Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 01, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'FlexShopper, Inc. | ' | ' |
Entity Central Index Key | '0001397047 | ' | ' |
Trading Symbol | 'afng | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-Known Seasoned Issuer | 'No | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 21,148,862 | ' |
Entity Public Float | ' | ' | $2,600,000 |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS: | ' | ' |
Cash | $960,032 | $610,439 |
Retained interest in purchased accounts receivable, net | 4,966,338 | 7,019,463 |
Due from clients | 256,313 | ' |
Earned but uncollected fee income | 138,480 | 168,805 |
Prepaid expenses and other | 52,904 | 100,998 |
Lease merchandise | 8,004 | ' |
Total current assets | 6,382,071 | 7,899,705 |
PROPERTY AND EQUIPMENT, net | 58,079 | 14,257 |
OTHER ASSETS: | ' | ' |
Intangible assets - patent costs | 30,760 | ' |
Security deposits | 9,485 | 6,023 |
Total other assets | 40,245 | 6,023 |
Total Assets | 6,480,395 | 7,919,985 |
CURRENT LIABILITIES: | ' | ' |
Due to financial institution | 3,240,942 | 4,977,763 |
Accounts payable | 47,314 | 86,772 |
Accrued payroll and related taxes | 68,141 | 69,338 |
Accrued expenses | 55,412 | 59,252 |
Collected but unearned fee income | 12,328 | 28,642 |
Total current liabilities | 3,424,137 | 5,221,767 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
CONVERTIBLE PREFERRED STOCK, net of issuance costs of $1,209,383 | 671,409 | 671,409 |
COMMON STOCK | 4,363 | 1,863 |
ADDITIONAL PAID IN CAPITAL | 8,545,914 | 7,496,693 |
ACCUMULATED DEFICIT | -6,165,428 | -5,471,747 |
Total Stockholders' Equity | 3,056,258 | 2,698,218 |
Total Liabilities and Stockholder's Equity | $6,480,395 | $7,919,985 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Issuance cost of convertible preferred stock (in dollars) | $1,209,383 | $1,209,383 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement [Abstract] | ' | ' |
FINANCE REVENUES | $2,364,128 | $2,526,626 |
INTEREST EXPENSE - financial institution | -385,918 | -454,241 |
INTEREST EXPENSE - related parties | ' | -15,123 |
NET FINANCE REVENUES | 1,978,210 | 2,057,262 |
PROVISION FOR CREDIT LOSSES, net of recoveries | -62,603 | -41,797 |
FINANCE REVENUES, NET OF INTEREST EXPENSE AND CREDIT LOSSES | 1,915,607 | 2,015,465 |
OPERATING EXPENSES | -2,609,288 | -1,636,606 |
(LOSS) INCOME FROM OPERATIONS BEFORE INCOME TAXES | -693,681 | 378,859 |
INCOME TAXES | ' | ' |
NET (LOSS) INCOME | ($693,681) | $378,859 |
BASIC EARNINGS PER COMMON SHARE: | ' | ' |
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | ($0.04) | $0.02 |
DILUTED EARNINGS PER COMMON SHARE: | ' | ' |
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | ($0.04) | $0.02 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ' | ' |
Basic | 18,987,702 | 18,634,369 |
Dilutive | 18,987,702 | 20,763,632 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Preferred Stock | Common Stock | Additional Paid in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2011 | $671,409 | $1,863 | $7,465,386 | ($5,850,606) | $2,288,052 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Provision for compensation expense related to issued stock options | ' | ' | 10,229 | ' | 10,229 |
Benefit for compensation expense related to expired stock options | ' | ' | 21,078 | ' | 21,078 |
Net income, year ended | ' | ' | ' | 378,859 | 378,859 |
Balance at Dec. 31, 2012 | 671,409 | 1,863 | 7,496,693 | -5,471,747 | 2,698,218 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Provision for compensation expense related to issued stock options | ' | ' | 49,805 | ' | 49,805 |
Provision for compensation expense related to issued warrants | ' | ' | 1,916 | ' | 1,916 |
Sale of common stock | ' | 2,500 | 997,500 | ' | 1,000,000 |
Net income, year ended | ' | ' | ' | -693,681 | -693,681 |
Balance at Dec. 31, 2013 | $671,409 | $4,363 | $8,545,914 | ($6,165,428) | $3,056,258 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net (loss) income | ($693,681) | $378,859 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 38,326 | 19,804 |
Compensation expense related to issuance of stock options and warrants | 51,721 | 31,307 |
Allowance for uncollectible accounts | ' | 62,949 |
Decrease (increase) in retained interest in purchased accounts receivable | 2,053,125 | -751,256 |
Increase in due from client | -256,313 | ' |
Decrease (increase) in earned but uncollected | 30,325 | -11,735 |
Decrease (increase) in prepaid expenses and other | 48,094 | -30,074 |
Increase in lease merchandise | -8,004 | ' |
Increase in security deposits | -3,462 | -537 |
(Decrease) increase in accounts payable | -39,458 | 41,396 |
(Decrease) increase in accrued payroll and related taxes | -1,197 | 8,420 |
Decrease in collected but not earned | -16,314 | -8,297 |
Increase (decrease) in accrued expenses | -3,840 | 29,643 |
Net cash provided by (used in) operating activities | 1,199,322 | -229,521 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Patent costs | -30,760 | 0 |
Purchases of property and equipment | -82,148 | -17,031 |
Net cash used in investing activities | -112,908 | -17,031 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
(Payments to) proceeds from financial institution, net | -1,736,821 | 550,420 |
Proceeds from capital contributions | 1,000,000 | ' |
Net cash (used in) provided by financing activities | -736,821 | 550,420 |
INCREASE IN CASH | 349,593 | 303,868 |
CASH, beginning of period | 610,439 | 306,571 |
CASH, end of period | $960,032 | $610,439 |
Background_and_Description_of_
Background and Description of Business | 12 Months Ended |
Dec. 31, 2013 | |
Background and Description of Business [Abstract] | ' |
BACKGROUND AND DESCRIPTION OF BUSINESS | ' |
1. BACKGROUND AND DESCRIPTION OF BUSINESS: | |
The consolidated financial statements include the accounts of FlexShopper, Inc. (formerly Anchor Funding Services, Inc. the "Company") and its wholly owned subsidiaries, Anchor Funding Services, LLC ("Anchor") and FlexShopper, LLC ("FlexShopper"). | |
FlexShopper, Inc. is a Delaware holding corporation. FlexShopper, Inc. has no operations; substantially all operations of the Company are the responsibility of Anchor. | |
Anchor is a North Carolina limited liability company. Today, the Company operates in two industry segments designated as Anchor and FlexShopper. Anchor purchases company’s accounts receivable, which provide businesses with critical working capital so they can meet their operational costs and obligations while waiting to receive payment from their customers. Anchor also provides back office services to businesses located throughout the United States of America. The Company is actively pursuing the sale of this business. FlexShopper provides certain types of durable goods to consumers on a lease-to-own basis and also provides lease-to-own terms to consumers of third party retailers and e-tailers. | |
FlexShopper is a North Carolina limited liability company. FlexShopper is developing a business that will directly provide certain categories of durable goods to consumers on a lease-to-own basis and currently provides lease-to-own terms to consumers of third party retailers. FlexShopper began generating revenues in December 2013; the amount of these revenues is immaterial to the financial statements. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||||||||||
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | |||||||||||||||||||||||||
Principles of Consolidation - The accompanying consolidated financial statements include FlexShopper, Inc. (formerly Anchor Funding Services, Inc. the "Company") and its wholly owned subsidiaries, Anchor Funding Services, LLC ("Anchor") and FlexShopper, LLC ("FlexShopper"). | |||||||||||||||||||||||||
Estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||||||||||
Revenue Recognition – Anchor charges fees to its customers in one of two ways as follows: | |||||||||||||||||||||||||
1) | Fixed Transaction Fee. Fixed transaction fees are a fixed percentage of the purchased invoice and purchase order advance. This percentage does not change from the date the purchased invoice is funded until the date the purchased invoice is collected. | ||||||||||||||||||||||||
2) | Variable Transaction Fee. Variable transaction fees are variable based on the length of time the purchased invoice and purchase order advance is outstanding. As specified in its contract with the client, Anchor charges variable increasing percentages of the purchased invoice or purchase order advance as time elapses from the purchase date to the collection date. | ||||||||||||||||||||||||
For both Fixed and Variable Transaction fees, Anchor recognizes revenue by using one of two methods depending on the type of customer. For new customers Anchor recognizes revenue using the cost recovery method. For established customers Anchor recognizes revenue using the accrual method. | |||||||||||||||||||||||||
Under the cost recovery method, all revenue is recognized upon collection of the entire amount of purchased accounts receivable. | |||||||||||||||||||||||||
Anchor considers new customers to be accounts whose initial funding has been within the last three months or less. Management believes it needs three months of history to reasonably estimate a customer’s collection period and accrued revenues. If three months of history has a limited number of transactions, the cost recovery method will continue to be used until a reasonable revenue estimate can be made based on additional history. Once Anchor obtains sufficient historical experience, it will begin using the accrual method to recognize revenue. | |||||||||||||||||||||||||
For established customers Anchor uses the accrual method of accounting. Anchor applies this method by multiplying the historical yield, for each customer, times the amount advanced on each purchased invoice outstanding for that customer, times the portion of a year that the advance is outstanding. The customers’ historical yield is based on the Anchor last six months of experience with the customer along with the Company’s experience in the customer’s industry, if applicable. | |||||||||||||||||||||||||
The amounts recorded as revenue under the accrual method described above are estimates. As purchased invoices and purchase order advances are collected, Anchor records the appropriate adjustments to record the actual revenue earned on each purchased invoice and purchase order advance. Adjustments from the estimated revenue to the actual revenue have not been material. | |||||||||||||||||||||||||
Revenue Recognition FlexShopper – Lease revenues are recognized in the month they are due on the accrual basis of accounting. For internal management reporting purposes, lease revenues from sales and lease ownership agreements are recognized as revenue in the month the cash is collected. On a monthly basis, we record an accrual for lease revenues due but not yet received, net of allowances, and a deferral of revenue for lease payments received prior to the month due. Our revenue recognition accounting policy matches the lease revenue with the corresponding costs, mainly depreciation, associated with the leased merchandise. | |||||||||||||||||||||||||
Retained Interest in Purchased Accounts Receivable – Retained interest in purchased accounts receivable represents the gross amount of invoices purchased and advances on purchase orders from clients less amounts maintained in a reserve account. For factoring transactions, Anchor purchases a customer’s accounts receivable and advances them a percentage of the invoice total. The difference between the purchase price and amount advanced is maintained in a reserve account. The reserve account is used to offset any potential losses Anchor may have related to the purchased accounts receivable. For purchase order transactions the company advances and pays for 100% of the product’s cost. | |||||||||||||||||||||||||
Anchor’s factoring and security agreements with their customers include various recourse provisions requiring the customers to repurchase accounts receivable if certain conditions, as defined in the factoring and security agreement, are met. | |||||||||||||||||||||||||
Senior management reviews the status of uncollected purchased accounts receivable and purchase order advances monthly to determine if any are uncollectible. Anchor has a security interest in the accounts receivable and inventory purchased and, on a case-by-case basis, may have additional collateral. Anchor files security interests in the property securing their advances. Access to this collateral is dependent upon the laws and regulations in each state where the security interest is filed. Additionally, Anchor has varying types of personal guarantees from their customers relating to the purchased accounts receivable and purchase order advances. | |||||||||||||||||||||||||
Management considered approximately $3,000 of their December 31, 2013 and $80,500 of their December 31, 2012 retained interest in purchased accounts receivable to be uncollectible. | |||||||||||||||||||||||||
Management believes the fair value of the retained interest in purchased accounts receivable approximates its recorded value because of the relatively short-term nature of the purchased receivable and the fact that the majority of these invoices have been subsequently collected. | |||||||||||||||||||||||||
Intangible Assets - Intangible assets, primarily patent costs, are stated at cost less any accumulated amortization and any provision for impairment. Patent costs are amortized by using the straight line method over the shorter of their legal (20 years) or useful lives from the time they are first available for use. | |||||||||||||||||||||||||
Advertising Costs – The Company charges advertising costs to expense as incurred. Total advertising costs were approximately $282,000 and $267,000 for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Earnings per Share (“EPS”) – Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Dilutive earnings per share include the potential impact of dilutive securities, such as convertible preferred stock, stock options and stock warrants. The dilutive effect of stock options and warrants is computed using the treasury stock method, which assumes the repurchase of common shares at the average market price. | |||||||||||||||||||||||||
Under the treasury stock method, options and warrants will have a dilutive effect when the average price of common stock during the period exceeds the exercise price of options or warrants. | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(Denominator) | (Denominator) | ||||||||||||||||||||||||
Weighted- | Per | Weighted- | Per | ||||||||||||||||||||||
(Numerator) | Average | Share | (Numerator) | Average | Share | ||||||||||||||||||||
Net Loss | Shares | Amount | Net Income | Shares | Amount | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
Basic EPS | $ | (693,681 | ) | 18,987,702 | $ | (0.04 | ) | $ | 378,859 | 18,634,369 | $ | 0.02 | |||||||||||||
Effect of Dilutive Securities – Options and | |||||||||||||||||||||||||
Convertible Preferred Stock | - | - | - | - | 2,129,263 | - | |||||||||||||||||||
Diluted EPS | $ | (693,681 | ) | 18,987,702 | $ | (0.04 | ) | $ | 378,859 | 20,763,632 | $ | 0.02 | |||||||||||||
Stock Based Compensation - The fair value of transactions in which the Company exchanges its equity instruments for employee services (share-based payment transactions) is recognized as an expense in the financial statements as services are performed. | |||||||||||||||||||||||||
Compensation expense is determined by reference to the fair value of an award on the date of grant and is amortized on a straight-line basis over the vesting period. We have elected to use the Black-Scholes-Merton (BSM) pricing model to determine the fair value of all stock option awards. | |||||||||||||||||||||||||
See Note 9 for the impact on the operating results for the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||
Fair Value of Financial Instruments – The carrying value of cash equivalents, retained interest in purchased accounts receivable, due to financial institution, accounts payable and accrued liabilities approximates their fair value. | |||||||||||||||||||||||||
Cash and Cash Equivalents – Cash and cash equivalents consist primarily of highly liquid cash investment funds with original maturities of three months or less when acquired. | |||||||||||||||||||||||||
Income Taxes – Effective January 31, 2007, the Company became a “C” corporation for income tax purposes. In a “C” corporation income taxes are provided for the tax effects of transactions reported in the consolidated financial statements plus deferred income taxes related to the differences between financial statement and taxable income. | |||||||||||||||||||||||||
The primary differences between financial statement and taxable income for the Company are as follows: | |||||||||||||||||||||||||
· Expenses related to the issuance of equity instruments | |||||||||||||||||||||||||
· Use of the reserve method of accounting for bad debts | |||||||||||||||||||||||||
· Net operating loss carryforwards. | |||||||||||||||||||||||||
The deferred tax asset represents the future tax return consequences of utilizing these items. Deferred tax assets are reduced by a valuation reserve, when management is uncertain if the net deferred tax assets will ever be realized. | |||||||||||||||||||||||||
The Company applied the provisions of ASC 740-10-50, “Accounting for Uncertainty in Income Taxes”, which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our financial statements. The Company applied this guidance to all its tax positions, including tax positions taken and those expected to be taken, under the transition provision of the interpretation. For the years ended December 31, 2013 and 2012, the Company concluded that it had no material uncertain tax positions. | |||||||||||||||||||||||||
The Company classifies interest accrued on unrecognized tax benefits with interest expense. Penalties accrued on unrecognized tax benefits are classified with operating expenses. | |||||||||||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||||||||||
The FASB amended the Comprehensive Income topic of the ASC in February 2013 with ASU No. 2013-02. The amendment addresses reporting of amounts reclassified out of accumulated other comprehensive income. Specifically, the amendment does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendment does require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, in certain circumstances an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amendment was effective for the Company on a prospective basis for fiscal year 2013. This amendment did not have a material effect on the Company’s financial statements. | |||||||||||||||||||||||||
In February 2013, the FASB Issued ASU No. 2013-04, "Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date". ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for obligations within the scope of this ASU, which is effective January l, 2014. Upon adoption, we do not expect this ASU to impact our financial statements. | |||||||||||||||||||||||||
In July 2013, the FASB issued ASU 2013-11 , "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, " which among other things, require an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as denoted within the ASU. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We are currently evaluating the impact on our financial statements with respect to ASU 2013-11. | |||||||||||||||||||||||||
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact in the Company’s financial position, results of operations or cash flows. |
Retained_Interest_in_Purchased
Retained Interest in Purchased Accounts Receivable | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Retained Interest In Purchased Accounts Receivable [Abstract] | ' | ||||||||
RETAINED INTEREST IN PURCHASED ACCOUNTS RECEIVABLE | ' | ||||||||
3. RETAINED INTEREST IN PURCHASED ACCOUNTS RECEIVABLE: | |||||||||
Retained interest in purchased accounts receivable consists of the following: | |||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
Purchased invoices | $ | 6,085,940 | $ | 8,921,203 | |||||
Purchase order advances | 365,394 | 21,156 | |||||||
Reserve account | (1,481,996 | ) | (1,842,447 | ) | |||||
Allowance for uncollectible invoices | (3,000 | ) | (80,449 | ) | |||||
$ | 4,966,338 | $ | 7,019,463 | ||||||
Retained interest in purchased accounts receivable consists, excluding the allowance for uncollectible invoices, of United States companies in the following industries: | |||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
Staffing | $ | 192,806 | $ | 185,557 | |||||
Transportation | 1,592,900 | 1,773,290 | |||||||
Service | 3,063,021 | 4,528,668 | |||||||
Manufacturing | 120,611 | 612,397 | |||||||
$ | 4,969,338 | $ | 7,099,912 | ||||||
Adjustments to the allowance for uncollectible invoices were as follows: | |||||||||
For the years ending December 31, | |||||||||
2013 | 2012 | ||||||||
Balance - beginning of year | $ | 80,449 | $ | 17,500 | |||||
Provision for credit losses | 12,200 | 62,949 | |||||||
Write-offs | (89,649 | ) | - | ||||||
Balance - end of year | $ | 3,000 | $ | 80,449 | |||||
Total purchased invoices and purchase order advances were as follows: | |||||||||
For the years ending December 31, | |||||||||
2013 | 2012 | ||||||||
Purchased invoices | $ | 83,653,644 | $ | 95,875,787 | |||||
Purchase order advances | 843,193 | 435,928 | |||||||
$ | 84,496,837 | $ | 96,311,715 | ||||||
Due_from_Client
Due from Client | 12 Months Ended |
Dec. 31, 2013 | |
Due From Client [Abstract] | ' |
DUE FROM CLIENT | ' |
4. DUE FROM CLIENT | |
As of December 31, 2013, Anchor was owed approximately $250,000 from a Food Service Company from whom Anchor had purchased invoices. In July 2013, Anchor determined that the Food Service Company had misdirected certain payments due to Anchor, and Anchor ceased funding this client. On August 8, 2013, the Food Service Company filed Chapter 11 Bankruptcy. At the time of the bankruptcy filing, Anchor's total funding employed to the Food Service Company was approximately $1,453,500. Under a Court Order approved settlement with the Food Service Company, Anchor collected approximately $1,153,500 of the Food Service Company’s accounts receivable. By Court Order, the final balance of $300,000 is to be paid to Anchor in twelve monthly installments of $25,000 beginning November 8, 2013. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property and Equipment [Abstract] | ' | |||||||||
PROPERTY AND EQUIPMENT | ' | |||||||||
5. PROPERTY AND EQUIPMENT: | ||||||||||
Property and equipment consist of the following: | ||||||||||
Estimated | ||||||||||
Useful Lives | 31-Dec-13 | 31-Dec-12 | ||||||||
Furniture and fixtures | 2-5 years | $ | 64,945 | $ | 46,818 | |||||
Computers and software | 3-7 years | 251,525 | 187,505 | |||||||
316,470 | 234,323 | |||||||||
Less: accumulated depreciation | (258,391 | ) | (220,066 | ) | ||||||
$ | 58,079 | $ | 14,257 | |||||||
Depreciation expense was $38,326 and $19,804 for the years ended December 31, 2013 and 2012, respectively. |
Due_to_Financial_Institution
Due to Financial Institution | 12 Months Ended |
Dec. 31, 2013 | |
Due to Financial Institution [Abstract] | ' |
DUE TO FINANCIAL INSTITUTION | ' |
6. DUE TO FINANCIAL INSTITUTION: | |
On November 8, 2011, Anchor entered into a Rediscount Credit Facility with a Commercial Bank that was effective November 30, 2011 and replaced its prior credit facility. The maximum amount that can be borrowed under the facility is $10 million and the Bank will advance up to 80% of Anchor's advances to its clients. Anchor pays interest on advances monthly at the 90 Day Libor Rate plus 6.25% and various other monthly fees as defined in the agreement. The agreement requires that Anchor maintain at all times a ratio of debt to tangible net worth of not higher than four to one (4:1). As of December 31, 2013, the Company was in compliance. The agreement contains customary representations and warranties, events of default and limitations, among other provisions. The agreement is collateralized by a first lien on all Anchors' assets. The agreement’s next anniversary date is November 30, 2014 and automatically renews each year for an additional year provided that the Company has not provided 60 days’ notice to the Bank in advance of the anniversary date. The facility was renewed through November 30, 2014. This facility contains certain standard covenants, representations and warranties for loans of this type. In the event that we fail to comply with the covenant(s) and the lender does not waive such non-compliance, we could be in default of our credit facility, which could subject us to penalty rates of interest and accelerate the maturity of the outstanding balances in addition to other legal remedies, including foreclosure on collateral. The Company’s President and CEO have provided validity guarantees to the Bank. Anchor owed this financial institution $3,240,942 and $4,977,763 as of December 31, 2013 and 2012, respectively. |
Capital_Structure
Capital Structure | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Capital Structure [Abstract] | ' | ||||||||
CAPITAL STRUCTURE | ' | ||||||||
7. CAPITAL STRUCTURE: | |||||||||
The Company’s capital structure consists of preferred and common stock as described below: | |||||||||
Preferred Stock – The Company is authorized to issue 10,000,000 shares of $.001 par value preferred stock. The Company’s Board of Directors determines the rights and preferences of its preferred stock. | |||||||||
On January 31, 2007, the Company filed a Certificate of Designation with the Secretary of State of Delaware. Effective with this filing, 2,000,000 preferred shares became Series 1 Convertible Preferred Stock. Series 1 Convertible Preferred Stock will rank senior to Common Stock. | |||||||||
Series 1 Convertible Preferred Stock is convertible into 5.1 shares of the Company’s Common Stock. The holder of the Series 1 Convertible Preferred Stock has the option to convert the shares to Common Stock at any time. Upon conversion all accumulated and unpaid dividends will be paid as additional shares of Common Stock. | |||||||||
The dividend rate on Series 1 Convertible Preferred Stock is 8%. Dividends are paid annually on December 31st in the form of additional Series 1 Convertible Preferred Stock unless the Board of Directors approves a cash dividend. Dividends on Series 1 Convertible Preferred Stock shall cease to accrue on the earlier of December 31, 2009, or on the date they are converted to Common Shares. Thereafter, the holders of Series 1 Convertible Preferred Stock have the same dividend rights as holders of Common Stock, as if the Series 1 Convertible Preferred Stock had been converted to Common Stock. | |||||||||
Common Stock – The Company is authorized to issue 65,000,000 shares of $.0001 par value Common Stock. Each share of Common Stock entitles the holder to one vote at all stockholder meetings. Dividends on Common Stock will be determined annually by the Company’s Board of Directors. | |||||||||
During the last quarter of 2013, the Company raised $1,000,000 from the sale of its restricted Common Stock at $.40 per share. An aggregate of 2,500,000 shares of Common Stock were sold under Rule 506 and/or Section 4(2) of the Securities Act of 1933 as amended. The Company also issued 14,493 shares to consultants for services rendered. | |||||||||
The changes in Series 1 Convertible Preferred Stock and Common Stock shares for the years ended December 31, 2013 and 2012 is summarized as follows: | |||||||||
Series 1 Convertible | Common | ||||||||
Preferred Stock | Stock | ||||||||
Balance, January 1, 2012 | 376,387 | 18,634,369 | |||||||
Preferred Stock Conversions | - | - | |||||||
Common Stock Issuances | - | - | |||||||
Balance, December 31, 2012 | 376,387 | 18,634,369 | |||||||
Preferred Stock Conversions | - | - | |||||||
Common Stock Issuances | - | 2,514,493 | |||||||
Balance, December 31, 2013 | 376,387 | 21,148,862 |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
8. RELATED PARTY TRANSACTIONS: | |
Promissory notes payable | |
On March 19, 2014, FlexShopper entered into two Promissory Notes totaling $1,000,000, one with Morry Rubin and the other with a major shareholder and Director of the company. Each demand Promissory Note is for $500,000 and earns interest (payable monthly) at 10% per annum. The Promissory Notes are to assist FlexShopper in purchasing merchandise for lease to support FlexShopper’s growth. | |
On June 5, 2012, upon approval of the Board, Anchor entered into two Promissory Notes totaling $400,000, one with Morry Rubin and the other with a major shareholder of the company. Each Promissory Note was for $200,000, had a 90 day term, and earned interest (payable monthly) at 15% per annum. The Promissory Notes were to assist Anchor in providing factoring and purchase order funding facilities to some of its clients. The Promissory Notes were subordinate to and supplemented Anchor's $10 Million Rediscount Credit Facility with a Commercial Bank. Both promissory notes were paid on September 5, 2012. Anchor paid $15,123 of interest on these notes for year ended December 31, 2012. | |
Options granted to officers and directors. | |
On March 20, 2012, M. Rubin and B. Bernstein were each granted 10 year options to purchase 250,000 shares of common stock each for a total of 500,000 shares, with the options vesting over a period of 10 years. Due to the anti-dilution provisions of our Series 1 Convertible Preferred Stock, this grant caused an adjustment of our preferred stock into common stock. Each share of Series 1 Preferred Stock is now convertible into 5.1 shares of the Company’s Common Stock. The holders of the Series 1 Convertible Preferred Stock have the option to convert the shares to Common Stock at any time. See Note 7. | |
In June 2012, Paul Healy was granted 10-year non-statutory stock options to purchase 180,000 shares of Anchor’s common stock exercisable at $.25 per share. The options vest one-third immediately and one-third on each of the successive anniversary dates from Mr. Healy joining the board until fully vested. | |
In June 2013, the Company granted the Chief Information Officer of F1exShopper, which is a non-executive officer position, 10-year Incentive Stock Options to purchase 100,000 shares of Anchor's Common Stock, exercisable at $.35 per share. The options vest one-third immediately, and one-third on each of the successive anniversary dates from the date the FlexShopper Chief Information Officer commenced work. |
Employment_and_Stock_Option_Ag
Employment and Stock Option Agreements | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Employment and Stock Option Agreements [Abstract] | ' | ||||||||||||||||||||||||
EMPLOYMENT AND STOCK OPTION AGREEMENTS | ' | ||||||||||||||||||||||||
9. EMPLOYMENT AND STOCK OPTION AGREEMENTS: | |||||||||||||||||||||||||
On January 31, 2007, the Board adopted our 2007 Omnibus Equity Compensation Plan (the “Plan”), with 2,100,000 common shares authorized for issuance under the Plan. In October 2009 the Company's stockholders approved an increase in the number of shares covered by the Plan to 4,200,000 shares. | |||||||||||||||||||||||||
The general purpose of the plan is to provide an incentive to the Company’s employees, directors and consultants by enabling them to share in the future growth of the business. | |||||||||||||||||||||||||
At closing of the exchange transaction described above, M. Rubin and Brad Bernstein (“B. Bernstein”), the President of the Company, entered into employment contracts and stock option agreements. Additionally, at closing two non-employee directors entered into stock option agreements. | |||||||||||||||||||||||||
The following summarizes M. Rubin’s employment agreement and stock options: | |||||||||||||||||||||||||
· | The employment agreement with M. Rubin currently retains his services as Co-chairman and Chief Executive Officer through January 31, 2015. | ||||||||||||||||||||||||
· | On August 8, 2013, the board agreed to modify M. Rubin’s employment agreement and approved an annual salary of $125,000. Previously M. Rubin received an annual salary of $1.00. M. Rubin is eligible to receive periodic review of his base salary and annual bonuses as determined by the Company’s compensation committee. M. Rubin shall be entitled to a monthly automobile allowance of $1,500. | ||||||||||||||||||||||||
· | 10-year options to purchase 650,000 shares exercisable at $1.25 per share, pursuant to the Plan. All of the aforementioned options are fully vested. | ||||||||||||||||||||||||
The following summarizes B. Bernstein’s employment agreement and stock options: | |||||||||||||||||||||||||
· | The employment agreement with B. Bernstein currently retains his services as President through January 31, 2015. | ||||||||||||||||||||||||
· | An annual salary of $240,000. The Board may periodically review B. Bernstein’s base salary and may determine to increase (but not decrease) the base salary in accordance with such policies as the Company may hereafter adopt from time to time. | ||||||||||||||||||||||||
· | The Board approved an annual bonus program for Mr. Bernstein commencing with the 2012 fiscal year and ending with the 2014 fiscal year. The annual bonus is equal to 5% of annual net income provided net income is equal to or greater than $200,000. The bonus is calculated on the Company’s audited GAAP financial statements. B. Bernstein shall be entitled to a monthly automobile allowance of $1,000. | ||||||||||||||||||||||||
· | 10-year options to purchase 950,000 shares exercisable at $1.25 per share, pursuant to the Plan. All of the aforementioned options are fully vested. | ||||||||||||||||||||||||
The following table summarizes information about stock options as of December 31, 2013: | |||||||||||||||||||||||||
Exercise | Number | Remaining | Number | ||||||||||||||||||||||
Price | Outstanding | Contractual Life | Exercisable | ||||||||||||||||||||||
$ | 1.25 | 1,605,000 | 4 years | 1,605,000 | |||||||||||||||||||||
$ | 1 | 45,000 | 6 years | 33,750 | |||||||||||||||||||||
$ | 0.62 | 500,000 | 6 years | 500, 000 | |||||||||||||||||||||
$ | 0.17 | 500,000 | 9 years | 500,000 | |||||||||||||||||||||
$ | 0.25 | 180,000 | 10 years | 120,000 | |||||||||||||||||||||
$ | 0.35 | 100,000 | 10 years | 33,333 | |||||||||||||||||||||
$ | 0.3 | 60,000 | 10 years | 20,000 | |||||||||||||||||||||
$ | 0.45 | 25,000 | 10 years | 8,333 | |||||||||||||||||||||
3,015,000 | 2,820,416 | ||||||||||||||||||||||||
The Company measured the fair value of each option award on the date of grant using the Black Scholes option pricing model (BSM) with the following assumptions: | |||||||||||||||||||||||||
Exercise price | $ | .17 to $1.25 | |||||||||||||||||||||||
Term | 10 years | ||||||||||||||||||||||||
Volatility | 0.38 to 2.50 | ||||||||||||||||||||||||
Dividends | 0 | % | |||||||||||||||||||||||
Discount rate | 0.02% to 4.75% | ||||||||||||||||||||||||
The fair value amounts recorded for these options in the statement of operations was $49,805 and $10,229 for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Stock option activity and weighted average exercise price is summarized as follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Options | Price | Options | Price | Options | Price | ||||||||||||||||||||
Outstanding at beginning of year | 2,830,000 | 0.88 | 2,430,000 | 1.12 | 2,440,000 | 1.1 | |||||||||||||||||||
Granted | 195,000 | 0.35 | 680,000 | 0.19 | - | - | |||||||||||||||||||
Cancelled | (10,000 | ) | 0.45 | (280,000 | ) | 1.25 | (10,000 | ) | 1 | ||||||||||||||||
Exercised | - | - | - | - | - | - | |||||||||||||||||||
Outstanding at end of year | 3,015,000 | 0.85 | 2,830,000 | 0.88 | 2,430,000 | 1.12 | |||||||||||||||||||
Exercisable at end of year | 2,820,416 | 0.88 | 2,198,750 | 1.08 | 2,401,250 | 1.12 |
Warrants
Warrants | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Warrants [Abstract] | ' | |||||||||||
WARRANTS | ' | |||||||||||
10. WARRANTS: | ||||||||||||
In March, 2007, the Company’s placement agent was issued warrants to purchase 1,342,500 shares of the Company’s common stock. These warrants were due to expire on January 31, 2013, but were extended on the condition that each warrant holder accept a new exercise price of $1.35 per share. Currently, these warrants are scheduled to expire on January 31, 2018 and are currently exercisable at the original price of $1.10 per share. The following information was input into BSM to compute a per warrant price of $.023: | ||||||||||||
Exercise price | $ | 1.1 | ||||||||||
Term | 7 years | |||||||||||
Volatility | 40% | |||||||||||
Dividends | 0 | % | ||||||||||
Discount rate | 0.05 | % | ||||||||||
For the year ended December 31, 2013, the Company recorded compensation expense of $1,916 related to the issuance of these warrants. | ||||||||||||
On December 7, 2009, the Company received gross proceeds of $500,002 from the sale of 500,002 shares of common stock and ten year warrants to purchase 2,000,004 shares of common stock exercisable at $1.00 per share. BSM was used to compute the fair value of the warrants. | ||||||||||||
The following table summarizes information about stock warrants as of December 31, 2013: | ||||||||||||
Weighted Average | ||||||||||||
Exercise | Number | Remaining | Number | |||||||||
Price | Outstanding | Contractual Life | Exercisable | |||||||||
$ | 1.1 | 1,342,500 | 1 Month | 1,342,500 | ||||||||
$ | 1 | 2,000,004 | 7 years | 2,000,004 | ||||||||
Concentrations
Concentrations | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Concentrations [Abstract] | ' | ||||||||
CONCENTRATIONS | ' | ||||||||
11. CONCENTRATIONS: | |||||||||
Revenues – The Company recorded revenues from United States companies in the following industries as follows: | |||||||||
Industry | For the year ending December 31, | ||||||||
2013 | 2012 | ||||||||
Staffing | $ | 80,780 | $ | 69,773 | |||||
Transportation | 627,095 | 782,058 | |||||||
Service | 1,365,379 | 1,426,583 | |||||||
Other | 20,357 | 105,483 | |||||||
Manufacturing | 173,844 | - | |||||||
Apparel | 96,673 | 142,729 | |||||||
$ | 2,364,128 | $ | 2,526,626 | ||||||
Major Customers – The Company did not have any major customers for the years ending December 31, 2013 and 2012 that represented 10% or more of its revenues. | |||||||||
Client Accounts - As of December 31, 2013, Anchor has five clients that account for an aggregate of approximately 36.1% of its accounts receivable portfolio and approximately 16.3% of its revenues for the year ended December 31, 2013. The transactions and balances with these clients as of and for the year ended December 31, 2013 are summarized below: | |||||||||
Percentage of Accounts Receivable | Percentage of Revenues for | ||||||||
Portfolio | the Twelve Months | ||||||||
As of | Ended | ||||||||
Entity | 31-Dec-13 | 31-Dec-13 | |||||||
Trucking company in MI | 8.7 | % | 4.3 | % | |||||
Cable trenching utility in FL | 6.4 | % | 3.4 | % | |||||
Importer in MI | 8.4 | % | 3 | % | |||||
Aerospace servicer in NM | 6.2 | % | 3.7 | % | |||||
Trucking Company in VA | 6.4 | % | 1.9 | % | |||||
36.1 | % | 16.3 | % | ||||||
Cash – The Company places its cash and cash equivalents on deposit with financial institutions in the United States. The Federal Deposit Insurance Corporation (FDIC) provides coverage up to $250,000 per depositor at FDIC-insured depository institutions. At December 31, 2013, the Company had approximately $546,000 on deposit in excess of the insured limits. |
Supplemental_Disclosures_of_Ca
Supplemental Disclosures of Cash Flow | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Supplemental Disclosures of Cash Flow [Abstract] | ' | ||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW | ' | ||||||||
12. SUPPLEMENTAL DISCLOSURES OF CASH FLOW: | |||||||||
Cash paid for interest was as follows: | |||||||||
For the year ending December 31, | |||||||||
2013 | 2012 | ||||||||
To a financial institution | $ | 369,487 | $ | 446,922 | |||||
To a related party | - | 15,123 | |||||||
Total | $ | 369,487 | $ | 462,045 | |||||
Non-cash financing and investing activities consisted of the following: | |||||||||
For the year ending 2013 – | |||||||||
None | |||||||||
For the year ending 2012 – | |||||||||
None |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
13. INCOME TAXES: | |||||||||
For the year ended December 31, 2013, the Company had losses from continuing operations, therefore no current taxes were incurred. For the year ended December 31, 2012, the Company was able to offset its taxable income through the utilization of net operating loss carryforwards, therefore no current taxes were incurred. | |||||||||
The following table reconciles the total provision for income taxes from continuing operations recorded in the consolidated statement of operations with the amounts computed at the statutory federal tax rate of 34%: | |||||||||
2013 | 2012 | ||||||||
Federal tax expense at statutory rate | $ | (235,000 | ) | $ | 146,000 | ||||
State tax expense | (10,000 | ) | 15,000 | ||||||
Permanent items | 5,000 | − | |||||||
Change in valuation allowance | (240,000 | ) | (161,000 | ) | |||||
Income taxes | $ | - | $ | - | |||||
Temporary differences between the amounts reported in the financial statements and the tax bases of assets and liabilities resulted in deferred taxes. Deferred tax assets at December 31, 2013 and 2012 were as follows; certain prior year numbers have been reclassified to conform to current year presentation. | |||||||||
2013 | 2012 | ||||||||
Equity based compensation | $ | 102,000 | $ | 91,000 | |||||
Allowance for doubtful accounts | 1,000 | 31,000 | |||||||
Net operating loss carry-forwards | 1,660,000 | 1,385,000 | |||||||
Gross deferred tax assets | 1,763,000 | 1,507,000 | |||||||
Fixed assets and intangible basis difference | (19,000 | ) | (3,000 | ) | |||||
1,744,000 | 1,504,000 | ||||||||
Valuation allowance | (1,744,000 | ) | (1,504,000 | ) | |||||
Income taxes | $ | - | $ | - | |||||
Primarily due to a taxable loss in 2013 the Company’s gross deferred tax asset increased to $1,763,000. All available evidence, both positive and negative, was considered to determine whether any impairment of this asset should be recognized. Based on consideration of the available evidence including historical losses which must be treated as substantial negative evidence and the potential of future taxable income, a $1,744,000 valuation allowance has been recognized to adjust deferred tax assets and liabilities to the amount of net operating losses that are expected to be realized. If realized, the tax benefit for this item will reduce current tax expense for that period as it did for the year ended December 31, 2012. | |||||||||
The Company has the following net operating loss carryforwards available to offset future taxable income: | |||||||||
Amount | Expiration | ||||||||
Federal | $ | 4,313,000 | 2022 - 2025 | ||||||
State | $ | 1,669,000 | 2022 - 2025 | ||||||
The Company files tax returns in the U.S. federal jurisdiction and various states. At December 31, 2013, federal tax returns remained open for Internal Revenue Service review for tax years after 2010, while state tax returns remain open for review by state taxing authorities for tax years after 2009. There were no federal or state income tax audits being conducted as of December 31, 2013. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment Information [Abstract] | ' | ||||||||
SEGMENT INFORMATION | ' | ||||||||
14. SEGMENT INFORMATION: | |||||||||
The Company’s reportable segments consist of Anchor and FlexShopper. Anchor purchases company’s accounts receivable, which provide businesses with critical working capital so they can meet their operational costs and obligations while waiting to receive payment from their customers. FlexShopper provides certain types of durable goods to consumers on a lease-to-own basis and also provides lease-to-own terms to consumers of third party retailers and e-tailers. | |||||||||
Information for the Company’s segments is as follows: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Assets: | |||||||||
FlexShopper | $ | 718,896 | $ | − | |||||
Anchor | 5,761,499 | 7,919,985 | |||||||
Total | $ | 6,480,395 | $ | 7,919,985 | |||||
Revenues: | |||||||||
FlexShopper | $ | 119 | $ | − | |||||
Anchor | 2,364,009 | 2,526,626 | |||||||
Total | $ | 2,364,128 | $ | 2,526,626 | |||||
Net (loss) income: | |||||||||
FlexShopper | $ | (655,474 | ) | $ | − | ||||
Anchor | (38,207 | ) | 378,859 | ||||||
Total | $ | (693,681 | ) | $ | 378,859 |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
15. COMMITMENTS AND CONTINGENCIES: | |||||
Lease Commitments | |||||
The Company has lease agreements for office space in Charlotte, NC, and Boca Raton, FL. All lease agreements are with unrelated parties. | |||||
The Company has two Charlotte leases for adjoining space that expire May 31, 2014. The monthly rent for the combined space is approximately $2,340. | |||||
Beginning November 1, 2009, the company entered into a 24 month lease for office space in Boca Raton, FL, and on November 1, 2012 renewed for another two years. This lease expired on September 30, 2013 and was not renewed. The monthly rent was approximately $1,413. | |||||
On August 1, 2013, FlexShopper entered into a 39 month lease for additional office space in Boca Raton, FL to accommodate the FlexShopper business and its additional employees. The monthly rent was approximately $6,800. This lease agreement was amended in January 2014 to reflect a 63 month term for a larger suite in an adjoining building. Upon commencement the monthly base rent including operating expenses for the first year will be approximately $15,800 with annual three percent increases throughout the lease term. | |||||
Anchor had a lease for office space in Medley, FL, which was to expire on May 12, 2014. Anchor terminated this lease in 2013 and forfeited its security deposit. | |||||
The rental expense for the years ended December 31, 2013 and 2012 was approximately $58,921 and $46,571, respectively. The future minimum lease payments are approximately as follows: | |||||
2014 | $ | 86,900 | |||
2015 | 117,600 | ||||
2016 | 122,000 | ||||
2017 | 126,000 | ||||
2018 | 129,600 | ||||
Thereafter | 77,200 | ||||
$ | 659,300 | ||||
Contingencies | |||||
We are not a party to any pending material legal proceedings except as described below. To our knowledge, no governmental authority is contemplating commencing a legal proceeding in which we would be named as a party. | |||||
On October 22, 2010, Anchor filed a complaint in the Superior Court of Stamford/Norwalk, Connecticut against the Administrators of the Estate of David Harvey (“Harvey”) to recoup a credit loss incurred by the Company’s former subsidiary, Brookridge Funding Services, LLC. Harvey was the owner of a Company that caused the credit loss and the Company is pursuing its rights under the personal guarantee that Harvey provided. The Complaint is demanding principal of approximately $485,000 plus interest and damages. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
16. SUBSEQUENT EVENTS | |
On March 6, 2014, Anchor signed a non-binding letter of intent with a financial institution to sell its factoring business. There can be no assurances given that the Company will sell its Anchor factoring business on terms satisfactory to the Company, if at all. | |
On March 19, 2014 upon approval of the Board, FlexShopper entered into two Promissory Notes totaling $1,000,000, one with Morry Rubin and the other with a major shareholder and Director of the company. Each demand Promissory Note is for $500,000 and earns interest (payable monthly) at 10% per annum. The Promissory Notes are to assist FlexShopper in purchasing merchandise for lease to support FlexShopper’s growth. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||||||||||
Principles of Consolidation - The accompanying consolidated financial statements include FlexShopper, Inc. (formerly Anchor Funding Services, Inc. the "Company") and its wholly owned subsidiaries, Anchor Funding Services, LLC ("Anchor") and FlexShopper, LLC ("FlexShopper"). | |||||||||||||||||||||||||
Estimates | ' | ||||||||||||||||||||||||
Estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||||||
Revenue Recognition – Anchor charges fees to its customers in one of two ways as follows: | |||||||||||||||||||||||||
1) | Fixed Transaction Fee. Fixed transaction fees are a fixed percentage of the purchased invoice and purchase order advance. This percentage does not change from the date the purchased invoice is funded until the date the purchased invoice is collected. | ||||||||||||||||||||||||
2) | Variable Transaction Fee. Variable transaction fees are variable based on the length of time the purchased invoice and purchase order advance is outstanding. As specified in its contract with the client, Anchor charges variable increasing percentages of the purchased invoice or purchase order advance as time elapses from the purchase date to the collection date. | ||||||||||||||||||||||||
For both Fixed and Variable Transaction fees, Anchor recognizes revenue by using one of two methods depending on the type of customer. For new customers Anchor recognizes revenue using the cost recovery method. For established customers Anchor recognizes revenue using the accrual method. | |||||||||||||||||||||||||
Under the cost recovery method, all revenue is recognized upon collection of the entire amount of purchased accounts receivable. | |||||||||||||||||||||||||
Anchor considers new customers to be accounts whose initial funding has been within the last three months or less. Management believes it needs three months of history to reasonably estimate a customer’s collection period and accrued revenues. If three months of history has a limited number of transactions, the cost recovery method will continue to be used until a reasonable revenue estimate can be made based on additional history. Once Anchor obtains sufficient historical experience, it will begin using the accrual method to recognize revenue. | |||||||||||||||||||||||||
For established customers Anchor uses the accrual method of accounting. Anchor applies this method by multiplying the historical yield, for each customer, times the amount advanced on each purchased invoice outstanding for that customer, times the portion of a year that the advance is outstanding. The customers’ historical yield is based on the Anchor last six months of experience with the customer along with the Company’s experience in the customer’s industry, if applicable. | |||||||||||||||||||||||||
The amounts recorded as revenue under the accrual method described above are estimates. As purchased invoices and purchase order advances are collected, Anchor records the appropriate adjustments to record the actual revenue earned on each purchased invoice and purchase order advance. Adjustments from the estimated revenue to the actual revenue have not been material. | |||||||||||||||||||||||||
Revenue Recognition FlexShopper | ' | ||||||||||||||||||||||||
Revenue Recognition FlexShopper – Lease revenues are recognized in the month they are due on the accrual basis of accounting. For internal management reporting purposes, lease revenues from sales and lease ownership agreements are recognized as revenue in the month the cash is collected. On a monthly basis, we record an accrual for lease revenues due but not yet received, net of allowances, and a deferral of revenue for lease payments received prior to the month due. Our revenue recognition accounting policy matches the lease revenue with the corresponding costs, mainly depreciation, associated with the leased merchandise. | |||||||||||||||||||||||||
Retained Interest in Purchased Accounts Receivable | ' | ||||||||||||||||||||||||
Retained Interest in Purchased Accounts Receivable – Retained interest in purchased accounts receivable represents the gross amount of invoices purchased and advances on purchase orders from clients less amounts maintained in a reserve account. For factoring transactions, Anchor purchases a customer’s accounts receivable and advances them a percentage of the invoice total. The difference between the purchase price and amount advanced is maintained in a reserve account. The reserve account is used to offset any potential losses Anchor may have related to the purchased accounts receivable. For purchase order transactions the company advances and pays for 100% of the product’s cost. | |||||||||||||||||||||||||
Anchor’s factoring and security agreements with their customers include various recourse provisions requiring the customers to repurchase accounts receivable if certain conditions, as defined in the factoring and security agreement, are met. | |||||||||||||||||||||||||
Senior management reviews the status of uncollected purchased accounts receivable and purchase order advances monthly to determine if any are uncollectible. Anchor has a security interest in the accounts receivable and inventory purchased and, on a case-by-case basis, may have additional collateral. Anchor files security interests in the property securing their advances. Access to this collateral is dependent upon the laws and regulations in each state where the security interest is filed. Additionally, Anchor has varying types of personal guarantees from their customers relating to the purchased accounts receivable and purchase order advances. | |||||||||||||||||||||||||
Management considered approximately $3,000 of their December 31, 2013 and $80,500 of their December 31, 2012 retained interest in purchased accounts receivable to be uncollectible. | |||||||||||||||||||||||||
Management believes the fair value of the retained interest in purchased accounts receivable approximates its recorded value because of the relatively short-term nature of the purchased receivable and the fact that the majority of these invoices have been subsequently collected. | |||||||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||||||
Intangible Assets - Intangible assets, primarily patent costs, are stated at cost less any accumulated amortization and any provision for impairment. Patent costs are amortized by using the straight line method over the shorter of their legal (20 years) or useful lives from the time they are first available for use. | |||||||||||||||||||||||||
Advertising Costs | ' | ||||||||||||||||||||||||
Advertising Costs – The Company charges advertising costs to expense as incurred. Total advertising costs were approximately $282,000 and $267,000 for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Earnings per Share ("EPS") | ' | ||||||||||||||||||||||||
Earnings per Share (“EPS”) – Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Dilutive earnings per share include the potential impact of dilutive securities, such as convertible preferred stock, stock options and stock warrants. The dilutive effect of stock options and warrants is computed using the treasury stock method, which assumes the repurchase of common shares at the average market price. | |||||||||||||||||||||||||
Under the treasury stock method, options and warrants will have a dilutive effect when the average price of common stock during the period exceeds the exercise price of options or warrants. | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(Denominator) | (Denominator) | ||||||||||||||||||||||||
Weighted- | Per | Weighted- | Per | ||||||||||||||||||||||
(Numerator) | Average | Share | (Numerator) | Average | Share | ||||||||||||||||||||
Net Loss | Shares | Amount | Net Income | Shares | Amount | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
Basic EPS | $ | (693,681 | ) | 18,987,702 | $ | (0.04 | ) | $ | 378,859 | 18,634,369 | $ | 0.02 | |||||||||||||
Effect of Dilutive Securities – Options and | |||||||||||||||||||||||||
Convertible Preferred Stock | - | - | - | - | 2,129,263 | - | |||||||||||||||||||
Diluted EPS | $ | (693,681 | ) | 18,987,702 | $ | (0.04 | ) | $ | 378,859 | 20,763,632 | $ | 0.02 | |||||||||||||
Stock Based Compensation | ' | ||||||||||||||||||||||||
Stock Based Compensation - The fair value of transactions in which the Company exchanges its equity instruments for employee services (share-based payment transactions) is recognized as an expense in the financial statements as services are performed. | |||||||||||||||||||||||||
Compensation expense is determined by reference to the fair value of an award on the date of grant and is amortized on a straight-line basis over the vesting period. We have elected to use the Black-Scholes-Merton (BSM) pricing model to determine the fair value of all stock option awards. | |||||||||||||||||||||||||
See Note 9 for the impact on the operating results for the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||||||
Fair Value of Financial Instruments – The carrying value of cash equivalents, retained interest in purchased accounts receivable, due to financial institution, accounts payable and accrued liabilities approximates their fair value. | |||||||||||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||||||||||
Cash and Cash Equivalents – Cash and cash equivalents consist primarily of highly liquid cash investment funds with original maturities of three months or less when acquired. | |||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
Income Taxes – Effective January 31, 2007, the Company became a “C” corporation for income tax purposes. In a “C” corporation income taxes are provided for the tax effects of transactions reported in the consolidated financial statements plus deferred income taxes related to the differences between financial statement and taxable income. | |||||||||||||||||||||||||
The primary differences between financial statement and taxable income for the Company are as follows: | |||||||||||||||||||||||||
· Expenses related to the issuance of equity instruments | |||||||||||||||||||||||||
· Use of the reserve method of accounting for bad debts | |||||||||||||||||||||||||
· Net operating loss carryforwards. | |||||||||||||||||||||||||
The deferred tax asset represents the future tax return consequences of utilizing these items. Deferred tax assets are reduced by a valuation reserve, when management is uncertain if the net deferred tax assets will ever be realized. | |||||||||||||||||||||||||
The Company applied the provisions of ASC 740-10-50, “Accounting for Uncertainty in Income Taxes”, which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our financial statements. The Company applied this guidance to all its tax positions, including tax positions taken and those expected to be taken, under the transition provision of the interpretation. For the years ended December 31, 2013 and 2012, the Company concluded that it had no material uncertain tax positions. | |||||||||||||||||||||||||
The Company classifies interest accrued on unrecognized tax benefits with interest expense. Penalties accrued on unrecognized tax benefits are classified with operating expenses. | |||||||||||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||||||||||
The FASB amended the Comprehensive Income topic of the ASC in February 2013 with ASU No. 2013-02. The amendment addresses reporting of amounts reclassified out of accumulated other comprehensive income. Specifically, the amendment does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendment does require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, in certain circumstances an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amendment was effective for the Company on a prospective basis for fiscal year 2013. This amendment did not have a material effect on the Company’s financial statements. | |||||||||||||||||||||||||
In February 2013, the FASB Issued ASU No. 2013-04, "Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date". ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for obligations within the scope of this ASU, which is effective January l, 2014. Upon adoption, we do not expect this ASU to impact our financial statements. | |||||||||||||||||||||||||
In July 2013, the FASB issued ASU 2013-11 , "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, " which among other things, require an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as denoted within the ASU. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We are currently evaluating the impact on our financial statements with respect to ASU 2013-11. | |||||||||||||||||||||||||
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact in the Company’s financial position, results of operations or cash flows. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Schedule of reconciliation of the components used to derive basic and diluted EPS | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(Denominator) | (Denominator) | ||||||||||||||||||||||||
Weighted- | Per | Weighted- | Per | ||||||||||||||||||||||
(Numerator) | Average | Share | (Numerator) | Average | Share | ||||||||||||||||||||
Net Loss | Shares | Amount | Net Income | Shares | Amount | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
Basic EPS | $ | (693,681 | ) | 18,987,702 | $ | (0.04 | ) | $ | 378,859 | 18,634,369 | $ | 0.02 | |||||||||||||
Effect of Dilutive Securities – Options and | |||||||||||||||||||||||||
Convertible Preferred Stock | - | - | - | - | 2,129,263 | - | |||||||||||||||||||
Diluted EPS | $ | (693,681 | ) | 18,987,702 | $ | (0.04 | ) | $ | 378,859 | 20,763,632 | $ | 0.02 | |||||||||||||
Retained_Interest_in_Purchased1
Retained Interest in Purchased Accounts Receivable (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Retained Interest In Purchased Accounts Receivable [Abstract] | ' | ||||||||
Schedule of retained interest in purchased accounts receivable | ' | ||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
Purchased invoices | $ | 6,085,940 | $ | 8,921,203 | |||||
Purchase order advances | 365,394 | 21,156 | |||||||
Reserve account | (1,481,996 | ) | (1,842,447 | ) | |||||
Allowance for uncollectible invoices | (3,000 | ) | (80,449 | ) | |||||
$ | 4,966,338 | $ | 7,019,463 | ||||||
Schedule of retained interest in purchased accounts receivable excluding allowance for uncollectible invoices | ' | ||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
Staffing | $ | 192,806 | $ | 185,557 | |||||
Transportation | 1,592,900 | 1,773,290 | |||||||
Service | 3,063,021 | 4,528,668 | |||||||
Manufacturing | 120,611 | 612,397 | |||||||
$ | 4,969,338 | $ | 7,099,912 | ||||||
Schedule of adjustments to allowance for uncollectible invoices | ' | ||||||||
For the years ending December 31, | |||||||||
2013 | 2012 | ||||||||
Balance - beginning of year | $ | 80,449 | $ | 17,500 | |||||
Provision for credit losses | 12,200 | 62,949 | |||||||
Write-offs | (89,649 | ) | - | ||||||
Balance - end of year | $ | 3,000 | $ | 80,449 | |||||
Schedule of purchased invoices and purchase order advances | ' | ||||||||
For the years ending December 31, | |||||||||
2013 | 2012 | ||||||||
Purchased invoices | $ | 83,653,644 | $ | 95,875,787 | |||||
Purchase order advances | 843,193 | 435,928 | |||||||
$ | 84,496,837 | $ | 96,311,715 | ||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property and Equipment [Abstract] | ' | |||||||||
Schedule of property and equipment | ' | |||||||||
Estimated | ||||||||||
Useful Lives | 31-Dec-13 | 31-Dec-12 | ||||||||
Furniture and fixtures | 2-5 years | $ | 64,945 | $ | 46,818 | |||||
Computers and software | 3-7 years | 251,525 | 187,505 | |||||||
316,470 | 234,323 | |||||||||
Less: accumulated depreciation | (258,391 | ) | (220,066 | ) | ||||||
$ | 58,079 | $ | 14,257 | |||||||
Capital_Structure_Tables
Capital Structure (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Capital Structure [Abstract] | ' | ||||||||
Schedule of conversions of convertible preferred stock and common stock | ' | ||||||||
Series 1 Convertible | Common | ||||||||
Preferred Stock | Stock | ||||||||
Balance, January 1, 2012 | 376,387 | 18,634,369 | |||||||
Preferred Stock Conversions | - | - | |||||||
Common Stock Issuances | - | - | |||||||
Balance, December 31, 2012 | 376,387 | 18,634,369 | |||||||
Preferred Stock Conversions | - | - | |||||||
Common Stock Issuances | - | 2,514,493 | |||||||
Balance, December 31, 2013 | 376,387 | 21,148,862 |
Employment_and_Stock_Option_Ag1
Employment and Stock Option Agreements (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Employment and Stock Option Agreements [Abstract] | ' | ||||||||||||||||||||||||
Schedule of information about stock options | ' | ||||||||||||||||||||||||
Exercise | Number | Remaining | Number | ||||||||||||||||||||||
Price | Outstanding | Contractual Life | Exercisable | ||||||||||||||||||||||
$ | 1.25 | 1,605,000 | 4 years | 1,605,000 | |||||||||||||||||||||
$ | 1 | 45,000 | 6 years | 33,750 | |||||||||||||||||||||
$ | 0.62 | 500,000 | 6 years | 500, 000 | |||||||||||||||||||||
$ | 0.17 | 500,000 | 9 years | 500,000 | |||||||||||||||||||||
$ | 0.25 | 180,000 | 10 years | 120,000 | |||||||||||||||||||||
$ | 0.35 | 100,000 | 10 years | 33,333 | |||||||||||||||||||||
$ | 0.3 | 60,000 | 10 years | 20,000 | |||||||||||||||||||||
$ | 0.45 | 25,000 | 10 years | 8,333 | |||||||||||||||||||||
3,015,000 | 2,820,416 | ||||||||||||||||||||||||
Schedule of option input into a Black Scholes option pricing model | ' | ||||||||||||||||||||||||
Exercise price | $ | .17 to $1.25 | |||||||||||||||||||||||
Term | 10 years | ||||||||||||||||||||||||
Volatility | 0.38 to 2.50 | ||||||||||||||||||||||||
Dividends | 0 | % | |||||||||||||||||||||||
Discount rate | 0.02% to 4.75% | ||||||||||||||||||||||||
Schedule of stock option activity and weighted average exercise price | ' | ||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Options | Price | Options | Price | Options | Price | ||||||||||||||||||||
Outstanding at beginning of year | 2,830,000 | 0.88 | 2,430,000 | 1.12 | 2,440,000 | 1.1 | |||||||||||||||||||
Granted | 195,000 | 0.35 | 680,000 | 0.19 | - | - | |||||||||||||||||||
Cancelled | (10,000 | ) | 0.45 | (280,000 | ) | 1.25 | (10,000 | ) | 1 | ||||||||||||||||
Exercised | - | - | - | - | - | - | |||||||||||||||||||
Outstanding at end of year | 3,015,000 | 0.85 | 2,830,000 | 0.88 | 2,430,000 | 1.12 | |||||||||||||||||||
Exercisable at end of year | 2,820,416 | 0.88 | 2,198,750 | 1.08 | 2,401,250 | 1.12 | |||||||||||||||||||
Warrants_Tables
Warrants (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Warrants [Abstract] | ' | |||||||||||
Schedule of warrants, valuation assumptions | ' | |||||||||||
Exercise price | $ | 1.1 | ||||||||||
Term | 7 years | |||||||||||
Volatility | 40% | |||||||||||
Dividends | 0 | % | ||||||||||
Discount rate | 0.05 | % | ||||||||||
Schedule of stock warrants | ' | |||||||||||
Weighted Average | ||||||||||||
Exercise | Number | Remaining | Number | |||||||||
Price | Outstanding | Contractual Life | Exercisable | |||||||||
$ | 1.1 | 1,342,500 | 1 Month | 1,342,500 | ||||||||
$ | 1 | 2,000,004 | 7 years | 2,000,004 |
Concentrations_Tables
Concentrations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Concentrations [Abstract] | ' | ||||||||
Schedule of revenue from different industries | ' | ||||||||
Industry | For the year ending December 31, | ||||||||
2013 | 2012 | ||||||||
Staffing | $ | 80,780 | $ | 69,773 | |||||
Transportation | 627,095 | 782,058 | |||||||
Service | 1,365,379 | 1,426,583 | |||||||
Other | 20,357 | 105,483 | |||||||
Manufacturing | 173,844 | - | |||||||
Apparel | 96,673 | 142,729 | |||||||
$ | 2,364,128 | $ | 2,526,626 | ||||||
Schedule of revenue from different client | ' | ||||||||
Percentage of Accounts Receivable | Percentage of Revenues for | ||||||||
Portfolio | the Twelve Months | ||||||||
As of | Ended | ||||||||
Entity | 31-Dec-13 | 31-Dec-13 | |||||||
Trucking company in MI | 8.7 | % | 4.3 | % | |||||
Cable trenching utility in FL | 6.4 | % | 3.4 | % | |||||
Importer in MI | 8.4 | % | 3 | % | |||||
Aerospace servicer in NM | 6.2 | % | 3.7 | % | |||||
Trucking Company in VA | 6.4 | % | 1.9 | % | |||||
36.1 | % | 16.3 | % |
Supplemental_Disclosures_of_Ca1
Supplemental Disclosures of Cash Flow (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Supplemental Disclosures of Cash Flow [Abstract] | ' | ||||||||
Schedule of interest paid in cash | ' | ||||||||
For the year ending December 31, | |||||||||
2013 | 2012 | ||||||||
To a financial institution | $ | 369,487 | $ | 446,922 | |||||
To a related party | - | 15,123 | |||||||
Total | $ | 369,487 | $ | 462,045 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
Schedule of total provision for income taxes from continuing operations | ' | ||||||||
2013 | 2012 | ||||||||
Federal tax expense at statutory rate | $ | (235,000 | ) | $ | 146,000 | ||||
State tax expense | (10,000 | ) | 15,000 | ||||||
Permanent items | 5,000 | − | |||||||
Change in valuation allowance | (240,000 | ) | (161,000 | ) | |||||
Income taxes | $ | - | $ | - | |||||
Schedule of deferred assets and liabilities | ' | ||||||||
2013 | 2012 | ||||||||
Equity based compensation | $ | 102,000 | $ | 91,000 | |||||
Allowance for doubtful accounts | 1,000 | 31,000 | |||||||
Net operating loss carry-forwards | 1,660,000 | 1,385,000 | |||||||
Gross deferred tax assets | 1,763,000 | 1,507,000 | |||||||
Fixed assets and intangible basis difference | (19,000 | ) | (3,000 | ) | |||||
1,744,000 | 1,504,000 | ||||||||
Valuation allowance | (1,744,000 | ) | (1,504,000 | ) | |||||
Income taxes | $ | - | $ | - | |||||
Schedule of net operating loss carryforwards | ' | ||||||||
Amount | Expiration | ||||||||
Federal | $ | 4,313,000 | 2022 - 2025 | ||||||
State | $ | 1,669,000 | 2022 - 2025 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment Information [Abstract] | ' | ||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Assets: | |||||||||
FlexShopper | $ | 718,896 | $ | − | |||||
Anchor | 5,761,499 | 7,919,985 | |||||||
Total | $ | 6,480,395 | $ | 7,919,985 | |||||
Revenues: | |||||||||
FlexShopper | $ | 119 | $ | − | |||||
Anchor | 2,364,009 | 2,526,626 | |||||||
Total | $ | 2,364,128 | $ | 2,526,626 | |||||
Net (loss) income: | |||||||||
FlexShopper | $ | (655,474 | ) | $ | − | ||||
Anchor | (38,207 | ) | 378,859 | ||||||
Total | $ | (693,681 | ) | $ | 378,859 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Schedule of Future Minimum Lease Payments | ' | ||||
2014 | $ | 86,900 | |||
2015 | 117,600 | ||||
2016 | 122,000 | ||||
2017 | 126,000 | ||||
2018 | 129,600 | ||||
Thereafter | 77,200 | ||||
$ | 659,300 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Reconciliation of components used to derive basic and diluted EPS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of Significant Accounting Policies [Abstract] | ' | ' |
(Numerator) Net Income (Loss), Basic EPS | ($693,681) | $378,859 |
(Numerator) Net Income (Loss), Effect of Dilutive Securities - Options and Convertible Preferred Stock | ' | ' |
(Numerator) Net Income (Loss), Diluted EPS | ($693,681) | $378,859 |
(Denominator) Weighted- Average Shares, Basic EPS | 18,987,702 | 18,634,369 |
(Denominator) Weighted- Average Shares, Effect of Dilutive Securities - Options and Convertible Preferred Stock | ' | 2,129,263 |
(Denominator) Weighted- Average Shares, Diluted EPS | 18,987,702 | 20,763,632 |
Per Share Amount, Basic EPS | ($0.04) | $0.02 |
Per Share Amount, Effect of Dilutive Securities - Options and Convertible Preferred Stock | ' | ' |
Per Share Amount, Diluted EPS | ($0.04) | $0.02 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary of Significant Accounting Policies [Abstract] | ' | ' | ' |
Maximum percentage of advances on purchase order | 100.00% | ' | ' |
Uncollectible retained interest in purchased accounts receivable | $3,000 | $80,449 | $17,500 |
Total advertising costs | $282,000 | $267,000 | ' |
Legal Useful life | '20 years | ' | ' |
Amortization method | ' | ' | ' |
Straight line method |
Retained_Interest_in_Purchased2
Retained Interest in Purchased Accounts Receivable - Retained interest in purchased accounts receivable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Retained Interest In Purchased Accounts Receivable [Abstract] | ' | ' | ' |
Purchased invoices | $6,085,940 | $8,921,203 | ' |
Purchase order advances | 365,394 | 21,156 | ' |
Reserve account | -1,481,996 | -1,842,447 | ' |
Allowance for uncollectible invoices | -3,000 | -80,449 | -17,500 |
Retained interest in purchased accounts receivable, net | $4,966,338 | $7,019,463 | ' |
Retained_Interest_in_Purchased3
Retained Interest in Purchased Accounts Receivable - Retained interest in purchased accounts receivable excluding allowance for uncollectible invoices (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Retained interest in purchased accounts receivable | $4,969,338 | $7,099,912 |
Staffing | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Retained interest in purchased accounts receivable | 192,806 | 185,557 |
Transportation | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Retained interest in purchased accounts receivable | 1,592,900 | 1,773,290 |
Service | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Retained interest in purchased accounts receivable | 3,063,021 | 4,528,668 |
Manufacturing | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Retained interest in purchased accounts receivable | $120,611 | $612,397 |
Retained_Interest_in_Purchased4
Retained Interest in Purchased Accounts Receivable - Summary of Adjustments to allowance for uncollectible invoices (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Retained Interest In Purchased Accounts Receivable [Abstract] | ' | ' |
Balance - beginning of year | $80,449 | $17,500 |
Provision for credit losses | ' | 62,949 |
Write-offs | -89,649 | ' |
Balance - end of year | $3,000 | $80,449 |
Retained_Interest_in_Purchased5
Retained Interest in Purchased Accounts Receivable - Summary of purchased invoices and purchase order advances (Details 3) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Retained Interest In Purchased Accounts Receivable [Abstract] | ' | ' |
Purchased invoices | $83,653,644 | $95,875,787 |
Purchase order advances | 843,193 | 435,928 |
Purchased invoices and purchase order advances, Total | $84,496,837 | $96,311,715 |
Due_from_Client_Details
Due from Client (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Due From Client [Abstract] | ' |
Amount owed from a client | $250,000 |
Total funding employed | 1,453,500 |
Bankruptcy claims, amount settled | 1,153,500 |
Bankruptcy claims, final balance | 300,000 |
Bankruptcy claims, installment amount | $25,000 |
Bankruptcy Claims Installment Payment Terms | 'The final balance of $300,000 is to be paid to Anchor in twelve monthly installments of $25,000 beginning November 8, 2013. |
Property_and_Equipment_Summary
Property and Equipment - Summary of property and equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Furniture and Fixtures | Furniture and Fixtures | Furniture and Fixtures | Furniture and Fixtures | Computers and Software | Computers and Software | Computers and Software | Computers and Software | |||
Maximum | Minimum | Maximum | Minimum | |||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, Gross | $316,470 | $234,323 | $64,945 | $46,818 | ' | ' | $251,525 | $187,505 | ' | ' |
Less: accumulated depreciation | -258,391 | -220,066 | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, net | $58,079 | $14,257 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | ' | ' | '5 years | '2 years | ' | ' | '7 years | '3 years |
Property_and_Equipment_Details
Property and Equipment (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property and Equipment [Abstract] | ' | ' |
Depreciation | $38,326 | $19,804 |
Due_to_Financial_Institution_D
Due to Financial Institution (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2011 |
Commercial Bank | |||
Line of Credit | |||
Line of Credit Facility [Line Items] | ' | ' | ' |
Maximum borrowed credit facility | ' | ' | $10,000,000 |
Percentage of advance under borrowed facility | ' | ' | 80.00% |
Description of variable rate basis | ' | ' | '90 Day Libor Rate plus 6.25 |
Spread on variable rate | ' | ' | 6.25% |
Ratio of debt to tangible net worth | ' | ' | 'not higher than four to one (4:1) |
Notice period to bank | ' | ' | '60 days |
Due to financial institution | $3,240,942 | $4,977,763 | ' |
Capital_Structure_Summary_of_c
Capital Structure - Summary of changes in series 1 convertible preferred stock and common stock shares (Details) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | |
Series 1 Convertible Preferred Stock | ' | ' | ' | ' |
Balance, beginning (in shares) | ' | 376,387 | 376,387 | 376,387 |
Preferred stock conversions (in shares) | 2,000,000 | ' | ' | ' |
Common stock issuances (in shares) | ' | ' | ' | ' |
Balance, ending (in shares) | ' | 376,387 | 376,387 | 376,387 |
Common Stock | ' | ' | ' | ' |
Balance, beginning (in shares) | ' | 18,634,369 | 18,634,369 | 18,634,369 |
Preferred stock conversions (in shares) | ' | ' | ' | ' |
Common stock issuances (in shares) | ' | 2,514,493 | ' | ' |
Balance, ending (in shares) | ' | 21,148,862 | 18,634,369 | 18,634,369 |
Capital_Structure_Details_Text
Capital Structure (Details Textual) (USD $) | 3 Months Ended | 1 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Jan. 31, 2007 | Dec. 31, 2013 | |
Series 1 Convertible Preferred Stock | Series 1 Convertible Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $0.00 | ' | ' |
Preferred stock, shares authorized (in shares) | 10,000,000 | ' | ' |
Preferred stock conversion into Series 1 Convertible Preferred Stock (in shares) | ' | 2,000,000 | ' |
Preferred stock conversion ratio | ' | ' | '5.1 shares |
Dividend rate on Series 1 Convertible Preferred Stock | ' | ' | 8.00% |
Common stock, shares authorized (in shares) | 65,000,000 | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | ' | ' |
Restricted common stock, value | $1,000,000 | ' | ' |
Restricted common stock, shares | 2,500,000 | ' | ' |
Restricted common stock, per share | $0.40 | ' | ' |
Shares issued to consultants for services | 14,493 | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details Textual) (USD $) | 12 Months Ended | 0 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Jun. 05, 2012 | Mar. 19, 2014 | Jun. 05, 2012 | Mar. 19, 2014 | Jun. 05, 2012 | Mar. 19, 2014 | |
Promissory_Note | Line Of Credit Promissory Note | Morry Rubin | Morry Rubin | Major Shareholder | Major Shareholder | Morry Rubin and Major Shareholders | Morry Rubin and Major Shareholders | |
Line Of Credit Promissory Note | Line Of Credit Promissory Note | Line Of Credit Promissory Note | Line Of Credit Promissory Note | Line Of Credit Promissory Note | Line Of Credit Promissory Note | |||
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of promissory notes | 2 | ' | ' | ' | ' | ' | ' | ' |
Promissory notes, face amount | ' | ' | $200,000 | $500,000 | $200,000 | $500,000 | $400,000 | $1,000,000 |
Term of promissory note | ' | ' | ' | ' | ' | ' | '90 days | ' |
Interest rate of promissory note | ' | ' | ' | ' | ' | ' | 15.00% | 10.00% |
Rediscount credit facility with a commercial bank | ' | ' | ' | ' | ' | ' | 10,000,000 | ' |
Interest paid | ' | $15,123 | ' | ' | ' | ' | ' | ' |
Related_Party_Transactions_Det1
Related Party Transactions (Details Textual 1) (Stock Options, USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
Mar. 20, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 20, 2012 | Mar. 20, 2012 | Jun. 30, 2013 | Mar. 20, 2012 | Jun. 30, 2012 | |
Morry Rubin | B Bernstein | Officers and Directors | Officers and Directors | Paul Healy | |||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of options | ' | ' | ' | ' | '10 years | '10 years | '10 years | '10 years | '10 years |
Number of option granted | ' | 195,000 | 680,000 | ' | 250,000 | 250,000 | 100,000 | 500,000 | 180,000 |
Preferred stock conversion ratio | '5.1 shares | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period of option | ' | ' | ' | ' | '10 years | '10 years | ' | ' | ' |
Shares exercisable (in dollars per share) | ' | $0.88 | $1.08 | $1.12 | ' | ' | $0.35 | ' | $0.25 |
Employment_and_Stock_Option_Ag2
Employment and Stock Option Agreements - Summary of stock option (Details) (Stock Options, USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Exercise Price $ 1.25 | Exercise Price $ 1.00 | Exercise Price $ 1.00 | Exercise Price $ 0.62 | Exercise Price $ 0.17 | Exercise Price $ 0.25 | Exercise Price $ 0.35 | Exercise Price $ 0.30 | Exercise Price $ 0.45 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise Price (in dollars per share) | $0.85 | $0.88 | $1.12 | $1.10 | $1.25 | $1 | $1 | $0.62 | $0.17 | $0.25 | $0.35 | $0.30 | $0.45 |
Number Outstanding | 3,015,000 | 2,830,000 | 2,430,000 | 2,440,000 | 1,605,000 | 45,000 | 45,000 | 500,000 | 500,000 | 180,000 | 100,000 | 60,000 | 25,000 |
Remaining Contractual Life | ' | ' | ' | ' | '4 years | '6 years | ' | '6 years | '9 years | '10 years | '10 years | '10 years | '10 years |
Number Exercisable | 2,820,416 | 2,198,750 | 2,401,250 | ' | 1,605,000 | 33,750 | ' | 500,000 | 500,000 | 120,000 | 33,333 | 20,000 | 8,333 |
Employment_and_Stock_Option_Ag3
Employment and Stock Option Agreements - Summary of fair value option award on date of grant (Details 1) (Stock Options, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Term | '10 years |
Dividends | 0.00% |
Minimum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Exercise price (in dollars per share) | 0.17 |
Volatility | 0.38% |
Discount rate | 0.02% |
Maximum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Exercise price (in dollars per share) | 1.25 |
Volatility | 2.50% |
Discount rate | 4.75% |
Employment_and_Stock_Option_Ag4
Employment and Stock Option Agreements- Summary of stock option activity and weighted average exercise price (Details 2) (Stock Options, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Outstanding at beginning of year | 2,830,000 | 2,430,000 | 2,440,000 |
Granted | 195,000 | 680,000 | ' |
Cancelled | -10,000 | -280,000 | -10,000 |
Exercised | ' | ' | ' |
Outstanding at end of year | 3,015,000 | 2,830,000 | 2,430,000 |
Exercisable at end of year | 2,820,416 | 2,198,750 | 2,401,250 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Outstanding at beginning of year | $0.88 | $1.12 | $1.10 |
Granted | $0.35 | $0.19 | ' |
Canceled | $0.45 | $1.25 | $1 |
Exercised | ' | ' | ' |
Outstanding at end of year | $0.85 | $0.88 | $1.12 |
Exercisable at end of year | $0.88 | $1.08 | $1.12 |
Employment_and_Stock_Option_Ag5
Employment and Stock Option Agreements (Details Textual) (2007 Omnibus Equity Compensation Plan) | Oct. 31, 2009 | Jan. 31, 2007 |
2007 Omnibus Equity Compensation Plan | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Common shares authorized for issuance (in shares) | 4,200,000 | 2,100,000 |
Employment_and_Stock_Option_Ag6
Employment and Stock Option Agreements (Details Textual 1) (Stock Options, USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 08, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
2007 Omnibus Equity Compensation Plan | 2007 Omnibus Equity Compensation Plan | 2007 Omnibus Equity Compensation Plan | ||||
M Rubins Employment Agreement | M Rubins Employment Agreement | B Bernstein Employment Agreement | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Officers' annual salary | ' | ' | ' | $125,000 | $1 | $240,000 |
Bonus equivalent to annual net income percentage | ' | ' | ' | ' | ' | 5.00% |
Net income before tax threshold limit for salary revision | ' | ' | ' | ' | ' | 200,000 |
Monthly automobile allowance | ' | ' | ' | ' | $1,500 | $1,000 |
Term of options | ' | ' | ' | ' | '10 years | '10 years |
Option to purchase common stock | ' | ' | ' | ' | 650,000 | 950,000 |
Shares exercisable (in dollars per share) | $0.88 | $1.08 | $1.12 | ' | $1.25 | $1.25 |
Option award method used | ' | ' | ' | ' | ' | 'Black Scholes option pricing model |
Employment_and_Stock_Option_Ag7
Employment and Stock Option Agreements (Details Textual 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Employment and Stock Option Agreements [Abstract] | ' | ' |
Fair value amounts recorded for option | $49,805 | $10,229 |
Warrants_Summary_of_warrants_D
Warrants - Summary of warrants (Details) (Warrant, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Warrant | ' |
Class of Warrant or Right [Line Items] | ' |
Exercise price (in dollars per share) | $1.10 |
Term | '7 years |
Volatility | 40.00% |
Dividends | 0.00% |
Discount rate | 0.05% |
Warrants_Summary_of_informatio
Warrants - Summary of information about stock warrants (Details 1) | Dec. 07, 2009 | Dec. 31, 2013 | Dec. 31, 2013 |
Warrant | Warrant | ||
Exercise Price $ 1.10 | Exercise Price $ 1.00 | ||
Class of Warrant or Right [Line Items] | ' | ' | ' |
Exercise price (in dollars per share) | 1 | 1.1 | 1 |
Number Outstanding | ' | 1,342,500 | 2,000,004 |
Weighted Average Remaining Contractual Life | ' | '1 month | '7 years |
Number Exercisable | ' | 1,342,500 | 2,000,004 |
Warrants_Details_Textual
Warrants (Details Textual) (USD $) | Dec. 07, 2009 | Dec. 31, 2013 | Mar. 31, 2007 | Mar. 31, 2007 | Mar. 31, 2007 |
Warrant | Warrant | Warrant | Warrant | ||
Warrants Extended By 31 January 2013 | Warrants Extended By 31 January 2018 | ||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' |
Number of common stock shares to purchase warrant | 2,000,004 | ' | 1,342,500 | ' | ' |
Exercise price (in dollars per share) | 1 | 0.023 | ' | 1.35 | 1.1 |
Compensation expenses for issuance of warrants | ' | $1,916 | ' | ' | ' |
Warrants_Details_Textual_1
Warrants (Details Textual 1) (USD $) | 0 Months Ended |
Dec. 07, 2009 | |
Warrants [Abstract] | ' |
Proceeds from sale of common stock shares | $500,002 |
Number of common stock shares sold | 500,002 |
Term of warrant | '10 years |
Number of common stock shares to purchase warrant | 2,000,004 |
Exercise price (in dollars per share) | 1 |
Concentrations_Summary_of_reve
Concentrations -Summary of revenue from different industries (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenue By Different Industries [Line Items] | ' | ' |
Revenues by industries | $2,364,128 | $2,526,626 |
Staffing | ' | ' |
Revenue By Different Industries [Line Items] | ' | ' |
Revenues by industries | 80,780 | 69,773 |
Transportation | ' | ' |
Revenue By Different Industries [Line Items] | ' | ' |
Revenues by industries | 627,095 | 782,058 |
Service | ' | ' |
Revenue By Different Industries [Line Items] | ' | ' |
Revenues by industries | 1,365,379 | 1,426,583 |
Other | ' | ' |
Revenue By Different Industries [Line Items] | ' | ' |
Revenues by industries | 20,357 | 105,483 |
Manufacturing | ' | ' |
Revenue By Different Industries [Line Items] | ' | ' |
Revenues by industries | 173,844 | ' |
Apparel | ' | ' |
Revenue By Different Industries [Line Items] | ' | ' |
Revenues by industries | $96,673 | $142,729 |
Concentrations_Summary_of_clie
Concentrations- Summary of client accounts (Details 1) (Customer Concentration Risk) | 12 Months Ended |
Dec. 31, 2013 | |
Accounts Receivable | ' |
Concentration Risk [Line Items] | ' |
Percentage of revenue from major customer | 36.10% |
Accounts Receivable | Trucking Company | MI | ' |
Concentration Risk [Line Items] | ' |
Percentage of revenue from major customer | 8.70% |
Accounts Receivable | Cable trenching utility | FL | ' |
Concentration Risk [Line Items] | ' |
Percentage of revenue from major customer | 6.40% |
Accounts Receivable | Importer | MI | ' |
Concentration Risk [Line Items] | ' |
Percentage of revenue from major customer | 8.40% |
Accounts Receivable | Aerospace servicer | NM | ' |
Concentration Risk [Line Items] | ' |
Percentage of revenue from major customer | 6.20% |
Accounts Receivable | Trucking Company | VA | ' |
Concentration Risk [Line Items] | ' |
Percentage of revenue from major customer | 6.40% |
Revenue | ' |
Concentration Risk [Line Items] | ' |
Percentage of revenue from major customer | 16.30% |
Revenue | Trucking Company | MI | ' |
Concentration Risk [Line Items] | ' |
Percentage of revenue from major customer | 4.30% |
Revenue | Cable trenching utility | FL | ' |
Concentration Risk [Line Items] | ' |
Percentage of revenue from major customer | 3.40% |
Revenue | Importer | MI | ' |
Concentration Risk [Line Items] | ' |
Percentage of revenue from major customer | 3.00% |
Revenue | Aerospace servicer | NM | ' |
Concentration Risk [Line Items] | ' |
Percentage of revenue from major customer | 3.70% |
Revenue | Trucking Company | VA | ' |
Concentration Risk [Line Items] | ' |
Percentage of revenue from major customer | 1.90% |
Concentrations_Details_Textual
Concentrations (Details Textual) (Customer Concentration Risk) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Clients | ||
Concentration Risk [Line Items] | ' | ' |
Percentage of revenue from major customer | '10% or more | '10% or more |
Percentage of revenue from major customer, description | 'The Company did not have any major customers for the years ending December 31, 2013 and 2012 that represented 10% or more of its revenues. | 'The Company did not have any major customers for the years ending December 31, 2013 and 2012 that represented 10% or more of its revenues. |
Number of clients | 5 | ' |
Accounts Receivable | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of revenue from major customer | 36.10% | ' |
Revenue | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of revenue from major customer | 16.30% | ' |
Concentrations_Details_Textual1
Concentrations (Details Textual 1) (USD $) | Dec. 31, 2013 |
Concentrations [Abstract] | ' |
Depository account maximum amount covered by FDIC | $250,000 |
Cash, deposit in excess of the insured limits | $546,000 |
Supplemental_Disclosures_of_Ca2
Supplemental Disclosures of Cash Flow - Summary of cash paid for interest (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Supplemental Disclosures of Cash Flow [Abstract] | ' | ' |
To a financial institution | $369,487 | $446,922 |
To a related party | ' | 15,123 |
Total | $369,487 | $462,045 |
Income_Taxes_Summary_of_total_
Income Taxes - Summary of total provision for income taxes from continuing operations (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Abstract] | ' | ' |
Federal tax expense at statutory rate | ($235,000) | $146,000 |
State tax expense | -10,000 | 15,000 |
Permanent items | 5,000 | ' |
Change in valuation allowance | -240,000 | -161,000 |
Income taxes | ' | ' |
Income_Taxes_Summary_of_deferr
Income Taxes - Summary of deferred assets and liabilities (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | ' | ' |
Equity based compensation | $102,000 | $91,000 |
Allowance for doubtful accounts | 1,000 | 31,000 |
Net operating loss carry-forwards | 1,660,000 | 1,385,000 |
Gross deferred tax assets | 1,763,000 | 1,507,000 |
Fixed assets and intangible basis difference | -19,000 | -3,000 |
Deferred tax assets, net of valuation allowance | 1,744,000 | 1,504,000 |
Valuation allowance | -1,744,000 | -1,504,000 |
Income taxes | ' | ' |
Income_Taxes_Summary_of_net_op
Income Taxes- Summary of net operating loss carryforwards available to offset future taxable income (Details 2) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Federal | ' |
Operating Loss Carryforwards [Line Items] | ' |
Future taxable income amount | $4,313,000 |
Future taxable income expiration | '2022 - 2025 |
State | ' |
Operating Loss Carryforwards [Line Items] | ' |
Future taxable income amount | $1,669,000 |
Future taxable income expiration | '2022 - 2025 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Abstract] | ' | ' |
Statutory federal tax rate | 34.00% | ' |
Gross deferred tax assets | $1,763,000 | $1,507,000 |
Valuation allowance | $1,744,000 | $1,504,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | ' | ' |
Net (loss) income: | ($693,681) | $378,859 |
Assets: | 6,480,395 | 7,919,985 |
Revenues: | 2,364,128 | 2,526,626 |
Flexshopper | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net (loss) income: | -655,474 | ' |
Assets: | 718,896 | ' |
Revenues: | 119 | ' |
Anchor | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net (loss) income: | -38,207 | 378,859 |
Assets: | 5,761,499 | 7,919,985 |
Revenues: | $2,364,009 | $2,526,626 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2013 |
Commitments and Contingencies [Abstract] | ' |
2014 | $86,900 |
2015 | 117,600 |
2016 | 122,000 |
2017 | 126,000 |
2018 | 129,600 |
Thereafter | 77,200 |
Total | $659,300 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
Oct. 22, 2011 | Oct. 22, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Aug. 01, 2013 | Nov. 30, 2012 | Nov. 30, 2009 | Aug. 01, 2013 | |
Charlotte | Boca Raton | Boca Raton | Boca Raton | Flexshopper | |||||
Lease | |||||||||
Property Subject to or Available for Operating Lease [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of leases | ' | ' | ' | ' | 2 | ' | ' | ' | ' |
Monthly rent | ' | ' | ' | ' | $2,340 | $6,800 | $1,413 | ' | ' |
Term of lease | ' | ' | ' | ' | ' | '39 months | ' | '24 months | ' |
Additional lease renewal term | ' | ' | ' | ' | ' | ' | '2 years | ' | ' |
Rental expense | ' | ' | 58,921 | 46,571 | ' | ' | ' | ' | 15,800 |
Future minimum lease payments in 2013 | ' | ' | 86,900 | ' | ' | ' | ' | ' | ' |
Description of leasing arrangements | ' | ' | 'This lease agreement was amended in January 2014 to reflect a 63 month term for a larger suite in an adjoining building. | ' | ' | ' | ' | ' | ' |
Principal amount, sought value | $485,000 | $485,000 | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 12 Months Ended | ||||||
Dec. 31, 2013 | Jun. 05, 2012 | Jun. 05, 2012 | Jun. 05, 2012 | Mar. 19, 2014 | Mar. 19, 2014 | Mar. 19, 2014 | |
Promissory_Note | Line Of Credit Promissory Note [Member] | Line Of Credit Promissory Note [Member] | Line Of Credit Promissory Note [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
Morry Rubin [Member] | Major Shareholder [Member] | Morry Rubin and Major Shareholders [Member] | Line Of Credit Promissory Note [Member] | Line Of Credit Promissory Note [Member] | Line Of Credit Promissory Note [Member] | ||
Morry Rubin [Member] | Major Shareholder [Member] | Morry Rubin and Major Shareholders [Member] | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of promissory notes | 2 | ' | ' | ' | ' | ' | ' |
Promissory notes, face amount | ' | $200,000 | $200,000 | $400,000 | $500,000 | $500,000 | $1,000,000 |
Interest rate of promissory note | ' | ' | ' | 15.00% | ' | ' | 10.00% |