Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2015 | Jun. 30, 2014 | |
Document And Entity Information | |||
Entity Registrant Name | EXP Realty International Corp | ||
Entity Central Index Key | 1495932 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $2,329,987 | ||
Entity Common Stock, Shares Outstanding | 48,566,909 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ||
Cash and cash equivalents | $353,374 | $100,056 |
Restricted cash | 141,508 | 38,198 |
Accounts receivable, net of allowance $3,084 and $2,329, respectively | 183,026 | 99,640 |
Accounts receivable, related party | 6,000 | 8,200 |
Prepaids and other assets | 74,673 | 39,793 |
TOTAL CURRENT ASSETS | 758,851 | 285,887 |
OTHER ASSETS | ||
Fixed assets, net | 79,393 | 44,854 |
Deferred tax assets, non-current | 75,196 | 0 |
TOTAL OTHER ASSETS | 154,589 | 44,854 |
TOTAL ASSETS | 913,170 | 330,741 |
CURRENT LIABILITIES | ||
Accounts payable | 79,389 | 55,826 |
Customer deposits | 141,508 | 38,198 |
Accrued expenses | 207,323 | 130,244 |
Due to related parties | 0 | 18,232 |
Accrued interest | 9,397 | 7,537 |
Current portion of notes payable | 61,887 | 0 |
TOTAL CURRENT LIABILITIES | 499,504 | 250,037 |
LONG TERM LIABILITIES | ||
Notes payable | 0 | 61,887 |
TOTAL LIABILITIES | 499,504 | 311,924 |
Commitments and Contingencies | ||
STOCKHOLDERS' EQUITY / (DEFICIT) | ||
Common Stock, 7,700,000,000 shares, $0.00001 par value authorized; 48,566,909 and 47,795,317 issued and outstanding at December 31, 2014 and December 31, 2013, respectively | 486 | 478 |
Additional paid-in capital | 1,824,361 | 1,531,821 |
Accumulated deficit | -1,409,639 | -1,513,482 |
Accumulated other comprehensive (loss) | -1,542 | 0 |
TOTAL EQUITY / (DEFICIT) | 413,666 | 18,817 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY / (DEFICIT) | $913,170 | $330,741 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $3,084 | $2,329 |
Common stock shares authorized | 7,700,000,000 | 7,700,000,000 |
Common stock par value | $0.00 | $0.00 |
Common stock shares issued | 48,566,909 | 47,795,317 |
Common stock shares outstanding | 48,566,909 | 47,795,317 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | ||
Net Revenues | $13,368,905 | $10,701,280 |
Operating expenses | ||
Cost of revenues | 11,099,750 | 8,905,114 |
General and administrative | 1,883,146 | 2,430,216 |
Professional fees | 276,558 | 424,361 |
Sales and marketing | 76,019 | 60,197 |
Total expenses | 13,335,473 | 11,819,888 |
Net income (loss) from operations | 33,432 | -1,118,608 |
Other income and (expenses) | ||
Other income | 0 | 3,324 |
Interest expense | -942 | -2,034 |
Total other income and (expenses) | -942 | 1,290 |
Income (Loss) before income tax expense | 32,490 | -1,117,318 |
Income tax benefit (expense) | 71,353 | -1,543 |
Net income (loss) | $103,843 | ($1,118,861) |
Net income (loss) per share - basic | $0 | $0 |
Net income (loss) per share - diluted | $0 | $0 |
Weighted average shares outstanding - basic | 48,068,047 | 1,008,541,794 |
Weighted average shares outstanding - diluted | 51,735,865 | 1,008,541,794 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning balance, value at Dec. 31, 2012 | $401 | $192,930 | ($394,621) | $0 | ($201,290) |
Beginning balance, shares at Dec. 31, 2012 | 1,403,010,000 | ||||
Stock issued for cash, shares | 419,955 | ||||
Stock issued for cash, value | 4 | 90,231 | 90,235 | ||
Due to related party forgiveness of debt | 9,318 | 9,318 | |||
Stock issued for related party debt, shares | 365,015 | ||||
Stock issued for related party debt, value | 109,500 | 109,500 | |||
Stock issued for merger, shares | 37,163,549 | ||||
Stock issued for merger, value | 371 | -371 | |||
Stock compensation expense, shares | 501,813 | ||||
Stock compensation expense, value | 5 | 248,715 | 248,720 | ||
Stock option expense | 891,195 | 891,195 | |||
Repurchase of ownership units | -10,000 | -10,000 | |||
Forward stock split | 13,634 | -13,634 | |||
Cancellation of shares, shares | -1,393,665,015 | ||||
Cancellation of shares, value | -13,937 | 13,937 | |||
Net income (loss) | -1,118,861 | -1,118,861 | |||
Ending balance, value at Dec. 31, 2013 | 478 | 1,531,821 | -1,513,482 | 18,817 | |
Ending balance, shares at Dec. 31, 2013 | 47,795,317 | ||||
Stock issued for cash, shares | 198,333 | ||||
Stock issued for cash, value | 2 | 59,448 | 59,450 | ||
Stock compensation expense, shares | 573,259 | ||||
Stock compensation expense, value | 6 | 136,488 | 136,494 | ||
Stock option expense | 96,604 | 96,604 | |||
Repurchase of ownership units | 0 | ||||
Foreign currency translation (loss) | -1,542 | -1,542 | |||
Net income (loss) | 103,843 | 103,843 | |||
Ending balance, value at Dec. 31, 2014 | $486 | $1,824,361 | ($1,409,639) | ($1,542) | $413,666 |
Ending balance, shares at Dec. 31, 2014 | 48,566,909 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $103,843 | ($1,118,861) |
Adjustments to reconcile net income (loss) to cash used in operating activities: | ||
Depreciation | 14,493 | 4,442 |
Stock compensation expense | 136,494 | 248,720 |
Stock option expense | 96,604 | 891,195 |
Deferred tax asset | -75,196 | 0 |
Changes in operating assets and liabilities | ||
Accounts receivable | -83,386 | -36,943 |
Accounts receivable, related party | 2,200 | 552 |
Prepaids and other assets | -34,880 | -23,248 |
Accounts payable | 23,563 | 4,491 |
Accrued expenses | 77,079 | 9,011 |
Due to related parties | -18,232 | 34,633 |
Accrued interest | 1,860 | 2,034 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 244,442 | 16,026 |
INVESTMENT ACTIVITIES | ||
Acquisition of property and equipment | -49,032 | -39,513 |
CASH USED BY INVESTMENT ACTIVITIES | -49,032 | -39,513 |
FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock | 59,450 | 90,235 |
Repurchase of ownership units | 0 | -10,000 |
Principal payments of notes payable | 0 | -15,000 |
CASH PROVIDED BY FINANCING ACTIVITIES | 59,450 | 65,235 |
Net change in cash | 254,860 | 41,748 |
Effect of foreign exchange on cash | -1,542 | 0 |
Cash and cash equivalents, beginning of period | 100,056 | 58,308 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 353,374 | 100,056 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS FOR: | ||
Cash paid for interest | 0 | 0 |
Cash paid for taxes | $3,843 | $1,543 |
1_Background
1. Background | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
1. Background | eXp Realty International Corporation formerly known as Desert Canadians, Ltd. (the “Company” or “eXp”) was incorporated in the State of Delaware on July 30, 2008. In September of 2013 we completed a merger transaction with eXp Acquisition Corp. (surviving corporation) and eXp Realty International Inc. and its subsidiaries. Upon completion of the merger eXp Realty International Inc. ceased to exist. Also in connection with the merger agreement and immediately thereafter our board of directors also approved a change in our fiscal year end from June 30 to December 31. |
The Company is a cloud-based real estate brokerage operating in 30 States and in both Alberta and Ontario, Canada. As a cloud-based real estate brokerage for the residential real estate market, eXp has embraced and adopted a number of cloud-based technologies in order to grow an international brokerage without the burden of physical bricks and mortar or redundant staffing costs. | |
2_Summary_of_Significant_Accou
2. Summary of Significant Accounting Principles | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
2. Summary of Significant Accounting Principles | Basis of presentation and fiscal year | ||
The accompanying audited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), and are expressed in US dollars. As disclosed in our 8-K filed September 27th, 2013 the Company has changed its fiscal year end to December 31. We may have reclassified certain amounts in prior-period financial statements to conform to the current period’s presentation. | |||
Principles of consolidation | |||
The accompanying consolidated financial statements include the accounts of eXp Realty International Corporation and its subsidiaries eXp Acquisition Corp; eXp Realty, LLC; eXp Realty Washington, Inc.; eXp Realty of Canada, Inc.; and eXp Realty of Connecticut, LLC. All inter-company accounts and transactions have been eliminated upon consolidation. | |||
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. The Company regularly evaluates estimates and assumptions related provisions for doubtful accounts, legal contingencies, income taxes, revenue recognition, stock-based compensation, expense accruals, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. | |||
Cash and cash equivalents | |||
The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. | |||
Restricted cash | |||
The Company’s restricted cash balance of $141,508 and $38,198 at December 31, 2014 and 2013, respectively, consists of cash held by our brokers and agents on behalf real estate buyers that are in escrow. Since the Company does not have rights to the cash a corresponding customer deposit liability in the same amounts are recognized in the consolidated balance sheets. When a sales transaction closes the restricted cash transfers to the sellers and the corresponding deposit liability is reduced. | |||
Fair value | |||
The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The methodology establishes consistency and comparability by providing a fair value hierarchy that prioritizes the inputs to valuation techniques into three broad levels, which are described below: | |||
• | Level 1 inputs are quoted market prices in active markets for identical assets or liabilities (these are observable market inputs). | ||
• | Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability (includes quoted market prices for similar assets or identical or similar assets in markets in which there are few transactions, prices that are not current or prices that vary substantially). | ||
• | Level 3 inputs are unobservable inputs that reflect the entity's own assumptions in pricing the asset or liability (used when little or no market data is available). | ||
The Company's financial instruments, including cash, accounts receivable, restricted cash, accounts payable, accrued expenses and other current liabilities are carried at cost, which approximates their fair value due to the short-term maturity of these instruments. | |||
Concentration of credit risk, significant customers, and significant suppliers | |||
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, accounts receivable and restricted cash. | |||
The Company deposits its cash with financial institutions that management believes to be of high credit quality, and these deposits may, on occasion, exceed federally insured limits. | |||
A portion of the Company’s accounts receivable are derived from non-commission based technology fees. These accounts receivable are typically unsecured. Allowances for doubtful accounts are estimated based on historically collection experience and periodically reviewed by management. For the periods presented we did not experience any material bad debts. | |||
Foreign currency translation | |||
Management has adopted ASC 740, Foreign Currency Translation Matters as it pertains to its foreign currency translation.The Company’s functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. | |||
Property and equipment | |||
Property and equipment are stated at cost. Depreciation and amortization is computed using the straight-line method over the estimated useful lives. | |||
Computer hardware and software: 3 to 5 years | |||
Furniture, fixtures and equipment: 5 to 7 years | |||
Maintenance and repairs are expensed as incurred. Expenditures that substantially increase an asset’s useful life or improve an asset’s functionality are capitalized. | |||
Impairment of long-lived assets | |||
In accordance with the accounting guidance for the impairment or disposal of long-lived assets, the Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost of disposal. As of the years ending December 31, 2014 and 2013, the Company has not recorded any charges for impairment of long-lived assets. | |||
Stock-based compensation | |||
Stock-based compensation costs, consisting of restricted stock and options, for eligible employees, directors, and contractors are measured at fair value on the date of grant and are expensed over the requisite service period using a straight line method for each award. | |||
Revenue recognition | |||
Revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service has been delivered, and collectability of the resulting receivable is reasonably assured. | |||
Commission Revenue | |||
The Company derives the majority of its revenue from commissions earned as agents in residential real estate transactions. Commission revenue is recognized upon closing of a transaction, net of any rebate or commission discount or transaction fee adjustment. Other commission revenue is generated from company leads, referrals, and other related fees. | |||
Non-Commission Revenue | |||
Non-commission revenues are derived primarily from agent and broker training fees, known as “eXp University tuition” and technology fees. Technology fee revenues are recognized over the term of the agreements as the contracted services are delivered. | |||
Advertising costs | |||
Advertising costs are expensed as incurred and included in sales and marketing expense in the accompanying consolidated statements of operations. | |||
Income taxes | |||
Deferred tax assets and liabilities arise from the differences between the tax basis of an asset or liability and its reported amount in the financial statements as well as from net operating loss and tax credit carry forwards. The measurement of current and deferred tax assets and liabilities is based on provisions of enacted tax laws; the effects of future changes in tax laws or rates are not anticipated. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense or benefit is the tax payable or refundable, respectively, for the period adjusted for the change during the period in deferred tax assets and liabilities. For U.S. income tax returns, the open taxation years subject to examination range from 2010 to 2014. In certain circumstances, the U.S. federal statute of limitations can reach beyond the standard three year period. | |||
Comprehensive income (loss) | |||
Comprehensive income (loss) comprised of foreign currency loss of $1,542 and $0 for the years ended December 31, 2014 and 2013, respectively. | |||
Net income (loss) per share | |||
Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of shares of common stock outstanding plus, if dilutive, potential common shares outstanding during the period. Potential common shares are composed of incremental shares of common stock issuable upon the exercise of potentially dilutive stock options. | |||
Recently issued accounting pronouncements | |||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. The objective of this update is to 1) remove inconsistencies and weaknesses in revenue requirements, 2) provide a robust framework for addressing revenue recognition issues, 3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets 4) provide more useful information to users of financial statements through improved disclosure requirements, and 5) simplify the preparation of financial statements. This update is effective in annual reporting periods beginning after December 15, 2016 and the interim periods within that year. The Company will be evaluating the impact of this update as it pertains to the Company’s financial statements and other required disclosures on an on-going basis until its eventual adoption and incorporation. | |||
3_Prepaid_and_Other_Current_As
3. Prepaid and Other Current Assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
3. Prepaid and Other Current Assets | Prepaid and other current assets consisted of the following: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Prepaid insurance | $ | 8,125 | $ | 10,434 | |||||
Prepaid expenses | 52,573 | 25,400 | |||||||
Rent deposits | 11,518 | 1,503 | |||||||
Other assets | 2,457 | 2,456 | |||||||
$ | 74,673 | $ | 39,793 | ||||||
4_Property_and_Equipment
4. Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
4. Property and Equipment | Property and equipment, net consisted of the following: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Computer hardware and software | $ | 96,935 | $ | 15,219 | |||||
Furniture, fixture and equipment | 5,910 | – | |||||||
Total depreciable property and equipment | 102,845 | 15,219 | |||||||
Less: accumulated depreciation and amortization | (23,452 | ) | (9,878 | ) | |||||
Depreciable property, net | 79,393 | 5,341 | |||||||
Assets under development | – | 39,513 | |||||||
Property and equipment, net | $ | 79,393 | $ | 44,854 | |||||
Depreciation and amortization expense for the years ended December 31, 2014 and 2013 was $14,493 and $4,442, respectively. | |||||||||
5_Accrued_Expenses
5. Accrued Expenses | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
5. Accrued Expenses | Accrued expenses consisted of the following: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Commissions payable | $ | 115,090 | $ | 59,468 | |||||
Payroll payable | 43,544 | 27,443 | |||||||
Vacation payable | 27,703 | 22,247 | |||||||
Other accrued expenses | 20,986 | 21,086 | |||||||
$ | 207,323 | $ | 130,244 | ||||||
6_Notes_Payable
6. Notes Payable | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
6. Notes Payable | Notes payable consisted of the following: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Note Description | |||||||||
Note payable due to an individual, 3% interest compounding annually, principal and interest paid any-time prior to April 21, 2015 at the Company’s option. | $ | 61,887 | $ | 61,887 | |||||
Total notes payable | 61,887 | 61.887 | |||||||
Less: current portion | (61,887 | ) | – | ||||||
Notes payable, net of current portion | $ | – | $ | 61,887 | |||||
During the years ended December 31, 2014 and 2013 the Company recognized interest expense of $942 and $2,034, respectively. | |||||||||
7_Stockholders_Equity
7. Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
7. Stockholders' Equity | On September 9, 2013 the Company increased the authorized shares of our $0.00001 par value common stock from 220,000,000 to 7,700,000,000 and effected a thirty-five-to-one forward stock split of the issued and outstanding shares of common stock. |
In February of 2014 we issued 198,333 shares of common stock for cash to investors in private placements for $0.30 per share for net receipts of cash totaling $59,450. | |
Throughout 2014 we issued 573,259 shares of common stock for services valued at $136,494 to consultants and directors. | |
In March 2013, the Company issued 365,015 shares of common stock to satisfy $109,500 due to related parties. The amounts due were composed of $92,668 of cash advances and $16,832 of expense reimbursements outstanding at the time of issuance. Also, in association with this transaction the related party agreed to forgive $7,799 of expenses paid on behalf of the Company. | |
In April 2013 we issued 613,598 shares of common stock for services valued at $122,720 to vendors. | |
In September 2013 our CEO forfeited and the Company subsequently cancelled 1,393,350,000 (post-split) shares of common stock. | |
In September 2013 we issued 37,163,549 shares of common stock to shareholders of eXp Realty International Inc. as part of the business combination. | |
In November 2013 we issued 200,000 shares of common stock for services valued at $60,000 to vendors. We also issued 220,000 shares of common stock as a performance award valued at $66,000. | |
In December 2013 a shareholder forfeited and the Company subsequently cancelled 315,015 shares of common stock. | |
Throughout 2013 we issued 419,955 shares of common stock for cash to investors in private placements between $0.15 and $0.30 per share for receipts of cash totaling $90,235. | |
8_Stock_Based_Compensation
8. Stock Based Compensation | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
8. Stock Based Compensation | During the years ended December 31, 2014 and 2013 the Company approved the issuance of stock options to certain employees, officers, directors, and service provider at the sole discretion of the Board of Directors. | ||||||||||||||||||||
As of December 31, 2014, all option awards granted were done so prior to the Company being public. | |||||||||||||||||||||
As such, the Company has and will continue to account for those awards based on the intrinsic value method and re-measure the intrinsic value at each reporting date through the date of exercise or other settlement. The Company will continue to do so for these previously granted awards unless an award is modified, repurchased, or cancelled. The final measure of compensation cost is recognized at the intrinsic value of the instrument at the date it is settled. Compensation cost for each period until settlement is based on the change in the intrinsic value of the instrument in each reporting period. | |||||||||||||||||||||
The Company’s currently issued stock options vest over periods ranging from 0 to 4 years and are exercisable for a period of 10 years. | |||||||||||||||||||||
The Company’s stock option activity is as follows: | |||||||||||||||||||||
Options | Weighted Average Price | Intrinsic Value | |||||||||||||||||||
Balance, December 31, 2012 | 5,486,003 | 0.13 | 0.17 | ||||||||||||||||||
Granted | 2,187,997 | 0.17 | 0.13 | ||||||||||||||||||
Exercised | – | – | – | ||||||||||||||||||
Forfeited | – | – | – | ||||||||||||||||||
Balance, December 31, 2013 | 7,674,000 | 0.14 | 0.16 | ||||||||||||||||||
Granted | – | – | – | ||||||||||||||||||
Exercised | – | – | – | ||||||||||||||||||
Forfeited | (462,521 | ) | – | – | |||||||||||||||||
Balance, December 31, 2014 | 7,211,479 | 0.15 | 0.17 | ||||||||||||||||||
Exercisable at December 31, 2014 | 4,551,660 | 0.13 | 0.17 | ||||||||||||||||||
Vested at December 31, 2014 | 6,120,912 | $ | 0.14 | $ | 0.16 | ||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2014: | |||||||||||||||||||||
OUTSTANDING | VESTED | ||||||||||||||||||||
Weighted | Remaining | Weighted | Remaining | ||||||||||||||||||
Average | Contractual | Aggregate | Average | Contractual | Aggregate | ||||||||||||||||
Exercise | Life | Intrinsic | Exercise | Life | Intrinsic | ||||||||||||||||
Options | Price | in Years | Value | Options | Price | in Years | Value | ||||||||||||||
5,486,002 | $ 0.13 | 7.7 | $ | 914,334 | 4,872,371 | $ 0.13 | 7.71 | $ | 812,062 | ||||||||||||
808,748 | $ 0.14 | 8 | $ | 130,478 | 562,290 | $ 0.14 | 8 | $ | 90,716 | ||||||||||||
508,729 | $ 0.15 | 8.05 | $ | 78,005 | 508,729 | $ 0.15 | 8.05 | $ | 78,005 | ||||||||||||
33,000 | $ 0.20 | 8 | $ | 3,300 | 16,477 | $ 0.20 | 8 | $ | 1,648 | ||||||||||||
375,000 | $ 0.27 | 8.28 | $ | 12,500 | 161,045 | $ 0.27 | 8.28 | $ | 5,368 | ||||||||||||
For the year ended December 31, 2014 the Company’s stock options had an intrinsic value between $0.03 and $0.17 as compared to the year ended December 31, 2013 which had an intrinsic value between $0.03 and $0.17. The Company recognized stock option expense of $96,604 and $378,998 for the year ended December 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||
In 2013 as part of the merger each outstanding option to purchase shares of eXp Realty International, Inc. were converted into options entitling the holder to purchase such number of shares of our common stock that is equal to 7.5 times the number of shares of eXp Realty International, Inc. This transaction required accounting recognition consistent with a modification of an award and the incremental cost associated with this modification to be recognized as of the date of modification. On September 27, 2013 the Company recognized an additional $512,197 of incremental cost associated with this conversion. | |||||||||||||||||||||
9_Income_Taxes
9. Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
9. Income Taxes | The components of the provision for income tax expense are as follows: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Federal | $ | – | $ | 743 | |||||
State | 3,843 | 800 | |||||||
Foreign | 6,307 | – | |||||||
10,150 | 1,543 | ||||||||
Deferred: | |||||||||
Federal | (70,849 | ) | – | ||||||
State | (10,654 | ) | – | ||||||
(81,503 | ) | – | |||||||
Total provision (benefit) for income taxes | $ | (71,353 | ) | $ | 1,543 | ||||
The Company is subject to United States federal and state income taxes at an approximate rate of 38.25%. The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax expense as reported is as follows: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Statutory tax rate | 38.25 | % | 35 | % | |||||
Permanent differences | 84.52 | % | -0.15 | % | |||||
Stock options | 0 | % | -3.12 | % | |||||
Foreign tax rate differential | 11.11 | % | 0 | % | |||||
Valuation allowance | (373.25 | )% | -31.73 | % | |||||
Total | (261.59 | )% | 0 | % | |||||
Deferred tax assets consist of the following at: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforward | $ | 64,544 | $ | 87,702 | |||||
Temporary differences | 16,959 | 8,602 | |||||||
Stock-based compensation | 377,833 | 311,918 | |||||||
Total gross deferred tax assets | 459,336 | 408,222 | |||||||
Less: valuation allowance | (384,140 | ) | (408,222 | ) | |||||
Net deferred tax assets | $ | 75,196 | $ | – | |||||
At December 31, 2014, the Company had federal net operating losses of approximately $150 thousand which will begin to expire in 2029 and could be subject to certain limitations under section 382 of the Internal Revenue Code. | |||||||||
The Company has provided a valuation allowance at December 31, 2014 and 2013 of $384,140 and $408,222 respectively for its net deferred tax assets as it cannot conclude it is more likely than not all of the estimated net deferred tax assets will be realized. The valuation allowance decreased by $24,082 and increased $354,541 in 2014 and 2013, respectively. | |||||||||
As of December 31, 2014 and 2013, the Company did not have any unrecognized tax benefits. The Company's policy is to recognize interest and penalties related to income tax matters in income tax expense. The Company currently has no federal or state tax examinations in progress nor has it had any federal or state tax examinations since its inception. | |||||||||
10_Related_Party_Transactions
10. Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
10. Related Party Transactions | As of December 31, 2013, the Company was indebted to the CEO of the Company for $18,232 for expenses paid for on behalf of the Company. Amounts due to related parties were non-interest bearing, unsecured and due on demand. |
The Company had advances outstanding to the current President in the amount of $6,000 and $8,200 as of December 31, 2014 and December 31, 2013 respectively. | |
In March of 2013 the former President of the Company agreed to forgive $1,519 for expenses paid on behalf of the Company. Also, in the same month another related party agreed to forgive $7,799 in expense reimbursements in association with settling other debts owed via the issuance of stock. See footnote 6 above for further details. | |
11_Commitments_and_Contingenci
11. Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
11. Commitments and Contingencies | Operating lease |
The Company has three operating leases for office space as of December 31, 2014. The non-cancelable leases expire on August 31, 2015, July 31, 2016 and November 30, 2016 respectively. Base monthly payments are $2,801 per month. At December 31, 2014 the remaining obligations under these arrangements due is $32,012 and $20,411 in 2015 and 2016, respectively. | |
Legal proceedings | |
The Company is subject to legal proceedings and claims that arise in the ordinary course of business. In the opinion of management the ultimate liability with respect to current proceedings and claims will not have a material adverse effect upon the Company’s financial position or results of operations. | |
We know of no material, active or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to our interest. |
12_Subsequent_Events
12. Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
12. Subsequent Events | In February of 2015 we re-purchased and retired 12,530 shares of our common stock for $3,133 in cash. |
In March of 2015 the shareholders approved and adopted the 2015 Equity Incentive Plan whereby 8,000,000 shares of common stock of the Company have been reserved to provide payments of various forms to incentivize employees, consultants, and directors of the Company. Additional information relating to this plan can be found in our Definitive Schedule 14C filed March 30, 2015 with the SEC. | |
2_Summary_of_Significant_Accou1
2. Summary of Significant Accounting Principles (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Basis of presentation and fiscal year | The accompanying audited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), and are expressed in US dollars. As disclosed in our 8-K filed September 27th, 2013 the Company has changed its fiscal year end to December 31. We may have reclassified certain amounts in prior-period financial statements to conform to the current period’s presentation. | ||
Principles of consolidation | The accompanying consolidated financial statements include the accounts of eXp Realty International Corporation and its subsidiaries eXp Acquisition Corp; eXp Realty, LLC; eXp Realty Washington, Inc.; eXp Realty of Canada, Inc.; and eXp Realty of Connecticut, LLC. All inter-company accounts and transactions have been eliminated upon consolidation. | ||
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. The Company regularly evaluates estimates and assumptions related provisions for doubtful accounts, legal contingencies, income taxes, revenue recognition, stock-based compensation, expense accruals, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. | ||
Cash and cash equivalents | The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. | ||
Restricted cash | The Company’s restricted cash balance of $141,508 and $38,198 at December 31, 2014 and 2013, respectively, consists of cash held by our brokers and agents on behalf real estate buyers that are in escrow. Since the Company does not have rights to the cash a corresponding customer deposit liability in the same amounts are recognized in the consolidated balance sheets. When a sales transaction closes the restricted cash transfers to the sellers and the corresponding deposit liability is reduced. | ||
Fair value | The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The methodology establishes consistency and comparability by providing a fair value hierarchy that prioritizes the inputs to valuation techniques into three broad levels, which are described below: | ||
• | Level 1 inputs are quoted market prices in active markets for identical assets or liabilities (these are observable market inputs). | ||
• | Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability (includes quoted market prices for similar assets or identical or similar assets in markets in which there are few transactions, prices that are not current or prices that vary substantially). | ||
• | Level 3 inputs are unobservable inputs that reflect the entity's own assumptions in pricing the asset or liability (used when little or no market data is available). | ||
The Company's financial instruments, including cash, accounts receivable, restricted cash, accounts payable, accrued expenses and other current liabilities are carried at cost, which approximates their fair value due to the short-term maturity of these instruments. | |||
Concentration of credit risk, significant customers, and significant suppliers | Concentration of credit risk, significant customers, and significant suppliers | ||
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, accounts receivable and restricted cash. | |||
The Company deposits its cash with financial institutions that management believes to be of high credit quality, and these deposits may, on occasion, exceed federally insured limits. | |||
A portion of the Company’s accounts receivable are derived from non-commission based technology fees. These accounts receivable are typically unsecured. Allowances for doubtful accounts are estimated based on historically collection experience and periodically reviewed by management. For the periods presented we did not experience any material bad debts. | |||
Foreign currency translation | Management has adopted ASC 740, Foreign Currency Translation Matters as it pertains to its foreign currency translation.The Company’s functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. | ||
Property and equipment | Property and equipment are stated at cost. Depreciation and amortization is computed using the straight-line method over the estimated useful lives. | ||
Computer hardware and software: 3 to 5 years | |||
Furniture, fixtures and equipment: 5 to 7 years | |||
Maintenance and repairs are expensed as incurred. Expenditures that substantially increase an asset’s useful life or improve an asset’s functionality are capitalized. | |||
Impairment of long-lived assets | In accordance with the accounting guidance for the impairment or disposal of long-lived assets, the Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost of disposal. As of the years ending December 31, 2014 and 2013, the Company has not recorded any charges for impairment of long-lived assets. | ||
Stock-based compensation | Stock-based compensation costs, consisting of restricted stock and options, for eligible employees, directors, and contractors are measured at fair value on the date of grant and are expensed over the requisite service period using a straight line method for each award. | ||
Revenue recognition | Revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service has been delivered, and collectability of the resulting receivable is reasonably assured. | ||
Commission Revenue | |||
The Company derives the majority of its revenue from commissions earned as agents in residential real estate transactions. Commission revenue is recognized upon closing of a transaction, net of any rebate or commission discount or transaction fee adjustment. Other commission revenue is generated from company leads, referrals, and other related fees. | |||
Non-Commission Revenue | |||
Non-commission revenues are derived primarily from agent and broker training fees, known as “eXp University tuition” and technology fees. Technology fee revenues are recognized over the term of the agreements as the contracted services are delivered. | |||
Advertising costs | Advertising costs are expensed as incurred and included in sales and marketing expense in the accompanying consolidated statements of operations. | ||
Income taxes | Deferred tax assets and liabilities arise from the differences between the tax basis of an asset or liability and its reported amount in the financial statements as well as from net operating loss and tax credit carry forwards. The measurement of current and deferred tax assets and liabilities is based on provisions of enacted tax laws; the effects of future changes in tax laws or rates are not anticipated. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense or benefit is the tax payable or refundable, respectively, for the period adjusted for the change during the period in deferred tax assets and liabilities. For U.S. income tax returns, the open taxation years subject to examination range from 2010 to 2014. In certain circumstances, the U.S. federal statute of limitations can reach beyond the standard three year period. | ||
Comprehensive income (loss) | Comprehensive income (loss) comprised of foreign currency loss of $1,542 and $0 for the years ended December 31, 2014 and 2013, respectively. | ||
Net income (loss) per share | Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of shares of common stock outstanding plus, if dilutive, potential common shares outstanding during the period. Potential common shares are composed of incremental shares of common stock issuable upon the exercise of potentially dilutive stock options. | ||
Recently issued accounting pronouncements | In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. The objective of this update is to 1) remove inconsistencies and weaknesses in revenue requirements, 2) provide a robust framework for addressing revenue recognition issues, 3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets 4) provide more useful information to users of financial statements through improved disclosure requirements, and 5) simplify the preparation of financial statements. This update is effective in annual reporting periods beginning after December 15, 2016 and the interim periods within that year. The Company will be evaluating the impact of this update as it pertains to the Company’s financial statements and other required disclosures on an on-going basis until its eventual adoption and incorporation. | ||
3_Prepaid_and_Other_Current_As1
3. Prepaid and Other Current Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Prepaid and other current assets | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Prepaid insurance | $ | 8,125 | $ | 10,434 | |||||
Prepaid expenses | 52,573 | 25,400 | |||||||
Rent deposits | 11,518 | 1,503 | |||||||
Other assets | 2,457 | 2,456 | |||||||
$ | 74,673 | $ | 39,793 |
4_Property_and_Equipment_Table
4. Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and equipment schedule | Year Ended December 31, | ||||||||
2014 | 2013 | ||||||||
Computer hardware and software | $ | 96,935 | $ | 15,219 | |||||
Furniture, fixture and equipment | 5,910 | – | |||||||
Total depreciable property and equipment | 102,845 | 15,219 | |||||||
Less: accumulated depreciation and amortization | (23,452 | ) | (9,878 | ) | |||||
Depreciable property, net | 79,393 | 5,341 | |||||||
Assets under development | – | 39,513 | |||||||
Property and equipment, net | $ | 79,393 | $ | 44,854 | |||||
5_Accrued_Expenses_Tables
5. Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Schedule of accrued expenses | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Commissions payable | $ | 115,090 | $ | 59,468 | |||||
Payroll payable | 43,544 | 27,443 | |||||||
Vacation payable | 27,703 | 22,247 | |||||||
Other accrued expenses | 20,986 | 21,086 | |||||||
$ | 207,323 | $ | 130,244 | ||||||
6_Notes_Payable_Tables
6. Notes Payable (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of debt | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Note Description | |||||||||
Note payable due to an individual, 3% interest compounding annually, principal and interest paid any-time prior to April 21, 2015 at the Company’s option. | $ | 61,887 | $ | 61,887 | |||||
Total notes payable | 61,887 | 61.887 | |||||||
Less: current portion | (61,887 | ) | – | ||||||
Notes payable, net of current portion | $ | – | $ | 61,887 | |||||
8_Stock_Based_Compensation_Tab
8. Stock Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Schedule of stock option activity | |||||||||||||||||||||
Options | Weighted Average Price | Intrinsic Value | |||||||||||||||||||
Balance, December 31, 2012 | 5,486,003 | 0.13 | 0.17 | ||||||||||||||||||
Granted | 2,187,997 | 0.17 | 0.13 | ||||||||||||||||||
Exercised | – | – | – | ||||||||||||||||||
Forfeited | – | – | – | ||||||||||||||||||
Balance, December 31, 2013 | 7,674,000 | 0.14 | 0.16 | ||||||||||||||||||
Granted | – | – | – | ||||||||||||||||||
Exercised | – | – | – | ||||||||||||||||||
Forfeited | (462,521 | ) | – | – | |||||||||||||||||
Balance, December 31, 2014 | 7,211,479 | 0.15 | 0.17 | ||||||||||||||||||
Exercisable at December 31, 2014 | 4,551,660 | 0.13 | 0.17 | ||||||||||||||||||
Vested at December 31, 2014 | 6,120,912 | $ | 0.14 | $ | 0.16 | ||||||||||||||||
Schedule of stock options outstanding | OUTSTANDING | VESTED | |||||||||||||||||||
Weighted | Remaining | Weighted | Remaining | ||||||||||||||||||
Average | Contractual | Aggregate | Average | Contractual | Aggregate | ||||||||||||||||
Exercise | Life | Intrinsic | Exercise | Life | Intrinsic | ||||||||||||||||
Options | Price | in Years | Value | Options | Price | in Years | Value | ||||||||||||||
5,486,002 | $ 0.13 | 7.7 | $ | 914,334 | 4,872,371 | $ 0.13 | 7.71 | $ | 812,062 | ||||||||||||
808,748 | $ 0.14 | 8 | $ | 130,478 | 562,290 | $ 0.14 | 8 | $ | 90,716 | ||||||||||||
508,729 | $ 0.15 | 8.05 | $ | 78,005 | 508,729 | $ 0.15 | 8.05 | $ | 78,005 | ||||||||||||
33,000 | $ 0.20 | 8 | $ | 3,300 | 16,477 | $ 0.20 | 8 | $ | 1,648 | ||||||||||||
375,000 | $ 0.27 | 8.28 | $ | 12,500 | 161,045 | $ 0.27 | 8.28 | $ | 5,368 |
9_Income_Taxes_Tables
9. Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Schedule of income tax expense | Year Ended December 31, | ||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Federal | $ | – | $ | 743 | |||||
State | 3,843 | 800 | |||||||
Foreign | 6,307 | – | |||||||
10,150 | 1,543 | ||||||||
Deferred: | |||||||||
Federal | (70,849 | ) | – | ||||||
State | (10,654 | ) | – | ||||||
(81,503 | ) | – | |||||||
Total provision (benefit) for income taxes | $ | (71,353 | ) | $ | 1,543 | ||||
Reconciliation of provision for income taxes | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Statutory tax rate | 38.25 | % | 35 | % | |||||
Permanent differences | 84.52 | % | -0.15 | % | |||||
Stock options | 0 | % | -3.12 | % | |||||
Foreign tax rate differential | 11.11 | % | 0 | % | |||||
Valuation allowance | (373.25 | )% | -31.73 | % | |||||
Total | (261.59 | )% | 0 | % | |||||
Schedule of deferred tax assets | Year Ended December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforward | $ | 64,544 | $ | 87,702 | |||||
Temporary differences | 16,959 | 8,602 | |||||||
Stock-based compensation | 377,833 | 311,918 | |||||||
Total gross deferred tax assets | 459,336 | 408,222 | |||||||
Less: valuation allowance | (384,140 | ) | (408,222 | ) | |||||
Net deferred tax assets | $ | 75,196 | $ | – | |||||
2_Summary_of_Significant_Accou2
2. Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended |
Dec. 31, 2014 | |
Computer Equipment [Member] | |
Property and equipment useful lives | 3 to 5 years |
Furniture and Fixtures [Member] | |
Property and equipment useful lives | 5 to 7 years |
3_Prepaid_and_Other_Current_As2
3. Prepaid and Other Current Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $8,125 | $10,434 |
Prepaid expenses | 52,573 | 25,400 |
Rent deposits | 11,518 | 1,503 |
Other assets | 2,457 | 2,456 |
Prepaid and other current assets | $74,673 | $39,793 |
4_Property_and_Equipment_Detai
4. Property and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property and equipment, gross | $102,845 | $15,219 |
Less: accumulated depreciation and amortization | -23,452 | -9,878 |
Depreciable property, net | 79,393 | 5,341 |
Assets under development | 0 | 39,513 |
Property and equipment, net | 79,393 | 44,854 |
Computer hardware and software [Member] | ||
Property and equipment, gross | 96,935 | 15,219 |
Furniture, fixtures and equipment [Member] | ||
Property and equipment, gross | $5,910 | $0 |
4_Property_and_Equipment_Detai1
4. Property and Equipment (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $14,493 | $4,442 |
5_Accrued_Expenses_Details
5. Accrued Expenses (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Payables and Accruals [Abstract] | ||
Commissions payable | $115,090 | $59,468 |
Payroll payable | 43,544 | 27,443 |
Vacation payable | 27,703 | 22,247 |
Other accrued expenses | 20,986 | 21,086 |
Total accrued expenses | $207,323 | $130,244 |
6_Notes_Payable_Details
6. Notes Payable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Disclosure [Abstract] | ||
Note payable, gross | $61,887 | $61,887 |
Less: current portion | -61,887 | 0 |
Notes payable, net of current portion | $0 | $61,887 |
6_Notes_Payable_Details_Narrat
6. Notes Payable (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Notes Payable Details Narrative | ||
Interest expense | $942 | $2,034 |
8_Stock_Based_Compensation_Opt
8. Stock Based Compensation - Option Activity (Details) (Stock Options, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Options | ||
Options | ||
Beginning balance | 7,674,000 | 5,486,003 |
Granted | 0 | 2,187,997 |
Exercised | 0 | 0 |
Forfeited | -462,521 | 0 |
Ending balance | 7,211,479 | 7,674,000 |
Exercisable | 4,551,660 | |
Vested | 6,120,912 | |
Weighted Average Price | ||
Beginning balance | $0.14 | $0.13 |
Granted | $0.17 | |
Exercised | ||
Forfeited | ||
Ending balance | $0.15 | $0.14 |
Exercisable | $0.13 | |
Vested | $0.14 | |
Intrinsic Value | ||
Beginning balance | $0.16 | $0.17 |
Granted | $0.13 | |
Ending balance | $0.17 | $0.16 |
Exercisable | $0.17 | |
Vested | $0.16 |
8_Stock_Based_Compensation_Det
8. Stock Based Compensation (Details-Outstanding and Vested Options) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Option 1 | |
Options outstanding | 5,486,003 |
Weighted average exercise price, options outstanding | $0.13 |
Remaining contractual life, options outstanding | 7 years 8 months 12 days |
Aggregate intrinsic value, options outstanding | $914,334 |
Options vested | 4,872,371 |
Weighted average exercise price, options vested | $0.13 |
Remaining contractual life, options vested | 7 years 8 months 12 days |
Aggregate intrinsic value, options vested | 812,062 |
Option 2 | |
Options outstanding | 808,748 |
Weighted average exercise price, options outstanding | $0.14 |
Remaining contractual life, options outstanding | 8 years |
Aggregate intrinsic value, options outstanding | 130,478 |
Options vested | 562,290 |
Weighted average exercise price, options vested | $0.14 |
Remaining contractual life, options vested | 8 years |
Aggregate intrinsic value, options vested | 90,716 |
Option 3 | |
Options outstanding | 508,729 |
Weighted average exercise price, options outstanding | $0.15 |
Remaining contractual life, options outstanding | 8 years 18 days |
Aggregate intrinsic value, options outstanding | 78,005 |
Options vested | 508,729 |
Weighted average exercise price, options vested | $0.15 |
Remaining contractual life, options vested | 8 years 18 days |
Aggregate intrinsic value, options vested | 78,005 |
Option 4 | |
Options outstanding | 33,000 |
Weighted average exercise price, options outstanding | $0.20 |
Remaining contractual life, options outstanding | 8 years |
Aggregate intrinsic value, options outstanding | 3,300 |
Options vested | 16,477 |
Weighted average exercise price, options vested | $0.20 |
Remaining contractual life, options vested | 8 years |
Aggregate intrinsic value, options vested | 1,648 |
Option 5 | |
Options outstanding | 375,000 |
Weighted average exercise price, options outstanding | $0.27 |
Remaining contractual life, options outstanding | 8 years 3 months 11 days |
Aggregate intrinsic value, options outstanding | 12,500 |
Options vested | 161,045 |
Weighted average exercise price, options vested | $0.27 |
Remaining contractual life, options vested | 8 years 3 months 11 days |
Aggregate intrinsic value, options vested | $5,368 |
8_Stock_Based_Compensation_Det1
8. Stock Based Compensation (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock option expense | $96,604 | $891,195 |
9_Income_Taxes_DetailsProvisio
9. Income Taxes (Details-Provision for income taxes) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | ||
Federal | $0 | $743 |
State | 3,843 | 800 |
Foreign | 6,307 | 0 |
Total Current | 10,150 | 1,543 |
Deferred: | ||
Federal | -70,849 | 0 |
State | -10,654 | 0 |
Total Deferred | -81,503 | 0 |
Total current and deferred income taxes | ($71,353) | $1,543 |
9_Income_Taxes_DetailsFederal_
9. Income Taxes (Details-Federal Statutory Rate) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Federal Statutory Tax Rate | 38.25% | 35.00% |
Permanent differences | 84.52% | -0.15% |
Stock options | 0.00% | -3.12% |
Valuation allowance | -373.25% | -31.73% |
Total Tax Expense | -261.59% | 0.00% |
9_Income_Taxes_DetailsDeferred
9. Income Taxes (Details-Deferred Tax Assets) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Tax Assets: | ||
Net operating loss carry-forwards | $64,544 | $87,702 |
Temporary differences | 16,959 | 8,602 |
Stock based compensation | 377,833 | 311,918 |
Deferred Tax Assets | 459,336 | 408,222 |
Less Valuation Allowance | -384,140 | -408,222 |
Net Deferred Tax Asset | $75,196 | $0 |
9_Income_Taxes_Details_Narrati
9. Income Taxes (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Federal net operating loss | $150,000 | |
Net operating loss expiration date | 31-Dec-29 | |
Change in valuation allowance | -24,082 | 354,541 |
Unrecognized tax benefits | $0 |
10_Related_Party_Transactions_
10. Related Party Transactions (Details Narrative) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Due to related parties | $0 | $18,232 |
Due from related parties | 6,000 | 8,200 |
Chief Executive Officer [Member] | ||
Due to related parties | 0 | 18,232 |
President [Member] | ||
Due from related parties | $6,000 | $8,200 |
11_Commitments_and_Contingenci1
11. Commitments and Contingencies (Details Narrative) (USD $) | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | |
Lease obligation 2015 | $32,012 |
Lease obligation 2016 | $20,411 |