Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 10, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | EXP World Holdings, Inc. | |
Entity Central Index Key | 1,495,932 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
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 | 53,995,962 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 3,347,910 | $ 1,684,608 |
Restricted cash | 1,134,109 | 481,704 |
Accounts receivable, net of allowance $177,563 and $133,845, respectively | 7,549,469 | 3,015,767 |
Prepaids and other assets | 587,904 | 383,563 |
TOTAL CURRENT ASSETS | 12,619,392 | 5,565,642 |
OTHER ASSETS | ||
Fixed assets, net | 1,298,215 | 538,405 |
TOTAL OTHER ASSETS | 1,298,215 | 538,405 |
TOTAL ASSETS | 13,917,607 | 6,104,047 |
CURRENT LIABILITIES | ||
Accounts payable | 412,439 | 317,420 |
Customer deposits | 1,134,109 | 481,704 |
Accrued expenses | 7,745,153 | 2,742,119 |
Notes payable | 0 | 35,778 |
TOTAL CURRENT LIABILITIES | 9,291,701 | 3,577,021 |
Commitments and Contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common Stock, $0.00001 par value 220,000,000 shares authorized; 53,995,962 shares and 52,316,679 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 540 | 523 |
Additional paid-in capital | 41,238,713 | 34,526,859 |
Accumulated deficit | (36,621,221) | (32,004,561) |
Accumulated other comprehensive income (loss) | 7,874 | 4,205 |
TOTAL STOCKHOLDERS' EQUITY | 4,625,906 | 2,527,026 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 13,917,607 | $ 6,104,047 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 177,563 | $ 133,845 |
Common stock shares authorized | 220,000,000 | 220,000,000 |
Common stock par value | $ .00001 | $ 0.00001 |
Common stock shares issued | 53,995,962 | 52,316,679 |
Common stock shares outstanding | 53,995,962 | 52,316,679 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Net Revenues | $ 48,105,769 | $ 15,756,956 | $ 109,691,317 | $ 36,181,796 |
Operating expenses | ||||
Cost of revenues | 43,291,473 | 13,294,452 | 97,620,066 | 30,868,564 |
General and administrative | 11,987,268 | 16,810,567 | 14,697,040 | 25,801,423 |
Professional fees | 223,811 | 140,804 | 906,654 | 414,197 |
Sales and marketing | 380,452 | 158,968 | 1,030,497 | 358,396 |
Total expenses | 55,883,004 | 30,404,791 | 114,254,257 | 57,442,580 |
Net loss from operations | (7,777,235) | (14,647,835) | (4,562,940) | (21,260,784) |
Other income and (expenses) | ||||
Other income | 0 | (432) | 0 | 14 |
Interest expense | (58) | 0 | (2,105) | 0 |
Total other income and (expenses) | (58) | (432) | (2,105) | 14 |
Loss from before income tax expense | (7,777,293) | (14,648,267) | (4,565,045) | (21,260,770) |
Income tax expense | (3,277) | (7,444) | (51,615) | (33,015) |
Net loss | (7,780,570) | (14,655,711) | (4,616,660) | (21,293,785) |
Net loss attributable to non-controlling interest in subsidiary | 0 | 8,613 | 0 | 20,913 |
Net loss attributable to common shareholders | $ (7,780,570) | $ (14,647,098) | $ (4,616,660) | $ (21,272,872) |
Net loss per share attributable to common shareholders | ||||
Basic from continuing operations | $ (0.15) | $ (0.29) | $ (0.09) | $ (0.42) |
Diluted from continuing operations | $ (0.15) | $ (0.29) | $ (0.09) | $ (0.42) |
Weighted average shares outstanding | ||||
Basic | 53,335,822 | 51,225,817 | 52,837,134 | 50,929,102 |
Diluted | 53,335,822 | 51,225,817 | 52,837,134 | 50,929,102 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (7,780,570) | $ (14,655,711) | $ (4,616,660) | $ (21,293,785) |
Other comprehensive loss: | ||||
Foreign currency translation adjustments, net of tax | 856 | 10,515 | 3,669 | 15,604 |
Comprehensive loss | (7,779,714) | (14,645,196) | (4,612,991) | (21,278,181) |
Comprehensive loss attributable to non-controlling interest in subsidiary | 0 | 8,613 | 0 | 20,913 |
Comprehensive loss attributable to common shareholders | $ (7,779,714) | $ (14,636,583) | $ (4,612,991) | $ (21,257,268) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
OPERATING ACTIVITIES | ||
Net loss | $ (4,616,660) | $ (21,293,785) |
Adjustments to reconcile net loss to cash provided by operating activities: | ||
Depreciation | 207,189 | 38,110 |
Stock compensation expense | 7,076,363 | 1,527,110 |
Stock option expense (benefit) | (523,043) | 21,183,498 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,533,702) | (992,031) |
Prepaids and other assets | (321,576) | (320,114) |
Restricted cash | (652,405) | (384,761) |
Customer deposits | 652,405 | 384,761 |
Accounts payable | 95,019 | 305,438 |
Accrued expenses | 5,013,111 | 189,655 |
CASH PROVIDED BY OPERATING ACTIVITIES | 2,396,701 | 637,881 |
INVESTING ACTIVITIES | ||
Acquisition of property and equipment | (849,764) | (281,203) |
CASH USED IN INVESTING ACTIVITIES | (849,764) | (281,203) |
FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock | 142,158 | 0 |
Common stock issuance transaction costs | 0 | 0 |
Repurchase and retirement of common stock | (3,607) | 0 |
Repurchase and retirement of subsidiary common stock | 0 | (1,000) |
Proceeds from exercise of options | 20,000 | 1,000 |
Principal payments of notes payable | (35,778) | 0 |
CASH PROVIDED BY FINANCING ACTIVITIES | 122,773 | 0 |
Effect of changes in exchange rates on cash and cash equivalents | (6,408) | 15,604 |
Net change in cash and cash equivalents | 1,663,302 | 372,282 |
Cash and cash equivalents, beginning of period | 1,684,608 | 571,814 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 3,347,910 | 944,096 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 920 | 0 |
Cash paid for income taxes | 57,484 | 33,015 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Fixed asset purchases in accounts payable | $ 117,235 | $ 0 |
1. Background and Basis of Pres
1. Background and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and 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 is a cloud-based real estate brokerage operating in most U.S. States, the District of Columbia and the provinces of Alberta and Ontario, Canada. The Company focuses on 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-month and nine-month periods ended September 30, 2017 and 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
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; eXp Realty Holdings, Inc.; First Cloud Mortgage, Inc. (dormant as of December 31, 2016 and through September 30, 2017); eXp Realty Associates, LLC; eXp Realty, LLC; eXp Realty of California, Inc.; eXp Realty of Canada, Inc.; and eXp Realty of Connecticut, LLC. All inter-company accounts and transactions have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in conformity with 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 Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Recently Issued Accounting Pronouncements In January 2017, the Company implemented accounting treatment as promulgated by FASB as issued in ASU No. 2016-09 Compensation – Stock Compensation (Topic 718). The new standard simplifies several aspects of the accounting for share-based payments, including accounting for income taxes, forfeitures and statutory tax withholding requirements, and classification within the statement of cash flows. The Company made an election to account for forfeitures of non-vested equity awards in the periods in which they occur. The treatments implemented did not have a material impact on the accompanying unaudited condensed consolidated financial statements as presented. In May 2016, the FASB issued ASU 2016-02 Leases (Topic 842). Under the new guidance a lessee is required to recognize lease liabilities and corresponding right-of-use assets, initially measured at the present value of lease payments, on the balance sheet for operating leases with terms greater than one year. Lessor accounting remains largely unchanged from existing lease accounting. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities. If the lessee makes the election, the lessee would recognize lease expense on a straight-line basis over the lease term. The Company is still evaluating our lease contracts however, we do not expect material changes to the timing and recognition of lease expense as a result of adoption of the ASU. This ASU update is effective in annual reporting periods beginning after December 15, 2018 and the interim periods within that year. In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606). The objective of the revenue standard is to provide a single, comprehensive revenue recognition model for all contracts with customers to remove inconsistencies in requirements, provide a robust framework, improve comparability across entities and industries, provide more useful information to users and simplify the preparation of financial statements. The Company is still evaluating the potential impacts the new revenue standard may have as a result of adoption of the ASU however, we do not expect the new standard to have a material impact on financial results as the Company recognizes revenue at the completion of a residential real estate sale transaction, on a gross basis, which will not result in a change in the timing and recognition of revenue. This ASU is effective in annual reporting periods beginning after December 15, 2017 and the interim periods within that year. |
3. Fixed Assets, Net
3. Fixed Assets, Net | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, Net | Fixed assets, net consisted of the following: As of September 30, 2017 As of December 31, 2016 Computer hardware and software $ 1,518,785 $ 219,590 Furniture, fixture and equipment 5,910 5,910 Total depreciable property and equipment 1,524,695 225,500 Less: accumulated depreciation and amortization (304,405 ) (97,216 ) Depreciable property, net 1,220,290 128,284 Assets under development 77,925 410,121 Fixed assets, net $ 1,298,215 $ 538,405 Depreciation expense for the nine months ended September 30, 2017 and 2016 was $207,189 and $38,110, respectively. Depreciation expense for the three months ended September 30, 2017 and 2016 was $112,487 and $12,555, respectively. |
4. Stockholders' Equity
4. Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | As of September 30, 2017, the Company had 53,995,962 shares of common stock issued and outstanding. The following provides a detailed description of the stock based transactions completed since January 1, 2017: In January 2017, the Company issued the remaining 49,231 shares of restricted common stock to accredited investors following receipt of $160,000 of gross proceeds from the Company’s December 2016 private placement. The Company received total gross cash proceeds from the private placement of $760,000. During the nine months ended September 30, 2017, the Company issued 25,000 shares of restricted common stock upon the exercise of stock options, and received cash consideration totaling $20,000 upon payment of the exercise price for the options. During the nine months ended September 30, 2017, the Company repurchased and retired 1,307 shares of common stock for cash consideration totaling $3,607. During the nine months ended September 30, 2017, the Company issued 1,655,590 shares of restricted common stock in exchange for services totaling $7,076,363, which includes the expense activity in our 2015 Agent Equity Program and Real Estate Agent Growth and Other Incentive Programs. 2015 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 restricted common stock. If agents and brokers elect to receive portions of their commissions in restricted 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. During the nine months ended September 30, 2017 and 2016, the Company issued 1,197,567 and 648,608 shares, respectively, of restricted common stock to agents and brokers for $3,173,490 and $844,811, respectively for the settlement of commissions payable. Real Estate Agent Growth and Other Incentive Programs 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, and who remain with the Company in good standing for the term of the applicable agreement, are awarded restricted common stock based on production milestones. Under this program, the Company awards restricted common stock to our agents and brokers that become issuable upon the achievement of certain milestones for both the individual and the recruited agents. Subsequent to achieving and maintaining the milestones, the awards vest ratably over service periods of three years. The following table illustrates the Company’s restricted stock activity for the following periods: Shares Weighted Average Grant Date Fair Value Balance, December 31, 2015 1,293,056 $ 0.45 Granted 2,452,965 3.65 Issued (503,922 ) 4.30 Forfeited (688,142 ) 0.62 Balance, December 31, 2016 2,553,957 2.82 Granted 1,719,744 3.27 Issued (383,492 ) 2.57 Forfeited (313,875 ) 2.24 Balance, September 30, 2017 3,576,334 $ 2.99 As of September 30, 2017, unvested restricted stock awards of approximately 2,084,000 shares had total unrecognized compensation costs totaling approximately $6,570,000. Pre-2013 Stock Options As of September 30, 2017, the Company had outstanding options to purchase 6,006,838 shares of common stock, accounted for in accordance with the intrinsic value method. The required re-measurement of the intrinsic value of the awards resulted in the recognition of a stock option benefit of $5,502,948 for the nine months ended September 30, 2017; and an expense of $2,478,062 for the three months ended September 30, 2017; included in general and administrative expenses in accompanying consolidated statements of operations. As of September 30, 2017, the fully vested outstanding options subject to re-measurement in accordance with the intrinsic value method had a weighted average remaining contractual term of 4.98 years. Post-2013 Stock Option Awards During the nine months ended September 30, 2017, the Company granted stock options to purchase 2,783,231 shares of common stock, with an estimated grant date fair value of $9,586,791. The assumptions used to estimate the grant date fair value of the awards issued for the nine months ended September 30, 2017 include: In January 2017, the Company modified certain terms of previously outstanding option awards to purchase 500,000 shares of common stock, including accelerating portions of the award to vest prior to the original terms and the forfeiture of unvested options to purchase 275,000 shares of common stock. As a result of this modification, the Company recognized approximately $368,000 of additional stock option expense during the nine months ended September 30, 2017. The following table illustrates the Company’s stock option activity (inclusive of awards accounted for under the intrinsic value and fair value) for the following periods: Options Weighted Average Price Intrinsic Value Weighted Average Remaining Contractual Term (Years) Balance, December 31, 2015 7,281,250 $ 0.17 $ 0.17 6.75 Granted 4,130,000 1.53 – 9.75 Exercised (159,678 ) 0.13 1.42 – Forfeited (504,014 ) 1.19 3.36 – Balance, December 31, 2016 10,747,558 0.67 3.56 7.75 Granted 2,783,231 3.75 – 6.23 Exercised (25,000 ) 0.80 2.62 – Forfeited (2,537,970 ) 2.30 1.06 – Balance, September 30, 2017 10,967,819 1.47 2.80 6.81 Exercisable at September 30, 2017 7,274,946 0.42 3.00 5.65 Vested at September 30, 2017 7,607,170 $ 0.50 $ 2.97 5.79 For the nine months ended September 30, 2017 and September 30, 2016, the Company recognized total stock-based compensation of ($523,043) and $21,183,498, respectively, associated with all equity and equity-linked awards, inclusive of intrinsic value re-measurement. For the three months ended September 30, 2017 and September 30, 2016, the Company recognized total stock-based compensation of $4,979,213 and $14,632,458, respectively, associated with all equity and equity-linked awards, inclusive of intrinsic value re-measurement. As of September 30, 2017, the total unrecognized compensation cost associated with options was approximately $8,518,000. |
5. Related Party Transactions
5. Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | In January 2017, and as part of her agreement to join the Company’s Board of Directors, Ms. Laurie Hawkes was granted an option to purchase a total of 350,000 shares of common stock from a significant stockholder at an exercise price of $4.22 per share. The Company estimated the grant date fair value of these options using a Black-Scholes model with the assumptions described in Footnote 4. The aggregate grant date fair value of this award was $1,333,501. During the nine months ended September 30, 2017, the Company recognized compensation cost totaling $254,522 associated with this award. Because the options were granted by a significant stockholder and not the Company, upon the exercise of the options, the Company will not receive any cash proceeds and will not be obligated to issue additional shares. |
6. Debt
6. Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Line of Credit We have a $500,000 line of credit with a variable interest rate computed on a 360-day year. 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 September 30, 2017, we were in compliance with all of the financial covenants under the line of credit. As of September 30, 2017, we had no amount outstanding under the line of credit and have the entire amount remaining available of $500,000. |
2. Summary of Significant Acc13
2. Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of eXp World Holdings, Inc., and its subsidiaries; eXp Realty Holdings, Inc.; First Cloud Mortgage, Inc. (dormant as of December 31, 2016 and through September 30, 2017); eXp Realty Associates, LLC; eXp Realty, LLC; eXp Realty of California, Inc.; eXp Realty of Canada, Inc.; and eXp Realty of Connecticut, LLC. All inter-company accounts and transactions have been eliminated upon consolidation. |
Use of Estimates | 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 Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In January 2017, the Company implemented accounting treatment as promulgated by FASB as issued in ASU No. 2016-09 Compensation – Stock Compensation (Topic 718). The new standard simplifies several aspects of the accounting for share-based payments, including accounting for income taxes, forfeitures and statutory tax withholding requirements, and classification within the statement of cash flows. The Company made an election to account for forfeitures of non-vested equity awards in the periods in which they occur. The treatments implemented did not have a material impact on the accompanying unaudited condensed consolidated financial statements as presented. In May 2016, the FASB issued ASU 2016-02 Leases (Topic 842). Under the new guidance a lessee is required to recognize lease liabilities and corresponding right-of-use assets, initially measured at the present value of lease payments, on the balance sheet for operating leases with terms greater than one year. Lessor accounting remains largely unchanged from existing lease accounting. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities. If the lessee makes the election, the lessee would recognize lease expense on a straight-line basis over the lease term. The Company is still evaluating our lease contracts however, we do not expect material changes to the timing and recognition of lease expense as a result of adoption of the ASU. This ASU update is effective in annual reporting periods beginning after December 15, 2018 and the interim periods within that year. In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606). The objective of the revenue standard is to provide a single, comprehensive revenue recognition model for all contracts with customers to remove inconsistencies in requirements, provide a robust framework, improve comparability across entities and industries, provide more useful information to users and simplify the preparation of financial statements. The Company is still evaluating the potential impacts the new revenue standard may have as a result of adoption of the ASU however, we do not expect the new standard to have a material impact on financial results as the Company recognizes revenue at the completion of a residential real estate sale transaction, on a gross basis, which will not result in a change in the timing and recognition of revenue. This ASU is effective in annual reporting periods beginning after December 15, 2017 and the interim periods within that year. |
3. Fixed Assets, Net (Tables)
3. Fixed Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | As of September 30, 2017 As of December 31, 2016 Computer hardware and software $ 1,518,785 $ 219,590 Furniture, fixture and equipment 5,910 5,910 Total depreciable property and equipment 1,524,695 225,500 Less: accumulated depreciation and amortization (304,405 ) (97,216 ) Depreciable property, net 1,220,290 128,284 Assets under development 77,925 410,121 Fixed assets, net $ 1,298,215 $ 538,405 |
4. Stockholders' Equity (Tables
4. Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Restricted stock activity table | Shares Weighted Average Grant Date Fair Value Balance, December 31, 2015 1,293,056 $ 0.45 Granted 2,452,965 3.65 Issued (503,922 ) 4.30 Forfeited (688,142 ) 0.62 Balance, December 31, 2016 2,553,957 2.82 Granted 1,719,744 3.27 Issued (383,492 ) 2.57 Forfeited (313,875 ) 2.24 Balance, September 30, 2017 3,576,334 $ 2.99 |
Stock option activity table | Options Weighted Average Price Intrinsic Value Weighted Average Remaining Contractual Term (Years) Balance, December 31, 2015 7,281,250 $ 0.17 $ 0.17 6.75 Granted 4,130,000 1.53 – 9.75 Exercised (159,678 ) 0.13 1.42 – Forfeited (504,014 ) 1.19 3.36 – Balance, December 31, 2016 10,747,558 0.67 3.56 7.75 Granted 2,783,231 3.75 – 6.23 Exercised (25,000 ) 0.80 2.62 – Forfeited (2,537,970 ) 2.30 1.06 – Balance, September 30, 2017 10,967,819 1.47 2.80 6.81 Exercisable at September 30, 2017 7,274,946 0.42 3.00 5.65 Vested at September 30, 2017 7,607,170 $ 0.50 $ 2.97 5.79 |
3. Fixed Assets, Net (Details)
3. Fixed Assets, Net (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Property and equipment, gross | $ 1,524,695 | $ 225,500 |
Less: accumulated depreciation and amortization | (304,405) | (97,216) |
Depreciable property, net | 1,220,290 | 128,284 |
Assets under development | 77,925 | 410,121 |
Fixed assets, net | 1,298,215 | 538,405 |
Computer hardware and software [Member] | ||
Property and equipment, gross | 1,518,785 | 219,590 |
Furniture, fixtures and equipment [Member] | ||
Property and equipment, gross | $ 5,910 | $ 5,910 |
3. Fixed Assets, Net (Details N
3. Fixed Assets, Net (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 112,487 | $ 12,555 | $ 207,189 | $ 38,110 |
4. Stockholders' Equity (Detail
4. Stockholders' Equity (Details - Restricted Stock) - Restricted Stock [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Restricted stock, beginning balance | 2,553,957 | 1,293,056 |
Restricted stock granted | 1,719,744 | 2,452,965 |
Restricted stock issued | (383,492) | (503,922) |
Restricted stock forfeited | (313,875) | (688,142) |
Restricted stock, ending balance | 3,576,334 | 2,553,957 |
Restricted stock, beginning balance, Weighted Average Grant Date Fair Value | $ 2.82 | $ 0.45 |
Restricted stock granted, Weighted Average Grant Date Fair Value | 3.27 | 3.65 |
Restricted stock issued, Weighted Average Grant Date Fair Value | 2.57 | 4.30 |
Restricted stock forfeited, Weighted Average Grant Date Fair Value | 2.24 | 0.62 |
Restricted stock, ending balance, Weighted Average Grant Date Fair Value | $ 2.99 | $ 2.82 |
4. Stockholders' Equity (Deta19
4. Stockholders' Equity (Details - Option activity) - Stock Options [Member] - $ / shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options | |||
Options outstanding, beginning balance | 10,747,558 | 7,281,250 | |
Options granted | 2,783,231 | 4,130,000 | |
Options exercised | (25,000) | (159,678) | |
Options forfeited | (2,537,970) | (504,014) | |
Options outstanding, ending balance | 10,967,819 | 10,747,558 | 7,281,250 |
Options exercisable | 7,274,946 | ||
Options vested | 7,607,170 | ||
Weighted Average Exercise Price | |||
Weighted average exercise price, Options outstanding, beginning balance | $ 0.67 | $ 0.17 | |
Weighted average exercise price, Options granted | 3.75 | 1.53 | |
Weighted average exercise price, Options exercised | 0.80 | 0.13 | |
Weighted average exercise price, Options forfeited | 2.30 | 1.19 | |
Weighted average exercise price, Options outstanding, ending balance | 1.47 | 0.67 | $ 0.17 |
Weighted average exercise price, Options exercisable | 0.42 | ||
Weighted average exercise price, Options vested | 0.50 | ||
Intrinsic Value | |||
Intrinsic value, Options outstanding, beginning balance | 3.56 | 0.17 | |
Intrinsic value, Options granted | |||
Intrinsic value, Options exercised | 2.62 | 1.42 | |
Intrinsic value, Options forfeited | 1.06 | 3.36 | |
Intrinsic value, Options outstanding, ending balance | 2.80 | $ 3.56 | $ 0.17 |
Intrinsic value, Options exercisable | 3 | ||
Intrinsic value, Options vested | $ 2.97 | ||
Weighted Average Contractual Term | |||
Weighted average remaining contractual term, Options granted | 6 years 2 months 23 days | 9 years 9 months | |
Weighted average remaining contractual term, Options outstanding | 6 years 9 months 22 days | 7 years 9 months | 6 years 9 months |
Weighted average remaining contractual term, Options exercisable | 5 years 7 months 24 days | ||
Weighted average remaining contractual term, Options vested | 5 years 9 months 14 days |
4. Stockholders' Equity (Deta20
4. Stockholders' Equity (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Proceeds from exercise of stock options | $ 20,000 | $ 1,000 | ||||
Payment for repurchase of shares, amount | 3,607 | 0 | ||||
Stock option plan expense (benefit) | $ 4,979,213 | $ 14,632,458 | $ (523,043) | $ 21,183,498 | ||
Restricted Stock [Member] | ||||||
Unvested restricted stock awards remaining | 2,084,000 | 2,084,000 | ||||
Unrecognized compensation costs | $ 6,570,000 | $ 6,570,000 | ||||
Pre 2013 Stock Options [Member] | ||||||
Options outstanding | 6,006,838 | 6,006,838 | ||||
Stock option plan expense (benefit) | $ 2,478,062 | $ (5,502,948) | ||||
Weighted average remaining contractual term | 4 years 11 months 23 days | |||||
Post 2013 Stock Options [Member] | ||||||
Stock options granted | 2,783,231 | |||||
Stock options granted, value | $ 9,586,791 | |||||
Assumptions - volatility range, minimum | 142.00% | |||||
Assumptions - volatility range, maximum | 157.00% | |||||
Assumptions - expected term | 6 years 3 months | |||||
Assumptions - risk free interest rate | 2.00% | |||||
Assumptions - dividend payments | $ 0 | |||||
Stock Options [Member] | ||||||
Stock issued for the exercise of stock options | 25,000 | 159,678 | ||||
Options outstanding | 10,967,819 | 10,967,819 | 10,747,558 | 7,281,250 | ||
Weighted average remaining contractual term | 6 years 9 months 22 days | 7 years 9 months | 6 years 9 months | |||
Stock options granted | 2,783,231 | 4,130,000 | ||||
Unrecognized compensation cost | $ 8,518,000 | $ 8,518,000 | ||||
Private Placement [Member] | ||||||
Gross proceeds from private placement | 760,000 | |||||
Modification of awards [Member] | ||||||
Stock option plan expense (benefit) | $ 368,000 | |||||
Restricted Stock [Member] | ||||||
Stock issued for services, shares | 1,655,590 | |||||
Stock issued for services, value | $ 7,076,363 | |||||
Restricted Stock [Member] | Exercise of Options [Member] | ||||||
Stock issued for the exercise of stock options | 25,000 | |||||
Proceeds from exercise of stock options | $ 20,000 | |||||
Restricted Stock [Member] | Accredited Investors [Member] | Private Placement [Member] | ||||||
Stock issued new, shares | 49,231 | |||||
Gross proceeds from private placement | $ 160,000 | |||||
Restricted Stock [Member] | Agents and Brokers [Member] | ||||||
Stock issued for settlement of commissions payable, shares | 1,197,567 | 648,608 | ||||
Stock issued for settlement of commissions payable, value | $ 3,173,490 | $ 844,811 | ||||
Common Stock [Member] | ||||||
Stock repurchased and retired, shares | 1,307 | |||||
Payment for repurchase of shares, amount | $ 3,607 |
5. Related Party Transactions (
5. Related Party Transactions (Details Narrative) - Hawkes [Member] | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Option granted, shares available for purchase | shares | 350,000 |
Exercise price per share | $ / shares | $ 4.22 |
Fair value of award | $ 1,333,501 |
Share based compensation | $ 254,522 |
6. _Debt (Details Narrative)
6. Debt (Details Narrative) | Sep. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
Line of Credit, capacity | $ 500,000 |
Line of credit, available | $ 500,000 |