Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document And Entity Information | |
Entity Registrant Name | KSIX Media Holdings, Inc. |
Entity Central Index Key | 1,392,694 |
Document Type | 8-K |
Document Period End Date | Dec. 31, 2014 |
Amendment Flag | false |
Trading Symbol | KSIX |
Combined Balance Sheets
Combined Balance Sheets - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS: | ||
Cash | $ 29,310 | $ 127,219 |
Accounts receivable | 281,658 | 468,070 |
Prepaid expenses and other current assets | 4,462 | 2,327 |
TOTAL CURRENT ASSETS | 315,430 | 597,616 |
COMPUTER EQUIPMENT, AT COST, LESS ACCUMULATED DEPRECIATION OF $7,005 AND $6,132 | 4,566 | 5,927 |
TOTAL ASSETS | 319,996 | 603,543 |
CURRENT LIABILITIES: | ||
Accounts payable | $ 137,562 | 239,427 |
Accrued interest payable- related party | 29,863 | |
Accrued expenses- related party | $ 3,120 | |
Note payable | $ 100,000 | |
Current portion of long-term debt | 76,645 | $ 72,024 |
Accrued expenses and other current liabilities | 762 | |
TOTAL CURRENT LIABILITIES | 314,969 | $ 344,434 |
LONG TERM DEBT: | ||
Notes payable | $ 84,941 | 161,547 |
Notes payable -related party | 540,500 | |
TOTAL LONG TERM DEBT | $ 84,941 | 702,047 |
TOTAL LIABILITIES | 399,910 | 1,046,481 |
MEMBER'S' DEFICIENCY | (79,914) | (442,938) |
TOTAL LIABILITIES AND MEMBER'S DEFICIENCY | $ 319,996 | $ 603,543 |
Combined Balance Sheets (Parent
Combined Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 7,005 | $ 6,132 |
Combined Statements of Income
Combined Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | ||
REVENUE | $ 2,674,478 | $ 3,034,829 |
COSTS AND EXPENSES: | ||
Cost of revenue | 1,677,913 | 2,052,620 |
Selling, general and administrative | 965,348 | 841,689 |
TOTAL COSTS AND EXPENSES | 2,643,261 | 2,894,309 |
OPERATING INCOME | 31,217 | 140,520 |
OTHER INCOME (EXPENSE): | ||
Interest expense | $ (12,056) | (17,806) |
Interest expense- related party | (27,904) | |
Interest expense forgiveness | $ 14,138 | |
TOTAL OTHER INCOME (EXPENSE) | 2,082 | (45,710) |
NET INCOME | $ 33,299 | $ 94,810 |
Combined Statement of Members'
Combined Statement of Members' Deficiency - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
BALANCE, Begining | $ (442,938) | $ (546,285) |
Conversion of debt to members' equity | 314,500 | |
Members' contributions | 15,226 | 8,537 |
Net income | 33,299 | 94,810 |
BALANCE, Ending | $ (79,914) | $ (442,938) |
Combined Statements of Cash Flo
Combined Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES: | ||
Net income | $ 33,299 | $ 94,810 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,361 | $ 1,940 |
Forgiveness of related party accrued interest | (29,863) | |
Bad debt expense | 35,137 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | $ 151,275 | $ (149,531) |
Customer Deposits | (7,000) | |
Prepaid expenses and other current assets | $ (2,135) | 2,014 |
Accounts payable | (101,865) | 68,308 |
Accrued Expenses and other current liabilities | (2,358) | 22,687 |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | $ 84,851 | 33,228 |
INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (1,102) | |
NET CASH USED IN INVESTING ACTIVITIES | (1,102) | |
FINANCING ACTIVITIES: | ||
Proceeds of notes payable | $ 100,000 | 30,000 |
Proceeds of notes payable- related party | 60,000 | |
Repayment of notes payable | (71,985) | (67,803) |
Repayment of notes payable- related party | (226,000) | (20,000) |
Member contributions | 15,225 | 8,535 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | (182,760) | 10,732 |
(DECREASE) INCREASE IN CASH | (97,909) | 42,858 |
CASH - BEGINNING OF YEAR | 127,219 | 84,361 |
CASH - END OF YEAR | $ 29,310 | $ 127,219 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying combined financial statements include the combined accounts of KSix, LLC (KSIX), A Nevada limited liability company that was formed on September 14, 2011 and Blvd. Media Group, LLC,(BMG) a Nevada limited liability company that was formed on January 29, 2009 which have common ownership. Business description Ksix, LLC and Blvd Media Group, LLC are internet marketing companies. KSIX is an advertising network designed to create revenue streams for their affiliates and to provide advertisers with increased measurable audience. KSIX provides performance based marketing solutions to drive traffic and conversions within a Cost-Per-Action (CPA) business model. The Ksix has an online advertising network that works directly with advertisers and other networks to promote advertiser campaigns. KSIX manages offer tracking, reporting and distribution. BMG provides the tools for web publishers to drive traffic and increase revenue. BMG mission is to monetize the Internet, promoting incentive based advertisements resulting in more clicks, greater lead generation and increased revenues. KSIX and BMG are both Las Vegas based technology companies, advertising network, and SaaS (Software as a Service) developer that monetizes web based content using custom developed enterprise software applications. Uses of estimates in the presentation of financial statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net revenue and expenses during each reporting period. Actual results could differ from those estimates. Cash The Company maintains cash balances at various financial institutions, certain of which are insured by the Federal Deposit Insurance Corporation up to $250,000. The Companys accounts at the insured institutions may, at times, exceed the federally insured limits. The Company has not experienced any losses in either the insured or uninsured accounts. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are generally due thirty days from the invoice date. The Company has a policy of reserving for uncollectible accounts based on their best estimate of the amount of profitable credit losses in its existing accounts receivable. The Company extends credit to its customers based on an evaluation of their financial condition and other factors. The Company generally does not require collateral or other security to support accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains an allowance for potential bad debts if required. The Company determines whether an allowance for doubtful accounts is required by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations. In these cases, the Company uses assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. The Company may also record a general allowance as necessary. Direct write-offs are taken in the period when the Company has exhausted their efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate that the Company should abandon such efforts. The Company has determined that an allowance for doubtful accounts is not required for the year ended December 31, 2014. The amounts charged to bad debt expense for the years ended December 31, 2014 and 2013 were $35,137 and $0. Concentrations of credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and trade accounts receivable. The Company places its cash and cash equivalents with high credit quality financial institutions which at times may be in excess of the FDIC limit. The Company performs ongoing credit evaluations of its customers financial condition and, as a consequence, believes that its trade accounts receivable credit risk is limited. Property and equipment and depreciation policy Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of five to seven years for computers and related assets Fully depreciated assets are retained in property and depreciation accounts until they are removed from service. When property and equipment are retired or otherwise disposed of, the net book value of the asset is removed from the Companys books and the net gain or loss is included in the determination of the Companys income. Maintenance, repairs and minor renewals are charged to expense when incurred. Replacements and major renewals are capitalized. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standard Codification (ASC) 605-10 (previously Securities and Exchange Commission Staff Accounting Bulletin No. 104, Revenue Recognition). Revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed and collectability of the resulting receivable is reasonably assured. The Companys revenues are derived from online advertising sales and on a cost per thousand impressions (CPM), cost per click (CPC), cost per lead (CPL), cost per action (CPA) and flat-fee basis. ● The Company earns CPM revenue from the display of graphical advertisements. An impression is delivered when an advertisement appears in pages viewed by users. Revenue from graphical advertisement impressions is recognized based on the actual impressions delivered in the period. ● Revenue from the display of text-based links to the websites of the Companys advertisers is recognized on a CPC basis, and search advertising is recognized as click-throughs occur. A click-through occurs when a user clicks on an advertisers link. ● Revenue from advertisers on a CPL basis is recognized in the period the leads are accepted by the client, following the execution of a service agreement and commencement of the services. ● Under the CPA format, the Company earns revenue based on a percentage or negotiated amount of a consumer transaction undertaken or initiated through its websites. Revenue is recognized at the time of the transaction. ● Revenue from flat-fee, listings-based services is based on a customers subscription to the service for up to twelve months and are recognized on a straight-line basis over the term of the subscription. Fair value measurements The Company adopted the provisions of ASC Topic 820, Fair Value Measurements and Disclosures The estimated fair value of certain financial instruments, including cash and cash equivalents, prepaid expenses, and accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of observable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 - quoted prices in active markets for identical assets and liabilities Level 2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 - inputs that re unobservable (for example cash flow modeling inputs based on assumptions) Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Companys accounting and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 2 LONG-TERM DEBT As of December 31, 2014 and 2013, long-term debt consists of: December 31, 2014 December 31, 2013 On October 26, 2011, the Company entered into a Unit Redemption Agreement with an individual (seller) to repurchase 2,000,000 Units of ownership representing an approximate 40% interest in the Company for $372,257. The agreement required a down payment of $10,000 and the balance of $362,257 in the form of a promissory note bearing interest at 6% per annum and is payable in equal monthly installments of $7,003, inclusive of interest. $ 161,586 $ 233,571 Bridge note payable, bearing interest at 9% per annum, that matures of October 15, 2015 100,000 - 261,586 233,571 Less current portion 176,645 72,024 $ 84,941 $ 161,547 Future minimum payments are as follows: December 31, 2016 $84,941 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 3 INCOME TAXES The Company is a limited liability company and any income or loss is passed through to the tax returns of the members. As such, no provision for income taxes is required. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 4 RELATED PARTY TRANSACTIONS The Company has received various cash advances from an affiliated Company. The advances are evidenced by promissory notes bearing interest at 5% per annum and are collateralized by substantially all of the assets of the Company. The notes require payments of interest only and are due and payable on December 15, 2015. As of December 31, 2014 and 2013 the amounts due are $0 and $540,500 respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 5 SUBSEQUENT EVENTS The Company has evaluated events occurring subsequent to December 31, 2014 through July 10, 2015, the date that these financial statements were available to be issued. There were no material subsequent events as of that date which would require disclosure in or adjustments to these financial statements. |
Summary of Significant Accoun12
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying combined financial statements include the combined accounts of KSix, LLC (KSIX), A Nevada limited liability company that was formed on September 14, 2011 and Blvd. Media Group, LLC,(BMG) a Nevada limited liability company that was formed on January 29, 2009 which have common ownership. |
Business Description | Business description Ksix, LLC and Blvd Media Group, LLC are internet marketing companies. KSIX is an advertising network designed to create revenue streams for their affiliates and to provide advertisers with increased measurable audience. KSIX provides performance based marketing solutions to drive traffic and conversions within a Cost-Per-Action (CPA) business model. The Ksix has an online advertising network that works directly with advertisers and other networks to promote advertiser campaigns. KSIX manages offer tracking, reporting and distribution. BMG provides the tools for web publishers to drive traffic and increase revenue. BMG mission is to monetize the Internet, promoting incentive based advertisements resulting in more clicks, greater lead generation and increased revenues. KSIX and BMG are both Las Vegas based technology companies, advertising network, and SaaS (Software as a Service) developer that monetizes web based content using custom developed enterprise software applications. |
Uses of Estimates in the Presentation of Financial Statements | Uses of estimates in the presentation of financial statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net revenue and expenses during each reporting period. Actual results could differ from those estimates. |
Cash | Cash The Company maintains cash balances at various financial institutions, certain of which are insured by the Federal Deposit Insurance Corporation up to $250,000. The Companys accounts at the insured institutions may, at times, exceed the federally insured limits. The Company has not experienced any losses in either the insured or uninsured accounts. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are generally due thirty days from the invoice date. The Company has a policy of reserving for uncollectible accounts based on their best estimate of the amount of profitable credit losses in its existing accounts receivable. The Company extends credit to its customers based on an evaluation of their financial condition and other factors. The Company generally does not require collateral or other security to support accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains an allowance for potential bad debts if required. The Company determines whether an allowance for doubtful accounts is required by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations. In these cases, the Company uses assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. The Company may also record a general allowance as necessary. Direct write-offs are taken in the period when the Company has exhausted their efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate that the Company should abandon such efforts. The Company has determined that an allowance for doubtful accounts is not required for the year ended December 31, 2014. The amounts charged to bad debt expense for the years ended December 31, 2014 and 2013 were $35,137 and $0. |
Concentrations of Credit Risk | Concentrations of credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and trade accounts receivable. The Company places its cash and cash equivalents with high credit quality financial institutions which at times may be in excess of the FDIC limit. The Company performs ongoing credit evaluations of its customers financial condition and, as a consequence, believes that its trade accounts receivable credit risk is limited. |
Property and Equipment and Depreciation Policy | Property and equipment and depreciation policy Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of five to seven years for computers and related assets Fully depreciated assets are retained in property and depreciation accounts until they are removed from service. When property and equipment are retired or otherwise disposed of, the net book value of the asset is removed from the Companys books and the net gain or loss is included in the determination of the Companys income. Maintenance, repairs and minor renewals are charged to expense when incurred. Replacements and major renewals are capitalized. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with Accounting Standard Codification (ASC) 605-10 (previously Securities and Exchange Commission Staff Accounting Bulletin No. 104, Revenue Recognition). Revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed and collectability of the resulting receivable is reasonably assured. The Companys revenues are derived from online advertising sales and on a cost per thousand impressions (CPM), cost per click (CPC), cost per lead (CPL), cost per action (CPA) and flat-fee basis. ● The Company earns CPM revenue from the display of graphical advertisements. An impression is delivered when an advertisement appears in pages viewed by users. Revenue from graphical advertisement impressions is recognized based on the actual impressions delivered in the period. ● Revenue from the display of text-based links to the websites of the Companys advertisers is recognized on a CPC basis, and search advertising is recognized as click-throughs occur. A click-through occurs when a user clicks on an advertisers link. ● Revenue from advertisers on a CPL basis is recognized in the period the leads are accepted by the client, following the execution of a service agreement and commencement of the services. ● Under the CPA format, the Company earns revenue based on a percentage or negotiated amount of a consumer transaction undertaken or initiated through its websites. Revenue is recognized at the time of the transaction. ● Revenue from flat-fee, listings-based services is based on a customers subscription to the service for up to twelve months and are recognized on a straight-line basis over the term of the subscription. |
Fair Value Measurements | Fair value measurements The Company adopted the provisions of ASC Topic 820, Fair Value Measurements and Disclosures The estimated fair value of certain financial instruments, including cash and cash equivalents, prepaid expenses, and accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of observable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 - quoted prices in active markets for identical assets and liabilities Level 2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 - inputs that re unobservable (for example cash flow modeling inputs based on assumptions) |
Recent Accounting Pronouncements | Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Companys accounting and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented. |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Long Term Debt Tables | |
Schedule of Long-Term Debt | As of December 31, 2014 and 2013, long-term debt consists of: December 31, 2014 December 31, 2013 On October 26, 2011, the Company entered into a Unit Redemption Agreement with an individual (seller) to repurchase 2,000,000 Units of ownership representing an approximate 40% interest in the Company for $372,257. The agreement required a down payment of $10,000 and the balance of $362,257 in the form of a promissory note bearing interest at 6% per annum and is payable in equal monthly installments of $7,003, inclusive of interest. $ 161,586 $ 233,571 Bridge note payable, bearing interest at 9% per annum, that matures of October 15, 2015 100,000 - 261,586 233,571 Less current portion 176,645 72,024 $ 84,941 $ 161,547 |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ||
Federal deposit insurance corporation | $ 250,000 | |
Bad debt expense | $ 35,137 | $ 0 |
Long-Term Debt (Details Narrati
Long-Term Debt (Details Narrative) | Dec. 31, 2014USD ($) |
Debt Disclosure [Abstract] | |
Future minimum payments | $ 84,941 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Long term debt gross | $ 261,586 | $ 233,571 |
Less Current Portion | 76,645 | 72,024 |
Long-term debt | 84,941 | 702,047 |
Long-term Debt One [Member] | ||
Long term debt gross | 161,586 | $ 233,571 |
Long-term Debt Two [Member] | ||
Long term debt gross | $ 100,000 |
Long-Term Debt - Schedule of 17
Long-Term Debt - Schedule of Long-Term Debt (Details) (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Long-term Debt One [Member] | ||
Number of units repurchase during period | 2,000,000 | 2,000,000 |
Percentage of ownership represting an approximate interest rate | 40.00% | 40.00% |
Long term debt down payment | $ 10,000 | $ 10,000 |
Promissory note | $ 362,257 | $ 362,257 |
Debt bearing interest per annum | 6.00% | 6.00% |
Payable in equal monthly installments | $ 7,003 | $ 7,003 |
Long-term Debt Two [Member] | ||
Debt bearing percentage per annum | 9.00% | 9.00% |
Debt instrument matures date | Oct. 15, 2015 | Oct. 15, 2015 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Due from affilate | $ 0 | $ 540,500 |
Affiliate [Member] | ||
Debt bearing interest per annum | 5.00% | |
Debt instrument matures date | Dec. 15, 2015 |