Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 11, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Snap Interactive, Inc | ' |
Entity Central Index Key | '0001355839 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 39,182,826 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $555,745 | $927,352 |
Restricted cash | 385,422 | 490,315 |
Credit card holdback receivable | 686,016 | 232,264 |
Accounts receivable, net of allowances and reserves of $33,653 and $37,850, respectively | 276,881 | 385,370 |
Prepaid expense and other current assets | 132,916 | 114,863 |
Total current assets | 2,036,980 | 2,150,164 |
Fixed assets and intangible assets, net | 439,320 | 522,462 |
Notes receivable | 122,749 | 170,566 |
Investments | 150,000 | 100,000 |
Total assets | 2,749,049 | 2,943,192 |
Current liabilities: | ' | ' |
Accounts payable | 949,854 | 861,730 |
Accrued expenses and other current liabilities | 485,858 | 671,142 |
Promissory notes | 400,000 | ' |
Deferred subscription revenue | 1,958,767 | 1,826,771 |
Deferred advertising revenue | 446,667 | 300,000 |
Total current liabilities | 4,241,146 | 3,659,643 |
Long term deferred rent | ' | 12,058 |
Warrant liability | 70,275 | 140,550 |
Total liabilities | 4,311,421 | 3,812,251 |
Stockholders' equity (deficit): | ' | ' |
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding | ' | ' |
Common stock, $0.001 par value, 100,000,000 shares authorized, 49,507,826 and 49,987,826 shares issued, respectively, and 39,182,826 and 39,132,826 shares outstanding, respectively | 39,183 | 39,133 |
Additional paid-in capital | 11,312,617 | 10,813,205 |
Accumulated deficit | -12,914,172 | -11,721,397 |
Total stockholders' equity (deficit) | -1,562,372 | -869,059 |
Total liabilities and stockholders' equity (deficit) | $2,749,049 | $2,943,192 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Balance Sheets [Abstract] | ' | ' |
Allowances and reserves on Accounts receivables | $33,653 | $37,850 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 49,507,826 | 49,987,826 |
Common stock, shares outstanding | 39,182,826 | 39,132,826 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues: | ' | ' | ' | ' |
Subscription revenue | $3,151,002 | $3,150,319 | $6,290,022 | $6,578,210 |
Advertising revenue | 299,008 | 1,670 | 452,341 | 43,339 |
Total revenues | 3,450,010 | 3,151,989 | 6,742,363 | 6,621,549 |
Costs and expenses: | ' | ' | ' | ' |
Programming, hosting and technology expense | 669,795 | 1,339,930 | 1,612,206 | 2,701,321 |
Compensation expense | 864,859 | 1,078,536 | 1,634,262 | 1,899,606 |
Professional fees | 262,876 | 206,703 | 513,031 | 473,807 |
Advertising and marketing expense | 1,110,726 | 952,248 | 2,582,937 | 2,083,929 |
General and administrative expense | 795,854 | 1,118,700 | 1,659,272 | 2,264,725 |
Total costs and expenses | 3,704,110 | 4,696,117 | 8,001,708 | 9,423,388 |
Loss from operations | -254,100 | -1,544,128 | -1,259,345 | -2,801,839 |
Interest income (expense), net | -5,578 | 1,440 | -3,705 | 3,106 |
Gain on change in fair value of warrants | ' | 70,275 | 70,275 | 1,171,250 |
Loss before provision for income taxes | -259,678 | -1,472,413 | -1,192,775 | -1,627,483 |
Provision for income taxes | ' | ' | ' | ' |
Net loss | ($259,678) | ($1,472,413) | ($1,192,775) | ($1,627,483) |
Net loss per common share: | ' | ' | ' | ' |
Basic and diluted | ($0.01) | ($0.04) | ($0.03) | ($0.04) |
Weighted average number of common shares used in calculating net loss per common share: | ' | ' | ' | ' |
Basic and diluted | 39,152,713 | 38,932,826 | 39,155,340 | 38,920,671 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit) (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance at Dec. 31, 2013 | ($869,059) | $39,133 | $10,813,205 | ($11,721,397) |
Balance, shares at Dec. 31, 2013 | ' | 39,132,826 | ' | ' |
Shares issued for consulting services | ' | 50 | -50 | ' |
Shares issued for consulting services, shares | ' | 50,000 | ' | ' |
Stock-based compensation expense for restricted stock awards | 418,679 | ' | 418,679 | ' |
Stock-based compensation expense for stock options | 76,033 | ' | 76,033 | ' |
Warrants issued for debt issuance cost | 4,750 | ' | 4,750 | ' |
Net loss | -1,192,775 | ' | ' | -1,192,775 |
Balance at Jun. 30, 2014 | ($1,562,372) | $39,183 | $11,312,617 | ($12,914,172) |
Balance, shares at Jun. 30, 2014 | ' | 39,182,826 | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities: | ' | ' |
Net loss | ($1,192,775) | ($1,627,483) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 86,873 | 85,563 |
Stock-based compensation expense | 494,712 | 445,069 |
Gain on change in fair value of warrants | -70,275 | -1,171,250 |
Changes in operating assets and liabilities: | ' | ' |
Decrease (increase) in restricted cash | 104,893 | -270,211 |
Decrease (increase) in credit card holdback receivable | -453,752 | 30,369 |
Decrease (increase) in accounts receivable | 108,489 | -13,163 |
Decrease (increase) in prepaid expenses and other current assets | -13,303 | 34,688 |
Increase (decrease) in accounts payable, accrued expenses and other current liabilities | -89,913 | 341,601 |
Decrease in deferred rent | -19,306 | -14,587 |
Increase (decrease) in deferred subscription revenue | 131,996 | -492,527 |
Increase in deferred advertising revenue | 146,667 | ' |
Net cash used in operating activities | -765,694 | -2,651,931 |
Cash flows from investing activities: | ' | ' |
Purchase of fixed assets | -3,731 | -35,550 |
Purchase of non-marketable equity securities | -50,000 | -50,000 |
Repayment of notes receivable issued to employees and accrued interest | 47,818 | -2,382 |
Net cash used in investing activities | -5,913 | -87,932 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of promissory notes | 400,000 | ' |
Net cash provided by financing activities | 400,000 | ' |
Decrease in cash and cash equivalents | -371,607 | -2,739,863 |
Balance of cash and cash equivalents at beginning of period | 927,352 | 5,357,596 |
Balance of cash and cash equivalents at end of period | 555,745 | 2,617,733 |
Supplemental disclosure of cash flow information: | ' | ' |
AYI.com domain name purchase in exchange for 100,000 shares of common stock | ' | 100,000 |
Warrants issued for debt issuance costs | $4,750 | ' |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Parenthetical) | 6 Months Ended |
Jun. 30, 2014 | |
Statement of Cash Flows [Abstract] | ' |
Shares of common stock issued in exchange of AYI.com domain | 100,000 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements include Snap Interactive, Inc. and its wholly owned subsidiaries, eTwine, Inc. and Snap Mobile Limited (collectively, the “Company”). The condensed consolidated financial statements included in this report have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. The Company has not included certain information normally included in annual financial statements pursuant to those rules and regulations, although it believes that the disclosure included herein is adequate to make the information presented not misleading. | |
The financial statements contained herein should be read in conjunction with the Company’s audited consolidated financial statements and the related notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 5, 2014. | |
In the opinion of management, the accompanying unaudited condensed consolidated financial information contains all normal and recurring adjustments necessary to fairly present the consolidated financial condition, results of operations, and changes in cash flows of the Company for the interim periods presented. The Company’s historical results are not necessarily indicative of future operating results and the results for the six months ended June 30, 2014 are not necessarily indicative of results for the year ending December 31, 2014, or for any other period. | |
Certain amounts from prior periods have been reclassified to conform to the current period presentation, including the reclassification of a letter of credit of $115,104 from cash and cash equivalents to restricted cash. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
2. Summary of Significant Accounting Policies | |
During the six months ended June 30, 2014, there were no material changes to the Company’s significant accounting policies from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 5, 2014. |
Restricted_Cash
Restricted Cash | 6 Months Ended |
Jun. 30, 2014 | |
Restricted Cash [Abstract] | ' |
Restricted Cash | ' |
3. Restricted Cash | |
During 2011, the Company established a line of credit with Sentinel Benefits Group, Inc. (“Sentinel Group”) related to the Company’s office lease and placed a cash security deposit of $115,104 in a letter of credit for the life of the lease. The Company has recorded $115,422 (which includes interest) as restricted cash on the balance sheet as of June 30, 2014 and December 31, 2013. | |
On January 11, 2013, the Company obtained a letter of credit from JP Morgan Chase Bank, N.A. (“JP Morgan”) in the amount of $200,000 in favor of Hewlett Packard Financial Services Company (“HP”). The amount was subsequently increased to $270,000 in September 2013. This letter of credit expired on January 31, 2014 but was replaced with a new letter of credit in the amount of $270,000 as of June 30, 2014. On July 28, 2014, HP released $100,000 held in the certificate of deposit (See Notes 15 and 17). |
Accounts_Receivable_Net
Accounts Receivable, Net | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounts Receivable, Net and Notes Receivable [Abstract] | ' | ||||||||
Accounts Receivable, Net | ' | ||||||||
4. Accounts Receivable, Net | |||||||||
Accounts receivable, net consisted of the following as of June 30, 2014 and December 31, 2013: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(Unaudited) | |||||||||
Accounts receivable | $ | 310,534 | $ | 423,220 | |||||
Less: Reserve for future chargebacks | (33,653 | ) | (37,850 | ) | |||||
Total accounts receivable, net | $ | 276,881 | $ | 385,370 | |||||
Credit card payments for subscriptions and micro-transactions typically settle several days after the date of purchase. The amount of unsettled transactions due from credit card payment processors was $152,827 as of June 30, 2014, compared to $191,656 at December 31, 2013. The amount of accounts receivable due from Apple Inc. was $151,993 as of June 30, 2014, compared to $217,536 at December 31, 2013. These amounts are included in the Company’s accounts receivable. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Investments and Fair Value Measurements | ' | ||||||||||||||||
5. Fair Value Measurements | |||||||||||||||||
The fair value framework under the Financial Accounting Standards Board’s guidance requires the categorization of assets and liabilities into three levels based upon the assumptions used to measure the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, would generally require significant management judgment. The three levels for categorizing assets and liabilities under the fair value measurement requirements are as follows: | |||||||||||||||||
● | Level 1: Fair value measurement of the asset or liability using observable inputs such as quoted prices in active markets for identical assets or liabilities; | ||||||||||||||||
● | Level 2: Fair value measurement of the asset or liability using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and | ||||||||||||||||
● | Level 3: Fair value measurement of the asset or liability using unobservable inputs that reflect the Company’s own assumptions regarding the applicable asset or liability. | ||||||||||||||||
The following table summarizes the liabilities measured at fair value on a recurring basis as of June 30, 2014: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
LIABILITIES: | |||||||||||||||||
Warrant liability | $ | — | $ | — | $ | 70,275 | $ | 70,275 | |||||||||
Total warrant liability | $ | — | $ | — | $ | 70,275 | $ | 70,275 | |||||||||
The following table summarizes the liabilities measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
LIABILITIES: | |||||||||||||||||
Warrant liability | $ | — | $ | — | $ | 140,550 | $ | 140,550 | |||||||||
Total warrant liability | $ | — | $ | — | $ | 140,550 | $ | 140,550 | |||||||||
The Company issued warrants to purchase common stock in January 2011 in conjunction with an equity financing. In accordance with Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”), the fair value of these warrants is classified as a liability on the Company’s Condensed Consolidated Balance Sheets because, according to the terms of the warrants, a fundamental transaction could give rise to an obligation of the Company to pay cash to its warrant holders. Corresponding changes in the fair value of the warrants are recognized in earnings on the Company’s Condensed Consolidated Statements of Operations in each subsequent period. | |||||||||||||||||
The Company’s warrant liability is carried at fair value and was classified as Level 3 in the fair value hierarchy due to the use of significant unobservable inputs. In order to calculate fair value, the Company uses a custom model developed with the assistance of an independent third-party valuation expert. This model calculates the fair value of the warrant liability at each measurement date using a Monte-Carlo style simulation, as the value of certain features of the warrant liability would not be captured by the standard Black-Scholes model. | |||||||||||||||||
The following table summarizes the values of certain assumptions used the Company’s custom model to estimate the fair value of the warrant liability as of June 30, 2014 and December 31, 2013: | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(Unaudited) | |||||||||||||||||
Stock price | $ | 0.3 | $ | 0.42 | |||||||||||||
Strike price | $ | 2.5 | $ | 2.5 | |||||||||||||
Remaining contractual term (years) | 1.6 | 2.1 | |||||||||||||||
Volatility | 117.2 | % | 109.6 | % | |||||||||||||
Adjusted volatility | 112.8 | % | 102.5 | % | |||||||||||||
Risk-free rate | 0.3 | % | 0.4 | % | |||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||
For the purposes of determining fair value, the Company used “adjusted volatility” in favor of “historical volatility” in its Monte-Carlo style simulation. Historical volatility of the Company was calculated using weekly stock prices over a look back period corresponding to the remaining contractual term of the warrants as of each valuation date. Management considered the lack of marketability of these instruments by incorporating a 10% incremental discount rate through a reduction of the volatility estimate (also known as volatility haircut) to calculate the adjusted volatility as of each valuation date. | |||||||||||||||||
ASU No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS (“ASU 2011-04”), indicates that “in the absence of a Level 1 input, a reporting entity should apply premiums or discounts when market participants would do so when pricing the asset or liability.” In accordance with ASU 2011-04, management estimated fair value from the perspective of market participants. |
CostMethod_Investment
Cost-Method Investment | 6 Months Ended |
Jun. 30, 2014 | |
Cost-Method Investment [Abstract] | ' |
Cost-Method Investment | ' |
6. Cost-Method Investment | |
On January 31, 2013, the Company entered into a subscription agreement with Darrell Lerner and DCL Ventures, Inc. (“DCL”) in connection with Mr. Lerner’s separation from the Company. Pursuant to this agreement, the Company has made multiple investments in DCL by purchasing (i) 50,000 shares of DCL’s common stock for an aggregate purchase price of $50,000 in April 2013, (ii) 25,000 shares of DCL’s common stock for an aggregate purchase price of $25,000 in July 2013, (iii) 25,000 shares of DCL’s common stock for an aggregate purchase price of $25,000 in October 2013, (iv) 25,000 shares of DCL’s common stock for an aggregate purchase price of $25,000 in January 2014 and (v) 25,000 shares of DCL’s common stock for an aggregate purchase price of $25,000 in April 2014.1 These nonmarketable securities have been recorded in “Investments” on the Company’s Condensed Consolidated Balance Sheet measured on a cost basis (See Note 16). | |
As of June 30, 2014, the aggregate carrying amount of the Company’s cost-method investment in DCL, which was a non-controlled entity, was $150,000. The Company assesses all cost-method investments for impairment quarterly. No impairment loss was recorded during the six months ended June 30, 2014. The Company does not reassess the fair value of cost-method investments if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investments (See Note 16). |
Fixed_Assets_and_Intangible_As
Fixed Assets and Intangible Assets, Net | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Fixed Assets and Intangible Assets, Net [Abstract] | ' | ||||||||
Fixed Assets and Intangible Assets, Net | ' | ||||||||
7. Fixed Assets and Intangible Assets, Net | |||||||||
Fixed assets and intangible assets, net consisted of the following at June 30, 2014 and December 31, 2013: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(Unaudited) | |||||||||
Computer equipment | $ | 256,610 | $ | 252,879 | |||||
Furniture and fixtures | 142,856 | 142,856 | |||||||
Leasehold improvements | 382,376 | 382,376 | |||||||
Software | 10,968 | 10,968 | |||||||
Website domain name | 124,938 | 124,938 | |||||||
Website costs | 40,500 | 40,500 | |||||||
Total fixed assets | 958,248 | 954,517 | |||||||
Less: Accumulated depreciation and amortization | (518,928 | ) | (432,055 | ) | |||||
Total fixed assets and intangible assets, net | $ | 439,320 | $ | 522,462 | |||||
The Company only holds fixed assets in the United States. Depreciation and amortization expense for the six months ended June 30, 2014 was $86,873, as compared to $85,563 for the six months ended June 30, 2013. |
Notes_Receivable
Notes Receivable | 6 Months Ended |
Jun. 30, 2014 | |
Accounts Receivable, Net and Notes Receivable [Abstract] | ' |
Notes Receivable | ' |
8. Notes Receivable | |
At June 30, 2014, the Company had notes receivable due in the aggregate amount of $122,749 from three former employees. The employees issued the notes to the Company since the Company paid taxes for stock-based compensation on these employees’ behalf in 2011 and 2012. The outstanding amounts under the notes are secured by pledged stock certificates and are due at various times during 2021-2023. Interest accrues on these notes at rates ranging from 2.31% to 3.57% per annum. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
9. Income Taxes | |
The Company had no income tax benefit or provision for the six months ended June 30, 2014 and 2013. Since the Company incurred a net loss for the six months ended June 30, 2014 and 2013, there was no income tax expense for the period. Increases in deferred tax balances have been offset by a valuation allowance and have no impact on the Company’s deferred income tax provision. | |
In calculating the provision for income taxes on an interim basis, the Company estimates the annual effective income tax rate based upon the facts and circumstances known for the period and applies that rate to the earnings or losses for the most recent interim period. The Company’s effective income tax rate is based on expected income and statutory tax rates and takes into consideration permanent differences between financial statement income and tax return income applicable to the Company in the various jurisdictions in which the Company operates. The effect of a discrete item, such as changes in estimates, changes in enacted tax laws or rates or tax status, and unusual or infrequently occurring events, is recognized in the interim period in which the discrete item occurs. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as the result of new judicial interpretations or changes in tax laws or regulations. |
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accrued Expenses and Other Current Liabilities [Abstract] | ' | ||||||||
Accrued expenses and other current liabilities | ' | ||||||||
10. Accrued Expenses and Other Current Liabilities | |||||||||
Accrued expenses and other current liabilities consisted of the following at June 30, 2014 and December 31, 2013: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(Unaudited) | |||||||||
Compensation and benefits | $ | 228,250 | $ | 499,500 | |||||
Deferred rent | 30,214 | 37,463 | |||||||
Professional fees | 215,973 | 134,179 | |||||||
Other accrued expenses | 11,421 | - | |||||||
Total accrued expenses and other current liabilities | $ | 485,858 | $ | 671,142 |
Promissory_Notes
Promissory Notes | 6 Months Ended |
Jun. 30, 2014 | |
Promissory Notes [Abstract] | ' |
Promissory Notes | ' |
11. Promissory Notes | |
On April 24, 2014, the Company issued a promissory note in the amount of $300,000 with Clifford Lerner, the Company’s president, chief executive officer and the chairman of the Company’s Board of Directors. The promissory note is due and payable on January 24, 2015 and bears interest at the rate of nine percent (9%) per annum. | |
On May 20, 2014, the Company issued a promissory note in the amount of $100,000 and a warrant to purchase 25,000 shares of its common stock to Thomas Carrella. The promissory note is due and payable on February 20, 2015 and bears interest at the rate of fifteen percent (15%) per annum. The Company calculated the fair value of the warrant using Black-Scholes option pricing model and recorded $4,750 of deferred financing costs related to the issuance of the warrant that will be amortized over the term of the promissory note (See Note 13). | |
At June 30, 2014, the Company had outstanding promissory notes in the aggregate amount of $400,000 recorded on its Condensed Consolidated Balance Sheet. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Stock-Based Compensation and Common Stock Purchase Warrants [Abstract] | ' | ||||||||
Stock-Based Compensation | ' | ||||||||
12. Stock-Based Compensation | |||||||||
The Snap Interactive, Inc. Amended and Restated 2011 Long-Term Incentive Plan (the “Plan”) permits the Company to award stock options (both incentive stock options and non-qualified stock options), stock appreciation rights, restricted stock, restricted stock units, shares of performance stock, dividend equivalent rights, and other stock-based awards and cash-based incentive awards to its employees (including an employee who is also a director or officer under certain circumstances), non-employee directors and consultants. The maximum number of shares of common stock that may be issued pursuant to awards under the Plan is 7,500,000 shares, 100% of which may be pursuant to incentive stock options. As of June 30, 2014, there were 3,325,222 shares available for future issuance under the Plan. | |||||||||
Stock Options | |||||||||
The following table summarizes the assumptions used in the Black-Scholes pricing model to estimate the fair value of the options granted during the six months ended June 30, 2014: | |||||||||
Six Months Ended | |||||||||
June 30, | |||||||||
2014 | |||||||||
Expected volatility | 199.74 | % | |||||||
Expected life of option | 6.18 Years | ||||||||
Risk free interest rate | 1.96 | % | |||||||
Expected dividend yield | 0 | % | |||||||
The expected life of the options is the period of time over which employees and non-employees are expected to hold their options prior to exercise. The expected life of options has been determined using the "simplified" method as prescribed by Staff Accounting Bulletin 110, which uses the midpoint between the vesting date and the end of the contractual term. The volatility of the Company’s common stock is calculated using the Company’s historical volatilities beginning at the grant date and going back for a period of time equal to the expected life of the award. | |||||||||
The following table summarizes stock option activity for the six months ended June 30, 2014: | |||||||||
Number of | Weighted | ||||||||
Options | Average | ||||||||
Exercise Price | |||||||||
Stock Options: | |||||||||
Outstanding at December 31, 2013 | 4,129,790 | $ | 0.74 | ||||||
Granted | 2,134,000 | 0.31 | |||||||
Expired or canceled, during the period | (507,500 | ) | 0.7 | ||||||
Forfeited, during the period | (1,631,510 | ) | 0.64 | ||||||
Outstanding at June 30, 2014 | 4,124,780 | 0.56 | |||||||
Exercisable at June 30, 2014 | 1,987,082 | $ | 0.75 | ||||||
At June 30, 2014, the aggregate intrinsic value of stock options that were outstanding and exercisable was $24,100 and $3,150, respectively. At June 30, 2013, the aggregate intrinsic value of stock options that were outstanding and exercisable was $82,730 and $82,635, respectively. The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the fair value of such awards as of the period-end date. | |||||||||
Stock-based compensation expense relating to stock options was $76,033 and $445,069 during the six months ended June 30, 2014 and 2013, respectively. The Company estimates potential forfeitures of stock awards and adjust recorded stock-based compensation expense accordingly. The estimate of forfeitures is adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures are recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of stock-based compensation expense that is recognized in future periods. | |||||||||
Non-employee stock option activity described below is also included in the stock option activity summarized on the previous table. The following table summarizes non-employee stock option activity for the six months ended June 30, 2014: | |||||||||
Number of | Weighted | ||||||||
Options | Average | ||||||||
Exercise Price | |||||||||
Non-Employee Stock Options: | |||||||||
Outstanding at December 31, 2013 | 200,000 | $ | 0.93 | ||||||
Granted | 25,000 | 0.34 | |||||||
Outstanding at June 30, 2014 | 225,000 | 0.87 | |||||||
Exercisable at June 30, 2014 | 200,000 | $ | 0.93 | ||||||
At June 30, 2014 and 2013, the aggregate intrinsic value of non-employee stock options that were outstanding and exercisable was $0. | |||||||||
Stock-based compensation expense relating to non-employee stock options was $2,401 and $23,210 during the three months ended June 30, 2014 and 2013, respectively. | |||||||||
The following table summarizes unvested stock option activity for the six months ended June 30, 2014: | |||||||||
Number of | Weighted | ||||||||
Options | Average | ||||||||
Grant Date | |||||||||
Fair Value | |||||||||
Unvested Stock Options: | |||||||||
Unvested stock options outstanding at December 31, 2013 | 1,888,437 | $ | 0.57 | ||||||
Granted | 2,134,000 | 0.31 | |||||||
Vested | (253,229 | ) | 0.49 | ||||||
Forfeited, during the period | (1,631,512 | ) | 0.63 | ||||||
Unvested stock options outstanding at June 30, 2014 | 2,137,696 | $ | 0.37 | ||||||
There was $740,720 and $1,481,725 of total unrecognized stock-based compensation expense related to unvested stock options at June 30, 2014 and 2013, respectively, which is expected to be recognized over a weighted average remaining vesting period of 3.36 and 2.88 years, respectively. | |||||||||
Restricted Stock Awards | |||||||||
The following table summarizes restricted stock award activity for the six months ended June 30, 2014: | |||||||||
Number of | Weighted | ||||||||
RSAs | Average | ||||||||
Grant Date | |||||||||
Fair Value | |||||||||
Restricted Stock Awards: | |||||||||
Outstanding at December 31, 2013 | 10,855,000 | $ | 0.56 | ||||||
Vested | (50,000 | ) | 0.42 | ||||||
Forfeited, during the period | (480,000 | ) | 0.52 | ||||||
Outstanding at June 30, 2014 | 10,325,000 | $ | 0.56 | ||||||
At June 30, 2014, there was $4,133,182 of total unrecognized compensation expense related to unvested restricted stock awards, which is expected to be recognized over a weighted average period of 8.07 years. At June 30, 2013, there was $5,804,730 of total unrecognized compensation expense related to unvested non-employee restricted stock awards, which is expected to be recognized over a weighted average period of 6.12 years. | |||||||||
Stock-based compensation expense relating to restricted stock awards was $418,679 and $338,573 for the six months ended June 30, 2014 and 2013, respectively. | |||||||||
Non-employee restricted stock award activity described below is also included in total restricted stock award activity summarized on the previous table. The following table summarizes non-employee restricted stock award activity for the six months ended June 30, 2014: | |||||||||
Number of | Weighted | ||||||||
RSAs | Average | ||||||||
Grant Date | |||||||||
Fair Value | |||||||||
Non-Employee Restricted Stock Awards: | |||||||||
Outstanding at December 31, 2013 | 1,125,000 | $ | 0.42 | ||||||
Vested | (50,000 | ) | 0.42 | ||||||
Outstanding at June 30, 2014 | 1,075,000 | $ | 0.42 | ||||||
At June 30, 2014, there was $268,719 of total unrecognized stock-based compensation expense related to non-employee unvested restricted stock awards, which is expected to be recognized over a weighted average period of 7.5 years. | |||||||||
Stock-based compensation expense relating to non-employee restricted stock awards was $5,365 for the six months ended June 30, 2014. |
Common_Stock_Warrants
Common Stock Warrants | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Stock-Based Compensation and Common Stock Purchase Warrants [Abstract] | ' | ||||||||
Common Stock Warrants | ' | ||||||||
13. Common Stock Warrants | |||||||||
Warrant Liability | |||||||||
In January 2011, the Company completed an equity financing that raised gross proceeds of $8,500,000 from the issuance of 4,250,000 shares of common stock at a price of $2.00 per share and warrants to purchase an aggregate of 2,125,000 shares of common stock. The warrants are exercisable any time on or before January 19, 2016 and have an exercise price of $2.50 per share. The Company received $7,915,700 in net proceeds from the equity financing after deducting offering expenses of $584,300. The exercise price of the warrants and number of shares of common stock to be received upon the exercise of the warrants are subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions. | |||||||||
The Company also issued warrants to purchase an aggregate of 255,000 shares of its common stock to the Company’s placement agent and advisors in January 2011 in connection with the equity financing as consideration for their services. These warrants have the same terms, including exercise price, registration rights and expiration, as the warrants issued to the investors in the equity financing. | |||||||||
The Company has recorded a warrant liability on its Condensed Consolidated Balance Sheet at the end of each reporting period based on the estimated fair value of the warrants. The warrants are valued at the end of each reporting period with changes recorded as mark-to-market adjustment on warrant liability on the Company’s Condensed Consolidated Statement of Operations. The fair value of these warrants was $70,275 and $140,550 at June 30, 2014 and December 31, 2013, respectively, based on a model developed with the assistance of an independent third-party valuation expert. | |||||||||
The gain on change in fair value of warrants on these warrants was $0 and $70,275 for the three months ended June 30, 2014 and June 30, 2013, respectively, and $70,275 and $1,171,250 for the six months ended June 30, 2014 and June 30, 2013, respectively, and was not presented within loss from operations. | |||||||||
Warrant Equity | |||||||||
On May 20, 2014, the Company issued a warrant to purchase 25,000 shares of its common stock to Thomas Carrella in connection with the issuance of a promissory note. The warrant has an exercise price equal to $0.32 per share and, if unexercised, expires on May 20, 2019. | |||||||||
The Company calculated the fair value of the warrant issued on May 20, 2014 using Black-Scholes option pricing model and recorded $4,750 of deferred financing costs related to the issuance of the warrant that will be amortized over the term of the promissory note. | |||||||||
Common Stock Issued for Warrants Exercised | |||||||||
In April 2011, the Company issued 37,500 shares of its common stock and received net proceeds of $88,125 after an investor exercised warrants at an exercise price of $2.50 per share. | |||||||||
The following table summarizes warrant activity for the six months ended June 30, 2014: | |||||||||
Number of | Weighted | ||||||||
Warrants | Average | ||||||||
Exercise Price | |||||||||
Stock Warrants: | |||||||||
Outstanding at December 31, 2013 | 2,342,500 | $ | 2.50 | ||||||
Granted | 25,000 | 0.32 | |||||||
Exercised | - | - | |||||||
Forfeited | - | - | |||||||
Outstanding at June 30, 2014 | 2,367,500 | 2.48 | |||||||
Warrants exercisable at June 30, 2014 | 2,367,500 | $ | 2.48 | ||||||
Net_Loss_Per_Common_Share
Net Loss Per Common Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Net Loss Per Common Share [Abstract] | ' | ||||||||||||||||
Net Loss Per Common Share | ' | ||||||||||||||||
14. Net Loss Per Common Share | |||||||||||||||||
Basic net loss per common share is computed based upon the weighted average common shares outstanding as defined by ASC No. 260, Earnings Per Share. Diluted net loss per common share includes the dilutive effects of stock options, warrants and stock equivalents. To the extent stock options, stock equivalents and warrants are antidilutive, they are excluded from the calculation of diluted net loss per share. For the six months ended June 30, 2014, 16,917,278 shares issuable upon the exercise of stock options and warrants were not included in the computation of diluted net loss per share because their inclusion would be antidilutive. For the six months ended June 30, 2013, 7,139,165 shares issuable upon the exercise of stock options and warrants were not included in the computation of diluted net loss per share because their inclusion would have been antidilutive. | |||||||||||||||||
The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net loss per common share: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net loss | $ | (259,678 | ) | $ | (1,472,413 | ) | $ | (1,192,775 | ) | $ | (1,627,483 | ) | |||||
Denominator: | |||||||||||||||||
Basic shares: | |||||||||||||||||
Weighted-average common shares outstanding | 39,152,713 | 38,932,826 | 39,155,340 | 38,920,671 | |||||||||||||
Diluted shares: | |||||||||||||||||
Weighted-average shares used to compute basic net loss per share | 39,152,713 | 38,932,826 | 39,155,340 | 38,920,671 | |||||||||||||
Weighted-average shares used to compute diluted net loss per share | 39,152,713 | 38,932,826 | 39,155,340 | 38,920,671 | |||||||||||||
Net loss per common share: | |||||||||||||||||
Basic | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.03 | ) | $ | (0.04 | ) | |||||
Diluted | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.03 | ) | $ | (0.04 | ) | |||||
Commitments
Commitments | 6 Months Ended |
Jun. 30, 2014 | |
Commitments [Abstract] | ' |
Commitments | ' |
15. Commitments | |
Operating Lease Agreements | |
On May 23, 2011, the Company executed a non-cancelable operating lease for corporate office space which began on June 1, 2011 and expires on March 30, 2015. Total base rent due during the term of the lease is $973,595. Monthly rent escalates during the term, but is recorded on a straight-line basis over the term of the lease. The Company can terminate the final five months of the lease with eight months prior notice and the payment of unamortized costs. Rent expense under this lease for the six months ended June 30, 2014 and 2013 was $126,991. | |
During 2012, the Company entered into multiple two-year lease agreements with HP for equipment and certain other assets. During 2013, the Company entered into two additional two-year lease agreements with HP for equipment and certain financed items. Rent expense under this lease for the three months ended June 30, 2014 totaled $73,844. On January 11, 2013, the Company obtained a letter of credit from JP Morgan in the amount of $200,000 in favor of HP. This letter of credit expired on January 31, 2014 but was replaced with a new letter of credit in the amount of $270,000 as of June 30, 2014. On July 28, 2014, HP released $100,000 held in the certificate of deposit (See Notes 3 and 17). | |
During 2013, the Company entered into a two-year service agreement with Equinix Operating Co., Inc. (“Equinix”) where Equinix agreed to provide certain products and services to the Company from January 2013 to January 2015. Pursuant to the service agreement, the Company agreed to pay monthly recurring fees in the amount of $8,450 and certain nonrecurring fees in the amount of $9,700. The agreement automatically renews for additional twelve month terms unless earlier terminated by either party. Hosting expense under this lease totaled $88,256 for the six months ended June 30, 2014. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
16. Related Party Transactions | |
On January 31, 2013, the Company entered into a subscription agreement with Darrell Lerner and DCL in connection with his separation from the Company. Pursuant to this agreement, the Company purchased (i) 50,000 shares of DCL’s common stock for an aggregate purchase price of $50,000 in April 2013, (ii) 25,000 shares of DCL’s common stock for an aggregate purchase price of $25,000 in July 2013, (iii) 25,000 shares of DCL’s common stock for an aggregate purchase price of $25,000 in October 2013, (iv) 25,000 shares of DCL’s common stock for an aggregate purchase price of $25,000 in January 2014 and (v) 25,000 shares of DCL’s common stock for an aggregate purchase price of $25,000 in April 2014. | |
On January 31, 2013, the Company entered into a consulting agreement with Darrell Lerner, pursuant to which Mr. Lerner agreed to serve as a consultant to the Company for a three-year period, beginning on February 1, 2013 (the “Effective Date”). Pursuant to the agreement, Mr. Lerner agreed to assist and advise the Company on legal, financial and other matters for which he has knowledge that pertains to the Company, as the Company reasonably requests. As compensation for his services, the Company agreed to pay Mr. Lerner a monthly fee of $25,000 for the initial two year period of the agreement and a monthly fee of $5,000 for every month thereafter. The monthly payments under the agreement are conditioned upon Mr. Lerner’s compliance with a customary confidentiality covenant covering certain information concerning the Company, a covenant not to compete during the term of the agreement and for a period of one year following the termination of the agreement, a non-disparagement covenant regarding the Company and a non-solicitation covenant for a period of six months immediately following the later of the termination of the agreement or the end of the term of the agreement. | |
The consulting agreement is for a three-year period; provided, however, that the Company may terminate the agreement at any time without notice and may renew the term of the agreement by providing written notice to Mr. Lerner prior to or at the expiration of the term. If the Company terminates the agreement without “cause” (as defined in the agreement) prior to the three-year anniversary of the Effective Date, the Company has agreed to (i) pay Mr. Lerner the amount of the monthly fees owed to Mr. Lerner for the period from the Effective Date to the two year anniversary of the Effective Date and (ii) take all commercially reasonably actions to cause (A) 325,000 shares of restricted common stock of the Company previously granted to Mr. Lerner, (B) 600,000 shares of restricted common stock of the Company previously granted to Mr. Lerner and (iii) 150,000 shares of restricted common stock of the Company granted to Mr. Lerner pursuant to the agreement, to be vested as of the date of the termination. | |
On April 24, 2014, the Company entered into a promissory note in the amount of $300,000 with Clifford Lerner, the Company’s chief executive officer and the chairman of the Company’s Board of Directors. The promissory note is due and payable on January 24, 2015 and bears interest at the rate of nine percent (9%) per annum. | |
On June 17, 2014, the Board of Directors of the Company increased the size of the Board of Directors from one (1) member to two (2) members and appointed Alexander Harrington to the Board of Directors. Mr. Harrington will serve as a director until the Company’s 2015 annual meeting of stockholders. On June 17, 2014, the Company issued a stock option to purchase 25,000 shares of its common stock to Alexander Harrington as consideration for his service as a director on the Company’s Board of Directors. The stock option has an exercise price of $0.31 per share. The shares underlying the stock option will vest on the first anniversary of the date of grant, provided that Mr. Harrington is providing services to the Company on such date. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
17. Subsequent Events | |
Certificate of Deposit | |
On July 28, 2014, HP released the $100,000 held in a certificate of deposit for the Company’s leased equipment (See Note 15). |
Accounts_Receivable_Net_Tables
Accounts Receivable, Net (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounts Receivable, Net and Notes Receivable [Abstract] | ' | ||||||||
Schedule of accounts receivable, net | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(Unaudited) | |||||||||
Accounts receivable | $ | 310,534 | $ | 423,220 | |||||
Less: Reserve for future chargebacks | (33,653 | ) | (37,850 | ) | |||||
Total accounts receivable, net | $ | 276,881 | $ | 385,370 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Schedule of liabilities measured at fair value | ' | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
LIABILITIES: | |||||||||||||||||
Warrant liability | $ | — | $ | — | $ | 70,275 | $ | 70,275 | |||||||||
Total warrant liability | $ | — | $ | — | $ | 70,275 | $ | 70,275 | |||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
LIABILITIES: | |||||||||||||||||
Warrant liability | $ | — | $ | — | $ | 140,550 | $ | 140,550 | |||||||||
Total warrant liability | $ | — | $ | — | $ | 140,550 | $ | 140,550 | |||||||||
Schedule of estimated fair value of the warrant liability | ' | ||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(Unaudited) | |||||||||||||||||
Stock price | $ | 0.3 | $ | 0.42 | |||||||||||||
Strike price | $ | 2.5 | $ | 2.5 | |||||||||||||
Remaining contractual term (years) | 1.6 | 2.1 | |||||||||||||||
Volatility | 117.2 | % | 109.6 | % | |||||||||||||
Adjusted volatility | 112.8 | % | 102.5 | % | |||||||||||||
Risk-free rate | 0.3 | % | 0.4 | % | |||||||||||||
Dividend yield | 0 | % | 0 | % |
Fixed_Assets_and_Intangible_As1
Fixed Assets and Intangible Assets, Net (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Fixed Assets and Intangible Assets, Net [Abstract] | ' | ||||||||
Schedule of fixed assets and intangible assets | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(Unaudited) | |||||||||
Computer equipment | $ | 256,610 | $ | 252,879 | |||||
Furniture and fixtures | 142,856 | 142,856 | |||||||
Leasehold improvements | 382,376 | 382,376 | |||||||
Software | 10,968 | 10,968 | |||||||
Website domain name | 124,938 | 124,938 | |||||||
Website costs | 40,500 | 40,500 | |||||||
Total fixed assets | 958,248 | 954,517 | |||||||
Less: Accumulated depreciation and amortization | (518,928 | ) | (432,055 | ) | |||||
Total fixed assets and intangible assets, net | $ | 439,320 | $ | 522,462 |
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accrued Expenses and Other Current Liabilities [Abstract] | ' | ||||||||
Schedule of accrued expenses and other current liabilities | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(Unaudited) | |||||||||
Compensation and benefits | $ | 228,250 | $ | 499,500 | |||||
Deferred rent | 30,214 | 37,463 | |||||||
Professional fees | 215,973 | 134,179 | |||||||
Other accrued expenses | 11,421 | - | |||||||
Total accrued expenses and other current liabilities | $ | 485,858 | $ | 671,142 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||
Weighted average assumptions used to estimate fair value of options granted | ' | ||||||||
Six Months Ended | |||||||||
June 30, | |||||||||
2014 | |||||||||
Expected volatility | 199.74 | % | |||||||
Expected life of option | 6.18 Years | ||||||||
Risk free interest rate | 1.96 | % | |||||||
Expected dividend yield | 0 | % | |||||||
Stock Options [Member] | ' | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||
Schedule of Stock Options, Non-employee Stock Options and unvested Stock Options | ' | ||||||||
Number of | Weighted | ||||||||
Options | Average | ||||||||
Exercise Price | |||||||||
Stock Options: | |||||||||
Outstanding at December 31, 2013 | 4,129,790 | $ | 0.74 | ||||||
Granted | 2,134,000 | 0.31 | |||||||
Expired or canceled, during the period | (507,500 | ) | 0.7 | ||||||
Forfeited, during the period | (1,631,510 | ) | 0.64 | ||||||
Outstanding at June 30, 2014 | 4,124,780 | 0.56 | |||||||
Exercisable at June 30, 2014 | 1,987,082 | $ | 0.75 | ||||||
Non-Employee Stock Option [Member] | ' | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||
Schedule of Stock Options, Non-employee Stock Options and unvested Stock Options | ' | ||||||||
Number of | Weighted | ||||||||
Options | Average | ||||||||
Exercise Price | |||||||||
Non-Employee Stock Options: | |||||||||
Outstanding at December 31, 2013 | 200,000 | $ | 0.93 | ||||||
Granted | 25,000 | 0.34 | |||||||
Outstanding at June 30, 2014 | 225,000 | 0.87 | |||||||
Exercisable at June 30, 2014 | 200,000 | $ | 0.93 | ||||||
Unvested Stock Options [Member] | ' | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||
Schedule of Stock Options, Non-employee Stock Options and unvested Stock Options | ' | ||||||||
Number of | Weighted | ||||||||
Options | Average | ||||||||
Grant Date | |||||||||
Fair Value | |||||||||
Unvested Stock Options: | |||||||||
Unvested stock options outstanding at December 31, 2013 | 1,888,437 | $ | 0.57 | ||||||
Granted | 2,134,000 | 0.31 | |||||||
Vested | (253,229 | ) | 0.49 | ||||||
Forfeited, during the period | (1,631,512 | ) | 0.63 | ||||||
Unvested stock options outstanding at June 30, 2014 | 2,137,696 | $ | 0.37 | ||||||
Restricted Stock Awards [Member] | ' | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||
Schedule of restricted stock award and non-employee stock option activity | ' | ||||||||
Number of | Weighted | ||||||||
RSAs | Average | ||||||||
Grant Date | |||||||||
Fair Value | |||||||||
Restricted Stock Awards: | |||||||||
Outstanding at December 31, 2013 | 10,855,000 | $ | 0.56 | ||||||
Vested | (50,000 | ) | 0.42 | ||||||
Forfeited, during the period | (480,000 | ) | 0.52 | ||||||
Outstanding at June 30, 2014 | 10,325,000 | $ | 0.56 | ||||||
Non Employee Restricted Stock Awards [Member] | ' | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||
Schedule of restricted stock award and non-employee stock option activity | ' | ||||||||
Number of | Weighted | ||||||||
RSAs | Average | ||||||||
Grant Date | |||||||||
Fair Value | |||||||||
Non-Employee Restricted Stock Awards: | |||||||||
Outstanding at December 31, 2013 | 1,125,000 | $ | 0.42 | ||||||
Vested | (50,000 | ) | 0.42 | ||||||
Outstanding at June 30, 2014 | 1,075,000 | $ | 0.42 |
Common_Stock_Warrants_Tables
Common Stock Warrants (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Stock-Based Compensation and Common Stock Purchase Warrants [Abstract] | ' | ||||||||
Schedule of warrant activity | ' | ||||||||
Number of | Weighted | ||||||||
Warrants | Average | ||||||||
Exercise Price | |||||||||
Stock Warrants: | |||||||||
Outstanding at December 31, 2013 | 2,342,500 | $ | 2.50 | ||||||
Granted | 25,000 | 0.32 | |||||||
Exercised | - | - | |||||||
Forfeited | - | - | |||||||
Outstanding at June 30, 2014 | 2,367,500 | 2.48 | |||||||
Warrants exercisable at June 30, 2014 | 2,367,500 | $ | 2.48 |
Net_Loss_Per_Common_Share_Tabl
Net Loss Per Common Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Net Loss Per Common Share [Abstract] | ' | ||||||||||||||||
Reconciliation of numerator and denominator used in computing basic and diluted net loss per common share | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net loss | $ | (259,678 | ) | $ | (1,472,413 | ) | $ | (1,192,775 | ) | $ | (1,627,483 | ) | |||||
Denominator: | |||||||||||||||||
Basic shares: | |||||||||||||||||
Weighted-average common shares outstanding | 39,152,713 | 38,932,826 | 39,155,340 | 38,920,671 | |||||||||||||
Diluted shares: | |||||||||||||||||
Weighted-average shares used to compute basic net loss per share | 39,152,713 | 38,932,826 | 39,155,340 | 38,920,671 | |||||||||||||
Weighted-average shares used to compute diluted net loss per share | 39,152,713 | 38,932,826 | 39,155,340 | 38,920,671 | |||||||||||||
Net loss per common share: | |||||||||||||||||
Basic | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.03 | ) | $ | (0.04 | ) | |||||
Diluted | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.03 | ) | $ | (0.04 | ) |
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Basis of Presentation (Textual) | ' | ' |
Restricted cash | $115,104 | $115,422 |
Restricted_Cash_Details
Restricted Cash (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Jan. 11, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Jul. 28, 2014 |
HP [Member] | HP [Member] | HP [Member] | Subsequent Event [Member] | ||||
HP [Member] | |||||||
Restricted Cash (Textual) | ' | ' | ' | ' | ' | ' | ' |
Restricted cash | $115,104 | $115,422 | ' | ' | ' | ' | ' |
Security deposit | ' | ' | 115,104 | ' | ' | ' | ' |
Letter of Credit from JP Morgan Chase Bank | ' | ' | ' | 200,000 | ' | ' | ' |
Letter of credit facility from JP Morgan Chase Bank, expiration date | ' | ' | ' | 31-Jan-14 | ' | ' | ' |
Letter of credit increased amount | ' | ' | ' | ' | 270,000 | 270,000 | ' |
Certificate of deposit for leased equipment | ' | ' | ' | ' | ' | ' | $100,000 |
Accounts_Receivable_Net_Detail
Accounts Receivable, Net (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Schedule of accounts receivable, net | ' | ' |
Accounts receivable | $310,534 | $423,220 |
Less: Reserve for future chargebacks | -33,653 | -37,850 |
Total accounts receivable, net | $276,881 | $385,370 |
Accounts_Receivable_Net_Detail1
Accounts Receivable, Net (Details Textual) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Accounts Receivable, Net (Textual) | ' | ' |
Unsettled transactions from credit card payment processors | $152,827 | $191,656 |
Accounts receivable due from Apple Inc. | $151,993 | $217,536 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Recurring [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
LIABILITIES: | ' | ' |
Total warrant liability | $70,275 | $140,550 |
Warrant liability [Member] | ' | ' |
LIABILITIES: | ' | ' |
Total warrant liability | 70,275 | 140,550 |
Level 1 [Member] | ' | ' |
LIABILITIES: | ' | ' |
Total warrant liability | ' | ' |
Level 1 [Member] | Warrant liability [Member] | ' | ' |
LIABILITIES: | ' | ' |
Total warrant liability | ' | ' |
Level 2 [Member] | ' | ' |
LIABILITIES: | ' | ' |
Total warrant liability | ' | ' |
Level 2 [Member] | Warrant liability [Member] | ' | ' |
LIABILITIES: | ' | ' |
Total warrant liability | ' | ' |
Level 3 [Member] | ' | ' |
LIABILITIES: | ' | ' |
Total warrant liability | 70,275 | 140,550 |
Level 3 [Member] | Warrant liability [Member] | ' | ' |
LIABILITIES: | ' | ' |
Total warrant liability | $70,275 | $140,550 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Schedule of estimated fair value of the warrant liability | ' | ' |
Stock price | $0.30 | $0.42 |
Strike price | $2.50 | $2.50 |
Remaining contractual term (years) | '1 year 7 months 6 days | '2 years 1 month 6 days |
Volatility | 117.20% | 109.60% |
Adjusted volatility | 112.80% | 102.50% |
Risk-free rate | 0.30% | 0.40% |
Dividend yield | 0.00% | 0.00% |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details Textual) | 6 Months Ended |
Jun. 30, 2014 | |
Investments and Fair Value Measurements (Textual) | ' |
Incremental discount rate premium due to lack of marketability | 10.00% |
CostMethod_Investment_Details
Cost-Method Investment (Details) (USD $) | 6 Months Ended | 1 Months Ended | ||||
Jun. 30, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | |
DCL Ventures Inc. [Member] | DCL Ventures Inc. [Member] | DCL Ventures Inc. [Member] | DCL Ventures Inc. [Member] | DCL Ventures Inc. [Member] | ||
Cost-Method Investment (Textual) | ' | ' | ' | ' | ' | ' |
Share purchase under initial investment | ' | 25,000 | 25,000 | 25,000 | 25,000 | 50,000 |
Impairment loss | ' | ' | ' | ' | ' | ' |
Investment in DCL Ventures, Inc. | $150,000 | $25,000 | $25,000 | $25,000 | $25,000 | $50,000 |
Fixed_Assets_and_Intangible_As2
Fixed Assets and Intangible Assets, Net (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Schedule of fixed assets and intangible assets | ' | ' |
Total fixed assets | $958,248 | $954,517 |
Less: Accumulated depreciation and amortization | -518,928 | -432,055 |
Total fixed assets and intangible assets, net | 439,320 | 522,462 |
Computer equipment [Member] | ' | ' |
Schedule of fixed assets and intangible assets | ' | ' |
Total fixed assets | 256,610 | 252,879 |
Furniture and fixtures [Member] | ' | ' |
Schedule of fixed assets and intangible assets | ' | ' |
Total fixed assets | 142,856 | 142,856 |
Leasehold improvements [Member] | ' | ' |
Schedule of fixed assets and intangible assets | ' | ' |
Total fixed assets | 382,376 | 382,376 |
Software [Member] | ' | ' |
Schedule of fixed assets and intangible assets | ' | ' |
Total fixed assets | 10,968 | 10,968 |
Website domain name [Member] | ' | ' |
Schedule of fixed assets and intangible assets | ' | ' |
Total fixed assets | 124,938 | 124,938 |
Website costs [Member] | ' | ' |
Schedule of fixed assets and intangible assets | ' | ' |
Total fixed assets | $40,500 | $40,500 |
Fixed_Assets_and_Intangible_As3
Fixed Assets and Intangible Assets, Net (Details Textual) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Fixed Assets and Intangible Assets, Net (Textual) | ' | ' |
Depreciation and amortization expense | $86,873 | $85,563 |
Notes_Receivable_Details
Notes Receivable (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Notes Receivable (Textual) | ' |
Notes receivable | $122,749 |
Maturity period of due note | 'At various times during 2021-2023 |
Notes receivable, interest rate, minimum | 2.31% |
Notes receivable, interest rate, maximum | 3.57% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Taxes (Textual) | ' | ' | ' | ' |
Provision for income taxes | ' | ' | ' | ' |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Schedule of accrued expenses and other current liabilities | ' | ' |
Compensation and benefits | $228,250 | $499,500 |
Deferred rent | 30,214 | 37,463 |
Professional fees | 215,973 | 134,179 |
Other accrued expenses | 11,421 | ' |
Total accrued expenses and other current liabilities | $485,858 | $671,142 |
Promissory_Notes_Details
Promissory Notes (Details) (USD $) | 6 Months Ended | 1 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | 20-May-14 | Apr. 24, 2014 | |
Chief Executive Officer [Member] | Chief Executive Officer [Member] | ||||
Notes Payable (Textual) | ' | ' | ' | ' | ' |
Promissory note, amount | ' | ' | ' | ' | $300,000 |
Promissory note payable interest rate | ' | ' | ' | 15.00% | 9.00% |
Maturity date | ' | ' | ' | 20-Feb-15 | 24-Jan-15 |
Issuance of a promissory note | ' | ' | ' | 100,000 | ' |
Purchase of warrant to common stock | ' | ' | ' | 25,000 | ' |
Promissory notes | 400,000 | ' | ' | ' | ' |
Deferred financing cost | $4,750 | ' | ' | $4,750 | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (Stock Options [Member]) | 6 Months Ended |
Jun. 30, 2014 | |
Stock Options [Member] | ' |
Weighted average assumptions used to estimate fair value of options granted | ' |
Expected volatility | 199.74% |
Expected life of option | '6 years 2 months 5 days |
Risk free interest rate | 1.96% |
Expected dividend yield | 0.00% |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 1) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Stock Options [Member] | ' |
Schedule of Stock Options, Non-employee Stock Option and Unvested Stock Options | ' |
Beginning Balance | 4,129,790 |
Granted | 2,134,000 |
Expired or canceled, during the period | -507,500 |
Forfeited, during the period | -1,631,510 |
Ending Balance, Number of Options/Warrants | 4,124,780 |
Options/Warrants exercisable | 1,987,082 |
Beginning Balance, Weighted Average Exercise Price | $0.74 |
Granted, Weighted Average Exercise Price | $0.31 |
Expired or canceled, Weighted Average Exercise Price | $0.70 |
Forfeited, Weighted Average Exercise Price | $0.64 |
Ending Balance, Weighted Average Exercise Price | $0.56 |
Exercisable, Weighted Average Exercise Price | $0.75 |
Non-Employee Stock Option [Member] | ' |
Schedule of Stock Options, Non-employee Stock Option and Unvested Stock Options | ' |
Beginning Balance | 200,000 |
Granted | 25,000 |
Ending Balance, Number of Options/Warrants | 225,000 |
Options/Warrants exercisable | 200,000 |
Beginning Balance, Weighted Average Exercise Price | $0.93 |
Granted, Weighted Average Exercise Price | $0.34 |
Ending Balance, Weighted Average Exercise Price | $0.87 |
Exercisable, Weighted Average Exercise Price | $0.93 |
Unvested Stock Options [Member] | ' |
Schedule of Stock Options, Non-employee Stock Option and Unvested Stock Options | ' |
Beginning Balance | 1,888,437 |
Granted | 2,134,000 |
Vested | -253,229 |
Forfeited, during the period | -1,631,512 |
Ending Balance, Number of Options/Warrants | 2,137,696 |
Beginning Balance, Weighted Average Exercise Price | $0.57 |
Granted, Weighted Average Exercise Price | $0.31 |
Vested, Weighted Average Exercise Price | $0.49 |
Forfeited, Weighted Average Exercise Price | $0.63 |
Ending Balance, Weighted Average Exercise Price | $0.37 |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 2) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Restricted Stock [Member] | ' |
Schedule of restricted stock award and non-employee stock option activity | ' |
Beginning balance | 10,855,000 |
Vested | -50,000 |
Forfeited, during the period | -480,000 |
Ending balance | 10,325,000 |
Weighted average grant date fair value, Beginning balance | $0.56 |
Weighted average grant date fair value, Vested | $0.42 |
Weighted average grant date fair value, Forfeited | $0.52 |
Weighted average grant date fair value, Ending balance | $0.56 |
Non Employee Restricted Stock Awards [Member] | ' |
Schedule of restricted stock award and non-employee stock option activity | ' |
Beginning balance | 1,125,000 |
Vested | -50,000 |
Ending balance | 1,075,000 |
Weighted average grant date fair value, Beginning balance | $0.42 |
Weighted average grant date fair value, Vested | $0.42 |
Weighted average grant date fair value, Ending balance | $0.42 |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details Textual) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Stock Options [Member] | Stock Options [Member] | Non Employee Stock Option [Member] | Non Employee Stock Option [Member] | Unvested Stock Options [Member] | Unvested Stock Options [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Non Employee Restricted Stock Awards [Member] | |||
Stock-Based Compensation (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options outstanding, intrinsic value | ' | ' | $24,100 | $82,730 | $0 | $0 | ' | ' | ' | ' | ' |
Stock options exercisable, intrinsic value | ' | ' | 3,150 | 82,635 | 0 | 0 | ' | ' | ' | ' | ' |
Stock-based compensation expense | 494,712 | 445,069 | 76,033 | 445,069 | 2,401 | 23,210 | ' | ' | 418,679 | 338,573 | 5,365 |
Total unrecognized compensation cost related to non-vested stock options | ' | ' | ' | ' | ' | ' | $740,720 | $1,481,725 | $4,133,182 | $5,804,730 | $268,719 |
Weighted average expected recognition period of compensation cost not yet recognized | ' | ' | ' | ' | ' | ' | '3 years 4 months 10 days | '2 years 10 months 17 days | '8 years 26 days | '6 years 1 month 13 days | '7 years 6 months |
Number of shares authorized under Option | 7,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of common stock delivered pursuant to incentive stock options | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock reserved for issuance | 3,325,222 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common_Stock_Warrants_Details
Common Stock Warrants (Details) (Stock Warrant [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Stock Warrant [Member] | ' |
Schedule of warrant activity | ' |
Granted | 25,000 |
Exercised | ' |
Forfeited, Number of Options/Warrants | ' |
Ending Balance, Number of Options/Warrants | 2,367,500 |
Options/Warrants exercisable | 2,367,500 |
Granted, Weighted Average Exercise Price | $0.32 |
Exercised, Weighted Average Exercise Price | ' |
Forfeited, Weighted Average Exercise Price | ' |
Ending Balance, Weighted Average Exercise Price | $2.48 |
Exercisable, Weighted Average Exercise Price | $2.48 |
Common_Stock_Warrants_Details_
Common Stock Warrants (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | ||||||
20-May-14 | Jan. 31, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | 20-May-14 | Apr. 30, 2011 | Jan. 31, 2011 | |
Chief Executive Officer [Member] | Investor [Member] | Placement Agent [Member] | ||||||||
Common Stock Purchase Warrants (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross proceeds from equity financing | ' | $8,500,000 | ' | ' | ' | ' | ' | ' | $88,125 | ' |
Shares of common stock issued | 25,000 | 4,250,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock price per share | ' | $2 | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant issued to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 255,000 |
Common stock shares issued for warrant exercised | ' | 2,125,000 | ' | ' | ' | ' | ' | ' | 37,500 | ' |
Warrants exercise price | $0.32 | $2.50 | ' | ' | ' | ' | ' | ' | $2.50 | ' |
Deferred financing cost | ' | ' | ' | ' | 4,750 | ' | ' | 4,750 | ' | ' |
Warrants expiration date | 20-May-19 | 19-Jan-16 | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of warrants | ' | 7,915,700 | ' | ' | ' | ' | ' | ' | ' | ' |
Offering cost of warrants | ' | 584,300 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of warrants | ' | ' | 70,275 | ' | 70,275 | ' | 140,550 | ' | ' | ' |
Mark-to-market adjustment on warrant liability | ' | ' | $0 | $70,275 | $70,275 | $1,171,250 | ' | ' | ' | ' |
Net_Loss_Per_Common_Share_Deta
Net Loss Per Common Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Numerator: | ' | ' | ' | ' |
Net loss | ($259,678) | ($1,472,413) | ($1,192,775) | ($1,627,483) |
Basic shares: | ' | ' | ' | ' |
Weighted-average common shares outstanding | 39,152,713 | 38,932,826 | 39,155,340 | 38,920,671 |
Diluted shares: | ' | ' | ' | ' |
Weighted-average shares used to compute basic net loss per share | 39,152,713 | 38,932,826 | 39,155,340 | 38,920,671 |
Weighted-average shares used to compute diluted net loss per share | 39,152,713 | 38,932,826 | 39,155,340 | 38,920,671 |
Net loss per common share: | ' | ' | ' | ' |
Basic | ($0.01) | ($0.04) | ($0.03) | ($0.04) |
Diluted | ($0.01) | ($0.04) | ($0.03) | ($0.04) |
Net_Loss_Per_Common_Share_Deta1
Net Loss Per Common Share (Details Textual) (Stock Option And Warrants [Member]) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Stock Option And Warrants [Member] | ' | ' |
Net Loss Per Common Share (Textual) | ' | ' |
Shares issuable excluded from computation of diluted net loss per share | 16,917,278 | 7,139,165 |
Commitments_Details_Textual
Commitments (Details Textual) (USD $) | 1 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | |||
23-May-11 | Jun. 30, 2014 | Jun. 30, 2013 | Jan. 11, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Jul. 28, 2014 | Jun. 30, 2014 | |
HP [Member] | HP [Member] | HP [Member] | HP [Member] | HP [Member] | Equinix [Member] | ||||
Subsequent Event [Member] | |||||||||
Commitments (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of non-cancellable operating lease | ' | ' | ' | ' | ' | '2 years | ' | ' | ' |
Rent expense | ' | $126,991 | $126,991 | ' | $73,844 | ' | ' | ' | ' |
Letter of Credit from JP Morgan Chase Bank | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' |
Letter of credit facility from JP Morgan Chase Bank, expiration date | ' | ' | ' | 31-Jan-14 | ' | ' | ' | ' | ' |
Monthly recurring fees | ' | ' | ' | ' | ' | ' | ' | ' | 8,450 |
Nonrecurring fees | ' | ' | ' | ' | ' | ' | ' | ' | 9,700 |
Hosting expense | ' | ' | ' | ' | ' | ' | ' | ' | 88,256 |
Letter of credit increased amount | ' | ' | ' | ' | 270,000 | 270,000 | 270,000 | ' | ' |
Start date of lease | 1-Jun-11 | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration date of lease | 30-Mar-15 | ' | ' | ' | ' | ' | ' | ' | ' |
Operating lease, base rent | 973,595 | ' | ' | ' | ' | ' | ' | ' | ' |
Operating lease termination terms | ' | 'The Company can terminate the final five months of the lease with eight months prior notice and the payment of unamortized costs. | ' | ' | ' | ' | ' | ' | ' |
Certificates of Deposit, at Carrying Value | ' | ' | ' | ' | ' | ' | ' | $100,000 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details Textual) (USD $) | Jun. 30, 2014 | Jun. 17, 2014 | 20-May-14 | Apr. 24, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2013 |
Alexander Harrington [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Dcl Ventures Inc [Member] | Dcl Ventures Inc [Member] | Dcl Ventures Inc [Member] | Dcl Ventures Inc [Member] | Dcl Ventures Inc [Member] | Lernar [Member] | Lernar [Member] | Lernar [Member] | Lernar [Member] | ||
Issuance One [Member] | Issuance Two [Member] | Issuance Three [Member] | |||||||||||
Related Party Transactions (Textual) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share purchase under initial investment | ' | ' | ' | ' | 25,000 | 25,000 | 25,000 | 25,000 | 50,000 | ' | ' | ' | ' |
Share purchase under second investment | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' |
Share purchase under third investment | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' |
Investment in DCL Ventures, Inc. | $150,000 | ' | ' | ' | $25,000 | $25,000 | $25,000 | $25,000 | $50,000 | ' | ' | ' | ' |
Consulting agreement term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Initial compensation fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' |
Per month consulting fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' |
Issuance of restricted shares of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 325,000 | 600,000 | 150,000 |
Compensation agreement term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' |
Promissory note, amount | ' | ' | ' | $300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Promissory note payable interest rate | ' | ' | 15.00% | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Promissory note payable, Maturity date | ' | ' | 20-Feb-15 | 24-Jan-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option issued to purchase common stock | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option price per share | ' | $0.31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], HP [Member], USD $) | Jul. 28, 2014 |
Subsequent Event [Member] | HP [Member] | ' |
Subsequent Event (Textual) | ' |
Certificates of Deposit, at Carrying Value | $100,000 |