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Organization and Basis of Presentation
9 Months Ended
Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Basis of Presentation

On August 27, 2014, the Board of Directors of SpendSmart Networks, Inc. (the “Company”), approved a change to the Company’s year end from September 30th to December 31st, which took effect immediately. Accordingly, the Company's next Annual Report on Form 10-K will be for the year ending December 31, 2014. In accordance with certain rules promulgated under the Securities Exchange Act of 1934, as amended, the Company filed a Transition Report on Form 10-K with the Securities and Exchange Commission on November 14th, 2014.

 

SpendSmart Networks, Inc., is a Delaware corporation.  Through our subsidiary, SpendSmart Networks, Inc., a California corporation (“SpendSmart-CA”), we bring value added products, payment solutions, and mobile marketing solutions to consumers, merchants, businesses and government organizations.  The Company is a publicly traded company trading on the OTCB under the symbol “SSPC.”  We purchased substantially all of the assets of Intellectual Capital Management LLC d/b/a SMS Masterminds (“SMS”) on February 11, 2014.  The accompanying unaudited condensed consolidated financial statements include the accounts of our Company and SpendSmart-CA as well as the Intellectual Capital LLC subsidiary operations from February 12, 2014 through September 30, 2014. All material intercompany balances and transactions have been eliminated.  The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013.  The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”).  All normal recurring adjustments which are necessary for the fair presentation of the results for the interim periods are reflected herein.  Operating results for the three and nine month periods ended September 30, 2014 and 2013 are not necessarily indicative of results to be expected for a full year.

 

Effective as of June 20, 2014, after the approval by a majority of holders of the voting securities of the Company, the Company and The SpendSmart Payments Company, a Delaware corporation, entered into a Plan of Conversion (the “Plan of Conversion”) whereby the Company converted its state of domiciliation from Colorado to Delaware (the “Re-Domiciliation”). In conjunction with the execution of the Plan of Conversion, the Company filed a Certificate of Conversion in each of the States of Delaware  and Colorado. As a result of the Re-Domiciliation, the Company filed its Certificate of Incorporation in Delaware (the “Delaware Certificate of Incorporation”) and adopted By-Laws. Effective as of June 20, 2014, SpendSmart Networks, Inc. f/k/a The SpendSmart Payments Company filed an amendment to its newly adopted Delaware Certificate of Incorporation to change its name to “SpendSmart Networks, Inc.”