PaySign (PAYS) 10-Q 13 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 01, 2017
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	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		43,660,765
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash	$ 1,916,736	$ 1,631,943
Cash Restricted	12,498,529	10,002,505
Accounts Receivable	183,521	110,269
Prepaid Expenses and other assets	521,895	270,634
Total current assets	15,120,681	12,015,351
Fixed assets, net	852,136	300,761
Deposits	5,551	5,551
Intangible assets, net	1,524,063	1,550,044
Total assets	17,502,431	13,871,707
Current liabilities
Accounts payable and accrued liabilities	806,454	765,596
Customer card funding	12,498,529	10,002,505
Legal settlement payable - current portion	0	254,900
Notes payable	0	124,168
Total current liabilities	13,304,983	11,147,169
Long-term liabilities
Notes payable	0	27,892
Total long-term liabilities	0	27,892
Total liabilities	13,304,983	11,175,061
Stockholders' equity
Common stock; $0.001 par value; 150,000,000 shares authorized, 43,660,765 and 43,185,765 issued and outstanding at September 30, 2017 and December 31, 2016, respectively	43,661	43,186
Additional paid-in capital	7,085,324	6,797,759
Treasury stock at cost, 303,450 shares at September 30, 2017 and December 31, 2016	(150,000)	(150,000)
Accumulated deficit	(2,545,609)	(3,799,613)
Total 3Pea International, Inc.'s stockholders' equity	4,433,376	2,891,332
Noncontrolling interest	(235,928)	(194,686)
Total stockholders' equity	4,197,448	2,696,646
Total liabilities and stockholders' equity	$ 17,502,431	$ 13,871,707

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
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	43,660,765	43,185,765
Common stock shares outstanding	43,660,765	43,185,765
Treasury stock shares	303,450	303,450

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenues	$ 4,001,991	$ 2,812,536	$ 10,621,055	$ 7,369,540
Cost of revenues (excluding depreciation and amortization)	2,145,621	1,522,458	5,834,709	4,062,062
Gross profit	1,856,370	1,290,078	4,786,346	3,307,478
Operating expenses
Depreciation and amortization	276,533	149,342	725,401	406,328
Selling, general and administrative	1,104,280	660,556	2,847,955	2,054,351
Total operating expenses	1,380,813	809,898	3,573,356	2,460,679
Income from operations	475,557	480,180	1,212,990	846,799
Other income (expense)
Other income	14,398	4,986	40,395	10,900
Interest expense	0	(20,483)	(31,623)	(58,748)
Total other income (expense)	14,398	(15,497)	8,772	(47,848)
Income before provision for income taxes and noncontrolling interest	489,955	464,683	1,221,762	798,951
Provision for income taxes	3,000	0	9,000	0
Net income before noncontrolling interest	486,955	464,683	1,212,762	798,951
Net loss attributable to the noncontrolling interest	13,213	15,746	41,242	99,097
Net income attributable to 3Pea International, Inc.	$ 500,168	$ 480,429	$ 1,254,004	$ 898,048
Net income per common share - basic	$ 0.01	$ 0.01	$ 0.03	$ 0.02
Net income per common share - fully diluted	$ 0.01	$ 0.01	$ 0.03	$ 0.02
Weighted average common shares outstanding - basic	43,474,895	42,948,265	43,308,750	42,844,570
Weighted average common shares outstanding - fully diluted	44,544,895	43,138,279	44,378,750	42,991,542

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($)	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Noncontrolling Interest	Total
Beginning balance, shares at Dec. 31, 2016	43,185,765
Beginning balance, value at Dec. 31, 2016	$ 43,186	$ 6,797,759	$ (150,000)	$ (3,799,613)	$ (194,686)	$ 2,696,646
Issuance of stock for services, shares	75,000
Issuance of stock for services, value	$ 75	12,807				12,882
Stock issued for employee bonus, shares	200,000
Stock issued for employee bonus, value	$ 200	84,200				84,400
Stock-based compensation		140,758				140,758
Exercise of Warrants, shares	200,000
Exercise of Warrants, value	$ 200	49,800				50,000
Net income (loss)				1,254,004	(41,242)	1,212,762
Ending balance, shares at Sep. 30, 2017	43,660,765
Ending balance, value at Sep. 30, 2017	$ 43,661	$ 7,085,324	$ (150,000)	$ (2,545,609)	$ (235,928)	$ 4,197,448

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Cash flows from operating activities:
Net income	$ 500,168	$ 480,429	$ 1,254,004	$ 898,048
Adjustments to reconcile net income to net cash provided by operating activities:
Change in noncontrolling interest			(41,242)	(99,097)
Depreciation and amortization	276,533	149,342	725,401	406,328
Stock based compensation			238,040	40,091
Changes in operating assets and liabilities:
Change in accounts receivable			(73,252)	(93,531)
Change in prepaid expenses			(251,261)	4,028
Change in other assets			0	(2,000)
Change in accounts payable and accrued liabilities			40,858	237,511
Change in customer card funding			2,496,024	1,726,127
Change in legal settlement payable			(254,900)	(746,954)
Net cash provided by operating activities			4,133,672	2,370,551
Cash flows from investing activities:
Purchase of fixed assets			(649,260)	(52,111)
Purchase of intangible assets			(601,535)	(551,448)
Net cash used in investing activities			(1,250,795)	(603,559)
Cash flows from financing activities:
Proceeds from borrowing on note payable			0	29,053
Proceeds from exercise of warrants			50,000	0
Payments on notes payable			(152,060)	(126,308)
Net cash used in financing activities			(102,060)	(97,255)
Net change in cash and restricted cash			2,780,817	1,669,737
Cash and restricted cash, beginning of period			11,634,448	8,453,439	$ 8,453,439
Cash and restricted cash, end of period	$ 14,415,265	$ 10,123,176	14,415,265	10,123,176	$ 11,634,448
Non-cash financing activities:
Transfer of accrued interest from accrued liabilities to notes payable			0	115,227
Interest paid			46,663	58,748
Income taxes paid			$ 16,200	$ 0

1. BASIS OF PRESENTATION AND SU

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES	The foregoing unaudited consolidated 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, 2016. 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 and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. 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 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, donor compensation and corporate incentive and rewards. We plan to expand our product offering to include payroll cards, general purpose re-loadable cards, travel cards, and expense reimbursement and per diem 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), SMS alerts and two way 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. No impairment was deemed necessary in the three and nine month period ended September 30,2017. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. Platform and Licenses are comprised of costs associated with our development and continual development of our platform which includes direct development costs, software and licenses. 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 (Stored Value Cards) 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 Reclassification of prior year presentation Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Management is currently assessing the impact of this pronouncement on the Company’s financial statements.

2. FIXED ASSETS

2. FIXED ASSETS	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
FIXED ASSETS	Fixed assets consist of the following: September 30, December 31, Equipment $ 1,343,717 $ 746,117 Software 120,795 117,163 Furniture and fixtures 119,550 107,141 Website Costs 21,117 – Leasehold improvements 50,999 36,499 1,656,178 1,006,920 Less: accumulated depreciation (804,042 ) (706,159 ) Fixed assets, net $ 852,136 $ 300,761 Fixed assets are depreciated over their useful lives ranging from periods of 3 to 7 years.

3. INTANGIBLE ASSETS

3. INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	Intangible assets consist of the following: September 30, December 31, Patents and trademarks $ 34,940 $ 34,771 Platform and licenses 2,602,924 2,008,307 Kiosk development 64,802 64,802 Licenses 389,165 382,414 3,091,831 2,490,294 Less: accumulated amortization (1,567,768 ) (940,250 ) Intangible assets, net $ 1,524,063 $ 1,550,044 Intangible assets are amortized over their useful lives ranging from periods of 3 to 5 years.

4. NOTES PAYABLE

4. NOTES PAYABLE	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
NOTES PAYABLE	Notes payable consist of the following: September 30, December 31, Note payable due to a shareholder of the Company, bearing fixed interest at 8%, at December 31, 2016 due on demand and unsecured. $ – $ 102,613 Notes payable due to various equipment finance companies bearing interest from 12.89% to 15.14% at December 31, 2016. – 49,447 – 152,060 Less: current portion – (124,168 ) Notes payable – long term portion $ – $ 27,892

5. COMMON STOCK

5. COMMON STOCK	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
COMMON STOCK	At September 30, 2017, 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 43,660,765 shares of common stock, and no shares of preferred stock. 2017 Transactions · 75,000 shares of common stock for current services rendered totaling $12,882 or $0.17 per share (average cost). · 200,000 shares of common stock issued to an employee as a bonus totaling $84,400 or $0.42 per share (average cost) · 200,000 shares of common stock were issued related to exercise of a warrant with an exercise price of $0.25 for a total of $50,000 in cash proceeds. 2016 Transactions · 437,500 shares of common stock for current services rendered and prior services which had previously been recorded as accrued liability totaling $98,810 or $0.23 per share (average cost). Stock and Warrant Grants: In July 2017 the Company granted 200,000 shares of restricted common stock to an employee of the Company with a total value of $84,400 or $0.422 per share. These shares have been issued. Concurrently, the Company also granted the employee four equal tranches of 200,000 restricted common shares, each valued at $84,400 which will vest in equal amounts over a four year period on the last day of each quarter, commencing December 31, 2017. None of these shares have been issued. In November 2016, the Company granted a total of 5,000,000 shares to certain officers and directors of the Company with a total value of $787,950 or $0.15759 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 have a quarterly vesting period of five years with the first vesting period occurring on December 31, 2016. The approximate value vested for the three and nine months ended September 30, 2017 was $39,397 and $118,191 respectively. As of September 30, 2017, none of the shares have been issued. In November 2016, the Company granted 210,000 shares to a consultant. The shares were valued at $33,094 or $0.15759 per share (including a 15% discount of fair market value due to these shares being restricted and lacking market liquidity). The 210,000 shares have a quarterly vesting period of three years with the first vesting period occurring on December 31, 2016. The approximate value vested for the three and nine months ended September 30, 2017 was $2,758 and $8,274, respectively. The approximate value vested for 2016 is $2,758. As of September 30, 2017, none of the shares have been issued. 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 $0.50, 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, and were fully vested as of March 31, 2016. As of March 31, 2017, the 200,000 shares have been issued and the warrants for 200,000 shares were granted. 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 and is fully vested as of September 30, 2017. The approximate value vested for the three and nine months ended September 30, 2017 and 2016 was $2,100, and $6,300, respectively. As of September 30, 2017, 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 thirty-six months had vested as of September 30, 2017. The approximate value vested for the three months ended September 30, 2017 and 2016 $5,100 respectively and for the nine months ended September 30, 2017 and 2016 was $14,200 and $15,300, respectively. As of September 30, 2017, all of the 150,000 shares were issued and the 300,000 warrants granted have expired. 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 200,000 shares and 200,000 warrants granted had a vesting period of nine months and were fully vested as March 31, 2015. During the three months ended March 31, 2016 the company had issued the 200,000 shares and warrant for 200,000 shares of common stock. As of September 30, 2017, warrants relating to 200,000 shares have been exercised for total proceeds of $50,000. 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 and is fully vested as of September 30, 2017. The approximate value vested for the three months and nine months ended September 30, 2017 and 2016 was $2,700 and $8,100, respectively. As of September 30, 2017, all 150,000 of the shares have been issued. In November 2014, the Company issued a warrant for 100,000 shares of common stock as part of an issuance of note payable totaling $100,000. The warrant has an exercise price of $0.50 per share 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 and was fully vested as of October 2016. The approximate value vested for the three and nine months ended September 30, 2017 and 2016 was $0.00 and $3,200, respectively. As of March 31, 2017, all 300,000 shares granted have been issued.

6. LEGAL SETTLEMENT PAYABLE

6. LEGAL SETTLEMENT PAYABLE	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
LEGAL SETTLEMENT	On August 11, 2015, PSKW, LLC (“PSKW”) served the Company, with a complaint titled PSKW, LLC v. 3Pea International, Inc.

7. SUBSEQUENT EVENTS

7. SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	There were no reportable subsequent events after September 30, 2017 through the date of this filing.

1. BASIS OF PRESENTATION AND 14

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Policies)	9 Months Ended
	Sep. 30, 2017
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. No impairment was deemed necessary in the three and nine month period ended September 30,2017. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. Platform and Licenses are comprised of costs associated with our development and continual development of our platform which includes direct development costs, software and licenses.
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 (Stored Value Cards) 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
Reclassification of prior year presentation	Reclassification of prior year presentation
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Management is currently assessing the impact of this pronouncement on the Company’s financial statements.

2. FIXED ASSETS (Tables)

2. FIXED ASSETS (Tables)	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Fixed assets	September 30, December 31, Equipment $ 1,343,717 $ 746,117 Software 120,795 117,163 Furniture and fixtures 119,550 107,141 Website Costs 21,117 – Leasehold improvements 50,999 36,499 1,656,178 1,006,920 Less: accumulated depreciation (804,042 ) (706,159 ) Fixed assets, net $ 852,136 $ 300,761

3. INTANGIBLE ASSETS (Tables)

3. INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2017
LIABILITIES AND STOCKHOLDERS' DEFICIT
Intangible Assets	Intangible assets consist of the following: September 30, December 31, Patents and trademarks $ 34,940 $ 34,771 Platform and licenses 2,602,924 2,008,307 Kiosk development 64,802 64,802 Licenses 389,165 382,414 3,091,831 2,490,294 Less: accumulated amortization (1,567,768 ) (940,250 ) Intangible assets, net $ 1,524,063 $ 1,550,044 Intangible assets are amortized over their useful lives ranging from periods of 3 to 5 years.

4. NOTES PAYABLE (Tables)

4. NOTES PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Notes payable	Notes payable consist of the following: September 30, December 31, Note payable due to a shareholder of the Company, bearing fixed interest at 8%, at December 31, 2016 due on demand and unsecured. $ – $ 102,613 Notes payable due to various equipment finance companies bearing interest from 12.89% to 15.14% at December 31, 2016. – 49,447 – 152,060 Less: current portion – (124,168 ) Notes payable – long term portion $ – $ 27,892

2. FIXED ASSETS (Details)

2. FIXED ASSETS (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Fixed Assets Gross	$ 1,656,178	$ 1,006,920
Less: accumulated depreciation	(804,042)	(706,159)
Fixed assets, net	852,136	300,761
Equipment [Member]
Fixed Assets Gross	1,343,717	746,117
Software [Member]
Fixed Assets Gross	120,795	117,163
Furniture and Fixtures [Member]
Fixed Assets Gross	119,550	107,141
Website Costs [Member]
Fixed Assets Gross	21,117	0
Leasehold Improvements [Member]
Fixed Assets Gross	$ 50,999	$ 36,499

2. FIXED ASSETS (Details Narrat

2. FIXED ASSETS (Details Narrative)	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Fixed assets, estimated useful life	Fixed assets are depreciated over their useful lives ranging from periods of 3 to 7 years.

3. INTANGIBLE ASSETS (Details)

3. INTANGIBLE ASSETS (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Intangible assets gross	$ 3,091,831	$ 2,490,294
Less: accumulated amortization	(1,567,768)	(940,250)
Intangible assets, net	1,524,063	1,550,044
Patents and Trademarks [Member]
Intangible assets gross	34,940	34,771
Platform and Licenses [Member]
Intangible assets gross	2,602,924	2,008,307
Kiosk Development [Member]
Intangible assets gross	64,802	64,802
Licenses [Member]
Intangible assets gross	$ 389,165	$ 382,414

3. INTANGIBLE ASSETS (Details N

3. INTANGIBLE ASSETS (Details Narrative)	9 Months Ended
	Sep. 30, 2017
Minimum [Member]
Intangible assets useful lives	3 years
Maximum [Member]
Intangible assets useful lives	5 years

4. NOTES PAYABLE (Details)

4. NOTES PAYABLE (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Notes payable	$ 0	$ 152,060
Less: current portion	0	(124,168)
Notes payable - long-term portion	0	27,892
Note payable 1 [Member]
Notes payable	0	102,613
Note payable 2 [Member]
Notes payable	$ 0	$ 49,447

4. NOTES PAYABLE (Details Narra

4. NOTES PAYABLE (Details Narrative)	12 Months Ended
	Dec. 31, 2016
Note payable 1 [Member]
Debt interest rate	8.00%
Note payable 2 [Member]
Debt interest rate	12.89% to 15.14%

5. COMMON STOCK (Details Narrat

5. COMMON STOCK (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Authorized capital stock	150,000,000		150,000,000		150,000,000
Authorized capital stock par value	$ .001		$ .001		$ 0.001
Preferred stock	10,000,000		10,000,000
Preferred stock par value	$ 0.001		$ 0.001
Preferred stock outstanding	0		0
Common stock outstanding	43,660,765		43,660,765		43,185,765
Stock issued for services, value			$ 12,882
Proceeds from warrant exercise			50,000	$ 0
Stock issued for compensation, value			84,400
Stock based compensation expense			$ 238,040	40,091
Warrant Exercises [Member]
Stock issued for exercise of warrant, shares issued			200,000
Proceeds from warrant exercise			$ 50,000
November 2016 [Member] | Officers and Directors [Member]
Stock issued for compensation, shares					5,000,000
Stock issued for compensation, value					$ 787,950
Stock based compensation expense	$ 39,397		$ 118,191
Stock granted, shares issued	0		0
November 2016 [Member] | Consultant [Member]
Stock issued for compensation, shares					210,000
Stock issued for compensation, value					$ 33,094
Stock based compensation expense	$ 2,758		$ 8,274		$ 2,758
Stock granted, shares issued	0		0
March 2015 [Member] | Consultant [Member]
Stock granted, shares issued	200,000		200,000
Warrants issued			200,000
August 2014 [Member] | Consultant [Member]
Stock based compensation expense	$ 2,100	$ 2,100	$ 6,300	6,300
Stock granted, shares issued	100,000		100,000
September 2014 [Member] | Consultant [Member]
Stock issued for exercise of warrant, shares issued			200,000
Proceeds from warrant exercise			$ 50,000
September 2014 [Member] | Advisory Board Member [Member]
Stock based compensation expense	$ 5,100	5,100	$ 14,200	15,300
Stock granted, shares issued	150,000		150,000
Warrants expired			300,000
October 2014 [Member] | Advisory Board Member [Member]
Stock based compensation expense	$ 2,700	2,700	$ 8,100	8,100
Stock granted, shares issued	150,000		150,000
October 2013 [Member] | Employee [Member]
Stock based compensation expense	$ 0	$ 3,200	$ 0	$ 3,200
Stock granted, shares issued	300,000		300,000
Current Services [Member]
Stock issued for services, shares			75,000
Stock issued for services, value			$ 12,882
Employee Bonus [Member] | July 2017 [Member]
Stock issued for compensation, shares			200,000
Stock issued for compensation, value			$ 84,400
Current And Prior Services [Member]
Stock issued for services, shares				437,500
Stock issued for services, value				$ 98,810