Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 10, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | OLB GROUP, INC. | |
Entity Central Index Key | 1,314,196 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 13,479,297 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
CURRENT ASSETS | ||
Cash | $ 1,689 | $ 2,875 |
Total Current Assets | 1,689 | 2,875 |
OTHER ASSETS | ||
Internet domain | 4,965 | 4,965 |
TOTAL ASSETS | 6,654 | 7,840 |
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||
Accounts payable | 34,709 | 18,333 |
Accrued compensation | 111,569 | |
Note payable, related party | 110,000 | |
Accrued interest, related party | 3,317 | |
Total Current Liabilities | 259,595 | 18,333 |
TOTAL LIABILITIES | 259,595 | 18,333 |
STOCKHOLDERS' DEFICIT | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares outstanding | ||
Common stock, $0.0001 par value; 200,000,000 shares authorized, 13,479,297 and 13,479,297 shares issued and outstanding, respectively | 1,348 | 1,348 |
Additional paid-in capital | 14,956,850 | 14,956,850 |
Accumulated deficit | (15,211,139) | (14,968,691) |
Total Stockholders' Deficit | (252,941) | (10,493) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 6,654 | $ 7,840 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 13,479,297 | 13,479,297 |
Common stock, shares outstanding | 13,479,297 | 13,479,297 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue | ||||
Subscription program | $ 8,152 | $ 15,411 | $ 39,789 | $ 42,932 |
Development | 13,656 | 2,500 | ||
Net revenue | 8,152 | 15,411 | 53,445 | 45,432 |
Cost of sales | 5,222 | 6,614 | 15,821 | 20,062 |
Gross margin | 2,930 | 8,797 | 37,624 | 25,370 |
OPERATING EXPENSES | ||||
Officer's compensation | 68,750 | 68,750 | 206,250 | 206,250 |
General and administrative expenses | 20,976 | 23,666 | 70,505 | 80,834 |
Total operating expenses | 89,726 | 92,416 | 276,755 | 287,084 |
Loss from operations | (86,796) | (83,619) | (239,131) | (261,714) |
OTHER INCOME | ||||
Interest expense | (2,972) | (4,513) | (3,317) | (7,013) |
Total other expense | (2,972) | (4,513) | (3,317) | (7,013) |
NET LOSS | $ (89,768) | $ (88,132) | $ (242,448) | $ (268,727) |
BASIC AND DILUTED LOSS PER SHARE | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.02) |
BASIC AND DILUTED WEIGHTED AVERAGE SHARES | 13,479,297 | 11,300,434 | 13,479,297 | 11,300,434 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (242,448) | $ (268,727) |
Changes in assets and liabilities: | ||
Accounts payable and accrued expenses | 19,693 | 6,089 |
Accrued officer compensation | 111,569 | 111,079 |
Net Cash Used in Operating Activities | (111,186) | (151,559) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Cash over draft | (313) | |
Proceeds from related party notes payable | 110,000 | 153,000 |
Net Cash Provided by Financing Activities | 110,000 | 152,687 |
NET CHANGE IN CASH | (1,186) | 1,128 |
CASH - BEGINNING OF PERIOD | 2,875 | |
CASH - END OF PERIOD | 1,689 | 1,128 |
CASH PAID FOR | ||
Interest | ||
Income taxes |
Background
Background | 9 Months Ended |
Sep. 30, 2016 | |
Background [Abstract] | |
BACKGROUND | NOTE 1 - BACKGROUND The Company incorporated in the State of Delaware on November 18, 2004 for the purpose of merging with OLB.com (On-line Business), Inc., a New York corporation incorporated in 1993 (“OLB.com”). The merger was done for the purpose of changing our state of incorporation from New York to Delaware. As result of the merger, the Company acquired all of the assets of OLB.com, including its intellectual property assets. In connection with the merger, each of the former common and preferred stockholders of OLB.com received five shares of our common stock in exchange for each outstanding share of OLB.com We currently offer monthly subscription packages which includes a health benefits package. These arrangements are generally renewable monthly and revenue is recognized over the renewal period. We also provide ecommerce development and consulting services on a project by project basis. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP 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 period. Actual results could differ from those estimates. In the opinion of management all adjustments, consisting of normal recurring items, considered necessary for a full presentation have been included. These unaudited financial statements should be read in conjunction with the audited financial statements and footnotes for the year ended December 31, 2015 included on the Company’s Form 10-K. The results of the nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year ending December 31, 2016. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control, and preventing and detecting fraud. Our system of internal accounting control is designed to assure, among other items, that: (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements that present fairly our financial condition, results of operations, and cash flows for the respective periods being presented. Liquidity and Dependency of Related Parties As of September 30, 2016, the Company had minimal revenue and a working capital deficiency of $257,906. One of our Directors and his affiliated company has funded the Company with related party loans, most of which have all been converted to common stock. During the nine months ended September 30, 2016, another $110,000 was loaned to the Company (Note 3). The Company plans to continue to use the financial resources of its related parties in the future, if necessary; however, there are no assurances that the Director, or the Company, will be in a financial position to do so. Despite the fact that the Director has confirmed in writing his intention to provide financial support, the Company does not have any written agreements now or in the past with the Director obligating him to fund the future debt or any other obligations. The Director is not otherwise under any legal obligation to provide the Company with capital. If the Director withdraws his financial support to enable the company to fund its current activities, management will be required to reduce the Company’s cash from operations by reducing operating costs. In addition, the Company is working to manage its current liabilities while it continues to make changes in operations to further improve its cash flow and liquidity position. Based upon current cash flow projections, management believes the Company will have sufficient capital resources to meet projected cash flow requirements through the year ended 2016. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 period. Actual results could differ from those estimates. Revenue and cost recognition The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company will recognize revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. Revenue is accounted for gross as a principal versus net as an agent. Revenue is recognized on a gross basis since our company has the risks and rewards of ownership, latitude in selection of vendors and pricing, and bears all credit risk. Costs are recorded at the time the related revenue is recorded. Payment processing costs are recorded in the period the costs are incurred and customer acquisition costs are comprised primarily of telemarketing costs and service costs and other additional benefit services. Membership Fees The Company recognizes revenues from membership fees for the sales of health-related discount benefit plans as earned as part of the ShopFast program. These arrangements are generally renewable monthly and revenue is recognized over the renewal period. As these products often include elements sold through contracts with third-party providers, the Company considers each contractual arrangement in accordance with the Revenue Recognition topic of the FASB ASC 605. The Company’s current contracts meet these requirements for reporting revenue on a gross basis. The Company records a reduction in revenue for refunds, chargeback’s from credit card companies, and allowances based upon actual history and management’s evaluation of current facts and circumstances. Stock-based Compensation We account for equity-based transactions with nonemployees under the provisions of ASC Topic No. 505-50, Equity-Based Payments to Non-Employees We account for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation—Stock Compensation, Recent Accounting Pronouncements The Company has reviewed other recently issued accounting pronouncements and plans to adopt those that are applicable to it. The Company does not expect the adoption of any other pronouncements to have an impact on its results of operations or financial position. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 3 - RELATED PARTY TRANSACTIONS During the nine months ended September 30, 2016. Mr. John Herzog, a majority shareholder, loaned the Company a total of $110,000. The loans are unsecured, are current and due at any time. The notes accrue interest at 18%. 12% of the interest is due and payable by direct deposit on the last day of each month. The remaining 6% is due at . Forward-Looking Statements The information in this report contains forward-looking statements. All statements other than statements of historical fact made in report are forward looking. In particular, the statements herein regarding industry prospects and future results of operations or financial position are forward-looking statements. These forward-looking statements can be identified by the use of words such as “believes,” “estimates,” “could,” “possibly,” “probably,” anticipates,” “projects,” “expects,” “may,” “will,” or “should” or other variations or similar words. No assurances can be given that the future results anticipated by the forward-looking statements will be achieved. Forward-looking statements reflect management’s current expectations and are inherently uncertain. Our actual results may differ significantly from management’s expectations. The following discussion and analysis should be read in conjunction with our unaudited financial statements, included herewith. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future, or that any conclusion reached herein will necessarily be indicative of actual operating results in the future. Such discussion represents only the best present assessment of our management. |
Summary of Significant Account9
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP 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 period. Actual results could differ from those estimates. In the opinion of management all adjustments, consisting of normal recurring items, considered necessary for a full presentation have been included. These unaudited financial statements should be read in conjunction with the audited financial statements and footnotes for the year ended December 31, 2015 included on the Company’s Form 10-K. The results of the nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year ending December 31, 2016. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control, and preventing and detecting fraud. Our system of internal accounting control is designed to assure, among other items, that: (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements that present fairly our financial condition, results of operations, and cash flows for the respective periods being presented. |
Liquidity and Dependency of Related Parties | Liquidity and Dependency of Related Parties As of September 30, 2016, the Company had minimal revenue and a working capital deficiency of $257,906. One of our Directors and his affiliated company has funded the Company with related party loans, most of which have all been converted to common stock. During the nine months ended September 30, 2016, another $110,000 was loaned to the Company (Note 3). The Company plans to continue to use the financial resources of its related parties in the future, if necessary; however, there are no assurances that the Director, or the Company, will be in a financial position to do so. Despite the fact that the Director has confirmed in writing his intention to provide financial support, the Company does not have any written agreements now or in the past with the Director obligating him to fund the future debt or any other obligations. The Director is not otherwise under any legal obligation to provide the Company with capital. If the Director withdraws his financial support to enable the company to fund its current activities, management will be required to reduce the Company’s cash from operations by reducing operating costs. In addition, the Company is working to manage its current liabilities while it continues to make changes in operations to further improve its cash flow and liquidity position. Based upon current cash flow projections, management believes the Company will have sufficient capital resources to meet projected cash flow requirements through the year ended 2016. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 period. Actual results could differ from those estimates. |
Revenue and cost recognition | Revenue and cost recognition The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company will recognize revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. Revenue is accounted for gross as a principal versus net as an agent. Revenue is recognized on a gross basis since our company has the risks and rewards of ownership, latitude in selection of vendors and pricing, and bears all credit risk. Costs are recorded at the time the related revenue is recorded. Payment processing costs are recorded in the period the costs are incurred and customer acquisition costs are comprised primarily of telemarketing costs and service costs and other additional benefit services. |
Membership Fees | Membership Fees The Company recognizes revenues from membership fees for the sales of health-related discount benefit plans as earned as part of the ShopFast program. These arrangements are generally renewable monthly and revenue is recognized over the renewal period. As these products often include elements sold through contracts with third-party providers, the Company considers each contractual arrangement in accordance with the Revenue Recognition topic of the FASB ASC 605. The Company’s current contracts meet these requirements for reporting revenue on a gross basis. The Company records a reduction in revenue for refunds, chargeback’s from credit card companies, and allowances based upon actual history and management’s evaluation of current facts and circumstances. |
Stock-based Compensation | Stock-based Compensation We account for equity-based transactions with nonemployees under the provisions of ASC Topic No. 505-50, Equity-Based Payments to Non-Employees We account for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation—Stock Compensation, |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has reviewed other recently issued accounting pronouncements and plans to adopt those that are applicable to it. The Company does not expect the adoption of any other pronouncements to have an impact on its results of operations or financial position. |
Background (Details)
Background (Details) | Sep. 30, 2016shares |
Background (Textual) | |
Shares received by former common and preferred stockholders in connection with merger | 5 |
Summary of Significant Accoun11
Summary of Significant Accounting Policies (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Summary of Significant Accounting Policies (Textual) | ||
Working capital deficiency | $ 257,906 | |
Note payable, related party | $ 110,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Related Party Transactions (Textual) | ||
Note payable, related party | $ 110,000 | |
Mr. John Herzog [Member] | ||
Related Party Transactions (Textual) | ||
Note payable, related party | $ 110,000 | |
Unsecured loans due description | The loans are unsecured, are current and due at any time. | |
Interest rate | 18.00% | |
Interest rate terms description | 12% of the interest is due and payable by direct deposit on the last day of each month. The remaining 6% is due at Maturity. |