Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | EXP Realty International Corp | ||
Entity Central Index Key | 1,495,932 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 7,336,084 | ||
Entity Common Stock, Shares Outstanding | 50,610,168 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 571,814 | $ 353,374 |
Restricted cash | 148,613 | 141,508 |
Accounts receivable, net of allowance $2,342 and $3,084 respectively | 341,643 | 183,026 |
Accounts receivable, related party | 0 | 6,000 |
Prepaids and other assets | 84,451 | 74,673 |
TOTAL CURRENT ASSETS | 1,146,521 | 758,581 |
OTHER ASSETS | ||
Fixed assets, net | 110,195 | 79,393 |
Deferred tax assets, non-current | 0 | 75,196 |
TOTAL OTHER ASSETS | 110,195 | 154,589 |
TOTAL ASSETS | 1,256,716 | 913,170 |
CURRENT LIABILITIES | ||
Accounts payable | 89,984 | 79,389 |
Customer deposits | 148,613 | 141,508 |
Accrued expenses | 425,613 | 207,323 |
Accrued interest | 0 | 9,397 |
Notes payable | 0 | 61,887 |
TOTAL CURRENT LIABILITIES | $ 664,210 | $ 499,504 |
Commitments and Contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common Stock, 7,700,000,000 shares, $0.00001 par value authorized; 50,168,195 and 48,566,909 issued and outstanding at December 31, 2015 and December 31, 2014, respectively | $ 502 | $ 486 |
Additional paid-in capital | 6,611,781 | 1,824,361 |
Accumulated deficit | (5,991,088) | (1,409,639) |
Accumulated other comprehensive (loss) | (9,113) | (1,542) |
Total eXp Realty International Corporation stockholders' equity | 612,082 | 413,666 |
Non-controlling interests in subsidiary | (19,576) | 0 |
TOTAL EQUITY | 592,506 | 413,666 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,256,716 | $ 913,170 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,342 | $ 3,084 |
Common stock shares authorized | 7,700,000,000 | 7,700,000,000 |
Common stock par value | $ 0.00001 | $ 0.00001 |
Common stock shares issued | 50,168,195 | 48,566,909 |
Common stock shares outstanding | 50,168,195 | 48,566,909 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||
Net Revenues | $ 22,866,787 | $ 13,368,905 |
Operating expenses | ||
Cost of revenues | 19,456,409 | 11,099,750 |
General and administrative | 7,257,961 | 1,883,146 |
Professional fees | 439,763 | 276,558 |
Sales and marketing | 211,456 | 76,019 |
Total expenses | 27,365,589 | 13,335,473 |
Net income (loss) from operations | (4,498,802) | 33,432 |
Other income and (expenses) | ||
Other income | 23 | 0 |
Interest expense | (1,127) | (942) |
Total other income and (expenses) | (1,104) | (942) |
Income (Loss) before income tax expense | (4,499,906) | 32,490 |
Income tax benefit (expense) | (103,069) | 71,353 |
Net income (loss) | (4,602,975) | 103,843 |
Net loss attributable to non-controlling interest in subsidiary | $ 21,526 | 0 |
Net income (loss) attributable to common shareholders | $ 103,843 | |
Earnings (loss) per share attributable to common shareholders | ||
Net income (loss) per share - basic | $ (.09) | $ 0 |
Net income (loss) per share - diluted | $ (.09) | $ 0 |
Weighted average shares outstanding | ||
Weighted average shares outstanding - basic | 49,409,266 | 48,068,047 |
Weighted average shares outstanding - diluted | 49,409,266 | 51,735,865 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (4,602,975) | $ 103,843 |
Other comprehensive income (loss): | ||
Foreign currency translation loss, net of tax | (7,571) | (1,542) |
Comprehensive income (loss) | (4,610,546) | 102,301 |
Comprehensive loss attributable to non-controlling interest in subsidiary | 21,526 | 0 |
Comprehensive income (loss) attributable to common shareholders | $ (4,589,020) | $ 102,301 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning balance, shares at Dec. 31, 2013 | 47,795,317 | ||||
Beginning balance, value at Dec. 31, 2013 | $ 478 | $ 1,531,821 | $ (1,513,482) | $ 18,817 | |
Stock issued for cash, shares | 198,333 | ||||
Stock issued for cash, value | $ 2 | 59,448 | 59,450 | ||
Issuance of subsidiary common stock, value | 0 | ||||
Stock compensation expense, shares | 573,259 | ||||
Stock compensation expense, value | $ 6 | 136,488 | 136,494 | ||
Stock option expense | 96,604 | 96,604 | |||
Repurchase and retirement of shares, value | 0 | ||||
Foreign currency translation (loss) | $ (1,542) | (1,542) | |||
Net income (loss) | 103,843 | 103,843 | |||
Ending balance, shares at Dec. 31, 2014 | 48,566,909 | ||||
Ending balance, value at Dec. 31, 2014 | $ 486 | 1,824,361 | (1,409,639) | (1,542) | 413,666 |
Issuance of subsidiary common stock, value | (1,950) | ||||
Stock compensation expense, shares | 1,613,816 | ||||
Stock compensation expense, value | $ 16 | 1,293,061 | 1,293,077 | ||
Stock option expense | 3,497,491 | 3,497,491 | |||
Repurchase and retirement of shares, shares | (12,530) | ||||
Repurchase and retirement of shares, value | (3,132) | (3,132) | |||
Foreign currency translation (loss) | (7,571) | (7,571) | |||
Net income (loss) | (4,581,449) | (4,602,975) | |||
Ending balance, shares at Dec. 31, 2015 | 50,168,195 | ||||
Ending balance, value at Dec. 31, 2015 | $ 502 | $ 6,611,781 | $ (5,991,088) | $ (9,113) | $ 592,506 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ (4,602,975) | $ 103,843 |
Adjustments to reconcile net income (loss) to cash used in operating activities: | ||
Depreciation | 26,304 | 14,493 |
Stock compensation expense | 1,293,077 | 136,494 |
Stock option expense | 3,497,491 | 96,604 |
Deferred tax asset | 75,196 | (75,196) |
Changes in operating assets and liabilities | ||
Accounts receivable | (158,617) | (83,386) |
Accounts receivable, related party | 6,000 | 2,200 |
Prepaids and other assets | (9,778) | (34,880) |
Accounts payable | 10,595 | 23,563 |
Accrued expenses | 218,290 | 77,079 |
Due to related parties | 0 | (18,232) |
Accrued interest | (9,397) | 1,860 |
CASH PROVIDED BY OPERATING ACTIVITIES | 346,186 | 244,442 |
INVESTMENT ACTIVITIES | ||
Acquisition of property and equipment | (57,116) | (49,032) |
CASH USED BY INVESTMENT ACTIVITIES | (57,116) | (49,032) |
FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock | 0 | 59,450 |
Proceeds from issuance of subsidiary common stock | 1,950 | 0 |
Repurchase and retirement of shares | (3,132) | 0 |
Principal payments of notes payable | (61,877) | 0 |
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (63,059) | 59,450 |
Net change in cash and cash equivalents | 226,011 | 254,860 |
Effect of foreign exchange on cash | (7,571) | (1,542) |
Cash and cash equivalents, beginning of period | 353,374 | 100,056 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 571,814 | 353,374 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS FOR: | ||
Cash paid for interest | 10,524 | 0 |
Cash paid for taxes | $ 24,313 | $ 3,843 |
1. Background
1. Background | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background | eXp Realty International Corporation formerly known as Desert Canadians, Ltd. (the Company or eXp) was incorporated in the State of Delaware on July 30, 2008. In September of 2013 we completed a merger transaction with eXp Acquisition Corp. (surviving corporation) and eXp Realty International Inc. and its subsidiaries. Upon completion of the merger eXp Realty International Inc. ceased to exist. Also in connection with the merger agreement and immediately thereafter our board of directors also approved a change in our fiscal year end from June 30 to December 31. The Company is a cloud-based real estate brokerage operating in 35 States and in both Alberta and Ontario, Canada. As a cloud-based real estate brokerage for the residential real estate market, eXp has embraced and adopted a number of cloud-based technologies in order to grow an international brokerage without the burden of physical bricks and mortar or redundant staffing costs. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Principles | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Principles | Basis of presentation and fiscal year The accompanying audited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP), and are expressed in US dollars. The Companys fiscal year end is December 31. We may have reclassified certain amounts in prior-period financial statements to conform to the current periods presentation. Principles of consolidation The accompanying consolidated financial statements include the accounts of eXp Realty International Corporation and its subsidiaries eXp Acquisition Corp; First Cloud Mortgage, Inc.; eXp Realty Associates, LLC; eXp Realty, LLC; eXp Realty of California, Inc.(formerly eXp Realty Washington, Inc.); eXp Realty of Canada, Inc.; and eXp Realty of Connecticut, LLC. All inter-company accounts and transactions have been eliminated upon consolidation. Non-controlling interests Non-controlling interests in the Companys subsidiaries are reported as a component of equity, separate from the parent companys equity. Results of operations attributable to the non-controlling interests are included in the Companys condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (loss). On July 23, 2015 the Company formed First Cloud Mortgage, Inc. of which it holds an 80.5% majority and controlling interest. The other 19.5% non-controlling interests are owned by First Cloud Mortgage, Inc.s President and its Vice President. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related provisions for doubtful accounts, legal contingencies, income taxes, revenue recognition, stock-based compensation, expense accruals, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Companys estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Cash and cash equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. Restricted cash The Companys restricted cash balance of $148,613 and $141,508 at December 31, 2015 and 2014, respectively, consists of cash held by our brokers and agents on behalf real estate buyers that are in escrow. Since the Company does not have rights to the cash a corresponding customer deposit liability in the same amounts are recognized in the consolidated balance sheets. When a sales transaction closes the restricted cash transfers to the sellers and the corresponding deposit liability is reduced. Fair value The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The methodology establishes consistency and comparability by providing a fair value hierarchy that prioritizes the inputs to valuation techniques into three broad levels, which are described below: · Level 1 inputs are quoted market prices in active markets for identical assets or liabilities (these are observable market inputs). · Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability (includes quoted market prices for similar assets or identical or similar assets in markets in which there are few transactions, prices that are not current or prices that vary substantially). · Level 3 inputs are unobservable inputs that reflect the entity's own assumptions in pricing the asset or liability (used when little or no market data is available). The Company's financial instruments, including cash, accounts receivable, restricted cash, accounts payable, accrued expenses and other current liabilities are carried at cost, which approximates their fair value due to the short-term maturity of these instruments. Concentration of credit risk, significant customers, and significant suppliers Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, accounts receivable and restricted cash. The Company deposits its cash with financial institutions that management believes to be of high credit quality, and these deposits may, on occasion, exceed federally insured limits. A portion of the Companys accounts receivable are derived from non-commission based technology fees. These accounts receivable are typically unsecured. Allowances for doubtful accounts are estimated based on historically collection experience and periodically reviewed by management. For the periods presented we did not experience any material bad debts. Foreign currency translation Management has adopted ASC 830, Foreign Currency Translation Matters as it pertains to its foreign currency translation. The Companys functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. Property and equipment Property and equipment are stated at cost. Depreciation and amortization is computed using the straight-line method over the estimated useful lives. Computer hardware and software: 3 to 5 years Furniture, fixtures and equipment: 5 to 7 years Maintenance and repairs are expensed as incurred. Expenditures that substantially increase an assets useful life or improve an assets functionality are capitalized. Impairment of long-lived assets In accordance with the accounting guidance for the impairment or disposal of long-lived assets, the Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost of disposal. As of the years ending December 31, 2015 and 2014, the Company has not recorded any charges for impairment of long-lived assets. Stock-based compensation Stock-based compensation costs, consisting of restricted stock and options, for eligible employees, directors, and contractors are measured at fair value on the date of grant and are expensed over the requisite service period using a straight line method for each award. Revenue recognition Revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service has been delivered, and collectability of the resulting receivable is reasonably assured. Commission Revenue The Company derives the majority of its revenue from commissions earned as agents in residential real estate transactions. Commission revenue is recognized upon closing of a transaction, net of any rebate or commission discount or transaction fee adjustment. Other commission revenue is generated from company leads, referrals, and other related fees. Non-Commission Revenue Non-commission revenues are derived primarily from agent and broker training fees, known as eXp University tuition and technology fees. Technology fee revenues are recognized over the term of the agreements as the contracted services are delivered. Advertising costs Advertising costs are generally expensed in the period incurred. Advertising expenses are included in the sales and marketing expense line item on the Companys Consolidated Statements of Operations, were approximately $164 thousand and $60 thousand for the years ending December 31, 2015 and 2014, respectively. Income taxes Deferred tax assets and liabilities arise from the differences between the tax basis of an asset or liability and its reported amount in the financial statements as well as from net operating loss and tax credit carry forwards. The measurement of current and deferred tax assets and liabilities is based on provisions of enacted tax laws; the effects of future changes in tax laws or rates are not anticipated. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense or benefit is the tax payable or refundable, respectively, for the period adjusted for the change during the period in deferred tax assets and liabilities. For U.S. income tax returns, the open taxation years subject to examination range from 2012 to 2015. In certain circumstances, the U.S. federal statute of limitations can reach beyond the standard three year period. Comprehensive income (loss) Comprehensive income (loss) comprised of foreign currency loss of $7,571 and $1,542 for the years ended December 31, 2015 and 2014, respectively. Net income (loss) per share Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of shares of common stock outstanding plus, if dilutive, potential common shares outstanding during the period. Potential common shares are composed of incremental shares of common stock issuable upon the exercise of potentially dilutive stock options. Recently issued accounting pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. The objective of this update is to 1) remove inconsistencies and weaknesses in revenue requirements, 2) provide a robust framework for addressing revenue recognition issues, 3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets 4) provide more useful information to users of financial statements through improved disclosure requirements, and 5) simplify the preparation of financial statements. This update is effective in annual reporting periods beginning after December 15, 2017 and the interim periods within that year. The Company will be evaluating the impact of this update as it pertains to the Companys financial statements and other required disclosures on an on-going basis until its eventual adoption and incorporation. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. Under the new guidance a lessee will be required to recognize assets and liabilities for leases with lease terms more than 12 months, whether that lease be classified as a capital or operating lease. This update is effective in annual reporting periods beginning after December 15, 2018 and the interim periods within that year. The Company will be evaluating the impact of this update as it pertains to the Companys financial statements and other required disclosures on an on-going basis until its eventual adoption and incorporation. |
3. Prepaid and Other Current As
3. Prepaid and Other Current Assets | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid and Other Current Assets | Prepaid and other current assets consisted of the following: Year Ended December 31, 2015 2014 Prepaid expenses $ 63,611 $ 52,573 Prepaid insurance 2,905 8,125 Rent deposits 15,478 11,518 Other assets 2,457 2,457 $ 84,451 $ 74,673 |
4. Property and Equipment
4. Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment, net consisted of the following: Year Ended December 31, 2015 2014 Computer hardware and software $ 143,127 $ 96,935 Furniture, fixture and equipment 5,910 5,910 Total depreciable property and equipment 149,037 102,845 Less: accumulated depreciation and amortization (49,757 ) (23,452 ) Depreciable property, net 99,280 79,393 Assets under development 10,915 Property and equipment, net $ 110,195 $ 79,393 Depreciation and amortization expense for the years ended December 31, 2015 and 2014 was $26,304 and $14,493, respectively. |
5. Accrued Expenses
5. Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consisted of the following: Year Ended December 31, 2015 2014 Commissions payable $ 282,525 $ 115,090 Payroll payable 51,669 43,544 Vacation payable 37,360 27,703 Taxes payable 33,891 14,833 Other accrued expenses 20,168 6,153 $ 425,613 $ 207,323 |
6. Notes Payable
6. Notes Payable | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes payable consisted of the following: Year Ended December 31, 2015 2014 Note Description Note payable due to an individual, 3% interest compounding annually, principal and interest paid any-time prior to April 21, 2015 at the Companys option. $ $ 61,887 Total notes payable 61,887 Less: current portion (61,887 ) Notes payable, net of current portion $ $ During the years ended December 31, 2015 and 2014 the Company recognized interest expense of $1,127 and $942, respectively. |
7. Stockholders' Equity
7. Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | In February of 2015 we re-purchased and retired 12,530 shares of our common stock for $3,132 in cash. Throughout 2015 we issued 1,613,816 shares of common stock for services valued at $1,293,077 to consultants and directors. |
8. Stock Based Compensation
8. Stock Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | During the years ended December 31, 2015 and 2014 the Company approved the issuance of stock options to certain employees, officers, directors, and service provider at the sole discretion of the Board of Directors. Intrinsic Value Options As of December 31, 2015, the Company had granted option awards prior to the Company being public. Upon completion of the merger in 2013 the Company converted prior granted awards into eXp Realty International Corporation under the 2013 Stock Option Plan. As such, the Company has been and will continue to account for those awards based on the intrinsic value method and re-measure the intrinsic value at each reporting date through the date of exercise or other settlement. The Company will continue to do so for these previously granted awards unless an award is modified, repurchased, or cancelled. The final measure of compensation cost is recognized at the intrinsic value of the instrument at the date it is settled. Compensation cost for each period until settlement is based on the change in the intrinsic value of the instrument in each reporting period. The Companys currently issued stock options under this plan vest over periods ranging from 0 to 4 years and are exercisable for a period of 10 years. The Companys stock option activity under this method of accounting is as follows: Options Weighted Average Price Intrinsic Value Balance, December 31, 2013 7,674,000 $ 0.14 $ 0.16 Granted Exercised Forfeited (462,521 ) Balance, December 31, 2014 7,211,479 0.15 0.17 Granted Exercised Forfeited (267,979 ) Balance, December 31, 2015 6,943,500 $ 0.14 $ 0.68 Exercisable at December 31, 2015 4,551,660 0.13 0.69 Vested at December 31, 2015 6,483,390 $ 0.14 $ 0.68 The following table summarizes information about stock options outstanding under this method of accounting at December 31, 2015: OUTSTANDING VESTED Weighted Remaining Weighted Remaining Average Contractual Aggregate Average Contractual Aggregate Exercise Life Intrinsic Exercise Life Intrinsic Options Price in Years Value Options Price in Years Value 5,411,753 $ 0.13 6.70 $ 3,716,070 5,203,518 $ 0.13 6.70 $ 3,573,082 808,748 $ 0.14 7.00 $ 551,027 685,350 $ 0.14 7.00 $ 466,952 315,000 $ 0.15 7.00 $ 212,100 315,000 $ 0.15 7.00 $ 212,100 33,000 $ 0.20 7.00 $ 20,460 24,727 $ 0.20 7.00 $ 15,331 375,000 $ 0.27 7.28 $ 207,500 254,795 $ 0.27 7.28 $ 140,986 For the year ended December 31, 2015 the Companys stock options under this method of accounting had an intrinsic value between $0.55 and $0.69 as compared to the year ended December 31, 2014 which had an intrinsic value between $0.03 and $0.17. The Company recognized a stock option expense of $3.50 million, which consists of a $3.37 million change in intrinsic value and $132 thousand in vesting costs for the year ended December 31, 2015. The Company recognized a stock option expense of $97 thousand, which consists of a $0 in intrinsic value and $97 thousand in vesting costs for the year ended December 31, 2014. Traditional Stock Options As of December 31, 2015, the Company has also granted stock option awards under both the 2013 Stock Option Plan and 2015 Equity Incentive Plan since being public. As such, the Company has elected to account for fair value using the Black-Scholes option-pricing model. Expected volatility has been determined using the historical stock price. The expected term of options represents the period of time that options granted are expected to be outstanding giving consideration to vesting schedule. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected term of the stock options. The Company has not paid and does not anticipate paying dividends on its common stock; therefore, the expected dividend yield is assumed to be zero. The Companys currently issued stock options utilizing this method of accounting vest 25% each year over 4 years and are exercisable for a period of 10 years. The Companys stock option activity under this method of accounting is as follows: Options Weighted Average Price Intrinsic Value Balance, December 31, 2013 $ $ $ Granted Exercised Forfeited Balance, December 31, 2014 Granted 337,750 Exercised Forfeited Balance, December 31, 2015 337,750 $ 0.56 $ 0.26 Exercisable at December 31, 2015 Vested at December 31, 2015 $ $ The following table summarizes information about stock options outstanding under this method of accounting at December 31, 2015: OUTSTANDING VESTED Weighted Remaining Weighted Remaining Average Contractual Aggregate Average Contractual Aggregate Exercise Life Intrinsic Exercise Life Intrinsic Options Price in Years Value Options Price in Years Value 157,750 $ 0.30 9.00 $ 82,030 $ $ 20,000 $ 0.50 9.27 $ 6,400 $ $ 100,000 $ 0.80 9.94 $ 2,000 $ $ 60,000 $ 0.84 9.54 $ (1,200 ) $ $ For the year ended December 31, 2015 the Companys stock options under this method of accounting had an intrinsic value between ($0.02) and $0.52 as compared to the year ended December 31, 2014 which had no outstanding options under this plan. The Company recognized a stock option expense under this plan of $20 thousand and zero for the years ended December 31, 2015 and December 31, 2014, respectively. |
9. Income Taxes
9. Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The components of the provision for income tax expense are as follows: Year Ended December 31, 2015 2014 Current: Federal $ $ State 14,875 3,843 Foreign 6,691 6,307 21,566 10,150 Deferred: Federal 77,428 (70,849 ) State 4,075 (10,654 ) 81,503 (81,503 ) Total provision (benefit) for income taxes $ 103,069 $ (71,353 ) The Company is subject to United States federal and state income taxes at an approximate rate of 38.25%. The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Companys income tax expense as reported is as follows: Year Ended December 31, 2015 2014 Statutory tax rate 38.25% 38.25% Permanent differences (3.00% ) 84.52% Stock options 0.00% 0.00% Foreign tax rate differential 0.10% 11.11% Prior year true up (0.15% ) 0.00% Valuation allowance (37.49% ) (373.25% ) Total (2.29% ) (261.59% ) Deferred tax assets consist of the following at: Year Ended December 31, 2015 2014 Deferred tax assets: Net operating loss carryforward $ 339,052 $ 64,544 Temporary differences 5,678 16,959 Stock-based compensation 1,715,623 377,833 Total gross deferred tax assets 2,060,354 459,336 Less: valuation allowance (2,060,354 ) (384,140 ) Net deferred tax assets $ $ 75,196 At December 31, 2015, the Company had federal net operating losses of approximately $886 thousand which will begin to expire in 2029 and could be subject to certain limitations under section 382 of the Internal Revenue Code. The Company has provided a valuation allowance at December 31, 2015 and 2014 of $2,060,354 and $384,140 respectively for its net deferred tax assets as it cannot conclude it is more likely than not all of the estimated net deferred tax assets will be realized. The valuation allowance increased by $1,676,214 and decreased $24,082 in 2015 and 2014, respectively. As of December 31, 2015 and 2014, the Company did not have any unrecognized tax benefits. The Company's policy is to recognize interest and penalties related to income tax matters in income tax expense. The Company currently has no federal or state tax examinations in progress nor has it had any federal or state tax examinations since its inception. |
10. Related Party Transactions
10. Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | The Company had advances outstanding to the current President in the amount of $0 and $6,000 as of December 31, 2015 and December 31, 2014 respectively. |
11. Commitments and Contingenci
11. Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Operating leases The Company has multiple operating leases for office space as of December 31, 2015. The non-cancelable leases are either month to month or expire no later than January 31, 2018. Base monthly payments are as follows: Year Amount 2016 $ 98,602 2017 7,924 2018 446 Total $ 106,972 Legal proceedings The Company is subject to legal proceedings and claims that arise in the ordinary course of business. In the opinion of management the ultimate liability with respect to current proceedings and claims will not have a material adverse effect upon the Companys financial position or results of operations. We know of no material, active or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to our interest. |
12. Segment Information
12. Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | The Company has considered required disclosures as it pertains to operating segments. As of December 31, 2015 we did not meet any of the quantitative thresholds requiring disclosure. As operations relating to our mortgage origination services develop in future periods Management will continue to assess the required disclosure. The geographic segment information provided below is classified based on the geographic location of the Companys subsidiaries. For the year ended Dec 31, 2015 US CANADA TOTAL Net revenues $ 21,429,987 $ 1,436,800 $ 22,866,787 Total assets 1,026,652 230,064 1,256,715 Net property and equipment 110,195 110,195 For the year ended Dec 31, 2014 Net revenues $ 12,936,231 $ 432,654 $ 13,368,885 Total assets 748,655 164,515 913,170 Net property and equipment 79,393 79,393 |
13. Subsequent Events
13. Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | As of March 15, 2016, management does not believe there are any subsequent events requiring recognition or disclosure to either the financial statements or notes to the financial statements. |
2. Summary of Significant Acc21
2. Summary of Significant Accounting Principles (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of presentation and fiscal year | Basis of presentation and fiscal year The accompanying audited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP), and are expressed in US dollars. The Companys fiscal year end is December 31. We may have reclassified certain amounts in prior-period financial statements to conform to the current periods presentation. |
Principles of consolidation | Principles of consolidation The accompanying consolidated financial statements include the accounts of eXp Realty International Corporation and its subsidiaries eXp Acquisition Corp; First Cloud Mortgage, Inc.; eXp Realty Associates, LLC; eXp Realty, LLC; eXp Realty of California, Inc.(formerly eXp Realty Washington, Inc.); eXp Realty of Canada, Inc.; and eXp Realty of Connecticut, LLC. All inter-company accounts and transactions have been eliminated upon consolidation. |
Non-controlling interests | Non-controlling interests Non-controlling interests in the Companys subsidiaries are reported as a component of equity, separate from the parent companys equity. Results of operations attributable to the non-controlling interests are included in the Companys condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (loss). On July 23, 2015 the Company formed First Cloud Mortgage, Inc. of which it holds an 80.5% majority and controlling interest. The other 19.5% non-controlling interests are owned by First Cloud Mortgage, Inc.s President and its Vice President. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related provisions for doubtful accounts, legal contingencies, income taxes, revenue recognition, stock-based compensation, expense accruals, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Companys estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. |
Restricted cash | Restricted cash The Companys restricted cash balance of $148,613 and $141,508 at December 31, 2015 and 2014, respectively, consists of cash held by our brokers and agents on behalf real estate buyers that are in escrow. Since the Company does not have rights to the cash a corresponding customer deposit liability in the same amounts are recognized in the consolidated balance sheets. When a sales transaction closes the restricted cash transfers to the sellers and the corresponding deposit liability is reduced. |
Fair value | Fair value The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The methodology establishes consistency and comparability by providing a fair value hierarchy that prioritizes the inputs to valuation techniques into three broad levels, which are described below: · Level 1 inputs are quoted market prices in active markets for identical assets or liabilities (these are observable market inputs). · Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability (includes quoted market prices for similar assets or identical or similar assets in markets in which there are few transactions, prices that are not current or prices that vary substantially). · Level 3 inputs are unobservable inputs that reflect the entity's own assumptions in pricing the asset or liability (used when little or no market data is available). The Company's financial instruments, including cash, accounts receivable, restricted cash, accounts payable, accrued expenses and other current liabilities are carried at cost, which approximates their fair value due to the short-term maturity of these instruments. |
Concentration of credit risk, significant customers, and significant suppliers | Concentration of credit risk, significant customers, and significant suppliers Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, accounts receivable and restricted cash. The Company deposits its cash with financial institutions that management believes to be of high credit quality, and these deposits may, on occasion, exceed federally insured limits. A portion of the Companys accounts receivable are derived from non-commission based technology fees. These accounts receivable are typically unsecured. Allowances for doubtful accounts are estimated based on historically collection experience and periodically reviewed by management. For the periods presented we did not experience any material bad debts. |
Foreign currency translation | Foreign currency translation Management has adopted ASC 830, Foreign Currency Translation Matters as it pertains to its foreign currency translation. The Companys functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. |
Property and equipment | Property and equipment Property and equipment are stated at cost. Depreciation and amortization is computed using the straight-line method over the estimated useful lives. Computer hardware and software: 3 to 5 years Furniture, fixtures and equipment: 5 to 7 years Maintenance and repairs are expensed as incurred. Expenditures that substantially increase an assets useful life or improve an assets functionality are capitalized. |
Impairment of long-lived assets | Impairment of long-lived assets In accordance with the accounting guidance for the impairment or disposal of long-lived assets, the Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost of disposal. As of the years ending December 31, 2015 and 2014, the Company has not recorded any charges for impairment of long-lived assets. |
Stock-based compensation | Stock-based compensation Stock-based compensation costs, consisting of restricted stock and options, for eligible employees, directors, and contractors are measured at fair value on the date of grant and are expensed over the requisite service period using a straight line method for each award. |
Revenue recognition | Revenue recognition Revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service has been delivered, and collectability of the resulting receivable is reasonably assured. Commission Revenue The Company derives the majority of its revenue from commissions earned as agents in residential real estate transactions. Commission revenue is recognized upon closing of a transaction, net of any rebate or commission discount or transaction fee adjustment. Other commission revenue is generated from company leads, referrals, and other related fees. Non-Commission Revenue Non-commission revenues are derived primarily from agent and broker training fees, known as eXp University tuition and technology fees. Technology fee revenues are recognized over the term of the agreements as the contracted services are delivered. |
Advertising costs | Advertising costs Advertising costs are generally expensed in the period incurred. Advertising expenses are included in the sales and marketing expense line item on the Companys Consolidated Statements of Operations, were approximately $164 thousand and $60 thousand for the years ending December 31, 2015 and 2014, respectively. |
Income taxes | Income taxes Deferred tax assets and liabilities arise from the differences between the tax basis of an asset or liability and its reported amount in the financial statements as well as from net operating loss and tax credit carry forwards. The measurement of current and deferred tax assets and liabilities is based on provisions of enacted tax laws; the effects of future changes in tax laws or rates are not anticipated. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense or benefit is the tax payable or refundable, respectively, for the period adjusted for the change during the period in deferred tax assets and liabilities. For U.S. income tax returns, the open taxation years subject to examination range from 2012 to 2015. In certain circumstances, the U.S. federal statute of limitations can reach beyond the standard three year period. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) comprised of foreign currency loss of $7,571 and $1,542 for the years ended December 31, 2015 and 2014, respectively. |
Net income (loss) per share | Net income (loss) per share Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of shares of common stock outstanding plus, if dilutive, potential common shares outstanding during the period. Potential common shares are composed of incremental shares of common stock issuable upon the exercise of potentially dilutive stock options. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. The objective of this update is to 1) remove inconsistencies and weaknesses in revenue requirements, 2) provide a robust framework for addressing revenue recognition issues, 3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets 4) provide more useful information to users of financial statements through improved disclosure requirements, and 5) simplify the preparation of financial statements. This update is effective in annual reporting periods beginning after December 15, 2017 and the interim periods within that year. The Company will be evaluating the impact of this update as it pertains to the Companys financial statements and other required disclosures on an on-going basis until its eventual adoption and incorporation. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. Under the new guidance a lessee will be required to recognize assets and liabilities for leases with lease terms more than 12 months, whether that lease be classified as a capital or operating lease. This update is effective in annual reporting periods beginning after December 15, 2018 and the interim periods within that year. The Company will be evaluating the impact of this update as it pertains to the Companys financial statements and other required disclosures on an on-going basis until its eventual adoption and incorporation. |
3. Prepaid and Other Current 22
3. Prepaid and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid and other current assets | Prepaid and other current assets consisted of the following: Year Ended December 31, 2015 2014 Prepaid expenses $ 63,611 $ 52,573 Prepaid insurance 2,905 8,125 Rent deposits 15,478 11,518 Other assets 2,457 2,457 $ 84,451 $ 74,673 |
4. Property and Equipment (Tabl
4. Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Year Ended December 31, 2015 2014 Computer hardware and software $ 143,127 $ 96,935 Furniture, fixture and equipment 5,910 5,910 Total depreciable property and equipment 149,037 102,845 Less: accumulated depreciation and amortization (49,757 ) (23,452 ) Depreciable property, net 99,280 79,393 Assets under development 10,915 Property and equipment, net $ 110,195 $ 79,393 |
5. Accrued Expenses (Tables)
5. Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | Year Ended December 31, 2015 2014 Commissions payable $ 282,525 $ 115,090 Payroll payable 51,669 43,544 Vacation payable 37,360 27,703 Taxes payable 33,891 14,833 Other accrued expenses 20,168 6,153 $ 425,613 $ 207,323 |
6. Notes Payable (Tables)
6. Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Year Ended December 31, 2015 2014 Note Description Note payable due to an individual, 3% interest compounding annually, principal and interest paid any-time prior to April 21, 2015 at the Companys option. $ $ 61,887 Total notes payable 61,887 Less: current portion (61,887 ) Notes payable, net of current portion $ $ |
8. Stock Based Compensation (Ta
8. Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intrinsic Value Options [Member] | |
Stock option activity | Options Weighted Average Price Intrinsic Value Balance, December 31, 2013 7,674,000 $ 0.14 $ 0.16 Granted Exercised Forfeited (462,521 ) Balance, December 31, 2014 7,211,479 0.15 0.17 Granted Exercised Forfeited (267,979 ) Balance, December 31, 2015 6,943,500 $ 0.14 $ 0.68 Exercisable at December 31, 2015 4,551,660 0.13 0.69 Vested at December 31, 2015 6,483,390 $ 0.14 $ 0.68 |
Summary of stock options outstanding | OUTSTANDING VESTED Weighted Remaining Weighted Remaining Average Contractual Aggregate Average Contractual Aggregate Exercise Life Intrinsic Exercise Life Intrinsic Options Price in Years Value Options Price in Years Value 5,411,753 $ 0.13 6.70 $ 3,716,070 5,203,518 $ 0.13 6.70 $ 3,573,082 808,748 $ 0.14 7.00 $ 551,027 685,350 $ 0.14 7.00 $ 466,952 315,000 $ 0.15 7.00 $ 212,100 315,000 $ 0.15 7.00 $ 212,100 33,000 $ 0.20 7.00 $ 20,460 24,727 $ 0.20 7.00 $ 15,331 375,000 $ 0.27 7.28 $ 207,500 254,795 $ 0.27 7.28 $ 140,986 |
Traditional Stock Options [Member] | |
Stock option activity | Options Weighted Average Price Intrinsic Value Balance, December 31, 2013 $ $ $ Granted Exercised Forfeited Balance, December 31, 2014 Granted 337,750 Exercised Forfeited Balance, December 31, 2015 337,750 $ 0.56 $ 0.26 Exercisable at December 31, 2015 Vested at December 31, 2015 $ $ |
Summary of stock options outstanding | OUTSTANDING VESTED Weighted Remaining Weighted Remaining Average Contractual Aggregate Average Contractual Aggregate Exercise Life Intrinsic Exercise Life Intrinsic Options Price in Years Value Options Price in Years Value 157,750 $ 0.30 9.00 $ 82,030 $ $ 20,000 $ 0.50 9.27 $ 6,400 $ $ 100,000 $ 0.80 9.94 $ 2,000 $ $ 60,000 $ 0.84 9.54 $ (1,200 ) $ $ |
9. Income Taxes (Tables)
9. Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense | Year Ended December 31, 2015 2014 Current: Federal $ $ State 14,875 3,843 Foreign 6,691 6,307 21,566 10,150 Deferred: Federal 77,428 (70,849 ) State 4,075 (10,654 ) 81,503 (81,503 ) Total provision (benefit) for income taxes $ 103,069 $ (71,353 ) |
Reconciliation of provision for income taxes | Year Ended December 31, 2015 2014 Statutory tax rate 38.25% 38.25% Permanent differences (3.00% ) 84.52% Stock options 0.00% 0.00% Foreign tax rate differential 0.10% 11.11% Prior year true up (0.15% ) 0.00% Valuation allowance (37.49% ) (373.25% ) Total (2.29% ) (261.59% ) |
Schedule of deferred tax assets | Year Ended December 31, 2015 2014 Deferred tax assets: Net operating loss carryforward $ 339,052 $ 64,544 Temporary differences 5,678 16,959 Stock-based compensation 1,715,623 377,833 Total gross deferred tax assets 2,060,354 459,336 Less: valuation allowance (2,060,354 ) (384,140 ) Net deferred tax assets $ $ 75,196 |
11. Commitments and Contingen28
11. Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future operating lease payments | Year Amount 2016 $ 98,602 2017 7,924 2018 446 Total $ 106,972 |
12. Segment Information (Tables
12. Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment information | For the year ended Dec 31, 2015 US CANADA TOTAL Net revenues $ 21,429,987 $ 1,436,800 $ 22,866,787 Total assets 1,026,652 230,064 1,256,715 Net property and equipment 110,195 110,195 For the year ended Dec 31, 2014 Net revenues $ 12,936,231 $ 432,654 $ 13,368,885 Total assets 748,655 164,515 913,170 Net property and equipment 79,393 79,393 |
2. Summary of Significant Acc30
2. Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted cash | $ 148,613 | $ 141,508 |
Impairment of long lived assets | 0 | 0 |
Advertising expense | 164,000 | 60,000 |
Foreign currency loss | $ (7,571) | $ (1,542) |
First Cloud Mortgage [Member] | ||
Equity interest owned | 80.50% | |
Computer Equipment [Member] | ||
Property and equipment useful lives | 3 to 5 years | |
Furniture and Fixtures [Member] | ||
Property and equipment useful lives | 5 to 7 years |
3. Prepaid and Other Current 31
3. Prepaid and Other Current Assets (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 63,611 | $ 52,573 |
Prepaid insurance | 2,905 | 8,125 |
Rent deposits | 15,478 | 11,518 |
Other assets | 2,457 | 2,457 |
Prepaid and other current assets | $ 84,451 | $ 74,673 |
4. Property and Equipment (Deta
4. Property and Equipment (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Property and equipment, gross | $ 149,037 | $ 102,845 |
Less: accumulated depreciation and amortization | (49,757) | (23,452) |
Depreciable property, net | 99,280 | 79,393 |
Assets under development | 10,915 | 0 |
Property and equipment, net | 110,195 | 79,393 |
Computer hardware and software [Member] | ||
Property and equipment, gross | 143,127 | 96,935 |
Furniture, fixtures and equipment [Member] | ||
Property and equipment, gross | $ 5,910 | $ 5,910 |
4. Property and Equipment (De33
4. Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 26,304 | $ 14,493 |
5. Accrued Expenses (Details)
5. Accrued Expenses (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Commissions payable | $ 282,525 | $ 115,090 |
Payroll payable | 51,669 | 43,544 |
Vacation payable | 37,360 | 27,703 |
Taxes payable | 33,891 | 14,833 |
Other accrued expenses | 20,168 | 6,153 |
Total accrued expenses | $ 425,613 | $ 207,323 |
6. Notes Payable (Details)
6. Notes Payable (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Note payable, gross | $ 0 | $ 61,887 |
Less: current portion | $ 0 | (61,887) |
Notes payable, net of current portion | $ 0 |
6. Notes Payable (Details Narra
6. Notes Payable (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Notes Payable Details Narrative | ||
Interest expense | $ 1,127 | $ 942 |
7. Stockholders' Equity (Detail
7. Stockholders' Equity (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Repurchase and retirement of shares, value | $ 3,132 | $ 0 |
Stock issued for compensation, value | $ 1,293,077 | $ 136,494 |
Consultants and Directors [Member] | ||
Stock issued for compensation, shares | 1,613,816 | |
Stock issued for compensation, value | $ 1,293,077 | |
Common Stock [Member] | ||
Repurchase and retirement of shares, shares | 12,530 | |
Repurchase and retirement of shares, value | $ 3,132 |
8. Stock Based Compensation - O
8. Stock Based Compensation - Option Activity (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Intrinsic Value Options [Member] | ||
Options | ||
Beginning balance | 7,211,479 | 7,674,000 |
Granted | 0 | 0 |
Exercised | 0 | 0 |
Forfeited | (267,979) | (462,521) |
Ending balance | 6,943,500 | 7,211,479 |
Exercisable | 4,551,660 | |
Vested | 6,483,390 | |
Weighted Average Price | ||
Beginning balance | $ 0.15 | $ 0.14 |
Granted | ||
Exercised | ||
Forfeited | ||
Ending balance | $ 0.14 | $ 0.15 |
Exercisable | .13 | |
Vested | .14 | |
Intrinsic Value | ||
Beginning balance | 0.17 | $ 0.16 |
Granted | ||
Forfeited | ||
Ending balance | 0.68 | $ 0.17 |
Exercisable | 0.69 | |
Vested | $ 0.68 | |
Traditional Stock Options [Member] | ||
Options | ||
Beginning balance | 0 | 0 |
Granted | 337,750 | 0 |
Exercised | 0 | 0 |
Forfeited | 0 | 0 |
Ending balance | 337,750 | 0 |
Exercisable | 0 | |
Vested | 0 | |
Weighted Average Price | ||
Beginning balance | ||
Granted | ||
Exercised | ||
Forfeited | ||
Ending balance | $ 0.56 | |
Exercisable | ||
Vested | ||
Intrinsic Value | ||
Beginning balance | $ .026 | |
Granted | ||
Forfeited | ||
Ending balance | $ 0 | $ .026 |
Exercisable | ||
Vested |
8. Stock Based Compensation (De
8. Stock Based Compensation (Details-Outstanding and Vested Options) | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Option 1 [Member] | Intrinsic Value Options [Member] | |
Options outstanding | shares | 5,411,753 |
Weighted average exercise price, options outstanding | $ / shares | $ 0.13 |
Remaining contractual life, options outstanding | 6 years 8 months 12 days |
Aggregate intrinsic value, options outstanding | $ | $ 3,716,070 |
Options vested | shares | 5,203,518 |
Weighted average exercise price, options vested | $ / shares | $ .13 |
Remaining contractual life, options vested | 6 years 8 months 12 days |
Aggregate intrinsic value, options vested | $ | $ 3,573,082 |
Option 1 [Member] | Traditional Stock Options [Member] | |
Options outstanding | shares | 157,750 |
Weighted average exercise price, options outstanding | $ / shares | $ .30 |
Remaining contractual life, options outstanding | 9 years |
Aggregate intrinsic value, options outstanding | $ | $ 82,030 |
Options vested | shares | |
Weighted average exercise price, options vested | $ / shares | |
Aggregate intrinsic value, options vested | $ | |
Option 2 [Member] | Intrinsic Value Options [Member] | |
Options outstanding | shares | 808,748 |
Weighted average exercise price, options outstanding | $ / shares | $ 0.14 |
Remaining contractual life, options outstanding | 7 years |
Aggregate intrinsic value, options outstanding | $ | $ 551,027 |
Options vested | shares | 685,350 |
Weighted average exercise price, options vested | $ / shares | $ .14 |
Remaining contractual life, options vested | 7 years |
Aggregate intrinsic value, options vested | $ | $ 466,952 |
Option 2 [Member] | Traditional Stock Options [Member] | |
Options outstanding | shares | 20,000 |
Weighted average exercise price, options outstanding | $ / shares | $ 0.50 |
Remaining contractual life, options outstanding | 9 years 3 months 7 days |
Aggregate intrinsic value, options outstanding | $ | $ 6,400 |
Options vested | shares | |
Weighted average exercise price, options vested | $ / shares | |
Aggregate intrinsic value, options vested | $ | |
Option 3 [Member] | Intrinsic Value Options [Member] | |
Options outstanding | shares | 315,000 |
Weighted average exercise price, options outstanding | $ / shares | $ 0.15 |
Remaining contractual life, options outstanding | 7 years |
Aggregate intrinsic value, options outstanding | $ | $ 212,100 |
Options vested | shares | 315,000 |
Weighted average exercise price, options vested | $ / shares | $ .15 |
Remaining contractual life, options vested | 7 years |
Aggregate intrinsic value, options vested | $ | $ 212,100 |
Option 3 [Member] | Traditional Stock Options [Member] | |
Options outstanding | shares | 100,000 |
Weighted average exercise price, options outstanding | $ / shares | $ 0.80 |
Remaining contractual life, options outstanding | 9 years 11 months 8 days |
Aggregate intrinsic value, options outstanding | $ | $ 2,000 |
Options vested | shares | |
Weighted average exercise price, options vested | $ / shares | |
Aggregate intrinsic value, options vested | $ | |
Option 4[Member] | Intrinsic Value Options [Member] | |
Options outstanding | shares | 33,000 |
Weighted average exercise price, options outstanding | $ / shares | $ 0.20 |
Remaining contractual life, options outstanding | 7 years |
Aggregate intrinsic value, options outstanding | $ | $ 20,460 |
Options vested | shares | 24,727 |
Weighted average exercise price, options vested | $ / shares | $ .20 |
Remaining contractual life, options vested | 7 years |
Aggregate intrinsic value, options vested | $ | $ 15,331 |
Option 4[Member] | Traditional Stock Options [Member] | |
Options outstanding | shares | 60,000 |
Weighted average exercise price, options outstanding | $ / shares | $ 0.84 |
Remaining contractual life, options outstanding | 9 years 6 months 14 days |
Aggregate intrinsic value, options outstanding | $ | $ (1,200) |
Options vested | shares | |
Weighted average exercise price, options vested | $ / shares | |
Aggregate intrinsic value, options vested | $ | |
Option 5 [Member] | Intrinsic Value Options [Member] | |
Options outstanding | shares | 375,000 |
Weighted average exercise price, options outstanding | $ / shares | $ 0.27 |
Remaining contractual life, options outstanding | 7 years 3 months 11 days |
Aggregate intrinsic value, options outstanding | $ | $ 207,500 |
Options vested | shares | 254,795 |
Weighted average exercise price, options vested | $ / shares | $ .27 |
Remaining contractual life, options vested | 7 years 3 months 11 days |
Aggregate intrinsic value, options vested | $ | $ 140,986 |
8. Stock Based Compensation (40
8. Stock Based Compensation (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Stock option expense | $ 3,497,491 | $ 96,604 |
Stock Options [Member] | Intrinsic Value Options [Member] | ||
Intrinsic value range, per share | $0.55 and $0.69 | $0.03 and $0.17 |
Stock option expense | $ 3,500,000 | $ 97,000 |
Stock Options [Member] | Intrinsic Value Options [Member] | Change in Intrinsic Value [Member] | ||
Stock option expense | 33,370,000 | 0 |
Stock Options [Member] | Intrinsic Value Options [Member] | Vesting Costs [Member] | ||
Stock option expense | $ 132,000 | $ 97,000 |
Stock Options [Member] | Traditional Stock Options [Member] | ||
Intrinsic value range, per share | $(0.02) and $0.52 | No outstanding options |
Stock option expense | $ 20,000 | $ 0 |
9. Income Taxes (Details-Provis
9. Income Taxes (Details-Provision for income taxes) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | 14,875 | 3,843 |
Foreign | 6,691 | 6,307 |
Total Current | 21,566 | 10,150 |
Deferred: | ||
Federal | 77,428 | (70,849) |
State | 4,075 | (10,654) |
Total Deferred | 81,503 | (81,503) |
Total provision (benefit) for income taxes | $ 103,069 | $ (71,353) |
9. Income Taxes (Details-Federa
9. Income Taxes (Details-Federal Statutory Rate) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Federal Statutory Tax Rate | 38.25% | 38.25% |
Permanent differences | (3.00%) | 84.52% |
Stock options | 0.00% | 0.00% |
Foreign tax rate differential | 0.10% | 11.11% |
Prior year true up | (0.15%) | 0.00% |
Valuation allowance | (37.49%) | (373.25%) |
Total Tax Expense | (2.29%) | (261.59%) |
9. Income Taxes (Details-Deferr
9. Income Taxes (Details-Deferred Tax Assets) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets: | ||
Net operating loss carry-forwards | $ 339,052 | $ 64,544 |
Temporary differences | 5,678 | 16,959 |
Stock based compensation | 1,715,623 | 377,833 |
Gross deferred tax assets | 2,060,354 | 459,336 |
Less Valuation Allowance | (2,060,354) | (384,140) |
Net Deferred Tax Asset | $ 0 | $ 75,196 |
9. Income Taxes (Details Narrat
9. Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Federal net operating loss | $ 886,000 | |
Net operating loss expiration date | Dec. 31, 2029 | |
Change in valuation allowance | $ 1,676,214 | $ (24,082) |
Unrecognized tax benefits | $ 0 |
10. Related Party Transactions
10. Related Party Transactions (Details Narrative) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Due from related parties | $ 0 | $ 6,000 |
President [Member] | ||
Due from related parties | $ 0 | $ 6,000 |
11. Commitments and Contingen46
11. Commitments and Contingencies (Details) | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Future operating lease expense 2016 | $ 98,602 |
Future operating lease expense 2017 | 7,924 |
Future operating lease expense 2018 | 446 |
Operating lease expense | $ 106,972 |
12. Segment Information (Detail
12. Segment Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net revenues | $ 22,866,787 | $ 13,368,905 |
Total assets | 1,256,716 | 913,170 |
Net property and equipment | 110,195 | 79,393 |
UNITED STATES | ||
Net revenues | 21,429,987 | 12,936,231 |
Total assets | 1,026,652 | 748,655 |
Net property and equipment | 110,195 | 79,393 |
CANADA | ||
Net revenues | 1,436,800 | 432,654 |
Total assets | 230,064 | 164,515 |
Net property and equipment | $ 0 | $ 0 |