10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2014

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission File Number 000-55242

Cimarron Software, Inc.

(Exact name of registrant as specified in its charter)

Utah	87-0543922
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

10 W. Broadway, Ste. 700

Salt Lake City, UT 84101

(Address of principal executive offices, including zip code)

(801) 532-3080

(Registrant’s telephone number, including area code)

30 E. Broadway, Ste. 204

Salt Lake City, UT 84111

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. 

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of August 13, 2014, the issuer had 1,450,322 outstanding shares of common stock, no par value.

CIMARRON SOFTWARE INC.

FORM 10-Q

For the Quarterly Period Ended June 30, 2014

INDEX

		Page
PART I – FINANCIAL INFORMATION
Item 1	Financial Statements (unaudited)	3
	Condensed Balance Sheets		3
	Condensed Statements of Operations		4
	Condensed Statements of Cash Flows		5
	Notes to Condensed Financial Statements		6
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations		8
Item 3	Quantitative and Qualitative Disclosures About Market Risk		11
Item 4	Controls and Procedures		11
PART II – OTHER INFORMATION
Item 1	Legal Proceedings		12
Item 6	Exhibits		13
Signatures			14

2

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CIMARRON SOFTWARE, INC.

CONDENSED BALANCE SHEETS

JUNE 30, 2014 AND DECEMBER 31, 2013

(UNAUDITED)

	6/30/2014			12/31/2013
ASSETS
Current Assets
Cash and Cash Equivalents	$	122,897		$	58,822
Accounts Receivable		15,680			14,800
Accounts Receivable- Related Party		137,165			314,403
Note Receivable - Related Party Short Term		89,155			44,500
Prepaid Expenses		2,131			318
Total Current Assets		367,028			432,843
Note Receivable - Related Party Long Term		-			80,220
Property and Equipment, Net		14,203			19,198
Total Assets	$	381,231		$	532,261
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts Payable	$	12,634		$	3,995
Accrued Expenses		67,925			51,420
Notes Payable - Related Party		567,472			567,472
Deferred Revenue		11,886			33,041
Lease Payable-Short Term		6,908			7,767
Total Current Liabilities		666,825			663,695
Non Current Liabilities
Lease Payable-Long Term		3,188			6,458
Total Liabilities		670,013			670,153
Stockholders' Deficit
Preferred Stock, no par value,
500,000 shares Series A and 200,000 shares Series B authorized.
200,119 shares Series A issued and outstanding
as of June 30, 2014 and
and December 31, 2013, respectively		200,119			200,119
Common Stock, no par value,
10,000,000 shares authorized.
1,450,322 shares issued and outstanding as of
June 30, 2014 and
and December 31, 2013, respectively		86,033			86,033
Paid in Capital		13,474,934			13,457,948
Accumulated Deficit		(14,049,868	)		(13,881,992	)
Total Stockholders' Deficit		(288,782	)		(137,892	)
Total Liabilities and Stockholders' Deficit	$	381,231		$	532,261

See accompanying notes to condensed financial statements

3

CIMARRON SOFTWARE, INC.

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2014			2013			2014			2013
Service Revenue	$	36,174		$	62,976		$	76,395		$	221,035
Service Revenue - Related Party		273,467			155,835			476,078			202,001
Total Service Revenue		309,641			218,811			552,473			423,036
Cost of Services		24,044			153,153			185,564			338,606
Cost of Services - Related Party		130,311			69,171			210,155			88,017
Total Cost of Services		154,355			222,324			395,719			426,623
Gross Profit (Loss)		155,286			(3,513	)		156,754			(3,587	)
General and Administrative Costs		163,669			21,171			212,302			51,257
Professional Fees-Related Party		30,210			15,753			60,527			31,639
Professional Fees		11,344			3,031			37,356			32,828
Loss from Operations		(49,937	)		(43,468	)		(153,431	)		(119,311	)
Interest Expense		(8,853	)		(8,962	)		(17,759	)		(18,044	)
Interest Income		1,590			3,827			3,435			9,676
Other Income		-			-			-			-
Loss from Continuing Operations
Before Income Taxes		(57,200	)		(48,603	)		(167,755	)		(127,679	)
Income Tax		121			200			121			200
Net Loss	$	(57,321	)	$	(48,803	)	$	(167,876	)	$	(127,879	)
Net Loss per Common Share - Basic and Diluted	$	(0.04	)	$	(0.03	)	$	(0.12	)	$	(0.09	)
Weighted Average Shares Outstanding - Basic and Diluted		1,450,322			1,450,322			1,450,322			1,450,322

See accompanying notes to condensed financial statements

4

CIMARRON SOFTWARE, INC.

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2014 AND 2013

(UNDAUDITED)

	For the Six Months Ended June 30,
	2014			2013
Cash Flows from Operating Activities:
Net Loss	$	(167,876	)	$	(127,879	)
Adjustments to Reconcile Net Loss to Net Cash From Operating Activites:
Depreciation Expense		4,996			4,087
Contributed Services		-			60,200
Stock Compensation		-			150
Imputed Interest on Related Party Notes Payable		16,985			17,088
Changes in:
Accounts Receivable		(880	)		(94,130	)
Accounts Receivable - Related Party		177,238			-
Prepaid Expense		(1,813	)		(1,200	)
Accounts Payable		8,639			(13,362	)
Accrued Expenses		16,505			11,961
Deferred Revenue		(21,155	)		8,217
Net Cash From Operating Actvities		32,639			(134,868	)
Cash Flows from Investing Activities:
Purchase of Equipment		-			(3,500	)
Note Receivable - Related Party		35,565			80,324
Net Cash From Investing Activities		35,565			76,824
Cash Flows from Financing Activities:
Repayment of Lease Payable		(4,129	)		(3,385	)
Issuance of Notes Payable - Related Parties		-			3,500
Repayment of Notes Payable - Related Party		-			(4,400	)
Net Cash From Financing Activities		(4,129	)		(4,285	)
Net Increase (Decrease) in Cash and Cash Equivalents		64,075			(62,329	)
Cash and Cash Equivalents, Beginning of Period		58,822			110,938
Cash and Cash Equivalents, End of Period	$	122,897		$	48,609
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest	$	414		$	957
Income Taxes	$	-		$	-
Non-cash Investing and Financing activities:
Capital Contributions Made in Lieu of Payment for Services Rendered by Related Party	$	-		$	26,200
Capital Contributions Made in Lieu of Payment for Services Rendered by an Officer of the Company	$	-		$	34,000

See accompanying notes to condensed financial statements

5

CIMARRON SOFTWARE, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note 1 – Organization and Summary of Significant Accounting Policies

The Company and Nature of Business

Cimarron Software, Inc., (the Company) was incorporated under the laws of the State of Utah on February 9, 1995, and is primarily a developer and distributor of customized computer software for use in medical research.

Basis of Presentation

The condensed interim financial information of the Company as of June 30, 2014 and for the three and six month periods ended June 30, 2014 and 2013 is unaudited, and the balance sheet as of December 31, 2013 is derived from audited financial statements. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial statements. Accordingly, they omit or condense footnotes and certain other information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles. In the opinion of management, all adjustments that are necessary for a fair presentation of the financial information for the interim periods reported have been made. All such adjustments are of a normal recurring nature. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results that can be expected for the entire year ending December 31, 2014. The unaudited financial statements should be read in conjunction with the Company’s annual financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In particular, the Company’s significant accounting policies were presented as Note 2 to the consolidated financial statements in that Annual Report.

Note 2 – Related Party Transactions

Notes Payable – Related Party consists of balances due to original founders David Fuhrman and Robert Sargent, for additional services performed on behalf of the Company. As of June 30, 2014 and December 31, 2013, the Company has related party notes payable totaling $567,472 and $567,472, respectively. In January 2012, the Company entered into a note payable with a related party in the amount of $10,000.

Interest expenses on the related party notes payable accrues at a rate of six percent per annum and was $17,759 for the six month period ended June 30, 2014 and $18,044 for the six month period ended June 30, 2013. The interest on the related party notes was recorded as an increase to equity, since the interest amounts are not expected to be paid out, but are being contributed to the Company by primary shareholders.

A customer of the Company, Data in Motion LLC, is also a related party. This entity is majority owned by the majority shareholder and Chairman of the Company and a relative of the Chairman, though no financial support is provided by the Company to this entity. The Company recorded revenues from this related party of $476,078 (approximately 86% of total revenue) for the six months ended June 30, 2014, and $202,001 (approximately 48% of total revenue) for the six months ended June 30, 2013. In addition, the Company had related party accounts receivable for consulting services provided to this entity amounting to $137,165 and $314,403 as of June 30, 2014 and December 31, 2013, respectively.

The Company also has a related party note receivable for consulting services provided to this entity valued at $89,155 and $124,720 as of June 30, 2014 and December 31, 2013, respectively. This note bears interest at 6% per annum. The term of note shall be six years with a maturity date of January 1, 2019. The Company recorded $3,435 and $9,676 of interest income related to this note for the six months ending June 30, 2014 and 2013, respectively.

In 2010 the Company entered into an agreement with an entity which is owned by a relative of the president of the Company to provide financial management consulting services. The agreement states that for each hour of services billed to the Company, the associated fee shall be contributed to the Company. For the six months ending June 30, 2014 and 2013, the Company recognized contributions of $0 and $26,200, respectively, which were recorded as contributed services and recorded to paid in capital. Additionally, the Company recognized services contributed by the president of the Company in the amount of $0 and $34,000 for a total of $0 and $60,200 of contributed services for the three and six months ending June 30, 2014 and 2013, respectively.

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Note 3 – Capital Stock

The Company is authorized to issue 500,000 shares of Series A preferred stock with no par value and 200,000 shares of Series B preferred stock with no par value. As of June 30, 2014 and December 31, 2013 there were 200,119 shares of Series A preferred stock issued and outstanding and no shares of Series B preferred stock issued or outstanding.

The Company has neither declared nor paid dividends during the periods ended June 30, 2014 and December 31, 2013.

Note 4 – Fair Value of Financial Instruments

The fair value of the Company’s cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and note payables approximate the carrying amount due to the short duration of these accounts.

Note 5 – Loss per Share

Basic loss per common share is based on the net loss divided by weighted average number of common shares outstanding. Diluted income or loss per share is computed using weighted average number of common shares plus dilutive common share equivalents outstanding during the period using the treasury stock method. As the Company has a net loss for the period ended June 30, 2014, any potentially dilutive shares are anti-dilutive and are thus not included into the earnings per share calculation. The Company had 466,766 common stock equivalents outstanding as of June 30, 2014 and 2013. These shares were excluded from the computation of diluted earnings per share as they are anti-dilutive.

Note 6 – Going Concern

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. As of June 30, 2014 and December 31, 2013, the Company had an accumulated deficit of $14,049,868 and $13,881,992, respectively. In addition, the Company had a net loss for the six months ended June 30, 2014 of $167,876. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

In view of the matters described in the preceding paragraph, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to meet its financing requirements on a continuing basis, to maintain or replace present financing, to acquire additional capital from investors, and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

The Company intends to continue to serve its customers as a developer and distributor of customized computer software used in computer research. The Company intends to focus on raising additional capital and finding additional avenues to distribute its software. To the extent that any such financing involves the sale of our equity, our current stockholders could be substantially diluted. There is no assurance that we will be successful in achieving any or all of these objectives.

Note 7 – Subsequent Events

There have been no subsequent events that have a material impact on the Company.

7

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

For the Three and Six-month Periods Ended June 30, 2014 and 2013

The following tables set forth key components of our results of operations for the periods indicated, both in dollars and as a percentage of sales revenue for the periods indicated in dollars.

	Three Months												Six Months
	2014			%			2013			%			2014			%			2013			%
Revenue	$	309,641			100		$	218,811			100		$	552,473			100		$	423,036			100
Cost of Services		154,355			50			222,324			102			395,719			72			426,623			101
Gross Profit (Loss)		155,286			50			(3,513	)		(2	)		156,754			28			(3,587	)		(0.8	)
Operating Expenses		205,223			66.3			39,955			18.3			310,185			56.1			115,724			27.4
Operating Loss		(49,937	)		(16.1	)		(43,468	)		(19.9	)		(153,431	)		(27.8	)		119,311			(28.2	)
Net Loss	$	(57,321	)		(18.5	)	$	(48,803	)		(22.3	)	$	(167,876	)		(30.4	)	$	(127,879	)		(30.2	)

Revenues consist of non-technology integration consulting services, technology integration consulting services, product maintenance, and travel and expenses billed to the customer. Revenues increased for the three and six months ended June 30, 2014, compared to the same period in the prior year due to the Company increasing its provision of services with its related party, Data in Motion LLC, and a decrease in non-related party revenue resulting from the Company losing a customer in early 2013. For the three and six months ended June 30, 2014, as compared to the same periods in 2013, Cost of Services decreased and gross profit increased as a result of a decrease in payroll costs attributable to sales, and Operating Expenses increased as a result of increasing payroll costs and general expenses due to the Company increasing its marketing efforts.

The following tables set forth key components of our balance sheets as of June 30, 2014 and December 31, 2013, both in dollars.

	2014			2013
Current Assets	$	367,028		$	432,843
Note Receivable-Related Party Long-Term		-			80,220
Property and Equipment		14,203			19,198
Total Assets		381,231			532,261
Current Liabilities		666,825			663,695
Non-Current Liabilities		3,188			6,458
Total Liabilities		670,013			670,153
Stockholder’s Deficit		(288,782	)		(137,892	)
Total Liabilities and Deficit	$	381,231		$	532,261

As of June 30, 2014, current assets decreased $65,815 from December 31, 2013, due to decreases in accounts receivable from the related party, Data in Motion LLC, of $177,238, which was partially offset by an increase in non-related party accounts receivable of $880, an increase in cash of $64,075, an increase in a short-term notes receivable from related parties of $44,655, and an increase in prepaid expenses of $1,813. Non-current assets decreased due to a decrease in the long-term portion of notes receivable from related parties by $80,220, as well as depreciation expense recorded for the six months ended June 30, 2014. As of June 30, 2014, current liabilities increased by $3,130 from December 31, 2013, due to an increase in accounts payable and accrued expenses partially offset by a decrease in and deferred revenue and lease payable.

At June 30, 2014, the Company had cash funds of $122,897.

8

The Company’s practice has been to record Haxton Management, LLC consulting fees as well as some payroll expense for the Company’s president as contributed services. For the six months ended June 30, 2014 and 2013, the Company recognized $0 and $60,200 in capital contributions made in lieu of payment for services, respectively. If these services were paid in cash, rather than contributed, the Company’s cash needs would increase.

The Company’s management believes that as the Company increases its cash level through additional financing and higher revenues that these future services noted above will be paid in cash, rather than contributed.

Liquidity and Capital Resources

The Company has been and is currently operating with a relatively low level of cash and liquidity and that could lead to difficulty if not favorably resolved. The Company desires to improve this situation through additional equity and debt investments in the Company and cash generated from higher revenues.

The Company anticipates that its cash needs for the next twelve months for working capital and capital expenditures will be approximately $120,000. As of June 30, 2014, the Company has $122,897 in cash and believes its current cash and cash flow from operations will only be sufficient to meet anticipated cash needs for the next twelve months for working capital and capital expenditures. The Company will require additional cash resources due to possible changed business conditions or other future developments. The Company may seek to sell additional equity or debt securities. The sale of convertible debt securities or additional equity securities could result in additional dilution to our shareholders. The incurrence of indebtedness would result in increased debt service obligations and could result in operating and financing covenants that would restrict our operations and liquidity.

The Company’s ability to obtain additional capital on acceptable terms is subject to a variety of uncertainties, including: investors’ perception of, and demand for, securities of web hosting and related service companies; conditions of the U.S. and other capital markets in which we may seek to raise funds; future results of operations, financial condition and cash flow. Therefore, the Company’s management cannot assure that financing will be available in amounts or on terms acceptable to the Company, or if at all. Any failure by the Company’s management to raise additional funds on terms favorable to the Company could have a material adverse effect on the Company’s liquidity and financial condition.

In the event we are not successful in reaching our sustained revenue targets, we anticipate that depending on market conditions and our plan of operations, we may incur operating losses. We base this expectation, in part, on the fact that we may not be able to generate enough gross profit to cover our operating expenses. Consequently, there remains the possibility that the Company may not continue to operate as a going concern in the long term. We are subject to many factors which could detrimentally affect us. Many of these risk factors are outside management’s control, including demand for our products and services, our ability to hire and retain talented and skilled employees and service providers, as well as other factors.

Subsequent Events

There have been no subsequent events that have a material impact on the Company.

Emerging Growth Company

We are an “emerging growth company” under the federal securities laws and are subject to reduced public company reporting requirements. In addition, Section 107 of the JOBS Act also provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We are choosing to take advantage of the extended transition period for complying with new or revised accounting standards. As a result, our financial statements may not be comparable to those of companies that comply with public company effective dates.

9

Critical Accounting Policies

Our financial statements are based on the application of accounting principles generally accepted in the United States (“GAAP”). GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenue, and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.

Our significant accounting policies are summarized in Note 2 of our financial statements included in The Company’s Annual Report on Form 10-K for the year ended December 31, 2013. While all these significant accounting policies impact our financial condition and results of operations, we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause an effect on our results of operations, financial position or liquidity for the periods presented in this report.

Revenue Recognition

Revenues from contracts for non-technology integration consulting services with fees based on time and materials are recognized as the services are performed and amounts are earned in accordance with the Securities and Exchange Commission (the “SEC”) Staff Accounting Bulletin (“SAB”) No. 101, “Revenue Recognition in Financial Statements” (“SAB 101”), as amended by SAB No. 104, “Revenue Recognition” (“SAB 104”). The Company considers amounts to be earned once evidence of an arrangement has been obtained, services are delivered, fees are fixed or determinable, and collectability is reasonably assured. In such contracts, the Company’s efforts, measured by time incurred, typically represent the contractual milestones or output measure, which is the contractual earnings pattern. For non-technology integration consulting contracts with fixed fees, the Company recognizes revenues as amounts become billable in accordance with contract terms, are consistent with the services delivered, and are earned.

Revenues from contracts for technology integration consulting services where the Company designs/redesigns, builds and implements new or enhanced systems applications and related processes for its clients are recognized on the percentage-of-completion method, which involves calculating the percentage of services provided during the reporting period compared to the total estimated services to be provided over the duration of the contract. This method is followed where reasonably dependable estimates of revenues and costs can be made. Estimates of total contract revenues and costs are continuously monitored during the term of the contract, and recorded revenues and costs are subject to revision as the contract progresses.

Such revisions may result in increases or decreases to revenues and income and are reflected in the financial statements in the periods in which they are first identified. If the Company’s estimates indicate that a contract loss will occur, a loss provision is recorded in the period in which the loss first becomes probable and reasonably estimable. Contract losses are determined to be the amount by which the estimated direct and indirect costs of the contract exceed the estimated total revenues that will be generated by the contract and are included in cost of services and classified as accrued expenses. There were no contracts in which a loss is probable or reasonably estimable at June 30, 2014 and December 31, 2013.

Revenues for contracts with multiple elements are allocated based on the lesser of the element’s relative fair value or the amount that is not contingent on future delivery of another element. If the amount of non-contingent revenues allocated to a delivered element accounted for under the percentage-of-completion method of accounting is less than the costs to deliver such services, then such costs are deferred and recognized in future periods when the revenues become non-contingent. Fair value is determined based on the prices charged when each element is sold separately. Elements qualify for separation when the services have value on a stand-alone basis, fair value of the separate elements exists and, in arrangements that include a general right of refund relative to the delivered element, performance of the undelivered element is considered probable and substantially in the Company’s control. While determining fair value and identifying separate elements require judgment, generally fair value and the separate elements are readily identifiable as the Company also sells those elements unaccompanied by other elements.

10

Revenues include billings for travel and other out-of-pocket expenses prior to reimbursements to the employee by the Company.

The Company reports revenue net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions.

Off Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As the Company is a “smaller reporting company,” this item is not applicable.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit to the Securities and Exchange Commission under the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified by the Securities and Exchange Commission’s rules and forms, and that information is accumulated and communicated to our management, including our principal executive and principal financial officer (whom we refer to in this periodic report as our Certifying Officer), as appropriate to allow timely decisions regarding required disclosure. The Company’s Chief Executive Officer and Chief Financial Officer has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the quarter ended June 30, 2014 covered by this Form 10-Q. Based upon such evaluation, the Chief Executive Officer and Chief Financial Officer has concluded that, as of the end of such period, the Company’s disclosure controls and procedures were not effective as required under Rules 13a-15(e) and 15d-15(e) under the Exchange Act.

Management’s Report on Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. As of June 30, 2014, there were no pending or threatened lawsuits.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

None.

ITEM 5. OTHER INFORMATION

On June 23, 2014, we moved our headquarters from 30 E. Broadway, Ste. 204, Salt Lake City, Utah, 84111, to 10 W. Broadway, Ste. 700, Salt Lake City, Utah, 84101.

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ITEM 6. EXHIBITS

Number	Description
3.1	Articles of Incorporation (incorporated by reference to our Form S-1 Registration Statement filed on May 14, 2012)
3.2	Bylaws (incorporated by reference to our Form S-1 Registration Statement filed on May 14, 2012)
3.3	Articles of Restatement (incorporated by reference to our Form S-1 Registration Statement filed on May 14, 2012)
3.4	Articles of Amendment (incorporated by reference to our Form S-1 Registration Statement filed on May 14, 2012)
31.1	Certification of Principal Executive Officer required by Rule 13a-14(1) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Principal Financial Officer required by Rule 13a-14(1) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Section 1350 of 18 U.S.C. 63
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Section 1350 of 18 U.S.C. 63
99.1	Non-Negotiable Promissory Note (incorporated by reference to our Form S-1/A Registration Statement filed on September 13, 2012)
99.1	Services Agreement (incorporated by reference to our Form S-1/A Registration Statement filed on October 9, 2012)
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

13

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Cimarron Software, Inc.
Date: August 14, 2014	By:	/s/ David Fuhrman
		David Fuhrman
		Chief Executive Officer
		Chief Financial Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date: August 14, 2014	By:	/s/ David Fuhrman
		David Fuhrman, Chief Executive Officer, Chief Financial Officer, and Director
Date: August 14, 2014	By:	/s/ Rob Sargent
		Rob Sargent, Director

14

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14

I, David Fuhrman, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Cimarron Software, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 14, 2014	By:	/s/ David Fuhrman
		David Fuhrman Chief Executive Officer (Principal Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO RULE 13a-14

I, David Fuhrman, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Cimarron Software, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 14, 2014	By:	/s/ David Fuhrman
		David Fuhrman Chief Financial Officer (Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cimarron Software, Inc. (the “Company”), on Form 10-Q for the period ended June 30, 2014, as filed with the Securities and Exchange Commission (the “Report”), I, David Fuhrman, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: August 14, 2014	By:	/s/ David Fuhrman
		David Fuhrman Chief Executive Officer (Principal Executive Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cimarron Software, Inc. (the “Company”), on Form 10-Q for the period ended June 30, 2014, as filed with the Securities and Exchange Commission (the “Report”), I, David Fuhrman, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: August 14, 2014	By:	/s/ David Fuhrman
		David Fuhrman Chief Financial Officer (Principal Financial Officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements

Note 4. Fair Value of Financial Instruments

The fair value of the Company’s cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and note payables approximate the carrying amount due to the short duration of these accounts.

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Capital Stock

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements

Note 3. Capital Stock

The Company is authorized to issue 500,000 shares of Series A preferred stock with no par value and 200,000 shares of Series B preferred stock with no par value. As of June 30, 2014 and December 31, 2013 there were 200,119 shares of Series A preferred stock issued and outstanding and no shares of Series B preferred stock issued or outstanding.

The Company has neither declared nor paid dividends during the periods ended June 30, 2014 and December 31, 2013.

XML

CONDENSED BALANCE SHEETS (UNAUDITED) (USD $)	Jun. 30, 2014	Dec. 31, 2013
ASSETS
Cash and Cash Equivalents	$ 122,897	$ 58,822
Accounts Receivable	15,680	14,800
Accounts Receivable - Related Party	137,165	314,403
Note Receivable - Related Party Short Term	89,155	44,500
Prepaid Expenses	2,131	318
Total Current Assets	367,028	432,843
Note Receivable - Related Party Long Term		80,220
Property and Equipment, Net	14,203	19,198
Total Assets	381,231	532,261
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts Payable	12,634	3,995
Accrued Expenses	67,925	51,420
Notes Payable - Related Party	567,472	567,472
Deferred Revenue	11,886	33,041
Lease Payable-Short Term	6,908	7,767
Total Current Liabilities	666,825	663,695
Lease Payable-Long Term	3,188	6,458
Total Liabilities	670,013	670,153
Stockholders' Deficit
Preferred Stock, no par value, 500,000 shares Series A and 200,000 shares Series B authorized. 200,119 shares Series A issued and outstanding as of June 30, 2014 and and December 31, 2013, respectively	200,119	200,119
Common Stock, no par value, 10,000,000 shares authorized. 1,450,322 shares issued and outstanding as of June 30, 2014 and and December 31, 2013, respectively	86,033	86,033
Paid in Capital	13,474,934	13,457,948
Accumulated Deficit	(14,049,868)	(13,881,992)
Total Stockholders' Deficit	(288,782)	(137,892)
Total Liabilities and Stockholders' Deficit	$ 381,231	$ 532,261

XML

Organization and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements

Note 1. Organization and Summary of Significant Accounting Policies

The Company and Nature of Business

Cimarron Software, Inc., (the Company) was incorporated under the laws of the State of Utah on February 9, 1995, and is primarily a developer and distributor of customized computer software for use in medical research.

Basis of Presentation

The condensed interim financial information of the Company as of June 30, 2014 and for the three and six month periods ended June 30, 2014 and 2013 is unaudited, and the balance sheet as of December 31, 2013 is derived from audited financial statements. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial statements. Accordingly, they omit or condense footnotes and certain other information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles. In the opinion of management, all adjustments that are necessary for a fair presentation of the financial information for the interim periods reported have been made. All such adjustments are of a normal recurring nature. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results that can be expected for the entire year ending December 31, 2014. The unaudited financial statements should be read in conjunction with the Company’s annual financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In particular, the Company’s significant accounting policies were presented as Note 2 to the consolidated financial statements in that Annual Report.

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Related Party Transactions

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements

Note 2. Related Party Transactions

Notes Payable – Related Party consists of balances due to original founders David Fuhrman and Robert Sargent, for additional services performed on behalf of the Company. As of June 30, 2014 and December 31, 2013, the Company has related party notes payable totaling $567,472 and $567,472, respectively. In January 2012, the Company entered into a note payable with a related party in the amount of $10,000.

Interest expenses on the related party notes payable accrues at a rate of six percent per annum and was $17,759 for the six month period ended June 30, 2014 and $18,044 for the six month period ended June 30, 2013. The interest on the related party notes was recorded as an increase to equity, since the interest amounts are not expected to be paid out, but are being contributed to the Company by primary shareholders.

A customer of the Company, Data in Motion LLC, is also a related party. This entity is majority owned by the majority shareholder and Chairman of the Company and a relative of the Chairman, though no financial support is provided by the Company to this entity. The Company recorded revenues from this related party of $476,078 (approximately 86% of total revenue) for the six months ended June 30, 2014, and $202,001 (approximately 48% of total revenue) for the six months ended June 30, 2013. In addition, the Company had related party accounts receivable for consulting services provided to this entity amounting to $137,165 and $314,403 as of June 30, 2014 and December 31, 2013, respectively.

The Company also has a related party note receivable for consulting services provided to this entity valued at $89,155 and $124,720 as of June 30, 2014 and December 31, 2013, respectively. This note bears interest at 6% per annum. The term of note shall be six years with a maturity date of January 1, 2019. The Company recorded $3,435 and $9,676 of interest income related to this note for the six months ending June 30, 2014 and 2013, respectively.

In 2010 the Company entered into an agreement with an entity which is owned by a relative of the president of the Company to provide financial management consulting services. The agreement states that for each hour of services billed to the Company, the associated fee shall be contributed to the Company. For the six months ending June 30, 2014 and 2013, the Company recognized contributions of $0 and $26,200, respectively, which were recorded as contributed services and recorded to paid in capital. Additionally, the Company recognized services contributed by the president of the Company in the amount of $0 and $34,000 for a total of $0 and $60,200 of contributed services for the three and six months ending June 30, 2014 and 2013, respectively.

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CONDENSED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Stockholders' Deficit
Preferred Stock, no par value	$ 0.00	$ 0.00
Preferred Stock Series A, shares authorized	500,000	500,000
Preferred Stock Series A, shares issued	200,119	200,119
Preferred Stock Series A, shares outstanding	200,119	200,119
Preferred Stock Series B, shares authorized	200,000	200,000
Common Stock, no par value	$ 0.00	$ 0.00
Common Stock, shares authorized	10,000,000	10,000,000
Common Stock, shares issued	1,450,322	1,450,322
Common Stock, shares outstanding	1,450,322	1,450,322

XML

Going Concern (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Mar. 31, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Going Concern Details Narrative
Accumulated Deficit	$ 14,049,868		$ 14,049,868		$ 13,881,992
Net loss	$ 57,321	$ 48,803	$ 167,876	$ 127,879

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 13, 2014
Document And Entity Information
Entity Registrant Name	CIMARRON SOFTWARE INC
Entity Central Index Key	0001029125
Document Type	10-Q
Document Period End Date	Jun. 30, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		1,450,322
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2014

XML

CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Mar. 31, 2013	Jun. 30, 2014	Jun. 30, 2013
Condensed Statements Of Operations
Service Revenue	$ 36,174	$ 62,976	$ 76,395	$ 221,035
Service Revenue - Related Party	273,467	155,835	476,078	202,001
Total Service Revenue	309,641	218,811	552,473	423,036
Cost of Services	24,044	153,153	185,564	338,606
Cost of Services - Related Party	130,311	69,171	210,155	88,017
Total Cost of Services	154,355	222,324	395,719	426,623
Gross Profit (Loss)	155,286	(3,513)	156,754	(3,587)
General and Administrative Costs	163,669	21,171	212,302	51,257
Professional Fees-Related Party	30,210	15,753	60,527	31,639
Professional Fees	11,344	3,031	37,356	32,828
Loss from Operations	(49,937)	(43,468)	(153,431)	(119,311)
Interest Expense	(8,853)	(8,962)	(17,759)	(18,044)
Interest Income	1,590	3,827	3,435	9,676
Other Income
Loss from Continuing Operations Before Income Taxes	(57,200)	(48,603)	(167,755)	(127,679)
Income Tax	121	200	121	200
Net Loss	$ (57,321)	$ (48,803)	$ (167,876)	$ (127,879)
Net Loss per Common Share - Basic and Diluted	$ (0.04)	$ (0.03)	$ (0.12)	$ (0.09)
Weighted Average Shares Outstanding - Basic and Diluted	1,450,322	1,450,322	1,450,322	1,450,322

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Subsequent Events

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements

Note 7. Subsequent Events

There have been no subsequent events that have a material impact on the Company.

XML

Going Concern

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements

Note 6. Going Concern

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. As of June 30, 2014 and December 31, 2013, the Company had an accumulated deficit of $14,049,868 and $13,881,992, respectively. In addition, the Company had a net loss for the six months ended June 30, 2014 of $167,876. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

In view of the matters described in the preceding paragraph, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to meet its financing requirements on a continuing basis, to maintain or replace present financing, to acquire additional capital from investors, and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

The Company intends to continue to serve its customers as a developer and distributor of customized computer software used in computer research. The Company intends to focus on raising additional capital and finding additional avenues to distribute its software. To the extent that any such financing involves the sale of our equity, our current stockholders could be substantially diluted. There is no assurance that we will be successful in achieving any or all of these objectives.

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Capital Stock (Details Narrative)	Jun. 30, 2014	Dec. 31, 2013
Preferred stock issued	200,119	200,119
Preferred stock outstanding	200,119	200,119
Series A preferred stock [Member]
Preferred stock issued	200,119	200,119
Preferred stock outstanding	200,119	200,119
Series B preferred stock [Member]
Preferred stock issued	0	0
Preferred stock outstanding	0	0

XML

Organization and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements

The Company and Nature of Business

Cimarron Software, Inc., (the Company) was incorporated under the laws of the State of Utah on February 9, 1995, and is primarily a developer and distributor of customized computer software for use in medical research.

Basis of Presentation

The condensed interim financial information of the Company as of June 30, 2014 and for the three and six month periods ended June 30, 2014 and 2013 is unaudited, and the balance sheet as of December 31, 2013 is derived from audited financial statements. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial statements. Accordingly, they omit or condense footnotes and certain other information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles. In the opinion of management, all adjustments that are necessary for a fair presentation of the financial information for the interim periods reported have been made. All such adjustments are of a normal recurring nature. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results that can be expected for the entire year ending December 31, 2014. The unaudited financial statements should be read in conjunction with the Company’s annual financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In particular, the Company’s significant accounting policies were presented as Note 2 to the consolidated financial statements in that Annual Report.

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Related Party Transactions (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Notes Payable - Related Party	$ 567,472		$ 567,472
Interest expenses on related party notes payable	17,759	18,044
Interest rate on related party notes payable	6.00%
Accounts receivable for consulting services	137,165		314,403
Interest rate on related party note receivable	6.00%
Related party note receivable for consulting services			80,220
Interest income related to note payable	3,435	9,676
Recognized contributions for financial management consulting services	0	26,200
Additional recognized contributions for financial management consulting services	0	34,000
Total recognized contributions for financial management consulting services	0	60,200
Data in Motion LLC [Member]
Interest rate on related party notes payable	6.00%
Revenues from related party	476,078	202,001
Consulting Services [Member]
Related party note receivable for consulting services	$ 89,155		$ 124,720

XML

Loss per Share (Details Narrative)	Jun. 30, 2014	Dec. 31, 2013
Loss Per Share Details Narrative
Common stock equivalents outstanding	466,766	466,766

XML

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash Flows from Operating Activities:
Net Loss	$ (167,876)	$ (127,879)
Adjustments to Reconcile Net Loss to Net Cash From Operating Activites:
Depreciation Expense	4,996	4,087
Contributed Services		60,200
Stock Compensation		150
Imputed Interest on Related Party Notes Payable	16,985	17,088
Changes in:
Accounts Receivable	(880)	(94,130)
Accounts Receivable - Related Party	177,238
Prepaid Expense	(1,813)	(1,200)
Accounts Payable	8,639	(13,362)
Accrued Expenses	16,505	11,961
Deferred Revenue	(21,155)	8,217
Net Cash From Operating Actvities	32,639	(134,868)
Cash Flows from Investing Activities:
Purchase of Equipment		(3,500)
Note Receivable - Related Party	35,565	80,324
Net Cash From Investing Activities	35,565	76,824
Cash Flows from Financing Activities:
Repayment of Lease Payable	(4,129)	(3,385)
Issuance of Notes Payable - Related Parties		3,500
Repayment of Notes Payable - Related Party		(4,400)
Net Cash From Financing Activities	(4,129)	(4,285)
Net Increase (Decrease) in Cash and Cash Equivalents	64,075	(62,329)
Cash and Cash Equivalents, Beginning of Period	58,822	110,938
Cash and Cash Equivalents, End of Period	122,897	48,609
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for: Interest	414	957
Cash paid during the period for: Income Taxes
Non-cash Investing and Financing activities:
Capital Contributions Made in Lieu of Payment for Services Rendered by Related Party		26,200
Capital Contributions Made in Lieu of Payment for Services Rendered by an Officer of the Company		$ 34,000

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Loss per Share

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements

Note 5. Loss per Share

Basic loss per common share is based on the net loss divided by weighted average number of common shares outstanding. Diluted income or loss per share is computed using weighted average number of common shares plus dilutive common share equivalents outstanding during the period using the treasury stock method. As the Company has a net loss for the period ended June 30, 2014, any potentially dilutive shares are anti-dilutive and are thus not included into the earnings per share calculation. The Company had 466,766 common stock equivalents outstanding as of June 30, 2014 and 2013. These shares were excluded from the computation of diluted earnings per share as they are anti-dilutive.