Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 9-May-14 | |
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 | 31-Mar-14 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ' | ' |
Cash | $2,327,367 | $1,983,835 |
Loans receivable (less allowance for losses of $998,000 and $1,215,000) | 4,197,212 | 5,438,202 |
Inventory | 1,528,359 | 1,557,886 |
Prepaid expenses and other | 1,171,073 | 889,590 |
Deferred income taxes | 421,000 | 498,000 |
TOTAL CURRENT ASSETS | 9,645,011 | 10,367,513 |
PROPERTY AND EQUIPMENT | 955,200 | 928,074 |
GOODWILL | 12,894,069 | 12,894,069 |
INTANGIBLE ASSETS | 92,338 | 117,096 |
OTHER | 128,564 | 132,333 |
TOTAL ASSETS | 23,715,182 | 24,439,085 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued liabilities | 2,725,555 | 2,910,560 |
Current portion long-term debt | 0 | 2,750,000 |
Deferred revenue | 233,772 | 296,503 |
TOTAL CURRENT LIABILITIES | 2,959,327 | 5,957,063 |
LONG-TERM LIABILITIES | ' | ' |
Note payable - long-term | 1,700,000 | 0 |
Deferred income taxes | 1,241,000 | 1,156,000 |
TOTAL LONG-TERM LIABILITIES | 2,941,000 | 1,156,000 |
TOTAL LIABILITIES | 5,900,327 | 7,113,063 |
SHAREHOLDERS’ EQUITY | ' | ' |
Common stock, no par value, 240,000,000 shares authorized, 60,220,165 shares issued and outstanding. | 0 | 0 |
Additional paid-in capital | 22,353,600 | 22,353,600 |
Accumulated deficit | -4,538,745 | -5,027,578 |
TOTAL SHAREHOLDERS’ EQUITY | 17,814,855 | 17,326,022 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $23,715,182 | $24,439,085 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Allowance for losses (in dollars) | $998,000 | $1,215,000 |
Common stock, shares authorized | 240,000,000 | 240,000,000 |
Common stock, shares issued | 60,220,165 | 60,220,165 |
Common stock, shares outstanding | 60,220,165 | 60,220,165 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
REVENUES | ' | ' |
Retail sales, fees and commissions | $6,909,354 | $5,376,898 |
Financing fees and interest | 2,711,810 | 2,712,188 |
Revenues | 9,621,164 | 8,089,086 |
STORE EXPENSES | ' | ' |
Phone and accessories cost of sales | 3,429,213 | 2,561,842 |
Salaries and benefits | 2,072,445 | 1,756,526 |
Occupancy | 670,725 | 651,237 |
Provisions for loan losses | 336,864 | 321,347 |
Advertising | 87,533 | 88,887 |
Depreciation | 79,437 | 81,653 |
Amortization of intangible assets | 24,758 | 39,227 |
Other | 1,168,095 | 910,751 |
TOTAL STORE EXPENSES | 7,869,070 | 6,411,470 |
INCOME FROM STORES | 1,752,094 | 1,677,616 |
GENERAL & ADMINISTRATIVE EXPENSES | ' | ' |
Salaries and benefits | 485,327 | 514,014 |
Depreciation | 7,125 | 6,192 |
Interest expense | 80,174 | 83,617 |
Other | 402,635 | 282,517 |
TOTAL GENERAL & ADMINISTRATIVE EXPENSES | 975,261 | 886,340 |
INCOME BEFORE INCOME TAXES | 776,833 | 791,276 |
INCOME TAX EXPENSE | 288,000 | 300,000 |
NET INCOME | $488,833 | $491,276 |
NET INCOME PER COMMON SHARE - | ' | ' |
Basic and diluted (in dollars per share) | $0.01 | $0.01 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - | ' | ' |
Basic and diluted (in shares) | 60,220,165 | 60,320,814 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
OPERATING ACTIVITIES | ' | ' |
Net Income | $488,833 | $491,276 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | ' | ' |
Depreciation | 86,562 | 87,845 |
Amortization | 24,758 | 39,227 |
Deferred income taxes | 162,000 | 123,000 |
Changes in operating assets and liabilities | ' | ' |
Loans receivable | 1,240,990 | 949,730 |
Inventory | 29,527 | -58,163 |
Prepaid expenses and other assets | -277,714 | 46,890 |
Accounts payable and accrued liabilities | -185,005 | -1,185,098 |
Deferred revenue | -62,731 | -59,331 |
Net cash provided by operating activities | 1,507,220 | 435,376 |
INVESTING ACTIVITIES | ' | ' |
Purchases of property and equipment | -113,688 | -55,704 |
Purchases of intangible assets | 0 | -29,500 |
Net cash used by investing activities | -113,688 | -85,204 |
FINANCING ACTIVITIES | ' | ' |
Payments on notes payable - long-term | -1,050,000 | -180,787 |
Common stock redemption | ' | -17,762 |
Net cash used by financing activities | -1,050,000 | -198,549 |
NET INCREASE IN CASH | 343,532 | 151,623 |
CASH | ' | ' |
Beginning of period | 1,983,835 | 2,246,619 |
End of period | 2,327,367 | 2,398,242 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' |
Income taxes paid | 6,831 | 219,000 |
Interest paid | $105,966 | $82,362 |
Basis_of_Presentation_Nature_o
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies | 3 Months Ended | |
Mar. 31, 2014 | ||
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 month period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. 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, 2013. The condensed consolidated balance sheet at December 31, 2013, 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 50 “Payday” stores, one combined payday/pawn store, and one pawn store in nine states (Colorado, Iowa, Kansas, Nebraska, North Dakota, South Dakota, Utah, Wisconsin and Wyoming) as of March 31, 2014. The Company operated 53 cellular retail stores in 14 states (Arizona, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska, Ohio, Oklahoma, Oregon, Texas and Washington) as of March 31, 2014. 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 post-dated 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 combined 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 applicable state regulations. Allowable service charges vary by state. Our pawn loans earn 17.5% 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 our 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 upon 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 accounting principles generally accepted in the United States of America 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 March 31, 2014 and 2013. | ||
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 and also sells used merchandise at retail pawn stores. The Cellular Retail division is an authorized Cricket premier dealer selling cellular phones and accessories, providing ancillary services and accepting service payments from customers. | ||
Reclassifications | ||
Certain Statement of Income reclassifications have been made in the presentation of our prior financial statements and accompanying notes to conform to the presentation as of and for the three months ended March 31, 2014. | ||
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 | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
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 several years, consumer advocacy groups and certain media reports have advocated governmental and regulatory action to prohibit or severely restrict the Company’s lending activities. | |||||||||||||
Any adverse change in present federal laws or regulations that govern or otherwise affect lending could result in our curtailment or cessation of operations in certain jurisdictions or locations. Furthermore, any failure to comply with any applicable federal laws or regulations could result in fines, litigation, closure of one or more store locations or negative publicity. Any such change or failure would have a corresponding impact on our results of operations and financial condition, primarily through a decrease in revenues resulting from the cessation or curtailment of operations, decrease in our operating income through increased legal expenditures or fines, and could also negatively affect our general business prospects as well if we are unable to effectively replace such revenues in a timely and efficient manner or if negative publicity effects our ability to obtain additional financing as needed. | |||||||||||||
In addition, the passage of federal or state laws and regulations could, at any point, essentially prohibit the Company from conducting its 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. | |||||||||||||
For the three months ended March 31, 2014 and 2013, 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 | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Nebraska | 29 | % | 29 | % | Nebraska | 30 | % | 22 | % | ||||
North Dakota | 17 | % | 18 | % | Colorado | 15 | % | * | % | ||||
Wyoming | 14 | % | 15 | % | Missouri | 10 | % | 10 | % | ||||
Iowa | 14 | % | 11 | % | Texas | 10 | % | 13 | % | ||||
* Less than 10% | |||||||||||||
Loans_Receivable
Loans Receivable | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Receivables [Abstract] | ' | |||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | |||||||||||||
3 | Loans Receivable – | |||||||||||||
At March 31, 2014 and December 31, 2013 our outstanding loans receivable aging was as follows: | ||||||||||||||
March 31, 2014 | ||||||||||||||
Payday | Installment | Pawn & | Total | |||||||||||
Title | ||||||||||||||
Current | $ | 3,453,553 | $ | 270,680 | $ | 268,465 | $ | 3,992,698 | ||||||
30-Jan | 193,459 | 42,306 | - | 235,765 | ||||||||||
31-60 | 173,024 | 27,379 | - | 200,403 | ||||||||||
61-90 | 214,873 | 13,348 | - | 228,221 | ||||||||||
91-120 | 182,317 | 6,572 | - | 188,889 | ||||||||||
121-150 | 162,288 | 2,513 | - | 164,801 | ||||||||||
151-180 | 182,924 | 1,511 | - | 184,435 | ||||||||||
4,562,438 | 364,309 | 268,465 | 5,195,212 | |||||||||||
Allowance for losses | -935,000 | -63,000 | - | -998,000 | ||||||||||
$ | 3,627,438 | $ | 301,309 | $ | 268,465 | $ | 4,197,212 | |||||||
December 31, 2013 | ||||||||||||||
Payday | Installment | Pawn & | Total | |||||||||||
Title | ||||||||||||||
Current | $ | 4,519,839 | $ | 408,782 | $ | 288,788 | $ | 5,217,409 | ||||||
30-Jan | 271,967 | 56,807 | - | 328,774 | ||||||||||
31-60 | 202,097 | 31,212 | - | 233,309 | ||||||||||
61-90 | 217,154 | 17,285 | - | 234,439 | ||||||||||
91-120 | 206,885 | 8,660 | - | 215,545 | ||||||||||
121-150 | 199,253 | 2,846 | - | 202,099 | ||||||||||
151-180 | 218,802 | 2,825 | - | 221,627 | ||||||||||
5,835,997 | 528,417 | 288,788 | 6,653,202 | |||||||||||
Allowance for losses | -1,120,000 | -95,000 | - | -1,215,000 | ||||||||||
$ | 4,715,997 | $ | 433,417 | $ | 288,788 | $ | 5,438,202 | |||||||
Loans_Receivable_Allowance
Loans Receivable Allowance | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 days past the check return date, write-offs of payday returned items historically have tracked at the following approximate percentages: 1 to 30 days – 41%; 31 to 60 days – 65%; 61 to 90 days – 83%; 91 to 120 days – 88%; and 121 to 180 days – 91%. A rollforward of the Company’s loans receivable allowance for the three months ended March 31, 2014 and 2013 is as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Loans receivable allowance, beginning of period | $ | 1,215,000 | $ | 1,191,000 | ||||
Provision for loan losses charged to expense | 337,000 | 321,000 | ||||||
Charge-offs, net | -554,000 | -511,000 | ||||||
Loans receivable allowance, end of period | $ | 998,000 | $ | 1,001,000 | ||||
Note_Payable_Short_Term
Note Payable - Short Term | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Short-term Debt [Text Block] | ' | |||||||
5 | Note Payable – Short Term – | |||||||
The Company’s short-term debt is as follows: | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
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 accrued no interest. | $ | - | $ | 405,163 | ||||
Notes_Payable_Long_Term
Notes Payable - Long Term | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term Debt [Text Block] | ' | |||||||
6 | Notes Payable – Long Term – | |||||||
The Company’s long-term debt is as follows: | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Note payable (with a credit limit of $3,000,000) to River City Equity, Inc., a related party, with interest payable monthly at 12% due June 30, 2015 and upon certain events can be collateralized by substantially all assets of WCR. | $ | 1,700,000 | $ | 2,750,000 | ||||
Total | 1,700,000 | 2,750,000 | ||||||
Less current maturities | - | -2,750,000 | ||||||
$ | 1,700,000 | $ | - | |||||
Other_Expense
Other Expense | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Other Expense [Abstract] | ' | |||||||
Other Expense [Text Block] | ' | |||||||
7 | Other Expense – | |||||||
A breakout of other expense is as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Store expenses | ||||||||
Bank fees | $ | 112,493 | $ | 106,943 | ||||
Collection costs | 123,521 | 111,733 | ||||||
Repairs & maintenance | 115,579 | 65,254 | ||||||
Supplies | 123,303 | 74,480 | ||||||
Telephone | 51,352 | 39,581 | ||||||
Utilities and network lines | 240,328 | 200,845 | ||||||
Other | 401,519 | 311,915 | ||||||
$ | 1,168,095 | $ | 910,751 | |||||
General & administrative expenses | ||||||||
Professional fees | $ | 132,519 | $ | 115,103 | ||||
Management and consulting fees | 111,822 | 107,687 | ||||||
Other | 158,294 | 59,727 | ||||||
$ | 402,635 | $ | 282,517 | |||||
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
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 months ended March 31, 2014 and 2013 is set forth below: | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
March 31, 2014 | March 31, 2013 | |||||||||||||||||||
Consumer | Cellular | Total | Consumer | Cellular | Total | |||||||||||||||
Finance | Retail | Finance | Retail | |||||||||||||||||
Revenues from external customers | $ | 3,166,631 | $ | 6,454,533 | $ | 9,621,164 | $ | 3,057,290 | $ | 5,031,796 | $ | 8,089,086 | ||||||||
Net income | $ | 352,797 | $ | 136,036 | $ | 488,833 | $ | 410,341 | $ | 80,935 | $ | 491,276 | ||||||||
Total segment assets | $ | 14,969,327 | $ | 8,745,855 | $ | 23,715,182 | $ | 15,133,343 | $ | 7,341,503 | $ | 22,474,846 | ||||||||
Subsequent_Events
Subsequent Events | 3 Months Ended | |
Mar. 31, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events [Text Block] | ' | |
9 | Subsequent Events – | |
We evaluated all events or transactions that occurred after March 31, 2014 up through 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) | 3 Months Ended |
Mar. 31, 2014 | |
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 month period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. 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, 2013. The condensed consolidated balance sheet at December 31, 2013, 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 50 “Payday” stores, one combined payday/pawn store, and one pawn store in nine states (Colorado, Iowa, Kansas, Nebraska, North Dakota, South Dakota, Utah, Wisconsin and Wyoming) as of March 31, 2014. The Company operated 53 cellular retail stores in 14 states (Arizona, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska, Ohio, Oklahoma, Oregon, Texas and Washington) as of March 31, 2014. 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 post-dated 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 combined 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 applicable state regulations. Allowable service charges vary by state. Our pawn loans earn 17.5% 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 our 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 upon 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 accounting principles generally accepted in the United States of America 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 March 31, 2014 and 2013. | |
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 and also sells used merchandise at retail pawn stores. The Cellular Retail division is an authorized Cricket premier dealer selling cellular phones and accessories, providing ancillary services and accepting service payments from customers. | |
Reclassification, Policy [Policy Text Block] | ' |
Reclassifications | |
Certain Statement of Income reclassifications have been made in the presentation of our prior financial statements and accompanying notes to conform to the presentation as of and for the three months ended March 31, 2014. | |
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) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||||
Disclosure of Significant Revenue, Percentages by State by Division [Table Text Block] | ' | ||||||||||||
For the three months ended March 31, 2014 and 2013, 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 | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Nebraska | 29 | % | 29 | % | Nebraska | 30 | % | 22 | % | ||||
North Dakota | 17 | % | 18 | % | Colorado | 15 | % | * | % | ||||
Wyoming | 14 | % | 15 | % | Missouri | 10 | % | 10 | % | ||||
Iowa | 14 | % | 11 | % | Texas | 10 | % | 13 | % | ||||
* Less than 10% | |||||||||||||
Loans_Receivable_Tables
Loans Receivable (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Receivables [Abstract] | ' | |||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||||||||
At March 31, 2014 and December 31, 2013 our outstanding loans receivable aging was as follows: | ||||||||||||||
March 31, 2014 | ||||||||||||||
Payday | Installment | Pawn & | Total | |||||||||||
Title | ||||||||||||||
Current | $ | 3,453,553 | $ | 270,680 | $ | 268,465 | $ | 3,992,698 | ||||||
30-Jan | 193,459 | 42,306 | - | 235,765 | ||||||||||
31-60 | 173,024 | 27,379 | - | 200,403 | ||||||||||
61-90 | 214,873 | 13,348 | - | 228,221 | ||||||||||
91-120 | 182,317 | 6,572 | - | 188,889 | ||||||||||
121-150 | 162,288 | 2,513 | - | 164,801 | ||||||||||
151-180 | 182,924 | 1,511 | - | 184,435 | ||||||||||
4,562,438 | 364,309 | 268,465 | 5,195,212 | |||||||||||
Allowance for losses | -935,000 | -63,000 | - | -998,000 | ||||||||||
$ | 3,627,438 | $ | 301,309 | $ | 268,465 | $ | 4,197,212 | |||||||
December 31, 2013 | ||||||||||||||
Payday | Installment | Pawn & | Total | |||||||||||
Title | ||||||||||||||
Current | $ | 4,519,839 | $ | 408,782 | $ | 288,788 | $ | 5,217,409 | ||||||
30-Jan | 271,967 | 56,807 | - | 328,774 | ||||||||||
31-60 | 202,097 | 31,212 | - | 233,309 | ||||||||||
61-90 | 217,154 | 17,285 | - | 234,439 | ||||||||||
91-120 | 206,885 | 8,660 | - | 215,545 | ||||||||||
121-150 | 199,253 | 2,846 | - | 202,099 | ||||||||||
151-180 | 218,802 | 2,825 | - | 221,627 | ||||||||||
5,835,997 | 528,417 | 288,788 | 6,653,202 | |||||||||||
Allowance for losses | -1,120,000 | -95,000 | - | -1,215,000 | ||||||||||
$ | 4,715,997 | $ | 433,417 | $ | 288,788 | $ | 5,438,202 | |||||||
Loans_Receivable_Allowance_Tab
Loans Receivable Allowance (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 three months ended March 31, 2014 and 2013 is as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Loans receivable allowance, beginning of period | $ | 1,215,000 | $ | 1,191,000 | ||||
Provision for loan losses charged to expense | 337,000 | 321,000 | ||||||
Charge-offs, net | -554,000 | -511,000 | ||||||
Loans receivable allowance, end of period | $ | 998,000 | $ | 1,001,000 | ||||
Note_Payable_Short_Term_Tables
Note Payable - Short Term (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Short-term Debt [Table Text Block] | ' | |||||||
The Company’s short-term debt is as follows: | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
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 accrued no interest. | $ | - | $ | 405,163 | ||||
Notes_Payable_Long_Term_Tables
Notes Payable - Long Term (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||||||
The Company’s long-term debt is as follows: | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Note payable (with a credit limit of $3,000,000) to River City Equity, Inc., a related party, with interest payable monthly at 12% due June 30, 2015 and upon certain events can be collateralized by substantially all assets of WCR. | $ | 1,700,000 | $ | 2,750,000 | ||||
Total | 1,700,000 | 2,750,000 | ||||||
Less current maturities | - | -2,750,000 | ||||||
$ | 1,700,000 | $ | - | |||||
Other_Expense_Tables
Other Expense (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Store expenses | ||||||||
Bank fees | $ | 112,493 | $ | 106,943 | ||||
Collection costs | 123,521 | 111,733 | ||||||
Repairs & maintenance | 115,579 | 65,254 | ||||||
Supplies | 123,303 | 74,480 | ||||||
Telephone | 51,352 | 39,581 | ||||||
Utilities and network lines | 240,328 | 200,845 | ||||||
Other | 401,519 | 311,915 | ||||||
$ | 1,168,095 | $ | 910,751 | |||||
General & administrative expenses | ||||||||
Professional fees | $ | 132,519 | $ | 115,103 | ||||
Management and consulting fees | 111,822 | 107,687 | ||||||
Other | 158,294 | 59,727 | ||||||
$ | 402,635 | $ | 282,517 | |||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||||||||
Segment information related to the three months ended March 31, 2014 and 2013 is set forth below: | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
March 31, 2014 | March 31, 2013 | |||||||||||||||||||
Consumer | Cellular | Total | Consumer | Cellular | Total | |||||||||||||||
Finance | Retail | Finance | Retail | |||||||||||||||||
Revenues from external customers | $ | 3,166,631 | $ | 6,454,533 | $ | 9,621,164 | $ | 3,057,290 | $ | 5,031,796 | $ | 8,089,086 | ||||||||
Net income | $ | 352,797 | $ | 136,036 | $ | 488,833 | $ | 410,341 | $ | 80,935 | $ | 491,276 | ||||||||
Total segment assets | $ | 14,969,327 | $ | 8,745,855 | $ | 23,715,182 | $ | 15,133,343 | $ | 7,341,503 | $ | 22,474,846 | ||||||||
Basis_of_Presentation_Nature_o2
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Details Textual) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Approximate Cashing Fees Percentage | 2.50% |
Payday Loans [Member] | Minimum [Member] | ' |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Short Term Loan Typical Amount Range | 100 |
Short Term Loans Fees $100 Borrowed | 15 |
Payday Loans [Member] | Maximum [Member] | ' |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Short Term Loan Typical Amount Range | 500 |
Short Term Loans Fees $100 Borrowed | 22 |
Pawn Loans [Member] | Minimum [Member] | ' |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Monthly Interest Income Rate | 17.50% |
Collateral Estimated Resale Value Percentage | 30.00% |
Pawn Loans [Member] | Maximum [Member] | ' |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Monthly Interest Income Rate | 20.00% |
Collateral Estimated Resale Value Percentage | 55.00% |
Payday Stores [Member] | ' |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Number of Stores | 50 |
Payday/Pawn Store [Member] | ' |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Number of Stores | 1 |
Pawn Store [Member] | ' |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Number of Stores | 1 |
Cellular Retail Stores [Member] | ' |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Number of Stores | 53 |
Risks_Inherent_in_the_Operatin2
Risks Inherent in the Operating Environment (Details) (Geographic Concentration Risk [Member]) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | ||
Consumer Finance Division [Member] | Nebraska [Member] | ' | ' | |
Risks Inherent in the Operating Environment [Line Items] | ' | ' | |
Consumer Finance Division, Revenues By State, Percentage | 29.00% | 29.00% | |
Consumer Finance Division [Member] | North Dakota [Member] | ' | ' | |
Risks Inherent in the Operating Environment [Line Items] | ' | ' | |
Consumer Finance Division, Revenues By State, Percentage | 17.00% | 18.00% | |
Consumer Finance Division [Member] | Wyoming [Member] | ' | ' | |
Risks Inherent in the Operating Environment [Line Items] | ' | ' | |
Consumer Finance Division, Revenues By State, Percentage | 14.00% | 15.00% | |
Consumer Finance Division [Member] | Iowa [Member] | ' | ' | |
Risks Inherent in the Operating Environment [Line Items] | ' | ' | |
Consumer Finance Division, Revenues By State, Percentage | 14.00% | 11.00% | |
Cellular Retail Division [Member] | Nebraska [Member] | ' | ' | |
Risks Inherent in the Operating Environment [Line Items] | ' | ' | |
Cellular Retail Division, Revenues By State, Percentage | 30.00% | 22.00% | |
Cellular Retail Division [Member] | Colorado [Member] | ' | ' | |
Risks Inherent in the Operating Environment [Line Items] | ' | ' | |
Cellular Retail Division, Revenues By State, Percentage | 15.00% | ' | [1] |
Cellular Retail Division [Member] | Missouri [Member] | ' | ' | |
Risks Inherent in the Operating Environment [Line Items] | ' | ' | |
Cellular Retail Division, Revenues By State, Percentage | 10.00% | 10.00% | |
Cellular Retail Division [Member] | Texas [Member] | ' | ' | |
Risks Inherent in the Operating Environment [Line Items] | ' | ' | |
Cellular Retail Division, Revenues By State, Percentage | 10.00% | 13.00% | |
[1] | Less than 10% |
Loans_Receivable_Details
Loans Receivable (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | $5,195,212 | $6,653,202 | ' | ' |
Allowance for losses | -998,000 | -1,215,000 | -1,001,000 | -1,191,000 |
Outstanding loans receivable, Net | 4,197,212 | 5,438,202 | ' | ' |
Payday [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 4,562,438 | 5,835,997 | ' | ' |
Allowance for losses | -935,000 | -1,120,000 | ' | ' |
Outstanding loans receivable, Net | 3,627,438 | 4,715,997 | ' | ' |
Installment [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 364,309 | 528,417 | ' | ' |
Allowance for losses | -63,000 | -95,000 | ' | ' |
Outstanding loans receivable, Net | 301,309 | 433,417 | ' | ' |
Pawn & Title [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 268,465 | 288,788 | ' | ' |
Allowance for losses | 0 | 0 | ' | ' |
Outstanding loans receivable, Net | 268,465 | 288,788 | ' | ' |
Current [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 3,992,698 | 5,217,409 | ' | ' |
Current [Member] | Payday [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 3,453,553 | 4,519,839 | ' | ' |
Current [Member] | Installment [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 270,680 | 408,782 | ' | ' |
Current [Member] | Pawn & Title [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 268,465 | 288,788 | ' | ' |
Delinquent 1 to 30 Days [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 235,765 | 328,774 | ' | ' |
Delinquent 1 to 30 Days [Member] | Payday [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 193,459 | 271,967 | ' | ' |
Delinquent 1 to 30 Days [Member] | Installment [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 42,306 | 56,807 | ' | ' |
Delinquent 1 to 30 Days [Member] | Pawn & Title [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 0 | 0 | ' | ' |
Delinquent 31 to 60 Days [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 200,403 | 233,309 | ' | ' |
Delinquent 31 to 60 Days [Member] | Payday [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 173,024 | 202,097 | ' | ' |
Delinquent 31 to 60 Days [Member] | Installment [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 27,379 | 31,212 | ' | ' |
Delinquent 31 to 60 Days [Member] | Pawn & Title [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 0 | 0 | ' | ' |
Delinquent 61 to 90 Days [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 228,221 | 234,439 | ' | ' |
Delinquent 61 to 90 Days [Member] | Payday [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 214,873 | 217,154 | ' | ' |
Delinquent 61 to 90 Days [Member] | Installment [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 13,348 | 17,285 | ' | ' |
Delinquent 61 to 90 Days [Member] | Pawn & Title [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 0 | 0 | ' | ' |
Delinquent 91 to 120 Days [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 188,889 | 215,545 | ' | ' |
Delinquent 91 to 120 Days [Member] | Payday [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 182,317 | 206,885 | ' | ' |
Delinquent 91 to 120 Days [Member] | Installment [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 6,572 | 8,660 | ' | ' |
Delinquent 91 to 120 Days [Member] | Pawn & Title [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 0 | 0 | ' | ' |
Delinquent 121 to 150 Days [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 164,801 | 202,099 | ' | ' |
Delinquent 121 to 150 Days [Member] | Payday [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 162,288 | 199,253 | ' | ' |
Delinquent 121 to 150 Days [Member] | Installment [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 2,513 | 2,846 | ' | ' |
Delinquent 121 to 150 Days [Member] | Pawn & Title [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 0 | 0 | ' | ' |
Delinquent 151 to 180 Days [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 184,435 | 221,627 | ' | ' |
Delinquent 151 to 180 Days [Member] | Payday [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 182,924 | 218,802 | ' | ' |
Delinquent 151 to 180 Days [Member] | Installment [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | 1,511 | 2,825 | ' | ' |
Delinquent 151 to 180 Days [Member] | Pawn & Title [Member] | ' | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' | ' |
Outstanding loans receivable, Gross | $0 | $0 | ' | ' |
Loans_Receivable_Allowance_Det
Loans Receivable Allowance (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Loans Receivable Allowance [Line Items] | ' | ' |
Loans receivable allowance, beginning of period | $1,215,000 | $1,191,000 |
Provision for loan losses charged to expense | 337,000 | 321,000 |
Charge-offs, net | -554,000 | -511,000 |
Loans receivable allowance, end of period | $998,000 | $1,001,000 |
Loans_Receivable_Allowance_Det1
Loans Receivable Allowance (Details Textual) | Mar. 31, 2014 |
Loans Receivable Allowance [Line Items] | ' |
Percentage of Historical Written Off | 41.00% |
Delinquent 1 to 30 Days [Member] | ' |
Loans Receivable Allowance [Line Items] | ' |
Percentage of Historical Written Off | 41.00% |
Delinquent 31 to 60 Days [Member] | ' |
Loans Receivable Allowance [Line Items] | ' |
Percentage of Historical Written Off | 65.00% |
Delinquent 61 to 90 Days [Member] | ' |
Loans Receivable Allowance [Line Items] | ' |
Percentage of Historical Written Off | 83.00% |
Delinquent 91 to 120 Days [Member] | ' |
Loans Receivable Allowance [Line Items] | ' |
Percentage of Historical Written Off | 88.00% |
Delinquent 121 to 180 Days [Member] | ' |
Loans Receivable Allowance [Line Items] | ' |
Percentage of Historical Written Off | 91.00% |
Note_Payable_Short_Term_Detail
Note Payable - Short Term (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Short-term Debt [Line Items] | ' | ' |
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 accrued no interest. | $0 | $405,163 |
Note_Payable_Short_Term_Detail1
Note Payable - Short Term (Details Textual) (Notes Payable to Shareholder [Member]) | 3 Months Ended |
Mar. 31, 2014 | |
Notes Payable to Shareholder [Member] | ' |
Short-term Debt [Line Items] | ' |
Debt Instrument, Maturity Date | 30-Apr-13 |
Notes_Payable_Long_Term_Detail
Notes Payable - Long Term (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Notes Payable | $1,700,000 | $2,750,000 |
Less current maturities | 0 | -2,750,000 |
Notes Payable, Noncurrent | 1,700,000 | 0 |
Note Payable to River City Equity [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes Payable | $1,700,000 | $2,750,000 |
Notes_Payable_Long_Term_Detail1
Notes Payable - Long Term (Details Textual) (Note Payable to River City Equity [Member], USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Note Payable to River City Equity [Member] | ' |
Debt Instrument [Line Items] | ' |
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 | 30-Jun-15 |
Other_Expense_Details
Other Expense (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Store expenses | ' | ' |
Bank fees | $112,493 | $106,943 |
Collection costs | 123,521 | 111,733 |
Repairs & maintenance | 115,579 | 65,254 |
Supplies | 123,303 | 74,480 |
Telephone | 51,352 | 39,581 |
Utilities and network lines | 240,328 | 200,845 |
Other | 401,519 | 311,915 |
Total Store expenses | 1,168,095 | 910,751 |
General & administrative expenses | ' | ' |
Professional fees | 132,519 | 115,103 |
Management and consulting fees | 111,822 | 107,687 |
Other | 158,294 | 59,727 |
Total General & administrative expenses | $402,635 | $282,517 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues from external customers | $9,621,164 | $8,089,086 | ' |
Net income | 488,833 | 491,276 | ' |
Total segment assets | 23,715,182 | 22,474,846 | 24,439,085 |
Consumer Finance [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues from external customers | 3,166,631 | 3,057,290 | ' |
Net income | 352,797 | 410,341 | ' |
Total segment assets | 14,969,327 | 15,133,343 | ' |
Cellular Retail [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues from external customers | 6,454,533 | 5,031,796 | ' |
Net income | 136,036 | 80,935 | ' |
Total segment assets | $8,745,855 | $7,341,503 | ' |