Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | May 08, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | Elite Data Services, Inc. | |
Entity Central Index Key | 704,366 | |
Document Type | 10-K/A | |
Document Period End Date | Dec. 31, 2015 | |
Amendment Flag | true | |
Amendment Discription | On September 27, 2016 (the Original Filing Date), the Registrant filed with the SEC a current report on Form 10-K for fiscal year ended December 31, 2015 (the Original Form 10-K). This current report on Form 10-K/A (the Amendment) provides an amended audit report and updated disclosures related to the Companys operations, including, but not limited to: (1) the active status of the Company as a registered Florida corporation, (2) the status of a certain pending acquisition, (3) business items related to a certain joint venture directly related to the gaming operations in Roatan, Honduras, (4) the status of the 1 for 1000 reverse split of the Companys common stock previously announced, and (4) internal control procedures disclosure. No other changes have been made to the Original Form 10-K. This Amendment speaks as of the Original Filing Date, however, does reflect events that may have occurred after the Original Filing Date, and does modify or update certain disclosures made in the Original Form 10-K as described herein. | |
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 | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 136,518,799 | |
Entity Public Float | $ 0 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash | $ 1,730 | $ 659 |
Prepaid expense | 820,882 | |
Total Current Assets | 1,730 | 821,541 |
OTHER ASSET: | ||
Deposit | 100,000 | |
Total Assets | 101,730 | 821,541 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 251,527 | 606,221 |
Line of credit payable | 151,000 | |
Loans from a related party | 136,960 | 139,029 |
Loan payable | 13,325 | |
Contingent consideration payable | 566,212 | |
Derivative instrument liability | 787,438 | |
Note payable, net of discount of $50,000 | ||
Convertible notes payable, net of discounts of $194,659 | 256,924 | |
Total Current Liabilities | 1,432,849 | 1,475,787 |
LONG TERM DEBT: | ||
Convertible note payable, net of discount of $175,445 | 49,555 | |
Convertible Note payable, related party | 587,564 | 587,564 |
Total Liabilities | 2,069,968 | 2,063,351 |
STOCKHOLDERS' DEFICIT: | ||
Common stock, $0.0001 par value; 500,000,000 shares authorized; issued and outstanding 25,595,902 and 19,219,070, respectively | 2,771 | 1,922 |
Additional paid-in capital | 11,820,411 | 7,581,444 |
Subscription stock not issued | 75,000 | |
Deficit accumulated | (13,866,420) | (8,825,176) |
Total Stockholders Deficit | (1,968,238) | (1,241,810) |
Total Liabilities and Stockholders Deficit | 101,730 | 821,541 |
Series A Preferred Stock [Member] | ||
STOCKHOLDERS' DEFICIT: | ||
Preferred stock |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT LIABILITIES: | ||
Note payable, net of discount | $ 50,000 | |
Convertible notes payable current, net of discounts | 194,659 | |
Convertible note payable noncurrent, net of discount | $ 175,445 | |
STOCKHOLDERS' DEFICIT: | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, Authorized | 500,000,000 | 500,000,000 |
Common stock, Issued | 25,595,902 | 19,219,070 |
Common stock, outstanding | 25,595,902 | 19,219,070 |
Series A Preferred Stock [Member] | ||
STOCKHOLDERS' DEFICIT: | ||
Preferred stock, Par value | $ 0.0001 | $ 0.0001 |
Preferred stock, Authorized | 250,000,000 | 250,000,000 |
Preferred stock, Issued | 0 | 0 |
Preferred stock, Outstanding | 0 | 0 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statement Of Operations | ||
REVENUES | $ 1,596 | $ 15,015 |
OPERATING EXPENSES | ||
Consulting services | 63,794 | 43,840 |
Project development costs | 319 | 29,139 |
Investor relations services | 339,726 | 75,274 |
Warrants issued for services | 481,156 | |
General and administrative | 327,323 | 182,871 |
Total Operating Expenses | 1,212,318 | 331,124 |
LOSS FROM OPERATIONS | (1,210,722) | (316,109) |
OTHER INCOME (EXPENSE): | ||
Loss on extinguishment of debt | (3,162,367) | (1,361,448) |
Impairment of intangible asset | (589,041) | |
Loss on derivative instruments | (285,760) | |
Settlement of debt | (85,842) | |
Interest expense - related party | (65,009) | (58,842) |
Interest expense - other | (231,544) | (32,025) |
Total Other Expense | (3,830,522) | (2,041,356) |
LOSS BEFORE PROVISION FOR INCOME TAXES | (5,041,244) | (2,357,465) |
PROVISION FOR INCOME TAX | ||
NET LOSS | $ (5,041,244) | $ (2,357,465) |
Basic and Diluted Per Share Data: Net Loss Per Share - basic and diluted | $ (0.22) | $ (0.14) |
Weighted Average Common Shares Outstanding: Basic and diluted | 23,645,245 | 16,393,316 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT - USD ($) | Preferred Stock | Common Stock [Member] | Subscriptions Receivable | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning balance, shares at Dec. 31, 2013 | 150,488 | |||||
Beginning balance, amount at Dec. 31, 2013 | $ 15 | $ 155,000 | $ 4,907,380 | $ (6,467,711) | $ (1,403,316) | |
Rounding adjustment, shares | 38 | |||||
Common stock issued for debt conversion, shares | 3,403,620 | |||||
Common stock issued for debt conversion, amount | $ 340 | $ 1,701,470 | $ 1,701,810 | |||
Common stock issued for services, shares | 750,000 | |||||
Common stock issued for services, amount | $ 75 | 374,925 | 375,000 | |||
Warrants issued | 522,684 | 522,684 | ||||
Shares issued for intangible assets, shares | 14,765,000 | |||||
Shares issued for intangible assets, amount | $ 1,477 | 1,477 | ||||
Subscription agreements exercised, shares | 150,000 | |||||
Subscription agreements exercised, amount | $ 15 | (75,000) | 74,985 | |||
Subscription agreements not exercised | (80,000) | (80,000) | ||||
Net loss for the year | (2,357,465) | (2,357,465) | ||||
Ending balance, shares at Dec. 31, 2014 | 19,219,070 | |||||
Ending balance, amount at Dec. 31, 2014 | $ 1,922 | 7,581,444 | (8,825,176) | (1,241,810) | ||
Sale of common stock, shares | 25,000 | |||||
Sale of common stock, amount | $ 3 | 24,997 | 25,000 | |||
Common stock issued for debt conversion, shares | 7,986,810 | |||||
Common stock issued for debt conversion, amount | $ 797 | 4,141,491 | 4,142,288 | |||
Issuance of common stock for compensation, shares | 391,386 | |||||
Issuance of common stock for compensation, amount | $ 39 | 54,755 | 54,794 | |||
Issuance of common stock for fees, shares | 100,000 | |||||
Issuance of common stock for fees, amount | $ 10 | 17,724 | 17,734 | |||
Subscription stock unissued | 75,000 | 75,000 | ||||
Net loss for the year | (5,041,244) | (5,041,244) | ||||
Ending balance, shares at Dec. 31, 2015 | 27,722,266 | |||||
Ending balance, amount at Dec. 31, 2015 | $ 2,771 | $ 75,000 | $ 11,820,411 | $ (13,866,420) | $ (1,968,238) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES: | ||
Net (loss) profit | $ (5,041,244) | $ (2,357,465) |
Adjustments to reconcile net loss to net cash used in opearting activities: | ||
Impairment of intangible assets | 589,041 | |
Loss on extinguishment of debt | 3,162,367 | 1,361,448 |
Stock compensation for investor relations, consulting and finance costs | 524,754 | 35,274 |
Warrants issued for services | 481,156 | 41,528 |
Loss on derivative instruments | (285,760) | |
Non-cash interest expense | 166,633 | |
Non- cash settlement costs | 85,842 | |
Non-cash finance costs | 54,105 | |
Changes in operating assets and liabilities: | ||
Accounts payable and accrued expenses | 60,767 | 213,019 |
Net cash used in operating activities | (219,860) | (117,155) |
INVESTING ACTIVITY: | ||
Deposit | (100,000) | |
Net cash used in investing activity | (100,000) | |
FINANCING ACTIVITIES: | ||
Proceeds from stock sale | 25,000 | |
Proceeds from notes payable | 13,325 | |
Net proceeds from convertible promissory notes | 413,000 | |
Repayment to convertible promissory note | (115,000) | |
Payments to related party | (50,444) | |
Proceeds from related parties | 48,375 | 101,605 |
Net cash received from financing activities | 320,931 | 114,930 |
NET INCREASE (DECREASE) IN CASH | 1,071 | (2,225) |
CASH BEGINNING OF YEAR | 659 | 2,884 |
CASH END OF YEAR | 1,730 | 659 |
SUPPLEMENTAL DISCLOSURES: | ||
Income taxes paid | ||
Interest paid | 15,000 | |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Issuance of common stock in connection with the purchase of Classifiedride.com | 1,400 | |
Issuance of common stock in connection with the purchase of Autoglance, LLC | 77 | |
Issuance of common stock for conversion of debt | 4,142,288 | 1,701,810 |
Issuance of common stock for fees | 17,734 | |
Issuance of common stock for consulting services | 54,794 | 375,000 |
Note payable for the purchase of classifiedride.com | $ 587,564 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
NOTE 1 - DESCRIPTION OF BUSINESS | Elite Data Services, Inc. (hereinafter the Company, Our, We or Us) is a retail focused management company which currently owns a 20% minority interest of WOD Market LLC, a Colorado limited liability company, a provider of intelligent retail solutions for gym owners and coaches, including the management of retail sales, up front inventory purchases, ongoing inventory management, payments, marketing, and related services. Under a joint venture agreement dated March 14, 2017, the Company co-operates WOD with WOD Holdings Inc. (WODH), a Delaware corporation majority owned by Brenton Mix, our Chief Executive Officer, and Taryn Watson, a related party. Prior to March 14, 2017, the Company was a technology driven management company which owned and operated online marketing and gaming businesses: Elite Data Marketing LLC, and Elite Gaming Ventures LLC, from 2013 and 2014, respectively. During the year ending December 31, 2015, we made limited progress with our online marketing platforms due to lack of funding to complete required programming and coding enhancements. However, during the year ending December 31, 2016, we anticipated obtaining additional funding which would have afforded us the ability of bringing certain new marketing offerings to our platforms in hopes of increasing traffic flow, capturing new users and generating revenues. Due to the Company not being a current and fully reporting company in 2016, the Company was unable to raise the capital needed to advance the online marketing business resulting in a loss of business opportunities. On March 14, 2017, Company executed a note cancellation agreement and assignment with Baker & Myers & Associates LLC which resulted in Elite Data Marketing LLC no longer being a subsidiary of the Company, with no further operational effect or obligation to the Company. Separately, pursuant to the terms of the Joint Venture with HYHI formed on or about May 18, 2016, we intended to implement the creation of the joint venture relationship using Elite Data Holdings S.A., a Honduras corporation, a wholly-owned subsidiary of Elite Gaming Ventures LLC, a Florida limited liability company ("EVG"), a wholly-owned subsidiary of the Company, and a distributor license from HYHI and El Mar Muerto Beauty Mineral, S.A., a Honduras corporation ("EMBM") to establish gaming operations (the "Purpose") by distributing and maintaining a total of eighty (80) slot machines in the cities of La Lima, Cortes; eighty (80) slot machines in the cities of Trujillo, Colon; and One Hundred and Sixty (160) slot machines in Roatan in the bay island of Honduras. In order to effect the distributor license related to the gaming operations, the Company and EVG is responsible for providing any and all financial and operational resources required to execute on the License granted to the Company, including, but not limited to, the funding for the initial and ongoing operating costs in the minimum amount of Five Hundred Thousand Dollars (USD $500,000) on or before December 31, 2016 (the "Initial Funding"). See Note 16. During the period ending December 31, 2016, the Company was unable to raise the capital required to pay the minimum operational costs of the joint venture which resulted in a loss of business opportunities, and further strained the relationship with HYHI, our joint venture partner. On March 14, 2017, Company executed a joint venture termination agreement with H Y H Investments S.A. which resulted in Elite Gaming Ventures LLC (and, its wholly-owned subsidiary, Elite Data Holdings S.A.) no longer being a subsidiary of the Company, with no further operational effect or obligation to the Company, except for certain amounts owed by the Company under a further amendment to the Amended and Restated Redeemable Note. Separately, the Company intended to expand its operations in the four quarter of 2016 to include intelligent retail solutions for gym owners and coaches through the completion of the acquisition of WOD, which the Company currently owns a minority interest stake of 20% as of August 26, 2016, with 100% ownership interest anticipated to be completed on or before October 15, 2016. WOD serves the fitness community by allowing coaches and trainers to focus on whats important while athletes have access to the products they need to perform at their highest level. WOD aims to relieve gym owners and coaches of the burden of managing retail sales including upfront inventory purchases, ongoing inventory management, payments, marketing, etc. while also providing a service for members to have convenient access to products that help them perform better. WOD intends to forge a mutually beneficial relationship with each gym, customer and vendor to ensure the best possible experience. On January 10, 2017, the Company executed the first amendment to the purchase of WOD to extend the second closing date from on or about September 15, 2016 to on or about March 31, 2017, and further extend the third and final closing date from on or about October 15, 2016 to on or about June 30, 2017, respectively. Pursuant to managements decision to divest itself from its online marketing and gaming businesses, and focus exclusively on the fitness retail sales business, the Company executed the second amendment to the definitive agreement on March 14, 2017, which further amended certain terms of the WOD purchase, including the formation of a joint venture to further develop and manage the current WOD business. Under the terms of the Joint Venture, the initial ownership interest of WOD was 20% owned by the Company, with the remaining 80% owned WODH, with the option of Company to provide additional capital contributions to WOD in increments of not less than $10,000 up to a total of $8 million dollars in the aggregate, which included an equity exchange of up to a total of 800 units (80%) of WOD owned initially by WODH to the Company for a total of approximately 199,000 shares of Series B Preferred Stock and approximately 19,801,000 shares of Common Stock of the Company (the Shares) to be issued to WODH upon the completion of a final closing on or before December 31, 2018, under the terms set forth in Amendment No. 2. Until a minimum of at least $4 million in additional capital contributions have been made by the Company to WOD, resulting in a controlling ownership interest of not less than 60% of WOD by the Company, all the Shares of Company stock earmarked for the equity exchange with WODH is being held in a Voting Trust (as defined elsewhere in this filing), along with other key shareholder positions, in order to recapitalize the Company post a 1:1000 reverse split (which was previously approved), pending effectiveness after the Company becomes a current and fully-reporting public company. Our ability to complete subsequent phases of our newly development business plan and operations are subject to us obtaining additional financing as these expenditures will exceed our cash reserves. |
BASIS OF PRESENTATION AND GOING
BASIS OF PRESENTATION AND GOING CONCERN | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 2 - BASIS OF PRESENTATION AND GOING CONCERN | The Company has accumulated a deficit of $13,866,420 at December 31, 2015. The Company currently has only limited working capital with which to continue its operating activities. The amount of capital required to sustain operations is subject to future events and uncertainties. The Company must secure additional working capital through loans, sale of equity securities, or a combination, in order to implement its current business plans. There can be no assurance that such funding will be available in the future, or available on commercially reasonable terms favorable to the Company. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements have been presented on the basis of the continuation of the Company as a going concern and do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. Management continued to manage its costs for the year ended December 31, 2015 to ensure appropriate funding is on hand for its continued operations through convertible debentures and financing from a related party. Managements plans include the raising of capital through the equity markets to fund future operations and pay debts and generating of revenue through our business. However, even if we do raise sufficient capital to support our operating expenses and generate adequate revenues, there can be no assurances that the revenue will be sufficient to enable us to develop business to a level where we will generate profits and positive cash flows from operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Dynamic Energy Development Corporation (DEDC), which is inactive and Transformation Consulting (TC), which is also inactive. All significant inter-company accounts have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts 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. The Company regularly evaluates estimates and assumptions related to intangible assets and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Companys estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Reclassifications Certain reclassifications have been made in Statement of Operations for the year 2014 to conform to the current year presentation. These reclassifications impacted the classification of certain items within the Statement of Operations and the reclassifications had no impact on previously reported total operating expenses, net loss, or stockholders' deficit. Impairment of Long-Lived Intangible Assets We review our long-lived assets, including intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment, if any, is measured as the excess of the carrying amount over the fair value based on market value (when available) or discounted expected cash flows of those assets, and is recorded in the period in which the determination is made. Intangible assets not subject to amortization are tested annually for impairment and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. For the test performed December 31, 2014 an impairment loss of $589,041 was been charged to intangible assets since the fair value is less than the carrying amount as of the year end. For the year ended December 31, 2015, the Company did not have any long-lived intangible assets to be tested for impairments that had not previously been impaired in the subsequent year. Development Costs Development costs are expensed in the period they are incurred unless they meet specific criteria related to technical, market and financial feasibility, as determined by management, including but not limited to the establishment of a clearly defined future market for the product, and the availability of adequate resources to complete the project. If all criteria are met, the costs are deferred and amortized over the expected useful life, or written off if a product is abandoned. For the years ended December 31, 2015 and 2014, total development costs amounted to $319 and $29,139, respectively. At December 31, 2015 and 2014, the Company had no deferred product development costs. Cash Cash include all highly liquid instruments with an original maturity of three months or less at the date of purchase. The Company maintains its cash in cash deposit accounts, which are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per legal ownership. At times, the Companys accounts may exceed federally insured limits. To date, the Company has not experienced any losses in such accounts. At December 31, 2015 and 2014, the Company had no cash equivalents. Fair Value of Financial Instruments The Companys financial instruments consist of cash, accounts payable, accrued liabilities, line of credit payable, loans from a related party, contingent consideration payable, and convertible note payable. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. Derivative Financial Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company reviews the terms of convertible debt, equity instruments and other financing arrangements to determine whether there are embedded derivative instruments, including embedded conversion options that are required to be bifurcated and accounted for separately as a derivative financial instrument. Also, in connection with the issuance of financing instruments, the Company may issue freestanding options or warrants that may, depending on their terms, be accounted for as derivative instrument liabilities, rather than as equity. The Company may also issue options or warrants to non-employees in connection with consulting or other services. Derivative financial instruments are initially measured at their fair value. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income. For warrant-based derivative financial instruments, the Company uses the Black-Scholes option pricing model to value the derivative instruments. To the extent that the initial fair values of the freestanding and/or bifurcated derivative instrument liabilities exceed the total proceeds received, an immediate charge to income is recognized, in order to initially record the derivative instrument liabilities at their fair value. The discount from the face value of the convertible debt or equity instruments resulting from allocating some or all of the proceeds to the derivative instruments, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to income, usually using the effective interest method. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed at the end of each reporting period. If reclassification is required, the fair value of the derivative instrument, as of the determination date, is reclassified. Any previous charges or credits to income for changes in the fair value of the derivative instrument are not reversed. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within twelve months of the balance sheet date. Revenue Recognition The Company recognizes revenue in accordance with the FASB ASC Section 605-10-S99, Revenue Recognition, Overall, SEC Materials ("Section 605-10-S99"). Section 605-10-S99 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. Business combinations Each investment in a business is being measured and determined whether the investment should be accounted for as a cost-basis investment, an equity investment, a business combination or a common control transaction. An investment in which the Company do not have a controlling interest and which the Company are not the primary beneficiary but where the Company have the ability to exert significant influence is accounted for under the equity method of accounting. For those investments that we account for in accordance ASC 805, Business Combinations, the Company record the assets acquired and liabilities assumed at the managements estimate of their fair values on the date of the business combination. The assessment of the estimated fair value of each of these can have a material effect on the reported results as intangible assets are amortized over various lives. Furthermore, according to ASC 805-50-30-5, when accounting for a transfer of assets or exchange of shares between entities under common control, the entity that receives the net assets or the equity interests shall initially measure the recognized assets and liabilities transferred at their carrying amounts in the accounts of the transferring entity at the date of transfer. Net Income (Loss) Per Common Share Basic loss per common share (EPS) is calculated by dividing the net loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The number of common shares that are exercisable or converted into common stock is not material to affect diluted EPS results. Further, since the Company shows losses for the periods presented basic and diluted loss per share are the same for all periods presented. Stock-Based Compensation On December 1, 2005, the Company adopted the fair value recognition provisions codified in ASC 718, Compensation-Stock Compensation. The Company adopted those provisions using the modified-prospective-transition method. Under this method, compensation cost recognized for all periods prior to December 1, 2005 includes: a) compensation cost for all share-based payments granted prior to, but not yet vested as of November 30, 2005, based on the grant-date fair value and b) compensation cost for all share-based payments granted subsequent to November 30, 2005, based on the grant-date fair value. In addition, deferred stock compensation related to non-vested options is required to be eliminated against additional paid-in capital. The results for periods prior to December 1, 2005 were not restated. The Company accounts for equity instruments issued in exchange for the receipt of goods or services from parties other than employees in accordance with ASC 505, Equity. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the counterparty. Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted the accounting standards codified in ASC 740, Income Taxes as of its inception. Pursuant to those standards, the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not that it will utilize the net operating losses carried forward in future years. ASC 740-10-25 prescribes recognition thresholds that must be met before a tax position is recognized in the financial statements and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. An entity may only recognize or continue to recognize tax positions that meet a "more likely than not" threshold. Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. The Company does not have any unrecognized tax benefits as of December 31, 2015 and 2014 that, if recognized, would affect the Company's effective income tax rate. The Company's policy is to recognize interest and penalties related to income tax issues as components of income tax expense. The Company did not recognize or have any accrual for interest and penalties relating to income taxes as of December 31, 2015 and 2014. Common Share Non-Monetary Consideration In situations where common shares are issued and the fair value of the goods or services received is not readily determinable, the fair value of the common shares is used to measure and record the transaction. The fair value of the common shares issued in exchange for the receipt of goods and services is based on the stock price as of the earliest of the date at which: i. The counterpartys performance is complete; ii. commitment for performance by the counterparty to earn the common shares is reached; or iii. the common shares are issued if they are fully vested and non-forfeitable at that date. Share Purchase Warrants The Company accounts for common share purchase warrants at fair value in accordance with ASC 815, Derivatives and Hedging. The Black-Scholes option pricing valuation method is used to determine fair value of these warrants. Use of this method requires that the Company make assumptions regarding stock volatility, dividend yields, expected term of the warrants and risk-free interest rates. Convertible Instruments The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815 Derivatives and Hedging Activities. Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Each reporting period, the Company evaluates whether convertible debt to acquire stock of the Company contain provisions that protect holders from declines in the stock price or otherwise could result in modification of the exercise price under the respective convertible debt agreements. The Company accounts for convertible instruments (when we have determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: The Company records when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. Recently and Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for transfer of promised goods or services to customers. ASU-2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The amendments in this update also require disclosure of sufficient information to allow users to understand the nature, amount, timing and uncertainty of revenue and cash flow arising from contracts. ASU-2014-09 is effective for annual and interim reporting periods beginning after December 15, 2016, using one of two retrospective application methods. Early application is not permitted. The Company is currently evaluating the effect that the adoption of ASU 2014-09 will have on the Companys consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern (Subtopic 205-40), which defines management's responsibility to evaluate whether there are conditions or events that raise substantial doubt about the entitys ability to continue as a going concern and to provide related disclosures. Currently, this evaluation has only been an auditor requirement. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period, (3) provide principles for considering the mitigating effect of managements plans, (4) require certain disclosures when substantial doubt is alleviated as a result of the consideration of managements plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that financial statements are issued. This amended guidance will be effective for us beginning January 1, 2016. The Company does not expect the adoption of this amended guidance to have a significant impact on the Companys consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03 Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-11, "Simplifying the Measurement of Inventory (Topic 330)", ("ASU 2015-11"). Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market, with market value represented by replacement cost, net realizable value or net realizable value less a normal profit margin. The amendments in ASU 2015-11 require an entity to measure inventory at the lower of cost or net realizable value. ASU 2015-11 is effective in the first quarter of fiscal year 2018 for the Company, with early adoption permitted. The Company does not expect the adoption of this guidance to have an impact on its condensed consolidated financial statements. In November 2015 the FASB issued Accounting Standards Update (ASU) 2015-17, Income Taxes (Topic 740) Related to the Balance Sheet Classification of Deferred Taxes In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-01, Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC during the current reporting period did not, or are not believed by management to have a material impact on the Companys present or future consolidated financial statements. |
DEPOSIT FOR PURCHASE OF LICENSE
DEPOSIT FOR PURCHASE OF LICENSE (JOINT VENTURE PAYMENT) | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 4 - DEPOSIT FOR PURCHASE OF LICENSE (JOINT VENTURE PAYMENT) | Gaming License and Securities Purchase Agreement On April 4, 2015, the Company instructed the escrow agent to deliver $100,000 as a deposit in good faith pursuant to the Securities Purchase Agreement dated April 4, 2015 (the SPA) and Promissory Note dated April 6, 2015 (the Note) to acquire all of the capital stock of El Mar Muerto Beauty Mineral, Sociedad Anonima (hereafter EMBM) a Honduras corporation, whose sole assets consist of a Honduras gaming license for EMBMs use, which permits the operation of Eighty (80) gaming machines in Trujillo, Eighty (80) gaming machines in La Lima, and One Hundred and Sixty (160) gaming machines in Roatan, the largest of Hondurass bay islands, for a total purchase price of $10,000,000. On September 30, 2015, the Company amended the Note and SPA to reflect a due date of April 6, 2016 in conjunction with the first payment of Nine Hundred Thousand Dollars ($900,000), which is due in either cash, stock, or 25% of the net revenues of EMBMs operations at the sellers option, and the current purchase price owed was reduced to $9,900,000, which deducts the $100,000 deposit tendered on April 4, 2015 as referenced herein. The business purpose for the amendment was to allow the Company the proper time to incorporate a Honduras corporation in compliance with the laws of the Republic of Honduras to own the securities of EMBM and effectively be able to transact business in that municipality. The good-faith non-refundable deposit permitted negotiation for a commitment at a later date, which the Company will recognize upon the effective date of April 6, 2016. First Amendment; Securities Purchase Agreement and Note On September 30, 2015, the Company amended the Note and SPA to reflect a due date of April 6, 2016 in conjunction with the first payment of Nine Hundred Thousand Dollars ($900,000), which is due in either cash, stock, or 25% of the net revenues of EMBMs operations. The Note was also amended to reflect the current purchase price owed was reduced to $9,900,000, which deducts the $100,000 non-refundable deposit tendered on April 6, 2015. The business purpose for this amendment was to allow the Company the proper time to incorporate a Honduras corporation to be in compliance with the laws of the Republic of Honduras to effectively be able to transact business in that municipality. The good-faith non-refundable deposit permitted negotiation for a commitment at a later date. Second Amendment; Securities Purchase Agreement Effective November 20, 2015, the Company signed a Second Amendment (the Amendment) to the Securities Purchase Agreement (the Agreement) with H y H Investments, S.A. (the Seller) regarding the acquisition of the gaming license whereby the Company re-assigned the Agreement to Elite Holdings S.A., a wholly owned subsidiary owned by the Company on a jointly and severally liable basis with the Company so as to comply with the regulatory authority of the Republic of Honduras. The Amendment also removed any Required Approvals on part of the Seller to enter into the Agreement. The Amendment specifies that as long as the Company is current in its payment obligations, upon good faith payment, Purchaser shall have the right to operate gaming machines permitted under the license and proceed with the use of the license as owner of EMBM with full power and authority to contract, license, sub-license, loan, lease, enter into contract or any other business venture in which entitles Purchaser to the benefit of the license on behalf of the Corporation. The Amendment also clarified that the shares of EMBM would be assigned to Elite Holdings, S.A. after the full purchase price had been tendered to the Seller. The Company will recognize the appropriate asset and liability when performance occurs on the effective date April 6, 2016. Third Amendment; Securities Purchase Agreement and Joint Venture Agreement On May 20, 2016, the Company and H Y H Investments, S.A. ("HYHI") executed the Third Amendment to the Securities Purchase Agreement (the "Third Amendment"), pursuant to which the parties agreed to further clarify and amend and restate certain provisions of the Original Purchase Agreement, First Amendment and Second Amendment (the "Original Purchase Agreement"). Pursuant to the terms of the Third Amendment, the parties mutually agreed to cancel the Original Purchase Agreement dated April 6, 2015, in exchange for a new Joint Venture Agreement (the "Joint Venture") executed on even date therewith, pursuant to which the Company and HYHI agreed to create a joint venture relationship using Elite Data Holdings S.A., a Honduras corporation, a wholly-owned subsidiary of Elite Gaming Ventures LLC, a Florida limited liability company ("EVG"), a wholly-owned subsidiary of the Company, and a distributor license from HYHI and El Mar Muerto Beauty Mineral, S.A., a Honduras corporation ("EMBM") to establish gaming operations (the "Purpose") by distributing and maintaining a total of eighty (80) slot machines in the cities of La Lima, Cortes; eighty (80) slot machines in the cities of Trujillo, Colon; and One Hundred and Sixty (160) slot machines in Roatan in the bay island of Honduras. In addition, the Company and EVG agreed to pay HYHI consideration in the total amount of USD $10,000,000 (the "Total Consideration"), including, but not limited to a convertible note, a revenue share plan, and an initial amount of $100,000, which was paid in the Original Purchase Agreement, as amended, and is the same $100,000 deposit described in this Note 4. Joint Venture Termination Agreement, Note Modification, and Assignment; Transfer of Subsidiary On or about March 14, 2017, the Company and H Y H Investments, S.A. (HYHI), a Honduras corporation executed a Joint Venture Termination Agreement (the JV Termination Agreement), in which the entire Joint Venture set forth in the original Joint Venture Agreement (the Joint Venture), dated May 20, 2016, was rendered null and void, except for the validity and enforceability of a total of Three Million Nine Hundred Thousand Dollars (US$3,900,000) represented by the first eight (8) quarterly payments of the original Amended and Restated Redeemable Note issued on or about May 20, 2016 in the amended principal amount of Four Million Nine Hundred Thousand Dollars (USD $4,900,000), in relation to the following payments: (A) two (2) separate payments of Four Hundred Fifty Thousand Dollars (USD $450,000), plus accrued interest to date, due on July 1, 2016 and October 1, 2016, respectively, for a total of Nine Hundred Thousand Dollars (USD $900,000), and payable in cash or convertible into shares of common stock of DEAC at a conversion price equal to the lesser of $0.01 per share or fifty percent (50%) to the five (5) trading day average closing price immediately preceding the payment date, and (B) the remaining balance of Four Million (USD $4,000,000) payable in cash in a total of eight (8) equal quarterly installments of Five Hundred Thousand Dollars (USD $500,000), plus accrued interest to date, on the first day of each quarter beginning with January 1, 2017 and ending on January 1, 2019, convertible into shares of common stock of DEAC at fifty percent (50%) discount to the five (5) trading day average closing price immediately preceding the payment date, and other terms more fully described in the amended note set forth in the Amended and Restate Redeemable Note, thus cancelling the final two (2) quarterly payments (seventh and eighth quarterly payments) of Five Hundred Thousand Dollars (USD $500,000) each for a reduction of One Million Dollars (UD$1,000,000) of the principal amount of the Amended and Restated Redeemable Note, pursuant to the terms of the Note Cancellation and Extinguishment Agreement (the Note Cancellation Agreement), attached as Exhibit A to the JV Termination Agreement, and any and all existing operations, including, but not limited to, all of the assets and liabilities of the Joint Venture remained in Elite Data Holdings S.A., a Honduras corporation (EDH), as a wholly-owned subsidiary of Elite Gaming Ventures LLC, a Florida limited liability company (EGV), with the ownership interest of EGV assigned and transferred to HYHI and/or its assigns as set forth in the Assignment (the Assignment), attached as Exhibit A-1 to the Note Cancellation Agreement, including other terms and conditions set forth therein. The termination of the Joint Venture resulted in Elite Gaming Ventures LLC (and, its wholly-owned subsidiary, Elite Data Holdings S.A.) no longer being a subsidiary of the Company, with no further operational effect or obligation to the Company, except for certain amounts owed by the Company under a further amendment to the Amended and Restated Redeemable Note. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
NOTE 5 - RELATED PARTY TRANSACTIONS | Myers Line of Credit (LOC) On January 13, 2014, the Company entered into an asset purchase agreement with Baker Myers and Associates, LLC (Baker Myers) to acquire certain assets including, www.classifiedride.com, an online classified listing website where private sellers can buy, sell, and trade their vehicle. Ms. Myers is the managing member and sole owner of Baker Myers, and also serves as an Officer and Director of the Company. As of September 30, 2014, pursuant to GAAP ASC 805-50-30, the carrying value of the assets was recorded to the transaction being made by a related party as $587,564 and a convertible note was amended and issued in the amount of $587,564 with an interest rate of 8% per annum. The principal amount due Sarah Myers (director and executive officer of the Company, the related party) at December 31, 2015 and 2014 was $136,960 and $139,029, respectively, represents an unsecured promissory note and addendums (Myers - LOC). These amounts are unsecured and bear interest at the rate of 12% per annum. The Myers - LOC has been amended to be due and payable on December 31, 2015. The accrued interest under the Myers - LOC as of December 31, 2015 and 2014 was $35,309 and $18,562, respectively. Sixth Amendment to Line of Credit On May 18, 2016, the Company and Sarah Myers, an individual (and also the President, Chief Operating Officer and Director of the Company) ("Myers") executed the Sixth Amendment to the Line of Credit Agreement (the "Sixth Amendment"), pursuant to which the parties mutually agreed to cancel and otherwise terminate the effectiveness of Revolving Line of Credit Agreement (the "Original LOC Agreement") dated September 1, 2013, as amended, up to a total amount of USD$50,000 for the purposes of providing Company with working capital, as needed from time to time, as set forth in the executed Promissory Note (the "Original Myers Note") dated on even date therewith, in the original amount of USD $50,000 (collectively referred to as the "Original Agreements"), whereby Myers would no longer extend any funds to the Company, pursuant to the terms of the Original Agreements, in exchange for the issuance of an amended and restated convertible redeemable note (the "Amended and Restated Note") in the principal amount of $175,000.00, at ten percent (10%) interest per annum commencing on January 1, 2016 (the "Effective Date"), due and payable to Myers by Company in seven (7) separate equal quarterly payments of Twenty-Fifty Thousand Dollars (USD $25,000), plus accrued interest to date, due on the first day of each quarter beginning on the date of the first quarter following the date of execution of this Note (each a "Maturity Date"), convertible into shares of the Company's common stock at a conversion price equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein. Baker Myers - Asset Purchase and Convertible Note- ClassifiedRide On January 13, 2014, the Company entered into an asset purchase agreement with Baker Myers and Associates, LLC (Baker Myers) to acquire certain assets including, www.classifiedride.com, an online classified listing website where private sellers can buy, sell, and trade their vehicle. Ms. Myers is the managing member and sole owner of Baker Myers, and also serves as an Officer and Director of the Company. As of December 31, 2014, pursuant to GAAP ASC 805-50-30, the transaction carrying value of the assets rather than the fair value were recorded to the transaction as it was being made by a related party. A convertible note totaling $587,564 was amended to reflect the carrying value that carries an interest rate of 8% per annum. The Maturity Date of the Note is January 13, 2017. Upon default of the Note, the interest rate increases to 10%. Pursuant to the Note, Baker Myers may convert all or any part of the outstanding and unpaid principal amount of this Note within 180 days from the date of the note into fully paid and nonassessable shares of Common Stock at the conversion price of $.05 per share with a limitation of 4.99% of the total shares of common stock of the Company outstanding. The Note also contains a $2,000 per day fee for failure to deliver common stock to the Holder upon three days delivery. At December 31, 2015, the note balance and accrued interest was $587,487 and $92,465, respectively. Baker Myers - Asset Purchase and Stock Consideration - Autoglance On January 15, 2014, the Company entered into an Agreement with Baker Myers for 51% of the membership interest of Autoglance, LLC, a Tennessee Limited Liability Company, and with it majority control over all owned assets of Autoglance, LLC, including the website www.autoglance.com (collectively Autoglance) for 765,000 shares the Companys common stock as consideration. Baker Myers Note and Share Cancellation and Exchange Agreement On May 18, 2016, the Elite Data Services, Inc. (the "Company") Company and Baker Myers and Associates LLC, a Nevada limited liability company ("Baker Myers," an entity owned by Sarah Myers, the President, Chief Operating Officer and Director of the Company ) executed a Note and Share Cancellation and Exchange Agreement (the "Share Exchange Agreement"), with respect to that certain unsecured Promissory Note (the "Original Baker Myers Note") dated on or about January 13, 2013, in the original amount of $587,500 (the "Original Amount"), pursuant to which Baker Myers agreed to forego and waive any and all right in, entitlement to or interest in (A) a total of $87,500 in principal, a total of $92,465 in accrued interest, late charges, reimbursable attorneys' fees, reimbursable expenses and any other sums due and payable under the Original Baker Myers Note totaling $179,965 (the "Cancelled Amount") as of the date of execution (the "Effective Date"), any future payments due under the Original Baker Myers Note and all or any other of Baker Myers's rights under the Cancelled Amount of the Original Baker Myers Note, thereby extinguishing and canceling the Cancelled Amount of the Original Baker Myers Note and terminating any and all of Company's obligations thereunder, (B) the Shares (hereinafter also referred to as the "Cancelled Shares") in exchange for the issuance an Option Agreement (the "Option Agreement"), registered in the Baker Myers's name to purchase up to a certain number of membership interests (the "EDM Membership Interest") of Elite Data Marketing LLC, a Florida limited liability company (the "EDM"), in an amount totaling one hundred percent (100%) of the ownership interest in EDM (the "Option 1"), (B) the issuance by Company to Baker Myers of a three-year "cashless" common stock purchase warrant (the "Warrant No. BM-1") for the right to purchase a total of 3,000,000 shares of Series B Preferred Stock of the Company (the "Preferred Warrant Shares"), at a purchase price of $0.001 per share, with certain rights and preferences as set forth in the certificate of designation (the "Certificate of Designation of Series B Preferred), in exchange for the Cancelled Shares, as referenced in the Share Exchange Agreement, and (C) the issuance of an amended and restated convertible redeemable note (the "Redeemable Note") in the aggregate principal face amount of Five Hundred Thousand Dollars (US$500,000), at ten percent (10%) interest per annum commencing on date of execution (the "Effective Date"), due and payable by the Company in eight (8) separate equal quarterly payments of Sixty-Two Thousand Five Hundred Dollars (USD $62,500), plus accrued interest to date, due on the first day of each quarter beginning on the date of the first quarter following the date of execution of this Original Baker Myers Note, convertible into shares of the Company's common stock at a conversion price equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein New Company Subsidiary - Elite Data Marketing LLC On May 20, 2016, the Company executed an Assignment of Ownership Interest with its newly formed subsidiary, Elite Data Marketing LLC, pursuant to which the Company assigned and transferred (A) a certain amount of Company's ownership interest held in www.classifiedride.com, an online classified listing website (the "ClassifiedRide"), equal to an aggregate total of one hundred percent (100%) of the ownership interest of the ClassifiedRide asset (the "ClassifiedRide Asset"), acquired by the Company from Baker Myers, on or about January 13, 2014, and (B) a certain amount of Company's ownership interest in Autoglance LLC, a Tennessee limited liability company (the "Autoglance"), equal to an aggregate total of fifty-one percent (51%) of the units of membership interest (the "Autoglance Units"), including, but not limited to, the majority control over all owned assets of Autoglance, acquired by the Company from Baker Myers, on or about January 15, 2014. Note Cancellation and Assignment; Transfer of Subsidiary On March 14, 2017, Company executed a note cancellation agreement and assignment with Baker & Myers & Associates LLC which resulted in Elite Data Marketing LLC being assigned and transferred from the Company for Baker Myers, and such entity no longer being a subsidiary of the Company, with no further operational effect or obligation to the Company. Separation and Settlement Agreement with Steven Frye On June 15, 2015, the Company entered into a Separation and Settlement Agreement Release of Claims (the Agreement) with Steven Frye, our former Chief Executive Officer, Chief Financial Officer, and President. According to the Agreement, the Company agreed to pay Mr. Frye $54,794 for services rendered in the form of 391,386 shares of Common Stock of the Company valued at $0.14 per share on the date of the Agreement. The Agreement further stated Mr. Frye would be responsible for all taxes, and Mr. Frye signed a general release of any and all claims, known or unknown, against the Company. On July 1, 2015, Mr. Frye delivered his executed paperwork to the Company. |
CONTINGENT CONSIDERATION PAYABL
CONTINGENT CONSIDERATION PAYABLE | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
NOTE 6 - CONTINGENT CONSIDERATION PAYABLE | Stock Purchase Agreement - Transformation Consulting, Inc. On February 25, 2011, the Companys wholly owned subsidiary, Dynamic Energy Alliance Corporation (hereafter DEDC) and a former director no longer associated with the Company (hereafter the Director) entered into a Stock Purchase Agreement (hereafter Agreement) and corresponding Amendments No. 1, No. 2 and No. 3, dated December 30, 2011, March 31, 2012 and September 26, 2012, respectively, by which DEDC acquired all of the outstanding shares of Transformation Consulting, Inc. (hereafter TC). The purchase price for the shares was $2,000,000, payable from the gross revenues of TC, subject to the following contingent reduction or increase of the purchase price. Pursuant to the Agreement, if TCs gross revenues during the two years following the closing were less than $2,000,000, then the purchase price for the shares would be reduced to the actual revenue received by TC during the two year period. If TCs revenues during the same two year period exceed $2,000,000, then the purchase price for the shares would be increased by one-half of the excess revenues over $2,000,000 (hereafter contingent consideration). Pursuant to the contingent consideration of $2,000,000 due to the Director from TC, all revenues generated by TC under the Agency Agreement were disbursed to the former Director. Through December 31, 2012, gross revenues under the TC Stock Purchase Agreement totaled approximately $2,000,000. Through December 31, 2013, payments, net of refunds, made to Director under the TC Stock Purchase Agreement totaled $984,638. On September 30, 2013, the former director assigned the remaining contingent consideration debt note (hereafter the Note) to Habanero Properties via an Assignment and Assumption Agreement. The Note was subsequently offset by $108,788 as payment for warrants exercised at their strike price by the former director. Habanero Properties subsequently assigned the remaining contingent consideration due and payable to Rocky Road Capital, Inc. During the year ended December 31, 2015, the Company eliminated the remaining balance due and payable by conversion of the Note at $0.10 per share. The estimated fair value of the common shares was used to measure and record the transaction with the difference between the conversion prices and estimated fair value being recorded as loss on extinguishment of debt. For the year ended December 31, 2015 and 2014, the Company recognized a net loss on extinguishment of debt as a result of the transactions of $3,589,717 and $1,361,448, respectively. Components of the contingent consideration transactions are as follows: For the Years Ended December 31, 2015 2014 Contingent consideration due $ 2,000,000 $ 2,000,000 Contingent consideration due (984,638 ) (984,638 ) Less payments, net of refunds, to Director (108,788 ) (108,788 ) Payment of exercise of warrants (906,574 ) (340,362 ) Conversion of contingent consideration to common stock $ 0 $ 566,212 |
PAYABLE - RELATED PARTY
PAYABLE - RELATED PARTY | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
NOTE 7 - PAYABLE - RELATED PARTY | Addendum to Promissory Note Stephen Frye On April 14, 2014, the Company entered into a Promissory Note dated April 15, 2014 (the Note) with Stephen Frye, former Chief Executive Officer, President, CFO, and Director of the Company, for $13,500 with interest accruing at the rate of 12% per annum with an extended due date of December 31, 2015 (Addendum One). On June 15, 2015, the Company entered into Addendum Two (Addendum Two), which allowed the conversion of $15,206 (the principal and outstanding interest due under the Note) payable in Common Stock of the Company with the price per share being the closing price of the Companys stock as of the date of the Agreement. The fair value of the closing stock price was calculated, as of June 15, 2015, at $0.14, whereby the Note and accrued interest was converted into 108,614 shares of Restricted Common Stock of the Company to pay off the Note in full. Myers Line of Credit (LOC) The amounts due under the Myers - LOC at December 31, 2015 and 2014, was $136,960 and $139,029, respectively. These amounts are unsecured and bear interest at 12% per annum. At December 31, 2015 and 2014, accrued interest on these amounts was $35,309 and $18,562, respectively. On January 13, 2014, the Company entered into an asset purchase agreement with Baker Myers and Associates, LLC (Baker Myers) to acquire certain assets including, www.classifiedride.com, an online classified listing website where private sellers can buy, sell, and trade their vehicle. Ms. Myers is the managing member and sole owner of Baker Myers, and also serves as an Officer and Director of the Company. As of September 30, 2014, pursuant to GAAP ASC 805-50-30, the carrying value of the assets was recorded to the transaction being made by a related party as $587,564 and a convertible note was amended and issued in the amount of $587,564 with an interest rate of 8% per annum. At December 31, 2015, the note balance and accrued interest was $587,564 and $92,465, respectively. |
PROMISSORY NOTE
PROMISSORY NOTE | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 8 - PROMISSORY NOTE | Tarpon Bay Partners Line of Credit In conjunction with the Equity Line as discussed in Note 15 below, the Company issued a promissory note to Tarpon Bay Partners for $50,000, due on January 31, 2016, with 10% interest per annum as consideration for transaction costs incurred by Tarpon. The $50,000 of transaction costs will be treated as a note discount under current Generally Accepted Accounting Principles and the discount will be amortized as costs related to equity financing issuances. At December 31, 2015, the note balance and accrued interest was $50,000 and $2,110, respectively, and the note discount balance was $50,000. Tarpon Bay Partners Line of Credit Termination Agreement and Convertible Note On May 24, 2016, the Company and Tarpon Bay Partners LLC ("Tarpon") executed a Termination Agreement (the "Termination Agreement"), in which the parties agreed to cancel the original Equity Purchase Agreement (the "Original Purchase Agreement"), dated July 14, 2015 (except for the original Promissory Notes (the "Original Tarpon Note") which was amended and restated as set forth below), in the original amount of USD $50,000.00, issued by the Company to Tarpon as additional compensation pursuant to Original Purchase Agreement), which gave the Company the right to issue and sell to Tarpon any of the Five Million Dollars ($5,000,000) of the Company's common stock, In exchange for the Termination Agreement, the Company agreed to (a) amend and restate the terms of the Original Tarpon Note, in the form of the issuance of an amended and restated convertible redeemable note (the "Amended Tarpon Note"), in the principal amount of $50,000.00, at ten percent (10%) interest per annum commencing on July 14, 2015 (the "Effective Date"), to be due and payable to Tarpon by Company in four (4) separate equal quarterly payments of Twelve Thousand Five Hundred Dollars (USD $12,500), plus accrued interest to date, due on the first day of each quarter beginning on July 1, 2016, convertible into shares of the Company's common stock at a conversion price equal to fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 9.99% and other terms and conditions set forth therein , and (b) execute a new Equity Purchase Agreement (the "New Purchase Agreement"), pursuant to which the Company would have the right to issue and sell to Tarpon a total of Fifteen Million Dollars ($15,000,000) of the Company's common stock, under the same terms as the Original Purchase Agreement, except for no additional compensation in lieu of the Amended Tarpon Note, to be executed on such mutually agreed upon date in the future after the Company is current on all SEC filings and is relisted on the Over-the-Counter (OTC) OTCBB and OTCQB markets. Convertible Redeemable Note for Unpaid Invoices On May 18, 2016, the Company and JMS Law Group PLLC ("JMS") executed a settlement letter (the "Settlement Letter") in which the parties agreed to settle unpaid invoices for services rendered by JMS to the Company in the amount of $20,000, and further agreed to pay JSM a total of $7,500 for continued services to the Company until July 31, 2016. Pursuant to the terms of the Settlement Letter, the Company issued to JMS a six month convertible redeemable note (the "Note") in the principal amount of USD $ 27,5 00, at a rate of ten percent (10%) per annum commencing on date of issuance , convertible into shares of the Company's common stock at a conversion price equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, and other customary and standard terms and conditions set forth therein. Termination Agreement to Definitive Agreement for the acquisition of a new subsidiary Company and Properties of Merit Inc. ("POM") are parties to that certain Definitive Agreement, dated May 20, 2016, incorporated by reference in Form 8K filed with the SEC on May 24, 2016, pursuant to which the Company agreed to acquire one hundred percent (100%)of the ownership interest in POM, in the form of three (3) separate closings with the first closing originally anticipated on or before May 27, 2016, subject to certain performance requirements of both parties prior to each closing. On July 22, 2016, Elite Data Services, Inc. (the "Company") and Properties of Merit Inc. ("POM") executed a Termination Agreement, pursuant to which the parties mutually agreed to terminate the Definitive Agreement dated May 20, 2016, incorporated by reference in Form 8K filed with the SEC on May 24, 2016, pursuant to which the Company agreed to acquire one hundred percent (100%)of the ownership interest in POM, in the form of three (3) separate closings, due to, among other reasons, certain events that occurred subsequent to the date of execution of the Definitive Agreement, including, but not limited to, the Company's inability to (i) become current in its reporting obligations with the Securities and Exchange Commission, and (ii) obtain the financings required to complete the first and subsequent closings to finance the ongoing activities of POM within a reasonable period of time. The Termination Agreement included amongst other provisions, a mutual release of each party related to any future rights and claims against the other, except that the Company is required to repay POM for advances made to Company pursuant to the executed definitive agreement in the total amount of Seventeen Thousand Five Hundred Dollars (USD $17,500.00), on the terms set forth in executed amended convertible redeemable note (the "Amended Note"), which replaces the original note set forth in the Definitive Agreement. |
RELATED PARTY CONVERTIBLE PROMI
RELATED PARTY CONVERTIBLE PROMISSORY NOTE | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 9 - RELATED PARTY CONVERTIBLE PROMISSORY NOTE | Baker Myers Convertible Note On January 13, 2014, the Company entered into an asset purchase agreement with Baker Myers and Associates, LLC (Baker Myers) to acquire certain assets including, www.classifiedride.com, an online classified listing website where private sellers can buy, sell, and trade their vehicle. Ms. Myers is the managing member and sole owner of Baker Myers, and also serves as an Officer and Director of the Company. As of September 30, 2014, a convertible note was amended and issued in the amount of $587,564 with an interest rate of 8% per annum to Baker Myers. The Maturity Date of the Note is January 13, 2017. Upon default of the Note, the interest rate increases from 8% per annum to 10% per annum. Pursuant to the terms of the Note, Baker Myers may convert all or any part of the outstanding and unpaid principal amount of this Note within 180 days from the date of the note into fully paid and nonassessable shares of Common Stock at the conversion price of $.05 per share with a trading limitation of 4.99% of the authorized common stock of the total shares outstanding. The Note also contains a $2,000 per day fee for failure to deliver common stock to the Holder upon three days delivery. The outstanding principle and accrued interest at December 31, 2015 was $587,564 and $92,465, respectively. Baker Myers Note and Share Cancellation and Exchange Agreement On May 18, 2016, the Elite Data Services, Inc. (the "Company") Company and Baker Myers and Associates LLC, a Nevada limited liability company ("Baker Myers," an entity owned by Sarah Myers, the President, Chief Operating Officer and Director of the Company ) executed a Note and Share Cancellation and Exchange Agreement (the "Share Exchange Agreement"), with respect to that certain unsecured Promissory Note (the "Original Baker Myers Note") dated on or about January 13, 2013, in the original amount of $587,500 (the "Original Amount"), pursuant to which Baker Myers agreed to forego and waive any and all right in, entitlement to or interest in (A) a total of $87,500 in principal, a total of $92,465 in accrued interest, late charges, reimbursable attorneys' fees, reimbursable expenses and any other sums due and payable under the Original Baker Myers Note totaling $179,952 (the "Cancelled Amount") as of the date of execution (the "Effective Date"), any future payments due under the Original Baker Myers Note and all or any other of Baker Myers's rights under the Cancelled Amount of the Original Baker Myers Note, thereby extinguishing and canceling the Cancelled Amount of the Original Baker Myers Note and terminating any and all of Company's obligations thereunder, (B) the Shares (hereinafter also referred to as the "Cancelled Shares") in exchange for the issuance an Option Agreement (the "Option Agreement"), registered in the Baker Myers's name to purchase up to a certain number of membership interests (the "EDM Membership Interest") of Elite Data Marketing LLC, a Florida limited liability company (the "EDM"), in an amount totaling one hundred percent (100%) of the ownership interest in EDM (the "Option 1"), (B) the issuance by Company to Baker Myers of a three-year "cashless" common stock purchase warrant (the "Warrant No. BM-1") for the right to purchase a total of 3,000,000 shares of Series B Preferred Stock of the Company (the "Preferred Warrant Shares"), at a purchase price of $0.001 per share, with certain rights and preferences as set forth in the certificate of designation (the "Certificate of Designation of Series B Preferred), in exchange for the Cancelled Shares, as referenced in the Share Exchange Agreement, and (C) the issuance of an amended and restated convertible redeemable note (the "Redeemable Note") in the aggregate principal face amount of Five Hundred Thousand Dollars (US$500,000), at ten percent (10%) interest per annum commencing on date of execution (the "Effective Date"), due and payable by the Company in eight (8) separate equal quarterly payments of Sixty-Two Thousand Five Hundred Dollars (USD $62,500), plus accrued interest to date, due on the first day of each quarter beginning on the date of the first quarter following the date of execution of this Original Baker Myers Note, convertible into shares of the Company's common stock at a conversion price equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein. Note Cancellation and Extinguishment Agreement On or about March 14, 2017, the Company and Baker & Myers & Associates LLC, a Nevada limited liability company ("Baker Myers," an entity owned by Sarah Myers, a former Secretary, Treasurer and Director of the Company) executed a Note Cancellation and Extinguishment Agreement (the Note Cancellation Agreement), pursuant to which Baker Myers (also herein referred to as Releasor) decided to exercise the entire Option Agreement for the acquisition of Elite Data Marketing LLC, a Florida limited liability company (the "EDM"), as set forth in the Share Exchange Agreement, dated May 18, 2016, in which Releasor agreed to forego and waive any and all right in, entitlement to or interest in any principal, interest, late charges, reimbursable attorneys fees, reimbursable expenses and any other sums due and payable with respect to a total of Two Hundred Thousand Dollars (US$200,000) of the final two (2) quarterly payments of the Redeemable Note dated May 18, 2016 (the Cancelled Sum), and any future payments due under the Cancelled Sum of the Redeemable Note and all or any other of Releasors rights under the Cancelled Sum of the Redeemable Note, thereby extinguishing and canceling the Cancelled Sum of the Redeemable Note and terminating any and all of Releasees obligations thereunder Cancelled Sum of the Redeemable Note, effective as of March 14, 2017 (the Effective Date), in exchange for the assignment and transfer by the Company of any and all of the issued and outstanding membership interests owned and held by Releasee representing a total of One Hundred Percent (100%) of the ownership interest of EDM to Releasor on the Effective Date (the Cancellation Transaction), pursuant to the Assignment of Membership Interests (the Assignment), attached as Exhibit A to the Note Cancellation Agreement, and including other terms and conditions set forth therein. The Cancellation Transaction and Assignment resulted in Elite Data Marketing LLC, which was created in May of 2016 to hold the assets of www.classifiedride.com originally acquired by the Company from Baker Myers, no longer being a subsidiary of the Company, with no further operational effect or obligation to the Company. Baker Myers Warrant Transfer Voting Trust On March 14, 2017, Baker Myers executed that certain Voting Trust Agreement, of which the Company approved, in which Baker Myers agreed to the assignment and transfer of the ownership interest of its stock purchase warrant (the Warrant) for the right to purchase a total of 3,000,000 shares of Series B Preferred Stock, owned and held by Baker Myers, to the Voting Trustee, which shall, thereafter, upon the completion by the Company of a reverse split of 1:1000 of its Common Stock, be simultaneously exercised and converted by the Company and Voting Trustee into a total of 30,000 of Series B Preferred Stock, and 2,970,000 shares of Common Stock, to be held by the Voting Trustee in the Voting Trust for the benefit of Baker Myers, in accordance with the terms of the Voting Trust Agreement (as described more fully herein). |
CONVERTIBLE PROMISSORY NOTES
CONVERTIBLE PROMISSORY NOTES | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
NOTE 10 - CONVERTIBLE PROMISSORY NOTES | Iconic Holdings, LLC On March 16, 2015 (the Effective Date), the Company entered into a $120,000 Convertible Note with Iconic Holdings, LLC (Iconic) with a Maturity Date of March 16, 2016. Under the terms of the Convertible Note, the Company received net proceeds of $100,000 with $10,000 being retained under an Original Issuance Discount (OID) and $10,000 having been paid to Iconic as legal fees pertaining to the transaction. The convertible debenture bears a one-time interest charge of 10% assessed on the outstanding principal not repaid as of the 181th day from the effective date. Beginning on the 181th day from the Effective Date, the Company must seek permission from Iconic to repay the outstanding balance of the Note, and Iconic will have the right to convert any unpaid sums into common stock of the Company equal to 60% of the lowest trading price of the Companys common stock during the 20 consecutive trading days prior to the conversion. During the quarter ending September 30, 2015, the Company retired the note and paid a $15,000 interest fee on the date of retirement. JSJ Investments Inc. On June 11, 2015, the Company issued a 12% Convertible Note (the JSJ Note) to JSJ Investments, Inc., (JSJ) in the principal amount of $100,000 receiving cash proceeds of $88,000 after payment of related legal and broker fees. The JSJ Note bears interest at the rate of 12% per annum, and was due December 11, 2015 (the Maturity Date). The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 Derivatives and Hedging Derivatives and Hedging LG Capital Funding, LLC On June 16, 2015, the Company issued a 6% Convertible Note (the LG Note) to LG Capital Funding, LLC (LG) in the principal amount of $52,500 receiving cash proceeds of $45,000 after payment or related legal and broker fees. The LG Note bears interest at the rate of 6% per annum and is due June 16, 2016 (the Maturity Date). The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 Derivatives and Hedging. Pursuant to ASC 815, Derivatives and Hedging. Adar Bays, LLC On June 16, 2015, the Company issued a 6% Convertible Note (the Adar Note) to Adar Bays, LLC (Adar) in the principal amount of $52,500 receiving cash proceeds of $45,000 after payment or related legal and broker fees. The Adar Note bears interest at the rate of 6% per annum and is due June 16, 2016 (the Maturity Date). The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 Derivatives and Hedging. Pursuant to ASC 815, Derivatives and Hedging. EMA Financial, LLC On July 14, 2015, (the "Note Issuance Date"), the Company entered into a Securities Purchase Agreement (the "SPA") with EMA Financial, LLC ("EMA"), whereby EMA agreed to invest $156,500 (the "Note Purchase Price") in our Company in exchange for a convertible promissory note (the "Note"). The Company netted cash proceeds $135,000 after brokerage and legal fees aggregating $21,500 was disbursed at closing. Additionally, the Company issued to EMA 100,000 shares of Common Stock of the Company as a loan fee. Pursuant to the SPA, on July 14, 2015, we issued a convertible promissory note (the "Note") to EMA, in the original principal amount of $156,500 (the "Note Purchase Price"), which bears interest at 12% per annum. All outstanding principal and accrued interest on the Note is due and payable on the maturity date, which is July 14, 2016 (the " Maturity Date"). EMA may extend the Note Maturity Date by providing written notice at least five days before the Note Maturity Date. However, EMA may only extend the Note Maturity Date for up to an additional one-year period. Any amount of principal or interest that is due under the Note, which is not paid by the Note Maturity Date, will bear interest at the rate of 24% per annum until it is paid (the "Note Default Interest"). The Note is convertible by EMA into shares of our common stock at any time on the date which is six (6) months following the Issue Date ("Prepayment Termination Date"). At any time before the Prepayment Termination Date, the Company shall have the right, exercisable on not less than five (5) Trading Days prior written notice to EMA of this Note, to prepay the outstanding balance on this Note (principal and accrued interest), in full. The conversion price is the lower of: i) the closing sale price of the Common Stock on the Principal Market on the Trading Day immediately preceding the closing date, and (ii) 60% of the lowest sale price for the Common Stock on the Principal Market during the 20 consecutive Trading Days immediately preceding the Conversion Date. EMA does not have the right to convert the Note into Common Stock if such conversion would result in EMA's beneficial ownership exceeding 4.9% of our outstanding Common Stock at that time. As of December 31, 2015, the balance outstanding on the Note was $156,500, accrued interest was $8,798 and the loan discount was $11,663. At the time of the filing of this Report, EMA has converted a total of $14,160 of principle into shares of the Companys common stock, resulting in a principle balance remaining of $142,340. Birch First Capital Fund, LLC On August 16, 2013, Birch First Capital Fund, LLC, a Delaware limited liability company, and/or Birch First Capital Management, LLC, as its manager (collectively, Birch First Capital) filed a complaint against the Company in the 15th Judicial Circuit of Florida (2013 CA 012838) alleging breach of contract under a Line of Credit Agreement (LOC) totaling $151,000. On November 18, 2013, Birch First brought a lawsuit in the 15th Judicial Circuit of Florida against Mr. Charles Cronin and Dr. Earl Beaver (former officers and directors of the Company), naming the Company as a nominal defendant. A motion to dismiss was filed by the Company concerning the derivative lawsuit. On July 23, 2015, the Company and Birch First Capital Fund LLC (Birch First Capital), a Delaware limited liability company and Birch First Advisors LLC, a Delaware limited liability company (Birch Advisors), executed a Settlement and Stipulation Agreement (the Settlement Agreement) dated July 21, 2015, pursuant to which the parties dismissed, with no liability admitted or deemed to be admitted by any party, any and all claims that have been, or could have been, raised in the outstanding litigation between the parties (the Litigation). On July 23, 2015, pursuant to the terms and conditions of the Settlement Agreement, the Company executed an amended and restated convertible debenture (the Amended and Restated Note) dated July 21, 2015 in the total amount of $300,000 bearing two percent (2%) interest per annum for a period of two years for the benefit of Birch First Capital. Pursuant to the terms of the Amended and Restated Note, $75,000 of the principal balance would be immediately converted at $0.10 per share for a total of 750,000 shares of the Companys Common Stock issued within five (5) days from the date of execution of the Settlement Agreement. The remaining $225,000 in principal and interest of the Amended and Restated Note will be convertible on a quarterly basis in the amount of $37,500 into shares of the Companys Common Stock at a share price equal to the lesser of $0.10 per share, or fifty percent (50%) of the three (3) lowest intraday trading average for the twenty (20) day trading period prior to each conversion date, until paid in full, with accrued and unpaid interested due and payable in the final payment, under certain terms and conditions set forth in the Amended and Restated Note. The Company recognized and expensed non-cash settlement fees aggregating $85,842. The original note contains an embedded conversion option and is separated from the Note and accounted for as a derivative instrument at fair value and discount to the Note. Using the Black-Scholes option pricing model, the fair market value of the of the of the embedded conversion option at inception was determined to be $472,028 with the following assumptions: risk-free rate of interest of .711%, expected life of 2.0 years, expected stock price volatility of 175.371%, and expected dividend yield of zero. The initial carrying value of the embedded conversion option was $472,028 exceeded the note and $225,000 was attributed to the note discount and $247,028 to a one day derivative loss. The parties agreed to amend certain parts of the Amended and Restated Note. As of December 31, 2015, Birch and the Company had not specified the terms of any such amendment, but, at the mutual agreement of the parties, no shares have been issued pursuant to the Amended and Restated Note. As of December 31, 2015, the balance outstanding on the Note was $225,000, accrued interest was $2,663 and the discount was $175,445. Birch Advisors, LLC On July 23, 2015, pursuant to the terms and conditions of the Settlement Agreement referenced herein, the Company executed a new Consulting and Advisory Agreement (the Agreement) dated July 21, 2015 with Birch Advisors, LLC (Consultant) for a period of twenty-four (24) months to commence upon the execution date of the signed Agreement, payable in the form of a convertible debenture (New Note) in the amount of $300,000 at two percent (2%) interest per annum for a period of two years. Pursuant to the Agreement, Consultant shall be paid $37,500 each quarter in the form of a reduction of the outstanding principal balance of the New Note, convertible into shares of the Companys Common Stock at a share price equal to the lesser of $0.10 per share or a twenty-five (25%) discount of the three (3) lowest intraday trading average for the twenty (20) day trading period prior to each conversion date, until paid in full, with accrued and unpaid interested due and payable in the final payment. The Consultant will perform advisory and consultation services to the Company, including, but not limited to, assisting Companys management with general corporate operations, business development strategies, marketing and business plans, SEC compliance and advising the Company on other ad-hoc matters as appropriate. The parties agreed that either the Company or Consultant may request a quarterly review by a designated third party reviewer, whom shall determine if the Company has the right to terminate the Agreement earlier for non-performance by the Consultant. The Agreement also contains other customary and standard provisions. The convertible note liability will be recorded as the quarterly benchmarks are reached. The original note contains an embedded conversion option and is separated from the Note and accounted for as a derivative instrument at fair value and discount to the Note. Using the Black-Scholes option pricing model, the fair market value of the of the of the embedded conversion option at inception was determined to be $84,267 with the following assumptions: risk-free rate of interest of .711%, expected life of 1.69 years, expected stock price volatility of 170.599%, and expected dividend yield of zero. The initial carrying value of the embedded conversion option was $84,267 and exceeded the note and $72,267 was attributed to the note discount and $12,000 was recorded one day derivative loss. The parties agreed to amend certain parts of the New Note that would mutually benefit each party. As of December 31, 2015, the Consultant and the Company had not specified the terms of any such amendment, but, at the request of the Consultant, no shares have been issued pursuant to the New Note. Birch completed the services during the six months for the period ended December 31, 2015, and the parties have mutually agreed to not issue the shares payable at this time. The Note payable is accrued by quarter since it depends on the services being performed. At December 31, 2015, the principal and accrued interest under the Note was $112,500, $2,663, respectively and the note discount was $87,722. The components of the convertible notes payable discussed in Note 10 at December 31, 2015 are as follows: Principal Amount Unamortized Discount Net Current portion $ 451,583 $ 194,659 $ 256,924 Convertible notes, long term portion 225,000 175,445 49,555 $ 676,583 $ 370,104 $ 306,479 First Amendment to the Settlement Agreement On May 18, 2016, the Company and Birch First Capital Fund LLC ("Birch First Capital") and Birch First Advisors LLC ("Birch Advisors") executed the First Amendment to the Settlement Agreement (the "First Amendment"), pursuant to which the parties mutually agreed to amend and restate the amended and restated convertible debenture (the "Original Amended Note") in the original amount of USD $300,000 (the "Original Amended Note Amount"), the convertible debenture (the "Original New Note") in the original amount of USD $300,000 (the "Original New Note Amount") and the original consulting agreement (the "Original Consulting Agreement") dated on or about July 23, 2015, to reflect the following: (a) the execution of an Amended and Restated Convertible Redeemable Note (the "Amended and Restated Redeemable Note No.1") in the principal amount of USD $400,000, at a rate of ten percent (10%) per annum with interest commencing on July 23, 2015, convertible into shares of the Company's common stock at a conversion price equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, and other terms and conditions set forth therein, (b) the issuance by Company to Birch First Capital a three-year "cashless" stock purchase warrant (the "Warrant No.1") for the right to purchase a total of 4,000,000 shares of Series B preferred Stock of the Company (the "Preferred Warrant Shares"), at a purchase price of $0.001 per share, on the terms and conditions set forth therein, (c) the execution of an Amended and Restated Convertible Redeemable Note (the "Amended and Restated Redeemable Note No. 2") in the principal amount of USD $300,000, at a rate of ten percent (10%) per annum commencing on July 23, 2015, convertible into shares of the Company's common stock at a conversion price equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein, (d) the execution of an Amended and Restated Consulting Agreement (the "Amended and Restated Consulting Agreement") on the terms and conditions set forth therein, including, but not limited to, for a period of twenty-four (24) months, with consideration payable to Birch Advisors and/or its assigns in cash in the amount of Ten Thousand Dollars ($10,000.00) per month, including, any and all payments set forth Amended and Restated Redeemable Note No.2, and the issuance by the Company to Birch First Advisors and/or assigns a three-year "cashless" stock purchase warrant (the "Warrant No.2") for the right to purchase up to 1,000,000 shares of common stock of the Company (the "Common Warrant Shares") each month a strike price of $0.001 per share (the "Exercise Price"), and (e) the acceptance by the Company of the execution of the Assignment of Amended and Restated Redeemable Note No.2 (hereinafter referred to as the "Assigned Note") between Birch Advisors and Birch First Capital, in which Birch Advisors agreed to assign the ownership interest of Assigned Note to Birch First Capital, on the terms and conditions set forth therein, of which the Company was not a party, however, provided consent at the request of Birch Advisors and Birch First Capital. In addition, each of the agreements contains customary representations and warranties provisions. Birch First Warrant Transfer Voting Trust On March 14, 2017, Birch First Capital Investments LLC (f/k/a Birch First Capital Fund LLC), a Delaware limited liability company (Birch First Capital) executed that certain Voting Trust Agreement, of which the Company approved, in which Birch First Capital agreed to the assignment and transfer of the ownership interest of its stock purchase warrant (the Warrant) for the right to purchase a total of 4,000,000 shares of Series B Preferred Stock, owned and held by Birch First Capital to the Voting Trustee, which shall, thereafter, upon the completion by the Company of a reverse split of 1:1000 of its Common Stock, be simultaneously exercised and converted by the Company and Voting Trustee into a total of 40,000 shares Series B Preferred Stock, and 3,960,000 shares of Common Stock, to be held by the Voting Trustee in the Voting Trust for the benefit of Birch First Capital, in accordance with the terms of the Voting Trust Agreement (as described more fully herein). |
DERIVATIVE INSTRUMENT LIABILITI
DERIVATIVE INSTRUMENT LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
NOTE 11. DERIVATIVE INSTRUMENT LIABILITIES | The fair market value of the derivative instruments liabilities at December 31, 2015, was determined to be $787,438 with the following assumptions: (1) risk free interest rate of 0.14% to 0.878%, (2) remaining contractual life of 0.01 to 1.561years, (3) expected stock price volatility of 107.16% to 322.577%, and (4) expected dividend yield of zero. Based upon the change in fair value, the Company has recorded a loss on derivative instruments for the year ended December 31, 2015, of $285,760 and a corresponding increase in the derivative instruments liability. Derivative Derivative Loss for Liability as of Liability as of year ended December 31, 2014 December 31, 2015 December 31, 2015 Warrants $ - $ 787,438 $ 787,438 Amount allocated to note discounts at inception 501,678 Loss for year ended December 31, 2015 $ 285,760 The entire amount of derivative instrument liabilities are classified as current due to the fact that settlement of the derivative instruments could be required within twelve months of the balance sheet date. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
NOTE 12 - COMMITMENTS | Stock Compensation for investor relations services On December 3, 2014, the Company entered into an Investor Relations Consulting Agreement (the Agreement) with EraStar Inc. (EraStar). Under the terms of the Agreement, the Company had the ability to challenge performance under the contract to an independent referee within certain timelines, which the Company initiated on January 21, 2015 (the Termination Date). As a result of the ruling in favor of the Company by the independent referee, the entire Agreement was cancelled. For the twelve month period ended December 31, 2015, the Company expensed $772,594 of warrant expense and stock based compensation for investor relations services. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
NOTE 13. FAIR VALUE MEASUREMENT | The Company values its derivative instruments under FASB ASC 820 which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement). The three levels of the fair value hierarchy are as follows: Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities. Level 2 - Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date. Level 3 - Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in managements best estimate of fair value. The Company's financial instruments consisted of cash, prepaid expense, deposit, accounts payable and accrued liabilities, line of credit, loan from stockholders and convertible debt. The estimated fair value of cash, prepaid expense, deposit, accounts payable and accrued liabilities, line of credit, loan from stockholders approximates its carrying amount due to the short maturity of these instruments. The recognition of the derivative values of convertible debt are based on the weighted-average Black-Scholes option pricing model, which the Companys classifies as a level three of the fair value measurement hierarchy. The derivative liabilities are measured at fair value using quoted market prices and estimated volatility factors based on historical quoted market prices for the Company's common stock, and are classified within Level 3 of the valuation hierarchy. The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2015. Level 1 Level 2 Level 3 Total Derivative Liabilities $ - $ - $ 787,438 $ 787,438 The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2014. Level 1 Level 2 Level 3 Total Derivative Liabilities $ - $ - $ - $ - As of December 31, 2015, the Company had a derivative liability amount of $787,438 which was classified as a Level 3 financial instrument. |
EQUITY INCENTIVE PLAN
EQUITY INCENTIVE PLAN | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
NOTE 14. EQUITY INCENTIVE PLAN | Effective October 15, 2015, the Company adopted the Equity Incentive Plan (the Plan) whereby the Company may issue common stock, not to exceed 25,000,000 shares of common stock of the Company (the Stock Award Stock Awards Option Options Stock ISOs Code NQSOs Pursuant to the Plan, the exercise price of stock awards or options granted under the plan which are designated as NQSOs shall not be less than 85% of the fair market value of the stock subject to the Option on the date of grant, and not less than 65% of the fair market value of the stock subject to the Stock Award on the date of grant. To the extent required by applicable laws, rules and regulations, the exercise price of a NQSO granted to any person who owns, directly or by attribution of stock possessing more than ten percent of the total combined voting power of all classes of stock of the Company or of any Subsidiary (a Ten Percent Stockholder) shall in no event be less than 110% of the fair market value of the stock covered by the Stock Award or Option at the time the Stock Award or Option is granted. Pursuant to the Plan, the exercise price of stock awards or options granted under the Plan which are designated as ISOs shall not be less than the fair market value of the stock covered by the stock award or option at the time the option is granted. The exercise price of an ISO granted to any Ten Percent Stockholder shall in no event be less than 110% of the fair market value. The fair market value is defined as the closing price of such stock on the date before the date the value is to be determined on the principal recognized securities exchange or recognized securities market on which such stock is reported. If selling prices are not reported, its fair market value shall be the mean between the high bid and low asked prices for such stock on the date before the date the value is to be determined (or if there are no quoted prices for such date, then for the last preceding business day on which there were quoted prices). If there is no established market for the stock, the fair market value will be determined in good faith by the Administer. The Administer will either be the Board of Directors or an Administer appointed by the Board of Directors. We do not have outstanding stock awards or options to purchase shares of our common stock under the Plan at December 31, 2015. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 15 - STOCKHOLDERS' EQUITY | Authorized The Company is authorized to issue 250,000,000 shares of preferred stock, having a par value of $0.0001 per share, and 500,000,000 shares of common stock, having a par value of $0.0001 per share. Effective October 15, 2015, the Company Restated its Articles of Incorporation and Bylaws, and Equity Incentive Plan increasing the total number of shares of stock of all classes which we shall have authority to issue from 60,000,000 shares to 750,000,000 shares, of which the Common Stock, $0.0001 par value per share, was increased from 50,000,000 shares to 500,000,000 shares (hereinafter called "Common Stock") and of which the Preferred Stock, $0.0001 par value per share, was increased from 10,000,000 shares to 250,000,000 shares (hereinafter called "Preferred Stock"). Equity Purchase Agreement and Registration Agreement with Tarpon Bay Partners LLC On July 14, 2015, we entered into an Equity Purchase Agreement (the Purchase Agreement or Equity Line) and Registration Rights Agreement (the Registration Agreement) with Tarpon Bay Partners LLC (Tarpon) whereby Tarpon is obligated, providing the Company has met certain conditions, including the filing of a Form S-1 Registration Statement for the shares to be acquired, to purchase up to $5,000,000 of the Companys common stock at the rates set forth in the Purchase Agreement. In conjunction with the Equity Line, the Company issued a promissory note to Tarpon for $50,000, due on January 31, 2016, with 10% interest per annum as consideration for transaction costs incurred by Tarpon. The $50,000 of transaction costs will be treated as a reduction in additional paid-in capital since the transaction costs relate to equity financing. The Purchase Agreement has a term of two-years (the "term") and may be terminated sooner by the Company or if Tarpon has purchased a total of $5,000,000 of the Company's common stock before the expiration of the term. During the term of the Purchase Agreement, the Company may at any time deliver a "Put Notice" to Tarpon thereby requiring Tarpon to purchase a certain dollar amount (the "Investment Amount") in exchange for a portion of the Shares (the "Put"), determined by an estimated amount of Shares equal to the investment amount indicated in the Put Notice divided by the closing bid price of the Company's common stock on the trading day (the "Closing Price") immediately preceding the date the Put Notice was given (the "Put Date"), multiplied by one hundred twenty-five percent (125%) (the "Estimated Put Shares"). On the trading date preceding the delivery date of such Shares, Tarpon shall deliver payment for the Shares equal to the Company's requested Investment Amount. Subject to certain restrictions, the purchase price for the Shares is equal to ninety percent (90%) of the lowest closing bid price, quoted by the exchange or principal market Company's Common Stock is traded on, on any trading day during the ten (10) trading days immediately after the date the Company delivers to Tarpon a Put Notice in writing requiring Tarpon (the "Valuation Period") to purchase the applicable number of Shares of the Company, subject to certain terms and conditions of the Purchase Agreement. In the event the number of Estimated Put Shares initially delivered to Tarpon is greater than the Put Shares purchased by Tarpon pursuant to such Put Notice, then immediately after the Valuation Period Tarpon shall deliver to the Company any excess Estimated Put Shares associated with such Put Notice. If the number of Estimated Put Shares delivered to Tarpon is less than the Put Shares purchased by Tarpon pursuant to a Put Notice, then immediately after the Valuation Period the Company shall deliver to Tarpon the difference between the Estimated Put Shares and the Put Shares issuable pursuant to such Put Notice. The number of Shares sold to Tarpon shall not exceed the number of such Shares that, when aggregated with all other shares of common stock of the Company then beneficially owned by Tarpon, would result in Tarpon owning more than 9.99% of all of the Company's common stock then outstanding. Additionally, Tarpon may not execute any short sales of the Company's common stock. Further, the Company has the right, but never the obligation to draw down on the total of $5,000,000. The Purchase Agreement also contains other customary and standard provisions. On May 24, 2016, the Company and Tarpon Bay Partners LLC ("Tarpon") executed a Termination Agreement (the "Termination Agreement"), in which the parties agreed to cancel the original Equity Purchase Agreement (the "Original Purchase Agreement"), dated July 14, 2015 (except for the original Promissory Notes (the "Original Tarpon Note") which was amended and restated as set forth below), in the original amount of USD $50,000.00, issued by the Company to Tarpon as additional compensation pursuant to Original Purchase Agreement), which gave the Company the right to issue and sell to Tarpon any of the Five Million Dollars ($5,000,000) of the Company's common stock. In exchange for the Termination Agreement, the Company agreed to: (a) amend and restate the terms of the Original Tarpon Note, in the form of the issuance of an amended and restated convertible redeemable note (the "Amended Tarpon Note"), in the principal amount of $50,000.00, at ten percent (10%) interest per annum commencing on July 14, 2015 (the "Effective Date"), to be due and payable to Tarpon by Company in four (4) separate equal quarterly payments of Twelve Thousand Five Hundred Dollars (USD $12,500), plus accrued interest to date, due on the first day of each quarter beginning on July 1, 2016, convertible into shares of the Company's common stock at a conversion price equal to fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 9.99% and other terms and conditions set forth therein , and (b) execute a new Equity Purchase Agreement (the "New Purchase Agreement"), pursuant to which the Company would have the right to issue and sell to Tarpon a total of Fifteen Million Dollars ($15,000,000) of the Company's common stock, under the same terms as the Original Purchase Agreement, except for no additional compensation in lieu of the Amended Tarpon Note, to be executed on such mutually agreed upon date in the future after the Company is current on all SEC filings and is relisted on the Over-the-Counter (OTC) OTCBB and OTCQB markets. Issued and Outstanding Preferred Stock At December 31, 2015, the Company there is no shares of preferred stock outstanding. On May 18, 2016, the Company issued a total of 2,000,000 shares of Series B Preferred Stock to two (2) separate parties in the amount of 1,000,000 shares each to Ricketts and Antol, respectively, pursuant to the executed Ricketts Subscription Agreement and Antol Subscription Agreement. The Series B Preferred shares were offered and sold to the parties in a private placement transaction in reliance upon exemptions from registration pursuant to Section 4(2) of the Securities Act of 1933, as amended. The Company based such reliance on certain representations made by each of the parties to the Company including that each of the parties were accredited investor s as defined in Rule 501 of Regulation D. Ricketts and Antol Stock Transfer Voting Trust On or about March 14, 2017, Dr. James G. Ricketts, and Stephen Antol (each a Stockholder) executed a Voting Trust Agreement, which the Company approved in advance, in which each of the Stockholder, jointly and severally, agreed to each deposit with the Voting Trustee a total of 500,000 shares of Series B Preferred Stock (for a total of 1,000,000 shares), owned and held by each of them as Stockholders, as referenced in the execution of two (2) separate assignments, which shall, thereafter, upon the completion by the Company of a reverse split of 1:1000 of its Common Stock, be converted by the Company and Voting Trustee into a total of 5,000 shares of Series B Preferred Stock each (for total of 10,000 shares), and 495,000 shares of Common Stock each (for a total totaling 990,000 shares), to be held by the Voting Trustee in the Voting Trust for the benefit of each such Stockholder, in accordance with the terms of the Voting Trust Agreement (as described more fully herein). Common Stock As of May 8, 2017, the Company had 136,518,799 shares of common stock issued and outstanding. Subsequent to our year ended December 31, 2015, and to the filing of this Report, the Company issued the following additional shares of common stock in connection with the convertible notes for the year ended December 31, 2016: The Company issued 11,923,377 shares of common stock to JSJ in satisfaction of principle reductions aggregating $6,273; The Company issued 16,964,364 shares of common stock to LG in satisfaction of principle and accrued interest reductions aggregating $7,541; The Company issued 38,880,995 shares of common stock to Adar in satisfaction of principle reductions aggregating $32,713; and The Company issued 34,768,337 shares of common stock to EMA in satisfaction of principle reductions aggregating $14,160. At December 31, 2015, the Company had 27,722,266 shares of common stock issued and outstanding. During the twelve months ended December 31, 2015, the Company issued 8,503,196 shares of common stock as follows: On January 8, 2015, the Company sold 25,000 shares of Common Stock and received net proceeds of $25,000. On January 29, 2015, the Company modified the terms of two convertible notes and entered into shares for liability settlement with a creditor on January 30, 2015, wherein an aggregate of $88,431 of debt was settled by the aggregate issuance of 88,431 shares of common stock. The estimated fair value of the common shares issued was used to measure and record the transaction with the difference between the conversion price and net fair value resulting from the debt modification was $166,580 and was recorded as a gain on extinguishment of debt. During the year ended December 31, 2015, the Company entered into a note conversion agreements with Rocky Road Capital, Inc. to convert and aggregate of $566,212 of the principal balance, which was due to a former director and subsequently assigned to Rocky Road Capital, Inc., into 5,662,120 shares of Common Stock (at $0.10 per share). The estimated fair value of the common shares issued was used to measure and record the transaction with the difference between the conversion price and fair value of $3,589,717 and was recorded as a loss on extinguishment of debt. On June 15, 2015, the Company entered into a Separation and Settlement Agreement Release of Claims (the Settlement Agreement) with Steven Frye, our former Chief Executive Officer, Chief Financial Officer, and President. According to the Settlement Agreement, the Company agreed to pay Mr. Frye $54,794 for services rendered in the form of 391,386 shares of Common Stock of the Company closing price of the Companys stock as of June 15, 2015 ($.14 per share). The Settlement Agreement further stated Mr. Frye would be responsible for all taxes and signed a general release of any and all claims, known or unknown, against the Company. On July 1, 2015, Mr. Frye delivered his executed paperwork to the Company. On June 15, 2015, the Company entered into Addendum Two (Addendum Two) of the Promissory Note dated April 15, 2014 (the Note) between the Company and Steven Frye. The Promissory Note dated April 15, 2015 was for the principle amount of $13,500 with 12% accrued interest. As of June 15, 2015, the principal and interest totaled $15,206 and was converted into 108,614 shares of Common Stock of the Company at $.14 per share, the fair value of the closing stock price calculated as of June 15, 2015. On July 1, 2015, Mr. Frye delivered his executed paperwork to the Company. On July 14, 2015, the Company issued 100,000 restricted shares of Common Stock as a loan fee in connection with the Securities Purchase Agreement and 12% Convertible Note with EMA Financial, LLC at $0.20 per share, the fair value of the closing stock price calculated as of July 14, 2015. On July 27, 2015, the Company issued 2,500 restricted shares via a notice of issuance of stock to an individual for his consulting services for the year ended December 31, 2013, at $0.10 per share, the fair value of the closing stock price calculated as of July 27, 2015. On December 15, 2015, the Company issued 1,254,199 shares to JSJ Investments, Inc. (JSJ) for a reduction in principal of $14,417.02 on their 12% convertible note. The conversion price of $0.011495 per share pursuant to the conversion terms of the note. The JSJ Note was convertible into common stock of the Company on December 11, 2015 (the Maturity Date) with the conversion rate a being 55% of the lowest trading price during the previous twenty days before the conversion noticed was submitted. On December 22, 2015, the Company issued 538,793 shares to Adar Bays, LLC (Adar) for a reduction of $5,000.00 in principal of the 6% convertible note (Adar Note) dated June 16, 2015 (Effective Date. The conversion price was $0.00928 per share. The Note is convertible into common stock of the Company six months from the Effective Date with the conversion rate being a 58% of the lowest trading price during the previous ten days before the conversion noticed was submitted. On December 29, 2015, the Company issued 333,372 shares to LG Capital Funding, LLC, (LG) equivalent to $3,000.00 in principal and $93.70 in accrued interest of the 6% convertible note (LG Note) dated June 16, 2015 (Effective Date), reducing the principal balance of $52,500 to $49,500 at a conversion price of $0.00928 per share. With a maturity date of June 16, 2016, the Note was convertible into common stock of the Company six months from the Effective Date with the conversion rate being a 58% of the lowest trading price during the previous ten days before the conversion noticed was submitted. During the year ended December 31, 2014, the Company issued 19,068,582 shares of common stock as follows: On January 13, 2014, the Company issued 14,000,000 shares of the Companys Common Stock in conjunction with its asset purchase agreement to acquire www.classifiedride.com.See further discussion at Note 1 and 4. On January 15, 2014, the Company issued 765,000 shares of the Companys Common Stock for 51% of the membership interests of Autoglance, LLC, a Tennessee Limited Liability Company. See discussion at Note 1. On May 22, 2014, the Board of Directors approved three subscription agreements aggregating $55,000 and authorized issuance of 110,000 shares of common stock pursuant to the terms of the subscription agreements. Cash proceeds of $55,000 were received in November 2013. On November 19, 2014, the Company issued 250,000 shares of the Companys Common Stock relating to a consulting contract. The shares were valued at the fair value of services to be rendered at $125,000. On December 2, 2014, the Company issued 500,000 shares of the Companys Common Stock relating to a consulting contract. The shares were valued at the fair value of services to be rendered at $250,000. On December 20, 2014, the Board of Directors approved a subscription agreement for $20,000 and authorized issuance of 40,000 shares of common stock pursuant to the terms of the subscription agreements. Cash proceeds of $20,000 was received in November 2013. During 2014, the Company entered into four note conversion agreements with Rocky Road Capital, Inc. to convert a total of $340,362 of the note balance, which was due to a former director and subsequently assigned to Rocky Road Capital, Inc., into 3,403,620 shares of Common Stock at $0.10 per share, as partial payment on the note, thereby reducing the balance owed to $566,212. The Company recognized a loss of $1,361,448 on extinguishment of the debt as a result of the transactions. Reverse Stock Split Effective October 15, 2015, the Board of Directors under their sole discretion by Board Resolution and applicable FINRA requirements may initiate a 1:1,000 Reverse Split, the number of shares of capital stock issued and outstanding will be reduced to the number of shares of capital stock issued and outstanding immediately prior to the effectiveness of a Reverse Split, divided by up to one thousand (1,000). Each fractional share shall be rounded up to the nearest whole share. There will be no change to the number of authorized shares of Common Stock and Preferred Stock as a result of a Reverse Split. With the exception of the number of shares issued and outstanding, the rights and preferences of the shares of capital stock prior and subsequent to a Reverse Split will remain the same. It is not anticipated that the Company's financial condition, the percentage ownership of management, the number of shareholders, or any aspect of the Company's business would materially change, solely as a result of a Reverse Split. Pursuant to Form 8K filed with the SEC on November 2, 2015, the Company stated that [e]ffective October 15, 2015, the Company effectuated the actions contained in this Section hereinabove. Although, the corporate action described did include the approval by the voting shareholders of a reverse stock split of up to 1 for 1,000, such effectuated action did not effect an actual (or specific) reverse split on such date, but rather provided for a future approval only. Subject to such approval, the Board of Directors were granted the right to effect a reverse split at any time during the following one year period, at a ratio (between 1 for 1,000), and on such determined effective date deemed appropriate by the Board Directors, at such time (which subsequently was determined later to be August 26, 2016). On August 26, 2016, the Board of Directors decided that it was in the best interest of the Company to approve a reverse split of the Company's Common Stock at a specified ratio of 1:1,000, as a condition of the execution of WOD Definitive Agreement, as described more fully under Subsequent Events in Item 12 herein, pursuant to the prior approval effective as of October 15, 2015, as referenced in Form 8K filed with the SEC on September 2, 2016. Further, the Company confirmed that at the effective time of the reverse stock split, all of the outstanding shares of our outstanding Common Stock were automatically converted into a smaller number of shares, at the reverse split ratio of 1:1,000, on the effective date. However, due to the fact, that on August 26, 2016, the Company was delinquent on certain required SEC quarterly filings for year ending 2016, it was determined by the Board of Directors that the effective date of the reverse stock split, could not be the same date as the approval date of August 26, 2016, and therefore, the effective date had to be postponed until such time as the Company became current as a fully reporting company. Separately, until the Company was current on its filings, the Company could not notify its shareholders about the effective date of the reverse split, which would also be subject to approval by FINRA. Therefore, the Company advises that it intends to define an effective date of the reverse stock split as soon as possible after the Company becomes current as a fully reporting company, and complete the required filing with the State of Florida, at which time notice of the effective date will be provided to the Companys shareholders under Form 8K and FINRA, as applicable. Holders of record of the Common Stock and Series B Convertible Preferred Stock at the close of business on the Record Date were entitled to participate in the written consent of our shareholders. Each share Common Stock was entitled to one vote and each share of Series B Convertible Preferred Stock was entitled to vote 1:1,000 to each share of Common Stock. Reverse Split On the effective date of the Reverse Split as determined by the Company when applicable (the Effective Date), all of the outstanding shares of our outstanding Common Stock will automatically converted into a smaller number of shares, at the reverse split ratio of 1:1,000. The Reasons for The Reverse Split The Reverse Split was intended to reduce the number of outstanding shares in an effort to increase the market value of the remaining outstanding shares. In approving the Reverse Split, the Directors considered that the Company's Common Stock may not appeal to brokerage firms that are reluctant to recommend lower priced securities to their clients. Investors may also be dissuaded from purchasing lower priced stocks because the brokerage commissions, as a percentage of the total transaction, tend to be higher for such stocks. Moreover, the analysts at many brokerage firms do not monitor the trading activity or otherwise provide coverage of lower priced stocks. The Directors also believed that most investment funds are reluctant to invest in lower priced stocks. However, the effect of the Reverse Split upon the market price for the Company's Common Stock cannot be predicted with certainty, and the history of similar stock split combinations for companies in like circumstances is varied. There can be no assurance that the market price per share of the Company's Common Stock after the Reverse Split will rise in proportion to the reduction in the number of shares of Common Stock outstanding resulting from the Reverse Split. The market price of the Company's Common Stock may also be based on its performance and other factors, some of which may be unrelated to the number of shares outstanding. Potential Risks of The Reverse Split There can be no assurance that the bid price of the Company's Common Stock will continue at a level in proportion to the reduction in the number of outstanding shares resulting from the Reverse Split, that the Reverse Split will result in a per share price that will increase its ability to attract employees and other service providers or that the market price of the post-split Common Stock can be maintained. The market price of the Company's Common Stock is also based on its financial performance, market condition, the market perception of its future prospects and the Company's industry as a whole, as well as other factors, many of which are unrelated to the number of shares outstanding. If the market price of the Company's Common Stock declines after the Reverse Split, the percentage decline as an absolute number and as a percentage of the Company's overall capitalization may be greater than would occur in the absence of a Reverse Split. Potential Effects of The Reverse Split For each holder of Common Stock, the number of shares held on the Effective Date will be reduced by the Reverse Split as follows: the number of shares held before the Reverse Split will be divided by 1,000, and if the result had a fractional component, the result is that cash will be given in lieu of any fractional shares. By way of example, a shareholder with 100,000 shares of Common Stock before the Reverse Split will hold 100 shares of Common Stock upon completion of the Reverse Split and will receive cash in lieu of the fractional remaining share. The issuance of cash in lieu of fractional shares will effect a small change in the relative percent ownership of the respective common shareholders. This change is not expected to be material. Accounting Matters Effect on Authorized and Outstanding Shares With the exception of the number of shares issued and outstanding, the rights and preferences of the shares of capital stock prior and subsequent to the Reverse Split will remain the same. It is not anticipated that the Company's financial condition, the percentage ownership of management, the number of shareholders, or any aspect of the Company's business would materially change, solely as a result of the Reverse Split. The Reverse Split will be effectuated simultaneously for all of the Company's Common Stock and the exchange ratio was the same for all shares of the Company's Common Stock. The Reverse Split will affected all of our shareholders uniformly and will not affect any shareholder's percentage ownership interests in the Company or proportionate voting power, except to the extent caused by the exchange of cash in lieu of fractional shares. The Reverse Split will not alter the respective voting rights and other rights of shareholders. The Reverse Split was not intended as, and will not have the effect of, a "going private transaction" covered by Rule 13e-3 under the Exchange Act. As a result of the Reverse Split, there was a reduction in the number of shares of Common Stock issued and outstanding and no change to the number of authorized shares of the Companys Common Stock under the Companys Articles of Incorporation, as amended. Because the number of issued and outstanding shares of Common Stock decreased, the number of shares of Common Stock remaining available for issuance in the future increased. Effectiveness of The Reverse Split Exchange of Certificates After Split Tax Impact of the Reverse Split The receipt of the Common Stock following the effective date of the Reverse Split, solely in exchange for the Common Stock held prior to the Reverse Split, will not generally result in recognition of a gain or loss to the shareholders. Although the issue is not free from doubt, additional shares received in lieu of fractional shares, including shares received as a result of the rounding up of fractional ownership, should be treated in the same manner. The adjusted tax basis of a shareholder in the Common Stock received after the Reverse Split will be the same as the adjusted tax basis of the Common Stock held prior to the Reverse Split exchanged therefor, and the holding period of the Common Stock received after the Reverse Split will include the holding period of the Common Stock held prior to the Reverse Split exchanged therefor. No gain or loss will be recognized by the Company as a result of the Reverse Split. The Company's views regarding the tax consequences of the Reverse Split are not binding upon the Internal Revenue Service or the courts, and there can be no assurance that the Internal Revenue Service or the courts would accept the positions expressed above. THIS SUMMARY IS NOT INTENDED AS TAX ADVICE TO ANY PARTICULAR PERSON. IN PARTICULAR, AND WITHOUT LIMITING THE FOREGOING, THIS SUMMARY ASSUMES THAT THE SHARES OF COMMON STOCK ARE HELD AS "CAPITAL ASSETS" AS DEFINED IN THE CODE, AND DOES NOT CONSIDER THE FEDERAL INCOME TAX CONSEQUENCES TO THE COMPANY'S SHAREHOLDERS IN LIGHT OF THEIR INDIVIDUAL INVESTMENT CIRCUMSTANCES OR TO HOLDERS WHO MAY BE SUBJECT TO SPECIAL TREATMENT UNDER THE FEDERAL INCOME TAX LAWS (SUCH AS DEALERS IN SECURITIES, INSURANCE COMPANIES, FOREIGN INDIVIDUALS AND ENTITIES, FINANCIAL INSTITUTIONS AND TAX EXEMPT ENTITIES). IN ADDITION, THIS SUMMARY DOES NOT ADDRESS ANY CONSEQUENCES OF THE REVERSE SPLIT UNDER ANY STATE, LOCAL OR FOREIGN TAX LAWS. THE STATE AND LOCAL TAX CONSEQUENCES OF THE REVERS SPLIT MAY VARY AS TO EACH STOCKHOLDER DEPENDING ON THE STATE IN WHICH SUCH STOCKHOLDER RESIDES. AS A RESULT, IT IS THE RESPONSIBILITY OF EACH SHAREHOLDER TO OBTAIN AND RELY ON ADVICE FROM HIS, HER OR ITS TAX ADVISOR AS TO, BUT NOT LIMITED TO, THE FOLLOWING: (A) THE EFFECT ON HIS, HER OR ITS TAX SITUATION OF THE REVERSE SPLIT, INCLUDING, BUT NOT LIMITED TO, THE APPLICATION AND EFFECT OF STATE, LOCAL AND FOREIGN INCOME AND OTHER TAX LAWS; (B) THE EFFECT OF POSSIBLE FUTURE LEGISLATION OR REGULATIONS; AND (C) THE REPORTING OF INFORMATION REQUIRED IN CONNECTION WITH THE REVERSE SPLIT ON HIS, HER OR ITS OWN TAX RETURNS. IT WILL BE THE RESPONSIBILITY OF EACH SHAREHOLDER TO PREPARE AND FILE ALL APPROPRIATE FEDERAL, STATE AND LOCAL TAX RETURNS. Share Certificates Following the Reverse Split, the share certificates held will continue to be valid. In the future, new share certificates will reflect the reverse split, but this in no way will affect the validity of current share certificates. Warrants Issued for Services As of December 31, 2015, and 2014, warrants outstanding were 2,307 and 1,002,307, respectively. The Company issued no warrants in the twelve months ending December 31, 2015. On December 3, 2014, pursuant to the terms of a one-year consulting contract, the Company issued a warrant for the purchase of 1,000,000 shares of common stock with a strike price of $2.00, exercisable immediately through December 1, 2015. Using the Black-Scholes option pricing model, the fair market value of the warrants at the time of the issuance was determined to be $522,684. The warrants were valued using the following significant assumptions: (1) a risk free interest rate of 0.14%, (2) expected life of 1.0 year, (3) expected stock price volatility of 92.083%, and (4) expected dividend yield of zero. The amount will be expensed over the life of the contract and $41,528 was expensed as stock compensation during the year ended December 31, 2014, and $481,156 was expensed over the remaining life of the contract. On January 2, 2014, the Company issued a warrant for the purchase of 769 shares of common stock to an independent contractor (Contractor), per a January 1, 2012 four year Stock Purchase Warrant Agreement that gives the Contractor the right to purchase 769 shares of common stock at an exercise price of $390.00 a share, as consideration for services rendered per an Independent Contractor Agreement with the Company. Based on the January 2, 2012, Stock Purchase Warrant, the warrant will expire on January 1, 2016. The fair value of the issued warrant is $-0-, based on Black-Scholes option-pricing model using risk free interest rate of 0.389%, expected life of 2 years and expected volatility of 0.00%. The following table summarizes the warrant activity for the years ended December 31, 2015 and 2014: Warrants Outstanding Weighted Average Number of Exercise Shares Price Balance, December 31, 2013 1,538 $ 195.00 Granted 1,000,769 $ 2.29 Exercised - - Expired/Cancelled - - Balance, December 31, 2014 1,002,307 $ 259 Granted - $ - Exercised - - Expired/Cancelled (1,000,000 ) (2 ) Balance, December 31, 2015 2,307 $ 260 Exercisable at December 31, 2015 2,307 $ 260 The weighted average exercise price and remaining weighted average life of the warrants outstanding at December 31, 2015 were $260 and .003 years, respectively. The aggregate intrinsic value of the outstanding warrants at December 31, 2015 was $0. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 16 - ACQUISITION | Gaming License and Securities Purchase Agreement On April 4, 2015, the Company entered into a Securities Purchase Agreement (the Agreement) and Promissory Note (the Note) with H Y H Investments, S.A. (the Seller) for the purchase of all outstanding securities of El Muerto Beauty Mineral, Sociedad Anonima (hereafter EMBM) whose sole asset consists of a license to operate 80 gaming machines in two cities on the Honduras mainland and 160 gaming machines in Roatan, the largest of the bay islands of Honduras. The total purchase price for the acquisition was Ten Million Dollars ($10,000,000) payable in the form of a Promissory Note (the Note). Upon the signing of the Agreement and Note, the $100,000 funds in escrow were paid to the Seller under the terms of the Note. The Company owes no further obligation under the terms of the Note until April 6, 2016, at which time $900,000 is due to the Seller, payable in the form of cash or shares of common stock of the Company at the average closing price of the common stock of the Company for the five trading days immediately preceding April 6, 2016. The remaining balance under the Note is payable up to $2,500,000 per year thereafter through March 31, 2021 by either cash payments or by a revenue-share of 25% of the net revenues received by EMBM during such time period. In the event that Seller has not received the full amount due on or before March 31, 2021, such amount due may be payable via the issuance of the Companys shares of common stock at the average closing price of the Companys common stock for the five trading days immediately preceding March 31, 2021. Beginning on or after April 17, 2017, payments tendered in the form of Company common stock may be repurchased by the Company given the Sellers approval with the purchase price being the value of the shares at the corresponding payment date. The Company is not obligated to re-purchase the shares. The Seller agreed to waive interest payments of 3.85% per annum, due in monthly installments, in exchange for a sub-license granting the Seller usage of twenty-five (25) machines in the municipality of Roatan. First Amendment; Securities Purchase Agreement and Note On September 30, 2015, the Company amended the Note and SPA to reflect a due date of April 6, 2016 in conjunction with the first payment of Nine Hundred Thousand Dollars ($900,000), which is due in either cash, stock, or 25% of the net revenues of EMBMs operations. The Note was also amended to reflect the current purchase price owed was reduced to $9,900,000, which deducts the $100,000 non-refundable deposit tendered on April 6, 2015. The business purpose for this amendment was to allow the Company the proper time to incorporate a Honduras corporation to be in compliance with the laws of the Republic of Honduras to effectively be able to transact business in that municipality. The good-faith non-refundable deposit permitted negotiation for a commitment at a later date. Second Amendment; Securities Purchase Agreement Effective November 20, 2015, the Company signed a Second Amendment (the Amendment) to the Securities Purchase Agreement (the Agreement) with H y H Investments, S.A. (the Seller) regarding the acquisition of the gaming license whereby the Company re-assigned the Agreement to Elite Holdings S.A., a wholly owned subsidiary owned by the Company on a jointly and severally liable basis with the Company so as to comply with the regulatory authority of the Republic of Honduras. The Amendment also removed any Required Approvals on part of the Seller to enter into the Agreement. The Amendment specifies that as long as the Company is current in its payment obligations, upon good faith payment, Purchaser shall have the right to operate gaming machines permitted under the license and proceed with the use of the license as owner of EMBM with full power and authority to contract, license, sub-license, loan, lease, enter into contract or any other business venture in which entitles Purchaser to the benefit of the license on behalf of the Corporation. The Amendment also clarified that the shares of EMBM would be assigned to Elite Holdings, S.A. after the full purchase price had been tendered to the Seller. The Company will recognize the appropriate asset and liability when performance occurs on the effective date April 6, 2016. Third Amendment; Securities Purchase Agreement and Joint Venture Agreement On May 20, 2016, the Company and H Y H Investments, S.A. ("HYHI") executed the Third Amendment to the Securities Purchase Agreement (the "Third Amendment"), pursuant to which the parties agreed to further clarify and amend and restate certain provisions of the Original Purchase Agreement, First Amendment and Second Amendment (the "Original Purchase Agreement"). Pursuant to the terms of the Third Amendment, the parties mutually agreed to cancel the Original Purchase Agreement dated April 6, 2015, in exchange for a new Joint Venture Agreement (the "Joint Venture") executed on even date therewith, pursuant to which the Company and HYHI agreed to create a joint venture relationship using Elite Data Holdings S.A., a Honduras corporation, a wholly-owned subsidiary of Elite Gaming Ventures LLC, a Florida limited liability company ("EVG"), a wholly-owned subsidiary of the Company, and a distributor license from HYHI and El Mar Muerto Beauty Mineral, S.A., a Honduras corporation ("EMBM") to establish gaming operations (the "Purpose") by distributing and maintaining a total of eighty (80) slot machines in the cities of La Lima, Cortes; eighty (80) slot machines in the cities of Trujillo, Colon; and One Hundred and Sixty (160) slot machines in Roatan in the bay island of Honduras. Pursuant to the terms of the Joint Venture, HYHI agreed to effect the distributor license (the "License") related to the Purpose, provided that the Company and EVG would be responsible for providing any and all financial and operational resources required to execute on the License granted to the Company, including, but not limited to, the funding for the initial and ongoing operating costs in the minimum amount of Five Hundred Thousand Dollars (USD $500,000) on or before December 31, 2016 (the "Initial Funding"). In addition, the Company and EVG agreed to pay HYHI consideration in the total amount of USD $10,000,000 (the "Total Consideration"), due and payable as follows: (a) Initial Payment. (b) Convertible Note. (c) Revenue Share Plan. The Joint Venture also included the option of the Company and EVG to acquire the ownership of EMBM and License directly, within thirty (30) days of the date payment in full of the Total Consideration is made to HYHI pursuant to the Agreement, at which time, EVG and Company would have the right to exercise an option (the "Option") to acquire one hundred percent (100%) of EMBM, including, but not limited to, any and all assets (e.g. gaming licenses, etc.), and liabilities required to continue the gaming operation set forth by the Joint Venture, for a purchase price of (USD $10.00) (the "Option Payment"), paid by the Company to HYHI. Upon receipt by HYHI of a written notice to exercise the Option and the Option Payment from EVG or Company, HYHI would execute any and all documents necessary to effect the assignment and transfer (the "EMBM Assignment") of one hundred percent (100%) of EMBM, including, but not limited to, any and all assets and liabilities required to continue the gaming operation set forth by the Joint Venture, to the Company, free of any encumbrances, liens, or other third party claims related to the DEAC and EGV, except for the obligations incurred from and remaining in the Joint Venture after the Assignment. In the event of a termination, or if the Company is unable to provide the Initial Funding when due, or for a period not to exceed ninety (90) days in each monthly instance, the financial and operational resources needed to maintain the operations of the Company for its intended Purpose in an amount not less than Twenty-Five Dollars (USD $25,000) per month, less any revenues generated during such period, HYHI shall have the right to cancel the Joint Venture in writing, thus terminating any further obligations of the parties to this Agreement (the "Termination"), including the cancellation of any further Minimum Licensing Fee Payments and the combined total of any outstanding amounts owed by DEAC, in excess of One Million Dollars (USD$1,000,000.00), on the Amended and Restated Redeemable Note and all other Licensing Redeemable Notes, issued to HYHI which have not been converted, or otherwise assigned, sold or transferred by HYHI to one or more other parties prior to such Termination date. Joint Venture Termination Agreement, Note Modification, and Assignment; Transfer of Subsidiary On or about March 14, 2017, the Company and H Y H Investments, S.A. (HYHI), a Honduras corporation executed a Joint Venture Termination Agreement (the JV Termination Agreement), in which the entire Joint Venture set forth in the original Joint Venture Agreement (the Joint Venture), dated May 20, 2016, was rendered null and void, except for the validity and enforceability of a total of Three Million Nine Hundred Thousand Dollars (US$3,900,000) represented by the first eight (8) quarterly payments of the original Amended and Restated Redeemable Note issued on or about May 20, 2016 in the amended principal amount of Four Million Nine Hundred Thousand Dollars (USD $4,900,000), in relation to the following payments: (A) two (2) separate payments of Four Hundred Fifty Thousand Dollars (USD $450,000), plus accrued interest to date, due on July 1, 2016 and October 1, 2016, respectively, for a total of Nine Hundred Thousand Dollars (USD $900,000), and payable in cash or convertible into shares of common stock of DEAC at a conversion price equal to the lesser of $0.01 per share or fifty percent (50%) to the five (5) trading day average closing price immediately preceding the payment date, and (B) the remaining balance of Four Million (USD $4,000,000) payable in cash in a total of eight (8) equal quarterly installments of Five Hundred Thousand Dollars (USD $500,000), plus accrued interest to date, on the first day of each quarter beginning with January 1, 2017 and ending on January 1, 2019, convertible into shares of common stock of DEAC at fifty percent (50%) discount to the five (5) trading day average closing price immediately preceding the payment date, and other terms more fully described in the amended note set forth in the Amended and Restate Redeemable Note, thus cancelling the final two (2) quarterly payments (seventh and eighth quarterly payments) of Five Hundred Thousand Dollars (USD $500,000) each for a reduction of One Million Dollars (UD$1,000,000) of the principal amount of the Amended and Restated Redeemable Note, pursuant to the terms of the Note Cancellation and Extinguishment Agreement (the Note Cancellation Agreement), attached as Exhibit A to the JV Termination Agreement, and any and all existing operations, including, but not limited to, all of the assets and liabilities of the Joint Venture remained in Elite Data Holdings S.A., a Honduras corporation (EDH), as a wholly-owned subsidiary of Elite Gaming Ventures LLC, a Florida limited liability company (EGV), with the ownership interest of EGV assigned and transferred to HYHI and/or its assigns as set forth in the Assignment (the Assignment), attached as Exhibit A-1 to the Note Cancellation Agreement, including other terms and conditions set forth therein. The termination of the Joint Venture resulted in Elite Gaming Ventures LLC (and, its wholly-owned subsidiary, Elite Data Holdings S.A.) no longer being a subsidiary of the Company, with no further operational effect or obligation to the Company, except for certain amounts owed by the Company under a further amendment to the Amended and Restated Redeemable Note. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
NOTE 17. INCOME TAXES | Potential benefits of income tax losses and other tax assets are not recognized in the accounts until realization is more likely than not. As of December 31, 2015, the Company has operating loss carry forwards of approximately $2,639,581 for tax purposes in various jurisdictions subject to expiration as described below. Pursuant to ASC 740, Income Taxes The actual income tax provisions differ from the expected amounts calculated by applying the combined income tax statutory rates applicable in each jurisdiction to the Companys loss before income taxes and non-controlling interest. The calculated tax deferred benefit at December 31, 2015 and 2014 is based on the current Federal statutory income tax rate of 35% applied to the loss before provision for income taxes. The following table accounts for the differences between the actual income tax benefit and amounts computed for the years ended December 31, 2015 and 2014: Years Ended December 31, 2015 2014 Tax benefit at the federal statutory rate $ 1,764,435 $ (825,113 ) Non deductible costs (1,433,571 ) 800,416 Increase in valuation allowance (330,864 ) 24,697 Income tax expense $ - $ - The components of the deferred tax asset and deferred tax liability at December 31, 2015 and 2014 are as follows: December 31, 2015 2014 Deferred tax assets $ 902,638 $ 571,774 Valuation allowance (902,638 ) (571,774 ) Net deferred tax asset after valuation allowance $ - $ - A valuation allowance has been provided to reduce the net deferred tax asset, as management determined that it is more likely than not that the deferred tax assets will not be realized. At December 31, 2015, the Company has approximately net operating loss carry forward for United States income tax purposes approximating $$2,639,581. These losses expire in varying amounts between December 31, 2022 and September 30, 2035. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
NOTE 18 - SUBSEQUENT EVENTS | Subsequent to our year ended December 31, 2015, and to the date of filing of this Report, the Company issued the following additional shares of common stock in connection with the convertible notes: The Company issued 11,923,377 shares of common stock to JSJ in satisfaction of principle reductions aggregating $6,273; The Company issued 16,964,364 shares of common stock to LG in satisfaction of principle and accrued interest reductions aggregating $7,541; The Company issued 11,923,377 shares of common stock to Adar in satisfaction of principle reductions aggregating $32,713; and The Company issued 29,554,020 shares of common stock to EMA in satisfaction of principle reductions aggregating $14,160. Note and Share Cancellation and Exchange Agreement On May 18, 2016, the Elite Data Services, Inc. (the "Company") Company and Baker Myers and Associates LLC, a Nevada limited liability company ("Baker Myers," an entity owned by Sarah Myers, the President, Chief Operating Officer and Director of the Company ) executed a Note and Share Cancellation and Exchange Agreement (the "Share Exchange Agreement"), with respect to that certain unsecured Promissory Note (the "Original Baker Myers Note") dated on or about January 13, 2013, in the original amount of $587,500 (the "Original Amount"), pursuant to which Baker Myers agreed to forego and waive any and all right in, entitlement to or interest in (A) a total of $87,500 in principal, a total of $92,465 in accrued interest, late charges, reimbursable attorneys' fees, reimbursable expenses and any other sums due and payable under the Original Baker Myers Note totaling $179,952 (the "Cancelled Amount") as of the date of execution (the "Effective Date"), any future payments due under the Original Baker Myers Note and all or any other of Baker Myers's rights under the Cancelled Amount of the Original Baker Myers Note, thereby extinguishing and canceling the Cancelled Amount of the Original Baker Myers Note and terminating any and all of Company's obligations thereunder, (B) the Shares (hereinafter also referred to as the "Cancelled Shares") in exchange for the issuance an Option Agreement (the "Option Agreement"), registered in the Baker Myers's name to purchase up to a certain number of membership interests (the "EDM Membership Interest") of Elite Data Marketing LLC, a Florida limited liability company (the "EDM"), in an amount totaling one hundred percent (100%) of the ownership interest in EDM (the "Option 1"), (B) the issuance by Company to Baker Myers of a three-year "cashless" common stock purchase warrant (the "Warrant No. BM-1") for the right to purchase a total of 3,000,000 shares of Series B Preferred Stock of the Company (the "Preferred Warrant Shares"), at a purchase price of $0.001 per share, with certain rights and preferences as set forth in the certificate of designation (the "Certificate of Designation of Series B Preferred), in exchange for the Cancelled Shares, as referenced in the Share Exchange Agreement, and (C) the issuance of an amended and restated convertible redeemable note (the "Redeemable Note") in the aggregate principal face amount of Five Hundred Thousand Dollars (US$500,000), at ten percent (10%) interest per annum commencing on date of execution (the "Effective Date"), due and payable by the Company in eight (8) separate equal quarterly payments of Sixty-Two Thousand Five Hundred Dollars (USD $62,500), plus accrued interest to date, due on the first day of each quarter beginning on the date of the first quarter following the date of execution of this Original Baker Myers Note, convertible into shares of the Company's common stock at a conversion price equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein. Note Cancellation and Extinguishment Agreement On or about March 14, 2017, the Company and Baker & Myers & Associates LLC, a Nevada limited liability company ("Baker Myers," an entity owned by Sarah Myers, a former Secretary, Treasurer and Director of the Company) executed a Note Cancellation and Extinguishment Agreement (the Note Cancellation Agreement), pursuant to which Baker Myers (also herein referred to as Releasor) decided to exercise the entire Option Agreement for the acquisition of Elite Data Marketing LLC, a Florida limited liability company (the "EDM"), as set forth in the Share Exchange Agreement, dated May 18, 2016, in which Releasor agreed to forego and waive any and all right in, entitlement to or interest in any principal, interest, late charges, reimbursable attorneys fees, reimbursable expenses and any other sums due and payable with respect to a total of Two Hundred Thousand Dollars (US$200,000) of the final two (2) quarterly payments of the Redeemable Note dated May 18, 2016 (the Cancelled Sum), and any future payments due under the Cancelled Sum of the Redeemable Note and all or any other of Releasors rights under the Cancelled Sum of the Redeemable Note, thereby extinguishing and canceling the Cancelled Sum of the Redeemable Note and terminating any and all of Releasees obligations thereunder Cancelled Sum of the Redeemable Note, effective as of March 14, 2017 (the Effective Date), in exchange for the assignment and transfer by the Company of any and all of the issued and outstanding membership interests owned and held by Releasee representing a total of One Hundred Percent (100%) of the ownership interest of EDM to Releasor on the Effective Date (the Cancellation Transaction), pursuant to the Assignment of Membership Interests (the Assignment), attached as Exhibit A to the Note Cancellation Agreement, and including other terms and conditions set forth therein. The Cancellation Transaction and Assignment resulted in Elite Data Marketing LLC, which was created in May of 2016 to hold the assets of www.classifiedride.com originally acquired by the Company from Baker Myers, no longer being a subsidiary of the Company, with no further operational effect or obligation to the Company. Baker Myers Warrant Transfer Voting Trust On March 14, 2017, Baker Myers executed that certain Voting Trust Agreement, of which the Company approved, in which Baker Myers agreed to the assignment and transfer of the ownership interest of its stock purchase warrant (the Warrant) for the right to purchase a total of 3,000,000 shares of Series B Preferred Stock, owned and held by Baker Myers, to the Voting Trustee, which shall, thereafter, upon the completion by the Company of a reverse split of 1:1000 of its Common Stock, be simultaneously exercised and converted by the Company and Voting Trustee into a total of 30,000 of Series B Preferred Stock, and 2,970,000 shares of Common Stock, to be held by the Voting Trustee in the Voting Trust for the benefit of Baker Myers, in accordance with the terms of the Voting Trust Agreement (as described more fully herein). Sixth Amendment to Line of Credit On May 18, 2016, the Company and Sarah Myers, an individual (and also the President, Chief Operating Officer and Director of the Company) ("Myers") executed the Sixth Amendment to the Line of Credit Agreement (the "Sixth Amendment"), pursuant to which the parties mutually agreed to cancel and otherwise terminate the effectiveness of Revolving Line of Credit Agreement (the "Original LOC Agreement") dated September 1, 2013, as amended, up to a total amount of USD$50,000 for the purposes of providing Company with working capital, as needed from time to time, as set forth in the executed Promissory Note (the "Original Myers Note") dated on even date therewith, in the original amount of USD $50,000 (collectively referred to as the "Original Agreements"), whereby Myers would no longer extend any funds to the Company, pursuant to the terms of the Original Agreements, in exchange for the issuance of an amended and restated convertible redeemable note (the "Amended and Restated Note") in the principal amount of $175,000.00, at ten percent (10%) interest per annum commencing on January 1, 2016 (the "Effective Date"), due and payable to Myers by Company in seven (7) separate equal quarterly payments of Twenty-Fifty Thousand Dollars (USD $25,000), plus accrued interest to date, due on the first day of each quarter beginning on the date of the first quarter following the date of execution of this Note (each a "Maturity Date"), convertible into shares of the Company's common stock at a conversion price equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein. First Amendment to Settlement Agreement On May 18, 2016, the Company and Birch First Capital Fund LLC ("Birch First Capital") and Birch First Advisors LLC ("Birch Advisors") executed the First Amendment to the Settlement Agreement (the "First Amendment"), pursuant to which the parties mutually agreed to amend and restate the amended and restated convertible debenture (the "Original Amended Note") in the original amount of USD $300,000 (the "Original Amended Note Amount"), the convertible debenture (the "Original New Note") in the original amount of USD $300,000 (the "Original New Note Amount") and the original consulting agreement (the "Original Consulting Agreement") dated on or about July 23, 2015, to reflect the following: (a) the execution of an Amended and Restated Convertible Redeemable Note (the "Amended and Restated Redeemable Note No.1") in the principal amount of USD $400,000, at a rate of ten percent (10%) per annum commencing on July 23, 2015, convertible into shares of the Company's common stock at a conversion price equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, and other terms and conditions set forth therein, (b) the issuance by Company to Birch First Capital a three-year "cashless" stock purchase warrant (the "Warrant No.1") for the right to purchase a total of 4,000,000 shares of Series B preferred Stock of the Company (the "Preferred Warrant Shares"), at a purchase price of $0.001 per share, on the terms and conditions set forth therein, (c) the execution of an Amended and Restated Convertible Redeemable Note (the "Amended and Restated Redeemable Note No. 2") in the principal amount of USD $300,000, at a rate of ten percent (10%) per annum commencing on July 23, 2015, convertible into shares of the Company's common stock at a conversion price equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein, (d) the execution of an Amended and Restated Consulting Agreement (the "Amended and Restated Consulting Agreement") on the terms and conditions set forth therein, including, but not limited to, for a period of twenty-four (24) months, with consideration payable to Birch Advisors and/or its assigns in cash in the amount of Ten Thousand Dollars ($10,000.00) per month, including, any and all payments set forth Amended and Restated Redeemable Note No.2, and the issuance by the Company to Birch First Advisors and/or assigns a three-year "cashless" stock purchase warrant (the "Warrant No.2") for the right to purchase up to 1,000,000 shares of common stock of the Company (the "Common Warrant Shares") each month a strike price of $0.001 per share (the "Exercise Price"), and (e) the acceptance by the Company of the execution of the Assignment of Amended and Restated Redeemable Note No.2 (hereinafter referred to as the "Assigned Note") between Birch Advisors and Birch First Capital, in which Birch Advisors agreed to assign the ownership interest of Assigned Note to Birch First Capital, on the terms and conditions set forth therein, of which the Company was not a party, however, provided consent at the request of Birch Advisors and Birch First Capital. Birch First Warrant Transfer Voting Trust On March 14, 2017, Birch First Capital Investments LLC (f/k/a Birch First Capital Fund LLC), a Delaware limited liability company (Birch First Capital) executed that certain Voting Trust Agreement, of which the Company approved, in which Birch First Capital agreed to the assignment and transfer of the ownership interest of its stock purchase warrant (the Warrant) for the right to purchase a total of 4,000,000 shares of Series B Preferred Stock, owned and held by Birch First Capital to the Voting Trustee, which shall, thereafter, upon the completion by the Company of a reverse split of 1:1000 of its Common Stock, be simultaneously exercised and converted by the Company and Voting Trustee into a total of 40,000 shares Series B Preferred Stock, and 3,960,000 shares of Common Stock, to be held by the Voting Trustee in the Voting Trust for the benefit of Birch First Capital, in accordance with the terms of the Voting Trust Agreement (as described more fully herein). Contractor Agreements On May 18, 2016, the Company and Dr. James G. Ricketts, an individual (and also the Chairman and VP of Investor Relations of the Company) (the "Ricketts") executed an Agreement (the "Ricketts Agreement") for the continued engagement of Ricketts for his continued services to the Company and for such other services, as deemed necessary by the Board of Directors, from time to time, for a period of one year from the date of execution, and renewal for three (3) successive one (1) year terms unless terminated early. The Company agreed to compensate Ricketts in the form of (a) a total of $5,000 per month for the first year, and $10,000 per month for subsequent terms, payable in cash or converted into restricted common stock of the Company, at Ricketts discretion, pursuant to the Company's Stock Option Plan then in effect, (b) the right to participate in future stock options then in effect, and (c) a grant of a total of One Million (1,000,000) shares of Series B Preferred Stock at a per share price of $0.0001, as an inducement to enter into the Ricketts Consulting Agreement, as set forth in Subscription Agreement (the "Ricketts Subscription Agreement"), as described more fully in Item 3.02. Pursuant to the terms of the Ricketts Agreement, the Company and Ricketts also executed a Board Services Agreement (the "Ricketts Services Agreement"), on even date, in which the Company agreed to pay to the Ricketts a fee in an amount equal Ten Thousand Dollars (USD $10,000), payable on a quarterly basis, in the form of cash and/or equity, in the form of shares of restricted common stock of the Company, pursuant to the terms and conditions of the Company's Stock Option Plan effective as of August 27, 2015 , and further agreed to provide certain legal protections of Ricketts from certain liabilities of the Company, existing now or in the future, to the fullest extent permitted by applicable law related to his duties under the Service Agreement, pursuant to the terms of the Indemnification Agreement (the "Ricketts Indemnification Agreement"), referenced by exhibit therein, executed on even date therewith. The foregoing description of the Ricketts Agreement, Ricketts Subscription Agreement, Ricketts Services Agreement and Ricketts Indemnification Agreement are qualified in its entirety by reference to the Ricketts Agreement, Ricketts Subscription Agreement, Ricketts Services Agreement and Ricketts Indemnification Agreement filed as Exhibit 10.72 to this report and incorporated herein by reference. On May 18, 2016, the Company and Stephen Antol, an individual (and also the Chief Financial Officer of the Company) (the "Antol") executed an Agreement (the "Antol Agreement") for the continued engagement of Antol for his continued services as the Chief Financial Officer of the Company, and also Secretary and Treasurer, and other services to be provided to the Company, as deemed necessary by the Board of Directors, from time to time, for a period of one year from the date of execution, and renewal for three (3) successive one (1) year terms unless terminated early. The Company agreed to compensate Antol in the form of (a) a total of $5,000 per month for the first year, and $10,000 per month for subsequent terms, payable in cash or converted into restricted common stock of the Company, at Antol's discretion, pursuant to the Company's Stock Option Plan then in effect, (b) the right to participate in future stock options then in effect, (c) a grant of a total of One Million (1,000,000) shares of Series B Preferred Stock at a per share price of $0.0001, as an inducement to enter into the Agreement, as set forth in Subscription Agreement (the "Antol Subscription Agreement"), as described more fully in Item 3.02, and (d) the execution of an Indemnification Agreement (the "Antol Indemnification Agreement"), on even date, in which the Company agreed to provide certain legal protections of Antol from certain liabilities of the Company, existing now or in the future, to the fullest extent permitted by applicable law related to his duties under the Antol Agreement. Ricketts and Antol Stock Transfer Voting Trust On or about March 14, 2017, Dr. James G. Ricketts, and Stephen Antol (each a Stockholder) executed a Voting Trust Agreement, which the Company approved in advance, in which each of the Stockholder, jointly and severally, agreed to each deposit with the Voting Trustee a total of 500,000 shares of Series B Preferred Stock (for a total of 1,000,000 shares), owned and held by each of them as Stockholders, as referenced in the execution of two (2) separate assignments, which shall, thereafter, upon the completion by the Company of a reverse split of 1:1000 of its Common Stock, be converted by the Company and Voting Trustee into a total of 5,000 shares of Series B Preferred Stock each (for total of 10,000 shares), and 495,000 shares of Common Stock each (for a total totaling 990,000 shares), to be held by the Voting Trustee in the Voting Trust for the benefit of each such Stockholder, in accordance with the terms of the Voting Trust Agreement (as described more fully herein). Convertible Redeemable Note for Unpaid Invoices On May 18, 2016, the Company and JMS Law Group PLLC ("JMS") executed a settlement letter (the "Settlement Letter") in which the parties agreed to settle unpaid invoices for services rendered by JMS to the Company in the amount of $20,000, and further agreed to pay JSM a total of $7,500 for continued services to the Company until July 31, 2016. Pursuant to the terms of the Settlement Letter, the Company issued to JMS a six month convertible redeemable note (the "Note") in the principal amount of USD $ 27,5 00, at a rate of ten percent (10%) per annum commencing on date of issuance , convertible into shares of the Company's common stock at a conversion price equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, and other customary and standard terms and conditions set forth therein. Third Amendment to Securities Purchase Agreement On May 20, 2016, the Company and H Y H Investments, S.A. ("HYHI") executed the Third Amendment to the Securities Purchase Agreement (the "Third Amendment"), pursuant to which the parties agreed to further clarify and amend and restate certain provisions of the Original Purchase Agreement, First Amendment and Second Amendment (the "Original Purchase Agreement"). Pursuant to the terms of the Third Amendment, the parties mutually agreed to cancel the Original Purchase Agreement dated April 6, 2015, in exchange for a new Joint Venture Agreement (the "Joint Venture") executed on even date therewith, pursuant to which the Company and HYHI agreed to create a joint venture relationship using Elite Data Holdings S.A., a Honduras corporation, a wholly-owned subsidiary of Elite Gaming Ventures LLC, a Florida limited liability company ("EVG"), a wholly-owned subsidiary of the Company, and a distributor license from HYHI and El Mar Muerto Beauty Mineral, S.A., a Honduras corporation ("EMBM") to establish gaming operations (the "Purpose") by distributing and maintaining a total of eighty (80) slot machines in the cities of La Lima, Cortes; eighty (80) slot machines in the cities of Trujillo, Colon; and One Hundred and Sixty (160) slot machines in Roatan in the bay island of Honduras. Pursuant to the terms of the Joint Venture, HYHI agreed to effect the distributor license (the "License") related to the Purpose, provided that the Company and EVG would be responsible for providing any and all financial and operational resources required to execute on the License granted to the Company, including, but not limited to, the funding for the initial and ongoing operating costs in the minimum amount of Five Hundred Thousand Dollars (USD $500,000) on or before December 31, 2016 (the "Initial Funding"). In addition, the Company and EVG agreed to pay HYHI consideration in the total amount of USD $10,000,000 (the "Total Consideration"), due and payable as follows: (a) Initial Payment. (b) Convertible Note. (c) Revenue Share Plan. The Joint Venture also included the option of the Company and EVG to acquire the ownership of EMBM and License directly, within thirty (30) days of the date payment in full of the Total Consideration is made to HYHI pursuant to the Agreement, at which time, EVG and Company would have the right to exercise an option (the "Option") to acquire one hundred percent (100%) of EMBM, including, but not limited to, any and all assets (e.g. gaming licenses, etc.), and liabilities required to continue the gaming operation set forth by the Joint Venture, for a purchase price of (USD $10.00) (the "Option Payment"), paid by the Company to HYHI. Upon receipt by HYHI of a written notice to exercise the Option and the Option Payment from EVG or Company, HYHI would execute any and all documents necessary to effect the assignment and transfer (the "EMBM Assignment") of one hundred percent (100%) of EMBM, including, but not limited to, any and all assets and liabilities required to continue the gaming operation set forth by the Joint Venture, to the Company, free of any encumbrances, liens, or other third party claims related to the DEAC and EGV, except for the obligations incurred from and remaining in the Joint Venture after the Assignment. In the event of a termination, or if the Company is unable to provide the Initial Funding when due, or for a period not to exceed ninety (90) days in each monthly instance, the financial and operational resources needed to maintain the operations of the Company for its intended Purpose in an amount not less than Twenty-Five Dollars (USD $25,000) per month, less any revenues generated during such period, HYHI shall have the right to cancel the Joint Venture in writing, thus terminating any further obligations of the parties to this Agreement (the "Termination"), including the cancellation of any further Minimum Licensing Fee Payments and the combined total of any outstanding amounts owed by DEAC, in excess of One Million Dollars (USD$1,000,000.00), on the Amended and Restated Redeemable Note and all other Licensing Redeemable Notes, issued to HYHI which have not been converted, or otherwise assigned, sold or transferred by HYHI to one or more other parties prior to such Termination date. Joint Venture Termination Agreement, Note Modification, and Assignment; Transfer of Subsidiary On or about March 14, 2017, the Company and H Y H Investments, S.A. (HYHI), a Honduras corporation executed a Joint Venture Termination Agreement (the JV Termination Agreement), in which the entire Joint Venture set forth in the original Joint Venture Agreement (the Joint Venture), dated May 20, 2016, was rendered null and void, except for the validity and enforceability of a total of Three Million Nine Hundred Thousand Dollars (US$3,900,000) represented by the first eight (8) quarterly payments of the original Amended and Restated Redeemable Note issued on or about May 20, 2016 in the amended principal amount of Four Million Nine Hundred Thousand Dollars (USD $4,900,000), in relation to the following payments: (A) two (2) separate payments of Four Hundred Fifty Thousand Dollars (USD $450,000), plus accrued interest to date, due on July 1, 2016 and October 1, 2016, respectively, for a total of Nine Hundred Thousand Dollars (USD $900,000), and payable in cash or convertible into shares of common stock of DEAC at a conversion price equal to the lesser of $0.01 per share or fifty percent (50%) to the five (5) trading day average closing price immediately preceding the payment date, and (B) the remaining balance of Four Million (USD $4,000,000) payable in cash in a total of eight (8) equal quarterly installments of Five Hundred Thousand Dollars (USD $500,000), plus accrued interest to date, on the first day of each quarter beginning with January 1, 2017 and ending on January 1, 2019, convertible into shares of common stock of DEAC at fifty percent (50%) discount to the five (5) trading day average closing price immediately preceding the payment date, and other terms more fully described in the amended note set forth in the Amended and Restate Redeemable Note, thus cancelling the final two (2) quarterly payments (seventh and eighth quarterly payments) of Five Hundred Thousand Dollars (USD $500,000) each for a reduction of One Million Dollars (UD$1,000,000) of the principal amount of the Amended and Restated Redeemable Note, pursuant to the terms of the Note Cancellation and Extinguishment Agreement (the Note Cancellation Agreement), attached as Exhibit A to the JV Termination Agreement, and any and all existing operations, including, but not limited to, all of the assets and liabilities of the Joint Venture remained in Elite Data Holdings S.A., a Honduras corporation (EDH), as a wholly-owned subsidiary of Elite Gaming Ventures LLC, a Florida limited liability company (EGV), with the ownership interest of EGV assigned and transferred to HYHI and/or its assigns as set forth in the Assignment (the Assignment), attached as Exhibit A-1 to the Note Cancellation Agreement, including other terms and conditions set forth therein. The termination of the Joint Venture resulted in Elite Gaming Ventures LLC (and, its wholly-owned subsidiary, Elite Data Holdings S.A.) no longer being a subsidiary of the Company, with no further operational effect or obligation to the Company, except for certain amounts owed by the Company under a further amendment to the Amended and Restated Redeemable Note. Assignments to Elite Data Marketing LLC As set forth in Item 8.01 the Company formed Elite Data Marketing LLC. On May 20, 2016, the Company executed an Assignment of Ownership Interest with its newly formed subsidiary, Elite Data Marketing LLC, pursuant to which the Company assigned and transferred (A) a certain amount of Company's ownership interest held in www.classifiedride.com, an online classified listing website (the "ClassifiedRide"), equal to an aggregate total of one hundred percent (100%) of the ownership interest of the ClassifiedRide asset (the "ClassifiedRide Asset"), acquired by the Company from Baker Myers, on or about January 13, 2014, and (B) a certain amount of Company's ownership interest in Autoglance LLC, a Tennessee limited liability company (the "Autoglance"), equal to an aggregate total of fifty-one percent (51%) of the units of membership interest (the "Autoglance Units"), including, but not limited to, the majority control over all owned assets of Autoglance, acquired by the Company from Baker Myers, on or about January 15, 2014. Pursuant to the terms of the Cancellation Transaction and Assignment between Company and Baker Myers on March 14, 2017, Elite Data Marketing LLC, which was created in May of 2016 to hold the assets of www.classifiedride.com originally acquired by the Company from Baker Myers was assigned and transferred to Baker Myers, resulting in the entity no longer being a subsidiary of the Company, with no further operational effect or obligation to the Company. Definitive Agreement for the acquisition of a new subsidiary On May 20, 2016, the Company and the controlling shareholders of Properties of Merit Inc., a Nevada corporation ("POM"), executed a definitive agreement (the "POM Definitive Agreement"), pursuant to which the Company agreed to acquire one hundred percent (100%) of the ownership interest in POM, in the form of three (3) separate closings beginning on or before May 27, 2016, subject to the following terms and conditions: (a) First Closing . In addition, within two (2) business days after the Initial Closing, POM agreed to advance a total of Twenty-Five Thousand Dollars ($25,000) to the Company for the purposes of funding the completion of Company's audit and Form 10K filing with the SEC for the period ending December 31, 2015 (the "Interim Financing"), secured by an executed Convertible Redeemable Note ("POM Note"). Separately, the Company agreed to arrange for initial funding to finance the POM operations in an amount of not less than $250,000, within thirty (30) days after the Initial Closing. (b) Second Closing. In addition, the Second Closing would be contingent upon (a) the ability of POM to complete all necessary corporate actions to effect any and all outstanding matters related to POM Permits and POM Rights set forth in the Agreement, including, but not limited to audit financials on POM and any subsidiary acquired or formed by POM after the first Closing (the "Books and Records"), in form acceptable to the Company, and (b) the Company's ability to obtain additional funding to finance the POM operations in an amount of not less than $2.5M and up to $7.5M in the aggregate. (c) Third Closing In addition, the Third Closing would be contingent upon the Company's ability to obtain additional funding to finance the POM operations in an amount of not less than $7.5M (if such total minimum amount was not secured in the Second Closing) and up to $15M in the aggregate. Notwithstanding the forgoing, the Company's obligations for the financings required in all three (3) closings may be completed in the form of either debt and/or equity or joint venture financing from either (a) Company to POM as inter-company financing to an operating subsidiary, or (b) from one or more third-parties directly into POM. In the event of a termination of the Definitive Agreement after the First Closing or Second Closing, the Company is required to assign and transfer any and all POM Shares held by the Company back to the controlling shareholders of POM, and POM controlling shareholders is required to assign and transfer any and all New DEAC Shares back to Company. In the event, Company has arranged and completed any of the required financings set forth in the Definitive Agreement, then POM and POM Controlling Shareholders will be required to abide by the terms of the such financings, mutually agreed to as such time, and if such financings were completed directly with Company and not by a third-party, POM and POM controlling shareholders would be responsible for the repayment of such funds advanced by Company as if Company was a third-party investor or lender. POM and POM controlling shareholder mutually agreed in advance to execute any and all necessary documents to effect such financial arrangement with Company if a termination does occur prior to the Third Closing. If no additional financings have occurred prior to the Second Closing and/or Third Closing, POM and POM Shareholders shall not have any further obligations to Company, except as otherwise provided for herein. Termination Agreement to Equity Purchase Agreement On May 24, 2016, the Company and Tarpon Bay Partners LLC ("Tarpon") executed a Termination Agreement (the "Termination Agreement"), in which the parties agreed to cancel the original Equity Purchase Agreement (the "Original Purchase Agreement"), dated July 14, 2015 (except for the original Promissory Notes (the "Original Tarpon Note") which was amended and restated as set forth below), in the original amount of USD $50,000.00, issued by the Company to Tarpon as additional compensation pursuant to Original Purchase Agreement), which gave the Company the right to issue and sell to Tarpon any of the Five Million Dollars ($5,000,000) of the Company's common stock, |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies Policies | |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Dynamic Energy Development Corporation (DEDC), which is inactive and Transformation Consulting (TC), which is also inactive. All significant inter-company accounts have been eliminated in consolidation. |
Use of Estimates | The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts 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. The Company regularly evaluates estimates and assumptions related to intangible assets and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Companys estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Reclassifications | Certain reclassifications have been made in Statement of Operations for the year 2014 to conform to the current year presentation. These reclassifications impacted the classification of certain items within the Statement of Operations and the reclassifications had no impact on previously reported total operating expenses, net loss, or stockholders' deficit. |
Impairment of Long-Lived Intangible Assets | We review our long-lived assets, including intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment, if any, is measured as the excess of the carrying amount over the fair value based on market value (when available) or discounted expected cash flows of those assets, and is recorded in the period in which the determination is made. Intangible assets not subject to amortization are tested annually for impairment and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. For the test performed December 31, 2014 an impairment loss of $589,041 was been charged to intangible assets since the fair value is less than the carrying amount as of the year end. For the year ended December 31, 2015, the Company did not have any long-lived intangible assets to be tested for impairments that had not previously been impaired in the subsequent year. |
Development Costs | Development costs are expensed in the period they are incurred unless they meet specific criteria related to technical, market and financial feasibility, as determined by management, including but not limited to the establishment of a clearly defined future market for the product, and the availability of adequate resources to complete the project. If all criteria are met, the costs are deferred and amortized over the expected useful life, or written off if a product is abandoned. For the years ended December 31, 2015 and 2014, total development costs amounted to $319 and $29,139, respectively. At December 31, 2015 and 2014, the Company had no deferred product development costs. |
Cash | Cash include all highly liquid instruments with an original maturity of three months or less at the date of purchase. The Company maintains its cash in cash deposit accounts, which are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per legal ownership. At times, the Companys accounts may exceed federally insured limits. To date, the Company has not experienced any losses in such accounts. At December 31, 2015 and 2014, the Company had no cash equivalents. |
Fair Value of Financial Instruments | The Companys financial instruments consist of cash, accounts payable, accrued liabilities, line of credit payable, loans from a related party, contingent consideration payable, and convertible note payable. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. |
Derivative Financial Instruments | The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company reviews the terms of convertible debt, equity instruments and other financing arrangements to determine whether there are embedded derivative instruments, including embedded conversion options that are required to be bifurcated and accounted for separately as a derivative financial instrument. Also, in connection with the issuance of financing instruments, the Company may issue freestanding options or warrants that may, depending on their terms, be accounted for as derivative instrument liabilities, rather than as equity. The Company may also issue options or warrants to non-employees in connection with consulting or other services. Derivative financial instruments are initially measured at their fair value. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income. For warrant-based derivative financial instruments, the Company uses the Black-Scholes option pricing model to value the derivative instruments. To the extent that the initial fair values of the freestanding and/or bifurcated derivative instrument liabilities exceed the total proceeds received, an immediate charge to income is recognized, in order to initially record the derivative instrument liabilities at their fair value. The discount from the face value of the convertible debt or equity instruments resulting from allocating some or all of the proceeds to the derivative instruments, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to income, usually using the effective interest method. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed at the end of each reporting period. If reclassification is required, the fair value of the derivative instrument, as of the determination date, is reclassified. Any previous charges or credits to income for changes in the fair value of the derivative instrument are not reversed. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within twelve months of the balance sheet date. |
Revenue Recognition | The Company recognizes revenue in accordance with the FASB ASC Section 605-10-S99, Revenue Recognition, Overall, SEC Materials ("Section 605-10-S99"). Section 605-10-S99 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectability is reasonably assured. |
Business combinations | Each investment in a business is being measured and determined whether the investment should be accounted for as a cost-basis investment, an equity investment, a business combination or a common control transaction. An investment in which the Company do not have a controlling interest and which the Company are not the primary beneficiary but where the Company have the ability to exert significant influence is accounted for under the equity method of accounting. For those investments that we account for in accordance ASC 805, Business Combinations, the Company record the assets acquired and liabilities assumed at the managements estimate of their fair values on the date of the business combination. The assessment of the estimated fair value of each of these can have a material effect on the reported results as intangible assets are amortized over various lives. Furthermore, according to ASC 805-50-30-5, when accounting for a transfer of assets or exchange of shares between entities under common control, the entity that receives the net assets or the equity interests shall initially measure the recognized assets and liabilities transferred at their carrying amounts in the accounts of the transferring entity at the date of transfer. |
Net Income (Loss) Per Common Share | Basic loss per common share (EPS) is calculated by dividing the net loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The number of common shares that are exercisable or converted into common stock is not material to affect diluted EPS results. Further, since the Company shows losses for the periods presented basic and diluted loss per share are the same for all periods presented. |
Stock-Based Compensation | On December 1, 2005, the Company adopted the fair value recognition provisions codified in ASC 718, Compensation-Stock Compensation. The Company adopted those provisions using the modified-prospective-transition method. Under this method, compensation cost recognized for all periods prior to December 1, 2005 includes: a) compensation cost for all share-based payments granted prior to, but not yet vested as of November 30, 2005, based on the grant-date fair value and b) compensation cost for all share-based payments granted subsequent to November 30, 2005, based on the grant-date fair value. In addition, deferred stock compensation related to non-vested options is required to be eliminated against additional paid-in capital. The results for periods prior to December 1, 2005 were not restated. The Company accounts for equity instruments issued in exchange for the receipt of goods or services from parties other than employees in accordance with ASC 505, Equity. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the counterparty. |
Income Taxes | Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted the accounting standards codified in ASC 740, Income Taxes as of its inception. Pursuant to those standards, the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not that it will utilize the net operating losses carried forward in future years. ASC 740-10-25 prescribes recognition thresholds that must be met before a tax position is recognized in the financial statements and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. An entity may only recognize or continue to recognize tax positions that meet a "more likely than not" threshold. Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. The Company does not have any unrecognized tax benefits as of December 31, 2015 and 2014 that, if recognized, would affect the Company's effective income tax rate. The Company's policy is to recognize interest and penalties related to income tax issues as components of income tax expense. The Company did not recognize or have any accrual for interest and penalties relating to income taxes as of December 31, 2015 and 2014. |
Common Share Non-Monetary Consideration | In situations where common shares are issued and the fair value of the goods or services received is not readily determinable, the fair value of the common shares is used to measure and record the transaction. The fair value of the common shares issued in exchange for the receipt of goods and services is based on the stock price as of the earliest of the date at which: i. The counterpartys performance is complete; ii. commitment for performance by the counterparty to earn the common shares is reached; or iii. the common shares are issued if they are fully vested and non-forfeitable at that date. |
Share Purchase Warrants | The Company accounts for common share purchase warrants at fair value in accordance with ASC 815, Derivatives and Hedging. The Black-Scholes option pricing valuation method is used to determine fair value of these warrants. Use of this method requires that the Company make assumptions regarding stock volatility, dividend yields, expected term of the warrants and risk-free interest rates. |
Convertible Instruments | The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815 Derivatives and Hedging Activities. Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Each reporting period, the Company evaluates whether convertible debt to acquire stock of the Company contain provisions that protect holders from declines in the stock price or otherwise could result in modification of the exercise price under the respective convertible debt agreements. The Company accounts for convertible instruments (when we have determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: The Company records when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. |
Recently and Issued Accounting Pronouncements | In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for transfer of promised goods or services to customers. ASU-2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The amendments in this update also require disclosure of sufficient information to allow users to understand the nature, amount, timing and uncertainty of revenue and cash flow arising from contracts. ASU-2014-09 is effective for annual and interim reporting periods beginning after December 15, 2016, using one of two retrospective application methods. Early application is not permitted. The Company is currently evaluating the effect that the adoption of ASU 2014-09 will have on the Companys consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern (Subtopic 205-40), which defines management's responsibility to evaluate whether there are conditions or events that raise substantial doubt about the entitys ability to continue as a going concern and to provide related disclosures. Currently, this evaluation has only been an auditor requirement. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period, (3) provide principles for considering the mitigating effect of managements plans, (4) require certain disclosures when substantial doubt is alleviated as a result of the consideration of managements plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that financial statements are issued. This amended guidance will be effective for us beginning January 1, 2016. The Company does not expect the adoption of this amended guidance to have a significant impact on the Companys consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03 Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-11, "Simplifying the Measurement of Inventory (Topic 330)", ("ASU 2015-11"). Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market, with market value represented by replacement cost, net realizable value or net realizable value less a normal profit margin. The amendments in ASU 2015-11 require an entity to measure inventory at the lower of cost or net realizable value. ASU 2015-11 is effective in the first quarter of fiscal year 2018 for the Company, with early adoption permitted. The Company does not expect the adoption of this guidance to have an impact on its condensed consolidated financial statements. In November 2015 the FASB issued Accounting Standards Update (ASU) 2015-17, Income Taxes (Topic 740) Related to the Balance Sheet Classification of Deferred Taxes In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-01, Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC during the current reporting period did not, or are not believed by management to have a material impact on the Companys present or future consolidated financial statements. |
CONTINGENT CONSIDERATION PAYA26
CONTINGENT CONSIDERATION PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Contingent Consideration Payable Tables | |
Contingent Consideration Payable | For the Years Ended December 31, 2015 2014 Contingent consideration due $ 2,000,000 $ 2,000,000 Contingent consideration due (984,638 ) (984,638 ) Less payments, net of refunds, to Director (108,788 ) (108,788 ) Payment of exercise of warrants (906,574 ) (340,362 ) Conversion of contingent consideration to common stock $ 0 $ 566,212 |
CONVERTIBLE PROMISSORY NOTES (T
CONVERTIBLE PROMISSORY NOTES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Convertible Promissory Notes Tables | |
Convertible notes payable | Principal Amount Unamortized Discount Net Current portion $ 451,583 $ 194,659 $ 256,924 Convertible notes, long term portion 225,000 175,445 49,555 $ 676,583 $ 370,104 $ 306,479 |
DERIVATIVE INSTRUMENT LIABILI28
DERIVATIVE INSTRUMENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instrument Liabilities Tables | |
Derivative liability | Derivative Derivative Loss for Liability as of Liability as of year ended December 31, 2014 December 31, 2015 December 31, 2015 Warrants $ - $ 787,438 $ 787,438 Amount allocated to note discounts at inception 501,678 Loss for year ended December 31, 2015 $ 285,760 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurement Tables | |
Fair value of derivative liabilities | The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2015. Level 1 Level 2 Level 3 Total Derivative Liabilities $ - $ - $ 787,438 $ 787,438 The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2014. Level 1 Level 2 Level 3 Total Derivative Liabilities $ - $ - $ - $ - |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders Equity Tables | |
Summarizes the warrant activity | Warrants Outstanding Weighted Average Number of Exercise Shares Price Balance, December 31, 2013 1,538 $ 195.00 Granted 1,000,769 $ 2.29 Exercised - - Expired/Cancelled - - Balance, December 31, 2014 1,002,307 $ 259 Granted - $ - Exercised - - Expired/Cancelled (1,000,000 ) (2 ) Balance, December 31, 2015 2,307 $ 260 Exercisable at December 31, 2015 2,307 $ 260 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes Tables | |
Income tax benefit | Years Ended December 31, 2015 2014 Tax benefit at the federal statutory rate $ 1,764,435 $ (825,113 ) Non deductible costs (1,433,571 ) 800,416 Increase in valuation allowance (330,864 ) 24,697 Income tax expense $ - $ - |
Deferred tax asset and deferred tax liability | December 31, 2015 2014 Deferred tax assets $ 902,638 $ 571,774 Valuation allowance (902,638 ) (571,774 ) Net deferred tax asset after valuation allowance $ - $ - |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details Narratvie) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amount of initial funding to execute on license granted | $ 50,000 | ||
Description of ownership percentage | The Company currently owns a minority interest stake of 20% as of August 26, 2016, with 100% ownership interest anticipated to be completed on or before October 15, 2016. | ||
Reverse stock split | 1:1000 | ||
Series B Preferred Stock [Member] | WODH Market LLC [Member] | |||
Shares issued | 199,000 | ||
WOD Market LLC [Member] | |||
Ownership percentage | 20.00% | ||
Ownership percentage owned by WODH | 80.00% | ||
Shares exchanged under business aquisition | 800 | ||
Description of join venture under business acquisition | Under the terms of the Joint Venture, the initial ownership interest of WOD was 20% owned by the Company, with the remaining 80% owned WODH, with the option of Company to provide additional capital contributions to WOD in increments of not less than $10,000 up to a total of $8 million dollars in the aggregate, which included an equity exchange of up to a total of 800 units (80%) of WOD owned initially by WODH to the Company for a total of approximately 199,000 shares of Series B Preferred Stock and approximately 19,801,000 shares of Common Stock of the Company (the ?Shares?) to be issued to WODH upon the completion of a final closing on or before December 31, 2018, under the terms set forth in Amendment No. 2. | ||
Reverse stock split | 1:1000 | ||
Description of capital contributions under business acquisition | Until a minimum of at least $4 million in additional capital contributions have been made by the Company to WOD, resulting in a controlling ownership interest of not less than 60% of WOD by the Company, all the Shares of Company stock earmarked for the equity exchange with WODH is being held in a Voting Trust (as defined elsewhere in this filing), along with other key shareholder positions, in order to recapitalize the Company post a 1:1000 reverse split (which was previously approved), pending effectiveness after the Company becomes a current and fully-reporting public company. | ||
WOD Market LLC [Member] | Minimum [Member] | |||
Capital contributions | $ 10,000 | ||
WOD Market LLC [Member] | Maximum [Member] | |||
Capital contributions | $ 80,000,000 | ||
WODH Market LLC [Member] | Common Stock [Member] | |||
Shares issued | 19,801,000 |
BASIS OF PRESENTATION AND GOI33
BASIS OF PRESENTATION AND GOING CONCERN (Details Narrative) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Basis Of Presentation And Going Concern Details Narrative | ||
Accumulated a deficit | $ (13,866,420) | $ (8,825,176) |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies Details Narrative | ||
Project development costs | $ 319 | $ 29,139 |
Impairment of intangible asset | $ (589,041) |
DEPOSIT FOR PURCHASE OF LICEN35
DEPOSIT FOR PURCHASE OF LICENSE (JOINT VENTURE PAYMENT) (Details Narrative) | Apr. 06, 2016USD ($) | Apr. 06, 2015USD ($)Machine | May 20, 2016USD ($)Machine | Apr. 04, 2015USD ($) |
Escrow deposit | $ 100,000 | |||
Deposit | $ 100,000 | |||
EMBM [Member] | ||||
Percentage of revenue | 25.00% | |||
Reduced purchased price | $ 9,900,000 | |||
Firts payment of note | $ 900,000 | |||
Promissory Note [Member] | ||||
Total purchase price | $ 10,000,000 | |||
Roatan [Member] | ||||
Number of gaming license | Machine | 160 | |||
Trujillo [Member] | ||||
Number of gaming license | Machine | 80 | |||
La Lima [Member] | ||||
Number of gaming license | Machine | 80 | |||
First Amendment [Member] | ||||
Non-refundable deposit | $ 100,000 | |||
First Amendment [Member] | EMBM [Member] | ||||
Percentage of revenue | 25.00% | |||
Reduced purchased price | $ 9,900,000 | |||
Firts payment of note | $ 900,000 | |||
Joint Venture [Member] | ||||
Principal amount | $ 4,900,000 | |||
Separate payments | 450,000 | |||
Firts payment of note | 3,900,000 | |||
Joint Venture [Member] | July 1, 2016 and October 1, 2016 [Member] | ||||
Accrued interest | $ 900,000 | |||
Conversion price | equal to the lesser of $0.01 per share or fifty percent (50%) to the five (5) trading day average closing price immediately preceding the payment date, and (B) the remaining balance of Four Million (USD $4,000,000) payable in cash in a total of eight (8) equal quarterly installments of Five Hundred Thousand Dollars (USD $500,000), plus accrued interest to date, on the first day of each quarter beginning with January 1, 2017 and ending on January 1, 2019, convertible into shares of common stock of DEAC at fifty percent (50%) discount to the five (5) trading day average closing price immediately preceding the payment date, and other terms more fully described in the amended note set forth in the Amended and Restate Redeemable Note | |||
Reduced purchased price | $ 1,000,000 | |||
Cancellation of payment | 500,000 | |||
Third Amendment [Member] | ||||
Total purchase price | 10,000,000 | |||
Deposit | 100,000 | |||
Firts payment of note | $ 100,000 | |||
Third Amendment [Member] | Roatan [Member] | ||||
Number of gaming license | Machine | 160 | |||
Third Amendment [Member] | Trujillo [Member] | ||||
Number of gaming license | Machine | 80 | |||
Third Amendment [Member] | La Lima [Member] | ||||
Number of gaming license | Machine | 80 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
May 18, 2016 | Jun. 15, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | May 20, 2016 | Sep. 30, 2014 | Jan. 15, 2014 | |
Note balance | $ 587,487 | ||||||
Accrued interest | $ 92,465 | ||||||
Carrying value | $ 587,564 | $ 587,564 | |||||
Convertible note | $ 587,564 | ||||||
Interest rate | 8.00% | 8.00% | |||||
Maturity Date | Jan. 13, 2017 | ||||||
Interest rate increase | 10.00% | ||||||
Consecutive trading days | 10 years | ||||||
Conversion rate | 5.00% | ||||||
Total shares of common stock, percentage | 4.99% | ||||||
Per day fee | $ 2,000 | ||||||
Common stock issued for services, Amount | 375,000 | ||||||
Sixth Amendment [Member] | |||||||
Principal amount | $ 175,000 | ||||||
Conversion price | equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein. | ||||||
January 1, 2016 [Member] | Sixth Amendment [Member] | |||||||
Interest rate | 10.00% | ||||||
Separate payments | $ 25,000 | ||||||
September 1, 2013 [Member] | Sixth Amendment [Member] | |||||||
Working capital | 50,000 | ||||||
Original amount | $ 50,000 | ||||||
Baker Myers [Member] | |||||||
Interest rate | 10.00% | ||||||
Principal amount | $ 500,000 | ||||||
Separate payments | $ 62,500 | ||||||
Conversion price | equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein | ||||||
Membership interest | 51.00% | ||||||
Common stock consideration | 765,000 | ||||||
Cancelled Amount | $ 179,965 | ||||||
Baker Myers [Member] | January 13, 2013 [Member] | |||||||
Accrued interest | 92,465 | ||||||
Original amount | 587,500 | ||||||
Principal amount | $ 87,500 | ||||||
Baker Myers [Member] | Series B Preferred Stock [Member] | |||||||
Common stock purchase warrant | 3,000,000 | ||||||
Purchase price | $ 0.001 | ||||||
Sarah Myers [Member] | |||||||
Amounts due to a related party for Myers - LOC | $ 136,960 | 139,029 | |||||
Accrued interest under the Myers | $ 35,309 | $ 18,562 | |||||
Interest rate | 12.00% | ||||||
Elite Data Marketing LLC [Member] | Baker Myers [Member] | |||||||
Membership interest | 100.00% | ||||||
Steven Frye [Member] | Separation and Settlement Agreement [Member] | |||||||
Common stock issued for services, Amount | $ 54,794 | ||||||
Common stock issued for services, Shares | 391,386 | ||||||
Common stock issued for services, per share | $ 0.14 | ||||||
Subsidiary Issuer [Member] | Autoglance LLC [Member] | |||||||
Membership interest | 51.00% | ||||||
Subsidiary Issuer [Member] | Elite Data Marketing LLC [Member] | |||||||
Membership interest | 100.00% |
CONTINGENT CONSIDERATION PAYA37
CONTINGENT CONSIDERATION PAYABLE (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Contingent Consideration Payable Details | ||
Contingent consideration due | $ 2,000,000 | $ 2,000,000 |
Contingent consideration due | (984,638) | (984,638) |
Less payments, net of refunds, to Director | $ (108,788) | $ (108,788) |
Payment of exercise of warrants | $ (906,574) | $ (340,362) |
Conversion of contingent consideration to common stock | $ 0 | $ 566,212 |
CONTINGENT CONSIDERATION PAYA38
CONTINGENT CONSIDERATION PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Feb. 25, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | |
Net loss on extinguishment of debt | $ 3,589,717 | $ 1,361,448 | ||||
DEDC [Member] | ||||||
Purchase price of the shares | $ 2,000,000 | |||||
Purchase price description | The purchase price for the shares was $2,000,000, payable from the gross revenues of TC, subject to the following contingent reduction or increase of the purchase price. Pursuant to the Agreement, if TCs gross revenues during the two years following the closing were less than $2,000,000, then the purchase price for the shares would be reduced to the actual revenue received by TC during the two year period. If TCs revenues during the same two year period exceed $2,000,000, then the purchase price for the shares would be increased by one-half of the excess revenues over $2,000,000 (hereafter contingent consideration). | |||||
Stock Purchase Agreement [Member] | ||||||
Gross revenues | $ 2,000,000 | |||||
Payment to director | $ 984,638 | |||||
Payment for warrants exercised | $ 108,788 | |||||
Conversion of the note payable | $ 0.10 |
PAYABLE - RELATED PARTY (Detail
PAYABLE - RELATED PARTY (Details Narrative) - USD ($) | Jan. 13, 2014 | Jun. 15, 2015 | Apr. 15, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value of the closing stock price | $ 1.25 | ||||
Loans from a related party | $ 136,960 | $ 139,029 | |||
Convertible Note payable, related party | $ 587,564 | $ 587,564 | |||
Promissory Note [Member] | Steven Frye [Member] | Addendum [Member] | |||||
Promissory note | $ 13,500 | ||||
Interest rate | 12.00% | ||||
Promissory note due date | Dec. 31, 2015 | ||||
Principal and outstanding interest converted amount | $ 15,206 | ||||
Fair value of the closing stock price | $ 0.14 | ||||
Accrued interest | $ 108,614 | ||||
Myers [Member] | Line of Credit [Member] | |||||
Interest rate | 12.00% | 12.00% | |||
Accrued interest | $ 35,309 | $ 18,562 | |||
Loans from a related party | 136,960 | $ 139,029 | |||
Stock Purchase Agreement [Member] | Baker Myers [Member] | |||||
Promissory note | 587,564 | ||||
Interest rate | 8.00% | ||||
Accrued interest | $ 92,465 | ||||
Convertible Note payable, related party | $ 587,564 |
PROMISSORY NOTE (Details Narrat
PROMISSORY NOTE (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
May 24, 2016 | May 18, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Proceeds from Issuance of Common Stock | $ 17,734 | |||
Consecutive trading days | 10 years | |||
Convertible notes payable | $ 49,555 | |||
Tarpon Bay Partners [Member] | Line of Credit [Member] | Promissory Note [Member] | ||||
Promissory Note Balance | $ 50,000 | |||
Promissory note due date | Jan. 31, 2016 | |||
Debt conversion converted rate | 10.00% | |||
Transaction costs | $ 50,000 | |||
Accrued interest | 2,110 | |||
Note discount balance | $ 50,000 | |||
Termination Agreement to Definitive Agreement [Member] | ||||
Termination Agreement, Description | the parties mutually agreed to terminate the Definitive Agreement dated May 20, 2016, incorporated by reference in Form 8K filed with the SEC on May 24, 2016, pursuant to which the Company agreed to acquire one hundred percent (100%)of the ownership interest in POM | |||
Membership interest | 100.00% | |||
Convertible notes payable | $ 17,500 | |||
Settlement Letter [Member] | Convertible Redeemable Note [Member] | ||||
Promissory Note Balance | $ 20,000 | |||
Promissory note due date | Jul. 31, 2016 | |||
Debt conversion converted rate | 10.00% | |||
Principal amount | $ 27,500 | |||
Common stock conversion price | $ 0.01 | |||
Lowest trading price | 58.00% | |||
Continued services | $ 7,500 | |||
Consecutive trading days | 10 days | |||
Termination Agreement [Member] | Tarpon Bay Partners [Member] | Line of Credit [Member] | ||||
Promissory Note Balance | $ 50,000 | |||
Promissory note due date | Jul. 14, 2015 | |||
Debt conversion converted rate | 10.00% | |||
Proceeds from Issuance of Common Stock | $ 5,000,000 | |||
Principal amount | $ 50,000 | |||
Termination Agreement, Description | on July 14, 2015 (the "Effective Date"), to be due and payable to Tarpon by Company in four (4) separate equal quarterly payments of Twelve Thousand Five Hundred Dollars (USD $12,500), plus accrued interest to date, due on the first day of each quarter beginning on July 1, 2016, convertible into shares of the Company's common stock at a conversion price equal to fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 9.99% | |||
New Purchase Agreement [Member] | Tarpon Bay Partners [Member] | Line of Credit [Member] | ||||
Proceeds from Issuance of Common Stock | $ 15,000,000 |
RELATED PARTY CONVERTIBLE PRO41
RELATED PARTY CONVERTIBLE PROMISSORY NOTE (Details Narrative) - USD ($) | Mar. 14, 2017 | Jan. 13, 2014 | May 18, 2016 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued interest | $ 92,465 | |||||
Carrying value | $ 587,564 | $ 587,564 | ||||
Convertible note | $ 587,564 | |||||
Interest rate | 8.00% | 8.00% | ||||
Maturity Date | Jan. 13, 2017 | |||||
Consecutive trading days | 10 years | |||||
Conversion price | 5.00% | |||||
Total shares of common stock, percentage | 4.99% | |||||
Per day fee | $ 2,000 | |||||
Due to related party | $ 136,960 | $ 139,029 | ||||
Reverse stock split | 1:1000 | |||||
Baker Myers Convertible Note [Member] | ||||||
Accrued interest | $ 587,564 | |||||
Carrying value | $ 92,465 | |||||
Convertible note | $ 587,564 | |||||
Interest rate | 8.00% | |||||
Maturity Date | Jan. 13, 2017 | |||||
Consecutive trading days | 180 days | |||||
Conversion price | 5.00% | |||||
Total shares of common stock, percentage | 4.99% | |||||
Per day fee | $ 2,000 | |||||
Baker Myers Convertible Note [Member] | Minimum [Member] | ||||||
Interest rate | 8.00% | |||||
Baker Myers Convertible Note [Member] | Maximum [Member] | ||||||
Interest rate | 10.00% | |||||
Baker Myers Note and Share Cancellation and Exchange Agreement [Member] | ||||||
Interest rate | 10.00% | |||||
Principal amount | $ 500,000 | |||||
Separate payments | $ 62,500 | |||||
Description of conversion price | equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein | |||||
Cancelled Amount | $ 179,965 | |||||
Baker Myers Note and Share Cancellation and Exchange Agreement [Member] | Series B Preferred Stock [Member] | ||||||
Common stock purchase warrant | 3,000,000 | |||||
Purchase price | $ 0.001 | |||||
Baker Myers Note and Share Cancellation and Exchange Agreement [Member] | Elite Data Marketing LLC [Member] | ||||||
Membership interest | 100.00% | |||||
Baker Myers Note and Share Cancellation and Exchange Agreement [Member] | January 13, 2013 [Member] | ||||||
Accrued interest | $ 92,465 | |||||
Original amount | 587,500 | |||||
Principal amount | $ 87,500 | |||||
Note Cancellation and Extinguishment Agreement [Member] | ||||||
Due to related party | $ 200,000 | |||||
Ownership percentage | 100.00% | |||||
Baker Myers Warrant Transfer - Voting Trust [Member] | ||||||
Common stock held | $ 2,970,000 | |||||
Reverse stock split | 1:1000 | |||||
Baker Myers Warrant Transfer - Voting Trust [Member] | Series B Preferred Stock [Member] | ||||||
Common stock purchase warrant | 3,000,000 | |||||
Common stock held | $ 30,000 |
CONVERTIBLE PROMISSORY NOTE (De
CONVERTIBLE PROMISSORY NOTE (Details) | Dec. 31, 2015USD ($) |
Principal Amount | $ 676,583 |
Unamortized Discount | 370,104 |
Net | 306,479 |
Convertible notes current portion | |
Principal Amount | 451,583 |
Unamortized Discount | 194,659 |
Net | 256,924 |
Convertible notes long term portion | |
Principal Amount | 225,000 |
Unamortized Discount | 175,445 |
Net | $ 49,555 |
CONVERTIBLE PROMISSORY NOTE (43
CONVERTIBLE PROMISSORY NOTE (Details Narrative) - USD ($) | Mar. 14, 2017 | Jul. 14, 2015 | Jun. 11, 2015 | May 18, 2016 | Jan. 28, 2016 | Dec. 29, 2015 | Jul. 23, 2015 | Jul. 21, 2015 | Jun. 16, 2015 | Mar. 16, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | May 08, 2017 | Dec. 22, 2016 | Oct. 15, 2015 | Sep. 30, 2014 | Aug. 16, 2013 |
Convertible note | $ 587,564 | ||||||||||||||||
Consecutive trading days | 10 years | ||||||||||||||||
Maturity Date | Jan. 13, 2017 | ||||||||||||||||
Accrued interest | $ 92,465 | ||||||||||||||||
Common stock shares issued | 25,595,902 | 19,219,070 | 136,518,799 | 0.0001 | |||||||||||||
Convertible notes payable | $ 49,555 | ||||||||||||||||
Line of credit payable | $ 151,000 | ||||||||||||||||
Conversion price | 5.00% | ||||||||||||||||
Expected life | 1 day | ||||||||||||||||
Expected dividend yield | 0.00% | ||||||||||||||||
Carrying value | $ 587,564 | $ 587,564 | |||||||||||||||
Total shares of common stock, percentage | 4.99% | ||||||||||||||||
Reverse stock split | 1:1000 | ||||||||||||||||
Birch First Warrant Transfer - Voting Trust [Member] | |||||||||||||||||
Common stock held | $ 3,960,000 | ||||||||||||||||
Reverse stock split | 1:1000 | ||||||||||||||||
Birch First Warrant Transfer - Voting Trust [Member] | Series B Preferred Stock [Member] | |||||||||||||||||
Common stock purchase warrant | 4,000,000 | ||||||||||||||||
Common stock held | $ 40,000 | ||||||||||||||||
Convertible Note with First Amendment to the Settlement Agreement [Member] | |||||||||||||||||
Lowest trading price | 58.00% | ||||||||||||||||
Consecutive trading days | 10 days | ||||||||||||||||
Conversion price | 1.00% | ||||||||||||||||
Execution of the settlement agreement | period of twenty-four (24) months | ||||||||||||||||
Original amount | $ 300,000 | ||||||||||||||||
Principal amount | $ 300,000 | ||||||||||||||||
Common stock purchase warrant | 1,000,000 | ||||||||||||||||
Total shares of common stock, percentage | 4.99% | ||||||||||||||||
Considration | $ 10,000 | ||||||||||||||||
Strike price | $ 0.001 | ||||||||||||||||
Convertible Note with First Amendment to the Settlement Agreement [Member] | July 23, 2015 [Member] | |||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||
Principal amount | $ 400,000 | ||||||||||||||||
Convertible Note with First Amendment to the Settlement Agreement [Member] | Series B Preferred Stock [Member] | |||||||||||||||||
Common stock purchase warrant | 4,000,000 | ||||||||||||||||
Purchase price | $ 0.001 | ||||||||||||||||
Convertible Note with Birch Advisors LLC [Member] | |||||||||||||||||
Convertible note | $ 37,500 | ||||||||||||||||
Interest rate | 2.00% | ||||||||||||||||
Lowest trading price | 25.00% | ||||||||||||||||
Consecutive trading days | 20 days | ||||||||||||||||
Outstanding balance | $ 112,500 | ||||||||||||||||
Accrued interest | 2,663 | ||||||||||||||||
Note discount | $ 72,267 | 87,722 | |||||||||||||||
Derivative liability | 12,000 | ||||||||||||||||
Convertible debenture | $ 300,000 | ||||||||||||||||
Conversion price | 10.00% | ||||||||||||||||
Execution of the settlement agreement | period of twenty-four (24) months | ||||||||||||||||
Fair value market price | $ 84,267 | ||||||||||||||||
Risk-free rate of interest | 0.711% | ||||||||||||||||
Expected life | 1 year 8 months 9 days | ||||||||||||||||
Expected stock price volatility | 170.599% | ||||||||||||||||
Expected dividend yield | 0.00% | ||||||||||||||||
Carrying value | $ 84,267 | ||||||||||||||||
Convertible Note with Birch First Capital Fund LLC [Member] | |||||||||||||||||
Convertible note | $ 37,500 | ||||||||||||||||
Lowest trading price | 50.00% | ||||||||||||||||
Consecutive trading days | 20 days | ||||||||||||||||
Outstanding balance | 225,000 | ||||||||||||||||
Accrued interest | 2,663 | ||||||||||||||||
Note discount | $ 225,000 | 175,445 | |||||||||||||||
Derivative liability | $ 247,028 | ||||||||||||||||
Line of credit payable | $ 151,000 | ||||||||||||||||
Conversion price | 10.00% | ||||||||||||||||
Fair value market price | $ 472,028 | ||||||||||||||||
Risk-free rate of interest | 0.711% | ||||||||||||||||
Expected life | 2 years | ||||||||||||||||
Expected stock price volatility | 175.371% | ||||||||||||||||
Expected dividend yield | 0.00% | ||||||||||||||||
Carrying value | $ 472,028 | ||||||||||||||||
Non-cash settlement aggregating fees | 85,842 | ||||||||||||||||
Convertible Note with Birch First Capital Fund LLC [Member] | Amended and Restated Note [Member] | |||||||||||||||||
Convertible note | 75,000 | ||||||||||||||||
Interest rate | 2.00% | ||||||||||||||||
Remaining principal balance | $ 225,000 | ||||||||||||||||
Common stock shares issued | 750,000 | ||||||||||||||||
Convertible debenture | $ 300,000 | ||||||||||||||||
Conversion price | 10.00% | ||||||||||||||||
Execution of the settlement agreement | five (5) days | ||||||||||||||||
Convertible Note with EMA Financial, LLC [Member] | |||||||||||||||||
Convertible note | $ 156,500 | 14,160 | |||||||||||||||
Proceeds from convertible note | 135,000 | ||||||||||||||||
Legal fees | $ 21,500 | ||||||||||||||||
Interest rate | 12.00% | ||||||||||||||||
Lowest trading price | 60.00% | ||||||||||||||||
Consecutive trading days | 20 days | ||||||||||||||||
Outstanding balance | 156,500 | ||||||||||||||||
Accrued interest | 8,798 | ||||||||||||||||
Note discount | 11,663 | ||||||||||||||||
Maturity Date | Jul. 14, 2016 | ||||||||||||||||
Remaining principal balance | 142,340 | ||||||||||||||||
Common stock shares issued | 100,000 | ||||||||||||||||
Ownership percentage | 4.90% | ||||||||||||||||
Convertible Note with EMA Financial, LLC [Member] | Note Maturity Date [Member] | |||||||||||||||||
Interest rate | 24.00% | ||||||||||||||||
Consecutive trading days | 5 days | ||||||||||||||||
Convertible Note with Adar Bays, LLC [Member] | |||||||||||||||||
Convertible note | $ 52,500 | 37,713 | |||||||||||||||
Proceeds from convertible note | $ 45,000 | ||||||||||||||||
Interest rate | 6.00% | ||||||||||||||||
Lowest trading price | 58.00% | ||||||||||||||||
Consecutive trading days | 10 days | ||||||||||||||||
Outstanding balance | 47,500 | ||||||||||||||||
Accrued interest | 1,709 | ||||||||||||||||
Note discount | 46,637 | ||||||||||||||||
Maturity Date | Jun. 16, 2016 | ||||||||||||||||
Convertible debt issued | 6.00% | ||||||||||||||||
Derivative liability | $ 25,047 | ||||||||||||||||
Remaining principal balance | 14,787 | ||||||||||||||||
Debt discount | 48,412 | ||||||||||||||||
Derivative liability conversion feature | 73,459 | ||||||||||||||||
Convertible notes payable | $ 5,000 | ||||||||||||||||
Convertible Note with LG Capital Funding, LLC [Member] | |||||||||||||||||
Convertible note | 52,500 | 10,261 | |||||||||||||||
Proceeds from convertible note | $ 45,000 | ||||||||||||||||
Interest rate | 6.00% | ||||||||||||||||
Lowest trading price | 58.00% | ||||||||||||||||
Consecutive trading days | 10 days | ||||||||||||||||
Outstanding balance | 49,500 | ||||||||||||||||
Accrued interest | $ 94 | $ 374 | 1,622 | ||||||||||||||
Note discount | 48,637 | ||||||||||||||||
Maturity Date | Jun. 16, 2016 | ||||||||||||||||
Convertible debt issued | 6.00% | ||||||||||||||||
Derivative liability | $ 25,047 | ||||||||||||||||
Remaining principal balance | $ 42,239 | ||||||||||||||||
Debt discount | 48,412 | ||||||||||||||||
Derivative liability conversion feature | $ 73,459 | ||||||||||||||||
Common stock shares issued | 333,372 | ||||||||||||||||
Convertible notes payable | $ 3,000 | ||||||||||||||||
Conversion price | 58.00% | ||||||||||||||||
Principal amount | $ 3,000 | ||||||||||||||||
Convertible Note with JSJ Investments Inc. [Member] | |||||||||||||||||
Convertible note | $ 100,000 | $ 20,690 | $ 120,000 | ||||||||||||||
Proceeds from convertible note | $ 88,000 | 100,000 | |||||||||||||||
Original Issuance Discount | 10,000 | ||||||||||||||||
Legal fees | $ 10,000 | ||||||||||||||||
Interest rate | 12.00% | 10.00% | |||||||||||||||
Lowest trading price | 45.00% | 60.00% | |||||||||||||||
Consecutive trading days | 20 days | 20 days | |||||||||||||||
Interest fee paid | $ 15,000 | ||||||||||||||||
Outstanding balance | 14,417 | ||||||||||||||||
Note discount | 85,583 | ||||||||||||||||
Maturity Date | Dec. 11, 2015 | Mar. 16, 2016 | |||||||||||||||
Convertible debt issued | 12.00% | ||||||||||||||||
Derivative liability | $ 91,388 | ||||||||||||||||
Accrued interest | $ 6,625 | ||||||||||||||||
Debt conversion converted rate | 150.00% | ||||||||||||||||
Remaining principal balance | $ 79,310 |
DERIVATIVE INSTRUMENT LIABILI44
DERIVATIVE INSTRUMENT LIABILITIES (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Derivative liability as of December 31, 2014 | |
Warrants | |
Amount allocated to note discounts at inception | |
Loss | |
Derivative liability as of December 31, 2015 | |
Warrants | 787,438 |
Amount allocated to note discounts at inception | |
Loss | |
Loss for year ended December 31, 2015 | |
Warrants | 787,438 |
Amount allocated to note discounts at inception | 501,678 |
Loss | $ 285,760 |
DERIVATIVE INSTRUMENT LIABILI45
DERIVATIVE INSTRUMENT LIABILITIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative liabilities | $ 787,438 | |
Remaining contractual life | 1 day | |
Dividend yield | 0.00% | |
Increase in derivative instruments liability | $ 285,760 | |
Minimum [Member] | ||
Risk free interest rate | 0.14% | |
Remaining contractual life | 4 days | |
Expected stock price volatility | 107.16% | |
Maximum [Member] | ||
Risk free interest rate | 0.878% | |
Remaining contractual life | 1 year 6 months 22 days | |
Expected stock price volatility | 322.577% |
COMMITMENTS (Details Narrative)
COMMITMENTS (Details Narrative) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Commitments Details Narrative | |
Stock compensation for investor relations | $ 772,594 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative liabilities | $ 787,438 | |
Level 1 | ||
Derivative liabilities | ||
Level 2 | ||
Derivative liabilities | ||
Level 3 | ||
Derivative liabilities | $ 787,438 |
FAIR VALUE MEASUREMENT (Detai48
FAIR VALUE MEASUREMENT (Details Narrative) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Measurement Details Narrative | ||
Derivative liabilities | $ 787,438 |
EQUITY INCENTIVE PLAN (Details
EQUITY INCENTIVE PLAN (Details Narrative) - shares | Oct. 15, 2015 | May 08, 2017 | Dec. 31, 2015 | Dec. 31, 2014 |
Common Stock, Shares, Issued | 0.0001 | 136,518,799 | 25,595,902 | 19,219,070 |
Equity Incentive Plan [Member] | ||||
Exercise price of stock awards description | NQSOs shall not be less than 85% of the fair market value of the stock subject to the Option on the date of grant, and not less than 65% of the fair market value of the stock subject to the Stock Award on the date of grant | |||
Equity Incentive Plan [Member] | Ten Percent Stockholder [Member] | ||||
Exercise price of stock awards description | Shall in no event be less than 110% of the fair market value of the stock covered by the Stock Award or Option at the time the Stock Award or Option is granted | |||
Equity Incentive Plan [Member] | Maximum [Member] | ||||
Common Stock, Shares, Issued | 25,000,000 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders Equity Details | ||
Number of warrants shares, Beginning | 1,002,307 | 1,538 |
Granted warrants | 1,000,769 | |
Exercised warrants | ||
Expired/Cancelled warrants | (1,000,000) | |
Number of warrants shares, Ending | 2,307 | 1,002,307 |
Exercisable warrants | 2,307 | |
Weighted Average Exercise Price warrants, Beginning | 259 | 195 |
Weighted Average Exercise Price warrants, Granted | 2.29 | |
Weighted Average Exercise Price warrants, Exercised | ||
Weighted Average Exercise Price warrants, Expired/Cancelled | (2) | |
Weighted Average Exercise Price warrants, Ending | 260 | 259 |
Weighted Average Exercise Price warrants, Exercisable | $ 260 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) | Dec. 15, 2015USD ($)$ / sharesshares | Oct. 15, 2015shares | Jul. 14, 2015USD ($)$ / sharesshares | Jan. 08, 2015USD ($)shares | Dec. 03, 2014USD ($)$ / sharesshares | Dec. 02, 2014USD ($) | Jan. 02, 2014shares | Aug. 26, 2016 | May 18, 2016USD ($)shares | Dec. 29, 2015USD ($)$ / sharesshares | Dec. 22, 2015USD ($)$ / sharesshares | Jul. 27, 2015$ / sharesshares | Jun. 16, 2015USD ($) | Jun. 15, 2015USD ($)$ / sharesshares | Jan. 29, 2015USD ($)shares | Dec. 20, 2014USD ($)shares | Nov. 19, 2014USD ($) | May 22, 2014USD ($)shares | Apr. 15, 2014USD ($) | Dec. 31, 2015USD ($)Machine$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | May 08, 2017shares | Jul. 14, 2016USD ($) | May 24, 2016USD ($) | Sep. 30, 2014USD ($) | Jan. 15, 2014shares | Dec. 31, 2013shares |
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||||||||||||||||
Common stock, Authorized | shares | 500,000,000 | 500,000,000 | |||||||||||||||||||||||||
Common stock, Issued | shares | 0.0001 | 25,595,902 | 19,219,070 | 136,518,799 | |||||||||||||||||||||||
Common stock, outstanding | shares | 25,595,902 | 19,219,070 | 136,518,799 | ||||||||||||||||||||||||
Common stock shares issued Company | shares | 8,503,196 | 19,068,582 | |||||||||||||||||||||||||
Note conversion balance | $ | $ 566,212 | ||||||||||||||||||||||||||
Warrants outstanding | shares | 2,307 | 1,002,307 | |||||||||||||||||||||||||
Weighted average exercise price | $ / shares | $ 260 | ||||||||||||||||||||||||||
Weighted average life of the warrants outstanding | 1 day | ||||||||||||||||||||||||||
Aggregate intrinsic value of the outstanding | $ | $ 0 | ||||||||||||||||||||||||||
Interest rate | 8.00% | 8.00% | |||||||||||||||||||||||||
Agreement term | 2 years | ||||||||||||||||||||||||||
Lowest closing bid price | 90.00% | ||||||||||||||||||||||||||
Trading days | 10 years | ||||||||||||||||||||||||||
Draw down | $ | $ 5,000,000 | ||||||||||||||||||||||||||
Reverse stock split | 1:1000 | ||||||||||||||||||||||||||
Sale of common stock, shares | shares | 25,000 | ||||||||||||||||||||||||||
Sale of common stock, amount | $ | $ 25,000 | $ 25,000 | |||||||||||||||||||||||||
Convertible debt | $ | $ 587,564 | ||||||||||||||||||||||||||
Net loss on extinguishment of debt | $ | $ 3,589,717 | $ 1,361,448 | |||||||||||||||||||||||||
Common stock issued for services, Amount | $ | $ 375,000 | ||||||||||||||||||||||||||
Fair value of the closing stock price | $ / shares | $ 1.25 | ||||||||||||||||||||||||||
Conversion rate | 5.00% | ||||||||||||||||||||||||||
Warrants outstanding | shares | 2,307 | 1,002,307 | 1,538 | ||||||||||||||||||||||||
Purchase of warrants | shares | |||||||||||||||||||||||||||
Expected life | 1 day | ||||||||||||||||||||||||||
Expected dividend yield | 0.00% | ||||||||||||||||||||||||||
Warrants issued for services | $ | $ 481,156 | $ 41,528 | |||||||||||||||||||||||||
Weighted Average Exercise Price warrants, Exercisable | $ / shares | $ 260 | ||||||||||||||||||||||||||
Acquisition [Member] | |||||||||||||||||||||||||||
Purchase of common stock | $ | $ 5,000,000 | ||||||||||||||||||||||||||
Minimum [Member] | |||||||||||||||||||||||||||
Preferred stock, authorized | shares | 10,000,000 | ||||||||||||||||||||||||||
Increased share of common stock | shares | 60,000,000 | ||||||||||||||||||||||||||
Risk free interest rate | 0.14% | ||||||||||||||||||||||||||
Expected life | 4 days | ||||||||||||||||||||||||||
Expected stock price volatility | 107.16% | ||||||||||||||||||||||||||
Maximum [Member] | |||||||||||||||||||||||||||
Preferred stock, authorized | shares | 250,000,000 | ||||||||||||||||||||||||||
Increased share of common stock | shares | 750,000,000 | ||||||||||||||||||||||||||
Risk free interest rate | 0.878% | ||||||||||||||||||||||||||
Expected life | 1 year 6 months 22 days | ||||||||||||||||||||||||||
Expected stock price volatility | 322.577% | ||||||||||||||||||||||||||
Warrant [Member] | |||||||||||||||||||||||||||
Common stock consideration | shares | 390 | ||||||||||||||||||||||||||
Fair value of warrant | $ | $ 522,684 | ||||||||||||||||||||||||||
Purchase of warrants | shares | 1,000,000 | 769 | |||||||||||||||||||||||||
Warrant purchase price | $ / shares | $ 2 | ||||||||||||||||||||||||||
Risk free interest rate | 0.14% | 38.90% | |||||||||||||||||||||||||
Expected life | 1 year | 2 years | |||||||||||||||||||||||||
Expected stock price volatility | 92.083% | 0.00% | |||||||||||||||||||||||||
Expected dividend yield | 0.00% | ||||||||||||||||||||||||||
Series B Preferred Stock [Member] | |||||||||||||||||||||||||||
Preferred stock, issued | shares | 2,000,000 | ||||||||||||||||||||||||||
Reverse stock split | 1:1,000 | ||||||||||||||||||||||||||
Reverse Split, description | the number of shares held before the Reverse Split will be divided by 1,000, and if the result had a fractional component, the result is that cash will be given in lieu of any fractional shares. By way of example, a shareholder with 100,000 shares of Common Stock before the Reverse Split will hold 100 shares of Common Stock upon completion of the Reverse Split and will receive cash in lieu of the fractional remaining share. | ||||||||||||||||||||||||||
Reverse split diversion unit | Machine | 1,000 | ||||||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||||||
Common stock, Issued | shares | 27,722,266 | ||||||||||||||||||||||||||
Common stock, outstanding | shares | 27,722,266 | ||||||||||||||||||||||||||
Shares issued | shares | 27,722,266 | 19,219,070 | 150,488 | ||||||||||||||||||||||||
Sale of common stock, shares | shares | 25,000 | ||||||||||||||||||||||||||
Sale of common stock, amount | $ | $ 3 | ||||||||||||||||||||||||||
Common stock issued for services, Amount | $ | $ 75 | ||||||||||||||||||||||||||
Common stock issued for services, Shares | shares | 750,000 | ||||||||||||||||||||||||||
Tarpon [Member] | |||||||||||||||||||||||||||
Purchase of common stock | $ | $ 5,000,000 | ||||||||||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||||||||||
Transaction costs | $ | $ 50,000 | ||||||||||||||||||||||||||
Percentage of common stock | 9.99% | ||||||||||||||||||||||||||
Sell of common stock | $ | $ 15,000,000 | $ 5,000,000 | |||||||||||||||||||||||||
Principal amount | $ | 50,000 | ||||||||||||||||||||||||||
Separate payments | $ | $ 12,500 | ||||||||||||||||||||||||||
Description of conversion price | conversion price equal to fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 9.99% and other terms and conditions set forth therein | ||||||||||||||||||||||||||
Tarpon Bay Partners LLC [Member] | |||||||||||||||||||||||||||
Original amount | $ | $ 50,000 | ||||||||||||||||||||||||||
January 31, 2016 [Member] | Tarpon [Member] | |||||||||||||||||||||||||||
Promissory note | $ | $ 50,000 | ||||||||||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||||||||||
Baker Myers [Member] | |||||||||||||||||||||||||||
Common stock, Issued | shares | 14,000,000 | ||||||||||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||||||||||
Principal amount | $ | $ 500,000 | ||||||||||||||||||||||||||
Separate payments | $ | $ 62,500 | ||||||||||||||||||||||||||
Description of conversion price | equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein | ||||||||||||||||||||||||||
Membership interest | 51.00% | ||||||||||||||||||||||||||
Common stock consideration | shares | 765,000 | ||||||||||||||||||||||||||
Ricketts [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||||||||||
Preferred stock, issued | shares | 1,000,000 | ||||||||||||||||||||||||||
Antol [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||||||||||
Preferred stock, issued | shares | 1,000,000 | ||||||||||||||||||||||||||
Trustee [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||||||||||
Number of deposited shares | shares | 500,000 | ||||||||||||||||||||||||||
Total number of shares | shares | 1,000,000 | ||||||||||||||||||||||||||
Trustee One [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||||||||||
Number of deposited shares | shares | 5,000 | ||||||||||||||||||||||||||
Total number of shares | shares | 10,000 | ||||||||||||||||||||||||||
Trustee One [Member] | Common Stock [Member] | |||||||||||||||||||||||||||
Number of deposited shares | shares | 495,000 | ||||||||||||||||||||||||||
Total number of shares | shares | 990,000 | ||||||||||||||||||||||||||
Board of Directors [Member] | |||||||||||||||||||||||||||
Reverse stock split | 1:1,000 | 1:1,000 | |||||||||||||||||||||||||
Stock Issued During Period, Shares, Reverse Stock Splits | shares | 1,000 | ||||||||||||||||||||||||||
Voting right shareholders reverse stock split, description | a reverse stock split of up to 1 for 1,000, such effectuated action did not effect an actual (or specific) reverse split on such date, but rather provided for a future approval only. Subject to such approval, the Board of Directors were granted the right to effect a reverse split at any time during the following one year period, at a ratio (between 1 for 1,000), and on such determined effective date deemed appropriate by the Board Directors, at such time (which subsequently was determined later to be August 26, 2016). | ||||||||||||||||||||||||||
Adar [Member] | |||||||||||||||||||||||||||
Common stock, Issued | shares | 538,793 | ||||||||||||||||||||||||||
Principal amount | $ | $ 5,000 | ||||||||||||||||||||||||||
Shares issued | shares | 38,880,995 | ||||||||||||||||||||||||||
Principle reductions | $ | $ 32,713 | ||||||||||||||||||||||||||
Conversion rate | 58.00% | ||||||||||||||||||||||||||
Conversion price | $ / shares | $ 0.00928 | ||||||||||||||||||||||||||
Debt conversion converted rate | 6.00% | ||||||||||||||||||||||||||
JSJ [Member] | |||||||||||||||||||||||||||
Common stock, Issued | shares | 1,254,199 | ||||||||||||||||||||||||||
Principal amount | $ | $ 14,417 | ||||||||||||||||||||||||||
Shares issued | shares | 11,923,377 | ||||||||||||||||||||||||||
Principle reductions | $ | $ 6,273 | ||||||||||||||||||||||||||
Conversion rate | 55.00% | ||||||||||||||||||||||||||
Conversion price | $ / shares | $ 0.011495 | ||||||||||||||||||||||||||
Debt conversion converted rate | 12.00% | ||||||||||||||||||||||||||
Steven Frye [Member] | Separation and Settlement Agreement [Member] | |||||||||||||||||||||||||||
Common stock issued for services, Amount | $ | $ 54,794 | ||||||||||||||||||||||||||
Common stock issued for services, Shares | shares | 391,386 | ||||||||||||||||||||||||||
Common stock issued for services, per share | $ / shares | $ 0.14 | ||||||||||||||||||||||||||
Steven Frye [Member] | Promissory Note [Member] | Addendum [Member] | |||||||||||||||||||||||||||
Promissory note | $ | $ 13,500 | ||||||||||||||||||||||||||
Interest rate | 12.00% | ||||||||||||||||||||||||||
Promissory note due date | Dec. 31, 2015 | ||||||||||||||||||||||||||
Principal and outstanding interest converted amount | $ | $ 15,206 | ||||||||||||||||||||||||||
Fair value of the closing stock price | $ / shares | $ 0.14 | ||||||||||||||||||||||||||
Accrued interest | $ | $ 108,614 | ||||||||||||||||||||||||||
Debt conversion converted rate | 12.00% | ||||||||||||||||||||||||||
EMA [Member] | |||||||||||||||||||||||||||
Shares issued | shares | 34,768,337 | ||||||||||||||||||||||||||
Principle reductions | $ | $ 14,160 | ||||||||||||||||||||||||||
LG [Member] | |||||||||||||||||||||||||||
Shares issued | shares | 16,964,364 | ||||||||||||||||||||||||||
Principle reductions | $ | $ 7,541 | ||||||||||||||||||||||||||
Note Conversion Agreements [Member] | Rocky Road Capital, Inc [Member] | |||||||||||||||||||||||||||
Common stock, Issued | shares | 5,662,120 | 3,403,620 | |||||||||||||||||||||||||
Principal amount | $ | $ 566,212 | $ 340,362 | |||||||||||||||||||||||||
Principle reductions | $ | 566,212 | ||||||||||||||||||||||||||
Net loss on extinguishment of debt | $ | 3,589,717 | $ 1,361,448 | |||||||||||||||||||||||||
Subscription Agreements [Member] | Board of Directors [Member] | |||||||||||||||||||||||||||
Subscription aggregate amount | $ | $ 20,000 | $ 55,000 | |||||||||||||||||||||||||
Subscription aggregate shares | shares | 40,000 | 110,000 | |||||||||||||||||||||||||
Proceeds from convertible note | $ | $ 20,000 | $ 55,000 | |||||||||||||||||||||||||
Convertible Note with LG Capital Funding, LLC [Member] | |||||||||||||||||||||||||||
Common stock, Issued | shares | 333,372 | ||||||||||||||||||||||||||
Trading days | 10 days | ||||||||||||||||||||||||||
Principal amount | $ | $ 3,000 | ||||||||||||||||||||||||||
Convertible debt | $ | $ 52,500 | $ 10,261 | |||||||||||||||||||||||||
Accrued interest | $ | $ 94 | ||||||||||||||||||||||||||
Conversion rate | 58.00% | ||||||||||||||||||||||||||
Conversion price | $ / shares | $ 0.00928 | ||||||||||||||||||||||||||
Reduce in principal balance | $52,500 to $49,500 | ||||||||||||||||||||||||||
Proceeds from convertible note | $ | $ 45,000 | ||||||||||||||||||||||||||
Individual [Member] | |||||||||||||||||||||||||||
Fair value of the closing stock price | $ / shares | $ 0.10 | ||||||||||||||||||||||||||
Restricted shares of common stock | shares | 2,500 | ||||||||||||||||||||||||||
Securities Purchase Agreement [Member] | |||||||||||||||||||||||||||
Fair value of the closing stock price | $ / shares | $ 0.20 | ||||||||||||||||||||||||||
Restricted shares of common stock | shares | 100,000 | ||||||||||||||||||||||||||
Convertible Notes Payable [Member] | |||||||||||||||||||||||||||
Shares issued | shares | 88,431 | ||||||||||||||||||||||||||
Convertible debt | $ | $ 88,431 | ||||||||||||||||||||||||||
Net loss on extinguishment of debt | $ | $ 166,580 | ||||||||||||||||||||||||||
Consulting Contract [Member] | |||||||||||||||||||||||||||
Net loss on extinguishment of debt | $ | $ 500,000 | $ 250,000 | |||||||||||||||||||||||||
Common stock issued for services, Amount | $ | $ 250,000 | $ 125,000 |
ACQUISITION (Details Narrative)
ACQUISITION (Details Narrative) - USD ($) | Mar. 14, 2017 | Apr. 06, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 06, 2015 | Sep. 30, 2014 |
Accrued interest | $ 92,465 | ||||||||
Interest rate | 8.00% | 8.00% | |||||||
Conversion price | 5.00% | ||||||||
Due to related party | $ 136,960 | $ 139,029 | |||||||
Reverse stock split | 1:1000 | ||||||||
Lowest closing bid price | 90.00% | ||||||||
First Amendment [Member] | |||||||||
Non-refundable deposit | $ 100,000 | ||||||||
Joint Venture Termination Agreement [Member] | HYHI [Member] | |||||||||
Principal amount | $ 4,900,000 | ||||||||
Quarterly payments | $ 3,900,000 | ||||||||
Description of conversion price | equal to the lesser of $0.01 per share or fifty percent (50%) to the five (5) trading day average closing price immediately preceding the payment date, and (B) the remaining balance of Four Million (USD $4,000,000) payable in cash in a total of eight (8) equal quarterly installments of Five Hundred Thousand Dollars (USD $500,000), plus accrued interest to date, on the first day of each quarter beginning with January 1, 2017 and ending on January 1, 2019, convertible into shares of common stock of DEAC at fifty percent (50%) discount to the five (5) trading day average closing price immediately preceding the payment date, and other terms more fully described in the amended note set forth in the Amended and Restate Redeemable Note, thus cancelling the final two (2) quarterly payments (seventh and eighth quarterly payments) of Five Hundred Thousand Dollars (USD $500,000) each for a reduction of One Million Dollars (UD$1,000,000) | ||||||||
Joint Venture Termination Agreement [Member] | HYHI [Member] | October 1, 2016 [Member] | |||||||||
Separate payments | $ 900,000 | ||||||||
Joint Venture Termination Agreement [Member] | HYHI [Member] | July 1, 2016 [Member] | |||||||||
Separate payments | $ 450,000 | ||||||||
Third Amendment to Securities Purchase Agreement [Member] | |||||||||
Operating costs minimum amount | $ 500,000 | ||||||||
Monthly considration | 10,000,000 | ||||||||
Initial Payment | $ 100,000 | ||||||||
Third Amendment to Securities Purchase Agreement [Member] | HYHI [Member] | Revenue Share Plan [Member] | |||||||||
Revenue share split percentage | 75.00% | ||||||||
Minimum Licensing Fee | $ 250,000 | ||||||||
Purchase price | $ 10 | ||||||||
Minimum maintain amount | $ 25,000 | ||||||||
Agreement termination limit | $ 1,000,000 | ||||||||
Third Amendment to Securities Purchase Agreement [Member] | EGV [Member] | Revenue Share Plan [Member] | |||||||||
Revenue share split percentage | 25.00% | ||||||||
Revenue share split percentage after considration | 100.00% | ||||||||
Third Amendment to Securities Purchase Agreement [Member] | Convertible Note [Member] | |||||||||
Interest rate | 10.00% | ||||||||
Original amount | $ 9,900,000 | ||||||||
Revised amount | $ 4,900,000 | ||||||||
Principal Repayment | $ 450,000 | $ 450,000 | |||||||
Description of conversion price | equal to the lesser of $0.01 per share or fifty percent (50%) to the five (5) trading day average closing price immediately preceding the payment date, and (B) the remaining balance of Four Million (USD $4,000,000) payable in cash in a total of eight (8) equal quarterly installments of Five Hundred Thousand Dollars (USD $500,000), plus accrued interest to date | ||||||||
EMBM [Member] | |||||||||
Percentage of revenue | 25.00% | ||||||||
Reduced purchased price | $ 9,900,000 | ||||||||
Firts payment of note | $ 900,000 | ||||||||
Purchase price acquisition, description | Ten Million Dollars ($10,000,000) payable in the form of a Promissory Note (the Note). Upon the signing of the Agreement and Note, the $100,000 funds in escrow were paid to the Seller under the terms of the Note. | ||||||||
EMBM [Member] | First Amendment [Member] | |||||||||
Percentage of revenue | 25.00% | ||||||||
Reduced purchased price | $ 9,900,000 | ||||||||
Firts payment of note | $ 900,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes Details | ||
Tax benefit at the federal statutory rate | $ 1,764,435 | $ (825,113) |
Non deductible costs | (1,433,571) | 800,416 |
Increase in valuation allowance | (330,864) | 24,697 |
Income tax expense |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes Details 1 | ||
Deferred tax assets | $ 902,638 | $ 571,774 |
Valuation allowance | (902,638) | (571,774) |
Net deferred tax asset after valuation allowance |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Taxes Details Narrative | |
Operating loss carry forwards | $ 2,639,581 |
Expirey date | December 31, 2022 and September 30, 2035 |
Federal statutory income tax rate | 35.00% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Mar. 14, 2017 | Jan. 10, 2017 | Dec. 15, 2015 | Mar. 17, 2017 | Aug. 26, 2016 | Jul. 22, 2016 | May 24, 2016 | May 18, 2016 | Dec. 22, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 01, 2016 | Sep. 15, 2016 | Jul. 02, 2016 | May 27, 2016 | May 20, 2016 | Jan. 02, 2016 | Sep. 30, 2014 |
Accrued interest | $ 92,465 | ||||||||||||||||||
Interest rate | 8.00% | 8.00% | |||||||||||||||||
Conversion price | 5.00% | ||||||||||||||||||
Due to related party | $ 136,960 | $ 139,029 | |||||||||||||||||
Reverse stock split | 1:1000 | ||||||||||||||||||
Lowest closing bid price | 90.00% | ||||||||||||||||||
Baker Myers Warrant Transfer - Voting Trust [Member] | |||||||||||||||||||
Common stock held | $ 2,970,000 | ||||||||||||||||||
Reverse stock split | 1:1000 | ||||||||||||||||||
Baker Myers Warrant Transfer - Voting Trust [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||
Stock purchase warrant | 3,000,000 | ||||||||||||||||||
Common stock held | $ 30,000 | ||||||||||||||||||
Baker Myers Note and Share Cancellation and Exchange Agreement [Member] | |||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||
Principal amount | $ 500,000 | ||||||||||||||||||
Separate payments | $ 62,500 | ||||||||||||||||||
Description of conversion price | equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein | ||||||||||||||||||
Cancelled Amount | $ 179,965 | ||||||||||||||||||
Baker Myers Note and Share Cancellation and Exchange Agreement [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||
Stock purchase warrant | 3,000,000 | ||||||||||||||||||
Purchase price | $ 0.001 | ||||||||||||||||||
January 13, 2013 [Member] | Baker Myers Note and Share Cancellation and Exchange Agreement [Member] | |||||||||||||||||||
Accrued interest | $ 92,465 | ||||||||||||||||||
Original amount | 587,500 | ||||||||||||||||||
Principal amount | $ 87,500 | ||||||||||||||||||
JSJ [Member] | |||||||||||||||||||
Shares issued | 11,923,377 | ||||||||||||||||||
Principle reductions | $ 6,273 | ||||||||||||||||||
Principal amount | $ 14,417 | ||||||||||||||||||
Conversion price | 55.00% | ||||||||||||||||||
LG [Member] | |||||||||||||||||||
Shares issued | 16,964,364 | ||||||||||||||||||
Principle reductions | $ 7,541 | ||||||||||||||||||
Adar [Member] | |||||||||||||||||||
Shares issued | 38,880,995 | ||||||||||||||||||
Principle reductions | $ 32,713 | ||||||||||||||||||
Principal amount | $ 5,000 | ||||||||||||||||||
Conversion price | 58.00% | ||||||||||||||||||
EMA [Member] | |||||||||||||||||||
Shares issued | 34,768,337 | ||||||||||||||||||
Principle reductions | $ 14,160 | ||||||||||||||||||
Subsequent Event [Member] | Ricketts and Antol Stock Transfer - Voting Trustt [Member] | |||||||||||||||||||
Reverse stock split | 1:1000 | ||||||||||||||||||
Subsequent Event [Member] | Ricketts and Antol Stock Transfer - Voting Trustt [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||
Deposit shares | 500,000 | ||||||||||||||||||
Common stock held | $ 495,000 | ||||||||||||||||||
Preferred Stock held | 5,000 | ||||||||||||||||||
Subsequent Event [Member] | Ricketts and Antol Stock Transfer - Voting Trustt [Member] | Total Shares [Member] | |||||||||||||||||||
Deposit shares | 1,000,000 | ||||||||||||||||||
Common stock held | $ 990,000 | ||||||||||||||||||
Preferred Stock held | 10,000 | ||||||||||||||||||
Subsequent Event [Member] | Birch First Warrant Transfer - Voting Trust [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||
Stock purchase warrant | 4,000,000 | ||||||||||||||||||
Common stock held | $ 3,960,000 | ||||||||||||||||||
Preferred Stock held | 40,000 | ||||||||||||||||||
Reverse stock split | 1:1000 | ||||||||||||||||||
Subsequent Event [Member] | Baker Myers Warrant Transfer - Voting Trust [Member] | |||||||||||||||||||
Common stock held | $ 2,970,000 | ||||||||||||||||||
Reverse stock split | 1:1000 | ||||||||||||||||||
Subsequent Event [Member] | Baker Myers Warrant Transfer - Voting Trust [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||
Stock purchase warrant | 3,000,000 | ||||||||||||||||||
Common stock held | $ 30,000 | ||||||||||||||||||
Subsequent Event [Member] | Baker Myers Note and Share Cancellation and Exchange Agreement [Member] | |||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||
Principal amount | $ 500,000 | ||||||||||||||||||
Separate payments | $ 62,500 | ||||||||||||||||||
Description of conversion price | equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein | ||||||||||||||||||
Cancelled Amount | $ 179,965 | ||||||||||||||||||
Reimbursable expenses | 200,000 | ||||||||||||||||||
Subsequent Event [Member] | Baker Myers Note and Share Cancellation and Exchange Agreement [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||
Stock purchase warrant | 3,000,000 | ||||||||||||||||||
Purchase price | $ 0.001 | ||||||||||||||||||
Subsequent Event [Member] | Contractor Agreements [Member] | |||||||||||||||||||
Monthly considration | $ 5,000 | ||||||||||||||||||
Quarterly fee | $ 10,000 | ||||||||||||||||||
Subsequent Event [Member] | Contractor Agreements [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||
Stock purchase warrant | 1,000,000 | ||||||||||||||||||
Purchase price | $ 0.0001 | ||||||||||||||||||
Subsequent Event [Member] | Subsequent Term [Member] | Contractor Agreements [Member] | |||||||||||||||||||
Monthly considration | $ 10,000 | ||||||||||||||||||
Subsequent Event [Member] | January 13, 2013 [Member] | Baker Myers Note and Share Cancellation and Exchange Agreement [Member] | |||||||||||||||||||
Accrued interest | 92,465 | ||||||||||||||||||
Original amount | 587,500 | ||||||||||||||||||
Principal amount | 87,500 | ||||||||||||||||||
Subsequent Event [Member] | Chief Financial Officer [Member] | Contractor Agreements [Member] | |||||||||||||||||||
Monthly considration | 5,000 | ||||||||||||||||||
Quarterly fee | $ 10,000 | ||||||||||||||||||
Subsequent Event [Member] | Chief Financial Officer [Member] | Contractor Agreements [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||
Stock purchase warrant | 1,000,000 | ||||||||||||||||||
Purchase price | $ 0.0001 | ||||||||||||||||||
Subsequent Event [Member] | JSJ [Member] | |||||||||||||||||||
Shares issued | 11,923,377 | ||||||||||||||||||
Principle reductions | $ 6,273 | ||||||||||||||||||
Subsequent Event [Member] | LG [Member] | |||||||||||||||||||
Shares issued | 16,964,364 | ||||||||||||||||||
Principle reductions | $ 7,541 | ||||||||||||||||||
Subsequent Event [Member] | Adar [Member] | |||||||||||||||||||
Shares issued | 11,923,377 | ||||||||||||||||||
Principle reductions | $ 32,713 | ||||||||||||||||||
Subsequent Event [Member] | EMA [Member] | |||||||||||||||||||
Shares issued | 29,554,020 | ||||||||||||||||||
Principle reductions | $ 14,160 | ||||||||||||||||||
Separation and Settlement Agreements [Member] | Subsequent Event [Member] | Richard Phillips [Member] | |||||||||||||||||||
Quarterly fee | $ 10,000 | ||||||||||||||||||
Separation and Settlement Agreements [Member] | Subsequent Event [Member] | Brenton Mix [Member] | |||||||||||||||||||
Quarterly fee | $ 10,000 | ||||||||||||||||||
Separation and Settlement Agreements [Member] | Subsequent Event [Member] | Stephen Antol [Member] | |||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||
Principal amount | $ 40,000 | ||||||||||||||||||
Description of conversion price | equal to the lesser of $0.01 per share or a a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, and other terms and conditions set forth therein. | ||||||||||||||||||
Separation and Settlement Agreements [Member] | Subsequent Event [Member] | Dr. James G. Ricketts [Member] | |||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||
Principal amount | $ 40,000 | ||||||||||||||||||
Description of conversion price | equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, and other terms and conditions set forth therein. | ||||||||||||||||||
Separation and Settlement Agreements [Member] | Subsequent Event [Member] | Charles Rimlinger [Member] | |||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||
Principal amount | $ 40,000 | ||||||||||||||||||
Description of conversion price | equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, and other terms and conditions set forth therein. | ||||||||||||||||||
Contractor Agreements [Member] | Subsequent Event [Member] | Richard Phillips [Member] | Transaction One [Member] | |||||||||||||||||||
Monthly compensation | 1,250 | ||||||||||||||||||
Contractor Agreements [Member] | Subsequent Event [Member] | Richard Phillips [Member] | Transaction Two [Member] | |||||||||||||||||||
Monthly compensation | 2,500 | ||||||||||||||||||
Contractor Agreements [Member] | Subsequent Event [Member] | Richard Phillips [Member] | Transaction Three [Member] | |||||||||||||||||||
Monthly compensation | 5,000 | ||||||||||||||||||
Contractor Agreements [Member] | Subsequent Event [Member] | Brenton Mix [Member] | Transaction One [Member] | |||||||||||||||||||
Monthly compensation | 10,000 | ||||||||||||||||||
Contractor Agreements [Member] | Subsequent Event [Member] | Brenton Mix [Member] | Transaction Two [Member] | |||||||||||||||||||
Monthly compensation | 12,500 | ||||||||||||||||||
Contractor Agreements [Member] | Subsequent Event [Member] | Brenton Mix [Member] | Transaction Three [Member] | |||||||||||||||||||
Monthly compensation | 15,000 | ||||||||||||||||||
Contractor Agreements [Member] | Subsequent Event [Member] | Brenton Mix [Member] | Transaction Four [Member] | |||||||||||||||||||
Monthly compensation | $ 20,000 | ||||||||||||||||||
Joint Venture Agreement [Member] | Subsequent Event [Member] | WOD [Member] | |||||||||||||||||||
Ownership interest | 20.00% | ||||||||||||||||||
Series B Preferred Stock exchange | 199,000 | ||||||||||||||||||
Additional capital contributions | $ 4,000,000 | ||||||||||||||||||
New shares | 18,801,000 | ||||||||||||||||||
Reverse stock split | 1:1000 | ||||||||||||||||||
Joint Venture Agreement [Member] | Subsequent Event [Member] | WOD [Member] | Minimum [Member] | |||||||||||||||||||
Additional capital contributions | $ 10,000 | ||||||||||||||||||
Joint Venture Agreement [Member] | Subsequent Event [Member] | WOD [Member] | Maximum [Member] | |||||||||||||||||||
Additional capital contributions | $ 8,000,000 | ||||||||||||||||||
Joint Venture Agreement [Member] | Subsequent Event [Member] | WODH [Member] | |||||||||||||||||||
Ownership interest | 80.00% | ||||||||||||||||||
Acquisition of WOD Markets LLC [Member] | Subsequent Event [Member] | |||||||||||||||||||
Ownership interest | 100.00% | ||||||||||||||||||
Acquisition of WOD Markets LLC [Member] | Subsequent Event [Member] | Third Closing [Member] | |||||||||||||||||||
Ownership interest | 60.00% | ||||||||||||||||||
New shares | 14,800,000 | ||||||||||||||||||
Acquisition of WOD Markets LLC [Member] | Subsequent Event [Member] | Second Closing [Member] | |||||||||||||||||||
Ownership interest | 20.00% | ||||||||||||||||||
New shares | 100,000 | ||||||||||||||||||
Acquisition of WOD Markets LLC [Member] | Subsequent Event [Member] | First Closing [Member] | |||||||||||||||||||
Ownership interest | 20.00% | ||||||||||||||||||
Series B Preferred Stock exchange | 100,000 | ||||||||||||||||||
Series B Preferred Stock exchange description | 500,000 each by Dr. Ricketts and Mr. Antol for a total of 25,000,000 shares of Common Stock of the DEAC to be issued post the date the Reverse Split is effective. | ||||||||||||||||||
Reverse stock split | 1:1000 | ||||||||||||||||||
Initial funding | $ 40,000 | ||||||||||||||||||
Letter of Intent - WOD Market LLC [Member] | Subsequent Event [Member] | |||||||||||||||||||
Operating costs minimum amount | $ 40,000 | ||||||||||||||||||
Acquisition of a new subsidiary [Member] | Subsequent Event [Member] | |||||||||||||||||||
Ownership interest | 100.00% | ||||||||||||||||||
Payment against advances | $ 17,500 | ||||||||||||||||||
Equity Purchase Agreement [Member] | Subsequent Event [Member] | |||||||||||||||||||
Original amount | $ 50,000 | ||||||||||||||||||
New shares | 5,000,000 | ||||||||||||||||||
Equity Purchase Agreement [Member] | Subsequent Event [Member] | Tarpon [Member] | |||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||
Principal amount | $ 50,000 | ||||||||||||||||||
Quarterly payments | 12,500 | ||||||||||||||||||
Shares sold value | $ 15,000,000 | ||||||||||||||||||
Description of conversion price | equal to fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 9.99% and other terms and conditions set forth therein | ||||||||||||||||||
Definitive Agreement [Member] | Subsequent Event [Member] | |||||||||||||||||||
Ownership interest | 100.00% | ||||||||||||||||||
Definitive Agreement [Member] | Subsequent Event [Member] | Third Closing [Member] | |||||||||||||||||||
Ownership interest | 60.00% | ||||||||||||||||||
Transfered shares | 12,000,000 | ||||||||||||||||||
New shares | 19,800,000 | ||||||||||||||||||
Definitive Agreement [Member] | Subsequent Event [Member] | Second Closing [Member] | |||||||||||||||||||
Ownership interest | 20.00% | ||||||||||||||||||
Transfered shares | 4,000,000 | ||||||||||||||||||
Series B Preferred Stock exchange | 100,000 | ||||||||||||||||||
Definitive Agreement [Member] | Subsequent Event [Member] | First Closing [Member] | |||||||||||||||||||
Ownership interest | 20.00% | ||||||||||||||||||
Transfered shares | 4,000,000 | ||||||||||||||||||
Series B Preferred Stock exchange | 100,000 | ||||||||||||||||||
Due to related party | $ 25,000 | ||||||||||||||||||
Initial funding | $ 250,000 | ||||||||||||||||||
Definitive Agreement [Member] | Subsequent Event [Member] | Minimum [Member] | Third Closing [Member] | |||||||||||||||||||
Initial funding | $ 750,000 | ||||||||||||||||||
Definitive Agreement [Member] | Subsequent Event [Member] | Minimum [Member] | Second Closing [Member] | |||||||||||||||||||
Initial funding | $ 250,000 | ||||||||||||||||||
Definitive Agreement [Member] | Subsequent Event [Member] | Maximum [Member] | Third Closing [Member] | |||||||||||||||||||
Initial funding | 1,500,000 | ||||||||||||||||||
Definitive Agreement [Member] | Subsequent Event [Member] | Maximum [Member] | Second Closing [Member] | |||||||||||||||||||
Initial funding | 750,000 | ||||||||||||||||||
Joint Venture Termination Agreement [Member] | HYHI [Member] | |||||||||||||||||||
Principal amount | $ 4,900,000 | ||||||||||||||||||
Quarterly payments | $ 3,900,000 | ||||||||||||||||||
Description of conversion price | equal to the lesser of $0.01 per share or fifty percent (50%) to the five (5) trading day average closing price immediately preceding the payment date, and (B) the remaining balance of Four Million (USD $4,000,000) payable in cash in a total of eight (8) equal quarterly installments of Five Hundred Thousand Dollars (USD $500,000), plus accrued interest to date, on the first day of each quarter beginning with January 1, 2017 and ending on January 1, 2019, convertible into shares of common stock of DEAC at fifty percent (50%) discount to the five (5) trading day average closing price immediately preceding the payment date, and other terms more fully described in the amended note set forth in the Amended and Restate Redeemable Note, thus cancelling the final two (2) quarterly payments (seventh and eighth quarterly payments) of Five Hundred Thousand Dollars (USD $500,000) each for a reduction of One Million Dollars (UD$1,000,000) | ||||||||||||||||||
Joint Venture Termination Agreement [Member] | HYHI [Member] | October 1, 2016 [Member] | |||||||||||||||||||
Separate payments | $ 900,000 | ||||||||||||||||||
Joint Venture Termination Agreement [Member] | HYHI [Member] | July 1, 2016 [Member] | |||||||||||||||||||
Separate payments | 450,000 | ||||||||||||||||||
Joint Venture Termination Agreement [Member] | Subsequent Event [Member] | HYHI [Member] | |||||||||||||||||||
Principal amount | 4,900,000 | ||||||||||||||||||
Quarterly payments | $ 3,900,000 | ||||||||||||||||||
Description of conversion price | equal to the lesser of $0.01 per share or fifty percent (50%) to the five (5) trading day average closing price immediately preceding the payment date, and (B) the remaining balance of Four Million (USD $4,000,000) payable in cash in a total of eight (8) equal quarterly installments of Five Hundred Thousand Dollars (USD $500,000), plus accrued interest to date, on the first day of each quarter beginning with January 1, 2017 and ending on January 1, 2019, convertible into shares of common stock of DEAC at fifty percent (50%) discount to the five (5) trading day average closing price immediately preceding the payment date, and other terms more fully described in the amended note set forth in the Amended and Restate Redeemable Note, thus cancelling the final two (2) quarterly payments (seventh and eighth quarterly payments) of Five Hundred Thousand Dollars (USD $500,000) each for a reduction of One Million Dollars (UD$1,000,000) | ||||||||||||||||||
Joint Venture Termination Agreement [Member] | Subsequent Event [Member] | HYHI [Member] | October 1, 2016 [Member] | |||||||||||||||||||
Separate payments | $ 900,000 | ||||||||||||||||||
Joint Venture Termination Agreement [Member] | Subsequent Event [Member] | HYHI [Member] | July 1, 2016 [Member] | |||||||||||||||||||
Separate payments | $ 450,000 | ||||||||||||||||||
Third Amendment to Securities Purchase Agreement [Member] | |||||||||||||||||||
Operating costs minimum amount | $ 500,000 | ||||||||||||||||||
Monthly considration | 10,000,000 | ||||||||||||||||||
Initial Payment | $ 100,000 | ||||||||||||||||||
Third Amendment to Securities Purchase Agreement [Member] | HYHI [Member] | Revenue Share Plan [Member] | |||||||||||||||||||
Revenue share split percentage | 75.00% | ||||||||||||||||||
Minimum Licensing Fee | $ 250,000 | ||||||||||||||||||
Purchase price | $ 10 | ||||||||||||||||||
Minimum maintain amount | $ 25,000 | ||||||||||||||||||
Agreement termination limit | $ 1,000,000 | ||||||||||||||||||
Third Amendment to Securities Purchase Agreement [Member] | EGV [Member] | Revenue Share Plan [Member] | |||||||||||||||||||
Revenue share split percentage | 25.00% | ||||||||||||||||||
Revenue share split percentage after considration | 100.00% | ||||||||||||||||||
Third Amendment to Securities Purchase Agreement [Member] | Convertible Note [Member] | |||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||
Original amount | $ 9,900,000 | ||||||||||||||||||
Revised amount | $ 4,900,000 | ||||||||||||||||||
Principal Repayment | 450,000 | 450,000 | |||||||||||||||||
Description of conversion price | equal to the lesser of $0.01 per share or fifty percent (50%) to the five (5) trading day average closing price immediately preceding the payment date, and (B) the remaining balance of Four Million (USD $4,000,000) payable in cash in a total of eight (8) equal quarterly installments of Five Hundred Thousand Dollars (USD $500,000), plus accrued interest to date | ||||||||||||||||||
Third Amendment to Securities Purchase Agreement [Member] | Subsequent Event [Member] | |||||||||||||||||||
Operating costs minimum amount | $ 500,000 | ||||||||||||||||||
Monthly considration | 10,000,000 | ||||||||||||||||||
Initial Payment | $ 100,000 | ||||||||||||||||||
Third Amendment to Securities Purchase Agreement [Member] | Subsequent Event [Member] | HYHI [Member] | Revenue Share Plan [Member] | |||||||||||||||||||
Revenue share split percentage | 75.00% | ||||||||||||||||||
Minimum Licensing Fee | $ 250,000 | ||||||||||||||||||
Purchase price | $ 10 | ||||||||||||||||||
Minimum maintain amount | $ 25,000 | ||||||||||||||||||
Agreement termination limit | $ 1,000,000 | ||||||||||||||||||
Third Amendment to Securities Purchase Agreement [Member] | Subsequent Event [Member] | EGV [Member] | Revenue Share Plan [Member] | |||||||||||||||||||
Revenue share split percentage | 25.00% | ||||||||||||||||||
Revenue share split percentage after considration | 100.00% | ||||||||||||||||||
Third Amendment to Securities Purchase Agreement [Member] | Subsequent Event [Member] | Convertible Note [Member] | |||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||
Original amount | $ 9,900,000 | ||||||||||||||||||
Revised amount | $ 4,900,000 | ||||||||||||||||||
Principal Repayment | $ 450,000 | $ 450,000 | |||||||||||||||||
Description of conversion price | equal to the lesser of $0.01 per share or fifty percent (50%) to the five (5) trading day average closing price immediately preceding the payment date, and (B) the remaining balance of Four Million (USD $4,000,000) payable in cash in a total of eight (8) equal quarterly installments of Five Hundred Thousand Dollars (USD $500,000), plus accrued interest to date | ||||||||||||||||||
Convertible Redeemable Note for Unpaid Invoices [Member] | Subsequent Event [Member] | JMS [Member] | |||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||
Principal amount | $ 27,500 | ||||||||||||||||||
Invoices for services | $ 20,000 | ||||||||||||||||||
Purchase price | $ 0.01 | ||||||||||||||||||
Lowest closing bid price | 58.00% | ||||||||||||||||||
Convertible Redeemable Note for Unpaid Invoices [Member] | Subsequent Event [Member] | JMS [Member] | July 31, 2016 [Member] | |||||||||||||||||||
Invoices for services | $ 7,500 | ||||||||||||||||||
July 23, 2015 [Member] | Subsequent Event [Member] | |||||||||||||||||||
Principal amount | $ 400,000 | ||||||||||||||||||
Description of conversion price | equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days | ||||||||||||||||||
July 23, 2015 [Member] | Subsequent Event [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||
Principal amount | $ 300,000 | ||||||||||||||||||
Description of conversion price | equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein | ||||||||||||||||||
Stock purchase warrant | 4,000,000 | ||||||||||||||||||
Purchase price | $ 0.001 | ||||||||||||||||||
July 23, 2015 [Member] | Subsequent Event [Member] | Amended and Restated Consulting Agreement [Member] | |||||||||||||||||||
Stock purchase warrant | 1,000,000 | ||||||||||||||||||
Purchase price | $ 0.001 | ||||||||||||||||||
Monthly considration | $ 10,000 | ||||||||||||||||||
Sixth Amendment [Member] | |||||||||||||||||||
Principal amount | $ 175,000 | ||||||||||||||||||
Description of conversion price | equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein. | ||||||||||||||||||
Sixth Amendment [Member] | September 1, 2013 [Member] | |||||||||||||||||||
Original amount | $ 50,000 | ||||||||||||||||||
Working capital | $ 50,000 | ||||||||||||||||||
Sixth Amendment [Member] | January 1, 2016 [Member] | |||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||
Separate payments | $ 25,000 | ||||||||||||||||||
Sixth Amendment [Member] | Subsequent Event [Member] | |||||||||||||||||||
Principal amount | $ 175,000 | ||||||||||||||||||
Description of conversion price | equal to the lesser of $0.01 per share or a discount of fifty-eight percent (58%) of the lowest trading price for the ten (10) prior trading days, subject to aggregate conversion limitations of 4.99% and other terms and conditions set forth therein. | ||||||||||||||||||
Sixth Amendment [Member] | Subsequent Event [Member] | July 23, 2015 [Member] | |||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||
Original amount | $ 300,000 | ||||||||||||||||||
Sixth Amendment [Member] | Subsequent Event [Member] | September 1, 2013 [Member] | |||||||||||||||||||
Original amount | 50,000 | ||||||||||||||||||
Working capital | $ 50,000 | ||||||||||||||||||
Sixth Amendment [Member] | Subsequent Event [Member] | January 1, 2016 [Member] | |||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||
Separate payments | $ 25,000 |