Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 24, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Optionable Inc | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 83,133,128 | ' |
Entity Public Float | ' | ' | $800,000 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0001303433 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash and cash equivalents | $163,234 | $247,684 |
Prepaid expenses | 20,000 | 14,589 |
Total current assets | 183,234 | 262,273 |
Total assets | 183,234 | 262,273 |
LIABILITIES AND STOCKHOLDERS' DEFICIT | ' | ' |
Accounts payable and accrued expenses | 248,938 | 176,853 |
248,938 | 176,853 | |
Due to director, net of unamortized discount of $12,828 and $68,638 at December 31, 2013 and December 31, 2012, respectively | 495,869 | 440,059 |
Total liabilities | 744,807 | 616,912 |
Stockholders' Deficit: | ' | ' |
Preferred Stock; $.0001 par value, 5,000,000 shares authorized, none issued and outstanding at December 31, 2013 and December 31, 2012 | ' | 0 |
Common stock; $.0001 par value, 100,000,000 shares authorized, 87,928,203 shares issued and 52,423,403 shares outstanding at December 31, 2013 and December 31, 2012 | 8,792 | 5,242 |
Additional paid-in capital | 163,533,686 | 162,819,884 |
Treasury stock at cost, 4,095,075 shares at December 31, 2013 and December 31, 2012 | -47,552 | -47,552 |
Accumulated deficit | -164,056,499 | -163,132,213 |
Total stockholders’ deficit | -561,573 | -354,639 |
Total liabilities and stockholders’ deficit | $183,234 | $262,273 |
Balance_Sheets_Parentheticals
Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Due to director, unamortized discount (in Dollars) | $12,828 | $68,638 |
Preferred Stock; par value (in Dollars per share) | $0.00 | $0.00 |
Preferred Stock; shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock; issued | 0 | 0 |
Preferred Stock; outstanding | 0 | 0 |
Common stock; par value (in Dollars per share) | $0.00 | $0.00 |
Common stock; shares authorized | 100,000,000 | 100,000,000 |
Common stock; shares issued | 87,928,203 | 87,928,203 |
Common stock; shares outstanding | 52,423,403 | 52,423,403 |
Treasury stock at cost, shares | 4,095,075 | 4,095,075 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Operating expenses: | ' | ' |
Selling, general and administrative | $869,148 | $1,152,031 |
Total operating expenses | 869,148 | 1,152,031 |
Operating loss | -869,148 | -1,152,031 |
Interest income | 672 | 2,855 |
Interest expense to related parties | -55,810 | -49,529 |
-55,138 | -46,674 | |
Loss before income tax benefit | -924,286 | -1,198,705 |
Income tax benefit | 0 | 0 |
Net loss | ($924,286) | ($1,198,705) |
Basic loss per common share (in Dollars per share) | ($0.01) | ($0.02) |
Diluted loss per common share (in Dollars per share) | ($0.01) | ($0.02) |
Basic and Diluted weighted average common shares outstanding (in Shares) | 78,298,134 | 48,333,128 |
Statement_of_Changes_in_Stockh
Statement of Changes in Stockholders' Equity Deficit (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Balance in dollars | ($561,573) | ($354,639) | $829,292 |
Blance in shares (in Shares) | 87,928,203 | 87,928,203 | ' |
Fair value of options | 7,353 | 14,774 | ' |
Issuance of Common Stock, net of issuance costs | 710,000 | ' | ' |
Net loss | -924,286 | -1,198,705 | ' |
Common Stock [Member] | ' | ' | ' |
Balance in dollars | 8,792 | 5,242 | 5,242 |
Blance in shares (in Shares) | 87,928,203 | 52,428,203 | 52,428,203 |
Issuance of Common Stock, net of issuance costs | 3,550 | ' | ' |
Issuance of Common Stock, net of issuance costs (in Shares) | 35,500,000 | ' | ' |
Additional Paid-in Capital [Member] | ' | ' | ' |
Balance in dollars | 163,533,687 | 162,819,884 | 162,805,110 |
Fair value of options | 7,353 | 14,774 | ' |
Issuance of Common Stock, net of issuance costs | 706,450 | ' | ' |
Treasury Stock [Member] | ' | ' | ' |
Balance in dollars | -47,552 | -47,552 | -47,552 |
Retained Earnings [Member] | ' | ' | ' |
Balance in dollars | -164,056,499 | -163,132,213 | -161,933,508 |
Net loss | ($924,286) | ($1,198,705) | ' |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Net loss | ($924,286) | ($1,198,705) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Amortization of debt discount | 55,810 | 49,529 |
Non cash expenses paid by shareholder | 132,185 | ' |
Share-based compensation expense | 7,353 | 14,774 |
Changes in operating assets and liabilities: | ' | ' |
Prepaid and other assets | -5,411 | 25,411 |
Accounts payable and accrued expenses | 72,085 | 66,393 |
Net cash used in operating activities | -662,264 | -1,042,598 |
Net cash used in investing activities | 0 | 0 |
Net cash used in financing activities | 577,815 | 0 |
Net decrease in cash | -84,449 | -1,042,598 |
Cash, beginning of period | 247,684 | 1,290,282 |
Cash, end of period | 163,234 | 247,684 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid for income taxes | 0 | 0 |
Cash paid for interest | $0 | $0 |
Note_1_Organization_Descriptio
Note 1 - Organization, Description of Business and Going Concern | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
Note 1-Organization, Description of Business and Going Concern | |
Optionable, Inc. (“the “Company”) was formed in Delaware in February 2000. Between April 2001 and July 2007, a substantial portion of the Company’s revenues were generated from providing energy derivative brokerage services to brokerage firms, financial institutions, energy traders, and hedge funds worldwide. | |
The Company has not generated any revenues since the third quarter of 2007 as a result of the termination of the business relationship by its largest customer and the succession of events since then. The litigation matters listed below and discussed in Note 6 have had a significant adverse impact on its business and future results of operations and financial condition. | |
The Company’s management is seeking out possible business transactions and new relationships in areas unrelated to brokerage services. | |
The Company is a defendant to several legal proceedings, one from its largest shareholder, Chicago Mercantile Exchange/ New York Mercantile Exchange (“NYMEX”), and a second one from its former largest customer, Bank of Montreal (“BMO”) (which was settled in 2013). Also named in such lawsuits, among others, are: one of the Company’s current board members and former president, as well as the Company’s former chief executive officer and former chairman. Additionally, the Company’s former chief executive officer and former president are defendants in a claim made by the Securities and Exchange Commission. | |
Going Concern | |
Based on its cash and equivalents as of the date of this Annual Report on Form 10-K, the Company is unlikely to have sufficient funds to meet its obligations for the next twelve months if the Company is not able to secure new sources of capital or complete a strategic transaction. Even if the Company raises additional capital or completes a strategic transaction, the combination of the anticipated legal costs to defend against current legal proceedings, the potential amounts the Company would have to pay if there are negative outcomes in one or more of such legal proceedings, the Company’s obligations under its indemnification obligations and additional legal and other ongoing expenses incurred by the Company could exceed the Company’s resources before the end of 2014. The legal proceedings also negatively impact the Company’s ability to raise additional capital or enter into strategic transactions with other companies. The Company’s future depends on its ability to satisfactorily resolve the aforementioned issues and there is no assurance it will be able to do so. If the Company fails for any reason, it would not be able to continue as a going concern and could potentially be forced to seek relief through a bankruptcy or other dissolution proceeding. The Company's December 31, 2013 financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Significant Accounting Policies [Text Block] | ' | ||
Note 2- Summary of Significant Accounting Policies | |||
Cash and Cash Equivalents | |||
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. | |||
Concentration of Credit Risks | |||
The Company is subject to concentrations of credit risk primarily from cash and cash equivalents. | |||
The Company's cash and cash equivalents accounts are held at financial institutions. The Federal Deposit Insurance Corporation ("FDIC") insured up to $100,000 between January 2007 and October 2008. After October 2008, it insured up to $250,000 for interest-bearing accounts and an unlimited amount for noninterest-bearing accounts after October 2008. While the Company periodically evaluates the credit quality of the financial institutions in which it holds deposits, it cannot reasonably alleviate the risk associated with the sudden failure of such financial institutions. | |||
Fair Value of Financial Instruments | |||
Effective January 1, 2008, the Company adopted Financial Accounting Statement Board (“FASB”) Accounting Standard Codification (“ASC”) 820, “Fair Value Measurements and Disclosures” , for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value and expands disclosure about such fair value measurements. | |||
ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: | |||
Level 1: | Observable inputs such as quoted market prices in active markets for identical assets or liabilities | ||
Level 2: | Observable market-based inputs or unobservable inputs that are corroborated by market data | ||
Level 3: | Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. | ||
The Company did not have any Level 2 or Level 3 assets or liabilities as of December 31, 2013 and 2012, with the exception of its due to director. The Company deems that the carrying value of the due to director approximates the fair value as of December 31, 2013. | |||
Cash and cash equivalents include money market securities that are considered to be highly liquid and easily tradable as of December 31, 2013 and 2012, respectively. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within our fair value hierarchy. | |||
In addition, ASC 825-10-25, “Fair Value Option,” was effective January 1, 2008. ASC 825-10-25 expands opportunities to use fair value measurements in financial reporting and permits entities to choose to measure many financial instruments and certain other items at fair value. The Company did not elect the fair value options for any of its qualifying financial instruments. | |||
Income Taxes | |||
Income taxes are accounted for in accordance with "Accounting for Income Taxes", which requires the recognition of deferred tax assets and liabilities to reflect the future tax consequences of events that have been recognized in the Company's financial statements or tax returns. Measurement of the deferred items is based on enacted tax laws. In the event the future consequences of differences between financial reporting bases and tax bases of the Company's assets and liabilities result in a deferred tax asset, ASC 740 requires an evaluation of the probability of being able to realize the future benefits indicated by such assets. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some or all deferred tax assets will not be realized. Penalties and interest on underpayment of taxes are reflected in the Company’s effective tax rate. | |||
Use of Estimates | |||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates made by management include, but are not limited to, the realization of receivables and share-based payments. Actual results will differ from these estimates. | |||
Basic and Diluted Earnings per Share | |||
Basic earnings per share are calculated by dividing income available to stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share are computed using the weighted average number of common shares and dilutive common share equivalents outstanding during the period. Dilutive common share equivalents consist of shares issuable upon the exercise of stock options and warrants (calculated using the modified-treasury stock method). The outstanding options amounted to 2,883,000 and 2,283,000 at December 31, 2013 and 2012, respectively. There were no outstanding warrants at December 31, 2013 and 2012, respectively. The options and warrants outstanding at December 31, 2013 and 2012, respectively, have been excluded from the computation of diluted earnings per share due to their antidilutive effect. | |||
Stock Compensation | |||
Under ASC 718- Compensation-Stock Compensation, companies are required to measure the costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to provide services. Share-based compensation arrangements include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. In March 2005, the SEC issued SAB 107. SAB 107 expresses views of the staff regarding the interaction between ASC 718 and certain SEC rules and regulations and provides the staff's views regarding the valuation of share-based payment arrangements for public companies. Compensation cost is measured on the date of grant as its fair value. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. | |||
Contingencies | |||
The outcomes of legal proceedings and claims brought against the Company are subject to significant uncertainty. FASB ASC 450-20-25-2 “Contingencies- Loss Contingencies-Recognition”, requires that an estimated loss from a loss contingency such as a legal proceeding or claim should be accrued by a charge to income if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. Disclosure of a contingency is required if there is at least a reasonable possibility that a loss has been incurred. | |||
In determining whether a loss should be accrued the Company evaluates, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. While the Company believes that it will continue to incur losses from such legal proceedings, it is unable to make a reasonable estimate of the amount of loss. | |||
Recent Accounting Pronouncements | |||
A variety of accounting standards have been issued or proposed by FASB that do not require adoption until a future date. The Company does not expect the adoption of any of these standards to have a material impact once adopted. |
Note_3_Prepaid_Expenses
Note 3 - Prepaid Expenses | 12 Months Ended |
Dec. 31, 2013 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | ' |
Note 3- Prepaid expenses | |
Prepaid expenses primarily consists of retainers paid to certain law firms which represent the Company and certain former and current directors in connection with legal proceedings which are described in Note 6-Litigation and Contingencies. |
Note_4_Due_to_Related_Parties
Note 4 - Due to Related Parties | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Related Party Transactions Disclosure [Text Block] | ' | ||||||||
Note 4-Due to Related Parties | |||||||||
The terms and amounts of due to related parties at December 31, 2013 and 2012, respectively, are as follows: | |||||||||
One of the Company’s current board members and former president is entitled to a payment of $508,697 (the “Principal Amount”), plus interest, if applicable, upon the following terms. In the event that the Company secures financing of at least $1,000,000 (the “Capital Raise”), this person will be entitled to a payment equal to the lesser of (i) 12.5% of the Capital Raise, (ii) $381,250, and (iii) any unpaid Principal Amount. In the event that upon a Capital Raise, the entire Principal Amount has not been repaid, then this person shall be issued a promissory note (the “Capital Raise Note”) in the principal amount of any then unpaid Principal Amount remaining after the payments described in the preceding sentence. The Capital Raise Note shall be due and payable on April 1, 2014 and shall bear interest at a rate of 4.68% annually. In the event that no Capital Raise shall have occurred prior to April 1, 2014, then the unpaid Principal Amount shall be due and payable as of such date. This liability is recorded on the Company’s balance sheets as follows: | |||||||||
December | December | ||||||||
31, | 31, | ||||||||
2013 | 2012 | ||||||||
$ | 508,697 | $ | 508,697 | ||||||
Discount, using initial implied rate of 12% | (12,828 | ) | (68,638 | ) | |||||
$ | 495,869 | $ | 440,059 | ||||||
During April 2005, the Company modified the terms of its due to related parties. The modified terms provide that, in the event of a Capital Raise, among other things, the annual interest rate accrued after such event is reduced from 12% to 4.68%. Additionally, the modified terms provide that the Company may make principal repayments towards the due to a stockholder and former Chairman of the Board and the due to Director amounting to approximately 25% of its cash flows from operating cash flows less capital expenditures. During April 2006, the Company modified the terms of its due to related parties to allow the Company to make principal repayments at its discretion. | |||||||||
The amortization of the discount on the due to related parties amounted to approximately $55,810 and $49,529 during 2013 and 2012, respectively. |
Note_5_Stockholders_Equity
Note 5 - Stockholders' Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | ||||||||||||
Note 5- Stockholders' Equity | |||||||||||||
Stock Compensation Plan | |||||||||||||
During November 2004, the Company adopted the 2004 Stock Option Plan ("2004 Plan"), and amended it in March 2011. The 2004 Plan allows for the grant of both incentive stock options and nonstatutory stock options. The 2004 Plan may be administered, interpreted and constructed by the Board of Directors. The number of shares of common stock which may be issued pursuant to options granted under the 2004 Plan may not exceed 7,500,000 shares. | |||||||||||||
During 2013 and 2012, the Company recorded share-based payment expenses amounting to approximately $7,353 and $14,774, respectively, in connection with all options outstanding at the respective measurement dates. The amortization of share-based payment was recorded in general and administrative expenses during 2013 and 2012. | |||||||||||||
The Company granted 500,000 options in March 2011, as follows: 100,000 options were granted to each of CEO Brad O’Sullivan, CFO Matthew Katzeff, Director Andrew Samaan, Director and former President Edward O’Connor and Comptroller Michael Templeton. The Company granted 100,000 options to Director Andrew Samaan in August 2011. | |||||||||||||
The Company granted 600,000 options in May 2012, as follows: 200,000 options were granted to each of CEO Brad O'Sullivan and CFO Matthew Katzeff and 100,000 options were granted to each of Director Andrew Samaan and Director and former President Edward O’Connor. These were the only options granted during the year ended December 31, 2012. | |||||||||||||
No options granted during the year ended December 31, 2013. | |||||||||||||
The fair value of the options granted during the years ended December 31, 2012 are based on the Black Scholes Model using the following assumptions: | |||||||||||||
600,000 | |||||||||||||
Options | |||||||||||||
Issued | |||||||||||||
On May 2, | |||||||||||||
2012 | |||||||||||||
Exercise price: | $ | 0.022 | |||||||||||
Market price at date of grant: | $ | 0.022 | |||||||||||
Volatility: | 123 | % | |||||||||||
Expected dividend rate: | 0 | % | |||||||||||
Expected terms (years): | 5 | ||||||||||||
Risk-free interest rate: | 0.82 | % | |||||||||||
A summary of the activity during 2013 and 2012 of the Company’s stock option plan is presented below: | |||||||||||||
Options | Weighted | Aggregate | |||||||||||
Average | Intrinsic | ||||||||||||
Exercise Price | Value | ||||||||||||
Outstanding at January 1, 2012 | 2,283,000 | $ | 0.15 | ||||||||||
Granted | 600,000 | $ | 0.022 | ||||||||||
Exercised | - | - | |||||||||||
Expired or cancelled | - | - | |||||||||||
Outstanding at December 31, 2012 | 2,883,000 | $ | 0.015 | $ | 0.035 | ||||||||
Granted | - | - | |||||||||||
Exercised | - | - | |||||||||||
Expired or cancelled | 120,000 | $ | 0.22 | ||||||||||
Outstanding at December 31, 2013 | 2,763,000 | $ | 0.16 | $ | 0.1 | ||||||||
Exercisable and vested at December 31, 2013 | 2,763,000 | $ | 0.16 | $ | 0.1 | ||||||||
At December 31, 2013, there were no nonvested options not yet recognized, as such there was no compensation cost related to nonvested options not yet recognized. | |||||||||||||
If any options granted under the 2004 Plan, as amended, expire or terminate without having been exercised or cease to be exercisable, such options will be available again under the 2004 Plan. All employees of the Company and its subsidiaries are eligible to receive incentive stock options and nonstatutory stock options. Non-employee directors and outside consultants who provided bona-fide services not in connection with the offer or sale of securities in a capital raising transaction are eligible to receive nonstatutory stock options. Incentive stock options and nonstatutory stock options may not be granted below the fair market value of the Company's common stock at the time of grant or, if to an individual who beneficially owns more than 10% of the total combined voting power of all stock classes of the Company or a subsidiary, the option price may not be less than 110% of the fair value of the common stock at the time of grant. The expiration date of an incentive stock option may not be longer than ten years from the date of grant. Option holders, or their representatives, may exercise their vested incentive stock options up to three months after their employment termination or one year after their death or permanent and total disability. With respect to the current directors and officers of the Company, their nonstatutory stock options do not expire until the second year anniversary of their resignation from the Company for Good Reason or termination without Cause (as these terms are defined in the Plan), or upon the occurrence of certain other events. The Plan provides for adjustments upon changes in capitalization. | |||||||||||||
The Company's policy is to issue shares pursuant to the exercise of stock options from its available authorized but unissued shares of common stock. It does not issue shares pursuant to the exercise of stock options from its treasury shares. |
Note_6_Litigation_and_Continge
Note 6 - Litigation and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Text Block Supplement [Abstract] | ' |
Legal Matters and Contingencies [Text Block] | ' |
Note 6- Litigation and Contingencies | |
CMEG NYMEX Inc. v. Optionable, Inc. et. al. Civ. No. 09-03677 (S.D.N.Y.) | |
CMEG NYMEX Inc. (“NYMEX”) filed the operative complaint in this litigation on April 10, 2009. The complaint alleges, among other things, that Optionable, certain of its former officers and directors, one current director, and other defendants defrauded NYMEX in connection with NYMEX’s purchase of $28.9 million of shares of Optionable common stock pursuant to a Stock and Warrant Purchase Agreement (“SWPA”). NYMEX seeks damages in excess of $28.5 million based on the following causes of action against Optionable: violations of Section 10(b) of the Securities Exchange Act; breach of contract and warranty; aiding and abetting common law fraud; and negligent misrepresentation. The Company has denied the allegations in the Complaint. On September 6, 2011, the Company filed counterclaims against NYMEX alleging, among other things, that NYMEX breached its obligations under the SWPA. The counterclaims seek unspecified damages based on the following causes of action: breach of contract; breach of the covenant of good faith and fair dealing; and refusal to pay amounts due and owed of over $740,000. NYMEX filed a motion for partial summary judgment in support of its claims, and the Company also filed a motion for summary judgment in support of its claims. | |
On August 24, 2012, the United States District Court for the Southern District of New York (the “Court”) issued a Memorandum Decision and Order (the “NYMEX Order”) concerning motions for summary judgment regarding certain of the parties’ claims and counterclaims. In the NYMEX Order, the Court: (i) denied NYMEX’s motion for summary judgment on its breach of warranty claim; (ii) denied NYMEX’s motion to dismiss Optionable’s counterclaim for breach of the SWPA; (iii) granted NYMEX’s motion to dismiss Optionable’s counterclaims for breach of the covenant of good faith and fair dealing, and refusal to pay amounts due and owed; and (iv) granted NYMEX’s motion to dismiss defendant Mark Nordlicht’s breach of contract counterclaim. The Company is unable to predict the outcome of this litigation. | |
Bank of Montreal v. Optionable, Inc. et al. Civ. No. 09-07557 (S.D.N.Y.) | |
Bank of Montreal (“BMO”) filed the operative complaint in this litigation on August 28, 2009. The complaint alleges, among other things, that Optionable, certain of its former officers and directors, one current director and other defendants conspired to defraud BMO in connection with large monetary losses experienced by BMO as a result of natural gas option trades made by one of its former employees. BMO seeks unspecified damages based on the following causes of action: fraud; negligent misrepresentation; aiding and abetting fraud; aiding and abetting breach of fiduciary duty; and breach of contract. The Company has denied the allegations in the Complaint. On September 6, 2011, the Company filed counterclaims against BMO alleging, among other things, that BMO launched an unlawful campaign to blame the Company for the losses BMO incurred due to its own fault. | |
On August 24, 2012, the Court issued a Memorandum Decision and Order granting BMO’s motion to dismiss all of Optionable’s counterclaims. | |
On November 25, 2013, Optionable, Inc. (the “Company”) entered into a Settlement Agreement (the “Agreement”) with Bank of Montreal (“BMO”), Edward J. O’Connor (“O’Connor”), Mark A. Nordlicht (“Nordlicht”), and Scott Connor (together with the Company, O’Connor, and Nordlicht, the “Optionable Parties,” and the Optionable Parties together with BMO, the “Parties,” and each, a “Party”) which sets for the agreement for the final terms of settlement and dismissal of the lawsuit entitled Bank of Montreal v. Optionable, Inc., No. 09-CV-7557 (S.D.N.Y.) (the “Litigation”). Pursuant to the Agreement, the Optionable Parties agree to pay $200,000 to BMO in full settlement of the Litigation, and within 10 business days of the date of payment, the Parties shall file for an order dismissing the Litigation with prejudice with respect to the Optionable Parties. | |
SEC Matter | |
On November 18, 2008, the Securities and Exchange Commission filed a complaint against the Company’s former Chief Executive Officer, Kevin Cassidy, its former President (and current Director), Edward O’Connor, and its former employee Scott Connor in the United States District Court for the Southern District of New York. The complaint claims that Cassidy and Mr. O’Connor are liable for violations of Rules 10b-5, 12b-20, 13a-1, 13a-14, 13a-16, 13b2-1, and 13b2-2 and Section 10(b), Section 13(a), Section 13(b)(2) and Section 13(b)(5) of the Exchange Act and Section 17(a) of the Securities Act. The complaint demands, among other things, that Mr. Cassidy and Mr. O’Connor disgorge their alleged ill-gotten gains, be permanently enjoined from certain activities, pay civil penalties, be prohibited from being an officer or director of any issuer that has registered securities or an issuer that is required to file reports pursuant to Section 15(d) of the Exchange Act. | |
On September 11, 2012, the SEC filed a First Amended Complaint in the action which added the Company as a defendant. On December 4, 2012, without admitting or denying any of the allegations in the Amended Complaint, and without the payment of any amount, in full and final settlement of the action, the Company consented to entry of judgment enjoining the Company from violating, directly or indirectly, Sections 10(b), 13(a), 13(b)(2) or 13(b)(5) of the Securities Exchange Act or any of the rules promulgated thereunder. | |
While the Company intends to defend itself vigorously against the remaining claims from NYMEX and BMO, there exists the possibility of adverse outcomes that the Company cannot determine. These matters are subject to inherent uncertainties and management’s view of these matters may change in the future. | |
Indemnification and Advancement Obligations | |
As a result of their involvement in the matters described in this Note 6, the Company may have indemnification obligations to certain of its past directors and officers and a current board member and former president. These indemnification obligations may include, but are not limited to, amounts that would be payable to former directors or officers if they are ultimately successful in the legal matters or are otherwise found eligible for indemnification. The amounts, if any, and timing of such indemnification obligations with respect to such individuals is indeterminable, and therefore are not reflected in the financial statements. In addition, the financial statements do not reflect approximately $202,000 of disputed legal fees that are claimed pursuant to an indemnification agreement by the law firm defending a former officer of the Company in various legal actions. The ultimate amount for which the Company will be liable for these disputed amounts is not currently determinable. |
Note_7_Income_Taxes
Note 7 - Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
Note 7-Income Taxes | |||||||||
The components of the benefit for income taxes are as follows | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Federal | $ | - | $ | - | |||||
State | - | - | |||||||
Total current | - | - | |||||||
Deferred: | |||||||||
Federal | - | - | |||||||
State | - | - | |||||||
- | - | ||||||||
Total benefit (provision) for income taxes | $ | - | $ | - | |||||
A reconciliation of the Company’s effective tax rate to the statutory federal rate is as follows: | |||||||||
2013 | 2012 | ||||||||
Federal statutory taxes | (35.0 | )% | (35.0 | )% | |||||
State income taxes, net of federal tax benefit | (7.1 | ) | (5.7 | ) | |||||
Permanent differences | 2.2 | 2.3 | |||||||
Change in valuation allowance | 39.9 | 38.4 | |||||||
Effect of net operating loss carryback/carryforward | - | - | |||||||
0 | % | 0 | % | ||||||
The tax effects of principal temporary differences between the carrying amount of assets and their tax bases are summarized below. | |||||||||
Management believes it is more likely than not that it will be able to offset certain deductions associated with these deferred tax assets to its prior or future years’ taxable income: | |||||||||
The components of the deferred tax assets are as follows: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Net operating losses | $ | 2,845,000 | $ | 2,404,000 | |||||
Allowance for bad debt | - | - | |||||||
Other | 3,000 | 3,000 | |||||||
State income tax carryforward | 10,000 | 10,000 | |||||||
Intangible assets, net of amortization | 133,000 | 133,000 | |||||||
2,991,000 | 2,550,000 | ||||||||
Valuation Allowance | (2,991,000 | ) | (2,550,000 | ) | |||||
Tot Total deferred tax assets- current | $ | - | $ | - | |||||
During 2011, the Internal Revenue Service informed the Company that the carry back to the earlier years is barred by statute, and that the Company will need to carry forward this net operating loss to be applied against taxable income of future years. However, since the Company cannot be assured at this time that there will be a future taxable income available to which this loss may be offset, the Company has reserved the full amount of the tax benefit attributable to this loss carry forward. The tax returns of the Company are subject to examination by Federal and state taxing authorities. | |||||||||
The Company has net operating losses of approximately $6,617,286 as of December 31, 2013 for both federal and state tax purposes that expire in 2033. | |||||||||
The valuation allowance of deferred tax assets increased by approximately $441,000 during 2013. |
Note_8_Subsequent_Events
Note 8 - Subsequent Events | 24 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
Note 8 – Subsequent Events | |
In accordance with ASC 855, “Subsequent Events” the Company evaluated subsequent events after the balance sheet date for disclosure or recognition purposes. | |
As of the date of this filing there were no subsequent events. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||
Cash and Cash Equivalents | |||
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. | |||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ||
Concentration of Credit Risks | |||
The Company is subject to concentrations of credit risk primarily from cash and cash equivalents. | |||
The Company's cash and cash equivalents accounts are held at financial institutions. The Federal Deposit Insurance Corporation ("FDIC") insured up to $100,000 between January 2007 and October 2008. After October 2008, it insured up to $250,000 for interest-bearing accounts and an unlimited amount for noninterest-bearing accounts after October 2008. While the Company periodically evaluates the credit quality of the financial institutions in which it holds deposits, it cannot reasonably alleviate the risk associated with the sudden failure of such financial institutions. | |||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||
Fair Value of Financial Instruments | |||
Effective January 1, 2008, the Company adopted Financial Accounting Statement Board (“FASB”) Accounting Standard Codification (“ASC”) 820, “Fair Value Measurements and Disclosures” , for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value and expands disclosure about such fair value measurements. | |||
ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: | |||
Level 1: | Observable inputs such as quoted market prices in active markets for identical assets or liabilities | ||
Level 2: | Observable market-based inputs or unobservable inputs that are corroborated by market data | ||
Level 3: | Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. | ||
The Company did not have any Level 2 or Level 3 assets or liabilities as of December 31, 2013 and 2012, with the exception of its due to director. The Company deems that the carrying value of the due to director approximates the fair value as of December 31, 2013. | |||
Cash and cash equivalents include money market securities that are considered to be highly liquid and easily tradable as of December 31, 2013 and 2012, respectively. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within our fair value hierarchy. | |||
In addition, ASC 825-10-25, “Fair Value Option,” was effective January 1, 2008. ASC 825-10-25 expands opportunities to use fair value measurements in financial reporting and permits entities to choose to measure many financial instruments and certain other items at fair value. The Company did not elect the fair value options for any of its qualifying financial instruments. | |||
Income Tax, Policy [Policy Text Block] | ' | ||
Income Taxes | |||
Income taxes are accounted for in accordance with "Accounting for Income Taxes", which requires the recognition of deferred tax assets and liabilities to reflect the future tax consequences of events that have been recognized in the Company's financial statements or tax returns. Measurement of the deferred items is based on enacted tax laws. In the event the future consequences of differences between financial reporting bases and tax bases of the Company's assets and liabilities result in a deferred tax asset, ASC 740 requires an evaluation of the probability of being able to realize the future benefits indicated by such assets. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some or all deferred tax assets will not be realized. Penalties and interest on underpayment of taxes are reflected in the Company’s effective tax rate. | |||
Use of Estimates, Policy [Policy Text Block] | ' | ||
Use of Estimates | |||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates made by management include, but are not limited to, the realization of receivables and share-based payments. Actual results will differ from these estimates. | |||
Earnings Per Share, Policy [Policy Text Block] | ' | ||
Basic and Diluted Earnings per Share | |||
Basic earnings per share are calculated by dividing income available to stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share are computed using the weighted average number of common shares and dilutive common share equivalents outstanding during the period. Dilutive common share equivalents consist of shares issuable upon the exercise of stock options and warrants (calculated using the modified-treasury stock method). The outstanding options amounted to 2,883,000 and 2,283,000 at December 31, 2013 and 2012, respectively. There were no outstanding warrants at December 31, 2013 and 2012, respectively. The options and warrants outstanding at December 31, 2013 and 2012, respectively, have been excluded from the computation of diluted earnings per share due to their antidilutive effect. | |||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||
Stock Compensation | |||
Under ASC 718- Compensation-Stock Compensation, companies are required to measure the costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to provide services. Share-based compensation arrangements include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. In March 2005, the SEC issued SAB 107. SAB 107 expresses views of the staff regarding the interaction between ASC 718 and certain SEC rules and regulations and provides the staff's views regarding the valuation of share-based payment arrangements for public companies. Compensation cost is measured on the date of grant as its fair value. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. | |||
Commitments and Contingencies, Policy [Policy Text Block] | ' | ||
Contingencies | |||
The outcomes of legal proceedings and claims brought against the Company are subject to significant uncertainty. FASB ASC 450-20-25-2 “Contingencies- Loss Contingencies-Recognition”, requires that an estimated loss from a loss contingency such as a legal proceeding or claim should be accrued by a charge to income if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. Disclosure of a contingency is required if there is at least a reasonable possibility that a loss has been incurred. | |||
In determining whether a loss should be accrued the Company evaluates, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. While the Company believes that it will continue to incur losses from such legal proceedings, it is unable to make a reasonable estimate of the amount of loss. | |||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||
Recent Accounting Pronouncements | |||
A variety of accounting standards have been issued or proposed by FASB that do not require adoption until a future date. The Company does not expect the adoption of any of these standards to have a material impact once adopted. |
Note_4_Due_to_Related_Parties_
Note 4 - Due to Related Parties (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Schedule of Debt [Table Text Block] | ' | ||||||||
December | December | ||||||||
31, | 31, | ||||||||
2013 | 2012 | ||||||||
$ | 508,697 | $ | 508,697 | ||||||
Discount, using initial implied rate of 12% | (12,828 | ) | (68,638 | ) | |||||
$ | 495,869 | $ | 440,059 |
Note_5_Stockholders_Equity_Tab
Note 5 - Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||
600,000 | |||||||||||||
Options | |||||||||||||
Issued | |||||||||||||
On May 2, | |||||||||||||
2012 | |||||||||||||
Exercise price: | $ | 0.022 | |||||||||||
Market price at date of grant: | $ | 0.022 | |||||||||||
Volatility: | 123 | % | |||||||||||
Expected dividend rate: | 0 | % | |||||||||||
Expected terms (years): | 5 | ||||||||||||
Risk-free interest rate: | 0.82 | % | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
Options | Weighted | Aggregate | |||||||||||
Average | Intrinsic | ||||||||||||
Exercise Price | Value | ||||||||||||
Outstanding at January 1, 2012 | 2,283,000 | $ | 0.15 | ||||||||||
Granted | 600,000 | $ | 0.022 | ||||||||||
Exercised | - | - | |||||||||||
Expired or cancelled | - | - | |||||||||||
Outstanding at December 31, 2012 | 2,883,000 | $ | 0.015 | $ | 0.035 | ||||||||
Granted | - | - | |||||||||||
Exercised | - | - | |||||||||||
Expired or cancelled | 120,000 | $ | 0.22 | ||||||||||
Outstanding at December 31, 2013 | 2,763,000 | $ | 0.16 | $ | 0.1 | ||||||||
Exercisable and vested at December 31, 2013 | 2,763,000 | $ | 0.16 | $ | 0.1 |
Note_7_Income_Taxes_Tables
Note 7 - Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Federal | $ | - | $ | - | |||||
State | - | - | |||||||
Total current | - | - | |||||||
Deferred: | |||||||||
Federal | - | - | |||||||
State | - | - | |||||||
- | - | ||||||||
Total benefit (provision) for income taxes | $ | - | $ | - | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Federal statutory taxes | (35.0 | )% | (35.0 | )% | |||||
State income taxes, net of federal tax benefit | (7.1 | ) | (5.7 | ) | |||||
Permanent differences | 2.2 | 2.3 | |||||||
Change in valuation allowance | 39.9 | 38.4 | |||||||
Effect of net operating loss carryback/carryforward | - | - | |||||||
0 | % | 0 | % | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Net operating losses | $ | 2,845,000 | $ | 2,404,000 | |||||
Allowance for bad debt | - | - | |||||||
Other | 3,000 | 3,000 | |||||||
State income tax carryforward | 10,000 | 10,000 | |||||||
Intangible assets, net of amortization | 133,000 | 133,000 | |||||||
2,991,000 | 2,550,000 | ||||||||
Valuation Allowance | (2,991,000 | ) | (2,550,000 | ) | |||||
Tot Total deferred tax assets- current | $ | - | $ | - |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 01, 2011 | Oct. 31, 2008 |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Cash, FDIC Insured Amount | $250,000 | ' | ' | $100,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | 2,883,000 | 2,283,000 | 2,283,000 | ' |
Warrants and Rights Outstanding | $0 | $0 | ' | ' |
Note_4_Due_to_Related_Parties_1
Note 4 - Due to Related Parties (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2005 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 4 - Due to Related Parties (Details) [Line Items] | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | ' | $508,697 | ' |
Related Party Transaction, Terms and Manner of Settlement | ' | '$1,000,000 | ' |
Related Party Transaction, Rate | 12.00% | 4.68% | ' |
Percentage of Cash Flow Available to Repay Related Party Debt | ' | 25.00% | ' |
Amortization of Debt Discount (Premium) | ' | 55,810 | 49,529 |
Maximum [Member] | ' | ' | ' |
Note 4 - Due to Related Parties (Details) [Line Items] | ' | ' | ' |
Related Party Transaction, Terms and Manner of Settlement | ' | '12.5% | ' |
Minimum [Member] | ' | ' | ' |
Note 4 - Due to Related Parties (Details) [Line Items] | ' | ' | ' |
Related Party Transaction, Terms and Manner of Settlement | ' | '$381,250 | ' |
Approximation [Member] | ' | ' | ' |
Note 4 - Due to Related Parties (Details) [Line Items] | ' | ' | ' |
Amortization of Debt Discount (Premium) | ' | $55,810 | $49,529 |
Note_4_Due_to_Related_Parties_2
Note 4 - Due to Related Parties (Details) - Related Party Debt (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Note 4 - Due to Related Parties (Details) - Related Party Debt [Line Items] | ' | ' |
Discount, using initial implied rate of 12% | ($12,828) | ($68,638) |
495,869 | 440,059 | |
Board Member and Former President [Member] | ' | ' |
Note 4 - Due to Related Parties (Details) - Related Party Debt [Line Items] | ' | ' |
508,697 | 508,697 | |
Discount, using initial implied rate of 12% | -12,828 | -68,638 |
$495,869 | $440,059 |
Note_4_Due_to_Related_Parties_3
Note 4 - Due to Related Parties (Details) - Related Party Debt (Parentheticals) (Board Member and Former President [Member]) | Dec. 31, 2013 | Dec. 31, 2012 |
Board Member and Former President [Member] | ' | ' |
Note 4 - Due to Related Parties (Details) - Related Party Debt (Parentheticals) [Line Items] | ' | ' |
Initial Implied Rate | 12.00% | 12.00% |
Note_5_Stockholders_Equity_Det
Note 5 - Stockholders' Equity (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||
31-May-12 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2004 | 31-May-12 | Mar. 31, 2011 | Aug. 31, 2011 | 31-May-12 | |
Chief Executive Officer [Member] | Chief Executive Officer [Member] | Director [Member] | Chief Financial Officer [Member] | |||||||
Note 5 - Stockholders' Equity (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | 7,500,000 | ' | ' | ' | ' |
Share-based Compensation (in Dollars) | ' | ' | $7,353 | $14,774 | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense (in Dollars) | ' | ' | ' | 14,774 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 600,000 | 500,000 | 0 | ' | 600,000 | ' | 200,000 | 100,000 | 100,000 | 100,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | ' | ' | 110.00% | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | ' | ' | 'ten | ' | ' | ' | ' | ' | ' | ' |
Note_5_Stockholders_Equity_Det1
Note 5 - Stockholders' Equity (Details) - Fair Value of Options Granted (USD $) | 0 Months Ended | 12 Months Ended |
2-May-12 | Dec. 31, 2011 | |
Fair Value of Options Granted [Abstract] | ' | ' |
Exercise price: (in Dollars per share) | $0.02 | $0.02 |
Market price at date of grant: (in Dollars per share) | $0.02 | ' |
Volatility: | 123.00% | ' |
Expected dividend rate: | 0.00% | ' |
Expected terms (years): | '5 years | ' |
Risk-free interest rate: | 0.82% | ' |
Note_5_Stockholders_Equity_Det2
Note 5 - Stockholders' Equity (Details) - Activity of the Company's Stock Option Plan (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||
2-May-12 | 31-May-12 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Jan. 01, 2011 | |
Activity of the Company's Stock Option Plan [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding | ' | ' | ' | 2,883,000 | 2,883,000 | ' | 2,283,000 | 2,283,000 |
Outstanding | ' | ' | ' | $0.16 | $0.16 | ' | $0.02 | $0.15 |
Outstanding | ' | ' | ' | $0.10 | $0.10 | ' | $0.04 | ' |
Exercisable and vested at December 31, 2013 | ' | ' | ' | 2,763,000 | 2,763,000 | ' | ' | ' |
Exercisable and vested at December 31, 2013 | ' | ' | ' | $0.16 | $0.16 | ' | ' | ' |
Exercisable and vested at December 31, 2013 | ' | ' | ' | $0.10 | $0.10 | ' | ' | ' |
Granted | ' | 600,000 | 500,000 | ' | 0 | 600,000 | ' | ' |
Granted | $0.02 | ' | ' | ' | ' | $0.02 | ' | ' |
Expired or cancelled | ' | ' | ' | 120,000 | ' | ' | ' | ' |
Expired or cancelled | ' | ' | ' | $0.22 | ' | ' | ' | ' |
Note_6_Litigation_and_Continge1
Note 6 - Litigation and Contingencies (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 06, 2011 | Apr. 10, 2009 | Dec. 31, 2013 | Apr. 10, 2009 | Nov. 25, 2013 |
Punitive [Member] | Disputed Fees [Member] | CMEG NYMEX Inc [Member] | Bank of Montreal vs Optionable Inc [Member] | ||||
Note 6 - Litigation and Contingencies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Value, Issued | $8,792 | $5,242 | ' | ' | ' | $28,900,000 | ' |
Loss Contingency, Damages Sought, Value | ' | ' | ' | 28,500,000 | ' | ' | ' |
Gain Contingency, Unrecorded Amount | ' | ' | 740,000 | ' | ' | ' | ' |
Litigation Settlement, Amount | ' | ' | ' | ' | ' | ' | -200,000 |
Legal Fees | ' | ' | ' | ' | $202,000 | ' | ' |
Note_7_Income_Taxes_Details
Note 7 - Income Taxes (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Note 7 - Income Taxes (Details) [Line Items] | ' |
Valuation Allowance, Deferred Tax Asset, Change in Amount | $441,000 |
Subsequent Event [Member] | ' |
Note 7 - Income Taxes (Details) [Line Items] | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $6,617,286 |
Note_7_Income_Taxes_Details_A_
Note 7 - Income Taxes (Details) - A Reconciliation of the Company's Effective Tax Rate to the Statutory Federal Rate (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
A Reconciliation of the Company's Effective Tax Rate to the Statutory Federal Rate [Abstract] | ' | ' |
Federal statutory taxes | -35.00% | -35.00% |
State income taxes, net of federal tax benefit (in Dollars) | ($7.10) | ($5.70) |
Permanent differences | 2.20% | 2.30% |
Change in valuation allowance | 39.90% | 38.40% |
0.00% | 0.00% |
Note_7_Income_Taxes_Details_Th
Note 7 - Income Taxes (Details) - The Components of the Deferred Tax Assets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
The Components of the Deferred Tax Assets [Abstract] | ' | ' |
Net operating losses | $2,845,000 | $2,404,000 |
Other | 3,000 | 3,000 |
State income tax carryforward | 10,000 | 10,000 |
Intangible assets, net of amortization | 133,000 | 133,000 |
2,991,000 | 2,550,000 | |
Valuation Allowance | ($2,991,000) | ($2,550,000) |