to public at time of the IPO, 70% of the weighted average five trading day sale price of the shares of the reporting company.
Loan Payable Three [Member]
Percentage of convertible notes payable issued at debt discount	6.00%
Due date	May 31, 2019
Loan Payable Four [Member]
Percentage of convertible notes payable issued at debt discount	6.00%	6.00%
Debt maturity term	6 months	6 months
Due date		Dec. 31, 2018
Aggregate principal amount and accrued interest	$ 1,649,115

Stockholder's Deficit (Details

Stockholder's Deficit (Details Narrative) - USD ($)	Aug. 22, 2018	May 31, 2018	Feb. 15, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Warrants to purchase of common stock	1,550,000
Warrants exercisable date	Aug. 22, 2021
Warrant exercise price	$ 1			$ 3.09		$ 3.09
Fair value of warrants issuance	$ 561,100					$ 776,397
Interest expenses				$ 255,340	$ 3,421	412,543	$ 3,421
Loan payable				$ 1,862,466		$ 1,862,466		$ 1,344,933
Stock option to issue a common stock				1,900,000		1,900,000
Share based compensation of stock option unvested				1,668,750		1,668,750
Compensation cost related to stock option not yet recognized						$ 1,398,250
Share based compensation of weighted-average period						1 year 9 months 3 days
Share based compensation of stock option vested						231,250
Aggregate intrinsic value of options outstanding
Exchange Agreement [Member]
Loan payable			$ 250,000
Conversion price price per share			$ 2.50
Debt converted into shares			$ 100,000
Fintech Exchange Agreement [Member]
Aggregate shares issued to shareholders			26,435,604
Number of common shares issued during period			26,435,604
Loan Extension Agreement [Member]
Number of common shares issued during period		65,000
Number of common shares issued during period value		$ 130,000
Stock Option [Member]
Stock option granted during period						1,900,000
Proceeds from issuance od stock option						$ 231,250
Share based compensation grant aggregate fair value						$ 1,423,000
Weighted-average grant-date fair value per share of stock options						$ 0.75
Stock option expenses						$ 176,844
Warrants [Member]
Interest expenses				$ 187,033
Epoint Payment Corp [Member] | Warrants [Member]
Warrants to purchase of common stock				845,000		845,000
Warrants exercisable date						Feb. 12, 2028
Warrant exercise price				$ 3		$ 3
Epoint Payment Corp [Member] | Warrants One [Member]
Warrants to purchase of common stock				1,970,250		1,970,250
Warrants exercisable date						Feb. 12, 2023
Warrant exercise price				$ 3		$ 3

Stockholder's Deficit - Schedul

Stockholder's Deficit - Schedule of Stockholder's Deficit (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Series A 8% Cumulative Convertible Preferred Stock [Member]
Balance			$ 2,943,265
Balance, shares			1,190,021
Common shares issued on conversion of convertible notes
Common shares issued on conversion of convertible notes, shares
Issuance of warrants and options as stock-based compensation
Effect of reverse merger on legacy shareholders of EPOINT Payment Corp.			$ (2,943,265)
Effect of reverse merger on legacy shareholders of EPOINT Payment Corp.			(1,190,021)
Effect of reverse merger on legacy shareholders of Genesis Financial, Inc.
Effect of reverse merger on legacy shareholders of Genesis Financial, Inc., shares
Common shares issued for acquisition of Fintech Holdings, LLC
Common shares issued for acquisition of Fintech Holdings, LLC, shares
Common shares issued for note extension
Common shares issued for note extension, shares
Net loss
Balance
Balance, shares
Series A Common Stock [Member]
Balance
Balance, shares			7,041,515
Common shares issued on conversion of convertible notes
Common shares issued on conversion of convertible notes, shares
Issuance of warrants and options as stock-based compensation
Effect of reverse merger on legacy shareholders of EPOINT Payment Corp.
Effect of reverse merger on legacy shareholders of EPOINT Payment Corp.			(7,041,515)
Effect of reverse merger on legacy shareholders of Genesis Financial, Inc.
Effect of reverse merger on legacy shareholders of Genesis Financial, Inc., shares
Common shares issued for acquisition of Fintech Holdings, LLC
Common shares issued for acquisition of Fintech Holdings, LLC, shares
Common shares issued for note extension
Common shares issued for note extension, shares
Net loss
Balance
Balance, shares
Common Stock [Member]
Balance
Balance, shares
Common shares issued on conversion of convertible notes			$ 100
Common shares issued on conversion of convertible notes, shares			100,000
Issuance of warrants and options as stock-based compensation
Effect of reverse merger on legacy shareholders of EPOINT Payment Corp.			$ 8,231
Effect of reverse merger on legacy shareholders of EPOINT Payment Corp.			8,231,536
Effect of reverse merger on legacy shareholders of Genesis Financial, Inc.			$ 880
Effect of reverse merger on legacy shareholders of Genesis Financial, Inc., shares			879,765
Common shares issued for acquisition of Fintech Holdings, LLC			$ 26,436
Common shares issued for acquisition of Fintech Holdings, LLC, shares			26,435,604
Common shares issued for note extension			$ 65
Common shares issued for note extension, shares			65,000
Net loss
Balance	$ 35,712		$ 35,712
Balance, shares	35,711,905		35,711,905
Additional Paid-in Capital [Member]
Balance			$ 1,218,490
Common shares issued on conversion of convertible notes			249,900
Issuance of warrants and options as stock-based compensation			953,241
Effect of reverse merger on legacy shareholders of EPOINT Payment Corp.			2,935,034
Effect of reverse merger on legacy shareholders of Genesis Financial, Inc.			1,758,620
Common shares issued for acquisition of Fintech Holdings, LLC			52,844,772
Common shares issued for note extension			129,935
Issuance of warrants for note extension			561,100
Net loss
Balance	$ 60,651,093		60,651,093
Accumulated Deficit [Member]
Balance			(4,664,721)
Common shares issued on conversion of convertible notes
Issuance of warrants and options as stock-based compensation
Effect of reverse merger on legacy shareholders of EPOINT Payment Corp.
Effect of reverse merger on legacy shareholders of Genesis Financial, Inc.
Common shares issued for acquisition of Fintech Holdings, LLC			(53,036,634)
Common shares issued for note extension
Net loss			(3,952,406)
Balance	(61,653,760)		(61,653,760)
Balance			(502,966)
Common shares issued on conversion of convertible notes			250,000
Issuance of warrants and options as stock-based compensation			953,241
Effect of reverse merger on legacy shareholders of EPOINT Payment Corp.
Effect of reverse merger on legacy shareholders of Genesis Financial, Inc.			1,759,500
Common shares issued for acquisition of Fintech Holdings, LLC			(165,424)
Common shares issued for note extension			130,000
Issuance of warrants for note extension			561,100
Net loss	(1,254,042)	$ (225,798)	(3,952,406)	$ (492,072)
Balance	$ (966,955)		$ (966,955)

Stockholder's Deficit - Sched_2

Stockholder's Deficit - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($)	Feb. 15, 2018	Sep. 30, 2018	Dec. 31, 2017
Goodwill		$ 1,835,684
Reverse Merger [Member]
Shares of common stock value	$ 1,759,500
Cash	14,666
Prepaid expenses and other current assets	25,000
Accounts payable and accrued expenses	(15,850)
Loan payable	(100,000)
Goodwill	1,835,684
Total	1,759,500
Fintech Exchange Agreement [Member]
Shares of common stock value	52,871,210
Cash	25,687
Accounts payable and accrued expenses	(431,736)
Technology and equipment, net	240,625
Assets acquired and liabilities assumed, gross	(165,424)
Accumulated deficit impact	53,036,634
Total	$ 52,871,210

Stockholder's Deficit - Sched_3

Stockholder's Deficit - Schedule of Assets Acquired and Liabilities Assumed (Details) (Parenthetical)	Feb. 15, 2018$ / sharesshares
Reverse Merger [Member]
Number of shares deemed issued to legacy shareholders | shares	879,765
Fair value of common stock per share | $ / shares	$ 2
Fintech Exchange Agreement [Member]
Number of shares deemed issued to legacy shareholders | shares	26,435,604
Fair value of common stock per share | $ / shares	$ 2

Stockholder's Deficit - Sched_4

Stockholder's Deficit - Schedule of Business Combination Proforma Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Equity [Abstract]
Pro forma revenues		$ 5,843		$ 38,998
Pro forma net loss	$ (1,254,042)	$ (313,214)	$ (3,569,359)	$ (799,462)
Pro forma basic and diluted net loss per share	$ (0.04)	$ (0.01)	$ (0.12)	$ (0.02)

Stockholder's Deficit - Sched_5

Stockholder's Deficit - Schedule of Black-Scholes Pricing Model Using the Weighted-average Assumptions (Details)	9 Months Ended
	Sep. 30, 2018$ / shares
Volatility	50.00%
Risk-free interest rate	3.01%
Expected term (in years)	6 years
Expected dividend yield	0.00%
Fair value of warrant	$ 50
Warrants [Member]
Volatility	50.00%
Risk-free interest rate	2.44%
Expected term (in years)	2 years 8 months 19 days
Expected dividend yield	0.00%
Fair value of warrant	$ 0.38

Stockholder's Deficit - Summary

Stockholder's Deficit - Summary of Activity in Warrants (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Equity [Abstract]
Number of Warrants Outstanding beginning balance, shares	845,000
Granted, shares	4,365,250
Exercised, shares
Exchanged, shares	(845,000)
Number of Warrants Outstanding ending balance, shares	4,365,250	845,000
Weighted Average Remaining Life In Years, Outstanding beginning balance	2 years 6 months
Weighted Average Remaining Life In Years, Granted	5 years 3 months 19 days
Weighted Average Remaining Life In Years, Exercised	0 years
Weighted Average Remaining Life In Years, Exchanged	2 years 6 months
Weighted Average Remaining Life In Years, Outstanding ending balance	4 years 9 months 18 days	2 years 6 months
Weighted-average exercise price, Outstanding beginning balance	$ 3
Weighted-average exercise price, Granted	2.29
Weighted-average exercise price, Exercised
Weighted-average exercise price, Exchanged	3
Weighted-average exercise price, Outstanding ending balance	$ 2.29	$ 3
Warrants aggregate intrinsic value, beginning balance
Warrants aggregate intrinsic value, Granted
Warrants aggregate intrinsic value, Exercised
Warrants aggregate intrinsic value, Forfeited and cancelled
Warrants aggregate intrinsic value, beginning balance

Stockholder's Deficit - Summa_2

Stockholder's Deficit - Summary of Sale of Assets and Discharge of Liabilities (Details)	Sep. 30, 2018USD ($)
Equity [Abstract]
Cash and cash equivalents	$ 4,786
Investments in real estate limited liability companies	103,584
Loans held for sale	285,919
Long-term investment	212,619
Real estate leasehold interest, net	93,000
Technology and equipment, net	511
Total assets sold	700,419
Line of credit, affiliated company	(690,419)
Other current liabilities	(10,000)
Total liabilities discharged	$ (700,419)

Stockholder's Deficit - Share-b

Stockholder's Deficit - Share-based Compensation, Stock Options, Activity (Details)	9 Months Ended
	Sep. 30, 2018$ / sharesshares
Equity [Abstract]
Options Outstanding beginning balance | shares
Options Outstanding Granted | shares	1,900,000
Options Outstanding Exercised | shares
Options Outstanding Canceled | shares
Options Outstanding ending balance | shares	1,900,000
Weighted Average Exercise Price Outstanding beginning balance | $ / shares
Weighted Average Exercise Price Granted | $ / shares	3.09
Weighted Average Exercise Price Exercised | $ / shares
Weighted Average Exercise Price Canceled | $ / shares
Weighted Average Exercise Price Outstanding ending balance | $ / shares	$ 3.09

Related-Party Transactions (Det

Related-Party Transactions (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 14, 2018
Epoint Payment Corp [Member]
Aggregate principal amount	$ 135,000		$ 100,000
Debt instrument interest rate	6.00%		6.00%
Asset Exchange Option Agreement [Member] | Epoint Payment Corp [Member]
Aggregate principal amount	$ 100,000
Fintech Investments, Inc [Member]
Payments to related party	40,000	$ 85,582
3rd Rock Communications, Inc [Member]
Payments to related party	9,000	$ 27,000
3rd Rock Communications, Inc [Member] | Technology and Equipment [Member]
Payments to related party	425,000
3rd Rock Communications, Inc [Member] | Licensing Agreement [Member]
Payments to related party	75,000
3rd Rock Communications, Inc [Member] | Licensing Agreement [Member] | Through September 2018 [Member]
Payments to related party	$ 500,000

Planned Acquisition Of Smartp_2

Planned Acquisition Of Smartpay Leasing, LLC (Details Narrative) - USD ($)	Feb. 15, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Mar. 31, 2018
Deposits on planned acquisition of SmartPay Leasing, LLC		$ 200,000		$ 200,000
Membership Interest Purchase Agreement [Member] | SmartPay Leasing LLC [Member]
Consideration amount	$ 48,500,000
Initial deposit						$ 100,000
Acquisition related costs	$ 60,000,000
Business combination, agreement description	The Seller may terminate the agreement if the parties do not reach agreement on or before June 1, 2018 with respect to the retention of certain SmartPay employees and by June 15, 2018, if the Company shall not have either delivered to the Seller a firm financing commitment for an amount sufficient to fund the purchase price or shall not have remitted to the Seller $100,000 on account of the purchase price.

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member]	2 Months Ended
	Nov. 19, 2018USD ($)
Note payable	$ 14,988
Debt interest rate	6.00%
Debt maturity term	6 months