Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Dec. 31, 2013 | Feb. 12, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'WARP 9, INC. | ' |
Entity Central Index Key | '0000743758 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 96,135,126 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
CURRENT ASSETS | ' | ' |
Cash | $24,166 | $12,636 |
Accounts Receivable, net | 70,618 | 62,887 |
Prepaid and Other Current Assets | 8,207 | 1,343 |
TOTAL CURRENT ASSETS | 102,991 | 76,866 |
PROPERTY & EQUIPMENT, at cost | ' | ' |
Furniture, Fixtures & Equipment | 10,349 | 83,288 |
Computer Equipment | 22,741 | 266,789 |
Computer Software | 1,754 | 14,840 |
Leasehold Improvements | ' | 18,696 |
Total Property and Equipment, at cost | 34,844 | 383,613 |
Less accumulated depreciation | -21,709 | -333,215 |
NET PROPERTY AND EQUIPMENT | 13,135 | 50,398 |
OTHER ASSETS | ' | ' |
Lease Deposit | 14,199 | 8,244 |
Licensing fees | ' | 5,000 |
TOTAL OTHER ASSETS | 14,199 | 13,244 |
TOTAL ASSETS | 130,325 | 140,508 |
CURRENT LIABILITIES | ' | ' |
Accounts Payable | 219,246 | 176,871 |
Accrued Expenses | 95,833 | 91,966 |
Accrued Interest | 9,940 | 7,948 |
Deferred Operating Lease Liability | 4,986 | 6,117 |
Notes Payable, Wings Fund, net | 168,856 | 126,984 |
Note Payable, Other | 37,867 | 37,867 |
Customer Deposit | 6,846 | 6,846 |
TOTAL CURRENT LIABILITIES | 543,574 | 454,599 |
TOTAL LIABILITIES | 543,574 | 454,599 |
SHAREHOLDERS' EQUITY/ (DEFICIT) | ' | ' |
Preferred Stock, $0.001 Par Value; 5,000,000 Authorized Shares; no shares issued and outstanding | ' | ' |
Common Stock, $0.001 Par Value; 495,000,000 Authorized Shares; 96,135,126 and 96,135,126 Shares Issued and Outstanding , respectively | 96,135 | 96,135 |
Additional Paid In Capital | 7,392,287 | 7,373,623 |
Accumulated Deficit | -7,901,671 | -7,783,849 |
TOTAL SHAREHOLDERS' EQUITY/ (DEFICIT) | -413,249 | -314,091 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/ (DEFICIT) | $130,325 | $140,508 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock shares authorized | 495,000,000 | 495,000,000 |
Common stock shares issued | 96,135,126 | 96,135,126 |
Common stock shares outstanding | 96,135,126 | 96,135,126 |
Consolidated_Statement_Of_Oper
Consolidated Statement Of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement [Abstract] | ' | ' | ' | ' |
REVENUE | $376,179 | $260,706 | $611,495 | $611,437 |
COST OF SERVICES | 101,938 | 49,002 | 168,623 | 102,329 |
GROSS PROFIT | 274,241 | 211,704 | 442,872 | 509,108 |
OPERATING EXPENSES | ' | ' | ' | ' |
Selling, general and administrative expenses | 248,258 | 259,834 | 504,299 | 572,449 |
Research and development | ' | ' | ' | 13,307 |
Stock option expense | 5,825 | 5,840 | 11,664 | 9,521 |
Depreciation and amortization | 1,228 | 5,411 | 40,424 | 11,063 |
TOTAL OPERATING EXPENSES | 255,311 | 271,085 | 556,387 | 606,340 |
INCOME/(LOSS) FROM OPERATIONS BEFORE OTHER INCOME/(EXPENSES) | 18,930 | -59,381 | -113,515 | -97,232 |
OTHER INCOME/(EXPENSES) | ' | ' | ' | ' |
Other income | ' | 7,500 | 5,000 | 15,000 |
Gain on disposal of fixed assets | 9,358 | ' | 9,778 | ' |
Gain on extinguishment of debt | ' | ' | ' | 8,808 |
Interest expense | -8,168 | -996 | -16,332 | -1,992 |
TOTAL OTHER INCOME/ (EXPENSES) | 1,190 | 6,504 | -1,554 | 21,816 |
INCOME/(LOSS) FROM OPERATIONS BEFORE PROVISION FOR TAXES | 20,120 | -52,877 | -115,069 | -75,416 |
Income taxes paid | ' | ' | -2,753 | -1,616 |
Income tax (provision)/benefit | ' | ' | ' | ' |
PROVISION FOR INCOME (TAXES)/BENEFIT | ' | ' | -2,753 | -1,616 |
NET INCOME/( LOSS) | $20,120 | ($52,877) | ($117,822) | ($77,032) |
EARNINGS PER SHARE BASIC AND DILUTED | $0 | $0 | $0 | $0 |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING BASIC AND DILUTED | 96,135,126 | 96,135,126 | 96,135,126 | 96,135,126 |
Consolidated_Statement_Of_Shar
Consolidated Statement Of Shareholders' Equity (Deficit) (USD $) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance, Amount at Jun. 30, 2013 | ' | $96,135 | $7,373,623 | ($7,783,849) | ($314,091) |
Balance, Shares at Jun. 30, 2013 | ' | 96,135,126 | ' | ' | 96,135,126 |
Stock compensation expense | ' | ' | 11,664 | ' | 11,664 |
Discount on Note | ' | ' | 7,000 | ' | 7,000 |
Net Loss | ' | ' | ' | -117,822 | -117,822 |
Balance, Amount at Dec. 31, 2013 | ' | $96,135 | $7,392,287 | ($7,901,671) | ($413,249) |
Balance, Shares at Dec. 31, 2013 | ' | 96,135,126 | ' | ' | 96,135,126 |
Consolidated_Statement_Of_Cash
Consolidated Statement Of Cash Flows (USD $) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Cash Flows [Abstract] | ' | ' |
Net loss | ($117,822) | ($77,032) |
Adjustment to reconcile net loss to net cash (used) by operating activities | ' | ' |
Depreciation and amortization | 40,425 | 11,063 |
Bad debt expense | ' | -10,000 |
Cost of stock compensation recognized | 11,664 | 9,521 |
Amortization of Debt Discount | 5,745 | ' |
Gain/ Loss on sale of fixed assets | -9,778 | ' |
Contributed services | ' | 12,000 |
(Increase) Decrease in: | ' | ' |
Accounts receivable | -7,731 | 30,068 |
Prepaid and other assets | -12,819 | 2,973 |
Other assets | 5,000 | 6,000 |
Increase (Decrease) in: | ' | ' |
Accounts payable | 42,375 | 20,398 |
Accrued expenses | 13,986 | -5,442 |
Deferred income | ' | -25,553 |
Other liabilities | -1,131 | 2,013 |
NET CASH (USED) IN OPERATING ACTIVITIES | -30,086 | -23,991 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of property and equipment | -3,162 | -5,017 |
Sale of PP&E | 9,778 | ' |
NET CASH PROVIDED/( USED) IN INVESTING ACTIVITIES | 6,616 | -5,017 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from issuance of note | 35,000 | ' |
NET CASH PROVIDED/(USED) IN FINANCING ACTIVITIES | 35,000 | ' |
NET INCREASE/(DECREASE) IN CASH | 11,530 | -29,008 |
CASH, BEGINNING OF YEAR | 12,636 | 63,104 |
CASH, END OF PERIOD | 24,166 | 34,096 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ' | ' |
Interest paid | ' | ' |
Taxes paid | ' | $475 |
Basis_Of_Presentation
Basis Of Presentation | 6 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of presentation | ' |
1. BASIS OF PRESENTATION | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included. Operating results for the six months ended December 31, 2013 are not necessarily indicative of the results that may be expected for the year ending June 30, 2014. For further information refer to the financial statements and footnotes thereto included in the Company's Form 10K for the year ended June 30, 2013. |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 6 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Summary of significant accounting policies | ' | ||
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
This summary of significant accounting policies of Warp 9, Inc. is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements. | |||
Accounts Receivable | |||
The Company extends credit to its customers, who are located primarily in California. Accounts receivable are customer obligations due under normal trade terms. The Company performs continuing credit evaluations of its customers' financial condition. Management reviews accounts receivable on a regular basis, based on contracted terms and how recently payments have been received to determine if any such amounts will potentially be uncollected. The Company includes any balances that are determined to be uncollectible in its allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off. The balance of the allowance account at December 31, 2013 and June 30, 2013 are $24,907 and $24,907, respectively. | |||
Revenue Recognition | |||
The Company recognizes income when the service is provided or when product is delivered. We present revenue, net of customer incentives. Most of the income is generated from monthly fees from clients who subscribe to the Company's fully hosted web based e-commerce products on terms averaging twelve months. Unless terminated accordingly with prior written notice, the agreements automatically renew for another term. | |||
We provide online marketing services that we purchase from third parties. The gross revenue presented in our statement of operations is in accordance with ASC 605-45. | |||
We also offer professional services such as development services. The fees for development services with multiple deliverables constitute a separate unit of accounting in accordance with ASC 605-25, which are recognized as the work is performed. | |||
Upfront fees for development services or other customer services are deferred until certain implementation or contractual milestones have been achieved. The deferred revenue as of December 31, 2013 and June 30, 2013 was $0 and $0, respectively. | |||
For the quarter ended, December 31, 2013, monthly recurring fees for the Company’s total commerce platform (“TCP”), the Company’s Internet commerce system (“ICS”), and mobile services account for 25% of the Company’s total revenues, professional services account for 74% and the remaining 1% of total revenues are from resale of third party products and services. | |||
For the quarter ended, December 31, 2012, monthly recurring fees for TCP, ICS, and mobile services account for 22% of the Company’s total revenues, professional services account for 73% and the remaining 5% of total revenues are from resale of third party products and services. | |||
Stock-Based Compensation | |||
The Company addressed the accounting for share-based payment transactions in which an enterprise receives employee services in exchange for either equity instruments of the enterprise or liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. The transactions are accounted for using a fair-value-based method and recognized as expenses in our statement of income. There was no material impact on the Company’s financial statement of operations. | |||
Stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that is ultimately expected to vest. Stock-based compensation expense recognized in the consolidated statement of operations during the three months ended December 31, 2013, included compensation expense for the stock-based payment awards granted prior to, but not yet vested, as of December 31, 2013 based on the grant date fair value estimated. Stock-based compensation expense recognized in the statement of income for the six months ended December 31, 2013 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. The stock-based compensation expense recognized in the consolidated statements of operations during the six months ended December 31, 2013 and 2012 are $11,664 and $9,521, respectively. | |||
Recently Issued Accounting Pronouncements | |||
Management reviewed accounting pronouncements issued during the six months ended December 31, 2013, and no pronouncements were adopted during the period. | |||
Reclassification | |||
Certain statement of operations amounts for the six months ended December 31, 2012 were reclassified to conform to the presentation of the period ended December 31, 2013. |
Liquidity_And_Operations
Liquidity And Operations | 6 Months Ended |
Dec. 31, 2013 | |
Risks and Uncertainties [Abstract] | ' |
Liquidity and operations | ' |
3. LIQUIDITY AND OPERATIONS | |
The Company had net losses of $117,822 and $77,032 for the six months periods ended December 31, 2013 and 2012, respectively, and net cash used in operating activities of $30,086 and $23,991 for the same periods, respectively. | |
While we expect that our capital needs in the foreseeable future will be met by cash-on-hand and existing cash flow, there is no assurance that the Company will generate any or sufficient positive cash flows, or have sufficient capital, to finance its growth and business operations, or that such capital will be available on terms that are favorable to the Company or at all. The Company has recently been incurring operating losses and experiencing negative cash flow. In the current financial environment, it could become difficult for the Company to obtain business leases and other equipment financing. There is no assurance that we would be able to obtain additional working capital through the private placement of common stock or from any other source. | |
Going Concern | |
The accompanying financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. The Company does not generate significant revenue, and has negative cash flows from operations, which raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, an additional cash infusion. Management believes the existing shareholders and potential prospective new investors will provide the additional cash needed to meet the Company’s obligations as they become due, and will allow the development of its core of business. |
Convertible_Note_Payable
Convertible Note Payable | 6 Months Ended |
Dec. 31, 2013 | |
Convertible Note Payable | ' |
Convertible note payable | ' |
4. CONVERTIBLE NOTE PAYABLE | |
On March 25, 2013, the Company signed a convertible promissory note ("the March 2013 Note") in the amount of $100,000, at which time an initial advance of $50,000 was received to cover operational expenses. The lender, Wings Fund, Inc., advanced an additional $20,000 on April 16, 2013, an additional $15,000 on May 1, 2013 and an additional $15,000 on May 16, 2013, for a total draw of $100,000. The terms of the March 2013 Note allow the lender to convert all or part of the outstanding balance plus accrued interest, at any time after the effective date, at a conversion price of the lower of (a) $0.015 per share, or (b) 50% of the lowest trade price of Common Stock recorded on any trade day after the effective date of the agreement. The March 2013 Note bears interest at a rate of 10% per year and matures one year from the effective date of each advance. | |
On May 16, 2013, the Company signed a convertible promissory note ("the May 2013 Note") in the amount of $100,000, at which time an initial advance of $10,000 was received to cover operational expenses. The lender, Wings Fund, Inc., advanced an additional $20,000 on June 3, 2013, an additional $25,000 on July 2, 2013 and an additional $10,000 on September 30, 2013, for a total draw of $65,000. The terms of the May 2013 Note allow the lender to convert all or part of the outstanding balance plus accrued interest, at any time after the effective date, at a conversion price of the lower of (a) $0.015 per share, or | |
(b) 50% of the lowest trade price of Common Stock recorded on any trade day after the effective date of the agreement. At the time of issuance, the Company recognized a discount on the May 2013 Note in the amount of $6,000 and an additional $7,000 during the quarter ended September 30, 2013, due to the beneficial conversion feature. This discount will be recognized over twelve months, beginning on May 16, 2013. For the six months ended December 31, 2013 and the year ended June 30, 2013, the Company included $5,746 and $542, respectively, in interest expense related to the discount. The May 2013 Note bears interest at a rate of 10% per year and matures one year from the effective date of each advance. |
Related_Parties
Related Parties | 6 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related parties | ' |
5. RELATED PARTIES | |
During the quarter ended September 30, 2013 and fiscal year ended June 30, 2013, the Company received a total of $35,000 and $130,000, respectively, from Wings Fund, Inc., an affiliate of the Company, pursuant to the March 2013 Note and the May 2013 Note. See footnote 4 for details regarding the March 2013 Note and the May 2013 Note. During the quarter ended December 31, 2013, the Company did not receive any outside funding. | |
During the fiscal year ended June 30, 2012, the Company signed a licensing agreement with PageTransformer, to obtain expertise in the area of mobile app and mobile web development. This licensing agreement expires in the year ended June 30, 2014 and will not be renewed. The two founders of PageTransformer, Andrew VanNoy and Zachary Bartlett, are our current Chief Executive Officer and our current Vice President of Operations, respectively. Other than the original licensing fee paid to PageTransformer, the Company has not made any subsequent payments to PageTransformer under the licensing agreement. |
Capital_Stock
Capital Stock | 6 Months Ended |
Dec. 31, 2013 | |
Capital Stock | ' |
Capital stock | ' |
6. CAPITAL STOCK | |
At December 31, 2013 and 2012, the Company’s authorized stock consists of 495,000,000 shares of common stock, par value $0.001 per share. The Company is also authorized to issue 5,000,000 shares of preferred stock with a par value of $0.001. The rights, preferences and privileges of the holders of the preferred stock will be determined by the Board of Directors prior to issuance of such shares. No transactions affecting capital stock were noted during the quarter ended December 31, 2013 or the fiscal year ended June 30, 2013. |
Stock_Options_And_Warrants
Stock Options And Warrants | 6 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Stock Options And Warrants | ' | ||||||||||
Stock options and warrants | ' | ||||||||||
7. STOCK OPTIONS AND WARRANTS | |||||||||||
On July 10, 2003, the Company adopted the Warp 9, Inc. Stock Option Plan for Directors, Executive Officers, and Employees of and Key Consultants to the Company. This Plan authorized the grant of stock options to purchase up to 25,000,000 shares of common stock until July 10, 2013. Accordingly no new options may be granted under the Plan, but the terms and conditions of the Plan still govern all outstanding options under the Plan. Options granted under the Plan may be either Incentive Options or Nonqualified Options, and are administered by the Company’s Board of Directors. Each option may be exercisable in full or in installment and at such time as designated by the Board. Notwithstanding any other provision of the Plan or of any Option Agreement, each option expires on the date specified in the Option Agreement, which date may be no later than the tenth anniversary of the date on which the option was granted (fifth anniversary in the case of an Incentive Option granted to a greater-than-10% stockholder). The purchase price per share of the Common Stock under each Incentive Option is to be no less than the Fair Market Value of the Common Stock on the date the option is granted (110% of the Fair Market Value in the case of a greater-than-10% stockholder). The purchase price per share of the Common Stock under each Nonqualified Option is to be specified by the Board at the time the Option is granted, and may be less than, equal to, or greater than the Fair Market Value of the shares of Common Stock on the date such Nonqualified Option is granted, but may be no less than 85% of the Fair Market Value of the Common Stock on the date of grant. The Plan provides specific language as to the termination of options granted. | |||||||||||
The weighted average remaining contractual life of options outstanding issued under the plan as of December 31, 2013 was as follows: | |||||||||||
Exercise Prices | Number of Options Outstanding | Weighted Average remaining contractual life (years) | |||||||||
$ | 0.05 | 8,000 | 4.58 | ||||||||
$ | 0.004 | 500,000 | 7.79 | ||||||||
508,000 | |||||||||||
On October 12, 2011, the Company granted 3,000,000 employee qualified (incentive) stock options, and 500,000 non-qualified stock options at an exercise price of $0.004 per share. The options vest 1/48th monthly and expire on October 12, 2021. During the six months ended December 31, 2012, 2,500,000 of these options were forfeited due to terminations. | |||||||||||
On August 13, 2012, the Company granted 12,500,000 non-qualified stock options at an exercise price of $0.0053 per share. The options vest 1/36th monthly and expire on August 13, 2019. | |||||||||||
A summary of the Company’s stock option activity for the three months ending December 31, 2013, and related information follows: | |||||||||||
31-Dec-13 | |||||||||||
Options | Weighted | ||||||||||
average | |||||||||||
exercise | |||||||||||
price | |||||||||||
Outstanding -beginning of period | 13,508,000 | $ | 0.005 | ||||||||
Granted | — | — | |||||||||
Exercised | — | — | |||||||||
Forfeited | — | — | |||||||||
Outstanding - end of period | 13,508,000 | $ | 0.005 | ||||||||
Exercisable at the end of period | 6,328,320 | $ | 0.005 | ||||||||
Weighted average fair value of | |||||||||||
options granted during the year | $ | — | |||||||||
The Black Scholes option valuation model was developed for use in estimating the fair value of traded options, which do not have vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions, including the expected stock price volatility. Because the Company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options. |
Subsequent_Events
Subsequent Events | 6 Months Ended | ||
Dec. 31, 2013 | |||
Subsequent Events | ' | ||
Subsequent events | ' | ||
8. SUBSEQUENT EVENTS | |||
Management has evaluated subsequent events according to the requirements of ASC TOPIC 855, and has determined that no such events require disclosure. | |||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policies) | 6 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Accounts receivable | ' | ||
Accounts Receivable | |||
The Company extends credit to its customers, who are located primarily in California. Accounts receivable are customer obligations due under normal trade terms. The Company performs continuing credit evaluations of its customers' financial condition. Management reviews accounts receivable on a regular basis, based on contracted terms and how recently payments have been received to determine if any such amounts will potentially be uncollected. The Company includes any balances that are determined to be uncollectible in its allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off. The balance of the allowance account at December 31, 2013 and June 30, 2013 are $24,907 and $24,907, respectively. | |||
Revenue recognition | ' | ||
Revenue Recognition | |||
The Company recognizes income when the service is provided or when product is delivered. We present revenue, net of customer incentives. Most of the income is generated from monthly fees from clients who subscribe to the Company's fully hosted web based e-commerce products on terms averaging twelve months. Unless terminated accordingly with prior written notice, the agreements automatically renew for another term. | |||
We provide online marketing services that we purchase from third parties. The gross revenue presented in our statement of operations is in accordance with ASC 605-45. | |||
We also offer professional services such as development services. The fees for development services with multiple deliverables constitute a separate unit of accounting in accordance with ASC 605-25, which are recognized as the work is performed. | |||
Upfront fees for development services or other customer services are deferred until certain implementation or contractual milestones have been achieved. The deferred revenue as of December 31, 2013 and June 30, 2013 was $0 and $0, respectively. | |||
For the quarter ended, December 31, 2013, monthly recurring fees for the Company’s total commerce platform (“TCP”), the Company’s Internet commerce system (“ICS”), and mobile services account for 25% of the Company’s total revenues, professional services account for 74% and the remaining 1% of total revenues are from resale of third party products and services. | |||
For the quarter ended, December 31, 2012, monthly recurring fees for TCP, ICS, and mobile services account for 22% of the Company’s total revenues, professional services account for 73% and the remaining 5% of total revenues are from resale of third party products and services. | |||
Stock based compensation | ' | ||
Stock-Based Compensation | |||
The Company addressed the accounting for share-based payment transactions in which an enterprise receives employee services in exchange for either equity instruments of the enterprise or liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. The transactions are accounted for using a fair-value-based method and recognized as expenses in our statement of income. There was no material impact on the Company’s financial statement of operations. | |||
Stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that is ultimately expected to vest. Stock-based compensation expense recognized in the consolidated statement of operations during the three months ended December 31, 2013, included compensation expense for the stock-based payment awards granted prior to, but not yet vested, as of December 31, 2013 based on the grant date fair value estimated. Stock-based compensation expense recognized in the statement of income for the six months ended December 31, 2013 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. The stock-based compensation expense recognized in the consolidated statements of operations during the six months ended December 31, 2013 and 2012 are $11,664 and $9,521, respectively. | |||
Recently issued accounting pronouncements | ' | ||
Recently Issued Accounting Pronouncements | |||
Management reviewed accounting pronouncements issued during the six months ended December 31, 2013, and no pronouncements were adopted during the period. | |||
Reclassification | ' | ||
Reclassification | |||
Certain statement of operations amounts for the six months ended December 31, 2012 were reclassified to conform to the presentation of the period ended December 31, 2013. |
Stock_Options_And_Warrants_Tab
Stock Options And Warrants (Tables) | 6 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Stock Options And Warrants Tables | ' | ||||||||||
Summary of weighted average remaining contractual life of options outstanding | ' | ||||||||||
The weighted average remaining contractual life of options outstanding issued under the plan as of December 31, 2013 was as follows: | |||||||||||
Exercise Prices | Number of Options Outstanding | Weighted Average remaining contractual life (years) | |||||||||
$ | 0.05 | 8,000 | 4.58 | ||||||||
$ | 0.004 | 500,000 | 7.79 | ||||||||
508,000 | |||||||||||
Summary of stock option activity | ' | ||||||||||
A summary of the Company’s stock option activity for the three months ending December 31, 2013, and related information follows: | |||||||||||
31-Dec-13 | |||||||||||
Options | Weighted | ||||||||||
average | |||||||||||
exercise | |||||||||||
price | |||||||||||
Outstanding -beginning of period | 13,508,000 | $ | 0.005 | ||||||||
Granted | — | — | |||||||||
Exercised | — | — | |||||||||
Forfeited | — | — | |||||||||
Outstanding - end of period | 13,508,000 | $ | 0.005 | ||||||||
Exercisable at the end of period | 6,328,320 | $ | 0.005 | ||||||||
Weighted average fair value of | |||||||||||
options granted during the year | $ | — | |||||||||
Stock_Options_And_Warrants_Sum
Stock Options And Warrants (Summary Of Weighted Average Remainining Contractual Life Of Options) (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 30, 2013 | Dec. 31, 2013 |
Exercise Price 0.050 | Exercise Price 0.004 | Exercise Price 0.004 | |||
Stock Options | Stock Options | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Excerise prices | ' | ' | $0.05 | $0.00 | ' |
Number of options outstanding | 13,508,000 | 13,508,000 | 8,000 | ' | 500,000 |
Weighted average remaining contractual life (years) | ' | ' | '4 years 6 months 29 days | '7 years 9 months 14 days | ' |
Stock_Options_And_Warrants_Sum1
Stock Options And Warrants (Summary Of Stock Option Activity) (Details) (USD $) | 3 Months Ended |
Dec. 31, 2013 | |
Options | ' |
Outstanding -beginning of period | 13,508,000 |
Granted | ' |
Exercised | ' |
Forfeited | ' |
Outstanding - end of period | 13,508,000 |
Exercisable at the end of period | 6,328,320 |
Weighted Average Exercise Price | ' |
Outstanding -begining of period | $0.01 |
Granted | ' |
Exercised | ' |
Forfeited | ' |
Outstanding - end of period | $0.01 |
Excercisable at the end of period | $0.01 |
Weighted average fair value of options granted during the year | ' |
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
TCP, ICS and Mobile Service Revenue | TCP, ICS and Mobile Service Revenue | Professional Services Revenue | Professional Services Revenue | Third Party Products and Services Revenue | Third Party Products and Services Revenue | |||
Total Revenue | Total Revenue | Total Revenue | Total Revenue | Total Revenue | Total Revenue | |||
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of product revenue to total revenue | ' | ' | 25.00% | 22.00% | 74.00% | 73.00% | 1.00% | 5.00% |
Deferred revenue | $0 | $0 | ' | ' | ' | ' | ' | ' |
Allowance for accounts receivable | $24,907 | $24,907 | ' | ' | ' | ' | ' | ' |
Convertible_Note_Payable_Narra
Convertible Note Payable (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | 16-May-13 | 1-May-13 | Apr. 16, 2013 | Mar. 25, 2013 | Sep. 30, 2013 | Jul. 02, 2013 | Jun. 03, 2013 | 16-May-13 | Dec. 31, 2013 | Jun. 30, 2013 | |
Wings Fund, Inc | Wings Fund, Inc | Convertible Promissory Note - March 2013 Note | Convertible Promissory Note - March 2013 Note | Convertible Promissory Note - March 2013 Note | Convertible Promissory Note - March 2013 Note | Convertible Promissory Note - May 2013 Note | Convertible Promissory Note - May 2013 Note | Convertible Promissory Note - May 2013 Note | Convertible Promissory Note - May 2013 Note | Convertible Promissory Note - May 2013 Note | Convertible Promissory Note - May 2013 Note | |||||
Wings Fund, Inc | Wings Fund, Inc | Wings Fund, Inc | Wings Fund, Inc | Wings Fund, Inc | Wings Fund, Inc | Wings Fund, Inc | Wings Fund, Inc | Wings Fund, Inc | Wings Fund, Inc | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $65,000 | ' | ' | ' | ' | ' |
Debt instrument face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | 100,000 | ' | ' |
Proceeds from issuance of notes payable | ' | ' | 35,000 | ' | 35,000 | 130,000 | 15,000 | 15,000 | 20,000 | 50,000 | 10,000 | 25,000 | 20,000 | 10,000 | ' | ' |
Debt instrument conversion terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The terms of the March 2013 Note allow the lender to convert all or part of the outstanding balance plus accrued interest, at any time after the effective date, at a conversion price of the lower of (a) $0.015 per share, or (b) 50% of the lowest trade price of Common Stock recorded on any trade day after the effective date of the agreement. | The terms of the May 2013 Note allow the lender to convert all or part of the outstanding balance plus accrued interest, at any time after the effective date, at a conversion price of the lower of (a) $0.015 per share, or (b) 50% of the lowest trade price of Common Stock recorded on any trade day after the effective date of the agreement. | |||||||||||||||
Debt instrument interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | 10.00% | ' | ' |
Debt instrument maturity description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Matures one year from the effective date of each advance. | ' | ' |
Matures one year from the effective date of each advance. | ||||||||||||||||
Unamortized debt discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000 | ' | ' | 6,000 | ' | ' |
Interest expense | $8,168 | $996 | $16,332 | $1,992 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,746 | $542 |
Related_Parties_Narrative_Deta
Related Parties (Narrative) (Details) (USD $) | 6 Months Ended | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | |
Wings Fund, Inc | Wings Fund, Inc | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Proceeds from issuance of notes payable | $35,000 | ' | $35,000 | $130,000 |
Stock_Options_And_Warrants_Nar
Stock Options And Warrants (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | 6 Months Ended | |||
Dec. 31, 2013 | Oct. 12, 2011 | Aug. 13, 2012 | Oct. 12, 2011 | Jul. 10, 2003 | Dec. 31, 2012 | |
Incentive Stock Options | Non Qualified Stock Options | Non Qualified Stock Options | Stock Options | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Total common stock shares authorized for stock option plan | ' | ' | ' | ' | 25,000,000 | ' |
Terms of stock option plan | ' | ' | ' | ' | ' | ' |
On July 10, 2003, the Company adopted the Warp 9, Inc. Stock Option Plan for Directors, Executive Officers, and Employees of and Key Consultants to the Company. This Plan authorized the grant of stock options to purchase up to 25,000,000 shares of common stock until July 10, 2013. Accordingly no new options may be granted under the Plan, but the terms and conditions of the Plan still govern all outstanding options under the Plan. Options granted under the Plan may be either Incentive Options or Nonqualified Options, and are administered by the Company’s Board of Directors. Each option may be exercisable in full or in installment and at such time as designated by the Board. Notwithstanding any other provision of the Plan or of any Option Agreement, each option expires on the date specified in the Option Agreement, which date may be no later than the tenth anniversary of the date on which the option was granted (fifth anniversary in the case of an Incentive Option granted to a greater-than-10% stockholder). The purchase price per share of the Common Stock under each Incentive Option is to be no less than the Fair Market Value of the Common Stock on the date the option is granted (110% of the Fair Market Value in the case of a greater-than-10% stockholder). The purchase price per share of the Common Stock under each Nonqualified Option is to be specified by the Board at the time the Option is granted, and may be less than, equal to, or greater than the Fair Market Value of the shares of Common Stock on the date such Nonqualified Option is granted, but may be no less than 85% of the Fair Market Value of the Common Stock on the date of grant. The Plan provides specific language as to the termination of options granted. | ||||||
Options Granted | ' | 3,000,000 | 12,500,000 | 500,000 | ' | ' |
Options Forfeited | ' | ' | ' | ' | ' | 2,500,000 |
Options Strike Price | ' | $0.00 | $0.01 | $0.00 | ' | ' |
Options Expiry Date | ' | 12-Oct-21 | 13-Aug-19 | 12-Oct-21 | ' | ' |
Options Vest | ' | '1/48th monthly | '1/36th monthly | '1/48th monthly | ' | ' |