Excel (EXCC) 10-Q 15 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 15, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Excel Corp
Entity Central Index Key	1,512,890
Trading Symbol	EXCC
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		97,860,336

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 1,257,170	$ 1,586,207
Accounts receivable	1,095,963	1,220,759
Note receivable	675,000	675,000
Prepaid expenses	49,313	105,995
Other current assets	89,050	89,050
Total current assets	3,166,496	3,677,011
Other Assets
Fixed assets, net of depreciation	192,039	170,442
Goodwill	7,914,269	7,914,269
Equity investment	175,790	171,469
Residual portfolios	2,056,749	2,147,488
Other long term assets	679,434	631,271
Total other assets	11,018,281	11,034,939
Total assets	14,184,777	14,711,950
Current Liabilities
Accounts payable	657,770	577,220
Accrued compensation	1,142,632	1,054,532
Other accrued liabilities	531,807	551,447
Notes payable - current portion, net of deferred financing costs	12,845,667	12,809,252
Accrued costs of disposal of discontinued operations		50,000
Total current liabilities	15,177,876	15,042,451
Long-term liabilities
Other long term liabilities	39,508	41,705
Total long-term liabilities	39,508	41,705
Commitments and contingencies
STOCKHOLDERS' DEFICIT
Preferred stock, value
Common stock, $.0001 par value, 200,000,000 shares authorized 97,860,336 and 97,759,070 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively	9,786	9,776
Additional paid-in capital	4,824,339	4,814,348
Accumulated deficit	(5,867,192)	(5,196,790)
Total stockholders' deficit	(1,032,607)	(372,206)
Total Liabilities and Stockholders' Deficit	14,184,777	14,711,950
Series B preferred stock
STOCKHOLDERS' DEFICIT
Preferred stock, value	$ 460	$ 460

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
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	97,860,336	97,759,070
Common stock, shares outstanding	97,860,336	97,759,070
Series B preferred stock
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares issued	4,600,000	4,600,000
Preferred stock, shares outstanding	4,600,000	4,600,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues
Transaction and processing fees	$ 3,921,458	$ 3,965,853
Merchant cash advance revenue and other	92,590	53,805
Total revenues	4,014,048	4,019,658
Costs and expenses
Processing and servicing costs	1,967,141	1,626,254
Salaries and wages	971,810	976,272
Outside commissions	595,411	523,716
Other selling general and administrative expenses	465,101	348,524
Total costs and expenses	3,999,463	3,474,766
Income from operations	14,585	544,892
Interest expense, net	684,987	328,616
Net income (loss) from continuing operations before income taxes	(670,402)	216,276
Income tax expense (benefit)
Current	(248,048)	80,022
Deferred	248,048	(80,022)
Income tax expense
Loss from discontinued operations, net of tax		(1,347,029)
Loss on disposal of operations		(840,641)
Net income (loss) from continuing operations	(670,402)	216,276
Net loss	$ (670,402)	$ (1,971,394)
Basic earnings per share
Income (loss) from continuing operations	$ (0.007)	$ 0.002
Loss from discontinued operations, net of tax		(0.022)
Net loss	(0.007)	(0.02)
Diluted earnings per share
Income (loss) from continuing operations	(0.007)	0.002
Loss from discontinued operations, net of tax		(0.022)
Net loss	$ (0.007)	$ (0.02)
Weighted Average Shares Outstanding
Basic	97,760,195	97,055,773
Diluted	97,760,195	97,662,366

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities:
Net loss	$ (670,402)	$ (1,971,394)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	201,970	136,118
Paid in kind interest	170,868
Stock based compensation	10,001	67,787
Income in investment accounted for under the equity method	(4,321)	(40,000)
Loss on disposal of operations		840,641
Decrease (increase)
Accounts receivable	124,796	185,539
Prepaid expenses	56,682	19,918
Other current assets		(96,035)
Other long term assets	(48,163)	89,642
Increase (decrease)
Accounts payable	80,550	(606,909)
Accrued compensation	88,100	224,376
Other accrued liabilities	(19,640)	219,626
Other long-term liabilities	(2,197)	697,575
Net cash used in operating activities	(11,756)	(233,116)
Cash flows from investing activities:
Purchase of property and equipment	(42,658)	(5,504)
Payments from disposal of operations	(50,000)
Net cash used in investing activities	(92,658)	(5,504)
Cash flows from financing activities:
Deferred financing costs	(224,623)
Issuance of preferred stock		230,000
Note and debt payments		(102,950)
Net cash provided by (used in) financing activities	(224,623)	127,050
Net decrease in cash	(329,037)	(111,570)
Cash - Beginning	1,586,207	362,130
Cash - Ending	1,257,170	250,560
Supplemental disclosure of cash flow information
Cash paid for interest	$ 444,258	$ 328,616

Organization and Operations

Organization and Operations	3 Months Ended
	Mar. 31, 2017
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”). We sell integrated financial and transaction processing services to businesses throughout the United States. We provide these services through our wholly-owned subsidiaries, eVance and Securus. Through our eVance subsidiary, we provide an integrated suite of third-party merchant payment processing services and related proprietary software enabling products that deliver credit and debit card-based internet payments processing solutions primarily to small and mid-sized merchants operating in physical “brick and mortar” business environments, on the internet and in retail settings requiring both wired and wireless mobile payment solutions. We operate as an independent sales organization (“ISO”) generating individual merchant processing contracts in exchange for future residual payments. As a wholesale ISO, eVance has a direct contractual relationship with the merchants and takes greater responsibility in the approval and monitoring of merchants than do retail ISOs and we receive additional consideration for this service and risk. Securus operates as a retail ISO and receives residual income as commission for merchants it places with third party processors. 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 its 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 the other. 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 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 “2016 Purchase Agreement”) with Chyp LLC (“Chyp”). In connection with the 2016 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 the approximately 5,000 merchants and related merchant processing residual portfolios.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
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, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2017. 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, 2016. Principles of Consolidation The consolidated financial statements include the accounts of Excel Corporation and subsidiaries in which the Company has a controlling financial interest. All intercompany transactions and account balances between Excel Corporation and its subsidiaries have been eliminated in consolidation. Transactions with its consolidated subsidiaries are generally settled in cash. Investments in unconsolidated affiliated entities are accounted for under the equity method and are included in “Equity investment” in the accompanying consolidated balance sheets. Reclassification Certain prior period amounts have been reclassified to conform to the current period’s presentation. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the evaluation of deferred tax assets, purchase accounting, allowances, and equity investments.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2017
Recent Accounting Pronouncements [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	3. 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. The Company is currently evaluating the potential effect of this standard on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. ASU 2015-17 eliminates the requirement to bifurcate deferred taxes between current and noncurrent on the balance sheet and requires that deferred tax assets and liabilities be classified as noncurrent on the balance sheet. The guidance in the ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company had a 100% valuation allowance on the deferred tax assets at March 31, 2017, as such this standard does not impact the financial position at March 31, 2017. In February 2016, the FASB 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. On August 26, 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments (Topic 230) ● Debt prepayment or debt extinguishment costs. ● Settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing. ● Contingent consideration payments made after a business combination. ● Proceeds from the settlement of insurance claims. ● Proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies. ● Distributions received from equity method investees. ● Beneficial interests in securitization transactions. ● Separately identifiable cash flows and application of the predominance principle. The guidance in the ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company has evaluated the potential effect of this standard on its consolidated financial statements and determined this standard does not impact the financial position at March 31, 2017. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) (“ASU 2017-04”), which currently requires an entity that has not elected the private company alternative for goodwill to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. To address concerns over the cost and complexity of the two-step goodwill impairment test, the amendments in this Update remove the second step of the test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. The guidance in the ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, early adoption is 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	3 Months Ended
	Mar. 31, 2017
Discontinued Operations [Abstract]
DISCONTINUED OPERATIONS	4. DISCONTINUED OPERATIONS On April 30, 2016, Securus entered into the 2016 Purchase Agreement with Chyp. In connection with the 2016 Purchase Agreement, Chyp executed a three-year preferred marketing agreement with eVance. Pursuant to the 2016 Purchase Agreement, 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 2016 Purchase Agreement, Securus provided financial assistance to Chyp in the form of a forgivable loan to support the transition of Securus’ operations to Chyp. Securus advanced Chyp $500,000 during 2016 and $50,000 in January 2017 for a total of $550,000. Accordingly, Chyp 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. The Company does not believe that Chyp was in material compliance with the 2016 Purchase Agreement and has not cancelled the Chyp Note. The Company and Chyp are in discussions concerning a resolution of the matter. 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. In 2016, 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. A summary of results of discontinued operations is as follows: Three Months Ended March 31, 2016 Revenues $ 1,683,135 Operating expenses (3,030,164 ) Pre-tax loss from discontinued operations (1,347,029 ) Loss from discontinued operations, net of tax $ (1,347,029 )

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2017
Property and Equipment [Abstract]
PROPERTY AND EQUIPMENT	5. PROPERTY AND EQUIPMENT Property and equipment consists of the following as of March 31, 2017 and December 31, 2016: March 31, December 31, Computer software $ 63,692 $ 38,607 Equipment 181,202 163,394 Furniture & fixtures 38,682 38,882 Leasehold improvements 16,503 16,538 Total cost 300,079 257,421 Less accumulated depreciation (108,040 ) (86,979 ) Property and equipment – net $ 192,039 $ 170,442

Leases

Leases	3 Months Ended
	Mar. 31, 2017
Leases [Abstract]
LEASES	6. 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 $8,278 to $9,046 throughout the term of the lease. Total rent expense for the period ended March 31, 2017 was $50,648, compared to $132,623 for the period ended March 31, 2016. The future minimum lease payments required under long-term operating leases as of March 31, 2017 are as follows: 2017 $ 131,775 2018 179,489 2019 174,946 2020 6,430 2021 and after - Total $ 492,640

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2017
Notes Payable [Abstract]
NOTES PAYABLE	7. NOTES PAYABLE The following summarizes the Company’s outstanding notes payable: March 31, 2017 December 31, 2016 Term Loan due November 2019, bearing interest at 18%, secured by substantially all of the assets of the Company 12,845,667 12,809,252 Less current portion (12,845,667 ) (12,809,252 ) Long-term portion of notes payable $ - $ - On November 2, 2016, the Company and certain of the Company’s subsidiaries entered into a Loan and Security Agreement (the “Loan Agreement”) with GACP Finance Co. LLC as administrative agent (“Agent”) and the other lenders as from time to time party thereto. The Loan Agreement has a three-year term and provides for term loan commitments of up to $25,000,000 consisting of an Initial Term Loan in the amount of $13,500,000 and a Delayed Draw Term Loan in the amount of $11,500,000 (each a “Loan” or together “Loans”). The Company used the proceeds from the Initial Term Loan to repay all of its existing secured debt. Before the default described below, the Loan accrued interest of 18% per annum of which 13% was payable in cash monthly and 5% is payable in kind (PIK). The cash interest has been increased from 13% to 16%. Pursuant to the Loan Agreement, the Loan is secured by substantially all of the assets of the Company including but not limited to the Company’s residual portfolios. In addition, certain of Excel’s subsidiaries are guarantors under the Loan Agreement. The Company incurred financing costs in the amount of $1,075,369 in connection with the Loan Agreement. These costs are shown as a reduction of the loan amount on the accompanying consolidated balance sheet as of March 31, 2017, and are being amortized as interest expense over the term of the Loan. In addition, the interest that is payable in kind is added to the Loan balance. The following chart summarizes the amount outstanding under the Loan. March 31, Term Loan $ 13,500,000 Net deferred financing costs (937,935 ) Accrued interest payable in kind 283,602 Note payable $ 12,845,667 The Loan Agreement contains customary events of default, non-payment of principal or other amounts under the Loan Agreement, breach of covenants and certain voluntary and involuntary bankruptcy events. The Loan Agreement also contains certain financial covenants including maintenance of certain EBITDA levels and minimum liquidity. If any event of default occurs and is continuing, the Lender may declare all amounts owed to be due (except for a bankruptcy event of default), in which case such amounts will automatically become due and payable. On May 5, 2017, the Company received written notice that it was in default under the Loan Agreement for a breach of covenants. As a result of the default, the Lender increased the cash interest payable on the loan from 13% per annum to 16% per annum (the “Default Rate”). In addition, as of April 30, 2017, the principal due under the Loan Agreement was $13,783,602. The April 30, 2017 loan balance was in excess of the borrowing base as calculated under the Loan Agreement and the Company made a principal payment on May 8, 2017 of $512,583 to reduce the loan balance to be within the borrowing base. The Lender has also terminated its commitment to lend funds or extend credit to the Company. As such, the note is classified as current on the accompanying consolidated balance sheets in accordance with ASC 470-10-45. In accordance with ASU 205-40, the classification of the debt as current raises substantial doubt about the Company’s ability to continue as a going concern. Management has evaluated its financial position and future planned operating results with respect to the breach of covenants and determined that it is not probable that the Lender will declare all amounts due and payable and that in the improbable case that if the Lender declares all amounts under the Loan Agreement due and payable that the Company would be able to satisfy the obligations. The Company is discussing a resolution of the default with the Lender and believes that it will be able to do so. The Company is currently able to meet its debt service requirements and operating expenses out of its cash flows from operations and expects to be able to do so for at least the next twelve months. The Company’s strategy includes acquisitions of residual portfolios and the execution of any such portfolio would likely be accretive to earnings and improve the Company’s cash flow and debt service capabilities. In the event that the Lender accelerates all amounts due or requested that the Company reduce the outstanding debt, management currently believes that it would be able to satisfy such obligations by selling a portion of its residual portfolio of monthly recurring revenue without disrupting its operations. Management also believes that if required, the debt outstanding under the Loan Agreement could be refinanced with another lender. There can be no assurance that the Company will be able to resolve the matter with the Lender or execute on its contingency plans in the event it is unable to resolve the matter with the Lender.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Taxes [Abstract]
INCOME TAXES	8. 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 March 31, 2017 and December 31, 2016, the Company had available unused operating loss carryforwards of $4,772,677 and $4,194,335, respectively, which generated a deferred tax benefits of $1,765,890 and $1,551,904, respectively. The Company had a 100% valuation allowance on the deferred tax assets at March 31, 2017. The net operating loss carryforwards will begin to expire in 2036. After analyzing our forecasted tax position at March 31, 2017, we currently expect to utilize all of our net operating loss carryforwards prior to their expiration dates. 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 2014 through 2016 remain subject to examination by Federal and state taxing authorities.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity [Abstract]
STOCKHOLDERS' EQUITY	9. STOCKHOLDERS’ EQUITY 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. 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. The Series B Shares rank senior to the Common Stock and other preferred shares and carry a liquidation preference of $.05 per share. Holders of the Series B Shares are entitled to receive dividends declared on the Company’s Common Stock on an as converted basis. 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 a combined 92,000,000 votes. Under the terms of the Series B Shares, the Company has the right to require a Holder to convert the Series B Shares into Common Stock at any time after the Holder resigns, is terminated or otherwise ceases to be an officer of the Company. In addition, the Company has the right at any time after July 18, 2016 to repurchase and retire all but not less than all of the Series B Preferred Stock for $0.05 per share provided that it gives notice to the Holder of the Company’s intent to redeem the shares and the Holder does not elect to convert the Series B Shares into Common Stock in lieu of the redemption. 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 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. The table below lists outstanding warrants as of March 31, 2017: Shares Exercise Price Warrants Warrants issued November 30, 2015 5,452,458 $ 0.05 November 30, 2025 Warrants issued April 12, 2016 500,000 $ 0.06 October 12, 2017 Warrants outstanding March 31 5,952,458 — The Company has no stock options outstanding as of March 31, 2017.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
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, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2017. 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, 2016.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Excel Corporation and subsidiaries in which the Company has a controlling financial interest. All intercompany transactions and account balances between Excel Corporation and its subsidiaries have been eliminated in consolidation. Transactions with its consolidated subsidiaries are generally settled in cash. Investments in unconsolidated affiliated entities are accounted for under the equity method and are included in “Equity investment” in the accompanying consolidated balance sheets.
Reclassification	Reclassification Certain prior period amounts have been reclassified to conform to the current period’s presentation.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the evaluation of deferred tax assets, purchase accounting, allowances, and equity investments.

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	Mar. 31, 2017
Discontinued Operations [Abstract]
Schedule of discontinued operations	Three Months Ended March 31, 2016 Revenues $ 1,683,135 Operating expenses (3,030,164 ) Pre-tax loss from discontinued operations (1,347,029 ) Loss from discontinued operations, net of tax $ (1,347,029 )

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2017
Property and Equipment [Abstract]
Schedule of property and equipment	March 31, December 31, Computer software $ 63,692 $ 38,607 Equipment 181,202 163,394 Furniture & fixtures 38,682 38,882 Leasehold improvements 16,503 16,538 Total cost 300,079 257,421 Less accumulated depreciation (108,040 ) (86,979 ) Property and equipment – net $ 192,039 $ 170,442

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2017
Leases [Abstract]
Schedule of future minimum lease payments	2017 $ 131,775 2018 179,489 2019 174,946 2020 6,430 2021 and after - Total $ 492,640

Notes Payable (Tables)

Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Payable [Abstract]
Schedule of outstanding notes payable	March 31, 2017 December 31, 2016 Term Loan due November 2019, bearing interest at 18%, secured by substantially all of the assets of the Company 12,845,667 12,809,252 Less current portion (12,845,667 ) (12,809,252 ) Long-term portion of notes payable $ - $ -
Schedule of amount outstanding under the Loan	March 31, Term Loan $ 13,500,000 Net deferred financing costs (937,935 ) Accrued interest payable in kind 283,602 Note payable $ 12,845,667

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity [Abstract]
Schedule of outstanding warrants	Shares Exercise Price Warrants Warrants issued November 30, 2015 5,452,458 $ 0.05 November 30, 2025 Warrants issued April 12, 2016 500,000 $ 0.06 October 12, 2017 Warrants outstanding March 31 5,952,458 —

Organization and Operations (De

Organization and Operations (Details)	Apr. 30, 2016Merchants	Apr. 12, 2016USD ($)shares	Mar. 31, 2017Subsidiary	Nov. 30, 2015USD ($)
Organization and Operations (Textual)
Notes payable				$ 9,000,000
Number of wholly owned subsidiaries | Subsidiary			3
eVance Processing Inc. [Member]
Organization and Operations (Textual)
Cancelled noteholder amount		$ 720,084
Notes payable		675,000
Litigation cost		$ 675,000
Bears simple interest rate		12.00%
Damages claim amount		$ 1,500,000
Principal amount		$ 675,000
Warrant purchase to common stock | shares		360,042
Notes payable reduced		$ 8,279,916
Chyp [Member]
Organization and Operations (Textual)
Bears simple interest rate			12.00%
Number of merchants | Merchants	5,000
Description of purchase and sale agreement	Securus entered into a Purchase and Sale Agreement (the "2016 Purchase Agreement") with Chyp LLC ("Chyp"). In connection with the 2016 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 the approximately 5,000 merchants and related merchant processing residual portfolios.
Promissory note due	Nov. 30, 2017

Recent Accounting Pronounceme22

Recent Accounting Pronouncements (Details)	3 Months Ended
	Mar. 31, 2017
Recent Accounting Pronouncements (Textual)
Percentage of valuation allowance on deferred tax benefit	100.00%

Discontinued Operations (Detail

Discontinued Operations (Details)	3 Months Ended
	Mar. 31, 2017USD ($)
Discontinued Operations [Abstract]
Revenues	$ 1,683,135
Operating expenses	(3,030,164)
Pre-tax loss from discontinued operations	(1,347,029)
Loss from discontinued operations, net of tax	$ (1,347,029)

Discontinued Operations (Deta24

Discontinued Operations (Details Textual) - Chyp [Member]	Apr. 30, 2016USD ($)Merchants
Discontinued Operations (Textual)
Description of discontinued operations	Pursuant to the 2016 Purchase Agreement, Securus provided financial assistance to Chyp in the form of a forgivable loan to support the transition of Securus' operations to Chyp. Securus advanced Chyp $500,000 during 2016 and $50,000 in January 2017 for a total of $550,000. Accordingly, Chyp executed a $550,000 promissory note (the "Chyp Note") in favor of Securus.
Percentage of interest rate	12.00%
Promissory note due	May 1, 2017
Loss on disposal of operations	$ 840,641
Charge on discontinued operations	290,641
Financial assistance	$ 550,000
Preferred marketing agreement term	3 years
Number of merchants | Merchants	5,000

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Total cost	$ 300,079	$ 257,421
Less accumulated depreciation	(108,040)	(86,979)
Property and equipment - net	192,039	170,442
Computer software [Member]
Property, Plant and Equipment [Line Items]
Total cost	63,692	38,607
Equipment [Member]
Property, Plant and Equipment [Line Items]
Total cost	181,202	163,394
Furniture & fixtures [Member]
Property, Plant and Equipment [Line Items]
Total cost	38,682	38,882
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Total cost	$ 16,503	$ 16,538

Leases (Details)

Leases (Details)	Mar. 31, 2017USD ($)
Future Minimum Lease Payments
2,017	$ 131,775
2,018	179,489
2,019	174,946
2,020	6,430
2021 and after
Total	$ 492,640

Leases (Details Textual)

Leases (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Leases (Textual)
Rent expense	$ 50,648	$ 132,623
Operating lease term	63 months
Irving Texas [Member]
Leases (Textual)
Operating lease expiration date	Nov. 1, 2014
Irving Texas [Member] | Maximum [Member]
Leases (Textual)
Monthly lease payments	$ 6,428
Irving Texas [Member] | Minimum [Member]
Leases (Textual)
Monthly lease payments	$ 0
Georgia [Member]
Leases (Textual)
Operating lease expiration date	Nov. 30, 2019
Georgia [Member] | Maximum [Member]
Leases (Textual)
Monthly lease payments	$ 9,046
Georgia [Member] | Minimum [Member]
Leases (Textual)
Monthly lease payments	$ 8,278

Notes Payable (Details)

Notes Payable (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Term Loan due November 2019, bearing interest at 18%, secured by substantially all of the assets of the Company	$ 12,845,667	$ 12,809,252
Less current portion	(12,845,667)	(12,809,252)
Long-term portion of notes payable

Notes Payable (Details 1)

Notes Payable (Details 1) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Notes Payable [Abstract]
Term Loan	$ 13,500,000
Net deferred financing costs	(937,935)
Accrued interest payable in kind	283,602
Note payable	$ (12,845,667)	$ (12,809,252)

Notes Payable (Details Textual)

Notes Payable (Details Textual) - USD ($)	Nov. 02, 2016	Apr. 30, 2017	Mar. 31, 2017	May 05, 2017
Notes Payable (Textual)
Accrue interest, description			Before the default described below, the Loan accrued interest of 18% per annum of which 13% was payable in cash monthly and 5% is payable in kind (PIK). The cash interest has been increased from 13% to 16%.
Financing costs			$ 1,075,369
Loan agreement term	3 years
Subsequent Event [Member]
Notes Payable (Textual)
Loan agreement, description		The principal due under the Loan Agreement was $13,783,602. The April 30, 2017 loan balance was in excess of the borrowing base as calculated under the Loan Agreement and the Company made a principal payment on May 8, 2017 of $512,583 to reduce the loan balance within the borrowing base.
Subsequent Event [Member] | Minimum [Member]
Notes Payable (Textual)
Interest rate				13.00%
Subsequent Event [Member] | Maximum [Member]
Notes Payable (Textual)
Interest rate				16.00%
Loan Agreement [Member]
Notes Payable (Textual)
Term loan commitments	$ 25,000,000
Term Loan [Member]
Notes Payable (Textual)
Interest rate			18.00%
Term Loan due date			Nov. 30, 2019
Term Loan [Member] | Loan Agreement [Member]
Notes Payable (Textual)
Term loan commitments	11,500,000
Initial Term Loan [Member] | Loan Agreement [Member]
Notes Payable (Textual)
Term loan commitments	$ 13,500,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Income Taxes (Textual)
Net operating loss carryforwards	$ 4,772,677	$ 4,194,335
Percentage of valuation allowance on deferred tax benefit	100.00%
Deferred tax benefits	$ 1,765,890	$ 1,551,904
Net operating loss carryforwards, Expiration date	Dec. 31, 2036

Stockholders' Equity (Details)

Stockholders' Equity (Details)	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Stockholders' Equity [Abstract]
Warrants issued November 30, 2015, Shares	5,452,458
Warrants issued, Exercise Price | $ / shares	$ 0.05
Warrants issued, Warrants Expire	Nov. 30, 2025
Warrants issued April 12, 2016, Shares	500,000
Warrants issued, Exercise Price One | $ / shares	$ 0.06
Warrants issued, Warrants Expire One	Oct. 12, 2017
Warrants outstanding March 31	5,952,458

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - $ / shares	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Mar. 18, 2016
Stockholders' Equity (Textual)
Shares issued, price per share	$ 0.05	$ 0.09
Common stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares issued
Series B Shares [Member]
Stockholders' Equity (Textual)
Stock splits	1-to-1
Liquidation preference per share	$ 0.05
Preferred stock, shares issued	4,600,000	4,600,000
Holders preferred stock vote combined shares	92,000,000
Preferred stock redemption rights	In addition, the Company has the right at any time after July 18, 2016 to repurchase and retire all but not less than all of the Series B Preferred Stock for $0.05 per share provided that it gives notice to the Holder of the Company's intent to redeem the shares and the Holder does not elect to convert the Series B Shares into Common Stock in lieu of the redemption.
Series B Shares [Member] | Thomas A. Hyde Jr. [Member]
Stockholders' Equity (Textual)
Convertible preferred shares issued			2,300,000
Shares issued, price per share			$ 0.05
Preferred stock voting rights	20 votes per share
Series B Shares [Member] | Robert L. Winspear [Member]
Stockholders' Equity (Textual)
Convertible preferred shares issued			2,300,000
Shares issued, price per share			$ 0.05
Preferred stock voting rights	20 votes per share