Nexus Enterprise Solutions (NXES) 10-Q 10 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 12, 2015
Document And Entity Information
Entity Registrant Name	Nexus Enterprise Solutions, Inc.
Entity Central Index Key	1,561,781
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		19,007
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash	$ 42,708	$ 31,575
Accounts receivable, net of allowance for doubtful accounts	235,542	295,423
Total Current Assets	278,250	326,998
Property and equipment, net of accumulated depreciation	784	784
Intangible assets	275,000	275,000
TOTAL ASSETS	554,034	602,782
CURRENT LIABILITIES
Accounts payable and accrued expenses	268,096	333,216
Accrued expenses to related parties	118,000	118,000
Notes payable	5,000	30,500
Convertible note payable	77,138	63,076
Notes payable to related parties	127,485	127,485
Total Current Liabilities	595,719	$ 672,277
Long-term portion of convertible note payable	$ 260,000
Long-term portion of notes payable		$ 387,000
TOTAL LIABILITIES	$ 855,719	$ 1,059,277
STOCKHOLDERS' DEFICIT
Preferred stock, 10,000,000 shares authorized at no par value, no shares issued and outstanding.
Common stock, 500,000,000 shares authorized; $.001 par value, 19,007,144 and 18,807,144 shares issued and outstanding, respectively	$ 19,007	$ 18,807
Additional paid-in capital	1,533,936	1,498,751
Accumulated deficit	(1,854,628)	(1,974,053)
Total Stockholders' Deficit	(301,685)	(456,495)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 554,034	$ 602,782

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0	$ 0
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	$ .001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	19,007,144	18,807,144
Common stock, shares outstanding	19,007,144	18,807,144

Statements of Operations

Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
REVENUES	$ 506,879	$ 380,168	$ 1,062,168	$ 627,189
COST OF SALES	274,343	229,662	598,826	386,689
GROSS PROFIT	232,536	150,506	463,342	240,500
OPERATING EXPENSES
General and administrative	26,319	43,967	54,293	81,398
Consulting fees	151,852	116,616	275,562	252,606
Total Operating Expenses	178,171	160,583	329,855	334,004
LOSS FROM OPERATIONS	54,365	(10,077)	133,487	(93,504)
OTHER EXPENSES
Interest expense	(6,677)	(561)	(14,062)	(1,122)
NET LOSS	$ 47,688	$ (10,638)	$ 119,425	$ (94,626)
BASIC AND DILUTED LOSS PER COMMON SHARE	$ 0	$ 0	$ 0	$ 0
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED	18,947,803	19,533,608	18,877,862	19,748,932

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
OPERATING ACTIVITIES
Net income (loss)	$ 119,425	$ (94,626)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation	35,385	20,007
Depreciation expense		$ 176
Changes in operating assets and liabilities:
Accounts receivable	$ 59,881	35,529
Prepaid expenses		$ 10,910
Interest payable	$ 14,062
Accounts payable	$ (65,120)	$ 29,654
Accrued expenses to related parties		1,122
Net Cash Provided by Operating Activities	$ 163,633	2,772
FINANCING ACTIVITIES
Proceeds from convertible note payable		387,000
Repayment of notes payable	$ (152,500)	$ (35,500)
Cash paid for repurchase and cancellation of common stock		(356,874)
Net Cash Used in Financing Activities	$ (152,500)	$ (5,374)
NET INCREASE (DECREASE) IN CASH	11,133	(2,602)
CASH AT BEGINNING OF PERIOD	31,575	23,013
CASH AT END OF PERIOD	$ 42,708	$ 20,411
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION CASH PAID FOR:
Interest
Income Taxes

1 BASIS OF PRESENTATION

1 BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
1 BASIS OF PRESENTATION	NOTE 1 - BASIS OF PRESENTATION Basis of Presentation The unaudited interim financial statements of Nexus Enterprise Solutions, Inc. (the "Company") have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information in accordance with Securities and Exchange Commission (SEC) Regulation S-X rule 8-03. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited interim financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position and the results of operations and cash flows for the interim periods presented herein. The financial data and other information disclosed in these notes to the interim financial statements related to the period are unaudited. The results for the three and six month periods ended June 30, 2015 are not necessarily indicative of the results to be expected for any subsequent quarters or for the entire year ending December 31, 2015. These financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2014. Reclassifications Certain prior period amounts have been reclassified to conform to current period presentation. Basic and Diluted Net Income (Loss) per Share Basic and diluted net income (loss) per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the period. Diluted income (loss) per share calculations includes the dilutive effect of common stock. Basic and diluted net income (loss) per share is the same for each of the three and six months ended June 30, 2015 and 2014 due to the absence of common stock equivalents.

2 GOING CONCERN

2 GOING CONCERN	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
2 GOING CONCERN	NOTE 2 - GOING CONCERN The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States, which contemplate continuation of the Company as a going concern. The Company has generated recurring net losses since inception and has a working capital deficit of $317,469 and an accumulated deficit of $1,854,628 as of June 30, 2015. The Company currently has limited liquidity and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management anticipates that the Company will be dependent, for the near future, on additional investment capital, primarily from its shareholders, to fund operating expenses. The Company intends to position itself so that it may be able to raise additional funds through the private placement of its common stock. In light of management's efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.

3 RELATED PARTY TRANSACTIONS

3 RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2015
Payables and Accruals [Abstract]
3 PAYABLES TO RELATED PARTIES	NOTE 3 –RELATED PARTY TRANSACTIONS As of June 30, 2015 and December 31, 2014 the balance of accrued expenses to related parties, which consists of accrued interest and accrued payroll, was $181,629 and $181,076, respectively. At June 30, 2015 and December 31, 2014, the accrued interest on the outstanding notes payable to related parties was $63,629 and $63,076, respectively. The outstanding balance of accrued payroll to officers was $118,000 as of June 30, 2015 and December 31, 2014. The Company pays monthly consulting fees to two stockholders. During the six months ended June 30, 2015 and 2014, these fees aggregated $80,700 and $63,150, respectively.

4 NOTES PAYABLE TO RELATED PART

4 NOTES PAYABLE TO RELATED PARTIES	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
4 PAYABLES TO RELATED PARTIES	NOTE 4 – NOTES PAYABLE TO RELATED PARTIES As of June 30, 2015 and December 31, 2014, the Company had outstanding notes payable to related parties of $127,485. These notes are unsecured, bear interest between 0% and 6% and are due on demand.

5 NOTE PAYABLE

5 NOTE PAYABLE	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
6 NOTE PAYABLE	NOTE 5 – NOTES PAYABLE In April 2013, the Company and a third party reached an agreement for Nexus to use certain intellectual property in its lead generation business into perpetuity in exchange for a $150,000 note and 500,000 common shares which were previously issued during February 2012 (the fair value of these shares of $125,000 was reclassified from deposits to intangible assets during the year ended December 31, 2013). The note will be repaid in 18 monthly installments, with the monthly payments varying based on the Company's gross profit for that month. The monthly payments range from $5,000 to $25,000. The note does not bear interest unless a monthly payment is not made, at which time the note will bear interest at 12.5% until the non-payment is cured. During 2014 and 2013, the Company made payments of $65,500 and $54,000, respectively. On June 4, 2014, the Company borrowed $387,000 from an unrelated third party entity in the form of a convertible note. The note bears a zero percent interest rate until December 31, 2014, at which point the note will accrue interest at a rate of 8 percent per annum commencing on January 1, 2015. The principal balance of the note with accrued interest is due on February 15, 2017. Monthly payments commence in January 2015, with the first payment of $17,500 due on January 15, 2015 and every payment due on or near the 15th of each month thereafter. On January 15, 2016, the monthly payments decrease to $15,000 per month until maturity. The Holder is prohibited from converting all or any portion of the outstanding principal and accrued interest provided timely monthly payments are received by the Holder pursuant to the terms set forth in the payment schedule. If the note becomes convertible due to timely monthly payments not being made, the note will be convertible into common stock at 55% of the lowest closing bid price of the Company's common stock during the 25 trading days preceding the date of conversion. The Company evaluated the convertible note under FASB ASC 815 and determined it does not qualify as a derivative liability as of June 30, 2015. As of June 30, 2015, the outstanding balance under this note was $260,000 and accrued interest was $13,509.

6 STOCKHOLDERS' EQUITY

6 STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
6 STOCKHOLDERS' EQUITY	NOTE 6 – STOCKHOLDERS' EQUITY During the year ended December 31, 2013, the Company granted 300,000 common shares to a new Board member, Stanley Rapp. The shares vest on September 16, 2015. The fair value of the award was determined to be $78,000 and it is being expensed over the vesting period. During the six months ended June 30, 2015, an aggregate of $19,339 was expensed under this award. An aggregate of $8,335 remains to be expensed over the remaining vesting period. The 300,000 shares were issued during January 2014. On June 13, 2014, the Company granted 50,000 common shares to a new Chief Technology Officer. The shares vest on April 13, 2015. The fair value of the award was determined to be $11,940 and it is being expensed over the vesting period. During the six months ended June 30, 2015, an aggregate of $4,046 was expensed under this award. On April 13, 2015, the 50,000 shares were issued. On April 28, 2015, the Company granted 100,000 common shares to Scott Schluer (Chief Technology Officer) and 50,000 common shares to TMG Interactive for services. The shares were valued and expensed at $12,000 during the six months ended June 30, 2015.

2 GOING CONCERN (Details Narrat

2 GOING CONCERN (Details Narrative) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Working capital deficit	$ 317,469
Accumulated deficit	$ (1,854,628)	$ (1,974,053)

3 RELATED PARTY TRANSACTIONS (D

3 RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Related Party Transactions [Abstract]
Accrued interest and accrued payroll	$ 181,629	$ 181,076
Accrued interest on the outstanding notes payable to related parties	63,629	63,076
Accrued payroll to officers	118,000	118,000
Aggragated consulting fees to two shareholders	$ 80,700	$ 63,150

4 NOTES PAYABLE TO RELATED PA14

4 NOTES PAYABLE TO RELATED PARTIES (Details Narrative) - Jun. 30, 2015 - USD ($)	Total
Notes to Financial Statements
Outstanding unsecured notes payable related parties	$ 127,485
Interest rate	6.00%

5 NOTE PAYABLE (Details Narrati

5 NOTE PAYABLE (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Debt Disclosure [Abstract]
Note issued for intangible asset	$ 150,000
Shares issed for intangible asset	500,000
Fair value of shares issued for intangible asset	$ 125,000
Low range of monthly payments	5,000
High range of monthly payments	$ 25,000
Interest if monthly payment is not made	12.50%
Amount unpaid as of May 10, 2014	$ 100,000
Interest rate	600.00%
Oustanding balance of note 1	$ 5,000	$ 30,500
Oustanding balance of note 2	$ 260,000
Interest rate for note 2	80.00%
Date of first payment due for note 2	Jan. 15, 2015
Monthly Ppayment amount note 2	$ 15,000
Accrued interest note 2	$ 13,509

6 STOCKHOLDERS EQUITY (Details

6 STOCKHOLDERS EQUITY (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2013	Jun. 13, 2014	Sep. 16, 2013
Equity [Abstract]
Number of shares awarded to a new Board member		300,000
Fair value of award to a new Board member				$ 78,000
Amount of issuance expensed during period	$ 19,339
Aggregate remaining to be expensed over the remaining vesting period	8,335
Number of shares awarded to CTO			50,000
Fair value of award to CTO	11,940
Amount of issuance expensed during period	$ 4,046
Number of shares issued for services	35,385
Amount of issuance valued and expensed during period	$ 12,000