SharpSpring (SHSP) 10-Q 4 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 01, 2013
Document And Entity Information	'	'
Entity Registrant Name	'SMTP, Inc.	'
Entity Central Index Key	'0001506439	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
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	'	15,331,638
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

Balance_Sheets

Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
Assets	'	'
Cash and cash equivalents	$1,266,679	$784,001
Accounts Receivable	47,098	38,152
Deferred income taxes	207,915	196,097
Other current assets	94,610	66,093
Total current assets	1,616,302	1,084,343
Property and equipment, net of accumulated depreciation of $99,156 and $43,180	348,713	141,948
Intangibles, net of accumulated amortization of $9,000 and $8,768	'	232
Deferred income taxes	34,476	14,536
Deposits	29,995	29,995
Total assets	2,029,486	1,271,054
Liabilities and Shareholder's Equity	'	'
Deferred revenue	320,388	351,059
Income taxes payable	45,024	42,590
Allowance for refunds and chargebacks	2,632	9,036
Accrued expenses and other current liabilities	83,207	128,989
Total current liabilities	451,251	531,674
Shareholder's equity:	'	'
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued or outstanding at September 30, 2013 and December 31, 2012	'	'
Common stock, $0.001 par value, 50,000,000 shares authorized, 15,293,736 and 14,767,250 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively	15,294	14,768
Additional paid in capital	1,899,681	1,111,175
Accumulated deficit	-336,740	-386,563
Total shareholder's equity	1,578,235	739,380
Total liabilities and shareholder's equity	$2,029,486	$1,271,054

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]	'	'
Property and equipment, net of accumulated depreciation	$99,156	$43,180
Intangibles, net of accumulated amortization	$9,000	$8,768
Preferred stock, par value	$0.00	$0.00
Preferred stock, authorized	5,000,000	5,000,000
Preferred stock, issued	'	'
Preferred stock, outstanding	'	'
Common stock, par value	$0.00	$0.00
Common stock, authorized	50,000,000	50,000,000
Common stock, issued	15,293,736	14,767,250
Common stock, outstanding	15,293,736	14,767,250

Statements_of_Operations

Statements of Operations (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]	'	'	'	'
Net revenues	$1,468,962	$1,362,504	$4,233,547	$3,961,943
Cost of services	311,392	302,746	939,585	940,941
Gross profit	1,157,570	1,059,758	3,293,962	3,021,002
Operating expenses:	'	'	'	'
Sales and marketing	295,005	164,513	677,365	585,594
General and administrative	302,491	275,416	1,002,750	846,846
Research and development	81,226	93,598	186,196	316,063
Total operating expenses	678,722	533,527	1,866,311	1,748,503
Income before income taxes	478,848	526,231	1,427,651	1,272,499
Provision for income tax	159,261	212,377	497,058	513,589
Net income	$319,587	$313,854	$930,593	$758,910
Net income per share:	'	'	'	'
Basic	$0.02	$0.02	$0.06	$0.05
Diluted	$0.02	$0.02	$0.06	$0.05
Weighted average common shares outstanding	'	'	'	'
Basic	15,130,162	14,707,250	14,931,366	14,297,562
Diluted	15,699,964	15,258,843	15,538,652	14,896,548

Statements_of_Cash_Flows

Statements of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Statement of Cash Flows [Abstract]	'	'
Net income	$930,593	$758,910
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	56,207	20,726
Excess tax benefits from share-based payment arrangements	-20,825	'
Non-cash stock compensation	490,258	116,584
Allowance for refunds and chargebacks	-6,404	1,216
Deferred Income Taxes	-31,758	15,378
Changes in assets and liabilities:	'	'
Accounts receivable	-8,946	-52,734
Other assets	-28,517	-44,173
Income taxes payable	23,259	-408,761
Accrued expenses and other current liabilities	-45,782	-35,944
Deferred revenue	-30,671	29,175
Net cash provided by operating activities	1,327,414	400,377
Cash flows from investing activities:	'	'
Purchases of property and equipment	-262,740	-12,956
Net cash used in by investing activities	-262,740	-12,956
Cash flows used in by financing activities:	'	'
Dividends to shareholder	-880,770	-2,323,687
Proceeds from issuance of common stock	277,949	516,438
Excess tax benefits from share-based payment arrangements	20,825	'
Net cash used in financing activities	-581,996	-1,807,249
Change in cash and cash equivalents	482,678	-1,419,828
Cash and cash equivalents, beginning of period	784,001	1,978,809
Cash and cash equivalents, end of period	1,266,679	558,981
Supplemental cash flow disclosures:	'	'
Cash paid for income taxes	$545,000	$503,831

Organization_and_Basis_of_Pres

Organization and Basis of Presentation	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Organization and Basis of Presentation	'
	Note 1: Organization and Basis of Presentation
	Background
	The Company was incorporated in Massachusetts on October 14, 1998 as EMUmail, Inc. and changed its name on April 1, 2010 to SMTP.com, Inc. The Company focuses on the execution of email delivery for marketing and enterprise application customers. The Company has customers for both corporate and personal email delivery. The Company’s services are marketed directly by the Company and through reseller partners.
	On November 23, 2010, the Company formed a Delaware corporation, SMTP, Inc. for the purpose of changing the domicile of the Company from a Massachusetts corporation to a Delaware corporation and to increase the number of authorized shares outstanding. Also on November 23, 2010, the Company entered into a Merger agreement between SMTP, Inc. and SMTP.com, Inc. whereby the surviving corporation would be SMTP, Inc. (the “Surviving Corporation”), the newly formed Delaware corporation. The Surviving Corporation has an authorized capital structure of 50,000,000 shares of common stock, par value $0.001 per share and 5,000,000 shares of preferred stock, par value $0.001 per share. Under the terms of the Merger agreement, the Company’s existing 100 shares of ownership (which were held by a sole shareholder) were exchanged for 13,440,000 shares of common stock in the Surviving Corporation.
	Basis of Presentation
	In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of only normal recurring accruals, necessary for a fair statement of financial position, results of operations, and cash flows. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the financial statements and the accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC on March 29, 2013. The accounting policies are described in the “Notes to Financial Statements” in the 2012 Annual Report on Form 10-K and updated, as necessary, in this Form 10-Q. The year-end balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period.
	Certain reclassifications have been made to prior period reported amounts to conform to current year presentation.
	Fair Value of Financial Instruments
	U.S. GAAP establishes a fair value hierarchy which has three levels based on the reliability of the inputs to determine the fair value. These levels include: Level 1, defined as inputs such as unadjusted quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for use when little or no market data exists, therefore requiring an entity to develop its own assumptions.
	The Company’s financial instruments consist of cash, accounts receivable, deposits and accounts payable. The carrying amount of cash, accounts receivable and accounts payable approximates fair value because of the short-term nature of these items.
	Income Taxes
	Provision for income taxes are based on taxes payable or refundable for the current year and deferred taxes on temporary differences between the amount of taxable income and pretax financial income and between the tax bases of assets and liabilities and their reported amounts in the financial statements. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled as prescribed in FASB ASC 740, Accounting for Income Taxes. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized.
	The Company applies the authoritative guidance in accounting for uncertainty in income taxes recognized in the financial statements. This guidance prescribes a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more-likely-than-not” to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. There are no uncertain tax positions taken by the Company on its tax returns. Tax years subsequent to 2010 remain open to examination by U.S. federal and state tax jurisdictions.
	In determining the quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, statutory tax rates and tax planning opportunities available to the Company in the jurisdictions in which it operates. This includes 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 to the extent pervasive evidence exists that they will be realized in future periods. The deferred tax balances are adjusted to reflect tax rates by tax jurisdiction, based on currently enacted tax laws, which are expected to be in effect in the years in which the temporary differences are expected to reverse. In accordance with the Company’s income tax policy, significant or unusual items are separately recognized in the quarter in which they occur.
	Revenue Recognition
	The Company recognizes revenue from its services when it is probable that the economic benefits associated with the transactions will flow to the Company and the amount of revenue can be measured reliably. This is normally demonstrated when: (i) persuasive evidence of an arrangement exists; (ii) the fee is fixed or determinable; (iii) performance of service has been delivered; and (iv) collection is reasonably assured.
	The Company provides Internet-based services to facilitate email delivery. The Company’s services are offered over various contractual periods for a fixed fee that varies based on a maximum volume of transactions. Revenues are typically paid by clients via credit card, check or wire payments at the inception of the contractual period. Revenue is recognized on a straight-line basis over the contractual period.
	The Company offers refunds on a pro-rata basis at any time during the contractual period. The Company also experiences credit card chargebacks relating to cardholder disputes that are commonly experienced by businesses that accept credit cards. The Company makes estimates for refunds and credit card chargebacks based on historical experience.
	Deferred Revenue
	The Company’s customers pay for services in advance on a monthly, quarterly, annual, bi-annually and quinquennially basis. Deferred revenue consists of payments received in advance of the Company’s providing the services. Deferred revenues are amortized on a straight-line basis in connection with the contractual period.
	Net Income Per Share
	Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	Note 2: Commitments and Contingencies
	Litigation
	The Company may from time to time be involved in legal proceedings arising from the normal course of business. There are no pending or threatened legal proceedings as of September 30, 2013.
	Consulting Services
	On October 18, 2012, the Company entered into a professional services agreement. The agreement requires the Company to pay a monthly cash retainer of $12,500 to cover professional services provided by the service provider. Additionally, any service that exceeds the $12,500 retainer, are to be paid through issuances of the Company’s common stock with a vesting schedule of six months from delivery date. On March 4, 2013, the Company added an addendum to this agreement. This addendum amended the agreement so that each month is a fixed fee of $25,000 payable in $12,500 cash and $12,500 in restricted common stock. The addendum also waived all fees and other amounts exceeding $25,000 owed for November and December 2012 for services rendered. On March 8, 2013, the Company issued 18,868 shares of restricted common stock representing $25,000 worth of stock for services rendered during November and December of 2012. On March 8, 2013, the Company also issued 45,000 shares of restricted common stock representing payment for website construction in fiscal year 2013 valued at $55,800 based on the closing share price of $1.24 on March 8, 2013.   On July 1, 2013, the Company terminated the consulting services agreement and issued 70,414 shares of common stock to pay the outstanding balance of approximately $75,000 due to the consultants.
	On October 29, 2012, the Company entered into a professional services agreement. In connection with the agreement, the Company issued 454,863 warrants to purchase common stock at an exercise price of $0.98 per share with a term of 5 years in exchange for professional services. As of September 30, 2013, all warrants were exercisable. The agreement also calls for certain incentives that if achieved call for the disbursement of $500,000 or more depending on the size of transaction as well as fees to arrange funding. See Note 8 for discussion of warrants.
	On May 29, 2013, the Company entered into a professional services agreement. The agreement requires the Company to pay $25,000 per month in exchange for marketing and advertising services. The agreement terminates on December 31, 2014 but is cancellable at any time.
	On August 1, 2013, the Company entered into a professional services agreement. In connection with the agreement, the Company issued 150,000 warrants to purchase common stock at an exercise price of $1.00 per share with a term of 3 years in exchange for professional services. As of September 30, 2013, all warrants were exercisable. This agreement also requires the Company to pay $7,500 in cash per month for 12 months in exchange for sales and marketing services. The agreement terminates on July 31, 2014 but is cancellable after the first six months.
	Operating Leases and Service Contracts
	The Company rents its facilities on a month-to-month or quarter-to-quarter basis. Most of its service contracts are also on a month-to-month basis. As of September 30, 2013, future minimum lease and non-cancelable services contract payments are as follows for the remainder of 2013 and thereafter:
	2013		42,105
	2014		14,405
	2015		-
	2016		-
	2017		-
	Thereafter		-
		$	56,510
	Change in Officers and Employment Agreements
	On March 5, 2013 Maksym Ilin was appointed as President, Principal Executive Officer and Vice President-Operations and Customer Service. Pursuant to a non-written agreement, Mr. Ilin will receive a base salary of $38,400 per year along with performance based bonuses. Previously, Mr. Ilin served as the Company’s Director of Customer Service. On August 15, 2013, upon the appointment of Jonathan M. Strimling, as the Company’s Chief Executive Officer, the Company’s Board of Directors removed Mr. Ilin as the Company’s President and Principal Executive Officer. Mr. Illin continues to serve as the Company’s Vice President-Operations and Customer Service.
	On March 5, 2013, Ruslan Bondariev was appointed as Chief Technology Officer and Vice President – Research. Pursuant to a non-written agreement, Mr. Bondariev will receive a base salary of $36,000 per year along with performance based bonuses. Previously, Mr. Bondarev served as the Company’s Director of Research and Development.
	On March 5, 2013, Alena Chuprakova was appointed as Comptroller, Treasurer and Principal Financial Officer. Pursuant to a non-written agreement, Ms. Chuprakova will receive a base salary of $50,000 per year, along with performance based bonuses.
	On April 1, 2013, Brad Harkavy and Mark S. Dailey resigned as members of the board of directors.
	On August 15, 2013, Jonathan M. Strimling was appointed as Chief Executive Officer. Pursuant to a written agreement, Mr. Strimling will receive a base salary of $180,000 per year along with quarterly performance based bonus compensation, other event based bonus compensation, and an option to purchase up to 1,493,449 shares of the Company’s common stock at the strike price of $1.00 per share. The options vest monthly over a four year period in equal installments of 31,113 shares per month beginning August 15, 2013, except that during the final month of vesting 31,138 shares shall vest. All of the options expire on August 14, 2023. The option grant was made pursuant to the Company’s 2010 Employee Stock Plan.
	On September 18, 2013, Yvonne Gaudette was appointed as Vice President of Marketing. As the Company’s Vice President of Marketing, pursuant to a written agreement, Ms. Gaudette will receive a base salary of $110,000 per year, along with quarterly performance based bonus compensation and an option to purchase up to 125,000 shares of the Company’s common stock at the strike price of $1.03 per share. The options vest over a period of four years with 25% of the option shares vesting on September 18, 2014 and the remaining 75% of the option shares vest on an equal monthly basis thereafter. All of the options expire on September 17, 2023. The option grant was made pursuant to the Company’s 2010 Employee Stock Plan.
	On September 25, 2013, Paul Parisi was appointed as Vice President of Innovation.  As the Company’s Vice President of Innovation, pursuant to a written agreement, Mr. Parisi will receive a base salary of $70,000 per year, along with quarterly performance based bonus compensation and an option to purchase up to 150,000 shares of the Company’s common stock at the strike price of $1.11 per share. The options vest in two tranches as follows: (i) 75,000 shares vest over a period of four years following the commencement of part-time employment (the Initial Option shares”) whereby 25% of the Initial Option Shares will vest on September 25, 2014 and the remaining 75% of the Initial Option Shares vest on a monthly basis thereafter; (ii) and 75,000 shares vest over the four years following the commencement of full time employment, if that event occurs (the "Second Option Shares"), whereby 25% of the Second Option Shares vest on the first anniversary of the date of the start of full time employment and the remaining 75% of the Second Option Shares vest on a monthly basis thereafter. All of the options expire on September 24, 2023. The option grant was made pursuant to the Company’s 2010 Employee Stock Plan.

Asset_Purchase_Agreement

Asset Purchase Agreement	9 Months Ended
	Sep. 30, 2013
Asset Purchase Agreement	'
Asset Purchase Agreement	'
	Note 3: Asset Purchase Agreement
	On January 9, 2013 the Company entered into an asset purchase agreement (“Asset Purchase Agreement”) with Oktet Bilişim Danışmanlık Organizayon Reklamcılık Limited Şirketi, a Turkish corporation (“Octeth”). Pursuant to the Asset Purchase Agreement, the Company acquired from Octeth certain tangible assets, including servers and devices, intangible assets related to PreviewMyEmail.com, along with customer and co-location contracts, in exchange for $160,000 cash. This asset purchase agreement did not constitute a business combination for which purchase accounting would apply and therefore the purchase price was allocated to the assets acquired based on their estimated fair value.

Shareholders_Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2013
Stockholders' Equity Note [Abstract]	'
Shareholders' Equity	'
	Note 4: Shareholders’ Equity
	The Company began paying dividends during the year ended December 31, 2012. The Company distributed dividends of $2,589,011 in cash to its shareholders during the year ended December 31, 2012. For the three and nine months ending September 30, 2013, the Company paid dividends of $347,388 and $880,770 respectively.
	On March 8, 2013, in connection with a consulting agreement, the Company issued 63,868 shares of common stock in exchange for services. See Note 2 for more discussion.
	On April 8, 2013, the Company issued a total of 8,880 shares of the Company’s common stock to the directors.
	On May 22, 2013 the Company entered into an investment agreement. Pursuant to the investment agreement, the Company may issue and sell to the investor, up to that number of shares of the Company’s common stock having an aggregate purchase price of $2.5 million, over a period of 36 months from the first trading day following the effectiveness of the registration statement registering the resale of shares. The purchase price shall be set at 92% of the lowest daily volume weighted average price of the Common Stock during the five consecutive trading day period beginning on the date of delivery of the applicable draw down notice.
	On June 20, 2013, as part of the investment agreement, the Company filed with the Securities Exchange Commission a Form S-1 for the registration of its Common Stock, $0.001 par value.  The amount of shares to be registered was 2.5 million. The S-1 became effective on June 27, 2013. During the quarter ended September 30, 2013, 283,868 shares were issued related to this agreement.
	On July 1, 2013, the Company terminated a consulting services agreement and issued 70,414 shares of common stock to pay the outstanding balance of approximately $75,000 due to the consultants. See Note 2.
	On August 15, 2013, the Company issued a total of 4,956 shares of the Company’s common stock to the directors.

Net_Income_Per_Share

Net Income Per Share	9 Months Ended
	Sep. 30, 2013
Net income per share:	'
Net Income Per Share	'
	Note 5: Net Income Per Share
	Computation of net income per share is as follows:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Net income attributable to SMTP.com	$	319,587	$	313,854	$	930,593	$	758,910
	Basic weighted average common shares outstanding		15,130,162		14,707,250		14,931,366		14,297,562
	Add incremental shares for:
	Warrants		26,450		-		53,228		-
	Stock options		543,352		551,593		554,058		598,986
	Diluted weighted average common shares outstanding		15,699,964		15,258,843		15,538,652		14,896,548
	Net income per share:
	Basic	$	0.02	$	0.02	$	0.06	$	0.05
	Diluted	$	0.02	$	0.02	$	0.06	$	0.05

StockBased_Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2013
Share-based Compensation [Abstract]	'
Stock-Based Compensation	'
	Note 6:  Stock-Based Compensation
	The Company has historically granted stock options to certain vendors and employees.
	In November 2010, the board of directors authorized the 2010 Stock Incentive Plan ("the Plan") which provides us with the ability to issue options on up to 1,360,000 common shares.
	In April 2011, the Company increased the number of shares of the Company’s common stock available for issuance under the Plan from 1,360,000 to 2,500,000.
	In August 2013, the Company increased the number of shares of the Company’s common stock available for issuance under the Plan from 2,500,000 to 5,000,000. The Company’s stockholders approved this increase on October 22, 2013 pursuant to a written consent of stockholders owning a majority of the shares of outstanding common stock.
	Stock option awards are expensed on a straight-line basis over the requisite service period.  During the three and nine months ended September 30, 2013, the Company recognized expense of $71,237 and $131,381, respectively, associated with stock option awards. During the three and nine months ended September 30, 2012, the Company recognized expense of $50,314 and $116,584, respectively, associated with stock option awards. At September 30, 2013, future stock compensation expense (net of estimated forfeitures) not yet recognized was $1,331,541 and will be recognized over a weighted average remaining vesting period of 3.89 years.  The following summarizes stock option activity for the nine months ended September 30, 2013:
									Weighted
					Weighted		Weighted		Average
					Average		Average		Remaining
		Number of			Exercise		Fair		Contractual
		Shares			Price		Value		Life
	Outstanding at December 31, 2012		2,184,583		$	0.89	$	0.48
	Granted at market price		1,768,449			1.01
	Exercised		(94,500	)	$	0.25
	Forfeited		(474,000	)	$	1.26
	Outstanding at September 30, 2013		3,384,532			0.92		0.23		9.1
	Exercisable at September 30, 2013		619,446		$	0.51	$	0.29		7.2
	The outstanding shares at December 31, 2012 were adjusted to reflect options that were issued but not included in the prior periods tables.  This does not impact stock compensation expense.
	The following table summarizes information about the Company’s stock options at September 30, 2013:
		Exercisable					Unexercisable				Total
					Weighted				Weighted				Weighted
		Number			Average		Number		Average		Number		Average
	Range of Exercise Prices	Outstanding			Exercise Price		Outstanding		Exercise Price		Outstanding		Exercise Price
	$.25 per share		487,333		$	0.25		102,250		0.25		589,583	$	0.25
	$0.99 per share		-			-		765,000		0.99		765,000	$	0.99
	$1.00 per share		31,113			1		1,462,336		1		1,493,449	$	1
	$1.03 per share		-		$	-		125,000		1.03		125,000	$	1.03
	$1.11 per share		-		$	-		150,000		1.11		150,000	$	1.11
	$1.59 per share		101,000		$	1.59		160,500		1.59		261,500	$	1.59

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	Note 7: Income Taxes
	During the quarter ended September 30, 2013, the Company recorded an income tax provision of $159,261, which was comprised of a current provision of $155,214 and a deferred provision of $4,047.

Warrants

Warrants	9 Months Ended
	Sep. 30, 2013
Warrants	'
Warrants	'
	Note 8: Warrants
	On October 29, 2012, in connection with a consulting agreement, the Company issued 454,863 warrants to purchase common stock at an exercise price of $0.98 per share with a term of 5 years. The warrants vest according to the following schedule: 75,813 shares vest immediately and 75,810 shares vest at the end of every thirty day period thereafter until the warrant is 100% vested. For the three and nine months ending September 30, 2013, the Company recognized an expense of $0 and $130,298, respectively, associated with these awards. The warrants expire on October 29, 2017 and have a remaining contractual life of 4.1 years as of September 30, 2013.
	On August 1, 2013, in connection with a consulting agreement, the Company issued 150,000 warrants to purchase common stock at an exercise price of $1.00 per share with a term of 3 years. As of September 30, 2013, all warrants were exercisable. For the three and nine months ending September 30, 2013, the Company recognized an expense of $57,779 associated with these awards. The warrants expire on August 1, 2016 and have a remaining contractual life of 2.84 years as of September 30, 2013.
	The following table summarizes information about the Company’s warrants at September 30, 2013:
						Weighted
						Average
				Weighted		Remaining
		Number		Average		Contractual		Intrinsic
		of Units		Exercise Price		Term (in years)		Value
	Outstanding at December 31, 2012		454,863	$	0.98		4.8		49,277
	Granted		150,000		1		2.8		22,500
	Outstanding at September 30, 2013		604,863	$	0.98		4.3		99,827
	Exercisable at September 30, 2013		604,863	$	0.98		4.3		99,827

Subsequent_Events

Subsequent Events	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
Subsequent Events	'
	Note 9: Subsequent Events
	On September 26, 2013, pursuant to its May 22, 2013 investment agreement, the Company put up to $100,000 worth of shares to the Investor for a five business day period. On October 3, 2013, pursuant to that put, the Company issued 21,415 shares of the Company’s common stock to the Investor in exchange for $21,165 received from the Investor.
	On October 3, 2013, pursuant to its May 22, 2013 investment agreement, the Company put up to $100,000 worth of shares to the Investor for a five business day period.  On October 11, 2013, pursuant to that put, the Company issued 6,000 shares of the Company’s common stock to the Investor in exchange for $5,750 received from the Investor.
	On October 10, 2013, pursuant to its May 22, 2013 investment agreement, the Company put up to $100,000 worth of shares to the investor for a five business day period.  On October 18, 2013, pursuant to that put, the Company issued 10,487 shares of the Company’s common stock to the investor in exchange for $10,027 received from the investor.
	On October 22, 2013, stockholders holding an 86.97% majority of the shares of voting securities outstanding and entitled to vote unanimously adopted and approved an increase in the number of shares of common stock available for issuance under the 2010 Stock Incentive Plan from 2,500,000 to 5,000,000.

Organization_and_Basis_of_Pres1

Organization and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Basis of Presentation	'
	Basis of Presentation
	In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of only normal recurring accruals, necessary for a fair statement of financial position, results of operations, and cash flows. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the financial statements and the accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC on March 29, 2013. The accounting policies are described in the “Notes to Financial Statements” in the 2012 Annual Report on Form 10-K and updated, as necessary, in this Form 10-Q. The year-end balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period.
	Certain reclassifications have been made to prior period reported amounts to conform to current year presentation.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments
	U.S. GAAP establishes a fair value hierarchy which has three levels based on the reliability of the inputs to determine the fair value. These levels include: Level 1, defined as inputs such as unadjusted quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for use when little or no market data exists, therefore requiring an entity to develop its own assumptions.
	The Company’s financial instruments consist of cash, accounts receivable, deposits and accounts payable. The carrying amount of cash, accounts receivable and accounts payable approximates fair value because of the short-term nature of these items.
Income Taxes	'
	Income Taxes
	Provision for income taxes are based on taxes payable or refundable for the current year and deferred taxes on temporary differences between the amount of taxable income and pretax financial income and between the tax bases of assets and liabilities and their reported amounts in the financial statements. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled as prescribed in FASB ASC 740, Accounting for Income Taxes. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized.
	The Company applies the authoritative guidance in accounting for uncertainty in income taxes recognized in the financial statements. This guidance prescribes a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more-likely-than-not” to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. There are no uncertain tax positions taken by the Company on its tax returns. Tax years subsequent to 2010 remain open to examination by U.S. federal and state tax jurisdictions.
	In determining the quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, statutory tax rates and tax planning opportunities available to the Company in the jurisdictions in which it operates. This includes 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 to the extent pervasive evidence exists that they will be realized in future periods. The deferred tax balances are adjusted to reflect tax rates by tax jurisdiction, based on currently enacted tax laws, which are expected to be in effect in the years in which the temporary differences are expected to reverse. In accordance with the Company’s income tax policy, significant or unusual items are separately recognized in the quarter in which they occur.
Revenue Recognition	'
	Revenue Recognition
	The Company recognizes revenue from its services when it is probable that the economic benefits associated with the transactions will flow to the Company and the amount of revenue can be measured reliably. This is normally demonstrated when: (i) persuasive evidence of an arrangement exists; (ii) the fee is fixed or determinable; (iii) performance of service has been delivered; and (iv) collection is reasonably assured.
	The Company provides Internet-based services to facilitate email delivery. The Company’s services are offered over various contractual periods for a fixed fee that varies based on a maximum volume of transactions. Revenues are typically paid by clients via credit card, check or wire payments at the inception of the contractual period. Revenue is recognized on a straight-line basis over the contractual period.
	The Company offers refunds on a pro-rata basis at any time during the contractual period. The Company also experiences credit card chargebacks relating to cardholder disputes that are commonly experienced by businesses that accept credit cards. The Company makes estimates for refunds and credit card chargebacks based on historical experience.
Deferred Revenue	'
	Deferred Revenue
	The Company’s customers pay for services in advance on a monthly, quarterly, annual, bi-annually and quinquennially basis. Deferred revenue consists of payments received in advance of the Company’s providing the services. Deferred revenues are amortized on a straight-line basis in connection with the contractual period.
Net Income Per Share	'
	Net Income Per Share
	Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period.

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	2013		42,105
	2014		14,405
	2015		-
	2016		-
	2017		-
	Thereafter		-
		$	56,510

Net_Income_Per_Share_Tables

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2013
Net income per share:	'
Net Income Per Share	'
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Net income attributable to SMTP.com	$	319,587	$	313,854	$	930,593	$	758,910
	Basic weighted average common shares outstanding		15,130,162		14,707,250		14,931,366		14,297,562
	Add incremental shares for:
	Warrants		26,450		-		53,228		-
	Stock options		543,352		551,593		554,058		598,986
	Diluted weighted average common shares outstanding		15,699,964		15,258,843		15,538,652		14,896,548
	Net income per share:
	Basic	$	0.02	$	0.02	$	0.06	$	0.05
	Diluted	$	0.02	$	0.02	$	0.06	$	0.05

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2013
Share-based Compensation [Abstract]	'
Stock Options Activity	'
									Weighted
					Weighted		Weighted		Average
					Average		Average		Remaining
		Number of			Exercise		Fair		Contractual
		Shares			Price		Value		Life
	Outstanding at December 31, 2012		2,184,583		$	0.89	$	0.48
	Granted at market price		1,768,449			1.01
	Exercised		(94,500	)	$	0.25
	Forfeited		(474,000	)	$	1.26
	Outstanding at September 30, 2013		3,384,532			0.92		0.23		9.1
	Exercisable at September 30, 2013		619,446		$	0.51	$	0.29		7.2
Stock Options Exercise Price Range	'
		Exercisable					Unexercisable				Total
					Weighted				Weighted				Weighted
		Number			Average		Number		Average		Number		Average
	Range of Exercise Prices	Outstanding			Exercise Price		Outstanding		Exercise Price		Outstanding		Exercise Price
	$.25 per share		487,333		$	0.25		102,250		0.25		589,583	$	0.25
	$0.99 per share		-			-		765,000		0.99		765,000	$	0.99
	$1.00 per share		31,113			1		1,462,336		1		1,493,449	$	1
	$1.03 per share		-		$	-		125,000		1.03		125,000	$	1.03
	$1.11 per share		-		$	-		150,000		1.11		150,000	$	1.11
	$1.59 per share		101,000		$	1.59		160,500		1.59		261,500	$	1.59

Warrants_Tables

Warrants (Tables)	9 Months Ended
	Sep. 30, 2013
Warrants	'
Schedule of Warrants	'
						Weighted
						Average
				Weighted		Remaining
		Number		Average		Contractual		Intrinsic
		of Units		Exercise Price		Term (in years)		Value
	Outstanding at December 31, 2012		454,863	$	0.98		4.8		49,277
	Granted		150,000		1		2.8		22,500
	Outstanding at September 30, 2013		604,863	$	0.98		4.3		99,827
	Exercisable at September 30, 2013		604,863	$	0.98		4.3		99,827

Commitments_and_Contingencies_1

Commitments and Contingencies - (Details) (USD $)	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Operating lease, minimum payments due within next 12 months (2013)	$42,105
Operating lease, minimum payments due, year2 (2014)	14,405
Operating lease, minimum payments due, year 3 (2015)	'
Operating lease, minimum payments due, year 4 (2016)	'
Operating lease, minimum payments due, year 5 (2017)	'
Operating lease, minimum payments due, thereafter	'
Total operating lease, minimum payments due	$56,510

Net_Income_Per_Share_Details

Net Income Per Share - (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net income per share:	'	'	'	'
Net income attributable to SMTP.com	$319,587	$313,854	$930,593	$758,910
Basic weighted average common shares outstanding	15,130,162	14,707,250	14,931,366	14,297,562
Add incremental shares for:	'	'	'	'
Warrants	2,626,450	'	53,228	'
Stock options	543,352	551,593	554,058	598,986
Diluted weighted average common shares outstanding	15,699,964	15,258,843	15,538,652	14,896,548
Net income per share:	'	'	'	'
Basic	$0.02	$0.02	$0.06	$0.05
Diluted	$0.02	$0.02	$0.06	$0.05

StockBased_Compensation_Stock_

Stock-Based Compensation (Stock Option Activity) (Details) (USD $)	0 Months Ended		9 Months Ended
	Aug. 01, 2013	Oct. 29, 2012	Sep. 30, 2013
Number of Options	'	'	'
Outstanding at beginning of period	'	'	2,184,583
Granted at market price	'	'	1,768,449
Exercised	'	'	-94,500
Forfeited	'	'	-474,000
Outstanding at end of period	'	'	3,384,532
Exercisable at end of period	'	'	619,446
Weighted Average Exercise Price	'	'	'
Outstanding at beginning of period	'	'	$0.89
Granted at market price	'	'	$1.01
Exercised	'	'	$0.25
Forfeited	'	'	$1.26
Outstanding at end of period	'	'	$0.92
Exercisable at end of period	'	'	$0.51
Weighted Average Fair Value	'	'	'
Outstanding at beginning of period	'	'	$0.48
Granted at market price	'	'	'
Outstanding at end of period	'	'	'
Exercisable at end of period	'	'	$0.23
Remaining Contractual Life	'	'	'
Outstanding at end of period	'2 years 10 months 2 days	'4 years 1 month 5 days	'9 years 1 month 4 days
Exercisable at end of period	'	'	'7 years 2 months 13 days

StockBased_Compensation_Stock_1

Stock-Based Compensation (Stock Options Range of Exercise Prices) (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
$0.25 per share [Member]	'
Exercisable	'
Number Outstanding	487,333
Weighted Average Exercise Price	$0.25
Unexercisable	'
Number Outstanding	102,250
Weighted Average Exercise Price	$0.25
Total	'
Number Outstanding	600,333
Weighted Average Exercise Price	$0.25
$1.59 per share [Member]	'
Exercisable	'
Number Outstanding	101,000
Weighted Average Exercise Price	$1.59
Unexercisable	'
Number Outstanding	160,500
Weighted Average Exercise Price	$1.59
Total	'
Number Outstanding	286,000
Weighted Average Exercise Price	$1.69
$0.99 per share [Member]	'
Unexercisable	'
Number Outstanding	765,000
Weighted Average Exercise Price	$0.99
Total	'
Number Outstanding	765,000
Weighted Average Exercise Price	$0.99
$0.25 per share [Member]	'
Range of Exercise Prices (Lower)	$0.25
Range of Exercise Prices (Upper)	$0.25
$1.59 per share [Member]	'
Range of Exercise Prices (Lower)	$1.59
Range of Exercise Prices (Upper)	$1.59
$0.99 per share [Member]	'
Range of Exercise Prices (Lower)	$0.99
Range of Exercise Prices (Upper)	$0.99
$1.00 per share [Member]	'
Range of Exercise Prices (Lower)	$1
Range of Exercise Prices (Upper)	$1
Exercisable	'
Number Outstanding	31,113
Weighted Average Exercise Price	$1
Unexercisable	'
Number Outstanding	1,462,336
Weighted Average Exercise Price	$1
Total	'
Number Outstanding	1,493,449
Weighted Average Exercise Price	$1
$1.03 per share [Member]	'
Range of Exercise Prices (Lower)	$1.03
Range of Exercise Prices (Upper)	$1.03
Unexercisable	'
Number Outstanding	125,000
Weighted Average Exercise Price	$1.03
Total	'
Number Outstanding	125,000
Weighted Average Exercise Price	$1.03
$1.11 per share [Member]	'
Range of Exercise Prices (Lower)	$1.11
Range of Exercise Prices (Upper)	$1.11
Unexercisable	'
Number Outstanding	150,000
Weighted Average Exercise Price	$1.11
Total	'
Number Outstanding	150,000
Weighted Average Exercise Price	$1.11

Warrants_Details

Warrants (Details) (USD $)	0 Months Ended		9 Months Ended	0 Months Ended	9 Months Ended		9 Months Ended
	Aug. 01, 2013	Oct. 29, 2012	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013
				Warrant [Member]	Warrant [Member]	Warrant [Member]	Granted [Member]	Exercisable [Member]
Number of Warrants	'	'	'	'	'	'	'	'
Outstanding at beginning of period	'	'	'	'	$454,863	$454,863	'	'
Warrants granted	'	'	'	'	150,000	'	'	'
Outstanding at end of period	'	'	'	454,863	604,863	'	'	'
Warrants exercisable	'	'	'	'	604,863	'	'	'
Weighted average exercise price	'	'	$0.25	$0.98	$0.98	'	$1	$0.98
Remaining contractual life	'2 years 10 months 2 days	'4 years 1 month 5 days	'9 years 1 month 4 days	'4 years 9 months 18 days	'	'	'2 years 9 months 18 days	'4 years 3 months 18 days
Intrinsic value of warrants outstanding	'	'	'	$49,277	$99,827	'	$22,500	$99,827

Commitments_and_Contingencies_2

Commitments and Contingencies (Details Narrative) (USD $)

0 Months Ended

9 Months Ended

0 Months Ended

Aug. 15, 2013

Aug. 01, 2013

Jul. 02, 2013

29-May-13

Apr. 08, 2013

Mar. 08, 2013

Mar. 04, 2013

Oct. 29, 2012

Oct. 18, 2012

Sep. 30, 2013

Mar. 08, 2013

Mar. 08, 2013

Mar. 05, 2013

Mar. 05, 2013

Mar. 05, 2013

Aug. 15, 2013

Sep. 18, 2013

Sep. 25, 2013

Equity Issuance One During Period

Equity Issuance Two During Period

VP Operations and Customer Service

CTO

Comptroller

CEO

VP Marketing

VP Innovation

Warrants/Options issued

'

150,000

'

'

'

'

'

454,863

'

'

'

'

'

'

'

1,493,449

125,000

150,000

Warrants/Options, exercise price

'

$1

'

'

'

'

'

$0.98

'

'

'

'

'

'

'

$1

$1.03

$1.11

Warrants, term

'

'3 years

'

'

'

'

'

'5 years

'

'

'

'

'

'

'

'

'

'

Terms of professional services agreement

'

'On August 1, 2013, the Company entered into a professional services agreement. In connection with the agreement, the Company issued 150,000 warrants to purchase common stock at an exercise price of $1.00 per share with a term of 3 years in exchange for professional services. As of September 30, 2013, all warrants were exercisable. This agreement also requires the Company to pay $7,500 in cash per month for 12 months in exchange for sales and marketing services. The agreement terminates on July 31, 2014 but is cancellable after the first six months.

'

'On May 29, 2013 the Company entered into a professional services agreement. The agreement requires the Company to pay $25,000 per month in exchange for marketing and advertising services. The agreement terminates on December 31, 2014 but is cancellable at any time.

'

'

'On March 4, 2013, the Company amended the agreement so that each month is a fixed fee of $25,000 payable in $12,500 cash and $12,500 in restricted common stock. The addendum also waived all fees and other amounts exceeding $25,000 owed for November and Decemer 2012.

'On October 29, 2012, the Company entered into a professional services agreement. In connection with the agreement, the Company issued 454,863 warrants to purchase common stock at an exercise price of $0.98 per share with a term of 5 years in exchange for professional services. As of September 30, 2013, all warrants were exercisable.. The agreement also call for certain incentives that if achieved call for the disbursement of $500,000 or more depending on the size of transaction as well as fees to arrange funding. See Note 7 for discussion of warrants.

'On October 18, 2012, the Company entered into a professional services agreement. The agreement requires the Company to pay a monthly cash retainer of $12,500 to cover professional services provided by the service provider. Additionally, any service that exceeds the $12,500 retainer are to be paid through issuances of the CompanyBs common stock with a vesting schedule of six months from delivery date.

'

'

'

'

'

'

'

'

'

Cash payment due per agreement, monthly

'

$7,500

'

$25,000

'

'

$12,500

'

$12,500

'

'

'

'

'

'

'

'

'

Monthly stock issuance due per agreement, value

'

'

'

'

'

'

12,500

'

'

'

'

'

'

'

'

'

'

'

Agreement termination date

'

'2014-07-14

'

'2014-12-31

'

'

'2013-07-01

'

'

'

'

'

'

'

'

'

'

'

Shares issued for services rendered, shares

4,956

'

70,414

'

8,880

63,868

'

'

'

'

18,868

45,000

'

'

'

'

'

'

Shares issued for services rendered, amount

'

'

75,000

'

'

'

'

'

'

'

25,000

55,800

'

'

'

'

'

'

Shares issued for services, price per share

'

'

'

'

'

'

'

'

'

'

'

$1.24

'

'

'

'

'

'

Officer yearly base salary

'

'

'

'

'

'

'

'

'

'

'

'

$38,400

$36,000

$50,000

$180,000

$110,000

$70,000

Vesting period

'

'

'

'

'

'

'

'

'

'3 years 10 months 20 days

'

'

'

'

'

'4 years

[1]

'4 years

[2]

'4 years

[3]

Expiration date

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

14-Aug-23

17-Sep-23

24-Sep-23

[1]

The options vest monthly over a four year period in equal installments of 31,113 shares per month beginning August 15, 2013, except that during the final month of vesting 31,138 shares shall vest.

[2]

The options vest over a period of four years with 25% of the option shares vesting on September 18, 2014 and the remaining 75% of the option shares vest on an equal monthly basis thereafter.

[3]

The options vest in two tranches as follows: (i) 75,000 shares vest over a period of four years following the commencement of part-time employment (the "Initial Option shares") whereby 25% of the Initial Option Shares will vest on September 25, 2014 and the remaining 75% of the Initial Option Shares vest on a monthly basis thereafter; (ii) and 75,000 shares vest over the four years following the commencement of full time employment, if that event occurs (the "Second Option Shares"), whereby 25% of the Second Option Shares vest on the first anniversary of the date of the start of full time employment and the remaining 75% of the Second Option Shares vest on a monthly basis thereafter.

Asset_Purchase_Agreement_Detai

Asset Purchase Agreement (Details Narrative) (USD $)	0 Months Ended
	Jan. 09, 2013
Asset Purchase Agreement	'
Asset purchase agreement, assets acquired value	$160,000
Description of assets purchased	'On January 9, 2013 the registrant entered into an asset purchase agreement ("Asset Purchase Agreement") with Oktet Bilisim Danismanlik Organizayon Reklamcilik Limited Sirketi, a Turkish corporation ("Octeth"). Pursuant the Asset Purchase Agreement, the Company acquired from Octeth certain tangible assets, including servers and devices, intangible assets related to PreviewMyEmail.com, along with customer and co-location contracts, in exchange for $160,000 cash.

Shareholders_Equity_Details_Na

Shareholders' Equity (Details Narrative) (USD $)

0 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

9 Months Ended

Oct. 18, 2013

Oct. 11, 2013

Oct. 03, 2013

Aug. 15, 2013

Jul. 02, 2013

Apr. 08, 2013

Mar. 08, 2013

Sep. 30, 2013

Dec. 31, 2012

22-May-13

Sep. 30, 2013

Sep. 30, 2013

Quarterly Dividend

Quarterly Dividend

Cash dividend issued to shareholders

'

'

'

'

'

'

'

'

$2,589,011

'

$347,388

$880,770

Shares issued for services rendered, shares

'

'

'

4,956

70,414

8,880

63,868

'

'

'

'

'

Shares issued for services rendered, amount

'

'

'

'

$75,000

'

'

'

'

'

'

'

Investment Agreement

'

'

'

'

'

'

'

'

'

'On May 22, 2013 the Company entered into an investment agreement. Pursuant to the investment agreement, the Company may issue and sell to the investor, up to that number of shares of the CompanyBs common stock having an aggregate purchase price of $2.5 million, over a period of 36 months from the first trading day following the effectiveness of the registration statement registering the resale of shares. The purchase price shall be set at 92% of the lowest daily volume weighted average price of the Common Stock during the five consecutive trading day period beginning on the date of delivery of the applicable draw down notice. On June 20, 2013, as part of the investment agreement, the Company filed with the Securities Exchange Commission a Form S-1 for the registration of its Common Stock, $.001 par value. The amount of shares to be registered was 2.5 million. The S-1 became effective on June 27, 2013.

'

'

Shares issued per Investment Agreement

10,487

6,000

21,415

'

'

'

'

283,868

'

'

'

'

StockBased_Compensation_Detail

Stock-Based Compensation (Details Narrative) (USD $)	0 Months Ended		1 Months Ended			3 Months Ended		9 Months Ended
	Oct. 22, 2013		Aug. 31, 2013	Apr. 29, 2011	Nov. 30, 2010	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock Options Granted:	'		'	'	'	'	'	'	'
Stock options available for issuance under plan during period	5,000,000	[1]	5,000,000	2,500,000	1,360,000	'	'	'	'
Stock option awards, recognized expense	'		'	'	'	$71,237	$50,314	$131,381	$116,584
Future stock compensation expense (net of estimated forfeitures)	'		'	'	'	'	'	$1,331,541	'
Vesting period	'		'	'	'	'	'	'3 years 10 months 20 days	'
Increase in number of shares of common stock available for issuance under the plan	'		'In August 2013, the Company increased the number of shares of the CompanyBs common stock available for issuance under the Plan from 2,500,000 to 5,000,000.	'In April 2011, the Company increased the number of shares of the CompanyBs common stock available for issuance under the Plan from 1,360,000 to 2,500,000.	'	'	'	'	'
[1]	On October 22, 2013, stockholders holding an 86.97% majority of the shares of voting securities outstanding and entitled to vote unanimously adopted and approved an increase in the number of shares of common stock available for issuance under the 2010 Stock Incentive Plan from 2,500,000 to 5,000,000.

Income_Taxes_Details_Narrative

Income Taxes (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Tax Disclosure [Abstract]	'	'	'	'
Provision for income tax	$159,261	$212,377	$497,058	$513,589
Current tax provision	155,214	'	'	'
Deferred tax benefit	$4,047	'	($31,758)	$15,378

Warrants_Details_Narrative

Warrants (Details Narrative) (USD $)	0 Months Ended		3 Months Ended		9 Months Ended		0 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended
	Aug. 01, 2013	Oct. 29, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013
							Warrant [Member]	Warrant [Member]	Warrant [Member]	Warrant Two [Member]	Warrant Two [Member]
Warrants issued:	'	'	'	'	'	'	'	'	'	'	'
Warrants issued to vendors	150,000	454,863	'	'	'	'	'	'	'	'	'
Exercise price	$1	$0.98	'	'	'	'	'	'	'	'	'
Term	'3 years	'5 years	'	'	'	'	'	'	'	'	'
Warrants, recognized expense	'	'	$71,237	$50,314	$131,381	$116,584	'	'	$130,928	$57,779	$57,779
Warants vesting schedule	'	'Warrants vest according to the following schedule: 75,813 shares vest immediately and 75,810 shares vest at the end of every thirty day period thereafter until the warrant is 100% vested.	'	'	'	'	'	'	'	'	'
Date warrants expire	'2016-08-01	'2017-10-29	'	'	'	'	'	'	'	'	'
Remaining contractual life	'2 years 10 months 2 days	'4 years 1 month 5 days	'	'	'9 years 1 month 4 days	'	'4 years 9 months 18 days	'	'	'	'

Subsequent_Events_Details_Narr

Subsequent Events (Details Narrative) (USD $)	0 Months Ended							1 Months Ended			3 Months Ended
	Oct. 22, 2013		Oct. 18, 2013	Oct. 11, 2013	Oct. 10, 2013	Oct. 03, 2013	Sep. 26, 2013	Aug. 31, 2013	Apr. 29, 2011	Nov. 30, 2010	Sep. 30, 2013
Subsequent Events [Abstract]	'		'	'	'	'	'	'	'	'	'
Majority stockholders approve increase in Plan shares available for issuance, percent	86.97%		'	'	'	'	'	'	'	'	'
Stock options available for issuance under plan during period	5,000,000	[1]	'	'	'	'	'	5,000,000	2,500,000	1,360,000	'
Shares issued for cash, shares	'		10,487	6,000	'	21,415	'	'	'	'	283,868
Shares issued for cash, amount	'		$10,027	$5,750	'	$21,165	'	'	'	'	'
Shares made available (Put)	'		'	'	100,000	100,000	100,000	'	'	'	'
Term of Put	'		'	'	'5 business days	'5 business days	'5 business days	'	'	'	'
[1]	On October 22, 2013, stockholders holding an 86.97% majority of the shares of voting securities outstanding and entitled to vote unanimously adopted and approved an increase in the number of shares of common stock available for issuance under the 2010 Stock Incentive Plan from 2,500,000 to 5,000,000.