Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | WESTERN CAPITAL RESOURCES, INC. | ||
Entity Central Index Key | 1363958 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Smaller Reporting Company | ||
Trading Symbol | WCRS | ||
Entity Common Stock, Shares Outstanding | 5,997,588 | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $541,000 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ||
Cash | $4,273,350 | $1,983,835 |
Loans receivable (less allowance for losses of $1,219,000 and $1,215,000, respectively) | 5,331,266 | 5,438,202 |
Accounts receivable (less allowance for losses of $59,405 and $0, respectively) | 1,135,127 | 0 |
Inventory | 2,340,824 | 1,557,886 |
Prepaid expenses and other | 1,435,918 | 889,590 |
Deferred income taxes | 644,000 | 498,000 |
TOTAL CURRENT ASSETS | 15,160,485 | 10,367,513 |
PROPERTY AND EQUIPMENT, net | 1,197,710 | 928,074 |
GOODWILL | 12,956,868 | 12,894,069 |
INTANGIBLE ASSETS, net | 7,248,793 | 117,096 |
OTHER | 198,408 | 132,333 |
TOTAL ASSETS | 36,762,264 | 24,439,085 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 6,025,920 | 2,910,560 |
Income taxes payable | 755,615 | 0 |
Current portion long-term debt | 3,500,000 | 2,750,000 |
Current portion capital lease obligations | 42,240 | 0 |
Deferred revenue and other | 638,068 | 296,503 |
TOTAL CURRENT LIABILITIES | 10,961,843 | 5,957,063 |
LONG-TERM LIABILITIES | ||
Notes payable, net of current portion | 1,625,000 | 0 |
Capital lease obligations, net of current portion | 31,481 | 0 |
Deferred income taxes | 3,939,000 | 1,156,000 |
Other | 114,514 | 0 |
TOTAL LONG-TERM LIABILITIES | 5,709,995 | 1,156,000 |
TOTAL LIABILITIES | 16,671,838 | 7,113,063 |
COMMITMENTS AND CONTINGENCIES (Note 15) | ||
WESTERN SHAREHOLDERS’ EQUITY | ||
Common stock, no par value, 12,500,000 shares authorized, 5,997,588 and 3,011,009 issued and outstanding. | 0 | 0 |
Additional paid-in capital | 22,703,745 | 22,353,600 |
Accumulated deficit | -2,621,692 | -5,027,578 |
TOTAL WESTERN SHAREHOLDERS’ EQUITY | 20,082,053 | 17,326,022 |
NONCONTROLLING INTERESTS | 8,373 | 0 |
TOTAL EQUITY | 20,090,426 | 17,326,022 |
TOTAL LIABILITIES AND EQUITY | $36,762,264 | $24,439,085 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance For Accounts Notes And Loans Receivable Current | $1,219,000 | $1,215,000 |
Allowance for Doubtful Accounts Receivable, Current | $59,405 | $0 |
Common stock, shares authorized | 12,500,000 | 12,500,000 |
Common stock, shares issued | 5,997,588 | 3,011,009 |
Common stock, shares outstanding | 5,997,588 | 3,011,009 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUES | ||
Retail sales and associated fees | $22,535,116 | $17,508,586 |
Financing fees and interest | 11,123,882 | 11,278,639 |
Royalty and franchise fees, net | 2,814,273 | 0 |
Other revenue | 4,286,282 | 4,101,971 |
TOTAL REVENUES | 40,759,553 | 32,889,196 |
COST OF REVENUES | ||
Cost of goods sold | 12,714,413 | 10,267,778 |
Provisions for loans receivable losses | 1,817,822 | 1,859,461 |
Other | 168,952 | 0 |
Cost of Revenue | 14,701,187 | 12,127,239 |
GROSS PROFIT | 26,058,366 | 20,761,957 |
OPERATING EXPENSES | ||
Salaries, wages and benefits | 11,593,794 | 9,531,969 |
Occupancy | 4,610,807 | 4,086,109 |
Advertising and development | 478,261 | 345,937 |
Depreciation | 368,827 | 377,435 |
Amortization | 187,669 | 143,295 |
Other | 4,547,955 | 3,340,421 |
OPERATING EXPENSES | 21,787,313 | 17,825,166 |
OPERATING INCOME | 4,271,053 | 2,936,791 |
OTHER INCOME (EXPENSES): | ||
Interest income | 1,807 | 0 |
Interest expense | -315,568 | -332,247 |
Other Income (Expenses) | -313,761 | -332,247 |
INCOME BEFORE INCOME TAXES | 3,957,292 | 2,604,544 |
INCOME TAX EXPENSE | 1,545,860 | 985,000 |
NET INCOME | 2,411,432 | 1,619,544 |
Less net income attributable to noncontrolling interests | -5,546 | 0 |
NET INCOME ATTRIBUTABLE TO WESTERN SHAREHOLDERS | $2,405,886 | $1,619,544 |
EARNINGS PER SHARE ATTRIBUTABLE TO WESTERN COMMON SHAREHOLDERS | ||
Basic and diluted (in dollars per share) | $0.64 | $0.54 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||
Basic and diluted (in shares) | 3,763,726 | 3,012,249 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated (Deficit) [Member] | Non-controlling Interest [Member] |
Balance at Dec. 31, 2012 | $15,724,240 | $0 | $22,371,362 | ($6,647,122) | $0 |
Balance (in shares) at Dec. 31, 2012 | 3,019,890 | ||||
Net income | 1,619,544 | 0 | 0 | 1,619,544 | 0 |
Common Stock Redeemed and Retired | -17,762 | 0 | -17,762 | 0 | 0 |
Common Stock Redeemed and Retired (in shares) | -8,881 | ||||
Balance at Dec. 31, 2013 | 17,326,022 | 0 | 22,353,600 | -5,027,578 | 0 |
Balance (in shares) at Dec. 31, 2013 | 3,011,009 | ||||
Fractional shares repurchased | -388 | 0 | -388 | 0 | 0 |
Fractional shares repurchased (in shares) | -244 | ||||
Shares of common stock issued October 1, 2014 for AlphaGraphics entities acquisition | 357,392 | 0 | 350,533 | 0 | 6,859 |
Shares of common stock issued October 1, 2014 for AlphaGraphics entities acquisition (in shares) | 2,986,823 | ||||
Net income | 2,411,432 | 0 | 0 | 2,405,886 | 5,546 |
Distributions made by subsidiary to noncontrolling interests | -4,032 | 0 | 0 | 0 | -4,032 |
Balance at Dec. 31, 2014 | $20,090,426 | $0 | $22,703,745 | ($2,621,692) | $8,373 |
Balance (in shares) at Dec. 31, 2014 | 5,997,588 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES | ||
Net Income | $2,411,432 | $1,619,544 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 368,827 | 377,435 |
Amortization | 187,669 | 143,295 |
Deferred income taxes | 349,000 | 271,000 |
Loss on disposal of property and equipment | 14,088 | 0 |
Changes in operating assets and liabilities: | ||
Loans receivable | 106,936 | -353,692 |
Accounts receivable | 91,633 | 0 |
Inventory | -761,957 | -473,376 |
Prepaid expenses and other assets | -424,072 | -408,693 |
Note receivable from related party (Note 15) | 636,196 | 0 |
Accounts payable and accrued liabilities | 1,478,484 | -210,876 |
Deferred revenue and other current liabilities | -12,497 | 0 |
Accrued liabilities and other | -30,446 | 3,209 |
Net cash provided by operating activities | 4,415,293 | 967,846 |
INVESTING ACTIVITIES | ||
Purchases of property and equipment | -237,161 | -454,640 |
Purchase of intangible assets | -250,000 | 0 |
Cash received through acquisition | 168,254 | 0 |
Acquisition of stores, net of cash acquired | -166,800 | -143,000 |
Net cash used by investing activities | -485,707 | -597,640 |
FINANCING ACTIVITIES | ||
Payments on notes payable - short-term | 0 | -405,163 |
Payments on notes payable - long-term | -1,625,000 | -210,065 |
Common stock redemption | -388 | -17,762 |
Payments on capital leases | -10,651 | 0 |
Subsidiary dividends to noncontrolling interests | -4,032 | 0 |
Net cash used by financing activities | -1,640,071 | -632,990 |
NET INCREASE (DECREASE) IN CASH | 2,289,515 | -262,784 |
CASH | ||
Beginning of year | 1,983,835 | 2,246,619 |
End of year | 4,273,350 | 1,983,835 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Income taxes paid | 449,972 | 815,296 |
Interest paid | 312,817 | 331,236 |
Noncash investing and financing activities: | ||
Shares issued and net assets acquired in AlphaGraphics entities acquisition | 350,533 | 0 |
Receivable from sale of intangible asset | $10,000 | $0 |
Basis_of_Presentation_Nature_o
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2014 | |||
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 | |||
References in these financial statements notes to “Company” or “we” refer to Western Capital Resources, Inc. and its subsidiaries. References to specific companies within our enterprise, such “PQH” or “AGI,” are references only to those companies. Western Capital Resources, Inc. (WCR) is a holding company owning operating subsidiaries, with percentage owned shown parenthetically, as summarized below. | |||
· | Franchise | ||
o | AlphaGraphics, Inc. (AGI) (99.2% – Acquired October 1, 2014) – franchisor of 242 domestic and 32 international AlphaGraphics Business Centers which specialize in the planning, production, and management of visual communications for businesses and individuals throughout the world. | ||
· | Cellular Retail | ||
o | PQH Wireless, Inc. (PQH) (100%) – owns and operates cellular retail stores (61 as of December 31, 2014), as an exclusive dealer of the Cricket brand, in 15 states-Arizona, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska, Ohio, Oklahoma, Oregon, Texas, Washington, and Wisconsin. | ||
· | Consumer Finance | ||
o | Wyoming Financial Lenders, Inc. (WFL) (100%) – owns and operates “payday” stores (50 as of December 31, 2014) in nine states (Colorado, Iowa, Kansas, Nebraska, North Dakota, South Dakota, Utah, Wisconsin and Wyoming) providing sub-prime short-term uncollateralized non-recourse “cash advance” or “payday” loans typically ranging from $100 to $500 with a maturity of generally two to four weeks, sub-prime short-term uncollateralized non-recourse installment loans typically ranging from $300 to $800 with a maturity of six months, check cashing and other money services to individuals. | ||
o | Express Pawn, Inc. (EPI) (100%) – owns and operates retail pawn stores (three as of December 31, 2014) in Nebraska and Iowa providing collateralized non-recourse pawn loans and retail sales of merchandise obtained from forfeited pawn loans or purchased from customers. | ||
Basis of Consolidation | |||
The consolidated financial statements include the accounts of the WCR, its wholly owned subsidiaries and other entities in which the Company owns a controlling financial interest. For financial interests in which the Company owns a controlling financial interest, the Company applies the provisions of SFAS 160 which are applicable to reporting the equity and net income or loss attributable to noncontrolling interests. All significant intercompany balances and transactions of the Company have been eliminated in consolidation. | |||
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 notes and loans receivable allowance, carrying value and impairment of long-lived goodwill and intangible assets, inventory valuation and obsolescence, estimated useful lives of property and equipment, and deferred taxes and tax uncertainties. | |||
Revenue Recognition | |||
Franchise | |||
Royalty revenues from franchisees are primarily based on a percentage of business center sales and are recognized in the period in which they are earned. Initial franchise fee revenues are recognized when the obligations required by the franchise agreement have been substantially performed by AGI, which is generally upon the training of the franchisee. Revenues from area development franchise fees and International Master License Agreement (IML) fees are recognized when the obligations required by the area development and IML agreements have been substantially performed. | |||
Supply sales, service fees and other revenues are recognized when products have been shipped or services provided. | |||
Cellular Retail | |||
Sales revenue for sales of phones and accessories and dealer compensation for related activations is recognized in the period in which the sale is completed (retail sales and associated fees). Service fees are recognized upon completion of the service and payment received. Other dealer compensation not attributed to phone activations is recorded in the period earned as reported to us by Cricket Wireless. All sales are presented net of sales taxes, which are excluded from revenue. | |||
Consumer Finance | |||
Loan fees and interest on cash advance loans are recognized on a constant-yield basis ratably over a loan’s term. 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 pawn loans on a constant-yield basis ratably over the loans’ terms. No fees are recognized on forfeited pawn loans. | |||
Receivables and Loss Allowance | |||
Franchise | |||
Accounts receivable are recorded for earned but uncollected royalties and other related franchise fees. Allowances are provided on an account-by-account basis for estimated uncollectible accounts as deemed necessary by management. The Company considers current economic trends and changes in payment terms when evaluating the adequacy of the allowance. | |||
Consumer Finance | |||
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. All returned items are charged-off after 180 days, as collections after that date have not been significant. Loans are carried at cost plus accrued interest or fees less payments made and a loans receivable allowance. | |||
The Company does not specifically reserve for any individual payday, installment or title 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 (1) the amount of loan principal, interest and fee outstanding, (2) historical charge offs from loans that originated during the last 24 months, (3) current and expected collection patterns and (4) current economic trends. The Company utilizes a software program to assist with the tracking of its historical portfolio statistics. A loan loss allowance is maintained for anticipated losses for payday and installment loans based primarily on our historical percentages by loan type of net charge offs, applied against the applicable 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. Loan losses or charge-offs of pawn or title loans are not recorded because the value of the collateral exceeds the loan amount. | |||
Inventory | |||
Cellular Retail | |||
Inventory, consisting of phones and accessories, is stated at cost, determined on the specific identification and a first-in, first-out basis, respectively. | |||
Consumer Finance | |||
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. | |||
Included in property and equipment is the cost of software developed or acquired for internal use. These costs are amortized over the estimated useful life of the software. | |||
Goodwill | |||
Goodwill represents the excess of cost over the fair value of net assets acquired using purchase accounting and is not amortized. | |||
Intangible Assets | |||
Intangible assets represent the fair values management assigned to assets acquired through business acquisitions and is amortized over periods of three to 15 years based on management’s estimates of the useful life of the asset. | |||
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, the Company conducts an annual goodwill impairment test as of October 1 each year. The Company assesses 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 public float for the Company’s 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 2014 or 2013. | |||
Advertising, Marketing and Development Costs | |||
Franchise | |||
The costs of advertising, marketing and development are expenses as incurred. Certain amounts received from franchisees for advertising, marketing and development campaigns benefiting the franchisees are held in a fund. AGI controls the manner in which these funds are spent. In addition to advertising, marketing and development expenses, fund expenses include general operating expenses such as reasonable salaries, travel related expenditures, administrative expenses, and overhead incurred by AGI on behalf of the fund. Amounts in the fund and the related revenues and exprensses are not reflected in the accompanying consolidated financial statements. AGI may spend in any fiscal year an amount greater or less than the aggregate contributions made by the franchisees to the fund. As of December 31, 2014, AGI had accounts payable of approximately $275,000 to the fund, and these are included in accounts payable in the accompanying consolidated balance sheet. | |||
Consumer Finance | |||
The costs of advertising and marketing are expenses as incurred. | |||
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 Per Common Share | |||
Basic net income per common share is computed by dividing the income available to common shareholders by the weighted average number of common shares outstanding for the year. Diluted net income per common share is computed by dividing the net income available to common shareholders’ by the sum of the weighted average number of common shares outstanding plus potentially dilutive common share equivalents when dilutive. There were no dilutive common share as of December 31, 2014 and 2013. | |||
Fair Value of Financial Instruments | |||
The amounts reported in the balance sheets for cash, accounts and 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. | |||
Reclassifications | |||
Certain Statement of Income reclassifications have been made in the presentation of our prior financial statements and accompanying notes to conform to the presentation as of and for the year ended December 31, 2014. | |||
Recent Accounting Pronouncements | |||
In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under US GAAP and IFRS. This converged standard is effective for annual and interim periods beginning after December 15, 2016. The Company is currently assessing the potential effects on our financial condition and results of operations and consolidated financial statements. | |||
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, 2014 | |||||||
Risks and Uncertainties [Abstract] | |||||||
Concentration Risk Disclosure [Text Block] | 2. Risks Inherent in the Operating Environment – | ||||||
Regulatory | |||||||
The Company’s Consumer Finance segment activities are highly regulated under numerous local, state, and federal laws, regulations and rules, which are subject to change. New laws, regulations or rules could be enacted or issued, interpretations of existing laws, regulations or rules may change and enforcement action by regulatory agencies may intensify. Over the past several years, consumer advocacy groups and certain media reports have advocated governmental and regulatory action to prohibit or severely restrict sub-prime lending activities of the kind conducted by the Company. The federal Consumer Financial Protection Bureau has indicated that it will use its authority to further regulate the payday industry. | |||||||
Any adverse change in present local, state, and federal laws or regulations that govern or otherwise affect lending could result in the Company’s curtailment or cessation of operations in certain or all jurisdictions or locations. Furthermore, any failure to comply with any applicable local, state or 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 the Company’s results of operations and financial condition, primarily through a decrease in revenues resulting from the cessation or curtailment of operations, decrease in operating income through increased legal expenditures or fines, and could also negatively affect the Company’s general business prospects if the Company is unable to effectively replace such revenues in a timely and efficient manner or if negative publicity effects its ability to obtain additional financing as needed. | |||||||
In addition, the passage of federal or state laws and regulations or changes in interpretations of them 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. | |||||||
Concentrations | |||||||
The Company’s subsidiaries each have demand deposits at financial institutions, often times in excess of the limit for insurance by the Federal Deposit Insurance Corporation. As of December 31, 2014, the Company had demand deposits in excess of insurance amounts of approximately $2,250,000. | |||||||
Loans receivable are concentrated in the sub-prime market and geographically, primarily in the Midwest. For the years ended December 31, 2014 and 2013, the Consumer Finance segment also had economic and regulatory risk concentrations (shown as a percentage of applicable segment’s revenue by state when 10% or more) as follows: | |||||||
Consumer Finance Segment | |||||||
2014 % of | 2013 % of | ||||||
Revenues | Revenues | ||||||
Nebraska | 30 | % | 28 | % | |||
North Dakota | 18 | % | 19 | % | |||
Wyoming | 14 | % | 14 | % | |||
Iowa | 14 | % | 12 | % | |||
The Company’s Wireless Retail segment is an exclusive dealer for Cricket. As a dealer operating exclusively for a single carrier, the Company is subject to a number of concentrations, including revenues from a single brand, a single supplier for phones, select operating system providers and third party processors. For the years ended December 31, 2014 and 2013, the Cellular Retail segment also had economic concentrations (shown as a percentage of applicable segment’s revenue by state when 10% or more) as follows: | |||||||
Cellular Retail Segment | |||||||
2014 % of | 2013 % of | ||||||
Revenues | Revenues | ||||||
Nebraska | 28 | % | 26 | % | |||
Colorado | 19 | % | 11 | % | |||
Texas | * | 12 | % | ||||
* Denotes less than 10% | |||||||
Loans_Receivable
Loans Receivable | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Receivables [Abstract] | ||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. Loans Receivable – | |||||||||||||
At December 31, 2014 and December 31, 2013, the Company’s outstanding loans receivable aging was as follows: | ||||||||||||||
December 31, 2014 | ||||||||||||||
Payday | Installment | Pawn & | Total | |||||||||||
Title | ||||||||||||||
Current | $ | 4,387,393 | $ | 321,634 | $ | 372,805 | $ | 5,081,832 | ||||||
30-Jan | 305,382 | 47,321 | - | 352,703 | ||||||||||
31-60 | 223,465 | 24,791 | - | 248,256 | ||||||||||
61-90 | 236,072 | 11,799 | - | 247,871 | ||||||||||
91-120 | 206,705 | 5,438 | - | 212,143 | ||||||||||
121-150 | 200,101 | 1,984 | - | 202,085 | ||||||||||
151-180 | 204,804 | 572 | - | 205,376 | ||||||||||
5,763,922 | 413,539 | 372,805 | 6,550,266 | |||||||||||
Less Allowance | -1,147,000 | -72,000 | - | -1,219,000 | ||||||||||
$ | 4,616,922 | $ | 341,539 | $ | 372,805 | $ | 5,331,266 | |||||||
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 | |||||||||||
Less Allowance | -1,120,000 | -95,000 | - | -1,215,000 | ||||||||||
$ | 4,715,997 | $ | 433,417 | $ | 288,788 | 5,438,202 | ||||||||
Loans_Receivable_Allowance
Loans Receivable Allowance | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Provision for Loan and Lease Losses [Abstract] | ||||||||
Allowance for Credit Losses [Text Block] | 4. Loans Receivable Allowance – | |||||||
As a result of the Company’s Consumer Finance segment’s collection efforts, it historically writes off approximately 42% of the returned payday items, the most significant element making up accounts and loans receivable. 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 – 65%; 61 to 90 days – 83%; 91 to 120 days – 88%; and 121 to 180 days – 91%. | ||||||||
A rollforward of the Company’s loans receivable allowance for the years ended December 31, 2014 and 2013 is as follows: | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Loans receivable allowance, beginning of period | $ | 1,215,000 | $ | 1,191,000 | ||||
Provision for loan losses charged to expense | 1,817,822 | 1,859,461 | ||||||
Charge-offs, net | -1,813,822 | -1,835,461 | ||||||
Loans receivable allowance, end of period | $ | 1,219,000 | $ | 1,215,000 | ||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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, | ||||||||
2014 | 2013 | |||||||
Furniture and equipment | $ | 2,853,608 | $ | 1,571,152 | ||||
Leasehold improvements | 786,782 | 701,764 | ||||||
Software | 539,513 | 17,322 | ||||||
Other | 157,577 | 157,171 | ||||||
4,337,480 | 2,447,409 | |||||||
Accumulated depreciation | -3,139,770 | -1,519,335 | ||||||
$ | 1,197,710 | $ | 928,074 | |||||
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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, | ||||||||
2014 | 2013 | |||||||
Amortizable Intangible Assets: | ||||||||
Customer relationships | $ | 4,924,912 | $ | 4,627,412 | ||||
Acquired franchisee agreements | 5,227,112 | - | ||||||
Amortizable Intangible Assets, net | 10,152,024 | 4,627,412 | ||||||
Less accumulated amortization | -5,685,523 | -4,510,316 | ||||||
Net Amortizable Intangible Assets | 4,466,501 | 117,096 | ||||||
Non-amortizable Trademarks | 2,782,292 | - | ||||||
Intangible Assets, net | $ | 7,248,793 | $ | 117,096 | ||||
As of December 31, 2014, estimated future amortization expense for the amortizable intangible assets is as follows: | ||||||||
2015 | $ | 385,847 | ||||||
2016 | 377,174 | |||||||
2017 | 377,174 | |||||||
2018 | 377,174 | |||||||
2019 | 377,174 | |||||||
Thereafter | 2,571,958 | |||||||
$ | 4,466,501 | |||||||
Deferred_Revenue_and_Other_Lia
Deferred Revenue and Other Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Revenue Disclosure [Abstract] | ||||||||
Deferred Revenue Disclosure [Text Block] | 7. Deferred Revenue and Other Liabilities – | |||||||
Deferred revenue and other liabilities consisted of the following: | ||||||||
For the Year Ended December 31, | ||||||||
2014 | 2013 | |||||||
Deferred financing fees | $ | 284,231 | $ | 296,503 | ||||
Deferred franchise fees | 281,837 | - | ||||||
Other | 72,000 | - | ||||||
Total | $ | 638,068 | $ | 296,503 | ||||
Leases
Leases | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Leases [Abstract] | ||||||||
Leases [Text Block] | 8. Leases – | |||||||
The Company had capital lease obligations related to its telephone system and computer equipment of $73,721 as of December 31, 2014, of which $42,240 was current. Amortization expense for assets held under capital leases is included in depreciation and amortization. | ||||||||
The Company leases retail and office facilities under operating leases with terms ranging from month to month to six years, with rights to extend for additional periods. Rent expense, inclusive of base rents and common area maintenance obligations, insurance and real estate tax reimbursements, on all operations was approximately $3,003,000 and $2,663,000 in 2014 and 2013, respectively. Future minimum lease payments are approximately as follows: | ||||||||
Year Ending December 31, | Operating Leases | Capital Leases | ||||||
2015 | $ | 2,471,000 | $ | 47,554 | ||||
2016 | 1,761,000 | 25,270 | ||||||
2017 | 1,222,000 | 7,964 | ||||||
2018 | 391,000 | - | ||||||
2019 | 159,000 | - | ||||||
thereafter | 57,000 | - | ||||||
Total minimum lease payments | $ | 6,061,000 | 80,788 | |||||
Less: imputed interest | -7,067 | |||||||
Present value of minimum lease payments | 73,721 | |||||||
Less: current portion of capital lease obligations | -42,240 | |||||||
Capital lease obligations, net of current portion | $ | 31,481 | ||||||
Notes_Payable_Long_Term
Notes Payable - Long Term | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-term Debt [Text Block] | 9. Notes Payable – Long Term – | |||||||
The Company’s long-term debt is as follows: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Note payable (with a credit limit of $3,000,000) to River City Equity, Inc., a related party (see Note 19), with interest payable monthly at 12% due June 30, 2015 and upon certain events can be collateralized by substantially all assets of WCR, excluding any equity interest in AGI | $ | 2,000,000 | $ | 2,750,000 | ||||
Subsidiary note payable to a financial institution with quarterly principal payments of $375,000 plus interest at prime rate plus 2.5% (5.75% as of December 31, 2014), secured by the AGI’s assets, maturing June 2017 | 3,125,000 | - | ||||||
Total | 5,125,000 | 2,750,000 | ||||||
Less current maturities | -3,500,000 | -2,750,000 | ||||||
$ | 1,625,000 | $ | - | |||||
Future minimum long-term principal payments are as follows: | ||||||||
Year Ending December 31, | Amount | |||||||
2015 | $ | 3,500,000 | ||||||
2016 | 1,500,000 | |||||||
2017 | 125,000 | |||||||
$ | 5,125,000 | |||||||
The Company’s term note payable with a financial institution includes certain financial covenants. Management has determined that the Company was in compliance with these financial covenants as of December 31, 2014. | ||||||||
As part of the lending agreement, AGI may draw on a $1,000,000 line of credit (LOC). The LOC bears interest at the greater of (a) the prime rate plus 2.50% or (b) the LIBOR rate plus 5.50%. The LOC matures on August 30, 2017. AGI drew on the LOC but there is no amount outstanding as of December 31, 2014. | ||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||
Income Tax Disclosure [Text Block] | 10. Income Taxes – | |||||||||||||
The Company’s provision for income taxes is as follows: | ||||||||||||||
For the Year Ended December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Current: | ||||||||||||||
Federal | $ | 1,007,860 | $ | 600,000 | ||||||||||
State | 181,000 | 114,000 | ||||||||||||
Foreign | 8,000 | - | ||||||||||||
1,196,860 | 714,000 | |||||||||||||
Deferred: | ||||||||||||||
Federal | 293,000 | 228,000 | ||||||||||||
State | 56,000 | 43,000 | ||||||||||||
349,000 | 271,000 | |||||||||||||
$ | 1,545,860 | $ | 985,000 | |||||||||||
Deferred income tax assets (liabilities) are summarized as follows: | ||||||||||||||
For the Year Ended December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Current | Non-Current | Current | Non-Current | |||||||||||
Deferred income tax assets: | ||||||||||||||
Allowance for accounts and loans receivable | $ | 521,000 | $ | - | $ | 461,000 | $ | - | ||||||
Accrued expenses | 123,000 | - | 37,000 | - | ||||||||||
644,000 | - | 498,000 | - | |||||||||||
Deferred income tax liabilities: | ||||||||||||||
Property and equipment | - | -306,000 | - | -206,000 | ||||||||||
Goodwill and intangible assets | - | -3,867,000 | - | -950,000 | ||||||||||
Net operating losses (expires 2031) | - | 208,000 | - | - | ||||||||||
Capital loss carryforward (expires 2016) | - | 21,000 | - | - | ||||||||||
Foreign tax credits | - | 40,000 | - | - | ||||||||||
Valuation allowance | - | -35,000 | - | - | ||||||||||
- | -3,939,000 | - | -1,156,000 | |||||||||||
Net | $ | 644,000 | $ | -3,939,000 | $ | 498,000 | $ | -1,156,000 | ||||||
Reconciliations from the statutory federal income tax rate to the effective income tax rate are as follows: | ||||||||||||||
For the Year Ended December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Income tax expense using the statutory federal rate | $ | 1,345,000 | $ | 885,000 | ||||||||||
State income taxes, net of federal benefit | 152,000 | 103,000 | ||||||||||||
Other | 49,000 | -3,000 | ||||||||||||
Income tax expense | $ | 1,546,000 | $ | 985,000 | ||||||||||
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, 2014 and 2013, 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, 2014, 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. Currently the Company has a federal and state of Missouri audit in progress. Management believes the Company is no longer subject to income tax examinations for years prior to 2011. | ||||||||||||||
Equity
Equity | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | 11. Equity – |
Capitalization | |
On May 30, 2014, the Company’s Board of Directors approved a 1-for-20 reverse stock split. The reverse stock split became effective on June 20, 2014. The accompanying financial statements and notes have been adjusted retroactively to reflect the reverse stock split. As a result of the reverse stock split, the Company’s adjusted authorized capital stock consists of 12,500,000 shares of no par value capital stock. All shares have equal voting rights and are entitled to one vote per share. | |
Common Stock Repurchases | |
In February 2013, the Company repurchased 8,881 shares of its common stock at $2 per share for a total repurchase cost of $17,762. | |
Common Stock Issued | |
As further explained in Note 13, after the close of business on September 30, 2014 WCR issued 2,986,823 shares of common stock for the acquisition of AlphaGraphics. This represented approximately 49.8% of the total issued and outstanding common stock of the Company after the issuance, which totaled 5,997,588 shares. | |
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 100,000 shares of common stock have been reserved for issuance. No options under this plan have been granted as of December 31, 2014. | |
Noncontrolling Interests | |
The Company owns 99.2% of the AlphaGraphics subsidiary. | |
Other_Expenses
Other Expenses | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Expense [Abstract] | ||||||||
Other Expense [Text Block] | 12. Other Expenses – | |||||||
A breakout of other expense is as follows: | ||||||||
For the Year Ended December 31, | ||||||||
2014 | 2013 | |||||||
Bank fees | $ | 473,632 | $ | 412,527 | ||||
Collection costs | 449,301 | 466,597 | ||||||
Insurance | 305,935 | 206,040 | ||||||
Management and consulting fees | 536,369 | 463,157 | ||||||
Professional fees | 1,048,599 | 519,939 | ||||||
Supplies | 637,730 | 539,216 | ||||||
Other | 1,096,389 | 732,945 | ||||||
$ | 4,547,955 | $ | 3,340,421 | |||||
Acquisition
Acquisition | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Business Combinations [Abstract] | ||||||||||||||
Business Combination Disclosure [Text Block] | 13. Acquisition – | |||||||||||||
AlphaGraphics Merger Transaction | ||||||||||||||
After the close of business on September 30, 2014, we acquired a 99.2% interest in the business of AlphaGraphics, Inc., a Delaware corporation, through a merger transaction governed by an Agreement and Plan of Merger dated August 29, 2014 (the “Merger Agreement”). As contemplated under the Merger Agreement, we issued an aggregate of 2,986,823 shares of our common stock, representing approximately 49.8% of our total issued and outstanding common stock immediately after the merger, to BC Alpha Holdings I, LLC, a Delaware limited liability company that had earlier owned the AlphaGraphics business. | ||||||||||||||
The entities are affiliated entities under common control and in accordance with Accounting Standards Codification Topic 805, “Business Combinations,” and Western Capital, as the acquirer, recognized the assets and liabilities of the AlphaGraphics entities at their historical values as of the date of merger as follows: | ||||||||||||||
October 1, 2014 | ||||||||||||||
Cash | $ | 168,000 | ||||||||||||
Receivables | 1,227,000 | |||||||||||||
Property and equipment | 374,000 | |||||||||||||
Intangible assets | 7,016,000 | |||||||||||||
Note receivable | 636,000 | |||||||||||||
Other assets | 453,000 | |||||||||||||
Accounts payable and accrued liabilities | -2,493,000 | |||||||||||||
Other liabilities | -506,000 | |||||||||||||
Note and lease obligations | -4,084,000 | |||||||||||||
Deferred tax liability | -2,434,000 | |||||||||||||
357,000 | ||||||||||||||
Noncontrolling interests | -7,000 | |||||||||||||
$ | 350,000 | |||||||||||||
The results of the operations for the acquired business have been included in the consolidated financial statements since the date of the acquisition. The following table presents the unaudited pro forma results of operations for the year ended December 31, 2014 and 2013, as if the acquisitions had been consummated at the beginning of 2013. The pro forma net income below excludes the expense of the transaction. 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 2013 or the results which may occur in the future. | ||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||
Cellular | Consumer | |||||||||||||
Franchise | Retail | Finance | Total | |||||||||||
Pro forma revenue | $ | 12,215,000 | $ | 24,706,000 | $ | 12,877,000 | $ | 49,798,000 | ||||||
Pro forma net income | $ | 1,554,000 | $ | 719,000 | $ | 1,220,000 | $ | 3,493,000 | ||||||
Pro forma net income attributable to noncontrolling interests | $ | -13,000 | $ | - | $ | - | $ | -13,000 | ||||||
Pro forma net income available to Western shareholders | $ | 1,541,000 | $ | 719,000 | $ | 1,220,000 | $ | 3,480,000 | ||||||
Pro forma earnings per share available to Western common shareholders – basic and diluted | $ | 0.26 | $ | 0.12 | $ | 0.2 | $ | 0.58 | ||||||
For the Year Ended December 31, 2013 | ||||||||||||||
Franchise | Cellular | Consumer | Total | |||||||||||
Retail | Finance | |||||||||||||
Pro forma revenue | $ | 11,975,000 | $ | 20,227,000 | $ | 12,662,000 | $ | 44,864,000 | ||||||
Pro forma net income | $ | 1,428,000 | $ | 238,000 | $ | 1,541,000 | $ | 3,207,000 | ||||||
Pro forma net income attributable to noncontrolling interests | $ | -12,000 | $ | - | $ | - | $ | -12,000 | ||||||
Pro forma net income available to Western shareholders | $ | 1,416,000 | $ | 238,000 | $ | 1,541,000 | $ | 3,195,000 | ||||||
Pro forma earnings per share available to Western common shareholders – basic and diluted | $ | 0.23 | $ | 0.04 | $ | 0.26 | $ | 0.53 | ||||||
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Segment Reporting Disclosure [Text Block] | 14. Segment Information – | |||||||||||||
The Company has grouped its operations into three segments in 2014 and two segments in 2013 – Consumer Finance, Cellular Retail, and Franchise (October 1, 2014 through December 31, 2014). 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. The Franchise segment offers franchise ownership opportunities for customized marketing solutions. | ||||||||||||||
Segment information related to the years ended December 31, 2014 and 2013: | ||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||
Consumer | Cellular | Franchise | Total | |||||||||||
Finance | Retail | |||||||||||||
Revenues | $ | 12,876,559 | $ | 24,705,890 | $ | 3,177,104 | $ | 40,759,553 | ||||||
Depreciation and amortization | $ | 117,766 | $ | 326,768 | $ | 111,962 | $ | 556,496 | ||||||
Interest expense | $ | 61,823 | $ | 190,493 | $ | 63,252 | $ | 315,568 | ||||||
Income tax expense (benefit) | $ | 720,000 | $ | 385,000 | $ | 440,860 | $ | 1,545,860 | ||||||
Net income (loss) | $ | 1,136,875 | $ | 584,352 | $ | 690,205 | $ | 2,411,432 | ||||||
Total segment assets | $ | 16,931,785 | $ | 9,776,975 | $ | 10,053,504 | $ | 36,762,264 | ||||||
Expenditures for segmented assets | $ | 119,477 | $ | 518,766 | $ | 15,718 | $ | 653,961 | ||||||
For the Year Ended December 31, 2013 | ||||||||||||||
Consumer | Cellular | Franchise | Total | |||||||||||
Finance | Retail | |||||||||||||
Revenues | $ | 12,661,823 | $ | 20,227,373 | $ | - | $ | 32,889,196 | ||||||
Depreciation and amortization | $ | 134,178 | $ | 386,552 | $ | - | $ | 520,730 | ||||||
Interest expense | $ | 72,547 | $ | 259,700 | $ | - | $ | 332,247 | ||||||
Income tax expense (benefit) | $ | 865,000 | $ | 120,000 | $ | - | $ | 985,000 | ||||||
Net income (loss) | $ | 1,426,715 | $ | 192,829 | $ | - | $ | 1,619,544 | ||||||
Total segment assets | $ | 16,131,079 | $ | 8,308,006 | $ | - | $ | 24,439,085 | ||||||
Expenditures for segmented assets | $ | 140,996 | $ | 456,644 | $ | - | $ | 597,640 | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 15. Commitments and Contingencies – |
Employment Agreements | |
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. 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 which had expired. Specifically, the amended and restated agreement provides an annual base salary and eligibility for an annual performance-based cash bonus pool for management. 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. Pursuant to the management bonus plan, management bonuses of approximately $352,000 and $329,000 were approved by the board of directors for 2014 and 2013, respectively. | |
The Company has also entered into several employment agreements with certain members of subsidiary management. The terms of each agreement are different. However, one or all of these agreements include stipulated base salary and bonus potential. The agreement also contains customary non-solicitation and non-competition provisions as well as provisions for severance payments upon termination by the Company without cause. | |
Asset Purchase Agreement | |
On November 18, 2014, the Company entered into an asset purchase agreement to acquire several additional Cricket retail stores for a cost of approximately $500,000. The acquisition of the Cricket locations and payment of the purchase price, net of a $50,000 deposit paid in 2014, is expected to be completed January 2, 2015. | |
Legal Proceedings | |
The Company is party to a variety of legal actions arising out of the normal course of business. Plaintiffs occasionally seek punitive or exemplary damages. The Company does not believe that such normal and routine litigation will have a material impact on its consolidated financial results. | |
At the time of the Company’s acquisition of AlphaGraphics, that subsidiary was party to litigation with an individual (plaintiff) who was the former CEO, member of its Board of Directors and franchisee owning two AlphaGraphics franchises. In November 2014, AlphaGraphics and the plaintiff entered into a settlement agreement pursuant to which the parties fully released each other and AlphaGraphics was paid a sum of $636,000 in settlement of certain other obligations that had been owed to it by the plaintiff. | |
Retirement_Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2014 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | 16. Retirement Plan – |
Our AGI subsidiary has a 401(k) salary deferral plan covering substantially all of the subsidiary employees who have completed one month of service and are 18 years of age or older. The Company matches employee contributions at the discretion of the subsidiary Board of Directors. There were no matching contributions from the date of the Company’s acquisition of the subsidiary on October 1, 2014 through December 31, 2014. | |
Management_and_Advisory_Agreem
Management and Advisory Agreement | 12 Months Ended |
Dec. 31, 2014 | |
Management And Advisory Agreements [Abstract] | |
Management And Advisory Agreement [Text Block] | 17. Management and Advisory Agreement – |
Effective June 21, 2012 (and amended effective October 1, 2014) 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 other entities to which two directors provide 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” as defined under the agreement. | |
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. Any fees which may have been payable per these terms related to the AlphaGraphics acquisition were waived 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 Amended and Restated Management and Advisory Agreement with Blackstreet for the years ended December 31, 2014 and 2013 were $416,369 and $343,157, respectively. | |
Special_Committee_of_the_Board
Special Committee of the Board of Directors | 12 Months Ended |
Dec. 31, 2014 | |
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. Annual Director and special committee fees expense was $50,000 for the years ended December 31, 2014 and 2013. | |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 19. 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 five 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 is used for a 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, three current or past directors and one employee 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. | |
Annual rent expense to related parties for the five retail locations for 2014 and 2013 was approximately $166,500. | |
Credit Facility | |
On December 7, 2012 (and later amended on March 21, 2014 and September 30, 2014), the Company entered in a borrowing arrangement with River City Equity, Inc. Under this arrangement as amended, the Company may borrow up to $3,000,000 at an interest rate of 12% per annum, with interest payable on a monthly basis. The note contains no prepayment penalties and matures June 30, 2015, on which date all unpaid principal and accrued but unpaid interest thereon is due and payable. The note, under certain circumstances, permits River City Equity to obtain a security interest in substantially all of the Company’s assets, excluding any equity interest in AlphaGraphics. As of December 31, 2014, $2,000,000 was due under this arrangement. Interest expense for 2014 and 2013 on the related party note payable was approximately $252,000 and $330,000, respectively. | |
Subsequent_Events
Subsequent Events | 12 Months Ended | ||
Dec. 31, 2014 | |||
Subsequent Events [Abstract] | |||
Subsequent Events [Text Block] | 20. Subsequent Events – | ||
On January 2, 2015, a subsidiary closed on a seven location Cricket retail store asset purchase agreement (see note 15). | |||
2015 Stock Incentive Plan | |||
The Board of Directors adopted the Company’s new 2015 Stock Incentive Plan effective February 6, 2015. The plan replaces the Company’s earlier adopted 2008 Stock Incentive Plan, which the board terminated effective February 6, 2015. There were no incentives issued or outstanding under the terminated plan. | |||
The Board of Directors, or a committee of the board, will administer the 2015 Stock Incentive Plan and will have complete authority to award incentives, to interpret the plan and to make any other determination which it believes necessary and advisable for the proper administration of the plan. A total of 100,000 shares of common stock were reserved in connection with the adoption of the 2015 Stock Incentive Plan. | |||
The new plan permits the granting of incentives in any one or a combination of the following forms: | |||
Ÿ | stock options, including options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended, as “qualified” or “incentive” stock options; | ||
Ÿ | stock appreciation rights (often referred to as “SARs”) payable in shares of common stock; | ||
Ÿ | restricted stock and restricted stock units; | ||
Ÿ | performance awards of cash, stock or property; and | ||
Ÿ | stock awards. | ||
Employment Agreement with Angel Donchev | |||
Effective February 9, 2015, the Company entered into a three-year employment agreement with Mr. Angel Donchev. Under the agreement, Mr. Donchev will serve as the Company’s “Chief Investment Officer” charged with managing the Company’s acquisition strategy and acquisition efforts. In that role, Mr. Donchev will earn a base salary of $235,000, and be eligible for a discretionary annual performance-based cash bonus targeted at $200,000. The employment agreement also contains other customary terms and conditions respecting company property, confidential information, early termination for cause, and early termination without cause, by either party, upon at least 30 days prior written notice. | |||
The Company retained Mr. Donchev, who has significant experience in evaluating, negotiating and managing acquisition transactions, as part of its strategy to grow profitability through the acquisition of established companies, as well as diversify the industries and geographies in which its subsidiary holdings operate. | |||
In connection with the employment agreement, the Company granted Mr. Donchev a stock option providing him with the ten-year right to purchase up to 65,000 shares of the Company’s common stock at an exercise price of $6.00 per share. The option vests in three annual and near-equal installments on each of February 8, 2016, 2017 and 2018. The stock option grant is evidenced by a stock option agreement entered into effective February 9, 2015. The option granted to Mr. Donchev was issued under the Company’s new 2015 Stock Incentive Plan approved by the Board of Directors effective February 6, 2015. | |||
Basis_of_Presentation_Nature_o1
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation / Nature of Business | ||
References in these financial statements notes to “Company” or “we” refer to Western Capital Resources, Inc. and its subsidiaries. References to specific companies within our enterprise, such “PQH” or “AGI,” are references only to those companies. Western Capital Resources, Inc. (WCR) is a holding company owning operating subsidiaries, with percentage owned shown parenthetically, as summarized below. | |||
· | Franchise | ||
o | AlphaGraphics, Inc. (AGI) (99.2% – Acquired October 1, 2014) – franchisor of 242 domestic and 32 international AlphaGraphics Business Centers which specialize in the planning, production, and management of visual communications for businesses and individuals throughout the world. | ||
· | Cellular Retail | ||
o | PQH Wireless, Inc. (PQH) (100%) – owns and operates cellular retail stores (61 as of December 31, 2014), as an exclusive dealer of the Cricket brand, in 15 states-Arizona, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska, Ohio, Oklahoma, Oregon, Texas, Washington, and Wisconsin. | ||
· | Consumer Finance | ||
o | Wyoming Financial Lenders, Inc. (WFL) (100%) – owns and operates “payday” stores (50 as of December 31, 2014) in nine states (Colorado, Iowa, Kansas, Nebraska, North Dakota, South Dakota, Utah, Wisconsin and Wyoming) providing sub-prime short-term uncollateralized non-recourse “cash advance” or “payday” loans typically ranging from $100 to $500 with a maturity of generally two to four weeks, sub-prime short-term uncollateralized non-recourse installment loans typically ranging from $300 to $800 with a maturity of six months, check cashing and other money services to individuals. | ||
o | Express Pawn, Inc. (EPI) (100%) – owns and operates retail pawn stores (three as of December 31, 2014) in Nebraska and Iowa providing collateralized non-recourse pawn loans and retail sales of merchandise obtained from forfeited pawn loans or purchased from customers. | ||
Consolidation, Policy [Policy Text Block] | Basis of Consolidation | ||
The consolidated financial statements include the accounts of the WCR, its wholly owned subsidiaries and other entities in which the Company owns a controlling financial interest. For financial interests in which the Company owns a controlling financial interest, the Company applies the provisions of SFAS 160 which are applicable to reporting the equity and net income or loss attributable to noncontrolling interests. All significant intercompany balances and transactions of the Company have been eliminated in consolidation. | |||
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 notes and loans receivable allowance, carrying value and impairment of long-lived goodwill and intangible assets, inventory valuation and obsolescence, estimated useful lives of property and equipment, and deferred taxes and tax uncertainties. | |||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | ||
Franchise | |||
Royalty revenues from franchisees are primarily based on a percentage of business center sales and are recognized in the period in which they are earned. Initial franchise fee revenues are recognized when the obligations required by the franchise agreement have been substantially performed by AGI, which is generally upon the training of the franchisee. Revenues from area development franchise fees and International Master License Agreement (IML) fees are recognized when the obligations required by the area development and IML agreements have been substantially performed. | |||
Supply sales, service fees and other revenues are recognized when products have been shipped or services provided. | |||
Cellular Retail | |||
Sales revenue for sales of phones and accessories and dealer compensation for related activations is recognized in the period in which the sale is completed (retail sales and associated fees). Service fees are recognized upon completion of the service and payment received. Other dealer compensation not attributed to phone activations is recorded in the period earned as reported to us by Cricket Wireless. All sales are presented net of sales taxes, which are excluded from revenue. | |||
Consumer Finance | |||
Loan fees and interest on cash advance loans are recognized on a constant-yield basis ratably over a loan’s term. 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 pawn loans on a constant-yield basis ratably over the loans’ terms. No fees are recognized on forfeited pawn loans. | |||
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Receivables and Loss Allowance | ||
Franchise | |||
Accounts receivable are recorded for earned but uncollected royalties and other related franchise fees. Allowances are provided on an account-by-account basis for estimated uncollectible accounts as deemed necessary by management. The Company considers current economic trends and changes in payment terms when evaluating the adequacy of the allowance. | |||
Consumer Finance | |||
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. All returned items are charged-off after 180 days, as collections after that date have not been significant. Loans are carried at cost plus accrued interest or fees less payments made and a loans receivable allowance. | |||
Inventory, Policy [Policy Text Block] | Inventory | ||
Cellular Retail | |||
Inventory, consisting of phones and accessories, is stated at cost, determined on the specific identification and a first-in, first-out basis, respectively. | |||
Consumer Finance | |||
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. | |||
Included in property and equipment is the cost of software developed or acquired for internal use. These costs are amortized over the estimated useful life of the software. | |||
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 | ||
Intangible assets represent the fair values management assigned to assets acquired through business acquisitions and is amortized over periods of three to 15 years based on management’s estimates of the useful life of the asset. | |||
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, the Company conducts an annual goodwill impairment test as of October 1 each year. The Company assesses 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 public float for the Company’s 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 2014 or 2013. | |||
Advertising Costs, Policy [Policy Text Block] | Advertising, Marketing and Development Costs | ||
Franchise | |||
The costs of advertising, marketing and development are expenses as incurred. Certain amounts received from franchisees for advertising, marketing and development campaigns benefiting the franchisees are held in a fund. AGI controls the manner in which these funds are spent. In addition to advertising, marketing and development expenses, fund expenses include general operating expenses such as reasonable salaries, travel related expenditures, administrative expenses, and overhead incurred by AGI on behalf of the fund. Amounts in the fund and the related revenues and exprensses are not reflected in the accompanying consolidated financial statements. AGI may spend in any fiscal year an amount greater or less than the aggregate contributions made by the franchisees to the fund. As of December 31, 2014, AGI had accounts payable of approximately $275,000 to the fund, and these are included in accounts payable in the accompanying consolidated balance sheet. | |||
Consumer Finance | |||
The costs of advertising and marketing are expenses as incurred. | |||
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 Per Common Share | ||
Basic net income per common share is computed by dividing the income available to common shareholders by the weighted average number of common shares outstanding for the year. Diluted net income per common share is computed by dividing the net income available to common shareholders’ by the sum of the weighted average number of common shares outstanding plus potentially dilutive common share equivalents when dilutive. There were no dilutive common share as of December 31, 2014 and 2013. | |||
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments | ||
The amounts reported in the balance sheets for cash, accounts and 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. | |||
Reclassification, Policy [Policy Text Block] | Reclassifications | ||
Certain Statement of Income reclassifications have been made in the presentation of our prior financial statements and accompanying notes to conform to the presentation as of and for the year ended December 31, 2014. | |||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements | ||
In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under US GAAP and IFRS. This converged standard is effective for annual and interim periods beginning after December 15, 2016. The Company is currently assessing the potential effects on our financial condition and results of operations and consolidated financial statements. | |||
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, 2014 | |||||||
Risks and Uncertainties [Abstract] | |||||||
Disclosure of Significant Revenue, Percentages by State by Division [Table Text Block] | Loans receivable are concentrated in the sub-prime market and geographically, primarily in the Midwest. For the years ended December 31, 2014 and 2013, the Consumer Finance segment also had economic and regulatory risk concentrations (shown as a percentage of applicable segment’s revenue by state when 10% or more) as follows: | ||||||
Consumer Finance Segment | |||||||
2014 % of | 2013 % of | ||||||
Revenues | Revenues | ||||||
Nebraska | 30 | % | 28 | % | |||
North Dakota | 18 | % | 19 | % | |||
Wyoming | 14 | % | 14 | % | |||
Iowa | 14 | % | 12 | % | |||
The Company’s Wireless Retail segment is an exclusive dealer for Cricket. As a dealer operating exclusively for a single carrier, the Company is subject to a number of concentrations, including revenues from a single brand, a single supplier for phones, select operating system providers and third party processors. For the years ended December 31, 2014 and 2013, the Cellular Retail segment also had economic concentrations (shown as a percentage of applicable segment’s revenue by state when 10% or more) as follows: | |||||||
Cellular Retail Segment | |||||||
2014 % of | 2013 % of | ||||||
Revenues | Revenues | ||||||
Nebraska | 28 | % | 26 | % | |||
Colorado | 19 | % | 11 | % | |||
Texas | * | 12 | % | ||||
* Denotes less than 10% | |||||||
Loans_Receivable_Tables
Loans Receivable (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Receivables [Abstract] | ||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | At December 31, 2014 and December 31, 2013, the Company’s outstanding loans receivable aging was as follows: | |||||||||||||
December 31, 2014 | ||||||||||||||
Payday | Installment | Pawn & | Total | |||||||||||
Title | ||||||||||||||
Current | $ | 4,387,393 | $ | 321,634 | $ | 372,805 | $ | 5,081,832 | ||||||
30-Jan | 305,382 | 47,321 | - | 352,703 | ||||||||||
31-60 | 223,465 | 24,791 | - | 248,256 | ||||||||||
61-90 | 236,072 | 11,799 | - | 247,871 | ||||||||||
91-120 | 206,705 | 5,438 | - | 212,143 | ||||||||||
121-150 | 200,101 | 1,984 | - | 202,085 | ||||||||||
151-180 | 204,804 | 572 | - | 205,376 | ||||||||||
5,763,922 | 413,539 | 372,805 | 6,550,266 | |||||||||||
Less Allowance | -1,147,000 | -72,000 | - | -1,219,000 | ||||||||||
$ | 4,616,922 | $ | 341,539 | $ | 372,805 | $ | 5,331,266 | |||||||
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 | |||||||||||
Less Allowance | -1,120,000 | -95,000 | - | -1,215,000 | ||||||||||
$ | 4,715,997 | $ | 433,417 | $ | 288,788 | 5,438,202 | ||||||||
Loans_Receivable_Allowance_Tab
Loans Receivable Allowance (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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 years ended December 31, 2014 and 2013 is as follows: | |||||||
Year Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Loans receivable allowance, beginning of period | $ | 1,215,000 | $ | 1,191,000 | ||||
Provision for loan losses charged to expense | 1,817,822 | 1,859,461 | ||||||
Charge-offs, net | -1,813,822 | -1,835,461 | ||||||
Loans receivable allowance, end of period | $ | 1,219,000 | $ | 1,215,000 | ||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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, | ||||||||
2014 | 2013 | |||||||
Furniture and equipment | $ | 2,853,608 | $ | 1,571,152 | ||||
Leasehold improvements | 786,782 | 701,764 | ||||||
Software | 539,513 | 17,322 | ||||||
Other | 157,577 | 157,171 | ||||||
4,337,480 | 2,447,409 | |||||||
Accumulated depreciation | -3,139,770 | -1,519,335 | ||||||
$ | 1,197,710 | $ | 928,074 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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, | ||||||||
2014 | 2013 | |||||||
Amortizable Intangible Assets: | ||||||||
Customer relationships | $ | 4,924,912 | $ | 4,627,412 | ||||
Acquired franchisee agreements | 5,227,112 | - | ||||||
Amortizable Intangible Assets, net | 10,152,024 | 4,627,412 | ||||||
Less accumulated amortization | -5,685,523 | -4,510,316 | ||||||
Net Amortizable Intangible Assets | 4,466,501 | 117,096 | ||||||
Non-amortizable Trademarks | 2,782,292 | - | ||||||
Intangible Assets, net | $ | 7,248,793 | $ | 117,096 | ||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | As of December 31, 2014, estimated future amortization expense for the amortizable intangible assets is as follows: | |||||||
2015 | $ | 385,847 | ||||||
2016 | 377,174 | |||||||
2017 | 377,174 | |||||||
2018 | 377,174 | |||||||
2019 | 377,174 | |||||||
Thereafter | 2,571,958 | |||||||
$ | 4,466,501 | |||||||
Deferred_Revenue_and_Other_Lia1
Deferred Revenue and Other Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Revenue Disclosure [Abstract] | ||||||||
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | Deferred revenue and other liabilities consisted of the following: | |||||||
For the Year Ended December 31, | ||||||||
2014 | 2013 | |||||||
Deferred financing fees | $ | 284,231 | $ | 296,503 | ||||
Deferred franchise fees | 281,837 | - | ||||||
Other | 72,000 | - | ||||||
Total | $ | 638,068 | $ | 296,503 | ||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Table Text Block Supplement [Abstract] | ||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments are approximately as follows: | |||||||
Year Ending December 31, | Operating Leases | Capital Leases | ||||||
2015 | $ | 2,471,000 | $ | 47,554 | ||||
2016 | 1,761,000 | 25,270 | ||||||
2017 | 1,222,000 | 7,964 | ||||||
2018 | 391,000 | - | ||||||
2019 | 159,000 | - | ||||||
thereafter | 57,000 | - | ||||||
Total minimum lease payments | $ | 6,061,000 | 80,788 | |||||
Less: imputed interest | -7,067 | |||||||
Present value of minimum lease payments | 73,721 | |||||||
Less: current portion of capital lease obligations | -42,240 | |||||||
Capital lease obligations, net of current portion | $ | 31,481 | ||||||
Notes_Payable_Long_Term_Tables
Notes Payable - Long Term (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | The Company’s long-term debt is as follows: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Note payable (with a credit limit of $3,000,000) to River City Equity, Inc., a related party (see Note 19), with interest payable monthly at 12% due June 30, 2015 and upon certain events can be collateralized by substantially all assets of WCR, excluding any equity interest in AGI | $ | 2,000,000 | $ | 2,750,000 | ||||
Subsidiary note payable to a financial institution with quarterly principal payments of $375,000 plus interest at prime rate plus 2.5% (5.75% as of December 31, 2014), secured by the AGI’s assets, maturing June 2017 | 3,125,000 | - | ||||||
Total | 5,125,000 | 2,750,000 | ||||||
Less current maturities | -3,500,000 | -2,750,000 | ||||||
$ | 1,625,000 | $ | - | |||||
Schedule of Maturities of Long-term Debt [Table Text Block] | Future minimum long-term principal payments are as follows: | |||||||
Year Ending December 31, | Amount | |||||||
2015 | $ | 3,500,000 | ||||||
2016 | 1,500,000 | |||||||
2017 | 125,000 | |||||||
$ | 5,125,000 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
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, | ||||||||||||||
2014 | 2013 | |||||||||||||
Current: | ||||||||||||||
Federal | $ | 1,007,860 | $ | 600,000 | ||||||||||
State | 181,000 | 114,000 | ||||||||||||
Foreign | 8,000 | - | ||||||||||||
1,196,860 | 714,000 | |||||||||||||
Deferred: | ||||||||||||||
Federal | 293,000 | 228,000 | ||||||||||||
State | 56,000 | 43,000 | ||||||||||||
349,000 | 271,000 | |||||||||||||
$ | 1,545,860 | $ | 985,000 | |||||||||||
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, | ||||||||||||||
2014 | 2013 | |||||||||||||
Current | Non-Current | Current | Non-Current | |||||||||||
Deferred income tax assets: | ||||||||||||||
Allowance for accounts and loans receivable | $ | 521,000 | $ | - | $ | 461,000 | $ | - | ||||||
Accrued expenses | 123,000 | - | 37,000 | - | ||||||||||
644,000 | - | 498,000 | - | |||||||||||
Deferred income tax liabilities: | ||||||||||||||
Property and equipment | - | -306,000 | - | -206,000 | ||||||||||
Goodwill and intangible assets | - | -3,867,000 | - | -950,000 | ||||||||||
Net operating losses (expires 2031) | - | 208,000 | - | - | ||||||||||
Capital loss carryforward (expires 2016) | - | 21,000 | - | - | ||||||||||
Foreign tax credits | - | 40,000 | - | - | ||||||||||
Valuation allowance | - | -35,000 | - | - | ||||||||||
- | -3,939,000 | - | -1,156,000 | |||||||||||
Net | $ | 644,000 | $ | -3,939,000 | $ | 498,000 | $ | -1,156,000 | ||||||
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, | ||||||||||||||
2014 | 2013 | |||||||||||||
Income tax expense using the statutory federal rate | $ | 1,345,000 | $ | 885,000 | ||||||||||
State income taxes, net of federal benefit | 152,000 | 103,000 | ||||||||||||
Other | 49,000 | -3,000 | ||||||||||||
Income tax expense | $ | 1,546,000 | $ | 985,000 | ||||||||||
Other_Expenses_Tables
Other Expenses (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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, | ||||||||
2014 | 2013 | |||||||
Bank fees | $ | 473,632 | $ | 412,527 | ||||
Collection costs | 449,301 | 466,597 | ||||||
Insurance | 305,935 | 206,040 | ||||||
Management and consulting fees | 536,369 | 463,157 | ||||||
Professional fees | 1,048,599 | 519,939 | ||||||
Supplies | 637,730 | 539,216 | ||||||
Other | 1,096,389 | 732,945 | ||||||
$ | 4,547,955 | $ | 3,340,421 | |||||
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Business Combinations [Abstract] | ||||||||||||||
Schedule Of Purchase Price Allocations [Table Text Block] | The entities are affiliated entities under common control and in accordance with Accounting Standards Codification Topic 805, “Business Combinations,” and Western Capital, as the acquirer, recognized the assets and liabilities of the AlphaGraphics entities at their historical values as of the date of merger as follows: | |||||||||||||
October 1, 2014 | ||||||||||||||
Cash | $ | 168,000 | ||||||||||||
Receivables | 1,227,000 | |||||||||||||
Property and equipment | 374,000 | |||||||||||||
Intangible assets | 7,016,000 | |||||||||||||
Note receivable | 636,000 | |||||||||||||
Other assets | 453,000 | |||||||||||||
Accounts payable and accrued liabilities | -2,493,000 | |||||||||||||
Other liabilities | -506,000 | |||||||||||||
Note and lease obligations | -4,084,000 | |||||||||||||
Deferred tax liability | -2,434,000 | |||||||||||||
357,000 | ||||||||||||||
Noncontrolling interests | -7,000 | |||||||||||||
$ | 350,000 | |||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | 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 2013 or the results which may occur in the future. | |||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||
Cellular | Consumer | |||||||||||||
Franchise | Retail | Finance | Total | |||||||||||
Pro forma revenue | $ | 12,215,000 | $ | 24,706,000 | $ | 12,877,000 | $ | 49,798,000 | ||||||
Pro forma net income | $ | 1,554,000 | $ | 719,000 | $ | 1,220,000 | $ | 3,493,000 | ||||||
Pro forma net income attributable to noncontrolling interests | $ | -13,000 | $ | - | $ | - | $ | -13,000 | ||||||
Pro forma net income available to Western shareholders | $ | 1,541,000 | $ | 719,000 | $ | 1,220,000 | $ | 3,480,000 | ||||||
Pro forma earnings per share available to Western common shareholders – basic and diluted | $ | 0.26 | $ | 0.12 | $ | 0.2 | $ | 0.58 | ||||||
For the Year Ended December 31, 2013 | ||||||||||||||
Franchise | Cellular | Consumer | Total | |||||||||||
Retail | Finance | |||||||||||||
Pro forma revenue | $ | 11,975,000 | $ | 20,227,000 | $ | 12,662,000 | $ | 44,864,000 | ||||||
Pro forma net income | $ | 1,428,000 | $ | 238,000 | $ | 1,541,000 | $ | 3,207,000 | ||||||
Pro forma net income attributable to noncontrolling interests | $ | -12,000 | $ | - | $ | - | $ | -12,000 | ||||||
Pro forma net income available to Western shareholders | $ | 1,416,000 | $ | 238,000 | $ | 1,541,000 | $ | 3,195,000 | ||||||
Pro forma earnings per share available to Western common shareholders – basic and diluted | $ | 0.23 | $ | 0.04 | $ | 0.26 | $ | 0.53 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Segment information related to the years ended December 31, 2014 and 2013: | |||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||
Consumer | Cellular | Franchise | Total | |||||||||||
Finance | Retail | |||||||||||||
Revenues | $ | 12,876,559 | $ | 24,705,890 | $ | 3,177,104 | $ | 40,759,553 | ||||||
Depreciation and amortization | $ | 117,766 | $ | 326,768 | $ | 111,962 | $ | 556,496 | ||||||
Interest expense | $ | 61,823 | $ | 190,493 | $ | 63,252 | $ | 315,568 | ||||||
Income tax expense (benefit) | $ | 720,000 | $ | 385,000 | $ | 440,860 | $ | 1,545,860 | ||||||
Net income (loss) | $ | 1,136,875 | $ | 584,352 | $ | 690,205 | $ | 2,411,432 | ||||||
Total segment assets | $ | 16,931,785 | $ | 9,776,975 | $ | 10,053,504 | $ | 36,762,264 | ||||||
Expenditures for segmented assets | $ | 119,477 | $ | 518,766 | $ | 15,718 | $ | 653,961 | ||||||
For the Year Ended December 31, 2013 | ||||||||||||||
Consumer | Cellular | Franchise | Total | |||||||||||
Finance | Retail | |||||||||||||
Revenues | $ | 12,661,823 | $ | 20,227,373 | $ | - | $ | 32,889,196 | ||||||
Depreciation and amortization | $ | 134,178 | $ | 386,552 | $ | - | $ | 520,730 | ||||||
Interest expense | $ | 72,547 | $ | 259,700 | $ | - | $ | 332,247 | ||||||
Income tax expense (benefit) | $ | 865,000 | $ | 120,000 | $ | - | $ | 985,000 | ||||||
Net income (loss) | $ | 1,426,715 | $ | 192,829 | $ | - | $ | 1,619,544 | ||||||
Total segment assets | $ | 16,131,079 | $ | 8,308,006 | $ | - | $ | 24,439,085 | ||||||
Expenditures for segmented assets | $ | 140,996 | $ | 456,644 | $ | - | $ | 597,640 | ||||||
Basis_of_Presentation_Nature_o2
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Oct. 01, 2014 | |
Advertising And Development Costs [Member] | ||
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ||
Accounts Payable, Current | 275,000 | |
Minimum [Member] | ||
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Maximum [Member] | ||
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Cellular Retail Stores [Member] | PQH Wireless, Inc. [Member] | ||
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ||
Number of Stores | 61 | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |
Number of States in which Entity Operates | 15 | |
Franchising [Member] | Alpha Graphics, Inc. [Member] | ||
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ||
Number Of Domestic Business Centers | 242 | |
Number Of International Business Centers | 32 | |
Noncontrolling Interest, Ownership Percentage by Parent | 99.20% | |
Business Acquisition, Effective Date of Acquisition | 1-Oct-14 | |
Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | ||
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ||
Number of Stores | 50 | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |
Consumer Finance [Member] | Express Pawn, Inc. [Member] | ||
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ||
Number of Stores | 3 | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |
Consumer Finance [Member] | Installment [Member] | Minimum [Member] | Wyoming Financial Lenders, Inc. [Member] | ||
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ||
Non-Recourse Debt | 300 | |
Consumer Finance [Member] | Installment [Member] | Maximum [Member] | Wyoming Financial Lenders, Inc. [Member] | ||
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ||
Non-Recourse Debt | 800 | |
Consumer Finance [Member] | Payday [Member] | Minimum [Member] | Wyoming Financial Lenders, Inc. [Member] | ||
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ||
Non-Recourse Debt | 100 | |
Consumer Finance [Member] | Payday [Member] | Maximum [Member] | Wyoming Financial Lenders, Inc. [Member] | ||
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies [Line Items] | ||
Non-Recourse Debt | 500 |
Risks_Inherent_in_the_Operatin2
Risks Inherent in the Operating Environment (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | ||
Consumer Finance Division [Member] | Nebraska [Member] | |||
Concentration Risk [Line Items] | |||
Consumer Finance Division, Revenues By State, Percentage | 30.00% | 28.00% | |
Consumer Finance Division [Member] | North Dakota [Member] | |||
Concentration Risk [Line Items] | |||
Consumer Finance Division, Revenues By State, Percentage | 18.00% | 19.00% | |
Consumer Finance Division [Member] | Wyoming [Member] | |||
Concentration Risk [Line Items] | |||
Consumer Finance Division, Revenues By State, Percentage | 14.00% | 14.00% | |
Consumer Finance Division [Member] | Iowa [Member] | |||
Concentration Risk [Line Items] | |||
Consumer Finance Division, Revenues By State, Percentage | 14.00% | 12.00% | |
Cellular Retail Division [Member] | Nebraska [Member] | |||
Concentration Risk [Line Items] | |||
Cellular Retail Division, Revenues By State, Percentage | 28.00% | 26.00% | |
Cellular Retail Division [Member] | Colorado [Member] | |||
Concentration Risk [Line Items] | |||
Cellular Retail Division, Revenues By State, Percentage | 19.00% | 11.00% | |
Cellular Retail Division [Member] | Texas [Member] | |||
Concentration Risk [Line Items] | |||
Cellular Retail Division, Revenues By State, Percentage | [1] | 12.00% | |
[1] | Denotes less than 10% |
Risks_Inherent_in_the_Operatin3
Risks Inherent in the Operating Environment (Details Textual) (USD $) | Dec. 31, 2014 |
Cash, FDIC Insured Amount | $2,250,000 |
Loans_Receivable_Details
Loans Receivable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Notes And Loans Receivable Gross Current | $7,744,798 | $6,653,202 |
Allowance For Accounts Notes And Loans Receivable Current | -1,219,000 | -1,215,000 |
Accounts, Notes, Loans and Financing Receivable, Net | 5,331,266 | 5,438,202 |
Payday [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 5,763,922 | 5,835,997 |
Allowance for Notes, Loans and Financing Receivable, Current | -1,147,000 | -1,120,000 |
Outstanding loans receivable, Net | 4,616,922 | 4,715,997 |
Installment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 413,539 | 528,417 |
Allowance for Notes, Loans and Financing Receivable, Current | -72,000 | -95,000 |
Outstanding loans receivable, Net | 341,539 | 433,417 |
Pawn & Title [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 372,805 | 288,788 |
Allowance for Notes, Loans and Financing Receivable, Current | 0 | 0 |
Outstanding loans receivable, Net | 372,805 | 288,788 |
Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Notes And Loans Receivable Gross Current | 6,240,215 | 5,217,409 |
Current [Member] | Payday [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 4,387,393 | 4,519,839 |
Current [Member] | Installment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 321,634 | 408,782 |
Current [Member] | Pawn & Title [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 372,805 | 288,788 |
Delinquent 1 to 30 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Notes And Loans Receivable Gross Current | 361,392 | 328,774 |
Delinquent 1 to 30 Days [Member] | Payday [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 305,382 | 271,967 |
Delinquent 1 to 30 Days [Member] | Installment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 47,321 | 56,807 |
Delinquent 1 to 30 Days [Member] | Pawn & Title [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 0 | 0 |
Delinquent 31 to 60 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Notes And Loans Receivable Gross Current | 258,633 | 233,309 |
Delinquent 31 to 60 Days [Member] | Payday [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 223,465 | 202,097 |
Delinquent 31 to 60 Days [Member] | Installment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 24,791 | 31,212 |
Delinquent 31 to 60 Days [Member] | Pawn & Title [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 0 | 0 |
Delinquent 61 to 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Notes And Loans Receivable Gross Current | 264,954 | 234,439 |
Delinquent 61 to 90 Days [Member] | Payday [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 236,072 | 217,154 |
Delinquent 61 to 90 Days [Member] | Installment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 11,799 | 17,285 |
Delinquent 61 to 90 Days [Member] | Pawn & Title [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 0 | 0 |
Delinquent 91 to 120 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Notes And Loans Receivable Gross Current | 212,143 | 215,545 |
Delinquent 91 to 120 Days [Member] | Payday [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 206,705 | 206,885 |
Delinquent 91 to 120 Days [Member] | Installment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 5,438 | 8,660 |
Delinquent 91 to 120 Days [Member] | Pawn & Title [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 0 | 0 |
Delinquent 121 to 150 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Notes And Loans Receivable Gross Current | 202,085 | 202,099 |
Delinquent 121 to 150 Days [Member] | Payday [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 200,101 | 199,253 |
Delinquent 121 to 150 Days [Member] | Installment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 1,984 | 2,846 |
Delinquent 121 to 150 Days [Member] | Pawn & Title [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 0 | 0 |
Delinquent 151 to 180 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Notes And Loans Receivable Gross Current | 205,376 | 221,627 |
Delinquent 151 to 180 Days [Member] | Payday [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 204,804 | 218,802 |
Delinquent 151 to 180 Days [Member] | Installment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 572 | 2,825 |
Delinquent 151 to 180 Days [Member] | Pawn & Title [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | $0 | $0 |
Loans_Receivable_Allowance_Det
Loans Receivable Allowance (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and loans receivable allowance, beginning of period | $1,215,000 | $1,191,000 |
Provision for accounts and loan losses charged to expense | 1,817,822 | 1,859,461 |
Charge-offs, net | -1,813,822 | -1,835,461 |
Accounts and loans receivable allowance, end of period | $1,219,000 | $1,215,000 |
Loans_Receivable_Allowance_Det1
Loans Receivable Allowance (Details Textual) | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Historical Written Off | 42.00% |
Delinquent 1 to 30 Days [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Historical Written Off | 42.00% |
Delinquent 31 to 60 Days [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Historical Written Off | 65.00% |
Delinquent 61 to 90 Days [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Historical Written Off | 83.00% |
Delinquent 91 to 120 Days [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Historical Written Off | 88.00% |
Delinquent 121 to 180 Days [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of Historical Written Off | 91.00% |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Furniture and equipment | $2,853,608 | $1,571,152 |
Leasehold improvements | 786,782 | 701,764 |
Software | 539,513 | 17,322 |
Other | 157,577 | 157,171 |
Property, Plant and Equipment, Gross | 4,337,480 | 2,447,409 |
Accumulated depreciation | -3,139,770 | -1,519,335 |
Property, Plant and Equipment, Net | $1,197,710 | $928,074 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Amortizable Intangible Assets: | ||
Customer relationships | $4,924,912 | $4,627,412 |
Acquired franchisee agreements | 5,227,112 | 0 |
Amortizable Intangible Assets, net | 10,152,024 | 4,627,412 |
Less accumulated amortization | -5,685,523 | -4,510,316 |
Net Amortizable Intangible Assets | 4,466,501 | 117,096 |
Non-amortizable Trademarks | 2,782,292 | 0 |
Intangible Assets, net | $7,248,793 | $117,096 |
Intangible_Assets_Details_1
Intangible Assets (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Amortization Of Intangible Assets [Line Items] | ||
2015 | $385,847 | |
2016 | 377,174 | |
2017 | 377,174 | |
2018 | 377,174 | |
2019 | 377,174 | |
Thereafter | 2,571,958 | |
Finite-Lived Intangible Assets, Net | $4,466,501 | $117,096 |
Deferred_Revenue_and_Other_Lia2
Deferred Revenue and Other Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred financing fees | $284,231 | $296,503 |
Deferred franchise fees | 281,837 | 0 |
Other | 72,000 | 0 |
Total | $638,068 | $296,503 |
Leases_Details
Leases (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2015 | $2,471,000 | |
2016 | 1,761,000 | |
2017 | 1,222,000 | |
2018 | 391,000 | |
2019 | 159,000 | |
thereafter | 57,000 | |
Total minimum lease payments | 6,061,000 | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2015 | 47,554 | |
2016 | 25,270 | |
2017 | 7,964 | |
2018 | 0 | |
2019 | 0 | |
thereafter | 0 | |
Total minimum lease payments | 80,788 | |
Less: imputed interest | -7,067 | |
Present value of minimum lease payments | 73,721 | |
Less: current portion of capital lease obligations | -42,240 | 0 |
Capital lease obligations, net of current portion | $31,481 | $0 |
Leases_Details_Textual
Leases (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Leases, Rent Expense, Net | $3,003,000 | $2,663,000 |
Notes_Payable_Long_Term_Detail
Notes Payable - Long Term (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Notes Payable, Noncurrent | $1,625,000 | $0 |
Long-term Debt | 5,125,000 | 2,750,000 |
Less current maturities | -3,500,000 | -2,750,000 |
Notes Payable, Noncurrent | 1,625,000 | 0 |
Note Payable to River City Equity [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 2,000,000 | 2,750,000 |
Note Payable to Financial Institution [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable, Noncurrent | 0 | |
Long-term Debt | $3,125,000 |
Notes_Payable_Long_Term_Detail1
Notes Payable - Long Term (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
2015 | $3,500,000 | |
2016 | 1,500,000 | |
2017 | 125,000 | |
Long-term Debt | $5,125,000 | $2,750,000 |
Notes_Payable_Long_Term_Detail2
Notes Payable - Long Term (Details Textual) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Instrument [Line Items] | |
Debt Instrument, Maturity Date | 30-Jun-15 |
Note Payable to River City Equity [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 12.00% |
Debt Instrument, Maturity Date | 30-Jun-15 |
Line of Credit Facility, Maximum Borrowing Capacity | 3,000,000 |
Note Payable to Financial Institution [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Maturity Date | 1-Jun-17 |
Debt Instrument, Periodic Payment, Principal | 375,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.75% |
Note Payable to Financial Institution [Member] | Prime Rate [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 2.50% |
AGI [Member] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000 |
Line of Credit Facility, Interest Rate Description | (a) the prime rate plus 2.50% or (b) the LIBOR rate plus 5.50% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | ||
Federal | $1,007,860 | $600,000 |
State | 181,000 | 114,000 |
Foreign | 8,000 | 0 |
Current Income Tax Expense (Benefit) | 1,196,860 | 714,000 |
Deferred: | ||
Federal | 293,000 | 228,000 |
State | 56,000 | 43,000 |
Deferred Income Tax Expense (Benefit) | 349,000 | 271,000 |
Income tax expense | $1,545,860 | $985,000 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred income tax assets: | ||
Allowance for accounts and loans receivable | $521,000 | $461,000 |
Accrued expenses | 123,000 | 37,000 |
Deferred income taxes | 644,000 | 498,000 |
Deferred Tax Assets, Net | 644,000 | 498,000 |
Deferred income tax liabilities: | ||
Property and equipment | -306,000 | -206,000 |
Goodwill and intangible assets | -3,867,000 | -950,000 |
Net operating losses (expires 2031) | 208,000 | 0 |
Capital loss carryforward (expires 2016) | 21,000 | 0 |
Foreign tax credits | 40,000 | 0 |
Valuation allowance | -35,000 | 0 |
Deferred income taxes | -3,939,000 | -1,156,000 |
Deferred Tax Assets Liabilities, Net | ($3,939,000) | ($1,156,000) |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | ||
Income tax expense using the statutory federal rate | $1,345,000 | $885,000 |
State income taxes, net of federal benefit | 152,000 | 103,000 |
Other | 49,000 | -3,000 |
Income tax expense | $1,545,860 | $985,000 |
Equity_Details_Textual
Equity (Details Textual) (USD $) | 1 Months Ended | |||||
30-May-14 | Sep. 30, 2014 | Feb. 28, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 02, 2008 | |
Common stock, shares issued | 5,997,588 | 3,011,009 | ||||
Stockholders' Equity, Reverse Stock Split | 1-for-20 reverse stock split | |||||
AGI [Member] | ||||||
Shares of common stock issued October 1, 2014 for AlphaGraphics entities acquisition (in shares) | 2,986,823 | |||||
Percentage of Stock Issued and Outstanding | 49.80% | |||||
Common stock, shares issued | 5,997,588 | |||||
Equity Method Investment, Ownership Percentage | 99.20% | |||||
Capitalizations [Member] | ||||||
Capital Units, Authorized | 12,500,000 | |||||
Common Stock Repurchases [Member] | ||||||
Stock Repurchased and Retired During Period Cost Per Share | $2 | |||||
Treasury Stock, Shares, Retired | 8,881 | |||||
Treasury Stock, Retired, Cost Method, Amount | $17,762 | |||||
2008 Stock Incentive Plan [Member] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 100,000 |
Other_Expenses_Details
Other Expenses (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Other Cost and Expenses [Line Items] | ||
Bank fees | $473,632 | $412,527 |
Collection costs | 449,301 | 466,597 |
Insurance | 305,935 | 206,040 |
Management and consulting fees | 536,369 | 463,157 |
Professional fees | 1,048,599 | 519,939 |
Supplies | 637,730 | 539,216 |
Other | 1,096,389 | 732,945 |
Total General & administrative expenses | $4,547,955 | $3,340,421 |
Acquisition_Details
Acquisition (Details) (USD $) | Dec. 31, 2014 |
Cash | $168,000 |
Receivables | 1,227,000 |
Property and equipment | 374,000 |
Intangible assets | 7,016,000 |
Note receivable | 636,000 |
Other assets | 453,000 |
Accounts payable and accrued liabilities | -2,493,000 |
Other liabilities | -506,000 |
Note and lease obligations | -4,084,000 |
Deferred tax liability | -2,434,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 357,000 |
Noncontrolling interests | -7,000 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest | $350,000 |
Acquisition_Details_1
Acquisition (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Pro forma revenue | $49,798,000 | $44,864,000 |
Pro forma net income | 3,493,000 | 3,207,000 |
Pro forma net income attributable to noncontrolling interests | -13,000 | -12,000 |
Pro forma net income available to Western shareholders | 3,480,000 | 3,195,000 |
Pro forma earnings per share available to Western common shareholders - basic and diluted | $0.58 | $0.53 |
Franchise [Member] | ||
Pro forma revenue | 12,215,000 | 11,975,000 |
Pro forma net income | 1,554,000 | 1,428,000 |
Pro forma net income attributable to noncontrolling interests | -13,000 | -12,000 |
Pro forma net income available to Western shareholders | 1,541,000 | 1,416,000 |
Pro forma earnings per share available to Western common shareholders - basic and diluted | $0.26 | $0.23 |
Cellular Retail Stores [Member] | ||
Pro forma revenue | 24,706,000 | 20,227,000 |
Pro forma net income | 719,000 | 238,000 |
Pro forma net income attributable to noncontrolling interests | 0 | 0 |
Pro forma net income available to Western shareholders | 719,000 | 238,000 |
Pro forma earnings per share available to Western common shareholders - basic and diluted | $0.12 | $0.04 |
Consumer Finance [Member] | ||
Pro forma revenue | 12,877,000 | 12,662,000 |
Pro forma net income | 1,220,000 | 1,541,000 |
Pro forma net income attributable to noncontrolling interests | 0 | 0 |
Pro forma net income available to Western shareholders | $1,220,000 | $1,541,000 |
Pro forma earnings per share available to Western common shareholders - basic and diluted | $0.20 | $0.26 |
Acquisition_Details_Textual
Acquisition (Details Textual) | 1 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2014 | |
Common Stock [Member] | ||
Stock Issuance Percentage | 49.80% | |
AGI [Member] | ||
Business Acquisition, Date of Acquisition Agreement | 30-Sep-14 | |
Stock Issued During Period, Shares, Acquisitions | 2,986,823 |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ||
Revenues | $40,759,553 | $32,889,196 |
Depreciation and amortization | 556,496 | 520,730 |
Interest expense | 315,568 | 332,247 |
Income tax expense (benefit) | 1,545,860 | 985,000 |
Net income (loss) | 2,411,432 | 1,619,544 |
Total segment assets | 36,762,264 | 24,439,085 |
Expenditures for segmented assets | 653,961 | 597,640 |
Consumer Finance [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 12,876,559 | 12,661,823 |
Depreciation and amortization | 117,766 | 134,178 |
Interest expense | 61,823 | 72,547 |
Income tax expense (benefit) | 720,000 | 865,000 |
Net income (loss) | 1,136,875 | 1,426,715 |
Total segment assets | 16,931,785 | 16,131,079 |
Expenditures for segmented assets | 119,477 | 140,996 |
Cellular Retail [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 24,705,890 | 20,227,373 |
Depreciation and amortization | 326,768 | 386,552 |
Interest expense | 190,493 | 259,700 |
Income tax expense (benefit) | 385,000 | 120,000 |
Net income (loss) | 584,352 | 192,829 |
Total segment assets | 9,776,975 | 8,308,006 |
Expenditures for segmented assets | 518,766 | 456,644 |
Franchise [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 3,177,104 | 0 |
Depreciation and amortization | 111,962 | 0 |
Interest expense | 63,252 | 0 |
Income tax expense (benefit) | 440,860 | 0 |
Net income (loss) | 690,205 | 0 |
Total segment assets | 10,053,504 | 0 |
Expenditures for segmented assets | $15,718 | $0 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |
Nov. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 18, 2014 | |
Payments to Acquire Productive Assets | $653,961 | $597,640 | ||
Litigation Settlement, Amount | 636,000 | |||
Asset Purchase Agreement [Member] | ||||
Purchase Price Of Productive Assets | 500,000 | |||
Payments to Acquire Productive Assets | 50,000 | |||
Purchase Agreement Completion Date | 2-Jan-15 | |||
Board of Directors [Member] | ||||
Bonus Arrangement Current | $352,000 | $329,000 |
Retirement_Plan_Details_Textua
Retirement Plan (Details Textual) | 12 Months Ended |
Dec. 31, 2014 | |
Defined Benefit Plans, General Information | all of the subsidiary employees who have completed one month of service and are 18 years of age or older |
Management_and_Advisory_Agreem1
Management and Advisory Agreement (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
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 Capitals 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 Blackstreets 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. Any fees which may have been payable per these terms related to the AlphaGraphics acquisition were waived by Blackstreet. | |
Management And Advisory Fees | $416,369 | $343,157 |
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, 2014 | Dec. 31, 2013 | |
Annual Compensation For Officers | $50,000 | $50,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction, Amounts of Transaction | $166,500 | $166,500 |
Debt Instrument, Maturity Date | 30-Jun-15 | |
perating Leases Extends Through October 2016 [Member] | ||
Operating Leases Monthly Rental Payments | 1,680 | |
Operating Lease Extends Through August 2015 [Member] | ||
Operating Leases Monthly Rental Payments | 6,000 | |
Five Year Operating Leases Beginning October 2012 [Member] | ||
Operating Leases Monthly Rental Payments | 5,000 | |
Operating Leases Extends Through June 2015 [Member] | ||
Operating Leases Monthly Rental Payments | 1,200 | |
Operating Leases Extends Through November 2017 [Member] | ||
Operating Leases Monthly Rental Payments | 5,000 | |
River City Equity Inc [Member] | ||
Notes Payable, Related Parties, Noncurrent | 3,000,000 | |
Debt Instrument, Interest Rate During Period | 12.00% | |
Due from Related Parties, Current | 2,000,000 | |
Interest Expense, Related Party | $252,000 | $330,000 |
Subsequent_Events_Details_Text
Subsequent Events (Details Textual) (Subsequent Event [Member], USD $) | 0 Months Ended | |
Feb. 09, 2015 | Feb. 06, 2015 | |
Chief Investment Officer [Member] | ||
Subsequent Event [Line Items] | ||
Officers' Compensation | $235,000 | |
Performance Based Cash Bonus Target | $200,000 | |
Stock Incentive Plan 2015 [Member] | ||
Subsequent Event [Line Items] | ||
Common Stock, Capital Shares Reserved for Future Issuance | 100,000 | |
Stock Incentive Plan 2015 [Member] | Employee Stock Option [Member] | ||
Subsequent Event [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 65,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $6 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Description and Terms | The option vests in three annual and near-equal installments on each of February 8, 2016, 2017 and 2018 |