Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 07, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | SPYR, Inc. | |
Entity Central Index Key | 829,325 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 180,386,859 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 285,000 | $ 3,204,000 |
Accounts receivable, net | 12,000 | 31,000 |
Other receivable | 200,000 | |
Prepaid expenses | 56,000 | 25,000 |
Trading securities, at market value | 22,000 | 59,000 |
Current assets of discontinued operations | 50,000 | |
Total Current Assets | 375,000 | 3,569,000 |
Property and equipment, net | 146,000 | 181,000 |
Intangible assets, net | 13,000 | 18,000 |
Capitalized licensing rights, net | 265,000 | 40,000 |
Other assets | 16,000 | 5,000 |
Non-current assets of discontinued operations | 8,000 | 47,000 |
TOTAL ASSETS | 823,000 | 3,860,000 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 186,000 | 118,000 |
Minimum Guaranteed Royalties Payable | 75,000 | |
Loan Payable - Related Party | 200,000 | |
Current liabilities of discontinued operations | 35,000 | 58,000 |
Total Current Liabilities | 496,000 | 176,000 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized 107,636 Class A shares issued and outstanding as of September 30, 2017 and December 31, 2016; 20,000 Class E shares issued and outstanding as of September 30, 2017 and December 31, 2016 | 13 | 13 |
Common Stock, $0.0001 par value, 750,000,000 shares authorized 171,991,859 and 157,637,026 shares issued and outstanding as of September 30, 2017 and December 31, 2016 | 17,199 | 15,763 |
Additional paid-in capital | 40,260,788 | 34,752,224 |
Accumulated deficit | (39,951,000) | (31,084,000) |
Total Stockholders' Equity | 327,000 | 3,684,000 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 823,000 | 3,860,000 |
Class A Preferred Stock [Member] | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized 107,636 Class A shares issued and outstanding as of September 30, 2017 and December 31, 2016; 20,000 Class E shares issued and outstanding as of September 30, 2017 and December 31, 2016 | 11 | 11 |
Total Stockholders' Equity | 11 | 11 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 11 | 11 |
Class E Preferred Stock [Member] | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized 107,636 Class A shares issued and outstanding as of September 30, 2017 and December 31, 2016; 20,000 Class E shares issued and outstanding as of September 30, 2017 and December 31, 2016 | 2 | 2 |
Total Stockholders' Equity | 2 | 2 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2 | $ 2 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Preferred stock, par value per share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 171,991,859 | 157,637,026 |
Common stock, shares outstanding | 171,991,859 | 157,637,026 |
Class A Preferred Stock [Member] | ||
Preferred stock, par value per share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 107,636 | 107,636 |
Preferred stock, shares outstanding | 107,636 | 107,636 |
Class E Preferred Stock [Member] | ||
Preferred stock, par value per share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 20,000 | 20,000 |
Preferred stock, shares outstanding | 20,000 | 20,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 26,000 | $ 23,000 | $ 110,000 | $ 88,000 |
Expenses | ||||
Labor and related expenses | 387,000 | 293,000 | 2,065,000 | 949,000 |
Rent | 51,000 | 37,000 | 138,000 | 104,000 |
Depreciation and amortization | 44,000 | 20,000 | 89,000 | 59,000 |
Professional fees | 2,000,000 | 950,000 | 4,892,000 | 1,488,000 |
Software development costs | 542,000 | 390,000 | 1,202,000 | 760,000 |
Other general and administrative | 118,000 | 176,000 | 426,000 | 463,000 |
Total Operating Expenses | 3,142,000 | 1,866,000 | 8,812,000 | 3,823,000 |
Operating Loss | (3,116,000) | (1,843,000) | (8,702,000) | (3,735,000) |
Other Income (Expense) | ||||
Interest and dividend income | 4,000 | 4,000 | 14,000 | |
Unrealized loss on trading securities | (10,000) | (211,000) | (37,000) | (295,000) |
Gain on sale of marketable securities | 1,000 | 75,000 | ||
Total Other Expense | (10,000) | (206,000) | (33,000) | (206,000) |
Loss from continuing operations | (3,126,000) | (2,049,000) | (8,735,000) | (3,941,000) |
Income (Loss) on discontinued operations | (28,000) | 26,000 | (132,000) | (34,000) |
Net Loss | $ (3,154,000) | $ (2,023,000) | $ (8,867,000) | $ (3,975,000) |
Loss from continuing operations | ||||
Basic and Diluted earnings per share | $ (0.02) | $ (0.01) | $ (0.05) | $ (0.03) |
Loss on discontinued operations | ||||
Basic and Diluted earnings per share | ||||
Net Loss | ||||
Basic and Diluted earnings per share | $ (0.02) | $ (0.01) | $ (0.05) | $ (0.03) |
Weighted Average Common Shares | ||||
Basic and Diluted | 166,052,129 | 154,466,661 | 162,287,753 | 153,202,982 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Changes In Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($) | Class A Preferred Stock [Member] | Class E Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance preferred stock, shares at Dec. 31, 2016 | 107,636 | 20,000 | ||||
Balance common stock, shares at Dec. 31, 2016 | 157,637,026 | 157,637,026 | ||||
Balance, value at Dec. 31, 2016 | $ 11 | $ 2 | $ 15,763 | $ 34,752,224 | $ (31,084,000) | $ 3,684,000 |
Common stock issued for cash, shares | 750,000 | |||||
Common stock issued for cash, value | $ 75 | 299,925 | 300,000 | |||
Compensation expense recorded upon sale of common stock | 210,000 | 210,000 | ||||
Fair value of common stock issued for employee compensation, shares | 1,750,000 | |||||
Fair value of common stock issued for employee compensation, value | $ 175 | 998,825 | 999,000 | |||
Fair value of common stock issued for professional fees, shares | 11,854,833 | |||||
Fair value of common stock issued for professional fees, value | $ 1,186 | 3,306,814 | 3,308,000 | |||
Vesting of options and warrants granted for services | 647,000 | 647,000 | ||||
Vesting of shares of common stock issued for services | 46,000 | 46,000 | ||||
Net loss | (8,867,000) | $ (8,867,000) | ||||
Balance preferred stock , shares at Sep. 30, 2017 | 107,636 | 20,000 | ||||
Balance common stock, shares at Sep. 30, 2017 | 171,991,859 | 171,991,859 | ||||
Balance, value at Sep. 30, 2017 | $ 11 | $ 2 | $ 17,199 | $ 40,260,788 | $ (39,951,000) | $ 327,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows From Operating Activities: | ||
Net loss for the period | $ (8,867,000) | $ (3,975,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 90,000 | 59,000 |
Fair value of vesting warrants and options | 647,000 | 25,000 |
Common stock issued for employee compensation | 999,000 | 253,000 |
Common stock issued for compensation | 3,518,000 | 538,000 |
Vesting of shares of common stock issued for services | 46,000 | 226,000 |
Unrealized loss on trading securities | (37,000) | (295,000) |
Gain on sale of trading securities | 75,000 | |
(Increase) decrease in accounts receivables | (19,000) | 11,000 |
Decrease in other receivables | (100,000) | |
Increase in prepaid expenses | 31,000 | 21,000 |
Increase in other assets | 11,000 | |
Increase in accounts payable and accrued liabilities | 68,000 | 82,000 |
Decrease in related party accounts payable | (7,000) | |
Net Cash Used in Operating Activities from Continuing Operations | (3,385,000) | (2,611,000) |
Net Cash Provided by Operating Activities from Discontinued Operations | 66,000 | 42,000 |
Net Cash Used in Operating Activities | (3,319,000) | (2,569,000) |
Cash Flows From Investing Activities: | ||
Purchase of licensing rights | 100,000 | 210,000 |
Purchases of trading securities | 510,000 | |
Proceeds from sale of trading securities | 283,000 | |
Purchase of property and equipment | 48,000 | |
Net Cash Used in Investing Activities | (100,000) | (485,000) |
Cash Flows From Financing Activities: | ||
Proceeds from short-term loan payable - related party | 200,000 | |
Proceeds from sale of common stock | 300,000 | 15,000 |
Net Cash Provided by Financing Activities | 500,000 | 15,000 |
Net decrease in Cash | (2,919,000) | (3,039,000) |
Cash and cash equivalents at beginning of period | 3,204,000 | 6,904,000 |
Cash and cash equivalents at end of period | 285,000 | 3,865,000 |
Supplemental Disclosure of Interest and Income Taxes Paid: | ||
Interest paid during the period | ||
Income taxes paid during the period | ||
Supplemental Disclosure of Non-cash Investing and Financing Activities: | ||
Reclassification of other assets to capitalized licensing rights | 100,000 | |
Minimum guaranteed royalties payable | $ 75,000 |
Organization And Summary Of Sig
Organization And Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Organization And Summary Of Significant Accounting Policies | |
Organization and Summary of Significant Accounting Policies | NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim Financial Statements The accompanying condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC. The condensed consolidated balance sheet as of December 31, 2016 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including notes, required by GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to fairly present the Company's financial position and results of operations for the interim periods reflected. Except as noted, all adjustments contained herein are of a normal recurring nature. Results of operations for the fiscal periods presented herein are not necessarily indicative of fiscal year-end results. The condensed consolidated financial statements and all relevant footnotes have been adjusted as of the earliest period presented to reflect the discontinued operations of our Eat at Joe’s restaurant (see Note 7). Organization The Company was incorporated as Conceptualistics, Inc. on January 6, 1988 in Delaware. Subsequent to its incorporation, the Company changed its name to Eat at Joe’s, Ltd. In February 2015, the Company changed its name to SPYR, Inc. and adopted a new ticker symbol “SPYR” effective March 12, 2015. Nature of Business The primary focus of SPYR, Inc. (the “Company”) is to act as a holding company and develop a portfolio of profitable subsidiaries, not limited by any particular industry or business. Through our wholly owned subsidiaries, SPYR APPS, LLC and SPYR APPS, Oy, we operate our mobile games and applications business. The focus of the SPYR APPS subsidiaries is the development and publication of our own mobile games as well as the publication of games developed by third-party developers. As of October 5, 2016, SPYR APPS, Oy ceased business activities and completed the dissolution process on October 18, 2017. Through our other wholly owned subsidiary, E.A.J.: PHL Airport, Inc., we owned and operated the restaurant “Eat at Joe’s®,” which was located in the Philadelphia International Airport since 1997. Our lease in the Philadelphia Airport expired in April 2017. Concurrent with expiration of the lease the restaurant closed. Our plan is to complete a tax free exchange of our intellectual property related to our restaurant operations, including the registered trademark: “Eat at Joe’s ® Principles of Consolidation The consolidated financial statements include the accounts of SPYR, Inc. and its wholly-owned subsidiaries, SPYR APPS, LLC, a Nevada Limited Liability Company, and SPYR APPS, Oy, a Finnish Limited Liability Company (dissolved October 18, 2017), E.A.J.: PHL, Airport Inc., a Pennsylvania corporation (discontinued operations, see Note 7), and Branded Foods Concepts, Inc., a Nevada corporation. Intercompany accounts and transactions have been eliminated. Liquidity The accompanying financial statements have been prepared under the assumption that the Company will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the nine months ended September 30, 2017, the Company recorded a net loss from continuing operations of $8,735,000 and utilized cash in continuing operations of $3,385,000. As of September 30, 2017, our cash balance was $285,000 and we had trading securities of $22,000. The Company’s restaurant, Eat At Joes closed in April 2017, concurrent with the expiration of the lease. On September 5, 2017, we negotiated a revolving line of credit loan agreement with a company controlled by our Chairman and majority shareholder. The line of credit allows the Company to borrow up to $500,000 with interest at 6% per annum. Repayment on the loan is due February 28, 2018. As of September 30, 2017, we have borrowed $200,000. We estimate the Company currently has sufficient cash and liquidity to meet its working capital needs for its fiscal year 2017. Historically, we have financed our operations primarily through private sales of our trading securities or through sales of our common stock. If our sales goals for our products do not materialize as planned, we believe that the Company can reduce its operating and product development costs that would allow us to maintain sufficient cash levels to continue operations. However, if we are not able to achieve profitable operations at some point in the future, we may have insufficient working capital to maintain our operations as we presently intend to conduct them or to fund our expansion, marketing, and product development plans. There can be no assurance that we will be able to obtain such financing on acceptable terms, or at all. Use of Estimates The preparation of financial statements in conformity with 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. Estimates and assumptions used by management affected impairment analysis for trading securities, fixed assets, intangible assets, capitalized licensing rights, amounts of potential liabilities and valuation of issuance of equity securities. Actual results could differ from those estimates. Earnings (Loss) Per Share The Company’s computation of earnings (loss) per share (EPS) includes basic and diluted EPS. Basic EPS is calculated by dividing the Company’s net income (loss) available to common stockholders by the weighted average number of common shares during the period. Diluted EPS reflects the potential dilution, using the treasury stock method that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income (loss) of the Company. In computing diluted EPS, the treasury stock method assumes that outstanding options and warrants are exercised and the proceeds are used to purchase common stock at the average market price during the period. Shares of restricted stock are included in the basic weighted average number of common shares outstanding from the time they vest. The basic and fully diluted shares for the nine months ended September 30, 2017 are the same because the inclusion of the potential shares (Class A – 26,909,028, Class E – 318,654, Options – 6,270,000, Warrants – 1,200,000) would have had an anti-dilutive effect due to the Company generating a loss for the nine months ended September 30, 2017. The basic and fully diluted shares for the nine months ended September 30, 2016 are the same because the inclusion of the potential shares (Non-vested Common – 83,333, Class A – 26,909,028, Class E – 163,415) would have had an anti-dilutive effect due to the Company generating a loss for the nine months ended September 30, 2016. Capitalized Licensing Rights Capitalized licensing rights represent fees paid to intellectual property rights holders for use of their trademarks, copyrights, software, technology, music or other intellectual property or proprietary rights in the development of our products. Depending upon the agreement with the rights holder, we may obtain the right to use the intellectual property in multiple products over a number of years, or alternatively, for a single product. Significant management judgments and estimates are utilized in assessing the recoverability of capitalized costs. In evaluating the recoverability of capitalized costs, the assessment of expected product performance utilizes forecasted sales amounts and estimates of additional costs to be incurred. If revised forecasted or actual product sales are less than the originally forecasted amounts utilized in the initial recoverability analysis, the net realizable value may be lower than originally estimated in any given quarter, which could result in an impairment charge. Material differences may result in the amount and timing of expenses for any period if management makes different judgments or utilizes different estimates in evaluating these qualitative factors. During 2017, the Company capitalized $175,000 pursuant to a licensing agreement for the non-exclusive, limited right to incorporate certain intellectual property (IP) from various STAR TREK In a prior period, the Company capitalized $50,000 as a result of the acquisition of licensing rights of one gaming application. The Company estimates that the gaming application will have an estimated life of five years, which approximates the term of the license. During the period ended September 30, 2017, the Company recorded amortization expense of $50,000 pursuant to the terms of these licensing rights. As of September 30, 2017 and December 31, 2016, the unamortized capitalized licensing rights amounted to $166,000 and $268,000 respectively. Software Development Costs Costs incurred for software development are expensed as incurred. During the nine months ended September 30, 2017 and 2016, the Company incurred $1,202,000 and $760,000 in software development costs paid to independent gaming software developers. Recent Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements. |
Trading Securities
Trading Securities | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Trading Securities | NOTE 2 - TRADING SECURITIES The Company’s securities investments are bought and held principally for the purpose of selling them in the short term and are classified as trading securities. Trading securities are recorded at fair value based on quoted market prices (level 1) on the balance sheet in current assets, with the change in fair value during the period included in earnings as unrealized gains or losses in the statement of operations. Gains from the sales of such securities will be utilized to fund payment of obligations and to provide working capital for operations and to finance future growth, including, but not limited to: conducting our ongoing business, conducting strategic business development, marketing analysis, due diligence investigations into possible acquisitions, and software development costs and implementation of the Company’s business plans generally. Investments in securities are summarized as follows: Fair Value at Proceeds from Gain on Unrealized Fair Value at Year Beginning of Year Purchases Sale Sale Loss September 30, 2017 2017 $ 59,000 $ — $ — $ — $ (37,000 ) $ 22,000 Realized gains and losses are determined on the basis of specific identification. During the nine months ended September 30, 2017 and 2016, sales proceeds and gross realized gains and losses on trading securities were: September 30, 2017 September 30, 2016 Sales proceeds $ — $ 283,000 Gross realized (losses) $ — $ — Gross realized gains — 75,000 Gain (loss) on sale of trading securities $ — $ 75,000 The following table discloses the assets measured at fair value on a recurring basis and the methods used to determine fair value: Fair Value Measurements at Reporting Date Using Quoted Prices Significant Significant in Active Other Unobservable Fair Value at Markets Observable Inputs Inputs September 30, 2017 (Level 1) (Level 2) (Level 3) Trading securities $ 22,000 $ 22,000 $ — $ — Money market funds 36,000 36,000 — — Total $ 58,000 $ 58,000 $ — $ — Fair Value Measurements at Reporting Date Using Quoted Prices Significant Significant in Active Other Unobservable Fair Value at Markets Observable Inputs Inputs December 31, 2016 (Level 1) (Level 2) (Level 3) Trading securities $ 59,000 $ 59,000 $ — $ — Money market funds 36,000 36,000 — — Total $ 95,000 $ 95,000 $ — $ — The fair value of the Company’s trading securities is determined by reference to quoted market prices (level 1). During the nine months ended September 30, 2017, the Company recorded $37,000 in unrealized losses to account for the changes in fair value of its trading securities. During the nine months ended September 30, 2016, the Company recorded $295,000 in unrealized gains to account for the changes in fair value of its trading securities. |
Property And Equipment
Property And Equipment | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 3 – PROPERTY AND EQUIPMENT Property and equipment consisted of the following: September 30, 2017 December 31, 2016 (Unaudited) Equipment $ 28,000 $ 28,000 Furniture & fixtures 115,000 115,000 Leasehold improvements 106,000 106,000 249,000 249,000 Less: accumulated depreciation and amortization (103,000 ) (68,000 ) Property and Equipment, Net $ 146,000 $ 181,000 Depreciation and amortization expense for the nine months ended September 30, 2017 and 2016 was $35,000 and $33,000, respectively. |
Loan Payable - Related Party
Loan Payable - Related Party | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Loan Payable - Related Party | NOTE 4 – LOAN PAYABLE – RELATED PARTY On September 5, 2017, the Company obtained a revolving line of credit from a company controlled by our Chairman and majority shareholder. The line of credit allows the Company to borrow up to $500,000 with interest at 6% per annum. Repayment on the loan is due February 28, 2018. As of September 30, 2017, we have borrowed $200,000. |
Equity Transactions
Equity Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Equity Transactions | NOTE 5 – EQUITY TRANSACTIONS Common Stock: During the nine months ended September 30, 2017, the Company issued an aggregate of 750,000 shares of restricted common stock to an existing shareholder and former officer/employee for cash of $300,000. The common shares had a fair value of $510,000 at the date of sale, and as a result, the Company reflected an additional expense of $210,000 to account the difference between the sale price and the fair market value of common shares sold. During the nine months ended September 30, 2017, the Company issued an aggregate of 1,750,000 shares of restricted common stock to employees with a total fair value of $999,000 for services rendered. The shares issued are non-refundable and deemed earned upon issuance. As a result, the Company expensed the entire $999,000 upon issuance. The shares issued were valued at the date earned under the respective agreements. During the nine months ended September 30, 2017, the Company issued an aggregate of 11,854,833 shares of restricted common stock to consultants with a total fair value of $3,308,000. The shares issued are non-refundable and deemed earned upon issuance. As a result, the Company expensed the entire $3,308,000 upon issuance. The shares issued were valued at the date earned under the respective agreements. Common Stock with Vesting Terms: The following table summarizes common stock with vesting terms activity: Weighted Average Number of Grant Date Shares Fair Value Non-vested, December 31, 2016 20,833 $ 0.50 Granted — — Vested (20,833) 0.50 Forfeited — — Non-vested, September 30, 2017 — $ — In February 2015, the Company granted and issued 500,000 shares of its restricted common stock to a consultant pursuant to a consulting agreement. The 500,000 shares are forfeitable and are deemed earned upon completion of service over a period of twenty-four months. The Company recognizes the fair value of these shares as they vest. As of December 31, 2016, 479,167 of these shares had vested and 20,833 common shares unvested. During the nine months ended September 30, 2017, the remaining 20,833 of these shares vested and as a result, the Company recognized compensation cost of $46,000. As of September 30, 2017, there were no unvested shares and no unearned compensation costs to be recorded. When calculating basic net income (loss) per share, these shares are included in weighted average common shares outstanding from the time they vest. When calculating diluted net income per share, these shares are included in weighted average common shares outstanding as of their grant date. Options The following table summarizes common stock options activity: Weighted Average Options Exercise Price December 31, 2016 12,900,000 $ 2.83 Granted 870,000 1.00 Exercised - - Cancelled - - Forfeited (7,500,000) 3.97 Outstanding, September 30, 2017 6,270,000 3.21 Exercisable, September 30, 2017 5,095,000 $ 3.18 During the period ended September 30, 2017, the Company granted stock options to consultants to purchase a total of 870,000 shares of common stock. A total of 695,000 options vested upon grant while the remaining 175,000 options will vest through February 2018 at a rate of 35,000 shares per month. The options are exercisable at $1.00 per share and will expire over 4 years. The fair values of the options are recorded at their respective grant dates computed using the Black-Scholes Option Pricing Model. During the nine months ended September 30, 2017, the Company recognized $357,000 in compensation expense based upon the vesting of outstanding options. As of September 30, 2017, the unamortized compensation expense for unvested options was $105,000 which will be recognized over the vesting period. The weighted average exercise prices, remaining lives for options granted, and exercisable as of September 30, 2017, were as follows: Outstanding Options Exercisable Options Options Weighted Weighted Exercise Price Life Average Exercise Average Exercise Per Share Shares (Years) Price Shares Price $1.00 2,020,000 0.25 – 3.36 $1.00 1,845,000 $1.00 $2.50 1,250,000 1.50 $2.50 750,000 $2.50 $5.00 3,000,000 2.50 $5.00 2,500,000 $5.00 6,270,000 $3.27 5,095,000 $3.30 At September 30, 2017, the Company’s closing stock price was $0.31 per share. As all outstanding options had an exercise price greater than $0.31 per share, there was no intrinsic value of the options outstanding at September 30, 2017. Warrants: The following table summarizes common stock warrants activity: Weighted Average Exercise Warrants Price December 31, 2016 200,000 $ 1.00 Granted 1,000,000 1.75 Exercised — — Cancelled — — Forfeited — — Outstanding September 30, 2017 1,200,000 $ 1.54 Exercisable September 30, 2017 1,200,000 $ 1.54 In March 2017, pursuant to an employee separation agreement, the Company granted warrants to purchase a total of 1,000,000 shares of restricted common stock with an exercise price of $1.50 and $2.00 which will expire December 31, 2018. The warrants are fully vested and exercisable upon grant. Total fair value of the warrants at grant date amounted to $290,000 computed using the Black-Scholes Option Pricing Model and was fully recognized on the date of grant. The weighted average exercise prices, remaining lives for warrants granted, and exercisable as of September 30, 2017, were as follows: Outstanding and Exercisable Warrants Warrants Exercise Price Life Per Share Shares (Years) $0.50 200,000 0.08 $1.50 500,000 1.25 $2.00 500,000 1.25 1,200,000 At September 30, 2017, the Company’s closing stock price was $0.31 per share. As all outstanding warrants had an exercise price greater than $0.31 per share, there was no intrinsic value of the warrants outstanding at September 30, 2017. The table below represents the average assumptions used in valuing the stock options and warrants granted in fiscal 2017: Nine-Months Ended September 30, 2017 Expected life in years 1.75 – 3.92 Stock price volatility 127% - 158% Risk free interest rate 1.26 % - 1.60% Expected dividends — Forfeiture rate — The assumptions used in the Black Scholes models referred to above are based upon the following data: (1) the contractual life of the underlying non-employee options is the expected life. The expected life of the employee option is estimated by considering the contractual term of the option, the vesting period of the option, the employees’ expected exercise behavior and the post-vesting employee turnover rate. (2) The expected stock price volatility was based upon the Company’s historical stock price over the expected term of the option. (3) The risk-free interest rate is based on published U.S. Treasury Department interest rates for the expected terms of the underlying options. (4) The expected dividend yield was based on the fact that the Company has not paid dividends to common shareholders in the past and does not expect to pay dividends to common shareholders in the future. (5) The expected forfeiture rate is based on historical forfeiture activity and assumptions regarding future forfeitures based on the composition of current grantees. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 6 – COMMITMENTS AND CONTINGENCIES LITIGATION We are involved in certain legal proceedings that arise from time to time in the ordinary course of our business. Except for income tax contingencies, we record accruals for contingencies to the extent that our management concludes that the occurrence is probable and that the related amounts of loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. A material legal proceeding that is currently pending is as follows: On October 14, 2015, the Company was named as a defendant in a case filed in the United States District Court for the District of Delaware case: Zakeni Limited v. SPYR, Inc., f/k/a Eat at Joe’s., Ltd. The suit relates to the Company’s issuance of two convertible debentures in the aggregate principal amount of $1,500,000 in 1998. The plaintiff is seeking payment or conversion of said convertible debentures together with accrued interest and unspecified damages. The Company believes the claim is not a valid debt and is vigorously defending this lawsuit. On December 4, 2015, the Company filed a motion to dismiss the suit based on the statute of limitations. In evaluating a motion to dismiss, the Court is only allowed to view the allegations set forth in the plaintiff’s complaint and documents referenced therein, must assume that those allegations are true, and must construe all evidence contained in the referenced documents in a light most favorable to the plaintiff. On August 24, 2016, under this standard, the Court determined that the legal requirements to grant the motion to dismiss had not been fully satisfied and denied the Company’s Motion to Dismiss. Accordingly, no final determinations regarding liability have been made, the case will proceed to be litigated in the normal course, and, if the Company elects, it will have the ability to again present its arguments for dismissal prior to trial through a motion for summary judgment, which will allow for a determination to be made based on a legal standard that is slightly less favorable to the plaintiff. If that motion is denied, the Company will still have the opportunity to present all of its arguments and defenses at trial, at which Zakeni will have to prove its case by a preponderance of the evidence. The case is scheduled for trial on July 16, 2018. Based upon available information at this very early stage of litigation, it is still the belief of management and opinion of in-house counsel that the Company will obtain a favorable ruling and no amount will be awarded to the plaintiff in this action. Accordingly, Management believes the likelihood of material loss resulting from this lawsuit to be remote. GAME DEVELOPMENT AGREEMENTS The Company is party to various game development agreements. Payments are contingent upon the developer(s) meeting specified milestones and game performance. Pursuant to these agreements, the Company has agreed to pay up to $723,000 during the period from November 2017 through December 2018. COMMON STOCK TO BE ISSUED The Company is party to various third-party service agreements to be paid through the issuance of the company’s restricted common stock. Contingent upon the third parties providing the agreed upon services, the Company will issue up to 4,523,500 restricted common shares at various intervals during the period from November 2017 through August 2018. The shares will be recorded at fair value on the date earned under the respective agreements. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 7 – DISCONTINUED OPERATIONS Through our other wholly owned subsidiary, E.A.J.: PHL Airport, Inc., we owned and operated the restaurant “Eat at Joe’s®,” which was located in the Philadelphia International Airport since 1997. Our lease in the Philadelphia Airport expired in April 2017. Concurrent with expiration of the lease the restaurant closed. Pursuant to current accounting guidelines, the restaurant segment is reported as a discontinued operations. The following table summarizes the assets and liabilities of our discontinued restaurant segment's discontinued operations as of September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Assets: Accounts receivable, net $ — $ 13,000 Inventory — 12,000 Prepaid expenses — 25,000 Property and equipment, net 6,000 30,000 Other assets 2,000 17,000 Total Assets $ 8,000 $ 97,000 Liabilities: Accounts payable and accrued liabilities 35,000 58,000 Total Liabilities $ 35,000 $ 58,000 The following table summarizes the results of operations of our discontinued restaurant segment for the three and nine months ended September 30, 2017 and 2016 and is included in the condensed consolidated statements of operations as discontinued operations: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Revenues $ — $ 408,000 $ 421,000 $ 1,050,000 Cost of sales — 131,000 134,000 324,000 Gross Margin — 277,000 287,000 726,000 Expenses Labor and related expenses — 119,000 178,000 353,000 Rent — 62,000 82,000 191,000 Depreciation and amortization — 15,000 20,000 52,000 Professional fees 23,000 2,000 26,000 5,000 Other general and administrative 5,000 53,000 94,000 155,000 Total Operating Expenses 28,000 251,000 400,000 756,000 Operating Income (Loss) (28,000 ) 26,000 (113,000 ) (30,000 ) Other Income (Expense) Loss on disposal of assets — — (19,000 ) — Income (Loss) on discontinued operations $ (28,000 ) $ 26,000 $ (132,000 ) $ (30,000 ) |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Subsequent Events | NOTE 8 – SUBSEQUENT EVENTS Subsequent to September 30, 2017, the Company issued an aggregate of 395,000 shares of common stock to an employee and third-party service providers with a total fair value of $146,000 for services rendered. The shares issued are non-refundable and deemed earned upon issuance. On October 23, 2017, we restructured and exercised a game purchase option by entering into a definitive agreement with the game owner MMOJoe pursuant to which SPYR will own all of the game related assets of Pocket Starships, in a cashless transaction, and the publishing agreement with Spectacle as well as the original terms of the Option will be terminated, which means that SPYR will now be able to retain 100% of the revenue generated from the game and will be the sole owner of all of the assets related to the game. The acquisition includes, among other assets, all Pocket Starships related intellectual property, the userbase, artwork, software, internet domains, game store accounts (such as App Store, Play Store, Amazon, and Facebook Gameroom), web portal accounts (Facebook, VK.com, Kongregate, etc.) and internet domains (www.pocketstarships.com). Under the terms of the agreement, the game's owner will receive 8,000,000 restricted shares of SPYR stock (subject to resale gating provisions) with a fair value of $3.2 million and 8,000,000 three-year cash-based options exercisable at $0.50 per share with a fair value of $2,452,000. The Company is currently in the process of determining the accounting for the acquisition. |
Organization And Summary Of S15
Organization And Summary Of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization And Summary Of Significant Accounting Policies Policies | |
Interim Financial Statements | Interim Financial Statements The accompanying condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC. The condensed consolidated balance sheet as of December 31, 2016 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including notes, required by GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to fairly present the Company's financial position and results of operations for the interim periods reflected. Except as noted, all adjustments contained herein are of a normal recurring nature. Results of operations for the fiscal periods presented herein are not necessarily indicative of fiscal year-end results. The condensed consolidated financial statements and all relevant footnotes have been adjusted as of the earliest period presented to reflect the discontinued operations of our Eat at Joe’s restaurant (see Note 7). |
Organization | Organization The Company was incorporated as Conceptualistics, Inc. on January 6, 1988 in Delaware. Subsequent to its incorporation, the Company changed its name to Eat at Joe’s, Ltd. In February 2015, the Company changed its name to SPYR, Inc. and adopted a new ticker symbol “SPYR” effective March 12, 2015. |
Nature of Business | Nature of Business The primary focus of SPYR, Inc. (the “Company”) is to act as a holding company and develop a portfolio of profitable subsidiaries, not limited by any particular industry or business. Through our wholly owned subsidiaries, SPYR APPS, LLC and SPYR APPS, Oy, we operate our mobile games and applications business. The focus of the SPYR APPS subsidiaries is the development and publication of our own mobile games as well as the publication of games developed by third-party developers. As of October 5, 2016, SPYR APPS, Oy ceased business activities and completed the dissolution process on October 18, 2017. Through our other wholly owned subsidiary, E.A.J.: PHL Airport, Inc., we owned and operated the restaurant “Eat at Joe’s®,” which was located in the Philadelphia International Airport since 1997. Our lease in the Philadelphia Airport expired in April 2017. Concurrent with expiration of the lease the restaurant closed. Our plan is to complete a tax free exchange of our intellectual property related to our restaurant operations, including the registered trademark: “Eat at Joe’s ® |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of SPYR, Inc. and its wholly-owned subsidiaries, SPYR APPS, LLC, a Nevada Limited Liability Company, and SPYR APPS, Oy, a Finnish Limited Liability Company (dissolved October 18, 2017), E.A.J.: PHL, Airport Inc., a Pennsylvania corporation (discontinued operations, see Note 7), and Branded Foods Concepts, Inc., a Nevada corporation. Intercompany accounts and transactions have been eliminated. |
Liquidity | Liquidity The accompanying financial statements have been prepared under the assumption that the Company will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the nine months ended September 30, 2017, the Company recorded a net loss from continuing operations of $8,735,000 and utilized cash in continuing operations of $3,385,000. As of September 30, 2017, our cash balance was $285,000 and we had trading securities of $22,000. The Company’s restaurant, Eat At Joes closed in April 2017, concurrent with the expiration of the lease. On September 5, 2017, we negotiated a revolving line of credit loan agreement with a company controlled by our Chairman and majority shareholder. The line of credit allows the Company to borrow up to $500,000 with interest at 6% per annum. Repayment on the loan is due February 28, 2018. As of September 30, 2017, we have borrowed $200,000. We estimate the Company currently has sufficient cash and liquidity to meet its working capital needs for its fiscal year 2017. Historically, we have financed our operations primarily through private sales of our trading securities or through sales of our common stock. If our sales goals for our products do not materialize as planned, we believe that the Company can reduce its operating and product development costs that would allow us to maintain sufficient cash levels to continue operations. However, if we are not able to achieve profitable operations at some point in the future, we may have insufficient working capital to maintain our operations as we presently intend to conduct them or to fund our expansion, marketing, and product development plans. There can be no assurance that we will be able to obtain such financing on acceptable terms, or at all. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with 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. Estimates and assumptions used by management affected impairment analysis for trading securities, fixed assets, intangible assets, capitalized licensing rights, amounts of potential liabilities and valuation of issuance of equity securities. Actual results could differ from those estimates. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company’s computation of earnings (loss) per share (EPS) includes basic and diluted EPS. Basic EPS is calculated by dividing the Company’s net income (loss) available to common stockholders by the weighted average number of common shares during the period. Diluted EPS reflects the potential dilution, using the treasury stock method that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income (loss) of the Company. In computing diluted EPS, the treasury stock method assumes that outstanding options and warrants are exercised and the proceeds are used to purchase common stock at the average market price during the period. Shares of restricted stock are included in the basic weighted average number of common shares outstanding from the time they vest. The basic and fully diluted shares for the nine months ended September 30, 2017 are the same because the inclusion of the potential shares (Class A – 26,909,028, Class E – 318,654, Options – 6,270,000, Warrants – 1,200,000) would have had an anti-dilutive effect due to the Company generating a loss for the nine months ended September 30, 2017. The basic and fully diluted shares for the nine months ended September 30, 2016 are the same because the inclusion of the potential shares (Non-vested Common – 83,333, Class A – 26,909,028, Class E – 163,415) would have had an anti-dilutive effect due to the Company generating a loss for the nine months ended September 30, 2016. |
Capitalized Licensing Rights | Capitalized Licensing Rights Capitalized licensing rights represent fees paid to intellectual property rights holders for use of their trademarks, copyrights, software, technology, music or other intellectual property or proprietary rights in the development of our products. Depending upon the agreement with the rights holder, we may obtain the right to use the intellectual property in multiple products over a number of years, or alternatively, for a single product. Significant management judgments and estimates are utilized in assessing the recoverability of capitalized costs. In evaluating the recoverability of capitalized costs, the assessment of expected product performance utilizes forecasted sales amounts and estimates of additional costs to be incurred. If revised forecasted or actual product sales are less than the originally forecasted amounts utilized in the initial recoverability analysis, the net realizable value may be lower than originally estimated in any given quarter, which could result in an impairment charge. Material differences may result in the amount and timing of expenses for any period if management makes different judgments or utilizes different estimates in evaluating these qualitative factors. During 2017, the Company capitalized $175,000 pursuant to a licensing agreement for the non-exclusive, limited right to incorporate certain intellectual property (IP) from various STAR TREK In a prior period, the Company capitalized $50,000 as a result of the acquisition of licensing rights of one gaming application. The Company estimates that the gaming application will have an estimated life of five years, which approximates the term of the license. During the period ended September 30, 2017, the Company recorded amortization expense of $50,000 pursuant to the terms of these licensing rights. As of September 30, 2017 and December 31, 2016, the unamortized capitalized licensing rights amounted to $166,000 and $268,000 respectively. |
Software Development Costs | Software Development Costs Costs incurred for software development are expensed as incurred. During the nine months ended September 30, 2017 and 2016, the Company incurred $1,202,000 and $760,000 in software development costs paid to independent gaming software developers. |
Recent Accounting Standards | Recent Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements. |
Trading Securities (Tables)
Trading Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Trading Securities Tables | |
Schedule of Change in Investment in Securities | Investments in securities are summarized as follows: Fair Value at Proceeds from Gain on Unrealized Fair Value at Year Beginning of Year Purchases Sale Sale Loss September 30, 2017 2017 $ 59,000 $ — $ — $ — $ (37,000 ) $ 22,000 |
Schedule of Gross Realized Gain\Loss on Securities | Realized gains and losses are determined on the basis of specific identification. During the nine months ended September 30, 2017 and 2016, sales proceeds and gross realized gains and losses on trading securities were: September 30, 2017 September 30, 2016 Sales proceeds $ — $ 283,000 Gross realized (losses) $ — $ — Gross realized gains — 75,000 Gain (loss) on sale of trading securities $ — $ 75,000 |
Schedule of Fair Value of Assets Measured on Recurring Basis | The following table discloses the assets measured at fair value on a recurring basis and the methods used to determine fair value: Fair Value Measurements at Reporting Date Using Quoted Prices Significant Significant in Active Other Unobservable Fair Value at Markets Observable Inputs Inputs September 30, 2017 (Level 1) (Level 2) (Level 3) Trading securities $ 22,000 $ 22,000 $ — $ — Money market funds 36,000 36,000 — — Total $ 58,000 $ 58,000 $ — $ — Fair Value Measurements at Reporting Date Using Quoted Prices Significant Significant in Active Other Unobservable Fair Value at Markets Observable Inputs Inputs December 31, 2016 (Level 1) (Level 2) (Level 3) Trading securities $ 59,000 $ 59,000 $ — $ — Money market funds 36,000 36,000 — — Total $ 95,000 $ 95,000 $ — $ — |
Property And Equipment (Tables)
Property And Equipment (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: September 30, 2017 December 31, 2016 (Unaudited) Equipment $ 28,000 $ 28,000 Furniture & fixtures 115,000 115,000 Leasehold improvements 106,000 106,000 249,000 249,000 Less: accumulated depreciation and amortization (103,000 ) (68,000 ) Property and Equipment, Net $ 146,000 $ 181,000 |
Equity Transactions (Tables)
Equity Transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity Transactions Tables | |
Summarizes Common Stock with Vesting Terms Activity | The following table summarizes common stock with vesting terms activity: Weighted Average Number of Grant Date Shares Fair Value Non-vested, December 31, 2016 20,833 $ 0.50 Granted — — Vested (20,833) 0.50 Forfeited — — Non-vested, September 30, 2017 — $ — |
Summarizes Common Stock Options Activity | The following table summarizes common stock options activity: Weighted Average Options Exercise Price December 31, 2016 12,900,000 $ 2.83 Granted 870,000 1.00 Exercised - - Cancelled - - Forfeited (7,500,000) 3.97 Outstanding, September 30, 2017 6,270,000 3.21 Exercisable, September 30, 2017 5,095,000 $ 3.18 |
Schedule of Weighted Average Excerise Price Range | The weighted average exercise prices, remaining lives for options granted, and exercisable as of September 30, 2017, were as follows: Outstanding Options Exercisable Options Options Weighted Weighted Exercise Price Life Average Exercise Average Exercise Per Share Shares (Years) Price Shares Price $1.00 2,020,000 0.25 – 3.36 $1.00 1,845,000 $1.00 $2.50 1,250,000 1.50 $2.50 750,000 $2.50 $5.00 3,000,000 2.50 $5.00 2,500,000 $5.00 6,270,000 $3.27 5,095,000 $3.30 |
Summarizes Common Stock Warrants Activity | The following table summarizes common stock warrants activity: Weighted Average Exercise Warrants Price December 31, 2016 200,000 $ 1.00 Granted 1,000,000 1.75 Exercised — — Cancelled — — Forfeited — — Outstanding September 30, 2017 1,200,000 $ 1.54 Exercisable September 30, 2017 1,200,000 $ 1.54 |
Schedule of Warrants Weighted Average Excerise Price Range | The weighted average exercise prices, remaining lives for warrants granted, and exercisable as of September 30, 2017, were as follows: Outstanding and Exercisable Warrants Warrants Exercise Price Life Per Share Shares (Years) $0.50 200,000 0.08 $1.50 500,000 1.25 $2.00 500,000 1.25 1,200,000 |
Schedule of Assumptions Used in Valuing the Stock Options and Warrants | The table below represents the average assumptions used in valuing the stock options and warrants granted in fiscal 2017: Nine-Months Ended September 30, 2017 Expected life in years 1.75 – 3.92 Stock price volatility 127% - 158% Risk free interest rate 1.26 % - 1.60% Expected dividends — Forfeiture rate — |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations Tables | |
Summarizes the Assets and Liabilities of Segment's Discontinued Operations | The following table summarizes the assets and liabilities of our discontinued restaurant segment's discontinued operations as of September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Assets: Accounts receivable, net $ — $ 13,000 Inventory — 12,000 Prepaid expenses — 25,000 Property and equipment, net 6,000 30,000 Other assets 2,000 17,000 Total Assets $ 8,000 $ 97,000 Liabilities: Accounts payable and accrued liabilities 35,000 58,000 Total Liabilities $ 35,000 $ 58,000 The following table summarizes the results of operations of our discontinued restaurant segment for the three and nine months ended September 30, 2017 and 2016 and is included in the condensed consolidated statements of operations as discontinued operations: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Revenues $ — $ 408,000 $ 421,000 $ 1,050,000 Cost of sales — 131,000 134,000 324,000 Gross Margin — 277,000 287,000 726,000 Expenses Labor and related expenses — 119,000 178,000 353,000 Rent — 62,000 82,000 191,000 Depreciation and amortization — 15,000 20,000 52,000 Professional fees 23,000 2,000 26,000 5,000 Other general and administrative 5,000 53,000 94,000 155,000 Total Operating Expenses 28,000 251,000 400,000 756,000 Operating Income (Loss) (28,000 ) 26,000 (113,000 ) (30,000 ) Other Income (Expense) Loss on disposal of assets — — (19,000 ) — Income (Loss) on discontinued operations $ (28,000 ) $ 26,000 $ (132,000 ) $ (30,000 ) |
Trading Securities (Schedule Of
Trading Securities (Schedule Of Change In Investment In Securities) (Details) - Trading Securities [Member] | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value at Beginning of Year | $ 59,000 |
Purchases | |
Proceeds from Sale | |
Gain on Sale | |
Unrealized Loss | (37,000) |
Fair Value at September 30, 2017 | $ 22,000 |
Trading Securities (Schedule 21
Trading Securities (Schedule Of Gross Realized Gain/Loss) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Trading Securities Schedule Of Gross Realized Gainloss Details | ||||
Sales proceeds | $ 283,000 | |||
Gross realized (losses) | ||||
Gross realized gains | 75,000 | |||
Gain (loss) on sale of trading securities | $ 1,000 | $ 75,000 |
Trading Securities (Schedule 22
Trading Securities (Schedule Of Fair Value Of Assets Measured On Recurring Basis) (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | $ 22,000 | $ 59,000 |
Fair Value Measurements At Reporting Date Using Quoted Prices in Active Markets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 22,000 | 59,000 |
Money market funds | 36,000 | 36,000 |
Total | 58,000 | 95,000 |
Fair Value Measurements At Reporting Date Using Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | ||
Money market funds | ||
Total | ||
Fair Value Measurements At Reporting Date Using Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | ||
Money market funds | ||
Total | ||
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 22,000 | 59,000 |
Money market funds | 36,000 | 36,000 |
Total | $ 58,000 | $ 95,000 |
Property And Equipment (Details
Property And Equipment (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Property And Equipment Details | ||
Equipment | $ 28,000 | $ 28,000 |
Furniture and fixtures | 115,000 | 115,000 |
Leasehold improvements | 106,000 | 106,000 |
Property and Equipment, Gross | 249,000 | 249,000 |
Less: accumulated depreciation and amortization | 103,000 | 68,000 |
Property and Equipment, Net | $ 146,000 | $ 181,000 |
Equity Transactions (Summarizes
Equity Transactions (Summarizes Common Stock With Vesting Terms Activity) (Details) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of Shares | |
Non-vested balance at the beginning | shares | 20,833 |
Granted | shares | |
Vested | shares | (20,833) |
Forfeited | shares | |
Non-vested balance at the end | shares | |
Weighted Average Grant Date Fair Value | |
Non-vested balance at the beginning | $ / shares | $ 0.50 |
Granted | $ / shares | |
Vested | $ / shares | 0.50 |
Forfeited | $ / shares | |
Non-vested balance at the end | $ / shares |
Equity Transactions (Summariz25
Equity Transactions (Summarizes Common Stock Options Activity) (Details) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Options | |
Outstanding, December 31, 2016 | shares | 12,900,000 |
Granted | shares | 870,000 |
Exercised | shares | |
Cancelled | shares | |
Forfeited | shares | (7,500,000) |
Outstanding, September 30, 2017 | shares | 6,270,000 |
Exercisable, September 30, 2017 | shares | 5,095,000 |
Weighted Average Exercise Price | |
Outstanding, December 31, 2016 | $ / shares | $ 2.83 |
Granted | $ / shares | 1 |
Exercised | $ / shares | |
Cancelled | $ / shares | |
Forfeited | $ / shares | 3.97 |
Outstanding, September 30, 2017 | $ / shares | 3.21 |
Exercisable, September 30, 2017 | $ / shares | $ 3.18 |
Equity Transactions (Schedule O
Equity Transactions (Schedule Of Weighted Average Excerise Price Range) (Details) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options, Shares | shares | 6,270,000 |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 3.27 |
Exercisable Options, Shares | shares | 5,095,000 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 3.30 |
Stock Options [Member] | Exercise Price Per Share $1.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options, Shares | shares | 2,020,000 |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 1 |
Exercisable Options, Shares | shares | 1,845,000 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 1 |
Stock Options [Member] | Exercise Price Per Share $1.00 [Member] | Minimum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options, Life (Years) | 3 months |
Stock Options [Member] | Exercise Price Per Share $1.00 [Member] | Maximum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options, Life (Years) | 3 years 4 months 10 days |
Stock Options [Member] | Exercise Price Per Share $2.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options, Shares | shares | 1,250,000 |
Outstanding Options, Life (Years) | 1 year 6 months |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 2.50 |
Exercisable Options, Shares | shares | 750,000 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 2.50 |
Stock Options [Member] | Exercise Price Per Share $5.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options, Shares | shares | 3,000,000 |
Outstanding Options, Life (Years) | 2 years 6 months |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 5 |
Exercisable Options, Shares | shares | 2,500,000 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 5 |
Equity Transactions (Summariz27
Equity Transactions (Summarizes Common Stock Warrants Activity) (Details) - Warrants [Member] - $ / shares | 1 Months Ended | 9 Months Ended |
Mar. 31, 2017 | Sep. 30, 2017 | |
Warrants | ||
December 31, 2016 | 200,000 | |
Granted | 1,000,000 | 1,000,000 |
Exercised | ||
Cancelled | ||
Forfeited | ||
Outstanding, September 30, 2017 | 1,200,000 | |
Exercisable, September 30, 2017 | 1,200,000 | |
Weighted Average Exercise Price | ||
December 31, 2016 | $ 1 | |
Granted | 1.75 | |
Exercised | ||
Cancelled | ||
Forfeited | ||
Outstanding, September 30, 2017 | 1.54 | |
Exercisable, September 30, 2017 | $ 1.54 |
Equity Transactions (Schedule28
Equity Transactions (Schedule Of Warrants Weighted Average Excerise Price Range) (Details) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 6,270,000 |
Warrants [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 1,200,000 |
Warrants [Member] | Exercise Price Per Share $0.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 200,000 |
Outstanding and Exercisable Warrants, Life (Years) | 29 days |
Warrants Exercise Price, Per Share | $ / shares | $ 0.50 |
Warrants [Member] | Exercise Price Per Share $1.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 500,000 |
Outstanding and Exercisable Warrants, Life (Years) | 1 year 3 months |
Warrants Exercise Price, Per Share | $ / shares | $ 1.50 |
Warrants [Member] | Exercise Price Per Share $2.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 500,000 |
Outstanding and Exercisable Warrants, Life (Years) | 1 year 3 months |
Warrants Exercise Price, Per Share | $ / shares | $ 2 |
Equity Transactions (Schedule29
Equity Transactions (Schedule Of Assumptions Used In Valuing The Stock Options And Warrants) (Details) - Stock Options And Warrants [Member] | 9 Months Ended |
Sep. 30, 2017 | |
Assumptions - Black Scholes Model: | |
Expected dividends | |
Forfeiture rate | |
Minimum [Member] | |
Assumptions - Black Scholes Model: | |
Expected life in years | 1 year 9 months |
Stock price volatility | 127.00% |
Risk free interest rate | 1.26% |
Maximum [Member] | |
Assumptions - Black Scholes Model: | |
Expected life in years | 3 years 11 months 1 day |
Stock price volatility | 158.00% |
Risk free interest rate | 1.60% |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Assets: | |||||
Prepaid expenses | $ 56,000 | $ 56,000 | $ 25,000 | ||
Property and equipment, net | 146,000 | 146,000 | 181,000 | ||
Other assets | 16,000 | 16,000 | 5,000 | ||
Total Assets | 823,000 | 823,000 | 3,860,000 | ||
Liabilities: | |||||
Accounts payable and accrued liabilities | 186,000 | 186,000 | 118,000 | ||
Revenues | 26,000 | $ 23,000 | 110,000 | $ 88,000 | |
Expenses | |||||
Labor and related expenses | 387,000 | 293,000 | 2,065,000 | 949,000 | |
Rent | 51,000 | 37,000 | 138,000 | 104,000 | |
Depreciation and amortization | 44,000 | 20,000 | 89,000 | 59,000 | |
Professional fees | 2,000,000 | 950,000 | 4,892,000 | 1,488,000 | |
Other general and administrative | 118,000 | 176,000 | 426,000 | 463,000 | |
Total Operating Expenses | 3,142,000 | 1,866,000 | 8,812,000 | 3,823,000 | |
Operating Income (Loss) | (3,116,000) | (1,843,000) | (8,702,000) | (3,735,000) | |
Other Income (Expense) | |||||
Income (Loss) on discontinued operations | (3,126,000) | (2,049,000) | (8,735,000) | (3,941,000) | |
Discontinued Operations From Former Restaurant Segment [Member] | |||||
Assets: | |||||
Accounts receivable, net | 13,000 | ||||
Inventory | 12,000 | ||||
Prepaid expenses | 25,000 | ||||
Property and equipment, net | 6,000 | 6,000 | 30,000 | ||
Other assets | 2,000 | 2,000 | 17,000 | ||
Total Assets | 8,000 | 8,000 | 97,000 | ||
Liabilities: | |||||
Accounts payable and accrued liabilities | 35,000 | 35,000 | 58,000 | ||
Total Liabilities | 35,000 | 35,000 | $ 58,000 | ||
Revenues | 408,000 | 421,000 | 1,050,000 | ||
Cost of sales | 131,000 | 134,000 | 324,000 | ||
Gross Margin | 277,000 | 287,000 | 726,000 | ||
Expenses | |||||
Labor and related expenses | 119,000 | 178,000 | 353,000 | ||
Rent | 62,000 | 82,000 | 191,000 | ||
Depreciation and amortization | 15,000 | 20,000 | 52,000 | ||
Professional fees | 23,000 | 2,000 | 26,000 | 5,000 | |
Other general and administrative | 5,000 | 53,000 | 94,000 | 155,000 | |
Total Operating Expenses | 28,000 | 251,000 | 400,000 | 756,000 | |
Operating Income (Loss) | (28,000) | 26,000 | (113,000) | (30,000) | |
Other Income (Expense) | |||||
Loss on disposal of assets | (19,000) | ||||
Income (Loss) on discontinued operations | $ (28,000) | $ 26,000 | $ (132,000) | $ (30,000) |
Organization And Summary Of S31
Organization And Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) | 9 Months Ended | 36 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Non-Exclusive Limited Right To Incorporate Intellectual Property [Member] | |||
Capitalized licensing rights, additions | $ 175,000 | ||
Estimated useful life of gaming applications | 1 year 7 months 6 days | ||
Additions towards settlement with the game owner and developer | $ 100,000 | ||
One Gaming Applications [Member] | |||
Capitalized licensing rights, additions | $ 50,000 | ||
Estimated useful life of gaming applications | 5 years | ||
Capitalized Licensing Rights [Member] | |||
Capitalized licensing rights, amortization | $ 50,000 | ||
Unamortized capitalized licensing rights | $ 166,000 | $ 268,000 | |
Class A Preferred Stock [Member] | |||
Antidilutive shares excluded from computation of basic earnings per share | 26,909,028 | 26,909,028 | |
Class E Preferred Stock [Member] | |||
Antidilutive shares excluded from computation of basic earnings per share | 318,654 | 163,415 | |
Stock Options [Member] | |||
Antidilutive shares excluded from computation of basic earnings per share | 6,270,000 | ||
Warrants [Member] | |||
Antidilutive shares excluded from computation of basic earnings per share | 1,200,000 | ||
Non-Vested Common [Member] | |||
Antidilutive shares excluded from computation of basic earnings per share | 83,333 |
Property And Equipment (Narrati
Property And Equipment (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expenses | $ 44,000 | $ 20,000 | $ 89,000 | $ 59,000 |
Property And Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expenses | $ 35,000 | $ 33,000 |
Loan Payable - Related Party (N
Loan Payable - Related Party (Narrative) (Details) - A Company Controlled By Chairman And Majority Shareholder [Member] - Revolving Line Of Credit Dated September 05, 2017 [Member] - USD ($) | Sep. 05, 2017 | Sep. 30, 2017 |
Short-term Debt [Line Items] | ||
Line of credit borrowing capacity | $ 500,000 | |
Line of credit interest rate | 6.00% | |
Line of credit due date | Feb. 28, 2017 | |
Proceeds from line of credit | $ 200,000 |
Equity Transactions (Narrative)
Equity Transactions (Narrative) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Feb. 28, 2015 | Sep. 30, 2017 | Dec. 31, 2016 | |
Stock issued for cash, value | $ 300,000 | |||
Stock issued for employee for services, value | 999,000 | |||
Stock issued to consultants for services, value | $ 3,308,000 | |||
Stock options granted | ||||
Stock Options [Member] | ||||
Stock options and warrants terms | All outstanding options had an exercise price greater than $0.31 per share. | |||
Closing stock price | $ 0.31 | |||
Intrinsic value of stock price | $ 0 | |||
Warrants [Member] | ||||
Recognized compensation expense | $ 290,000 | |||
Stock options and warrants terms | The Company granted warrants to purchase a total of 1,000,000 shares of restricted common stock with an exercise price of $1.50 and $2.00 which will expire December 31, 2018. | All outstanding warrants had an exercise price greater than $0.31 per share. | ||
Closing stock price | $ 0.31 | |||
Intrinsic value of stock price | $ 0 | |||
No of warrants granted | 1,000,000 | 1,000,000 | ||
Consultants [Member] | Stock Options [Member] | ||||
Stock options granted | 870,000 | |||
No of shares vested | 695,000 | |||
Recognized compensation expense | $ 357,000 | |||
Unvested compensation costs not yet recognized | $ 105,000 | |||
Stock options and warrants terms | A total of 695,000 options vested upon grant while the remaining 175,000 options will vest through February 2018 at a rate of 35,000 shares per month. The options are exercisable at $1.00 per share. | |||
Stock options expire period | 4 years | |||
Consulting Agreement [ Member] | ||||
No of shares vested | 20,833 | 479,167 | ||
Recognized compensation expense | $ 46,000 | |||
Unvested compensation shares not yet recognized | 0 | 20,833 | ||
Unvested compensation costs not yet recognized | $ 0 | |||
Restricted Common Stock [Member] | Consultants [Member] | ||||
Stock issued to consultants for services, shares | 11,854,833 | |||
Stock issued to consultants for services, value | $ 3,308,000 | |||
Restricted Common Stock [Member] | Consulting Agreement [ Member] | ||||
Stock options granted | 500,000 | |||
Stock or warrants vesting period | 24 months | |||
Restricted Common Stock [Member] | Existing Shareholder And Former Officer / Employee [Member] | ||||
Stock issued for cash, shares | 750,000 | |||
Stock issued for cash, value | $ 300,000 | |||
Fair value of stock issued for cash at sale date | 510,000 | |||
Additional compensation expense to difference between sale price and fair market value of shares sold | $ 210,000 | |||
Common Stock [Member] | ||||
Stock issued for cash, shares | 750,000 | |||
Stock issued for cash, value | $ 75 | |||
Stock issued for employee for services, shares | 1,750,000 | |||
Stock issued for employee for services, value | $ 175 | |||
Stock issued to consultants for services, shares | 11,854,833 | |||
Stock issued to consultants for services, value | $ 1,186 | |||
Common Stock [Member] | Employees [Member] | ||||
Stock issued for employee for services, shares | 1,750,000 | |||
Stock issued for employee for services, value | $ 999,000 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) - USD ($) | Oct. 14, 2015 | Sep. 30, 2017 |
Commitment For Game Development Agreements [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments description | Payments are contingent upon the developer(s) meeting specified milestones and game performance. Pursuant to these agreements, the Company has agreed to pay up to $723,000 during the period from November 2017 through December 2018. | |
Agreed to pay for game development agreements | $ 723,000 | |
Commitment For Third-Party Service Agreements [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments description | Contingent upon the third parties providing the agreed upon services, the Company will issue up to 4,523,500 restricted common shares at various intervals during the period from November 2017 through August 2018. The shares will be recorded at fair value on the date earned under the respective agreements. | |
Suit Relates To Issuance Of Convertible Debentures [Member] | ||
Loss Contingencies [Line Items] | ||
Defendant name | SPYR, Inc., f/k/a Eat at Joes., Ltd | |
Plaintiff name | Zakeni Limited | |
Domicile of litigation | Case filed in the United States District Court for the District of Delaware case | |
Sought damages value | $ 1,500,000 | |
Sought damages description | The plaintiff is seeking payment or conversion of said convertible debentures together with accrued interest and unspecified damages. | |
Trial commencement month and year | 2018-07 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) | Oct. 23, 2017 | Nov. 20, 2017 | Sep. 30, 2017 |
Subsequent Event [Line Items] | |||
Stock issued for services, value | $ 3,308,000 | ||
Common Stock [Member] | |||
Subsequent Event [Line Items] | |||
Stock issued for services, shares | 11,854,833 | ||
Stock issued for services, value | $ 1,186 | ||
Subsequent Event [Member] | Definitive Agreement With Game Owner MMOJoe [Member] | |||
Subsequent Event [Line Items] | |||
Definitive agreement description | On October 23, 2017, we restructured and exercised a game purchase option by entering into a definitive agreement with the game owner MMOJoe pursuant to which SPYR will own all of the game related assets of Pocket Starships, in a cashless transaction, and the publishing agreement with Spectacle as well as the original terms of the Option will be terminated, which means that SPYR will now be able to retain 100% of the revenue generated from the game and will be the sole owner of all of the assets related to the game. The acquisition includes, among other assets, all Pocket Starships related intellectual property, the userbase, artwork, software, internet domains, game store accounts (such as App Store, Play Store, Amazon, and Facebook Gameroom), web portal accounts (Facebook, VK.com, Kongregate, etc.) and internet domains (www.pocketstarships.com). Under the terms of the agreement, the game's owner will receive 8,000,000 restricted shares of SPYR stock (subject to resale gating provisions) with a fair value of $3.2 million and 8,000,000 three-year cash-based options exercisable at $0.50 per share with a fair value of $2,452,000. The Company is currently in the process of determining the accounting for the acquisition. | ||
Subsequent Event [Member] | Common Stock [Member] | Third Party Service Providers [Member] | |||
Subsequent Event [Line Items] | |||
Stock issued for services, shares | 395,000 | ||
Stock issued for services, value | $ 146,000 |