Document and Entity Information
Document and Entity Information - Jun. 30, 2015 - shares | Total |
Document and Entity Information | |
Entity Registrant Name | SPINDLE, INC. |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2015 |
Amendment Flag | false |
Entity Central Index Key | 1,403,802 |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 50,808,450 |
Entity Filer Category | Smaller Reporting Company |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | spdl |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 270,371 | $ 169,807 |
Restricted cash | 1,500 | 20,000 |
Accounts receivable, net | 66,545 | 82,393 |
Prepaid Expenses and current deposits | 338,086 | 87,428 |
Inventory | 107,004 | 100,647 |
Total current assets | 783,506 | 460,275 |
Fixed assets, net | 19,533 | 22,145 |
Other assets | ||
License agreements, net | 690,000 | |
Trademarks, net | 920,000 | |
Domain names, net | 67,774 | 73,113 |
Capitalized software costs, net | 1,592,828 | 1,600,623 |
Residual contract revenue, net | 441,970 | |
Deposits | 2,882 | 3,382 |
Goodwill, net | 5,306,205 | 5,306,205 |
Total other assets | 8,579,689 | 7,425,293 |
Total assets | 9,382,728 | 7,907,713 |
Current liabilities | ||
Accounts payable and accrued liabilities | 632,339 | 578,610 |
Advances | 215,000 | 215,000 |
Deferred revenue | 3,291 | |
Accrued liabilities - related party | 636,505 | 681,655 |
Notes payable - related party, net | 172,162 | 172,108 |
Total current liabilities | 1,659,297 | 1,647,373 |
Total liabilities | $ 1,659,297 | $ 1,647,373 |
Stockholders' equity | ||
Preferred stock, value | ||
Common stock, value | $ 50,808 | $ 42,069 |
Common stock payable | 158 | 108 |
Additional paid-in capital | 24,309,811 | 21,470,580 |
Additional paid-in capital - stock warrants | 103,500 | |
Accumulated deficit | (16,740,846) | (15,252,417) |
Total stockholders' equity | 7,723,431 | 6,260,340 |
Total liabilities and stockholders' equity | $ 9,382,728 | $ 7,907,713 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Balance Sheets | ||
Allowance, accounts receivable | $ 11,250 | $ 11,250 |
Accumulated depreciation, fixed assets | 12,313 | 10,750 |
Accumulated amortization, domain names | 17,226 | 11,887 |
Accumulated amortization, software development | 802,293 | 582,017 |
Accumulated amortization, residual contract revenue | 147,324 | |
Accumulated impairment losses, goodwill | $ 669,993 | 669,993 |
Debt discount, notes payable | $ 55 | |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 50,808,450 | 42,068,773 |
Common stock, shares outstanding | 50,808,450 | 42,068,773 |
Common shares payable, unissued | 157,853 | 107,853 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement | ||||
Sales income | $ 128,233 | $ 177,947 | $ 293,281 | $ 475,872 |
Cost of sales | 46,441 | 96,937 | 93,923 | 193,005 |
Gross profit | 81,792 | 81,010 | 199,358 | 282,867 |
Expenses: | ||||
Depreciation and amortization | 141,653 | 145,172 | 289,612 | 284,515 |
Promotional and marketing | (1,048) | 38,774 | 25,457 | 50,741 |
Consulting | 76,287 | 1,010,887 | 160,580 | 1,240,386 |
Salaries and wages | 379,123 | 1,286,736 | 1,140,553 | 1,733,301 |
Director fees | 37,500 | 45,000 | 82,500 | 85,000 |
Professional fees | 91,178 | 613,967 | 241,897 | 790,457 |
General and administrative expenses | 70,784 | 239,408 | 119,372 | 425,085 |
Total operating expenses | 795,477 | 3,379,944 | 2,059,971 | 4,609,485 |
Net operating income (loss) | (713,685) | (3,298,934) | (1,860,613) | (4,326,618) |
Other income (expense) | ||||
Gain on sale of assets | 373,154 | 373,154 | ||
Interest expense, net | (354) | (916) | ||
Interest expense - related party | (27) | (559) | (54) | (1,268) |
Total other income (expense) | 372,773 | (559) | 372,184 | (1,268) |
Loss before provision for income taxes | $ (340,912) | $ (3,299,493) | $ (1,488,429) | $ (4,327,886) |
Provision for income taxes | ||||
Net (loss) | $ (340,912) | $ (3,299,493) | $ (1,488,429) | $ (4,327,886) |
Weighted average number of common shares outstanding - basic and diluted | 44,091,488 | 38,022,295 | 43,138,757 | 37,051,453 |
Net (loss) per share - basic and diluted | $ (0.01) | $ (0.09) | $ (0.03) | $ (0.12) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities | ||
Net (loss) | $ (1,488,429) | $ (4,327,886) |
Adjustments to reconcile net loss to net cash (used) by operating activities: | ||
Shares issued for services | 132,771 | 1,416,845 |
Shares issued for officer compensation | 20,250 | 448,850 |
Depreciation and amortization | 289,612 | 284,515 |
Gain on sale of assets | (373,154) | |
Amortization of debt discounts - related party | 55 | 7,830 |
Sharebased compensation expense | 928,771 | 389,584 |
Decrease in allowance for doubtful accounts | (1,717) | |
Changes in operating assets and liabilities: | ||
(Increase) in accounts receivable | 15,848 | 85,529 |
(Increase) decrease in prepaid expenses | (215,929) | 85,473 |
(Increase) in inventory | (6,357) | (44,095) |
(Increase) decrease in deposits and other assets | 19,000 | 1,842 |
Increase in accounts payable and accrued expenses | 103,727 | 96,794 |
(Decrease) increase in deferred revenue | 3,291 | |
(Decrease) increase in expenses - related party | (300,150) | 94,999 |
(Decrease) increase in accrued interest - related party | (5,019) | |
Net cash (used in) operating activities | (870,695) | (1,466,456) |
Cash flows from investing activities | ||
Acquisition of intellectual property | 501,367 | |
Sale of fixed assets | 753,740 | |
Additions to capitalized software development | 212,481 | 288,499 |
Net cash provided by (used in) investing activities | 541,259 | (789,866) |
Cash flows from financing activities | ||
Proceeds for advances | 255,000 | |
Proceeds for notes payable - related party | 45,000 | |
Proceeds from sale of common stock | 175,000 | 1,552,500 |
Net cash provided by (used in) financing activities | 430,000 | 1,597,500 |
Net increase (decrease) in cash | 100,564 | (658,822) |
Cash - beginning of the period | 169,807 | 700,323 |
Cash - ending of the period | 270,371 | 41,501 |
Supplemental disclosures: | ||
Interest paid | 916 | |
Non-cash transactions: | ||
Shares issued for services | 132,771 | 1,416,845 |
Shares issued for officer compensation | 20,250 | 448,850 |
Shares issued for prepaid expenses | 34,729 | |
Shares issued for accounts payable | 50,000 | 165,979 |
Shares issued for acquisitions | 3,004,861 | |
Options issued for share based compensation expense | 559,632 | $ 389,584 |
Shares issued for share based compensation expense | 369,139 | |
Shares issued for trademark and licenses | $ 1,610,000 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Basis of Presentation | NOTE 1 - BASIS OF PRESENTATION The interim condensed consolidated financial statements included herein, presented in accordance with accounting principles generally accepted in the United States of America (GAAP), have been prepared by the Company, without audit, pursuant to the rules and regulations of the Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim condensed consolidated financial statements be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2014 and notes thereto included in the Company's Annual Report on Form 10-K. The Company follows the same accounting policies in the preparation of interim reports. Results of operations for the interim periods are not indicative of annual results. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Summary of Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and cash equivalents For purpose of the statements of cash flows, the Company considers cash and cash equivalents to include all stable, highly liquid investments with maturities of three months or less. Restricted cash The Company maintains a restricted cash balance totaling $1,500 as part of its operating requirements in a non-interest-bearing account that currently does not exceed federally insured limits. Concentration of credit risk The Company primarily transacts its business with one financial institution. The amount on deposit in that one institution may from time to time exceed the federally-insured limit. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income taxes The Company accounts for its income taxes under the provisions of Accounting Standards Codification (ASC) Topic 740, Income Taxes. The method of accounting for income taxes under ASC 740 is an asset and liability method. The asset and liability method requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between tax bases and financial reporting bases of other assets and liabilities. Revenue recognition Revenue is derived on a per message/notification basis through the Companys patented technologies and a modular, adaptable platform designed to create multi-channel messaging gateways for all types of connected devices. The Company also earns revenue for services, such as programming, licensure on Software as a Service (SaaS) basis, and on a performance basis, such as when a client acquires a new customer through our platform. Revenue is recognized in accordance with Staff Accounting Bulletin (SAB) No. 101, Revenue Recognition in Financial Statements, as revised by SAB No. 104. As such, the Company recognizes revenue when persuasive evidence of an arrangement exists, title transfer has occurred, the price is fixed or readily determinable, and collectability is probable. Sales are recorded net of sales discounts. Accounts receivable Accounts receivable is reported at the customers outstanding balances, less any allowance for doubtful accounts. Interest is not accrued on overdue accounts receivable. Allowance for doubtful accounts An allowance for doubtful accounts on accounts receivable is charged to operations in amounts sufficient to maintain the allowance for uncollectible accounts at a level management believes is adequate to cover any probable losses. Management determines the adequacy of the allowance based on historical write-off percentages and information collected from individual customers. Accounts receivable are charged off against the allowance when collectability is determined to be permanently impaired. Inventory Inventories consist of merchandise held for sale in the ordinary course of business, including cost of freight and other miscellaneous acquisition costs, and are stated at the lower of cost or market. The Company records a write-down for inventories which have become obsolete or are in excess of anticipated demand or net realizable value. The Company performs a detailed review of inventory each period that considers multiple factors including demand forecasts, market conditions, product life cycle status, product development plans and current sales levels. If future demand or market conditions for the Companys products are less favorable than forecasted or if unforeseen changes negatively affect the utility of the Companys inventory, it may be required to record additional write-downs, which would negatively affect gross margins in the period when the write-downs are recorded. If actual market conditions are more favorable, the Company may have higher gross margins when products incorporating inventory that were previously written down are sold. Property and equipment Property and equipment are stated at cost. Major renewals and improvements are charged to the asset accounts while replacements, maintenance and repairs that do not improve or extend the lives of the respective assets are expensed. At the time property and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation accounts are relieved of the applicable amounts. Gains or losses from retirements or sales are credited or charged to income. Depreciation is computed on the straight-line and accelerated methods for financial reporting and income tax reporting purposes based upon the following estimated useful lives: Computer software 3 years Computer hardware 5 years Office furniture 7 years Long-lived assets The Company accounts for its long-lived assets in accordance with ASC Topic 360-10-05, Accounting for the Impairment or Disposal of Long-Lived Assets. ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the assets carrying value and fair value or disposable value. Goodwill The Company accounts for goodwill in accordance with ASC Topic 805-30-25, Accounting for Business Combinations and ASC Topic 350-20-35, Accounting for Goodwill - Subsequent Measurement. ASC Topic 805-30 requires that the acquirer recognize goodwill as of the acquisition date as the excess of the fair value of the consideration transferred over the fair value of the net acquisition-date amounts of the identifiable assets and liabilities assumed. ASC Topic 350-20-35 requires that goodwill acquired in a purchase and determined to have an indefinite useful life is not amortized, but instead tested for impairment annually or more frequently when events or circumstances indicate that the carrying value of a reporting unit more likely than not exceeds its fair value. The Companys annual goodwill impairment testing date is December 31 of each year. The Company first assesses qualitative factors to determine whether its necessary to perform the two-step goodwill impairment test. Impairment is the condition that exists when the carrying amount of goodwill exceeds its implied fair value. If the qualitative assessment results in an indication that its more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative assessment must be performed. Management has determined that the Company has one reporting unit for purposes of testing goodwill. The quantitative analysis involves estimating the fair value of its reporting unit utilizing a combination of valuation methods including market capitalization, the income approach and cash flows. Income and cash flow forecasts were used in the evaluation of goodwill based on managements estimate of future performance. If goodwill is determined to be impaired as a result of this analysis, an impairment loss is recorded equal to the difference between the assets carrying value and fair value. The Company recorded an impairment to its goodwill for the year ended December 31, 2014 as further discussed in Note 10. Capitalized software development costs The Company capitalizes internal software development costs subsequent to establishing technological feasibility of a software application. Capitalized software development costs represent the costs associated with the internal development of the Companys software applications. Amortization of such costs is recorded on a software application-by-application basis, based on the greater of the proportion of current year sales to the total of current and estimated future sales for the applications or the straight-line method over the remaining estimated useful life of the software application. The Company continually evaluates the recoverability of capitalized software costs and will charge to operations amounts that are deemed unrecoverable for projects it abandons. Stock-based compensation The Company accounts for stock-based payments to employees in accordance with ASC 718, Stock Compensation (ASC 718). Stock-based payments to employees include grants of stock, grants of stock options and issuance of warrants that are recognized in the consolidated statement of operations based on their fair values at the date of grant. The Company accounts for stock-based payments to non-employees in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. Stock-based payments to non-employees include grants of stock, grants of stock options and issuances of warrants that are recognized in the consolidated statement of operations based on the value of the vested portion of the award over the requisite service period as measured at its then-current fair value as of each financial reporting date. The Company calculates the fair value of option grants and warrant issuances utilizing the Binomial pricing model. The amount of stock-based compensation recognized during a period is based on the value of the portion of the awards that are ultimately expected to vest. ASC 718 requires forfeitures to be estimated at the time stock options are granted and warrants are issued to employees and non-employees, and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The term forfeitures is distinct from cancellations or expirations and represents only the unvested portion of the surrendered stock option or warrant. The Company estimates forfeiture rates for all unvested awards when calculating the expense for the period. In estimating the forfeiture rate, the Company monitors both stock option and warrant exercises as well as employee termination patterns. The resulting stock-based compensation expense for both employee and non-employee awards is generally recognized as compensation under ASC Topic 505-50, In accordance with ASC 505-50, the cost of stock-based compensation is measured at the grant date based on the value of the award and is recognized over the vesting period. The value of the stock-based award is determined using the Binomial or Black-Scholes option-pricing models, whereby compensation cost is the excess of the fair value of the award as determined by the pricing model at the grant date or other measurement date over the amount that must be paid to acquire the stock. Loss per share The Company reports earnings (loss) per share in accordance with ASC Topic 260-10, "Earnings per Share." Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted earnings (loss) per share has not been presented since the effect of the assumed conversion of warrants and debt to purchase common shares would have an anti-dilutive effect. Potential common shares as of June 30, 2015 that have been excluded from the computation of diluted net loss per share amounted to 3,383,750 shares and include 600,000 warrants and 2,783,750 options. Of the 2,783,750 potential common shares that could be issued upon the exercise of the options at June 30, 2015, 837,917 had not vested. Recent accounting pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Companys financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Companys financials properly reflect the change. |
Going Concern
Going Concern | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Going Concern | NOTE 3 - GOING CONCERN The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As shown in the accompanying financial statements, the Company has incurred a net loss of ($340,912) and ($1,488,429) for the three and six months ended June 30, 2015, respectively, and has an accumulated deficit of ($16,740,846). The Company incurred a net loss of ($3,299,493) and ($4,327,886) for the three and six months ended June 30, 2014, respectively, and has an accumulated deficit of ($10,658,281). In order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company is significantly dependent upon its ability, and will continue to attempt, to secure equity and/or additional debt financing. The Company has recently issued debt securities and may conduct an offering of its equity securities to raise proceeds to finance its plan of operation. There are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. These conditions raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty. |
Accounts Receivable Disclosure
Accounts Receivable Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Accounts Receivable Disclosure | NOTE 4. ACCOUNTS RECEIVABLE Accounts receivable consist of the following: JUNE 30, DECEMBER 31, 2015 2014 Due from customers $ 77,795 $ 93,643 Less allowance for bad debts (11,250) (11,250) Total accounts receivable, net $ 66,545 $ 82,393 |
Prepaid Expenses and Deposits D
Prepaid Expenses and Deposits Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Prepaid Expenses and Deposits Disclosure | NOTE 5 - PREPAID EXPENSES AND DEPOSITS On January 23, 2013, the Company entered into a public relations consulting agreement for a term of two years. The Company renewed the agreements in both 2014 and 2015, and as of June 30, 2015, has authorized the issuance of 250,000 shares for the annual agreement period at a fair value of $132,500. As a result, $97,771 was recorded to consulting expense related to the service for the six months ended June 30, 2015. The remaining prepaid balance at June 30, 2015 totaled $71,771. |
Fixed Assets Disclosure
Fixed Assets Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Fixed Assets Disclosure | NOTE 6 - FIXED ASSETS Fixed assets consisted of the following at: JUNE 30, DECEMBER 31, 2015 2014 Office furniture & equipment $ 31,846 $ 32,895 Less: accumulated depreciation (12,313) (10,750) Total fixed assets, net $ 19,533 $ 22,145 |
Capitalized Software Costs and
Capitalized Software Costs and Intellectual Property | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Capitalized Software Costs and Intellectual Property | NOTE 7 - CAPITALIZED SOFTWARE COSTS AND INTELLECTUAL PROPERTY Capitalized software costs and license agreements consisted of the following at: JUNE 30, DECEMBER 31, 2015 2014 Capitalized software costs $ 2,395,121 $ 2,182,640 Less: accumulated amortization (802,293) (582,017) Net capitalized software costs 1,592,828 1,600,623 License agreements 690,000 69,808 Accumulated impairment loss - (69,808) Less: accumulated depreciation - - Net licenses 690,000 - Total intellectual property, net $ 2,282,828 $ 1,600,623 On May 26, 2015, the Company entered into a loyalty agreement with Help Worldwide, Inc. (HWW). The loyalty agreement provides that, upon the terms and subject to the conditions set forth therein, the Company will join the HWW network and become a licensed Loyalty Program Operator (LPO) to enable the delivery of a Yowza!! Points program for consumers and merchants in the Yowza!! program. Additionally, HWW will build a Yowza!! branded Rewards Mall for the redemption of Yowza!! Points. Consideration payable to HWW for the LPO is 3,000,000 unregistered shares of the Company's common stock (the Common Stock), which shall be issued directly to HWW. Pursuant to the Agreement, the Company and HWW will bundle their respective products to create a bundled package that will combine and co-brand the features of both parties' products (the Bundled Package). HWW will promote the Bundled Package including the co-branded mobile application to 30 million consumers. The consideration payable to HWW for the Bundled Package (Trademark) is 4,000,000 unregistered shares of the Company's Common Stock which shall be issued directly to HWW. The aggregate consideration to be paid to HWW for the Agreement is seven million (the Closing Share Consideration) shares of Common Stock. |
Domain Names and Trademarks Dis
Domain Names and Trademarks Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Domain Names and Trademarks Disclosure | NOTE 8 - DOMAIN NAMES AND TRADEMARKS Domain names consisted of the following at: JUNE 30, DECEMBER 31, 2015 2014 Domain names $ 85,000 $ 85,000 Less: accumulated amortization (17,226) (11,887) Total domain names, net $ 67,774 $ 73,113 Trademarks $ 920,000 $ - Less: accumulated amortization - - Total trademarks, net $ 920,000 $ - On May 26, 2015, the Company entered into a loyalty agreement with HWW as described in Note 7 in exchange for the trademark valued at $920,000 in exchange for 4,000,000 shares of Common Stock. |
Residual Contracts Disclosure
Residual Contracts Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Residual Contracts Disclosure | NOTE 9 - RESIDUAL CONTRACTS On December 31, 2012, the Company acquired the residual income stream of Parallel Solutions Inc. (PSI). This revenue was perpetual, provided that the vendors contract with PSI was not terminated. The calculations for the value associated with anticipated new income resulting from the acquired PSI residual contracts was determined based on PSIs residual revenue stream for the period from November of 2011 to October 2012 of $535,722 and historical PSIs termination rates of nil. The Company used the lowest industry standard multiple of (1.1) to determine the fair value of the contractual revenue stream as of the date of acquisition which was estimated to be $589,294. On June 4, 2015 the Company entered into an agreement to sell the PSI residual income stream for a purchase price of $753,740. As a result of this transaction, $373,154 was recorded as a gain on sale of assets for the three and six months ended June 30, 2015. As of June 30, 2015, the Company has received $508,751 of the purchase price and the balance of $244,989 is recorded to short-term receivables. JUNE 30, DECEMBER 31, 2015 2014 Residual contracts $ -- $ 589,294 Less: accumulated amortization -- (147,324) Total residual contracts, net $ -- $ 441,970 |
Goodwill Disclosure
Goodwill Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Goodwill Disclosure | NOTE 10 - GOODWILL JUNE 30, DECEMBER 31, 2015 2014 Goodwill $ 5,976,198 $ 5,976,198 Less: accumulated impairment loss (669,993) (669,993) Total goodwill, net $ 5,306,205 $ 5,306,205 In connection with the acquisition on March 20, 2013, the Company assumed certain liabilities and acquired substantially all of the assets of MeNetwork. The Company recorded goodwill related to this acquisition of $2,679,970. During its annual evaluation of goodwill, the Company determined that the carrying amount of goodwill related to MeNetwork, exceeded its fair value. As a result the Company recorded an impairment loss, to other expense, of $669,993 during the year ended December 31, 2014. This charge reflects the impact of partially sun setting assets acquired from MeNetwork in conjunction with the Companys integration of Yowza!! In connection with the acquisition (as further described in Note 14) on January 3, 2014, the Company assumed certain liabilities and acquired substantially all of the assets of Yowza!!. The Company recorded goodwill related to this acquisition of $3,291,932. During its annual evaluation of goodwill, the Company determined that the fair value of goodwill exceeded its carrying amount and as a result no impairment charge was recorded. |
Notes Payable - Related Party,
Notes Payable - Related Party, Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Notes Payable - Related Party, Disclosure | NOTE 11 - NOTES PAYABLE - RELATED PARTY On December 15, 2011, the Company issued a Promissory Note (Note) to a director of the Company formalizing various advances previously received from the director in the amount of $51,300 and allowing for future advances of up to $250,000. The note is non-interest bearing, unsecured and matured on December 15, 2014. The Company imputed interest at a rate of 2% per annum and recorded a discount in the amount of $10,640. In connection with one of the previous advances in the amount of $25,000, the Company issued warrants to purchase up to 250,000 shares of the Companys common stock at a price per share of $1.00 resulting in an additional discount of $17,709. The total discount attributable to the Note totaled $28,349 and is being amortized to interest expense over the term of the note. During the three and six months ended June 30, 2015, the Company has not made any payments on the Note. As of June 30, 2015, this Note has not been repaid in accordance with the terms of the note and the Company is process of negotiating new terms on the unpaid balance. On June 30, 2014, the Company recorded a $100,000 note payable to a director of the Company. The note is non-interest bearing and unsecured. The Company imputed interest at a rate of 2% per annum and recorded a discount in the amount of $110. During the three and six months ended June 30, 2015, interest expense of $27 and $54, related to amortization of the discount and interest on the unpaid notes was recorded, respectively. |
Stockholders' Equity Disclosure
Stockholders' Equity Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Stockholders' Equity Disclosure | NOTE 12 - STOCKHOLDERS EQUITY The Company is authorized to issue up to 300,000,000 shares of common stock, par value $0.001. During the six months ended June 30, 2015, the Company authorized the issuance of 350,000 shares of its common stock for cash proceeds totaling $175,000. As of June 30, 2015, 150,000 of these shares were unissued. During the six months ended June 30, 2015, the Company authorized the issuance of a total of 350,000 shares of common stock to two companies for services valued at $156,500. As of June 30, 2015, 7,853 of shares authorized for issuance in the prior year remain unissued. During the six months ended June 30, 2015, the Company issued 100,000 shares of its common stock as payment for previously accrued legal fees. The estimated fair value of these shares totaled $61,000. Of the total fair value, $50,000 has been recorded as a reduction to accounts payable and $11,000 was recognized as additional paid-in-capital and professional fees expense for the excess of the fair value. During the six months ended June 30, 2015, the Company authorized the issuance of 5,000 shares of common stock valued at $7,250 to the former Chief Financial Officer as compensation for services. During the six months ended June 30, 2015, the Company authorized the issuance of 100,000 shares of common stock valued at $13,000 to the Chief Financial Officer as compensation for services. During the six months ended June 30, 2015, the Company authorized the issuance of 864,677 shares of common stock valued at $188,876 to members of the Board of Directors as compensation for services. During the six months ended June 30, 2015, the Company authorized the issuance of 20,000 shares of common stock valued at $36,800 to an employee as compensation for services. During the six months ended June 30, 2015, the Company authorized the issuance of 7,000,000 shares of common stock valued at $1,610,000 for the purchase of a license agreement with HWW as described in Note 7. |
Warrants and Options Disclosure
Warrants and Options Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Warrants and Options Disclosure | NOTE 13 - WARRANTS AND OPTIONS On November 14, 2011, the Company issued warrants to purchase shares of the Companys common stock to a related-party in conjunction with a promissory note. The warrant holder was granted the right to purchase 250,000 shares of common stock of the Company for an aggregate purchase price of $250,000 or $1.00 per share. The aggregate fair value of the warrants totaled $387,500 based on the Black Scholes Merton pricing model using the following estimates: 2.75% risk free rate, 65% volatility and expected life of the warrants of 10 years. On October 29, 2012, our stockholders approved the 2012 Stock Incentive Plan (the Plan) that governs equity awards to our management, employees, directors and consultants. On November 7, 2013, our stockholders approved an amendment to the Plan which increased the total authorized amount of common stock issuable under the Plan from 3,000,000 to 6,000,000 shares. On March 11, 2015 the Board of Directors approved a private placement offering (the Offering) comprised of a unit (the Unit). Each Unit consists of one share of the Companys common stock and one three-year warrant to purchase one share of the Companys common stock. During the six months ended June 30, 2015, the Company sold 350,000 units under this offering. The following is a summary of the status of all of the Companys stock warrants and options as of June 30, 2015: Number of Warrants and Options Weighted-Average Exercise Price Weighted Average Remaining Contractual Life (in years) Outstanding at December 31, 2013 2,976,000 Granted 2,392,500 - Exercised - - Forfeited/Cancelled (1,657,666) - Outstanding at December 31, 2014 3,710,834 $ 0.534 7.09 Exercisable at December 31, 2014 2,368,334 $ 0.553 6.33 Outstanding at December 31, 2014 3,710,834 Granted 441,250 - Exercised - - Forfeited/Cancelled (768,334) - Outstanding at June 30, 2015 3,383,750 $ 0.537 7.28 Exercisable at June 30, 2015 2,545,833 $ 0.549 6.79 |
Business Acquisition Disclosure
Business Acquisition Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Business Acquisition Disclosure | NOTE 14 - BUSINESS ACQUISITION Yowza!! Transaction The Company completed the Yowza!! Transaction on January 3, 2014. This transaction was accounted for as a business combination. As such, the Company has allocated the purchase price in accordance with ASC Topic 850-30 as previously described in the Companys significant accounting policies. Consideration was determined as follows: Fair Value of Consideration Transferred Cash paid to Yowza!!, net of cash acquired $ 500,000 Fair value of Company's shares issued 3,004,860 Cash paid to extinguish debt, net of cash acquired (13,632) $ 3,491,228 The fair value of our shares issued in connection with the Yowza!! Transaction was determined to be $1.83, which was the fair value of the shares on the closing date of the acquisition. The Companys allocation of the purchase price is as follows: Net assets acquired: Cash $ 1,368 Accounts receivable 2,928 Software development costs 200,000 Trademarks 10,000 Net liabilities assumed: Accounts payable (15,000) Goodwill 3,291,932 Total purchase price $ 3,491,228 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Subsequent Events | NOTE 15 - SUBSEQUENT EVENTS The Companys management has reviewed all material events through the date of this report in accordance with ASC 855-10 (Subsequent Events), and believes there are no material subsequent events to report. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies: Cash and Cash Equivalents, Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Cash and Cash Equivalents, Policy | Cash and cash equivalents For purpose of the statements of cash flows, the Company considers cash and cash equivalents to include all stable, highly liquid investments with maturities of three months or less. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies: Restricted Cash Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Restricted Cash Policy | Restricted cash The Company maintains a restricted cash balance totaling $1,500 as part of its operating requirements in a non-interest-bearing account that currently does not exceed federally insured limits. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies: Concentration of Credit Risk Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Concentration of Credit Risk Policy | Concentration of credit risk The Company primarily transacts its business with one financial institution. The amount on deposit in that one institution may from time to time exceed the federally-insured limit. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies: Use of Estimates Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Use of Estimates Policy | Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies: Income Taxes Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Income Taxes Policy | Income taxes The Company accounts for its income taxes under the provisions of Accounting Standards Codification (ASC) Topic 740, Income Taxes. The method of accounting for income taxes under ASC 740 is an asset and liability method. The asset and liability method requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between tax bases and financial reporting bases of other assets and liabilities. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies: Revenue Recognition Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Revenue Recognition Policy | Revenue recognition Revenue is derived on a per message/notification basis through the Companys patented technologies and a modular, adaptable platform designed to create multi-channel messaging gateways for all types of connected devices. The Company also earns revenue for services, such as programming, licensure on Software as a Service (SaaS) basis, and on a performance basis, such as when a client acquires a new customer through our platform. Revenue is recognized in accordance with Staff Accounting Bulletin (SAB) No. 101, Revenue Recognition in Financial Statements, as revised by SAB No. 104. As such, the Company recognizes revenue when persuasive evidence of an arrangement exists, title transfer has occurred, the price is fixed or readily determinable, and collectability is probable. Sales are recorded net of sales discounts. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies: Accounts Receivable Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Accounts Receivable Policy | Accounts receivable Accounts receivable is reported at the customers outstanding balances, less any allowance for doubtful accounts. Interest is not accrued on overdue accounts receivable. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies: Allowance For Doubtful Accounts Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Allowance For Doubtful Accounts Policy | Allowance for doubtful accounts An allowance for doubtful accounts on accounts receivable is charged to operations in amounts sufficient to maintain the allowance for uncollectible accounts at a level management believes is adequate to cover any probable losses. Management determines the adequacy of the allowance based on historical write-off percentages and information collected from individual customers. Accounts receivable are charged off against the allowance when collectability is determined to be permanently impaired. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies: Inventory Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Inventory Policy | Inventory Inventories consist of merchandise held for sale in the ordinary course of business, including cost of freight and other miscellaneous acquisition costs, and are stated at the lower of cost or market. The Company records a write-down for inventories which have become obsolete or are in excess of anticipated demand or net realizable value. The Company performs a detailed review of inventory each period that considers multiple factors including demand forecasts, market conditions, product life cycle status, product development plans and current sales levels. If future demand or market conditions for the Companys products are less favorable than forecasted or if unforeseen changes negatively affect the utility of the Companys inventory, it may be required to record additional write-downs, which would negatively affect gross margins in the period when the write-downs are recorded. If actual market conditions are more favorable, the Company may have higher gross margins when products incorporating inventory that were previously written down are sold. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies: Property and Equipment Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Property and Equipment Policy | Property and equipment Property and equipment are stated at cost. Major renewals and improvements are charged to the asset accounts while replacements, maintenance and repairs that do not improve or extend the lives of the respective assets are expensed. At the time property and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation accounts are relieved of the applicable amounts. Gains or losses from retirements or sales are credited or charged to income. Depreciation is computed on the straight-line and accelerated methods for financial reporting and income tax reporting purposes based upon the following estimated useful lives: Computer software 3 years Computer hardware 5 years Office furniture 7 years |
Summary of Significant Accoun31
Summary of Significant Accounting Policies: Long-lived Assets Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Long-lived Assets Policy | Long-lived assets The Company accounts for its long-lived assets in accordance with ASC Topic 360-10-05, Accounting for the Impairment or Disposal of Long-Lived Assets. ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the assets carrying value and fair value or disposable value. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies: Goodwill Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Goodwill Policy | Goodwill The Company accounts for goodwill in accordance with ASC Topic 805-30-25, Accounting for Business Combinations and ASC Topic 350-20-35, Accounting for Goodwill - Subsequent Measurement. ASC Topic 805-30 requires that the acquirer recognize goodwill as of the acquisition date as the excess of the fair value of the consideration transferred over the fair value of the net acquisition-date amounts of the identifiable assets and liabilities assumed. ASC Topic 350-20-35 requires that goodwill acquired in a purchase and determined to have an indefinite useful life is not amortized, but instead tested for impairment annually or more frequently when events or circumstances indicate that the carrying value of a reporting unit more likely than not exceeds its fair value. The Companys annual goodwill impairment testing date is December 31 of each year. The Company first assesses qualitative factors to determine whether its necessary to perform the two-step goodwill impairment test. Impairment is the condition that exists when the carrying amount of goodwill exceeds its implied fair value. If the qualitative assessment results in an indication that its more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative assessment must be performed. Management has determined that the Company has one reporting unit for purposes of testing goodwill. The quantitative analysis involves estimating the fair value of its reporting unit utilizing a combination of valuation methods including market capitalization, the income approach and cash flows. Income and cash flow forecasts were used in the evaluation of goodwill based on managements estimate of future performance. If goodwill is determined to be impaired as a result of this analysis, an impairment loss is recorded equal to the difference between the assets carrying value and fair value. The Company recorded an impairment to its goodwill for the year ended December 31, 2014 as further discussed in Note 10. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies: Capitalized Software Development Costs Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Capitalized Software Development Costs Policy | Capitalized software development costs The Company capitalizes internal software development costs subsequent to establishing technological feasibility of a software application. Capitalized software development costs represent the costs associated with the internal development of the Companys software applications. Amortization of such costs is recorded on a software application-by-application basis, based on the greater of the proportion of current year sales to the total of current and estimated future sales for the applications or the straight-line method over the remaining estimated useful life of the software application. The Company continually evaluates the recoverability of capitalized software costs and will charge to operations amounts that are deemed unrecoverable for projects it abandons. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies: Stock-based Compensation, Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Stock-based Compensation, Policy | Stock-based compensation The Company accounts for stock-based payments to employees in accordance with ASC 718, Stock Compensation (ASC 718). Stock-based payments to employees include grants of stock, grants of stock options and issuance of warrants that are recognized in the consolidated statement of operations based on their fair values at the date of grant. The Company accounts for stock-based payments to non-employees in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. Stock-based payments to non-employees include grants of stock, grants of stock options and issuances of warrants that are recognized in the consolidated statement of operations based on the value of the vested portion of the award over the requisite service period as measured at its then-current fair value as of each financial reporting date. The Company calculates the fair value of option grants and warrant issuances utilizing the Binomial pricing model. The amount of stock-based compensation recognized during a period is based on the value of the portion of the awards that are ultimately expected to vest. ASC 718 requires forfeitures to be estimated at the time stock options are granted and warrants are issued to employees and non-employees, and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The term forfeitures is distinct from cancellations or expirations and represents only the unvested portion of the surrendered stock option or warrant. The Company estimates forfeiture rates for all unvested awards when calculating the expense for the period. In estimating the forfeiture rate, the Company monitors both stock option and warrant exercises as well as employee termination patterns. The resulting stock-based compensation expense for both employee and non-employee awards is generally recognized as compensation under ASC Topic 505-50, In accordance with ASC 505-50, the cost of stock-based compensation is measured at the grant date based on the value of the award and is recognized over the vesting period. The value of the stock-based award is determined using the Binomial or Black-Scholes option-pricing models, whereby compensation cost is the excess of the fair value of the award as determined by the pricing model at the grant date or other measurement date over the amount that must be paid to acquire the stock. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies: Loss Per Share Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Loss Per Share Policy | Loss per share The Company reports earnings (loss) per share in accordance with ASC Topic 260-10, "Earnings per Share." Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted earnings (loss) per share has not been presented since the effect of the assumed conversion of warrants and debt to purchase common shares would have an anti-dilutive effect. Potential common shares as of June 30, 2015 that have been excluded from the computation of diluted net loss per share amounted to 3,383,750 shares and include 600,000 warrants and 2,783,750 options. Of the 2,783,750 potential common shares that could be issued upon the exercise of the options at June 30, 2015, 837,917 had not vested. |
Summary of Significant Accoun36
Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Recent Accounting Pronouncements | Recent accounting pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Companys financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Companys financials properly reflect the change. |
Summary of Significant Accoun37
Summary of Significant Accounting Policies: Property and Equipment Policy: Schedule of estimated useful lives (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of estimated useful lives | Computer software 3 years Computer hardware 5 years Office furniture 7 years |
Accounts Receivable Disclosure_
Accounts Receivable Disclosure: Schedule of Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Accounts Receivable | JUNE 30, DECEMBER 31, 2015 2014 Due from customers $ 77,795 $ 93,643 Less allowance for bad debts (11,250) (11,250) Total accounts receivable, net $ 66,545 $ 82,393 |
Fixed Assets Disclosure_ Schedu
Fixed Assets Disclosure: Schedule of Fixed Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Fixed Assets | JUNE 30, DECEMBER 31, 2015 2014 Office furniture & equipment $ 31,846 $ 32,895 Less: accumulated depreciation (12,313) (10,750) Total fixed assets, net $ 19,533 $ 22,145 |
Capitalized Software Costs an40
Capitalized Software Costs and Intellectual Property: Schedule of Capitalized Software Costs (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Capitalized Software Costs | JUNE 30, DECEMBER 31, 2015 2014 Capitalized software costs $ 2,395,121 $ 2,182,640 Less: accumulated amortization (802,293) (582,017) Net capitalized software costs 1,592,828 1,600,623 License agreements 690,000 69,808 Accumulated impairment loss - (69,808) Less: accumulated depreciation - - Net licenses 690,000 - Total intellectual property, net $ 2,282,828 $ 1,600,623 |
Domain Names and Trademarks D41
Domain Names and Trademarks Disclosure: Schedule of Domain Names (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Domain Names | JUNE 30, DECEMBER 31, 2015 2014 Domain names $ 85,000 $ 85,000 Less: accumulated amortization (17,226) (11,887) Total domain names, net $ 67,774 $ 73,113 Trademarks $ 920,000 $ - Less: accumulated amortization - - Total trademarks, net $ 920,000 $ - |
Residual Contracts Disclosure_
Residual Contracts Disclosure: Schedule of Acquired Finite-Lived Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Acquired Finite-Lived Intangible Assets | JUNE 30, DECEMBER 31, 2015 2014 Residual contracts $ -- $ 589,294 Less: accumulated amortization -- (147,324) Total residual contracts, net $ -- $ 441,970 |
Goodwill Disclosure_ Schedule o
Goodwill Disclosure: Schedule of Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Goodwill | JUNE 30, DECEMBER 31, 2015 2014 Goodwill $ 5,976,198 $ 5,976,198 Less: accumulated impairment loss (669,993) (669,993) Total goodwill, net $ 5,306,205 $ 5,306,205 |
Warrants and Options Disclosu44
Warrants and Options Disclosure: Schedule of Stock Warrants (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Stock Warrants | Number of Warrants and Options Weighted-Average Exercise Price Weighted Average Remaining Contractual Life (in years) Outstanding at December 31, 2013 2,976,000 Granted 2,392,500 - Exercised - - Forfeited/Cancelled (1,657,666) - Outstanding at December 31, 2014 3,710,834 $ 0.534 7.09 Exercisable at December 31, 2014 2,368,334 $ 0.553 6.33 Outstanding at December 31, 2014 3,710,834 Granted 441,250 - Exercised - - Forfeited/Cancelled (768,334) - Outstanding at June 30, 2015 3,383,750 $ 0.537 7.28 Exercisable at June 30, 2015 2,545,833 $ 0.549 6.79 |
Business Acquisition Disclosu45
Business Acquisition Disclosure: Schedule of Business Acquisitions Consideration (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Business Acquisitions Consideration | Fair Value of Consideration Transferred Cash paid to Yowza!!, net of cash acquired $ 500,000 Fair value of Company's shares issued 3,004,860 Cash paid to extinguish debt, net of cash acquired (13,632) $ 3,491,228 |
Business Acquisition Disclosu46
Business Acquisition Disclosure: Allocation of purchase price (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Allocation of purchase price | Net assets acquired: Cash $ 1,368 Accounts receivable 2,928 Software development costs 200,000 Trademarks 10,000 Net liabilities assumed: Accounts payable (15,000) Goodwill 3,291,932 Total purchase price $ 3,491,228 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies: Property and Equipment Policy: Schedule of estimated useful lives (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Software and Software Development Costs | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer Equipment | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and Fixtures | |
Property, Plant and Equipment, Useful Life | 7 years |
Going Concern (Details)
Going Concern (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Details | |||||
Net loss incurred | $ 340,912 | $ 3,299,493 | $ 1,488,429 | $ 4,327,886 | |
Accumulated deficit at end of period | $ 16,740,846 | $ 10,658,281 | $ 16,740,846 | $ 10,658,281 | $ 15,252,417 |
Accounts Receivable Disclosur49
Accounts Receivable Disclosure: Schedule of Accounts Receivable (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Details | ||
Due from customers | $ 77,795 | $ 93,643 |
Allowance for bad debts | (11,250) | (11,250) |
Accounts receivable, net | $ 66,545 | $ 82,393 |
Prepaid Expenses and Deposits50
Prepaid Expenses and Deposits Disclosure (Details) - Jun. 30, 2015 - Consulting Agreement - USD ($) | Total |
Consulting expense recognized | $ 97,771 |
Remaining prepaid balance | $ 71,771 |
Fixed Assets Disclosure_ Sche51
Fixed Assets Disclosure: Schedule of Fixed Assets (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Details | ||
Office furniture & equipment | $ 31,846 | $ 32,895 |
Less, accumulated depreciation | (12,313) | (10,750) |
Total fixed assets, net | $ 19,533 | $ 22,145 |
Capitalized Software Costs an52
Capitalized Software Costs and Intellectual Property: Schedule of Capitalized Software Costs (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Details | ||
Capitalized software costs | $ 2,395,121 | $ 2,182,640 |
(Less) Accumulated amortization (software) | (802,293) | (582,017) |
Net capitalized software costs | 1,592,828 | 1,600,623 |
License agreements | 690,000 | 69,808 |
Accumulated impairment loss | (69,808) | |
Total licenses | 690,000 | |
Total intellectual property, net | $ 2,282,828 | $ 1,600,623 |
Capitalized Software Costs an53
Capitalized Software Costs and Intellectual Property (Details) | May. 26, 2015shares |
Loyalty Program Operator | |
Unregistered common shares payable | 3,000,000 |
Bundled Package | |
Unregistered common shares payable | 4,000,000 |
Domain Names and Trademarks D54
Domain Names and Trademarks Disclosure: Schedule of Domain Names (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Domain names, net | $ 67,774 | $ 73,113 |
Domain names | ||
Other Indefinite-lived Intangible Assets | 85,000 | 85,000 |
(Less) Accumulated depreciation (Domain Names) | (17,226) | (11,887) |
Domain names, net | 67,774 | $ 73,113 |
Trademark | ||
Other Indefinite-lived Intangible Assets | 920,000 | |
Domain names, net | $ 920,000 |
Residual Contracts Disclosure (
Residual Contracts Disclosure (Details) | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Details | |
Proceeds from sale of residual income stream | $ 753,740 |
Residual Contracts Disclosure56
Residual Contracts Disclosure: Schedule of Acquired Finite-Lived Intangible Assets (Details) | Dec. 31, 2014USD ($) |
Details | |
Residual contracts, gross | $ 589,294 |
Accumulated amortization of residual contracts | 147,324 |
Total residual contracts, net | $ 441,970 |
Goodwill Disclosure_ Schedule57
Goodwill Disclosure: Schedule of Goodwill (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Details | ||
Goodwill, gross | $ 5,976,198 | $ 5,976,198 |
(Less) accumulated impairment loss on goodwill | 669,993 | 669,993 |
Goodwill, net | $ 5,306,205 | $ 5,306,205 |
Notes Payable - Related Party58
Notes Payable - Related Party, Disclosure (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Promissory Grid Note | |||
Debt discount attributed to note | $ 28,349 | $ 28,349 | |
Interest repaid | $ 27 | $ 54 | |
Director of the Company | |||
Debt discount attributed to note | $ 110 | ||
Note payable recorded | $ 100,000 |
Stockholders' Equity Disclosu59
Stockholders' Equity Disclosure (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Common stock authorized to be issued | 300,000,000 | 300,000,000 |
Par value of common stock | $ 0.001 | $ 0.001 |
Common stock for Cash | ||
Common stock authorized to be issued | 350,000 | |
Value or proceeds received for stock issuance | $ 175,000 | |
Common stock unissued | 150,000 | |
Common stock services | ||
Common stock authorized to be issued | 350,000 | |
Value or proceeds received for stock issuance | $ 156,500 | |
Common stock unissued | 7,853 | |
Stock for Accrued Legal Fees | ||
Value or proceeds received for stock issuance | $ 61,000 | |
Common stock issued | 100,000 | |
Stock for former CFO compensation | ||
Common stock authorized to be issued | 5,000 | |
Value or proceeds received for stock issuance | $ 7,250 | |
Stock for CFO compensation | ||
Common stock authorized to be issued | 100,000 | |
Value or proceeds received for stock issuance | $ 13,000 | |
Stock for Board of Directors compensation | ||
Common stock authorized to be issued | 864,677 | |
Value or proceeds received for stock issuance | $ 188,876 | |
Stock for Employee compensation | ||
Common stock authorized to be issued | 20,000 | |
Value or proceeds received for stock issuance | $ 36,800 | |
Stock for purchase of a license agreement with HWW | ||
Common stock authorized to be issued | 7,000,000 | |
Value or proceeds received for stock issuance | $ 1,610,000 |
Warrants and Options Disclosu60
Warrants and Options Disclosure (Details) | Jun. 30, 2015shares |
Details | |
Authorized amount of common stock under 2012 Stock Option Plan | 6,000,000 |
Warrants and Options Disclosu61
Warrants and Options Disclosure: Schedule of Stock Warrants (Details) - $ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details | |||
Number of warrants and options outstanding | 3,383,750 | 3,710,834 | 2,976,000 |
Number of warrants and options granted in period | 441,250 | 2,392,500 | |
Number of warrants and options cancelled during the period | (768,334) | (1,657,666) | |
Weighted average exercise price (outstanding) | $ 0.537 | $ 0.534 | |
Number of warrants and options exercisable | 2,545,833 | 2,368,334 | |
Weighted average exercise price (exercisable) | $ 0.549 | $ 0.553 |
Business Acquisition Disclosu62
Business Acquisition Disclosure: Schedule of Business Acquisitions Consideration (Details) - Yowza | 6 Months Ended |
Jun. 30, 2014USD ($) | |
Cash paid for acquisition, net | $ 500,000 |
Fair value of shares issued | 3,004,860 |
Cash paid to extinguish debt, net | (13,632) |
Fair value of consideration transferred | $ 3,491,228 |
Uncategorized Items - spdl-2015
Label | Element | Value |
Net (loss) | us-gaap_NetIncomeLoss | $ (3,299,493) |
Net (loss) | us-gaap_NetIncomeLoss | (340,912) |
Gain on sale of assets | us-gaap_GainsLossesOnSalesOfAssets | 373,154 |
Depreciation and amortization | us-gaap_DepreciationAndAmortization | 141,653 |
Depreciation and amortization | us-gaap_DepreciationAndAmortization | $ 145,172 |