Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 25, 2014 | Jun. 28, 2013 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'Rightscorp, Inc. | ' | ' |
Entity Central Index Key | '0001506270 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $9,187,500 |
Entity Common Stock, Shares Outstanding | ' | 69,804,729 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets | ' | ' |
Cash | $36,331 | $10,049 |
Prepaid expenses | 19,639 | 28,883 |
Other current asset | ' | 5,698 |
Total Current Assets | 55,970 | 44,630 |
Other Assets | ' | ' |
Fixed assets, net | 56,453 | 28,851 |
Intangible assets, net | 33,800 | 50,700 |
Total Assets | 146,223 | 124,181 |
Current Liabilities: | ' | ' |
Accounts payable and accrued liabilities | 928,304 | 514,874 |
Convertible notes payable, net of discount of $10,891 and $101,551 | 202,609 | 518,975 |
Total Current Liabilities | 1,130,913 | 1,033,849 |
Total Liabilities | 1,130,913 | 1,033,849 |
Stockholders' Deficit | ' | ' |
Preferred stock, $.001 par value; 10,000,000 shares authorized; null shares and 3,220,000 shares issued and outstanding, respectively | ' | 3,220 |
Common stock, $.001 par value; 250,000,000 shares authorized; 68,797,102 and 28,014,392 shares issued and outstanding, respectively | 68,797 | 28,014 |
Common stock to be issued | 380,000 | ' |
Additional paid-in capital | 2,807,185 | 1,256,991 |
Accumulated deficit | -4,240,672 | -2,197,893 |
Total Stockholders' Deficit | -984,690 | -909,668 |
Total Liabilities And Stockholders' Deficit | $146,223 | $124,181 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Convertible notes payable, discount | $10,891 | $101,551 |
Preferrred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ' | 3,220,000 |
Preferred stock, shares outstanding | ' | 3,220,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 68,797,102 | 28,014,392 |
Common stock, shares outstanding | 68,797,102 | 28,014,392 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement [Abstract] | ' | ' |
Revenues | $324,016 | $96,565 |
Operating expenses: | ' | ' |
Copyright holder fees | 161,868 | 49,023 |
General and administrative | 1,663,921 | 1,028,438 |
Sales and marketing | 275,616 | 69,614 |
Depreciation and amortization | 33,438 | 24,647 |
Total operating expenses | 2,134,843 | 1,171,722 |
Loss from Operations | -1,810,827 | -1,075,157 |
Other income (expenses): | ' | ' |
Interest expense | -298,077 | -124,166 |
Debt Default | -185 | ' |
Debt forgiveness | 66,310 | ' |
Total other expense | -231,952 | -124,166 |
Loss from operations before income taxes | -2,042,779 | -1,199,323 |
Provision for income taxes | ' | ' |
Net loss | ($2,042,779) | ($1,199,323) |
Net loss per share - basic and diluted | ($0.06) | ($0.13) |
Weighted average common shares - basic and diluted | 36,421,507 | 9,558,321 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Deficit (USD $) | Preferred stock [Member] | Common Stock [Member] | Stock To Be Issued [Member] | Additional Paid-In Capital {Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2011 | $3,020 | $27,622 | ' | $841,463 | ($998,570) | ($126,465) |
Balance, shares at Dec. 31, 2011 | 3,020,000 | 27,622,500 | ' | ' | ' | ' |
Common stock issued for service | ' | 392 | ' | 33,392 | ' | 33,784 |
Common stock issued for service, shares | ' | 391,892 | ' | ' | ' | ' |
Warrants issued for service | ' | ' | ' | 76,415 | ' | 76,415 |
Warrants issued for compensation | ' | ' | ' | 26,645 | ' | 26,645 |
Warrants issued pursuant to financing | ' | ' | ' | 199,276 | ' | 199,276 |
Stock issued for cash | 200 | ' | ' | 79,800 | ' | 80,000 |
Stock issued for cash, shares | 200,000 | ' | ' | ' | ' | ' |
Net loss | ' | ' | ' | ' | -1,199,323 | -1,199,323 |
Balance at Dec. 31, 2012 | 3,220 | 28,014 | ' | 1,256,991 | -2,197,893 | -909,668 |
Balance, shares at Dec. 31, 2012 | 3,220,000 | 28,014,392 | ' | ' | ' | ' |
Common stock issued for service | ' | 862 | ' | 73,462 | ' | 74,324 |
Common stock issued for service, shares | ' | 862,162 | ' | ' | ' | ' |
Preferred stock converted to common stock | -3,220 | 9,338 | ' | -6,118 | ' | ' |
Preferred stock converted to common stock, shares | -3,220,000 | 9,338,000 | ' | ' | ' | ' |
Warrants issued for service | ' | ' | ' | 91,947 | ' | 91,947 |
Warrants issued for compensation | ' | ' | ' | 145,538 | ' | 145,538 |
Stock issued for cash | ' | 250 | ' | 124,750 | ' | 125,000 |
Stock issued for cash, shares | ' | 250,000 | ' | ' | ' | ' |
Note Conversion | ' | 7,833 | ' | 1,252,182 | ' | 1,260,015 |
Note Conversion, shares | ' | 7,832,548 | ' | ' | ' | ' |
Reverse merger with Stevia | ' | 22,500 | 80,000 | -131,567 | ' | -29,067 |
Reverse merger with Stevia, shares | ' | 22,500,000 | ' | ' | ' | ' |
Common stock to be issued for cash | ' | ' | 300,000 | ' | ' | 300,000 |
Net loss | ' | ' | ' | ' | -2,042,779 | -2,042,779 |
Balance at Dec. 31, 2013 | ' | $68,797 | $380,000 | $2,807,185 | ($4,240,672) | ($984,690) |
Balance, shares at Dec. 31, 2013 | ' | 68,797,102 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows from Operating Activities | ' | ' |
Net loss | ($2,042,779) | ($1,199,323) |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' |
Depreciation and Amortization | 33,438 | 24,647 |
Common stock issued for service | 74,324 | 33,784 |
Warrants issued for service & compensation | 91,947 | 103,060 |
Amortization of discount on convertible debt | 236,199 | 97,725 |
Changes in operating assets and liabilities: | ' | ' |
(Increase)/Decrease in prepaid expense | 9,244 | -23,683 |
(Increase)/Decrease in other current asset | 5,698 | -5,698 |
Increase in accounts payable and accrued liabilities | 435,372 | 340,602 |
Net cash used in operating activities | -1,156,557 | -628,886 |
Cash Flows from Investing Activities: | ' | ' |
Purchases of equipment and furniture | -44,141 | -31,516 |
Net cash used in investing activities | -44,141 | -31,516 |
Cash Flows from Financing Activities | ' | ' |
Proceeds from convertible notes | 534,980 | 720,526 |
Repayment of convertible notes | -83,000 | -100,000 |
Proceeds from notes payable | 150,000 | ' |
Preferred stock issued for cash | ' | 80,000 |
Common stock issued for cash | 125,000 | ' |
Common stock to be issued for cash | 300,000 | ' |
Proceeds from related party debt | 200,000 | ' |
Payments on related party debt | ' | -29,520 |
Change in bank overdraft | ' | -555 |
Net cash provided by financing activities | 1,226,980 | 670,451 |
Net increase (decrease) in cash | 26,282 | 10,049 |
Cash, beginning of period | 10,049 | ' |
Cash, end of period | 36,331 | 10,049 |
Supplemental Disclourse of Cash Flow Information | ' | ' |
Cash paid during the period for interest | ' | 7,508 |
Cash paid during the period for income taxes | ' | ' |
Non-Cash Investing & Financing Disclosure | ' | ' |
Warrants issued as discount on convertible debt | 145,538 | 199,276 |
Stock issued for conventional debt | 350,000 | ' |
Stock issued for convertible debt: accrued interest | $910,014 | ' |
Nature_of_the_Business
Nature of the Business | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Nature of Business | ' |
Note 1 – Nature of the Business | |
The Company was organized under the laws of the State of Nevada on April 9, 2010, and its fiscal year end is December 31. The Company is the parent company of Rightscorp, Inc., a Delaware corporation formed on January 20, 2011. See Note 4. | |
The Company has developed products and intellectual property rights relating to policing copyright infringement on the Internet. The Company is dedicated to the vision that digital creative works should be protected economically so that the next generation of great music, movies, video games and software can be made and their creators can prosper. The Company has a patent-pending, proprietary method for solving copyright infringement by collecting payments from illegal downloaders via notifications sent to their ISP’s. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Note 2 – Summary of Significant Accounting Policies | |
Basis of Presentation | |
These financial statements have been prepared using the basis of accounting generally accepted in the United States of America. The financial statements as of December 31, 2013 and December 31, 2012 reflect all adjustments which, in the opinion of management, are necessary to fairly state the Company’s financial position and the results of its operations for the periods presented in accordance with the accounting principles generally accepted in the United States of America. All adjustments are of a normal recurring nature. | |
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Use of Estimates | |
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. | |
Fair Value of Financial Instruments | |
The Company does not currently have any instruments requiring fair-value accounting disclosures. | |
Cash and Cash Equivalents | |
The Company considers all cash on hand and in banks, including accounts in book overdraft positions, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. As of December 31, 2013 and December 31, 2012 the Company had no cash equivalents. | |
Advertising | |
The Company expenses advertising costs as incurred. For the year ended December 31, 2013 and December 31, 2012, advertising expenses were $21,639 and $574, respectively. | |
Capitalization of Fixed Assets | |
The Company capitalizes expenditures related to property and equipment, subject to a minimum rule, that have a useful life greater than one year for: (1) assets purchased; (2) existing assets that are replaced, improved or the useful lives have been extended; or (3) all land, regardless of cost. Acquisitions of new assets, additions, replacements and improvements (other than land) costing less than the minimum rule in addition to maintenance and repair costs, including any planned major maintenance activities, are expensed as incurred. | |
Capitalization of Intangible Assets | |
The Company records the purchase on intangible assets not purchased in a business combination in accordance with the ASC Topic 350. | |
Concentrations of Risk | |
We derived approximately 25% of our revenues from a contract with one customer in 2013. For the year ended December 31, 2013, we derived approximately 32% of our sales from contracts with two customers. Our standard contract with customers is for an initial six month term, and renews automatically for successive one month terms, unless either party terminates upon 30 days’ written notice to the other party. | |
The Company’s bank accounts are deposited in insured institutions. At December 31, 2013 and December 31, 2012, the Company’s bank deposits did not exceed the insured amounts. | |
Impairment of Long-Lived Assets | |
The Company reviews and evaluates long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. The assets are subject to impairment consideration under FASB ASC 360-10-35-17, if events or circumstances indicate that their carrying amount might not be recoverable. When the Company determines that an impairment analysis should be done, the analysis will be performed using the rules of FASB ASC 930-360-35, Asset Impairment, and 360-10 through 15-5, Impairment or Disposal of Long-Lived Assets. | |
Revenue Recognition | |
The Company generates revenue from the sale of a service to copyright owners under which copyright owners retain the Company to identify and collect settlement payments from Internet users who have infringed on their copyrights. Revenue is recognized when the ISP responds to a notice provided by the Company, and pays the fee which acts as a wavier to the infringement against the copyright owner. | |
Income Taxes | |
The Company utilizes FASB ASC 740, “Income Taxes,” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the tax basis of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized. | |
The Company generated a deferred tax asset through net operating loss carry-forward. However, a valuation allowance of 100% has been established due to the uncertainty of the Company’s realization of the net operating loss carry forward prior to its expiration. | |
Interest and penalties on tax deficiencies recognized in accordance with ACS accounting standards are classified as income taxes in accordance with ASC Topic 740-10-50-19. | |
Recent Accounting Pronouncements | |
There are no recently issued accounting pronouncements that the Company has yet to adopt that are expected to have a material effect on its financial position, results of operations, or cash flows. | |
Going Concern | |
The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company had a cumulative net loss from inception (January 20, 2011) to December 31, 2013 of $4,240,672. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it establishes a revenue stream and becomes profitable. If the Company is unable to obtain adequate capital it could be forced to cease development of operations. | |
In order to continue as a going concern, develop a reliable source of revenues, and achieve a profitable level of operations the Company will need, among other things, additional capital resources. Management’s plans to continue as a going concern include raising additional capital through borrowing and sales of common stock. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. | |
The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
Note 3 – Income Taxes | |||||||||
Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||||||||
Net deferred tax liabilities consist of the following components as of December 31, 2013 and 2012: | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
NOL Carryover | $ | 1,201,400 | $ | 694,300 | |||||
Accrued Payroll | 148,200 | 48,800 | |||||||
Depreciation | 11,600 | 4,100 | |||||||
Deferred tax liabilities: | - | - | |||||||
Valuation allowance | (1,361,200 | ) | (747,200 | ) | |||||
Net deferred tax asset | $ | - | $ | - | |||||
The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended December 31, 2013 and 2012 due to the following: | |||||||||
2013 | 2012 | ||||||||
Book Income | $ | (875,100 | ) | $ | (513,800 | ) | |||
Meals and Entertainment | 2,200 | 3,000 | |||||||
Non-Deductible Expenses | 136,500 | 144,000 | |||||||
Accrued Payroll | 99,100 | 25,700 | |||||||
Deprecation | 7,500 | (900 | ) | ||||||
Other | 300 | 300 | |||||||
Valuation allowance | 629,500 | 341,700 | |||||||
$ | - | $ | - | ||||||
At December 31, 2013, the Company had net operating loss carryforwards of approximately $2,804,000 that may be offset against future taxable income from the year 2014 through 2033. No tax benefit has been reported in the December 31, 2012 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. | |||||||||
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years. |
Acquisition_of_Rightscorp_Dele
Acquisition of Rightscorp Deleware | 12 Months Ended | ||
Dec. 31, 2013 | |||
Business Combinations [Abstract] | ' | ||
Acquisition of Rightscorp Deleware | ' | ||
Note 4 – Acquisition of Rightscorp Deleware | |||
On October 25, 2013 (the “Closing Date”), the Company entered into and closed an Agreement and Plan of Merger (the “Merger Agreement”), with Rightscorp Merger Acquisition Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of the Company (the “Subsidiary”) and Rightscorp, Inc., a Delaware corporation (“Rightscorp Delaware”). Pursuant to the Merger Agreement, (i) the Subsidiary merged into Rightscorp Delaware, such that Rightscorp Delaware became a wholly-owned subsidiary of the Company, (ii) the Company issued (a) 45,347,102 shares (the “Acquisition Shares”), of the Company’s common stock to the shareholders of Rightscorp Delaware representing approximately 65.9% of the Company’s aggregate issued and outstanding common stock following the closing of the Merger Agreement (following the Share Cancellation and the Private Placement, each as defined below), in exchange for all of the issued and outstanding shares of common stock of Rightscorp Delaware, (b) outstanding warrants to purchase 1,831,969 shares of common stock of Rightscorp Delaware were converted into outstanding warrants to purchase 5,312,703 shares of common stock of the Company, and (iv) outstanding convertible notes in the aggregate amount of $233,844 (including outstanding principal and accrued interest thereon) of Rightscorp Delaware were amended to be convertible into shares of common stock of the Company at a conversion price of $0.1276. | |||
In connection with the Merger Agreement and the Financing (defined below), as of the Closing Date the Company issued and sold an aggregate of 950,000 units (the “Private Placement”), for a purchase price of $0.50 per unit, with each unit consisting of one share of common stock and a five-year warrant to purchase one share of common stock with an exercise price of $0.75 (the “Private Placement Warrants”). | |||
In connection with the Merger Agreement and the Private Placement, in addition to the foregoing: | |||
(i) Effective on the Closing Date, 21,000,000 shares of common stock were returned to the Company for cancellation (the “Share Cancellation”). | |||
(ii) As a result of the reverse merger, The Company issued 22,500,000 shares with $(29,067) in value, which represented the excess liabilities over assets. | |||
(iii) Effective on the Closing Date, Lester Martinez resigned as officer and director of the Company, and the following individuals were appointed as executive officers and directors of the Company: | |||
Name | Title | ||
Christopher Sabec | Chief Executive Officer, President and Chairman | ||
Robert Steele | Chief Financial Officer, Chief Operating Officer, Chief Technology Officer, Director | ||
Brett Johnson | Director | ||
(iv) Effective July 15, 2013, the Company amended its articles of incorporation to change its name from “Stevia Agritech Corp.” to “Rightscorp, Inc.” | |||
(v) On June 18, 2013, the Company entered into a financing agreement (the “Financing Agreement”) with Hartford Equity Inc. (“Hartford”), under which Hartford agreed to purchase, directly or through its associates an aggregate of $2,050,000 of common stock and warrants (the “Financing”). The Private Placement described above will be deemed part of the Financing such that as of the Closing Date the Company has closed on $475,000 of the Financing (which amounts were advanced by the Company to Rightscorp Delaware prior to the Closing Date and cancelled as intercompany loans on the Closing Date) and Hartford, directly or through its associates, has agreed to purchase an additional $1,575,000 in common stock and warrants from the Company within 14 months from the Closing Date. | |||
Effective on the Closing Date, pursuant to the Merger Agreement, Rightscorp Delaware became a wholly owned subsidiary of the Company. The acquisition of Rightscorp Delaware is treated as a reverse acquisition, and the business of Rightscorp Delaware became the business of the Company. | |||
The accounting rules for reverse acquisitions require that beginning October 25, 2013, the date of the reverse acquisition, our balance sheet includes the consolidated assets and liabilities of Rightscorp Delaware and our equity accounts were recapitalized to reflect the net equity of Rightscorp Delaware. The financial condition and results of operations for periods prior to October 25, 2013 reflect the financial condition and operating results of Rightscorp Delaware. |
Fixed_Assets_and_Intangible_As
Fixed Assets and Intangible Assets | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Fixed Assets and Intangible Assets | ' | ||||||||
Note 5 – Fixed Assets and Intangible Assets | |||||||||
As of December 31, 2013 and December 31, 2012, fixed assets and intangible assets consisted of the following: | |||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
Furniture and equipment | $ | 82,349 | $ | 38,209 | |||||
Less accumulated depreciation | (25,896 | ) | (9,358 | ) | |||||
Fixed assets, net | $ | 56,453 | $ | 28,851 | |||||
31-Dec-13 | 31-Dec-12 | ||||||||
Intangible assets | $ | 84,500 | $ | 84,500 | |||||
Less accumulated depreciation | (50,700 | ) | (33,800 | ) | |||||
Intangible assets, net | $ | 33,800 | $ | 50,700 | |||||
Depreciation and amortization expense for the periods ended December 31, 2013 and December 31, 2012 was $33,438 and $24,648, respectively. Annual amortization expense will be $16,900 per year through 2015. |
Accounts_Payable_and_Accrued_L
Accounts Payable and Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities | ' | ||||||||
Note 6 – Accounts Payable and Accrued Liabilities | |||||||||
As of December 31, 2013 and December 31, 2012, accounts payable and accrued liabilities consisted of the following: | |||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
Payroll | $ | 495,428 | $ | 280,668 | |||||
Legal fees | 239,015 | 107,218 | |||||||
Interest | 16,515 | 18,933 | |||||||
Other | 177,346 | 108,055 | |||||||
Total | $ | 928,304 | $ | 514,874 |
Note_Payable
Note Payable | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Note Payable | ' |
Note 7 – Notes Payable | |
Pursuant to the Financing (see Note 3), on June 18, 2013, Rightscorp Delaware issued a promissory note (the “Note”) to the Company, in accordance with a letter of intent (LOI), in which the Company agreed to advance $200,000 in immediately available funds to Rightscorp Delaware (the “LOI Advance”) pursuant to the terms of a promissory note. Upon the closing of the Merger Agreement, the Note was cancelled as an intercompany loan. | |
On July 23, September 10, 2013, and November 1, 2013, Rightscorp Delaware issued additional promissory notes in the amounts of $100,000, $50,000, and $100,000 to the Company in connection with the Financing (see Note 3). Upon the closing of the Merger Agreement, these notes were cancelled as intercompany loans. |
Convertible_Notes_Payable
Convertible Notes Payable | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Convertible Notes Payable | ' | ||||||||
Note 8 – Convertible Notes Payable | |||||||||
Between January 3, 2013 and October 2, 2013, the Company borrowed an aggregate of $534,980 under convertible notes from external parties for use as operating capital. The parties entered into convertible notes payable agreements, which make the Company liable for repayment of the principal and 10% annual interest by the agreements’ expiration dates ranging between October 2, 2013 and July 2, 2014. The notes are secured and mature nine months from the issuance date. Until the maturity date, the holders may elect to convert the note in whole or in part into preferred shares at the price of $0.37. During the year ended December 31, 2013, pursuant to a Note exchange an aggregate of $859,006 of principal and $50,748 of interest was converted to 7,832,548 shares of restricted common stock. During the year ended December 31, 2013, an aggregate of $80,000 of principal and $6,847 of interest was repaid to the holders. | |||||||||
Attached to these notes the Company issued warrants that were recorded as a debt discount at an initial aggregate value of $131,927. The value of these warrants, along with the value of previously issued warrants, was amortized during the year ended December 31, 2013, resulting in a final debt discount balance of $10,891 as of December 31, 2013. | |||||||||
The Company evaluated these convertible notes for derivatives and determined that they do not qualify for derivative treatment. | |||||||||
As of December 31, 2013 and 2012 outstanding convertible notes payable consisted of the following: | |||||||||
2013 | 2012 | ||||||||
Convertible Note Issued on 8/6/12 | $ | 100,000 | $ | 100,000 | |||||
Original Principal: $100,000.00 | |||||||||
Interest Rate: 10% | |||||||||
Maturity Date: 5/6/13, extended on a monthly basis per verbal contract | |||||||||
Conversion price amended to $0.1276 on 10/4/13 | |||||||||
Convertible Note Issued on 10/25/12 | 50,000 | 50,000 | |||||||
Original Principal: $50,000.00 | |||||||||
Interest Rate: 10% | |||||||||
Maturity Date: 7/25/13, extended on a monthly basis per verbal contract | |||||||||
Conversion price amended to $0.1276 on 10/4/13 | |||||||||
Convertible Note Issued on 11/29/12 | 3,500 | 6,500 | |||||||
Original Principal: $6,500 | |||||||||
Interest Rate: 10% | |||||||||
Maturity Date: 8/29/13, extended on a monthly basis per verbal contract | |||||||||
Conversion price amended to $0.1276 on 10/4/13 | |||||||||
Convertible Note Issued on 9/26/13 | 10,000 | - | |||||||
Original Principal: $10,000.00 | |||||||||
Interest Rate: 10% | |||||||||
Maturity Date: 6/26/14 | |||||||||
Conversion price amended to $0.1276 on 10/4/13 | |||||||||
Convertible Note Issued on 10/2/13 | 50,000 | - | |||||||
Original Principal: $50,000.00 | |||||||||
Interest Rate: 10% | |||||||||
Maturity Date: 7/2/14 | |||||||||
Conversion price amended to $0.1276 on 10/4/13 | |||||||||
Other Convertible Notes Issued in 2012 | - | 464,026 | |||||||
Interest Rate: 10% | |||||||||
Maturity Date: 9 months after issuance date | |||||||||
Converted in October 2013 | |||||||||
Total Outstanding Convertible Notes Payable | 213,500 | 620,526 | |||||||
Less Debt Discount | 10,891 | 101,551 | |||||||
$ | 202,609 | $ | 518,975 | ||||||
As of December 31, 2013, the annual maturities of outstanding convertible notes were $213,500 for the year ending December 31, 2014. |
Capital_Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Capital Stock | ' |
Note 9 – Capital Stock | |
The total number of shares of all classes of capital stock, which the Company is authorized to issue, is 250,000,000 shares, consisting of 10,000,000 shares of common stock, par value $.001 per share (the “Common Stock”), and 10,000,000 shares of preferred stock, par value $.001 per share (the “Preferred Stock”). The Board of Directors of the Company is authorized to provide for the issuance of shares of Preferred Stock in one or more series and to establish from time to time the number of shares to be included in each series and to fix the designation, powers, preferences and relative, participating, optional or other special rights, if any, if each series and the qualifications, limitations and restrictions thereof. During the year ended December 31, 2013 the Company issued 7,832,548 shares of restricted common stock to note holders pursuant to a Note exchange at $0.37 per share, 250,000 shares of restricted common stock under Financing Agreement at $0.50 per share, 9,338,000 shares of common stock pursuant to conversion of 3,220,000 shares of preferred stock, and 862,162 shares of common stock for services valued at $74,324. As of the year ended December 31, 2013 there are 68,797,102 shares of common stock outstanding and no shares of Series A Preferred Stock outstanding. |
Stock_Warrants
Stock Warrants | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Stock Warrants | ' | ||||||||||||
Note 10 - Stock Warrants | |||||||||||||
During the year ended December 31, 2013, the Company issued warrants to purchase 3,763,068 shares of its common stock. Warrants to purchase 1,257,920 shares of restricted common stock at an exercise price of $0.25 per share were issued to note holders pursuant to notes, warrants to purchase 1,710,000 shares of restricted common stock at an exercise price of $0.75 per share were issued pursuant to common stock purchase, and warrants to purchase 795,149 shares at an exercise price of $0.25 per share were issued for services. | |||||||||||||
Using the Black-Scholes method, warrants issued during the year ended December 31, 2013 were valued at $237,485. The following weighted-average assumptions were used in the Black-Scholes calculation: | |||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||
Expected term (years) | 1.5-5 | 5 | |||||||||||
Expected volatility | 140 | % | 140 | % | |||||||||
Risk-free interest rate | 0.21-1.62 | % | 0.83-2.24 | % | |||||||||
Dividend yield | 0 | % | 0 | % | |||||||||
A summary of the Company’s warrant activity during the year ended December 31, 2013 is presented below: | |||||||||||||
Number of Warrants | Weighted | Weighted Average | |||||||||||
Average Exercise | Remaining Contractual | ||||||||||||
Price | Term | ||||||||||||
Balance outstanding, December 31, 2012 | 3,259,635 | $ | 0.25 | 4.38 | |||||||||
Granted | 3,763,068 | 0.48 | 3.04 | ||||||||||
Exercised | - | - | - | ||||||||||
Forfeited | - | - | - | ||||||||||
Expired | - | - | - | ||||||||||
Balance outstanding, December 31, 2013 | 7,022,703 | $ | 0.65 | 4.8 | |||||||||
Exercisable, December 31, 2013 | 4,887,081 | $ | 0.42 | 3.12 |
Commitments_Contingencies
Commitments & Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments & Contingencies | ' |
Note 11 – Commitments & Contingencies | |
Since May 31, 2012 the Company leases their office space on a month-to-month basis at a fixed rate of $2,600 per month. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Note 12 – Subsequent Events | |
Subsequent to the end of the period we issued warrants to purchase 50,000 shares of common stock. The shares were issued to an employee at $0.61 per share. | |
Subsequent to the end of the period we entered into a securities purchase agreement (the “Purchase Agreement”) with Seaside 88, LP (the “Investor”), pursuant to which we agreed to sell, and the Investor agreed to purchase, up to 7,000,000 shares of common stock, in closings to be held monthly over a one-year period, subject to certain conditions. The initial closing under the Purchase Agreement, pursuant to which we sold to the Investor 835,530 shares of common stock at a purchase price of $0.374 per share for total proceeds of $312,488, occurred on March 7, 2014. | |
Subsequent closings will occur on a monthly basis, subject to certain conditions. At each subsequent closing, we intend to sell to the Investor 10% of the total number of shares of our common stock traded during the 20 trading days immediately preceding such closing, at a purchase price per share equal to the lower of (a) the average of the high and low trading prices of the common stock for the 5 consecutive trading days immediately prior to a closing date, multiplied by 0.50 and (b) the average of the high and low trading prices of the common stock for the trading day immediately prior to a closing date, multiplied by 0.55, provided that, no monthly closing will occur if the purchase price for such closing would be lower than $0.25 per share (the “Floor”). The failure to have a subsequent closing due to failure to meet the Floor will not impact any other subsequent closing. The Investor agreed not to engage in any short sales of our common stock while it holds any shares purchased under the Purchase Agreement. | |
The Company has the right to terminate the Purchase Agreement at any time by providing written notice to the Investor. | |
Subsequent to the end of the period we entered into Consulting Agreement with John Carris Investments, LLC. We agreed to issue up to 300,000 shares of common stock in exchange for services per the Consulting Agreement. Upon execution of the agreement, we issued 75,000 shares of common stock for services at $0.73 per share. | |
Subsequent to the end of the period we issued 63,939 shares of common stock to a note holder in a cashless conversion at $0.0862 per share. At time of conversion, the note was valued at $6,250 for outstanding principal and interest owed. | |
Subsequent to the end of the period we issued 33,135 shares of common stock to a note holder in a note conversion at $0.1276 per share. At time of conversion, the note was valued at $4,228 for outstanding principal and interest owed. | |
Subsequent to the end of the period, we received $450,000 in funding from Hartford Equity per their financing agreement with the Company. We have reserved 900,000 shares of our common stock to be issued to Hartford. | |
Subsequent to the end of the period, we had a balance of $380,000 of common stock to be issued to Hartford Equity. $300,000 was received from Hartford Equity in 2013 in exchange for 600,000 shares of common stock per the financing agreement. $80,000 of debt related to the merger was assumed by Hartford Equity in exchange for 160,000 shares of common stock per the Subscription Agreement dated October 28, 2013. As of March 25, 2014, these shares have not been issued. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting | ' |
Basis of Presentation | |
These financial statements have been prepared using the basis of accounting generally accepted in the United States of America. The financial statements as of December 31, 2013 and December 31, 2012 reflect all adjustments which, in the opinion of management, are necessary to fairly state the Company’s financial position and the results of its operations for the periods presented in accordance with the accounting principles generally accepted in the United States of America. All adjustments are of a normal recurring nature. | |
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
The Company does not currently have any instruments requiring fair-value accounting disclosures. | |
Cash and equivalents | ' |
Cash and Cash Equivalents | |
The Company considers all cash on hand and in banks, including accounts in book overdraft positions, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. As of December 31, 2013 and December 31, 2012 the Company had no cash equivalents. | |
Advertising | ' |
Advertising | |
The Company expenses advertising costs as incurred. For the year ended December 31, 2013 and December 31, 2012, advertising expenses were $21,639 and $574, respectively. | |
Capitalization of Fixed Assets | ' |
Capitalization of Fixed Assets | |
The Company capitalizes expenditures related to property and equipment, subject to a minimum rule, that have a useful life greater than one year for: (1) assets purchased; (2) existing assets that are replaced, improved or the useful lives have been extended; or (3) all land, regardless of cost. Acquisitions of new assets, additions, replacements and improvements (other than land) costing less than the minimum rule in addition to maintenance and repair costs, including any planned major maintenance activities, are expensed as incurred. | |
Capitalization of Intangible Assets | ' |
Capitalization of Intangible Assets | |
The Company records the purchase on intangible assets not purchased in a business combination in accordance with the ASC Topic 350. | |
Concentrations of Risk | ' |
Concentrations of Risk | |
We derived approximately 25% of our revenues from a contract with one customer in 2013. For the year ended December 31, 2013, we derived approximately 32% of our sales from contracts with two customers. Our standard contract with customers is for an initial six month term, and renews automatically for successive one month terms, unless either party terminates upon 30 days’ written notice to the other party. | |
The Company’s bank accounts are deposited in insured institutions. At December 31, 2013 and December 31, 2012, the Company’s bank deposits did not exceed the insured amounts. | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets | |
The Company reviews and evaluates long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. The assets are subject to impairment consideration under FASB ASC 360-10-35-17, if events or circumstances indicate that their carrying amount might not be recoverable. When the Company determines that an impairment analysis should be done, the analysis will be performed using the rules of FASB ASC 930-360-35, Asset Impairment, and 360-10 through 15-5, Impairment or Disposal of Long-Lived Assets. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company generates revenue from the sale of a service to copyright owners under which copyright owners retain the Company to identify and collect settlement payments from Internet users who have infringed on their copyrights. Revenue is recognized when the ISP responds to a notice provided by the Company, and pays the fee which acts as a wavier to the infringement against the copyright owner. | |
Income Taxes | ' |
Income Taxes | |
The Company utilizes FASB ASC 740, “Income Taxes,” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the tax basis of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized. | |
The Company generated a deferred tax asset through net operating loss carry-forward. However, a valuation allowance of 100% has been established due to the uncertainty of the Company’s realization of the net operating loss carry forward prior to its expiration. | |
Interest and penalties on tax deficiencies recognized in accordance with ACS accounting standards are classified as income taxes in accordance with ASC Topic 740-10-50-19. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
There are no recently issued accounting pronouncements that the Company has yet to adopt that are expected to have a material effect on its financial position, results of operations, or cash flows. | |
Going Concern | ' |
Going Concern | |
The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company had a cumulative net loss from inception (January 20, 2011) to December 31, 2013 of $4,240,672. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it establishes a revenue stream and becomes profitable. If the Company is unable to obtain adequate capital it could be forced to cease development of operations. | |
In order to continue as a going concern, develop a reliable source of revenues, and achieve a profitable level of operations the Company will need, among other things, additional capital resources. Management’s plans to continue as a going concern include raising additional capital through borrowing and sales of common stock. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. | |
The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Summary of Components of Net Deferred Tax Liabilities | ' | ||||||||
Net deferred tax liabilities consist of the following components as of December 31, 2013 and 2012: | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
NOL Carryover | $ | 1,201,400 | $ | 694,300 | |||||
Accrued Payroll | 148,200 | 48,800 | |||||||
Depreciation | 11,600 | 4,100 | |||||||
Deferred tax liabilities: | - | - | |||||||
Valuation allowance | (1,361,200 | ) | (747,200 | ) | |||||
Net deferred tax asset | $ | - | $ | - | |||||
Summary of Income Tax Provision | ' | ||||||||
The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended December 31, 2013 and 2012 due to the following: | |||||||||
2013 | 2012 | ||||||||
Book Income | $ | (875,100 | ) | $ | (513,800 | ) | |||
Meals and Entertainment | 2,200 | 3,000 | |||||||
Non-Deductible Expenses | 136,500 | 144,000 | |||||||
Accrued Payroll | 99,100 | 25,700 | |||||||
Deprecation | 7,500 | (900 | ) | ||||||
Other | 300 | 300 | |||||||
Valuation allowance | 629,500 | 341,700 | |||||||
$ | - | $ | - |
Fixed_Assets_and_Intangible_As1
Fixed Assets and Intangible Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Schedule of Fixed Assets | ' | ||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
Furniture and equipment | $ | 82,349 | $ | 38,209 | |||||
Less accumulated depreciation | (25,896 | ) | (9,358 | ) | |||||
Fixed assets, net | $ | 56,453 | $ | 28,851 | |||||
Schedule of Intangible Assets | ' | ||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
Intangible assets | $ | 84,500 | $ | 84,500 | |||||
Less accumulated depreciation | (50,700 | ) | (33,800 | ) | |||||
Intangible assets, net | $ | 33,800 | $ | 50,700 |
Accounts_Payable_and_Accrued_L1
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accounts Payable and Accrued Liabilities | ' | ||||||||
As of December 31, 2013 and December 31, 2012, accounts payable and accrued liabilities consisted of the following: | |||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
Payroll | $ | 495,428 | $ | 280,668 | |||||
Legal fees | 239,015 | 107,218 | |||||||
Interest | 16,515 | 18,933 | |||||||
Other | 177,346 | 108,055 | |||||||
Total | $ | 928,304 | $ | 514,874 |
Convertible_Notes_Payable_Tabl
Convertible Notes Payable (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Convertible Debt | ' | ||||||||
As of December 31, 2013 and 2012 outstanding convertible notes payable consisted of the following: | |||||||||
2013 | 2012 | ||||||||
Convertible Note Issued on 8/6/12 | $ | 100,000 | $ | 100,000 | |||||
Original Principal: $100,000.00 | |||||||||
Interest Rate: 10% | |||||||||
Maturity Date: 5/6/13, extended on a monthly basis per verbal contract | |||||||||
Conversion price amended to $0.1276 on 10/4/13 | |||||||||
Convertible Note Issued on 10/25/12 | 50,000 | 50,000 | |||||||
Original Principal: $50,000.00 | |||||||||
Interest Rate: 10% | |||||||||
Maturity Date: 7/25/13, extended on a monthly basis per verbal contract | |||||||||
Conversion price amended to $0.1276 on 10/4/13 | |||||||||
Convertible Note Issued on 11/29/12 | 3,500 | 6,500 | |||||||
Original Principal: $6,500 | |||||||||
Interest Rate: 10% | |||||||||
Maturity Date: 8/29/13, extended on a monthly basis per verbal contract | |||||||||
Conversion price amended to $0.1276 on 10/4/13 | |||||||||
Convertible Note Issued on 9/26/13 | 10,000 | - | |||||||
Original Principal: $10,000.00 | |||||||||
Interest Rate: 10% | |||||||||
Maturity Date: 6/26/14 | |||||||||
Conversion price amended to $0.1276 on 10/4/13 | |||||||||
Convertible Note Issued on 10/2/13 | 50,000 | - | |||||||
Original Principal: $50,000.00 | |||||||||
Interest Rate: 10% | |||||||||
Maturity Date: 7/2/14 | |||||||||
Conversion price amended to $0.1276 on 10/4/13 | |||||||||
Other Convertible Notes Issued in 2012 | - | 464,026 | |||||||
Interest Rate: 10% | |||||||||
Maturity Date: 9 months after issuance date | |||||||||
Converted in October 2013 | |||||||||
Total Outstanding Convertible Notes Payable | 213,500 | 620,526 | |||||||
Less Debt Discount | 10,891 | 101,551 | |||||||
$ | 202,609 | $ | 518,975 |
Stock_Warrants_Tables
Stock Warrants (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Schedule of Fair Value Assumption | ' | ||||||||||||
Using the Black-Scholes method, warrants issued during the year ended December 31, 2013 were valued at $237,485. The following weighted-average assumptions were used in the Black-Scholes calculation: | |||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||
Expected term (years) | 1.5-5 | 5 | |||||||||||
Expected volatility | 140 | % | 140 | % | |||||||||
Risk-free interest rate | 0.21-1.62 | % | 0.83-2.24 | % | |||||||||
Dividend yield | 0 | % | 0 | % | |||||||||
Schedule of Warrant Activity | ' | ||||||||||||
A summary of the Company’s warrant activity during the year ended December 31, 2013 is presented below: | |||||||||||||
Number of Warrants | Weighted | Weighted Average | |||||||||||
Average Exercise | Remaining Contractual | ||||||||||||
Price | Term | ||||||||||||
Balance outstanding, December 31, 2012 | 3,259,635 | $ | 0.25 | 4.38 | |||||||||
Granted | 3,763,068 | 0.48 | 3.04 | ||||||||||
Exercised | - | - | - | ||||||||||
Forfeited | - | - | - | ||||||||||
Expired | - | - | - | ||||||||||
Balance outstanding, December 31, 2013 | 7,022,703 | $ | 0.65 | 4.8 | |||||||||
Exercisable, December 31, 2013 | 4,887,081 | $ | 0.42 | 3.12 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | 35 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Advertising expenses | $21,639 | $574 | ' | ' | ' |
Percentage of valuation allowance | 100.00% | ' | ' | ' | ' |
Operting loss | ' | ' | ($2,042,779) | ($1,199,323) | $4,240,672 |
Customer One [Member] | ' | ' | ' | ' | ' |
Sales revenue approximately | 25.00% | ' | ' | ' | ' |
Customer Two [Member] | ' | ' | ' | ' | ' |
Sales revenue approximately | ' | ' | 32.00% | ' | ' |
Income_Taxes_Details_Narrative
Income Taxes (Details Narrative) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Net operating loss carryforwards | $2,804,000 |
net operating loss carryforwards, expiration date | ' |
2014 through 2033 |
Income_Taxes_Summary_of_Compon
Income Taxes - Summary of Components of Net Deferred Tax Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
NOL Carryover | $1,201,400 | $694,300 |
Accrued Payroll | 148,200 | 48,800 |
Depreciation | 11,600 | 4,100 |
Deferred tax liabilities: | ' | ' |
Valuation allowance | -1,361,200 | -747,200 |
Net deferred tax asset | ' | ' |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Provision (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Book Income | ($875,100) | ($513,800) |
Meals and Entertainment | 2,200 | 3,000 |
Non-Deductible Expenses | 136,500 | 144,000 |
Accrued Payroll | 99,100 | 25,700 |
Deprecation | 7,500 | -900 |
Other | 300 | 300 |
Valuation allowance | 629,500 | 341,700 |
Income tax provision | ' | ' |
Acquisition_of_Rightscorp_Dele1
Acquisition of Rightscorp Deleware (Details Narrative) (USD $) | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
Oct. 25, 2013 | Oct. 02, 2013 | Oct. 25, 2013 | Jun. 18, 2013 | Dec. 31, 2013 | Jun. 18, 2013 | |
Rightscorp Delaware [Member] | Rightscorp Delaware [Member] | Rightscorp Delaware [Member] | Hartford Equity Inc [Member] | |||
Acquisition shares issued | ' | ' | 45,347,102 | ' | ' | ' |
Percentage of common stock outstanding | ' | ' | 65.90% | ' | ' | ' |
Outstanding warrants to purchase of common stock, number | 1,831,969 | ' | 5,312,703 | ' | ' | ' |
Warrants to purchase common stock | ' | ' | 1,831,969 | ' | ' | ' |
Convertible debt instrument of principle and accrued interest | $233,844 | ' | ' | ' | ' | ' |
Convertible price | $0.13 | $0.37 | ' | ' | ' | ' |
Number of units issued or sold in private placement | ' | ' | 950,000 | ' | ' | ' |
Purchase price per unit | ' | ' | $0.50 | ' | ' | ' |
Stock units issued or sold description | ' | ' | ' | ' | ' | ' |
with each unit consisting of one share of common stock and a five-year warrant to purchase one share of common stock | ||||||
Common stock exercise price per share | ' | ' | $0.75 | ' | ' | ' |
Warrants term | ' | ' | '5 years | ' | ' | ' |
Common stock returned for Cancellation | ' | ' | 21,000,000 | ' | ' | ' |
Number of stock issued during period for acquisition, shares | ' | ' | ' | ' | 22,500,000 | ' |
Number of stock issued during period for acquisition | ' | ' | ' | ' | 29,067 | ' |
Issuance of aggregate common stock and warrants | ' | ' | ' | ' | ' | 2,050,000 |
Advances received from affiliates | ' | ' | ' | 475,000 | ' | ' |
Additional purchase of common stock and warrants, value | ' | ' | ' | $1,575,000 | ' | ' |
Fixed_Assets_and_Intangible_As2
Fixed Assets and Intangible Assets (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation and amortization | $33,438 | $24,647 |
Annual amortization expense | $16,900 | ' |
Fixed_Assets_and_Intangible_As3
Fixed Assets and Intangible Assets - Schedule of Fixed Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | ' | ' |
Furniture and equipment | $82,349 | $38,209 |
Less accumulated depreciation | -25,896 | -9,358 |
Fixed assets, net | $56,453 | $28,851 |
Fixed_Assets_and_Intangible_As4
Fixed Assets and Intangible Assets - Schedule of Intangible Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | ' | ' |
Intangible assets | $84,500 | $84,500 |
Less accumulated depreciation | -50,700 | -33,800 |
Intangible assets, net | $33,800 | $50,700 |
Accounts_Payable_and_Accrued_L2
Accounts Payable and Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Payables and Accruals [Abstract] | ' | ' |
Payroll | $495,428 | $280,668 |
Legal fees | 239,015 | 107,218 |
Interest | 16,515 | 18,933 |
Other | 177,346 | 108,055 |
Total | $928,304 | $514,874 |
Note_Payable_Details_Narrative
Note Payable (Details Narrative) (Rightscorp Delaware [Member], USD $) | Nov. 01, 2013 | Sep. 10, 2013 | Jul. 23, 2013 | Jun. 18, 2013 |
Rightscorp Delaware [Member] | ' | ' | ' | ' |
Promissory notes | $100,000 | $50,000 | $100,000 | $200,000 |
Convertible_Notes_Payable_Deta
Convertible Notes Payable (Details Narrative) (USD $) | 9 Months Ended | 12 Months Ended | ||
Oct. 02, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 25, 2013 | |
Proceeds from convertible notes | $534,980 | $534,980 | $720,526 | ' |
Debt annual interest | 10.00% | ' | ' | ' |
Debt expiration date range start | 2-Oct-13 | ' | ' | ' |
Debt expiration date range end | 2-Jul-14 | ' | ' | ' |
Debt conversion price | $0.37 | ' | ' | $0.13 |
Value of principal debt converted into common stock | ' | 1,260,015 | ' | ' |
Repayment of principal debt | ' | 80,000 | ' | ' |
Repayment of interest | ' | 6,847 | ' | ' |
Convertible notes payable, net of discount | 131,927 | 10,891 | 101,551 | ' |
Total Outstanding Convertible Notes Payable | ' | 213,500 | 620,526 | ' |
Convertible Debt [Member] | ' | ' | ' | ' |
Value of principal debt converted into common stock | ' | 859,006 | ' | ' |
Interest of principal debt converted into common stock | ' | $50,748 | ' | ' |
Convertible Debt [Member] | Restricted Stock [Member] | ' | ' | ' | ' |
Debt converted into number of stock | ' | 7,832,548 | ' | ' |
Convertible_Notes_Payable_Sche
Convertible Notes Payable - Schedule of Convertible Debt (Details) (USD $) | Dec. 31, 2013 | Oct. 02, 2013 | Dec. 31, 2012 |
Total Outstanding Convertible Notes Payable | $213,500 | ' | $620,526 |
Less Debt Discount | 10,891 | 131,927 | 101,551 |
Convertible Note | 202,609 | ' | 518,975 |
Convertible Note Payable One [Member] | ' | ' | ' |
Total Outstanding Convertible Notes Payable | 100,000 | ' | 100,000 |
Convertible Note Payable Two [Member] | ' | ' | ' |
Total Outstanding Convertible Notes Payable | 50,000 | ' | 50,000 |
Convertible Note Payable Three [Member] | ' | ' | ' |
Total Outstanding Convertible Notes Payable | 3,500 | ' | 6,500 |
Convertible Note Payable Four [Member] | ' | ' | ' |
Total Outstanding Convertible Notes Payable | 10,000 | ' | ' |
Convertible Note Payable Five [Member] | ' | ' | ' |
Total Outstanding Convertible Notes Payable | 50,000 | ' | ' |
Convertible Note Payable Six [Member] | ' | ' | ' |
Total Outstanding Convertible Notes Payable | ' | ' | $464,026 |
Convertible_Notes_Payable_Sche1
Convertible Notes Payable - Schedule of Convertible Debt (Details) (Parenthetical) (USD $) | Oct. 25, 2013 | Oct. 02, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Convertible Note Payable One [Member] | Convertible Note Payable One [Member] | Convertible Note Payable Two [Member] | Convertible Note Payable Two [Member] | Convertible Note Payable Three [Member] | Convertible Note Payable Three [Member] | Convertible Note Payable Four [Member] | Convertible Note Payable Five [Member] | Convertible Note Payable Six [Member] | Convertible Note Payable Six [Member] | |||
Original Principal | ' | ' | $100,000 | $100,000 | $50,000 | $50,000 | $6,500 | $6,500 | $10,000 | $50,000 | ' | ' |
Interest Rate | ' | ' | '0.10 | '0.10 | '0.10 | '0.10 | '0.10 | '0.10 | '0.10 | '0.10 | '0.10 | '0.10 |
Maturity Date | ' | ' | 6-May-13 | 6-May-13 | 25-Jul-13 | 25-Jul-13 | 29-Aug-13 | 29-Aug-13 | 26-Jun-14 | 2-Jul-14 | ' | ' |
Conversion price | $0.13 | $0.37 | $0.13 | $0.13 | $0.13 | $0.13 | $0.13 | $0.13 | $0.13 | $0.13 | ' | ' |
Capital_Stock_Details_Narrativ
Capital Stock (Details Narrative) (USD $) | Dec. 31, 2013 | Oct. 25, 2013 | Oct. 02, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Preferred stock [Member] | Common Stock [Member] | Common Stock One [Shares] | Restricted Common Stock One [Member] | Restricted Common Stock Two [Member] | |||||
Capital stock, authorized | 250,000,000 | ' | ' | ' | 10,000,000 | 10,000,000 | ' | ' | ' |
Common stock, par value | $0.00 | ' | ' | $0.00 | ' | ' | ' | ' | ' |
Preferred stock, par value | $0.00 | ' | ' | $0.00 | ' | ' | ' | ' | ' |
Number of shares issued for conversion | ' | ' | ' | ' | ' | ' | 862,162 | 7,832,548 | 250,000 |
Debt conversion price | ' | $0.13 | $0.37 | ' | ' | ' | ' | $0.37 | $0.50 |
Stock issued for conversion of securities | ' | ' | ' | ' | -3,220,000 | 9,338,000 | ' | ' | ' |
Number of shares issued for conversion, value | ' | ' | ' | ' | ' | ' | $74,324 | ' | ' |
Common stock, shares outstanding | 68,797,102 | ' | ' | 28,014,392 | ' | ' | ' | ' | ' |
Stock_Warrants_Details_Narrati
Stock Warrants (Details Narrative) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Warrants issued to purchase number of stock | 3,763,068 |
Black Scholes Method [Member] | ' |
Warrants issued to purchase number of stock, value | 237,485 |
Warrants One [Member] | ' |
Warrants issued to purchase number of stock | 1,257,920 |
Warrant exercise price, per share | 0.25 |
Warrants Two [Member] | ' |
Warrants issued to purchase number of stock | 1,710,000 |
Warrant exercise price, per share | 0.75 |
Warrants Three [Member] | ' |
Warrants issued to purchase number of stock | 795,149 |
Warrant exercise price, per share | 0.25 |
Stock_Warrants_Schedule_of_Fai
Stock Warrants - Schedule of Fair Value Assumption (Details) (Warrant [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Expected term (years) | ' | '5 years |
Expected volatility | 140.00% | 140.00% |
Dividend yield | 0.00% | 0.00% |
Minimum [Member] | ' | ' |
Expected term (years) | '1 year 6 months | ' |
Risk-free interest rate | 0.21% | 0.83% |
Maximum [Member] | ' | ' |
Expected term (years) | '5 years | ' |
Risk-free interest rate | 1.62% | 2.24% |
Stock_Warrants_Schedule_of_War
Stock Warrants - Schedule of Warrant Activity (Details) (Warrant [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Warrant [Member] | ' |
Number of Warrants, Beginning balance | 3,259,635 |
Number of Warrants, Granted | 3,763,068 |
Number of Warrants, Exercised | ' |
Number of Warrants, Forfeited | ' |
Number of Warrants, Cancelled | ' |
Number of Warrants, Ending balance | 7,022,703 |
Number of Warrants, Exercisable | 4,887,081 |
Weighted Average Exercise Price, Beginning balance | $0.25 |
Weighted Average Exercise Price, Granted | $0.48 |
Weighted Average Exercise Price, Exercised | ' |
Weighted Average Exercise Price, Forfeited | ' |
Weighted Average Exercise Price, Cancelled | ' |
Weighted Average Exercise Price, Ending balance | $0.65 |
Weighted Average Exercise Price, Exercisable | $0.42 |
Weighted Average Remaining Contractual Term, Begining | '4 years 4 months 17 days |
Weighted Average Remaining Contractual Term, Granted | '3 years 15 days |
Weighted Average Remaining Contractual Term, Ending | '4 years 9 months 18 days |
Weighted Average Remaining Contractual Term, Exerciable | '3 years 1 month 13 days |
Commitments_Contingencies_Deta
Commitments & Contingencies (Details Narrative) (USD $) | Dec. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' |
Fixed rate for lease per month | $2,600 |
Subsequent_Events_Details_Narr
Subsequent Events (Details Narrative) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 07, 2014 | Dec. 31, 2013 | |
John Carris Investments LLC [Member] | Investors [Member] | Note Holder One [Member] | Note Holder Two [Member] | Hartford Equity [Member] | Subsequent Event [Member] | Employee Stock [Member] | |||
Warrants issued to purchase number of stock | 3,763,068 | ' | ' | ' | ' | ' | ' | ' | 50,000 |
Stock issued per share | ' | ' | $0.73 | ' | $0.09 | $0.13 | ' | $0.37 | $0.61 |
Number of shares agreed by investor to purchase | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period, shares | ' | ' | ' | ' | ' | ' | ' | 835,530 | ' |
Stock issued during period, value | ' | ' | ' | ' | ' | ' | ' | $312,488 | ' |
Percentage of common stock agree to issue to the investor | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum closing price per share | ' | ' | ' | $0.25 | ' | ' | ' | ' | ' |
Number of shares authorized to issued for service | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' |
Number of shares issued for serivice, shares | ' | ' | 75,000 | ' | ' | ' | ' | ' | ' |
Number of stock issued for conversion, shares | ' | ' | ' | ' | 63,939 | 33,135 | ' | ' | ' |
Number of stock issued for conversion, value | ' | ' | ' | ' | 6,250 | 4,228 | ' | ' | ' |
Fund received from related parties | ' | ' | ' | ' | ' | ' | 450,000 | ' | ' |
Number of stock reserve for related parties | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' |
Common stock | 68,797 | 28,014 | ' | ' | ' | ' | 380,000 | ' | ' |
Proceeds from contribution from affiliates | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' |
Number of stock issued | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' |
Value of debt agreed to exchange | ' | ' | ' | ' | ' | ' | $80,000 | ' | ' |
Number of stock agreed to issued | ' | ' | ' | ' | ' | ' | 160,000 | ' | ' |