2013 Q4 Form 10-Q Financial Statement

#000114420413061993 Filed on November 14, 2013

View on sec.gov

Income Statement

Concept 2013 Q4 2013 Q3 2012 Q4
Revenue $5.750M $6.521M $1.160M
YoY Change 395.69% 3720.23%
Cost Of Revenue $4.340M $4.646M $770.0K
YoY Change 463.64% 17258.11%
Gross Profit $1.420M $1.875M $400.0K
YoY Change 255.0% 1202.45%
Gross Profit Margin 24.7% 28.75% 34.48%
Selling, General & Admin $19.25M $3.450M $6.720M
YoY Change 186.46% 115.63% -800.0%
% of Gross Profit 1355.63% 184.04% 1680.0%
Research & Development $30.00K $20.00K
YoY Change 100.0%
% of Gross Profit 2.11% 1.07%
Depreciation & Amortization $790.0K $797.0K $140.0K
YoY Change 464.29% 1377.62% -54.84%
% of Gross Profit 55.63% 42.52% 35.0%
Operating Expenses $20.07M $8.909M $6.850M
YoY Change 192.99% 424.75% 1422.22%
Operating Profit -$18.65M -$2.388M -$6.450M
YoY Change 189.15% 56.39%
Interest Expense -$940.0K $973.3K $60.00K
YoY Change -1666.67% -336.07%
% of Operating Profit
Other Income/Expense, Net $10.00K -$80.02K $460.0K
YoY Change -97.83% 60.04%
Pretax Income -$21.05M -$3.441M -$5.940M
YoY Change 254.38% 194.14% 1220.0%
Income Tax $210.0K $0.00 $160.0K
% Of Pretax Income
Net Earnings -$20.97M -$3.870M -$7.480M
YoY Change 180.35% 113.28% 1562.22%
Net Earnings / Revenue -364.7% -59.34% -644.83%
Basic Earnings Per Share
Diluted Earnings Per Share -$16.07K -$2.537K -$4.850K
COMMON SHARES
Basic Shares Outstanding 28.21M shares 28.34M
Diluted Shares Outstanding

Balance Sheet

Concept 2013 Q4 2013 Q3 2012 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $100.0K $3.900M $3.500M
YoY Change -97.14% 3400.0%
Cash & Equivalents $126.3K $3.926M $3.547M
Short-Term Investments
Other Short-Term Assets $1.900M $1.300M $7.500M
YoY Change -74.67% -97.19% 2400.0%
Inventory
Prepaid Expenses
Receivables $10.62M $9.716M $10.86M
Other Receivables $0.00 $200.0K $4.800M
Total Short-Term Assets $12.69M $15.14M $28.01M
YoY Change -54.69% -67.22% 6761.16%
LONG-TERM ASSETS
Property, Plant & Equipment $137.3K $162.9K $261.8K
YoY Change -47.56% 14.3%
Goodwill $6.672M $6.672M $0.00
YoY Change -100.0%
Intangibles $2.964M $4.495M $111.7K
YoY Change 2554.63% -81.66%
Long-Term Investments $0.00 $0.00 $0.00
YoY Change
Other Assets $0.00
YoY Change
Total Long-Term Assets $9.820M $11.72M $373.4K
YoY Change 2529.56% -63730.0% -70.36%
TOTAL ASSETS
Total Short-Term Assets $12.69M $15.14M $28.01M
Total Long-Term Assets $9.820M $11.72M $373.4K
Total Assets $22.51M $26.86M $28.38M
YoY Change -20.68% -41.84% 1601.13%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.190M $2.021M $498.4K
YoY Change 540.06% 53.91% 108.58%
Accrued Expenses $3.485M $2.646M $910.0K
YoY Change 282.95% 2.89%
Deferred Revenue
YoY Change
Short-Term Debt $8.479M $10.16M $9.400M
YoY Change -9.8%
Long-Term Debt Due $3.816M -$1.678M $0.00
YoY Change
Total Short-Term Liabilities $20.66M $18.21M $11.23M
YoY Change 83.91% 727.86% 288.45%
LONG-TERM LIABILITIES
Long-Term Debt $17.26M $19.05M $0.00
YoY Change
Other Long-Term Liabilities $0.00 $100.0K
YoY Change -97.5%
Total Long-Term Liabilities $17.26M $19.05M $100.0K
YoY Change 17155.53% -97.5%
TOTAL LIABILITIES
Total Short-Term Liabilities $20.66M $18.21M $11.23M
Total Long-Term Liabilities $17.26M $19.05M $100.0K
Total Liabilities $37.92M $37.26M $11.37M
YoY Change 233.47% 1621.57% 64.98%
SHAREHOLDERS EQUITY
Retained Earnings -$118.9M -$114.7M -$70.62M
YoY Change 68.41% 37.73%
Common Stock $103.5M $106.3M $87.45M
YoY Change 18.33% 30818784.06% 77.75%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$15.30M -$7.700M $17.10M
YoY Change
Total Liabilities & Shareholders Equity $22.51M $26.86M $28.38M
YoY Change -20.68% -41.84% 1601.13%

Cashflow Statement

Concept 2013 Q4 2013 Q3 2012 Q4
OPERATING ACTIVITIES
Net Income -$20.97M -$3.870M -$7.480M
YoY Change 180.35% 113.28% 1562.22%
Depreciation, Depletion And Amortization $790.0K $797.0K $140.0K
YoY Change 464.29% 1377.62% -54.84%
Cash From Operating Activities -$4.440M -$2.320M -$16.05M
YoY Change -72.34% -63.0% 221.0%
INVESTING ACTIVITIES
Capital Expenditures $380.0K -$20.00K $170.0K
YoY Change 123.53% -33.33% -78.21%
Acquisitions
YoY Change
Other Investing Activities -$30.00K $20.00K -$6.980M
YoY Change -99.57% 8625.0%
Cash From Investing Activities -$410.0K $40.00K -$7.150M
YoY Change -94.27% 33.33% 721.84%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 860.0K 4.070M 23.81M
YoY Change -96.39% -44.85% 576.42%
NET CHANGE
Cash From Operating Activities -4.440M -2.320M -16.05M
Cash From Investing Activities -410.0K 40.00K -7.150M
Cash From Financing Activities 860.0K 4.070M 23.81M
Net Change In Cash -3.990M 1.790M 610.0K
YoY Change -754.1% 57.02% -125.96%
FREE CASH FLOW
Cash From Operating Activities -$4.440M -$2.320M -$16.05M
Capital Expenditures $380.0K -$20.00K $170.0K
Free Cash Flow -$4.820M -$2.300M -$16.22M
YoY Change -70.28% -63.14% 180.62%

Facts In Submission

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CY2012Q3 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-1807247 USD
us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-27436902 USD
us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-8913384 USD
CY2013Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
28163337 shares
CY2012Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
19314379 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
28173573 shares
CY2013Q3 us-gaap Income Loss From Continuing Operations Per Basic And Diluted Share
IncomeLossFromContinuingOperationsPerBasicAndDilutedShare
-0.11
us-gaap Income Loss From Continuing Operations Per Basic And Diluted Share
IncomeLossFromContinuingOperationsPerBasicAndDilutedShare
-0.92
CY2013Q3 us-gaap Discontinued Operation Income Loss From Discontinued Operation During Phase Out Period Net Of Tax
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-372496 USD
CY2012Q3 us-gaap Discontinued Operation Income Loss From Discontinued Operation During Phase Out Period Net Of Tax
DiscontinuedOperationIncomeLossFromDiscontinuedOperationDuringPhaseOutPeriodNetOfTax
-694478 USD
us-gaap Discontinued Operation Income Loss From Discontinued Operation During Phase Out Period Net Of Tax
DiscontinuedOperationIncomeLossFromDiscontinuedOperationDuringPhaseOutPeriodNetOfTax
-1018003 USD
us-gaap Discontinued Operation Amount Of Other Income Loss From Disposition Of Discontinued Operation Net Of Tax
DiscontinuedOperationAmountOfOtherIncomeLossFromDispositionOfDiscontinuedOperationNetOfTax
-321643 USD
us-gaap Discontinued Operation Amount Of Other Income Loss From Disposition Of Discontinued Operation Net Of Tax
DiscontinuedOperationAmountOfOtherIncomeLossFromDispositionOfDiscontinuedOperationNetOfTax
0 USD
CY2013Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
162997 USD
CY2012Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
7057 USD
nete Stock Issued In Noncash Or Part Non Cash Acquisition Percentage1
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0.1 pure
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
6736302 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
0 USD
us-gaap Share Based Compensation
ShareBasedCompensation
225000 USD
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
9170102 USD
us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
-1272562 USD
us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
209509 USD
us-gaap Adjustments To Reconcile Net Income Loss To Cash Provided By Used In Operating Activities
AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities
20647277 USD
us-gaap Adjustments To Reconcile Net Income Loss To Cash Provided By Used In Operating Activities
AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities
-217722 USD
us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
-6366221 USD
us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
-9129287 USD
us-gaap Proceeds From Collection Of Notes Receivable
ProceedsFromCollectionOfNotesReceivable
4694605 USD
us-gaap Proceeds From Collection Of Notes Receivable
ProceedsFromCollectionOfNotesReceivable
0 USD
us-gaap Payments To Acquire Investments
PaymentsToAcquireInvestments
228113 USD
us-gaap Payments To Acquire Investments
PaymentsToAcquireInvestments
0 USD
nete Capitalized Web Development And Patent Costs
CapitalizedWebDevelopmentAndPatentCosts
0 USD
nete Capitalized Web Development And Patent Costs
CapitalizedWebDevelopmentAndPatentCosts
70265 USD
nete Decrease In Fixed Assets
DecreaseInFixedAssets
-46966 USD
nete Decrease In Fixed Assets
DecreaseInFixedAssets
221903 USD
us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
4513458 USD
us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
-292168 USD
us-gaap Proceeds From Notes Payable
ProceedsFromNotesPayable
755170 USD
us-gaap Proceeds From Notes Payable
ProceedsFromNotesPayable
4164470 USD
us-gaap Increase Decrease In Restricted Cash
IncreaseDecreaseInRestrictedCash
-2056821 USD
us-gaap Increase Decrease In Restricted Cash
IncreaseDecreaseInRestrictedCash
1763386 USD
us-gaap Proceeds From Issuance Or Sale Of Equity
ProceedsFromIssuanceOrSaleOfEquity
-482400 USD
us-gaap Proceeds From Issuance Or Sale Of Equity
ProceedsFromIssuanceOrSaleOfEquity
0 USD
us-gaap Proceeds From Repayments Of Related Party Debt
ProceedsFromRepaymentsOfRelatedPartyDebt
38591 USD
us-gaap Proceeds From Repayments Of Related Party Debt
ProceedsFromRepaymentsOfRelatedPartyDebt
8087259 USD
us-gaap Proceeds From Minority Shareholders
ProceedsFromMinorityShareholders
0 USD
us-gaap Proceeds From Minority Shareholders
ProceedsFromMinorityShareholders
1603169 USD
us-gaap Repayments Of Related Party Debt
RepaymentsOfRelatedPartyDebt
75000 USD
us-gaap Repayments Of Related Party Debt
RepaymentsOfRelatedPartyDebt
75000 USD
us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
2293182 USD
us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
12016512 USD
us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
EffectOfExchangeRateOnCashAndCashEquivalents
-61441 USD
CY2013Q2 us-gaap Goodwill Impaired Accumulated Impairment Loss
GoodwillImpairedAccumulatedImpairmentLoss
11200000 USD
CY2012 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
8938900 shares
us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
-321643 USD
us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
0 USD
nete Adjustments To Reconcile Net Income Loss To Cash Provided By Used In Operating Activities From Continued Operations
AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesFromContinuedOperations
20509185 USD
nete Adjustments To Reconcile Net Income Loss To Cash Provided By Used In Operating Activities From Continued Operations
AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesFromContinuedOperations
-6133665 USD
nete Adjustments To Reconcile Net Income Loss To Cash Provided By Used In Operating Activities From Discontinued Operations
AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesFromDiscontinuedOperations
138092 USD
nete Adjustments To Reconcile Net Income Loss To Cash Provided By Used In Operating Activities From Discontinued Operations
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5915943 USD
us-gaap Proceeds From Sale Of Notes Receivable
ProceedsFromSaleOfNotesReceivable
0 USD
nete Non Cash Or Part Non Cash Acquisition Non Cash Financial Or Equity Instrument Consideration Value Restricted Shares Issued1
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718750 USD
us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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-1819 USD
us-gaap Cash And Cash Equivalents Period Increase Decrease
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378978 USD
us-gaap Cash And Cash Equivalents Period Increase Decrease
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2593238 USD
CY2011Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
59387 USD
CY2012Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
2652625 USD
us-gaap Interest Paid
InterestPaid
1038125 USD
us-gaap Interest Paid
InterestPaid
4861 USD
nete Noncash Or Part Noncash Acquisition Noncash Financial Or Equityinstrument Consideration Value Sharesissued And Outstanding
NoncashOrPartNoncashAcquisitionNoncashFinancialOrEquityinstrumentConsiderationValueSharesissuedAndOutstanding
609000 USD
nete Noncash Or Part Noncash Acquisition Noncash Financial Or Equityinstrument Consideration Value Sharesissued And Outstanding
NoncashOrPartNoncashAcquisitionNoncashFinancialOrEquityinstrumentConsiderationValueSharesissuedAndOutstanding
0 USD
us-gaap Noncash Or Part Noncash Acquisition Value Of Liabilities Assumed1
NoncashOrPartNoncashAcquisitionValueOfLiabilitiesAssumed1
20631000 USD
us-gaap Noncash Or Part Noncash Acquisition Value Of Liabilities Assumed1
NoncashOrPartNoncashAcquisitionValueOfLiabilitiesAssumed1
0 USD
nete Noncash Or Part Noncash Acquisition Noncash Financial Or Equity Instrument Consideration Value Total
NoncashOrPartNoncashAcquisitionNoncashFinancialOrEquityInstrumentConsiderationValueTotal
21240000 USD
nete Noncash Or Part Noncash Acquisition Noncash Financial Or Equity Instrument Consideration Value Total
NoncashOrPartNoncashAcquisitionNoncashFinancialOrEquityInstrumentConsiderationValueTotal
0 USD
nete Non Cash Or Part Non Cash Acquisition Non Cash Financial Or Equity Instrument Consideration Value Restricted Shares Issued1
NonCashOrPartNonCashAcquisitionNonCashFinancialOrEquityInstrumentConsiderationValueRestrictedSharesIssued1
0 USD
us-gaap Notes Issued1
NotesIssued1
2000000 USD
us-gaap Notes Issued1
NotesIssued1
0 USD
us-gaap Proceeds From Sale Of Notes Receivable
ProceedsFromSaleOfNotesReceivable
0 USD
us-gaap Increase Decrease In Notes Receivable Current
IncreaseDecreaseInNotesReceivableCurrent
520000 USD
us-gaap Increase Decrease In Notes Receivable Current
IncreaseDecreaseInNotesReceivableCurrent
10218888 USD
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
-1620499 USD
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
8884116 USD
CY2013Q3 us-gaap Cash Fdic Insured Amount
CashFDICInsuredAmount
303816 USD
CY2013Q3 us-gaap Cash Uninsured Amount
CashUninsuredAmount
3624583 USD
CY2012Q4 us-gaap Cash Uninsured Amount
CashUninsuredAmount
315000 USD
nete Terminals Acquired Amount Net
TerminalsAcquiredAmountNet
291602 USD
nete Terminals Acquired Amount Net Held With Merchants
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7255 USD
CY2013Q3 us-gaap Accrued Sales Commission Current
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217159 USD
CY2013Q3 us-gaap Notes Payable
NotesPayable
22000000 USD
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
8938900 shares
nete Capital Contribution
CapitalContribution
1259000 USD
CY2012Q4 us-gaap Accrued Sales Commission Current
AccruedSalesCommissionCurrent
0 USD
CY2013Q3 nete Terminals Amortization Amount Net
TerminalsAmortizationAmountNet
572 USD
CY2012Q4 nete Net Assets Of Disposal Group Including Discontinued Operation
NetAssetsOfDisposalGroupIncludingDiscontinuedOperation
-30653 USD
us-gaap Use Of Estimates
UseOfEstimates
<div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt"><b>Use of Estimates</b></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the balance sheet date and the reported amounts of expenses for the period presented. Actual results could differ from those estimates.</font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">Significant estimates include (i)&#160;the valuation of acquired merchant portfolios (ii)&#160;the recoverability of long-lived assets, (iii)&#160;the remaining useful lives of long-lived assets, and (iv)&#160;the sufficiency of merchant, legal, and other reserves. On an ongoing basis, the Company evaluates the sufficiency and accuracy of its estimates. Actual results could differ from those estimates.&#160;&#160;</font></div> </div> <table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><strong><font style="FONT-SIZE: 10pt"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font>Concentrations</font></strong></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">The Company&#8217;s revenue was $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">6,520,788</font> and $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">12,996,538</font> for the three months and nine months ended September 30, 2013. Of this, $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">5,509,658</font> and $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">10,110,588</font> was derived from processing of Visa&#174;, MasterCard&#174;, Discover&#174; and American Express&#174; card transactions&#160;$<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1,011,130</font> and&#160;$<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">2,884,529</font> was derived from processing of mobile electronic payments, for the three months and nine months respectively</font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">The credit card processing revenues of $10,110,588 was derived from merchant customer transactions, which are processed primarily by three &#8220;third-party&#8221; processors. For the nine months ended September 30, 2013, the Company processed <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 21</font>% of its total revenue with Cynergy Data, <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 31</font>% with National Processing Company (NPC) and <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 22</font>% with First Data.</font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">The mobile electronic payment revenues of $2,884,529 are derived from merchant customer transactions, which are processed primarily by two mobile operators. For the nine months ended September 30, 2013, the Company processed <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 10</font>% of its total revenue with Beeline (OJSC Vimpelcom), and <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 10</font>% with MTS (Mobile TeleSystems OJSC).</font></div> </div> <table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt"><b>Reclassification</b></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt"> &#160;&#160;</font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">Certain balances for the nine months ended September 30, 2012 and the balance sheet at December 31, 2012 have been reclassified to conform to the September 30, 2013 presentation. This reclassification is primarily related to the discontinued operations.</font></div> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font></div> <table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2013Q3 nete Working Capital Deficit
WorkingCapitalDeficit
3100000 USD
CY2012Q4 us-gaap Business Acquisition Share Price
BusinessAcquisitionSharePrice
0.25
CY2013Q2 us-gaap Equity Method Investment Ownership Percentage
EquityMethodInvestmentOwnershipPercentage
0.7 pure
CY2013Q2 nete Percentage Of Common Stock Issued And Outstanding
PercentageOfCommonStockIssuedAndOutstanding
0.1 pure
CY2012Q4 us-gaap Business Acquisition Description Of Acquired Entity
BusinessAcquisitionDescriptionOfAcquiredEntity
To the extent a holder of Net Element common stock would have received fewer than 100 shares of common stock of the Company in the Merger, such holder was issued an additional number of shares of common stock of the Company to bring such holder&#8217;s aggregate equity holdings in the Company to 100 shares of common stock. No fractional shares were issued in the Merger; instead, the Company issued one share of common stock to the holder of any shares of Net Element common stock that would have otherwise been entitled to receive a fraction of a share of common stock of the Company.
CY2012Q4 nete Convertible Securities Exercise Price
ConvertibleSecuritiesExercisePrice
0.025
nete Business Acquisition Conversion Description
BusinessAcquisitionConversionDescription
Pursuant to the terms of the Merger Agreement, upon completion of the Merger, each share of then-issued and outstanding common stock of Net Element was automatically cancelled and converted into the right to receive one-fortieth (1/40) of a share of the Companys common stock.
CY2013Q2 us-gaap Disposal Group Including Discontinued Operation Revenue
DisposalGroupIncludingDiscontinuedOperationRevenue
17395 USD
CY2012Q3 us-gaap Disposal Group Including Discontinued Operation Revenue
DisposalGroupIncludingDiscontinuedOperationRevenue
20709 USD
us-gaap Disposal Group Including Discontinued Operation Revenue
DisposalGroupIncludingDiscontinuedOperationRevenue
14484 USD
us-gaap Disposal Group Including Discontinued Operation Revenue
DisposalGroupIncludingDiscontinuedOperationRevenue
81821 USD
CY2013Q2 us-gaap Discontinued Operation Income Loss From Discontinued Operation Before Income Tax
DiscontinuedOperationIncomeLossFromDiscontinuedOperationBeforeIncomeTax
-694139 USD
CY2012Q3 us-gaap Discontinued Operation Income Loss From Discontinued Operation Before Income Tax
DiscontinuedOperationIncomeLossFromDiscontinuedOperationBeforeIncomeTax
-797903 USD
us-gaap Discontinued Operation Income Loss From Discontinued Operation Before Income Tax
DiscontinuedOperationIncomeLossFromDiscontinuedOperationBeforeIncomeTax
-1339646 USD
us-gaap Discontinued Operation Income Loss From Discontinued Operation Before Income Tax
DiscontinuedOperationIncomeLossFromDiscontinuedOperationBeforeIncomeTax
-2125026 USD
CY2013Q2 us-gaap Discontinued Operation Tax Effect Of Discontinued Operation
DiscontinuedOperationTaxEffectOfDiscontinuedOperation
0 USD
CY2012Q3 us-gaap Discontinued Operation Tax Effect Of Discontinued Operation
DiscontinuedOperationTaxEffectOfDiscontinuedOperation
13969 USD
us-gaap Discontinued Operation Tax Effect Of Discontinued Operation
DiscontinuedOperationTaxEffectOfDiscontinuedOperation
0 USD
us-gaap Discontinued Operation Tax Effect Of Discontinued Operation
DiscontinuedOperationTaxEffectOfDiscontinuedOperation
13969 USD
CY2013Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax
IncomeLossFromDiscontinuedOperationsNetOfTax
-694139 USD
CY2012Q4 us-gaap Disposal Group Including Discontinued Operation Cash And Cash Equivalents
DisposalGroupIncludingDiscontinuedOperationCashAndCashEquivalents
32950 USD
CY2012Q4 us-gaap Disposal Group Including Discontinued Operation Other Current Assets
DisposalGroupIncludingDiscontinuedOperationOtherCurrentAssets
29055 USD
CY2012Q4 us-gaap Disposal Group Including Discontinued Operation Property Plant And Equipment Net
DisposalGroupIncludingDiscontinuedOperationPropertyPlantAndEquipmentNet
29258 USD
CY2012Q4 nete Disposal Group Including Discontinued Operation Due From Related Parties
DisposalGroupIncludingDiscontinuedOperationDueFromRelatedParties
0 USD
CY2012Q4 us-gaap Disposal Group Including Discontinued Operation Intangible Assets Net
DisposalGroupIncludingDiscontinuedOperationIntangibleAssetsNet
101196 USD
CY2012Q4 us-gaap Disposal Group Including Discontinued Operation Accounts Payable And Accrued Liabilities Current
DisposalGroupIncludingDiscontinuedOperationAccountsPayableAndAccruedLiabilitiesCurrent
87419 USD
CY2012Q4 nete Disposal Group Including Discontinued Operation Due To Related Parties
DisposalGroupIncludingDiscontinuedOperationDueToRelatedParties
135693 USD
CY2012Q4 nete Disposal Group Including Discontinued Operation Other Short Term Loans
DisposalGroupIncludingDiscontinuedOperationOtherShortTermLoans
0 USD
CY2012Q3 nete Notes Receivable Line Of Credit Maximum Lending Exposure
NotesReceivableLineOfCreditMaximumLendingExposure
300000000 RUB
CY2012Q3 nete Notes Receivable Line Of Credit Maximum Lending Exposure
NotesReceivableLineOfCreditMaximumLendingExposure
9800000 USD
CY2013Q1 nete Notes Receivable Maturity Date
NotesReceivableMaturityDate
2013-10-01
CY2012Q4 us-gaap Notes Receivable Gross
NotesReceivableGross
1791475 USD
CY2013Q2 us-gaap Allowance For Notes And Loans Receivable Current
AllowanceForNotesAndLoansReceivableCurrent
1100000 USD
CY2013Q3 nete Provision For Allowance For Notes And Loans Receivable Current
ProvisionForAllowanceForNotesAndLoansReceivableCurrent
200000 USD
nete Receivable With Imputed Interest Term
ReceivableWithImputedInterestTerm
P43M
CY2012Q3 nete Notes Receivable Line Of Credit Maximum Lending Exposure
NotesReceivableLineOfCreditMaximumLendingExposure
200000000 RUB
CY2012Q3 nete Notes Receivable Line Of Credit Maximum Lending Exposure
NotesReceivableLineOfCreditMaximumLendingExposure
7000000 USD
CY2012Q3 nete Notes Receivable Interest Rate Fixed Percentage
NotesReceivableInterestRateFixedPercentage
0.1 pure
CY2012Q3 nete Notes Receivable Maturity Date
NotesReceivableMaturityDate
2012-10-31
CY2012Q3 nete Notes Receivable Effective Interest Rate
NotesReceivableEffectiveInterestRate
0.4 pure
CY2012Q4 nete Financing Receivable Maturity Date
FinancingReceivableMaturityDate
2013-11-15
CY2012Q4 nete Financing Receivable Interest Rate Fixed Percentage
FinancingReceivableInterestRateFixedPercentage
0.0175 pure
CY2013Q3 us-gaap Allowance For Loan And Lease Losses Write Offs
AllowanceForLoanAndLeaseLossesWriteOffs
991475 USD
CY2013Q3 us-gaap Minority Interest Ownership Percentage By Parent
MinorityInterestOwnershipPercentageByParent
0.2 pure
CY2013Q3 us-gaap Allowance For Notes And Loans Receivable Current
AllowanceForNotesAndLoansReceivableCurrent
1314302 USD
CY2012Q4 us-gaap Allowance For Notes And Loans Receivable Current
AllowanceForNotesAndLoansReceivableCurrent
891475 USD
CY2013Q3 us-gaap Notes Receivable Net
NotesReceivableNet
520000 USD
CY2012Q4 us-gaap Notes Receivable Net
NotesReceivableNet
6088934 USD
us-gaap Receivable With Imputed Interest Effective Yield Interest Rate
ReceivableWithImputedInterestEffectiveYieldInterestRate
0.21 pure
CY2013Q3 us-gaap Receivable With Imputed Interest Face Amount
ReceivableWithImputedInterestFaceAmount
3811023 USD
CY2013Q3 nete Receivable With Imputed Interest Present Value
ReceivableWithImputedInterestPresentValue
1834302 USD
CY2013Q3 nete Receivable With Imputed Interest Book Value
ReceivableWithImputedInterestBookValue
520000 USD
nete Provision For Doubtful Other Receivables
ProvisionForDoubtfulOtherReceivables
6700000 USD
CY2013Q3 nete Additional Techonolgy Services Costs
AdditionalTechonolgyServicesCosts
60321 USD
CY2013Q3 us-gaap Technology Services Costs
TechnologyServicesCosts
703768 USD
CY2013Q3 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
764089 USD
CY2012Q3 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
0 USD
CY2013Q3 nete Provision For Doubtful Other Receivables
ProvisionForDoubtfulOtherReceivables
0 USD
CY2013Q3 us-gaap Depreciation
Depreciation
54501 USD
CY2012Q3 us-gaap Depreciation
Depreciation
53937 USD
us-gaap Depreciation
Depreciation
138518 USD
CY2013Q2 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
5417015 USD
CY2013Q1 us-gaap Finitelived Intangible Assets Acquired1
FinitelivedIntangibleAssetsAcquired1
0 USD
CY2013Q2 us-gaap Finitelived Intangible Assets Acquired1
FinitelivedIntangibleAssetsAcquired1
5786538 USD
us-gaap Depreciation
Depreciation
134307 USD
CY2013Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
509237 USD
CY2012Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
628991 USD
CY2013Q3 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
346381 USD
CY2012Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
367232 USD
CY2013Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
754021 USD
CY2012Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
0 USD
us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
0 USD
us-gaap Finite Lived Intangible Assets Amortization Method
FiniteLivedIntangibleAssetsAmortizationMethod
straight-line basis
CY2013Q3 us-gaap Finite Lived Intangible Assets Fair Value Disclosure
FiniteLivedIntangibleAssetsFairValueDisclosure
4370000 USD
us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
1150523 USD
CY2013Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Remainder Of Fiscal Year
FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear
756207 USD
CY2013Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Rolling Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseRollingYearTwo
2777272 USD
CY2013Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Rolling Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseRollingYearThree
653508 USD
CY2013Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Rolling Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseRollingYearFour
138635 USD
CY2013Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Rolling Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseRollingYearFive
0 USD
CY2013Q3 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
4494837 USD
CY2013Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Rolling After Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseRollingAfterYearFive
169215 USD
CY2013Q1 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
1009 USD
CY2013Q2 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
581379 USD
CY2013Q3 us-gaap Line Of Credit Facility Amount Outstanding
LineOfCreditFacilityAmountOutstanding
0 USD
CY2012Q4 us-gaap Line Of Credit Facility Amount Outstanding
LineOfCreditFacilityAmountOutstanding
1800000 USD
CY2013Q1 us-gaap Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
0 USD
CY2013Q2 us-gaap Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
0 USD
CY2012Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
142092 USD
CY2013Q3 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
920642 USD
CY2012Q4 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
470382 USD
CY2013Q3 us-gaap Accrued Advertising Current
AccruedAdvertisingCurrent
19601 USD
CY2012Q4 us-gaap Accrued Advertising Current
AccruedAdvertisingCurrent
221311 USD
CY2013Q3 us-gaap Interest Payable Current
InterestPayableCurrent
336583 USD
CY2012Q4 us-gaap Interest Payable Current
InterestPayableCurrent
39421 USD
CY2013Q3 us-gaap Accrued Salaries Current
AccruedSalariesCurrent
1139691 USD
CY2012Q4 us-gaap Accrued Salaries Current
AccruedSalariesCurrent
36816 USD
CY2013Q3 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
229585 USD
CY2013Q3 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
19050122 USD
CY2013Q3 us-gaap Long Term Debt
LongTermDebt
20727647 USD
CY2013Q3 us-gaap Long Term Debt Current
LongTermDebtCurrent
-1677525 USD
CY2013Q3 us-gaap Long Term Debt Maturities Repayments Of Principal Remainder Of Fiscal Year
LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear
590819 USD
CY2013Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Next Twelve Months
LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths
2776454 USD
CY2013Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Three
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree
0 USD
CY2013Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo
6830761 USD
CY2013Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Four
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour
13268000 USD
CY2013Q3 nete Longterm Debt Maturities Repayments Of Principal Total
LongtermDebtMaturitiesRepaymentsOfPrincipalTotal
23466034 USD
CY2013Q3 us-gaap Due To Related Parties Current And Noncurrent
DueToRelatedPartiesCurrentAndNoncurrent
1542268 USD
us-gaap Employee Service Share Based Compensation Allocation Of Recognized Period Costs Capitalized Amount
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806667 USD
CY2012Q1 us-gaap Shares Issued Price Per Share
SharesIssuedPricePerShare
6.00
CY2012Q3 us-gaap Share Price
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10.00
CY2012 us-gaap Stock Repurchase Program Authorized Amount
StockRepurchaseProgramAuthorizedAmount
2500000 USD
CY2012Q4 us-gaap Share Price
SharePrice
13.60
CY2012Q1 us-gaap Issuance Of Stock And Warrants For Services Or Claims
IssuanceOfStockAndWarrantsForServicesOrClaims
1333333 USD
CY2013Q3 us-gaap Class Of Warrant Or Right Number Of Securities Called By Warrants Or Rights
ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights
8938900 shares
CY2012 nete Class Of Warrant Or Right Exercises During Period
ClassOfWarrantOrRightExercisesDuringPeriod
1100 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Weighted Average Remaining Contractual Terms
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms
P4Y4D
CY2013Q3 nete Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageExercisePrice
7.50
CY2013Q3 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
14400000 USD
us-gaap Business Development
BusinessDevelopment
0 USD
us-gaap Other General And Administrative Expense
OtherGeneralAndAdministrativeExpense
7005657 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
0 USD
us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
314883 USD
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-411225 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
-7080890 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-51017 USD
us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest
-7131907 USD
us-gaap Gain Or Loss On Sale Of Stock In Subsidiary
GainOrLossOnSaleOfStockInSubsidiary
0 USD
us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
0 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
221903 USD
us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
8087259 USD
us-gaap Increase Decrease In Deposit Other Assets
IncreaseDecreaseInDepositOtherAssets
0 USD
us-gaap Increase Decrease In Deferred Income Taxes
IncreaseDecreaseInDeferredIncomeTaxes
0 USD
us-gaap Increase Decrease In Due To Related Parties Current
IncreaseDecreaseInDueToRelatedPartiesCurrent
0 USD
us-gaap Increase Decrease In Accounts Payable Trade
IncreaseDecreaseInAccountsPayableTrade
0 USD
us-gaap Payments To Acquire Notes Receivable
PaymentsToAcquireNotesReceivable
0 USD
us-gaap Proceeds From Repayments Of Restricted Cash Financing Activities
ProceedsFromRepaymentsOfRestrictedCashFinancingActivities
-1763386 USD
us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
0 USD

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