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Document And Entity Information
3 Months Ended
Mar. 31, 2014
May 14, 2014
Document Information [Line Items] ' '
Document Type '10-Q '
Amendment Flag 'false '
Document Period End Date Mar 31, 2014 '
Document Fiscal Year Focus '2014 '
Document Fiscal Period Focus 'Q1 '
Trading Symbol 'KIWB '
Entity Common Stock, Shares Outstanding ' 683,693,060
Entity Registrant Name 'Kiwibox.Com, Inc. '
Entity Central Index Key '0000838796 '
Current Fiscal Year End Date '--12-31 '
Entity Filer Category 'Smaller Reporting Company '
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Balance Sheets (USD $)
Mar. 31, 2014
Dec. 31, 2013
Current Assets ' '
Cash and cash equivalents $ 0 $ 3,659
Due from related parties 10,914 0
Other receivables 5,248 5,248
Prepaid expenses and other current assets 66,960 121,168
Total Current Assets 83,122 130,075
Property and equipment, net of accumulated depreciation of $106,825 and $105,795, respectively 4,765 5,795
Website development costs, net of accumulated amortization of $253,234 and $251,688, respectively 1,030 2,576
Other assets 18,920 18,920
Total Assets 107,837 157,366
Current Liabilities ' '
Bank overdraft 2,261 0
Accounts payable 211,803 253,347
Accrued expenses 2,577,994 2,326,283
Due to related parties 36,710 33,612
Obligations to be settled in stock 263,608 259,288
Dividends payable 697,208 684,392
Current maturities of long-term debt 33,529 33,529
Liability for derivative conversion feature -related parties 12,505,899 12,068,233
Total Current Liabilities 26,912,711 26,017,383
Commitments and Contingencies '   '  
Stockholders' Equity (Impairment) ' '
Preferred Stock, $0.001 par value, non-voting, 3,000,000 shares authorized; 85,890 shares issued and outstanding 86 86
Common Stock, $0.0001 par value, 1,400,000,000 shares authorized; issued and outstanding 683,693,060 and 683,693,060 shares respectively.. 68,367 68,367
Additional paid-in capital 52,726,105 52,726,105
Accumulated deficit (79,599,432) (78,654,575)
Total Stockholders' Equity (Impairment) (26,804,874) (25,860,017)
Total Liabilities and Stockholders’ Equity (Impairment) 107,837 157,366
Other ' '
Current Liabilities ' '
Loans and notes payable 100,000 100,000
Related Party Transactions ' '
Current Liabilities ' '
Loans and notes payable 340,000 340,000
Convertible notes payable-related parties $ 10,143,699 $ 9,918,699
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Balance Sheets (Parenthetical) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Property and equipment, accumulated depreciation $ 106,825 $ 105,795
Website development costs, accumulated amortization $ 253,234 $ 251,688
Preferred Stock, par value $ 0.001 $ 0.001
Preferred Stock, shares authorized 3,000,000 3,000,000
Preferred Stock, shares issued 85,890 85,890
Preferred Stock, shares outstanding 85,890 85,890
Common Stock, par value $ 0.0001 $ 0.0001
Common Stock, shares authorized 1,400,000,000 1,400,000,000
Common Stock, issued 683,693,060 683,693,060
Common Stock, outstanding 683,693,060 683,693,060
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Condensed Statements of Operations (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Net Sales ' '
Advertising $ 0 $ 268,253
Advertising - affiliate 10,914 0
Other 0 48,547
Total Net Sales 10,914 316,800
Cost of Goods Sold ' '
Website hosting expenses 0 232,706
Total Cost of Goods Sold 0 232,706
Gross Profit (Loss) 10,914 84,094
Selling expenses 70,199 158,435
General and administrative expenses 178,607 285,213
Loss From Operations (237,892) (359,554)
Other Income (Expense) ' '
Miscellaneous income 0 5,263
Interest expense (256,483) (229,085)
Interest expense-derivative conversion features (483,452) (512,411)
Loss on extinguishment of debt 0 (40,000)
Amortization - debt discount 0 (8,333)
Change in fair value - derivative liabilities 45,786 614
Total Other Income (Expense) (694,149) (783,952)
Loss Before Benefit (Provision) for Income Taxes (932,041) (1,143,506)
Benefit (Provision) for Income Taxes 0 (650)
Net Loss (932,041) (1,144,156)
Dividends on Preferred Shares (12,816) (12,816)
Net Loss Applicable to Common Shareholders, basic and diluted (944,857) (1,156,972)
Net Loss Per Common Share, basic and diluted $ (0.001) $ (0.002)
Weighted Average of Common Shares Outstanding 683,693,060 679,941,393
Comprehensive Income (Loss): ' '
Net Income (Loss) (932,041) (1,144,156)
Foreign currency translation adjustment 0 62,777
Total Comprehensive Income (Loss) $ (932,041) $ (1,081,379)
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Statements of Cash Flows (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Cash Flows from Operating Activities ' '
Net Loss $ (932,041) $ (1,144,156)
Adjustments to Reconcile Net Loss to Net Cash Used by Operations ' '
Depreciation and amortization 2,576 66,774
Value of stock for services 0 0
Change in fair value - derivative liabilities (45,786) (614)
Intrinsic value of beneficial conversion feature 483,452 512,411
Deferred tax expense 0 0
Loss on extinguishment of debt 0 40,000
Decreases (Increases) in Assets ' '
Accounts receivable 0 (4,801)
Due from related party (10,914) 0
Other receivables 0 2,469
Prepaid expenses 54,208 52,376
Increases (Decreases) in Liabilities ' '
Bank overdraft 2,261 (49,300)
Liabilities to be settled in stock 4,320 10,620
Accounts payable (41,544) 47,118
Accrued expenses 251,711 239,490
Net Cash Used by Operating Activities (231,757) (227,613)
Cash Flows From Investing Activities ' '
Cash outlay - website development costs 0 (892)
Cash proceeds (outlay) - other assets 0 (7,025)
Purchases of property and equipment 0 0
Net Cash Provided (Used) by Investing Activities 0 (7,917)
Cash Flows From Financing Activities ' '
Proceeds from loans/notes payable 225,000 145,000
Net proceeds (repayments) to related parties 3,098 66,845
Payments on acquisition indebtedness 0 0
Net Cash Provided by Financing Activities 228,098 211,845
Net Increase (Decrease) in Cash (3,659) (23,685)
Effect of exchange rates on cash 0 1,650
Cash at beginning of period 3,659 56,751
Cash at end of period 0 34,716
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION ' '
Interest Paid 1,511 1,486
Income Taxes Paid 0 650
NON-CASH INVESTING AND FINANCING ACTIVITIES: ' '
Settlement of obligations with common stock ' 10,500
Quarter to date dividend accruals 12,816 12,816
Settlement of bank debt with short term loan ' $ 115,344
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract] '
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES '
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Nature of Organization
 
Kiwibox.Com, Inc. (the “Company”) was incorporated as a Delaware corporation on April 19, 1988 under the name Fortunistics, Inc. On November 18, 1998, the Company changed its name to Magnitude Information Systems, Inc. On December 31, 2009, the Company changed its name to Kiwibox.com, Inc.
 
On August 16, 2007 the Company acquired all outstanding shares of Kiwibox Media, Inc.
 
The Company, Magnitude, Inc. and Kiwibox Media Inc. were separate legal entities until December 31, 2009, with Kiwibox Media, Inc. being a wholly owned subsidiary. On December 31, 2009, the two subsidiaries, Magnitude, Inc. and Kiwibox Media, Inc. merged into the Company.
 
On September 30, 2011, Kiwibox.com acquired the German based social network Kwick! Community GmbH & Co. KG (“Kwick”), a wholly-owned subsidiary.
 
On September 24, 2013, Kwick Community GmbH & Co. KG signed an equity purchase agreement to acquire Interscholtz Internet Services GmbH and Co KG, a German limited liability company, and all the equity of its general partner, Interscholtz Beteiligungs GmbH. As of the balance sheet date, and pursuant to the terms of the contract, since full payment was not made for the purchase price of Interscholz Internet Services GmbH & Co KG, ownership does not transfer to Kwick Community GmbH & Co KG. Full payment must be made for ownership to transfer to Kwick. As of December 31, 2013 only $515,037 of the total purchase price of $1,352,000 was made. On December 9,2013 the acquisition of Intersholz Internet Services GmbH and Co KG by Kwick was rescinded due to non compliance with the terms of the addendum to the contract, calling for the full purchase price to have been paid.. However, Kwick did acquire all the equity of the general partner, Interscholz Beteiligungs GmbH, as full payment was not a requirement for transfer of ownership of that entity.
 
On December 10, 2013, the Company signed an Equity Purchase Agreement with Marcus Winkler to sell to him eighty (80%) percent of the equity of its German subsidiary, KWICK! Community GmbH & Co. KG, a German limited liability company, and Kwick! Beteiligungs GmbH, its general partner (collectively, “Kwick”). The sale was approved on December 18, 2013. Due to the fact that the parent company ceased to have a controlling financial interest in Kwick, the subsidiary was deconsolidated from that date forward.
 
Cash and Cash Equivalents
 
The Company accounts for cash and other highly liquid investments with original maturities of three months or less as cash and cash equivalents.
 
Principles of Consolidation
 
The financial statements for the three months ended March 31, 2013 include the accounts of Kiwibox.com, Inc. and the activities of its former subsidiary, KWICK! Community GmbH & Co. KG (“Kwick”). Any significant inter-company balances and transactions were eliminated.
 
Depreciation and Amortization
 
Property and equipment are recorded at cost. Depreciation on equipment, furniture and fixtures and leasehold improvements is computed on the straight-line method over the estimated useful lives of such assets between 3-10 years, or lease term for leasehold improvements, if for a shorter period. Maintenance and repairs are charged to operations as incurred. Software costs are amortized using the straight line method and amortized over their estimated useful lives. Amortization begins when the related software is ready for its intended use in accordance with Accounting Standards Codification (“ASC”) 350-40, Internal-Use Software, Subsequent Measurement.
  
Foreign Currency Translation
 
Income and expense items of the Company’s former foreign subsidiary operations were translated at the weighted average exchange rates prevailing during the three months ended March 31, 2013. Gains and losses, if any, resulting from foreign currency transactions are included in the results of operations during that period.
 
Advertising Costs
 
Advertising costs are charged to operations when incurred. Advertising expense was $0 and $42,177 for the three months ended March 31, 2014 and 2013, respectively.
 
Evaluation of Long Lived Assets
 
Long-lived assets are assessed for recoverability on an ongoing basis. In evaluating the fair value and future benefits of long-lived assets, their carrying value would be reduced by the excess, if any, of the long-lived asset over management’s estimate of the anticipated undiscounted future net cash flows of the related long-lived asset.
 
Any impairment of the Company’s internally-developed software is recognized and measured in accordance with the provisions of ASC 360-10-35, Intangibles-Goodwill and Other, Internal-Use Software, Subsequent Measurement, which requires that assets be grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. The guidance is applicable, for example, when one of the following events or changes in circumstances occurs related to computer software being developed or currently in use indicating that the carrying amount may not be recoverable:
 
a. Internal-use computer software is not expected to provide substantive service potential.
 
b. A significant change occurs in the extent or manner in which the software is used or is expected to be used.
 
c. A significant change is made or will be made to the software program.
 
d. Costs of developing or modifying internal-use computer software significantly exceed the amount originally expected to develop or modify the software.
 
Fair Value Measurements
 
The Company adopted the provisions of ASC 820, Fair Value Measurements and Disclosures, which is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Under ASC 820, a framework was established for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. The Company accounted for certain convertible debentures issued in the year ended December 31, 2013 and the three months ended March 31, 2014 as derivative liabilities required to be bifurcated from the host contract in accordance with ASC 815-40, Contracts in Entity’s Own Equity, as the conversion feature embedded in the convertible debentures could result in the note principal and related accrued interest being converted to a variable number of the Company’s common shares (see Note 13).
 
Securities Issued for Services
 
The Company accounts for stock, stock options and stock warrants issued for services and compensation by employees under the fair value method. For non-employees, the fair market value of the Company’s stock on the date of stock issuance or option/grant is used. The Company has determined the fair market value of the warrants/options issued under the Black-Scholes Pricing Model. The Company has adopted the provisions of ASC 718, “Compensation – Stock Compensation”, which establishes accounting for equity instruments exchanged for employee services. Under the provisions of ASC 718, share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity grant).
 
Reclassification of Certain Securities under ASC 815-15
 
Pursuant to ASC 815-15, “Contracts in Entity’s own Equity”, if a company has more than one contract subject to this Issue, and partial reclassification is required, there may be different methods that could be used to determine which contracts, or portions of contracts, should be reclassified. The Company's method for reclassification of such contracts is reclassification of contracts with the latest maturity date first.
 
Capitalization of Software /Website development costs
 
The Company capitalizes outside-contracted development work in accordance with the guidelines published under ASC 350-50, “Website Development Costs”. Under ASC 350-50, costs incurred during the planning stage are expensed, while costs relating to software used to operate a web site or for developing initial graphics should be accounted for under ASC 350-50, Accounting for the Costs of Computer Software Developed or Obtained for Internal Use, unless a plan exists or is being developed to market the software externally. Under ASC 350-50, internal and external costs incurred to develop internal-use computer software during the application development stage should be capitalized. Costs to develop or obtain software that allows for access or conversion of old data by new systems should also be capitalized, excluding training costs.
 
Fees incurred for web site hosting, which involve the payment of a specified, periodic fee to an Internet service provider in return for hosting the web site on its server(s) connected to the Internet, are expensed over the period of benefit, and included in cost of sales in the accompanying financial statements.
 
A total of $0 and $0 was capitalized for web-site development work during the three months ended March 31, 2014 and 2013, respectively.
 
Income Taxes
 
The Company provides for income taxes based on enacted tax law and statutory tax rates at which items of income and expenses are expected to be settled in the Company’s income tax return. Certain items of revenue and expense are reported for Federal income tax purposes in different periods than for financial reporting purposes, thereby resulting in deferred income taxes. Deferred taxes are also recognized for operating losses that are available to offset future taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company has incurred net operating losses for financial-reporting and tax-reporting purposes. Accordingly, for Federal and state income tax purposes, the benefit for income taxes has been offset by a valuation allowance against the related federal and state deferred tax asset.
 
Net Loss Per Share
 
Net loss per share, in accordance with the provisions of ASC 260, “Earnings Per Share” is computed by dividing net loss by the weighted average number of shares of Common Stock outstanding during the period. Common Stock equivalents have not been included in this computation since the effect would be anti-dilutive. Such common stock equivalents totaled 102,603,240 common shares at March 31, 2014, comprised of 24,500,000 shares issuable upon exercise of stock purchase warrants, 4,600,000 shares issuable upon exercise of stock options, 729,537 shares exercisable upon conversion of convertible preferred shares, and 72,773,703 shares potentially issuable upon conversion of convertible debt. Such debt and the related accrued interest with principal totaling $10,143,699, convertible at the option of five debt holders at a price of 50% of the average closing price for the preceding 10 days, would yield in excess of 4.4 billion shares if fully converted at March 31, 2014. However, the respective notes, all of which were issued to these investors, carry a stipulation whereby the number of all shares issued pursuant to a conversion, may in the aggregate not exceed a number that would increase the total share holdings beneficially owned by such investor to a level above 9.99%. At the end of the year, this clause limits any conversion to the aforementioned number of shares. All of the aforementioned conversions or exercises, as the case may be, are at the option of the holders.
 
Revenue Recognition
 
The Company’s revenue is derived from advertising on the Kiwibox.Com or, formerly, Kwick websites. Most contracts require the Company to deliver the customer impressions, click-throughs or new customers, or some combination thereof. Accordingly, advertising revenue is estimated and recognized for the period in which customer impressions, click through or new customers are delivered. Licensing or hosting revenue consists of an annual contract with clients to provide web-site hosting and assistance.
 
Use of Estimates
 
The preparation of financial statements in conformity with 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. Actual results could differ from those estimates.
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GOING CONCERN
3 Months Ended
Mar. 31, 2014
Going Concern [Abstract] '
GOING CONCERN '
2. GOING CONCERN
 
The ability of the Company to continue its operations is dependent on increasing sales and obtaining additional capital and financing. Our revenues during the foreseeable future are insufficient to finance our business and we are entirely dependent on the willingness of existing investors to continue supporting the Company with working capital loans and equity investments, and our ability to find new investors should the financial support from existing investors prove to be insufficient. If we were unable to obtain a steady flow of new debt or equity-based working capital we would be forced to cease operations. In their report for the fiscal year ended December 31, 2013, our auditors had expressed an opinion that, as a result of the losses incurred, there was substantial doubt regarding our ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might be necessary if the Company were unable to continue as a going concern. Management’s plans are to continue seeking equity and debt capital until cash flow from operations cover funding needs.
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CONCENTRATIONS OF BUSINESS AND CREDIT RISK
3 Months Ended
Mar. 31, 2014
Concentrations Of Business and Credit Risk [Abstract] '
CONCENTRATIONS OF BUSINESS AND CREDIT RISK '
3. CONCENTRATIONS OF BUSINESS AND CREDIT RISK
 
The Company maintains cash balances in a financial institution which is insured by the Federal Deposit Insurance Corporation up to $250,000. Balances in these accounts may, at times, exceed the federally insured limits. At March 31, 2014, cash balances in bank accounts did not exceed this limit. The Company provides credit in the normal course of business to customers located throughout the U.S. and overseas. The Company performs ongoing credit evaluations of its customers and maintains allowances for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends, and other information.
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PREPAID EXPENSES
3 Months Ended
Mar. 31, 2014
Prepaid Expenses [Abstract] '
PREPAID EXPENSES '
4. PREPAID EXPENSES
 
Prepaid expenses consist of the following at:
 
March 31, 2014
 
December 31, 2013
 
Consulting fees
 
$
55,000
 
$
110,000
 
Business insurance
 
 
11,412
 
 
10,620
 
Other
 
 
548
 
 
548
 
 
 
$
66,960
 
$
121,168
 
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PROPERTY AND EQUIPMENT
3 Months Ended
Mar. 31, 2014
Property and Equipment [Abstract] '
PROPERTY AND EQUIPMENT '
5. PROPERTY AND EQUIPMENT
 
Property and equipment consist of the following at:
 
March 31, 2014
 
December 31, 2013
 
Furniture
 
$
14,322
 
$
14,322
 
Leasehold Improvements
 
 
24,130
 
 
24,130
 
Equipment
 
 
73,138
 
 
73,138
 
 
 
 
111,590
 
 
111,590
 
Less accumulated depreciation
 
 
106,825
 
 
105,795
 
Total
 
$
4,765
 
$
5,795
 
 
Depreciation expense charged to operations was $1,030 and $32,388 in the first three months of 2014 and 2013, respectively.
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INTANGIBLE ASSETS
3 Months Ended
Mar. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract] '
INTANGIBLE ASSETS '
6. INTANGIBLE ASSETS
 
Intangible assets consisted of software for website development costs as follows:
 
 
 
March 31, 2014
 
December 31, 2013
 
Website development costs
 
$
254,264
 
$
254,264
 
Less accumulated amortization
 
 
253,234
 
 
251,688
 
Total
 
$
1,030
 
$
2,576
 
 
Amortization expense for the three months ended March 31, 2014 and 2013 was $1,546 and $26,052, respectively. Additional amortization over the next 5 years is estimated to be as follows:
 
 
 
Amortization expense
 
December 31, 2014
 
$
1,030
 
December 31, 2015
 
 
-
 
December 31, 2016
 
 
-
 
December 31, 2017
 
 
-
 
December 31, 2018
 
 
-
 
Thereafter
 
 
-
 
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INVESTMENT IN UNCONSOLIDATED SUBSIDIARY
3 Months Ended
Mar. 31, 2014
Investment In Unconsolidated Subsidiary [Abstract] '
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY '
7. INVESTMENT IN UNCONSOLIDATED SUBSIDIARY
 
On December 10, 2013, the company signed an equity purchase agreement with Marcus Winkler to sell to him eighty (80%) percent of the equity of its German subsidiary, Kwick. Pursuant to the terms of the agreement, the purchaser paid 36,000 Euros as the purchase price and the company was required to obtain shareholder approval of the sale as required under applicable Delaware Law. The majority shareholder approval was obtained on December 18, 2013. In addition, the Company and Mr. Winkler signed a Lock-Up and Standstill Agreement pursuant to the general terms of which the Company agreed not to participate in the management, operations or finances of Kwick, which shall be exclusively managed and under control of the purchaser. Accordingly, the Company’s minority ownership position shall be subject, in all respects, to the exclusive control of the purchaser. Mr, Winkler also has investment and voting control over Kreuzfeld Ltd., a major creditor of the company, which holds a Class AA convertible promissory note with an outstanding balance (including accrued interest) of $4,355,737 as of March 31, 2014.
 
Due to the significant reduction in the Company’s percentage of controlling interest in Kwick (down to 20%), coupled with the contract restrictions over voting rights and management of the operations of Kwick subsequent to December 18, 2013, the Company recognized the deconsolidation of Kwick as of that date, resulting in a loss on deconsolidation of $253,557, and now carries the investment in Kwick under the cost method of accounting. Due to the significant reductions in fair value of this reporting unit that were considered other than temporary, and impairment of the related goodwill, the carrying value of this cost method investment was zero at December 31, 2013 and March 31, 2014.
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ACCRUED EXPENSES
3 Months Ended
Mar. 31, 2014
Payables and Accruals [Abstract] '
ACCRUED EXPENSES '
8. ACCRUED EXPENSES
 
Accrued expenses consisted of the following at:
 
 
 
March 31, 2014
 
December 31, 2013
 
Accrued interest
 
$
2,413,246
 
$
2,158,274
 
Accrued payroll, payroll taxes and commissions
 
 
-
 
 
18,585
 
Accrued professional fees
 
 
152,742
 
 
116,900
 
Accrued rent/deferred rent obligation
 
 
12,006
 
 
11,789
 
Miscellaneous accruals
 
 
-
 
 
20,735
 
Total
 
$
2,577,994
 
$
2,326,283
 
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OBLIGATIONS TO BE SETTLED IN STOCK
3 Months Ended
Mar. 31, 2014
Other Liabilities Disclosure [Abstract] '
OBLIGATIONS TO BE SETTLED IN STOCK '
9. OBLIGATIONS TO BE SETTLED IN STOCK
 
Obligations to be settled in stock consisted of the following at
 
 
 
March 31,
 
December 31,
 
 
 
2014
 
2013
 
Obligation for warrants granted for compensation
 
$
100,000
 
$
100,000
 
 
 
 
 
 
 
 
 
600,000 common shares issuable to a consultant who was a director of the company, for services rendered.
 
 
36,000
 
 
36,000
 
 
 
 
 
 
 
 
 
300,000 (2014) and 0 (2013) common shares, and 2,900,000 (2014) and 2,900,000 (2013) stock options issuable to two officers of the Company pursuant to their respective employment Agreements
 
 
58,208
 
 
56,858
 
 
 
 
 
 
 
 
 
5,700,000 (2014) and 5,400,000 (2013) stock options issuable to one director who also serves as the Company’s general counsel
 
 
59,400
 
 
56,430
 
 
 
 
 
 
 
 
 
1,000,000 warrants granted on the Pixunity.de asset Purchase (see Note 13)
 
 
10,000
 
 
10,000
 
 
 
 
 
 
 
 
 
 
 
$
263,608
 
$
259,288
 
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LOANS PAYABLE
3 Months Ended
Mar. 31, 2014
Debt Disclosure [Abstract] '
LOANS PAYABLE '
10. LOANS PAYABLE
 
The Company (formerly Magnitude, Inc.) had borrowings under short term loan agreements with the following terms and conditions at March 31, 2014 and December 31, 2013:
 
On December 4, 1996, the company (formerly Magnitude, Inc.) repurchased 500,000 shares of its common stock and retired same against issuance of a promissory note maturing twelve months thereafter accruing interest at 5% per annum and due December 4, 1998. This note is overdue as of September 30, 2005 and no demand for payment has been made.
 
$
75,000
 
 
 
 
 
 
Total
 
$
75,000
 
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NOTES PAYABLE
3 Months Ended
Mar. 31, 2014
Notes Payable [Abstract] '
NOTES PAYABLE '
11. NOTES PAYABLE
 
 
 
March 31,
 
December 31,
 
 
 
2014
 
2013
 
Balance of non-converted notes outstanding. Attempts to locate the holder of this note, to settle this liability, have been unsuccessful.
 
$
25,000
 
$
25,000
 
 
 
 
 
 
 
 
 
From September 2008 through March 2014 five creditors loaned the Company funds under the terms of the convertible notes issued, as modified in March 2009 and July 2010 and April 2011 and August 2012(see Note 12).
 
 
10,143,699
 
 
9,918,699
 
 
 
 
 
 
 
 
 
During 2011, a shareholder loaned the Company $340,000 under demand notes at 10%.
 
 
340,000
 
 
340,000
 
 
 
 
 
 
 
 
 
Total
 
$
10,508,699
 
$
10,283,699
 
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LONG-TERM DEBT
3 Months Ended
Mar. 31, 2014
Long-Term Debt [Abstract] '
LONG-TERM DEBT '
12. LONG-TERM DEBT
 
Long-term debt as of March 31, 2014 and December 31, 2013 is comprised of the following:
 
Discounted present value of a non-interest bearing $70,000 settlement with a former investor of Magnitude, Inc. to be paid in 24 equal monthly payments commencing July 1, 1997. The imputed interest rate used to discount the note is 8% per annum. This obligation is in default.
 
$
33,529
 
Total
 
 
33,529
 
Less current maturities
 
 
33,529
 
Long-term debt, net of current maturities
 
$
-
 
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DERIVATIVE CONVERSION FEATURES
3 Months Ended
Mar. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract] '
DERIVATIVE CONVERSION FEATURES '
13. DERIVATIVE CONVERSION FEATURES
 
On July 27, 2010, the Company issued two Class A Senior Convertible Revolving Promissory Notes (“Class A Notes”), one to Cambridge Services, Inc., in the principal amount of $683,996, consolidating the series of loans (and related accrued interest) made to the Company since June 26, 2009, and one to Discover Advisory Company, in the principal amount of $1,160,984, consolidating the series of loans (and related accrued interest) made to the Company since September 19, 2008 and including advances through September 30, 2010. Each of these promissory notes are due on demand, accrue interest at the rate of 10%, per annum, are convertible (including accrued interest) at the option of each lender into Common Stock of the Company at 50% of the averaged ten closing prices for the Company's Common Stock for the ten (10) trading days immediately preceding the Conversion Date but in no event less than $0.001 (the "Conversion Price"). Both promissory notes contain conversion caps, limiting conversions under these notes to a maximum beneficial ownership position of Company common stock to 9.99% for each lender. Each of these notes contains Company covenants, requiring the lenders’ prior written consent in order for the Company to merge, issue any common or preferred stock or any convertible debt instruments, declare a stock split or dividends, increase any compensation to its officers or directors by more than five (5%) during any calendar year.During the three months ended March 31, 2014 no debt was converted. During the three months ended March 31, 2013 no debt was converted.
 
The Company renegotiated certain outstanding promissory notes with its four major creditors, Discover Advisory Company of the Bahamas (“DAC”), Kreuzfeld Ltd. of Switzerland (“Kreuzfeld”), Cambridge Services, Inc. of Panama (“CSI”) and Vermoegensverwaltungs-Gesellschaft Zurich LTD of Switzerland (“VGZ”). As of August 1, 2012, the Company authorized the issue of a new series of corporate notes, the Class AA Senior Secured Convertible Revolving Promissory Notes, dated as of August 1, 2012 (the New Note(s)”) and issued New Notes: (1) to DAC, with a maximum credit facility of $5,000,000 which replaced the Company’s outstanding Class A Senior Convertible Revolving Promissory Note, dated July 27, 2010, in the original principal amount of $1,080,984, now cancelled, which had an outstanding balance due (including accrued interest) of $3,952,008 as of December 31, 2013 and $4,031,448 at March 31, 2014; (2) to Kreuzfeld, with a maximum credit facility of $5,000,000 which replaced the Company’s outstanding Class A Senior Convertible Revolving Promissory Note, dated September 16, 2011, in the original principal amount of $2,000,000, now cancelled, which had an outstanding balance due (including accrued interest) of $4,267,834 at December 31, 2013 and $4,355,737 at March 31, 2014; (3) to CSI, with a maximum credit facility of $2,000,000 which replaced the Company’s outstanding Class A Senior Convertible Revolving Promissory Note, dated August 1, 2011, in the original principal amount of $1,303,996, now cancelled, with an outstanding balance due (including accrued interest) of $2,729,435 as of December 31, 2013, and $3,014,646 at March 31, 2014 and; (4) to VGZ, with a maximum credit facility of $2,000,000 which replaced the Company’s outstanding Class A Senior Convertible Revolving Promissory Note, dated September 30, 2010, in the original principal amount of $2,000,000, now cancelled, with an outstanding balance due (including accrued interest) of $955,159 as of December 31, 2013 and $974,194 at March 31, 2014. All of the New Notes accrue interest at the rate of 10%, are convertible into common shares at the conversion rate equal to 50% of the averaged ten closing prices for the Company's Common Stock for the ten (10) trading days immediately preceding the Conversion Date but in no event less than $0.001, and are due on demand.. Pursuant to an Equity and Stock Pledge Agreement, also negotiated and executed as of August 1, 2012, the repayment of the outstanding indebtedness of the New Notes is secured by all of the limited partnership interests of the Company’s partly-owned(now deconsolidated) German subsidiary, KWICK! Community GmbH & Co. KG, a private German limited partnership (“KG”), and all of its shares of the sole general partner of KG, KWICK! Community Beteiligungs GmbH.
 
On February 28, 2012 the Company signed a convertible note with Michael Pisani. This was a 1 year note that was convertible at $0.025 per share in the amount of $50,000. In the event that any portion of any outstanding Company promissory note, preferred share, warrant or stock option held of record by a non-affiliate of the Company is converted, exercised or exchanged for common shares of the Company at a conversion price or conversion rate less than $0.025 per one (1) common share anytime any part of the outstanding principal amount of this note is outstanding, the conversion rate of this note shall automatically be adjusted to such lower conversion rate. The Company evaluated this conversion contingency under the guidance at ASC 815-40-15 and determined that this conversion feature should be bifurcated from the host contract and measured at fair value. The Company valued this conversion feature utilizing a Black-Scholes valuation model and a probability analysis with regard to the reset provision of the conversion price. The Company determined the initial value to be $55,241, with $50,000 recorded as a debt discount and the remainder as interest expense-derivative conversion features. The discount was amortized over the life of the note. A total of $8,333 in amortization expense was recorded during the three months ended March 31, 2013. As of December 31, 2013 this debt plus accrued interest was paid in full.
 
The Company accounted for the conversion features underlying these convertible debentures in accordance with ASC 815-40, Contract in Entity’s Own Equity, as the conversion feature embedded in the convertible debentures could result in the note principal and related accrued interest being converted to a variable number of the Company’s common shares. The Company determined the value of the derivate conversion features of new debentures issued to these holders plus accrued interest during the three months ended March 31, 2014 under these terms at the relevant commitment dates to be $483,452 utilizing a Black-Scholes valuation model. The change in fair value of the liability for the conversion feature resulted in income of $45,786 for the three months ended March 31, 2014, which is included in Other Income (Expense) in the accompanying financial statements. The fair value of these derivative conversion features was determined to be $12,505,899 at March 31, 2014.
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COMMITMENTS AND CONTINGENCIES
3 Months Ended
Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract] '
COMMITMENTS AND CONTINGENCIES '
14. COMMITMENTS AND CONTINGENCIES
 
We maintain offices for our operations at 330 W. 42th Street, New York, New York 10036, for approximately 990 square feet. This lease requires initial minimum monthly rentals of $3,833 plus tenants’ share of utility/cam/property tax charges which average approximately $291 per month. During 2013 the Company successfully negotiated a 5 year lease, with future minimum rentals as follows:
 
2014
 
$
34,960
 
2015
 
 
47,854
 
2016
 
 
49,289
 
2017
 
 
50,768
 
2018
 
 
47,847
 
 
In May 2010 the Company negotiated a lease of an apartment in New York City for the CEO in order to reduce travel costs. The lease was for 12 months at $2,775 per month through May 31, 2011. In May 2011 the lease was extended through August 31, 2011 at the rate of $2,837. In August 2011 the lease was extended through December 31, 2011 at the rate of $2,837 per month. In December 2011 the lease was again extended through May 31, 2012 with no change in the base rent. In May 2012 the lease was extended through December 31, 2012 at a monthly rate of $2,943, this lease was then extended through December 31, 2013 at the same terms. In December 2013 the lease was extended through May 31, 2014.
 
Our total rent expenses were $17,722 and $27,740 during the three months ended March 31, 2014 and 2013, respectively.
 
During the third quarter of 2010 the Chief Technology Officer took over the position of Chief Executive Officer with no changes to the above terms, running through July 30, 2011. On October 6, 2010, the terms of the consulting agreement were modified. The new terms called for a reduced monthly consulting fee of $16,667, and for $100,000 to be prepaid on January 1, 2011 thru June 30, 2011. During the fourth quarter of 2011 this agreement was extended through December 31, 2012. During the fourth quarter of 2012 this agreement was again extended through December 31, 2013 with the same prepayment provision. During the fourth quarter of 2013 the terms of this agreement were modified. The new terms called for an increased monthly consulting fee to $18,333 effective January 1, 2014 through December 31, 2014. There were no changes to the stock compensation portion of any earlier agreement.
 
In the three months ended March 31, 2014 and March 31, 2013 this officer was granted 300,000 shares.
 
On March 7, 2011 the Company announced its acquisition of the assets of Pixunity.DE a German photo book community. We purchased the internet domain name, the software codes for capturing, uploading and sharing images and the list of its approximate 15,000 members. The principal reason for this purchase was to acquire the source code and technology for image sharing which could have cost us up to $100,000 to develop this technology in house. We are currently integrating the image sharing software into our Kiwibox website and do not intend to market or rely upon the pixunity brand for our business.
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RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2014
Related Party Transactions [Abstract] '
RELATED PARTY TRANSACTIONS '
15. RELATED PARTY TRANSACTIONS
 
During the three months ended March 31, 2014, the Company sold advertising space on its Kiwibox.com website to Kwick totaling $10,914, which is the balance due from Kwick at March 31, 2014. Kwick is majority-owned by Mr. Winkler, who in turn is a related party of the Company (see Note 7).
 
During the three months ended March 31, 2014 and 2013 one outside director of the Company who also serves as the Company’s general and securities counsel, was paid an aggregate $9,927 and $12,927 respectively, for legal services. The director also received 300,000 common stock options during the three month periods ending March 31, 2014 and 2013, valued at $2,970 and $2,970 respectively.
 
During the three months ended March 31, 2014 and 2013 we incurred aggregate expenses of $69,316 and $63,442, respectively, to companies controlled by the Chief Executive Officer, for website hosting, website development, server farm installations and technical advisory services.
 
Through March 31. 2014, approximately 9.99% of the voting stock was beneficially held by Discovery Advisory Company, located in the Bahamas, and Cambridge Services Inc., Kreuzfeld, LTD and Vermoegensverwaltungs-Gesellschaft Zurich LTD. (VGZ) of Switzerland. Discovery Advisory Company, Cambridge Services Inc., Kreuzfeld, LTD and VGZ are major creditors, having advanced operating capital against issuance by the Company of convertible promissory notes during 2014, 2013and 2012 . During the three months ended March 31, 2014 Cambridge Services, Inc advanced an additional $225,000. At March 31, 2014, $3,221,722 and $2,585,060 of such notes were outstanding and owed to Discovery Advisory Company and Cambridge Services Inc, respectively and $3,564,959 and $771,958 owed to Kreuzfeld, Ltd. and VGZ, respectively.
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FAIR VALUE
3 Months Ended
Mar. 31, 2014
Fair Value Disclosures [Abstract] '
FAIR VALUE '
16. FAIR VALUE
 
Some of the Company’s financial instruments are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature, such as cash and cash equivalents, receivables and payables.
 
Effective July 1, 2009, the Company adopted ASC 820, Fair Value Measurements and Disclosures. This topic defines fair value for certain financial and nonfinancial assets and liabilities that are recorded at fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. This guidance supersedes all other accounting pronouncements that require or permit fair value measurements. The Company accounted for the conversion features underlying certain convertible debentures in accordance with ASC 815-40, Contracts in Entity’s Own Equity, as the conversion feature embedded in the convertible debentures could result in the note principal and related accrued interest being converted to a variable number of the Company’s common shares.
 
Effective July 1, 2009, the Company adopted ASC 820-10-55-23A, Scope Application to Certain Non-Financial Assets and Certain Non-Financial Liabilities, delaying application for non-financial assets and non-financial liabilities as permitted. ASC 820 establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows:
 
Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. Financial assets and liabilities utilizing Level 1 inputs include active exchange- traded securities and exchange-based derivatives.
 
Level 2 — inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities, non-exchange-based derivatives, mutual funds, and fair-value hedges.
 
Level 3 — unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. Financial assets and liabilities utilizing Level 3 inputs include infrequently- traded, non-exchange-based derivatives and commingled investment funds, and are measured using present value pricing models. The company values the conversion liabilities using the Black- Scholes model and the assumptions are updated using independent data such as the risk free rate, volatility and expected life for each valuation date based on changes over time.
 
The following table reconciles, for the three months ended March 31, 2014, the beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements:
 
Conversion Liability at January 1, 2014
 
$
12,068,233
 
Value of beneficial conversion features of new debentures
 
 
483,452
 
Change in value of beneficial conversion features during period
 
 
(45,786)
 
Reductions in fair value due to principal conversions
 
 
-
 
Conversion Liability at March 31, 2014
 
$
12,505,899
 
 
The fair value of the conversion features are calculated at the time of issuance and the Company records a conversion liability for the calculated value. The Company recognizes interest expense for the recognition of the conversion liability.
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SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2014
Subsequent Events [Abstract] '
SUBSEQUENT EVENTS '
17. SUBSEQUENT EVENTS
 
During April 2014 and through May 14, 2014 we received $80,000 of working capital from accredited investors, which are covered by convertible promissory notes.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
3 Months Ended
Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract] '
Nature of Organization '
Nature of Organization
 
Kiwibox.Com, Inc. (the “Company”) was incorporated as a Delaware corporation on April 19, 1988 under the name Fortunistics, Inc. On November 18, 1998, the Company changed its name to Magnitude Information Systems, Inc. On December 31, 2009, the Company changed its name to Kiwibox.com, Inc.
 
On August 16, 2007 the Company acquired all outstanding shares of Kiwibox Media, Inc.
 
The Company, Magnitude, Inc. and Kiwibox Media Inc. were separate legal entities until December 31, 2009, with Kiwibox Media, Inc. being a wholly owned subsidiary. On December 31, 2009, the two subsidiaries, Magnitude, Inc. and Kiwibox Media, Inc. merged into the Company.
 
On September 30, 2011, Kiwibox.com acquired the German based social network Kwick! Community GmbH & Co. KG (“Kwick”), a wholly-owned subsidiary.
 
On September 24, 2013, Kwick Community GmbH & Co. KG signed an equity purchase agreement to acquire Interscholtz Internet Services GmbH and Co KG, a German limited liability company, and all the equity of its general partner, Interscholtz Beteiligungs GmbH. As of the balance sheet date, and pursuant to the terms of the contract, since full payment was not made for the purchase price of Interscholz Internet Services GmbH & Co KG, ownership does not transfer to Kwick Community GmbH & Co KG. Full payment must be made for ownership to transfer to Kwick. As of December 31, 2013 only $515,037 of the total purchase price of $1,352,000 was made. On December 9,2013 the acquisition of Intersholz Internet Services GmbH and Co KG by Kwick was rescinded due to non compliance with the terms of the addendum to the contract, calling for the full purchase price to have been paid.. However, Kwick did acquire all the equity of the general partner, Interscholz Beteiligungs GmbH, as full payment was not a requirement for transfer of ownership of that entity.
 
On December 10, 2013, the Company signed an Equity Purchase Agreement with Marcus Winkler to sell to him eighty (80%) percent of the equity of its German subsidiary, KWICK! Community GmbH & Co. KG, a German limited liability company, and Kwick! Beteiligungs GmbH, its general partner (collectively, “Kwick”). The sale was approved on December 18, 2013. Due to the fact that the parent company ceased to have a controlling financial interest in Kwick, the subsidiary was deconsolidated from that date forward.
Cash and Cash Equivalents '
Cash and Cash Equivalents
 
The Company accounts for cash and other highly liquid investments with original maturities of three months or less as cash and cash equivalents.
Principles of Consolidation '
Principles of Consolidation
 
The financial statements for the three months ended March 31, 2013 include the accounts of Kiwibox.com, Inc. and the activities of its former subsidiary, KWICK! Community GmbH & Co. KG (“Kwick”). Any significant inter-company balances and transactions were eliminated.
Depreciation and Amortization '
Depreciation and Amortization
 
Property and equipment are recorded at cost. Depreciation on equipment, furniture and fixtures and leasehold improvements is computed on the straight-line method over the estimated useful lives of such assets between 3-10 years, or lease term for leasehold improvements, if for a shorter period. Maintenance and repairs are charged to operations as incurred. Software costs are amortized using the straight line method and amortized over their estimated useful lives. Amortization begins when the related software is ready for its intended use in accordance with Accounting Standards Codification (“ASC”) 350-40, Internal-Use Software, Subsequent Measurement.
Foreign Currency Translation '
Foreign Currency Translation
 
Income and expense items of the Company’s former foreign subsidiary operations were translated at the weighted average exchange rates prevailing during the three months ended March 31, 2013. Gains and losses, if any, resulting from foreign currency transactions are included in the results of operations during that period.
Advertising Costs '
Advertising Costs
 
Advertising costs are charged to operations when incurred. Advertising expense was $0 and $42,177 for the three months ended March 31, 2014 and 2013, respectively.
Evaluation of Long Lived Assets '
Evaluation of Long Lived Assets
 
Long-lived assets are assessed for recoverability on an ongoing basis. In evaluating the fair value and future benefits of long-lived assets, their carrying value would be reduced by the excess, if any, of the long-lived asset over management’s estimate of the anticipated undiscounted future net cash flows of the related long-lived asset.
 
Any impairment of the Company’s internally-developed software is recognized and measured in accordance with the provisions of ASC 360-10-35, Intangibles-Goodwill and Other, Internal-Use Software, Subsequent Measurement, which requires that assets be grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. The guidance is applicable, for example, when one of the following events or changes in circumstances occurs related to computer software being developed or currently in use indicating that the carrying amount may not be recoverable:
 
a. Internal-use computer software is not expected to provide substantive service potential.
 
b. A significant change occurs in the extent or manner in which the software is used or is expected to be used.
 
c. A significant change is made or will be made to the software program.
 
d. Costs of developing or modifying internal-use computer software significantly exceed the amount originally expected to develop or modify the software.
Fair Value Measurements '
Fair Value Measurements
 
The Company adopted the provisions of ASC 820, Fair Value Measurements and Disclosures, which is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Under ASC 820, a framework was established for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. The Company accounted for certain convertible debentures issued in the year ended December 31, 2013 and the three months ended March 31, 2014 as derivative liabilities required to be bifurcated from the host contract in accordance with ASC 815-40, Contracts in Entity’s Own Equity, as the conversion feature embedded in the convertible debentures could result in the note principal and related accrued interest being converted to a variable number of the Company’s common shares (see Note 13).
Securities Issued for Services '
Securities Issued for Services
 
The Company accounts for stock, stock options and stock warrants issued for services and compensation by employees under the fair value method. For non-employees, the fair market value of the Company’s stock on the date of stock issuance or option/grant is used. The Company has determined the fair market value of the warrants/options issued under the Black-Scholes Pricing Model. The Company has adopted the provisions of ASC 718, “Compensation – Stock Compensation”, which establishes accounting for equity instruments exchanged for employee services. Under the provisions of ASC 718, share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity grant).
Reclassification of certain securities under ASC 815-15 '
Reclassification of Certain Securities under ASC 815-15
 
Pursuant to ASC 815-15, “Contracts in Entity’s own Equity”, if a company has more than one contract subject to this Issue, and partial reclassification is required, there may be different methods that could be used to determine which contracts, or portions of contracts, should be reclassified. The Company's method for reclassification of such contracts is reclassification of contracts with the latest maturity date first.
Capitalization of Software /Website development costs '
Capitalization of Software /Website development costs
 
The Company capitalizes outside-contracted development work in accordance with the guidelines published under ASC 350-50, “Website Development Costs”. Under ASC 350-50, costs incurred during the planning stage are expensed, while costs relating to software used to operate a web site or for developing initial graphics should be accounted for under ASC 350-50, Accounting for the Costs of Computer Software Developed or Obtained for Internal Use, unless a plan exists or is being developed to market the software externally. Under ASC 350-50, internal and external costs incurred to develop internal-use computer software during the application development stage should be capitalized. Costs to develop or obtain software that allows for access or conversion of old data by new systems should also be capitalized, excluding training costs.
 
Fees incurred for web site hosting, which involve the payment of a specified, periodic fee to an Internet service provider in return for hosting the web site on its server(s) connected to the Internet, are expensed over the period of benefit, and included in cost of sales in the accompanying financial statements.
 
A total of $0 and $0 was capitalized for web-site development work during the three months ended March 31, 2014 and 2013, respectively.
Income Taxes '
Income Taxes
 
The Company provides for income taxes based on enacted tax law and statutory tax rates at which items of income and expenses are expected to be settled in the Company’s income tax return. Certain items of revenue and expense are reported for Federal income tax purposes in different periods than for financial reporting purposes, thereby resulting in deferred income taxes. Deferred taxes are also recognized for operating losses that are available to offset future taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company has incurred net operating losses for financial-reporting and tax-reporting purposes. Accordingly, for Federal and state income tax purposes, the benefit for income taxes has been offset by a valuation allowance against the related federal and state deferred tax asset.
Net Loss Per Share '
Net Loss Per Share
 
Net loss per share, in accordance with the provisions of ASC 260, “Earnings Per Share” is computed by dividing net loss by the weighted average number of shares of Common Stock outstanding during the period. Common Stock equivalents have not been included in this computation since the effect would be anti-dilutive. Such common stock equivalents totaled 102,603,240 common shares at March 31, 2014, comprised of 24,500,000 shares issuable upon exercise of stock purchase warrants, 4,600,000 shares issuable upon exercise of stock options, 729,537 shares exercisable upon conversion of convertible preferred shares, and 72,773,703 shares potentially issuable upon conversion of convertible debt. Such debt and the related accrued interest with principal totaling $10,143,699, convertible at the option of five debt holders at a price of 50% of the average closing price for the preceding 10 days, would yield in excess of 4.4 billion shares if fully converted at March 31, 2014. However, the respective notes, all of which were issued to these investors, carry a stipulation whereby the number of all shares issued pursuant to a conversion, may in the aggregate not exceed a number that would increase the total share holdings beneficially owned by such investor to a level above 9.99%. At the end of the year, this clause limits any conversion to the aforementioned number of shares. All of the aforementioned conversions or exercises, as the case may be, are at the option of the holders.
Revenue Recognition '
Revenue Recognition
 
The Company’s revenue is derived from advertising on the Kiwibox.Com or, formerly, Kwick websites. Most contracts require the Company to deliver the customer impressions, click-throughs or new customers, or some combination thereof. Accordingly, advertising revenue is estimated and recognized for the period in which customer impressions, click through or new customers are delivered. Licensing or hosting revenue consists of an annual contract with clients to provide web-site hosting and assistance.
Use of Estimates '
Use of Estimates
 
The preparation of financial statements in conformity with 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. Actual results could differ from those estimates.
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PREPAID EXPENSES (Tables)
3 Months Ended
Mar. 31, 2014
Prepaid Expenses [Abstract] '
Prepaid Expenses '
Prepaid expenses consist of the following at:
 
March 31, 2014
 
December 31, 2013
 
Consulting fees
 
$
55,000
 
$
110,000
 
Business insurance
 
 
11,412
 
 
10,620
 
Other
 
 
548
 
 
548
 
 
 
$
66,960
 
$
121,168
 
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PROPERTY AND EQUIPMENT (Tables)
3 Months Ended
Mar. 31, 2014
Property and Equipment [Abstract] '
Property and Equipment '
Property and equipment consist of the following at:
 
March 31, 2014
 
December 31, 2013
 
Furniture
 
$
14,322
 
$
14,322
 
Leasehold Improvements
 
 
24,130
 
 
24,130
 
Equipment
 
 
73,138
 
 
73,138
 
 
 
 
111,590
 
 
111,590
 
Less accumulated depreciation
 
 
106,825
 
 
105,795
 
Total
 
$
4,765
 
$
5,795
 
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INTANGIBLE ASSETS (Tables)
3 Months Ended
Mar. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract] '
Intangible Assets Consisted of Software for Website Development Costs '
Intangible assets consisted of software for website development costs as follows:
 
 
 
March 31, 2014
 
December 31, 2013
 
Website development costs
 
$
254,264
 
$
254,264
 
Less accumulated amortization
 
 
253,234
 
 
251,688
 
Total
 
$
1,030
 
$
2,576
 
Estimated Amortization over Next Five Years '
Additional amortization over the next 5 years is estimated to be as follows:
 
 
 
Amortization expense
 
December 31, 2014
 
$
1,030
 
December 31, 2015
 
 
-
 
December 31, 2016
 
 
-
 
December 31, 2017
 
 
-
 
December 31, 2018
 
 
-
 
Thereafter
 
 
-
 
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ACCRUED EXPENSES (Tables)
3 Months Ended
Mar. 31, 2014
Payables and Accruals [Abstract] '
Accrued Expenses '
Accrued expenses consisted of the following at:
 
 
 
March 31, 2014
 
December 31, 2013
 
Accrued interest
 
$
2,413,246
 
$
2,158,274
 
Accrued payroll, payroll taxes and commissions
 
 
-
 
 
18,585
 
Accrued professional fees
 
 
152,742
 
 
116,900
 
Accrued rent/deferred rent obligation
 
 
12,006
 
 
11,789
 
Miscellaneous accruals
 
 
-
 
 
20,735
 
Total
 
$
2,577,994
 
$
2,326,283
 
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OBLIGATIONS TO BE SETTLED IN STOCK (Tables)
3 Months Ended
Mar. 31, 2014
Other Liabilities Disclosure [Abstract] '
Obligations to be Settled in Stock '
Obligations to be settled in stock consisted of the following at
 
 
 
March 31,
 
December 31,
 
 
 
2014
 
2013
 
Obligation for warrants granted for compensation
 
$
100,000
 
$
100,000
 
 
 
 
 
 
 
 
 
600,000 common shares issuable to a consultant who was a director of the company, for services rendered.
 
 
36,000
 
 
36,000
 
 
 
 
 
 
 
 
 
300,000 (2014) and 0 (2013) common shares, and 2,900,000 (2014) and 2,900,000 (2013) stock options issuable to two officers of the Company pursuant to their respective employment Agreements
 
 
58,208
 
 
56,858
 
 
 
 
 
 
 
 
 
5,700,000 (2014) and 5,400,000 (2013) stock options issuable to one director who also serves as the Company’s general counsel
 
 
59,400
 
 
56,430
 
 
 
 
 
 
 
 
 
1,000,000 warrants granted on the Pixunity.de asset Purchase (see Note 13)
 
 
10,000
 
 
10,000
 
 
 
 
 
 
 
 
 
 
 
$
263,608
 
$
259,288
 
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LOANS PAYABLE (Tables)
3 Months Ended
Mar. 31, 2014
Debt Disclosure [Abstract] '
Borrowings under Short Term Loan Agreements '
The Company (formerly Magnitude, Inc.) had borrowings under short term loan agreements with the following terms and conditions at March 31, 2014 and December 31, 2013:
 
On December 4, 1996, the company (formerly Magnitude, Inc.) repurchased 500,000 shares of its common stock and retired same against issuance of a promissory note maturing twelve months thereafter accruing interest at 5% per annum and due December 4, 1998. This note is overdue as of September 30, 2005 and no demand for payment has been made.
 
$
75,000
 
 
 
 
 
 
Total
 
$
75,000
 
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NOTES PAYABLE (Tables)
3 Months Ended
Mar. 31, 2014
Notes Payable [Abstract] '
Notes Payable '
 
 
March 31,
 
December 31,
 
 
 
2014
 
2013
 
Balance of non-converted notes outstanding. Attempts to locate the holder of this note, to settle this liability, have been unsuccessful.
 
$
25,000
 
$
25,000
 
 
 
 
 
 
 
 
 
From September 2008 through March 2014 five creditors loaned the Company funds under the terms of the convertible notes issued, as modified in March 2009 and July 2010 and April 2011 and August 2012(see Note 12).
 
 
10,143,699
 
 
9,918,699
 
 
 
 
 
 
 
 
 
During 2011, a shareholder loaned the Company $340,000 under demand notes at 10%.
 
 
340,000
 
 
340,000
 
 
 
 
 
 
 
 
 
Total
 
$
10,508,699
 
$
10,283,699
 
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LONG-TERM DEBT (Tables)
3 Months Ended
Mar. 31, 2014
Long-Term Debt [Abstract] '
Components Of Long-term debt '
Long-term debt as of March 31, 2014 and December 31, 2013 is comprised of the following:
 
Discounted present value of a non-interest bearing $70,000 settlement with a former investor of Magnitude, Inc. to be paid in 24 equal monthly payments commencing July 1, 1997. The imputed interest rate used to discount the note is 8% per annum. This obligation is in default.
 
$
33,529
 
Total
 
 
33,529
 
Less current maturities
 
 
33,529
 
Long-term debt, net of current maturities
 
$
-
 
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COMMITMENTS AND CONTINGENCIES (Tables) (New York Operations)
3 Months Ended
Mar. 31, 2014
New York Operations '
Commitments and Contingencies Disclosure [Line Items] '
Operating Lease Commitments '
During 2013 the Company successfully negotiated a 5 year lease, with future minimum rentals as follows:
 
2014
 
$
34,960
 
2015
 
 
47,854
 
2016
 
 
49,289
 
2017
 
 
50,768
 
2018
 
 
47,847
 
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FAIR VALUE (Tables)
3 Months Ended
Mar. 31, 2014
Fair Value Disclosures [Abstract] '
Reconciliation of Financial Instruments that are Recognized at Fair Value in Consolidated Financial Statements '
The following table reconciles, for the three months ended March 31, 2014, the beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements:
 
Conversion Liability at January 1, 2014
 
$
12,068,233
 
Value of beneficial conversion features of new debentures
 
 
483,452
 
Change in value of beneficial conversion features during period
 
 
(45,786)
 
Reductions in fair value due to principal conversions
 
 
-
 
Conversion Liability at March 31, 2014
 
$
12,505,899
 
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Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)
3 Months Ended 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Dec. 31, 2013
Dec. 10, 2013
Germany
Subsidiary
Mar. 31, 2014
Leasehold Improvements
Mar. 31, 2014
Web-Site Development
Mar. 31, 2013
Web-Site Development
Mar. 31, 2014
Minimum
Mar. 31, 2014
Maximum
Jul. 27, 2010
Maximum
Summary Of Significant Accounting Policies [Line Items] ' ' ' ' ' ' ' ' ' '
Entity Incorporation, Date of Incorporation Apr 19, 1988 ' ' ' ' ' ' ' ' '
Entity Information, Date To Change Former Legal Or Registered Name Dec 31, 2009 ' ' ' ' ' ' ' ' '
Advertising expense $ 0 $ 42,177 ' ' ' ' ' ' ' '
Web-site development capitalized ' ' ' ' ' 0 0 ' ' '
Estimated useful lives of assets ' ' ' ' ' ' ' '3 years '10 years '
Estimated useful lives, leasehold improvements ' ' ' ' 'computed on the straight-line method over the estimated useful lives of such assets between 3-10 years, or lease term for leasehold improvements, if for a shorter period. ' ' ' ' '
Common equivalents, dilutive potential common shares 102,603,240 ' ' ' ' ' ' ' ' '
Shares issuable upon exercise of stock purchase warrants 24,500,000 ' ' ' ' ' ' ' ' '
Shares issuable upon exercise of stock options 4,600,000 ' ' ' ' ' ' ' ' '
Shares issuable upon conversion of convertible debt 72,773,703 ' ' ' ' ' ' ' ' '
Debt instrument, convertible, terms of conversion feature 'Such debt and the related accrued interest with principal totaling $10,143,699, convertible at the option of five debt holders at a price of 50% of the average closing price for the preceding 10 days, would yield in excess of 4.4 billion shares if fully converted at March 31, 2014. However, the respective notes, all of which were issued to these investors, carry a stipulation whereby the number of all shares issued pursuant to a conversion, may in the aggregate not exceed a number that would increase the total share holdings beneficially owned by such investor to a level above 9.99%. At the end of the year, this clause limits any conversion to the aforementioned number of shares. All of the aforementioned conversions or exercises, as the case may be, are at the option of the holders. ' ' ' ' ' ' ' ' '
Shares issuable upon conversion of convertible debt conversion price, as percentage of the average closing price preceding 10 days 50.00% ' ' ' ' ' ' ' ' '
Common stock issuable on fully exercise of options by investors 4,400,000,000 ' ' ' ' ' ' ' ' '
Percentage of ownership interest of investors ' ' ' ' ' ' ' ' 9.99% 9.99%
Shares exercisable upon conversion of convertible preferred shares 729,537 ' ' ' ' ' ' ' ' '
Accrued interest principal amount 10,143,699 ' ' ' ' ' ' ' ' '
Business Acquisition Cost Acquired Entity Cash Paid ' ' 515,037 ' ' ' ' ' ' '
Business Acquisition Cost Acquired Entity Purchase Price ' ' $ 1,352,000 ' ' ' ' ' ' '
Equity Method Investment, Ownership Percentage ' ' ' 80.00% ' ' ' ' ' '
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Concentrations of Business and Credit Risk - Additional Information (Detail) (Maximum, USD $)
Mar. 31, 2014
Maximum '
Concentration Risk [Line Items] '
Cash, FDIC insurance limit $ 250,000
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Prepaid Expenses (Detail) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Prepaid expenses consist of the following at: ' '
Consulting fees $ 55,000 $ 110,000
Business insurance 11,412 10,620
Other 548 548
Total Prepaid Expenses $ 66,960 $ 121,168
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Component of Property and Equipment (Detail) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Property, Plant and Equipment [Line Items] ' '
Property Plant And Equipment $ 111,590 $ 111,590
Less accumulated depreciation 106,825 105,795
Total 4,765 5,795
Furniture ' '
Property, Plant and Equipment [Line Items] ' '
Property Plant And Equipment 14,322 14,322
Leasehold Improvements ' '
Property, Plant and Equipment [Line Items] ' '
Property Plant And Equipment 24,130 24,130
Equipment ' '
Property, Plant and Equipment [Line Items] ' '
Property Plant And Equipment $ 73,138 $ 73,138
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Property and Equipment - Additional Information (Detail) (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Property, Plant and Equipment [Line Items] ' '
Depreciation expense $ 1,030 $ 32,388
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Intangible Assets Consisted of Software for Website Development Costs (Detail) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items] ' '
Less accumulated amortization $ 253,234 $ 251,688
Total 1,030 2,576
Web-Site Development ' '
Finite-Lived Intangible Assets [Line Items] ' '
Website development costs 254,264 254,264
Less accumulated amortization 253,234 251,688
Total $ 1,030 $ 2,576
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Estimated Amortization over Next Five Years (Detail) (USD $)
Mar. 31, 2014
Finite-Lived Intangible Assets [Line Items] '
December 31, 2014 $ 1,030
December 31, 2015 0
December 31, 2016 0
December 31, 2017 0
December 31, 2018 0
Thereafter $ 0
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Intangible Assets - Additional Information (Detail) (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Finite-Lived Intangible Assets [Line Items] ' '
Amortization expense $ 1,546 $ 26,052
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Investment in Unconsolidated Subsidiary - Additional Information (Detail)
3 Months Ended
Mar. 31, 2014
USD ($)
Dec. 31, 2013
USD ($)
Mar. 31, 2014
Senior Class A Notes
Kreuzfeld Ltd
USD ($)
Dec. 31, 2013
Senior Class A Notes
Kreuzfeld Ltd
USD ($)
Dec. 10, 2013
Subsidiary
Germany
EUR (€)
Investment In Unconsolidated Subsidiary [Line Items] ' ' ' ' '
Equity method investment ownership percentage ' ' ' ' 80.00%
Payment to purchase of equity subsidiary ' ' ' ' € 36,000
Convertible Note ' ' 4,355,737 4,267,834 '
Deconsolidation gain (loss) amount 253,557 ' ' ' '
Carrying value of cost method investment $ 0 $ 0 ' ' '
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Accrued Expenses (Detail) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Accounts Payable and Accrued Liabilities [Line Items] ' '
Accrued interest $ 2,413,246 $ 2,158,274
Accrued payroll, payroll taxes and commissions 0 18,585
Accrued professional fees 152,742 116,900
Accrued rent/deferred rent obligation 12,006 11,789
Miscellaneous accruals 0 20,735
Total $ 2,577,994 $ 2,326,283
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Obligations to be Settled in Stock (Detail) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Short-term Debt [Line Items] ' '
Obligations to be settled in stock $ 263,608 $ 259,288
Employment Agreement | Former Director ' '
Short-term Debt [Line Items] ' '
Obligations to be settled in stock 58,208 56,858
Services | Former Director ' '
Short-term Debt [Line Items] ' '
Obligations to be settled in stock 36,000 36,000
Consulting Agreement | Chief Executive Officer ' '
Short-term Debt [Line Items] ' '
Obligations to be settled in stock 59,400 56,430
Warrant ' '
Short-term Debt [Line Items] ' '
Obligations to be settled in stock 100,000 100,000
Warrant | Pixunity.DE ' '
Short-term Debt [Line Items] ' '
Obligations to be settled in stock $ 10,000 $ 10,000
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Obligations to be Settled in Stock (Parenthetical) (Detail)
3 Months Ended 12 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Former Director | Services ' '
Short-term Debt [Line Items] ' '
Common shares issuable, for services rendered 600,000 600,000
Former Director | Employment Agreements ' '
Short-term Debt [Line Items] ' '
Stock options issuable 2,900,000 2,900,000
Chief Executive Officer | Consulting Agreement ' '
Short-term Debt [Line Items] ' '
Common shares issuable, for services rendered 300,000 0
Director ' '
Short-term Debt [Line Items] ' '
Stock options issuable 5,700,000 5,400,000
Pixunity.DE | Warrant ' '
Short-term Debt [Line Items] ' '
Warrants granted on Pixunity.de asset Purchase 1,000,000 1,000,000
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Borrowings under Short Term Loan Agreements (Detail) (USD $)
3 Months Ended
Mar. 31, 2014
Short-term Debt [Line Items] '
On December 4, 1996, The company (Formerly Magnitude, Inc.) repurchased 500,000 shares of its common stock and retired same against issuance of a promissory note maturing twelve months thereafter accruing interest at 5% per annum and due December 4, 1998. This note is overdue as of September 30, 2005 and no demand for payment has been made. $ 75,000
Total $ 75,000
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Borrowings under Short Term Loan Agreements (Parenthetical) (Detail)
1 Months Ended
Dec. 04, 1996
Short-term Debt [Line Items] '
Common stock repurchased and retired against issuance of promissory note 500,000
Debt maturity date Dec 4, 1998
Accruing interest per annum 5.00%
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Component of Note Payable (Detail) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items] ' '
Total $ 10,508,699 $ 10,283,699
Other | Demand Notes ' '
Debt Instrument [Line Items] ' '
Notes and loans payable 25,000 25,000
Related Party Transactions | September 2008 through March 2013 ' '
Debt Instrument [Line Items] ' '
Convertible note payable-other 10,143,699 9,918,699
Related Party Transactions | Demand Notes ' '
Debt Instrument [Line Items] ' '
Notes and loans payable $ 340,000 $ 340,000
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Component of Note Payable (Parenthetical) (Detail) (USD $)
Dec. 04, 1996
Mar. 31, 2014
Demand Notes
Loans from Shareholders
Dec. 31, 2013
Demand Notes
Loans from Shareholders
Debt Instrument [Line Items] ' ' '
Notes and loans payable ' $ 340,000 $ 340,000
Debt instrument interest rate 5.00% 10.00% 10.00%
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Components of Long-Term Debt (Detail) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items] ' '
Discounted present value of a non-interest bearing $70,000 settlement with a former investor of Magnitude, Inc. to be paid in 24 equal monthly payments commencing July 1, 1997. The imputed interest rate used to discount the note is 8% per annum. This obligation is in default. $ 33,529 '
Total 33,529 '
Less current maturities 33,529 33,529
Long-term debt, net of current maturities $ 0 '
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Components of Long-Term Debt (Parenthetical) (Detail) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items] ' '
Non-interest bearing obligation $ 70,000 $ 70,000
Debt instrument, number of periodic payment 24 24
Debt instrument, frequency of periodic payment 'monthly 'monthly
Debt instrument, date of first required payment Jul 1, 1997 Jul 1, 1997
Imputed interest rate used to discount the note 8.00% 8.00%
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Derivative Conversion Features - Additional Information (Detail) (USD $)
3 Months Ended 1 Months Ended 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Dec. 04, 1996
Mar. 31, 2014
Maximum
Jul. 27, 2010
Maximum
Mar. 31, 2014
Minimum
Jul. 27, 2010
Minimum
Feb. 28, 2012
Michael Pisani
Mar. 31, 2013
Michael Pisani
Feb. 28, 2012
Nonaffiliated Entity
Maximum
Mar. 31, 2014
Cambridge Service Inc
Senior Class A Notes
Dec. 31, 2013
Cambridge Service Inc
Senior Class A Notes
Aug. 01, 2011
Cambridge Service Inc
Senior Class A Notes
Jul. 27, 2010
Cambridge Service Inc
Senior Class A Notes
Aug. 01, 2011
Cambridge Service Inc
Senior Class A Notes
Canceled
Aug. 01, 2012
Discovery Advisory Company
Mar. 31, 2014
Discovery Advisory Company
Senior Class A Notes
Dec. 31, 2013
Discovery Advisory Company
Senior Class A Notes
Jul. 27, 2010
Discovery Advisory Company
Senior Class A Notes
Jul. 27, 2010
Discovery Advisory Company
Senior Class A Notes
Canceled
Sep. 16, 2011
Kreuzfeld Ltd
Mar. 31, 2014
Kreuzfeld Ltd
Senior Class A Notes
Dec. 31, 2013
Kreuzfeld Ltd
Senior Class A Notes
Sep. 16, 2011
Kreuzfeld Ltd
Senior Class A Notes
Canceled
Mar. 31, 2014
Vermoegensverwaltungs Gesellschaft Zurich Ltd
Senior Class A Notes
Dec. 31, 2013
Vermoegensverwaltungs Gesellschaft Zurich Ltd
Senior Class A Notes
Sep. 30, 2010
Vermoegensverwaltungs Gesellschaft Zurich Ltd
Senior Class A Notes
Sep. 30, 2010
Vermoegensverwaltungs Gesellschaft Zurich Ltd
Senior Class A Notes
Canceled
Derivative [Line Items] ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
Debt instrument, interest rate, stated percentage ' ' 5.00% ' ' ' ' ' ' ' ' ' ' 10.00% ' ' ' ' ' ' ' ' ' ' 10.00% ' ' '
Value of derivative conversion feature $ 483,452 ' ' ' ' ' ' $ 55,241 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
Fair value of derivative conversion feature 12,505,899 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
Convertible note, term ' ' ' ' ' ' ' '1 year ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
Debt discount ' ' ' ' ' ' ' 50,000 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
Amortization expense recorded 0 8,333 ' ' ' ' ' ' 8,333 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
Convertible revolving promissory notes ' ' ' ' ' ' ' ' ' ' ' ' ' 683,996 1,303,996 ' ' ' 1,160,984 1,080,984 ' ' ' 2,000,000 ' ' ' 2,000,000
Convertible revolving promissory notes, outstanding ' ' ' ' ' ' ' 50,000 ' ' 3,014,646 2,729,435 ' ' ' ' 4,031,448 3,952,008 ' ' ' 4,355,737 4,267,834 ' 974,194 955,159 ' '
Shares issuable upon conversion of convertible debt conversion price, as percentage of the average closing price preceding 10 days 50.00% ' ' ' ' ' ' ' ' ' ' ' ' 50.00% ' ' ' ' ' ' ' ' ' ' ' ' ' '
Shares issuable upon conversion of convertible debt, price per share ' ' ' ' ' $ 0.001 $ 0.001 $ 0.025 ' $ 0.025 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
Line of credit facility, maximum borrowing capacity ' ' ' ' ' ' ' ' ' ' ' ' 2,000,000 ' ' 5,000,000 ' ' ' ' 5,000,000 ' ' ' ' ' 2,000,000 '
Change in value of beneficial conversion features during period $ 45,786 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
Debt instrument dividend compensation percentage ' ' ' ' ' ' ' ' ' ' ' ' ' 5.00% ' ' ' ' ' ' ' ' ' ' ' ' ' '
Percentage of ownership interest of investors ' ' ' 9.99% 9.99% ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
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Operating Lease Commitments (Detail) (New York Operations, USD $)
Mar. 31, 2014
New York Operations '
Operating Leased Assets [Line Items] '
2014 $ 34,960
2015 47,854
2016 49,289
2017 50,768
2018 $ 47,847
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Commitments and Contingencies-Additional Information (Detail) (USD $)
3 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended
Mar. 31, 2014
sqft
Mar. 31, 2013
Dec. 31, 2013
Oct. 06, 2010
Mar. 07, 2011
Pixunity.DE
Oct. 06, 2010
January 1, 2011 through June 30, 2011
Mar. 07, 2011
Maximum
Pixunity.DE
Mar. 31, 2014
Monthly Payment
Mar. 31, 2014
Monthly Payment
May 2010 Through May 31, 2011
Mar. 31, 2014
Monthly Payment
May 2011 Through August 31, 2011
Mar. 31, 2014
Monthly Payment
August 2011 Through December 31, 2011
Mar. 31, 2014
Monthly Payment
May 31, 2012 Through December 31, 2012
Mar. 31, 2014
Monthly Payment
Average
Commitments and Contingencies Disclosure [Line Items] ' ' ' ' ' ' ' ' ' ' ' ' '
Office area rented 990 ' ' ' ' ' ' ' ' ' ' ' '
Minimum monthly rentals ' ' ' ' ' ' ' $ 3,833 ' ' ' ' '
Tenants share of utility/cam/property tax charges ' ' ' ' ' ' ' ' ' ' ' ' 291
Lease and rent expenses 17,722 27,740 ' ' ' ' ' ' 2,775 2,837 2,837 2,943 '
Operating lease term ' ' '5 years ' ' ' ' ' ' ' ' ' '
Prepaid consulting fees 18,333 ' ' 16,667 ' 100,000 ' ' ' ' ' ' '
Number of members ' ' ' ' 15,000 ' ' ' ' ' ' ' '
Shares granted 300,000 300,000 ' ' ' ' ' ' ' ' ' ' '
Payments for Software, Total ' ' ' ' ' ' $ 100,000 ' ' ' ' ' '
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Related Party Transactions - Additional Information (Detail) (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Related Party Transaction [Line Items] ' '
Legal fees $ 9,927 $ 12,927
Share-based compensation arrangement by share-based payment award, options, grants in period, gross 300,000 300,000
Payments of Distributions to Affiliates 10,914 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value 2,970 2,970
Website Development Related Services 69,316 63,442
Kwick ' '
Related Party Transaction [Line Items] ' '
Payments of Distributions to Affiliates 10,914 '
Cambridge Service Inc ' '
Related Party Transaction [Line Items] ' '
Notes payable, related parties 2,585,060 '
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage 9.99% '
Cambridge Service Inc | Advanced Additional ' '
Related Party Transaction [Line Items] ' '
Proceeds from related party debt 225,000 '
Kreuzfeld Ltd ' '
Related Party Transaction [Line Items] ' '
Notes payable, related parties 3,564,959 '
Discovery Advisory Company ' '
Related Party Transaction [Line Items] ' '
Notes payable, related parties 3,221,722 '
VGZ ' '
Related Party Transaction [Line Items] ' '
Notes payable, related parties $ 771,958 '
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Reconciliation of Financial Instruments that are Recognized at Fair Value in Consolidated Financial Statements (Detail) (USD $)
3 Months Ended
Mar. 31, 2014
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] '
Conversion Liability at January 1, 2014 $ 12,068,233
Value of beneficial conversion features of new debentures 483,452
Change in value of beneficial conversion features during period (45,786)
Reductions in fair value due to principal conversions 0
Conversion Liability at March 31, 2014 $ 12,505,899
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Subsequent Events - Additional Information (Detail) (Subsequent event, USD $)
0 Months Ended
May 14, 2014
Subsequent event '
Issuance Of Promissory notes $ 80,000
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