PaySign (PAYS) 10-Q 15 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Oct. 31, 2013
Document And Entity Information	'	'
Entity Registrant Name	'3PEA INTERNATIONAL, INC.	'
Entity Central Index Key	'0001496443	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
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	'	38,936,106
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets	'	'
Cash	$1,880,172	$1,027,239
Cash Restricted	5,022,865	6,905,680
Accounts Receivable	203,895	391,611
Prepaid Expenses and other assets	161,391	218,950
Total current assets	7,268,323	8,543,480
Fixed assets, net	163,941	121,078
Deposits	5,796	4,896
Intangible assets, net	551,260	495,252
Total assets	7,989,320	9,164,706
Current liabilities	'	'
Accounts payable and accrued liabilities	2,172,444	1,431,317
Customer card funding	5,022,865	6,905,680
Notes payable- related parties	567,990	533,000
Notes payable	199,324	187,780
Total current liabilities	7,962,623	9,057,777
Total liabilities	7,962,623	9,057,777
Stockholders' deficit	'	'
Common stock; $0.001 par value; 150,000,000 shares authorized, 38,936,606 and 38,936,606 issued and outstanding at March 31, 2014 and December 31, 2013, respectively	38,936	38,936
Additional paid-in capital	5,570,406	5,570,406
Treasury stock at cost, 303,450 shares	-150,000	-150,000
Accumulated deficit	-5,480,634	-5,400,559
Total 3Pea International, Inc.'s stockholders' deficit	-21,292	58,783
Noncontrolling interest	47,989	48,146
Total stockholders' deficit	26,697	106,929
Total liabilities and stockholders' deficit	$7,989,320	$9,164,706

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Common stock par value (in Dollars per share)	$0.00	$0.00
Common stock shares authorized	150,000,000	150,000,000
Common stock shares issued	38,936,606	38,936,606
Common stock shares outstanding	38,936,606	38,936,606
Treasury stock shares	303,450	303,450

CONSOLIDATED_STATEMENTS_OF_INC

CONSOLIDATED STATEMENTS OF INCOME (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]	'	'
Revenues	$2,407,675	$2,111,037
Cost of revenues	1,929,267	1,591,471
Gross profit	478,408	519,566
Operating expenses	'	'
Depreciation and amortization	33,947	10,181
Selling, general and administrative	508,878	268,604
Total operating expenses	542,825	278,785
Income (loss) from operations	-64,417	240,781
Other income (expense)	'	'
Interest expense	-15,815	-14,383
Total other income (expense)	-15,815	-14,383
Income (loss) before provision for income taxes and noncontrolling interest	-80,232	226,398
Provision for income taxes	0	0
Net income (loss) before noncontrolling interest	-80,232	226,398
Net (income) loss attributable to the noncontrolling interest	-157	-7
Net income attributable to 3Pea International, Inc.	($80,075)	$226,405
Net income per common share - basic	$0	$0.01
Net income per common share - fully diluted	'	$0.01
Weighted average common shares outstanding - basic	38,936,106	38,927,540
Weighted average common shares outstanding - fully diluted	'	42,388,040

CONSOLIDATED_STATEMENT_OF_STOC

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $)	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Non-controlling Interest	Total
Beginning Balance, Amount at Dec. 31, 2013	$38,936	$5,570,406	($150,000)	($5,400,559)	$48,146	$106,929
Beginning Balance, Shares at Dec. 31, 2013	38,936,606	'	'	'	'	'
Net income	'	'	'	-80,075	-157	-80,232
Ending Balance, Amount at Mar. 31, 2014	$38,936	$5,570,406	($150,000)	($5,480,634)	$47,989	$26,697
Ending Balance, Shares at Mar. 31, 2014	38,936,606	'	'	'	'	'

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net income	($80,075)	$226,405
Adjustments to reconcile net income to net cash provided by (used in) operating activities:	'	'
Change in noncontrolling interest	-157	-7
Depreciation and amortization	33,947	10,181
Stock based compensation	39,706	43,713
Changes in operating assets and liabilities:	'	'
Change in restricted cash	1,882,815	738,554
Change in prepaid expenses and other assets	56,309	-39,450
Change in deposits	-900	0
Change in accounts receivable	187,716	27,567
Change in accounts payable and accrued liabilities	702,671	-305,910
Change in customer card funding	-1,882,815	-738,554
Net cash provided by (used in) operating activities	939,217	-37,501
Cash flows from investing activities:	'	'
Purchase of fixed assets	-54,329	-18,690
Purchase of intangible assets	-78,489	-44,218
Net cash used by investing activities	-132,818	-62,908
Cash flows from financing activities:	'	'
Proceeds from borrowing on note payable - related party	34,990	0
Proceeds from borrowing on note payable	14,244	0
Payments on notes payable	-2,700	0
Net cash used by financing activities	46,534	0
Net change in cash	852,933	-100,409
Cash, beginning of period	1,027,239	1,872,911
Cash, end of period	$1,880,172	$1,772,502

1_BASIS_OF_PRESENTATION_AND_SU

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES	'
	The foregoing unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles in the United States of America for complete financial statements. These unaudited interim financial statements should be read in conjunction with the audited financial statements and the notes thereto included on Form 10-K for the year ended December 31, 2013.. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented.
	The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumption are inherent in the preparation of the Company’s financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions that could have a material effect on the reported amounts of the Company’s financial position and results of operations.
	Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013.
	About 3PEA International, Inc.
	3PEA International, Inc. is a payment solutions company providing prepaid debit program management and processing services. We provide a card processing platform consisting of proprietary systems and innovative software applications based on the unique needs of our programs. We have extended our processing business capabilities through the recent launch of our PaySign® platform. We design and process prepaid programs that run on the platform through which our customers can define the services they wish to offer cardholders. Through this platform, we provide a variety of services including transaction processing, cardholder enrollment, value loading, cardholder account management, reporting, and customer service.
	We have developed prepaid card programs for healthcare reimbursement payments, pharmaceutical co-pay assistance and corporate and incentive rewards. We plan to expand our product offering to include payroll cards, general purpose re-loadable cards, travel cards, and expense reimbursement cards. Our cards are offered to end users through our relationships with bank issuers.
	Our proprietary PaySign® platform was built on modern cross-platform architecture and designed to be highly flexible, scalable and customizable. The platform allows 3PEA to significantly expand its operational capabilities by facilitating our entry into new markets within the payments space through its flexibility and ease of customization. The PaySign® platform delivers cost benefits and revenue building opportunities to our partners.
	We manage all aspects of the debit card lifecycle, from managing the card design and approval processes with partners and associations, to production, packaging, distribution, and personalization. We also oversee inventory and security controls, renewals, lost and stolen card management and replacement. We deploy a fully staffed, in-house customer service department which utilizes bi-lingual customer service agents, Interactive Voice Response, (IVR) and two way SMS messaging.
	Principles of consolidation – The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated.
	Use of estimates – The preparation of consolidated financial statements in conformity with 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
	Restricted cash – restricted cash is a cash account controlled by the Company which funds are received related to the card programs from our customers. The Company has recorded a corresponding customer card funding liability.
	Goodwill and intangible assets - Goodwill is the purchase premium after adjusting for the fair value of net assets acquired. Goodwill is not amortized but is reviewed for potential impairment on an annual basis, or when events or circumstances indicate a potential impairment, at the reporting unit level. A reporting unit, as defined under applicable accounting guidance, is a business segment or one level below a business segment. We may in any given period bypass the qualitative assessment and proceed directly to a two-step method to assess and measure impairment of the reporting units goodwill. We first assess qualitative factors to determine whether it is more likely-than-not (i.e., a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying value. This step serves as the basis for determining whether it is necessary to perform the two-step quantitative impairment test. The first step of the quantitative impairment test involves a comparison of the estimated fair value of each reporting unit to its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired; however, if the carrying amount of the reporting unit exceeds its estimated fair value, then the second step of the quantitative impairment test must be performed. The second step compares the implied fair value of the reporting unit’s goodwill with its carrying amount to measure the amount of impairment loss, if any. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess.
	For intangible assets, we recognize an impairment loss if the carrying amount of the intangible asset is not recoverable and exceeds fair value. The carrying amount of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset.
	Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives.
	Revenue and expense recognition – We recognize revenue when (1) there is persuasive evidence of an arrangement existing, (2) delivery has occurred, (3) our price to the buyer is fixed or determinable and (4) collectability of the receivables is reasonably assured. We recognize the costs of these revenues at the time revenue is recognized. Any fees paid up front are deferred until such time such services have been considered rendered. As of March 31, 2014 and December 31, 2013, there were no deferred revenues recorded.
	We generate the following types of revenues:
		·	Administration and usage fees, charged to our prepaid card clients when our programs are created, distributed or reloaded. Such revenues are recognized when such services are performed.
		·	Transaction fees, paid by the applicable networks and passed through by our card issuing banks when our SVCs are used in a purchase or ATM transaction. Such revenues are recognized when such services are performed.
		·	Maintenance, administration, transaction fees, charged to an SVC and not under any multiple element arrangements. Such revenues are recognized when such services are performed.
		·	Program maintenance management fees charged to our clients. Such revenues are not under any multiple element arrangements and are recognized when such services are performed.
		·	Software development and consulting services to our clients. Such revenues are recognized in accordance with ASC 985-605.
	The Company records all revenues on gross basis in accordance with ASC 605-45 since it is the primary obligor and establishes the price in the revenue arrangement. The Company is currently under no obligation for refunding any fees or has any obligations for disputed claim settlements.
	Earnings (loss) per share - Basic earnings (loss) per share exclude any dilutive effects of options, warrants and convertible securities. Basic earnings (loss) per share is computed using the weighted-average number of outstanding common stocks during the applicable period. Diluted earnings per share is computed using the weighted-average number of common and common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is antidilutive.

2_FIXED_ASSETS

2. FIXED ASSETS	3 Months Ended
	Mar. 31, 2014
Property, Plant and Equipment [Abstract]	'
FIXED ASSETS	'
	Fixed assets consist of the following:
		As of			As of
		31-Mar-14			31-Dec-13
	Equipment	$	250,675		$	233,631
	Software		297,978			297,978
	Furniture and fixtures		75,118			65,118
	Organizational costs		13,934			–
	Leasehold equipment		34,494			21,143
			672,199			617,870
	Less: accumulated depreciation		(508,258	)		(496,792	)
	Fixed assets, net	$	163,941		$	121,078

3_INTANGIBLE_ASSETS

3. INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
INTANGIBLE ASSETS	'
	Intangible assets consist of the following:
		As of			As of
		31-Mar-14			31-Dec-13
	Patents and trademarks	$	33,465		$	33,465
	Licenses		25,176			–
	Platform development		558,090			504,777
			616,731			538,242
	Less: accumulated amortization		(65,471	)		(42,990	)
	Intangible assets, net	$	551,260		$	495,252
	Intangible assets are amortized over their useful lives ranging from periods of 5 to 15 years.

4_COMMON_STOCK

4. COMMON STOCK	3 Months Ended
	Mar. 31, 2014
Equity [Abstract]	'
COMMON STOCK	'
	At March 31, 2014, the Company's authorized capital stock was 150,000,000 shares of common stock, par value $0.001 per share, and 10,000,000 shares of preferred stock, par value $0.001 per share. On that date, the Company had outstanding 38,936,606 shares of common stock, and no shares of preferred stock.
	2014 Transactions: During the three months ended March 31, 2014, the Company issued shares of common stock as follows:
		·	None
	2013 Transactions: During the three months ended March 31, 2013, the Company issued shares of common stock as follows:
		·	25,000 shares of common stock for an employee signing bonus valued at .26 per share
	Stock Grants:
	In February 2013, the Company granted 75,000 shares of common stock to an employee of the Company with a total value of $16,575 or $0.22 per share (including a 15% discount of fair market value due to these shares being restricted and lacking market liquidity). The 75,000 shares granted have completely vested as of March 31, 2014 with an approximate value of $ 16,575, for which a payable has been recorded for the same amount as of March 31, 2014. As of March 31, 2014, none of the 75,000 shares granted have been issued.

5_NOTES_PAYABLE_RELATED_PARTIE

5. NOTES PAYABLE - RELATED PARTIES	3 Months Ended
	Mar. 31, 2014
Related Party Transactions [Abstract]	'
5. NOTES PAYABLE - RELATED PARTIES	'
		As of		As of
		31-Mar-14		31-Dec-13
	Note payable due to a shareholder of the company, bearing interest at 8.5%, renewable annually upon prepayment of one year’s interest, due on demand and unsecured.*	$	501,000	$	501,000
	Note payable due to a director of the company and shareholder, bearing no interest, due on demand and unsecured.		52,990		18,000
	Note payable due to a director of the company and shareholder, bearing no interest, due on demand and unsecured.		14,000		14,000
		$	567,990	$	533,000
	*	In March 2014, the Company entered an agreement with the noteholder to modify the repayment terms of the note.   The Company paid $50,000 on the note at the time of the modification, which was applied to accrued interest, and agreed to pay $5,000 per month until November 1, 2014.  In the event the Company raises at least $2,000,000 in debt or equity financing by November 1, 2014, the Company agreed to repay the note in full.  In the event the Company does not raise at least $2,000,000 in debt or equity financing by November 1, 2014, the Company agreed to make a further payment to the noteholder of $250,000, and the noteholder agreed to convert $250,000 of the amount due into common stock at the average closing price per share for the 20 consecutive trading days preceding November 1, 2014, provided that the Company will not issue any shares in conversion of the note if it would cause the noteholder to own in excess of 9.9% of the common stock.  The balance of any amount due on the note would be converted into a new note that also bears interest at 8.5% per annum, but is payable in equal monthly payments of principal and interest sufficient to amortize the balance over three years from the date of issuance of the new note.  The new note will also be payable in full at any time that the company raises at least $2,000,000 in debt or equity financing.

6_NOTES_PAYABLE

6. NOTES PAYABLE	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
6. NOTES PAYABLE	'
	Notes payable consist of the following:
		As of		As of
		31-Mar-14		31-Dec-13
	Note payable due to a shareholder of the company, bearing interest at 8%, due on demand and unsecured.	$	150,000	$	150,000
	Note payable due to a shareholder of the company.		19,400		19,400
	Notes payable due to an equipment finance company bearing interest at 13.49% and 12.89%.		29,924		18,380
			199,324		187,780
	Less: non-current portion		–		–
		$	199,324	$	187,780

1_BASIS_OF_PRESENTATION_AND_SU1

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Policies)	3 Months Ended
	Mar. 31, 2014
Basis Of Presentation And Summary Of Significant Policies Policies	'
Basis Of Presentation and Summary of Significant Policies	'
	The foregoing unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles in the United States of America for complete financial statements. These unaudited interim financial statements should be read in conjunction with the audited financial statements and the notes thereto included on Form 10-K for the year ended December 31, 2013.. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented.
	The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumption are inherent in the preparation of the Company’s financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions that could have a material effect on the reported amounts of the Company’s financial position and results of operations.
	Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013.
	About 3PEA International, Inc.
	3PEA International, Inc. is a payment solutions company providing prepaid debit program management and processing services. We provide a card processing platform consisting of proprietary systems and innovative software applications based on the unique needs of our programs. We have extended our processing business capabilities through the recent launch of our PaySign® platform. We design and process prepaid programs that run on the platform through which our customers can define the services they wish to offer cardholders. Through this platform, we provide a variety of services including transaction processing, cardholder enrollment, value loading, cardholder account management, reporting, and customer service.
	We have developed prepaid card programs for healthcare reimbursement payments, pharmaceutical co-pay assistance and corporate and incentive rewards. We plan to expand our product offering to include payroll cards, general purpose re-loadable cards, travel cards, and expense reimbursement cards. Our cards are offered to end users through our relationships with bank issuers.
	Our proprietary PaySign® platform was built on modern cross-platform architecture and designed to be highly flexible, scalable and customizable. The platform allows 3PEA to significantly expand its operational capabilities by facilitating our entry into new markets within the payments space through its flexibility and ease of customization. The PaySign® platform delivers cost benefits and revenue building opportunities to our partners.
	We manage all aspects of the debit card lifecycle, from managing the card design and approval processes with partners and associations, to production, packaging, distribution, and personalization. We also oversee inventory and security controls, renewals, lost and stolen card management and replacement. We deploy a fully staffed, in-house customer service department which utilizes bi-lingual customer service agents, Interactive Voice Response, (IVR) and two way SMS messaging.
Principles of consolidation	'
	Principles of consolidation – The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated.
Use of estimates	'
	Use of estimates – The preparation of consolidated financial statements in conformity with 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Restricted cash	'
	Restricted cash – restricted cash is a cash account controlled by the Company which funds are received related to the card programs from our customers. The Company has recorded a corresponding customer card funding liability.
Goodwill and intangible assets	'
	Goodwill and intangible assets - Goodwill is the purchase premium after adjusting for the fair value of net assets acquired. Goodwill is not amortized but is reviewed for potential impairment on an annual basis, or when events or circumstances indicate a potential impairment, at the reporting unit level. A reporting unit, as defined under applicable accounting guidance, is a business segment or one level below a business segment. We may in any given period bypass the qualitative assessment and proceed directly to a two-step method to assess and measure impairment of the reporting units goodwill. We first assess qualitative factors to determine whether it is more likely-than-not (i.e., a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying value. This step serves as the basis for determining whether it is necessary to perform the two-step quantitative impairment test. The first step of the quantitative impairment test involves a comparison of the estimated fair value of each reporting unit to its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired; however, if the carrying amount of the reporting unit exceeds its estimated fair value, then the second step of the quantitative impairment test must be performed. The second step compares the implied fair value of the reporting unit’s goodwill with its carrying amount to measure the amount of impairment loss, if any. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess.
	For intangible assets, we recognize an impairment loss if the carrying amount of the intangible asset is not recoverable and exceeds fair value. The carrying amount of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset.
	Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives.
Revenue and expense recognition	'
	Revenue and expense recognition – We recognize revenue when (1) there is persuasive evidence of an arrangement existing, (2) delivery has occurred, (3) our price to the buyer is fixed or determinable and (4) collectability of the receivables is reasonably assured. We recognize the costs of these revenues at the time revenue is recognized. Any fees paid up front are deferred until such time such services have been considered rendered. As of March 31, 2014 and December 31, 2013, there were no deferred revenues recorded.
	We generate the following types of revenues:
		·	Administration and usage fees, charged to our prepaid card clients when our programs are created, distributed or reloaded. Such revenues are recognized when such services are performed.
		·	Transaction fees, paid by the applicable networks and passed through by our card issuing banks when our SVCs are used in a purchase or ATM transaction. Such revenues are recognized when such services are performed.
		·	Maintenance, administration, transaction fees, charged to an SVC and not under any multiple element arrangements. Such revenues are recognized when such services are performed.
		·	Program maintenance management fees charged to our clients. Such revenues are not under any multiple element arrangements and are recognized when such services are performed.
		·	Software development and consulting services to our clients. Such revenues are recognized in accordance with ASC 985-605.
	The Company records all revenues on gross basis in accordance with ASC 605-45 since it is the primary obligor and establishes the price in the revenue arrangement. The Company is currently under no obligation for refunding any fees or has any obligations for disputed claim settlements.
Earnings (loss) per share	'
	Earnings (loss) per share - Basic earnings (loss) per share exclude any dilutive effects of options, warrants and convertible securities. Basic earnings (loss) per share is computed using the weighted-average number of outstanding common stocks during the applicable period. Diluted earnings per share is computed using the weighted-average number of common and common stock equivalent shares outstanding during the period. Common stock equivalent shares are excluded from the computation if their effect is antidilutive.

2_FIXED_ASSETS_Tables

2. FIXED ASSETS (Tables)	3 Months Ended
	Mar. 31, 2014
FixedAssetsTablesAbstract	'
Fixed assets	'
	Fixed assets consist of the following:
		As of			As of
		31-Mar-14			31-Dec-13
	Equipment	$	250,675		$	233,631
	Software		297,978			297,978
	Furniture and fixtures		75,118			65,118
	Organizational costs		13,934			–
	Leasehold equipment		34,494			21,143
			672,199			617,870
	Less: accumulated depreciation		(508,258	)		(496,792	)
	Fixed assets, net	$	163,941		$	121,078

3_INTANGIBLE_ASSETS_Tables

3. INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2014
IntangibleAssetsTablesAbstract	'
Intangible Assets	'
	Intangible assets consist of the following:
		As of			As of
		31-Mar-14			31-Dec-13
	Patents and trademarks	$	33,465		$	33,465
	Licenses		25,176			–
	Platform development		558,090			504,777
			616,731			538,242
	Less: accumulated amortization		(65,471	)		(42,990	)
	Intangible assets, net	$	551,260		$	495,252

5_NOTES_PAYABLE_RELATED_PARTIE1

5. NOTES PAYABLE - RELATED PARTIES (Tables)	3 Months Ended
	Mar. 31, 2014
Related Party Transactions [Abstract]	'
Notes payable - related parties	'
		As of		As of
		31-Mar-14		31-Dec-13
	Note payable due to a shareholder of the company, bearing interest at 8.5%, renewable annually upon prepayment of one year’s interest, due on demand and unsecured.	$	501,000	$	501,000
	Note payable due to a director of the company and shareholder, bearing no interest, due on demand and unsecured.		52,990		18,000
	Note payable due to a director of the company and shareholder, bearing no interest, due on demand and unsecured.		14,000		14,000
		$	567,990	$	533,000

6_NOTES_PAYABLE_Tables

6. NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Notes payable	'
	Notes payable consist of the following:
		As of		As of
		31-Mar-14		31-Dec-13
	Note payable due to a shareholder of the company, bearing interest at 8%, due on demand and unsecured.	$	150,000	$	150,000
	Note payable due to a shareholder of the company.		19,400		19,400
	Notes payable due to an equipment finance company bearing interest at 13.49% and 12.89%.		29,924		18,380
			199,324		187,780
	Less: non-current portion		–		–
		$	199,324	$	187,780

2_FIXED_ASSETS_Details

2. FIXED ASSETS (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Fixed Assets Gross	$672,199	$617,870
Less: accumulated depreciation	-508,258	-496,792
Fixed assets, net	163,941	121,078
Equipment [Member]	'	'
Fixed Assets Gross	250,675	233,631
Software Development [Member]	'	'
Fixed Assets Gross	297,978	297,978
Furniture and Fixtures [Member]	'	'
Fixed Assets Gross	75,118	65,118
OrganizationalCosts	'	'
Fixed Assets Gross	13,934	0
Leasehold Improvements [Member]	'	'
Fixed Assets Gross	$34,494	$21,143

3_INTANGIBLE_ASSETS_Details

3. INTANGIBLE ASSETS (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Intangible assets gross	$616,731	$538,242
Less: accumulated amortization	-65,471	-42,990
Intangible assets, net	551,260	495,252
Patents and Trademarks	'	'
Intangible assets gross	33,465	33,465
License Agreement Terms [Member]	'	'
Intangible assets gross	25,176	0
Platform development in process	'	'
Intangible assets gross	$558,090	$504,777

3_INTANGIBLE_ASSETS_Details_Na

3. INTANGIBLE ASSETS (Details Narrative)	3 Months Ended
	Mar. 31, 2014
Minimum	'
Intangible assets useful lives	'5 years
Maximum	'
Intangible assets useful lives	'5 years

4_COMMON_STOCK_Details_Narrati

4. COMMON STOCK (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Common Stock Details Narrative	'	'
Authorized capital stock	150,000,000	150,000,000
Authorized capital stock par value	$0.00	$0.00
Preferred stock	10,000,000	10,000,000
Preferred stock par value	$0.00	$0.00
Common stock outstanding	38,936,606	38,936,606
Stock grants vested	75,000	'
Value of vested stock grants	$16,575	'
Stock grants issued	0	'

5_NOTES_PAYABLE_RELATED_PARTIE2

5. NOTES PAYABLE - RELATED PARTIES (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Notes payable - related parties	$567,990	$533,000
Note payable 1	'	'
Notes payable - related parties	501,000	501,000
Note payable 2	'	'
Notes payable - related parties	52,990	18,000
Note payable 3	'	'
Notes payable - related parties	$14,000	$14,000

6_NOTES_PAYABLE_Details

6. NOTES PAYABLE (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2013	Mar. 31, 2013	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014	Dec. 31, 2013
			Note payable 1	Note payable 1	Note payable 2	Note payable 2	Note payable 3	Note payable 3
Notes payable	$199,324	$187,780	$150,000	$150,000	$19,400	$19,400	$29,924	$29,924
Less: non-current portion	0	0	'	'	'	'	'	'
Notes payable current portion	$199,324	$187,780	'	'	'	'	'	'