Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 14, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | QUOTEMEDIA INC | |
Entity Central Index Key | 1,101,433 | |
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 | 90,477,798 | |
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 | $ 498,416 | $ 271,700 |
Accounts receivable, net of allowance for doubtful accounts of $120,000 at September 30, 2017 and December 31, 2016, respectively | 332,127 | 433,889 |
Prepaid expenses | 33,194 | 74,949 |
Other current assets | 138,881 | 103,345 |
Total current assets | 1,002,618 | 883,883 |
Deposits | 16,759 | 15,555 |
Property and equipment, net | 1,409,046 | 1,372,940 |
Goodwill | 110,000 | 110,000 |
Intangible assets | 66,141 | 70,594 |
Total assets | 2,604,564 | 2,452,972 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 1,404,304 | 1,499,827 |
Deferred revenue | 775,828 | 549,233 |
Current portion of amounts due to related parties | 3,004 | 44,212 |
Total current liabilities | 2,183,136 | 2,093,272 |
Long-term portion of amounts due to related parties | 12,225,145 | 10,903,439 |
Stockholders' deficit: | ||
Preferred stock, nondesignated, 10,000,000 shares authorized, none issued | ||
Common stock, $0.001 par value, 150,000,000 shares authorized, 90,477,798 and 90,477,798 shares issued and outstanding | 90,479 | 90,479 |
Additional paid-in capital | 9,428,540 | 9,382,824 |
Accumulated deficit | (21,322,736) | (20,017,042) |
Total stockholders' deficit | (11,803,717) | (10,543,739) |
Total liabilities and stockholders' deficit | $ 2,604,564 | $ 2,452,972 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Allowance for Doubtful Accounts Receivable | $ 120,000 | $ 120,000 |
Stockholders' deficit: | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 90,477,798 | 90,477,798 |
Common stock, shares outstanding | 90,477,798 | 90,477,798 |
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 | |
Consolidated Statements Of Operations | ||||
Revenue | $ 2,388,146 | $ 2,224,690 | $ 7,015,864 | $ 6,581,748 |
Cost of revenue | 1,310,995 | 1,232,956 | 3,861,602 | 3,817,315 |
Gross profit | 1,077,151 | 991,734 | 3,154,262 | 2,764,433 |
OPERATING EXPENSES | ||||
Sales and marketing | 397,357 | 384,572 | 1,174,706 | 1,130,774 |
General and administrative | 478,805 | 480,218 | 1,507,252 | 1,476,233 |
Software development | 251,286 | 248,387 | 746,754 | 708,383 |
Total | 1,127,448 | 1,113,177 | 3,428,712 | 3,315,390 |
Operating loss | (50,297) | (121,443) | (274,450) | (550,957) |
Other income and (expense) | ||||
Foreign exchange gain (loss) | (96,120) | 23,402 | (169,587) | (82,483) |
Interest expense (related party) | (297,865) | (263,957) | (859,362) | (747,878) |
Total | (393,985) | (240,555) | (1,028,949) | (830,361) |
Loss before income taxes | (444,282) | (361,998) | (1,303,399) | (1,381,318) |
Provision for income taxes | (796) | (767) | (2,295) | (2,269) |
Net loss | $ (445,078) | $ (362,765) | $ (1,305,694) | $ (1,383,587) |
Loss per share | ||||
Basic and diluted loss per share | $ 0 | $ 0 | $ (0.01) | $ (0.02) |
Weighted average shares outstanding | ||||
Basic and diluted | 90,477,798 | 90,477,798 | 90,477,798 | 90,477,798 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||
Net loss | $ (1,305,694) | $ (1,383,587) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 628,011 | 649,523 |
Bad debt expense | 34,841 | 58,187 |
Stock-based compensation expense | 45,716 | 65,464 |
Changes in assets and liabilities: | ||
Accounts receivable | 66,921 | 10,238 |
Prepaid expenses | 41,755 | 44,269 |
Other current assets | (35,536) | (51,322) |
Deposits | (1,204) | (1,255) |
Accounts payable and amounts due to related parties | 1,184,975 | 1,163,861 |
Deferred revenue | 226,595 | 10,612 |
Net cash provided by operating activities | 886,380 | 565,990 |
Investing Activities | ||
Purchase of fixed assets | (76,965) | (116,002) |
Capitalized application software | (582,699) | (517,383) |
Net cash used in investing activities | (659,664) | (633,385) |
Net increase in cash | 226,716 | (67,395) |
Cash and equivalents, beginning of period | 271,700 | 251,834 |
Cash and equivalents, end of period | $ 498,416 | $ 184,439 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Note 1. BASIS OF PRESENTATION | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the generally accepted accounting principles for interim financial statements and instructions for Form 10-Q. 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 adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for a full year. In connection with the preparation of the condensed consolidated financial statements the Company evaluated subsequent events after the balance sheet date of September 30, 2017 through the filing of this report. For the nine months ended September 30, 2017, the Company has a net loss of $1,305,694 and has a working capital deficit of $1,180,518. Our current liabilities include deferred revenue of $775,828. The costs expected to be incurred to realize the deferred revenue in the next 12 months are minimal. Our long term liabilities include $12,225,145 due to related parties. All repayments of amounts due to related parties must be approved by our Board of Directors. Repayments are subject to our company having sufficient cash on hand and are intended not to impair continuing business operations. The Company has a plan in place for the next 12 months to ensure ongoing expenditures are balanced with the expected growth rate, and believes cash on hand and cash generated will be sufficient to fund operations for the next 12 months. However, to implement our business plan may require additional financing. Additional financings may come from future equity or debt offerings that could result in dilution to our stockholders. These financial statements should be read in conjunction with our financial statements and the notes thereto for the fiscal year ended December 31, 2016 contained in our Form 10-K filed with the Securities and Exchange Commission dated March 31, 2017. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Note 2. SIGNIFICANT ACCOUNTING POLICIES | a) Nature of operations We are a software developer and distributor of financial market data and related services to a global marketplace. We specialize in the collection, aggregation, and delivery of both delayed and real-time financial data content via the Internet. We develop and license software components that deliver dynamic content to banks, brokerage firms, financial institutions, mutual fund companies, online information and financial portals, media outlets, public companies, and corporate intranets. b) Basis of consolidation The consolidated financial statements include the operations of QuoteMedia, Ltd., a wholly owned subsidiary of QuoteMedia, Inc. All intercompany transactions and balances have been eliminated. c) Foreign currency translation and transactions The U.S. dollar is the functional currency of all our company's operations. Foreign currency asset and liability amounts are remeasured into U.S. dollars at end-of-period exchange rates, except for equipment and intangible assets, which are remeasured at historical rates. Foreign currency income and expenses are remeasured at average exchange rates in effect during the period, except for expenses related to balance sheet amounts remeasured at historical exchange rates. Exchange gains and losses arising from remeasurement of foreign currency-denominated monetary assets and liabilities are included in earnings in the period in which they occur. d) Allowances for doubtful accounts We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of the Companys customers to make required payments. The Company determines the allowance by reviewing the age of the receivables and assessing the anticipated ability of customers to pay. No collateral is required for any of the receivables and the Company does not usually apply financing charges to outstanding accounts receivable balances. If the financial condition of our customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. The allowance for doubtful accounts was $120,000 as of September 30, 2017 and December 31, 2016. e) Accounting Pronouncements Accounting Pronouncements Not Yet Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 which created new Accounting Standards Codification ("ASC") topic 606, Revenue from Contracts with Customers. This guidance supersedes ASC 605, Revenue Recognition, and introduces a single, comprehensive, five-step revenue recognition model. ASC 606 also enhances disclosures related to revenue recognition. ASC 606, as amended, is effective for us January 1, 2018 and allows for either a full retrospective or a modified retrospective approach at adoption. We are continuing to assess the impact of adopting ASC 606 and intend to use a modified retrospective approach. Based on the initial evaluation of our current contracts and revenue streams, we do not expect that adoption will have a material impact on our results of operations or financial position. We believe we are following an appropriate timeline to allow for the proper recognition, reporting, and disclosure of revenue upon adoption of ASC 606 at the beginning of fiscal 2018. In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) which amends lease accounting by lessors and lessees. This new standard will require, among other things, that lessees recognize a right-to-use asset and related lease liability for all significant financing and operating leases, and specifies where in the statement of cash flows the related lease payments are to be presented. The standard is effective for years beginning after December 15, 2018, including interim periods within those years (beginning in calendar year 2019 for the Company), and early adoption is permitted. The Company is currently in the process of evaluating the impact the adoption of ASU 2016-02 will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payment. The main purpose of this update is to address the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This Update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU on the Companys consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new standard eliminates Step 2 of the goodwill impairment test. If a company determines in Step 1 of the goodwill impairment test that the carrying value of goodwill is less than the fair value, an impairment in that amount should be recorded to the income statement, rather than proceeding to Step 2. The new guidance is effective for the Company beginning after December 31, 2019, although early adoption is permitted. The Company is currently evaluating the impact of this ASU on the Companys consolidated financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Companys consolidated financial statements upon adoption. |
RELATED PARTIES
RELATED PARTIES | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Note 3. RELATED PARTIES | The following table summarizes amounts due to related parties at September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Current Long-term Current Long-term Purchase of business unit $ - $ 212,659 $ - $ 182,183 Computer hosting services - 216,666 - 137,931 Office rent - 1,296,904 7,365 1,113,079 Other 3,004 17,276 36,847 17,276 Loan - 1,098,668 - 997,072 Lead generation services - 1,526,428 - 1,416,574 Due to Management - 7,856,544 - 7,039,324 Total stock-based compensation $ 3,004 $ 12,225,145 $ 44,212 $ 10,903,439 As a matter of policy all related party transactions are subject to review and approval by the Companys Board of Directors. Amounts due to related parties that have been classified as non-current liabilities are not expected to be repaid within a year of the September 30, 2017 balance sheet date. All repayments of amounts due to related parties must be approved by our Board of Directors. Repayments are subject to our company having sufficient cash on hand and are intended not to impair continuing business operations. Our related party creditors have agreed to these repayment terms. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
4. STOCK-BASED COMPENSATION | FASB ASC 718, Stock Compensation, requires all share-based payments to employees, including grants of employee stock options, to be recognized as compensation expense over the service period (generally the vesting period) in the consolidated financial statements based on their fair values. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount recognized. Total estimated stock-based compensation expense, related to all of the Companys stock-based awards, recognized for the three and nine months ended September 30, 2017 and 2016 was comprised as follows: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Sales and marketing $ 5,052 $ 5,376 $ 15,716 $ 16,128 General and administrative 10,000 45,334 30,000 49,336 Development - - - - Total stock-based compensation $ 15,052 $ 50,710 $ 45,716 $ 65,464 At September 30, 2017 there was $92,252 of unrecognized compensation cost related to non-vested share-based payments which is expected to be recognized over a weighted-average period of 1.84 years. There was no stock option and warrant activity for the nine months ended September 30, 2017. As of September 30, 2017 there were a total of 16,372,803 options and warrants outstanding at a weighted average exercise price of $0.04. The following table summarizes our non-vested stock option and warrant activity for the nine months ended September 30, 2017: Weighted- Options and Average Grant Date Warrants Fair Value Non-vested stock options and warrants at December 31, 2016 3,308,315 $ 0.05 Vested during the period (1,308,315 ) $ 0.05 Non-vested stock options and warrants at September 30, 2017 2,000,000 $ 0.05 Options and Warrants Options and Warrants Outstanding Exercisable Weighted Number Average Weighted Number Weighted Outstanding at Remaining Average Exercisable at Average September 30, Contractual Exercise September 30, Exercise 2017 Life Price 2017 Price $0.03-0.07 16,372,803 7.59 $ 0.04 14,372,803 $ 0.04 As at September 30, 2017 all stock options and warrants have been granted with exercise prices equal to or greater than the market value of the underlying common shares on the date of grant. At September 30, 2017 the aggregate intrinsic value of options and warrants outstanding and exercisable was $55,675. The intrinsic value of stock options and warrants are calculated as the amount by which the market price of our common stock exceeds the exercise price of the option or warrant. |
LOSS PER SHARE
LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Note 5. LOSS PER SHARE | The basic and diluted net loss per share was $(0.00) per share for the three months ended September 30, 2017 and 2016. The basic and diluted net loss per share was $(0.01) and $(0.02) per share for the nine months ended September 30, 2017 and 2016, respectively. There were 16,372,803 stock options and warrants excluded from the calculation of dilutive loss per share for the three and nine months ended September 30, 2017 and 2016, because they were anti-dilutive. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
6. SUBSEQUENT EVENTS | On October 26, 2017, the Companys Board of Directors and Compensation Committee authorized granting a total of 2,000,000 options and warrants to certain executives and employees of the Company. The options and warrants have a ten year expiry term and an exercise price of $0.035 which was the market value of the underlying common shares on the date of grant. The fair value of the new grants totaled $60,000, with the corresponding stock-based compensation expenses recognized over the vesting terms of the new grants. |
SIGNIFICANT ACCOUNTING POLICI12
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Significant Accounting Policies Policies | |
Nature of operations | We are a software developer and distributor of financial market data and related services to a global marketplace. We specialize in the collection, aggregation, and delivery of both delayed and real-time financial data content via the Internet. We develop and license software components that deliver dynamic content to banks, brokerage firms, financial institutions, mutual fund companies, online information and financial portals, media outlets, public companies, and corporate intranets. |
Basis of consolidation | The consolidated financial statements include the operations of QuoteMedia, Ltd., a wholly owned subsidiary of QuoteMedia, Inc. All intercompany transactions and balances have been eliminated. |
Foreign currency translation and transactions | The U.S. dollar is the functional currency of all our company's operations. Foreign currency asset and liability amounts are remeasured into U.S. dollars at end-of-period exchange rates, except for equipment and intangible assets, which are remeasured at historical rates. Foreign currency income and expenses are remeasured at average exchange rates in effect during the period, except for expenses related to balance sheet amounts remeasured at historical exchange rates. Exchange gains and losses arising from remeasurement of foreign currency-denominated monetary assets and liabilities are included in earnings in the period in which they occur. |
Allowances for doubtful accounts | We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of the Companys customers to make required payments. The Company determines the allowance by reviewing the age of the receivables and assessing the anticipated ability of customers to pay. No collateral is required for any of the receivables and the Company does not usually apply financing charges to outstanding accounts receivable balances. If the financial condition of our customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. The allowance for doubtful accounts was $120,000 as of September 30, 2017 and December 31, 2016. |
Accounting Pronouncements | Accounting Pronouncements Not Yet Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 which created new Accounting Standards Codification ("ASC") topic 606, Revenue from Contracts with Customers. This guidance supersedes ASC 605, Revenue Recognition, and introduces a single, comprehensive, five-step revenue recognition model. ASC 606 also enhances disclosures related to revenue recognition. ASC 606, as amended, is effective for us January 1, 2018 and allows for either a full retrospective or a modified retrospective approach at adoption. We are continuing to assess the impact of adopting ASC 606 and intend to use a modified retrospective approach. Based on the initial evaluation of our current contracts and revenue streams, we do not expect that adoption will have a material impact on our results of operations or financial position. We believe we are following an appropriate timeline to allow for the proper recognition, reporting, and disclosure of revenue upon adoption of ASC 606 at the beginning of fiscal 2018. In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) which amends lease accounting by lessors and lessees. This new standard will require, among other things, that lessees recognize a right-to-use asset and related lease liability for all significant financing and operating leases, and specifies where in the statement of cash flows the related lease payments are to be presented. The standard is effective for years beginning after December 15, 2018, including interim periods within those years (beginning in calendar year 2019 for the Company), and early adoption is permitted. The Company is currently in the process of evaluating the impact the adoption of ASU 2016-02 will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payment. The main purpose of this update is to address the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This Update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU on the Companys consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new standard eliminates Step 2 of the goodwill impairment test. If a company determines in Step 1 of the goodwill impairment test that the carrying value of goodwill is less than the fair value, an impairment in that amount should be recorded to the income statement, rather than proceeding to Step 2. The new guidance is effective for the Company beginning after December 31, 2019, although early adoption is permitted. The Company is currently evaluating the impact of this ASU on the Companys consolidated financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Companys consolidated financial statements upon adoption. |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Related Parties Tables | |
Amounts due to related parties | September 30, 2017 December 31, 2016 Current Long-term Current Long-term Purchase of business unit $ - $ 212,659 $ - $ 182,183 Computer hosting services - 216,666 - 137,931 Office rent - 1,296,904 7,365 1,113,079 Other 3,004 17,276 36,847 17,276 Loan - 1,098,668 - 997,072 Lead generation services - 1,526,428 - 1,416,574 Due to Management - 7,856,544 - 7,039,324 Total stock-based compensation $ 3,004 $ 12,225,145 $ 44,212 $ 10,903,439 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stock-based Compensation Tables | |
Summary of stock based compensation expense | Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Sales and marketing $ 5,052 $ 5,376 $ 15,716 $ 16,128 General and administrative 10,000 45,334 30,000 49,336 Development - - - - Total stock-based compensation $ 15,052 $ 50,710 $ 45,716 $ 65,464 |
Summary of non-vested stock option and warrant activity | Weighted- Options and Average Grant Date Warrants Fair Value Non-vested stock options and warrants at December 31, 2016 3,308,315 $ 0.05 Vested during the period (1,308,315 ) $ 0.05 Non-vested stock options and warrants at September 30, 2017 2,000,000 $ 0.05 |
Summary of option and Warrats | Options and Warrants Options and Warrants Outstanding Exercisable Weighted Number Average Weighted Number Weighted Outstanding at Remaining Average Exercisable at Average September 30, Contractual Exercise September 30, Exercise 2017 Life Price 2017 Price $0.03-0.07 16,372,803 7.59 $ 0.04 14,372,803 $ 0.04 |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Basis Of Presentation Details Narrative | |||||
Net loss | $ (445,078) | $ (362,765) | $ (1,305,694) | $ (1,383,587) | |
Working capital deficit | 1,180,518 | 1,180,518 | |||
Deferred revenue | 775,828 | 775,828 | $ 549,233 | ||
Long-term portion of amounts due to related parties | $ 12,225,145 | $ 12,225,145 | $ 10,903,439 |
SIGNIFICANT ACCOUNTING POLICI16
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Significant Accounting Policies Details Narrative | ||
Allowance for doubtful accounts | $ 120,000 | $ 120,000 |
RELATED PARTIES (Details)
RELATED PARTIES (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Due to related parties, Current | $ 3,004 | $ 44,212 |
Due to related parties, Long-term | 12,225,145 | 10,903,439 |
Purchase of Business Unit [Member] | ||
Due to related parties, Current | ||
Due to related parties, Long-term | 212,659 | 182,183 |
Computer Hosting Services [Member] | ||
Due to related parties, Current | ||
Due to related parties, Long-term | 216,666 | 137,931 |
Office Rent [Member] | ||
Due to related parties, Current | 7,365 | |
Due to related parties, Long-term | 1,296,904 | 1,113,079 |
Other [Member] | ||
Due to related parties, Current | 3,004 | 36,847 |
Due to related parties, Long-term | 17,276 | 17,276 |
Loan [Member] | ||
Due to related parties, Current | ||
Due to related parties, Long-term | 1,098,668 | 997,072 |
Lead Generation Services [Member] | ||
Due to related parties, Current | ||
Due to related parties, Long-term | 1,526,428 | 1,416,574 |
Due to Management [Member] | ||
Due to related parties, Current | ||
Due to related parties, Long-term | $ 7,856,544 | $ 7,039,324 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Sales and marketing | $ 397,357 | $ 384,572 | $ 1,174,706 | $ 1,130,774 |
General and administrative | 478,805 | 480,218 | 1,507,252 | 1,476,233 |
Total stock-based compensation | 45,716 | 65,464 | ||
Stock Compensation Plan Expense [Member] | ||||
Sales and marketing | 5,052 | 5,376 | 15,716 | 16,128 |
General and administrative | 10,000 | 45,334 | 30,000 | 49,336 |
Development | ||||
Total stock-based compensation | $ 15,052 | $ 50,710 | $ 45,716 | $ 65,464 |
STOCK-BASED COMPENSATION (Det19
STOCK-BASED COMPENSATION (Details 1) - Stock Option And Warrant | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Options and Warrants | |
Non-vested stock options and warrants - Opening Balance | shares | 3,308,315 |
Vested during the period | shares | (1,308,315) |
Non-vested stock options and warrants - Ending Balance | shares | 2,000,000 |
Weighted-Average Grant Date Fair Value | |
Non-vested stock options and warrants - Opening Balance | $ / shares | $ 0.05 |
Vested during the period | $ / shares | 0.05 |
Non-vested stock options and warrants - Ending Balance | $ / shares | $ 0.05 |
STOCK-BASED COMPENSATION (Det20
STOCK-BASED COMPENSATION (Details 2) - 0.03-0.07 | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number Outstanding | shares | 16,372,803 |
Weighted Average Remaining Contractual Life | 7 years 7 months 2 days |
Weighted-Average Exercise Price | $ / shares | $ 0.04 |
Number Exercisable | shares | 14,372,803 |
Weighted-Average Exercise Price | $ / shares | $ 0.04 |
STOCK-BASED COMPENSATION (Det21
STOCK-BASED COMPENSATION (Details Narrative) | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Unrecognized compensation cost | $ 92,252 |
Weighted-average period | 1 year 10 months 3 days |
Aggregate intrinsic value of options and warrants outstanding | $ 55,675 |
Aggregate intrinsic value of options and warrants exercisable | $ 55,675 |
0.03-0.07 | |
Number Outstanding | shares | 16,372,803 |
Weighted-Average Exercise Price | $ / shares | $ 0.04 |
LOSS PER SHARE (Details Narrati
LOSS PER SHARE (Details Narrative) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Loss Per Share Details Narrative | ||||
Loss per share - basic and diluted | $ 0 | $ 0 | $ (0.01) | $ (0.02) |
Stock options and warrants excluded from the calculation of dilutive loss per share because they were anti-dilutive | 16,372,803 | 16,372,803 | 16,372,803 | 16,372,803 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - Board of Directors [Member] | 1 Months Ended |
Oct. 26, 2017USD ($)$ / sharesshares | |
Options and warrants authorized | shares | 2,000,000 |
Options and warrants expiry term | 10 years |
Exercise price | $ / shares | $ 0.035 |
Fair value of new grants | $ | $ 60,000 |