Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 11, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | EXP Realty International Corp | |
Entity Central Index Key | 1,495,932 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
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 Common Stock, Shares Outstanding | 49,624,196 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 288,294 | $ 353,374 |
Restricted cash | 209,534 | 141,508 |
Accounts receivable, net of allowance $3,932 and $3,084, respectively | 284,178 | 183,026 |
Accounts receivable, related party | 3,523 | 6,000 |
Prepaids and other assets | 130,300 | 74,673 |
TOTAL CURRENT ASSETS | 915,829 | 758,581 |
OTHER ASSETS | ||
Fixed assets, net | 101,220 | 79,393 |
Deferred tax assets, non-current | 75,196 | 75,196 |
TOTAL OTHER ASSETS | 176,416 | 154,589 |
TOTAL ASSETS | 1,092,245 | 913,170 |
CURRENT LIABILITIES | ||
Accounts payable | 95,096 | 79,389 |
Customer deposits | 209,534 | 141,508 |
Accrued expenses | 364,449 | 207,323 |
Accrued interest | 10,322 | 9,397 |
Notes payable | 46,887 | 61,887 |
TOTAL CURRENT LIABILITIES | $ 726,288 | $ 499,504 |
Commitments and Contingencies | ||
STOCKHOLDERS' EQUITY / (DEFICIT) | ||
Common Stock, 7,700,000,000 shares, $0.00001 par value authorized; 49,624,196 and 48,566,909 issued and outstanding at June 30, 2015 and December 31, 2014, respectively | $ 496 | $ 486 |
Additional paid-in capital | 6,806,075 | 1,824,361 |
Accumulated deficit | (6,424,610) | (1,409,639) |
Accumulated other comprehensive income (loss) | (16,004) | (1,542) |
TOTAL EQUITY / (DEFICIT) | 365,957 | 413,666 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY / (DEFICIT) | $ 1,092,245 | $ 913,170 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3,932 | $ 3,084 |
Common stock shares authorized | 7,700,000,000 | 7,700,000,000 |
Common stock par value | $ 0.00001 | $ 0.00001 |
Common stock shares issued | 49,624,196 | 48,566,909 |
Common stock shares outstanding | 49,624,196 | 48,566,909 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Net Revenues | $ 5,584,963 | $ 3,550,011 | $ 9,034,204 | $ 5,934,080 |
Operating expenses | ||||
Cost of revenues | 4,767,527 | 2,978,108 | 7,645,271 | 4,999,315 |
General and administrative | 5,669,105 | 468,398 | 6,119,041 | 855,238 |
Professional fees | 98,832 | 50,205 | 175,435 | 129,847 |
Sales and marketing | 43,006 | 15,502 | 89,363 | 29,950 |
Total expenses | 10,578,470 | 3,512,213 | 14,029,110 | 6,014,350 |
Net loss from operations | (4,993,507) | 37,798 | (4,994,906) | (80,270) |
Other income and (expenses) | ||||
Other income | 2,897 | 1,598 | 6,583 | 4,212 |
Interest expense | (464) | (465) | (925) | (930) |
Total other income | 2,433 | 1,133 | 5,658 | 3,282 |
Income (loss) before income tax expense | (4,991,074) | 38,931 | (4,989,248) | (76,988) |
Income tax (expense) | (7,080) | (500) | (25,723) | (500) |
Net income (loss) | $ (4,998,154) | $ 38,431 | $ (5,014,971) | $ (77,488) |
Net income (loss) per share - basic and diluted | $ (0.10) | $ 0 | $ (0.10) | $ 0 |
Weighted average shares outstanding - basic and diluted | 49,182,952 | 48,014,970 | 48,955,168 | 47,944,736 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation gain (loss) | $ (5,050) | $ 949 | $ (14,462) | $ (58) |
Comprehensive income (loss) | $ (5,003,204) | $ 39,380 | $ (5,029,433) | $ (77,546) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net loss | $ (5,014,971) | $ (77,488) |
Adjustments to reconcile net loss to cash provided by operating activities: | ||
Depreciation | 13,147 | 2,225 |
Stock compensation expense | 772,125 | 59,233 |
Stock option expense | 4,212,731 | 51,714 |
Changes in operating assets and liabilities | ||
Accounts receivable | (101,152) | (94,589) |
Accountants receivable, related party | 2,477 | 250 |
Prepaids and other assets | (55,627) | (43,339) |
Accounts payable | 15,707 | 4,344 |
Accrued expenses | 157,126 | 188,343 |
Due to related parties | 0 | (12,471) |
Accrued interest | 925 | 930 |
CASH PROVIDED BY OPERATING ACTIVITIES | 2,488 | 79,152 |
INVESTMENT ACTIVITIES | ||
Acquisition of property and equipment | (34,974) | (33,000) |
CASH USED IN INVESTMENT ACTIVITIES | (34,974) | (33,000) |
FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock | 0 | 59,450 |
Repurchase and retirement of shares | (3,132) | 0 |
Principal payments of notes payable | (15,000) | 0 |
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (18,132) | 59,450 |
Net change in cash | (50,618) | 105,602 |
Effect of foreign exchange on cash | (14,462) | (58) |
Cash and cash equivalents, beginning of period | 353,374 | 100,056 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 288,294 | 205,600 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS FOR: | ||
Cash paid for interest | 0 | 0 |
Cash paid for taxes | $ 25,723 | $ 500 |
1. Background and Basis of Pres
1. Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
1. Background and Basis of Presentation | 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. 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. The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month period ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
2. Summary of Significant Accounting Policies | Basis of Presentation and Fiscal Year The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States, and are expressed in US dollars. All material intercompany accounts and transactions have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in conformity with US generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to 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 Companys estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Foreign currency translation The Companys functional and reporting currency is the United States dollar. Occasional transactions may occur in Canadian dollars and management has adopted ASC 830, Foreign Currency Translation Matters. 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. Other Comprehensive Loss Other comprehensive loss for the six months ended June 30, 2015 and June 30, 2014 consisted of foreign exchange translation in the amount of $14,462 and $58, respectively. Recently Issued Accounting Pronouncements There have been no recently issued accounting pronouncements through the date of this report that the Company believes will have a material impact on the financial position, results of operations, or cash flows. |
3. Related Party Transactions
3. Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
3. Related Party Transactions | The Company had advances outstanding to the current President in the amount of $3,523 and $6,000 as of June 30, 2015 and December 31, 2014 respectively. |
4. Stockholders' Equity
4. Stockholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
4. Stockholders' Equity | In February of 2015 we re-purchased and retired 12,530 shares of our common stock for $3,132 in cash. During the six months ended June 30, 2015, the Company issued 1,069,817 restricted shares of common stock to directors, employees, and contractors for services totaling $772,115. |
5. Stock Based Compensation
5. Stock Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
5. Stock Based Compensation | At June 30, 2015 the Company had 7,211,479 stock options outstanding that were granted prior to Company becoming public in September 2013, which the Company accounts for based on the intrinsic value method and re-measures the intrinsic value at each reporting date through the date of exercise or other settlement. Compensation cost or benefit is recognized based on the change in intrinsic value at each reporting date. For the six months ended June 30, 2015 the Companys stock options had intrinsic values between $0.03 and $0.81 and the Company recognized a stock option expense of $4.21 million, which consists of a $4.08 million change in intrinsic value and $123 thousand in current vesting costs. For the six months ended June 30, 2014 the Companys stock options had intrinsic values between $0.03 and $0.17 and recognized an expense of $28 thousand. During the six months ended June 30, 2015 the Company granted 217,750 stock options and has elected to account for fair value u xpected volatility has been determined using the historical stock price. The expected term of options represents the period of time that options granted are expected to be outstanding giving consideration to vesting schedule. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected term of the stock options. The Company has not paid and does not anticipate paying dividends on its common stock; therefore, the expected dividend yield is assumed to be zero. |
6. Commitments and Contingencie
6. Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
6. Commitments and Contingencies | 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 Companys financial position or results of operations. |
2. Summary of Significant Acc12
2. Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Fiscal Year | Basis of Presentation and Fiscal Year The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States, and are expressed in US dollars. All material intercompany accounts and transactions have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to 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 Companys estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Foreign currency translation | Foreign currency translation The Companys functional and reporting currency is the United States dollar. Occasional transactions may occur in Canadian dollars and management has adopted ASC 830, Foreign Currency Translation Matters. 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. |
Other Comprehensive Loss | Other Comprehensive Loss Other comprehensive loss for the six months ended June 30, 2015 and June 30, 2014 consisted of foreign exchange translation in the amount of $14,462 and $58, respectively. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements There have been no recently issued accounting pronouncements through the date of this report that the Company believes will have a material impact on the financial position, results of operations, or cash flows. |
2. Summary of Significant Acc13
2. Summary of Significant Accounting Principles (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accounting Policies [Abstract] | ||||
Foreign exchange translation loss | $ (5,050) | $ 949 | $ (14,462) | $ (58) |
3. Related Party Transactions (
3. Related Party Transactions (Details Narrative) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Related Party Transactions [Abstract] | ||
Due from related parties | $ 3,523 | $ 6,000 |
4. Stockholders' Equity (Detail
4. Stockholders' Equity (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Equity [Abstract] | ||
Shares repurchased and retired, shares | 12,530 | |
Shares repurchased and retired, value | $ 3,132 | $ 0 |
Stock issued to directors and employees for services, shares | 1,069,817 | |
Stock issued to directors and employees for services, value | $ 772,115 |
5. Stock Based Compensation (De
5. Stock Based Compensation (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Stock option expense | $ 4,212,731 | $ 51,714 |
Stock Options | ||
Stock options outstanding | 7,211,479 | |
Intrinsic stock price range | $0.03 to $0.81 | $0.03 and $0.17 |
Stock option expense | $ 4,210,000 | $ 28,000 |
Change in intrinsic value | 4,080,000 | |
Current vesting costs | $ 123,000 | |
Stock options granted, shares | 217,750 | |
Stock option expense for options granted | $ 6,317 |