Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 12, 2013 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'WESTERN CAPITAL RESOURCES, INC. | ' |
Entity Central Index Key | '0001363958 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'WCRS | ' |
Entity Common Stock, Shares Outstanding | ' | 60,220,165 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash | $2,237,688 | $2,246,619 |
Loans receivable (less allowance for losses of $1,127,000 and $1,191,000) | 5,053,625 | 5,084,510 |
Inventory | 1,558,011 | 1,084,510 |
Prepaid expenses and other | 445,581 | 486,239 |
Deferred income taxes | 464,000 | 484,000 |
TOTAL CURRENT ASSETS | 9,758,905 | 9,385,878 |
PROPERTY AND EQUIPMENT | 1,008,848 | 855,719 |
GOODWILL | 12,894,069 | 12,774,069 |
INTANGIBLE ASSETS | 147,656 | 230,891 |
OTHER | 128,093 | 126,991 |
TOTAL ASSETS | 23,937,571 | 23,373,548 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' |
Accounts payable and accrued liabilities | 2,920,159 | 3,119,786 |
Note payable - short-term | 0 | 405,163 |
Current portion long-term debt | 2,750,000 | 210,065 |
Deferred revenue | 278,902 | 293,294 |
TOTAL CURRENT LIABILITIES | 5,949,061 | 4,028,308 |
LONG-TERM LIABILITIES | ' | ' |
Note payable - long-term | 0 | 2,750,000 |
Deferred income taxes | 1,062,000 | 871,000 |
TOTAL LONG-TERM LIABILITIES | 1,062,000 | 3,621,000 |
TOTAL LIABILITIES | 7,011,061 | 7,649,308 |
SHAREHOLDERS' EQUITY | ' | ' |
Common stock, no par value, 240,000,000 shares authorized, 60,220,165 and 60,397,780 shares issued and outstanding. | 0 | 0 |
Additional paid-in capital | 22,353,600 | 22,371,362 |
Accumulated deficit | -5,427,090 | -6,647,122 |
TOTAL SHAREHOLDERS' EQUITY | 16,926,510 | 15,724,240 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $23,937,571 | $23,373,548 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Allowance for losses (in dollars) | $1,127,000 | $1,191,000 |
Common stock, shares authorized | 240,000,000 | 240,000,000 |
Common stock, shares issued | 60,220,165 | 60,397,780 |
Common stock, shares outstanding | 60,220,165 | 60,397,780 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
REVENUES | ' | ' | ' | ' |
Phones and accessories | $3,071,402 | $1,763,282 | $8,700,236 | $6,133,307 |
Payday loan fees | 2,573,788 | 2,601,109 | 7,314,366 | 7,260,767 |
Cellular sales and service fees | 2,245,856 | 1,380,660 | 5,852,024 | 4,859,027 |
Installment interest income | 307,100 | 315,943 | 797,218 | 760,608 |
Check cashing fees | 116,222 | 145,487 | 397,700 | 487,894 |
Other income and fees | 281,902 | 105,040 | 721,918 | 254,657 |
Revenues | 8,596,270 | 6,311,521 | 23,783,462 | 19,756,260 |
STORE EXPENSES | ' | ' | ' | ' |
Phone and accessories cost of sales | 2,553,880 | 1,194,653 | 6,980,858 | 4,125,666 |
Salaries and benefits | 1,958,872 | 1,614,820 | 5,468,861 | 4,908,008 |
Occupancy | 677,089 | 566,214 | 1,953,905 | 1,677,965 |
Provisions for loan losses | 575,355 | 546,080 | 1,320,546 | 1,178,588 |
Advertising | 88,995 | 82,272 | 261,713 | 239,652 |
Depreciation | 89,514 | 72,779 | 255,595 | 212,704 |
Amortization of intangible assets | 36,194 | 56,385 | 112,735 | 172,632 |
Other | 1,141,614 | 884,737 | 2,903,731 | 2,408,473 |
TOTAL STORE EXPENSES | 7,121,513 | 5,017,940 | 19,257,944 | 14,923,688 |
INCOME FROM STORES | 1,474,757 | 1,293,581 | 4,525,518 | 4,832,572 |
GENERAL & ADMINISTRATIVE EXPENSES | ' | ' | ' | ' |
Salaries and benefits | 498,488 | 439,792 | 1,496,730 | 1,396,878 |
Depreciation | 7,200 | 5,616 | 20,028 | 16,722 |
Interest expense | 83,178 | 51,114 | 249,069 | 180,501 |
Other | 258,312 | 246,015 | 798,659 | 824,634 |
TOTAL GENERAL & ADMINISTRATIVE EXPENSES | 847,178 | 742,537 | 2,564,486 | 2,418,735 |
INCOME BEFORE INCOME TAXES | 627,579 | 551,044 | 1,961,032 | 2,413,837 |
INCOME TAX EXPENSE | 235,000 | 211,000 | 741,000 | 931,000 |
NET INCOME | 392,579 | 340,044 | 1,220,032 | 1,482,837 |
SERIES A CONVERTIBLE PREFERRED STOCK DIVIDENDS (assumes all paid) | 0 | -525,000 | 0 | -1,575,000 |
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $392,579 | ($184,956) | $1,220,032 | ($92,163) |
NET INCOME (LOSS) PER COMMON SHARE | ' | ' | ' | ' |
Basic and diluted (in dollars per share) | $0.01 | ($0.03) | $0.02 | ($0.02) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - | ' | ' | ' | ' |
Basic and diluted (in shares) | 60,220,165 | 5,397,780 | 60,253,346 | 5,767,922 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
OPERATING ACTIVITIES | ' | ' |
Net Income | $1,220,032 | $1,482,837 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | ' | ' |
Depreciation | 275,623 | 229,426 |
Amortization | 112,735 | 172,632 |
Deferred income taxes | 211,000 | 151,000 |
Changes in operating assets and liabilities | ' | ' |
Loans receivable | 30,885 | 16,202 |
Inventory | -473,501 | 190,853 |
Prepaid expenses and other assets | 39,556 | -58,483 |
Accounts payable and accrued liabilities | -358,775 | -385,496 |
Deferred revenue | -14,392 | -43,041 |
Net cash provided by operating activities | 1,043,163 | 1,755,930 |
INVESTING ACTIVITIES | ' | ' |
Purchase of property, equipment and intangible | -276,104 | -191,130 |
Acquisition of stores, net of cash acquired | -143,000 | -455,200 |
Net cash used by investing activities | -419,104 | -646,330 |
FINANCING ACTIVITIES | ' | ' |
Payments on notes payable - short-term | -405,163 | -1,000,000 |
Payments on notes payable - long-term | -210,065 | -518,782 |
Advances from notes payable - long-term | 0 | 550,000 |
Common stock redemption | -17,762 | -307,234 |
Net cash used by financing activities | -632,990 | -1,276,016 |
NET DECREASE IN CASH | -8,931 | -166,416 |
CASH | ' | ' |
Beginning of period | 2,246,619 | 1,909,442 |
End of period | 2,237,688 | 1,743,026 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' |
Income taxes paid | 481,253 | 835,968 |
Interest paid | 248,962 | 190,607 |
Noncash investing and financing activities: | ' | ' |
Accrued purchase of property and equipment | $159,148 | $0 |
Basis_of_Presentation_Nature_o
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | ' |
1. Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies – | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared according to the instructions to Form 10-Q and Section 210.8-03(b) of Regulation S-X of the Securities and Exchange Commission (SEC) and, therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted. | |
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three- and nine- month periods ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in our Form 10-K as of and for the year ended December 31, 2012. The condensed consolidated balance sheet at December 31, 2012, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP. | |
Nature of Business | |
Western Capital Resources, Inc. (WCR), through its wholly owned operating subsidiaries, Wyoming Financial Lenders, Inc. (WFL), Express Pawn, Inc. (EP), and PQH Wireless, Inc. (PQH), collectively referred to as the “Company,” provides retail financial services to individuals and operates retail cellular and retail pawn stores primarily in the Midwestern United States. The Company operated 51 “Payday” stores, one payday/pawn store, and one pawn store in nine states (Colorado, Iowa, Kansas, Nebraska, North Dakota, South Dakota, Utah, Wisconsin and Wyoming) as of September 30, 2013. The Company operated 60 cellular retail stores in 14 states (Arizona, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska, Ohio, Oklahoma, Oregon, Texas, and Washington) as of September 30, 2013. The consolidated financial statements include the accounts of WCR, WFL, PQH, and EP. All significant intercompany balances and transactions have been eliminated in consolidation. | |
Through our “Consumer Finance” division, we provide non-recourse cash advance and installment loans, collateralized non-recourse pawn loans, check cashing and other money services, and operate retail pawn stores. The short-term uncollateralized non-recourse consumer loans, known as “cash advance” or “payday” loans, are in amounts that typically range from $100 to $500. Cash advance loans provide customers with cash in exchange for a promissory note with a maturity of generally two to four weeks and the customer’s personal check for the aggregate amount of the cash advanced plus a fee. The fee varies from state to state, based on applicable regulations, and generally ranges from $15 to $22 per each $100 borrowed. To repay a cash advance loan, a customer may pay with cash, in which case their personal check is returned to them, or allow the check to be presented to the bank for collection. Installment loans provide customers with cash in exchange for a promissory note with a maturity of generally three to six months and are unsecured. The fee and interest rate on installment loans vary based on applicable regulations. | |
In August 2012, we opened our first pawn store by converting an existing payday location into a joint payday/pawn store. We opened our second pawn store in May 2013. We provide collateralized non-recourse loans, commonly known as “pawn loans”, with maturities of one to four months, depending on the state. Allowable service charges will vary by state. Our pawn loans earn 15% to 20% per month. The loan amount varies depending on the valuation of each item pawned. We generally lend from 30% to 55% of the collateral’s estimated resale value depending on an evaluation of several factors. Customers then have the option to redeem the pawned merchandise during the term or at expiration of the pawn loan or else forfeit the merchandise to us on expiration. At our pawn stores we sell merchandise acquired through either customer forfeiture of pawn collateral or second-hand merchandise purchased from customers or consigned to us. | |
We also provide title loans and other ancillary consumer financial products and services that are complementary to our cash advance-lending business, such as check-cashing services, money transfers and money orders. In our check-cashing business, we primarily cash payroll checks, but we also cash government assistance, tax refund and insurance checks or drafts. Our fees for cashing payroll checks average approximately 2.5% of the face amount of the check, subject to local market conditions, and this fee is deducted from the cash given to the customer for the check. We display our check-cashing fees in full view of our customers on a menu board in each store and provide a detailed receipt for each transaction. Although we have established guidelines for approving check-cashing transactions, we have no preset limit on the size of the checks we will cash. | |
Our loans and other related services are subject to state regulations (which vary from state to state), federal regulations and local regulations, where applicable. | |
We also operate a “Cellular Retail” division that is an authorized Cricket premier dealer, selling cellular phones and accessories, providing ancillary services and accepting service payments from customers. | |
Use of Estimates | |
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that may affect certain reported amounts and disclosures in the condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. | |
Significant management estimates relate to the loans receivable allowance, percentage of existing pawn loans that will be forfeited, allocation of and carrying value of goodwill and intangible assets, inventory valuation and obsolescence and deferred taxes and tax uncertainties. | |
Revenue Recognition | |
The Company recognizes fees on cash advance loans on a constant-yield basis ratably over the loans’ terms. Title and installment loan fees and interest are recognized using the interest method, except that installment loan origination fees are recognized as they become non-refundable, and installment loan maintenance fees are recognized when earned. The Company recognizes fees on redeemed pawn loans on a constant-yield basis ratably over the loans’ terms. No fees are recognized on forfeited pawn loans. The Company records revenue from check cashing fees, sales of phones, accessories, and pawn inventory, and fees from all other services in the period in which the sale or service is completed. | |
Loans Receivable Allowance | |
The Company maintains a loan loss allowance for anticipated losses for our payday and installment loans. We do not record loan losses or charge-offs of pawn or title loans because the value of the collateral exceeds the loan amount. To estimate the appropriate level of the loan loss allowance, we consider the amount of outstanding loan principal, interest and fees, historical charge offs, current and expected collection patterns and current economic trends. Our current loan loss allowance is based on our historical net write off percentage, net charge offs to loan principal, interest and fee amounts that originated during the last 24 months, applied against the balance of loan principal, interest and fees outstanding. The Company also periodically performs a look-back analysis on its loan loss allowance to verify the historical allowance established tracks with the actual subsequent loan write-offs and recoveries. The Company is aware that as conditions change, it may also need to make additional allowances in future periods. | |
Included in loans receivable are unpaid principal, interest and fee balances of payday, installment, pawn and title loans that have not reached their maturity date, and “late” payday loans that have reached maturity within the last 180 days and have remaining outstanding balances. Late payday loans generally are unpaid loans where a customer’s personal check has been deposited and the check has been returned due to non-sufficient funds in the customer’s account, a closed account, or other reasons. Loans are carried at cost plus accrued interest or fees less payments made and the loans receivable allowance. The Company does not specifically reserve for any individual loan. The Company aggregates loan types for purposes of estimating the loss allowance using a methodology that analyzes historical portfolio statistics and management’s judgment regarding recent trends noted in the portfolio. This methodology takes into account several factors, including the maturity of the store location and charge-off and recovery rates. The Company utilizes a software program to assist with the tracking of its historical portfolio statistics. All returned items are charged-off after 180 days, as collections after that date have not been significant. The loans receivable allowance is reviewed monthly and any adjustment to the loan loss allowance as a result of historical loan performance, current and expected collection patterns and current economic trends is recorded. | |
Net Income Per Common Share | |
Basic net income per common share is computed by dividing the income available to common shareholders by the weighted-average number of common shares outstanding for the year. There were no dilutive securities at September 30, 2013. Diluted net income per common share, applicable to the three and nine months ended September 30, 2013, is computed by dividing the net income available to common shareholders by the sum of the weighted-average number of common shares outstanding plus potentially dilutive common share equivalents (convertible preferred shares) when dilutive. There were no outstanding shares of potentially dilutive Series A Convertible Preferred Stock at September 30, 2013. All shares of potentially dilutive Series A Convertible Preferred Stock outstanding at September 30, 2012 were anti-dilutive and therefore excluded from the dilutive net income per share computation for that period. | |
Segment Reporting | |
The Company has grouped its operations into two segments – Consumer Finance division and Cellular Retail division. The Consumer Finance division provides financial and ancillary services. The Cellular Retail division is an authorized Cricket premier dealer selling cellular phones and accessories, providing ancillary services and accepting service payments from customers. | |
Recent Accounting Pronouncements | |
No new accounting pronouncement issued or effective during the fiscal quarter has had or is expected to have a material impact on the condensed consolidated financial statements. | |
Risks_Inherent_in_the_Operatin
Risks Inherent in the Operating Environment | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Risks and Uncertainties [Abstract] | ' | |||||||||||||||
Concentration Risk Disclosure [Text Block] | ' | |||||||||||||||
2. Risks Inherent in the Operating Environment – | ||||||||||||||||
The Company’s Consumer Finance division activities are highly regulated under numerous local, state, and federal laws and regulations, which are subject to change. New laws or regulations could be enacted that could have a negative impact on the Company’s lending activities. Over the past few years, consumer advocacy groups and certain media reports have advocated governmental and regulatory action to prohibit or severely restrict deferred presentment cash advances. | ||||||||||||||||
The Federal Trade Commission has issued an FTC Consumer Alert (Federal Trade Commission, March 2008, Consumer Alert entitled “Payday Loans Equal Very Costly Cash: Consumers Urged to Consider the Alternatives”) that discourages consumers from obtaining payday loans such as the loans we offer, primarily on the basis that the types of loans we offer are very costly and consumers should consider alternatives to accepting a payday loan. For further information, you may obtain a copy of the alert at www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt060.shtm. The federal government also passed legislation, the 2007 Military Authorization Act, prohibiting us from offering or making our loans to members of the military when the interest and fees calculated as an annual percentage rate exceeds 36%. This limitation effectively prohibits us from utilizing our present business model for cash advance or “payday” lending when dealing with members of the U.S. military, and as a result we do not and do not plan to conduct payday lending business with U.S. military personnel. These facts evidence the widespread belief that our charges relating to our loans are too expensive to be good for consumers. Some consumer advocates and others have characterized payday lending as “predatory.” As a result, there are frequently attempts in the various state legislatures, and occasionally in the U.S. Congress, to limit, restrict or prohibit payday lending. | ||||||||||||||||
In July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was passed by the U.S. Congress and signed into law. Under the Act, a new Consumer Financial Protection Bureau (“CFPB”) will consolidate most federal regulation of financial services offered to consumers, and replace the Office of Thrift Supervision’s seat on the FDIC Board. Almost all credit providers, including mortgage lenders, providers of payday loans, other nonbank financial companies, and banks and credit unions with assets over $10 billion, will be subject to new regulations to be passed by the CFPB. While the CFPB does not appear to have authority to make rules limiting interest rates or fees charged, the scope and extent of the CFPB’s authority will nonetheless be broad, and it is expected that the CFPB will address issues such as rollovers or extensions of payday loans and compliance with federal rules and regulations. Future restrictions on the payday lending industry by the CFPB could have serious consequences for the Company. | ||||||||||||||||
Any adverse change in present federal laws or regulations that govern or otherwise affect payday lending could result in curtailment or cessation of the Company’s operations in certain jurisdictions or locations. Furthermore, any failure to comply with any applicable federal laws or regulations could result in fines, litigation, the closure of one or more store locations or negative publicity. Any such change or failure would have a corresponding impact on the Company’s results of operations and financial condition, primarily through a decrease in revenues resulting from the cessation or curtailment of operations, decrease in operating income through increased legal expenditures or fines, and could also negatively affect the Company’s general business prospects if the Company is unable to effectively replace such revenues in a timely and efficient manner or if negative publicity effects its ability to obtain additional financing as needed. | ||||||||||||||||
The passage of federal or state laws and regulations could, at any point, essentially prohibit the Company from conducting its payday lending business in its current form. Any such legal or regulatory change would certainly have a material and adverse effect on the Company, its operating results, financial condition and prospects, and perhaps even its viability. | ||||||||||||||||
On July 12, 2013, AT&T announced an agreement between AT&T and Leap Wireless to acquire Leap Wireless. Leap Wireless owns the Cricket Wireless business that is a critical component and focus of the Company’s Cellular Retail division. AT&T’s acquisition of Leap Wireless is subject to a number of conditions, including approval from the Federal Trade Commission for purposes of federal anti-trust laws. On October 30, 2013, Leap Wireless held a special shareholder meeting at which its shareholders approved, among other things, the July 12, 2013 Agreement and Plan of Merger with AT&T. | ||||||||||||||||
For the nine months ended September 30, 2013 and 2012, the Company had significant revenues by state (shown as a percentage of applicable division’s revenue when over 10%) as follows: | ||||||||||||||||
Consumer Finance Division | Cellular Retail Division | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
% of Revenues | % of Revenues | % of Revenues | % of Revenues | |||||||||||||
Nebraska | 28 | % | 26 | % | Missouri | * | % | 15 | % | |||||||
Wyoming | 15 | % | 15 | % | Nebraska | 27 | % | 13 | % | |||||||
North Dakota | 19 | % | 19 | % | Texas | 12 | % | 13 | % | |||||||
Iowa | 12 | % | 12 | % | Indiana | * | % | 11 | % | |||||||
* Less than 10% | ||||||||||||||||
Loans_Receivable
Loans Receivable | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Receivables [Abstract] | ' | |||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | |||||||||||||
3. Loans Receivable – | ||||||||||||||
At September 30, 2013 and December 31, 2012 our outstanding loans receivable aging was as follows: | ||||||||||||||
September 30, 2013 | ||||||||||||||
Payday | Installment | Pawn & | Total | |||||||||||
Title | ||||||||||||||
Current | $ | 4,139,950 | $ | 265,264 | $ | 279,297 | $ | 4,684,511 | ||||||
30-Jan | 289,985 | 102,580 | - | 392,565 | ||||||||||
31-60 | 237,222 | 60,305 | - | 297,527 | ||||||||||
61-90 | 238,541 | 26,299 | - | 264,840 | ||||||||||
91-120 | 208,944 | 7,506 | - | 216,450 | ||||||||||
121-150 | 191,414 | 3,401 | - | 194,815 | ||||||||||
151-180 | 124,670 | 5,247 | - | 129,917 | ||||||||||
5,430,726 | 470,602 | 279,297 | 6,180,625 | |||||||||||
Allowance for losses | -1,063,000 | -64,000 | - | -1,127,000 | ||||||||||
$ | 4,367,726 | $ | 406,602 | $ | 279,297 | $ | 5,053,625 | |||||||
31-Dec-12 | ||||||||||||||
Payday | Installment | Pawn & Title | Total | |||||||||||
Current | $ | 4,318,517 | $ | 391,137 | $ | 171,344 | $ | 4,880,998 | ||||||
30-Jan | 269,091 | 47,538 | - | 316,629 | ||||||||||
31-60 | 234,514 | 16,285 | - | 250,799 | ||||||||||
61-90 | 216,717 | 3,201 | - | 219,918 | ||||||||||
91-120 | 202,642 | 1,051 | - | 203,693 | ||||||||||
121-150 | 215,562 | 388 | - | 215,950 | ||||||||||
151-180 | 187,523 | - | - | 187,523 | ||||||||||
5,644,566 | 459,600 | 171,344 | 6,275,510 | |||||||||||
Allowance for losses | -1,119,000 | -72,000 | - | -1,191,000 | ||||||||||
$ | 4,525,566 | $ | 387,600 | $ | 171,344 | $ | 5,084,510 | |||||||
Loans_Receivable_Allowance
Loans Receivable Allowance | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Provision for Loan and Lease Losses [Abstract] | ' | |||||||
Allowance for Credit Losses [Text Block] | ' | |||||||
4. Loans Receivable Allowance – | ||||||||
As a result of the Company’s collection efforts, it historically writes off approximately 41% of the returned payday items. Based on the number of days past the check return date, write-offs of payday returned items historically have tracked at the following approximate percentages: 1 to 30 days – 42%; 31 to 60 days – 67%; 61 to 90 days – 84%; 91 to 120 days – 89%; and 121 to 180 days – 91%. A rollforward of the Company’s loans receivable allowance for the nine months ended September 30, 2013 and 2012 is as follows: | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Loans receivable allowance, beginning of period | $ | 1,191,000 | $ | 1,001,000 | ||||
Provision for loan losses charged to expense | 1,320,546 | 1,178,588 | ||||||
Charge-offs, net | -1,384,546 | -1,095,588 | ||||||
Loans receivable allowance, end of period | $ | 1,127,000 | $ | 1,084,000 | ||||
Note_Payable_Short_Term
Note Payable - Short Term | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Short-term Debt [Text Block] | ' | |||||||
5. Note Payable – Short Term – | ||||||||
The Company’s short-term debt is as follows: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Note payable to shareholders related to preferred stock conversion | $ | - | $ | 405,163 | ||||
to common, due and payable, if no earlier payment demand is | ||||||||
made, on April 30, 2013. The note accrues no interest. | ||||||||
Notes_Payable_Long_Term
Notes Payable - Long Term | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term Debt [Text Block] | ' | |||||||
6. Notes Payable – Long Term – | ||||||||
The Company’s long-term debt is as follows: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Note payable (with a credit limit of $3,000,000) to River City | $ | 2,750,000 | $ | 2,750,000 | ||||
Equity, Inc., a related party, with interest payable monthly | ||||||||
at 12% due March 31, 2014 and upon certain events can be | ||||||||
collateralized by substantially all assets of WCR. | ||||||||
Note payable to a related party with interest payable monthly | - | 94,397 | ||||||
at 10%, due March 1, 2013 and collateralized by | ||||||||
substantially all assets of select locations of PQH. | ||||||||
Note payable to a related party with interest payable monthly | - | 115,668 | ||||||
at 10%, due April 1, 2013 and collateralized by | ||||||||
substantially all assets of select locations of PQH. | ||||||||
Total | 2,750,000 | 2,960,065 | ||||||
Less current maturities | 2,750,000 | 210,065 | ||||||
$ | $ | 2,750,000 | ||||||
Other_Expense
Other Expense | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Other Expense [Abstract] | ' | |||||||||||||
Other Expense [Text Block] | ' | |||||||||||||
7. Other Expense – | ||||||||||||||
A breakout of other expense is as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Store expenses | ||||||||||||||
Bank fees | $ | 109,892 | $ | 79,957 | $ | 316,208 | $ | 237,194 | ||||||
Collection costs | 118,510 | 125,368 | 356,425 | 360,894 | ||||||||||
Repairs & maintenance | 81,056 | 67,860 | 194,470 | 163,383 | ||||||||||
Supplies | 208,665 | 90,267 | 371,426 | 276,788 | ||||||||||
Telephone | 46,353 | 36,114 | 125,468 | 113,593 | ||||||||||
Utilities and network lines | 207,372 | 189,400 | 585,422 | 525,059 | ||||||||||
Other | 369,766 | 295,771 | 954,312 | 731,562 | ||||||||||
$ | 1,141,614 | $ | 884,737 | $ | 2,903,731 | $ | 2,408,473 | |||||||
General & administrative expenses | ||||||||||||||
Professional fees | $ | 71,494 | $ | 43,722 | $ | 262,855 | $ | 190,936 | ||||||
Management and consulting fees | 111,826 | 137,687 | 331,335 | 409,129 | ||||||||||
Other | 74,992 | 64,606 | 204,469 | 224,569 | ||||||||||
$ | 258,312 | $ | 246,015 | $ | 798,659 | $ | 824,634 | |||||||
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||||||||||||||
8. Segment Information – | ||||||||||||||||||||
The Company has grouped its operations into two segments – Consumer Finance and Cellular Retail. The Consumer Finance segment provides financial and ancillary services. The Cellular Retail segment is a dealer for Cricket cellular carrier selling cellular phones and accessories, ancillary services and serving as a payment center for customers. | ||||||||||||||||||||
Segment information related to the three and nine months ended September 30, 2013 and 2012 is set forth below: | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||
Consumer | Cellular | Total | Consumer | Cellular | Total | |||||||||||||||
Finance | Retail | Finance | Retail | |||||||||||||||||
Revenues from external customers | $ | 3,287,935 | $ | 5,308,335 | $ | 8,596,270 | $ | 3,185,296 | $ | 3,126,225 | $ | 6,311,521 | ||||||||
Net income | $ | 350,768 | $ | 41,811 | $ | 392,579 | $ | 419,095 | $ | -79,051 | $ | 340,044 | ||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||
Consumer | Cellular | Total | Consumer | Cellular | Total | |||||||||||||||
Finance | Retail | Finance | Retail | |||||||||||||||||
Revenues from external customers | $ | 9,269,693 | $ | 14,513,769 | $ | 23,783,462 | $ | 8,814,127 | $ | 10,942,133 | $ | 19,756,260 | ||||||||
Net income (loss) | $ | 1,038,856 | $ | 181,176 | $ | 1,220,032 | $ | 1,160,467 | $ | 322,370 | $ | 1,482,837 | ||||||||
Total segment assets | $ | 15,694,275 | $ | 8,243,296 | $ | 23,937,571 | $ | 15,339,215 | $ | 6,644,845 | $ | 21,984,060 | ||||||||
Employment_Agreement
Employment Agreement | 9 Months Ended |
Sep. 30, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Compensation and Employee Benefit Plans [Text Block] | ' |
9. Employment Agreement – | |
On April 11, 2013, the Company entered into an Amended and Restated Employment Agreement with its Chief Executive Officer, Mr. John Quandahl, to be effective as of April 1, 2013, due to the fact that the Company’s earlier Employment Agreement with Mr. Quandahl expired as of March 31, 2013. The amended and restated agreement has a term of three years and contains other terms and conditions that are identical to those of the original agreement. Specifically, the amended and restated agreement provides an annual base salary and eligibility for an annual performance-based cash bonus pool for management. | |
The performance-based bonus provisions of the amended and restated agreement permit members of the Company’s management to receive annual bonus payments based on adjusted EBITDA targets annually established by the Board of Directors. If the Company’s actual adjusted EBITDA performance for a particular annual period ranges from 85-100% of the established adjusted EBITDA target, management will be entitled to receive a cash bonus consisting of 7.5% of the actual adjusted EBITDA. Mr. Quandahl’s share of the bonus pool for any particular year is expected to be 10-50% (but may be more), and the bonus pool will be payable to other management-level participants in the bonus pool, if any, selected from time to time by the Board of Directors in its discretion. If the Company’s actual adjusted EBITDA performance for a particular annual period is less than 85% of the established adjusted EBITDA target, no bonus will be payable, and if such performance exceeds 100% of the established adjusted EBITDA target, the bonus pool will include 15% of the amount by which such performance exceeds the target. In addition to the adjusted EBITDA threshold, the amended and restated agreement also contains capital expenditure and working capital thresholds. | |
The amended and restated agreement also contains customary non-solicitation and non-competition provisions as well as provisions for severance payments upon termination by the Company without cause or upon termination by Mr. Quandahl with good reason. | |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
10. Subsequent Events – | |
We evaluated all events or transactions that occurred after September 30, 2013 up through November 12, 2013, the date we issued these financial statements. During this period we did not have any material subsequent events that impacted our financial statements. | |
Basis_of_Presentation_Nature_o1
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared according to the instructions to Form 10-Q and Section 210.8-03(b) of Regulation S-X of the Securities and Exchange Commission (SEC) and, therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted. | |
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three- and nine- month periods ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in our Form 10-K as of and for the year ended December 31, 2012. The condensed consolidated balance sheet at December 31, 2012, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP. | |
Nature of Business [Policy Text Block] | ' |
Nature of Business | |
Western Capital Resources, Inc. (WCR), through its wholly owned operating subsidiaries, Wyoming Financial Lenders, Inc. (WFL), Express Pawn, Inc. (EP), and PQH Wireless, Inc. (PQH), collectively referred to as the “Company,” provides retail financial services to individuals and operates retail cellular and retail pawn stores primarily in the Midwestern United States. The Company operated 51 “Payday” stores, one payday/pawn store, and one pawn store in nine states (Colorado, Iowa, Kansas, Nebraska, North Dakota, South Dakota, Utah, Wisconsin and Wyoming) as of September 30, 2013. The Company operated 60 cellular retail stores in 14 states (Arizona, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska, Ohio, Oklahoma, Oregon, Texas, and Washington) as of September 30, 2013. The consolidated financial statements include the accounts of WCR, WFL, PQH, and EP. All significant intercompany balances and transactions have been eliminated in consolidation. | |
Through our “Consumer Finance” division, we provide non-recourse cash advance and installment loans, collateralized non-recourse pawn loans, check cashing and other money services, and operate retail pawn stores. The short-term uncollateralized non-recourse consumer loans, known as “cash advance” or “payday” loans, are in amounts that typically range from $100 to $500. Cash advance loans provide customers with cash in exchange for a promissory note with a maturity of generally two to four weeks and the customer’s personal check for the aggregate amount of the cash advanced plus a fee. The fee varies from state to state, based on applicable regulations, and generally ranges from $15 to $22 per each $100 borrowed. To repay a cash advance loan, a customer may pay with cash, in which case their personal check is returned to them, or allow the check to be presented to the bank for collection. Installment loans provide customers with cash in exchange for a promissory note with a maturity of generally three to six months and are unsecured. The fee and interest rate on installment loans vary based on applicable regulations. | |
In August 2012, we opened our first pawn store by converting an existing payday location into a joint payday/pawn store. We opened our second pawn store in May 2013. We provide collateralized non-recourse loans, commonly known as “pawn loans”, with maturities of one to four months, depending on the state. Allowable service charges will vary by state. Our pawn loans earn 15% to 20% per month. The loan amount varies depending on the valuation of each item pawned. We generally lend from 30% to 55% of the collateral’s estimated resale value depending on an evaluation of several factors. Customers then have the option to redeem the pawned merchandise during the term or at expiration of the pawn loan or else forfeit the merchandise to us on expiration. At our pawn stores we sell merchandise acquired through either customer forfeiture of pawn collateral or second-hand merchandise purchased from customers or consigned to us. | |
We also provide title loans and other ancillary consumer financial products and services that are complementary to our cash advance-lending business, such as check-cashing services, money transfers and money orders. In our check-cashing business, we primarily cash payroll checks, but we also cash government assistance, tax refund and insurance checks or drafts. Our fees for cashing payroll checks average approximately 2.5% of the face amount of the check, subject to local market conditions, and this fee is deducted from the cash given to the customer for the check. We display our check-cashing fees in full view of our customers on a menu board in each store and provide a detailed receipt for each transaction. Although we have established guidelines for approving check-cashing transactions, we have no preset limit on the size of the checks we will cash. | |
Our loans and other related services are subject to state regulations (which vary from state to state), federal regulations and local regulations, where applicable. | |
We also operate a “Cellular Retail” division that is an authorized Cricket premier dealer, selling cellular phones and accessories, providing ancillary services and accepting service payments from customers. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates | |
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that may affect certain reported amounts and disclosures in the condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. | |
Significant management estimates relate to the loans receivable allowance, percentage of existing pawn loans that will be forfeited, allocation of and carrying value of goodwill and intangible assets, inventory valuation and obsolescence and deferred taxes and tax uncertainties. | |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition | |
The Company recognizes fees on cash advance loans on a constant-yield basis ratably over the loans’ terms. Title and installment loan fees and interest are recognized using the interest method, except that installment loan origination fees are recognized as they become non-refundable, and installment loan maintenance fees are recognized when earned. The Company recognizes fees on redeemed pawn loans on a constant-yield basis ratably over the loans’ terms. No fees are recognized on forfeited pawn loans. The Company records revenue from check cashing fees, sales of phones, accessories, and pawn inventory, and fees from all other services in the period in which the sale or service is completed. | |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | ' |
Loans Receivable Allowance | |
The Company maintains a loan loss allowance for anticipated losses for our payday and installment loans. We do not record loan losses or charge-offs of pawn or title loans because the value of the collateral exceeds the loan amount. To estimate the appropriate level of the loan loss allowance, we consider the amount of outstanding loan principal, interest and fees, historical charge offs, current and expected collection patterns and current economic trends. Our current loan loss allowance is based on our historical net write off percentage, net charge offs to loan principal, interest and fee amounts that originated during the last 24 months, applied against the balance of loan principal, interest and fees outstanding. The Company also periodically performs a look-back analysis on its loan loss allowance to verify the historical allowance established tracks with the actual subsequent loan write-offs and recoveries. The Company is aware that as conditions change, it may also need to make additional allowances in future periods. | |
Included in loans receivable are unpaid principal, interest and fee balances of payday, installment, pawn and title loans that have not reached their maturity date, and “late” payday loans that have reached maturity within the last 180 days and have remaining outstanding balances. Late payday loans generally are unpaid loans where a customer’s personal check has been deposited and the check has been returned due to non-sufficient funds in the customer’s account, a closed account, or other reasons. Loans are carried at cost plus accrued interest or fees less payments made and the loans receivable allowance. The Company does not specifically reserve for any individual loan. The Company aggregates loan types for purposes of estimating the loss allowance using a methodology that analyzes historical portfolio statistics and management’s judgment regarding recent trends noted in the portfolio. This methodology takes into account several factors, including the maturity of the store location and charge-off and recovery rates. The Company utilizes a software program to assist with the tracking of its historical portfolio statistics. All returned items are charged-off after 180 days, as collections after that date have not been significant. The loans receivable allowance is reviewed monthly and any adjustment to the loan loss allowance as a result of historical loan performance, current and expected collection patterns and current economic trends is recorded. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Net Income Per Common Share | |
Basic net income per common share is computed by dividing the income available to common shareholders by the weighted-average number of common shares outstanding for the year. There were no dilutive securities at September 30, 2013. Diluted net income per common share, applicable to the three and nine months ended September 30, 2013, is computed by dividing the net income available to common shareholders by the sum of the weighted-average number of common shares outstanding plus potentially dilutive common share equivalents (convertible preferred shares) when dilutive. There were no outstanding shares of potentially dilutive Series A Convertible Preferred Stock at September 30, 2013. All shares of potentially dilutive Series A Convertible Preferred Stock outstanding at September 30, 2012 were anti-dilutive and therefore excluded from the dilutive net income per share computation for that period. | |
Segment Reporting, Policy [Policy Text Block] | ' |
Segment Reporting | |
The Company has grouped its operations into two segments – Consumer Finance division and Cellular Retail division. The Consumer Finance division provides financial and ancillary services. The Cellular Retail division is an authorized Cricket premier dealer selling cellular phones and accessories, providing ancillary services and accepting service payments from customers. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recent Accounting Pronouncements | |
No new accounting pronouncement issued or effective during the fiscal quarter has had or is expected to have a material impact on the condensed consolidated financial statements. | |
Risks_Inherent_in_the_Operatin1
Risks Inherent in the Operating Environment (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Risks and Uncertainties [Abstract] | ' | |||||||||||||||
Disclosure of Significant Revenue, Percentages by State by Division [Table Text Block] | ' | |||||||||||||||
For the nine months ended September 30, 2013 and 2012, the Company had significant revenues by state (shown as a percentage of applicable division’s revenue when over 10%) as follows: | ||||||||||||||||
Consumer Finance Division | Cellular Retail Division | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
% of Revenues | % of Revenues | % of Revenues | % of Revenues | |||||||||||||
Nebraska | 28 | % | 26 | % | Missouri | * | % | 15 | % | |||||||
Wyoming | 15 | % | 15 | % | Nebraska | 27 | % | 13 | % | |||||||
North Dakota | 19 | % | 19 | % | Texas | 12 | % | 13 | % | |||||||
Iowa | 12 | % | 12 | % | Indiana | * | % | 11 | % | |||||||
* Less than 10% | ||||||||||||||||
Loans_Receivable_Tables
Loans Receivable (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Receivables [Abstract] | ' | |||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||||||||
At September 30, 2013 and December 31, 2012 our outstanding loans receivable aging was as follows: | ||||||||||||||
September 30, 2013 | ||||||||||||||
Payday | Installment | Pawn & | Total | |||||||||||
Title | ||||||||||||||
Current | $ | 4,139,950 | $ | 265,264 | $ | 279,297 | $ | 4,684,511 | ||||||
30-Jan | 289,985 | 102,580 | - | 392,565 | ||||||||||
31-60 | 237,222 | 60,305 | - | 297,527 | ||||||||||
61-90 | 238,541 | 26,299 | - | 264,840 | ||||||||||
91-120 | 208,944 | 7,506 | - | 216,450 | ||||||||||
121-150 | 191,414 | 3,401 | - | 194,815 | ||||||||||
151-180 | 124,670 | 5,247 | - | 129,917 | ||||||||||
5,430,726 | 470,602 | 279,297 | 6,180,625 | |||||||||||
Allowance for losses | -1,063,000 | -64,000 | - | -1,127,000 | ||||||||||
$ | 4,367,726 | $ | 406,602 | $ | 279,297 | $ | 5,053,625 | |||||||
31-Dec-12 | ||||||||||||||
Payday | Installment | Pawn & Title | Total | |||||||||||
Current | $ | 4,318,517 | $ | 391,137 | $ | 171,344 | $ | 4,880,998 | ||||||
30-Jan | 269,091 | 47,538 | - | 316,629 | ||||||||||
31-60 | 234,514 | 16,285 | - | 250,799 | ||||||||||
61-90 | 216,717 | 3,201 | - | 219,918 | ||||||||||
91-120 | 202,642 | 1,051 | - | 203,693 | ||||||||||
121-150 | 215,562 | 388 | - | 215,950 | ||||||||||
151-180 | 187,523 | - | - | 187,523 | ||||||||||
5,644,566 | 459,600 | 171,344 | 6,275,510 | |||||||||||
Allowance for losses | -1,119,000 | -72,000 | - | -1,191,000 | ||||||||||
$ | 4,525,566 | $ | 387,600 | $ | 171,344 | $ | 5,084,510 | |||||||
Loans_Receivable_Allowance_Tab
Loans Receivable Allowance (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Provision for Loan and Lease Losses [Abstract] | ' | |||||||
Schedule of Credit Losses for Financing Receivables, Current [Table Text Block] | ' | |||||||
A rollforward of the Company’s loans receivable allowance for the nine months ended September 30, 2013 and 2012 is as follows: | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Loans receivable allowance, beginning of period | $ | 1,191,000 | $ | 1,001,000 | ||||
Provision for loan losses charged to expense | 1,320,546 | 1,178,588 | ||||||
Charge-offs, net | -1,384,546 | -1,095,588 | ||||||
Loans receivable allowance, end of period | $ | 1,127,000 | $ | 1,084,000 | ||||
Note_Payable_Short_Term_Tables
Note Payable - Short Term (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Short-term Debt [Table Text Block] | ' | |||||||
The Company’s short-term debt is as follows: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Note payable to shareholders related to preferred stock conversion | $ | - | $ | 405,163 | ||||
to common, due and payable, if no earlier payment demand is | ||||||||
made, on April 30, 2013. The note accrues no interest. | ||||||||
Notes_Payable_Long_Term_Tables
Notes Payable - Long Term (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||||||
The Company’s long-term debt is as follows: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Note payable (with a credit limit of $3,000,000) to River City | $ | 2,750,000 | $ | 2,750,000 | ||||
Equity, Inc., a related party, with interest payable monthly | ||||||||
at 12% due March 31, 2014 and upon certain events can be | ||||||||
collateralized by substantially all assets of WCR. | ||||||||
Note payable to a related party with interest payable monthly | - | 94,397 | ||||||
at 10%, due March 1, 2013 and collateralized by | ||||||||
substantially all assets of select locations of PQH. | ||||||||
Note payable to a related party with interest payable monthly | - | 115,668 | ||||||
at 10%, due April 1, 2013 and collateralized by | ||||||||
substantially all assets of select locations of PQH. | ||||||||
Total | 2,750,000 | 2,960,065 | ||||||
Less current maturities | 2,750,000 | 210,065 | ||||||
$ | $ | 2,750,000 | ||||||
Other_Expense_Tables
Other Expense (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Other Expense [Abstract] | ' | |||||||||||||
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | ' | |||||||||||||
A breakout of other expense is as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Store expenses | ||||||||||||||
Bank fees | $ | 109,892 | $ | 79,957 | $ | 316,208 | $ | 237,194 | ||||||
Collection costs | 118,510 | 125,368 | 356,425 | 360,894 | ||||||||||
Repairs & maintenance | 81,056 | 67,860 | 194,470 | 163,383 | ||||||||||
Supplies | 208,665 | 90,267 | 371,426 | 276,788 | ||||||||||
Telephone | 46,353 | 36,114 | 125,468 | 113,593 | ||||||||||
Utilities and network lines | 207,372 | 189,400 | 585,422 | 525,059 | ||||||||||
Other | 369,766 | 295,771 | 954,312 | 731,562 | ||||||||||
$ | 1,141,614 | $ | 884,737 | $ | 2,903,731 | $ | 2,408,473 | |||||||
General & administrative expenses | ||||||||||||||
Professional fees | $ | 71,494 | $ | 43,722 | $ | 262,855 | $ | 190,936 | ||||||
Management and consulting fees | 111,826 | 137,687 | 331,335 | 409,129 | ||||||||||
Other | 74,992 | 64,606 | 204,469 | 224,569 | ||||||||||
$ | 258,312 | $ | 246,015 | $ | 798,659 | $ | 824,634 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||||||||
Segment information related to the three and nine months ended September 30, 2013 and 2012 is set forth below: | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||
Consumer | Cellular | Total | Consumer | Cellular | Total | |||||||||||||||
Finance | Retail | Finance | Retail | |||||||||||||||||
Revenues from external customers | $ | 3,287,935 | $ | 5,308,335 | $ | 8,596,270 | $ | 3,185,296 | $ | 3,126,225 | $ | 6,311,521 | ||||||||
Net income | $ | 350,768 | $ | 41,811 | $ | 392,579 | $ | 419,095 | $ | -79,051 | $ | 340,044 | ||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||
Consumer | Cellular | Total | Consumer | Cellular | Total | |||||||||||||||
Finance | Retail | Finance | Retail | |||||||||||||||||
Revenues from external customers | $ | 9,269,693 | $ | 14,513,769 | $ | 23,783,462 | $ | 8,814,127 | $ | 10,942,133 | $ | 19,756,260 | ||||||||
Net income (loss) | $ | 1,038,856 | $ | 181,176 | $ | 1,220,032 | $ | 1,160,467 | $ | 322,370 | $ | 1,482,837 | ||||||||
Total segment assets | $ | 15,694,275 | $ | 8,243,296 | $ | 23,937,571 | $ | 15,339,215 | $ | 6,644,845 | $ | 21,984,060 | ||||||||
Risks_Inherent_in_the_Operatin2
Risks Inherent in the Operating Environment (Details) (Geographic Concentration Risk [Member]) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | ||
Consumer Finance Division [Member] | Nebraska [Member] | ' | ' | |
Consumer Finance Division, Revenues By State, Percentage | 28.00% | 26.00% | |
Consumer Finance Division [Member] | Wyoming [Member] | ' | ' | |
Consumer Finance Division, Revenues By State, Percentage | 15.00% | 15.00% | |
Consumer Finance Division [Member] | North Dakota [Member] | ' | ' | |
Consumer Finance Division, Revenues By State, Percentage | 19.00% | 19.00% | |
Consumer Finance Division [Member] | Iowa [Member] | ' | ' | |
Consumer Finance Division, Revenues By State, Percentage | 12.00% | 12.00% | |
Cellular Retail Division [Member] | Missouri [Member] | ' | ' | |
Cellular Retail Division, Revenues By State, Percentage | ' | [1] | 15.00% |
Cellular Retail Division [Member] | Nebraska [Member] | ' | ' | |
Cellular Retail Division, Revenues By State, Percentage | 27.00% | 13.00% | |
Cellular Retail Division [Member] | Texas [Member] | ' | ' | |
Cellular Retail Division, Revenues By State, Percentage | 12.00% | 13.00% | |
Cellular Retail Division [Member] | Indiana [Member] | ' | ' | |
Cellular Retail Division, Revenues By State, Percentage | ' | [1] | 11.00% |
[1] | Less than 10% |
Loans_Receivable_Details
Loans Receivable (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
Outstanding loans receivable, Gross | $6,180,625 | $6,275,510 | ' | ' |
Allowance for losses | -1,127,000 | -1,191,000 | -1,084,000 | -1,001,000 |
Outstanding loans receivable, Net | 5,053,625 | 5,084,510 | ' | ' |
Payday [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 5,430,726 | 5,644,566 | ' | ' |
Allowance for losses | -1,063,000 | -1,119,000 | ' | ' |
Outstanding loans receivable, Net | 4,367,726 | 4,525,566 | ' | ' |
Installment [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 470,602 | 459,600 | ' | ' |
Allowance for losses | -64,000 | -72,000 | ' | ' |
Outstanding loans receivable, Net | 406,602 | 387,600 | ' | ' |
Pawn & Title [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 279,297 | 171,344 | ' | ' |
Allowance for losses | 0 | 0 | ' | ' |
Outstanding loans receivable, Net | 279,297 | 171,344 | ' | ' |
Current [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 4,684,511 | 4,880,998 | ' | ' |
Current [Member] | Payday [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 4,139,950 | 4,318,517 | ' | ' |
Current [Member] | Installment [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 265,264 | 391,137 | ' | ' |
Current [Member] | Pawn & Title [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 279,297 | 171,344 | ' | ' |
Delinquent 1 to 30 Days [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 392,565 | 316,629 | ' | ' |
Delinquent 1 to 30 Days [Member] | Payday [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 289,985 | 269,091 | ' | ' |
Delinquent 1 to 30 Days [Member] | Installment [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 102,580 | 47,538 | ' | ' |
Delinquent 1 to 30 Days [Member] | Pawn & Title [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 0 | 0 | ' | ' |
Delinquent 31 to 60 Days [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 297,527 | 250,799 | ' | ' |
Delinquent 31 to 60 Days [Member] | Payday [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 237,222 | 234,514 | ' | ' |
Delinquent 31 to 60 Days [Member] | Installment [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 60,305 | 16,285 | ' | ' |
Delinquent 31 to 60 Days [Member] | Pawn & Title [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 0 | 0 | ' | ' |
Delinquent 61 to 90 Days [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 264,840 | 219,918 | ' | ' |
Delinquent 61 to 90 Days [Member] | Payday [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 238,541 | 216,717 | ' | ' |
Delinquent 61 to 90 Days [Member] | Installment [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 26,299 | 3,201 | ' | ' |
Delinquent 61 to 90 Days [Member] | Pawn & Title [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 0 | 0 | ' | ' |
Delinquent 91 to 120 Days [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 216,450 | 203,693 | ' | ' |
Delinquent 91 to 120 Days [Member] | Payday [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 208,944 | 202,642 | ' | ' |
Delinquent 91 to 120 Days [Member] | Installment [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 7,506 | 1,051 | ' | ' |
Delinquent 91 to 120 Days [Member] | Pawn & Title [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 0 | 0 | ' | ' |
Delinquent 121 to 150 Days [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 194,815 | 215,950 | ' | ' |
Delinquent 121 to 150 Days [Member] | Payday [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 191,414 | 215,562 | ' | ' |
Delinquent 121 to 150 Days [Member] | Installment [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 3,401 | 388 | ' | ' |
Delinquent 121 to 150 Days [Member] | Pawn & Title [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 0 | 0 | ' | ' |
Delinquent 151 to 180 Days [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 129,917 | 187,523 | ' | ' |
Delinquent 151 to 180 Days [Member] | Payday [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 124,670 | 187,523 | ' | ' |
Delinquent 151 to 180 Days [Member] | Installment [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 5,247 | 0 | ' | ' |
Delinquent 151 to 180 Days [Member] | Pawn & Title [Member] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | $0 | $0 | ' | ' |
Loans_Receivable_Allowance_Det
Loans Receivable Allowance (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Loans receivable allowance, beginning of period | $1,191,000 | $1,001,000 |
Provision for loan losses charged to expense | 1,320,546 | 1,178,588 |
Charge-offs, net | -1,384,546 | -1,095,588 |
Loans receivable allowance, end of period | $1,127,000 | $1,084,000 |
Loans_Receivable_Allowance_Det1
Loans Receivable Allowance (Details Textual) | Sep. 30, 2013 |
Percentage of Historical Written Off | 41.00% |
Delinquent 1 to 30 Days [Member] | ' |
Percentage of Historical Written Off | 42.00% |
Delinquent 31 to 60 Days [Member] | ' |
Percentage of Historical Written Off | 67.00% |
Delinquent 61 to 90 Days [Member] | ' |
Percentage of Historical Written Off | 84.00% |
Delinquent 91 to 120 Days [Member] | ' |
Percentage of Historical Written Off | 89.00% |
Delinquent 121 to 180 Days [Member] | ' |
Percentage of Historical Written Off | 91.00% |
Note_Payable_Short_Term_Detail
Note Payable - Short Term (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Note payable to shareholders related to preferred stock conversion to common, due and payable, if no earlier payment demand is made, on April 30, 2013. The note accrues no interest. | $0 | $405,163 |
Note_Payable_Short_Term_Detail1
Note Payable - Short Term (Details Textual) (Notes Payable to Shareholder [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
Notes Payable to Shareholder [Member] | ' |
Debt Instrument, Maturity Date | 30-Apr-13 |
Notes_Payable_Long_Term_Detail
Notes Payable - Long Term (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Notes Payable | $2,750,000 | $2,960,065 |
Less current maturities | 2,750,000 | 210,065 |
Notes Payable, Noncurrent | 0 | 2,750,000 |
Note Payable to River City Equity [Member] | ' | ' |
Notes Payable | 2,750,000 | 2,750,000 |
Note Payable to Related Party1 [Member] | ' | ' |
Notes Payable | 0 | 94,397 |
Note Payable to Related Party2 [Member] | ' | ' |
Notes Payable | $0 | $115,668 |
Notes_Payable_Long_Term_Detail1
Notes Payable - Long Term (Details Textual) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Note Payable to River City Equity [Member] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $3,000,000 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 12.00% |
Debt Instrument, Maturity Date | 31-Mar-14 |
Note Payable to Related Party1 [Member] | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 10.00% |
Debt Instrument, Maturity Date | 1-Mar-13 |
Note Payable to Related Party2 [Member] | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 10.00% |
Debt Instrument, Maturity Date | 1-Apr-13 |
Other_Expense_Details
Other Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Store expenses | ' | ' | ' | ' |
Bank fees | $109,892 | $79,957 | $316,208 | $237,194 |
Collection costs | 118,510 | 125,368 | 356,425 | 360,894 |
Repairs & maintenance | 81,056 | 67,860 | 194,470 | 163,383 |
Supplies | 208,665 | 90,267 | 371,426 | 276,788 |
Telephone | 46,353 | 36,114 | 125,468 | 113,593 |
Utilities and network lines | 207,372 | 189,400 | 585,422 | 525,059 |
Other | 369,766 | 295,771 | 954,312 | 731,562 |
Total Store expenses | 1,141,614 | 884,737 | 2,903,731 | 2,408,473 |
General & administrative expenses | ' | ' | ' | ' |
Professional fees | 71,494 | 43,722 | 262,855 | 190,936 |
Management and consulting fees | 111,826 | 137,687 | 331,335 | 409,129 |
Other | 74,992 | 64,606 | 204,469 | 224,569 |
Total General & administrative expenses | $258,312 | $246,015 | $798,659 | $824,634 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Revenues from external customers | $8,596,270 | $6,311,521 | $23,783,462 | $19,756,260 | ' |
Net income (loss) | 392,579 | 340,044 | 1,220,032 | 1,482,837 | ' |
Total segment assets | 23,937,571 | 21,984,060 | 23,937,571 | 21,984,060 | 23,373,548 |
Consumer Finance [Member] | ' | ' | ' | ' | ' |
Revenues from external customers | 3,287,935 | 3,185,296 | 9,269,693 | 8,814,127 | ' |
Net income (loss) | 350,768 | 419,095 | 1,038,856 | 1,160,467 | ' |
Total segment assets | 15,694,275 | 15,339,215 | 15,694,275 | 15,339,215 | ' |
Cellular Retail [Member] | ' | ' | ' | ' | ' |
Revenues from external customers | 5,308,335 | 3,126,225 | 14,513,769 | 10,942,133 | ' |
Net income (loss) | 41,811 | -79,051 | 181,176 | 322,370 | ' |
Total segment assets | $8,243,296 | $6,644,845 | $8,243,296 | $6,644,845 | ' |
Employment_Agreement_Details_T
Employment Agreement (Details Textual) | 9 Months Ended |
Sep. 30, 2013 | |
Deferred Compensation Arrangement with Individual, Description | 'If the Company’s actual adjusted EBITDA performance for a particular annual period ranges from 85-100% of the established adjusted EBITDA target, management will be entitled to receive a cash bonus consisting of 7.5% of the actual adjusted EBITDA. Mr. Quandahl’s share of the bonus pool for any particular year is expected to be 10-50% (but may be more), and the bonus pool will be payable to other management-level participants in the bonus pool, if any, selected from time to time by the Board of Directors in its discretion. If the Company’s actual adjusted EBITDA performance for a particular annual period is less than 85% of the established adjusted EBITDA target, no bonus will be payable, and if such performance exceeds 100% of the established adjusted EBITDA target, the bonus pool will include 15% of the amount by which such performance exceeds the target. In addition to the adjusted EBITDA threshold, the amended and restated agreement also contains capital expenditure and working capital thresholds. |