Excel (EXCC) 10-Q 15 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 15, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Excel Corp
Entity Central Index Key	1,512,890
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		96,759,070

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets
Cash and cash equivalents	$ 252,939	$ 362,130
Accounts receivable	1,164,066	1,016,141
Prepaid expenses	6,493	43,074
Other current assets	174,913	83,545
Current assets held for sale		167,406
Total current assets	1,598,411	1,672,296
Other Assets
Fixed assets, net of depreciation	169,730	184,960
Goodwill	7,914,269	7,914,269
Note receivable	675,000	675,000
Equity investment	188,140	164,790
Residual portfolios	2,328,966	2,505,164
Other long term assets	516,762	593,893
Other assets held for sale		302,898
Total other assets	11,792,867	12,340,974
Total assets	13,391,278	14,013,270
Current Liabilities
Accounts payable	704,183	1,374,878
Accrued compensation	1,877,660	1,508,531
Other accrued liabilities	1,276,834	839,308
Notes payable - current portion	8,998,547	8,984,544
Accrued costs of disposal of discontinued operations	400,000
Total current liabilities	13,257,224	12,707,261
Long-term Liabilities
Notes payable - long term portion		226,733
Other long term liabilities	719,988	41,692
Total long-term liabilities	719,988	268,425
Commitments and contingencies
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock, value
Common stock, $.0001 par value, 200,000,000 shares authorized 96,759,070 and 98,259,070 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively.	9,676	9,826
Additional paid-in capital	4,770,503	4,428,391
Accumulated deficit	(5,366,573)	(3,400,633)
Total stockholders' equity (deficit)	(585,934)	1,037,584
Total Liabilities and Stockholders' Equity (Deficit)	13,391,278	14,013,270
Series A Preferred Stock
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock, value
Total stockholders' equity (deficit)
Series B Preferred Stock
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock, value	460
Total stockholders' equity (deficit)

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	96,759,070	98,259,070
Common stock, shares outstanding	96,759,070	98,259,070
Series A Preferred Stock
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares issued	0	2
Preferred stock, shares outstanding	0	2
Series B Preferred Stock
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares issued	4,600,000	0
Preferred stock, shares outstanding	4,600,000	0

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
Transaction and processing fees	$ 4,390,222	$ 1,060,225	$ 8,356,075	$ 2,213,934
Merchant cash advance revenue and other	56,069		109,874
Total revenues	4,446,291	1,060,225	8,465,949	2,213,934
Costs and expenses
Processing and servicing costs	2,159,790	142,263	4,169,799
Salaries and wages	841,138	338,925	1,816,973	672,678
Other selling general and administrative expenses	500,215	239,764	989,137	667,013
Total costs and expenses	3,501,143	720,952	6,975,909	1,339,691
Income from operations	945,148	339,273	1,490,040	874,243
Interest expense, net	278,039	67,695	606,655	146,600
Net income from continuing operations before income taxes	667,109	271,578	883,385	727,643
Income tax expense (benefit)
Current	246,830	100,484	326,852	269,228
Deferred	(246,830)	(100,484)	(326,852)	(269,228)
Income tax expense
Net income from continuing operations	667,109	271,578	883,385	727,643
Loss from discontinued operations, net of tax	(661,655)	(415,053)	(2,008,684)	(1,395,058)
Loss on disposal of operations			(840,641)
Net income (loss)	$ 5,454	$ (143,475)	$ (1,965,940)	$ (667,415)
Net income (loss) per share
Basic & diluted, continuing operations	$ 0.007	$ 0.003	$ 0.009	$ 0.007
Basic & Diluted, discontinued operations	(0.007)	(0.004)	(0.029)	(0.014)
Basic & Diluted, Total	$ 0	$ (0.001)	$ (0.020)	$ (0.007)
Weighted average shares outstanding basic & diluted	96,759,070	97,918,411	96,907,422	97,590,562

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities:
Net loss	$ (1,965,940)	$ (667,415)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	243,998	49,004
Stock based compensation	112,423	147,575
Income in investment accounted for under the equity method	(23,350)
Loss on disposal of operations	840,641
Decrease (increase)
Accounts receivable	(147,925)	139,642
Inventory		4,311
Other current assets	(91,368)
Prepaid expenses	36,581	25,456
Other long term assets	77,131	4,583
Increase (decrease)
Accounts payable	(670,695)	47,247
Accrued compensation	369,129	98,127
Other accrued liabilities	437,525	397,878
Other long-term liabilities	678,296	261
Net cash provided by (used in) operating activities	(103,554)	246,669
Cash flows from investing activities:
Purchase of property and equipment	(22,907)	(148,656)
Net cash used in investing activities	(22,907)	(148,656)
Cash flows from financing activities:
Issuance of notes	230,000	100,000
Issuance of preferred stock	(212,730)
Note and debt payments		(368,145)
Net cash provided by (used in) financing activities	17,270	(268,145)
Net decrease in cash	(109,191)	(170,132)
Cash - Beginning	362,130	326,788
Cash - Ending	252,939	156,656
Supplemental disclosure of cash flow information
Cash paid for interest	$ 606,655	$ 67,695

Organization and Operations

Organization and Operations	6 Months Ended
	Jun. 30, 2016
Organization and Operations [Abstract]
ORGANIZATION AND OPERATIONS	1. ORGANIZATION AND OPERATIONS Excel Corporation (the “Company”) was organized on November 13, 2010 as a Delaware corporation. The Company has three wholly owned subsidiaries, Excel Business Solutions, Inc. (d/b/a eVance Capital), Payprotec Oregon, LLC (d/b/a Securus Payments), (“Securus”), and eVance Processing Inc. (“eVance”). On February 17, 2014 the Company entered into a Securities Exchange Agreement (the “SEA”) with Securus, Mychol Robirds and Steven Lemma, to purchase 90% of the membership interests of Securus and its subsidiary Securus Consultants, LLC. On April 21, 2014 the Company completed the acquisition of 100% of Securus pursuant to the SEA and through a Securities Exchange Agreement (“E-Cig Agreement) with E-Cig Ventures LLC. Prior to the acquisition of Securus in April of 2014, we were considered a developmental stage company as defined by FASB ASC 915-205-45-6. With the acquisition of Securus, we ceased to be a development stage company. On November 30, 2015, eVance entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Calpian, Inc. (“Calpian”), Calpian Residual Acquisition, LLC (“CRA”) and Calpian Commerce, Inc., a wholly owned subsidiary of Calpian (“CCI,” and collectively with Calpian and CRA, the “Sellers”). Pursuant to the Purchase Agreement, eVance acquired substantially all of the U.S. assets and operations of the Sellers. In consideration for the acquired assets, eVance assumed certain of the Sellers’ liabilities, including an aggregate of $9,000,000 of notes payable and certain of the Sellers’ outstanding contractual obligations. On April 12, 2016, eVance entered into an agreement with the Sellers and a cancellation of securities acknowledgement with one of eVance’s note-holders whereby the noteholder cancelled their note in the amount of $720,084 and Calpian issued eVance a note in the amount of $675,000 in exchange for eVance and the Sellers mutually waiving any claims either party has or could have under the Purchase Agreement against one another. The $675,000 note bears simple interest of 12% per annum payable monthly and matures on November 30, 2017. As part of the Purchase Agreement, eVance acquired several residual portfolios including the supporting contracts (residual purchase agreements). eVance, as successor under one of these residual purchase agreements, has sued a third party for breach of contract on the residual purchase agreement between the third party and Seller and has claimed damages in excess of $1,500,000. eVance has agreed to apply any recovery from such litigation (less costs) against the principal balance of the $675,000 note up to a maximum of $675,000. The Company reflected the reduction in the assumed debt by $720,084 as a reduction in goodwill and a reduction in the debt assumed. In addition, the noteholder returned a warrant to purchase 360,042 shares of the Company’s common stock. As a result of this agreement, the $9,000,000 of notes payable was reduced to $8,279,916. On April 30, 2016, Securus entered into a Purchase and Sale Agreement (the “Purchase Agreement”) with Chyp LLC (“Chyp”). In connection with the Purchase Agreement, Chyp executed a three-year preferred marketing agreement with eVance. Chyp acquired substantially all of the operations of Securus including its sales and marketing operations located in Portland Oregon and West Palm Beach Florida. Securus retained its approximately 5,000 merchants and related merchant processing residual portfolio.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these unaudited consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the results of the interim periods. These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Reclassification Certain prior period amounts have been reclassified to conform to the current period’s presentation.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements [Abstract]
FAIR VALUE MEASUREMENTS	3. FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC Topic No. 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as described below: Level 1: Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable, either directly or indirectly. Level 2 inputs include quoted prices for similar assets, quoted prices in markets that are not considered to be active, and observable inputs other than quoted prices such as interest rates. Level 3: Level 3 inputs are unobservable inputs. The following required disclosure of the estimated fair value of financial instruments has been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The methods and assumptions used to estimate the fair values of each class of financial instruments are as follows: Cash and Cash Equivalents, Accounts Receivable, Accounts Payable, Accrued Compensation, Other Accrued Liabilities, and Income Taxes Payable. The items are generally short-term in nature, and accordingly, the carrying amounts reported on the consolidated balance sheets are reasonable approximations of their fair values. Note Receivable, Other Long Term Assets, Notes Payable, and Other Long Term Liabilities. The carrying amounts approximate the fair value as the notes bear interest rates that are consistent with current market rates.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2016
Recent Accounting Pronouncements [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	4. RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Topic 606 (“ASU 2014-09”) which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. Revenue recorded under ASU 2014-09 will depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance is effective for the Company’s fiscal year beginning January 1, 2018 and early adoption is not permitted. Management does not expect the adoption of this guidance to have a material impact on the Company’s financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU 2016-02 supersedes the previous leases standard, Leases (Topic 840). The standard is effective on January 1, 2019, with early adoption permitted. The Company is currently evaluating the potential effect of this standard on its consolidated financial statements. Accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2016
Discontinued Operations [Abstract]
DISCONTINUED OPERATIONS	5. DISCONTINUED OPERATIONS On April 30, 2016, Securus entered into the Purchase Agreement with Chyp. In connection with the Purchase Agreement, Chyp executed a three year preferred marketing agreement with eVance. Chyp acquired substantially all of the operations of Securus including its sales and marketing operations located in Portland Oregon and West Palm Beach Florida. Securus retained its approximately 5,000 merchants and related merchant processing residual portfolio. Securus also retained substantially all of its liabilities, including but not limited to, its note payable with Blue Acre Ventures (BAV), trade payables as well as liabilities to merchants. Pursuant to the Purchase Agreement, Securus will provide financial assistance to Chyp in the form of a forgivable loan to support the transition of Securus’ operations to Chyp. Securus will advance Chyp $75,000 per month for six months and $50,000 in the seventh and eighth months for a total of $550,000. Accordingly, Chyp has executed a $550,000 promissory note (the “Chyp Note”) in favor of Securus. The Chyp Note bears an interest rate of 12% per annum with both the principal and interest due on May 1, 2017. If Chyp is in material compliance with this Purchase Agreement and related agreements until May 1, 2017, Securus will forgive the Chyp Note. Securus will also reimburse Chyp for commissions payable to Chyp employees and agents on Securus’ residual portfolio as if those agents and employees were still employed by Securus. Chyp is owned by Steven Lemma and Mychol Robirds who are former executives of Securus. We accounted for the sale of the Securus operations to Chyp in accordance with ASC 205-20-45-1 and have classified the assets and operations sold to Chyp as discontinued operations. The Company recorded a loss on disposal of $840,641 related to the transaction. The charge includes a $290,641 write-off of the net assets acquired by Chyp and $550,000 for the financial assistance to be provided to Chyp during 2016. A summary of results of discontinued operations is as follows: Six Months Ended 2016 2015 Revenues $ 2,027,113 $ 5,717,322 Operating expenses (4,035,797 ) (7,112,380 ) Pre-tax loss from discontinued operations (2,008,684 ) (1,395,058 ) Loss from discontinued operations, net of tax $ (2,008,684 ) $ (1,395,058 )

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Taxes [Abstract]
INCOME TAXES	6. INCOME TAXES The Company accounts for income taxes in accordance with FASB Accounting Standards Codification Topic 740-10 which requires the Company to provide a net deferred tax asset/liability equal to the expected future tax benefit/expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carryforwards. At June 30, 2016 and June 30, 2015, the Company had available unused operating loss carryforwards of $2,680,500 and $2,376,158, respectively, which generated a deferred tax benefits of $991,785 and $879,178, respectively. The Company had a 100% valuation allowance on the deferred tax assets at June 30, 2016. The Company’s provision for income taxes for the three and six months ended June 30, 2016 and 2015 consists of the following: Six months Ended Six months Ended Income Tax Expense Continuing Operations Discontinued Operations Total Continuing Operations Discontinued Operations Total Current $ 326,852 $ (743,213 ) $ (416,361 ) $ 269,228 $ (516,171 ) $ (246,943 ) Deferred (326,852 ) 743,213 416,361 (269,228 ) 516,171 246,943 Total $ - $ - $ - $ - $ - $ - Three months Ended Three months Ended Income Tax Expense Continuing Operations Discontinued Operations Total Continuing Operations Discontinued Operations Total Current $ 246,830 $ (244,813 ) $ 2,017 $ 100,484 $ (153,570 ) $ (53,086 ) Deferred (246,830 ) 244,813 (2,017 ) (100,484 ) 153,570 53,086 Total $ - $ - $ - $ - $ - $ - The Company accounts for uncertainties in income taxes in accordance with FASB ASC Topic 740 “Accounting for Uncertainty in Income Taxes”. The Company has determined that there are no significant uncertain tax positions requiring recognition in its financial statements. In the event the Company is assessed for interest and/or penalties by taxing authorities, such assessed amounts will be classified in the financial statements as income tax expense. Tax years 2013 through 2015 remain subject to examination by Federal and state taxing authorities.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity [Abstract]
STOCKHOLDERS' EQUITY	7. STOCKHOLDERS’ EQUITY On April 21, 2014 the Company issued two shares of Series A Preferred Stock to the two previous members of Securus. As long as a former member holds at least 9,000,000 shares of the Company’s common stock, then the member has the right to exchange his share of preferred stock for a 24.5% share of the membership interests of Securus upon a change of control in Securus (as defined). In connection with the transaction with Chyp on April 30, 2016, the Company acquired the two shares of Series A Preferred Stock. On November 30, 2015, in connection with its acquisition of the U.S. assets and operations of Calpian Inc., the Company issued warrants to purchase an aggregate of 5,452,458 shares of the Company’s common stock at an exercise price of $0.05 per share, subject to adjustments. The warrants expire on November 30, 2025. We estimate the fair value of warrants and stock options when issued or vested using the Black-Scholes options pricing model and subsequent changes in fair value are not recognized. Option pricing models require the input of highly subjective assumptions. We determined, using the Black-Scholes options pricing model, that these warrants have no current value, based on a maturity date of five years, a risk-free interest rate of 2.230%, and a calculated volatility rate of 8.530%, using historical stock prices of the Company. On June 1, 2015, the Company issued 2,000,000 shares of its Common Stock to an executive in connection with the executive’s employment and the use of certain trade names and brands owned by the executive. 500,000 shares vested upon grant and an additional 500,000 shares were scheduled to vest on June 1, 2016, June 1, 2017, and June 1, 2018. The Company terminated the executive’s employment in January 2016, and the shares subject to vesting (1,500,000) were forfeited. The executive is currently disputing the forfeiture of these shares. On March 18, 2016, the Company issued 2,300,000 Shares of Series B Convertible Preferred Stock (“Series B Shares”) to each of Thomas A. Hyde Jr. and Robert L. Winspear (each a “Holder” and collectively the “Holders”) at a price of $0.05 per share pursuant to subscription agreements between the Company and the Holders. Mr. Hyde is the President, Chief Executive Officer and a Director of the Company. Mr. Winspear is the Chief Financial Officer of the Company. In connection with the issuance of the Series B Shares, the Company and the Holders executed a Stockholders Agreement (the “Agreement”) whereby the Holders agreed to not to initiate directly or indirectly any stockholder vote or action, by written consent or otherwise, to increase the size or structure of the Company’s board of directors or remove any existing director, nor initiate directly or indirectly any stockholder vote or action by written consent or otherwise, to affect Holders’ executive compensation, bonus criteria and amounts, or other similar action. The Holders also agreed to convert the Series B Shares immediately upon termination, whether voluntary or involuntary, or upon their resignation for any reason.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2016
Acquisitions [Abstract]
ACQUISITIONS	8. ACQUISITIONS Pro Forma Financial Information The information that follows provides supplemental information about pro forma revenues and net income (loss) attributable to the Company as if the acquisition of Calpian’s US assets had been consummated as of January 1, 2015. Such information is unaudited and is based on estimates and assumptions which the Company believes are reasonable. These results are not necessarily indicative of the consolidated statements of operations in future periods or the results that would have actually been realized had the Company and Calpian been a combined entity during 2015. Selected Pro Forma Financial Information Excel Calpian US Operations Pro Forma Revenues $ 2,213,934 $ 6,390,257 $ 8,604,191 Net income attributable to the Company $ (667,415 ) $ (341,819 ) $ (1,009,234 ) Net loss attributable to the Company per common share - basic and diluted $ (0.007 ) $ (0.003 ) $ (0.010 )

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2016
Property and Equipment [Abstract]
PROPERTY AND EQUIPMENT	9. PROPERTY AND EQUIPMENT Property and equipment consists of the following as of June 30, 2016 and December 31, 2015: June 30, December 31, Computer software $ 38,604 $ 35,595 Equipment 137,723 123,074 Furniture & fixtures 43,266 33,336 Leasehold improvements 3,471 3,471 Total cost 223,064 195,476 Less accumulated depreciation and amortization (53,334 ) (10,516 ) Property and equipment – net $ 169,730 $ 184,960

Leases

Leases	6 Months Ended
	Jun. 30, 2016
Leases [Abstract]
LEASES	10. LEASES The Company executed a lease for its corporate offices in Irving Texas. The lease began on November 1, 2014 and has a term of 63 months with monthly payments ranging from $0 to $6,428. eVance leases its Georgia office facilities under an operating lease expiring in November 2019. Monthly lease payments range from $0 to $9,046 throughout the term of the lease. Total rent expense for the six months ended June 30, 2016 was $167,969, compared to $202,808 for the three months ended June 30, 2015. The future minimum lease payments required under long-term operating leases as of June 30, 2016 are as follows: 2016 $ 36,504 2017 147,278 2018 162,048 2019 and after 182,960 Total $ 528,790

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2016
Contingencies [Abstract]
CONTINGENCIES	11. CONTINGENCIES Real American Capital Corporations filed a lawsuit against the Company in October 2015 claiming default under a note. The plaintiff seeks damages of $120,000 plus interest and other costs. The Company intends to defend this matter vigorously. The Company is also subject to various other claims and actions arising in the normal course of business, none of which are expected to have a material impact on the financial position or results of operations of the Company.

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2016
Notes Payable [Abstract]
NOTES PAYABLE	12. NOTES PAYABLE The following summarizes the Company’s current outstanding notes payable: June 30, December 31, Note payable to BAV, due in monthly installments of $48,333 through May 2017, including simple interest at 15%, secured by the Company’s residual portfolio $ 468,631 $ 681,361 Note payable to SME Funding LLC, due December 1,2016, bearing simple interest at 12%, secured by the Company’s residual portfolio 500,000 500,000 Notes payable due December 1, 2016, bearing interest at 12%, secured by the assets of eVance 8,029,916 8,029,916 Total 8,998,547 9,211,277 Less current portion (8,998,547 ) (8,984,544 ) Long-term portion of notes payable $ - $ 226,733 Future maturities of notes as of June 30, 2016 are as follows: 2016 8,904,931 2017 93,616 Total $ 8,998,547

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	13. RELATED PARTY TRANSACTIONS On February 15, 2016, SME Funding LLC purchased $35,000 of the Company’s monthly residuals for $700,000 cash, pursuant to a residual purchase agreement (“RPA”). Under the terms of the RPA, the Company is obliged to maintain the residual at $35,000 for a period of 20 months. In addition, the Company has the right to repurchase the residuals for $770,000 until October 17, 2017. As a result of the repurchase option, the Company accounted for the transaction as a liability and not as a sale. The $700,000 is included in other long-term liabilities on the accompanying balance sheet.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these unaudited consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the results of the interim periods. These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.
Reclassification	Reclassification Certain prior period amounts have been reclassified to conform to the current period’s presentation.

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2016
Discontinued Operations [Abstract]
Schedule of discontinued operations	Six Months Ended 2016 2015 Revenues $ 2,027,113 $ 5,717,322 Operating expenses (4,035,797 ) (7,112,380 ) Pre-tax loss from discontinued operations (2,008,684 ) (1,395,058 ) Loss from discontinued operations, net of tax $ (2,008,684 ) $ (1,395,058 )

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2016
Income Taxes [Abstract]
Schedule of provision for income taxes	Six months Ended Six months Ended Income Tax Expense Continuing Operations Discontinued Operations Total Continuing Operations Discontinued Operations Total Current $ 326,852 $ (743,213 ) $ (416,361 ) $ 269,228 $ (516,171 ) $ (246,943 ) Deferred (326,852 ) 743,213 416,361 (269,228 ) 516,171 246,943 Total $ - $ - $ - $ - $ - $ - Three months Ended Three months Ended Income Tax Expense Continuing Operations Discontinued Operations Total Continuing Operations Discontinued Operations Total Current $ 246,830 $ (244,813 ) $ 2,017 $ 100,484 $ (153,570 ) $ (53,086 ) Deferred (246,830 ) 244,813 (2,017 ) (100,484 ) 153,570 53,086 Total $ - $ - $ - $ - $ - $ -

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2016
Acquisitions [Abstract]
Schedule of selected proforma financial information	Selected Pro Forma Financial Information Excel Calpian US Operations Pro Forma Revenues $ 2,213,934 $ 6,390,257 $ 8,604,191 Net income attributable to the Company $ (667,415 ) $ (341,819 ) $ (1,009,234 ) Net loss attributable to the Company per common share - basic and diluted $ (0.007 ) $ (0.003 ) $ (0.010 )

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2016
Property and Equipment [Abstract]
Schedule of property and equipment	June 30, December 31, Computer software $ 38,604 $ 35,595 Equipment 137,723 123,074 Furniture & fixtures 43,266 33,336 Leasehold improvements 3,471 3,471 Total cost 223,064 195,476 Less accumulated depreciation and amortization (53,334 ) (10,516 ) Property and equipment – net $ 169,730 $ 184,960

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2016
Leases [Abstract]
Schedule of future minimum lease payments	2016 $ 36,504 2017 147,278 2018 162,048 2019 and after 182,960 Total $ 528,790

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2016
Notes Payable [Abstract]
Schedule of notes payable	June 30, December 31, Note payable to BAV, due in monthly installments of $48,333 through May 2017, including simple interest at 15%, secured by the Company’s residual portfolio $ 468,631 $ 681,361 Note payable to SME Funding LLC, due December 1,2016, bearing simple interest at 12%, secured by the Company’s residual portfolio 500,000 500,000 Notes payable due December 1, 2016, bearing interest at 12%, secured by the assets of eVance 8,029,916 8,029,916 Total 8,998,547 9,211,277 Less current portion (8,998,547 ) (8,984,544 ) Long-term portion of notes payable $ - $ 226,733
Schedule of future maturities	2016 8,904,931 2017 93,616 Total $ 8,998,547

Organization and Operations (De

Organization and Operations (Details)	Apr. 12, 2016USD ($)	Jun. 30, 2016USD ($)SubsidiaryMerchants	Nov. 30, 2015USD ($)	Feb. 17, 2015	Apr. 21, 2014
Organization and Operations (Textual)
Number of wholly owned subsidiaries | Subsidiary		3
Membership interest percentage				90.00%	100.00%
Notes payable			$ 9,000,000
Number of merchants | Merchants		5,000
Bearer simple interest rate	12.00%
Litigation amount	$ 675,000
eVance Processing Inc [Member]
Organization and Operations (Textual)
Notes payable	675,000	$ 8,279,916
Cancellation of securities, value	720,084
Damages claim amount	1,500,000
Warrant purchase to common stock	$ 360,042
Bearer simple interest rate	12.00%
Litigation amount	$ 675,000
Maturity date for re-purchase	Nov. 30, 2017

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Discontinued Operations [Abstract]
Revenues	$ 2,027,113	$ 5,717,322
Operating expenses	(4,035,797)	(7,112,380)
Pre-tax loss from discontinued operations	(2,008,684)	(1,395,058)
Loss from discontinued operations, net of tax	$ (2,008,684)	$ (1,395,058)

Discontinued Operations (Deta28

Discontinued Operations (Details Textual)	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)Merchants	Jun. 30, 2015USD ($)	Apr. 12, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of merchants | Merchants			5,000
Percentage of interest rate					12.00%
Loss of disposal of operations			$ 840,641
Charges of discontinued operations			$ 550,000
Chyp LlC [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Description of discontinued operations			Pursuant to the Purchase Agreement, Securus will provide financial assistance to Chyp in the form of a forgivable loan to support the transition of Securus' operations to Chyp. Securus will advance Chyp $75,000 per month for six months and $50,000 in the seventh and eighth months for a total of $550,000. Accordingly, Chyp has executed a $550,000 promissory note (the "Chyp Note") in favor of Securus.
Percentage of interest rate	12.00%		12.00%
Charges of discontinued operations			$ 290,641

Income Taxes (Details )

Income Taxes (Details ) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Expense
Current	$ 246,830	$ 100,484	$ 326,852	$ 269,228
Deferred	(246,830)	(100,484)	(326,852)	(269,228)
Total
Continuing Operations [Member]
Income Tax Expense
Current	246,830	100,484	326,852	269,228
Deferred	(246,830)	(100,484)	(326,852)	(269,228)
Total
Discontinued Operations [Member]
Income Tax Expense
Current	(244,813)	(153,570)	(743,213)	(516,171)
Deferred	244,813	153,570	743,213	516,171
Total

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Income Taxes (Textual)
Rate of valuation allowance on the deferred tax benefit	100.00%
Operating loss carryforwards	$ 2,680,500	$ 2,376,158
Deferred tax benefits	$ 991,785	$ 879,178

Stockholders' Equity (Details)

Stockholders' Equity (Details) - $ / shares	Jun. 01, 2015	Nov. 30, 2015	Jun. 30, 2016	Mar. 18, 2016
Stockholders' Equity (Textual)
Common stock share issued description			Company issued two shares of Series A Preferred Stock to the two previous members of Securus.
Preferred stock exchange description			As long as a former member holds at least 9,000,000 shares of the Company's common stock, then the member has the right to exchange his share of preferred stock for a 24.5% share of the membership interests of Securus upon a change of control in Securus (as defined).
Fair value of maturity date			5 years
Fair value of risk-free interest rate			2.23%
Fair value of volatility rate			8.53%
Shares issued price per share			$ 0.05
Thomas A. Hyde, Jr. [Member]
Stockholders' Equity (Textual)
Issued shares of Series B Convertible preferred stock				2,300,000
Shares issued price per share				$ 0.05
Preferred stock voting rights			Each Series B Share entitles the Holder thereof to 20 votes per share on all matters subject to voting by holders of the Company's Common Stock. The issuance of a total of 4,600,000 shares of Series B Shares, entitles the Holders thereof to vote a combined 92,000,000 shares.
Stock splits description			The Series B Shares are convertible into shares of the Company's common stock par value $0.0001 (''Common Stock'') on a ratio of 1-to-1, subject to adjustment for stock splits and stock dividends.
Number of options granted	2,000,000
Number of options vested	500,000
Number of options forfeited	1,500,000
Thomas A. Hyde, Jr. [Member] | June 1, 2016 [Member]
Stockholders' Equity (Textual)
Number of options vested	500,000
Thomas A. Hyde, Jr. [Member] | June 1, 2017 [Member]
Stockholders' Equity (Textual)
Number of options vested	500,000
Thomas A. Hyde, Jr. [Member] | June 1, 2018 [Member]
Stockholders' Equity (Textual)
Number of options vested	500,000
Chief Financial Officer [Member]
Stockholders' Equity (Textual)
Shares issued price per share				$ 0.05
Calpian Inc
Stockholders' Equity (Textual)
Exercise price		$ 0.05
Common stock shares issued		5,452,458
Warrants expire date		Nov. 30, 2025

Acquisitions (Details)

Acquisitions (Details)	6 Months Ended
	Jun. 30, 2015USD ($)$ / shares
Pro Forma [Member]
Business Acquisition [Line Items]
Revenues	$ 8,604,191
Net income attributable to the Company	$ (1,009,234)
Net loss attributable to the Company per common share - basic and diluted | $ / shares	$ (0.010)
Excel [Member]
Business Acquisition [Line Items]
Revenues	$ 2,213,934
Net income attributable to the Company	$ (667,415)
Net loss attributable to the Company per common share - basic and diluted | $ / shares	$ (0.007)
Calpian US Operations [Member]
Business Acquisition [Line Items]
Revenues	$ 6,390,257
Net income attributable to the Company	$ (341,819)
Net loss attributable to the Company per common share - basic and diluted | $ / shares	$ (0.003)

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total cost	$ 223,064	$ 195,476
Less accumulated depreciation and amortization	(53,334)	(10,516)
Property and equipment - net	169,730	184,960
Computer software [Member]
Property, Plant and Equipment [Line Items]
Total cost	38,604	35,595
Equipment [Member]
Property, Plant and Equipment [Line Items]
Total cost	137,723	123,074
Furniture & fixtures [Member]
Property, Plant and Equipment [Line Items]
Total cost	43,266	33,336
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Total cost	$ 3,471	$ 3,471

Leases (Details)

Leases (Details)	Jun. 30, 2016USD ($)
Future Minimum Lease Payments
2,016	$ 36,504
2,017	147,278
2,018	162,048
2019 and after	182,960
Total	$ 528,790

Leases (Details Textual)

Leases (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating Loss Carryforwards [Line Items]
Rent expense	$ 167,969	$ 202,808
Operating lease term	63 months
Irving Texas [Member]
Operating Loss Carryforwards [Line Items]
Operating lease expiration date	Nov. 1, 2014
Irving Texas [Member] | Maximum [Member]
Operating Loss Carryforwards [Line Items]
Monthly lease payments	$ 6,428
Irving Texas [Member] | Minimum [Member]
Operating Loss Carryforwards [Line Items]
Monthly lease payments	$ 0
Georgia [Member]
Operating Loss Carryforwards [Line Items]
Operating lease expiration date	Nov. 30, 2019
Georgia [Member] | Maximum [Member]
Operating Loss Carryforwards [Line Items]
Monthly lease payments	$ 9,046
Georgia [Member] | Minimum [Member]
Operating Loss Carryforwards [Line Items]
Monthly lease payments	$ 0

Contingencies (Details)

Contingencies (Details)	1 Months Ended
	Oct. 31, 2015USD ($)
Contingencies (Textual)
Seeking damages	$ 120,000

Notes Payable (Details)

Notes Payable (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Notes payable	$ 8,998,547	$ 9,211,277
Less current portion	(8,998,547)	(8,984,544)
Long-term portion of notes payable		226,733
Secured Debt [Member]
Debt Instrument [Line Items]
Notes payable	468,631	681,361
Secured Debt One [Member]
Debt Instrument [Line Items]
Notes payable	500,000	500,000
Secured Debt Two [Member]
Debt Instrument [Line Items]
Notes payable	$ 8,029,916	$ 8,029,916

Notes Payable (Details 1)

Notes Payable (Details 1)	Jun. 30, 2016USD ($)
Future maturities of notes
2,016	$ 8,904,931
2,017	93,616
Total	$ 8,998,547

Notes Payable (Details Textual)

Notes Payable (Details Textual)	6 Months Ended
	Jun. 30, 2016USD ($)
Secured Debt [Member]
Notes Payable (Textual)
Monthly installments	$ 48,333
Interest Rate	15.00%
Maturity date for re-purchase	May 31, 2017
Secured Debt One [Member]
Notes Payable (Textual)
Interest Rate	12.00%
Maturity date for re-purchase	Dec. 1, 2016
Secured Debt Two [Member]
Notes Payable (Textual)
Interest Rate	12.00%
Maturity date for re-purchase	Dec. 1, 2016

Related Party Transactions (Det

Related Party Transactions (Details) - SME Funding LLC [Member] - Residual Purchase Agreement [Member]	1 Months Ended
	Feb. 15, 2016USD ($)
Related Party Transactions (Textual)
Sale of residual portfolio to SME Funding LLC	$ 35,000
Cash from sale of residual portfolio	$ 700,000
Residual purchase agreement, Description	Under the terms of the RPA, the Company is obliged to maintain the residual at $35,000 for a period of 20 months.
Right to repurchase the residuals	$ 770,000
Other long term liabilities	$ 700,000