Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 26, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'WESTERN CAPITAL RESOURCES, INC. | ' | ' |
Entity Central Index Key | '0001363958 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Trading Symbol | 'WCRS | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 60,220,165 | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $288,700 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash | $1,983,835 | $2,246,619 |
Loans receivable (less allowance for losses of $1,215,000 and $1,191,000) | 5,438,202 | 5,084,510 |
Inventory | 1,557,886 | 1,084,510 |
Prepaid expenses and other | 889,590 | 486,239 |
Deferred income taxes | 498,000 | 484,000 |
TOTAL CURRENT ASSETS | 10,367,513 | 9,385,878 |
PROPERTY AND EQUIPMENT | 928,074 | 855,719 |
GOODWILL | 12,894,069 | 12,774,069 |
INTANGIBLE ASSETS | 117,096 | 230,891 |
OTHER | 132,333 | 126,991 |
TOTAL ASSETS | 24,439,085 | 23,373,548 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued liabilities | 2,910,560 | 3,119,786 |
Note payable - short-term | 0 | 405,163 |
Current portion long-term debt | 2,750,000 | 210,065 |
Deferred revenue | 296,503 | 293,294 |
TOTAL CURRENT LIABILITIES | 5,957,063 | 4,028,308 |
LONG-TERM LIABILITIES | ' | ' |
Note payable - long-term | 0 | 2,750,000 |
Deferred income taxes | 1,156,000 | 871,000 |
TOTAL LONG-TERM LIABILITIES | 1,156,000 | 3,621,000 |
TOTAL LIABILITIES | 7,113,063 | 7,649,308 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
SHAREHOLDERS' EQUITY | ' | ' |
Common stock, no par value, 240,000,000 shares authorized, 60,220,165 and 60,397,780 issued and outstanding. | 0 | 0 |
Additional paid-in capital | 22,353,600 | 22,371,362 |
Accumulated deficit | -5,027,578 | -6,647,122 |
TOTAL SHAREHOLDERS' EQUITY | 17,326,022 | 15,724,240 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $24,439,085 | $23,373,548 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for losses (in dollars) | $1,215,000 | $1,191,000 |
Common stock, shares authorized | 240,000,000 | 240,000,000 |
Common stock, shares issued | 60,220,165 | 60,397,780 |
Common stock, shares outstanding | 60,220,165 | 60,397,780 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
REVENUES | ' | ' |
Phones and accessories | $12,125,009 | $8,226,050 |
Payday loan fees | 9,911,143 | 9,876,166 |
Cricket service fees | 8,102,364 | 6,241,150 |
Installment interest income | 1,078,788 | 1,061,196 |
Check cashing fees | 511,323 | 642,241 |
Other income and fees | 1,160,569 | 467,271 |
Revenues | 32,889,196 | 26,514,074 |
STORE EXPENSES | ' | ' |
Phone and accessories cost of sales | 9,888,260 | 5,641,828 |
Salaries and benefits | 7,519,094 | 6,628,249 |
Occupancy | 2,634,049 | 2,274,690 |
Provisions for loan losses | 1,859,461 | 1,737,625 |
Advertising | 345,937 | 324,370 |
Depreciation | 350,049 | 330,291 |
Amortization of intangible assets | 143,295 | 222,661 |
Other | 4,007,919 | 3,258,239 |
TOTAL STORE EXPENSES | 26,748,064 | 20,417,953 |
INCOME FROM STORES | 6,141,132 | 6,096,121 |
GENERAL & ADMINISTRATIVE EXPENSES | ' | ' |
Salaries and benefits | 2,012,875 | 1,828,391 |
Depreciation | 27,386 | 23,605 |
Interest expense | 332,247 | 243,581 |
Other | 1,164,080 | 1,099,023 |
TOTAL GENERAL & ADMINISTRATIVE EXPENSES | 3,536,588 | 3,194,600 |
INCOME BEFORE INCOME TAXES | 2,604,544 | 2,901,521 |
INCOME TAX EXPENSE | 985,000 | 1,120,000 |
NET INCOME | 1,619,544 | 1,781,521 |
SERIES A CONVERTIBLE PREFERRED STOCK DIVIDENDS | 0 | -2,505,163 |
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $1,619,544 | ($723,642) |
NET INCOME (LOSS) PER COMMON SHARE | ' | ' |
Basic (in dollars per share) | $0.03 | ($0.06) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - | ' | ' |
Basic (in shares) | 60,244,982 | 12,027,340 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Series A Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2011 | $12,398,297 | $100,000 | $0 | $18,221,777 | ($5,923,480) |
Balance (in shares) at Dec. 31, 2011 | ' | 10,000,000 | 7,446,007 | ' | ' |
Current year preferred dividends payable | -2,505,163 | 0 | 0 | 0 | -2,505,163 |
Net income | 1,781,521 | 0 | 0 | 0 | 1,781,521 |
Common Stock Redeemed and Retired | -307,234 | 0 | 0 | -307,234 | 0 |
Common Stock Redeemed and Retired (in shares) | ' | 0 | -2,048,227 | ' | ' |
Common Stock Issued | 4,356,819 | 0 | 0 | 4,356,819 | 0 |
Common Stock Issued (in shares) | ' | 0 | 45,000,000 | ' | ' |
Series A Convertible Preferred Stock Converted to Common Stock | 0 | -100,000 | 0 | 100,000 | 0 |
Series A Convertible Preferred Stock Converted to Common Stock (in shares) | ' | -10,000,000 | 10,000,000 | ' | ' |
Balance at Dec. 31, 2012 | 15,724,240 | 0 | 0 | 22,371,362 | -6,647,122 |
Balance (in shares) at Dec. 31, 2012 | ' | 0 | 60,397,780 | ' | ' |
Net income | 1,619,544 | 0 | 0 | 0 | 1,619,544 |
Common Stock Redeemed and Retired | -17,762 | 0 | 0 | -17,762 | 0 |
Common Stock Redeemed and Retired (in shares) | ' | 0 | -177,615 | ' | ' |
Balance at Dec. 31, 2013 | $17,326,022 | $0 | $0 | $22,353,600 | ($5,027,578) |
Balance (in shares) at Dec. 31, 2013 | ' | 0 | 60,220,165 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
OPERATING ACTIVITIES | ' | ' |
Net Income | $1,619,544 | $1,781,521 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 377,435 | 353,896 |
Amortization | 143,295 | 222,661 |
Deferred income taxes | 271,000 | 270,000 |
Changes in operating assets and liabilities: | ' | ' |
Loans receivable | -353,692 | -196,697 |
Inventory | -473,376 | -326,382 |
Prepaid expenses and other assets | -408,693 | -15,005 |
Accounts payable and accrued liabilities | -210,876 | 796,056 |
Deferred revenue | 3,209 | -21,267 |
Net cash provided by operating activities | 967,846 | 2,864,783 |
INVESTING ACTIVITIES | ' | ' |
Purchases of property, equipment and intangibles | -454,640 | -366,868 |
Acquisition of stores, net of cash acquired | -143,000 | -615,200 |
Net cash used by investing activities | -597,640 | -982,068 |
FINANCING ACTIVITIES | ' | ' |
Payments on notes payable - short-term | -405,163 | -1,000,000 |
Payments on notes payable - long-term | -210,065 | -695,123 |
Advances from notes payable - long-term | 0 | 1,750,000 |
Common stock redemption | -17,762 | -307,234 |
Common stock issued, net of costs | 0 | 4,356,819 |
Dividends | 0 | -5,650,000 |
Net cash used by financing activities | -632,990 | -1,545,538 |
NET INCREASE (DECREASE) IN CASH | -262,784 | 337,177 |
CASH | ' | ' |
Beginning of year | 2,246,619 | 1,909,442 |
End of year | 1,983,835 | 2,246,619 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' |
Income taxes paid | 815,296 | 835,968 |
Interest paid | 331,236 | 244,070 |
Noncash investing and financing activities: | ' | ' |
Series A convertible preferred stock converted to common | 0 | 100,000 |
Conversion of preferred dividend payable to note payable - short-term | $0 | $405,163 |
Basis_of_Presentation_Nature_o
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | ' | ||
1 | Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies – | ||
Basis of Presentation / Nature of Business | |||
Western Capital Resources, Inc. (WCR), through its wholly owned operating subsidiaries, Wyoming Financial Lenders, Inc. (WFL), Express Pawn, Inc. (EP), and PQH Wireless, Inc. (PQH), collectively referred to as the “Company,” provides retail financial services to individuals and operates retail cellular and retail pawn stores primarily in the Midwestern United States. The Company operated 50 “Payday” stores, one combined payday/pawn store, and one pawn store in nine states (Colorado, Iowa, Kansas, Nebraska, North Dakota, South Dakota, Utah, Wisconsin and Wyoming) as of December 31, 2013. The Company operated 57 cellular retail stores in 14 states (Arizona, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska, Ohio, Oklahoma, Oregon, Texas, and Washington) as of December 31, 2013. The consolidated financial statements include the accounts of WCR, WFL, PQH, and EP. All significant intercompany balances and transactions have been eliminated in consolidation. | |||
Through our “Consumer Finance” division, we provide non-recourse cash advance and installment loans, collateralized non-recourse pawn loans, check cashing and other money services, and operate retail pawn stores. The short-term uncollateralized non-recourse consumer loans, known as “cash advance” or “payday” loans, are in amounts that typically range from $100 to $500. Cash advance loans provide customers with cash in exchange for a promissory note with a maturity of generally two to four weeks and the customer’s post-dated personal check for the aggregate amount of the cash advanced plus a fee. The fee varies from state to state, based on applicable regulations, and generally ranges from $15 to $22 per each $100 borrowed. To repay a cash advance loan, a customer may pay with cash, in which case their personal check is returned to them, or allow the check to be presented to the bank for collection. Installment loans provide customers with cash in exchange for a promissory note with a maturity of generally three to six months and are unsecured. The fee and interest rate on installment loans vary based on applicable regulations. | |||
In August 2012, we opened our first pawn store by converting an existing payday location into a combined payday/pawn store. We opened our second pawn store in May 2013. We provide collateralized non-recourse loans, commonly known as “pawn loans,” with maturities of one to four months, depending on the state. Allowable service charges will vary by state. Our pawn loans earn 17.5% to 20% per month. The loan amount varies depending on the valuation of each item pawned. We generally lend from 30% to 55% of the collateral’s estimated resale value depending on an evaluation of several factors. Customers then have the option to redeem the pawned merchandise during the term or at expiration of the pawn loan or else forfeit the merchandise to us upon expiration. At our pawn stores we sell merchandise acquired through either customer forfeiture of pawn collateral or second-hand merchandise purchased from customers or consigned to us. | |||
We also provide title loans and other ancillary consumer financial products and services that are complementary to our cash advance-lending business, such as check-cashing services, money transfers and money orders. In our check-cashing business, we primarily cash payroll checks, but we also cash government assistance, tax refund and insurance checks or drafts. Our fees for cashing payroll checks average approximately 2.5% of the face amount of the check, subject to local market conditions, and this fee is deducted from the cash given to the customer for the check. We display our check-cashing fees in full view of our customers on a menu board in each store and provide a detailed receipt for each transaction. Although we have established guidelines for approving check-cashing transactions, we have no preset limit on the size of the checks we will cash. | |||
Our loans and other related services are subject to state regulations (which vary from state to state), federal regulations and local regulations, where applicable. | |||
We also operate a “Cellular Retail” division that is an authorized Cricket premier dealer, selling cellular phones and accessories, providing ancillary services and accepting service payments from customers. | |||
Use of Estimates | |||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect certain reported amounts and disclosures in the consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. Significant management estimates relate to the loans receivable allowance, percentage of existing pawn loans that will be forfeited, allocation of and carrying value of goodwill and intangible assets, inventory valuation and obsolescence and deferred taxes and tax uncertainties. | |||
Revenue Recognition | |||
The Company recognizes fees on cash advance loans on a constant-yield basis ratably over the loans’ terms. Title and installment loan fees and interest are recognized using the interest method, except that installment loan origination fees are recognized as they become non-refundable and installment loan maintenance fees are recognized when earned. The Company recognizes fees on redeemed pawn loans on a constant-yield basis ratably over the loans’ terms. No fees are recognized on forfeited pawn loans. The Company records revenue from check cashing fees, sales of phones, accessories, and pawn inventory, and fees from all other services in the period in which the sale or service is completed. | |||
Loans Receivable Allowance | |||
The Company maintains a loan loss allowance for anticipated losses for our payday and installment loans. We do not record loan losses or charge-offs of pawn or title loans because the value of the collateral exceeds the loan amount. To estimate the appropriate level of the loan loss allowance, we consider the amount of outstanding loan principal, interest and fees, historical charge offs, current and expected collection patterns and current economic trends. Our current loan loss allowance is based on our historical net write off percentage, net charge offs to loan principal, interest and fee amounts that originated during the last 24 months, applied against the balance of loan principal, interest and fees outstanding. The Company also periodically performs a look-back analysis on its loan loss allowance to verify the historical allowance established tracks with the actual subsequent loan write-offs and recoveries. The Company is aware that as conditions change, it may also need to make additional allowances in future periods. | |||
Included in loans receivable are unpaid principal, interest and fee balances of payday, installment, pawn and title loans that have not reached their maturity date, and “late” payday loans that have reached maturity within the last 180 days and have remaining outstanding balances. Late payday loans generally are unpaid loans where a customer’s personal check has been deposited and the check has been returned due to non-sufficient funds in the customer’s account, a closed account, or other reasons. Loans are carried at cost plus accrued interest or fees less payments made and the loans receivable allowance. The Company does not specifically reserve for any individual loan. The Company aggregates loan types for purposes of estimating the loss allowance using a methodology that analyzes historical portfolio statistics and management’s judgment regarding recent trends noted in the portfolio. This methodology takes into account several factors, including the maturity of the store location and charge-off and recovery rates. The Company utilizes a software program to assist with the tracking of its historical portfolio statistics. All returned items are charged-off after 180 days, as collections after that date have not been significant. The loans receivable allowance is reviewed monthly and any adjustment to the loan loss allowance as a result of historical loan performance, current and expected collection patterns and current economic trends is recorded. | |||
Inventory | |||
Cellular Retail division inventory, consisting of phones and accessories, is stated at cost, determined on the specific identification and a first-in, first-out basis, respectively. Pawn merchandise inventory is stated at the lower of cost or market where the principal amount of an unpaid loan becomes the inventory cost of the forfeited collateral. | |||
Property and Equipment | |||
Property and equipment are recorded at cost less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the related assets. Useful lives generally range from five to seven years for furniture, equipment, and vehicles. Leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful lives of the related assets or the leases term, and this amortization is included with depreciation. | |||
Goodwill | |||
Goodwill represents the excess of cost over the fair value of net assets acquired using purchase accounting and is not amortized. | |||
Intangible Assets | |||
Customer relationships represent the fair values management assigned to relationships with customers acquired through business acquisitions and is amortized over three years on an accelerated basis based on management’s estimates of attrition of the acquired customers. | |||
Long- Lived Assets | |||
The Company assesses the possibility of impairment of long-lived and intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors that could trigger an impairment review include significant underperformance relative to expected historical or projected future cash flows, significant changes in the manner of use of acquired assets or the strategy for the overall business, and significant negative industry events or trends. In addition, we conduct an annual goodwill impairment test as of October 1 each year. We assess our goodwill for impairment at the reporting unit level by applying a fair value test. This fair value test involves a two-step process. The first step is to compare the carrying value of our net assets to our fair value. If the fair value is determined to be less than the carrying value, a second step is performed to measure the amount of the impairment, if any. | |||
Due to the minimal amount of float for our common stock, the market capitalization approach of valuing the reporting unit as a whole is not practical. The discounted future cash flows method is utilized in estimating value. When estimated future cash flows are less than the carrying value of the net assets and related goodwill, an impairment test is performed to measure and recognize the amount of the impairment loss, if any. There were no impairment charges recorded in 2013 or 2012. | |||
Concentrations of Credit Risk | |||
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and loans receivable. The Company’s cash is placed with high quality financial institutions. From time to time, cash balances exceed federally insured limits. The Company has not experienced any significant losses with respect to its cash. Loans receivable, while concentrated in geographical areas, are dispersed among thousands of customers. | |||
Income Taxes | |||
Deferred income taxes reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts, based on enacted tax laws and statutory tax rates applicable in the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The provision for income taxes represents taxes paid or payable for the current year and changes during the year in deferred tax assets and liabilities. | |||
Net Income/(Loss) Per Common Share | |||
Basic net income/(loss) per common share is computed by dividing the income/(loss) available to common shareholders by the weighted average number of common shares outstanding for the year. Diluted net loss per common share (applicable to 2012 only) is computed by dividing the net loss available to common shareholders’ by the sum of the weighted average number of common shares outstanding plus potentially dilutive common share equivalents (convertible preferred shares) when dilutive. | |||
The 10 million shares of potentially dilutive Series A Convertible Preferred Stock outstanding during a portion of 2012 were anti-dilutive and therefore excluded from the dilutive net loss per share computation for 2012. | |||
Fair Value of Financial Instruments | |||
The amounts reported in the balance sheets for cash, loans receivable, inventory, and accounts payable are short-term in nature and their carrying values approximate fair values. The amounts reported in the balance sheets for notes payable are both long-term and short-term and their carrying value approximates fair value. | |||
Recent Accounting Pronouncements | |||
In July 2012, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. This ASU permits an entity the option to first assess qualitative factors to determine whether it is more-likely-than-not that an indefinite-lived intangible asset is impaired. The results of the qualitative assessment would be used as a basis in determining whether it is necessary to perform the two-step quantitative impairment test. If the qualitative assessment supports the conclusion that it is more-likely-than-not that the fair value of the asset exceeds its carrying amount, the entity would not need to perform the two-step quantitative impairment test. The objective of this update is to reduce the cost and complexity of performing impairment tests for indefinite-lived intangible assets other than goodwill, and to improve consistency in impairment testing among long-lived asset categories. This ASU is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of this ASU did not have a material effect on our financial condition or results of operations. | |||
No other new accounting pronouncements issued or effective during the fiscal year have had or are expected to have a material impact on the consolidated financial statements. | |||
Risks_Inherent_in_the_Operatin
Risks Inherent in the Operating Environment | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||||
Concentration Risk Disclosure [Text Block] | ' | ||||||||||||
2 | Risks Inherent in the Operating Environment – | ||||||||||||
The Company’s Consumer Finance division activities are highly regulated under numerous local, state, and federal laws and regulations, which are subject to change. New laws or regulations could be enacted that could have a negative impact on the Company’s lending activities. Over the past several years, consumer advocacy groups and certain media reports have advocated governmental and regulatory action to prohibit or severely restrict the Company’s lending activities. | |||||||||||||
Any adverse change in present federal laws or regulations that govern or otherwise affect lending could result in our curtailment or cessation of operations in certain jurisdictions or locations. Furthermore, any failure to comply with any applicable federal laws or regulations could result in fines, litigation, closure of one or more store locations or negative publicity. Any such change or failure would have a corresponding impact on our results of operations and financial condition, primarily through a decrease in revenues resulting from the cessation or curtailment of operations, decrease in our operating income through increased legal expenditures or fines, and could also negatively affect our general business prospects as well if we are unable to effectively replace such revenues in a timely and efficient manner or if negative publicity effects our ability to obtain additional financing as needed. | |||||||||||||
In addition, the passage of federal or state laws and regulations could, at any point, essentially prohibit the Company from conducting its lending business in its current form. Any such legal or regulatory change would certainly have a material and adverse effect on the Company, its operating results, financial condition and prospects, and perhaps even its viability. | |||||||||||||
On July 12, 2013, AT&T announced an agreement between AT&T and Leap Wireless to acquire Leap Wireless. | |||||||||||||
Leap Wireless owns the Cricket Wireless business that is a t and focus of the Company’s Cellular Retail division. AT&T’s acquisition of Leap Wireless is subject to a number of conditions, including approval from the Federal Trade Commission for purposes of federal anti-trust laws. On October 30, 2013, Leap Wireless held a special shareholder meeting at which its shareholders approved, among other things, the July 12, 2013 Agreement and Plan of Merger with AT&T. | |||||||||||||
For the years ended December 31, 2013 and 2012, the Company had significant revenues by state (shown as a percentage of applicable division’s revenue when 10% or more) as follows: | |||||||||||||
Consumer Finance Division | Cellular Retail Division | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
% of | % of | % of | % of | ||||||||||
Revenues | Revenues | Revenues | Revenues | ||||||||||
Nebraska | 28 | % | 27 | % | Nebraska | 26 | % | 13 | % | ||||
Wyoming | 14 | % | 15 | % | Texas | 12 | % | 13 | % | ||||
North Dakota | 19 | % | 19 | % | Colorado | 11 | % | * | % | ||||
Iowa | 12 | % | 12 | % | Missouri | * | % | 14 | % | ||||
Indiana | * | % | 10 | % | |||||||||
* Denotes less than 10% | |||||||||||||
Loans_Receivable
Loans Receivable | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Receivables [Abstract] | ' | |||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | |||||||||||||
3 | Loans Receivable – | |||||||||||||
At December 31, 2013 and December 31, 2012 our outstanding loans receivable aging was as follows: | ||||||||||||||
December 31, 2013 | ||||||||||||||
Payday | Installment | Pawn & | Total | |||||||||||
Title | ||||||||||||||
Current | $ | 4,519,839 | $ | 408,782 | $ | 288,788 | $ | 5,217,409 | ||||||
30-Jan | 271,967 | 56,807 | - | 328,774 | ||||||||||
31-60 | 202,097 | 31,212 | - | 233,309 | ||||||||||
61-90 | 217,154 | 17,285 | - | 234,439 | ||||||||||
91-120 | 206,885 | 8,660 | - | 215,545 | ||||||||||
121-150 | 199,253 | 2,846 | - | 202,099 | ||||||||||
151-180 | 218,802 | 2,825 | - | 221,627 | ||||||||||
5,835,997 | 528,417 | 288,788 | 6,653,202 | |||||||||||
Allowance for losses | -1,120,000 | -95,000 | - | -1,215,000 | ||||||||||
$ | 4,715,997 | $ | 433,417 | $ | 288,788 | $ | 5,438,202 | |||||||
December 31, 2012 | ||||||||||||||
Payday | Installment | Pawn & | Total | |||||||||||
Title | ||||||||||||||
Current | $ | 4,318,517 | $ | 391,137 | $ | 171,344 | $ | 4,880,998 | ||||||
30-Jan | 269,091 | 47,538 | - | 316,629 | ||||||||||
31-60 | 234,514 | 16,285 | - | 250,799 | ||||||||||
61-90 | 216,717 | 3,201 | - | 219,918 | ||||||||||
91-120 | 202,642 | 1,051 | - | 203,693 | ||||||||||
121-150 | 215,562 | 388 | - | 215,950 | ||||||||||
151-180 | 187,523 | - | - | 187,523 | ||||||||||
5,644,566 | 459,600 | 171,344 | 6,275,510 | |||||||||||
Allowance for losses | -1,119,000 | -72,000 | - | -1,191,000 | ||||||||||
$ | 4,525,566 | $ | 387,600 | $ | 171,344 | $ | 5,084,510 | |||||||
Loans_Receivable_Allowance
Loans Receivable Allowance | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Provision for Loan and Lease Losses [Abstract] | ' | |||||||
Allowance for Credit Losses [Text Block] | ' | |||||||
4 | Loans Receivable Allowance – | |||||||
As a result of the Company’s collection efforts, it historically writes off approximately 42% of the returned payday items. Based on days past the check return date, write-offs of payday returned items historically have tracked at the following approximate percentages: 1 to 30 days – 42%; 31 to 60 days – 67%; 61 to 90 days – 84%; 91 to 120 days – 89%; and 121 to 180 days – 92%. A rollforward of the Company’s loans receivable allowance for the year ended December 31, 2013 and 2012 is as follows: | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Loans receivable allowance, beginning of period | $ | 1,191,000 | $ | 1,001,000 | ||||
Provision for loan losses charged to expense | 1,859,461 | 1,738,000 | ||||||
Charge-offs, net | -1,835,461 | -1,548,000 | ||||||
Loans receivable allowance, end of period | $ | 1,215,000 | $ | 1,191,000 | ||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
5 | Property and Equipment – | |||||||
Property and equipment consisted of the following: | ||||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Furniture and equipment | $ | 1,571,152 | $ | 1,483,853 | ||||
Leasehold improvements | 701,764 | 670,307 | ||||||
Other | 174,493 | 81,764 | ||||||
2,447,409 | 2,235,924 | |||||||
Less accumulated depreciation | 1,519,335 | 1,380,205 | ||||||
$ | 928,074 | $ | 855,719 | |||||
Depreciation expense on all operations for the year ended December 31, 2013 and 2012 was $377,435 and $353,896, respectively. | ||||||||
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Intangible Assets Disclosure [Text Block] | ' | |||||||
6 | Intangible Assets – | |||||||
Intangible assets consisted of the follows: | ||||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Customer relationships & other | $ | 4,627,412 | $ | 4,597,912 | ||||
Less accumulated amortization | 4,510,316 | 4,367,021 | ||||||
$ | 117,096 | $ | 230,891 | |||||
As of December 31, 2013, estimated future amortization expense for the customer relationships is as follows: | ||||||||
2014 | $ | 81,838 | ||||||
2015 | 11,625 | |||||||
2016 | 2,953 | |||||||
2017 | 2,953 | |||||||
2018 | 2,953 | |||||||
Thereafter | 14,774 | |||||||
$ | 117,096 | |||||||
Note_Payable_Short_Term
Note Payable - Short Term | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Short-term Debt [Text Block] | ' | |||||||
7 | Note Payable – Short Term – | |||||||
The Company’s short-term debt is as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Note payable to shareholders related to preferred stock conversion to | $ | - | $ | 405,163 | ||||
common, due and payable, if no earlier payment demand is made, on | ||||||||
April 30, 2013. The note accrues no interest. | ||||||||
Notes_Payable_Long_Term
Notes Payable - Long Term | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term Debt [Text Block] | ' | |||||||
8 | Notes Payable – Long Term – | |||||||
The Company’s long-term debt is as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Note payable (with a credit limit of $3,000,000) to River City Equity, Inc., | $ | 2,750,000 | $ | 2,750,000 | ||||
a related party, with interest payable monthly at 12% due March 31, 2014 | ||||||||
and upon certain events can be collateralized by substantially all assets | ||||||||
of WCR. | ||||||||
Note payable to a related party with interest payable monthly at 10%, due | - | 94,397 | ||||||
March 1, 2013 and collateralized by substantially all assets of select | ||||||||
locations of PQH. | ||||||||
Note payable to a related party with interest payable monthly at 10%, due | - | 115,668 | ||||||
April 1, 2013 and collateralized by substantially all assets of select | ||||||||
locations of PQH. | ||||||||
Total | 2,750,000 | 2,960,065 | ||||||
Less current maturities | 2,750,000 | 210,065 | ||||||
$ | - | $ | 2,750,000 | |||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||
Income Tax Disclosure [Text Block] | ' | |||||||||||||
9 | Income Taxes – | |||||||||||||
The Company’s provision for income taxes is as follows: | ||||||||||||||
For the Year Ended December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Current: | ||||||||||||||
Federal | $ | 600,000 | $ | 718,000 | ||||||||||
State | 114,000 | 132,000 | ||||||||||||
714,000 | 850,000 | |||||||||||||
Deferred: | ||||||||||||||
Federal | 228,000 | 228,000 | ||||||||||||
State | 43,000 | 42,000 | ||||||||||||
271,000 | 270,000 | |||||||||||||
$ | 985,000 | $ | 1,120,000 | |||||||||||
Deferred income tax assets (liabilities) are summarized as follows: | ||||||||||||||
For the Year Ended December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Current | Non-Current | Current | Non-Current | |||||||||||
Deferred income tax assets: | ||||||||||||||
Allowance for loan receivable | $ | 461,000 | $ | $ | 452,000 | $ | - | |||||||
Other | 37,000 | 32,000 | - | |||||||||||
498,000 | 484,000 | - | ||||||||||||
Deferred income tax liabilities: | ||||||||||||||
Property and equipment | - | -206,000 | - | -226,000 | ||||||||||
Goodwill and intangible assets | - | -950,000 | - | -645,000 | ||||||||||
- | -1,156,000 | - | -871,000 | |||||||||||
Net | $ | 498,000 | $ | -1,156,000 | $ | 484,000 | $ | -871,000 | ||||||
Reconciliations from the statutory federal income tax rate to the effective income tax rate are as follows: | ||||||||||||||
For the Year Ended December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Income tax expense using the statutory federal rate | $ | 885,000 | $ | 987,000 | ||||||||||
State income taxes, net of federal benefit | 103,000 | 115,000 | ||||||||||||
Other | -3,000 | 18,000 | ||||||||||||
Income tax expense | $ | 985,000 | $ | 1,120,000 | ||||||||||
It is the Company’s practice to recognize penalties and/or interest related to income tax matters in interest and penalties expense. As of December 31, 2013 and 2012, the Company had an immaterial amount of accrued interest and penalties. | ||||||||||||||
The Company is subject to income taxes in the U.S. federal jurisdiction and various states and local jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. Accounting principles generally accepted in the United States of America require management to evaluate tax positions taken by the Company and recognize a tax liability (or asset) if the company has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. Management has analyzed the tax positions taken by the Company and has concluded that as of December 31, 2013, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the consolidated financial statements. The Company is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. Management believes the Company is no longer subject to income tax examinations for years prior to 2010. | ||||||||||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||
Dec. 31, 2013 | |||
Stockholders Equity Note [Abstract] | ' | ||
Shareholders Equity and Share-based Payments [Text Block] | ' | ||
10 | Shareholders’ Equity – | ||
Capitalization | |||
At December 31, 2013, the Company’s authorized capital stock consists of 250,000,000 shares of no par value capital stock. All shares have equal voting rights and are entitled to one vote per share. | |||
Of the 250,000,000 shares of authorized capital, 240,000,000 have been designated as common stock and 10,000,000 as Series A Convertible Preferred Stock. The Series A Convertible Preferred Stock had a 10% cumulative dividend and could be converted on a share-for-share basis into common stock. The Company had the right to redeem some or all of the Series A Convertible Preferred Stock at any time, upon 60 days notice, at $3.50 per share, plus any cumulative unpaid dividends. Effective December 10, 2012, all of the outstanding preferred stock was converted to common | |||
Common Stock Repurchases | |||
In February 2013, the Company repurchased 177,615 shares of its common stock at $0.10 per share for a total repurchase cost of $17,762. In February and March 2012, the Company repurchased 2,048,227 shares of its common stock at $0.15 per share for a total repurchase cost of $307,234. | |||
Rights Offering | |||
On June 18, 2012, the Company filed a registration statement with the SEC on Form S-1 relating to the proposed distribution of subscription rights (for no consideration) to the existing shareholders of the Company and the related public offer and sale of common stock to such shareholders. | |||
The Company filed amendments to the registration statement on July 27, August 28, September 18, and October 9, 2012. The SEC declared the registration statement, as amended, effective on October 15. The Company distributed the subscription rights on such date and commenced its registered rights offering of common stock. This offering terminated November 14, 2012. | |||
Our gross proceeds from the sale of 45 million shares of common stock at $0.10 per share was $4.5 million. | |||
Preferred Stock Conversion to Common) | |||
On December 10, 2012, the Company entered into a Preferred Stock Conversion Agreement with WCR, LLC, a Delaware limited liability company, and Richard E. Miller, a director of the Company. WCR, LLC and Richard E. Miller were the holders of all of the Company’s 10,000,000 shares of issued and outstanding Series A Convertible Preferred Stock. Pursuant to the Preferred Stock Conversion Agreement, the preferred shareholders converted all of their respective preferred shares into 10,000,000 shares of common stock at the conversion rate set forth in the Certificate Designation for the Series A Convertible Preferred Stock (i.e., a one-for-one share basis). In consideration of the preferred shareholders’ conversion of their preferred shares, the Company paid all of the dividends accrued but unpaid on account of the Series A Convertible Preferred Stock through the date of conversion (i.e., December 10, 2012). The total amount of accrued but unpaid dividends on the Series A Convertible Preferred Stock at December 10, 2012 was $6,055,163. In this regard, the Company delivered | |||
to the preferred shareholders cash in the amount of $5,650,000 and demand promissory notes in the aggregate principal amount of $405,163. The demand promissory notes accrued no interest and were paid in April, 2013. | |||
2008 Stock Incentive Plan | |||
On February 2, 2008, the Board of Directors of the Company approved and adopted the Company’s 2008 Stock Incentive Plan, pursuant to which an aggregated of 2,000,000 shares of common stock have been reserved for issuance. No options under this plan have been granted as of December 31, 2013. | |||
The Company had no stock options or stock warrants outstanding at December 31, 2013. | |||
Preferred_Stock_Dividend
Preferred Stock Dividend | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Stockholders Equity Note [Abstract] | ' | ||||
Preferred Stock [Text Block] | ' | ||||
11 | Preferred Stock Dividend – | ||||
Reconciliation of the cumulative preferred stock dividend payable for the year ended December 31, 2012 is as follows: | |||||
Balance due, beginning of year | $ | 3,550,000 | |||
Current year preferred dividends payable | 2,505,163 | ||||
Preferred dividends paid (including note payable) | -6,055,163 | ||||
Balance due, end of year | $ | - | |||
Operating_Lease_Commitments
Operating Lease Commitments | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Leases of Lessee Disclosure [Text Block] | ' | ||||
12 | Operating Lease Commitments – | ||||
The Company leases its facilities under operating leases with terms ranging from month to month to six years, with rights to extend for additional periods. Rent expense on all operations was approximately $2,663,000 and $2,306,000 in 2013 and 2012, respectively. Future minimum lease payments are approximately as follows: | |||||
Year Ending December 31, | Amount | ||||
2014 | $ | 1,950,000 | |||
2015 | 1,448,000 | ||||
2016 | 761,000 | ||||
2017 | 413,000 | ||||
2018 and thereafter | 76,000 | ||||
$ | 4,648,000 | ||||
Other_Expenses
Other Expenses | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Expense [Abstract] | ' | |||||||
Other Expense [Text Block] | ' | |||||||
13 | Other Expenses – | |||||||
A breakout of other expense is as follows: | ||||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Store expenses | ||||||||
Bank fees | $ | 412,507 | $ | 323,760 | ||||
Collection costs | 466,597 | 467,715 | ||||||
Repair and Maintenance | 270,045 | 212,634 | ||||||
Supplies | 510,384 | 390,010 | ||||||
Telephone | 173,980 | 155,297 | ||||||
Utilities and network lines | 792,254 | 690,521 | ||||||
Other | 1,382,152 | 1,018,302 | ||||||
$ | 4,007,919 | $ | 3,258,239 | |||||
General & administrative expenses | ||||||||
Professional fees | $ | 338,732 | $ | 252,067 | ||||
Management and consulting fees | 463,157 | 539,316 | ||||||
Other | 362,191 | 307,640 | ||||||
$ | 1,164,080 | $ | 1,099,023 | |||||
AcquisitionsDispositions
Acquisitions/Dispositions | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Business Combinations [Abstract] | ' | ||||
Business Combination Disclosure [Text Block] | ' | ||||
14 | Acquisitions/Dispositions – | ||||
In 2012 the Company purchased the assets of various stores in separate transactions. The aggregate purchase price totaled $615,200. | |||||
In February through May 2012, the Company acquired three Cricket corporate-owned stores in Texas and two Cricket dealer-owned stores, one in Nebraska and the other in Washington. In October the Company acquired one Cricket corporate-owned store in Washington. | |||||
Under the purchase method of accounting the assets and liabilities of the aforementioned acquisitions were recorded at their respective fair values as of the purchase date as follows: | |||||
Year Ended | |||||
December 31, 2012 | |||||
Property and equipment | $ | 87,500 | |||
Intangible assets | 141,500 | ||||
Goodwill | 380,200 | ||||
Other non-current assets | 4,400 | ||||
Other | 1,600 | ||||
$ | 615,200 | ||||
The results of the operations for the acquired locations have been included in the consolidated financial statements since the date of the acquisitions. The following table presents the unaudited pro forma results of operations for the year ended December 31, 2012, as if the acquisitions had been consummated at the beginning of 2012. The pro forma results of operations are prepared for comparative purposes only and do not necessarily reflect the results that would have occurred had the acquisition occurred at the beginning of the 2012 or the results which may occur in the future. | |||||
For the Year Ended | |||||
December 31, 2012 | |||||
Pro forma revenue | $ | 27,179,000 | |||
Pro forma net income (loss) | $ | -668,000 | |||
Pro forma net income (loss) per common share – basic | $ | -0.06 | |||
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||||||||||||||
15 | Segment Information – | |||||||||||||||||||
The Company has grouped its operations into two segments – Consumer Finance and Cellular Retail. The Consumer Finance segment provides financial and ancillary services. The Cellular Retail segment is a dealer for Cricket Wireless selling cellular phones and accessories, ancillary services and serving as a payment center for customers. | ||||||||||||||||||||
Segment information related to the years ended December 31, 2013 and 2012: | ||||||||||||||||||||
For the Year Ended December 31, 2013 | For the Year Ended December 31, 2012 | |||||||||||||||||||
Consumer | Cellular | Total | Consumer | Cellular | Total | |||||||||||||||
Finance | Retail | Finance | Retail | |||||||||||||||||
Revenues | $ | 12,661,823 | $ | 20,227,373 | $ | 32,889,196 | $ | 12,118,840 | $ | 14,395,234 | $ | 26,514,074 | ||||||||
Depreciation and amortization | $ | 134,178 | $ | 386,552 | $ | 520,730 | $ | 137,241 | $ | 439,316 | $ | 576,557 | ||||||||
Interest expense | $ | 72,547 | $ | 259,700 | $ | 332,247 | $ | - | $ | 243,581 | $ | 243,581 | ||||||||
Income tax expense (benefit) | $ | 865,000 | $ | 120,000 | $ | 985,000 | $ | 1,011,000 | $ | 109,000 | $ | 1,120,000 | ||||||||
Net income (loss) | $ | 897,556 | $ | 721,988 | $ | 1,619,544 | $ | 1,654,552 | $ | 126,969 | $ | 1,781,521 | ||||||||
Total segment assets | $ | 16,131,079 | $ | 8,308,006 | $ | 24,439,085 | $ | 15,575,520 | $ | 7,798,028 | $ | 23,373,548 | ||||||||
Expenditures for segmented assets | $ | 140,996 | $ | 456,644 | $ | 597,640 | $ | 102,329 | $ | 879,739 | $ | 982,068 | ||||||||
Employment_Agreement_Managemen
Employment Agreement / Management Bonus Pool | 12 Months Ended | ||
Dec. 31, 2013 | |||
Compensation and Retirement Disclosure [Abstract] | ' | ||
Compensation and Employee Benefit Plans [Text Block] | ' | ||
16 | Employment Agreement / Management Bonus Pool – | ||
On April 11, 2013, the Company entered into an Amended and Restated Employment Agreement with its Chief Executive Officer, Mr. John Quandahl, to be effective as of April 1, 2013, due to the fact that the Company’s earlier Employment Agreement with Mr. Quandahl expired as of March 31, 2013. The amended and restated agreement has a term of three years and contains other terms and conditions that are identical to those of the original agreement. Specifically, the amended and restated agreement provides an annual base salary and eligibility for an annual performance-based cash bonus pool for management. | |||
The performance-based bonus provisions of the amended and restated agreement permit members of the Company’s management to receive annual bonus payments based on adjusted EBITDA targets annually established by the Board of Directors. If the Company’s actual adjusted EBITDA performance for a particular annual period ranges from 85-100% of the established adjusted EBITDA target, management will be entitled to receive a cash bonus consisting of 7.5% of the actual adjusted EBITDA. Mr. Quandahl’s share of the bonus pool for any particular year is expected to be 10-50% (but may be more), and the bonus pool will be payable to other management-level participants in the bonus pool, if any, selected from time to time by the Board of Directors in its discretion. If the Company’s actual adjusted EBITDA performance for a particular annual period is less than 85% of the established adjusted EBITDA target, no bonus will be payable, and if such performance exceeds 100% of the established adjusted EBITDA target, the bonus pool will include 15% of the amount by which such performance exceeds the target. In addition to the adjusted EBITDA threshold, the amended and restated agreement also contains capital expenditure and working capital thresholds. The amended and restated agreement also contains customary non-solicitation and non-competition provisions as well as provisions for severance payments upon termination by the Company without cause or upon termination by Mr. Quandahl with good reason. | |||
During 2013 and 2012, the bonus requirements were not satisfied due to the impact of various board approved transactions. The requirements would have otherwise been met. The board did, however, approve a bonus of approximately $327,000 and $333,000 for 2013 and 2012, respectively. | |||
Management_and_Advisory_Agreem
Management and Advisory Agreement | 12 Months Ended | ||
Dec. 31, 2013 | |||
Management And Advisory Agreements [Abstract] | ' | ||
Management And Advisory Agreement [Text Block] | ' | ||
17 | Management and Advisory Agreement – | ||
Effective June 21, 2012, the Company entered into an Amended and Restated Management and Advisory Agreement with Blackstreet Capital Management, LLC, (“Blackstreet”) to provide certain financial, managerial, strategic and operating advice and assistance. The original Management and Advisory Agreement was effective April 1, 2010. Blackstreet employs one of the Company’s directors and is affiliated with another entity to which a third director provides consulting services. The annual fees under the amended and restated contract will be the greater of (i) $330,750 (subject to annual increases of five percent) or (ii) five percent of Western Capital’s EBITDA. | |||
The amended and restated agreement also requires the Company to pay Blackstreet a fee in an amount equal to two percent of the gross proceeds of any debt or equity financing, and a fee in an amount equal to $400,000 (plus a $60,000 increase in the management fee payable under the agreement) upon the closing of an acquisition in consideration for Blackstreet’s referral to the Company of such acquisition opportunity and assistance in the performance of due diligence services relating thereto. The Company will not, however, be obligated to accept and pursue any acquisition referrals made by Blackstreet. | |||
Finally, the amended and restated agreement provides that a termination fee will be paid to Blackstreet in the event that the Company terminates the agreement in connection with a sale of all or substantially all of the assets of the Company to, or any merger or other transaction with, an unaffiliated entity, which transaction results in the holders of a majority of the stock of the Company immediately prior to such transaction owning less than 50% of the stock of the Company (or any successor entity) after giving effect to the transaction. The annual management and advisory fees related to the Management and Advisory Agreement with Blackstreet for the years ended December 31, 2013 and 2012 were $343,157 and $326,807, respectively. | |||
Special_Committee_of_the_Board
Special Committee of the Board of Directors | 12 Months Ended | ||
Dec. 31, 2013 | |||
Special Committee Of Board Of Directors [Abstract] | ' | ||
Special Committee Of Board Of Directors [Text Block] | ' | ||
18 | Special Committee of the Board of Directors – | ||
The Board of Directors has appointed Mr. Ellery Roberts to various special committees of the board. The appointments are typically made for a period of six to twelve months, with the latest agreement ending November, 2014. The Company paid $50,000 and $112,500 for the years ended December 31, 2013 and 2012, respectively. | |||
Consulting_Agreement
Consulting Agreement | 12 Months Ended | ||
Dec. 31, 2013 | |||
Consulting Agreement Disclosure [Abstract] | ' | ||
Consulting Agreement Disclosure [Text Block] | ' | ||
19 | Consulting Agreement – | ||
On March 7, 2012, a consulting agreement with Mr. Richard Miller, the Chairman of the Board, was approved by the Company’s Board of Directors. The agreement provides for consulting fees in the amount of $100,000 and contains the same terms and conditions as the earlier agreement that expired March 31, 2012. For each year ended December 31, 2013 and 2012, $100,000 was paid under this agreement. | |||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||
Dec. 31, 2013 | |||
Related Party Transactions [Abstract] | ' | ||
Related Party Transactions Disclosure [Text Block] | ' | ||
20 | Related Party Transactions – | ||
Leases | |||
The Company leases three properties from an officer of the Company and another related party under operating leases, one that extends through October, 2016 requiring monthly lease payments of $1,680, one that extends through June, 2015 requiring monthly lease payments of $1,200, and one that extends through November, 2017 requiring monthly lease payments of $5,000. | |||
In October 2012 the Company entered into the latter lease. The lease is for a term of 5 years and has monthly base rental payments of $5,000 per month. The lease is at terms substantially similar to other leases for property near that location. The lease transaction was approved by the Board of Directors and the related party abstained from voting. This property will be used for a new Cricket retail storefront | |||
On August 31, 2011, the Company entered into two operating leases for property owned by Ladary, Inc. Ladary, which acquired the two properties in foreclosure sales, is a corporation partially owned by the Chief Executive Officer of the Company, two directors and two employees of the management company that manages the Company’s largest shareholder. The new leases, one of which replaced an earlier lease that the Company had entered into with the prior landlord, have four-year terms, require aggregate monthly rental payments of $6,000, and are on terms and conditions substantially similar to those contained in the replaced leases. | |||
Rent expense to related parties for 2013 and 2012 was approximately $166,560 and $122,000, respectively. | |||
Credit Facility | |||
On October 18, 2011 the Company entered into a long-term Promissory Note with River City Equity, Inc. River City Equity, Inc. is a related party due to the relationship of one of its minority shareholders to the Company’s CEO. The note was amended December 7, 2012. Terms of the note are for up to $3,000,000 of principal to be loaned at a rate of 12% with interest payable on a monthly basis. The note matures and all accrued and unpaid interest and the unpaid principal is due and payable on March 31, 2014. The note includes a prepayment penalty and terms providing a security interest, under certain circumstances, in substantially all assets of the Company. | |||
Interest expense for 2013 and 2012 on the related party notes payable was approximately $330,000 and $219,000, respectively. | |||
Litigation_Matter
Litigation Matter | 12 Months Ended | ||
Dec. 31, 2013 | |||
Commitments and Contingencies Disclosure [Abstract] | ' | ||
Litigation Matter [Text Block] | ' | ||
21 | Litigation Matter – | ||
On March 26, 2010, the Company and all of the then-current members of its Board of Directors, among others, were sued by our former Chief Financial Officer and another former member of management, Messrs. Steven Staehr and David Stueve, respectively. In that lawsuit, the plaintiffs have alleged, among other things, that our Board of Directors breached certain of their fiduciary duties primarily in connection with the sale by WERCS of its capital stock in the Company to WCR, LLC. On July 6, 2011, the U.S. District Court for the District of Minnesota granted the Company’s motion to dismiss the action without prejudice. The Company obtained a full and complete release from Steven Staehr pursuant to a Stock Redemption Agreement entered into on March 1, 2012, effective as of February 28, 2012. The redemption transaction contemplated by the agreement was consummated on March 12, 2012. | |||
Subsequent_Events
Subsequent Events | 12 Months Ended | ||
Dec. 31, 2013 | |||
Subsequent Events [Abstract] | ' | ||
Subsequent Events [Text Block] | ' | ||
22 | Subsequent Events – | ||
AT&T Acquisition of Leap Wireless | |||
On March 13, 2014, AT&T closed on the acquisition of Leap Wireless International, Inc. Cricket will be integrated with AT&T’s existing operations and Cricket customers will be migrated over to AT&T’s network over an estimated period of 18 months. Cricket will now have access to AT&T’s nationwide 4G LTE network that covers nearly 280 million people. This will allow the Cricket to expand its presence to additional U.S. cities. | |||
Credit Facility | |||
On March 21, 2014, the Company amended the long-term Promissory Note with River City Equity, Inc. The amendment extends the maturity date for all accrued and unpaid interest and the unpaid principal to June 30, 2015 and removes any prepayment penalty. | |||
Basis_of_Presentation_Nature_o1
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of Presentation / Nature of Business | |
Western Capital Resources, Inc. (WCR), through its wholly owned operating subsidiaries, Wyoming Financial Lenders, Inc. (WFL), Express Pawn, Inc. (EP), and PQH Wireless, Inc. (PQH), collectively referred to as the “Company,” provides retail financial services to individuals and operates retail cellular and retail pawn stores primarily in the Midwestern United States. The Company operated 50 “Payday” stores, one combined payday/pawn store, and one pawn store in nine states (Colorado, Iowa, Kansas, Nebraska, North Dakota, South Dakota, Utah, Wisconsin and Wyoming) as of December 31, 2013. The Company operated 57 cellular retail stores in 14 states (Arizona, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska, Ohio, Oklahoma, Oregon, Texas, and Washington) as of December 31, 2013. The consolidated financial statements include the accounts of WCR, WFL, PQH, and EP. All significant intercompany balances and transactions have been eliminated in consolidation. | |
Through our “Consumer Finance” division, we provide non-recourse cash advance and installment loans, collateralized non-recourse pawn loans, check cashing and other money services, and operate retail pawn stores. The short-term uncollateralized non-recourse consumer loans, known as “cash advance” or “payday” loans, are in amounts that typically range from $100 to $500. Cash advance loans provide customers with cash in exchange for a promissory note with a maturity of generally two to four weeks and the customer’s post-dated personal check for the aggregate amount of the cash advanced plus a fee. The fee varies from state to state, based on applicable regulations, and generally ranges from $15 to $22 per each $100 borrowed. To repay a cash advance loan, a customer may pay with cash, in which case their personal check is returned to them, or allow the check to be presented to the bank for collection. Installment loans provide customers with cash in exchange for a promissory note with a maturity of generally three to six months and are unsecured. The fee and interest rate on installment loans vary based on applicable regulations. | |
In August 2012, we opened our first pawn store by converting an existing payday location into a combined payday/pawn store. We opened our second pawn store in May 2013. We provide collateralized non-recourse loans, commonly known as “pawn loans,” with maturities of one to four months, depending on the state. Allowable service charges will vary by state. Our pawn loans earn 17.5% to 20% per month. The loan amount varies depending on the valuation of each item pawned. We generally lend from 30% to 55% of the collateral’s estimated resale value depending on an evaluation of several factors. Customers then have the option to redeem the pawned merchandise during the term or at expiration of the pawn loan or else forfeit the merchandise to us upon expiration. At our pawn stores we sell merchandise acquired through either customer forfeiture of pawn collateral or second-hand merchandise purchased from customers or consigned to us. | |
We also provide title loans and other ancillary consumer financial products and services that are complementary to our cash advance-lending business, such as check-cashing services, money transfers and money orders. In our check-cashing business, we primarily cash payroll checks, but we also cash government assistance, tax refund and insurance checks or drafts. Our fees for cashing payroll checks average approximately 2.5% of the face amount of the check, subject to local market conditions, and this fee is deducted from the cash given to the customer for the check. We display our check-cashing fees in full view of our customers on a menu board in each store and provide a detailed receipt for each transaction. Although we have established guidelines for approving check-cashing transactions, we have no preset limit on the size of the checks we will cash. | |
Our loans and other related services are subject to state regulations (which vary from state to state), federal regulations and local regulations, where applicable. | |
We also operate a “Cellular Retail” division that is an authorized Cricket premier dealer, selling cellular phones and accessories, providing ancillary services and accepting service payments from customers. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect certain reported amounts and disclosures in the consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. Significant management estimates relate to the loans receivable allowance, percentage of existing pawn loans that will be forfeited, allocation of and carrying value of goodwill and intangible assets, inventory valuation and obsolescence and deferred taxes and tax uncertainties. | |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition | |
The Company recognizes fees on cash advance loans on a constant-yield basis ratably over the loans’ terms. Title and installment loan fees and interest are recognized using the interest method, except that installment loan origination fees are recognized as they become non-refundable and installment loan maintenance fees are recognized when earned. The Company recognizes fees on redeemed pawn loans on a constant-yield basis ratably over the loans’ terms. No fees are recognized on forfeited pawn loans. The Company records revenue from check cashing fees, sales of phones, accessories, and pawn inventory, and fees from all other services in the period in which the sale or service is completed. | |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | ' |
Loans Receivable Allowance | |
The Company maintains a loan loss allowance for anticipated losses for our payday and installment loans. We do not record loan losses or charge-offs of pawn or title loans because the value of the collateral exceeds the loan amount. To estimate the appropriate level of the loan loss allowance, we consider the amount of outstanding loan principal, interest and fees, historical charge offs, current and expected collection patterns and current economic trends. Our current loan loss allowance is based on our historical net write off percentage, net charge offs to loan principal, interest and fee amounts that originated during the last 24 months, applied against the balance of loan principal, interest and fees outstanding. The Company also periodically performs a look-back analysis on its loan loss allowance to verify the historical allowance established tracks with the actual subsequent loan write-offs and recoveries. The Company is aware that as conditions change, it may also need to make additional allowances in future periods. | |
Included in loans receivable are unpaid principal, interest and fee balances of payday, installment, pawn and title loans that have not reached their maturity date, and “late” payday loans that have reached maturity within the last 180 days and have remaining outstanding balances. Late payday loans generally are unpaid loans where a customer’s personal check has been deposited and the check has been returned due to non-sufficient funds in the customer’s account, a closed account, or other reasons. Loans are carried at cost plus accrued interest or fees less payments made and the loans receivable allowance. The Company does not specifically reserve for any individual loan. The Company aggregates loan types for purposes of estimating the loss allowance using a methodology that analyzes historical portfolio statistics and management’s judgment regarding recent trends noted in the portfolio. This methodology takes into account several factors, including the maturity of the store location and charge-off and recovery rates. The Company utilizes a software program to assist with the tracking of its historical portfolio statistics. All returned items are charged-off after 180 days, as collections after that date have not been significant. The loans receivable allowance is reviewed monthly and any adjustment to the loan loss allowance as a result of historical loan performance, current and expected collection patterns and current economic trends is recorded. | |
Inventory, Policy [Policy Text Block] | ' |
Inventory | |
Cellular Retail division inventory, consisting of phones and accessories, is stated at cost, determined on the specific identification and a first-in, first-out basis, respectively. Pawn merchandise inventory is stated at the lower of cost or market where the principal amount of an unpaid loan becomes the inventory cost of the forfeited collateral. | |
Property, Plant and Equipment, Policy [Policy Text Block] | ' |
Property and Equipment | |
Property and equipment are recorded at cost less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the related assets. Useful lives generally range from five to seven years for furniture, equipment, and vehicles. Leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful lives of the related assets or the leases term, and this amortization is included with depreciation. | |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' |
Goodwill | |
Goodwill represents the excess of cost over the fair value of net assets acquired using purchase accounting and is not amortized. | |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | ' |
Intangible Assets | |
Customer relationships represent the fair values management assigned to relationships with customers acquired through business acquisitions and is amortized over three years on an accelerated basis based on management’s estimates of attrition of the acquired customers. | |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | ' |
Long- Lived Assets | |
The Company assesses the possibility of impairment of long-lived and intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors that could trigger an impairment review include significant underperformance relative to expected historical or projected future cash flows, significant changes in the manner of use of acquired assets or the strategy for the overall business, and significant negative industry events or trends. In addition, we conduct an annual goodwill impairment test as of October 1 each year. We assess our goodwill for impairment at the reporting unit level by applying a fair value test. This fair value test involves a two-step process. The first step is to compare the carrying value of our net assets to our fair value. If the fair value is determined to be less than the carrying value, a second step is performed to measure the amount of the impairment, if any. | |
Due to the minimal amount of float for our common stock, the market capitalization approach of valuing the reporting unit as a whole is not practical. The discounted future cash flows method is utilized in estimating value. When estimated future cash flows are less than the carrying value of the net assets and related goodwill, an impairment test is performed to measure and recognize the amount of the impairment loss, if any. There were no impairment charges recorded in 2013 or 2012. | |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' |
Concentrations of Credit Risk | |
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and loans receivable. The Company’s cash is placed with high quality financial institutions. From time to time, cash balances exceed federally insured limits. The Company has not experienced any significant losses with respect to its cash. Loans receivable, while concentrated in geographical areas, are dispersed among thousands of customers. | |
Income Tax, Policy [Policy Text Block] | ' |
Income Taxes | |
Deferred income taxes reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts, based on enacted tax laws and statutory tax rates applicable in the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The provision for income taxes represents taxes paid or payable for the current year and changes during the year in deferred tax assets and liabilities. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Net Income/(Loss) Per Common Share | |
Basic net income/(loss) per common share is computed by dividing the income/(loss) available to common shareholders by the weighted average number of common shares outstanding for the year. Diluted net loss per common share (applicable to 2012 only) is computed by dividing the net loss available to common shareholders’ by the sum of the weighted average number of common shares outstanding plus potentially dilutive common share equivalents (convertible preferred shares) when dilutive. | |
The 10 million shares of potentially dilutive Series A Convertible Preferred Stock outstanding during a portion of 2012 were anti-dilutive and therefore excluded from the dilutive net loss per share computation for 2012. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' |
Fair Value of Financial Instruments | |
The amounts reported in the balance sheets for cash, loans receivable, inventory, and accounts payable are short-term in nature and their carrying values approximate fair values. The amounts reported in the balance sheets for notes payable are both long-term and short-term and their carrying value approximates fair value. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recent Accounting Pronouncements | |
In July 2012, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. This ASU permits an entity the option to first assess qualitative factors to determine whether it is more-likely-than-not that an indefinite-lived intangible asset is impaired. The results of the qualitative assessment would be used as a basis in determining whether it is necessary to perform the two-step quantitative impairment test. If the qualitative assessment supports the conclusion that it is more-likely-than-not that the fair value of the asset exceeds its carrying amount, the entity would not need to perform the two-step quantitative impairment test. The objective of this update is to reduce the cost and complexity of performing impairment tests for indefinite-lived intangible assets other than goodwill, and to improve consistency in impairment testing among long-lived asset categories. This ASU is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of this ASU did not have a material effect on our financial condition or results of operations. | |
No other new accounting pronouncements issued or effective during the fiscal year have had or are expected to have a material impact on the consolidated financial statements. | |
Risks_Inherent_in_the_Operatin1
Risks Inherent in the Operating Environment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||||
Disclosure of Significant Revenue, Percentages by State by Division [Table Text Block] | ' | ||||||||||||
For the years ended December 31, 2013 and 2012, the Company had significant revenues by state (shown as a percentage of applicable division’s revenue when 10% or more) as follows: | |||||||||||||
Consumer Finance Division | Cellular Retail Division | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
% of | % of | % of | % of | ||||||||||
Revenues | Revenues | Revenues | Revenues | ||||||||||
Nebraska | 28 | % | 27 | % | Nebraska | 26 | % | 13 | % | ||||
Wyoming | 14 | % | 15 | % | Texas | 12 | % | 13 | % | ||||
North Dakota | 19 | % | 19 | % | Colorado | 11 | % | * | % | ||||
Iowa | 12 | % | 12 | % | Missouri | * | % | 14 | % | ||||
Indiana | * | % | 10 | % | |||||||||
* Denotes less than 10% | |||||||||||||
Loans_Receivable_Tables
Loans Receivable (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Receivables [Abstract] | ' | |||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||||||||
At December 31, 2013 and December 31, 2012 our outstanding loans receivable aging was as follows: | ||||||||||||||
December 31, 2013 | ||||||||||||||
Payday | Installment | Pawn & | Total | |||||||||||
Title | ||||||||||||||
Current | $ | 4,519,839 | $ | 408,782 | $ | 288,788 | $ | 5,217,409 | ||||||
30-Jan | 271,967 | 56,807 | - | 328,774 | ||||||||||
31-60 | 202,097 | 31,212 | - | 233,309 | ||||||||||
61-90 | 217,154 | 17,285 | - | 234,439 | ||||||||||
91-120 | 206,885 | 8,660 | - | 215,545 | ||||||||||
121-150 | 199,253 | 2,846 | - | 202,099 | ||||||||||
151-180 | 218,802 | 2,825 | - | 221,627 | ||||||||||
5,835,997 | 528,417 | 288,788 | 6,653,202 | |||||||||||
Allowance for losses | -1,120,000 | -95,000 | - | -1,215,000 | ||||||||||
$ | 4,715,997 | $ | 433,417 | $ | 288,788 | $ | 5,438,202 | |||||||
December 31, 2012 | ||||||||||||||
Payday | Installment | Pawn & | Total | |||||||||||
Title | ||||||||||||||
Current | $ | 4,318,517 | $ | 391,137 | $ | 171,344 | $ | 4,880,998 | ||||||
30-Jan | 269,091 | 47,538 | - | 316,629 | ||||||||||
31-60 | 234,514 | 16,285 | - | 250,799 | ||||||||||
61-90 | 216,717 | 3,201 | - | 219,918 | ||||||||||
91-120 | 202,642 | 1,051 | - | 203,693 | ||||||||||
121-150 | 215,562 | 388 | - | 215,950 | ||||||||||
151-180 | 187,523 | - | - | 187,523 | ||||||||||
5,644,566 | 459,600 | 171,344 | 6,275,510 | |||||||||||
Allowance for losses | -1,119,000 | -72,000 | - | -1,191,000 | ||||||||||
$ | 4,525,566 | $ | 387,600 | $ | 171,344 | $ | 5,084,510 | |||||||
Loans_Receivable_Allowance_Tab
Loans Receivable Allowance (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Provision for Loan and Lease Losses [Abstract] | ' | |||||||
Schedule of Credit Losses for Financing Receivables, Current [Table Text Block] | ' | |||||||
A rollforward of the Company’s loans receivable allowance for the year ended December 31, 2013 and 2012 is as follows: | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Loans receivable allowance, beginning of period | $ | 1,191,000 | $ | 1,001,000 | ||||
Provision for loan losses charged to expense | 1,859,461 | 1,738,000 | ||||||
Charge-offs, net | -1,835,461 | -1,548,000 | ||||||
Loans receivable allowance, end of period | $ | 1,215,000 | $ | 1,191,000 | ||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
Property and equipment consisted of the following: | ||||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Furniture and equipment | $ | 1,571,152 | $ | 1,483,853 | ||||
Leasehold improvements | 701,764 | 670,307 | ||||||
Other | 174,493 | 81,764 | ||||||
2,447,409 | 2,235,924 | |||||||
Less accumulated depreciation | 1,519,335 | 1,380,205 | ||||||
$ | 928,074 | $ | 855,719 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | ' | |||||||
Intangible assets consisted of the follows: | ||||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Customer relationships & other | $ | 4,627,412 | $ | 4,597,912 | ||||
Less accumulated amortization | 4,510,316 | 4,367,021 | ||||||
$ | 117,096 | $ | 230,891 | |||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | |||||||
As of December 31, 2013, estimated future amortization expense for the customer relationships is as follows: | ||||||||
2014 | $ | 81,838 | ||||||
2015 | 11,625 | |||||||
2016 | 2,953 | |||||||
2017 | 2,953 | |||||||
2018 | 2,953 | |||||||
Thereafter | 14,774 | |||||||
$ | 117,096 | |||||||
Note_Payable_Short_Term_Tables
Note Payable - Short Term (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Short-term Debt [Table Text Block] | ' | |||||||
The Company’s short-term debt is as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Note payable to shareholders related to preferred stock conversion to | $ | - | $ | 405,163 | ||||
common, due and payable, if no earlier payment demand is made, on | ||||||||
April 30, 2013. The note accrues no interest. | ||||||||
Notes_Payable_Long_Term_Tables
Notes Payable - Long Term (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||||||
The Company’s long-term debt is as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Note payable (with a credit limit of $3,000,000) to River City Equity, Inc., | $ | 2,750,000 | $ | 2,750,000 | ||||
a related party, with interest payable monthly at 12% due March 31, 2014 | ||||||||
and upon certain events can be collateralized by substantially all assets | ||||||||
of WCR. | ||||||||
Note payable to a related party with interest payable monthly at 10%, due | - | 94,397 | ||||||
March 1, 2013 and collateralized by substantially all assets of select | ||||||||
locations of PQH. | ||||||||
Note payable to a related party with interest payable monthly at 10%, due | - | 115,668 | ||||||
April 1, 2013 and collateralized by substantially all assets of select | ||||||||
locations of PQH. | ||||||||
Total | 2,750,000 | 2,960,065 | ||||||
Less current maturities | 2,750,000 | 210,065 | ||||||
$ | - | $ | 2,750,000 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | |||||||||||||
The Company’s provision for income taxes is as follows: | ||||||||||||||
For the Year Ended December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Current: | ||||||||||||||
Federal | $ | 600,000 | $ | 718,000 | ||||||||||
State | 114,000 | 132,000 | ||||||||||||
714,000 | 850,000 | |||||||||||||
Deferred: | ||||||||||||||
Federal | 228,000 | 228,000 | ||||||||||||
State | 43,000 | 42,000 | ||||||||||||
271,000 | 270,000 | |||||||||||||
$ | 985,000 | $ | 1,120,000 | |||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | |||||||||||||
Deferred income tax assets (liabilities) are summarized as follows: | ||||||||||||||
For the Year Ended December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Current | Non-Current | Current | Non-Current | |||||||||||
Deferred income tax assets: | ||||||||||||||
Allowance for loan receivable | $ | 461,000 | $ | $ | 452,000 | $ | - | |||||||
Other | 37,000 | 32,000 | - | |||||||||||
498,000 | 484,000 | - | ||||||||||||
Deferred income tax liabilities: | ||||||||||||||
Property and equipment | - | -206,000 | - | -226,000 | ||||||||||
Goodwill and intangible assets | - | -950,000 | - | -645,000 | ||||||||||
- | -1,156,000 | - | -871,000 | |||||||||||
Net | $ | 498,000 | $ | -1,156,000 | $ | 484,000 | $ | -871,000 | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||||||||
Reconciliations from the statutory federal income tax rate to the effective income tax rate are as follows: | ||||||||||||||
For the Year Ended December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Income tax expense using the statutory federal rate | $ | 885,000 | $ | 987,000 | ||||||||||
State income taxes, net of federal benefit | 103,000 | 115,000 | ||||||||||||
Other | -3,000 | 18,000 | ||||||||||||
Income tax expense | $ | 985,000 | $ | 1,120,000 | ||||||||||
Preferred_Stock_Dividend_Table
Preferred Stock Dividend (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Stockholders Equity Note [Abstract] | ' | ||||
Schedule of Related Party Transactions [Table Text Block] | ' | ||||
Reconciliation of the cumulative preferred stock dividend payable for the year ended December 31, 2012 is as follows: | |||||
Balance due, beginning of year | $ | 3,550,000 | |||
Current year preferred dividends payable | 2,505,163 | ||||
Preferred dividends paid (including note payable) | -6,055,163 | ||||
Balance due, end of year | $ | - | |||
Operating_Lease_Commitments_Ta
Operating Lease Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Operating Leases of Lessee Disclosure [Table Text Block] | ' | ||||
Future minimum lease payments are approximately as follows: | |||||
Year Ending December 31, | Amount | ||||
2014 | $ | 1,950,000 | |||
2015 | 1,448,000 | ||||
2016 | 761,000 | ||||
2017 | 413,000 | ||||
2018 and thereafter | 76,000 | ||||
$ | 4,648,000 | ||||
Other_Expenses_Tables
Other Expenses (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Expense [Abstract] | ' | |||||||
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | ' | |||||||
A breakout of other expense is as follows: | ||||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Store expenses | ||||||||
Bank fees | $ | 412,507 | $ | 323,760 | ||||
Collection costs | 466,597 | 467,715 | ||||||
Repair and Maintenance | 270,045 | 212,634 | ||||||
Supplies | 510,384 | 390,010 | ||||||
Telephone | 173,980 | 155,297 | ||||||
Utilities and network lines | 792,254 | 690,521 | ||||||
Other | 1,382,152 | 1,018,302 | ||||||
$ | 4,007,919 | $ | 3,258,239 | |||||
General & administrative expenses | ||||||||
Professional fees | $ | 338,732 | $ | 252,067 | ||||
Management and consulting fees | 463,157 | 539,316 | ||||||
Other | 362,191 | 307,640 | ||||||
$ | 1,164,080 | $ | 1,099,023 | |||||
AcquisitionsDispositions_Table
Acquisitions/Dispositions (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Business Combinations [Abstract] | ' | ||||
Schedule Of Purchase Price Allocations [Table Text Block] | ' | ||||
Under the purchase method of accounting the assets and liabilities of the aforementioned acquisitions were recorded at their respective fair values as of the purchase date as follows: | |||||
Year Ended | |||||
December 31, 2012 | |||||
Property and equipment | $ | 87,500 | |||
Intangible assets | 141,500 | ||||
Goodwill | 380,200 | ||||
Other non-current assets | 4,400 | ||||
Other | 1,600 | ||||
$ | 615,200 | ||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||||
The following table presents the unaudited pro forma results of operations for the year ended December 31, 2012, as if the acquisitions had been consummated at the beginning of 2012. The pro forma results of operations are prepared for comparative purposes only and do not necessarily reflect the results that would have occurred had the acquisition occurred at the beginning of the 2012 or the results which may occur in the future. | |||||
For the Year Ended | |||||
December 31, 2012 | |||||
Pro forma revenue | $ | 27,179,000 | |||
Pro forma net income (loss) | $ | -668,000 | |||
Pro forma net income (loss) per common share – basic | $ | -0.06 | |||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||||||||
Segment information related to the years ended December 31, 2013 and 2012: | ||||||||||||||||||||
For the Year Ended December 31, 2013 | For the Year Ended December 31, 2012 | |||||||||||||||||||
Consumer | Cellular | Total | Consumer | Cellular | Total | |||||||||||||||
Finance | Retail | Finance | Retail | |||||||||||||||||
Revenues | $ | 12,661,823 | $ | 20,227,373 | $ | 32,889,196 | $ | 12,118,840 | $ | 14,395,234 | $ | 26,514,074 | ||||||||
Depreciation and amortization | $ | 134,178 | $ | 386,552 | $ | 520,730 | $ | 137,241 | $ | 439,316 | $ | 576,557 | ||||||||
Interest expense | $ | 72,547 | $ | 259,700 | $ | 332,247 | $ | - | $ | 243,581 | $ | 243,581 | ||||||||
Income tax expense (benefit) | $ | 865,000 | $ | 120,000 | $ | 985,000 | $ | 1,011,000 | $ | 109,000 | $ | 1,120,000 | ||||||||
Net income (loss) | $ | 897,556 | $ | 721,988 | $ | 1,619,544 | $ | 1,654,552 | $ | 126,969 | $ | 1,781,521 | ||||||||
Total segment assets | $ | 16,131,079 | $ | 8,308,006 | $ | 24,439,085 | $ | 15,575,520 | $ | 7,798,028 | $ | 23,373,548 | ||||||||
Expenditures for segmented assets | $ | 140,996 | $ | 456,644 | $ | 597,640 | $ | 102,329 | $ | 879,739 | $ | 982,068 | ||||||||
Basis_of_Presentation_Nature_o2
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended |
Share data in Millions, unless otherwise specified | Dec. 31, 2013 |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Approximate Cashing Fees Percentage | 2.50% |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10 |
Payday Loans [Member] | Minimum [Member] | ' |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Short Term Loan Typical Amount Range | 100 |
Short Term Loans Fees $100 Borrowed | 15 |
Payday Loans [Member] | Maximum [Member] | ' |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Short Term Loan Typical Amount Range | 500 |
Short Term Loans Fees $100 Borrowed | 22 |
Pawn Loans [Member] | Minimum [Member] | ' |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Monthly Interest Income Rate | 17.50% |
Collateral Estimated Resale Value Percentage | 30.00% |
Pawn Loans [Member] | Maximum [Member] | ' |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Monthly Interest Income Rate | 20.00% |
Collateral Estimated Resale Value Percentage | 55.00% |
Risks_Inherent_in_the_Operatin2
Risks Inherent in the Operating Environment (Details) (Geographic Concentration Risk [Member]) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Consumer Finance Division [Member] | Nebraska [Member] | ' | ' | ||
Risks Inherent in the Operating Environment [Line Items] | ' | ' | ||
Consumer Finance Division, Revenues By State, Percentage | 28.00% | 27.00% | ||
Consumer Finance Division [Member] | Wyoming [Member] | ' | ' | ||
Risks Inherent in the Operating Environment [Line Items] | ' | ' | ||
Consumer Finance Division, Revenues By State, Percentage | 14.00% | 15.00% | ||
Consumer Finance Division [Member] | North Dakota [Member] | ' | ' | ||
Risks Inherent in the Operating Environment [Line Items] | ' | ' | ||
Consumer Finance Division, Revenues By State, Percentage | 19.00% | 19.00% | ||
Consumer Finance Division [Member] | Iowa [Member] | ' | ' | ||
Risks Inherent in the Operating Environment [Line Items] | ' | ' | ||
Consumer Finance Division, Revenues By State, Percentage | 12.00% | 12.00% | ||
Cellular Retail Division [Member] | Nebraska [Member] | ' | ' | ||
Risks Inherent in the Operating Environment [Line Items] | ' | ' | ||
Cellular Retail Division, Revenues By State, Percentage | 26.00% | 13.00% | ||
Cellular Retail Division [Member] | Texas [Member] | ' | ' | ||
Risks Inherent in the Operating Environment [Line Items] | ' | ' | ||
Cellular Retail Division, Revenues By State, Percentage | 12.00% | 13.00% | ||
Cellular Retail Division [Member] | Colorado [Member] | ' | ' | ||
Risks Inherent in the Operating Environment [Line Items] | ' | ' | ||
Cellular Retail Division, Revenues By State, Percentage | 11.00% | ' | [1] | |
Cellular Retail Division [Member] | Missouri [Member] | ' | ' | ||
Risks Inherent in the Operating Environment [Line Items] | ' | ' | ||
Cellular Retail Division, Revenues By State, Percentage | ' | [1] | 14.00% | |
Cellular Retail Division [Member] | Indiana [Member] | ' | ' | ||
Risks Inherent in the Operating Environment [Line Items] | ' | ' | ||
Cellular Retail Division, Revenues By State, Percentage | ' | [1] | 10.00% | |
[1] | Denotes less than 10% |
Loans_Receivable_Details
Loans Receivable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | $6,653,202 | $6,275,510 | ' |
Allowance for losses | -1,215,000 | -1,191,000 | -1,001,000 |
Outstanding loans receivable, Net | 5,438,202 | 5,084,510 | ' |
Payday [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 5,835,997 | 5,644,566 | ' |
Allowance for losses | -1,120,000 | -1,119,000 | ' |
Outstanding loans receivable, Net | 4,715,997 | 4,525,566 | ' |
Installment [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 528,417 | 459,600 | ' |
Allowance for losses | -95,000 | -72,000 | ' |
Outstanding loans receivable, Net | 433,417 | 387,600 | ' |
Pawn & Title [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 288,788 | 171,344 | ' |
Allowance for losses | 0 | 0 | ' |
Outstanding loans receivable, Net | 288,788 | 171,344 | ' |
Current [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 5,217,409 | 4,880,998 | ' |
Current [Member] | Payday [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 4,519,839 | 4,318,517 | ' |
Current [Member] | Installment [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 408,782 | 391,137 | ' |
Current [Member] | Pawn & Title [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 288,788 | 171,344 | ' |
Delinquent 1 to 30 Days [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 328,774 | 316,629 | ' |
Delinquent 1 to 30 Days [Member] | Payday [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 271,967 | 269,091 | ' |
Delinquent 1 to 30 Days [Member] | Installment [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 56,807 | 47,538 | ' |
Delinquent 1 to 30 Days [Member] | Pawn & Title [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 0 | 0 | ' |
Delinquent 31 to 60 Days [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 233,309 | 250,799 | ' |
Delinquent 31 to 60 Days [Member] | Payday [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 202,097 | 234,514 | ' |
Delinquent 31 to 60 Days [Member] | Installment [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 31,212 | 16,285 | ' |
Delinquent 31 to 60 Days [Member] | Pawn & Title [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 0 | 0 | ' |
Delinquent 61 to 90 Days [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 234,439 | 219,918 | ' |
Delinquent 61 to 90 Days [Member] | Payday [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 217,154 | 216,717 | ' |
Delinquent 61 to 90 Days [Member] | Installment [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 17,285 | 3,201 | ' |
Delinquent 61 to 90 Days [Member] | Pawn & Title [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 0 | 0 | ' |
Delinquent 91 to 120 Days [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 215,545 | 203,693 | ' |
Delinquent 91 to 120 Days [Member] | Payday [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 206,885 | 202,642 | ' |
Delinquent 91 to 120 Days [Member] | Installment [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 8,660 | 1,051 | ' |
Delinquent 91 to 120 Days [Member] | Pawn & Title [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 0 | 0 | ' |
Delinquent 121 to 150 Days [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 202,099 | 215,950 | ' |
Delinquent 121 to 150 Days [Member] | Payday [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 199,253 | 215,562 | ' |
Delinquent 121 to 150 Days [Member] | Installment [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 2,846 | 388 | ' |
Delinquent 121 to 150 Days [Member] | Pawn & Title [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 0 | 0 | ' |
Delinquent 151 to 180 Days [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 221,627 | 187,523 | ' |
Delinquent 151 to 180 Days [Member] | Payday [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 218,802 | 187,523 | ' |
Delinquent 151 to 180 Days [Member] | Installment [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | 2,825 | 0 | ' |
Delinquent 151 to 180 Days [Member] | Pawn & Title [Member] | ' | ' | ' |
Loans Receivable [Line Items] | ' | ' | ' |
Outstanding loans receivable, Gross | $0 | $0 | ' |
Loans_Receivable_Allowance_Det
Loans Receivable Allowance (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Loans Receivable Allowance [Line Items] | ' | ' |
Loans receivable allowance, beginning of period | $1,191,000 | $1,001,000 |
Provision for loan losses charged to expense | 1,859,461 | 1,738,000 |
Charge-offs, net | -1,835,461 | -1,548,000 |
Loans receivable allowance, end of period | $1,215,000 | $1,191,000 |
Loans_Receivable_Allowance_Det1
Loans Receivable Allowance (Details Textual) | Dec. 31, 2013 |
Loans Receivable Allowance [Line Items] | ' |
Percentage of Historical Written Off | 42.00% |
Delinquent 1 to 30 Days [Member] | ' |
Loans Receivable Allowance [Line Items] | ' |
Percentage of Historical Written Off | 42.00% |
Delinquent 31 to 60 Days [Member] | ' |
Loans Receivable Allowance [Line Items] | ' |
Percentage of Historical Written Off | 67.00% |
Delinquent 61 to 90 Days [Member] | ' |
Loans Receivable Allowance [Line Items] | ' |
Percentage of Historical Written Off | 84.00% |
Delinquent 91 to 120 Days [Member] | ' |
Loans Receivable Allowance [Line Items] | ' |
Percentage of Historical Written Off | 89.00% |
Delinquent 121 to 180 Days [Member] | ' |
Loans Receivable Allowance [Line Items] | ' |
Percentage of Historical Written Off | 92.00% |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Furniture and equipment | $1,571,152 | $1,483,853 |
Leasehold improvements | 701,764 | 670,307 |
Other | 174,493 | 81,764 |
Property, Plant and Equipment, Gross, Total | 2,447,409 | 2,235,924 |
Less accumulated depreciation | 1,519,335 | 1,380,205 |
Property, Plant and Equipment, Net, Total | $928,074 | $855,719 |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation | $377,435 | $353,896 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Intangible Assets [Line Items] | ' | ' |
Customer relationships & other | $4,627,412 | $4,597,912 |
Less accumulated amortization | 4,510,316 | 4,367,021 |
Intangible Assets, Net (Excluding Goodwill), Total | $117,096 | $230,891 |
Intangible_Assets_Details_1
Intangible Assets (Details 1) (USD $) | Dec. 31, 2013 |
Amortization Of Intangible Assets [Line Items] | ' |
2014 | $81,838 |
2015 | 11,625 |
2016 | 2,953 |
2017 | 2,953 |
2018 | 2,953 |
Thereafter | 14,774 |
Finite-Lived Intangible Assets, Net, Total | $117,096 |
Note_Payable_Short_Term_Detail
Note Payable - Short Term (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Short-term Debt [Line Items] | ' | ' |
Note payable to shareholders related to preferred stock conversion to common, due and payable, if no earlier payment demand is made, on April 30, 2013. The note accrues no interest. | $0 | $405,163 |
Note_Payable_Short_Term_Detail1
Note Payable - Short Term (Details Textual) (Notes Payable to Shareholder [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Notes Payable to Shareholder [Member] | ' |
Short-term Debt [Line Items] | ' |
Debt Instrument, Maturity Date | 30-Apr-13 |
Notes_Payable_Long_Term_Detail
Notes Payable - Long Term (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Notes Payable | $2,750,000 | $2,960,065 |
Less current maturities | 2,750,000 | 210,065 |
Notes Payable, Noncurrent | 0 | 2,750,000 |
Note Payable to River City Equity [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes Payable | 2,750,000 | 2,750,000 |
Note Payable to Related Party1 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes Payable | 0 | 94,397 |
Note Payable to Related Party2 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes Payable | $0 | $115,668 |
Notes_Payable_Long_Term_Detail1
Notes Payable - Long Term (Details Textual) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Note Payable to River City Equity [Member] | ' |
Debt Instrument [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $3,000,000 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 12.00% |
Debt Instrument, Maturity Date | 31-Mar-14 |
Note Payable to Related Party1 [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 10.00% |
Debt Instrument, Maturity Date | 1-Mar-13 |
Note Payable to Related Party2 [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 10.00% |
Debt Instrument, Maturity Date | 1-Apr-13 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Current: | ' | ' |
Federal | $600,000 | $718,000 |
State | 114,000 | 132,000 |
Current Income Tax Expense (Benefit), Total | 714,000 | 850,000 |
Deferred: | ' | ' |
Federal | 228,000 | 228,000 |
State | 43,000 | 42,000 |
Deferred Income Tax Expense (Benefit), Total | 271,000 | 270,000 |
Income Tax Expense (Benefit), Total | $985,000 | $1,120,000 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred income tax assets: | ' | ' |
Allowance for loan receivable | $461,000 | $452,000 |
Other | 37,000 | 32,000 |
Deferred income taxes | 498,000 | 484,000 |
Deferred Tax Assets, Net | 498,000 | 484,000 |
Deferred income tax liabilities: | ' | ' |
Property and equipment | -206,000 | -226,000 |
Goodwill and intangible assets | -950,000 | -645,000 |
Deferred income taxes | -1,156,000 | -871,000 |
Deferred Tax Liabilities, Net | ($1,156,000) | ($871,000) |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Expense Benefit [Line Items] | ' | ' |
Income tax expense using the statutory federal rate | $885,000 | $987,000 |
State income taxes, net of federal benefit | 103,000 | 115,000 |
Other | -3,000 | 18,000 |
Income Tax Expense (Benefit), Total | $985,000 | $1,120,000 |
Shareholders_Equity_Details_Te
Shareholders' Equity (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Feb. 02, 2008 | Feb. 28, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 10, 2012 | |
Capitalization [Member] | Capitalization [Member] | Common Stock Repurchases [Member] | Common Stock Repurchases [Member] | Rights Offering [Member] | Series A Convertible Preferred Stock [Member] | Series A Convertible Preferred Stock [Member] | Series A Convertible Preferred Stock [Member] | |||
WCR, LLC and Richard E. Miller [Member] | WCR, LLC and Richard E. Miller [Member] | |||||||||
Shareholders Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Units, Authorized | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized | 240,000,000 | 240,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Series A convertible preferred stock, shares authorized | 10,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | 10,000,000 |
Series A convertible preferred stock, shares issued | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | 10,000,000 |
Series A convertible preferred stock, shares outstanding | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | 10,000,000 |
Common Stock Redeemed & Retired (in shares) | ' | ' | ' | ' | 177,615 | 2,048,227 | ' | ' | ' | ' |
Stock Repurchased and Retired During Period Cost Per Share | ' | ' | ' | ' | $0.10 | $0.15 | ' | ' | ' | ' |
Common Stock Redeemed and Retired | $17,762 | $307,234 | ' | ' | $17,762 | $307,234 | ' | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Cash | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' |
Equity Issuance, Per Share Amount | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' |
Stock Issued During Period, Value, Issued for Cash | ' | ' | ' | ' | ' | ' | 4,500,000 | ' | ' | ' |
Preferred Stock, Conversion Basis | ' | ' | ' | ' | ' | ' | ' | ' | 'preferred shareholders converted all of their respective preferred shares into 10,000,000 shares of common stock at the conversion rate | ' |
Dividends, Preferred Stock | ' | 2,505,163 | 6,055,163 | ' | ' | ' | ' | ' | ' | ' |
Payments of Dividends | 0 | 5,650,000 | ' | ' | ' | ' | ' | 5,650,000 | ' | ' |
Short-Term Non-Bank Loans and Notes Payable | $0 | $405,163 | ' | ' | ' | ' | ' | $405,163 | ' | ' |
Common Stock, Capital Shares Reserved for Future Issuance | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' |
Preferred_Stock_Dividend_Detai
Preferred Stock Dividend (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Preferred Stock Dividend [Line Items] | ' | ' |
Balance due, beginning of year | $0 | $3,550,000 |
Current year preferred dividends payable | 0 | 2,505,163 |
Preferred dividends paid (including note payable) | ' | -6,055,163 |
Balance due, end of year | ' | $0 |
Operating_Lease_Commitments_De
Operating Lease Commitments (Details) (USD $) | Dec. 31, 2013 |
Future Minimum Lease Payment [Line Items] | ' |
2014 | $1,950,000 |
2015 | 1,448,000 |
2016 | 761,000 |
2017 | 413,000 |
2018 and thereafter | 76,000 |
Operating Leases, Future Minimum Payments Due, Total | $4,648,000 |
Operating_Lease_Commitments_De1
Operating Lease Commitments (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Lease Commitment [Line Items] | ' | ' |
Operating Leases, Rent Expense, Net | $2,663,000 | $2,306,000 |
Other_Expense_Details
Other Expense (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Store expenses | ' | ' |
Bank fees | $412,507 | $323,760 |
Collection costs | 466,597 | 467,715 |
Repair and Maintenance | 270,045 | 212,634 |
Supplies | 510,384 | 390,010 |
Telephone | 173,980 | 155,297 |
Utilities and network lines | 792,254 | 690,521 |
Other | 1,382,152 | 1,018,302 |
Total Store expenses | 4,007,919 | 3,258,239 |
General & administrative expenses | ' | ' |
Professional fees | 338,732 | 252,067 |
Management and consulting fees | 463,157 | 539,316 |
Other | 362,191 | 307,640 |
Total General & administrative expenses | $1,164,080 | $1,099,023 |
AcquisitionsDispositions_Detai
Acquisitions/Dispositions (Details) (USD $) | Dec. 31, 2012 |
Business Acquisition [Line Items] | ' |
Property and equipment | $87,500 |
Intangible assets | 141,500 |
Goodwill | 380,200 |
Other non-current assets | 4,400 |
Other | 1,600 |
Total Assets Acquired | $615,200 |
AcquisitionsDispositions_Detai1
Acquisitions/Dispositions (Details 1) (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Business Acquisition [Line Items] | ' |
Pro forma revenue | $27,179,000 |
Pro forma net income (loss) | ($668,000) |
Pro forma net income (loss) per common share - basic | ($0.06) |
AcquisitionsDispositions_Detai2
Acquisitions/Dispositions (Details Textual) (USD $) | Dec. 31, 2012 |
Business Acquisition [Line Items] | ' |
Business Acquisition Purchase Price Allocations Assets Acquired | $615,200 |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | $32,889,196 | $26,514,074 |
Depreciation and amortization | 520,730 | 576,557 |
Interest expense | 332,247 | 243,581 |
Income tax expense (benefit) | 985,000 | 1,120,000 |
Net income (loss) | 1,619,544 | 1,781,521 |
Total segment assets | 24,439,085 | 23,373,548 |
Expenditures for segmented assets | 597,640 | 982,068 |
Consumer Finance [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 12,661,823 | 12,118,840 |
Depreciation and amortization | 134,178 | 137,241 |
Interest expense | 72,547 | 0 |
Income tax expense (benefit) | 865,000 | 1,011,000 |
Net income (loss) | 897,556 | 1,654,552 |
Total segment assets | 16,131,079 | 15,575,520 |
Expenditures for segmented assets | 140,996 | 102,329 |
Cellular Retail [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 20,227,373 | 14,395,234 |
Depreciation and amortization | 386,552 | 439,316 |
Interest expense | 259,700 | 243,581 |
Income tax expense (benefit) | 120,000 | 109,000 |
Net income (loss) | 721,988 | 126,969 |
Total segment assets | 8,308,006 | 7,798,028 |
Expenditures for segmented assets | $456,644 | $879,739 |
Employment_Agreement_Managemen1
Employment Agreement / Management Bonus Pool (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Bonus Arrangement With Individual [Line Items] | ' | ' |
Bonus Arrangement With Individual Description | 'If the Company’s actual adjusted EBITDA performance for a particular annual period ranges from 85-100% of the established adjusted EBITDA target, management will be entitled to receive a cash bonus consisting of 7.5% of the actual adjusted EBITDA. Mr. Quandahl’s share of the bonus pool for any particular year is expected to be 10-50% (but may be more), and the bonus pool will be payable to other management-level participants in the bonus pool, if any, selected from time to time by the Board of Directors in its discretion. If the Company’s actual adjusted EBITDA performance for a particular annual period is less than 85% of the established adjusted EBITDA target, no bonus will be payable, and if such performance exceeds 100% of the established adjusted EBITDA target, the bonus pool will include 15% of the amount by which such performance exceeds the target. In addition to the adjusted EBITDA threshold, the amended and restated agreement also contains capital expenditure and working capital thresholds. | ' |
Bonus Arrangement Current | $327,000 | $333,000 |
Management_and_Advisory_Agreem1
Management and Advisory Agreement (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Management and Advisory Agreement [Line Items] | ' | ' |
Management Fee Payable, Description | 'The annual fees under the amended and restated contract will be the greater of (i) $330,750 (subject to annual increases of five percent) or (ii) five percent of Western Capital’s EBITDA. | ' |
Other Fee Payable Description | 'The amended and restated agreement also requires the Company to pay Blackstreet a fee in an amount equal to two percent of the gross proceeds of any debt or equity financing, and a fee in an amount equal to $400,000 (plus a $60,000 increase in the management fee payable under the agreement) upon the closing of an acquisition in consideration for Blackstreet’s referral to the Company of such acquisition opportunity and assistance in the performance of due diligence services relating thereto. The Company will not, however, be obligated to accept and pursue any acquisition referrals made by Blackstreet. | ' |
Management and Advisory Fees | $343,157 | $326,807 |
Termination Fee Trigger | 50.00% | ' |
Special_Committee_of_the_Board1
Special Committee of the Board of Directors (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Special Committee of the Board of Directors [Line Items] | ' | ' |
Annual Compensation for Officers | $50,000 | $112,500 |
Consulting_Agreement_Details_T
Consulting Agreement (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Consulting Agreement [Line Items] | ' | ' |
Consulting Fees | $100,000 | ' |
Related Party Transaction, Date of Agreement | 31-Mar-12 | ' |
Payments for Fees | $100,000 | $100,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | ' | ' |
Related Party Transaction, Amounts of Transaction | $166,560 | $122,000 |
River City Equity Inc [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Notes Payable, Related Parties, Noncurrent | 3,000,000 | ' |
Debt Instrument, Interest Rate During Period | 12.00% | ' |
Debt Instrument, Maturity Date | 31-Mar-14 | ' |
Interest Expense, Related Party | 330,000 | 219,000 |
Operating Leases Extends Through October 2016 [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Operating Leases Monthly Rental Payments | 1,680 | ' |
Operating Leases Extends Through November 2017 [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Operating Leases Monthly Rental Payments | 5,000 | ' |
Operating Leases Leasing Term | '5 years | ' |
Operating Leases Extends Through June 2015 [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Operating Leases Monthly Rental Payments | 1,200 | ' |
Operating Lease Extends Through August 2015 [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Operating Leases Monthly Rental Payments | $6,000 | ' |
Operating Leases Leasing Term | '4 years | ' |
Subsequent_Events_Details_Text
Subsequent Events (Details Textual) (Subsequent Event [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Debt Instrument, Maturity Date | 30-Jun-15 |