Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 10, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | EXP World Holdings, Inc. | |
Entity Central Index Key | 1,495,932 | |
Document Type | 10-Q/A | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | true | |
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 | 52,611,239 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,017 | |
Amendment Description | Revised financials |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,790,640 | $ 1,684,608 |
Restricted cash | 786,246 | 481,704 |
Accounts receivable, net of allowance $187,000 and $133,845, respectively | 3,335,924 | 3,015,767 |
Prepaids and other assets | 550,871 | 383,563 |
TOTAL CURRENT ASSETS | 6,463,681 | 5,565,642 |
OTHER ASSETS | ||
Fixed assets, net | 804,494 | 538,405 |
TOTAL OTHER ASSETS | 804,494 | 538,405 |
TOTAL ASSETS | 7,268,175 | 6,104,047 |
CURRENT LIABILITIES | ||
Accounts payable | 467,595 | 317,420 |
Customer deposits | 786,246 | 481,704 |
Accrued expenses | 3,269,709 | 2,742,119 |
Notes payable | 21,974 | 35,778 |
TOTAL CURRENT LIABILITIES | 4,545,524 | 3,577,021 |
Commitments and Contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common Stock, $0.00001 par value 220,000,000 shares authorized; 52,611,239 shares and 52,316,679 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 525 | 523 |
Additional paid-in capital | 16,082,114 | 12,987,707 |
Accumulated deficit | (13,365,230) | (10,465,409) |
Accumulated other comprehensive income (loss) | 5,242 | 4,205 |
TOTAL STOCKHOLDERS' EQUITY | 2,722,651 | 2,527,026 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 7,268,175 | $ 6,104,047 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 187,000 | $ 133,845 |
Common stock shares authorized | 220,000,000 | 220,000,000 |
Common stock par value | $ .00001 | $ 0.00001 |
Common stock shares issued | 52,611,239 | 52,316,679 |
Common stock shares outstanding | 52,611,239 | 52,316,679 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Revenues | $ 21,528,183 | $ 6,986,983 |
Operating expenses | ||
Cost of revenues | 18,960,135 | 5,989,924 |
General and administrative | 4,775,881 | 1,290,012 |
Professional fees | 364,460 | 143,375 |
Sales and marketing | 301,222 | 77,143 |
Total expenses | 24,401,698 | 7,500,454 |
Net income (loss) from operations | (2,873,515) | (513,471) |
Other income and (expenses) | ||
Other income | 0 | 7 |
Interest expense | (1,715) | 0 |
Total other income and (expenses) | (1,715) | 7 |
Income (loss) before income tax expense | (2,875,230) | (513,464) |
Income tax expense | (24,591) | (11,603) |
Net income (loss) | (2,899,821) | (525,067) |
Net loss attributable to non-controlling interest in subsidiary | 0 | 5,580 |
Net Income (loss) attributable to common shareholders | $ (2,899,821) | $ (519,487) |
Net income (loss) per share attributable to common shareholders | ||
Basic from continuing operations | $ (0.06) | $ (.01) |
Diluted from continuing operations | $ (0.06) | $ (.01) |
Weighted average shares outstanding | ||
Basic | 52,416,392 | 50,617,769 |
Diluted | 52,416,392 | 50,617,769 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (2,899,821) | $ (525,067) |
Other comprehensive loss: | ||
Foreign currency translation adjustments, net of tax | 1,037 | 7,008 |
Comprehensive income (loss) | (2,898,784) | (518,059) |
Comprehensive loss attributable to non-controlling interest in subsidiary | 0 | 5,580 |
Comprehensive income (loss) attributable to common shareholders | $ (2,898,784) | $ (512,479) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
OPERATING ACTIVITIES | ||
Net loss | $ (2,899,821) | $ (525,067) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation | 13,265 | 12,626 |
Stock compensation expense | 646,232 | 142,022 |
Stock option expense | 1,467,735 | 267,778 |
Agent Equity Program | 818,282 | 172,075 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (320,157) | (185,095) |
Prepaids and other assets | (180,482) | (118,490) |
Restricted cash | (304,542) | (95,847) |
Customer deposits | 304,542 | 95,847 |
Accounts payable | 150,175 | 23,320 |
Accrued expenses | 462,056 | 121,538 |
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 157,286 | (89,293) |
INVESTING ACTIVITIES | ||
Acquisition of property and equipment | (213,625) | (64,028) |
CASH USED IN INVESTING ACTIVITIES | (213,625) | (64,028) |
FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock | 160,000 | 0 |
Common stock issuance transaction costs | (17,842) | 0 |
Repurchase and retirement of subsidiary common stock | 0 | (1,000) |
Proceeds from exercise of options | 20,000 | 0 |
Principal payments of notes payable | (13,804) | 0 |
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 148,354 | (1,000) |
Effect of changes in exchange rates on cash and cash equivalents | 14,017 | 7,008 |
Net change in cash and cash equivalents | 106,032 | (147,313) |
Cash and cash equivalents, beginning of period | 1,684,608 | 571,814 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 1,790,640 | 424,501 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 558 | 0 |
Cash paid for income taxes | 30,675 | 17,711 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Fixed asset purchases in accounts payable | $ 65,728 | $ 0 |
1. Background and Basis of Pres
1. Background and Basis of Presentation | 3 Months Ended |
Mar. 31, 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 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 period ended March 31, 2017 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 | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Principles of Consolidation The accompanying 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 March 31, 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 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 condensed consolidated financial statements as presented. In May 2014, the FASB began issuing several accounting standards updates associated with accounting for revenue from contracts with customers. The objective of the updates, and subsequent clarifying and industry specific updates, are to 1) remove inconsistencies and weaknesses in revenue requirements, 2) provide a robust framework for addressing revenue recognition issues, 3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets 4) provide more useful information to users of financial statements through improved disclosure requirements, and 5) simplify the preparation of financial statements. The updates are effective in annual reporting periods beginning after December 15, 2017 and the interim periods within that year. The Company is still evaluating the potential impacts that the implementation of these new revenue standards may have on its financial position, operational results, or cash flows. |
3. Fixed Assets, Net
3. Fixed Assets, Net | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, Net | Fixed assets, net consisted of the following: As of March 31, 2017 As of December 31, 2016 Computer hardware and software $ 219,590 $ 219,590 Furniture, fixture and equipment 5,910 5,910 Total depreciable property and equipment 225,500 225,500 Less: accumulated depreciation and amortization (110,481 ) (97,216 ) Depreciable property, net 115,019 128,284 Assets under development 689,475 410,121 Fixed assets, net $ 804,494 $ 538,405 Depreciation expense for the three months ended March 31, 2017 and 2016 was $13,265 and $12,626, respectively. |
4. Stockholders' Equity
4. Stockholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 4. STOCKHOLDERS’ EQUITY As of March 31, 2017, the Company had 52,611,239 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 and unregistered shares of common stock to accredited investors subsequent to the 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 three months ended March 31, 2017, the Company issued 25,000 shares of restricted and unregistered shares of common stock for the exercise of stock options including cash consideration totaling $20,000. During the three months ended March 31, 2017, the Company issued 47,751 shares of restricted and unregistered shares of common stock for services totaling $646,232. 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 and unregistered common stock. If agents and brokers elect to receive portions of their commissions in restricted and unregistered 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 three months ended March 31, 2017 and 2016, the Company issued 221,809 and 213,429 shares, respectively, of restricted and unregistered shares of common stock to agents and brokers for total consideration of $818,282 and $172,075, 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 for 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 shares of restricted and unregistered shares of common stock based on production milestones. Under this program, the Company awards restricted and unregistered shares of common stock to non-employees that become issuable upon the achievement of certain milestones for the both 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 Balance, December 31, 2015 1,293,056 $ 0.45 Granted 2,452,965 3.65 Forfeited (688,142 ) 0.62 Balance, December 31, 2016 3,057,879 3.06 Granted 269,560 3.64 Forfeited (59,250 ) 2.44 Balance, March 31, 2017 3,268,189 $ 3.03 As of March 31, 2017, unvested restricted stock awards of approximately 2,240,000 shares had total unrecognized compensation costs totaling approximately $6.2 million. Stock Option Awards During the three months ended March 31, 2017, the Company granted 1,660,000 stock options with an estimated grant date fair value of $6,227,915. The assumptions used to estimate the grant date fair value of the awards issued for the three months ended March 31, 2017 include: In January, the Company modified certain terms of 500,000 previously outstanding stock option awards, including accelerating portions of the award to vest prior to the original terms and the forfeiture of 275,000 unvested options. As a result of this modification, the Company recognized approximately $368 thousand of additional stock option expense during the three months ended March 31, 2017. The following table illustrates the Company’s stock option activity for the following periods: Options Weighted Average Intrinsic Weighted 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 1,660,000 4.15 – 9.80 Exercised (25,000 ) 0.80 – – Forfeited – – – – Balance, March 31, 2017 12,382,558 1.14 2.51 8.02 Exercisable at March 31, 2017 7,049,808 0.24 3.51 7.80 Vested at March 31, 2017 7,712,990 $ 0.40 $ 3.25 7.80 For the three months ended March 31, 2017 and March 31, 2016, the Company recognized total stock based compensation associated with options of $1,467,735 and $267,778, respectively. As of March 31, 2017, the total unrecognized compensation cost associated with options was approximately $11,914,000. |
5. Related Party Transactions
5. Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | During the three months ended March 31, 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 shareholder 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 and the options vest monthly over a three-year period. During the three months ended March 31, 2017, the Company recognized compensation cost totaling $105,949 associated with this award. As of March 31, 2017, the Company had unrecognized compensation cost associated with this award totaling $1,227,551. Upon the exercise of the options, the Company will not receive any cash proceeds nor, will it be obligated to issue additional shares. |
6. Restatement of Previously Is
6. Restatement of Previously Issued Financial Statements | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement of Previously Issued Financial Statements | 6. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS The Company has restated its consolidated financial statements as of and for the three months ended March 31, 2017 and 2016. Errors were discovered by management during the course of its preparation of the Company’s Annual Report on Form 10-K and the audit of the financial results for the fiscal year ending December 31, 2017. The nature and impact of these adjustments are described below and detailed in the tables below. Equity-Based Payments The Company identified an error as a result of applying incorrect accounting guidance for equity-based payments for non-employees in its previously reported Consolidated Statement of Operations. In prior periods, the Company had erroneously accounted for these option grants to non-employees in the same manner that it had accounted for option grants to employees during that same time frame. The error resulted in an understatement of stock option expense in the amount of $671,017 and $83,051 for the three months ended March 31, 2017 and March 31, 2016, respectively. The adjustments made to the income statement are set out in the table below. In this same time frame, we identified an error in the accounting treatment for equity grants made to employees as a result of applying incorrect accounting guidance for equity-based payments for employees in its previously reported Consolidated Statement of Operations. In prior periods, the Company had accounted for these option grants to employees using the intrinsic value method. The Company concluded that it should have utilized the calculated value method. The error resulted in an understatement of stock option expense in the amount of $1,998,082 and an overstatement of $248,803 for the three months ended March 31, 2017 and 2016, respectively. We also identified an error in the accounting treatment for equity grants made to non-employees in connection with our Agent Growth Incentive Plan. The error was the result of an incorrect application of the equity-based payments for non-employees which requires remeasurement of each award at each reporting date throughout the vesting period. The correction of this error resulted in an overstatement of expenses by $2,570 and an understatement of $30,606 for the three months ended March 31, 2017 and 2016, respectively. We previously did not recognize costs associated with a 20% discount to the fair value determined each month when issuing shares under our Agent Equity Program. The restated financial statements now include these additional charges as cost of sales expense in the restated periods. Other Adjustments In addition to the errors described above, the restated financial statements also include adjustments to correct certain other immaterial errors. Specifically, we previously recorded certain agent fees as revenue. These fees should be reported on a net basis as a reduction to the cost of sales expense. The restated financial statements now include the revisions in the restated periods. As disclosed in the Company’s Annual Report on Form 10-K, the Company restated its additional paid in capital and accumulated deficit at December 31, 2015 and December 31, 2014. As such, 2016 additional paid in capital and accumulated deficit reflect the cumulative adjustments made in prior years. All of the adjustments mentioned above are set out in the tables below: The unaudited Condensed Consolidated Balance Sheet at March 31, 2017: eXp World Holdings Inc. Condensed Consolidated Balance Sheet March 31, 2017 As Previously Stock Option Agent Other As Restated Assets Current Assets Cash and cash equivalents $ 1,790,640 $ – $ – $ – $ 1,790,640 Restricted cash 786,246 – – – 786,246 Accounts receivable, net of allowance $187,000 3,335,924 – – – 3,335,924 Prepaids and other assets 550,871 – – – 550,871 Total Current Assets 6,463,681 – – – 6,463,681 Other Assets Fixed assets, net 804,494 – – – 804,494 Total Other Assets 804,494 – – – 804,494 Total Assets $ 7,268,175 $ – $ – $ – $ 7,268,175 Liabilities and Stockholders' Equity Current Liabilities Accounts payable $ 467,595 $ – $ – $ – 467,595 Customer deposits 786,246 – – – 786,246 Accrued expenses 3,269,709 – – – 3,269,709 Notes payable 21,974 – – – 21,974 Total Current Liabilities 4,545,524 – – – 4,545,524 Commitments and contingencies – – – – – Stockholders' Equity eXp World Holdings, Inc. Stockholders' Equity: Common Stock, $0.00001 par value 220,000,000 shares authorized; 52,611,239 shares and 52,316,679 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively 525 – – – 525 Additional Paid in Capital 34,791,174 (20,206,855 ) 1,497,793 – 16,082,114 Accumulated deficit (32,074,290 ) 20,206,855 (1,497,793 ) – (13,365,230 ) Accumulated other comprehensive income (loss) 5,242 – – – 5,242 Total Stockholders' Equity 2,722,651 – – – 2,722,651 Total Liabilities and Stockholders' Equity $ 7,268,175 $ – $ – $ – $ 7,268,175 The unaudited Consolidated Statement of Operations for the three months ended March 31, 2017: eXp World Holdings Inc. Consolidated Statement of Operations For the three months ended March 31, 2017 As Previously Stock Option Agent Other As Restated Revenues $ 22,011,237 – – (483,054 ) $ 21,528,183 Operating expenses Cost of revenues 19,279,626 – 163,563 (483,054 ) 18,960,135 General and administrative 2,109,352 2,669,099 (2,570 ) – 4,775,881 Professional fees 364,460 – – – 364,460 Sales and marketing 301,222 – – – 301,222 Total expenses 22,054,660 2,669,099 160,993 (483,054 ) 24,401,698 Net income (loss) from operations (43,423 ) (2,669,099 ) (160,993 ) – (2,873,515 ) Other income – – – – – Interest expense (1,715 ) – – – (1,715 ) Total other income and (expenses) (1,715 ) – – – (1,715 ) Net income (loss) from operations before income tax expense (45,138 ) (2,669,099 ) (160,993 ) – (2,875,230 ) Income tax expense (24,591 ) – – – (24,591 ) Net income (loss) (69,729 ) (2,669,099 ) (160,993 ) – (2,899,821 ) Net loss attributable to non-controlling interest in subsidiary – – – – – Net income (loss) attributable to common shareholders $ (69,729 ) (2,669,099 ) (160,993 ) – (2,899,821 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.00 ) $ (0.05 ) $ 0.00 $ (0.00 ) $ (0.06 ) Diluted from continuing operations $ (0.00 ) $ (0.05 ) $ 0.00 $ (0.00 ) $ (0.06 ) Weighted average shares outstanding Basic 52,416,392 52,416,392 52,416,392 52,416,392 52,416,392 Diluted 52,416,392 52,416,392 52,416,392 52,416,392 52,416,392 eXp World Holdings Inc. Consolidated Statement of Cash Flows For the three months ended March 31, 2017 As Previously Stock Option Agent Option As Restated OPERATING ACTIVITIES Net loss $ (69,729 ) (2,669,099 ) (160,993 ) – (2,899,821 ) Adjustments to reconcile net loss to cash provided by operating activities: Depreciation 13,265 – – – 13,265 Stock compensation expense 648,803 – (2,571 ) – 646,232 Stock option expense (1,201,364 ) 2,669,099 – – 1,467,735 Agent equity program 654,719 – 163,563 – 818,282 Deferred tax asset – – – – – Changes in operating assets and liabilities: Accounts receivable (320,157 ) – – – (320,157 ) Prepaids and other assets (180,482 ) – – – (180,482 ) Restricted Cash (304,542 ) – – (304,542 ) Customer deposits 304,542 – – – 304,542 Accounts payable 150,175 – – – 150,175 Accrued expenses 462,056 – – – 462,056 CASH PROVIDED BY OPERATING ACTIVITIES 157,286 – – – 157,285 INVESTING ACTIVITIES Acquisition of property and equipment (213,625 ) – – – (213,625 ) CASH USED IN INVESTING ACTIVITIES (213,625 ) – – – (213,625 ) FINANCING ACTIVITIES Proceeds from issuance of common stock 160,000 – – – 160,000 Common stock issuance transaction costs (17,842 ) – – – (17,842 ) Proceeds from exercise of options 20,000 – – – 20,000 Principal payments of notes payable (13,804 ) – – – (13,804 ) CASH PROVIDED BY FINANCING ACTIVITIES 148,354 – – – 148,354 Effect of changes in exchange rates on cash and cash equivalents 14,017 – – – 14,017 Net change in cash and cash equivalents 106,032 – – – 106,032 Cash and cash equivalents, beginning of period 1,684,608 – – – 1,684,608 CASH and CASH EQUIVALENTS, END OF PERIOD $ 1,790,640 – – – $ 1,790,640 SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: Cash paid for interest $ 558 – – – $ 558 Cash paid for income taxes $ 30,675 – – – $ 30,675 SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: Fixed asset purchases in accounts payable $ 65,728 – – – $ 65,728 The unaudited Consolidated Statement of Operations for the three months ended March 31, 2016: eXp World Holdings Inc. Consolidated Statement of Operations For the three months ended March 31, 2016 As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Revenues $ 7,142,812 – – (155,829 ) $ 6,986,983 Operating expenses Cost of revenues 6,110,987 – 34,766 (155,829) 5,989,924 General and administrative 1,425,158 (165,752 ) 30,606 – 1,290,012 Professional fees 143,375 – – – 143,375 Sales and marketing 77,143 – – – 77,143 Total expenses 7,756,663 (165,752) 65,372 (155,829) 7,500,454 Net income (loss) from operations (613,851 ) 165,752 (65,372 ) – (513,471 ) Other income 7 – – – 7 Interest expense – – – – – Total other income and (expenses) 7 – – – 7 Net income (loss) from operations before income tax expense (613,844 ) 165,752 (65,372 ) – (513,464 ) Income tax expense (11,603 ) – – – (11,603 ) Net income (loss) (625,447 ) 165,752 (65,372 ) – (525,067 ) Net loss attributable to non-controlling interest in subsidiary 5,580 – – – 5,580 Net income (loss) attributable to common shareholders $ (619,867 ) 165,752 (65,372 ) – (519,487 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.01 ) $ 0.00 $ (0.00 ) $ (0.00 ) $ (0.01 ) Diluted from continuing operations $ (0.01 ) $ 0.00 $ (0.00 ) $ (0.00 ) $ (0.01 ) Weighted average shares outstanding Basic 50,617,769 50,617,769 50,617,769 50,617,769 50,617,769 Diluted 50,617,769 50,617,769 50,617,769 50,617,769 50,617,769 eXp World Holdings Inc. Consolidated Statement of Cash Flows For the three months ended March 31, 2016 As Stock Agent Other As OPERATING ACTIVITIES Net loss $ (625,447 ) 165,752 (65,372 ) $ – (525,067 ) Adjustments to reconcile net loss to cash provided by operating activities: Depreciation 12,626 – – – 12,626 Stock compensation expense 111,416 – 30,606 – 142,022 Stock option expense 433,530 (165,752 ) – – 267,778 Agent equity program 137,309 – 34,766 – 172,075 Deferred tax asset – – – – – Changes in operating assets and liabilities: Accounts receivable (185,095 ) – – – (185,095 ) Prepaids and other assets (118,490 ) – – – (118,490 ) Restricted Cash (95,847 ) – – – (95,847 ) Customer deposits 95,847 – – – 95,847 Accounts payable 23,320 – – – 23,320 Accrued expenses 121,538 – – – 121,538 CASH PROVIDED BY OPERATING ACTIVITIES (89,293 ) – – – (89,293 ) INVESTING ACTIVITIES Acquisition of property and equipment (64,028 ) – – – (64,028 ) CASH USED IN INVESTING ACTIVITIES (64,028 ) – – – (64,028 ) FINANCING ACTIVITIES Repurchase and retirement of common stock (1,000 ) – – – (1,000 ) Repurchase and retirement of subsidiary common stock – – – – – Proceeds from exercise of options – – – – – CASH PROVIDED BY FINANCING ACTIVITIES (1,000 ) – – – (1,000 ) Effect of changes in exchange rates on cash and cash equivalents 7,008 – – – 7,008 Net change in cash and cash equivalents (147,313 ) – – – (147,313 ) Cash and cash equivalents, beginning of period 571,814 – – – 571,814 CASH and CASH EQUIVALENTS, END OF PERIOD $ 424,501 – – – $ 424,501 SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: Cash paid for interest $ – – – – $ – Cash paid for income taxes $ 17,711 – – – $ 17,711 |
2. Summary of Significant Acc13
2. Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying 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 March 31, 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 | In January 2017, the Company implemented accounting treatment as promulgated by FASB as issued in ASU No. 2016-09 Compensation – Stock Compensation In May 2014, the FASB began issuing several accounting standards updates associated with accounting for revenue from contracts with customers. The objective of the updates, and subsequent clarifying and industry specific updates, are to 1) remove inconsistencies and weaknesses in revenue requirements, 2) provide a robust framework for addressing revenue recognition issues, 3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets 4) provide more useful information to users of financial statements through improved disclosure requirements, and 5) simplify the preparation of financial statements. The updates are effective in annual reporting periods beginning after December 15, 2017 and the interim periods within that year. The Company is still evaluating the potential impacts that the implementation of these new revenue standards may have on its financial position, operational results, or cash flows. |
3. Fixed Assets, Net (Tables)
3. Fixed Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | As of March 31, 2017 As of December 31, 2016 Computer hardware and software $ 219,590 $ 219,590 Furniture, fixture and equipment 5,910 5,910 Total depreciable property and equipment 225,500 225,500 Less: accumulated depreciation and amortization (110,481 ) (97,216 ) Depreciable property, net 115,019 128,284 Assets under development 689,475 410,121 Fixed assets, net $ 804,494 $ 538,405 |
4. Stockholders' Equity (Tables
4. Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Restricted stock activity table | Shares Weighted Balance, December 31, 2015 1,293,056 $ 0.45 Granted 2,452,965 3.65 Forfeited (688,142 ) 0.62 Balance, December 31, 2016 3,057,879 3.06 Granted 269,560 3.64 Forfeited (59,250 ) 2.44 Balance, March 31, 2017 3,268,189 $ 3.03 |
Stock option activity table | Options Weighted Average Intrinsic Weighted 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 1,660,000 4.15 – 9.80 Exercised (25,000 ) 0.80 – – Forfeited – – – – Balance, March 31, 2017 12,382,558 1.14 2.51 8.02 Exercisable at March 31, 2017 7,049,808 0.24 3.51 7.80 Vested at March 31, 2017 7,712,990 $ 0.40 $ 3.25 7.80 |
6. Restatement of Previously 16
6. Restatement of Previously Issued Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Restated financial statements | 6. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS The unaudited Condensed Consolidated Balance Sheet at March 31, 2017: eXp World Holdings Inc. Condensed Consolidated Balance Sheet March 31, 2017 As Previously Stock Option Agent Other As Restated Assets Current Assets Cash and cash equivalents $ 1,790,640 $ – $ – $ – $ 1,790,640 Restricted cash 786,246 – – – 786,246 Accounts receivable, net of allowance $187,000 3,335,924 – – – 3,335,924 Prepaids and other assets 550,871 – – – 550,871 Total Current Assets 6,463,681 – – – 6,463,681 Other Assets Fixed assets, net 804,494 – – – 804,494 Total Other Assets 804,494 – – – 804,494 Total Assets $ 7,268,175 $ – $ – $ – $ 7,268,175 Liabilities and Stockholders' Equity Current Liabilities Accounts payable $ 467,595 $ – $ – $ – 467,595 Customer deposits 786,246 – – – 786,246 Accrued expenses 3,269,709 – – – 3,269,709 Notes payable 21,974 – – – 21,974 Total Current Liabilities 4,545,524 – – – 4,545,524 Commitments and contingencies – – – – – Stockholders' Equity eXp World Holdings, Inc. Stockholders' Equity: Common Stock, $0.00001 par value 220,000,000 shares authorized; 52,611,239 shares and 52,316,679 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively 525 – – – 525 Additional Paid in Capital 34,791,174 (20,206,855 ) 1,497,793 – 16,082,114 Accumulated deficit (32,074,290 ) 20,206,855 (1,497,793 ) – (13,365,230 ) Accumulated other comprehensive income (loss) 5,242 – – – 5,242 Total Stockholders' Equity 2,722,651 – – – 2,722,651 Total Liabilities and Stockholders' Equity $ 7,268,175 $ – $ – $ – $ 7,268,175 The unaudited Consolidated Statement of Operations for the three months ended March 31, 2017: eXp World Holdings Inc. Consolidated Statement of Operations For the three months ended March 31, 2017 As Previously Stock Option Agent Other As Restated Revenues $ 22,011,237 – – (483,054 ) $ 21,528,183 Operating expenses Cost of revenues 19,279,626 – 163,563 (483,054 ) 18,960,135 General and administrative 2,109,352 2,669,099 (2,570 ) – 4,775,881 Professional fees 364,460 – – – 364,460 Sales and marketing 301,222 – – – 301,222 Total expenses 22,054,660 2,669,099 160,993 (483,054 ) 24,401,698 Net income (loss) from operations (43,423 ) (2,669,099 ) (160,993 ) – (2,873,515 ) Other income – – – – – Interest expense (1,715 ) – – – (1,715 ) Total other income and (expenses) (1,715 ) – – – (1,715 ) Net income (loss) from operations before income tax expense (45,138 ) (2,669,099 ) (160,993 ) – (2,875,230 ) Income tax expense (24,591 ) – – – (24,591 ) Net income (loss) (69,729 ) (2,669,099 ) (160,993 ) – (2,899,821 ) Net loss attributable to non-controlling interest in subsidiary – – – – – Net income (loss) attributable to common shareholders $ (69,729 ) (2,669,099 ) (160,993 ) – (2,899,821 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.00 ) $ (0.05 ) $ 0.00 $ (0.00 ) $ (0.06 ) Diluted from continuing operations $ (0.00 ) $ (0.05 ) $ 0.00 $ (0.00 ) $ (0.06 ) Weighted average shares outstanding Basic 52,416,392 52,416,392 52,416,392 52,416,392 52,416,392 Diluted 52,416,392 52,416,392 52,416,392 52,416,392 52,416,392 eXp World Holdings Inc. Consolidated Statement of Cash Flows For the three months ended March 31, 2017 As Previously Stock Option Agent Option As Restated OPERATING ACTIVITIES Net loss $ (69,729 ) (2,669,099 ) (160,993 ) – (2,899,821 ) Adjustments to reconcile net loss to cash provided by operating activities: Depreciation 13,265 – – – 13,265 Stock compensation expense 648,803 – (2,571 ) – 646,232 Stock option expense (1,201,364 ) 2,669,099 – – 1,467,735 Agent equity program 654,719 – 163,563 – 818,282 Deferred tax asset – – – – – Changes in operating assets and liabilities: Accounts receivable (320,157 ) – – – (320,157 ) Prepaids and other assets (180,482 ) – – – (180,482 ) Restricted Cash (304,542 ) – – (304,542 ) Customer deposits 304,542 – – – 304,542 Accounts payable 150,175 – – – 150,175 Accrued expenses 462,056 – – – 462,056 CASH PROVIDED BY OPERATING ACTIVITIES 157,286 – – – 157,285 INVESTING ACTIVITIES Acquisition of property and equipment (213,625 ) – – – (213,625 ) CASH USED IN INVESTING ACTIVITIES (213,625 ) – – – (213,625 ) FINANCING ACTIVITIES Proceeds from issuance of common stock 160,000 – – – 160,000 Common stock issuance transaction costs (17,842 ) – – – (17,842 ) Proceeds from exercise of options 20,000 – – – 20,000 Principal payments of notes payable (13,804 ) – – – (13,804 ) CASH PROVIDED BY FINANCING ACTIVITIES 148,354 – – – 148,354 Effect of changes in exchange rates on cash and cash equivalents 14,017 – – – 14,017 Net change in cash and cash equivalents 106,032 – – – 106,032 Cash and cash equivalents, beginning of period 1,684,608 – – – 1,684,608 CASH and CASH EQUIVALENTS, END OF PERIOD $ 1,790,640 – – – $ 1,790,640 SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: Cash paid for interest $ 558 – – – $ 558 Cash paid for income taxes $ 30,675 – – – $ 30,675 SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: Fixed asset purchases in accounts payable $ 65,728 – – – $ 65,728 The unaudited Consolidated Statement of Operations for the three months ended March 31, 2016: eXp World Holdings Inc. Consolidated Statement of Operations For the three months ended March 31, 2016 As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Revenues $ 7,142,812 – – (155,829 ) $ 6,986,983 Operating expenses Cost of revenues 6,110,987 – 34,766 (155,829) 5,989,924 General and administrative 1,425,158 (165,752 ) 30,606 – 1,290,012 Professional fees 143,375 – – – 143,375 Sales and marketing 77,143 – – – 77,143 Total expenses 7,756,663 (165,752) 65,372 (155,829) 7,500,454 Net income (loss) from operations (613,851 ) 165,752 (65,372 ) – (513,471 ) Other income 7 – – – 7 Interest expense – – – – – Total other income and (expenses) 7 – – – 7 Net income (loss) from operations before income tax expense (613,844 ) 165,752 (65,372 ) – (513,464 ) Income tax expense (11,603 ) – – – (11,603 ) Net income (loss) (625,447 ) 165,752 (65,372 ) – (525,067 ) Net loss attributable to non-controlling interest in subsidiary 5,580 – – – 5,580 Net income (loss) attributable to common shareholders $ (619,867 ) 165,752 (65,372 ) – (519,487 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.01 ) $ 0.00 $ (0.00 ) $ (0.00 ) $ (0.01 ) Diluted from continuing operations $ (0.01 ) $ 0.00 $ (0.00 ) $ (0.00 ) $ (0.01 ) Weighted average shares outstanding Basic 50,617,769 50,617,769 50,617,769 50,617,769 50,617,769 Diluted 50,617,769 50,617,769 50,617,769 50,617,769 50,617,769 eXp World Holdings Inc. Consolidated Statement of Cash Flows For the three months ended March 31, 2016 As Stock Agent Other As OPERATING ACTIVITIES Net loss $ (625,447 ) 165,752 (65,372 ) $ – (525,067 ) Adjustments to reconcile net loss to cash provided by operating activities: Depreciation 12,626 – – – 12,626 Stock compensation expense 111,416 – 30,606 – 142,022 Stock option expense 433,530 (165,752 ) – – 267,778 Agent equity program 137,309 – 34,766 – 172,075 Deferred tax asset – – – – – Changes in operating assets and liabilities: Accounts receivable (185,095 ) – – – (185,095 ) Prepaids and other assets (118,490 ) – – – (118,490 ) Restricted Cash (95,847 ) – – – (95,847 ) Customer deposits 95,847 – – – 95,847 Accounts payable 23,320 – – – 23,320 Accrued expenses 121,538 – – – 121,538 CASH PROVIDED BY OPERATING ACTIVITIES (89,293 ) – – – (89,293 ) INVESTING ACTIVITIES Acquisition of property and equipment (64,028 ) – – – (64,028 ) CASH USED IN INVESTING ACTIVITIES (64,028 ) – – – (64,028 ) FINANCING ACTIVITIES Repurchase and retirement of common stock (1,000 ) – – – (1,000 ) Repurchase and retirement of subsidiary common stock – – – – – Proceeds from exercise of options – – – – – CASH PROVIDED BY FINANCING ACTIVITIES (1,000 ) – – – (1,000 ) Effect of changes in exchange rates on cash and cash equivalents 7,008 – – – 7,008 Net change in cash and cash equivalents (147,313 ) – – – (147,313 ) Cash and cash equivalents, beginning of period 571,814 – – – 571,814 CASH and CASH EQUIVALENTS, END OF PERIOD $ 424,501 – – – $ 424,501 SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: Cash paid for interest $ – – – – $ – Cash paid for income taxes $ 17,711 – – – $ 17,711 |
3. Fixed Assets, Net (Details)
3. Fixed Assets, Net (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Property and equipment, gross | $ 225,500 | $ 225,500 |
Less: accumulated depreciation and amortization | (110,481) | (97,216) |
Depreciable property, net | 115,019 | 128,284 |
Assets under development | 689,475 | 410,121 |
Fixed assets, net | 804,494 | 538,405 |
Computer hardware and software [Member] | ||
Property and equipment, gross | 219,590 | 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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 13,265 | $ 12,626 |
4. Stockholders' Equity (Detail
4. Stockholders' Equity (Details - Restricted Stock) - Restricted Stock [Member] - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Restricted stock, beginning balance | 3,057,879 | 1,293,056 |
Restricted stock granted | 269,560 | 2,452,965 |
Restricted stock forfeited | (59,250) | (688,142) |
Restricted stock, ending balance | 3,268,189 | 3,057,879 |
Restricted stock, beginning balance, Weighted Average Grant Date Fair Value | $ 3.06 | $ 0.45 |
Restricted stock granted, Weighted Average Grant Date Fair Value | 3.64 | 3.65 |
Restricted stock forfeited, Weighted Average Grant Date Fair Value | 2.44 | 0.62 |
Restricted stock, ending balance, Weighted Average Grant Date Fair Value | $ 3.03 | $ 3.06 |
4. Stockholders' Equity (Deta20
4. Stockholders' Equity (Details - Option activity) - Stock Options [Member] - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options | |||
Options outstanding, beginning balance | 10,747,558 | 7,281,250 | |
Options granted | 1,660,000 | 4,130,000 | |
Options exercised | (25,000) | (159,678) | |
Options forfeited | 0 | (504,014) | |
Options outstanding, ending balance | 12,382,558 | 10,747,558 | 7,281,250 |
Options exercisable | 7,049,808 | ||
Options vested | 7,712,990 | ||
Weighted Average Exercise Price | |||
Weighted average exercise price, Options outstanding, beginning balance | $ 0.67 | $ 0.17 | |
Weighted average exercise price, Options granted | 4.15 | 1.53 | |
Weighted average exercise price, Options exercised | 0.80 | 0.13 | |
Weighted average exercise price, Options forfeited | 1.19 | ||
Weighted average exercise price, Options outstanding, ending balance | 1.14 | 0.67 | $ 0.17 |
Weighted average exercise price, Options exercisable | 0.24 | ||
Weighted average exercise price, Options vested | 0.40 | ||
custom:IntrinsicValueAbstract | |||
Intrinsic value, Options outstanding, beginning balance | 3.56 | 0.17 | |
Intrinsic value, Options granted | |||
Intrinsic value, Options exercised | 1.42 | ||
Intrinsic value, Options forfeited | 3.36 | ||
Intrinsic value, Options outstanding, ending balance | 2.51 | $ 3.56 | $ 0.17 |
Intrinsic value, Options exercisable | 3.51 | ||
Intrinsic value, Options vested | $ 3.25 | ||
Weighted Average Contractual Term | |||
Weighted average remaining contractual term, Options granted | 9 years 9 months 18 days | 9 years 9 months | |
Weighted average remaining contractual term, Options outstanding | 8 years 7 days | 7 years 9 months | 6 years 9 months |
Weighted average remaining contractual term, Options exercisable | 7 years 9 months 18 days | ||
Weighted average remaining contractual term, Options vested | 7 years 9 months 18 days |
4. Stockholders' Equity (Deta21
4. Stockholders' Equity (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Proceeds from exercise of stock options | $ 20,000 | $ 0 | ||
Stock option expense (benefit) | $ 1,467,735 | 267,778 | ||
Stock Options [Member] | ||||
Stock options granted | 1,660,000 | |||
Stock options granted, value | $ 6,227,915 | |||
Assumptions - volatility range, minimum | 152.00% | |||
Assumptions - volatility range, maximum | 157.00% | |||
Assumptions - expected term | 6 years 3 months | |||
Assumptions - risk free interest rate | 2.50% | |||
Assumptions - dividend payments | $ 0 | |||
Restricted Stock [Member] | ||||
Unvested restricted stock awards remaining | 2,240,000 | |||
Unrecognized compensation costs | $ 6,200,000 | |||
Stock Options [Member] | ||||
Stock issued for the exercise of stock options | 25,000 | 159,678 | ||
Options outstanding | 12,382,558 | 10,747,558 | 7,281,250 | |
Weighted average remaining contractual term | 8 years 7 days | 7 years 9 months | 6 years 9 months | |
Stock options granted | 1,660,000 | 4,130,000 | ||
Unrecognized compensation cost | $ 11,914,000 | |||
All Equity and Equity-Linked Awards [Member] | ||||
Share-based compensation | $ 1,467,735 | $ 267,778 | ||
Exercise of Options [Member] | ||||
Stock issued for the exercise of stock options | 25,000 | |||
Services [Member] | ||||
Stock issued for services, shares | 47,751 | |||
Stock issued for services, value | $ 646,232 | |||
Modification of awards [Member] | ||||
Stock option expense (benefit) | $ 368,000 | |||
Accredited Investors [Member] | ||||
Stock issued new, shares | 49,231 | |||
Gross proceeds from private placement | $ 760,000 | |||
Agents and Brokers [Member] | ||||
Stock issued for settlement of commissions payable, shares | 221,809 | 213,429 | ||
Stock issued for settlement of commissions payable, value | $ 818,282 | $ 172,075 |
3. Related Party Transactions (
3. Related Party Transactions (Details Narrative) - Hawkes [Member] | 3 Months Ended |
Mar. 31, 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 |
Vesting period | 3 years |
Share based compensation | $ 105,949 |
Unrecognized compensation cost | $ 1,227,551 |