Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 15, 2018 | Jun. 30, 2017 | |
Document And Entity Information | |||
Entity Registrant Name | EXP World Holdings, Inc. | ||
Entity Central Index Key | 1,495,932 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 41,069,787 | ||
Entity Common Stock, Shares Outstanding | 56,100,047 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 4,672,034 | $ 1,684,608 |
Restricted cash | 923,193 | 481,704 |
Accounts receivable, net of allowance $179,759 and $133,845, and 2,342, respectively | 6,912,657 | 3,015,767 |
Prepaids and other assets | 591,034 | 383,563 |
TOTAL CURRENT ASSETS | 13,098,918 | 5,565,642 |
OTHER ASSETS | ||
Fixed assets, net | 1,538,213 | 538,405 |
TOTAL OTHER ASSETS | 1,538,213 | 538,405 |
TOTAL ASSETS | 14,637,131 | 6,104,047 |
CURRENT LIABILITIES | ||
Accounts payable | 635,087 | 317,420 |
Customer deposits | 923,193 | 481,704 |
Accrued expenses | 8,818,180 | 2,742,119 |
Notes payable | 0 | 35,778 |
TOTAL CURRENT LIABILITIES | 10,376,460 | 3,577,021 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common Stock, $0.00001 par value 220,000,000 shares authorized; 54,962,535 and 52,316,679 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively | 550 | 523 |
Additional paid-in capital | 36,848,041 | 12,987,707 |
Accumulated deficit | (32,596,374) | (10,465,409) |
Accumulated other comprehensive (loss) | 8,454 | 4,205 |
Total eXp World Holdings, Inc. stockholders' equity | 4,260,671 | 2,527,026 |
Non-controlling interest in subsidiary | 0 | 0 |
TOTAL STOCKHOLDERS' EQUITY | 4,260,671 | 2,527,026 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 14,637,131 | $ 6,104,047 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 179,759 | $ 133,845 |
Common stock shares authorized | 220,000,000 | 220,000,000 |
Common stock par value | $ .00001 | $ 0.00001 |
Common stock shares issued | 54,962,535 | 52,316,679 |
Common stock shares outstanding | 54,962,535 | 52,316,679 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||||||||||||
Net Revenues | $ 47,371,745 | $ 38,980,941 | $ 21,528,183 | $ 15,678,677 | $ 13,083,827 | $ 6,986,983 | $ 7,309,858 | $ 5,491,107 | $ 156,104,544 | $ 53,555,725 | $ 22,464,306 | |
Operating expenses | ||||||||||||
Cost of revenues | 42,903,624 | 34,740,874 | 18,960,135 | 13,469,464 | 11,345,050 | 5,989,924 | 6,275,403 | 4,688,275 | $ 2,801,973 | 139,603,970 | 46,438,944 | 19,125,565 |
General and administrative | 9,175,260 | 5,692,648 | 4,775,881 | 3,587,789 | 2,005,679 | 1,290,012 | 855,440 | 1,717,756 | 748,062 | 35,685,512 | 13,272,746 | 4,543,776 |
Professional fees | 223,811 | 318,383 | 364,460 | 140,804 | 130,018 | 143,375 | 138,001 | 98,832 | 76,603 | 1,274,675 | 645,024 | 439,763 |
Sales and marketing | 380,452 | 348,823 | 301,222 | 158,958 | 122,285 | 77,143 | 77,011 | 43,006 | 46,357 | 1,572,041 | 570,844 | 211,456 |
Total expenses | 52,683,147 | 41,100,728 | 24,401,698 | 17,357,026 | 13,603,032 | 7,500,454 | 7,345,855 | 6,547,869 | 3,672,995 | 178,136,198 | 60,927,558 | 24,320,560 |
Net loss from operations | (5,311,402) | (2,119,787) | (2,873,515) | (1,521,790) | (519,205) | (513,471) | (35,997) | (1,056,762) | (299,525) | (22,031,654) | (7,371,833) | (1,856,254) |
Other income and (expenses) | ||||||||||||
Other income | 0 | 0 | 0 | (432) | 439 | 7 | 319 | 2,897 | 3,686 | 0 | 15 | 23 |
Interest expense | (58) | (3,762) | (1,715) | 0 | 0 | 0 | (202) | (464) | (461) | (2,077) | (370) | (1,127) |
Total other income and (expenses) | (58) | (3,762) | (1,715) | (432) | 439 | 7 | 117 | 2,433 | 3,225 | (2,077) | (355) | (1,104) |
Loss before income tax expense | (5,311,460) | (2,123,548) | (2,875,230) | (1,522,222) | (518,766) | (513,464) | (35,880) | (1,054,329) | (296,300) | (22,033,731) | (7,372,188) | (1,857,358) |
Income tax expense | (3,277) | (23,747) | (24,591) | (7,444) | (13,968) | (11,603) | (1,244) | (7,080) | (18,643) | (97,234) | (42,528) | (103,069) |
Net loss | (5,314,737) | (2,147,296) | (2,899,821) | (1,529,666) | (532,734) | (525,067) | (37,124) | (1,061,409) | (314,943) | (22,130,965) | (7,414,716) | (1,960,427) |
Net loss attributable to non-controlling interest in subsidiary | 0 | 0 | 0 | 8,613 | 6,720 | 5,580 | 7,388 | 0 | 0 | 0 | 29,801 | 21,526 |
Net loss attributable to common shareholders | $ (5,314,737) | $ (2,147,296) | $ (2,899,821) | $ (1,521,053) | $ (526,014) | $ (519,487) | $ (29,736) | $ (1,061,409) | $ (314,943) | $ (22,130,965) | $ (7,384,915) | $ (1,938,901) |
Net loss per share attributable to common sharesholders - Basic from continuing operations | $ (0.10) | $ (0.04) | $ (0.05) | $ (0.03) | $ (0.01) | $ (0.02) | $ 0 | $ (0.02) | $ (0.01) | $ (0.42) | $ (0.14) | $ (0.04) |
Net loss per share attributable to common sharesholders - Diluted from continuing operations | $ (0.10) | $ (0.04) | $ (0.05) | $ (0.03) | $ (0.01) | $ (0.02) | $ (0.01) | $ (0.02) | $ (0.01) | $ (0.42) | $ (0.14) | $ (0.04) |
Weighted average shares outstanding - basic | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,617,769 | 49,714,285 | 49,182,952 | 48,727,385 | 53,194,928 | 51,081,949 | 49,409,266 |
Weighted average shares outstanding - diluted | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,617,769 | 51,163,219 | 49,182,952 | 48,727,385 | 53,194,928 | 51,081,949 | 49,409,266 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (22,130,965) | $ (7,414,716) | $ (1,960,427) |
Other comprehensive loss: | |||
Foreign currency translation adjustments, net of tax | 4,249 | 13,318 | (7,571) |
Comprehensive loss | (22,126,716) | (7,401,398) | (1,967,998) |
Comprehensive loss attributable to non-controlling interest in subsidiary | 0 | 29,801 | 21,526 |
Comprehensive loss attributable to common shareholders | $ (22,126,716) | $ (7,371,597) | $ (1,946,472) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Other Comprehensive Income / Loss | Noncontrolling Interest | Total |
Beginning balance, shares at Dec. 31, 2014 | 48,566,909 | |||||
Beginning balance, value at Dec. 31, 2014 | $ 486 | $ 1,556,315 | $ (1,141,593) | $ (1,542) | $ 0 | $ 413,666 |
Stock compensation expense, shares | 1,192,950 | |||||
Stock compensation expense, value | $ 12 | 1,059,023 | 1,059,035 | |||
Stock option expense | 733,239 | 733,239 | ||||
Agent equity program, shares | 420,866 | |||||
Agent equity program, value | $ 4 | 355,742 | 355,746 | |||
Issuance of subsidiary common stock, value | 1,950 | 1,950 | ||||
Repurchase and retirement of shares, shares | (12,530) | |||||
Repurchase and retirement of shares, value | (3,132) | (3,132) | ||||
Foreign currency translation gain | (7,571) | (7,571) | ||||
Net loss | (1,938,901) | (21,526) | (1,960,427) | |||
Ending balance, shares at Dec. 31, 2015 | 50,168,195 | |||||
Ending balance, value at Dec. 31, 2015 | $ 502 | 3,701,187 | (3,080,494) | (9,113) | (19,576) | |
Stock issued for cash, shares | 184,615 | |||||
Stock issued for cash, value | $ 2 | 532,204 | 532,206 | |||
Exercise of options, shares issued | 159,678 | |||||
Exercise of options, value | $ 2 | 4,898 | 4,900 | |||
Stock compensation expense, shares | 1,018,687 | |||||
Stock compensation expense, value | $ 9 | 4,996,640 | 4,996,649 | |||
Stock option expense | 2,120,726 | 2,120,726 | ||||
Agent equity program, shares | 785,504 | |||||
Agent equity program, value | $ 8 | 1,778,429 | 1,778,437 | |||
Acquisition of non-controlling interest | (146,377) | 49,377 | (97,000) | |||
Foreign currency translation gain | 13,318 | 13,318 | ||||
Net loss | (7,384,915) | (29,801) | (7,414,716) | |||
Ending balance, shares at Dec. 31, 2016 | 52,316,679 | |||||
Ending balance, value at Dec. 31, 2016 | $ 523 | 12,987,707 | (10,465,409) | 4,205 | 0 | 2,527,026 |
Stock issued for cash, value | 142,158 | 142,158 | ||||
Exercise of options, shares issued | 181,572 | |||||
Exercise of options, value | $ 2 | 46,594 | 46,596 | |||
Stock compensation expense, shares | 1,000,594 | |||||
Stock compensation expense, value | $ 10 | 10,961,621 | 10,961,631 | |||
Stock option expense | 6,856,029 | 6,856,029 | ||||
Agent equity program, shares | 1,464,997 | |||||
Agent equity program, value | $ 15 | 5,857,539 | 5,857,554 | |||
Repurchase and retirement of shares, shares | (1,307) | |||||
Repurchase and retirement of shares, value | (3,607) | (3,607) | ||||
Foreign currency translation gain | 4,249 | 4,249 | ||||
Net loss | (22,130,965) | (22,130,965) | ||||
Ending balance, shares at Dec. 31, 2017 | 54,962,535 | |||||
Ending balance, value at Dec. 31, 2017 | $ 550 | $ 36,848,041 | $ (32,596,374) | $ 8,454 | $ 0 | $ 4,260,671 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES | |||
Net loss | $ (22,130,965) | $ (7,414,716) | $ (1,960,427) |
Adjustments to reconcile net loss to cash provided by operating activities: | |||
Depreciation | 353,229 | 58,374 | 26,304 |
Stock compensation expense | 10,961,631 | 4,996,640 | 1,059,035 |
Stock option expense | 6,856,029 | 2,120,726 | 733,239 |
Agent equity program | 5,857,554 | 1,778,429 | 355,746 |
Deferred tax asset | 0 | 0 | 75,196 |
Changes in operating assets and liabilities | |||
Accounts receivable | (3,884,982) | (2,692,198) | (158,617) |
Accounts receivable, related party | 0 | 0 | 6,000 |
Prepaids and other assets | (279,361) | (359,112) | (9,778) |
Restricted cash | (441,489) | (333,091) | (7,105) |
Customer deposits | 441,489 | 333,091 | 7,105 |
Accounts payable | 317,667 | 227,436 | 10,595 |
Accrued expenses | 6,076,062 | 2,308,698 | 218,290 |
Accrued interest | 0 | 0 | (9,397) |
CASH PROVIDED BY OPERATING ACTIVITIES | 4,126,864 | 1,024,277 | 346,186 |
INVESTMENT ACTIVITIES | |||
Acquisition of property and equipment | (1,281,147) | (416,672) | (57,116) |
CASH USED BY INVESTMENT ACTIVITIES | (1,281,147) | (416,672) | (57,116) |
FINANCING ACTIVITIES | |||
Proceeds from issuance of common stock | 142,158 | 600,000 | 0 |
Common stock issuance transaction costs | 0 | (49,980) | 0 |
Proceeds from issuance of subsidiary common stock | 0 | 0 | 1,950 |
Repurchase and retirement of common stock | (3,607) | 0 | (3,132) |
Repurchase and retirement of subsidiary common stock | 0 | (97,000) | 0 |
Proceeds from exercise of options | 46,596 | 4,900 | 0 |
Proceeds from issuance of notes payable | 0 | 53,498 | 0 |
Principal payments of notes payable | (35,778) | (17,720) | (61,877) |
CASH PROVIDED BY FINANCING ACTIVITIES | 149,369 | 493,698 | (63,059) |
Effect of changes in exchange rates on cash and cash equivalents | (7,660) | 11,491 | (7,571) |
Net change in cash and cash equivalents | 2,987,426 | 1,112,794 | 218,440 |
Cash and cash equivalents, beginning of period | 1,684,608 | 571,814 | 353,374 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 4,672,034 | 1,684,608 | 571,814 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS FOR: | |||
Cash paid for interest | 2,077 | 369 | 10,524 |
Cash paid for income taxes | 97,234 | 42,013 | 24,313 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||
Fixed asset purchases in accounts payable | $ 71,890 | $ 69,912 | $ 0 |
1. Basis of Presentation
1. Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | eXp World Holdings, Inc. (the “Company” or “we” or “eXp”) was incorporated in the State of Delaware on July 30, 2008. Through various operating subsidiaries, the Company operates a cloud-based real estate brokerage operating in most U.S. States, the District of Columbia and the provinces of Alberta and Ontario, Canada. The Company focuses on 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. The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and are expressed in U.S. dollars. The Company’s fiscal year end is December 31. We have reclassified certain amounts in prior-period financial statements to conform to the current period’s presentation. The Company has evaluated events and transactions subsequent to the balance sheet date and has disclosed all events or transactions that occurred subsequent to the balance sheet date but prior to filing this Annual Report on Form 10-K that would require recognition or disclosure in the Consolidated Financial Statements. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Principles | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Principles | Principles of consolidation The accompanying audited condensed consolidated financial statements include the accounts of eXp World Holdings, Inc., and its subsidiaries. All inter-company accounts and transactions have been eliminated upon consolidation. Non-controlling interests Non-controlling interests in the Company’s subsidiary are reported as a component of equity, separate from the parent company’s equity. Results of operations attributable to the non-controlling interest are included in the Company’s consolidated statements of operations and consolidated statements of comprehensive income (loss). In the year ended December 31, 2016, the Company acquired the previously outstanding non-controlling interest in First Cloud Mortgage, Inc. Upon obtaining 100% interest, the Company inactivated First Cloud. For the years ended December 31, 2017 and 2016, the activities of First Cloud did not have a material effect on the Company’s consolidated financial position, results of operations, or cash flows. Use of estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to 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 Company’s 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. From time to time, the Company’s cash deposits exceed federally insured limits. The Company has not experienced any losses resulting from these excess deposits. Restricted cash Restricted cash consists of cash held in escrow by the Company’s brokers and agents on behalf of real estate buyers. The Company recognized a corresponding customer deposit liability until the funds are released. Restricted cash totaled $923,193 and $481,704 at December 31, 2017 and 2016, respectively. Fair value measurements ASC 820 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 fair value of cash and cash equivalents, accounts receivable, prepaids and other assets, accounts payable, accrued expenses, and notes payable approximates their carrying value due to their short-term maturities. Allowance for doubtful accounts A portion of the Company’s accounts receivable are derived from non-commission based technology fees. These accounts receivable are typically unsecured. The allowance for doubtful accounts is our estimate based on historical experience. We periodically preform detailed reviews to assess the adequacy of the allowance. We exercise significant judgment in estimating the timing, frequency and severity of losses. The Company typically does not experience material uncollectible accounts. Foreign currency translation The Company’s functional and reporting currency is the United States dollar and the functional currency of the Company’s foreign subsidiaries is the local currency of their country of domicile. 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 does not employ any derivative or hedging strategy to offset the impact of foreign currency fluctuations. Fixed assets Fixed assets 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 asset’s useful life or improve an asset’s functionality are capitalized. The Company capitalizes the costs associated with developing its internal-use cloud-based residential real-estate transaction system. Capitalized costs are primarily related to costs incurred in relation to internally created software during the application development stage including costs for upgrades and enhancements that result in additional functionality. Impairment 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. When assets are considered impaired, 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. Stock based compensation The Company issues equity and equity linked instruments to employees and non-employees in lieu of cash for the receipt of services. Share-based payment transactions with non-employees are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable and expensed in the periods the services are received. We measure expense associated with stock-based awards (usually stock options) to our employees and directors on the date of grant and recognize the corresponding compensation expense of those awards over the requisite service period, which is generally the vesting period of the respective award. We account for stock-based compensation arrangements with non-employees using a fair value approach. The estimated fair value of unvested awards granted to non-employee consultants is remeasured at each reporting date through the date of final vesting. As a result, the non-cash charge to operations for non-employee awards with vesting conditions is affected in each reporting period by changes in the fair value of the Company’s common stock. In prior years, the Company granted stock-based performance awards to certain managing real estate brokers as part of a long-term incentive program with the payout based on the achievement of introducing and retaining real estate agents into the Company to contribute to the overall growth of the Company. Performance awards with non-employees are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable and expensed in the periods the services are received. 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. The majority of our revenue is derived from assisting home buyers and sellers in listing, marketing, selling and purchasing residential real estate. Commissions earned by the Company in residential real estate transactions are recognized upon the closing of a transaction (purchase or sale), commonly referred to as gross commission income, and are presented net of fees and expenses in the accompanying consolidated statement of operations. Real estate agent commissions paid, concurrently recognized with the closing of each transaction, are presented as costs of revenues in the accompanying consolidated statement of operations. 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 accompanying consolidated statements of operations. For the years ended December 31, 2017, 2016 and 2015, the Company incurred advertising expenses of $1,258,334, $503,121, and $163,905, 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 2011 to 2017. Comprehensive income (loss) The Company’s only component of comprehensive income (loss) is foreign currency translation adjustments. 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. Recently issued accounting pronouncements In May 2017, the FASB issued ASU No. 2017-09 - Compensation Scope of Modification Accounting In November 2016, the FASB issued ASU No. 2016-18 – Statement of Cash Flows Statement of Cash Flows In October 2016, the FASB issued ASU No. 2016-16 - Income Taxes In February 2016, the FASB issued ASU No. 2016-02 - Leases In May 2014, the FASB issued ASU No. 2014-09 - Revenue from Contracts with Customers Recently adopted accounting pronouncements In January 2017, the Company implemented accounting treatment as promulgated by FASB as issued in ASU No. 2016-09 Compensation – Stock Compensation |
3. Restatement of Previously Is
3. Restatement of Previously Issued Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
3. Restatement of Previously Issued Financial Statements | The Company has restated its consolidated financial statements as of and for the fiscal years ended December 31, 2016 and December 31, 2015. In addition, the Company has restated its quarterly Consolidated Statements of Operations for each of the first three quarterly periods in fiscal 2017, 2016 and 2015, as presented in Note 13, Unaudited Quarterly Financial Data These errors were discovered by management during the course of its preparation of this Annual Report and the audit of the financial results for fiscal year 2017. The effect of the restatements on the Company’s Balance Sheets is not material and the restatements have no effect on reported cash flow from operations. The nature and impact of these adjustments are described below and detailed in the tables below. Equity-Based Payments During the first quarter of 2018 in preparation of our annual report and financial statement audit, the Company identified an error as a result of applying incorrect accounting guidance for equity-based payments for non-employees in its previously reported Consolidated Statement of Operations. In prior periods, the Company had erroneously accounted for these option grants to non-employees in the same manner that it had accounted for option grants to employees during that same time frame. The error resulted in an overstatement of stock option expense in the amount of $4,514,158 and $264,795 for the years ended December 31, 2016 and December 31, 2015, respectively. The adjustments made to the income statement are set out in the table below. Based on this error, these same equity instruments to non-employees also understated expense in the fiscal year ended December 31, 2014 by $173,859. Accordingly, we restated the ending balance of additional paid in capital and accumulated deficit as of December 31, 2014 on the Consolidated Statements of Stockholders’ Equity. In this same time frame, we identified an error in the accounting treatment for equity grants made to employees as a result of applying incorrect accounting guidance for equity-based payments for employees in its previously reported Consolidated Statement of Operations. In prior periods, the Company had accounted for these option grants to employees using the intrinsic value method. The Company concluded that it should have utilized the calculated value method. The error resulted in an overstatement of stock option expense in the amount of $15,329,588 and $2,499,457 for the years ended December 31, 2016 and December 31, 2015, respectively. The adjustments made to the income statement are set out in the table below. Based on this error, these same equity instruments to employees overstated expense in the fiscal year ended December 31, 2014 by $441,814. Accordingly, we restated the ending balance of additional paid in capital and accumulated deficit as of December 31, 2014 on the Consolidated Statement of Stockholders’ Equity. We also identified an error in the accounting treatment for equity grants made to non-employees in connection with our Agent Growth Incentive Plan. The error was the result of an incorrect application of the equity-based payments for non-employees which requires remeasurement of each award at each reporting date throughout the vesting period. The correction of this error resulted in an understatement of expenses by $1,215,188 and $121,704 for the years ended December 31, 2016 and December 31, 2015, respectively. Based on this error, these same equity grants to non-employees overstated expense in the fiscal year ended December 31, 2014 by $91. Accordingly, we restated the ending balance of additional paid in capital and accumulated deficit as of December 31, 2014 on the Consolidated Statement of Stockholder’s Equity. We previously did not recognize costs associated with a 20% discount to the fair value determined each month when issuing shares under our Agent Equity Program. The restated financial statements now include these additional charges as cost of sales expense in the restated periods. Other Adjustments In addition to the errors described above, the restated financial statements also include adjustments to correct certain other immaterial errors. Specifically, we previously recorded certain agent fees as revenue. These fees should be reported on a net basis as a reduction to the cost of sales expense. The restated financial statements now include the revisions in the restated periods. eXp World Holdings Inc. Consolidated Statement of Operations For the fiscal year ended December 31, 2016 As Previously Reported on Form 10-K Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 54,179,511 – – (623,786 ) $ 53,555,725 Operating expenses Cost of revenues 46,726,533 – 336,197 (623,786 ) 46,438,944 General and administrative 32,237,501 (19,843,746 ) 878,991 – 13,272,746 Professional fees 645,024 – – – 645,024 Sales and marketing 570,844 – – – 570,844 Total expenses 80,179,902 19,843,746 ) 1,215,188 (623,786 ) 60,927,558 Net income (loss) from operations (26,000,391 ) 19,843,746 (1,215,188 ) – (7,371,833 ) Other income 15 – – – 15 Interest expense (370 ) – – – (370 ) Total other income and (expenses) (355 ) – – – (355 ) Net income (loss) from operations before income tax expense (26,000,746 ) 19,843,746 (1,215,188 ) – (7,372,188 ) Income tax expense (42,528 ) – – – (42,528 ) Net income (loss) (26,043,274 ) 19,843,746 (1,215,188 ) – (7,414,716 ) Net loss attributable to non-controlling interest in subsidiary 29,801 – – – 29,801 Net income (loss) attributable to common shareholders $ (26,013,473 ) 19,843,746 (1,215,188 ) – (7,384,915 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.51 ) $ 0.39 $ (0.02 ) $ (0.00 ) $ (0.14 ) Diluted from continuing operations $ (0.51 ) $ 0.39 $ (0.02 ) $ (0.00 ) $ (0.14 ) Weighted average shares outstanding Basic 51,081,949 51,081,949 51,081,949 51,081,949 51,081,949 Diluted 51,081,949 51,081,949 51,081,949 51,081,949 51,081,949 eXp World Holdings Inc. Consolidated Statement of Operations For the fiscal year ended December 31, 2015 As Previously Reported on Form 10-K Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 22,866,787 – – (402,481 ) $ 22,464,306 Operating expenses Cost of revenues 19,456,409 – 71,637 (402,481 ) 19,125,564 General and administrative 7,257,961 (2,764,252 ) 50,067 – 4,543,776 Professional fees 439,763 – – – 439,763 Sales and marketing 211,456 – – – 211,456 Total expenses 27,365,589 (2,764,252 ) 121,704 (402,481 ) 24,320,560 Net income (loss) from operations (4,498,802 ) 2,764,252 (121,704 ) – (1,856,254 ) Other income 23 – – – 23 Interest expense (1,127 ) – – – (1,127 ) Total other income and (expenses) (1,104 ) – – – (1,104 ) Net income (loss) from operations before income tax expense (4,499,906 ) 2,764,252 (121,704 ) – (1,857,358 ) Income tax expense (103,069 ) – – – (103,069 ) Net income (loss) (4,602,975 ) 2,764,252 (121,704 ) – (1,960,427 ) Net loss attributable to non-controlling interest in subsidiary 21,526 – – – 21,526 Net income (loss) attributable to common shareholders $ (4,581,449 ) 2,764,252 (121,704 ) – (1,938,901 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.09 ) $ 0.06 $ (0.00 ) $ (0.00 ) $ (0.04 ) Diluted from continuing operations $ (0.09 ) $ 0.06 $ (0.00 ) $ (0.00 ) $ (0.04 ) Weighted average shares outstanding Basic 49,409,266 49,409,266 49,409,266 49,409,266 49,409,266 Diluted 49,409,266 49,409,266 49,409,266 49,409,266 49,409,266 |
4. Prepaid and Other Current As
4. Prepaid and Other Current Assets | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid and Other Current Assets | Prepaid expenses and other current assets consisted of the following: Year Ended December 31, 2017 2016 Prepaid expenses $ 219,074 $ 199,066 Prepaid insurance 287,244 145,825 Rent deposits 68,196 28,047 Other assets 16,520 10,625 $ 591,034 $ 383,563 |
5. Fixed Assets, Net
5. Fixed Assets, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, Net | Fixed assets, net consisted of the following: Year Ended December 31, 2017 2016 Computer hardware and software $ 1,982,749 $ 219,590 Furniture, fixture and equipment 5,910 5,910 Total depreciable property and equipment 1,988,659 225,500 Less: accumulated depreciation and amortization (450,446 ) (97,216 ) Depreciable property, net 1,538,213 128,284 Assets under development -0- 410,121 Fixed assets, net $ 1,538,213 $ 538,405 Depreciation and amortization expense for the years ended December 31, 2017, and 2016 was $353,229, and $58,374 respectively. |
6. Accrued Expenses
6. Accrued Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consisted of the following: Year Ended December 31, 2017 2016 Commissions payable $ 7,565,357 $ 2,417,621 Payroll payable 749,203 54,402 Vacation payable 283,077 78,294 Taxes payable 99,809 58,714 Other accrued expenses 120,734 133,088 $ 8,818,180 $ 2,742,119 |
7. Debt
7. Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | We have a $500,000 line of credit with a variable interest rate computed on a 360-day year. The variable interest rate is the higher of either 1) the Prime Rate in effect on such day, 2) Daily One Month LIBOR plus one and one-half percent (1.5%), or 3) the Federal Funds Rate plus one and one-half percent (1.5%). The line of credit agreement requires us to comply with various financial covenants as well as customary affirmative and negative covenants that restrict our ability to, among other things, incur debt and liens, make significant investments, dispose of assets and make distributions without prior consent. The line of credit is secured by accounts receivable. The line of credit contains certain financial covenants, including a fixed charge coverage ratio and a tangible net worth. At December 31, 2017, we were in compliance with all of the financial covenants under the line of credit. In 2016, the Company entered into a financing arrangement to fund portions of its insurance premiums. As of December 31, 2016, the Company had a remaining outstanding obligation associated with this funding totaling $35,778, exclusive of accrued interest totaling $1,034, included in the current portion of notes payable in the accompanying consolidated balance sheet. The Company did not have any such financing arrangements as of December 31, 2015 and incurred immaterial interest expense for the year ended then. The Company did not have any such financing arrangements as of December 31, 2017. As of December 31, 2017, we had no amount outstanding under the line of credit. |
8. Stockholders' Equity
8. Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | As of December 31, 2017, the Company had 54,962,535 shares of common stock issued and outstanding. The following provides a detailed description of the stock-based transactions completed during fiscal year 2017 and 2016: During the year ended December 31, 2017, the Company issued the remaining 49,231 shares of common stock to accredited investors following receipt of $160,000 of gross proceeds ($142,158 net of issuance costs) from the Company’s December 2016 private placement. The Company received total gross cash proceeds from the private placement of $760,000. During the year ended December 31, 2017, the Company issued 181,572 shares of common stock upon the exercise of stock options and received cash consideration totaling $46,596 upon payment of the exercise price for the options. During the year ended December 31, 2017, the Company repurchased and retired 1,307 shares of common stock for cash consideration totaling $3,607. During the year ended December 31, 2017, the Company issued 1,464,997 shares of common stock in exchange for services totaling $5,857,554, which includes the expense activity in our 2015 Agent Equity Program. During the year ended December 31, 2017, the Company issued 1,000,594 shares of common stock in exchange for services totaling $10,961,631, which included the expense activity for Real Estate Agent Growth and Other Incentive Programs. During December 2016, the Company issued 184,615 shares of restricted and unregistered shares of common stock to accredited investors in private placement transactions for gross cash proceeds totaling $600,000. In conjunction with the issuance, we incurred expenses of $67,794 (of which $49,980 were paid as of December 31, 2016). During the year ended December 31, 2016, the Company issued 159,678 shares of restricted and unregistered common stock for cash proceeds totaling $4,898 related to the exercise of stock options. During the year ended December 31, 2016, the Company issued a total of 785,504 shares of restricted and unregistered common stock in exchange for services totaling $1,778,429, which included the expense activity in our 2015 Agent Equity Program. During the year ended December 31, 2016, the Company issued 1,018,687 shares of restricted and unregistered common stock in exchange for services totaling $4,996,640, which included the expense for Real Estate Agent Growth and Other Incentive Programs. During the year ended December 31, 2016, the Company paid $97,000 to acquire the 10.6% non-controlling interest in First Cloud Mortgage. As a result of the acquisition, the Company owned 100% of First Cloud Mortgage as of December 31, 2016. During the year ended December 31, 2015, the Company issued 420,866 shares of common stock in exchange for services totaling $352,575, which includes the expense activity in our 2015 Agent Equity Program. During the year ended December 31, 2017, the Company issued 1,192,950 shares of common stock in exchange for services totaling $1,059,023, which included the expense activity for Real Estate Agent Growth and Other Incentive Programs. 2015 Agent Equity Program The Company provides agents and brokers the opportunity to elect to receive 5% of commissions earned from each completed residential real estate transaction in the form of common stock. If agents and brokers elect to receive portions of their commissions in common stock, they are entitled to receive the equivalent number of shares of common stock, based on the fixed monetary value of the commission payable. The shares are issued at a 20% discount to market on the date of issuance. We recognize this 20% discount as an additional cost of sales charge during the periods presented. All agents and brokers in good standing with the Company are eligible to participate in the Agent Equity Program. To be considered in good standing, agents and brokers must be current in their financial obligations, including all fees, to the Company. In addition, all required licenses, local, state and national dues and subscriptions which are required to conduct real estate business in their state must be current and in effect. During the years ended December 31, 2017, 2016, and 2015, the Company issued 1,464,997, 785,504 and 420,866 shares, respectively, of common stock to agents and brokers for total consideration of $5,857,539, $1,709,959, and $352,575, respectively for the settlement of commissions payable. Real Estate Agent Growth Incentive Program The Company administers an equity incentive program whereby agents and brokers become eligible to receive awards of the Company’s common stock through agent attraction and performance benchmarks. Agents who qualify are awarded common stock based on achievement of performance milestones. Under this program, the Company awards common stock to our agents and brokers that become issuable upon the achievement of certain milestones for both the individual and the recruited agents. The following table illustrates the Company’s stock activity for the Real Estate Agent Growth Incentive Program for the following periods: Shares Weighted Balance, December 31,2014 354,700 $ 0.30 Granted 1,011,956 0.84 Issued – – Forfeited (73,600 ) 0.84 Balance, December 31, 2015 1,293,056 $ 0.84 Granted 2,452,965 4.05 Issued (558,567 ) 4.30 Forfeited (129,575 ) 2.57 Balance, December 31, 2016 3,057,879 $ 4.05 Granted 2,024,498 7.60 Issued (1,457,538 ) 5.27 Forfeited (565,774 ) 4.76 Balance, December 31, 2017 3,059,065 $ 7.60 As of December 31, 2017, the Company had 1,953,074 unvested stock awards and 3,059,065 expected to vest, respectively, with unrecognized compensation costs totaling $13,450,031. Stock Option Awards During the year ended December 31, 2017, the Company granted 2,848,231 stock options with an estimated grant date fair value of $8,223,561. The assumptions used to estimate the grant date fair value of the awards issued for the year ended December 31, 2017 include: The assumptions used to estimate the grant date fair value of the awards issued for the year ended December 31, 2016 include: The assumptions used to estimate the grant date fair value of the awards issued for the year ended December 31, 2015 include: In January 2017, the Company modified certain terms of previously outstanding option awards to purchase 500,000 shares of common stock, including accelerating portions of the award to vest prior to the original terms and the forfeiture of unvested options to purchase 275,000 shares of common stock. As a result of this modification, the Company recognized approximately $368,000 of additional stock option expense during the year ended December 31, 2017. The following table illustrates the Company’s stock option activity (inclusive of awards accounted for under the intrinsic value and fair value) for the following periods: Options Weighted Intrinsic Weighted Balance, December 31, 2014 7,211,479 $ 0.15 $ 0.17 8.00 Granted 337,750 0.56 – 10.00 Exercised – – – Forfeited (267,979 ) – – 7.10 Balance, December 31, 2015 7,281,250 $ 0.17 $ 0.17 7.00 Granted 4,130,000 1.53 – 9.75 Exercised (159,678 ) 0.13 1.42 – Forfeited (504,014 ) 1.19 3.36 – Balance, December 31, 2016 10,747,558 $ 0.67 $ 3.56 7.75 Granted 2,848,231 3.76 – 6.15 Exercised (181,572 ) 0.26 6.86 – Forfeited (2,540,925 ) 2.31 3.20 – Balance, December 31, 2017 10,873,292 $ 1.50 $ 5.08 6.65 Exercisable at December 31, 2017 7,692,566 0.57 6.16 5.74 Vested at December 31, 2017 8,031,986 $ 0.66 $ 6.94 5.87 For the years ended December 31, 2017, 2016, and 2015, the Company recognized total stock-based compensation of $10,961,631 and $4,996,649 (as restated), and $1,059,035 (as restated) respectively, associated with all equity and equity-linked awards. As of December 31, 2017, the total unrecognized compensation cost associated with options was approximately $4,858,670. The following table summarizes information about stock options outstanding: Outstanding Vested Options Weighted Average Exercise Price Remaining Contractual Life In Years Aggregate Intrinsic Value Options Weighted Average Exercise Price Remaining Contractual Life In Years Aggregate Intrinsic Value 5,204,061 0.13 4.69 38,874,332 5,204,061 0.13 4.69 38,874,332 333,831 0.14 6.50 2,490,376 333,831 0.14 6.50 2,490,376 284,000 0.15 5.09 2,115,800 284,000 0.15 5.09 2,115,800 33,000 0.20 5.00 244,200 33,000 0.20 5.00 244,200 157,750 0.30 7.00 1,151,575 118,313 0.30 7.00 863,681 20,000 0.50 7.27 142,000 13,658 0.50 7.27 96,968 50,000 0.84 7.67 338,000 31,123 0.84 7.67 210,393 500,000 0.80 8.21 3,400,000 224,315 0.80 8.21 1,525,342 350,000 1.58 8.34 2,107,000 145,034 1.58 8.34 873,106 2,000,000 1.76 8.55 11,680,000 966,210 1.76 8.55 5,642,667 100,000 2.81 8.62 479,000 34,452 2.81 8.62 165,025 237,420 3.13 9.73 2,311,105 221,661 3.13 9.73 990,824 50,000 3.35 9.75 212,500 3,082 3.35 9.75 13,099 668,231 3.40 9.61 2,806,570 253,511 3.40 9.61 1,064,745 100,000 3.42 9.62 418,000 9,521 3.42 9.62 39,796 30,000 3.49 9.43 123,300 4,295 3.49 9.43 17,650 430,000 3.55 9.29 1,741,500 75,986 3.55 9.29 307,745 10,000 3.82 9.07 37,800 2,322 3.82 9.07 8,777 200,000 3.84 9.22 752,000 39,178 3.84 9.22 147,310 100,000 3.85 9.07 375,000 23,288 3.85 9.07 87,329 15,000 7.60 9.99 – 15,000 7.60 9.99 – |
9. Income Taxes
9. Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The components of the provision for income tax expense are as follows: Year Ended December 31, 2017 2016 (As Restated) 2015 (As Restated) Current: Federal $ – $ – $ – State 86,787 37,070 14,875 Foreign 10,447 5,458 6,691 97,234 42,528 21,566 Deferred: Federal – – 77,428 State – – 4,075 – – 81,503 Total provision (benefit) for income taxes $ 97,234 $ 42,528 $ 103,069 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 Company’s income tax expense as reported is as follows: Year Ended December 31, 2017 2016 2015 Statutory tax rate 38.25 % 38.25 % 38.25 % State taxes (0.39 )% – % (0.32 )% Permanent differences (0.31 )% (0.09 )% (7.01 )% Non-deductible share-based compensation (19.70 )% (58.90 )% – % Foreign tax rate differential (0.05 )% – % 0.22 % Change in tax rate (6.33 )% – % – % Prior year true up – % (0.04 )% (0.34 )% Valuation allowance (11.90 )% 20.23 % (35.98 )% Other net (0.01 )% – % – % Total (0.44 )% (0.56 )% (5.18 )% Deferred tax assets consist of the following at: Year Ended December 31, 2017 2016 (As Restated) 2015 (As Restated) Deferred tax assets: Net operating loss carryforward $ 2,445,965 $ 679,797 $ 174,942 Temporary differences 241,649 63,172 17,099 Share-based compensation 430,614 – 917,977 Total gross deferred tax assets $ 3,118,228 $ 742,969 $ 1,110,017 Deferred tax liabilities Property and equipment (17,835 ) – (17,813 ) Valuation allowance (3,100,394 ) (742,969 ) (1,092,204 ) Net deferred tax assets $ – $ – $ – At December 31, 2017, the Company had federal net operating losses of approximately $4.7 million which will begin to expire in 2031 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, 2017, 2016 and 2015 of $3,100,394, $742,969, and $1,110,017, 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 $2,357,426 and decreased by $349,235 in 2017 and 2016, respectively. As of December 31, 2017, 2016, and 2015, 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. Our ability to utilize the domestic net operating losses (NOLs) and tax credit forwards may be limited due to ownership change limitations that may have occurred or that could occur in the future, as required by the Internal Revenue Code Section 382, as well as similar state provisions. An “ownership change,” as defined by the code, results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain stockholders or public groups. Any limitation may result in expiration of all or a portion of the NOL or tax credit carryforwards before utilization. The Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”), which became law on December 22, 2017, will reduce the U.S. Federal corporate tax rate from 35% to 21% for tax years beginning in 2018. The Company remeasured its net deferred tax assets and liabilities as a result of the 2017 Tax Act along with the corresponding valuation allowance resulting in no net expense or benefit. The result related to the 2017 Tax Act is a provisional amount that reflects the Company’s reasonable estimate at this time and is subject to adjustment during a measurement period not to exceed one year from enactment in accordance with guidance from the Securities and Exchange Commission. |
10. Commitments and Contingenci
10. Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Operating leases At December 31, 2017, the Company was obligated under non-cancelable operating leases for office space. The following table illustrates the Company’s future obligations related to its non-cancellable operating leases: Year Ending December 31, 2018 $ 213,026 2019 94,881 2020 4,997 2021 4,560 2022 and thereafter 4,560 $ 322,024 Legal proceedings From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. We know of no material, active or pending legal proceedings against the Company, nor are we involved as a plaintiff in any material proceedings 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. |
11. Segment Information
11. Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | The Company primarily operates within residential real estate markets in the United States and Canada. The Company’s management generally does not rely on historical geographical results in making operational decisions. The Company’s management analyzes geographical locations on a forward-looking basis to identify growth opportunities. The Company enters into residential real estate transactions within the United States and Canada. For the year ended December 31, 2017, approximately 1% of the Company’s total net revenue of $156,104,544 was generated in Canada. For the period ended December 31, 2016, the Company generated approximately 2% of its total revenue from Canada. The Company did not possess material assets located outside of the United States as of December 31, 2017, 2016 and 2015. |
12. Related Party Transactions
12. Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | In January 2017, and as part of her agreement to join the Company’s Board of Directors, Ms. Laurie Hawkes was granted an option to purchase a total of 350,000 shares of common stock from a significant stockholder at an exercise price of $4.22 per share. The Company estimated the grant date fair value of these options using a Black-Scholes model with the assumptions described in Footnote 8. The aggregate grant date fair value of this award was $1,333,501. During the year ended December 31, 2017, the Company recognized compensation cost totaling $254,522 associated with this award. The transaction was accounted for as a deemed contribution from the significant stockholder. On August 7, 2017, Ms. Hawkes submitted to the Company her resignation as a member of the Board of Directors effective August 9, 2017. The options to purchase common stock from a significant stockholder were forfeited subsequent to her resignation. |
13. Unaudited Quarterly Financi
13. Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | The unaudited quarterly information for the fiscal years 2017, 2016 and 2015 have been restated to correct the errors described in Note 3, Restatement of Previously Issued Financial Statements. The following table presents the unaudited quarterly information for the three months ended September 30, 2017: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 48,105,769 – – (734,024 ) $ 47,371,745 Operating expenses Cost of revenues 43,291,473 – 346,175 734,024 42,903,624 General and administrative 11,987,268 (3,007,819 ) 195,811 – 9,175,260 Professional fees 223,811 – – – 223,811 Sales and marketing 380,452 – – – 380,452 Total expenses 55,883,004 3,007,819 (541,986 ) 734,024 52,683,147 Net income (loss) from operations (7,777,235 ) 3,007,819 (541,986 ) – (5,311,402 ) Other income – – – – – Interest expense (58 ) – – – (58 ) Total other income and (expenses) (58 ) – – – (58 ) Net income (loss) from operations before income tax expense (7,777,293 ) 3,007,819 (541,986 ) – (5,311,460 ) Income tax expense (3,277 ) – – – (3,277 ) Net income (loss) (7,780,570 ) 3,007,819 (541,986 ) – (5,314,737 ) Net loss attributable to non-controlling interest in subsidiary – – – – – Net income (loss) attributable to common shareholders $ (7,780,570 ) 3,007,819 (541,986 ) – (5,314,737 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.15 ) $ 0.06 $ (0.01 ) $ (0.00 ) $ (0.10 ) Diluted from continuing operations $ (0.15 ) $ 0.06 $ (0.01 ) $ (0.00 ) $ (0.10 ) Weighted average shares outstanding Basic 53,335,822 53,335,822 53,335,822 53,335,822 53,335,822 Diluted 53,335,822 53,335,822 53,335,822 53,335,822 53,335,822 The following table presents the unaudited quarterly information for the three months ended June 30, 2017: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 39,574,311 – – (593,370 ) $ 38,980,941 Operating expenses Cost of revenues 35,048,967 – 285,277 593,370 34,740,874 General and administrative 600,420 5,427,087 (334,860 ) – 5,692,648 Professional fees 318,383 – – – 318,383 Sales and marketing 348,823 – – – 348,823 Total expenses 36,316,593 (5,427,087 ) 49,583 593,370 41,100,727 Net income (loss) from operations 3,257,718 (5,427,087 ) 49,583 – (2,119,786 ) Other income – – – – – Interest expense (3,762 ) – – – (3,762 ) Total other income and (expenses) (3,762 ) – – – (3,762 ) Net income (loss) from operations before income tax expense 3,253,956 (5,427,087 ) 49,583 – (2,123,548 ) Income tax expense (23,747 ) – – – (23,747 ) Net income (loss) 3,230,209 (5,427,087 ) 49,583 – (2,147,296 ) Net loss attributable to non-controlling interest in subsidiary – – – – – Net income (loss) attributable to common shareholders $ 3,230,209 (5,427,087 ) 49,583 – (2,147,296 ) Net loss per share attributable to common shareholders Basic from continuing operations $ 0.06 $ (0.10 ) $ 0.00 $ (0.00 ) $ (0.04 ) Diluted from continuing operations $ 0.05 $ (0.10 ) $ (0.00 ) $ (0.00 ) $ (0.04 ) Weighted average shares outstanding Basic 52,749,086 52,749,086 52,749,086 52,749,086 52,749,086 Diluted 59,640,200 52,749,086 52,749,086 52,749,086 52,749,086 The following table presents the unaudited quarterly information for the three months ended March 31, 2017: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 22,011,237 – – (483,054 ) $ 21,528,183 Operating expenses Cost of revenues 19,279,626 – 163,563 483,054 18.960,135 General and administrative 2,109,352 2,669,099 (2,570 ) – 4.775,881 Professional fees 364,460 – – – 364,460 Sales and marketing 301,222 – – – 301,222 Total expenses 22,054,660 (2,669,099 ) (160,993 ) 483,054 24,401,698 Net income (loss) from operations (43,423 ) (2,669,099 ) (160,993 ) – (2,873,515 ) Other income – – – – – Interest expense (1,715 ) – – – (1,715 ) Total other income and (expenses) (1,715 ) – – – (1,715 ) Net income (loss) from operations before income tax expense (45,138 ) (2,669,099 ) (160,993 ) – (2,875,230 ) Income tax expense (24,591 ) – – – (24,591 ) Net income (loss) (69,729 ) (2,669,099 ) (160,993 ) – (2,899,821 ) Net loss attributable to non-controlling interest in subsidiary – – – – – Net income (loss) attributable to common shareholders $ (69,729 ) (2,669,099 ) (160,993 ) – (2,899,821 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.00 ) $ (0.05 ) $ 0.00 $ (0.00 ) $ (0.05 ) Diluted from continuing operations $ (0.00 ) $ (0.05 ) $ 0.00 $ (0.00 ) $ (0.05 ) Weighted average shares outstanding Basic 52,416,392 52,416,392 52,416,392 52,416,392 52,416,392 Diluted 52,416,392 52,416,392 52,416,392 52,416,392 52,416,392 The following table presents the unaudited quarterly information for the three months ended September 30, 2016: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 15,756,956 – – (78,279 ) $ 15,835,235 Operating expenses Cost of revenues 13,294,452 – 96,733 (78,279 ) 13,469,464 General and administrative 16,810,567 (13,943,548 ) 720,770 – 3,587,789 Professional fees 140,804 – – – 140,804 Sales and marketing 158,968 – – – 158,968 Total expenses 30,404,791 13,943,548 (817,503 ) 78,279 17,357,025 Net income (loss) from operations (14,647,835 ) 13,943,548 (817,503 ) – (1,521,790 ) Other income (432 ) – – – (432 ) Interest expense – – – – – Total other income and (expenses) (432 ) – – – (432 ) Net income (loss) from operations before income tax expense (14,648,267 ) 13,943,548 (817,503 ) – (1,522,222 ) Income tax expense (7,444 ) – – – (7,444 ) Net income (loss) (14,655,711 ) 13,943,548 (817,503 ) – (1,529,666 ) Net loss attributable to non-controlling interest in subsidiary 8,613 – – – 8,613 Net income (loss) attributable to common shareholders $ (14,647,098 ) 13,943,548 (817,503 ) – (1,521,053 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.29 ) $ 0.27 $ (0.01 ) $ (0.00 ) $ (0.03 ) Diluted from continuing operations $ (0.29 ) $ 0.27 $ (0.01 ) $ (0.00 ) $ (0.03 ) Weighted average shares outstanding Basic 51,225,817 51,225,817 51,225,817 51,225,817 51,225,817 Diluted 51,225,817 51,225,817 51,225,817 51,225,817 51,225,817 The following table presents the unaudited quarterly information for the three months ended June 30, 2016: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 13,282,028 – – (198,201 ) $ 13,083,827 Operating expenses Cost of revenues 11,463,125 – 80,126 198,201 11,345,050 General and administrative 7,565,698 (5,697,433 ) 137,414 – 2,005,679 Professional fees 130,018 – – – 130,018 Sales and marketing 122,285 – – – 122,285 Total expenses 19,281,126 5,697,433 (217,540 ) 198,201 13,603,032 Net income (loss) from operations (5,999,098 ) 5,697,433 (217,540 ) – (519,205 ) Other income 439 – – – 439 Interest expense – – – – – Total other income and (expenses) 439 – – – 439 Net income (loss) from operations before income tax expense (5,998,659 ) 5,697,433 (217,540 ) – (518,766 ) Income tax expense (13,968 ) – – – (13,968 ) Net income (loss) (6,012,627 ) 5,697,433 (217,540 ) – (532,734 ) Net loss attributable to non-controlling interest in subsidiary 6,720 – – – 6,720 Net income (loss) attributable to common shareholders $ (6,005,907 ) 5,697,433 (217,540 ) – (526,014 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.12 ) $ 0.11 $ (0.00 ) $ (0.00 ) $ (0.01 ) Diluted from continuing operations $ (0.12 ) $ 0.11 $ (0.00 ) $ (0.00 ) $ (0.01 ) Weighted average shares outstanding Basic 50,940,460 50,940,460 50,940,460 50,940,460 50,940,460 Diluted 50,940,460 50,940,460 50,940,460 50,940,460 50,940,460 The following table presents the unaudited quarterly information for the three months ended March 31, 2016: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 7,142,812 – – (155,829 ) $ 6,986,983 Operating expenses Cost of revenues 6,110,987 – 34,766 155,829 5,989,924 General and administrative 1,425,158 (165,752 ) 30,606 – 1,290,012 Professional fees 143,375 – – – 143,375 Sales and marketing 77,143 – – – 77,143 Total expenses 7,756,663 165,752 (65,372 ) 155,829 7,500,454 Net income (loss) from operations (613,851 ) 165,752 (65,372 ) – (513,471 ) Other income 7 – – – 7 Interest expense – – – – – Total other income and (expenses) 7 – – – 7 Net income (loss) from operations before income tax expense (613,844 ) 165,752 (65,372 ) – (513,464 ) Income tax expense (11,603 ) – – – (11,603 ) Net income (loss) (625,447 ) 165,752 (65,372 ) – (525,067 ) Net loss attributable to non-controlling interest in subsidiary 5,580 – – – 5,580 Net income (loss) attributable to common shareholders $ (619,867 ) 165,752 (65,372 ) – (519,487 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.01 ) $ 0.00 $ (0.00 ) $ (0.00 ) $ (0.01 ) Diluted from continuing operations $ (0.01 ) $ 0.00 $ (0.00 ) $ (0.00 ) $ (0.01 ) Weighted average shares outstanding Basic 50,617,769 50,617,769 50,617,769 50,617,769 50,617,769 Diluted 50,617,769 50,617,769 50,617,769 50,617,769 50,617,769 The following table presents the unaudited quarterly information for the three months ended September 30, 2015: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 7,419,103 – – (109,245 ) $ 7,309,858 Operating expenses Cost of revenues 6,354,951 – 29,697 109,245 6, 275,403 General and administrative (661,707 ) 1,522,943 (5,796 ) – 855,440 Professional fees 138,001 – – – 138,001 Sales and marketing 77,011 – – – 77,011 Total expenses 5,908,256 (1,522,943 ) (23,901 ) 109,245 7,345,855 Net income (loss) from operations 1,510,847 (1,522,943 ) (23,901 ) – (35,997 ) Other income 319 – – – 319 Interest expense (202 ) – – – (202 ) Total other income and (expenses) 117 – – – 117 Net income (loss) from operations before income tax expense 1,510,964 (1,522,943 ) – (35,880 ) Income tax expense (1,244 ) – – – (1,244 ) Net income (loss) 1,509,720 (1,522,943 ) (23,901 ) – (37,124 ) Net loss attributable to non-controlling interest in subsidiary 7,388 – – – 7,388 Net income (loss) attributable to common shareholders $ 1,517,108 (1,522,943 ) (23,901 ) (29,736 ) Net loss per share attributable to common shareholders Basic from continuing operations $ 0.03 $ (0.03 ) $ 0.00 $ (0.00 ) $ (0.00 ) Diluted from continuing operations $ 0.03 $ (0.04 ) $ 0.00 $ (0.00 ) $ (0.01 ) Weighted average shares outstanding Basic 49,714,285 49,714,285 49,714,285 49,714,285 49,714,285 Diluted 51,163,219 51,163,219 51,163,219 51,163,219 51,163,219 The following table presents the unaudited quarterly information for the three months ended June 30, 2015: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 5,584,963 – – (93,856 ) $ 5,491,107 Operating expenses Cost of revenues 4,767,527 – 14,604 93,856 4,688,275 General and administrative 5,669,105 (3,973,717 ) 22,368 – 1,717,756 Professional fees 98,832 – – – 98,832 Sales and marketing 43,006 – – – 43,006 Total expenses 10,578,470 3,973,717 (36,972 ) 93,856 6,547,869 Net income (loss) from operations (4,993,507 ) 3,973,717 (36,972 ) – (1,056,762 ) Other income 2,897 – – – 2,897 Interest expense (464 ) – – – (464 ) Total other income and (expenses) 2,433 – – – 2,433 Net income (loss) from operations before income tax expense (4,991,074 ) 3,973,717 (36,972 ) – (1,054,329 ) Income tax expense (7,080 ) – – – (7,080 ) Net income (loss) (4,998,154 ) 3,973,717 (36,972 ) – (1,061,409 ) Net loss attributable to non-controlling interest in subsidiary – – – – – Net income (loss) attributable to common shareholders $ (4,998,154 ) 3,973,717 (36,972 ) – (1,061,409 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.10 ) $ 0.08 $ (0.00 ) $ (0.00 ) $ (0.02 ) Diluted from continuing operations $ (0.10 ) $ 0.08 $ (0.00 ) $ (0.00 ) $ (0.02 ) Weighted average shares outstanding Basic 49,182,952 49,182,952 49,182,952 49,182,952 49,182,952 Diluted 49,182,952 49,182,952 49,182,952 49,182,952 49,182,952 The following table presents the unaudited quarterly information for the three months ended March 31, 2015: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 3,449,241 – – (75,771 ) $ 3,373,470 Operating expenses Cost of revenues 2,877,744 – – 75,771 2,801,973 General and administrative 449,936 294,992 3,134 – 748,062 Professional fees 76,603 – – – 645,024 Sales and marketing 46,357 – – – 570,844 Total expenses 3,450,640 (294,922 ) (3,134 ) 75,771 3,672,995 Net income (loss) from operations (1,399 ) (294,922 ) (3,134 ) – (299,525 ) Other income 3,686 – – – 3,686 Interest expense (461 ) – – – (461 ) Total other income and (expenses) 3,225 – – – 3,225 Net income (loss) from operations before income tax expense 1,826 (294,922 ) (3,134 ) – (296,300 ) Income tax expense (18,643 ) – – – (18,643 ) Net income (loss) (16,817 ) (294,922 ) (3,134 ) – (314,943 ) Net loss attributable to non-controlling interest in subsidiary – – – – – Net income (loss) attributable to common shareholders $ (16,817 ) (294,922 ) (3,134 ) – (314,943 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.00 ) $ (0.01 ) $ (0.00 ) $ 0.00 $ (0.01 ) Diluted from continuing operations $ (0.00 ) $ (0.01 ) $ (0.00 ) $ 0.00 $ (0.01 ) Weighted average shares outstanding Basic 48,727,385 48,727,385 48,727,385 48,727,385 48,727,385 Diluted 48,727,385 48,727,385 48,727,385 48,727,385 48,727,385 |
2. Summary of Significant Acc21
2. Summary of Significant Accounting Principles (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation The accompanying audited condensed consolidated financial statements include the accounts of eXp World Holdings, Inc., and its subsidiaries. All inter-company accounts and transactions have been eliminated upon consolidation. |
Non-controlling interests | Non-controlling interests Non-controlling interests in the Company’s subsidiary are reported as a component of equity, separate from the parent company’s equity. Results of operations attributable to the non-controlling interest are included in the Company’s consolidated statements of operations and consolidated statements of comprehensive income (loss). In the year ended December 31, 2016, the Company acquired the previously outstanding non-controlling interest in First Cloud Mortgage, Inc. Upon obtaining 100% interest, the Company inactivated First Cloud. For the years ended December 31, 2017 and 2016, the activities of First Cloud did not have a material effect on the Company’s consolidated financial position, results of operations, or cash flows. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to 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 Company’s 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. From time to time, the Company’s cash deposits exceed federally insured limits. The Company has not experienced any losses resulting from these excess deposits. |
Restricted cash | Restricted cash Restricted cash consists of cash held in escrow by the Company’s brokers and agents on behalf of real estate buyers. The Company recognized a corresponding customer deposit liability until the funds are released. Restricted cash totaled $923,193 and $481,704 at December 31, 2017 and 2016, respectively. |
Fair value measurements | Fair value measurements ASC 820 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 fair value of cash and cash equivalents, accounts receivable, prepaids and other assets, accounts payable, accrued expenses, and notes payable approximates their carrying value due to their short-term maturities. |
Allowance for doubtful accounts | Allowance for doubtful accounts A portion of the Company’s accounts receivable are derived from non-commission based technology fees. These accounts receivable are typically unsecured. The allowance for doubtful accounts is our estimate based on historical experience. We periodically preform detailed reviews to assess the adequacy of the allowance. We exercise significant judgment in estimating the timing, frequency and severity of losses. The Company typically does not experience material uncollectible accounts. |
Foreign currency translation | Foreign currency translation The Company’s functional and reporting currency is the United States dollar and the functional currency of the Company’s foreign subsidiaries is the local currency of their country of domicile. 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 does not employ any derivative or hedging strategy to offset the impact of foreign currency fluctuations. |
Fixed assets | Fixed assets Fixed assets 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 asset’s useful life or improve an asset’s functionality are capitalized. The Company capitalizes the costs associated with developing its internal-use cloud-based residential real-estate transaction system. Capitalized costs are primarily related to costs incurred in relation to internally created software during the application development stage including costs for upgrades and enhancements that result in additional functionality. |
Impairment of long-lived assets | Impairment 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. When assets are considered impaired, 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. |
Stock-based compensation | Stock based compensation The Company issues equity and equity linked instruments to employees and non-employees in lieu of cash for the receipt of services. Share-based payment transactions with non-employees are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable and expensed in the periods the services are received. We measure expense associated with stock-based awards (usually stock options) to our employees and directors on the date of grant and recognize the corresponding compensation expense of those awards over the requisite service period, which is generally the vesting period of the respective award. We account for stock-based compensation arrangements with non-employees using a fair value approach. The estimated fair value of unvested awards granted to non-employee consultants is remeasured at each reporting date through the date of final vesting. As a result, the non-cash charge to operations for non-employee awards with vesting conditions is affected in each reporting period by changes in the fair value of the Company’s common stock. In prior years, the Company granted stock-based performance awards to certain managing real estate brokers as part of a long-term incentive program with the payout based on the achievement of introducing and retaining real estate agents into the Company to contribute to the overall growth of the Company. Performance awards with non-employees are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable and expensed in the periods the services are received. |
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. The majority of our revenue is derived from assisting home buyers and sellers in listing, marketing, selling and purchasing residential real estate. Commissions earned by the Company in residential real estate transactions are recognized upon the closing of a transaction (purchase or sale), commonly referred to as gross commission income, and are presented net of fees and expenses in the accompanying consolidated statement of operations. Real estate agent commissions paid, concurrently recognized with the closing of each transaction, are presented as costs of revenues in the accompanying consolidated statement of operations. |
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 accompanying consolidated statements of operations. For the years ended December 31, 2017, 2016 and 2015, the Company incurred advertising expenses of $1,258,334, $503,121, and $163,905, 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 2011 to 2017. |
Comprehensive income (loss) | Comprehensive income (loss) The Company’s only component of comprehensive income (loss) is foreign currency translation adjustments. |
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. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In May 2017, the FASB issued ASU No. 2017-09 - Compensation Scope of Modification Accounting In November 2016, the FASB issued ASU No. 2016-18 – Statement of Cash Flows Statement of Cash Flows In October 2016, the FASB issued ASU No. 2016-16 - Income Taxes In February 2016, the FASB issued ASU No. 2016-02 - Leases In May 2014, the FASB issued ASU No. 2014-09 - Revenue from Contracts with Customers |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements In January 2017, the Company implemented accounting treatment as promulgated by FASB as issued in ASU No. 2016-09 Compensation – Stock Compensation |
3. Restatement of Previously 22
3. Restatement of Previously Issued Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement of previously issued financial statements | eXp World Holdings Inc. Consolidated Statement of Operations For the fiscal year ended December 31, 2016 As Previously Reported on Form 10-K Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 54,179,511 – – (623,786 ) $ 53,555,725 Operating expenses Cost of revenues 46,726,533 – 336,197 (623,786 ) 46,438,944 General and administrative 32,237,501 (19,843,746 ) 878,991 – 13,272,746 Professional fees 645,024 – – – 645,024 Sales and marketing 570,844 – – – 570,844 Total expenses 80,179,902 19,843,746 ) 1,215,188 (623,786 ) 60,927,558 Net income (loss) from operations (26,000,391 ) 19,843,746 (1,215,188 ) – (7,371,833 ) Other income 15 – – – 15 Interest expense (370 ) – – – (370 ) Total other income and (expenses) (355 ) – – – (355 ) Net income (loss) from operations before income tax expense (26,000,746 ) 19,843,746 (1,215,188 ) – (7,372,188 ) Income tax expense (42,528 ) – – – (42,528 ) Net income (loss) (26,043,274 ) 19,843,746 (1,215,188 ) – (7,414,716 ) Net loss attributable to non-controlling interest in subsidiary 29,801 – – – 29,801 Net income (loss) attributable to common shareholders $ (26,013,473 ) 19,843,746 (1,215,188 ) – (7,384,915 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.51 ) $ 0.39 $ (0.02 ) $ (0.00 ) $ (0.14 ) Diluted from continuing operations $ (0.51 ) $ 0.39 $ (0.02 ) $ (0.00 ) $ (0.14 ) Weighted average shares outstanding Basic 51,081,949 51,081,949 51,081,949 51,081,949 51,081,949 Diluted 51,081,949 51,081,949 51,081,949 51,081,949 51,081,949 eXp World Holdings Inc. Consolidated Statement of Operations For the fiscal year ended December 31, 2015 As Previously Reported on Form 10-K Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 22,866,787 – – (402,481 ) $ 22,464,306 Operating expenses Cost of revenues 19,456,409 – 71,637 (402,481 ) 19,125,564 General and administrative 7,257,961 (2,764,252 ) 50,067 – 4,543,776 Professional fees 439,763 – – – 439,763 Sales and marketing 211,456 – – – 211,456 Total expenses 27,365,589 (2,764,252 ) 121,704 (402,481 ) 24,320,560 Net income (loss) from operations (4,498,802 ) 2,764,252 (121,704 ) – (1,856,254 ) Other income 23 – – – 23 Interest expense (1,127 ) – – – (1,127 ) Total other income and (expenses) (1,104 ) – – – (1,104 ) Net income (loss) from operations before income tax expense (4,499,906 ) 2,764,252 (121,704 ) – (1,857,358 ) Income tax expense (103,069 ) – – – (103,069 ) Net income (loss) (4,602,975 ) 2,764,252 (121,704 ) – (1,960,427 ) Net loss attributable to non-controlling interest in subsidiary 21,526 – – – 21,526 Net income (loss) attributable to common shareholders $ (4,581,449 ) 2,764,252 (121,704 ) – (1,938,901 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.09 ) $ 0.06 $ (0.00 ) $ (0.00 ) $ (0.04 ) Diluted from continuing operations $ (0.09 ) $ 0.06 $ (0.00 ) $ (0.00 ) $ (0.04 ) Weighted average shares outstanding Basic 49,409,266 49,409,266 49,409,266 49,409,266 49,409,266 Diluted 49,409,266 49,409,266 49,409,266 49,409,266 49,409,266 |
4. Prepaid and Other Current 23
4. Prepaid and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid and other current assets | Year Ended December 31, 2017 2016 Prepaid expenses $ 219,074 $ 199,066 Prepaid insurance 287,244 145,825 Rent deposits 68,196 28,047 Other assets 16,520 10,625 $ 591,034 $ 383,563 |
5. Fixed Assets, Net (Tables)
5. Fixed Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of fixed assets | Year Ended December 31, 2017 2016 Computer hardware and software $ 1,982,749 $ 219,590 Furniture, fixture and equipment 5,910 5,910 Total depreciable property and equipment 1,988,659 225,500 Less: accumulated depreciation and amortization (450,446 ) (97,216 ) Depreciable property, net 1,538,213 128,284 Assets under development -0- 410,121 Fixed assets, net $ 1,538,213 $ 538,405 |
6. Accrued Expenses (Tables)
6. Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | Year Ended December 31, 2017 2016 Commissions payable $ 7,565,357 $ 2,417,621 Payroll payable 749,203 54,402 Vacation payable 283,077 78,294 Taxes payable 99,809 58,714 Other accrued expenses 120,734 133,088 $ 8,818,180 $ 2,742,119 |
8. Stockholders' Equity (Tables
8. Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Restricted stock activity table | Shares Weighted Balance, December 31,2014 354,700 $ 0.30 Granted 1,011,956 0.84 Issued – – Forfeited (73,600 ) 0.84 Balance, December 31, 2015 1,293,056 $ 0.84 Granted 2,452,965 4.05 Issued (558,567 ) 4.30 Forfeited (129,575 ) 2.57 Balance, December 31, 2016 3,057,879 $ 4.05 Granted 2,024,498 7.60 Issued (1,457,538 ) 5.27 Forfeited (565,774 ) 4.76 Balance, December 31, 2017 3,059,065 $ 7.60 |
Stock option activity table | Options Weighted Intrinsic Weighted Balance, December 31, 2014 7,211,479 $ 0.15 $ 0.17 8.00 Granted 337,750 0.56 – 10.00 Exercised – – – Forfeited (267,979 ) – – 7.10 Balance, December 31, 2015 7,281,250 $ 0.17 $ 0.17 7.00 Granted 4,130,000 1.53 – 9.75 Exercised (159,678 ) 0.13 1.42 – Forfeited (504,014 ) 1.19 3.36 – Balance, December 31, 2016 10,747,558 $ 0.67 $ 3.56 7.75 Granted 2,848,231 3.76 – 6.15 Exercised (181,572 ) 0.26 6.86 – Forfeited (2,540,925 ) 2.31 3.20 – Balance, December 31, 2017 10,873,292 $ 1.50 $ 5.08 6.65 Exercisable at December 31, 2017 7,692,566 0.57 6.16 5.74 Vested at December 31, 2017 8,490,308 $ 0.92 $ 5.98 6.09 |
Stock options by exercise price | Outstanding Vested Options Weighted Average Exercise Price Remaining Contractual Life In Years Aggregate Intrinsic Value Options Weighted Average Exercise Price Remaining Contractual Life In Years Aggregate Intrinsic Value 5,204,061 0.13 4.69 38,874,332 5,204,061 0.13 4.69 38,874,332 333,831 0.14 6.50 2,490,376 333,831 0.14 6.50 2,490,376 284,000 0.15 5.09 2,115,800 284,000 0.15 5.09 2,115,800 33,000 0.20 5.00 244,200 33,000 0.20 5.00 244,200 157,750 0.30 7.00 1,151,575 118,313 0.30 7.00 863,681 20,000 0.50 7.27 142,000 13,658 0.50 7.27 96,968 50,000 0.84 7.67 338,000 31,123 0.84 7.67 210,393 500,000 0.80 8.21 3,400,000 224,315 0.80 8.21 1,525,342 350,000 1.58 8.34 2,107,000 145,034 1.58 8.34 873,106 2,000,000 1.76 8.55 11,680,000 966,210 1.76 8.55 5,642,667 100,000 2.81 8.62 479,000 34,452 2.81 8.62 165,025 237,420 3.13 9.73 2,311,105 221,661 3.13 9.73 990,824 50,000 3.35 9.75 212,500 3,082 3.35 9.75 13,099 668,231 3.40 9.61 2,806,570 253,511 3.40 9.61 1,064,745 100,000 3.42 9.62 418,000 9,521 3.42 9.62 39,796 30,000 3.49 9.43 123,300 4,295 3.49 9.43 17,650 430,000 3.55 9.29 1,741,500 75,986 3.55 9.29 307,745 10,000 3.82 9.07 37,800 2,322 3.82 9.07 8,777 200,000 3.84 9.22 752,000 39,178 3.84 9.22 147,310 100,000 3.85 9.07 375,000 23,288 3.85 9.07 87,329 15,000 7.60 9.99 – 15,000 7.60 9.99 – |
9. Income Taxes (Tables)
9. Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense | Year Ended December 31, 2017 2016 (As Restated) 2015 (As Restated) Current: Federal $ – $ – $ – State 86,787 37,070 14,875 Foreign 10,447 5,458 6,691 97,234 42,528 21,566 Deferred: Federal – – 77,428 State – – 4,075 – – 81,503 Total provision (benefit) for income taxes $ 97,234 $ 42,528 $ 103,069 |
Reconciliation of provision for income taxes | Year Ended December 31, 2017 2016 2015 Statutory tax rate 38.25 % 38.25 % 38.25 % State taxes (0.39 )% – % (0.32 )% Permanent differences (0.31 )% (0.09 )% (7.01 )% Non-deductible share-based compensation (19.70 )% (58.90 )% – % Foreign tax rate differential (0.05 )% – % 0.22 % Change in tax rate (6.33 )% – % – % Prior year true up – % (0.04 )% (0.34 )% Valuation allowance (11.90 )% 20.23 % (35.98 )% Other net (0.01 )% – % – % Total (0.44 )% (0.56 )% (5.18 )% |
Schedule of deferred tax assets | Year Ended December 31, 2017 2016 (As Restated) 2015 (As Restated) Deferred tax assets: Net operating loss carryforward $ 2,445,965 $ 679,797 $ 174,942 Temporary differences 241,649 63,172 17,099 Share-based compensation 430,614 – 917,977 Total gross deferred tax assets $ 3,118,228 $ 742,969 $ 1,110,017 Deferred tax liabilities Property and equipment (17,835 ) – (17,813 ) Valuation allowance (3,100,394 ) (742,969 ) (1,092,204 ) Net deferred tax assets $ – $ – $ – |
10. Commitments and Contingen28
10. Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future operating lease payments | Year Ending December 31, 2018 $ 213,026 2019 94,881 2020 4,997 2021 4,560 2022 and thereafter 4,560 $ 322,024 |
13. Unaudited Quarterly Finan29
13. Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited quarterly financial data | The following table presents the unaudited quarterly information for the three months ended September 30, 2017: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 48,105,769 – – (734,024 ) $ 47,371,745 Operating expenses Cost of revenues 43,291,473 – 346,175 734,024 42,903,624 General and administrative 11,987,268 (3,007,819 ) 195,811 – 9,175,260 Professional fees 223,811 – – – 223,811 Sales and marketing 380,452 – – – 380,452 Total expenses 55,883,004 3,007,819 (541,986 ) 734,024 52,683,147 Net income (loss) from operations (7,777,235 ) 3,007,819 (541,986 ) – (5,311,402 ) Other income – – – – – Interest expense (58 ) – – – (58 ) Total other income and (expenses) (58 ) – – – (58 ) Net income (loss) from operations before income tax expense (7,777,293 ) 3,007,819 (541,986 ) – (5,311,460 ) Income tax expense (3,277 ) – – – (3,277 ) Net income (loss) (7,780,570 ) 3,007,819 (541,986 ) – (5,314,737 ) Net loss attributable to non-controlling interest in subsidiary – – – – – Net income (loss) attributable to common shareholders $ (7,780,570 ) 3,007,819 (541,986 ) – (5,314,737 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.15 ) $ 0.06 $ (0.01 ) $ (0.00 ) $ (0.10 ) Diluted from continuing operations $ (0.15 ) $ 0.06 $ (0.01 ) $ (0.00 ) $ (0.10 ) Weighted average shares outstanding Basic 53,335,822 53,335,822 53,335,822 53,335,822 53,335,822 Diluted 53,335,822 53,335,822 53,335,822 53,335,822 53,335,822 The following table presents the unaudited quarterly information for the three months ended June 30, 2017: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 39,574,311 – – (593,370 ) $ 38,980,941 Operating expenses Cost of revenues 35,048,967 – 285,277 593,370 34,740,874 General and administrative 600,420 5,427,087 (334,860 ) – 5,692,648 Professional fees 318,383 – – – 318,383 Sales and marketing 348,823 – – – 348,823 Total expenses 36,316,593 (5,427,087 ) 49,583 593,370 41,100,727 Net income (loss) from operations 3,257,718 (5,427,087 ) 49,583 – (2,119,786 ) Other income – – – – – Interest expense (3,762 ) – – – (3,762 ) Total other income and (expenses) (3,762 ) – – – (3,762 ) Net income (loss) from operations before income tax expense 3,253,956 (5,427,087 ) 49,583 – (2,123,548 ) Income tax expense (23,747 ) – – – (23,747 ) Net income (loss) 3,230,209 (5,427,087 ) 49,583 – (2,147,296 ) Net loss attributable to non-controlling interest in subsidiary – – – – – Net income (loss) attributable to common shareholders $ 3,230,209 (5,427,087 ) 49,583 – (2,147,296 ) Net loss per share attributable to common shareholders Basic from continuing operations $ 0.06 $ (0.10 ) $ 0.00 $ (0.00 ) $ (0.04 ) Diluted from continuing operations $ 0.05 $ (0.10 ) $ (0.00 ) $ (0.00 ) $ (0.04 ) Weighted average shares outstanding Basic 52,749,086 52,749,086 52,749,086 52,749,086 52,749,086 Diluted 59,640,200 52,749,086 52,749,086 52,749,086 52,749,086 The following table presents the unaudited quarterly information for the three months ended March 31, 2017: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 22,011,237 – – (483,054 ) $ 21,528,183 Operating expenses Cost of revenues 19,279,626 – 163,563 483,054 18.960,135 General and administrative 2,109,352 2,669,099 (2,570 ) – 4.775,881 Professional fees 364,460 – – – 364,460 Sales and marketing 301,222 – – – 301,222 Total expenses 22,054,660 (2,669,099 ) (160,993 ) 483,054 24,401,698 Net income (loss) from operations (43,423 ) (2,669,099 ) (160,993 ) – (2,873,515 ) Other income – – – – – Interest expense (1,715 ) – – – (1,715 ) Total other income and (expenses) (1,715 ) – – – (1,715 ) Net income (loss) from operations before income tax expense (45,138 ) (2,669,099 ) (160,993 ) – (2,875,230 ) Income tax expense (24,591 ) – – – (24,591 ) Net income (loss) (69,729 ) (2,669,099 ) (160,993 ) – (2,899,821 ) Net loss attributable to non-controlling interest in subsidiary – – – – – Net income (loss) attributable to common shareholders $ (69,729 ) (2,669,099 ) (160,993 ) – (2,899,821 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.00 ) $ (0.05 ) $ 0.00 $ (0.00 ) $ (0.05 ) Diluted from continuing operations $ (0.00 ) $ (0.05 ) $ 0.00 $ (0.00 ) $ (0.05 ) Weighted average shares outstanding Basic 52,416,392 52,416,392 52,416,392 52,416,392 52,416,392 Diluted 52,416,392 52,416,392 52,416,392 52,416,392 52,416,392 The following table presents the unaudited quarterly information for the three months ended September 30, 2016: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 15,756,956 – – (78,279 ) $ 15,835,235 Operating expenses Cost of revenues 13,294,452 – 96,733 (78,279 ) 13,469,464 General and administrative 16,810,567 (13,943,548 ) 720,770 – 3,587,789 Professional fees 140,804 – – – 140,804 Sales and marketing 158,968 – – – 158,968 Total expenses 30,404,791 13,943,548 (817,503 ) 78,279 17,357,025 Net income (loss) from operations (14,647,835 ) 13,943,548 (817,503 ) – (1,521,790 ) Other income (432 ) – – – (432 ) Interest expense – – – – – Total other income and (expenses) (432 ) – – – (432 ) Net income (loss) from operations before income tax expense (14,648,267 ) 13,943,548 (817,503 ) – (1,522,222 ) Income tax expense (7,444 ) – – – (7,444 ) Net income (loss) (14,655,711 ) 13,943,548 (817,503 ) – (1,529,666 ) Net loss attributable to non-controlling interest in subsidiary 8,613 – – – 8,613 Net income (loss) attributable to common shareholders $ (14,647,098 ) 13,943,548 (817,503 ) – (1,521,053 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.29 ) $ 0.27 $ (0.01 ) $ (0.00 ) $ (0.03 ) Diluted from continuing operations $ (0.29 ) $ 0.27 $ (0.01 ) $ (0.00 ) $ (0.03 ) Weighted average shares outstanding Basic 51,225,817 51,225,817 51,225,817 51,225,817 51,225,817 Diluted 51,225,817 51,225,817 51,225,817 51,225,817 51,225,817 The following table presents the unaudited quarterly information for the three months ended June 30, 2016: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 13,282,028 – – (198,201 ) $ 13,083,827 Operating expenses Cost of revenues 11,463,125 – 80,126 198,201 11,345,050 General and administrative 7,565,698 (5,697,433 ) 137,414 – 2,005,679 Professional fees 130,018 – – – 130,018 Sales and marketing 122,285 – – – 122,285 Total expenses 19,281,126 5,697,433 (217,540 ) 198,201 13,603,032 Net income (loss) from operations (5,999,098 ) 5,697,433 (217,540 ) – (519,205 ) Other income 439 – – – 439 Interest expense – – – – – Total other income and (expenses) 439 – – – 439 Net income (loss) from operations before income tax expense (5,998,659 ) 5,697,433 (217,540 ) – (518,766 ) Income tax expense (13,968 ) – – – (13,968 ) Net income (loss) (6,012,627 ) 5,697,433 (217,540 ) – (532,734 ) Net loss attributable to non-controlling interest in subsidiary 6,720 – – – 6,720 Net income (loss) attributable to common shareholders $ (6,005,907 ) 5,697,433 (217,540 ) – (526,014 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.12 ) $ 0.11 $ (0.00 ) $ (0.00 ) $ (0.01 ) Diluted from continuing operations $ (0.12 ) $ 0.11 $ (0.00 ) $ (0.00 ) $ (0.01 ) Weighted average shares outstanding Basic 50,940,460 50,940,460 50,940,460 50,940,460 50,940,460 Diluted 50,940,460 50,940,460 50,940,460 50,940,460 50,940,460 The following table presents the unaudited quarterly information for the three months ended March 31, 2016: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 7,142,812 – – (155,829 ) $ 6,986,983 Operating expenses Cost of revenues 6,110,987 – 34,766 155,829 5,989,924 General and administrative 1,425,158 (165,752 ) 30,606 – 1,290,012 Professional fees 143,375 – – – 143,375 Sales and marketing 77,143 – – – 77,143 Total expenses 7,756,663 165,752 (65,372 ) 155,829 7,500,454 Net income (loss) from operations (613,851 ) 165,752 (65,372 ) – (513,471 ) Other income 7 – – – 7 Interest expense – – – – – Total other income and (expenses) 7 – – – 7 Net income (loss) from operations before income tax expense (613,844 ) 165,752 (65,372 ) – (513,464 ) Income tax expense (11,603 ) – – – (11,603 ) Net income (loss) (625,447 ) 165,752 (65,372 ) – (525,067 ) Net loss attributable to non-controlling interest in subsidiary 5,580 – – – 5,580 Net income (loss) attributable to common shareholders $ (619,867 ) 165,752 (65,372 ) – (519,487 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.01 ) $ 0.00 $ (0.00 ) $ (0.00 ) $ (0.01 ) Diluted from continuing operations $ (0.01 ) $ 0.00 $ (0.00 ) $ (0.00 ) $ (0.01 ) Weighted average shares outstanding Basic 50,617,769 50,617,769 50,617,769 50,617,769 50,617,769 Diluted 50,617,769 50,617,769 50,617,769 50,617,769 50,617,769 The following table presents the unaudited quarterly information for the three months ended September 30, 2015: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 7,419,103 – – (109,245 ) $ 7,309,858 Operating expenses Cost of revenues 6,354,951 – 29,697 109,245 6, 275,403 General and administrative (661,707 ) 1,522,943 (5,796 ) – 855,440 Professional fees 138,001 – – – 138,001 Sales and marketing 77,011 – – – 77,011 Total expenses 5,908,256 (1,522,943 ) (23,901 ) 109,245 7,345,855 Net income (loss) from operations 1,510,847 (1,522,943 ) (23,901 ) – (35,997 ) Other income 319 – – – 319 Interest expense (202 ) – – – (202 ) Total other income and (expenses) 117 – – – 117 Net income (loss) from operations before income tax expense 1,510,964 (1,522,943 ) – (35,880 ) Income tax expense (1,244 ) – – – (1,244 ) Net income (loss) 1,509,720 (1,522,943 ) (23,901 ) – (37,124 ) Net loss attributable to non-controlling interest in subsidiary 7,388 – – – 7,388 Net income (loss) attributable to common shareholders $ 1,517,108 (1,522,943 ) (23,901 ) (29,736 ) Net loss per share attributable to common shareholders Basic from continuing operations $ 0.03 $ (0.03 ) $ 0.00 $ (0.00 ) $ (0.00 ) Diluted from continuing operations $ 0.03 $ (0.04 ) $ 0.00 $ (0.00 ) $ (0.01 ) Weighted average shares outstanding Basic 49,714,285 49,714,285 49,714,285 49,714,285 49,714,285 Diluted 51,163,219 51,163,219 51,163,219 51,163,219 51,163,219 The following table presents the unaudited quarterly information for the three months ended June 30, 2015: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 5,584,963 – – (93,856 ) $ 5,491,107 Operating expenses Cost of revenues 4,767,527 – 14,604 93,856 4,688,275 General and administrative 5,669,105 (3,973,717 ) 22,368 – 1,717,756 Professional fees 98,832 – – – 98,832 Sales and marketing 43,006 – – – 43,006 Total expenses 10,578,470 3,973,717 (36,972 ) 93,856 6,547,869 Net income (loss) from operations (4,993,507 ) 3,973,717 (36,972 ) – (1,056,762 ) Other income 2,897 – – – 2,897 Interest expense (464 ) – – – (464 ) Total other income and (expenses) 2,433 – – – 2,433 Net income (loss) from operations before income tax expense (4,991,074 ) 3,973,717 (36,972 ) – (1,054,329 ) Income tax expense (7,080 ) – – – (7,080 ) Net income (loss) (4,998,154 ) 3,973,717 (36,972 ) – (1,061,409 ) Net loss attributable to non-controlling interest in subsidiary – – – – – Net income (loss) attributable to common shareholders $ (4,998,154 ) 3,973,717 (36,972 ) – (1,061,409 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.10 ) $ 0.08 $ (0.00 ) $ (0.00 ) $ (0.02 ) Diluted from continuing operations $ (0.10 ) $ 0.08 $ (0.00 ) $ (0.00 ) $ (0.02 ) Weighted average shares outstanding Basic 49,182,952 49,182,952 49,182,952 49,182,952 49,182,952 Diluted 49,182,952 49,182,952 49,182,952 49,182,952 49,182,952 The following table presents the unaudited quarterly information for the three months ended March 31, 2015: As Previously Reported on Form 10-Q Stock Option Expense Adjustment Agent Incentive Stock Compensation Expense Adjustment Other Adjustments As Restated Net revenues $ 3,449,241 – – (75,771 ) $ 3,373,470 Operating expenses Cost of revenues 2,877,744 – – 75,771 2,801,973 General and administrative 449,936 294,992 3,134 – 748,062 Professional fees 76,603 – – – 645,024 Sales and marketing 46,357 – – – 570,844 Total expenses 3,450,640 (294,922 ) (3,134 ) 75,771 3,672,995 Net income (loss) from operations (1,399 ) (294,922 ) (3,134 ) – (299,525 ) Other income 3,686 – – – 3,686 Interest expense (461 ) – – – (461 ) Total other income and (expenses) 3,225 – – – 3,225 Net income (loss) from operations before income tax expense 1,826 (294,922 ) (3,134 ) – (296,300 ) Income tax expense (18,643 ) – – – (18,643 ) Net income (loss) (16,817 ) (294,922 ) (3,134 ) – (314,943 ) Net loss attributable to non-controlling interest in subsidiary – – – – – Net income (loss) attributable to common shareholders $ (16,817 ) (294,922 ) (3,134 ) – (314,943 ) Net loss per share attributable to common shareholders Basic from continuing operations $ (0.00 ) $ (0.01 ) $ (0.00 ) $ 0.00 $ (0.01 ) Diluted from continuing operations $ (0.00 ) $ (0.01 ) $ (0.00 ) $ 0.00 $ (0.01 ) Weighted average shares outstanding Basic 48,727,385 48,727,385 48,727,385 48,727,385 48,727,385 Diluted 48,727,385 48,727,385 48,727,385 48,727,385 48,727,385 |
2. Summary of Significant Acc30
2. Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted cash | $ 923,193 | $ 481,704 | |
Impairment of long lived assets | 0 | 0 | |
Advertising expense | $ 1,258,334 | $ 503,121 | $ 163,905 |
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. Restatement of Previously 31
3. Restatement of Previously Issued Financial Statements (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net revenues | $ 47,371,745 | $ 38,980,941 | $ 21,528,183 | $ 15,678,677 | $ 13,083,827 | $ 6,986,983 | $ 7,309,858 | $ 5,491,107 | $ 156,104,544 | $ 53,555,725 | $ 22,464,306 | |
Operating expenses | ||||||||||||
Cost of revenues | 42,903,624 | 34,740,874 | 18,960,135 | 13,469,464 | 11,345,050 | 5,989,924 | 6,275,403 | 4,688,275 | $ 2,801,973 | 139,603,970 | 46,438,944 | 19,125,565 |
General and administrative | 9,175,260 | 5,692,648 | 4,775,881 | 3,587,789 | 2,005,679 | 1,290,012 | 855,440 | 1,717,756 | 748,062 | 35,685,512 | 13,272,746 | 4,543,776 |
Professional fees | 223,811 | 318,383 | 364,460 | 140,804 | 130,018 | 143,375 | 138,001 | 98,832 | 76,603 | 1,274,675 | 645,024 | 439,763 |
Sales and marketing | 380,452 | 348,823 | 301,222 | 158,958 | 122,285 | 77,143 | 77,011 | 43,006 | 46,357 | 1,572,041 | 570,844 | 211,456 |
Total expenses | 52,683,147 | 41,100,728 | 24,401,698 | 17,357,026 | 13,603,032 | 7,500,454 | 7,345,855 | 6,547,869 | 3,672,995 | 178,136,198 | 60,927,558 | 24,320,560 |
Net income (loss) from operations | (5,311,402) | (2,119,787) | (2,873,515) | (1,521,790) | (519,205) | (513,471) | (35,997) | (1,056,762) | (299,525) | (22,031,654) | (7,371,833) | (1,856,254) |
Other income | 0 | 0 | 0 | (432) | 439 | 7 | 319 | 2,897 | 3,686 | 0 | 15 | 23 |
Interest expense | (58) | (3,762) | (1,715) | 0 | 0 | 0 | (202) | (464) | (461) | (2,077) | (370) | (1,127) |
Total other income and (expenses) | (58) | (3,762) | (1,715) | (432) | 439 | 7 | 117 | 2,433 | 3,225 | (2,077) | (355) | (1,104) |
Net income (loss) from operations before income tax expense | (5,311,460) | (2,123,548) | (2,875,230) | (1,522,222) | (518,766) | (513,464) | (35,880) | (1,054,329) | (296,300) | (22,033,731) | (7,372,188) | (1,857,358) |
Income tax expense | (3,277) | (23,747) | (24,591) | (7,444) | (13,968) | (11,603) | (1,244) | (7,080) | (18,643) | (97,234) | (42,528) | (103,069) |
Net income (loss) | (5,314,737) | (2,147,296) | (2,899,821) | (1,529,666) | (532,734) | (525,067) | (37,124) | (1,061,409) | (314,943) | (22,130,965) | (7,414,716) | (1,960,427) |
Net loss attributable to non-controlling interest in subsidiary | 0 | 0 | 0 | 8,613 | 6,720 | 5,580 | 7,388 | 0 | 0 | 0 | 29,801 | 21,526 |
Net income (loss) attributable to common shareholders | $ (5,314,737) | $ (2,147,296) | $ (2,899,821) | $ (1,521,053) | $ (526,014) | $ (519,487) | $ (29,736) | $ (1,061,409) | $ (314,943) | $ (22,130,965) | $ (7,384,915) | $ (1,938,901) |
Net loss per share attributable to common shareholders - Basic from continuing operations | $ (0.10) | $ (0.04) | $ (0.05) | $ (0.03) | $ (0.01) | $ (0.02) | $ 0 | $ (0.02) | $ (0.01) | $ (0.42) | $ (0.14) | $ (0.04) |
Net loss per share attributable to common shareholders - Diluted from continuing operations | $ (0.10) | $ (0.04) | $ (0.05) | $ (0.03) | $ (0.01) | $ (0.02) | $ (0.01) | $ (0.02) | $ (0.01) | $ (0.42) | $ (0.14) | $ (0.04) |
Weighted average shares outstanding - Basic | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,617,769 | 49,714,285 | 49,182,952 | 48,727,385 | 53,194,928 | 51,081,949 | 49,409,266 |
Weighted average shares outstanding - Diluted | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,617,769 | 51,163,219 | 49,182,952 | 48,727,385 | 53,194,928 | 51,081,949 | 49,409,266 |
Scenario, Previously Reported [Member] | ||||||||||||
Net revenues | $ 48,105,769 | $ 39,574,311 | $ 22,011,237 | $ 15,756,956 | $ 13,285,028 | $ 7,142,812 | $ 7,419,103 | $ 5,584,963 | $ 3,449,241 | $ 54,179,511 | $ 22,866,787 | |
Operating expenses | ||||||||||||
Cost of revenues | 43,291,473 | 35,048,967 | 19,279,626 | 13,294,452 | 11,463,125 | 6,110,987 | 6,354,954 | 4,767,527 | 2,877,744 | 46,726,533 | 19,456,409 | |
General and administrative | 11,987,268 | 600 | 2,109,352 | 16,810,567 | 7,565,698 | 1,425,158 | (661,707) | 5,669,105 | 449,936 | 32,237,501 | 7,257,961 | |
Professional fees | 223,811 | 318,383 | 364,460 | 140,804 | 130,018 | 143,375 | 138,001 | 98,832 | 76,603 | 645,024 | 439,763 | |
Sales and marketing | 380,452 | 348,823 | 301,222 | 158,968 | 122,285 | 77,143 | 77,011 | 43,006 | 46,357 | 570,844 | 211,456 | |
Total expenses | 55,883,004 | 36,316,593 | 22,054,660 | 30,404,791 | 19,281,126 | 7,756,663 | 5,908,256 | 10,578,470 | 3,450,640 | 80,179,902 | 27,365,589 | |
Net income (loss) from operations | (7,777,235) | 3,257,718 | (43,423) | (14,647,835) | (5,999,098) | (613,851) | 1,510,847 | (4,993,507) | (1,399) | (26,000,391) | (4,498,802) | |
Other income | 0 | 0 | 0 | (432) | 439 | 7 | 319 | 2,897 | 3,686 | 15 | 23 | |
Interest expense | (58) | (3,762) | (1,715) | 0 | 0 | 0 | (202) | (464) | (461) | (370) | (1,127) | |
Total other income and (expenses) | (58) | (3,762) | (1,715) | (432) | 439 | 7 | 117 | 2,433 | 3,225 | (355) | (1,104) | |
Net income (loss) from operations before income tax expense | (7,777,293) | 3,253,956 | (45,138) | (14,648,267) | (5,998,659) | (613,844) | 1,510,964 | (4,991,074) | 1,826 | (26,000,746) | (4,499,906) | |
Income tax expense | (3,277) | (23,747) | (24,591) | (7,444) | (13,968) | (11,603) | (1,244) | (7,080) | (18,643) | (42,528) | (103,069) | |
Net income (loss) | (7,780,570) | 3,230,209 | (69,729) | (14,655,711) | (6,012,627) | (625,447) | 1,509,720 | (4,998,154) | (16,817) | (26,043,274) | (4,602,975) | |
Net loss attributable to non-controlling interest in subsidiary | 0 | 0 | 0 | 8,613 | 6,270 | 5,580 | 7,388 | 0 | 0 | 29,801 | 21,526 | |
Net income (loss) attributable to common shareholders | $ (7,780,570) | $ 3,230,209 | $ (69,729) | $ (14,647,098) | $ (6,005,907) | $ (619,867) | $ 1,517,108 | $ (4,998,154) | $ (16,817) | $ (26,013,473) | $ (4,581,449) | |
Net loss per share attributable to common shareholders - Basic from continuing operations | $ (0.15) | $ 0.06 | $ 0 | $ (0.29) | $ (0.12) | $ (0.01) | $ 0.03 | $ (0.10) | $ 0 | $ (0.51) | $ (0.09) | |
Net loss per share attributable to common shareholders - Diluted from continuing operations | $ (0.15) | $ 0.05 | $ 0 | $ (0.29) | $ (0.12) | $ (0.01) | $ 0.03 | $ (0.10) | $ 0 | $ (0.51) | $ (0.09) | |
Weighted average shares outstanding - Basic | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 49,714,285 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 | |
Weighted average shares outstanding - Diluted | 53,335,822 | 59,640,200 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 51,163,219 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 | |
Stock Option Expense Adjustment [Member] | ||||||||||||
Net revenues | $ 0 | $ 0 | ||||||||||
Operating expenses | ||||||||||||
Cost of revenues | 0 | 0 | ||||||||||
General and administrative | $ (3,007,819) | $ 5,427,087 | $ 2,669,099 | $ (13,943,548) | $ (5,697,433) | $ (165,752) | $ 1,522,943 | $ (3,973,717) | $ 294,992 | (19,843,746) | (2,764,252) | |
Professional fees | 0 | 0 | ||||||||||
Sales and marketing | 0 | 0 | ||||||||||
Total expenses | 3,007,819 | (5,427,087) | (2,669,099) | 13,943,548 | 5,697,433 | 165,752 | (1,522,943) | 3,973,717 | (294,922) | (19,843,746) | (2,764,252) | |
Net income (loss) from operations | 3,007,819 | (5,427,087) | (2,669,099) | 13,943,548 | 5,697,433 | 165,752 | (1,522,943) | 3,973,717 | (294,922) | 19,843,746 | 2,764,252 | |
Other income | 0 | 0 | ||||||||||
Interest expense | 0 | 0 | ||||||||||
Total other income and (expenses) | 0 | 0 | ||||||||||
Net income (loss) from operations before income tax expense | 3,007,819 | (5,427,087) | (2,669,099) | 13,943,548 | 5,697,433 | 165,752 | (1,522,943) | 3,973,717 | (294,922) | 19,843,746 | 2,764,252 | |
Income tax expense | 0 | 0 | ||||||||||
Net income (loss) | 3,007,819 | (5,427,087) | (2,669,099) | 13,943,548 | 5,697,433 | 165,752 | (1,522,943) | 3,973,717 | (294,922) | 19,843,746 | 2,764,252 | |
Net loss attributable to non-controlling interest in subsidiary | 0 | 0 | ||||||||||
Net income (loss) attributable to common shareholders | $ 3,007,819 | $ (5,427,087) | $ (2,669,099) | $ 13,943,548 | $ 5,697,433 | $ 165,752 | $ (1,522,943) | $ 3,973,717 | $ (294,922) | $ 19,843,746 | $ 2,764,252 | |
Net loss per share attributable to common shareholders - Basic from continuing operations | $ 0.06 | $ (0.10) | $ (0.05) | $ 0.27 | $ 0.11 | $ 0 | $ (0.03) | $ 0.08 | $ (0.01) | $ 0.39 | $ 0.06 | |
Net loss per share attributable to common shareholders - Diluted from continuing operations | $ 0.06 | $ (0.10) | $ (0.05) | $ 0.27 | $ 0.11 | $ 0 | $ (0.04) | $ 0.08 | $ (0.01) | $ 0.39 | $ 0.06 | |
Weighted average shares outstanding - Basic | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 49,714,285 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 | |
Weighted average shares outstanding - Diluted | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 51,163,219 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 | |
Agent Incentive Stock Compensation Expense Adjustment [Member] | ||||||||||||
Net revenues | $ 0 | $ 0 | ||||||||||
Operating expenses | ||||||||||||
Cost of revenues | $ 346,175 | $ 285,277 | $ 163,563 | $ 96,733 | $ 80,126 | $ 34,766 | $ 29,697 | $ 14,604 | 336,197 | 71,637 | ||
General and administrative | 195,811 | (334,860) | (2,570) | 720,770 | 137,414 | 30,606 | (5,796) | 22,368 | $ 3,134 | 878,991 | 50,067 | |
Professional fees | 0 | 0 | ||||||||||
Sales and marketing | 0 | 0 | ||||||||||
Total expenses | (541,986) | 49,583 | (160,993) | (817,503) | (217,540) | (65,372) | (23,901) | (36,972) | (3,134) | (1,215,188) | 121,704 | |
Net income (loss) from operations | (541,986) | 49,583 | (160,993) | (817,503) | (217,540) | (65,372) | (23,901) | (36,972) | (3,134) | (1,215,188) | (121,704) | |
Other income | 0 | 0 | ||||||||||
Interest expense | 0 | 0 | ||||||||||
Total other income and (expenses) | 0 | 0 | ||||||||||
Net income (loss) from operations before income tax expense | (541,986) | 49,583 | (160,993) | (817,503) | (217,540) | (65,372) | (23,901) | (36,972) | (3,134) | (1,215,188) | (121,704) | |
Income tax expense | 0 | 0 | ||||||||||
Net income (loss) | (541,986) | 49,583 | (160,993) | (817,503) | (217,540) | (65,372) | (23,901) | (36,972) | (3,134) | (1,215,188) | (121,704) | |
Net loss attributable to non-controlling interest in subsidiary | 0 | 0 | ||||||||||
Net income (loss) attributable to common shareholders | $ (541,986) | $ 49,583 | $ (160,993) | $ (817,503) | $ (217,540) | $ (65,372) | $ (23,901) | $ (36,972) | $ (3,134) | $ (1,215,188) | $ (121,704) | |
Net loss per share attributable to common shareholders - Basic from continuing operations | $ (0.01) | $ 0 | $ 0 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.02) | $ 0 | |
Net loss per share attributable to common shareholders - Diluted from continuing operations | $ (0.01) | $ 0 | $ 0 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.02) | $ 0 | |
Weighted average shares outstanding - Basic | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 49,714,285 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 | |
Weighted average shares outstanding - Diluted | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 51,163,219 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 | |
Other Adjustments [Member] | ||||||||||||
Net revenues | $ (734,024) | $ (593,370) | $ (483,054) | $ (78,279) | $ (198,201) | $ (155,829) | $ (109,245) | $ (93,856) | $ (75,771) | $ (623,786) | $ (402,481) | |
Operating expenses | ||||||||||||
Cost of revenues | $ 734,024 | 593,370 | 483,054 | 78,279 | 198,201 | 155,829 | 109,245 | 93,856 | 75,771 | 623,786 | 402,482 | |
General and administrative | 0 | |||||||||||
Professional fees | 0 | 0 | ||||||||||
Sales and marketing | 0 | 0 | ||||||||||
Total expenses | $ 593,370 | $ 483,054 | $ 78,279 | $ 198,201 | $ 155,829 | $ 109,245 | $ 93,856 | 75,771 | 623,786 | (402,481) | ||
Net income (loss) from operations | 75,771 | (336,197) | ||||||||||
Other income | 0 | 0 | ||||||||||
Interest expense | 0 | 0 | ||||||||||
Total other income and (expenses) | 0 | 0 | ||||||||||
Net income (loss) from operations before income tax expense | 75,771 | (336,197) | ||||||||||
Income tax expense | 0 | 0 | ||||||||||
Net income (loss) | 75,771 | (336,197) | ||||||||||
Net loss attributable to non-controlling interest in subsidiary | 0 | 0 | ||||||||||
Net income (loss) attributable to common shareholders | $ 75,771 | $ (336,197) | $ 0 | |||||||||
Net loss per share attributable to common shareholders - Basic from continuing operations | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |
Net loss per share attributable to common shareholders - Diluted from continuing operations | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |
Weighted average shares outstanding - Basic | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 49,714,285 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 | |
Weighted average shares outstanding - Diluted | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 51,163,219 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 |
4. Prepaid and Other Current 32
4. Prepaid and Other Current Assets (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 219,074 | $ 199,066 |
Prepaid insurance | 287,244 | 145,825 |
Rent deposits | 68,196 | 28,047 |
Other assets | 16,520 | 10,625 |
Prepaid and other current assets | $ 591,034 | $ 383,563 |
5. Fixed Assets, Net (Details)
5. Fixed Assets, Net (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Property and equipment, gross | $ 1,988,659 | $ 225,500 |
Less: accumulated depreciation and amortization | (450,446) | (97,216) |
Depreciable property, net | 1,538,213 | 128,284 |
Assets under development | 0 | 410,121 |
Property and equipment, net | 1,538,213 | 538,405 |
Computer hardware and software [Member] | ||
Property and equipment, gross | 1,982,749 | 219,590 |
Furniture, fixtures and equipment [Member] | ||
Property and equipment, gross | $ 5,910 | $ 5,910 |
5. Fixed Assets, Net (Details N
5. Fixed Assets, Net (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 353,230 | $ 58,374 |
6. Accrued Expenses (Details)
6. Accrued Expenses (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Commissions payable | $ 7,565,357 | $ 2,417,621 |
Payroll payable | 749,203 | 54,402 |
Vacation payable | 283,077 | 78,294 |
Taxes payable | 99,809 | 58,714 |
Other accrued expenses | 120,734 | 133,088 |
Total accrued expenses | $ 8,818,180 | $ 2,742,119 |
7. Debt (Details Narrative)
7. Debt (Details Narrative) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Details Narrative | ||
Notes payable current portion | $ 0 | $ 35,778 |
Accrued interest | 0 | $ 1,034 |
Line of credit maximum amount | 500,000 | |
Line of credit amount outstanding | $ 0 |
8. Stockholders' Equity (Detail
8. Stockholders' Equity (Details - Restricted stock activity) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted stock outstanding, beginning balance | 3,057,879 | 1,293,056 | 354,700 |
Restricted stock granted | 2,024,498 | 2,452,965 | 1,011,956 |
Restricted stock issued | (1,457,538) | (558,567) | 0 |
Restricted stock forfeited | (565,774) | (129,575) | (73,600) |
Restricted stock outstanding, ending balance | 3,059,065 | 3,057,879 | 1,293,056 |
Weighted average price - Restricted stock outstanding, beginning balance | $ 4.05 | $ 0.84 | $ 0.30 |
Weighted average price - Restricted stock granted | 7.60 | 4.05 | 0.84 |
Weighted average price - Restricted stock issued | 5.27 | 4.30 | |
Weighted average price - Restricted stock forfeited | 4.76 | 2.57 | 0.84 |
Weighted average price - Restricted stock outstanding, ending balance | $ 7.60 | $ 4.05 | $ 0.84 |
8. Stockholders' Equity (Deta38
8. Stockholders' Equity (Details - Option activity) - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options | |||
Beginning balance | 10,747,558 | 7,281,250 | 7,211,479 |
Granted | 2,848,231 | 4,130,000 | 337,750 |
Exercised | (181,572) | (159,678) | 0 |
Forfeited | (2,540,925) | (504,014) | (267,979) |
Ending balance | 10,873,292 | 10,747,558 | 7,281,250 |
Exercisable | 7,692,566 | ||
Vested | 8,031,986 | ||
Weighted Average Price | |||
Beginning balance | $ 0.67 | $ 0.17 | $ 0.15 |
Granted | 3.76 | 1.53 | 0.56 |
Exercised | 0.26 | 0.13 | |
Forfeited | 2.31 | 1.19 | |
Ending balance | 1.50 | 0.67 | 0.17 |
Exercisable | 0.57 | ||
Vested | 0.66 | ||
Intrinsic Value | |||
Beginning balance | 3.56 | 0.17 | 0.17 |
Granted | |||
Exercised | 6.86 | 1.42 | |
Forfeited | 3.20 | 3.36 | |
Ending balance | 5.08 | $ 3.56 | $ 0.17 |
Exercisable | 6.16 | ||
Vested | $ 6.94 | ||
Weighted average remaining contractual term | |||
Weighted average contractual term | 6 years 7 months 24 days | 7 years 9 months | 7 years |
Granted | 6 years 1 month 24 days | 9 years 9 months | 10 years |
Exercisable | 5 years 8 months 26 days | ||
Vested | 5 years 10 months 13 days |
8. Stockholders' Equity (Deta39
8. Stockholders' Equity (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common stock issued | 54,962,535 | 52,316,679 | |
Common stock outstanding | 54,962,535 | 52,316,679 | |
Payment of stock issuance costs | $ 0 | $ 49,980 | $ 0 |
Proceeds from options exercised | 46,596 | 4,900 | 0 |
Payment for common stock repurchased and retired | 3,607 | 0 | 3,132 |
Stock issued for services, value | 5,857,554 | 1,778,437 | 355,746 |
Stock issued for compensation, value | $ 10,961,631 | 4,996,649 | 1,059,035 |
Unvested stock awards | 1,953,074 | ||
Unrecognized compensation expense - options | $ 4,858,670 | ||
Unrecognized compensation expense - stock awards | 13,450,031 | ||
Stock based compensation | $ 10,961,631 | 4,996,640 | $ 1,059,035 |
Post 2013 Stock Options [Member] | |||
Stock options granted, shares | 1,848,231 | ||
Stock options granted fair value | $ 8,223,561 | ||
Stock based compensation | $ 368,000 | ||
First Cloud Mortgage [Member] | |||
Cash paid for acquisition | $ 97,000 | ||
Common Stock [Member] | |||
Common stock repurchased and retired, shares | 1,307 | ||
Payment for common stock repurchased and retired | $ 3,607 | ||
Stock Options Exercised [Member] | |||
Stock issued for options exercised, shares | 181,572 | ||
Proceeds from options exercised | $ 46,594 | ||
Exercise of Stock Options [Member] | |||
Stock issued for options exercised, shares | 159,678 | ||
Proceeds from options exercised | $ 4,900 | ||
Accredited Investors [Member] | |||
Stock issued new, shares | 49,231 | 184,615 | |
Proceeds from private placement | $ 760,000 | $ 600,000 | |
Payment of stock issuance costs | $ 49,980 | ||
2015 Agent Equity Program [Member] | |||
Stock issued for services, shares | 1,464,997 | 785,504 | 420,866 |
Stock issued for services, value | $ 5,857,554 | $ 1,778,429 | $ 352,575 |
Real Estate Agent Growth and Other Incentive Programs [Member] | |||
Stock issued for services, shares | 1,000,594 | 1,018,687 | 1,192,950 |
Stock issued for services, value | $ 10,961,631 | $ 4,996,640 | $ 1,059,023 |
Agents and Brokers [Member] | |||
Stock issued for settlement of commissions payable, shares | 1,464,997 | 785,504 | 420,866 |
Stock issued for settlement of commissions payable, value | $ 5,857,539 | $ 1,709,959 | $ 352,575 |
9. Income Taxes (Details-Provis
9. Income Taxes (Details-Provision for income taxes) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | ||||||||||||
Federal | $ 0 | $ 0 | $ 0 | |||||||||
State | 86,787 | 37,070 | 14,875 | |||||||||
Foreign | 10,447 | 5,458 | 6,691 | |||||||||
Total Current | 97,234 | 42,528 | 21,566 | |||||||||
Deferred: | ||||||||||||
Federal | 0 | 0 | 77,428 | |||||||||
State | 0 | 0 | 4,075 | |||||||||
Total Deferred | 0 | 0 | 81,503 | |||||||||
Total provision (benefit) for income taxes | $ 3,277 | $ 23,747 | $ 24,591 | $ 7,444 | $ 13,968 | $ 11,603 | $ 1,244 | $ 7,080 | $ 18,643 | $ 97,234 | $ 42,528 | $ 103,069 |
9. Income Taxes (Details-Federa
9. Income Taxes (Details-Federal Statutory Rate) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal Statutory Tax Rate | 38.25% | 38.25% | 38.25% |
State taxes | (0.39%) | 0.00% | (0.32%) |
Permanent differences | (0.31%) | (0.09%) | (7.01%) |
Non-deductible share-based compensation | (19.70%) | (589000.00%) | 0.00% |
Foreign tax rate differential | (0.05%) | 0.00% | 0.22% |
Change in tax rate | (6.33%) | 0.00% | 0.00% |
Prior year true up | 0.00% | (0.04%) | (0.34%) |
Valuation allowance | (11.90%) | 20.23% | (35.98%) |
Other net | (0.01%) | 0.00% | 0.00% |
Total Tax Expense | (0.44%) | (0.56%) | (5.18%) |
9. Income Taxes (Details-Deferr
9. Income Taxes (Details-Deferred Tax Assets) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | |||
Net operating loss carryforward | $ 2,445,965 | $ 679,797 | $ 174,942 |
Temporary differences | 241,649 | 63,172 | 17,099 |
Share-based compensation | 430,614 | 0 | 917,977 |
Gross deferred tax assets | 3,118,228 | 742,969 | 1,110,017 |
Deferred tax liabilities | |||
Property and equipment | (17,835) | 0 | (17,813) |
Less Valuation Allowance | (3,100,394) | (742,969) | (1,092,204) |
Net Deferred Tax Asset | $ 0 | $ 0 | $ 0 |
9. Income Taxes (Details Narrat
9. Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Federal net operating loss | $ 4,700,000 | |
Net operating loss expiration date | Dec. 31, 2031 | |
Change in valuation allowance | $ 2,357,426 | $ (1,317,385) |
Unrecognized tax benefits | $ 0 |
10. Commitments and Contingen44
10. Commitments and Contingencies (Details) | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Future operating lease expense 2018 | $ 213,026 |
Future operating lease expense 2019 | 94,881 |
Future operating lease expense 2020 | 4,997 |
Future operating lease expense 2021 | 4,560 |
Future operating lease expense 2022 and thereafter | 4,560 |
Operating lease expense | $ 322,024 |
11. Segment Information (Detail
11. Segment Information (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net revenues | $ 47,371,745 | $ 38,980,941 | $ 21,528,183 | $ 15,678,677 | $ 13,083,827 | $ 6,986,983 | $ 7,309,858 | $ 5,491,107 | $ 156,104,544 | $ 53,555,725 | $ 22,464,306 |
CANADA | |||||||||||
Net revenues | $ 159,048,809 | ||||||||||
CANADA | Sales Revenue, Net [Member] | |||||||||||
Concentration risk percentage | 1.00% | 2.00% |
12. Related Party Transactions
12. Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share based compensation expense | $ 10,961,631 | $ 4,996,640 | $ 1,059,035 |
Hawkes [Member] | |||
Options granted | 350,000 | ||
Fair value of options granted | $ 1,333,501 | ||
Share based compensation expense | $ 254,522 | ||
Options forfeited | 350,000 |
13. Unaudited Quarterly Finan47
13. Unaudited Quarterly Financial Data (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net revenues | $ 47,371,745 | $ 38,980,941 | $ 21,528,183 | $ 15,678,677 | $ 13,083,827 | $ 6,986,983 | $ 7,309,858 | $ 5,491,107 | $ 156,104,544 | $ 53,555,725 | $ 22,464,306 | |
Operating expenses | ||||||||||||
Cost of revenues | 42,903,624 | 34,740,874 | 18,960,135 | 13,469,464 | 11,345,050 | 5,989,924 | 6,275,403 | 4,688,275 | $ 2,801,973 | 139,603,970 | 46,438,944 | 19,125,565 |
General and administrative | 9,175,260 | 5,692,648 | 4,775,881 | 3,587,789 | 2,005,679 | 1,290,012 | 855,440 | 1,717,756 | 748,062 | 35,685,512 | 13,272,746 | 4,543,776 |
Professional fees | 223,811 | 318,383 | 364,460 | 140,804 | 130,018 | 143,375 | 138,001 | 98,832 | 76,603 | 1,274,675 | 645,024 | 439,763 |
Sales and marketing | 380,452 | 348,823 | 301,222 | 158,958 | 122,285 | 77,143 | 77,011 | 43,006 | 46,357 | 1,572,041 | 570,844 | 211,456 |
Total expenses | 52,683,147 | 41,100,728 | 24,401,698 | 17,357,026 | 13,603,032 | 7,500,454 | 7,345,855 | 6,547,869 | 3,672,995 | 178,136,198 | 60,927,558 | 24,320,560 |
Net income (loss) from operations | (5,311,402) | (2,119,787) | (2,873,515) | (1,521,790) | (519,205) | (513,471) | (35,997) | (1,056,762) | (299,525) | (22,031,654) | (7,371,833) | (1,856,254) |
Other income | 0 | 0 | 0 | (432) | 439 | 7 | 319 | 2,897 | 3,686 | 0 | 15 | 23 |
Interest expense | (58) | (3,762) | (1,715) | 0 | 0 | 0 | (202) | (464) | (461) | (2,077) | (370) | (1,127) |
Total other income and (expenses) | (58) | (3,762) | (1,715) | (432) | 439 | 7 | 117 | 2,433 | 3,225 | (2,077) | (355) | (1,104) |
Net income (loss) from operations before income tax expense | (5,311,460) | (2,123,548) | (2,875,230) | (1,522,222) | (518,766) | (513,464) | (35,880) | (1,054,329) | (296,300) | (22,033,731) | (7,372,188) | (1,857,358) |
Income tax expense | (3,277) | (23,747) | (24,591) | (7,444) | (13,968) | (11,603) | (1,244) | (7,080) | (18,643) | (97,234) | (42,528) | (103,069) |
Net loss | (5,314,737) | (2,147,296) | (2,899,821) | (1,529,666) | (532,734) | (525,067) | (37,124) | (1,061,409) | (314,943) | (22,130,965) | (7,414,716) | (1,960,427) |
Net loss attributable to non-controlling interest in subsidiary | 0 | 0 | 0 | 8,613 | 6,720 | 5,580 | 7,388 | 0 | 0 | 0 | 29,801 | 21,526 |
Net loss attributable to common shareholders | $ (5,314,737) | $ (2,147,296) | $ (2,899,821) | $ (1,521,053) | $ (526,014) | $ (519,487) | $ (29,736) | $ (1,061,409) | $ (314,943) | $ (22,130,965) | $ (7,384,915) | $ (1,938,901) |
Net loss per share attributable to common sharesholders - Basic from continuing operations | $ (0.10) | $ (0.04) | $ (0.05) | $ (0.03) | $ (0.01) | $ (0.02) | $ 0 | $ (0.02) | $ (0.01) | $ (0.42) | $ (0.14) | $ (0.04) |
Net loss per share attributable to common sharesholders - Diluted from continuing operations | $ (0.10) | $ (0.04) | $ (0.05) | $ (0.03) | $ (0.01) | $ (0.02) | $ (0.01) | $ (0.02) | $ (0.01) | $ (0.42) | $ (0.14) | $ (0.04) |
Weighted average shares outstanding - Basic | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,617,769 | 49,714,285 | 49,182,952 | 48,727,385 | 53,194,928 | 51,081,949 | 49,409,266 |
Weighted average shares outstanding - Diluted | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,617,769 | 51,163,219 | 49,182,952 | 48,727,385 | 53,194,928 | 51,081,949 | 49,409,266 |
Scenario, Previously Reported [Member] | ||||||||||||
Net revenues | $ 48,105,769 | $ 39,574,311 | $ 22,011,237 | $ 15,756,956 | $ 13,285,028 | $ 7,142,812 | $ 7,419,103 | $ 5,584,963 | $ 3,449,241 | $ 54,179,511 | $ 22,866,787 | |
Operating expenses | ||||||||||||
Cost of revenues | 43,291,473 | 35,048,967 | 19,279,626 | 13,294,452 | 11,463,125 | 6,110,987 | 6,354,954 | 4,767,527 | 2,877,744 | 46,726,533 | 19,456,409 | |
General and administrative | 11,987,268 | 600 | 2,109,352 | 16,810,567 | 7,565,698 | 1,425,158 | (661,707) | 5,669,105 | 449,936 | 32,237,501 | 7,257,961 | |
Professional fees | 223,811 | 318,383 | 364,460 | 140,804 | 130,018 | 143,375 | 138,001 | 98,832 | 76,603 | 645,024 | 439,763 | |
Sales and marketing | 380,452 | 348,823 | 301,222 | 158,968 | 122,285 | 77,143 | 77,011 | 43,006 | 46,357 | 570,844 | 211,456 | |
Total expenses | 55,883,004 | 36,316,593 | 22,054,660 | 30,404,791 | 19,281,126 | 7,756,663 | 5,908,256 | 10,578,470 | 3,450,640 | 80,179,902 | 27,365,589 | |
Net income (loss) from operations | (7,777,235) | 3,257,718 | (43,423) | (14,647,835) | (5,999,098) | (613,851) | 1,510,847 | (4,993,507) | (1,399) | (26,000,391) | (4,498,802) | |
Other income | 0 | 0 | 0 | (432) | 439 | 7 | 319 | 2,897 | 3,686 | 15 | 23 | |
Interest expense | (58) | (3,762) | (1,715) | 0 | 0 | 0 | (202) | (464) | (461) | (370) | (1,127) | |
Total other income and (expenses) | (58) | (3,762) | (1,715) | (432) | 439 | 7 | 117 | 2,433 | 3,225 | (355) | (1,104) | |
Net income (loss) from operations before income tax expense | (7,777,293) | 3,253,956 | (45,138) | (14,648,267) | (5,998,659) | (613,844) | 1,510,964 | (4,991,074) | 1,826 | (26,000,746) | (4,499,906) | |
Income tax expense | (3,277) | (23,747) | (24,591) | (7,444) | (13,968) | (11,603) | (1,244) | (7,080) | (18,643) | (42,528) | (103,069) | |
Net loss | (7,780,570) | 3,230,209 | (69,729) | (14,655,711) | (6,012,627) | (625,447) | 1,509,720 | (4,998,154) | (16,817) | (26,043,274) | (4,602,975) | |
Net loss attributable to non-controlling interest in subsidiary | 0 | 0 | 0 | 8,613 | 6,270 | 5,580 | 7,388 | 0 | 0 | 29,801 | 21,526 | |
Net loss attributable to common shareholders | $ (7,780,570) | $ 3,230,209 | $ (69,729) | $ (14,647,098) | $ (6,005,907) | $ (619,867) | $ 1,517,108 | $ (4,998,154) | $ (16,817) | $ (26,013,473) | $ (4,581,449) | |
Net loss per share attributable to common sharesholders - Basic from continuing operations | $ (0.15) | $ 0.06 | $ 0 | $ (0.29) | $ (0.12) | $ (0.01) | $ 0.03 | $ (0.10) | $ 0 | $ (0.51) | $ (0.09) | |
Net loss per share attributable to common sharesholders - Diluted from continuing operations | $ (0.15) | $ 0.05 | $ 0 | $ (0.29) | $ (0.12) | $ (0.01) | $ 0.03 | $ (0.10) | $ 0 | $ (0.51) | $ (0.09) | |
Weighted average shares outstanding - Basic | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 49,714,285 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 | |
Weighted average shares outstanding - Diluted | 53,335,822 | 59,640,200 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 51,163,219 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 | |
Stock Option Expense Adjustment [Member] | ||||||||||||
Net revenues | $ 0 | $ 0 | ||||||||||
Operating expenses | ||||||||||||
Cost of revenues | 0 | 0 | ||||||||||
General and administrative | $ (3,007,819) | $ 5,427,087 | $ 2,669,099 | $ (13,943,548) | $ (5,697,433) | $ (165,752) | $ 1,522,943 | $ (3,973,717) | $ 294,992 | (19,843,746) | (2,764,252) | |
Professional fees | 0 | 0 | ||||||||||
Sales and marketing | 0 | 0 | ||||||||||
Total expenses | 3,007,819 | (5,427,087) | (2,669,099) | 13,943,548 | 5,697,433 | 165,752 | (1,522,943) | 3,973,717 | (294,922) | (19,843,746) | (2,764,252) | |
Net income (loss) from operations | 3,007,819 | (5,427,087) | (2,669,099) | 13,943,548 | 5,697,433 | 165,752 | (1,522,943) | 3,973,717 | (294,922) | 19,843,746 | 2,764,252 | |
Other income | 0 | 0 | ||||||||||
Interest expense | 0 | 0 | ||||||||||
Total other income and (expenses) | 0 | 0 | ||||||||||
Net income (loss) from operations before income tax expense | 3,007,819 | (5,427,087) | (2,669,099) | 13,943,548 | 5,697,433 | 165,752 | (1,522,943) | 3,973,717 | (294,922) | 19,843,746 | 2,764,252 | |
Income tax expense | 0 | 0 | ||||||||||
Net loss | 3,007,819 | (5,427,087) | (2,669,099) | 13,943,548 | 5,697,433 | 165,752 | (1,522,943) | 3,973,717 | (294,922) | 19,843,746 | 2,764,252 | |
Net loss attributable to non-controlling interest in subsidiary | 0 | 0 | ||||||||||
Net loss attributable to common shareholders | $ 3,007,819 | $ (5,427,087) | $ (2,669,099) | $ 13,943,548 | $ 5,697,433 | $ 165,752 | $ (1,522,943) | $ 3,973,717 | $ (294,922) | $ 19,843,746 | $ 2,764,252 | |
Net loss per share attributable to common sharesholders - Basic from continuing operations | $ 0.06 | $ (0.10) | $ (0.05) | $ 0.27 | $ 0.11 | $ 0 | $ (0.03) | $ 0.08 | $ (0.01) | $ 0.39 | $ 0.06 | |
Net loss per share attributable to common sharesholders - Diluted from continuing operations | $ 0.06 | $ (0.10) | $ (0.05) | $ 0.27 | $ 0.11 | $ 0 | $ (0.04) | $ 0.08 | $ (0.01) | $ 0.39 | $ 0.06 | |
Weighted average shares outstanding - Basic | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 49,714,285 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 | |
Weighted average shares outstanding - Diluted | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 51,163,219 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 | |
Agent Incentive Stock Compensation Expense Adjustment [Member] | ||||||||||||
Net revenues | $ 0 | $ 0 | ||||||||||
Operating expenses | ||||||||||||
Cost of revenues | $ 346,175 | $ 285,277 | $ 163,563 | $ 96,733 | $ 80,126 | $ 34,766 | $ 29,697 | $ 14,604 | 336,197 | 71,637 | ||
General and administrative | 195,811 | (334,860) | (2,570) | 720,770 | 137,414 | 30,606 | (5,796) | 22,368 | $ 3,134 | 878,991 | 50,067 | |
Professional fees | 0 | 0 | ||||||||||
Sales and marketing | 0 | 0 | ||||||||||
Total expenses | (541,986) | 49,583 | (160,993) | (817,503) | (217,540) | (65,372) | (23,901) | (36,972) | (3,134) | (1,215,188) | 121,704 | |
Net income (loss) from operations | (541,986) | 49,583 | (160,993) | (817,503) | (217,540) | (65,372) | (23,901) | (36,972) | (3,134) | (1,215,188) | (121,704) | |
Other income | 0 | 0 | ||||||||||
Interest expense | 0 | 0 | ||||||||||
Total other income and (expenses) | 0 | 0 | ||||||||||
Net income (loss) from operations before income tax expense | (541,986) | 49,583 | (160,993) | (817,503) | (217,540) | (65,372) | (23,901) | (36,972) | (3,134) | (1,215,188) | (121,704) | |
Income tax expense | 0 | 0 | ||||||||||
Net loss | (541,986) | 49,583 | (160,993) | (817,503) | (217,540) | (65,372) | (23,901) | (36,972) | (3,134) | (1,215,188) | (121,704) | |
Net loss attributable to non-controlling interest in subsidiary | 0 | 0 | ||||||||||
Net loss attributable to common shareholders | $ (541,986) | $ 49,583 | $ (160,993) | $ (817,503) | $ (217,540) | $ (65,372) | $ (23,901) | $ (36,972) | $ (3,134) | $ (1,215,188) | $ (121,704) | |
Net loss per share attributable to common sharesholders - Basic from continuing operations | $ (0.01) | $ 0 | $ 0 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.02) | $ 0 | |
Net loss per share attributable to common sharesholders - Diluted from continuing operations | $ (0.01) | $ 0 | $ 0 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.02) | $ 0 | |
Weighted average shares outstanding - Basic | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 49,714,285 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 | |
Weighted average shares outstanding - Diluted | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 51,163,219 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 | |
Other Adjustments [Member] | ||||||||||||
Net revenues | $ (734,024) | $ (593,370) | $ (483,054) | $ (78,279) | $ (198,201) | $ (155,829) | $ (109,245) | $ (93,856) | $ (75,771) | $ (623,786) | $ (402,481) | |
Operating expenses | ||||||||||||
Cost of revenues | $ 734,024 | 593,370 | 483,054 | 78,279 | 198,201 | 155,829 | 109,245 | 93,856 | 75,771 | 623,786 | 402,482 | |
General and administrative | 0 | |||||||||||
Professional fees | 0 | 0 | ||||||||||
Sales and marketing | 0 | 0 | ||||||||||
Total expenses | $ 593,370 | $ 483,054 | $ 78,279 | $ 198,201 | $ 155,829 | $ 109,245 | $ 93,856 | 75,771 | 623,786 | (402,481) | ||
Net income (loss) from operations | 75,771 | (336,197) | ||||||||||
Other income | 0 | 0 | ||||||||||
Interest expense | 0 | 0 | ||||||||||
Total other income and (expenses) | 0 | 0 | ||||||||||
Net income (loss) from operations before income tax expense | 75,771 | (336,197) | ||||||||||
Income tax expense | 0 | 0 | ||||||||||
Net loss | 75,771 | (336,197) | ||||||||||
Net loss attributable to non-controlling interest in subsidiary | 0 | 0 | ||||||||||
Net loss attributable to common shareholders | $ 75,771 | $ (336,197) | $ 0 | |||||||||
Net loss per share attributable to common sharesholders - Basic from continuing operations | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |
Net loss per share attributable to common sharesholders - Diluted from continuing operations | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |
Weighted average shares outstanding - Basic | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 49,714,285 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 | |
Weighted average shares outstanding - Diluted | 53,335,822 | 52,749,086 | 52,416,392 | 51,225,817 | 50,940,460 | 50,517,769 | 51,163,219 | 49,182,952 | 48,727,385 | 51,081,949 | 49,409,266 |