Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | EXP World Holdings, Inc. | |
Entity Central Index Key | 0001495932 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 61,676,924 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Cash and cash equivalents | $ 20,771,971 | $ 20,538,057 |
Restricted cash | 4,193,802 | 2,502,591 |
Accounts receivable, net of allowance $297,567 and $484,441, respectively | 29,693,641 | 17,428,091 |
Prepaids and other assets | 1,792,756 | 1,857,988 |
TOTAL CURRENT ASSETS | 56,452,170 | 42,326,727 |
OTHER ASSETS: | ||
Fixed Assets, net | 3,153,814 | 2,739,525 |
Operating lease right-of-use assets | 291,689 | |
Intangible assets, net | 2,458,678 | 2,531,669 |
Goodwill | 8,248,107 | 8,248,107 |
TOTAL ASSETS | 70,604,458 | 55,846,028 |
CURRENT LIABILITIES | ||
Accounts payable | 1,300,295 | 1,758,377 |
Customer deposits | 4,193,802 | 2,502,591 |
Accrued expenses | 30,764,719 | 18,976,435 |
Current portion of long-term payable | 974,659 | 974,659 |
Current portion of lease obligation - operating lease | 79,538 | |
TOTAL CURRENT LIABILITIES | 37,313,013 | 24,212,062 |
Long term payable, net of current portion | 1,716,853 | 1,654,337 |
Long term lease obligation - operating lease | 212,214 | |
TOTAL LIABILITIES | 39,242,080 | 25,866,399 |
STOCKHOLDERS' EQUITY: | ||
Common Stock, $0.00001 par value 220,000,000 shares authorized; 61,499,843 issued and 61,142,091 outstanding at March 31, 2019, 60,609,102 issued and 60,609,102 outstanding at December 31, 2018 | 612 | 606 |
Additional paid-in capital | 102,066,398 | 90,755,616 |
Treasury stock, at cost: 357,752 shares held at March 31, 2019 | (3,647,076) | |
Accumulated deficit | (67,061,089) | (60,765,266) |
Accumulated other comprehensive income (loss) | 3,533 | (11,327) |
TOTAL STOCKHOLDERS' EQUITY | 31,362,378 | 29,979,629 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 70,604,458 | $ 55,846,028 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Allowance for doubtful accounts | $ 297,567 | $ 484,441 |
Common stock shares authorized | 220,000,000 | 220,000,000 |
Common stock par value | $ 0.00001 | $ 0.00001 |
Common stock shares issued | 61,499,843 | 60,609,102 |
Common stock shares outstanding | 61,142,091 | |
Treasury stock, shares | 357,752 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Revenues | $ 157,033,632 | $ 61,962,531 |
Operating expenses: | ||
Commissions and other agent-related costs | 142,542,405 | 55,701,516 |
General and administrative | 19,700,772 | 16,281,113 |
Sales and marketing | 888,850 | 645,797 |
Total operating expenses | 163,132,027 | 72,628,426 |
Net loss from operations | (6,098,395) | (10,665,895) |
Other income and (expenses): | ||
Other income and (expenses) | (80,976) | |
Interest income (expense) | 46,245 | |
Total other income and (expenses) | (34,731) | |
Loss before income tax expense | (6,133,126) | (10,665,895) |
Income tax expense | (162,697) | (30,450) |
Net loss | $ (6,295,823) | $ (10,696,345) |
Net loss per share attributable to common sharesholders - Basic from continuing operations | $ (0.10) | $ (0.19) |
Net loss per share attributable to common sharesholders - Diluted from continuing operations | $ (0.10) | $ (0.19) |
Weighted average shares outstanding - Basic | 60,749,378 | 56,193,753 |
Weighted average shares outstanding - Diluted | 60,749,378 | 56,193,753 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net loss | $ (6,295,823) | $ (10,696,345) |
Other comprehensive loss: | ||
Foreign currency translation adjustments, net of tax | 14,860 | (1,275) |
Comprehensive loss | $ (6,280,963) | $ (10,697,620) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning balance, shares at Dec. 31, 2017 | 54,980,272 | |||||
Beginning balance, value at Dec. 31, 2017 | $ 550 | $ 36,848,041 | $ (32,596,374) | $ 8,454 | $ 4,260,671 | |
Exercise of options, shares issued | 1,071,407 | |||||
Exercise of options, value | $ 10 | 264,345 | 264,355 | |||
Stock compensation expense, shares | 61,598 | |||||
Stock compensation expense, value | $ 1 | 8,279,108 | 8,279,109 | |||
Stock option expense | 1,301,702 | 1,301,702 | ||||
Agent equity program, shares | 208,324 | |||||
Agent equity program, value | $ 2 | 2,370,002 | 2,370,004 | |||
Foreign currency translation adjustment | (1,275) | (1,275) | ||||
Net loss | (10,696,345) | (10,696,345) | ||||
Ending balance, shares at Mar. 31, 2018 | 56,321,601 | |||||
Ending balance, value at Mar. 31, 2018 | $ 563 | 49,063,198 | (43,292,719) | 7,179 | 5,778,221 | |
Beginning balance, shares at Dec. 31, 2017 | 54,980,272 | |||||
Beginning balance, value at Dec. 31, 2017 | $ 550 | 36,848,041 | (32,596,374) | 8,454 | 4,260,671 | |
Ending balance, shares at Dec. 31, 2018 | 60,609,102 | |||||
Ending balance, value at Dec. 31, 2018 | $ 606 | 90,755,616 | (60,765,266) | (11,327) | $ 29,979,629 | |
Exercise of options, shares issued | 134,260 | 134,260 | ||||
Exercise of options, value | $ 1 | 215,725 | $ 215,726 | |||
Stock compensation expense, shares | 136,194 | |||||
Stock compensation expense, value | $ 1 | 3,669,320 | 3,669,321 | |||
Stock option expense | 1,215,448 | 1,215,448 | ||||
Agent equity program, shares | 620,287 | |||||
Agent equity program, value | $ 4 | 6,210,289 | 6,210,293 | |||
Foreign currency translation adjustment | 14,860 | 14,860 | ||||
Net loss | (6,295,823) | (6,295,823) | ||||
Ending balance, shares at Mar. 31, 2019 | 61,499,843 | 357,752 | ||||
Ending balance, value at Mar. 31, 2019 | $ 612 | $ (3,647,076) | $ 102,066,398 | $ (67,061,089) | $ 3,533 | 31,362,378 |
Repurchase and retirement of common stock, shares | 357,752 | |||||
Repurchase and retirement of common stock, value | $ (3,647,076) | $ (3,647,076) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
OPERATING ACTIVITIES | ||
Net loss | $ (6,295,823) | $ (10,696,345) |
Adjustments to reconcile net loss to cash provided by operating activities: | ||
Depreciation expense | 367,287 | 183,321 |
Stock compensation expense | 3,669,321 | 8,279,109 |
Stock option expense | 1,215,448 | 1,301,702 |
Agent equity program | 6,210,293 | 2,370,004 |
Change in stock payable | 62,516 | |
Changes in operating assets and liabilities; | ||
Accounts receivable | (12,263,873) | (2,175,888) |
Prepaids and other assets | 111,575 | (91,961) |
Customer deposits | 1,675,556 | 847,406 |
Accounts payable | 44,888 | 115,570 |
Accrued expenses | 11,787,112 | 4,655,504 |
Noncash lease expense | 63 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 6,657,355 | 4,788,422 |
INVESTING ACTIVITIES | ||
Purchase of fixed assets | (827,919) | (513,521) |
Payment for business acquisition and intangibles | (500,000) | |
NET CASH USED IN INVESTING ACTIVITIES | (1,327,919) | (513,521) |
FINANCING ACTIVITIES | ||
Repurchase of common stock | (3,647,076) | |
Proceeds from exercise of options | 215,726 | 264,355 |
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (3,431,350) | 264,355 |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | 27,039 | (23,033) |
Net change in cash, cash equivalents and restricted cash | 1,925,125 | 4,516,223 |
Cash, cash equivalents and restricted cash, beginning of period | 23,040,648 | 5,595,227 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | 24,965,773 | 10,111,450 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Cash paid for interest | 18,460 | |
Cash paid for income taxes | 100,289 | 30,450 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Recognition of right of use assets and lease liability upon adoption of new accounting standard | 317,629 | |
Fixed asset purchases in accounts payable | $ 46,343 | $ 71,890 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2019 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION eXp World Holdings, Inc. (the “Company” or “we” or “eXp”) was incorporated in the State of Delaware on July 30, 2008. Through various operating subsidiaries, the Company operates a cloud-based real estate brokerage operating in all U.S. States, the District of Columbia and the provinces of Alberta, British Columbia and Ontario, Canada. The Company focuses on a number of cloud-based technologies 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. We have reclassified certain amounts in prior-period financial statements to conform to the current period’s presentation. These interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the SEC on March 18, 2019. In our opinion, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Operating results for the three-month period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of eXp World Holdings, Inc., and its subsidiaries. All inter-company accounts and transactions have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. 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 Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Restricted Cash Restricted cash consists of cash held in escrow by the Company’s brokers and agents on behalf of real estate buyers. The Company recognizes a corresponding customer deposit liability until the funds are released. Restricted cash totaled $4,193,802 and $1,770,599 at March 31, 2019 and March 31, 2018, respectively. March 31, 2019 March 31, 2018 Cash and cash equivalents $ 20,771,971 $ 8,340,851 Restricted cash 4,193,802 1,770,599 Total cash, cash equivalents, and restricted cash $ 24,965,773 $ 10,111,450 Goodwill and Intangible Assets Goodwill represents the excess of the consideration paid over the estimated fair value of assets acquired and liabilities assumed in a business combination. We do not amortize goodwill but test goodwill for impairment on an annual basis in November of each year or when a triggering event occurs that would indicate a reduction in its fair value below its carrying value. Acquired intangible assets with finite useful lives are amortized over their estimated useful lives and are reviewed for impairment annually in November of each year or when facts or circumstances suggest that the carrying value of these assets may not be recoverable. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates and market factors. Estimating the fair value of individual reporting units requires us to make assumptions and estimates regarding significant changes or planned changes in the use of the assets, as well as industry and economic conditions. These assumptions and estimates include projected revenues and income growth rates, terminal growth rates, competitive and consumer trends, market-based discount rates, and other market factors. If current expectations of future growth rates are not met or market factors outside of our control, such as discount rates, change significantly, then our goodwill or intangible assets may become impaired. Additionally, as goodwill and intangible assets associated with recently acquired businesses are recorded on the balance sheet at their estimated acquisition date fair values, those amounts are more susceptible to impairment risk if business operating results or macroeconomic conditions deteriorate. Stock based compensation The Company accounts for all stock-based compensation granted to employees and non-employees using a fair value method. Stock-based compensation awarded to employees is measured at the grant date fair value and is recognized over the requisite service period of the awards, usually the vesting period, on a straight-line basis, net of forfeitures. Accruals of compensation cost for an award with a performance condition are based on the probable outcome of that performance condition. Compensation cost is accrued if it is probable that the performance condition will be achieved and is not accrued if it is not probable that the performance condition will be achieved. The Company reduces recorded stock-based compensation for forfeitures when they occur. Revenue Recognition The Company generates substantially all of its revenue from real estate brokerage services and generates a de minimis portion of its revenues from software subscription and professional services. Real Estate Brokerage Services The Company serves as a licensed broker in the areas in which it operates for the purpose of processing residential real estate transactions. The Company is contractually obligated to provide services for the fulfillment of transfers of residential real estate between buyers and sellers. The Company provides these services itself and controls the service necessary to legally transfer the residential real estate. Correspondingly, the Company is defined as the Principal. The Company, as Principal, satisfies its obligation upon the closing of a residential real estate transaction. As Principal, and upon satisfaction of our obligation, the Company recognizes revenue in the gross amount of consideration to which we expect to be entitled to. Revenue is derived from assisting home buyers and sellers in listing, marketing, selling and finding residential real estate. Commissions earned on real estate transactions are recognized at the completion of a residential real estate transaction once we have satisfied our performance obligation. Software Subscription and Professional Services Subscription revenue is derived from fees from our customers to access the Company’s virtual reality software platform. The terms of our subscriptions do not provide customers the right to take possession of the software. Subscription revenue is generally recognized ratably over the contract term. Professional services revenue is derived from implementation and consulting services. Professional services revenue is typically recognized over time as the services are rendered, using an efforts-expended (labor hours) input method. Change in Accounting Principle and Recently Adopted Accounting Principles In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). ASU 2016-02 is intended to improve financial reporting of leasing transactions by requiring organizations that lease assets to recognize assets and liabilities for the rights and obligations created by leases that extend more than twelve months on the balance sheet. This accounting update also requires additional disclosures surrounding the amount, timing, and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU No. 2018-11 – Leases (Topic 842) – Targeted Improvements. The amendments in ASU No. 2018-11 provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with GAAP (Topic 840, Leases). An entity that elects this additional (and optional) transition method must provide the required Topic 840 disclosures for all periods that continue to be in accordance with Topic 840. The amendments do not change the existing disclosure requirements in Topic 840 (for example, they do not create interim disclosure requirements that entities previously were not required to provide). The Company adopted ASU No. 2016-02 effective January 1, 2019 using the modified retrospective approach whereby the cumulative effect of adoption was recognized on the adoption date and prior periods were not restated. There was no net cumulative effect adjustment to retained earnings as of January 1, 2019 as a result of this adoption. This standard did not have a material impact on the Company’s balance sheets or cash flows from operations and had no impact on the Company’s operating results. The most significant impact was the recognition of ROU assets and lease obligations on the balance sheet upon adoption on January 1, 2019. The Company elected to utilize the transition guidance accounting policy elections available including, not recording a Right-of-Use (ROU) lease asset and lease obligation for short term leases, to not separate lease and non-lease components, and apply a portfolio discount rate to all leases similar in nature and term. With the adoption of ASU 2016-02, the Company determines if an arrangement is a lease at inception and performed a lease classification assessment. Based on this assessment, the Company concluded it only has operating leases. Leases are included in ROU lease assets, current portion of lease obligations, and long-term lease obligations on the Company’s balance sheet. As of March 31, 2019, the Company only has operating leases. Certain arrangements previously considered leases under Topic 840 were determined to not be leases under Topic 842. Lease expense for short-term leases is recorded in the Company’s Statements of Operations as incurred. ROU lease assets represent the Company’s right to use an underlying asset for the lease term and lease obligations represent the Company’s obligation to make lease payments arising from the lease. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. The Company has determined to not separate lease components from nonlease components in the lease payments for its office space leases, which are currently the only leases the Company has under Accounting Standards Codification (ASC) 842. The rate implicit in the lease was not readily determinable in the lease arrangements and as such, the Company used its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company calculated the rate utilizing the rate on our secured line of credit adjusted for the average lease term of 3 years. The ROU lease asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms include options to extend the lease when it is reasonably certain that the Company will exercise its option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. In January 2017, the FASB issued ASU No. 2017-04 – Intangibles – Goodwill and Oher (Topic 350). This ASU eliminates Step 2 from the goodwill impairment test. Under ASU No. 2017-04, if a reporting unit’s carrying amount exceeds its fair value, the entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. Previously, if the fair value of a reporting unit was lower than its carrying amount (Step 1), an entity was required to calculate any impairment charge by comparing the implied fair value of goodwill with its carrying amount (Step 2). Additionally, under ASU No. 2017-04, entities that have reporting units with zero or negative carrying amounts will no longer be required to perform the qualitative assessment to determine whether to perform Step 2 of the goodwill impairment test. As a result, reporting units with zero or negative carrying amounts will generally be expected to pass the simplified impairment test; however, additional disclosure will be required of those entities. This ASU is effective in fiscal years beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The new guidance must be adopted on a prospective basis. The Company adopted ASU No. 2017-04 effective January 1, 2019. The Company does not expect any significant adjustments to our financials or our disclosures under the new guidance. Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), which eliminates certain disclosure requirements for fair value measurements and requires new or modified disclosures. ASU No. 2018-13 is effective beginning January 1, 2020; early adoption is permitted. Certain changes are applied retrospectively to each period presented and others are to be applied either in the period of adoption or prospectively. The Company is still assessing the impact of ASU No. 2018-13. The Company does not expect the amendments of ASU No. 2018-13 will have a significant impact on the Company’s financial statements and related disclosures. . |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2019 | |
ACQUISITIONS [Abstract] | |
ACQUISITIONS | 3. ACQUISITIONS VirBELA On November 29, 2018, (the “Acquisition Date”), the Company and its newly formed subsidiary, eXp World Technologies, LLC (Purchaser) acquired substantially all the assets of VirBELA, LLC (VirBELA), a California limited liability company. VirBELA provides a cloud-based environment focused on educational and innovative learning technologies to enhance global education experiences that empower individuals, teams, and organizations for clients in various industries. Its model allows for a level of engagement and participation that can typically only be achieved with face-to-face instruction. Its proprietary immersive 3D campus, which supports blended learning and big data assessment, is highly customizable to meet the branding and educational needs of clients. VirBELA developed the Company’s current cloud campus called eXp World, which provides 24/7 access to collaborative tools, training and socialization for the Company’s real estate agents and employees. The acquisition of VirBELA’s core group of products and services will allow eXp Realty to continue to accelerate its business in a sustainable and innovative way, which is consistent with eXp World Holdings’ vision to expand the product offering to agents, teams and others who could benefit from their own, always available environments for collaboration. The Company acquired the assets of VirBELA for a total purchase price of $10,607,800, consisting of cash of $7,000,000 and shares of the Company’s common stock valued at $3,607,800. A cash payment of $6,500,000 was paid at closing and 97,371 shares of the Company restricted common stock having a value of $1,000,000 was issued at closing. On the acquisition date, the Company held $500,000 in accounts payable to secure the Seller’s performance of certain post close obligations. During the three months ended March 31, 2019, the Seller performed its post close obligations and the $500,000 was paid to the Seller. The remaining shares of the Company’s common stock will be issued having a value of $1,000,000 on each of the first, second and third anniversaries of the Acquisition Date. The present value of future deliveries of eXp World Holdings, Inc. stock, calculated using a discount rate of 10%, is $2,607,800, which represents fair value as of the Acquisition Date. The discount of $392,200 will be amortized over the reporting periods using the effective interest method during Fiscal years 2019, 2020 and 2021. For the period ended March 31, 2019, the discount amortization was $62,516. The following table shows the allocation of the purchase price of VirBELA, LLC to the acquired identifiable assets, and goodwill: Accounts receivable $ 4,273 Inventory 968 Fixed assets 23,452 Intangible assets 2,331,000 Goodwill 8,248,107 Total purchase price $ 10,607,800 The Acquisition was accounted for in accordance with ASC 805, Business Combinations , using the acquisition method of accounting. Under the acquisition method of accounting, the Company allocated the total purchase price to the tangible and identifiable intangible assets acquired based on their estimated fair values as of the acquisition date, as determined by management. The excess of the purchase price over the aggregate fair values of the identifiable assets was recorded as goodwill. Goodwill generated from the Acquisition was primarily attributable to an assembled workforce and planned expansion of VirBELA into new markets. The purchase price allocation to identifiable intangible assets acquired in the VirBELA acquisition was: Tradename $ 1,169,000 Existing Technology 297,000 Non-competition agreements 125,000 Customer contracts 740,000 Total intangible assets purchased $ 2,331,000 The allocation of the fair value of the acquired business was based on valuations of the estimated net fair value of the assets acquired. The fair value estimates of the assets acquired are subject to adjustment during the measurement period (up to one year from the Acquisition Date). For tax purposes, goodwill is amortized over 15 years and this amortization is tax deductible. The fair values of these net assets acquired are based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. During the measurement period, we will adjust valuations assigned to assets and liabilities if new information is obtained about facts and circumstances that existed as of the Acquisition Date, if any, that, if known, would have resulted in revised values for these items as of that date. The impact of all changes, if any, that do not qualify as measurement period adjustments will be included in current period earnings. The Company used carrying values as of the Acquisition Date to value trade receivables, inventory, and fixed assets, as we determined that they represented the fair value of those items at the Acquisition Date. The Company valued the VirBELA tradename using an Income Approach known as the Relief from Royalty method. We applied a royalty rate of 1.0% to the VirBELA tradename. Once the royalty savings were calculated, we converted to a value using a discounted cash flow technique using a discount rate of 14.0%, to arrive at the estimated fair value. The VirBELA tradename is new and is not a mature brand name. Tradenames are being amortized over its estimated useful life of 10 years. Similar to the valuation of tradenames, we valued existing technology using the Relief from Royalty method. We applied a royalty rate of 5.0% to the VirBELA technology. Once the royalty savings were calculated, we converted to a value using a discounted cash flow technique using a discount rate of 14.0% to arrive at the estimated fair value of existing technology. Existing technology is being amortized over its estimated useful life of five years. We estimated a useful life of five years since the software will continue to be modified and changed over the next several years making it significantly different than the software acquired today. The Company valued non-competition agreements using a Loss Profits method. We prepared two projections of net income for the business. One projection which assumed the non-competition agreements were in place and one projection which assumed that no non-competition agreements were in place. The difference in cash flows from these two projections over the life of the non-competition agreements was discounted to present value at a rate of 14.0% to arrive at the estimated fair value of the non-competition agreements. Non-competition agreements are being amortized over their useful lives of three years which is equal to the contractual life of the non-competition agreements. The Company valued customer contracts using the Multi-Period Excess Earnings Method (MPEEM). In the MPEEM, value is estimated as the present value of the benefits anticipated from ownership of the subject intangible asset in excess of the returns on the contributory assets required to realize those benefits. Taxes have been estimated based upon an effective total state and federal tax rate of 29.4% and the projected return on net assets was 14.0%. These inputs were used to determine an estimated fair value of customer contracts. Customer contracts are being amortized over their estimated useful lives of 10 years. During the year ended December 31, 2018, the Company incurred total acquisition costs of $141,498. The acquisition costs were primarily related to legal, accounting and consulting services and were expensed as incurred through December 31, 2018 and are included in General and Administrative expenses in the Consolidated Statements of Operations. From the Acquisition date, the results of operations of VirBELA have been included in and are immaterial to our condensed consolidated financial statements. Pro forma revenue and results of operations have not been presented, being the historical results of VirBELA are not material to our condensed consolidated statements of operations in any period presented. |
FIXED ASSETS, NET
FIXED ASSETS, NET | 3 Months Ended |
Mar. 31, 2019 | |
FIXED ASSETS, NET | |
FIXED ASSETS, NET | 4. FIXED ASSETS, NET Fixed assets, net consisted of the following: Three Ended March 31, As of As of March 31, 2019 December 31, 2018 Computer hardware and software $ 4,727,360 $ 3,925,129 Furniture, fixture and equipment 5,910 5,910 Total depreciable property and equipment 4,733,270 3,931,039 Less: accumulated depreciation and amortization (1,687,390) (1,320,103) Depreciable property, net 3,045,880 2,610,936 Assets under development 107,934 128,589 Fixed assets, net $ 3,153,814 $ 2,739,525 Depreciation expense for the three months ended March 31, 2019 and 2018 was $367,287 and $ 183,321 , respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2019 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 5. GOODWILL AND INTANGIBLE ASSETS Goodwill was $8,248,107 as of March 31, 2019 and December 31, 2018. Goodwill was recorded in connection with the acquisition of VirBELA in November 2018 and represents fair value as of the acquisition date. No events have occurred that indicated it was more likely than not goodwill was impaired. Definite-Lived intangible assets were as follows: As of March 31, 2019 Gross Accumulated Net Carrying Amount Amortization Amount Trade name $ 1,169,000 $ (38,967) $ 1,130,033 Existing technology 297,000 (19,800) 277,200 Non-competition agreements 125,000 (13,889) 111,111 Customer contracts 740,000 (24,666) 715,334 Software 225,000 — 225,000 Total $ 2,556,000 $ (97,322) $ 2,458,678 As of December 31, 2018 Gross Accumulated Net Carrying Amount Amortization Amount Trade name $ 1,169,000 $ (9,742) $ 1,159,258 Existing technology 297,000 (4,950) 292,050 Non-competition agreements 125,000 (3,472) 121,528 Customer contracts 740,000 (6,167) 733,833 Software 225,000 — 225,000 Total $ 2,556,000 $ (24,331) $ 2,531,669 Definite-lived intangible assets were recorded in connection with the acquisition of VirBELA in November 2018. Amortization expense for definite-lived intangible assets for three months ended March 31, 2019 and 2018 were $72,991 and zero, respectively. We estimate expected amortization related to definite-lived intangible assets at March 31, 2019 will be: Expected amortization Remaining 2019 $ 293,975 2020 366,967 2021 363,494 2022 250,300 2023 245,350 2024 and thereafter 938,592 Total $ 2,458,678 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 3 Months Ended |
Mar. 31, 2019 | |
STOCKHOLDERS’ EQUITY | |
STOCKHOLDERS’ EQUITY | 6. STOCKHOLDERS’ EQUITY As of March 31, 2019 , the Company had 61,499,843 shares of common stock issued and 61,142,091 shares outstanding. The following provides a detailed description of the stock-based transactions completed during the three months ended March 31, 2019: During the three months ended March 31, 2019 , the Company repurchased 357,752 shares of common stock as part of the Company’s 2018 Share Repurchase Plan which resulted in a reduction to equity of $3,647,076. During the three months ended March 31, 2019 , the Company issued 134,260 shares of common stock upon the exercise of stock options and received cash consideration totaling $215,726 upon payment of the exercise price for the options. During the three months ended March 31, 2019 , the Company issued 620,287 shares of common stock in exchange for services totaling $6,210,293, which includes the expense activity in our Agent Equity Program. During the three months ended March 31, 2019 , the Company issued 136,194 shares of common stock in exchange for services totaling $3,669,321, which included the expense activity for our agent growth incentive programs. During the three months ended March 31, 2018, the Company issued 208,324 shares of common stock in exchange for services totaling $2,370,004, which includes the expense activity in our 2015 Agent Equity Program. During the three months ended March 31, 2018, the Company issued 61,598 shares of common stock in exchange for services totaling $8,279,109, which included the expense activity for our agent growth incentive programs. Agent Equity Program The Company provides agents and brokers the opportunity to elect to receive 5% of commissions earned from each completed residential real estate transaction in the form of common stock. If agents and brokers elect to receive portions of their commissions in common stock, they are entitled to receive the equivalent number of shares of common stock, based on the fixed monetary value of the commission payable. The shares are issued at a 20% discount to market on the date of issuance. We recognize this 20% discount as an additional cost of sales charge during the periods presented. All agents and brokers in good standing with the Company are eligible to participate in the Agent Equity Program. To be considered in good standing, agents and brokers must be current in their financial obligations, including all fees, to the Company. In addition, all required licenses, local, state and national dues and subscriptions which are required to conduct real estate business in their state must be current and in effect. During the three months ended March 31, 2019 and 2018, the Company issued 620,287 and 208,324 shares of common stock, respectively, to agents and brokers for total consideration of $6,210,293 and $2,370,004, respectively, for the settlement of commissions payable. Agent Growth Incentive Program The Company administers an equity incentive program whereby agents and brokers become eligible to receive awards of the Company’s common stock through agent attraction and performance benchmarks. Agents who qualify are awarded common stock based on achievement of performance milestones. Under the incentive programs, the Company awards common stock to our agents and brokers that become issuable upon the achievement of certain milestones for both the individual and the recruited agents. On December 27, 2018, the Company announced its Sustainable Equity Plan, which amended the Real Estate Agent Growth Incentive Program, collectively referred to herein as our “agent growth incentive programs.” The primary change is the Company now issues agents a dollar value of shares, rather than a number of shares for achieving performance milestones. The agent growth incentive programs is as follows: · First completed sale, lease or referral transaction with the Company: $200 worth of eXp World Holdings common stock. · An agent goes into “capped status” once the Company’s commissions on sale, lease or referral transactions equal a certain dollar threshold within the agents’ anniversary year. When agent goes into capped status: $400 worth of eXp World Holdings common stock. · For directly attracting another agent to the company and upon the closing of that agent’s first transaction with eXp Realty: $400 worth of eXp World Holdings common stock. · When named an ICON agent: Up to $16,000 worth of eXp World Holdings common stock, eligible on a yearly basis. $12,000 is awarded and vests after three years, with an additional $2,000 issued after each company event (The eXp Shareholder Summit and EXPCON) with no vesting period, for a possible total of $4,000. All stock grants are priced based on the closing market price of eXp World Holdings, Inc. common stock on the last trading day of the qualification month. Awards vest over a three-year vesting period. Agents must remain with the company in good standing during the vesting period. For attraction awards, the sponsoring agent and the agent who joins and closed their first transaction must both remain in good standing with the company during the vesting period. The following table illustrates the Company’s stock issuance activity for our agent growth incentive programs, for the following periods: Weighted Average Shares Fair Value Balance, December 31, 2017 3,059,065 $ 7.60 Granted 2,380,100 11.59 Issued (889,769) 12.16 Forfeited (676,519) 4.05 Balance, December 31, 2018 3,872,877 11.63 Granted 461,051 8.77 Issued (322,669) 11.32 Forfeited (217,891) 2.73 Balance, March 31, 2019 3,793,368 11.46 The fair value of stock awards is based on the closing price of our common stock on the applicable grant date. As of March 31, 2019 , the Company had unvested stock awards for 1,847,606 shares of common stock and awards expected to vest for 3,793,368 shares of common stock with unrecognized compensation costs totaling $21,420,010. The expense related to the agent growth incentive programs is recorded as stock compensation expense. Stock Option Awards During the three months ended March 31, 2019 , the Company granted 106,500 stock options with an estimated grant date fair value of $1,014,418. The assumptions used to estimate the grant date fair value of the awards issued for the three months ended March 31, 2019 include: expected volatility based on historical stock prices of 126.52%; an expected term of 6.25 years; risk free rates based on U.S. Treasury instruments for the expected term of approximately 2.6%; and no dividend payments. The following table illustrates the Company’s stock option activity for the following periods: Weighted Average Weighted Remaining Average Contractual Term Options Exercise Price Intrinsic Value (Years) Balance, December 31, 2017 10,873,292 $ 1.50 $ 5.08 6.65 Granted 870,000 10.86 (3.78) 9.34 Exercised (2,594,050) 0.78 11.90 — Forfeited (451,629) 3.03 9.59 — Balance, December 31, 2018 8,697,613 $ 2.08 $ 5.00 6.07 Granted 106,500 10.64 0.23 9.96 Exercised (169,318) 1.28 9.40 — Forfeited (190,625) 9.35 1.08 — Balance, March 31, 2019 8,444,170 $ 2.04 $ 8.83 5.81 Exercisable at March 31, 2019 6,769,847 1.01 9.86 5.13 Vested at March 31, 2019 6,970,588 $ 1.09 $ 9.78 5.22 As of March 31, 2019 , the total unrecognized compensation cost associated with options was approximately $9,785,458. Stock Repurchase Plan On December 27, 2018 the Company announced that our board of directors approved a stock repurchase program authorizing us to purchase up to $25,000,000 of our common stock. Purchases under the repurchase program may be made in the open market or through a 10b5-1 plan and are expected to comply with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The timing and amount of shares repurchased will depend upon market conditions. The repurchase program does not require the Company to acquire a specific number of shares. The cost of the shares that are repurchased will be funded from available working capital. The repurchase program began on January 2, 2019 and the Company will cease purchasing stock on the earliest to occur of (i) the date on which either the broker-dealer administering our repurchase plan or the Company terminates the plan , (ii) the date on which our share repurchase broker receives notice of the commencement or impending commencement of any proceedings in respect of or triggered by bankruptcy or insolvency, (iii) June 28, 2019 and (iv) the date that the aggregate price of all purchases reaches $7,500,000 (after including all commissions and other expenses of purchases). The Company may extend the repurchase program to repurchase the remaining $17,500,000 of our common stock authorized by our board of directors. For accounting purposes, common stock repurchased under our stock repurchase programs is recorded based upon the settlement date of the applicable trade. Such repurchased shares are held in treasury and are presented using the cost method. During the three months ended as of March 31, 2019 the Company repurchased 357,752 shares of common stock that are held in treasury. These shares are considered issued but not outstanding. The total cost of the shares repurchased was $3,647,076. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2019 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 7. FAIR VALUE MEASUREMENTS ASC 820 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 three-tiered fair value hierarchy that prioritizes the inputs to valuation techniques into three broad levels, which are described below: Input Level Definitions 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 holds funds in a money market account. The Company values its money market funds at fair value on a recurring basis . The following table summarizes the Company’s fair value measurements: March 31, 2019 Fair Value Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds $ 8,081,875 $ 8,081,875 $ — $ — Total Assets $ 8,081,875 $ 8,081,875 $ — $ — December 31, 2018 Fair Value Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds $ 8,051,662 $ 8,051,662 $ — $ — Total Assets $ 8,051,662 $ 8,051,662 $ — $ — There have been no transfers between Level 1, Level 2 and Level 3 in the period presented. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2019 | |
DEBT | |
DEBT | 8. DEBT We have a $1,000,000 line of credit maturing on August 29, 2019 with a variable interest rate computed on a 360‑day year. The variable interest rate is the higher of either 1) the Prime Rate in effect on such day, 2) Daily One Month LIBOR plus one and one-half percent (1.5%), or 3) the Federal Funds Rate plus one and one-half percent (1.5%). The line of credit agreement requires us to comply with various financial covenants as well as customary affirmative and negative covenants that restrict our ability to, among other things, incur debt and liens, make significant investments, dispose of assets and make distributions without prior consent. The line of credit is secured by accounts receivable. The line of credit contains certain financial covenants, including a fixed charge coverage ratio and a tangible net worth. At March 31, 2019 , we were in compliance with all of the financial covenants under the line of credit. As of March 31, 2019 , we had no amount outstanding under the line of credit. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
LEASES [Abstract] | |
LEASES | 9. LEASES Operating leases The Company adopted ASU No. 2016-02 – Leases (Topic 842) effective January 1, 2019 using the modified retrospective approach whereby the cumulative effect of adoption was recognized on the adoption date and prior periods were not restated. There was no net cumulative effect adjustment to retained earnings as of January 1, 2019 as a result of this adoption. ASU No. 2018-11 – Leases (Topic 842) – Targeted Improvements permits an entity to apply the new leases standard at the date of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with ASC 840 – Leases . The Company’s lease portfolio consists of office leases with lease terms ranging from less than 1 year to 7 years, with the average lease term being 3 years. The Company elected to utilize the practical expedient to expense leases with a lease term of less than 12 months in the period incurred. Certain leases provide for increases in future lease payments once the term of the lease has expired, as defined in the lease agreements. These leases generally also include real estate taxes. Information as Lessee under ASC 842 As of March 31, 2019, maturities of lease liabilities by fiscal year were as follows: Year ending Remaining 2019 $ December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 and thereafter Total lease payments $ Less: present value adjustment Total operating lease liabilities, payments $ Included below is other information regarding leases for the period ended March 31, 2019. March 31, 2019 Other information Short term lease expense $ Operating cash flows from operating leases Weighted-average remaining lease term – operating leases (1) Weighted-average discount rate – operating leases (1) The Company’s lease terms include options to extend the lease when it is reasonably certain the Company will exercise its option. Additionally, the Company considered any historical and economic factors in determining if a lease renewal or termination option would be exercised. Information as Lessee under ASC 840 As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2018, future minimum lease payments under ASC 840 for operating leases were as follows: Year ending December 31, 2019 $ 451,710 2020 420,518 2021 237,142 2022 42,532 2023 and thereafter 4,134 Total $ The Company reassessed all of our leases to determine whether any expired or existing contracts were or contained a lease under ASC 842. Expired or existing contracts previously considered leases under ASC 840 no longer meet the definition of a lease under ASC 842 and therefore, have been excluded from future lease payments. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of eXp World Holdings, Inc., and its subsidiaries. All inter-company accounts and transactions have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. 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 Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Restricted Cash | Restricted Cash Restricted cash consists of cash held in escrow by the Company’s brokers and agents on behalf of real estate buyers. The Company recognizes a corresponding customer deposit liability until the funds are released. Restricted cash totaled $4,193,802 and $1,770,599 at March 31, 2019 and March 31, 2018, respectively. March 31, 2019 March 31, 2018 Cash and cash equivalents $ 20,771,971 $ 8,340,851 Restricted cash 4,193,802 1,770,599 Total cash, cash equivalents, and restricted cash $ 24,965,773 $ 10,111,450 |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the consideration paid over the estimated fair value of assets acquired and liabilities assumed in a business combination. We do not amortize goodwill but test goodwill for impairment on an annual basis in November of each year or when a triggering event occurs that would indicate a reduction in its fair value below its carrying value. Acquired intangible assets with finite useful lives are amortized over their estimated useful lives and are reviewed for impairment annually in November of each year or when facts or circumstances suggest that the carrying value of these assets may not be recoverable. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates and market factors. Estimating the fair value of individual reporting units requires us to make assumptions and estimates regarding significant changes or planned changes in the use of the assets, as well as industry and economic conditions. These assumptions and estimates include projected revenues and income growth rates, terminal growth rates, competitive and consumer trends, market-based discount rates, and other market factors. If current expectations of future growth rates are not met or market factors outside of our control, such as discount rates, change significantly, then our goodwill or intangible assets may become impaired. Additionally, as goodwill and intangible assets associated with recently acquired businesses are recorded on the balance sheet at their estimated acquisition date fair values, those amounts are more susceptible to impairment risk if business operating results or macroeconomic conditions deteriorate. |
Stock based compensation | Stock based compensation The Company accounts for all stock-based compensation granted to employees and non-employees using a fair value method. Stock-based compensation awarded to employees is measured at the grant date fair value and is recognized over the requisite service period of the awards, usually the vesting period, on a straight-line basis, net of forfeitures. Accruals of compensation cost for an award with a performance condition are based on the probable outcome of that performance condition. Compensation cost is accrued if it is probable that the performance condition will be achieved and is not accrued if it is not probable that the performance condition will be achieved. The Company reduces recorded stock-based compensation for forfeitures when they occur. |
Revenue Recognition | Revenue Recognition The Company generates substantially all of its revenue from real estate brokerage services and generates a de minimis portion of its revenues from software subscription and professional services. Real Estate Brokerage Services The Company serves as a licensed broker in the areas in which it operates for the purpose of processing residential real estate transactions. The Company is contractually obligated to provide services for the fulfillment of transfers of residential real estate between buyers and sellers. The Company provides these services itself and controls the service necessary to legally transfer the residential real estate. Correspondingly, the Company is defined as the Principal. The Company, as Principal, satisfies its obligation upon the closing of a residential real estate transaction. As Principal, and upon satisfaction of our obligation, the Company recognizes revenue in the gross amount of consideration to which we expect to be entitled to. Revenue is derived from assisting home buyers and sellers in listing, marketing, selling and finding residential real estate. Commissions earned on real estate transactions are recognized at the completion of a residential real estate transaction once we have satisfied our performance obligation. Software Subscription and Professional Services Subscription revenue is derived from fees from our customers to access the Company’s virtual reality software platform. The terms of our subscriptions do not provide customers the right to take possession of the software. Subscription revenue is generally recognized ratably over the contract term. Professional services revenue is derived from implementation and consulting services. Professional services revenue is typically recognized over time as the services are rendered, using an efforts-expended (labor hours) input method. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), which eliminates certain disclosure requirements for fair value measurements and requires new or modified disclosures. ASU No. 2018-13 is effective beginning January 1, 2020; early adoption is permitted. Certain changes are applied retrospectively to each period presented and others are to be applied either in the period of adoption or prospectively. The Company is still assessing the impact of ASU No. 2018-13. The Company does not expect the amendments of ASU No. 2018-13 will have a significant impact on the Company’s financial statements and related disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Cash | March 31, 2019 March 31, 2018 Cash and cash equivalents $ 20,771,971 $ 8,340,851 Restricted cash 4,193,802 1,770,599 Total cash, cash equivalents, and restricted cash $ 24,965,773 $ 10,111,450 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
ACQUISITIONS [Abstract] | |
Schedule of allocation of purchase prince | The following table shows the allocation of the purchase price of VirBELA, LLC to the acquired identifiable assets, and goodwill: Accounts receivable $ 4,273 Inventory 968 Fixed assets 23,452 Intangible assets 2,331,000 Goodwill 8,248,107 Total purchase price $ 10,607,800 |
Schedule of intanigble assets acquired | The purchase price allocation to identifiable intangible assets acquired in the VirBELA acquisition was: Tradename $ 1,169,000 Existing Technology 297,000 Non-competition agreements 125,000 Customer contracts 740,000 Total intangible assets purchased $ 2,331,000 |
FIXED ASSETS, NET (Tables)
FIXED ASSETS, NET (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
FIXED ASSETS, NET | |
Schedule of Fixed assets | Fixed assets, net consisted of the following: Three Ended March 31, As of As of March 31, 2019 December 31, 2018 Computer hardware and software $ 4,727,360 $ 3,925,129 Furniture, fixture and equipment 5,910 5,910 Total depreciable property and equipment 4,733,270 3,931,039 Less: accumulated depreciation and amortization (1,687,390) (1,320,103) Depreciable property, net 3,045,880 2,610,936 Assets under development 107,934 128,589 Fixed assets, net $ 3,153,814 $ 2,739,525 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
Schedule of Definite-Lived Assets | Definite-Lived intangible assets were as follows: As of March 31, 2019 Gross Accumulated Net Carrying Amount Amortization Amount Trade name $ 1,169,000 $ (38,967) $ 1,130,033 Existing technology 297,000 (19,800) 277,200 Non-competition agreements 125,000 (13,889) 111,111 Customer contracts 740,000 (24,666) 715,334 Software 225,000 — 225,000 Total $ 2,556,000 $ (97,322) $ 2,458,678 As of December 31, 2018 Gross Accumulated Net Carrying Amount Amortization Amount Trade name $ 1,169,000 $ (9,742) $ 1,159,258 Existing technology 297,000 (4,950) 292,050 Non-competition agreements 125,000 (3,472) 121,528 Customer contracts 740,000 (6,167) 733,833 Software 225,000 — 225,000 Total $ 2,556,000 $ (24,331) $ 2,531,669 |
Schedule of Definite-Lived Furture Amortization Expense | We estimate expected amortization related to definite-lived intangible assets at March 31, 2019 will be: Expected amortization Remaining 2019 $ 293,975 2020 366,967 2021 363,494 2022 250,300 2023 245,350 2024 and thereafter 938,592 Total $ 2,458,678 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
STOCKHOLDERS’ EQUITY | |
Schedule of Restricted stock activity | The following table illustrates the Company’s stock issuance activity for our agent growth incentive programs, for the following periods: Weighted Average Shares Fair Value Balance, December 31, 2017 3,059,065 $ 7.60 Granted 2,380,100 11.59 Issued (889,769) 12.16 Forfeited (676,519) 4.05 Balance, December 31, 2018 3,872,877 11.63 Granted 461,051 8.77 Issued (322,669) 11.32 Forfeited (217,891) 2.73 Balance, March 31, 2019 3,793,368 11.46 |
Schedule of stock option activity | The following table illustrates the Company’s stock option activity for the following periods: Weighted Average Weighted Remaining Average Contractual Term Options Exercise Price Intrinsic Value (Years) Balance, December 31, 2017 10,873,292 $ 1.50 $ 5.08 6.65 Granted 870,000 10.86 (3.78) 9.34 Exercised (2,594,050) 0.78 11.90 — Forfeited (451,629) 3.03 9.59 — Balance, December 31, 2018 8,697,613 $ 2.08 $ 5.00 6.07 Granted 106,500 10.64 0.23 9.96 Exercised (169,318) 1.28 9.40 — Forfeited (190,625) 9.35 1.08 — Balance, March 31, 2019 8,444,170 $ 2.04 $ 8.83 5.81 Exercisable at March 31, 2019 6,769,847 1.01 9.86 5.13 Vested at March 31, 2019 6,970,588 $ 1.09 $ 9.78 5.22 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Schedule of Fair Value Measurement | The following table summarizes the Company’s fair value measurements: March 31, 2019 Fair Value Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds $ 8,081,875 $ 8,081,875 $ — $ — Total Assets $ 8,081,875 $ 8,081,875 $ — $ — December 31, 2018 Fair Value Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds $ 8,051,662 $ 8,051,662 $ — $ — Total Assets $ 8,051,662 $ 8,051,662 $ — $ — |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
LEASES [Abstract] | |
Schedule of future operating lease payments | As of March 31, 2019, maturities of lease liabilities by fiscal year were as follows: Year ending Remaining 2019 $ December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 and thereafter Total lease payments $ Less: present value adjustment Total operating lease liabilities, payments $ |
Schedule of other lease information | Included below is other information regarding leases for the period ended March 31, 2019. March 31, 2019 Other information Short term lease expense $ Operating cash flows from operating leases Weighted-average remaining lease term – operating leases (1) Weighted-average discount rate – operating leases |
Schdule of future minimum lease payments | As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2018, future minimum lease payments under ASC 840 for operating leases were as follows: Year ending December 31, 2019 $ 451,710 2020 420,518 2021 237,142 2022 42,532 2023 and thereafter 4,134 Total $ |
New BASIS OF PRESENTATION (Narr
New BASIS OF PRESENTATION (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
BASIS OF PRESENTATION | ||
Entity incorporation, state country name | State of Delaware | |
Entity incorporation, date of incorporation | Jul. 30, 2008 | |
Cumulative effect adjustment upon the adoption of Accounting Standards Update | $ 0 | |
Lessee, operating lease, term of contract | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Restricted cash | $ 4,193,802 | $ 2,502,591 | $ 1,770,599 |
Operating Lease, Liability | 291,752 | ||
Operating Lease, Right-of-Use Asset | $ 291,689 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Cash) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Cash and cash equivalents | $ 20,771,971 | $ 20,538,057 | $ 8,340,851 | |
Restricted cash | 4,193,802 | 2,502,591 | 1,770,599 | |
Total cash, cash equivalents, and restricted cash | $ 24,965,773 | $ 23,040,648 | $ 10,111,450 | $ 5,595,227 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) - VirBELA LLC - USD ($) | Nov. 29, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Business acquisition, name of acquired entity | VirBELA, LLC | ||
Business acquisition, description of acquired entity | a California limited liability company. VirBELA provides a cloud-based environment focused on educational and innovative learning technologies to enhance global education experiences that empower individuals, teams, and organizations for clients in various industries. Its model allows for a level of engagement and participation that can typically only be achieved with face-to-face instruction. Its proprietary immersive 3D campus, which supports blended learning and big data assessment, is highly customizable to meet the branding and educational needs of clients. VirBELA developed the Company's current cloud campus called eXp World, which provides 24/7 access to collaborative tools, training and socialization for the Company's real estate agents and employees. | ||
Business combination, reason for business combination | The acquisition of VirBELA's core group of products and services will allow eXp Realty to continue to accelerate its business in a sustainable and innovative way, which is consistent with eXp World Holdings' vision to expand the product offering to agents, teams and others who could benefit from their own, always available environments for collaboration. | ||
Business acquisition, effective date of acquisition | Nov. 29, 2018 | ||
Purchase price | $ 10,607,800 | ||
Acquisition cash paid amount | 7,000,000 | ||
Cash paid for acquisition | 6,500,000 | ||
Amortization expense related to discount applied | $ 62,516 | ||
Business acquisition, transaction costs | $ 141,498 | ||
Goodwill acquired amortization schedule | 15 years | ||
Business combinaion unamortized discount amount on equity payments | 392,200 | ||
Common Stock [Member] | |||
Business combination, consideration transferred, equity interests issued and issuable | $ 3,607,800 | ||
Fair value inputs, discount rate | 10.00% | ||
Present value of aggregated future stock issuance related to business combinations | $ 2,607,800 | ||
Restricted Stock | |||
Business combination, consideration transferred, equity interests issued and issuable | $ 1,000,000 | ||
Business acquisition, equity interest issued or issuable, number of shares | 97,371 | ||
Secure Sellers Performance Post Close Obligations [Member] | |||
Cash paid for acquisition | $ 500,000 | $ 500,000 | |
Closing Date Anniversary Remaining Payments Via Shares [Member] | |||
Business combination, consideration transferred, equity interests issued and issuable | $ 1,000,000 | ||
Customer Contracts [Member] | |||
Finite-lived intangible assets, remaining amortization period | 10 years | ||
Effective income tax rate reconciliation state and federal income taxes | 29.40% | ||
Fair value inputs expected return on net assets | 14.00% | ||
Trade Names [Member] | |||
Fair value inputs, discount rate | 14.00% | ||
Fair value inputs, royalty rate | 1.00% | ||
Finite-lived intangible assets, remaining amortization period | 10 years | ||
Technology-Based Intangible Assets [Member] | |||
Fair value inputs, discount rate | 14.00% | ||
Fair value inputs, royalty rate | 5.00% | ||
Finite-lived intangible assets, remaining amortization period | 5 years | ||
Noncompete Agreements [Member] | |||
Fair value inputs, discount rate | 14.00% | ||
Finite-lived intangible assets, remaining amortization period | 3 years |
ACQUISITIONS (Schedule of alloc
ACQUISITIONS (Schedule of allocation of purchase prince) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Nov. 29, 2018 |
Goodwill | $ 8,248,107 | $ 8,248,107 | |
VirBELA LLC | |||
Accounts receivable | $ 4,273 | ||
Inventory | 968 | ||
Fixed assets | 23,452 | ||
Intangible assets | 2,331,000 | ||
Goodwill | 8,248,107 | ||
Total purchase price | $ 10,607,800 |
ACQUISITIONS (Schedule of intan
ACQUISITIONS (Schedule of intangible assets acquired) (Details) - VirBELA LLC | Nov. 29, 2018USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets purchased | $ 2,331,000 |
Trade Names [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets purchased | 1,169,000 |
Noncompete Agreements [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets purchased | 125,000 |
Technology-Based Intangible Assets [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets purchased | 297,000 |
Customer Contracts [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets purchased | $ 740,000 |
FIXED ASSETS, NET (Narrative) (
FIXED ASSETS, NET (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
FIXED ASSETS, NET | ||
Depreciation expense | $ 367,287 | $ 183,321 |
FIXED ASSETS, NET (Schedule of
FIXED ASSETS, NET (Schedule of Fixed assets) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Property and equipment, gross | $ 4,733,270 | $ 3,931,039 |
Less: accumulated depreciation and amortization | (1,687,390) | (1,320,103) |
Depreiable property, net | 3,045,880 | 2,610,936 |
Assets under development | 107,934 | 128,589 |
Fixed assets, net | 3,153,814 | 2,739,525 |
Computer hardware and software | ||
Property and equipment, gross | 4,727,360 | 3,925,129 |
Furniture, fixtures and equipment | ||
Property and equipment, gross | $ 5,910 | $ 5,910 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2019 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | ||
Goodwill | $ 8,248,107 | $ 8,248,107 |
Amortization of Intangible Assets | $ 0 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Schedule of Definite-Lived Assets) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross amounts | $ 2,556,000 | $ 2,556,000 |
Accumulated amortization | (97,322) | (24,331) |
Net carrying amount | 2,458,678 | 2,531,669 |
Customer Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amounts | 740,000 | 740,000 |
Accumulated amortization | (24,666) | (6,167) |
Net carrying amount | 715,334 | 733,833 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amounts | 1,169,000 | 1,169,000 |
Accumulated amortization | (38,967) | (9,742) |
Net carrying amount | 1,130,033 | 1,159,258 |
Technology-Based Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amounts | 297,000 | 297,000 |
Accumulated amortization | (19,800) | (4,950) |
Net carrying amount | 277,200 | 292,050 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amounts | 225,000 | 225,000 |
Net carrying amount | 225,000 | 225,000 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amounts | 125,000 | 125,000 |
Accumulated amortization | (13,889) | (3,472) |
Net carrying amount | $ 111,111 | $ 121,528 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Schedule of Definite-Lived Future Amortization Expense) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | ||
Remaining 2019 | $ 293,975 | |
2020 | 366,967 | |
2021 | 363,494 | |
2022 | 250,300 | |
2023 | 245,350 | |
2024 and thereafter | 938,592 | |
Net carrying amount | $ 2,458,678 | $ 2,531,669 |
STOCKHOLDERS_ EQUITY (Narrative
STOCKHOLDERS’ EQUITY (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Common stock issued | 61,499,843 | 60,609,102 | |
Common stock outstanding | 61,142,091 | ||
Treasury stock, shares, acquired | 357,752 | ||
Treasury stock, value | $ 3,647,076 | ||
Stock issued for options exercised, shares | 134,260 | ||
Proceeds from options exercised | $ 215,726 | $ 264,355 | |
Stock issued for services, value | 6,210,293 | 2,370,004 | |
Stock based compensation | $ 3,669,321 | $ 8,279,109 | |
2015 Agent Equity Program | |||
Stock issued for services, shares | 620,287 | 208,324 | |
Stock issued for services, value | $ 6,210,293 | $ 2,370,004 | |
Percentage of commission potentially redeemed in common stock | 5.00% | ||
Percentage of discount of market price, date of issuance | 20.00% | ||
Share based compensation plan description | The Company provides agents and brokers the opportunity to elect to receive 5% of commissions earned from each completed residential real estate transaction in the form of common stock. If agents and brokers elect to receive portions of their commissions in common stock, they are entitled to receive the equivalent number of shares of common stock, based on the fixed monetary value of the commission payable. The shares are issued at a 20% discount to market on the date of issuance. We recognize this 20% discount as an additional cost of sales charge during the periods presented. | ||
Stock based compensation | $ 6,210,293 | $ 2,370,004 | |
Real Estate Agent Growth and Other Incentive Programs | |||
Stock issued for services, shares | 136,194 | ||
Stock issued for services, value | $ 3,669,321 | ||
Expected to vest, other than options | 3,793,368 | ||
Agent Equity Award Program [Member] | |||
Stock issued for services, shares | 61,598 | ||
Stock issued for services, value | $ 8,279,109 | ||
Stock Options | |||
Stock issued for options exercised, shares | 169,318 | 2,594,050 | |
Unrecognized compensation expense - stock awards | $ 9,785,458 | ||
Stock options granted, shares | 106,500 | 870,000 | |
Stock options granted fair value | $ 1,014,418 | ||
Volatility rate | 126.52% | ||
Options award, risk free rate | 2.60% | ||
Options award, dividend payments | $ 0 | ||
Restricted Stock | Real Estate Agent Growth and Other Incentive Programs | |||
Unvested shares, other than options | 1,847,606 | ||
Unrecognized compensation expense - stock awards | $ 21,420,010 | ||
First Completed Transaction [Member] | Agent Equity Award Program [Member] | |||
Stock options granted, value | 200 | ||
Agent Caps [Member] | Agent Equity Award Program [Member] | |||
Stock options granted, value | 400 | ||
Agent Referrs Another Agent [Member] | Agent Equity Award Program [Member] | |||
Stock options granted, value | 400 | ||
Agent Receives ICON Status [Member] | Agent Equity Award Program [Member] | Share-based Compensation Award, Tranche Three [Member] | |||
Stock options granted, value | $ 12,000 | ||
Vesting period | 3 years | ||
Agent Receives ICON Status [Member] | Maximum | Agent Equity Award Program [Member] | |||
Stock options granted, value | $ 16,000 | ||
Each Company Event [Member] | Agent Equity Award Program [Member] | |||
Stock options granted, value | 2,000 | ||
Each Company Event [Member] | Maximum | Agent Equity Award Program [Member] | |||
Stock options granted, value | $ 4,000 |
STOCKHOLDERS_ EQUITY (Restricte
STOCKHOLDERS’ EQUITY (Restricted Stock Activity) (Details) - Restricted Stock - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Shares | ||
Restricted stock outstanding, beginning balance | 3,872,877 | 3,059,065 |
Restricted stock granted | 461,051 | 2,380,100 |
Restricted stock issued | (322,669) | (889,769) |
Restricted stock forfeited | (217,891) | (676,519) |
Restricted stock outstanding, ending balance | 3,793,368 | 3,872,877 |
Weighted Average Fair Value | ||
Weighted average price - Restricted stock outstanding, beginning balance | $ 11.63 | $ 7.60 |
Weighted average price - Restricted stock granted | 8.77 | 11.59 |
Weighted average price - Restricted stock issued | 11.32 | 12.16 |
Weighted average price - Restricted stock forfeited | 2.73 | 4.05 |
Weighted average price - Restricted stock outstanding, ending balance | $ 11.46 | $ 11.63 |
STOCKHOLDERS_ EQUITY (Stock Opt
STOCKHOLDERS’ EQUITY (Stock Option Activity) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Options | |||
Exercised | (134,260) | ||
Weighted Average Remaining Contractual Term | |||
Weighted average remaining contractual term, beginning | 5 years 9 months 22 days | 6 years 26 days | |
Weighted average remaining contractual term, granted | 9 years 11 months 16 days | ||
Weighted average remaining contractual term, exercisable | 5 years 1 month 17 days | ||
Weighted average remaining contractual term, vested | 5 years 2 months 19 days | ||
Stock Options | |||
Options | |||
Beginning balance | 8,697,613 | 10,873,292 | |
Granted | 106,500 | 870,000 | |
Exercised | (169,318) | (2,594,050) | |
Forfeited | (190,625) | (451,629) | |
Ending balance | 8,444,170 | 8,697,613 | 10,873,292 |
Exercisable | 6,769,847 | ||
Vested | 6,970,588 | ||
Weighted Average Exercise Price | |||
Beginning balance | $ 2.08 | $ 1.50 | |
Granted | 10.64 | 10.86 | |
Exercised | 1.28 | 0.78 | |
Forfeited | 9.35 | 3.03 | |
Ending balance | 2.04 | 2.08 | $ 1.50 |
Exercisable | 1.01 | ||
Vested | 1.09 | ||
Intrinsic Value | |||
Beginning balance | 5 | 5.08 | |
Granted | 0.23 | ||
Grant intrinsic, loss | (3.78) | ||
Exercised | 9.40 | 11.90 | |
Forfeited | 1.08 | 9.59 | |
Ending balance | 8.83 | $ 5 | $ 5.08 |
Exercisable | 9.86 | ||
Vested | $ 9.78 | ||
Weighted Average Remaining Contractual Term | |||
Weighted average remaining contractual term, beginning | 6 years 7 months 24 days | ||
Weighted average remaining contractual term, granted | 9 years 4 months 2 days |
STOCKHOLDERS_ EQUITY (Stock Rep
STOCKHOLDERS’ EQUITY (Stock Repurchase Plan) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 27, 2018 | |
STOCKHOLDERS’ EQUITY | ||
Stock repurchase program authorized amount | $ 25,000,000 | |
Stock repurchase program threshold amount | $ 7,500,000 | |
Stock repurchase program authorized remaining extened amount | $ 17,500,000 | |
Total number of shares repurchased | 357,752 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Fair Value Measurements) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | $ 8,081,875 | $ 8,051,662 |
Total Assets | 8,081,875 | 8,051,662 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | 8,081,875 | 8,051,662 |
Total Assets | $ 8,081,875 | $ 8,051,662 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt | ||
Line of credit maximum amount | $ 1,000,000 | |
Line of credit amount outstanding | 0 | |
Long term payable, net of current portion | 1,716,853 | $ 1,654,337 |
Long term payable, current | $ 974,659 | $ 974,659 |
Line of Credit | ||
Debt | ||
Debt instrument, basis spread on variable rate | 3.00% | |
Debt instrument, covenant description | The line of credit agreement requires us to comply with various financial covenants as well as customary affirmative and negative covenants that restrict our ability to, among other things, incur debt and liens, make significant investments, dispose of assets and make distributions without prior consent. The line of credit is secured by accounts receivable. The line of credit contains certain financial covenants, including a fixed charge coverage ratio and a tangible net worth. | |
Debt instrument, collateral | line of credit is secured by accounts receivable. | |
Debt instrument, covenant compliance | At March 31, 2019, we were in compliance with all of the financial covenants under the line of credit. | |
Line of Credit | Prime Rate | ||
Debt | ||
Debt instrument, basis spread on variable rate | 1.50% | |
Line of Credit | Federal Funds Effective Swap Rate | ||
Debt | ||
Debt instrument, basis spread on variable rate | 1.50% |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Lessee, operating lease, term of contract | 3 years |
Revenue, practical expedient, financing component | true |
Minimum | |
Lessee, operating lease, term of contract | 1 year |
Maximum | |
Lessee, operating lease, term of contract | 7 years |
LEASES (Schedule of future oper
LEASES (Schedule of future operating lease payments) (Details) | Mar. 31, 2019USD ($) |
Year ended: | |
Remaining 2019 | $ 89,240 |
December 31, 2020 | 101,879 |
December 31, 2021 | 72,414 |
December 31, 2022 | 35,921 |
December 31, 2023 | 5,388 |
December 31, 2024 and thereafter | 10,774 |
Total minimum lease payments | 315,616 |
Less: present value adjustment | (23,864) |
Total operating lease liabilities, payments | $ 291,752 |
LEASES (Summary of components o
LEASES (Summary of components of our lease cost) (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
LEASES [Abstract] | |
Operating cash flows from operating leases | $ 29,505 |
Short-term lease cost | $ 4,667 |
Weighted-average remaining lease term – operating leases | 3 years |
Weighted-average discount rate – operating leases | 4.85% |
LEASES (Schedule of future mini
LEASES (Schedule of future minimum lease payments) (Details) | Mar. 31, 2019USD ($) |
LEASES [Abstract] | |
2019 | $ 451,710 |
2020 | 420,518 |
2021 | 237,142 |
2022 | 42,532 |
2023 and thereafter | 4,134 |
Total | $ 1,156,036 |