Excel (EXCC) 10-Q 14 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 14, 2015
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, 2015
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		99,259,070

Consolidated Balance Sheet (Una

Consolidated Balance Sheet (Unaudited) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current Assets
Cash and cash equivalents	$ 156,656	$ 326,788
Accounts receivable	244,015	383,657
Prepaid expenses	20,773	46,229
Shares receivable	90,000	90,000
Inventory	2,808	7,119
Total current assets	514,252	853,793
Other Assets
Fixed assets, net of depreciation	330,284	230,632
Goodwill	4,440,355	4,440,355
Other long-term assets	63,444	68,027
Total other assets	4,834,083	4,739,014
Total assets	5,348,335	5,592,807
Current Liabilities
Accounts payable	854,228	806,981
Accrued compensation	700,810	602,683
Other accrued liabilities	824,309	426,431
Notes payable - current portion	526,258	581,674
Total current liabilities	2,905,605	2,417,769
Long-term liabilities
Notes payable - long-term portion	468,632	681,361
Other long-term liabilities	30,009	29,748
Total long-term liabilities	$ 498,641	$ 711,109
Commitments and contingencies
STOCKHOLDERS' EQUITY
Preferred stock, $.0001 par value, 10,000,000 shares authorized, none issued and outstanding; Series A preferred stock, $.001 par value 2 shares issued and outstanding as of June 30, 2015 and December 31, 2014.	$ 0	$ 0
Common stock, $.0001 par value, 200,000,000 shares authorized 99,259,070 and 97,259,070 shares issued and outstanding as of June 30,2015 and December 31, 2014, respectively.	9,926	9,726
Additional paid-in capital	4,379,717	4,232,342
Accumulated deficit	(2,445,554)	(1,778,139)
Total stockholders' equity	1,944,089	2,463,929
Total Liabilities and Stockholders' Equity	5,348,335	5,592,807
Series A Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred stock, $.0001 par value, 10,000,000 shares authorized, none issued and outstanding; Series A preferred stock, $.001 par value 2 shares issued and outstanding as of June 30, 2015 and December 31, 2014.	$ 0	$ 0

Consolidated Balance Sheet (Un3

Consolidated Balance Sheet (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	99,259,070	97,259,070
Common stock, shares outstanding	99,259,070	97,259,070
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares issued	2	2
Preferred stock, shares outstanding	2	2

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues
Equipment lease revenue	$ 3,435,205	$ 1,775,221	$ 5,717,322	$ 1,796,709
Transaction and processing fees	1,060,225	404,556	2,213,934	404,556
Total revenues	4,495,430	2,179,777	7,931,256	2,201,265
Costs and expenses
Cost of products sold	712,746	344,696	1,231,586	346,233
Salaries and wages	2,773,364	2,026,203	5,190,096	2,229,462
Outside commissions	503,262	301,705	880,022	303,017
Other selling general and administrative expenses	581,838	609,595	1,150,368	746,531
Total costs and expenses	4,571,210	3,282,199	8,452,072	3,625,243
Net loss from operations	(75,780)	(1,102,422)	(520,816)	(1,423,978)
Other income
Gain on sale of residual portfolio	0	2,800,000	0	2,800,000
Gain on settlement of debt	0	175,101	0	175,101
Total other income	0	2,975,101	0	2,975,101
Interest expense	67,695	203,385	146,599	203,385
Net income (loss) before income taxes	(143,475)	1,669,294	(667,415)	1,347,738
Income tax expense (benefit)
Current	(53,086)	(573,350)	(246,944)	(573,350)
Deferred	53,086	560,071	246,944	560,071
Total income tax expense	0	(13,279)	0	(13,279)
Net income (loss)	$ (143,475)	$ 1,656,015	$ (667,415)	$ 1,334,459
Loss Per Share
Basic & Diluted	$ (0.001)	$ 0.019	$ (0.007)	$ 0.017
Weighted Average Shares Outstanding
Basic & Diluted	97,918,411	88,983,013	97,590,562	78,357,270

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($)	Series A Preferred Stock	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit
Beginning balance (amount) at Dec. 31, 2013		$ 6,706	$ 1,010,947	$ (1,341,258)
Beginning balance (in shares) at Dec. 31, 2013		67,064,892
Issuance of common stock at .09 per share		$ 163	149,837
Issuance of common stock at .09 per share, Shares		1,628,570
Issuance of common stock at .30 per share		$ 20	59,980
Issuance of common stock at .30 per share, Shares		200,000
Issuance of stock for acquisition of Securus (amount)		$ 2,240	2,537,024
Issuance of stock for acquisition of Securus (in shares)	2	22,400,000
Stock Compensation Expense (amount)		$ 547	278,427
Stock Compensation Expense (in shares)		5,465,608
Net income (loss) for the period				1,334,459
Ending balance (amount) at Jun. 30, 2014		$ 9,676	4,036,215	(6,799)
Ending balances (in shares) at Jun. 30, 2014	2	96,759,070
Beginning balance (amount) at Dec. 31, 2014		$ 9,726	4,232,342	(1,778,139)
Beginning balance (in shares) at Dec. 31, 2014	2	97,259,070
Stock Compensation Expense (amount)		$ 200		147,375
Stock Compensation Expense (in shares)		2,000,000
Net income (loss) for the period				(667,415)
Ending balance (amount) at Jun. 30, 2015		$ 9,926	$ 4,379,717	$ (2,445,554)
Ending balances (in shares) at Jun. 30, 2015	2	99,259,070

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities:
Net income (loss)	$ (667,415)	$ 1,334,459
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	49,004	25,114
Stock based compensation	147,575	278,974
Gain on settlement of debt	0	(175,101)
Decrease (increase)
Accounts receivable	139,642	(101,513)
Prepaid expenses	25,456	19,554
Inventory	4,311	41,809
Other receivables	0	(1,524,167)
Other long-term assets	4,583	(117,500)
Increase (decrease)
Accounts payable	47,247	212,165
Accrued compensation	98,127	206,595
Other accrued liabilities	397,878	91,556
Other long-term liabilities	261	11,959
Net cash provided by operating activities	246,669	303,904
Cash flows from investing activities:
Purchase of fixed assets	(148,656)	(3,282)
Acquisition of Securus	0	34,563
Net cash provided by (used in) investing activities	(148,656)	31,281
Cash flows from financing activities:
Proceeds from notes payable	100,000	1,600,000
Issuance of common stock	0	210,000
Payments on notes payable	(368,145)	(2,147,497)
Net cash used in financing activities	(268,145)	(337,497)
Net decrease in cash	(170,132)	(2,312)
Cash - Beginning	326,788	8,328
Cash - Ending	156,656	6,016
Supplemental disclosure of cash flow information
Cash paid for interest	$ 67,695	$ 206,778

1. Organization and Operations

1. Organization and Operations	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND OPERATIONS	Excel Corporation (the “Company”) was organized on November 13, 2010 as a Delaware corporation. The Company has two wholly owned subsidiaries, Excel Business Solutions, Inc., and Payprotec Oregon, LLC (d/b/a Securus Payments), (“Securus”). The Company had been considered a development stage company as defined by FASB ASC 915-205-45-6. However, on April 21, 2014, the Company acquired 100% of the membership interests of Payprotec Oregon LLC (d/b/a Securus Payments) (“Securus”) (see note 8). Following this transaction, the Company ceased to be a development stage company. The Company is currently devoting substantially all of its efforts to providing services in the merchant payment processing industry. The Company provides payment processing services, which include credit and debit card processing, check approval, and ancillary processing equipment and software services to merchants that accept credit cards, debit cards, checks, and other non-cash forms of payment. In addition, the Company provides leases for point of sale and similar processing equipment to merchants which are in turn sold to a third party. In June 2015 our subsidiary Excel Business Solutions began selling merchant cash advances under the trade name Mom and Pop Merchant Solutions “Mom and Pop”. Mom and Pop operates as an ISO and does not directly fund any advances. The impact of Mom and Pop on the Company’s results of operations and financial position for the quarter ended June 30, 2015 was not material.

2. Summary of Significant Accou

2. Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
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, 2014. Reclassification Certain prior period amounts have been reclassified to conform to the current year’s presentation.

3. Fair Value Measurements

3. Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
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 six 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, Prepaid Expenses, Inventory, 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. Notes Payable The carrying values of notes payable approximate fair values, since these instruments bear market rates of interest.

4. Recent Accounting Pronouncem

4. Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2015
Accounting Changes and Error Corrections [Abstract]
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, 2017 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. 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.

5. Income Taxes

5. Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
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, 2015, the Company had available unused operating loss carryforwards of $2,376,158 which generated a deferred tax benefit of $879,178. The Company had a 100% valuation allowance on the deferred tax assets at June 30, 2015. The Company’s provision for income taxes for the six months ended June 30, 2015 consists of the following: Income Tax Expense Six months Ended June 30, 2015 Current $ (246,944 ) Deferred 246,944 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 2011 through 2014 remain subject to examination by Federal and state taxing authorities.

6. Stockholders' Equity

6. Stockholders' Equity	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
STOCKHOLDERS' EQUITY	On April 21, 2014 the Company issued two shares of Series A Preferred Stock to the two previous members of Payprotec. 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 Payprotec upon a change of control in Payprotec (as defined).

7. Stock Options and Compensati

7. Stock Options and Compensation	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK OPTIONS AND COMPENSATION	On November 13, 2010, the Company’s Board of Directors (the “Board”) approved a stock plan pursuant to which the Company may grant incentive and non-statutory options to employees, non-employee members of the Board and consultants and other independent advisors who provide services to the Corporation. The maximum shares of common stock which may be issued over the term of the plan shall not exceed 4,000,000 shares. Awards under this plan are made by the Board of Directors or a committee of the Board. Options under the plan are to be issued at the market price of the stock on the day of the grant except to those issued to holders of 10% or more of the Company’s Common Stock which is required to be issued at a price not less than 110% of the fair market value on the day of the grant. Each option is exercisable at such time or times, during such period and for such numbers of shares shall be determined by the Plan Administrator. However, no option shall have a term in excess of 10 years from the date of the grant. On August 28, 2014, the Company issued options to purchase a total of 1,000,000 shares of the Company’s Common Stock at an exercise price of $.09 per share. The options are exercisable for a ten year period subject to certain restrictions. The shares vest ratably over 36 months. The following table summarizes the Company’s stock options. Options outstanding 1,000,000 Vested 277,778 Unvested 722,222 On May 13, 2014, The Company issued 2,732,804 shares of the Company’s Common Stock to each of two executives in connection with their employment agreements. One third of the shares vested upon grant and the balance vest ratably over a two-year period. On June 1, 2015, the Company issued 2,000,000 shares of stock to an executive. 500,000 of the shares vested upon grant and an additional 500,000 will vest on June 1, 2016, 2017, and 2018. The Company recorded stock compensation expense in the amount of $147,575 for the six months ended June 30, 2015 related to the stock grants and issuance of stock options.

8. Acquisition of Subsidiary

8. Acquisition of Subsidiary	6 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
ACQUISITION OF SUBSIDIARY	On April 21, 2014, the Company purchased 90% of the membership interests of Securus and its subsidiary Securus Consultants, LLC through a Securities Exchange Agreement (the “Agreement”) with Mychol Robirds and Steven Lemma. In exchange for their membership interests in Securus and Securus Consultants LLC, the Company issued to Messrs. Robirds and Lemma a total of 20,400,000 shares of the Company’s Common Stock and two shares of the Company’s Series A Preferred Stock. Payprotec also entered into three-year employment agreements (the “Employment Agreements”) with each of Messrs. Robirds and Lemma. Pursuant to a Securities and Exchange Agreement ("E-Cig Agreement") dated April 21, 2014 between the Company and E-Cig Ventures, LLC ("E-Cig"), the Company acquired the remaining 10% of the membership interests of Securus in exchange for the issuance of 2,000,000 shares of the Company's common stock and the agreement to guaranty a $1.5 million loan (the “Guaranty”) from Shadow Tree Income Fund A LP (“Shadow Tree”) to E-Cig (the "E-Cig Transaction"). As a result of the two transactions, the Company owns 100% of the membership interests of Securus. 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 Securus had been consummated as of January 1, 2014. 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 Securus been a combined entity during 2014. Selected Pro Forma Financial Information Six months ended June 30, 2014 Revenues $ 6,256,665 Net income attributable to the Company $ 724,635 Net income attributable to the Company per common share - basic and diluted $ .009

9. Property and Equipment

9. Property and Equipment	6 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	Property and equipment consists of the following as of June 30, 2015: June 30, 2015 Computer software $ 168,266 Equipment 162,524 Furniture & fixtures 83,299 Leasehold improvements 118,882 Total cost 532,971 Less accumulated depreciation and amortization (202,687 ) Property and equipment – net $ 330,284

10. Leases

10. Leases	6 Months Ended
	Jun. 30, 2015
Leases [Abstract]
LEASES	Securus leases its Oregon office facilities under an operating lease expiring in June 2017. Monthly lease payments range from $16,153 to $17,808 throughout the term of the lease. Securus leases its California office facilities under an operating lease expiring in March 2016. Monthly lease payments range from $6,059 to $6,426 throughout the term of the lease. Securus leases its Florida office facilities under an operating lease expiring in December 2016. Monthly lease payments range from $3,180 to $3,374 throughout the term of the lease. 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. Total rent expense for the six months ended June 30, 2015 was $202,808, compared to $87,186 for the six months ended June 30, 2014. The future minimum lease payments required under long-term operating leases as of June 30, 2015 are as follows: 2015 $ 189,520 2016 343,751 2017 181,118 2018 75,648 2019 and after 83,454 Total $ 873,491

11. Notes Payable

11. Notes Payable	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
NOTES PAYABLE	The following summarizes the Company’s current outstanding notes payable: Note payable to Blue Acre Ventures, due in monthly installments of $48,333 through May 2017, including simple interest at 15%, secured by the Company’s primary residual portfolio $ 868,441 Note payable to E-Cig, due in monthly installments of $26,207 beginning October 2014 through September 2015, including interest at 6%, secured by 1,000,000 shares of the Company's common stock owed to the Company by E-Cig 75,000 Note payable to Payment Processing Technologies LLC, due in monthly installments of $10,653 beginning January 2015 through October 2015, including interest at 14%, secured by the Company’s residual portfolio with Payment Processing Technologies LLC 51,449 Total 994,890 Less current portion (526,258 ) Long-term portion of notes payable $ 468,632 Future maturities of notes as of June 30, 2015 are as follows: 2015 $ 313,529 2016 454,628 2017 226,733 Total $ 994,890

12. Related Party Transactions

12. Related Party Transactions	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	On January 14, 2014, Ruben Azrak, Chairman of the Board and then Interim Chief Executive Officer, advanced the Company $25,000. This advance bears no interest and does not provide for a specific repayment date.

2. Summary of Significant Acc19

2. Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
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, 2014.
Reclassification	Reclassification Certain prior period amounts have been reclassified to conform to the current year’s presentation.

5. Income Taxes (Tables)

5. Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Schedule of net effect on net income to full tax valuation allowance	Income Tax Expense Six months Ended June 30, 2015 Current $ (246,944 ) Deferred 246,944 Total $ -

7. Stock Options and Compensa21

7. Stock Options and Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock options	Options outstanding 1,000,000 Vested 277,778 Unvested 722,222

8. Acquisition of Subsidiary (T

8. Acquisition of Subsidiary (Tables)	6 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Schedule of selected proforma financial information	Selected Pro Forma Financial Information Six months ended June 30, 2014 Revenues $ 6,256,665 Net income attributable to the Company $ 724,635 Net income attributable to the Company per common share - basic and diluted $ .009

9. Property and Equipment (Tabl

9. Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	June 30, 2015 Computer software $ 168,266 Equipment 162,524 Furniture & fixtures 83,299 Leasehold improvements 118,882 Total cost 532,971 Less accumulated depreciation and amortization (202,687 ) Property and equipment – net $ 330,284

10. Leases (Tables)

10. Leases (Tables)	6 Months Ended
	Jun. 30, 2015
Leases [Abstract]
Schedule of future minimum lease payments	2015 $ 189,520 2016 343,751 2017 181,118 2018 75,648 2019 and after 83,454 Total $ 873,491

11. Notes Payable (Tables)

11. Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Schedule of notes payable	Note payable to Blue Acre Ventures, due in monthly installments of $48,333 through May 2017, including simple interest at 15%, secured by the Company’s primary residual portfolio $ 868,441 Note payable to E-Cig, due in monthly installments of $26,207 beginning October 2014 through September 2015, including interest at 6%, secured by 1,000,000 shares of the Company's common stock owed to the Company by E-Cig 75,000 Note payable to Payment Processing Technologies LLC, due in monthly installments of $10,653 beginning January 2015 through October 2015, including interest at 14%, secured by the Company’s residual portfolio 51,449 Total 994,890 Less current portion (526,258 ) Long-term portion of notes payable $ 468,632
Schedule of future maturities	2015 $ 313,529 2016 454,628 2017 226,733 Total $ 994,890

5. Income Taxes (Details)

5. Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Tax Expense
Current	$ (53,086)	$ (573,350)	$ (246,944)	$ (573,350)
Deferred	53,086	560,071	246,944	560,071
Total	$ 0	$ (13,279)	$ 0	$ (13,279)

5. Income Taxes (Details Narrat

5. Income Taxes (Details Narrative) - Jun. 30, 2015 - USD ($)	Total
Income Taxes (Textual)
Operating loss carryforwards	$ 2,376,158
Rate of valuation allowance on the deferred tax benefit	100.00%
Deferred tax benefit	$ 879,178

7. Stock Options and Compensa28

7. Stock Options and Compensation (Details)	6 Months Ended
	Jun. 30, 2015shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options outstanding	1,000,000
Vested	277,778
Unvested	722,222

7. Stock Options and Compensa29

7. Stock Options and Compensation (Details Narrative) - Jun. 30, 2015 - USD ($)	Total	Total
Stock Options and Compensation (Textual)
Stock compensation expense	$ 79,787	$ 147,575

8. Acquisition of Subsidiary (D

8. Acquisition of Subsidiary (Details) - 6 months ended Jun. 30, 2014 - USD ($)	Total
Selected Pro Forma Financial Information
Revenues	$ 6,256,665
Net loss attributable to the Company	$ 724,635
Net loss attributable to the Company per common share - basic and diluted	$ 0.009

9. Property and Equipment (Deta

9. Property and Equipment (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Total cost	$ 532,971
Less accumulated depreciation and amortization	(202,687)
Property and equipment - net	330,284	$ 230,632
Computer Software
Property, Plant and Equipment [Line Items]
Total cost	168,266
Equipment [Member]
Property, Plant and Equipment [Line Items]
Total cost	162,524
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total cost	83,299
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total cost	$ 118,882

10. Leases (Details)

10. Leases (Details)	Jun. 30, 2015USD ($)
Future Minimum Lease Payments
2,015	$ 189,520
2,016	343,751
2,017	181,118
2,018	75,648
2019 and after	83,454
Total	$ 873,491

10. Leases (Details Narrative)

10. Leases (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Leases [Abstract]
Rent expense	$ 202,808	$ 87,186

11. Notes Payable (Details)

11. Notes Payable (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Total	$ 994,890
Less current portion	(526,258)	$ (581,674)
Long-term portion of notes payable	468,632	$ 681,361
Secured Debt [Member]
Debt Instrument [Line Items]
Total	868,441
Secured Debt One [Member]
Debt Instrument [Line Items]
Total	75,000
Secured Debt Two [Member]
Debt Instrument [Line Items]
Total	$ 51,449

11. Notes Payable (Details 1)

11. Notes Payable (Details 1)	Jun. 30, 2015USD ($)
Future maturities of notes
2,015	$ 313,529
2,016	454,628
2,017	226,733
Total	$ 994,890