PaySign (PAYS) 10-Q 12 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 02, 2016
Document And Entity Information
Entity Registrant Name	3PEA INTERNATIONAL, INC.
Entity Central Index Key	1,496,443
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
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		42,985,765
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current assets
Cash	$ 918,081	$ 1,389,494
Cash Restricted	7,674,034	7,063,945
Accounts Receivable	219,880	16,742
Prepaid Expenses and other assets	351,373	254,225
Total current assets	9,163,368	8,724,406
Fixed assets, net	257,245	271,967
Deposits	4,551	3,551
Intangible assets, net	1,341,886	1,264,151
Total assets	10,767,050	10,264,075
Current liabilities
Accounts payable and accrued liabilities	556,402	465,318
Customer card funding	7,674,034	7,063,945
Legal settlement payable, current portion	922,358	915,475
Stocks payable	113,286	125,987
Notes payable	168,160	174,098
Total current liabilities	9,434,240	8,744,823
Long-term liabilities
Legal settlement payable, long-term portion	85,114	339,183
Total long-term liabilities	85,114	339,183
Total liabilities	9,519,354	9,084,006
Stockholders' equity
Common stock; $0.001 par value; 150,000,000 shares authorized, 42,723,265 and 42,510,765 issued and outstanding at March 31, 2016 and December 31, 2015, respectively	42,723	42,511
Additional paid-in capital	6,607,495	6,579,508
Treasury stock at cost, 303,450 shares	(150,000)	(150,000)
Accumulated deficit	(5,118,472)	(5,200,412)
Total 3Pea International, Inc.'s stockholders' equity	1,381,746	1,271,607
Noncontrolling interest	(134,050)	(91,538)
Total stockholders' equity	1,247,696	1,180,069
Total liabilities and stockholders' equity	$ 10,767,050	$ 10,264,075

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock par value (in Dollars per share)	$ .001	$ 0.001
Common stock shares authorized	150,000,000	150,000,000
Common stock shares issued	42,723,265	42,510,765
Common stock shares outstanding	42,723,265	42,510,765
Treasury stock shares	303,450	303,450

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenues	$ 2,181,359	$ 1,598,409
Cost of revenues	1,175,074	1,045,257
Gross profit	1,006,285	553,152
Operating expenses
Depreciation and amortization	123,633	71,760
Selling, general and administrative	831,499	907,870
Total operating expenses	955,132	979,630
Income (loss) from operations	51,153	(426,478)
Other income (expense)
Gain on debt extinguishment	0	11,337
Other income	3,831	0
Interest expense	(15,556)	(16,785)
Total other income (expense)	(11,725)	(5,448)
Income (loss) before provision for income taxes and noncontrolling interest	39,428	(431,926)
Provision for income taxes	0	0
Net income (loss) before noncontrolling interest	39,428	(431,926)
Net loss attributable to the noncontrolling interest	42,512	(9,869)
Net income (loss) attributable to 3Pea International, Inc.	$ 81,940	$ (441,795)
Net income (loss) per common share - basic	$ 0	$ (.01)
Net income (loss) per common share - fully diluted	$ 0	$ 0
Weighted average common shares outstanding - basic	42,676,562	36,834,068
Weighted average common shares outstanding - fully diluted	42,676,562

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) - 3 months ended Mar. 31, 2016 - USD ($)	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Noncontrolling Interest	Total
Beginning balance, shares at Dec. 31, 2015	42,510,765
Beginning balance, value at Dec. 31, 2015	$ 42,511	$ 6,579,508	$ (150,000)	$ (5,200,412)	$ (91,538)	$ 1,180,069
Issuance of stock for accrued liabilities, shares	212,500
Issuance of stock for accrued liabilities, value	$ 212	27,987				28,199
Net income (loss)				81,940	(42,512)	39,428
Ending balance, shares at Mar. 31, 2016	42,723,265
Ending balance, value at Mar. 31, 2016	$ 42,723	$ 6,607,495	$ (150,000)	$ (5,118,472)	$ (134,050)	$ 1,247,696

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ 81,940	$ (441,795)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Change in noncontrolling interest	(42,512)	9,869
Depreciation and amortization	123,633	71,760
Stock based compensation	15,498	45,164
Gain on debt extinguishment	0	(11,337)
Changes in operating assets and liabilities:
Change in restricted cash	(610,089)	2,446,740
Change in accounts receivable	(203,138)	15,557
Change in prepaid expenses	(97,148)	36,946
Change in other assets	(1,000)	0
Change in accounts payable and accrued liabilities	91,084	(221,243)
Change in customer card funding	610,089	(2,446,740)
Change in legal settlement payable	(247,186)	0
Net cash used in operating activities	(278,829)	(495,079)
Cash flows from investing activities:
Purchase of fixed assets	(5,126)	(8,989)
Cash outlay on investment	0	(286,669)
Purchase of intangible assets	(181,520)	(94,210)
Net cash used in investing activities	(186,646)	(389,868)
Cash flows from financing activities:
Payments in notes payable - related party	0	(700,440)
Payments on notes payable	(5,938)	(120,916)
Net cash used in financing activities	(5,938)	(821,356)
Net change in cash	(471,413)	(1,706,303)
Cash, beginning of period	1,389,494	3,886,968
Cash, end of period	$ 918,081	$ 2,180,665

1. BASIS OF PRESENTATION AND SU

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES	3 Months Ended
	Mar. 31, 2016
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, 2015. 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, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. About 3PEA International, Inc. 3PEA International, Inc. is a vertically integrated provider of innovative prepaid card programs and processing services for corporate, consumer and government applications. Our payment solutions are utilized by our corporate customers as a means to increase customer loyalty, reduce administration costs and streamline operations. Public sector organizations can utilize our solutions to disburse public benefits or for internal payments. We market our prepaid debit card solutions under our PaySign ® We have developed prepaid card programs for healthcare reimbursement payments, pharmaceutical co-pay assistance, plasma donor remuneration and corporate incentive and rewards, including incentive payment solutions for the automotive industry. 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 ® 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 SMS messaging. Principles of consolidation Use of estimates Restricted cash Goodwill and intangible assets 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 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

2. FIXED ASSETS

2. FIXED ASSETS	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
FIXED ASSETS	Fixed assets consist of the following: As of As of Equipment $ 665,940 $ 660,813 Software 114,097 114,097 Furniture and fixtures 85,646 85,646 Leasehold equipment 36,499 36,499 902,182 897,055 Less: accumulated depreciation 644,937 625,088 Fixed assets, net $ 257,245 $ 271,967

3. INTANGIBLE ASSETS

3. INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	Intangible assets consist of the following: As of As of Patents and trademarks $ 34,771 $ 34,771 Platform 1,437,687 1,284,551 Kiosk 64,802 64,802 Licenses 357,411 329,028 1,894,671 1,713,152 Less: accumulated amortization 552,785 449,001 Intangible assets, net $ 1,341,886 $ 1,264,151 Intangible assets are amortized over their useful lives ranging from periods of 5 to 15 years.

4. NOTES PAYABLE

4. NOTES PAYABLE	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
NOTES PAYABLE	Notes payable consist of the following: As of As of Note payable due to a shareholder of the Company, bearing interest at 8%, due on demand and unsecured. 150,000 150,000 Notes payable due to an equipment finance Company bearing interest at 13.49% and 12.89%. 18,160 24,098 168,160 174,098 Less: non-current portion – – $ 168,160 $ 174,098

5. COMMON STOCK

5. COMMON STOCK	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
COMMON STOCK	At March 31, 2016, 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 42,723,265 shares of common stock, and no shares of preferred stock. 2016 Transactions · 212,500 shares of common stock for prior services which had previously been recorded as accrued liability for $28,199 or $0.13 per share. 2015 Transactions · 31,659 shares of common stock for services valued at $0.23 per share. · 12,500 shares of common stock for prior services which had previously been recorded as accrued liability for $2,692 or $0.24 per share. · 200,000 shares of common stock for prior services which had previously been recorded as accrued liability for $65,211 or $0.18 per share. Common Stock Repurchase Program On October 29, 2014, the Company’s board of directors approved a share repurchase program that enables the Company to purchase shares of common stock. Under this program, 3PEA is authorized, but not obligated to repurchase, through open market purchases or privately negotiated transactions up to two million seven hundred thousand (2,700,000) of its shares of common stock, depending on market conditions, share price and other factors, subject to relevant rules and regulations under U.S. securities law. The Company acquired 2,442,000 through this program. The share repurchase program expired on October 29, 2015. Stock and Warrant Grants: In March 2015 the Company granted 200,000 shares of common stock along with 200,000 warrants to a consultant. The shares were valued at $30,600 or $0.16 per share (including a 15% discount of fair market value due to these shares being restricted and lacking market liquidity). The warrants were valued at $34,611, using the Black-Scholes options pricing model under the following assumptions: stock price at issuance of $0.18 per share; exercise price of $0.25, 3 year life; discount rate of 2.00%; and volatility rate of 245%. The 200,000 shares and 200,000 warrants granted have a vesting period of six months of which one month, and were fully vested as of March 31, 2016. The approximate value vested for the three months ended March 31, 2015 was $4,600, for which a payable has been recorded for the same vested amount. As of March 31, 2015, 200,000 shares or 200,000 warrants granted have been issued. In August 2014 the Company granted 150,000 shares of common stock to a consultant with a total value of $25,500 or $0.17 per share (including a 15% discount of fair market value due to these shares being restricted and lacking market liquidity). The 150,000 shares granted have a vesting period of three years of which twenty months had vested as of March 31, 2016. The approximate value vested for the three months ended March 31, 2016 and 2015 was $2,100 and $2,100, respectively As of March 31, 2016, 100,000 shares granted have been issued. In September 2014 the Company granted 150,000 shares of common stock along with 150,000 Class A warrants and 150,000 Class B warrants to an advisory board member. The shares were valued at $19,250 or $0.13 per share (including a 15% discount of fair market value due to these shares being restricted and lacking market liquidity. The warrants were valued at $42,761, using the Black-Scholes options pricing model under the following assumptions: stock price at issuance of $0.15 per share; exercise price of $0.25 for the Class A warrants and $0.50 for the Class B warrants; 3 year life; discount rate of 2.00%; and volatility rate of 245%. The 150,000 shares and 300,000 warrants granted vest over a 3 year period, at 50,000 shares and 100,000 warrants per year of which nineteen months had vested as of March 31, 2016. The approximate value vested for the three months ended March 31, 2016 and 2015 was $5,100 and $5,100, respectively. As of March 31, 2016, none of the 150,000 shares or 300,000 warrants granted has been issued. In September 2014 the Company granted 200,000 shares of common stock along with 200,000 warrants to a consultant. The shares were valued at $30,600 or $0.16 per share (including a 15% discount of fair market value due to these shares being restricted and lacking market liquidity). The warrants were valued at $34,611, using the Black-Scholes options pricing model under the following assumptions: stock price at issuance of $0.18 per share; exercise price of $0.25; 3 year life; discount rate of 2.00%; and volatility rate of 245%. The 150,000 shares and 200,000 warrants granted had a vesting period of six months and were fully vested as March 31, 2016. In April 2016, the company had issued the 200,000 shares and warrant for 200,000 shares of common stock. In October 2014 the Company granted 150,000 shares of common stock to an advisory board member with a total value of $32,400 or $0.21 per share (including a 10% discount of fair market value due to these shares being restricted and lacking market liquidity). The 150,000 shares granted will vest over a 3 year period, at 50,000 shares per year of which eighteen months had vested as of March 31, 2016. The approximate value vested for the three months ended March 31, 2016 and 2015 was $2,700 and $2,200, respectively. As of March 31, 2016, 62,500 of the shares previously vested have been issued and the remaining 87,500 shares granted have not been issued. In November 2014, the Company issued a warrant for 100,000 shares of common stock as part of a debt settlement, whereby the noteholder returned 2,442,000 shares of the Company’s common stock in connection with the Company’s satisfaction of all principal and interest due on the note. The warrant has an exercise price of $0.50 and life of three years. In October 2013, the Company granted 300,000 shares of common stock to an employee of the Company with a total value of $38,250 or $0.15 per share (including a 15% discount of fair market value due to these shares being restricted and lacking market liquidity). The 300,000 shares granted have a vesting period of three years. The approximate value vested for the three months ended March 31, 2016 and 2015 was $3,200 and $3,200, respectively. As of March 31, 2016, 200,000 shares granted have been issued and the remaining 100,000 shares granted have not been issued. In August 2012, the Company granted a total of 5,000,000 shares of common stock to various officers and directors of the Company with a total value of $680,000 or $0.14 per share (including a 15% discount of fair market value due to these shares being restricted and lacking market liquidity). The 5,000,000 shares granted had a vesting period of five years of which all have been fully vested as of December 31, 2014. The approximate value vested for the year ended December 31, 2014 was $680,000 for which a payable has been recorded for the same vested amount as of December 31, 2014. As of March 31, 2015, all of the 5,000,000 shares granted had been issued.

6. LEGAL SETTLEMENT PAYABLE

6. LEGAL SETTLEMENT PAYABLE	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
LEGAL SETTLEMENT	On August 11, 2015, PSKW, LLC (“PSKW”) served the Company, with a complaint styled PSKW, LLC v. 3Pea International, Inc.

7. SUBSEQUENT EVENTS

7. SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	In April 2016, the Company issued 200,000 shares to a consultant which had been previously accrued for as a stock payable at December 31, 2015. In April 2016, the Company issued 12,500 shares to a member of the board of advisors, which had been previously accrued for as a stock payable at December 31, 2015.

1. BASIS OF PRESENTATION AND 14

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Principles of consolidation	Principles of consolidation
Use of estimates	Use of estimates
Restricted cash	Restricted cash
Goodwill and intangible assets	Goodwill and intangible assets 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 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

2. FIXED ASSETS (Tables)

2. FIXED ASSETS (Tables)	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Fixed assets	As of As of Equipment $ 665,940 $ 660,813 Software 114,097 114,097 Furniture and fixtures 85,646 85,646 Leasehold equipment 36,499 36,499 902,182 897,055 Less: accumulated depreciation 644,937 625,088 Fixed assets, net $ 257,245 $ 271,967

3. INTANGIBLE ASSETS (Tables)

3. INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2016
LIABILITIES AND STOCKHOLDERS' DEFICIT
Intangible Assets	As of As of Patents and trademarks $ 34,771 $ 34,771 Platform 1,437,687 1,284,551 Kiosk 64,802 64,802 Licenses 357,411 329,028 1,894,671 1,713,152 Less: accumulated amortization 552,785 449,001 Intangible assets, net $ 1,341,886 $ 1,264,151

5. NOTES PAYABLE (Tables)

5. NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
5. Notes payable	As of As of Note payable due to a shareholder of the Company, bearing interest at 8%, due on demand and unsecured. 150,000 150,000 Notes payable due to an equipment finance Company bearing interest at 13.49% and 12.89%. 18,160 24,098 168,160 174,098 Less: non-current portion – – $ 168,160 $ 174,098

2. FIXED ASSETS (Details)

2. FIXED ASSETS (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Fixed Assets Gross	$ 902,182	$ 897,055
Less: accumulated depreciation	644,937	625,088
Fixed assets, net	257,245	271,967
Equipment [Member]
Fixed Assets Gross	665,940	660,813
Software [Member]
Fixed Assets Gross	114,097	114,097
Furniture and Fixtures [Member]
Fixed Assets Gross	85,646	85,646
Leasehold Improvements [Member]
Fixed Assets Gross	$ 36,499	$ 36,499

3. INTANGIBLE ASSETS (Details)

3. INTANGIBLE ASSETS (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Intangible assets gross	$ 1,894,671	$ 1,713,152
Less: accumulated amortization	552,785	449,001
Intangible assets, net	1,341,886	1,264,151
Patents and Trademarks
Intangible assets gross	34,771	34,771
Platform And Licenses [Member]
Intangible assets gross	1,437,687	1,284,551
Kiosk
Intangible assets gross	64,802	64,802
Licenses
Intangible assets gross	$ 357,411	$ 329,028

3. INTANGIBLE ASSETS (Details N

3. INTANGIBLE ASSETS (Details Narrative)	3 Months Ended
	Mar. 31, 2016
Minimum
Intangible assets useful lives	5 years
Maximum
Intangible assets useful lives	15 years

4. NOTES PAYABLE (Details)

4. NOTES PAYABLE (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Notes payable	$ 168,160	$ 174,098
Less: non-current portion	0	0
Notes payable current portion	168,160	174,098
Note payable 1
Notes payable	150,000	150,000
Note payable 2
Notes payable	$ 18,160	$ 24,098

4. NOTES PAYABLE (Details Narra

4. NOTES PAYABLE (Details Narrative)	3 Months Ended
	Mar. 31, 2016
Note payable 1
Debt interest rate	8.00%
Note payable 2
Debt interest rate	13.49% and 12.89%

5. COMMON STOCK (Details Narrat

5. COMMON STOCK (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Authorized capital stock	150,000,000		150,000,000
Authorized capital stock par value	$ .001		$ 0.001
Preferred stock	10,000,000		10,000,000
Preferred stock par value	$ 0.001		$ 0.001
Common stock outstanding	42,723,265		42,510,765
Issuance of stock for accrued liabilities, value	$ 28,199
Stock issued for services, shares issued		31,659
Shares authorized to be repurchased			$ 2,700,000
Shares repurchased during period	0		2,442,000
Shares remaining to be eligible for repurchase	258,000
Stock repurchase expiration date	Oct. 29, 2015
March 2,015
Common stock granted		200,000
Common stock granted value		$ 30,600
Warrants granted		200,000
Warrants granted value		$ 34,611
Common stock issued		0
Warrants issued		0
Accrued Liability [Member]
Issuance of stock for accrued liabilities, shares	212,500	212,500
Issuance of stock for accrued liabilities, value	$ 28,199	$ 67,903

7. LEGAL SETTLEMENT (Details Na

7. LEGAL SETTLEMENT (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Legal Settlement Details Narrative
Litigation settlement	$ 2,500,000
Litigation settlement payable	$ 1,007,472	$ 1,254,658