Cornerworld (CWRLD) 10-Q 14 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 12, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Entity Registrant Name	Cornerworld Corp
Entity Central Index Key	1,338,242
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		162,937,110

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash	$ 88,097	$ 70,746
Accounts receivable, net	33,692	37,313
Prepaid expenses and other current assets	$ 7,472	65,132
Assets of discontinued operations		4,788
Total current assets	$ 129,261	177,979
Property and equipment, net		2,677
Other assets		7
TOTAL ASSETS	$ 129,261	180,663
Current liabilities:
Accounts payable	178,827	217,726
Accrued expenses	339,143	311,977
Notes payable related parties	$ 242,174	152,952
Lease payable, current portion		2,662
Deferred revenue		75,687
Other current liabilities		9,266
Liabilities of discontinued operations		29,534
Total current liabilities	$ 760,144	799,804
Long-term liabilities:
Notes payable related parties, net of current portion	96,784	186,006
Total liabilities	$ 856,928	$ 985,810
Commitments and Contingencies
Stockholders' equity (deficit):
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding
Common stock, $0.001 par value, 250,000,000 shares authorized; 162,937,110 shares issued and outstanding, at June 30, 2015 and December 31, 2014, respectively	$ 162,937	$ 162,937
Additional paid-in capital	11,809,607	11,806,865
Accumulated deficit	(12,700,211)	(12,774,949)
Total stockholders' equity (deficit)	(727,667)	(805,147)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ 129,261	$ 180,663

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Preferred stock, par value per share	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share	$ 0.001	$ 0.001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	162,937,110	162,937,110
Common stock, shares outstanding	162,937,110	162,937,110

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Consolidated Statements of Operations [Abstract]
Sales, net	$ 114,555	$ 178,085	$ 381,019	$ 432,914
Costs of goods sold	48,887	101,660	147,413	234,505
Gross profit	65,668	76,425	233,606	198,409
Expenses:
Selling, general and administrative expenses	$ 88,445	444,876	159,617	772,617
Depreciation		2,679	907	11,454
Total Operating expenses	$ 88,445	447,555	160,524	784,071
Operating income (loss)	(22,777)	(371,130)	73,082	(585,662)
Other income (expense), net:
Interest expense	$ (6,962)	$ (6,795)	(13,741)	(13,306)
Other income (expense), net			(380)	(3,313)
Total other expense, net	$ (6,962)	$ (6,795)	(14,121)	(16,619)
Income (loss) from continuing operations before income taxes	$ (29,739)	$ (377,925)	$ 58,961	$ (602,281)
Income taxes
Income (loss) from continuing operations	$ (29,739)	$ (377,925)	$ 58,961	$ (602,281)
Income from discontinued operations, net of tax		$ (4,543)	$ 15,777	$ (13,380)
Gain from discontinued operations, net of tax
Net loss	$ (29,739)	$ (382,468)	$ 74,738	$ (615,661)
Basic earnings (loss) per share from continuing operations	$ 0	$ 0	$ 0	$ 0
Basic earnings per share from discontinued operations	0	0	0	0
Basic earnings (loss) per share	0	0	0	0
Diluted loss per share from continuing operations	0	0	0	0
Diluted earnings per share from discontinued operations	0	0	0	0
Diluted earnings (loss) per share	$ 0	$ 0	$ 0	$ 0
Basic weighted average number shares outstanding	162,937,110	162,937,110	162,937,110	160,805,759
Diluted weighted average number shares outstanding	162,937,110	162,937,110	162,937,110	160,805,759

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Stockholders' Equity (Deficit) - 6 months ended Jun. 30, 2015 - USD ($)	Total	Common Shares [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2014	$ (805,147)	$ 162,937	$ 11,806,865	$ (12,774,949)
Balance, shares at Dec. 31, 2014		162,937,110
Stock-based compensation expense	2,742		$ 2,742
Net loss	74,738			$ 74,738
Balance at Jun. 30, 2015	$ (727,667)	$ 162,937	$ 11,809,607	$ (12,700,211)
Balance, shares at Jun. 30, 2015		162,937,110

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows from Operating Activities
Net income (loss)	$ 74,738	$ (615,661)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation	907	11,454
Provision for doubtful accounts	15,105	50,875
Stock-based compensation	2,742	5,765
Changes in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable	(11,484)	34,172
Prepaid expenses and other current assets	57,660	$ 74,596
Other assets	7
Accounts payable	(38,899)	$ 54,843
Accrued expenses	27,166	(53,633)
Deferred revenue	(75,687)	$ 1,905
Other liabilities	(9,266)
Changes in assets and liabilities of discontinued operations	(24,746)	$ 17,565
Net cash provided by (used in) operating activities	$ 18,243	(418,119)
Cash Flows from Investing Activities
Purchases of property and equipment		(2,597)
Net cash used in investing activities		(2,597)
Cash Flows from Financing Activities
Payments on capital leases	$ (892)	$ (2,571)
Principal payments on related party notes payable
Principal payments on notes payable
Net cash used in financing activities	$ (892)	$ (2,571)
Net increase (decrease) in cash	17,351	(423,287)
Cash at beginning of period	70,746	857,954
Cash at end of period	$ 88,097	$ 434,667
Cash paid for:
Interest
Income taxes

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Basis of Presentation [Abstract]
Basis of Presentation	1 . Basis of Presentation Interim Unaudited Condensed Consolidated Financial Statements The unaudited interim condensed consolidated financial statements of CornerWorld Corporation (“CornerWorld” or the “Company”) as of June 30, 2015 and for the three month and six month periods ended June 30, 2015 and 2014 contained in this Quarterly Report (collectively, the “Unaudited Interim Condensed Consolidated Financial Statements”) were prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for all periods presented. The results of operations for the three and six month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the entire fiscal year. The accompanying Unaudited Interim Condensed Consolidated Financial Statements have been prepared in accordance with the regulations for interim financial information of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited accompanying statements of financial condition and related interim statements of operations, cash flows, and stockholders' deficit include all adjustments (which consist only of normal and recurring adjustments) considered necessary for a fair presentation in conformity with U.S. GAAP. These Unaudited Interim Condensed Consolidated Financial Statements should be read in conjunction with the CornerWorld consolidated financial statements as of and for the year ended December 31, 2014, as filed with the SEC on Form 10-K. Organization The Company was incorporated in the State of Nevada, on November 9, 2004. Effective May 1, 2007, the Company changed its name to CornerWorld Corporation. The Company provides certain marketing services through its operating subsidiary Enversa Companies LLC, a Texas limited liability company (“Enversa”). CornerWorld is the sole member of Enversa. Enversa is a technology-oriented direct response marketing company. Enversa identifies qualified leads for advertisers thereby connecting them with potential consumers. Enversa utilizes a pay-for-performance pricing model which is appealing to clients because it ensures that they are billed solely for campaign performance. Enversa also provides search engine optimization services (“SEO”), domain leasing and website management services on a recurring monthly basis. The Company provides telecommunications services, including telephony and internet services, through its wholly-owned subsidiary, Woodland Holdings Corporation (“Woodland Holdings”) who provides such services through its wholly owned subsidiaries Phone Services and More, L.L.C., doing business as Visitatel (“PSM”) and T2 Communications, L.L.C. (“T2”). As a provider of Internet and VoIP services, T2's offerings include: phone lines, Internet connections, long distance and toll-free services. T2 Communications is a Competitive Local Exchange Carrier (CLEC) that generates revenues via the sale of long-distance minutes to its customers. T2 also generates commissions from its carrier partners related to the provision of long-distance minutes to its customers. .PSM, also a CLEC, is a wholesale long distance service provider to the carrier community and large commercial users of minutes. PSM generates revenues via earning commissions from serving as a broker for services provided by T2. T2 and PSM's CELC licenses permit them to operate in the lucrative telecommunications industry but their respective business models do not require any significant investments in property plant and equipment due to the fact that they are able to outsource all switching and technology needs to third parties. On March 31, 2015, the Company sold T2's Michigan-based customers as well as all of T2's Michigan network operations and contracts to an unrelated third party. See also Note 3, Discontinued Operations, for more information here. The Company's year-end is December 31 st Spinoff On August 13, 2015, the Company's Board of Directors formally approved a plan whereby the Company will split Woodland Holdings, its telecommunications services segment, in its entirety, into a separate reporting entity. Assuming the spin-off is successful, current CornerWorld shareholders of record as of September 30, 2015 (the “Record Date”) will receive shares in Woodland Holdings in their pro-rata ownership percentage of CornerWorld. For every share owned by the Company's shareholders as of the Record Date, those same shareholders will be issued 1 share of the Woodland Holdings' common stock. Absent any comments from the SEC, the Registration Statement will become effective on or about October 13, 2015 after which point Woodland Holdings' shares are expected to be free-trading on the OTCXB exchange. As previously disclosed, on November 5, 2014, the Company announced that it had signed a non-binding letter of intent (the “LOI”) to merge its interests with another entity. The LOI expired of its own accord on June 30, 2015 and it has not been renewed and, at this time, the Company has broken off all merger discussions with the other entity.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies This summary of significant accounting policies is presented to assist in understanding the Company's condensed consolidated financial statements. The condensed consolidated financial statements and notes are representations of the Company's management who is responsible for their integrity and objectivity. These accounting policies conform to US GAAP and have been consistently applied in the preparation of the financial statements. The financial statements are stated in United States of America dollars. Receivables Accounts receivable include uncollateralized customer obligations due under normal trade terms requiring payment within 30-60 days from invoice date. Payments of accounts receivable are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices. The carrying amount of accounts receivable is reduced by a valuation allowance for doubtful accounts that reflects management's best estimate of the amounts that will not be collected based on historical collection trends. The allowance for doubtful accounts was $ 35,473 80,790 Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of the contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include, among others, the realizability of accounts receivable, recoverability of property and equipment and valuation of stock-based compensation and deferred tax assets. Actual results could differ from these estimates. Fair Value of Financial Instruments Accounting Standards Codification (“ASC”) No. 850 requires disclosure of fair value information about financial instruments when it is practicable to estimate that value. The carrying amount of the Company's cash and cash equivalents, accounts receivable, accounts receivable-related party, accounts payable, accounts payable-related party, accrued liabilities, and notes payable approximate their estimated fair values due to their short-term maturities. Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial statements. Revenue Recognition The Company recognizes revenue in accordance with Staff Accounting Bulletin (“SAB”) No. 101, “Revenue Recognition in Financial Statements,” as revised by SAB 104. As such, the Company recognizes revenue when persuasive evidence of an arrangement exists, title transfer has occurred, the price is fixed or readily determinable and collectibility is probable. Sales are recorded net of sales discounts. At Enversa, revenue is recognized along with the related cost of revenue as leads are delivered. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. Amounts billed to clients in advance of delivery of leads are classified under current liabilities as deferred revenue. Revenue is also recognized monthly as SEO services are provided or in the form of revenues from domain leases. For T2 Communications, the majority of revenue is derived from month-to-month, bundled service contracts for the phone and internet services used by each customer. Revenue is recognized as the services are provided. Income Taxes The Company accounts for income tax in accordance with ASC No. 740 which requires the use of the asset and liability method of accounting of income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Long-Lived Assets The Company accounts for its long-lived assets in accordance with the ASC. The Company's only long-lived assets are a patent and property and equipment. The ASC requires a company to assess the recoverability of its long-lived assets whenever events and circumstances indicate the carrying value of an asset or asset group may not be recoverable from estimated future cash flows expected to result from its use and eventual disposition. The patent, which was issued on March 4, 2014, is currently being valued at its net realizable value of $ 0 Stock-Based Compensation The Company accounts for awards made under its two stock-based compensation plans pursuant to the fair value provisions of ASC No. 718. ASC No. 718 requires the recognition of stock-based compensation expense, using a fair-value based method, for costs related to all share-based payments including stock options. ASC No. 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The Company accounts for stock-based compensation in accordance with ASC No. 718 and estimates its fair value based on using the Black-Scholes option pricing model. The Company's determination of fair value of share-based payment awards is made as of their respective dates of grant using that option pricing model and is affected by the Company's stock price as well as a number of subjective assumptions. These variables include, but are not limited to, the Company's expected stock price volatility over the term of the awards and actual and projected employee stock option exercise behavior. The expected term of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. The risk-free rate selected to value any particular grant is based on the U.S. Treasury rate that corresponds to the pricing term of the grant effective as of the date of the grant. The expected volatility is based on the historical volatility of the Company's stock price. These factors could change in the future, affecting the determination of stock-based compensation expense in future periods. The Black-Scholes option pricing model was developed for use in estimating the value of traded options that have no vesting or hedging restrictions and are fully transferable. Because the Company's options have certain characteristics that are significantly different from traded options, the existing valuation models may not provide an accurate measure of the fair value of the Company's options. Although the fair value of the Company's options is determined in accordance with ASC No. 718 using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. The calculated compensation cost is recognized on a straight-line basis over the vesting period of the options. See also Note 5 Stock Based Compensation, for more details. Concentration of credit risk Credit is extended based on an evaluation of the customer's financial condition, and the Company does not require collateral. Write-offs of accounts receivable have historically been nominal. Approximately 49.3 48.3 45.5 49.0 Reclassifications Certain prior year accounts have been reclassified to conform to the current year's presentation.

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2015
Discontinued Operations [Abstract]
Discontinued Operations	3. Discontinued Operations On March 31, 2015, the Company signed an agreement whereby it completed the sale of T2's Michigan based operations on for $ 15,000 The following is a summary of the operating results of our discontinued operations: For the Three Months Ended June 30, For the Six Months 2015 2014 2015 2014 Sales, net $ — $ 25,056 $ 39,185 $ 49,626 Income (loss) from discontinued operations before income taxes — (4,543 ) 15,777 (13,380 ) Income taxes — — — — Net income (loss) from discontinued operations $ — $ (4,543 ) $ 15,777 $ (13,380 )

Debt

Debt	6 Months Ended
	Jun. 30, 2015
Debt [Abstract]
Debt	4. Debt As of June 30, December 31, Long-term Debt Note payable to CEO; the note matures July 31, 2016. At June 30, 2015, the interest rate was 6.25 338,958 338,958 Total debt 338,958 338,958 Less current portion of long-term debt (242,174 ) (152,952 ) Non-current portion of long-term debt $ 96,784 $ 186,006 The note payable, due to the Company's CEO, contains no restrictive covenants or events of default other than non-payment.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	5. Commitments and Contingencies Litigation The Company is occasionally involved in other litigation matters relating to claims arising from the ordinary course of business. The Company's management believes that there are no claims or actions pending or threatened against the Company, the ultimate disposition of which would have a material adverse effect on our business, results of operations and financial condition.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2015
Stock-Based Compensation [Abstract]
Stock-Based Compensation	6. Stock-Based Compensation Incentive Stock Plan On August 17, 2007, the Company's board of directors adopted and implemented the Company's 2007 Incentive Stock Plan. Under the Incentive Stock Plan, the Company is authorized to issue 4,000,000 shares Any Incentive Stock Option granted to an employee of the Company shall become exercisable over a period of no longer than 5 years 20 % 20 % 5 years The Company issued no options pursuant to this plan during the three and six month periods ended June 30, 2015. Stock Compensation Plan On August 17, 2007, the Company's board of directors adopted and implemented the Company's 2007 Stock 4,000,000 shares Awards granted to a participant of the Company shall become exercisable over a period of no longer than 5 years The Company issued no stock options pursuant to this plan during the three and six month periods ended June 30, 2015. A summary of the shares reserved for grant and awards available for grant under each Stock Plan is as follows: June 30, 2015 Shares Reserved Awards Available Incentive Stock Plan 4,000,000 3,795,000 Stock Compensation Plan 4,000,000 2,375,000 8,000,000 6,170,000 The Company issues awards to employees, qualified consultants and directors that generally vest over time based solely on continued employment or service during the related vesting period and are exercisable over a five ten The fair value of each stock-based award is estimated on the grant date using the Black-Scholes option-pricing model. Expected volatilities are based on the historical volatility of the Company's stock price. The expected term of options granted subsequent to the adoption ASC 718 is derived using the simplified method as defined in the SEC's SAB No. 107. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury interest rates in effect at the time of grant. The fair value of options granted was estimated using the following weighted-average assumptions: For the three month periods Ended June 30 For the six month periods 2015 2014 2015 2014 Expected term (in years) — 5.0 — 5.0 Expected volatility — % 125 % — % 125 % Risk-free interest rate — % 1.6 % — % 1.5 % Dividend yield — % 0.00 % — % 0.00 % A summary of activity under the Stock Plans and changes during the three month period ended June 30, 2015 is presented below: Weighted-Average Shares Exercise Remaining Aggregate Outstanding at December 31, 2014 3,550,000 $ 0.13 3.94 $ — Issued — — — — Cancelled/forfeited (1,720,000 ) 0.13 Outstanding at June 30, 2015 1,830,000 $ 0.12 3.33 $ — Options expected to vest 1,830,000 $ 0.12 3.33 $ — Options exercisable at end of period 667,500 $ 0.15 2.46 $ — For the six month periods ended June 30, 2015 and 2014, the Company recognized $ 2,742 5,765 $ 10,363 3.33 weighted

Business Segments

Business Segments	6 Months Ended
	Jun. 30, 2015
Business Segments [Abstract]
Business Segments	7 . Business Segments Our business consists primarily of two Marketing Communications Corporate Consolidated Three Months Ended June 30, 2015 Revenue $ 102,264 $ 12,291 $ — $ 114,555 Income (loss) from continuing operations before tax 23,982 ) 19,158 (72,879 ) (29,739 ) Net income (loss) 23,982 ) 19,158 (72,879 ) (29,739 ) Total assets 22,274 52,646 54,341 129,261 Depreciation — — — — Marketing Communications Corporate Consolidated Three Months Ended June 30, 2014 Revenue $ 155,338 $ 22,747 $ — $ 178,085 Loss from continuing operations before tax (34,518 ) (43,408 ) (299,999 ) (377,925 ) Net loss (34,518 ) (47,951 ) (299,999 ) (382,468 ) Total assets 133,765 92,063 356,439 582,267 Depreciation — 2,678 1 2,679 Marketing Communications Corporate Consolidated Six Months Ended June 30, 2015 Revenue $ 338,107 $ 42,912 $ — $ 381,019 Income (loss) from continuing operations before tax 112,765 98,701 (152,505 ) 58,961 Net income (loss) 112,765 114,478 (152,505 ) 74,738 Total assets 22,274 52,646 54,341 129,261 Depreciation — 907 — 907 Marketing Communications Corporate Consolidated Six Months Ended June 30, 2014 Revenue $ 363,866 $ 69,048 $ — $ 432,914 Loss from continuing operations before tax (24,037 ) (43,704 ) (534,540 ) (602,281 ) Net loss (24,037 ) (57,084 ) (534,540 ) (615,661 ) Total assets 133,765 92,063 356,439 582,267 Depreciation — 5,355 6,099 11,454 There were no intersegment

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	8. Related Party Transactions On March 30, 2011, the Company entered into a subordinated $ 389,942 6.25 12,746 12,746 6,962 6,795 13,741 13,306 338,958 The Company is party to a lease agreement with 13101 Preston Road, LP pursuant to which it leases office space for its corporate headquarters. The limited partners of 13101 Preston Road, LP are trusts controlled by the family of the Company's Chief Executive Officer. The Company paid $ 7,500 $ 15,000 In addition, the Company provides accounting, human resources and certain IT services to an entity controlled by the family of the Company's Chief Executive Officer for $ 5,000 15,000 $ 30,000

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	9. Subsequent Events Subsequent to the date of the issuance of these statements, there were no occurrences that had a material impact on the financial statements.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policy)	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Receivables	Receivables Accounts receivable include uncollateralized customer obligations due under normal trade terms requiring payment within 30-60 days from invoice date. Payments of accounts receivable are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices. The carrying amount of accounts receivable is reduced by a valuation allowance for doubtful accounts that reflects management's best estimate of the amounts that will not be collected based on historical collection trends. The allowance for doubtful accounts was $ 35,473 80,790
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of the contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include, among others, the realizability of accounts receivable, recoverability of property and equipment and valuation of stock-based compensation and deferred tax assets. Actual results could differ from these estimates.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Accounting Standards Codification (“ASC”) No. 850 requires disclosure of fair value information about financial instruments when it is practicable to estimate that value. The carrying amount of the Company's cash and cash equivalents, accounts receivable, accounts receivable-related party, accounts payable, accounts payable-related party, accrued liabilities, and notes payable approximate their estimated fair values due to their short-term maturities. Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial statements.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with Staff Accounting Bulletin (“SAB”) No. 101, “Revenue Recognition in Financial Statements,” as revised by SAB 104. As such, the Company recognizes revenue when persuasive evidence of an arrangement exists, title transfer has occurred, the price is fixed or readily determinable and collectibility is probable. Sales are recorded net of sales discounts. At Enversa, revenue is recognized along with the related cost of revenue as leads are delivered. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. Amounts billed to clients in advance of delivery of leads are classified under current liabilities as deferred revenue. Revenue is also recognized monthly as SEO services are provided or in the form of revenues from domain leases. For T2 Communications, the majority of revenue is derived from month-to-month, bundled service contracts for the phone and internet services used by each customer. Revenue is recognized as the services are provided.
Income Taxes	Income Taxes The Company accounts for income tax in accordance with ASC No. 740 which requires the use of the asset and liability method of accounting of income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
Long-Lived Assets	Long-Lived Assets The Company accounts for its long-lived assets in accordance with the ASC. The Company's only long-lived assets are a patent and property and equipment. The ASC requires a company to assess the recoverability of its long-lived assets whenever events and circumstances indicate the carrying value of an asset or asset group may not be recoverable from estimated future cash flows expected to result from its use and eventual disposition. The patent, which was issued on March 4, 2014, is currently being valued at its net realizable value of $ 0
Stock-Based Compensation	Stock-Based Compensation The Company accounts for awards made under its two stock-based compensation plans pursuant to the fair value provisions of ASC No. 718. ASC No. 718 requires the recognition of stock-based compensation expense, using a fair-value based method, for costs related to all share-based payments including stock options. ASC No. 718 requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The Company accounts for stock-based compensation in accordance with ASC No. 718 and estimates its fair value based on using the Black-Scholes option pricing model. The Company's determination of fair value of share-based payment awards is made as of their respective dates of grant using that option pricing model and is affected by the Company's stock price as well as a number of subjective assumptions. These variables include, but are not limited to, the Company's expected stock price volatility over the term of the awards and actual and projected employee stock option exercise behavior. The expected term of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. The risk-free rate selected to value any particular grant is based on the U.S. Treasury rate that corresponds to the pricing term of the grant effective as of the date of the grant. The expected volatility is based on the historical volatility of the Company's stock price. These factors could change in the future, affecting the determination of stock-based compensation expense in future periods. The Black-Scholes option pricing model was developed for use in estimating the value of traded options that have no vesting or hedging restrictions and are fully transferable. Because the Company's options have certain characteristics that are significantly different from traded options, the existing valuation models may not provide an accurate measure of the fair value of the Company's options. Although the fair value of the Company's options is determined in accordance with ASC No. 718 using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. The calculated compensation cost is recognized on a straight-line basis over the vesting period of the options. See also Note 5 Stock Based Compensation, for more details.
Concentration of credit risk	Concentration of credit risk Credit is extended based on an evaluation of the customer's financial condition, and the Company does not require collateral. Write-offs of accounts receivable have historically been nominal. Approximately 49.3 48.3 45.5 49.0
Reclassifications	Reclassifications Certain prior year accounts have been reclassified to conform to the current year's presentation.

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2015
Discontinued Operations [Abstract]
Summary of the operating results of our discontinued operations	For the Three Months Ended June 30, For the Six Months 2015 2014 2015 2014 Sales, net $ — $ 25,056 $ 39,185 $ 49,626 Income (loss) from discontinued operations before income taxes — (4,543 ) 15,777 (13,380 ) Income taxes — — — — Net income (loss) from discontinued operations $ — $ (4,543 ) $ 15,777 $ (13,380 )

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Debt [Abstract]
Schedule of Long-term Debt	As of June 30, December 31, Long-term Debt Note payable to CEO; the note matures July 31, 2016. At June 30, 2015, the interest rate was 6.25 338,958 338,958 Total debt 338,958 338,958 Less current portion of long-term debt (242,174 ) (152,952 ) Non-current portion of long-term debt $ 96,784 $ 186,006

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Stock-Based Compensation [Abstract]
Schedule of Shares Reserved for Grant and Awards Available for Grant	June 30, 2015 Shares Reserved Awards Available Incentive Stock Plan 4,000,000 3,795,000 Stock Compensation Plan 4,000,000 2,375,000 8,000,000 6,170,000
Schedule of Weighted-Average Assumptions	For the three month periods Ended June 30 For the six month periods 2015 2014 2015 2014 Expected term (in years) — 5.0 — 5.0 Expected volatility — % 125 % — % 125 % Risk-free interest rate — % 1.6 % — % 1.5 % Dividend yield — % 0.00 % — % 0.00 %
Schedule of Stock Plan Activity	Weighted-Average Shares Exercise Remaining Aggregate Outstanding at December 31, 2014 3,550,000 $ 0.13 3.94 $ — Issued — — — — Cancelled/forfeited (1,720,000 ) 0.13 Outstanding at June 30, 2015 1,830,000 $ 0.12 3.33 $ — Options expected to vest 1,830,000 $ 0.12 3.33 $ — Options exercisable at end of period 667,500 $ 0.15 2.46 $ —

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Jun. 30, 2015
Business Segments [Abstract]
Schedule of Financial Data by Reporting Segment	Marketing Communications Corporate Consolidated Three Months Ended June 30, 2015 Revenue $ 102,264 $ 12,291 $ — $ 114,555 Income (loss) from continuing operations before tax 23,982 ) 19,158 (72,879 ) (29,739 ) Net income (loss) 23,982 ) 19,158 (72,879 ) (29,739 ) Total assets 22,274 52,646 54,341 129,261 Depreciation — — — — Marketing Communications Corporate Consolidated Three Months Ended June 30, 2014 Revenue $ 155,338 $ 22,747 $ — $ 178,085 Loss from continuing operations before tax (34,518 ) (43,408 ) (299,999 ) (377,925 ) Net loss (34,518 ) (47,951 ) (299,999 ) (382,468 ) Total assets 133,765 92,063 356,439 582,267 Depreciation — 2,678 1 2,679 Marketing Communications Corporate Consolidated Six Months Ended June 30, 2015 Revenue $ 338,107 $ 42,912 $ — $ 381,019 Income (loss) from continuing operations before tax 112,765 98,701 (152,505 ) 58,961 Net income (loss) 112,765 114,478 (152,505 ) 74,738 Total assets 22,274 52,646 54,341 129,261 Depreciation — 907 — 907 Marketing Communications Corporate Consolidated Six Months Ended June 30, 2014 Revenue $ 363,866 $ 69,048 $ — $ 432,914 Loss from continuing operations before tax (24,037 ) (43,704 ) (534,540 ) (602,281 ) Net loss (24,037 ) (57,084 ) (534,540 ) (615,661 ) Total assets 133,765 92,063 356,439 582,267 Depreciation — 5,355 6,099 11,454

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Mar. 04, 2014
Summary of Significant Accounting Policies [Abstract]
Allowance for doubtful accounts	$ 35,473		$ 35,473		$ 80,790
Property and equipment
Value of patent issued						$ 0
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Percentage of total revenue from largest customer	49.30%	48.30%	45.50%	49.00%

Discontinued Operations (Narrat

Discontinued Operations (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Discontinued Operations [Abstract]
Proceeds from sale of business			$ 15,000
Gain from discontinued operations, net of tax

Discontinued Operations (Summar

Discontinued Operations (Summary of Operating Results of Our Discontinued Operations) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Discontinued Operations [Abstract]
Sales, net		$ 25,056	$ 39,185	$ 49,626
Income (loss) from discontinued operations before income taxes		$ (4,543)	$ 15,777	$ (13,380)
Income taxes
Net income (loss) from discontinued operations		$ (4,543)	$ 15,777	$ (13,380)

Debt (Details)

Debt (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Total debt	$ 338,958	$ 338,958
Less current portion of long-term debt	(242,174)	(152,952)
Non-current portion of long-term debt	96,784	186,006
Scott Beck, Chairman and Chief Executive Officer [Member]
Debt Instrument [Line Items]
Total debt	$ 338,958	$ 338,958
Maturity date	Jul. 31, 2016
Interest rate	6.25%

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issued
Stock-based compensation	$ 2,742	$ 5,765
Unrecognized compensation cost related to stock options	$ 10,363
Unrecognized compensation cost, weighted-average recognition period, years	3 years 3 months 29 days
Incentive Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	4,000,000
Options expiration period	5 years
Incentive Stock Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares that vest annually	20.00%
Incentive Stock Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
Stock Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	4,000,000
Stock Compensation Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award term length	5 years
Stock Compensation Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
Award term length	10 years

Stock-Based Compensation (Sched

Stock-Based Compensation (Schedule of Shares Reserved) (Details)	Jun. 30, 2015shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Reserved for Grant	8,000,000
Awards Available for Grant	6,170,000
Incentive Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Reserved for Grant	4,000,000
Awards Available for Grant	3,795,000
Stock Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Reserved for Grant	4,000,000
Awards Available for Grant	2,375,000

Stock-Based Compensation (Sch27

Stock-Based Compensation (Schedule of Assumptions) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock-Based Compensation [Abstract]
Expected term (in years)		5 years		5 years
Expected volatility		125.00%		125.00%
Risk-free interest rate		1.60%		1.50%
Dividend yield		0.00%		0.00%

Stock-Based Compensation (Sch28

Stock-Based Compensation (Schedule of Stock Plan Activity) (Details) - USD ($) None in scaling factor is -9223372036854775296	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Shares
Outstanding, beginning	3,550,000
Issued
Cancelled/forfeited	(1,720,000)
Outstanding, ending	1,830,000	3,550,000
Options expected to vest	1,830,000
Options exercisable at end of period	667,500
Exercise Price
Outstanding, beginning	$ 0.13
Issued
Cancelled/forfeited	$ 0.13
Outstanding, ending	0.12	$ 0.13
Options expected to vest	0.12
Options exercisable at end of period	$ 0.15
Remaining Contractual Term
Remaining contractual term, options issued
Remaining contractual term, options outstanding	3 years 3 months 29 days	3 years 11 months 8 days
Remaining contractual term, options expected to vest	3 years 3 months 29 days
Remaining contractual term, options exercisable at end of period	2 years 5 months 16 days
Aggregate Intrinsic Value
Outstanding, beginning
Issued
Outstanding, ending
Options expected to vest
Options exercisable at end of period

Business Segments (Details)

Business Segments (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)segments	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Segment Reporting Information [Line Items]
Number of business segments | segments			2
Revenue	$ 114,555	$ 178,085	$ 381,019	$ 432,914
Income (loss) from continuing operations before tax	(29,739)	(377,925)	58,961	(602,281)
Net income (loss)	(29,739)	(382,468)	74,738	(615,661)
Total assets	$ 129,261	582,267	129,261	582,267	$ 180,663
Depreciation and amortization		2,679	907	11,454
Marketing Services [Member]
Segment Reporting Information [Line Items]
Revenue	$ 102,264	155,338	338,107	363,866
Income (loss) from continuing operations before tax	23,982	(34,518)	112,765	(24,037)
Net income (loss)	23,982	(34,518)	112,765	(24,037)
Total assets	$ 22,274	$ 133,765	$ 22,274	$ 133,765
Depreciation and amortization
Communications Services [Member]
Segment Reporting Information [Line Items]
Revenue	$ 12,291	$ 22,747	$ 42,912	$ 69,048
Income (loss) from continuing operations before tax	19,158	(43,408)	98,701	(43,704)
Net income (loss)	19,158	(47,951)	114,478	(57,084)
Total assets	$ 52,646	92,063	52,646	92,063
Depreciation and amortization		$ 2,678	$ 907	$ 5,355
Corporate Overhead [Member]
Segment Reporting Information [Line Items]
Revenue
Income (loss) from continuing operations before tax	$ (72,879)	$ (299,999)	$ (152,505)	$ (534,540)
Net income (loss)	(72,879)	(299,999)	(152,505)	(534,540)
Total assets	$ 54,341	356,439	$ 54,341	356,439
Depreciation and amortization		$ 1		$ 6,099

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Mar. 30, 2011
Scott Beck, Chairman and Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Debt instrument, face amount					$ 389,942
Interest rate	6.25%		6.25%
Periodic installments amount			$ 12,746
Periodic payments, frequency			Monthly
Installments payments start date			Dec. 31, 2014
Interest expense	$ 6,962	$ 6,795	$ 13,741	$ 13,306
Notes payable, related parties	338,958		338,958
13101 Preston Road, LP [Member]
Related Party Transaction [Line Items]
Rental expense	7,500	7,500	15,000	15,000
Entity Controlled by CEO's Family [Member]
Related Party Transaction [Line Items]
Service revenue, monthly amount	5,000		5,000
Revenue from accounting, human resources, and IT services	$ 15,000	$ 15,000	$ 30,000	$ 30,000