XBRL Proof

XBRL File

 
Document - Document and Entity Information
Document - Document and Entity Information (USD $) 6 Months Ended  
( custom:DocumentAndEntityInformationAbstract [Extension] )    
  Jun. 30, 2016 Jun. 29, 2017
     
     
     
Entity Registrant Name Capital Art, Inc.  
( dei:EntityRegistrantName )    
Entity Central Index Key 0001527844  
( dei:EntityCentralIndexKey )    
Document Type 10-Q  
( dei:DocumentType )    
Document Period End Date 2016-06-30  
( dei:DocumentPeriodEndDate )    
Amendment Flag false  
( dei:AmendmentFlag )    
Current Fiscal Year End Date --12-31  
( dei:CurrentFiscalYearEndDate )    
Is Entity a Well-known Seasoned Issuer? No  
( dei:EntityWellKnownSeasonedIssuer )    
Is Entity a Voluntary Filer? No  
( dei:EntityVoluntaryFilers )    
Is Entity's Reporting Status Current? No  
( dei:EntityCurrentReportingStatus )    
Entity Filer Category Smaller Reporting Company  
( dei:EntityFilerCategory )    
Entity Public Float    
( dei:EntityPublicFloat )    
Entity Common Stock, Shares Outstanding   325,570,524
( dei:EntityCommonStockSharesOutstanding )    
Document Fiscal Period Focus Q2  
( dei:DocumentFiscalPeriodFocus )    
Document Fiscal Year Focus 2016  
( dei:DocumentFiscalYearFocus )    
(End Document - Document and Entity Information)
 
Statement - Balance Sheets
Statement - Balance Sheets (USD $)        
( us-gaap:StatementOfFinancialPositionAbstract )        
  Jun. 30, 2016 Dec. 31, 2015 Jun. 30, 2015 Dec. 31, 2014
         
         
         
Assets        
( us-gaap:AssetsAbstract )        
    Current Assets        
    ( us-gaap:AssetsCurrentAbstract )        
        Cash 8,288 32,570 61,039 340,523
        ( us-gaap:Cash )        
        Prepaid expenses 91,432 41,061    
        ( us-gaap:PrepaidExpenseAndOtherAssetsCurrent )        
        Accounts receivable, net 4,061 112,460    
        ( us-gaap:AccountsReceivableNetCurrent )        
        Inventory 128,582 84,550    
        ( us-gaap:InventoryNet )        
        Total Current Assets 232,363 270,641    
        ( us-gaap:AssetsCurrent )        
        Property and equipment, net 2,961,307 3,058,983    
        ( us-gaap:PropertyPlantAndEquipmentNet )        
        Due from related party 91,000 91,000    
        ( us-gaap:DueFromRelatedPartiesNoncurrent )        
        Security deposit 6,356 13,581    
        ( us-gaap:SecurityDeposit )        
        Intangible Assets 391,500 413,250    
        ( us-gaap:IntangibleAssetsCurrent )        
        Total Assets 3,682,526 3,847,455    
        ( us-gaap:Assets )        
        Liabilities and Stockholders' Deficit        
        ( us-gaap:LiabilitiesAndStockholdersEquityAbstract )        
            Current Liabilities        
            ( us-gaap:LiabilitiesCurrentAbstract )        
                Accounts payable and accrued liabilities 716,860 705,685    
                ( us-gaap:AccountsPayableCurrent )        
                Payable to Globe Photo, Inc., short- term portion 70,000 120,000    
                ( us-gaap:OtherLoansPayableCurrent )        
                Due to related parties 49,084 46,084    
                ( us-gaap:DueToRelatedPartiesCurrent )        
                Note payable, net of debt discount 150,000    
                ( us-gaap:ShortTermBorrowings )        
                Note payable - related party 289,746    
                ( us-gaap:NotesPayableRelatedPartiesClassifiedCurrent )        
                Total Current Liabilities 835,944 1,311,512    
                ( us-gaap:LiabilitiesCurrent )        
                Non-current Liabilities:        
                ( us-gaap:LiabilitiesNoncurrentAbstract )        
                Note payable - related party - less short-term portion 397,264    
                ( us-gaap:NotesPayableRelatedPartiesNoncurrent )        
                Note payable, net of debt discount - less short-term portion 488,322 120,000    
                ( us-gaap:LongTermDebtNoncurrent )        
                Derivative liability 82,000 55,000    
                ( us-gaap:EmbeddedDerivativeFairValueOfEmbeddedDerivativeLiability )        
                Payable to Globe Photo, Inc. less short-term portion 10,000    
                ( us-gaap:OtherLoansPayableLongTerm )        
                Total Non-current Liabilities 967,586 185,000    
                ( us-gaap:LiabilitiesNoncurrent )        
                Total Liabilities 1,803,530 1,496,512    
                ( us-gaap:Liabilities )        
                Commitments and contingencies        
                ( us-gaap:CommitmentsAndContingencies )        
                Stockholders' Deficit        
                ( us-gaap:StockholdersEquityAbstract )        
                    Preferred stock, $0.0001 par value, 50,000,000 shares authorized; none issued and outstanding at June 30, 2016 and December 31, 2015    
                    ( us-gaap:PreferredStockValue )        
                    Common stock par value $0.0001: 450,000,000 shares authorized; 325,341,224 and 325,341,224 issued and outstanding as of June 30, 2016 and December 31, 2015, respectively 32,534 32,534    
                    ( us-gaap:CommonStockValue )        
                    Additional paid in capital 4,051,874 4,051,874    
                    ( us-gaap:AdditionalPaidInCapital )        
                    Accumulated deficit (2,205,412) (1,733,465)    
                    ( us-gaap:RetainedEarningsAccumulatedDeficit )        
                    Shareholders' Equity 1,878,996 2,350,943    
                    ( us-gaap:StockholdersEquity )        
                    Total Liabilities and Stockholders' Deficit 3,682,526 3,847,455    
                    ( us-gaap:LiabilitiesAndStockholdersEquity )        
(End Statement - Balance Sheets)
 
Statement - Balance Sheets (Parenthetical)
Statement - Balance Sheets (Parenthetical) (USD $)    
( us-gaap:StatementOfFinancialPositionAbstract )    
  Jun. 30, 2016 Dec. 31, 2015
     
     
     
Preferred stock, par value 0.0001 0.0001
( us-gaap:PreferredStockParOrStatedValuePerShare )    
Preferred stock, shares authorized 50,000,000 50,000,000
( us-gaap:PreferredStockSharesAuthorized )    
Preferred stock, shares issued 0 0
( us-gaap:PreferredStockSharesIssued )    
Preferred stock, shares outstanding 0 0
( us-gaap:PreferredStockSharesOutstanding )    
Common stock, par value 0.0001 0.0001
( us-gaap:CommonStockParOrStatedValuePerShare )    
Common stock, shares authorized 450,000,000 450,000,000
( us-gaap:CommonStockSharesAuthorized )    
Common stock, shares issued 325,341,224 325,341,224
( us-gaap:CommonStockSharesIssued )    
Common stock, shares outstanding 325,341,224 325,341,224
( us-gaap:CommonStockSharesOutstanding )    
(End Statement - Balance Sheets (Parenthetical))
 
Statement - Statements of Operations
Statement - Statements of Operations (USD $) 3 Months Ended 6 Months Ended
( us-gaap:IncomeStatementAbstract )    
  Jun. 30, 2016 Jun. 30, 2015 Jun. 30, 2015 Jun. 30, 2016
         
         
         
Net revenue 294,216 35,040 376,282 392,565
( us-gaap:Revenues )        
Cost of revenue 49,072 42,378 116,276 118,634
( us-gaap:CostOfRevenue )        
Gross margin 245,144 (7,338) 260,006 273,931
( us-gaap:GrossProfit )        
Operating expenses        
( us-gaap:OperatingExpensesAbstract )        
    Product development, sales and marketing 43,095 197,131 350,206 126,203
    ( us-gaap:BusinessDevelopment )        
    General and administrative 182,972 197,219 412,243 329,114
    ( us-gaap:GeneralAndAdministrativeExpense )        
    Depreciation and amortization expense 107,551 94,406 187,606 213,147
    ( us-gaap:DepreciationAndAmortization )        
    Total operating expenses 333,618 488,756 950,055 668,464
    ( us-gaap:OperatingExpenses )        
    Loss from operations (88,474) (496,094) (690,049) (394,533)
    ( us-gaap:OperatingIncomeLoss )        
    Other income (expenses)        
    ( us-gaap:OtherIncomeAndExpensesAbstract )        
        Interest expense (34,864) (1,830) (6,700) (50,414)
        ( us-gaap:InterestExpense )        
        Interest and other income 4 660
        ( us-gaap:InterestAndOtherIncome )        
        Change in fair value of derivative liabilities 25,000 27,000
        ( us-gaap:InterestExpenseTradingLiabilities )        
        Other income (expenses), net (59,864) (1,826) (6,040) (77,414)
        ( us-gaap:OtherNonoperatingIncomeExpense )        
        Net loss (148,338) (497,920) (696,089) (471,947)
        ( us-gaap:NetIncomeLoss )        
        Per-share data        
        ( us-gaap:EarningsPerShareBasicAndDilutedAbstract )        
        Basic and diluted loss per share 0.00 0.00 0.00 0.00
        ( us-gaap:EarningsPerShareBasicAndDiluted )        
        Weighted average number of common shares outstanding 325,341,224 322,010,151 320,383,974 325,341,224
        ( us-gaap:WeightedAverageNumberOfShareOutstandingBasicAndDiluted )        
(End Statement - Statements of Operations)
 
Statement - Statements of Cash Flows
Statement - Statements of Cash Flows (USD $) 3 Months Ended 6 Months Ended
( us-gaap:StatementOfCashFlowsAbstract )    
  Jun. 30, 2016 Jun. 30, 2015 Jun. 30, 2015 Jun. 30, 2016
         
         
         
CASH FLOWS FROM OPERATING ACTIVITIES:        
( us-gaap:NetCashProvidedByUsedInOperatingActivitiesAbstract )        
    Net loss (148,338) (497,920) (696,089) (471,947)
    ( us-gaap:NetIncomeLoss )        
Adjustments to reconcile net loss to net cash used in operating activities:        
( us-gaap:AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract )        
    Depreciation and amortization 107,551 94,406 187,606 213,147
    ( us-gaap:DepreciationAndAmortization )        
    Amortization of loan fees     4,002
    ( us-gaap:AmortizationOfDeferredLoanOriginationFeesNet )        
    Amortization of debt discount     5,822
    ( us-gaap:AmortizationOfDebtDiscountPremium )        
    Allowance for bad debt     176,000 11,100
    ( us-gaap:AllowanceForLoanAndLeaseLossRecoveryOfBadDebts )        
    Loss on sale of property included in cost of sales     2,942
    ( us-gaap:GainLossOnSaleOfPropertyPlantEquipment )        
    Change in fair value of embedded derivative     27,000
    ( us-gaap:EmbeddedDerivativeGainLossOnEmbeddedDerivativeNet )        
    Accounts receivable     10,044 97,299
    ( us-gaap:IncreaseDecreaseInAccountsReceivable )        
    Prepaid expenses     (100,083) (54,373)
    ( us-gaap:IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets )        
    Inventory     5,107 (44,032)
    ( us-gaap:IncreaseDecreaseInInventories )        
    Security deposit     7,225
    ( us-gaap:IncreaseDecreaseInSecurityDeposits )        
    Accounts payable and accrued liabilities     (136,753) 11,175
    ( us-gaap:IncreaseDecreaseInAccountsPayable )        
Net Cash Used In Operating Activities     (551,226) (193,582)
( us-gaap:NetCashProvidedByUsedInOperatingActivitiesContinuingOperations )        
CASH FLOWS FROM INVESTING ACTIVITIES:        
( us-gaap:NetCashProvidedByUsedInInvestingActivitiesAbstract )        
    Net cash paid for minority investment in business    
    ( us-gaap:PaymentsForProceedsFromInvestments )        
    Purchase of archival images, property and equipment     (69,762) (93,721)
    ( us-gaap:PaymentsToAcquirePropertyPlantAndEquipment )        
    Advances to related parties     (14,000)
    ( us-gaap:IncreaseDecreaseInAccountsReceivableRelatedParties )        
Net Cash Used In Investing Activities     (69,762) (107,721)
( us-gaap:NetCashProvidedByUsedInInvestingActivitiesContinuingOperations )        
CASH FLOWS FROM FINANCING ACTIVITIES:        
( us-gaap:NetCashProvidedByUsedInFinancingActivitiesAbstract )        
    Repayment of advances from related party     (49,496)
    ( us-gaap:PaymentsToFundLongtermLoansToRelatedParties )        
    Advances from related parties     17,000
    ( us-gaap:ProceedsFromCollectionOfLongtermLoansToRelatedParties )        
    Proceeds from sale of common stock     391,000
    ( us-gaap:ProceedsFromIssuanceOfCommonStock )        
    Proceeds from notes payable     212,500
    ( us-gaap:ProceedsFromNotesPayable )        
    Proceeds of note payable - related party     115,000
    ( us-gaap:ProceedsFromSecuredNotesPayable )        
    Repayment of payable to Globe Photo, Inc.     60,000
    ( us-gaap:RepaymentsOfNotesPayable )        
    Repayment of note payable - related party     (7,479)
    ( us-gaap:RepaymentsOfRelatedPartyDebt )        
Net Cash Provided By Financing Activities     341,504 277,021
( us-gaap:NetCashProvidedByUsedInFinancingActivitiesContinuingOperations )        
Net Change in Cash     (279,484) (24,282)
( us-gaap:CashPeriodIncreaseDecrease )        
Cash - Beginning of Period     340,523 32,570
( us-gaap:Cash )        
Cash - End of Period 8,288 61,039 61,039 8,288
( us-gaap:Cash )        
SUPPLEMENTARY CASH FLOW INFORMATION:        
( us-gaap:SupplementalCashFlowInformationAbstract )        
    Cash Paid During the Period for:        
    ( us-gaap:CashDividendsPaidToParentCompanyAbstract )        
    Interest     5,480 6,905
    ( us-gaap:InterestPaid )        
    Common shares issued for settlement of accrued liabilities     126,250
    ( us-gaap:IssuanceOfStockAndWarrantsForServicesOrClaims )        
(End Statement - Statements of Cash Flows)
 
Disclosure - Organization and Business Operations
Disclosure - Organization and Business Operations (USD $) 6 Months Ended
( us-gaap:AccountingPoliciesAbstract )  
  Jun. 30, 2016
   
   
   
Organization and Business Operations

 

1. ORGANIZATION AND BUSINESS OPERATIONS

 

Capital Art, Inc. (formerly Movie Star News, LLC) (the “Company”) sells and manages classic and contemporary, limited edition photographic images and reproductions, with a focus on iconic celebrity images. The Company also makes available its images for publications and merchandizing. The Company aims to become a leading global photography marketing and distribution company by acquiring rights and ownership to collections of rare iconic negatives and photographs, and to establish worldwide wholesale and retail sales channels.

 

Movie Star News, LLC (“MSN”) was organized in the state of Nevada on August 29, 2012 as a limited liability company to acquire the assets of Kramer Productions, Inc. d/b/a Movie Star News, a New York limited liability company since 1939 that was credited for creating the concept of “pin-up art”. The acquisition resulted in MSN holding one of the largest and most diverse collections of Hollywood photographs in the world of over 3 million Hollywood-related posters, vintage photographs and original negatives.

 

Capital Art, Inc. (“CAPA”), formed in the state of Delaware on April 26, 2007 along with its wholly owned subsidiary, Capital Art, LLC (collectively “CAPA” or “pre-merger CAPA”) formed in the state of California on January 24, 2011, owns rare iconic celebrity images, including the rights to the Frank Worth Collection. The Frank Worth Collection comprises an extensive collection of Marilyn Monroe, James Dean and other iconic photographs, many rare and never seen that were accumulated over a period of 60 years.

 

On July 22, 2015, the Company entered into an Asset Purchase Agreement with Globe Photos, Inc., a New York corporation, to purchase substantially all of the assets of Globe Photos, Inc., which principally comprise photographer contracts granting the Company the right to exploit copyrights, digital and tangible photographs, and related copyrights and trademarks, of Globe Photo, Inc. On July 24, 2015, the Company formed Globe Photo, LLC, a wholly owned subsidiary of CAPA, to license the Company’s extensive photograph image archive to third parties worldwide for a fee.

   

Going Concern

 

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business.

 

Management evaluated all relevant conditions and events that are reasonably known or reasonably knowable, in the aggregate, as of the date the condensed consolidated financial statements are issued and determined that substantial doubt exists about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on the Company’s ability to generate revenues and raise capital. The Company has not generated sufficient revenues from product sales to provide sufficient cash flows to enable the Company to finance its operations internally. As of June 30, 2016 the Company had $8,288 cash on hand. At June 30, 2016 the Company has a retained deficit of $2,205,412. For the six months ended June 30, 2016 the Company had a net loss of $471,947 and cash used in operations of $193,582. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

Over the next twelve months the Company intends to invest its working capital resources in sales and marketing in order to increase the distribution and demand for its products. If the Company fails to generate sufficient revenue and obtain additional capital to continue at its expected level of operations, the Company may be forced to scale back or discontinue its sales and marketing efforts. However, there is no guarantee the Company will generate sufficient revenues or raise capital to continue operations. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

( us-gaap:BasisOfPresentationAndSignificantAccountingPoliciesTextBlock )  
(End Disclosure - Organization and Business Operations)
 
Disclosure - Significant Accounting Policies
Disclosure - Significant Accounting Policies (USD $) 6 Months Ended
( us-gaap:AccountingPoliciesAbstract )  
  Jun. 30, 2016
   
   
   
Significant Accounting Policies

 

  2. SIGNIFICANT ACCOUNTING POLICIES

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in the condensed consolidated financial statements for the three and six months ended June 30, 2016 should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Form 10-K, for the Company’s fiscal year ended December 31, 2015 as, filed with the SEC pursuant to Rule 13a-13 under the Securities Exchange Act of 1934, as amended.

 

The condensed consolidated balance sheet as of December 31, 2015, included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP.

 

The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the year ended December 31, 2016.

 

The accompanying condensed consolidated financial statements represent the results of operations, financial position and cash flows of Capital Art, Inc., and its 100% owned subsidiaries Capital Art, LLC and Globe Photo, LLC for the three and six months ended June 30, 2016 and 2015. All inter-company balances and transactions have been eliminated.

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and also requires disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

  

Inventory

 

The Company’s inventory is comprised of rare photos of movie stars and other famous people, and is stated at the lower of cost or net realizable value. Direct labor and raw material costs associated with the process of making the photos available for sale are also included in inventory at cost. These costs are expensed to cost of sales pro-ratably as sold.

 

Revenue Recognition

 

The Company recognizes revenue related to product sales when (i) the seller’s price is substantially fixed, (ii) shipment has occurred causing the buyer to be obligated to pay for product, (iii) the buyer has economic substance apart from the seller, and (iv) there is no significant obligation for future performance to directly bring about the resale of the product by the buyer as required by ASC 605 – Revenue Recognition. Cost of sales, rebates and discounts are recorded at the time of revenue recognition or at each financial reporting date.

 

The Company’s other revenue represent payments based on net sales from brand licensees for content reproduction rights. These license agreements are held in conjunction with third parties that are responsible for collecting fees due and remitting to the Company its share after expenses. Revenue from licensed products is recognized when realized or realizable based on royalty reporting received from licensees. Revenues from royalties as of June 30, 2016 and 2015 were insignificant.

   

Basic and Diluted Income and Loss per Share

 

The Company computes income and loss per share in accordance with ASC 260 - Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the consolidated statements of operations. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. Diluted EPS excludes all dilutive potential shares if their effect is antidilutive. During periods of net loss, all common stock equivalents are excluded from the diluted EPS calculation because they are antidilutive.

 

A reconciliation of weighted-average basic shares outstanding to weighted-average diluted shares outstanding follows:

 

    Six Months Ended June 30,
    2016     2015
Basic weighted average common shares outstanding     325,341,224       320,383,974
               
Effect of dilutive securities     -       -
               
Diluted weighted average common and potential common shares outstanding     325,341,224       320,383,974

 

 

    Three Months Ended June 30,
    2016     2015
Basic weighted average common shares outstanding     325,341,224       322,010,151
               
Effect of dilutive securities     -       -
               
Diluted weighted average common and potential common shares outstanding     325,341,224       322,010,151

 

Shares Reserved

 

The Company is required to reserve and keep available of its authorized, but unissued shares of common stock an amount sufficient to effect shares due in connection with the Stock Purchase Agreement and Stock-Based Compensation to Non-Employees.

 

As of June 30, 2016, shares reserved for future issuance comprised of the following:

 

    Shares Reserved
Shares to be issued to Frank Worth Estate     200,000
      200,000

 

These shares were excluded from the calculation of diluted earnings per share as their effect was anti-dilutive.  

  

Recent Accounting Pronouncements

 

In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations and includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. ASU 2016-08 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09, as discussed above. Management is currently assessing its procedures for determining revenues derived from principal versus agents in connection with the impact of adopting this new accounting standard on the Company’s condensed consolidated financial statements and does not believe that the adoption of ASU 2016-08 will have a material impact on the Company’s condensed consolidated financial statements.

 

In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments in this update affect the guidance in ASU 2014-09, which is not yet effective. The amendments in ASU 2016-10 clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. ASU 2016-10 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09, as discussed above. Management is currently assessing the potential impact of adopting this new accounting standard on the Company’s condensed consolidated financial statements in connection with revenues recognized from licensing its vast archive of photographic images.

 

In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts from Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments in this update affect the guidance in ASU 2014-09, which is not yet effective. The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU 2016-12 do not change the core principle of the guidance in Topic 606, but instead affect only the narrow aspects noted in Topic 606. ASU 2016-12 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09, as discussed above. Management evaluated ASU 2016-12 and does not believe the adoption of ASU 2016-12 will have a material impact on the Company’s condensed consolidated financial statements.

 

In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments including requirements to measure most equity investments at fair value with changes in fair value recognized in net income, to perform a qualitative assessment of equity investments without readily determinable fair values, and to separately present financial assets and liabilities by measurement category and by type of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 will be effective for the Company beginning on January 1, 2018, and will be applied by means of a cumulative effect adjustment to the balance sheet, except for effects related to equity securities without readily determinable values, which will be applied prospectively. Management is currently evaluating the potential impact of adopting this new accounting standard on the Company’s condensed consolidated financial statements.

 

In February 2016, the FASB issued ASU 2016-02, Leases, which requires an entity to recognize long-term lease arrangements as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all long-term leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The amendments also require certain new quantitative and qualitative disclosures regarding leasing arrangements. ASU 2016-02 will be effective for the Company beginning on January 1, 2019. Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption is permitted. Management does not believe the adoption of ASU 2016-02 will have a material impact on the Company’s condensed consolidated financial statements.

 

In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument would not, in and of itself, be considered a termination of the derivative instrument, provided that all other hedge accounting criteria continue to be met. ASU 2016-05 is effective for the Company beginning on January 1, 2017. Early adoption is permitted, including in an interim period. Management evaluated ASU 2016-05 and does not believe the adoption of this new accounting standard will have a material impact on the Company’s condensed consolidated financial statements.

 

In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments, which aims to reduce the diversity of practice in identifying embedded derivatives in debt instruments. ASU 2016-06 clarifies that the nature of an exercise contingency is not subject to the “clearly and closely” criteria for purposes of assessing whether the call or put option must be separated from the debt instrument and accounted for separately as a derivative. ASU 2016-06 will be effective for the Company beginning on January 1, 2017. Management evaluated ASU 2016-06 and does not believe the adoption of this this new accounting standard will have a material impact on the Company’s condensed consolidated financial statements effective January 1, 2017.

 

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting and presentation of share-based payment transactions, including the accounting for related income taxes consequences and certain classifications within the statement of cash flows. ASU 2016-09 is effective for the Company beginning on January 1, 2017. Management evaluated the impact of adopting ASU 2016-09 and does not believe the new accounting standard will have a material impact on the Company’s condensed consolidated financial statements.

 

 In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case it would be required to apply the amendments prospectively as of the earliest date practicable. The Company is currently in the process of evaluating the impact of ASU 2016-15 on its condensed consolidated financial statements.

 

In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230)”, requiring that the statement of cash flows explain the change in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2017 with early adoption permitted. The provisions of this guidance are to be applied using a retrospective approach which requires application of the guidance for all periods presented. The Company is currently evaluating the impact of the new standard. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the consolidated financial statements filed with this annual report.

 

In December 2016, the FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers”. The amendments in this Update affect the guidance in Update 2014-09, which is not yet effective. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year.

The Company has evaluated the all recent accounting pronouncements, and believes that none of them will have a material effect on the Company's financial position, results of operations or cash flows as of the date of filing.

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Disclosure - Fair Value of Financial Instruments
Disclosure - Fair Value of Financial Instruments (USD $) 6 Months Ended
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  Jun. 30, 2016
   
   
   
Fair Value of Financial Instruments

  3. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company’s derivative liability measured at fair value on a recurring basis was determined using the following inputs:

 

    Fair Value Measurements at June 30, 2016
          Quoted Prices in Active Markets for Identical Assets     Significant Other Observable Inputs     Significant Unobservable Inputs
    Total     (Level 1)     (Level 2)     (Level 3)
Embedded derivative liability   $ 82,000     $     $     $ 82,000

 

 

 

The Company’s derivative liability measured at fair value on a recurring basis was determined using the following inputs:

 

    Fair Value Measurements at December 31, 2015  
          Quoted Prices in Active Markets for Identical Assets     Significant Other Observable Inputs     Significant Unobservable Inputs  
    Total     (Level 1)     (Level 2)     (Level 3)  
Embedded derivative liability   $ 55,000     $     $     $ 55,000  

 

 

As of June 30, 2016, the Company’s recognized an unrealized loss totaling $22,000 and $27,000 in the condensed consolidated statements of operations for three and six months ended June 30, 2016, respectively.

 

A reconciliation of the Company’s liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is as follows:

 

      Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Embedded Derivative Liability
      June 30, 2016       December 31, 2015
Balance beginning of year   $ 55,000     $ -
Embedded derivative in connection with the issuance of put option     -       55,000
Total unrealized loss included in earnings     27,000       -
Balance end of period   $ 82,000     $ 55,000
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Disclosure - Inventory
Disclosure - Inventory (USD $) 6 Months Ended
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Inventory

 

  4. INVENTORY

 

Archive Acquisition Agreements

 

On March 23, 2016, the Company entered in an agreement to purchase a celebrity photograph archive from Photoshot License Limited, a UK corporation, for total purchase price of $55,000. In addition, the Company paid a finder’s fee of $10,000 to a consultant in connection with the purchase of the archives. Per the terms of the agreement, the photographs may only be sold as a physical asset and CAPA does not have the right to license the images.

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Disclosure - Archival Images, and Property and Equipment
Disclosure - Archival Images, and Property and Equipment (USD $) 6 Months Ended
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Archival Images, and Property and Equipment

  5. ARCHIVAL IMAGES, AND PROPERTY AND EQUIPMENT

 

Archival images, and property and equipment as of June 30, 2016 and December 31, 2015 comprise of the following:

 

    June 30, 2016     December 31, 2015     Estimated Useful Lives
Frank Worth Collection   $ 2,770,000     $ 2,770,000       10 years
Other archival images     822,789       730,076       10 years
Leasehold improvements     12,446       12,446       7 years
Computer and other equipment     54,340       53,332       3 – 5 years
Furniture and fixtures     83,666       83,666       7 years
      3,743,241       3,649,520        
Less accumulated deprecation     (781,934 )     (590,537 )      
Total archival images, property and equipment, net   $ 2,961,307     $ 3,058,983        

 

 

Depreciation expense for the three and six months ended June 30, 2016 was 96,676 and 191,397, respectively. Depreciation expense was $94,406 and $187,606 for the three and six months ended June 30,2015.

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Disclosure - Frank Worth Collection
Disclosure - Frank Worth Collection (USD $) 6 Months Ended
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Frank Worth Collection

  6. FRANK WORTH COLLECTION

 

On November 12, 2014, the Frank Worth Estate agreed to accept $155,000 and 200,000 common shares, with a fair value of $0.05 per share ($10,000), of the Company’s common stock in exchange for sole and exclusive, world-wide, royalty free rights to all negatives, prints, products and other materials the Company possesses including the use of the Frank Worth seal, Frank Worth’s name, likeness, publications and biography plus merchandising and selling rights. $30,000 due under the agreement for royalties was paid in January 2015. The remainder of $125,000 and 200,000 ($10,000) shares of common stock were due and payable on or before May 31, 2015, which is being held by the Company until a dispute between the Estate and an unrelated party of the Company is settled. As of June 30, 2016 and December 31, 2015, $135,000 and $135,000, respectively has been provided for in accrued liabilities in the Company’s consolidated balance sheets. See Note 8 – Accrued Liabilities. Effective February 28, 2017, all liabilities with the Frank Worth Estate were settled by the Company. See Note 14 – Subsequent Events.

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Disclosure - Intangible Assets
Disclosure - Intangible Assets (USD $) 6 Months Ended
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Intangible Assets

 

  7. INTANGIBLE ASSETS

 

Identifiable intangible assets comprise of the following at June 30, 2016 and December 31, 2015:

 

    June 30, 2016     December 31, 2015
    Gross Carrying Amount     Accumulated Amortization     Gross Carrying Amount     Accumulated Amortization
Intangible assets with determinable lives:                      
                       
Content provider and photographic agreements   $ 400,000     $ 40,000     $ 400,000     $ 20,000
Copyrights     35,000       3,500       35,000       1,750
Total   $ 435,000     $ 43,500     $ 435,000     $ 21,750

  

Amortization expense in connection with the photographic agreements and copyrights for the three and six months ended June 30, 2016 was $10,875 and $21,750, respectively, and is included in depreciation and amortization expense in the condensed consolidated statements of operations and comprehensive loss. Estimated amortization expense over the next five years is $43,500 per year.

 

Proceeds from Auctions of Royalty Rights

 

On March 8, 2016, the Company entered into a Listing Agreement with Royalty Network, LLC, doing business as Royalty Exchange for auction of a 50% ownership of photographic copyrights of certain celebrity archival images owned by the Company. In addition, the sale also assigns the winning bidder the right to receive 50% of the future share of income derived from the assigned images.

 

Effective June 1, 2016 the Company entered into three separate non-exclusive license agreements use of licensed images and trademarks through December 31, 2019. Under the terms of the agreements, the Company is required pay royalty of 10% on net sales. The agreements call for combined annual guaranteed minimum royalties per year of $150,000 based on combined minimum sales of $1,500,000 per year. The Company was required to pay advances related to 50% of the first year’s royalties totaling $75,000 upon execution of the agreements. The advances related to first 50% of the first year’s royalties were paid on September 1, 2016 and as such have been accrued as a prepaid royalty expense. The remainder of the first year’s combined minimum royalties is due on or before February 1, 2017.

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Disclosure - Accounts Payable and Accrued Liabilities
Disclosure - Accounts Payable and Accrued Liabilities (USD $) 6 Months Ended
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Accounts Payable and Accrued Liabilities

 

  8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

 

Accrued liabilities at June 30, 2016 and 2015 comprise of the following:

 

    June 30, 2016     December 31, 2015
Accounts and other payable   $ 149,514     $ 244,977
Accrued payroll and related     4,365       3,518
Accrued rent     3,259       -
Due to Frank Worth Estate (Note 7)     135,000       135,000
Interest payable     17,233       4,776
Due to consultants for website development     102,000       102,000
Accrued royalties     89,832       -
Accrued tax payable     1,755       -
Stock-based compensation due to non-employees     104,167       104,167
Contingent liability for taxes assumed in reverse merger     91,000       91,000
Other     18,735       20,847
Total accrued liabilities   $ 716,860     $ 705,685

 

In connection with the reverse merger on October 8, 2014, the Company determined a liability contingency for income taxes existed as of the merger date. The liability is to be reimbursed by a related party of pre-merger CAPA. This contingency has been accounted in accordance with ASC 805, which states that a liability from a contingency recognized as of the acquisition date is in the scope of ASC 450 – Contingencies, is not acquired or assumed in a business combination, shall continue to be recognized by the acquirer at its acquisition-date fair value. As of June 30, 2016 and 2015, contingent liability for income taxes totaled $91,000 which has been accounted for in accrued liabilities and due from related party.

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Disclosure - Notes Payable
Disclosure - Notes Payable (USD $) 6 Months Ended
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  Jun. 30, 2016
   
   
   
Note Payable

 

  9. NOTES PAYABLE

 

On September 28, 2015, the Company entered into an unsecured promissory note agreement for working capital purposes with an unrelated party for total proceeds of $150,000. The note matured on September 28, 2016. Effective September 28, 2016, the note was extended to March 31, 2017 and is secured by approximately 240,000 vintage photographs. Interest accrues at the rate of 10% per annum and was payable monthly beginning October 28, 2015. Interest paid under the unsecured promissory note agreement totaled $3,750 and $7,500 for the three and six months ended June 30, 2016, respectively. Accrued interest payable due under the unsecured note agreement was $3,904 at June 30, 2016. Effective March 17, 2017 the note was extended to July 31, 2017.

 

In December 2015, the Company entered into a secured promissory note agreement with an unrelated party for working capital purposes for total proceeds of $120,000. On February 15, 2016, the Company entered into a new promissory note agreement with the unrelated party for a promissory note in the amount of $62,500. The notes matures on December 31, 2017 and are shown as long term, bears interest at the rate of 10% per annum, and interest only is payable on the 1st day of each month commencing in February 2016. The notes are secured by certain inventory and archival images of the Company in the amount up to $200,000. Interest on the original note of $120,000 and the additional amount of $40,000 has not been paid. Accrued interest payable due under the unsecured note agreements was $6,665 at June 30, 2016.

 

In April 2016, the Company entered into two promissory note agreements with unrelated parties for working capital purposes for total proceeds of $75,000. The promissory notes mature in December 2017 and are shown as long term,bear interest at the rate of 6% per annum. The interest expense accrued on the note was $1,089 for the six months ended June 30, 2016.

 

On April 7, 2016, an unrelated party advanced the Company $75,000 plus an original issued discount of $25,000 for purchase of a Marilyn Monroe archive. The advance is secured by the archive for which it was used and is to be repaid on or before July 31, 2017 and are shown as long term. The Company has agreed to pay 50% of the proceeds derived from the Marilyn Monroe archives up to a guaranteed total of $100,000. Once the $100,000 is paid, the Company has no further obligations. At June 30, 2016, the Company had paid $0 on this obligation. As of the date of this Report, the balance of $100,000 remains outstanding. As of the June 30, 2016 $5,822 of the discount has been amortized. The note is shown net of the unamortized portion of the discount of $19,178 as of June 30, 2016.

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Disclosure - Notes Payable to Related Parties
Disclosure - Notes Payable to Related Parties (USD $) 6 Months Ended
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  Jun. 30, 2016
   
   
   
Notes Payable to Related Parties

 

  10. NOTES PAYABLE TO RELATED PARTIES

 

Effective July 21, 2015, the Company entered into a promissory note agreement with a related party Dino Satallante, a principal shareholder, for total proceeds of $160,000. The Company utilized $80,000 of the proceeds for payments due in connection with the Globe Photo assets acquired. The remainder of the proceeds were used for working capital purposes. The note matured on July 20, 2016, with monthly interest only payments commencing July 22, 2015. Interest accrues at the rate of 12% per annum. The note is secured by the Globe Photo assets. Total interest expense in connection with the secured promissory note agreement for the three and six months ended June 30, 2016 was $4,800 and $9,600, respectively. Per the terms of the agreement the Company incurred loan fees totaling $8,000 to be amortized over the term of the loan. Amortization expense in connection with the loan fees totaled $2,001 and $4,002 for the three and six months ended June 30, 2016, respectively. Effective July 20, 2016 the note was extended to July 31, 2017.

 

On August 1, 2013, the Company entered into an unsecured promissory note agreement with Dino Satallante for $100,000. The loan bears interest at 5%. As of June 30, 2016 and December 31, 2015, $83,664 and $100,000 was outstanding under the unsecured promissory note agreement, respectively. Interest expense for the three and six months ended June 30, 2016 was $1,214 and $2,091, respectively. For the three and six months ended June 30, 2015 interest expense was $1,225 and $2,485, respectively. The loan matured on July 14, 2014 and was extended to July 31, 2016. Effective July 31, 2016, the note agreement was extended to July 31, 2017.

 

Effective September 11, 2014, the Company entered into two separate unsecured promissory note agreements for $20,500 each with two related parties, Dreamstar, Inc., an entity owned and controlled by Sam Battistone, a Company officer and director and a principal shareholder, and Dino Satallante, a principal shareholder of the Company, for working capital purposes. The loans bear interest at 6% per annum. The loans matured on September 10, 2015, and were extended to December 31, 2016. Effective December 31, 2015, the loans were extended to December 31, 2017. At June 30, 2016, $20,500 and $18,100 was outstanding to Dino Satallante and Dreamstar, respectively. Total interest expense in connection with the two unsecured promissory note agreements for the three and six months ended June 30, 2016 was $579 and $1,158, respectively. Interest expense for the three and six months ended June 30, 2015 was $605 and $1,220, respectively.

 

On April 4, 2016, the Company entered into a promissory note agreement with Premier Collectibles, a company owned by the Company’s President, Stuart Scheinman, in the principal amount of $65,000, to be used for acquisition of an archive agreement. The promissory note bears interest at the rate of 8% per annum, is secured by the archive collection which the proceeds were used and matures on or before June 30, 2017. The interest expense paid on the note was $1,239 for the six months ended June 30, 2016. This note was made by an associate of Mr. Scheinman to him for the purposes of him loaning these funds to the Company. The parties intend to amend the structure of this loan so that it is between the Company and the original maker, with Mr. Scheinman acting as the guarantor of this obligation and releasing the security interest.

 

On April 15, 2016, the Company entered into a promissory note agreement with Sean Goodchild at the time an officer and director of the Company and currently a shareholder, for total proceeds of $50,000. The promissory note bears interest at the rate of 6% per annum and matures on December 15, 2017 and are shown as long term. The promissory note bear 6% per annum and mature on December 31, 2017. The interest expense accrued on the note was $633 for the six months ended June 30, 2016.

 

As of June 30, 2016 and 2015, interest payable in connection with the unsecured promissory note agreements with related parties was $6,338 and $2,381, respectively, and is included in accrued liabilities in the Company’s consolidated balance sheet.

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Disclosure - Related Party Transactions
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Related Party Transactions

 

  11. RELATED PARTY TRANSACTIONS

 

Due From/To Related Parties

 

The following table summarizes amounts due to the Company from related parties for funds advanced to the Company on behalf of related parties and funds advanced from related parties for short-term working capital purposes as of June 30, 2016 and 2015. These amounts have been included in the condensed consolidated balance sheets with due from related parties as long term assets, and due to related parties as current liabilities since they are due on demand.

 

    June 30, 2016     December 31, 2015
Due from related parties:              
Klaus Moeller, related party of pre-merger CAPA and beneficial interest shareholder   $ 91,000      $ 91,000
       Total due from related parties   91,000      $ 91,000
               
               
Due to related parties:              
MSN Holding Co., beneficial interest shareholder    $ 12,999      $ 12,999
Premier Collectibles, beneficial interest shareholder     33,085       33,085
Stuart Scheinman, officer, director and beneficial  -  interest shareholder     3,000       -
     Total due to related parties   $ 49,084     $ 46,084

 

Credit Card Payable

 

As of June 30, 2016 and December 31, 2015, $46,958 and $37,790, respectively, was outstanding on a personal credit card in the name of a beneficial interest shareholder of the Company – Premier Collectibles. The liability is included in accounts payable in the consolidated balance sheets.

 

 Related Party Transactions

 

During 2016, Stuart Scheinman, the Company’s current CEO and a director, as well as a beneficial interest shareholder, advanced $17,000 for short-term working capital purposes; $14,000 of this was settled as part of amounts received from notes payable.

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Disclosure - Shareholders' Equity
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Shareholders' Equity

12.       SHAREHOLDERS’ EQUITY

 

Preferred Stock

 

The Company is authorized to issue up to 50,000,000 shares of preferred stock authorized with a par value of $0.0001. The Board of Directors is authorized, subject to any limitations prescribed by law, without further vote or action by the Company’s stockholders, to issue from time to time shares of preferred stock in one or more series. Each series of preferred stock will have such number of shares, designations, preferences, voting powers, qualifications and special or relative rights or privileges as shall be determined by the board of directors, which may include, among others, dividend rights, voting rights, liquidation preferences, and conversion rights. As of June 30, 2016, there were no shares of Preferred Stock issued and outstanding.

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Disclosure - Commitments and Contingencies
Disclosure - Commitments and Contingencies (USD $) 6 Months Ended
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Commitments and Contingencies

 

13.       COMMITMENTS AND CONTINGENCIES

 

Operating Lease Agreements

 

On September 6, 2012, the Company entered into a 25-month operating lease agreement for approximately 4,606 square foot warehouse and office facilities located in Las Vegas, NV. Monthly base rent due under the agreement is $3,270, plus common area maintenance fees. The agreement calls for 3% annual increase in base rental payments. On October 10, 2014, the Company entered into a First Amendment to Lease agreement extending the lease term for 60-months, beginning November 1, 2014. All other terms of the agreement remain unchanged.

 

The Company leases various corporate housing from unrelated third parties for terms that range from month-to-month to one year. Until June 2016, the Company also rented office space on a month-to-month basis in New York at rate of $850 per month. This lease was terminated in June 2016.

 

Total rent expense for the six months ended June 30, 2016 and 2015 was $37,900 and $26,369, respectively, in connection with the operating lease agreements.

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Disclosure - Subsequent Events
Disclosure - Subsequent Events (USD $) 6 Months Ended
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Subsequent Events

  

14.        SUBSEQUENT EVENTS

 

Notes Payable

 

On September 28, 2015, the Company entered into an unsecured promissory note agreement for working capital purposes with an unrelated party for total proceeds of $150,000. See Note 9 – Notes Payable. The note matured on September 28, 2016. Effective September 28, 2016 the note was extended to March 31, 2017 and is now secured by an interest in approximately 240,000 vintage photographs. Interest continues to accrue at the rate of 10% per annum and is payable monthly. In event of default, interest increases to 25% per annum. Effective March 17, 2017 the note was extended to July 31, 2017.

  

Proceeds from Auctions of Royalty Rights

 

In the third and fourth quarters of 2016, the Company received gross proceeds of $282,500, and $37,500, respectively, less 12.5% auction broker fee, from five separate auctions of royalty rights of images owned by the Company. The Company retains all exclusive licensing authority over the images and may exercise a buyback option to buy back the 50% ownership of the rights for two times the original auction proceeds for combined total of $792,000 for one to two year periods ranging from August 12, 2017 through November 18, 2018.

   

Related Party Transactions

  

Effective July 21, 2015, the Company entered into a promissory note agreement with related party Dino Satallante, a principal shareholder. The note matured on July 20, 2016. Effective July 20, 2016 the note was extended to July 31, 2017. See Note 11 – Notes Payable to Related Parties.

 

Effective September 11, 2014, the Company entered into two separate unsecured promissory note agreements for $20,500 each with two related parties, Sam Battistone, a Company officer and director and a principal shareholder, and Dino Satallante, a principal shareholder of the Company. The loans bear interest at 6% per annum. The loans matured on September 10, 2015, and were extended to December 31, 2016. Effective December 31, 2016, the loans were extended to December 31, 2017. All other terms of the loans remain unchanged. See Note 10 – Notes Payable to Related Parties.

 

On August 1, 2013, the Company entered into an unsecured promissory note agreement with a related party Dino Satallante a principal shareholder, for $100,000. The loan bears interest at 5%. The loan matured on July 14, 2014 and was extended to July 31, 2016. Effective July 31, 2016, the note agreement was extended to July 31, 2017. All other terms remain unchanged.

 

The Company entered into two additional $50,000 promissory note agreements with Mr. Goodchild, at the time an officer and director of the Company and currently a shareholder for two additional loans of $50,000 for working capital purposes on October 3, 2016 and December 2, 2016.

 

Frank Worth Collection

 

On July 6, 2016, Stuart Harris, as an individual and as Executor of the Estate of Frank Worth (“Claimant”) filed a Statement of Claim with the American Arbitration Association against the Company for breach of the Frank Worth Reproduction Rights Agreement entered into on November 18, 2011 (“the Frank Worth Reproduction Rights Agreement”) for royalties allegedly due. The Frank Worth Reproduction Rights Agreement called for royalty payments to be paid to Claimant by the Company for the exclusive global reproduction rights to all negatives, prints, products and other materials from the Frank Worth collection. However, on November 12, 2014, Claimant had previously agreed to accept $155,000 and 200,000 shares of the Company’s common stock in exchange for sole and exclusive, world-wide, royalty free rights to all negatives, prints, products and other materials the Company possesses including the use of the Frank Worth seal, Frank Worth’s name, likeness, publications and biography plus merchandising and selling rights. The Company paid $30,000 to the Claimant in January 2015 in connection with November 12, 2014 agreement. See Note 6 – Frank Worth Collection. The Statement of Claim also sought an award for breach of the November 12, 2014 agreement.

 

The Company made no further payments under the November 12, 2014 agreement due to Claimant selling the rights to 38 key images to Apsara, Inc. in 2007 and failing to disclose such prior sale to the Company. The Company also brought a counterclaim for breach of the November 12, 2014 agreement against Claimant for failure to disclose the previous sale of 38 key images which the Company had purchase the world-wide, royalty free rights under the Frank Worth Reproduction Rights Agreement and the subsequent November 12, 2014 agreement.

 

On October 18, 2016, an arbitration hearing was held on this matter. On October 28, 2016, the arbitrator issued an amended award, finding the 2011 Agreement to remain valid, but also recognizing the Company’s demand for clean title to the 38 Key images. Thus, the Company was ordered to pay Claimant $70,000 as final payment due under the November 12, 2014 agreement, payable to the Claimant no later than February 23, 2017. The Company was granted an award for delivery of clean title of the 38 Key images no later than February 23, 2017. In the event, Claimant provides such clean title by such deadline, the parties have the option to comply with the 2011 agreement and enter into negotiations for a new royalty agreement on the 38 Key images. But in the event Claimant does not deliver clean title, the Company shall retain possession of the entire collection, including the 38 Key images with no further obligation to pay royalties. Claimant failed to deliver clean title by February 23, 2017.

 

In the interim, the Company learned that Claimant is the subject of an action in a California Probate Court action challenging his actions as Executor of the Estate after March 2008. At that time Claimant was discharged as Executor of the Estate and he had no legal authority from that point on to represent the interests of the Estate, including entering into the agreements that were the subject of the Arbitration. That information has led the Company to secure the $70,000 final payment until such time as the California Probate Court determines the appropriate recipient.

 

On February 28, 2017, the parties agreed to dismiss this action with prejudice.

 

Stock-based and Other Compensation to Non-Employees

 

On January 2, 2015, the Company entered into a fixed price agreement with a consultant for website development services for total contract price of $193,000 payable in cash of $40,000 and 510,000 shares of the Company’s common stock with a stated fair value of $0.30 per share. As of December 31, 2015, 170,000 shares of common stock with fair value of $51,000 were issued. 340,000 shares of common stock were unissued for $102,000 which is included in accrued liabilities in the Company’s consolidated balance sheets. On October 1, 2016, the Company issued 229,300 ($68,790) shares of common stock as progress payment towards the fixed price agreement. Effective December 15, 2016, the consultant notified the Company that they have ceased operations. The Company has no further obligation for issuance of the remainder of common stock under the agreement.

( us-gaap:SubsequentEventsTextBlock )  
(End Disclosure - Subsequent Events)
 
Disclosure - Significant Accounting Policies (Policies)
Disclosure - Significant Accounting Policies (Policies) (USD $) 6 Months Ended
( us-gaap:AccountingPoliciesAbstract )  
  Jun. 30, 2016
   
   
   
Inventory

Inventory

 

The Company’s inventory is comprised of rare photos of movie stars and other famous people, and is stated at the lower of cost or net realizable value. Direct labor and raw material costs associated with the process of making the photos available for sale are also included in inventory at cost. These costs are expensed to cost of sales pro-ratably as sold.

( us-gaap:InventoryPolicyTextBlock )  
Basic and Diluted Income and Loss per Share

Basic and Diluted Income and Loss per Share

 

The Company computes income and loss per share in accordance with ASC 260 - Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the consolidated statements of operations. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. Diluted EPS excludes all dilutive potential shares if their effect is antidilutive. During periods of net loss, all common stock equivalents are excluded from the diluted EPS calculation because they are antidilutive.

 

A reconciliation of weighted-average basic shares outstanding to weighted-average diluted shares outstanding follows:

 

    Six Months Ended June 30,
    2016     2015
Basic weighted average common shares outstanding     325,341,224       320,383,974
               
Effect of dilutive securities     -       -
               
Diluted weighted average common and potential common shares outstanding     325,341,224       320,383,974

 

 

 Capital Art, Inc.

Notes to Condensed Consolidated Financial Statements

June 30, 2016 and 2015

(unaudited)

 

    Three Months Ended June 30,
    2016     2015
Basic weighted average common shares outstanding     325,341,224       322,010,151
               
Effect of dilutive securities     -       -
               
Diluted weighted average common and potential common shares outstanding     325,341,224       322,010,151
( us-gaap:DerivativesPolicyTextBlock )  
Revenue Recognition

Revenue Recognition

 

The Company recognizes revenue related to product sales when (i) the seller’s price is substantially fixed, (ii) shipment has occurred causing the buyer to be obligated to pay for product, (iii) the buyer has economic substance apart from the seller, and (iv) there is no significant obligation for future performance to directly bring about the resale of the product by the buyer as required by ASC 605 – Revenue Recognition. Cost of sales, rebates and discounts are recorded at the time of revenue recognition or at each financial reporting date.

 

The Company’s other revenue represent payments based on net sales from brand licensees for content reproduction rights. These license agreements are held in conjunction with third parties that are responsible for collecting fees due and remitting to the Company its share after expenses. Revenue from licensed products is recognized when realized or realizable based on royalty reporting received from licensees. Revenues from royalties as of June 30, 2016 and 2015 were insignificant.

( us-gaap:RevenueRecognitionPolicyTextBlock )  
Shares Reserved

Shares Reserved

 

The Company is required to reserve and keep available of its authorized, but unissued shares of common stock an amount sufficient to effect shares due in connection with the Stock Purchase Agreement and Stock-Based Compensation to Non-Employees.

 

As of June 30, 2016, shares reserved for future issuance comprised of the following:

 

    Shares Reserved
Shares to be issued to Frank Worth Estate     200,000
      200,000

 

These shares were excluded from the calculation of diluted earnings per share as their effect was anti-dilutive.  

( custom:SharesReserved [Extension] )  
Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations and includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. ASU 2016-08 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09, as discussed above. Management is currently assessing its procedures for determining revenues derived from principal versus agents in connection with the impact of adopting this new accounting standard on the Company’s condensed consolidated financial statements and does not believe that the adoption of ASU 2016-08 will have a material impact on the Company’s condensed consolidated financial statements.

 

In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments in this update affect the guidance in ASU 2014-09, which is not yet effective. The amendments in ASU 2016-10 clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. ASU 2016-10 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09, as discussed above. Management is currently assessing the potential impact of adopting this new accounting standard on the Company’s condensed consolidated financial statements in connection with revenues recognized from licensing its vast archive of photographic images.

 

In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts from Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments in this update affect the guidance in ASU 2014-09, which is not yet effective. The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU 2016-12 do not change the core principle of the guidance in Topic 606, but instead affect only the narrow aspects noted in Topic 606. ASU 2016-12 is effective January 1, 2018 to be in alignment with the effective date of ASU 2014-09, as discussed above. Management evaluated ASU 2016-12 and does not believe the adoption of ASU 2016-12 will have a material impact on the Company’s condensed consolidated financial statements.

 

In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments including requirements to measure most equity investments at fair value with changes in fair value recognized in net income, to perform a qualitative assessment of equity investments without readily determinable fair values, and to separately present financial assets and liabilities by measurement category and by type of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 will be effective for the Company beginning on January 1, 2018, and will be applied by means of a cumulative effect adjustment to the balance sheet, except for effects related to equity securities without readily determinable values, which will be applied prospectively. Management is currently evaluating the potential impact of adopting this new accounting standard on the Company’s condensed consolidated financial statements.

 

In February 2016, the FASB issued ASU 2016-02, Leases, which requires an entity to recognize long-term lease arrangements as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all long-term leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The amendments also require certain new quantitative and qualitative disclosures regarding leasing arrangements. ASU 2016-02 will be effective for the Company beginning on January 1, 2019. Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption is permitted. Management does not believe the adoption of ASU 2016-02 will have a material impact on the Company’s condensed consolidated financial statements.

 

In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument would not, in and of itself, be considered a termination of the derivative instrument, provided that all other hedge accounting criteria continue to be met. ASU 2016-05 is effective for the Company beginning on January 1, 2017. Early adoption is permitted, including in an interim period. Management evaluated ASU 2016-05 and does not believe the adoption of this new accounting standard will have a material impact on the Company’s condensed consolidated financial statements.

 

In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments, which aims to reduce the diversity of practice in identifying embedded derivatives in debt instruments. ASU 2016-06 clarifies that the nature of an exercise contingency is not subject to the “clearly and closely” criteria for purposes of assessing whether the call or put option must be separated from the debt instrument and accounted for separately as a derivative. ASU 2016-06 will be effective for the Company beginning on January 1, 2017. Management evaluated ASU 2016-06 and does not believe the adoption of this this new accounting standard will have a material impact on the Company’s condensed consolidated financial statements effective January 1, 2017.

 

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting and presentation of share-based payment transactions, including the accounting for related income taxes consequences and certain classifications within the statement of cash flows. ASU 2016-09 is effective for the Company beginning on January 1, 2017. Management evaluated the impact of adopting ASU 2016-09 and does not believe the new accounting standard will have a material impact on the Company’s condensed consolidated financial statements.

 

 In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case it would be required to apply the amendments prospectively as of the earliest date practicable. The Company is currently in the process of evaluating the impact of ASU 2016-15 on its condensed consolidated financial statements.

 

In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230)”, requiring that the statement of cash flows explain the change in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This guidance is effective for fiscal years, and interim reporting periods therein, beginning after December 15, 2017 with early adoption permitted. The provisions of this guidance are to be applied using a retrospective approach which requires application of the guidance for all periods presented. The Company is currently evaluating the impact of the new standard. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the consolidated financial statements filed with this annual report.

 

In December 2016, the FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers”. The amendments in this Update affect the guidance in Update 2014-09, which is not yet effective. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year.

The Company has evaluated the all recent accounting pronouncements, and believes that none of them will have a material effect on the Company's financial position, results of operations or cash flows as of the date of filing.

( us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock )  
(End Disclosure - Significant Accounting Policies (Policies))
 
Disclosure - Significant Accounting Policies (Tables)
Disclosure - Significant Accounting Policies (Tables) (USD $) 6 Months Ended
( us-gaap:AccountingPoliciesAbstract )  
  Jun. 30, 2016
   
   
   
Reconciliation of weighted-average diluted shares
    Six Months Ended June 30,
    2016     2015
Basic weighted average common shares outstanding     325,341,224       320,383,974
               
Effect of dilutive securities     -       -
               
Diluted weighted average common and potential common shares outstanding     325,341,224       320,383,974

 

    Three Months Ended June 30,
    2016     2015
Basic weighted average common shares outstanding     325,341,224       322,010,151
               
Effect of dilutive securities     -       -
               
Diluted weighted average common and potential common shares outstanding     325,341,224       322,010,151
( us-gaap:ScheduleOfWeightedAverageNumberOfSharesTableTextBlock )  
Shares Reserved
    Shares Reserved
Shares to be issued to Frank Worth Estate     200,000
      200,000
( custom:ShareReserved [Extension] )  
(End Disclosure - Significant Accounting Policies (Tables))
 
Disclosure - Fair Value of Financial Instruments (Tables)
Disclosure - Fair Value of Financial Instruments (Tables) (USD $) 6 Months Ended
( us-gaap:FairValueDisclosuresAbstract )  
  Jun. 30, 2016
   
   
   
Schedule of derivative fair on recurring basis
    Fair Value Measurements at June 30, 2016
          Quoted Prices in Active Markets for Identical Assets     Significant Other Observable Inputs     Significant Unobservable Inputs
    Total     (Level 1)     (Level 2)     (Level 3)
Embedded derivative liability   $ 82,000     $     $     $ 82,000

 

    Fair Value Measurements at December 31, 2015  
          Quoted Prices in Active Markets for Identical Assets     Significant Other Observable Inputs     Significant Unobservable Inputs  
    Total     (Level 1)     (Level 2)     (Level 3)  
Embedded derivative liability   $ 55,000     $     $     $ 55,000  
( us-gaap:FairValueAssetsMeasuredOnRecurringBasisTextBlock )  
Schedule of Level 3 Significant Inputs
      Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Embedded Derivative Liability
      June 30, 2016       December 31, 2015
Balance beginning of year   $ 55,000     $ -
Embedded derivative in connection with the issuance of put option     -       55,000
Total unrealized loss included in earnings     27,000       -
Balance end of period   $ 82,000     $ 55,000
( us-gaap:FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock )  
(End Disclosure - Fair Value of Financial Instruments (Tables))
 
Disclosure - Archival Images, and Property and Equipment (Tables)
Disclosure - Archival Images, and Property and Equipment (Tables) (USD $) 6 Months Ended
( us-gaap:PropertyPlantAndEquipmentAbstract )  
  Jun. 30, 2016
   
   
   
Schedule of archival images, property and equipment
    June 30, 2016     December 31, 2015     Estimated Useful Lives
Frank Worth Collection   $ 2,770,000     $ 2,770,000       10 years
Other archival images     822,789       730,076       10 years
Leasehold improvements     12,446       12,446       7 years
Computer and other equipment     54,340       53,332       3 – 5 years
Furniture and fixtures     83,666       83,666       7 years
      3,743,241       3,649,520        
Less accumulated deprecation     (781,934 )     (590,537 )      
Total archival images, property and equipment, net   $ 2,961,307     $ 3,058,983        
( us-gaap:PropertyPlantAndEquipmentTextBlock )  
(End Disclosure - Archival Images, and Property and Equipment (Tables))
 
Disclosure - Intangible Assets (Tables)
Disclosure - Intangible Assets (Tables) (USD $) 6 Months Ended
( us-gaap:GoodwillAndIntangibleAssetsDisclosureAbstract )  
  Jun. 30, 2016
   
   
   
Schedule of intangible assets
    June 30, 2016     December 31, 2015
    Gross Carrying Amount     Accumulated Amortization     Gross Carrying Amount     Accumulated Amortization
Intangible assets with determinable lives:                      
                       
Content provider and photographic agreements   $ 400,000     $ 40,000     $ 400,000     $ 20,000
Copyrights     35,000       3,500       35,000       1,750
Total   $ 435,000     $ 43,500     $ 435,000     $ 21,750
( us-gaap:ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock )  
(End Disclosure - Intangible Assets (Tables))
 
Disclosure - Accounts Payable and Accrued Liabilities (Tables)
Disclosure - Accounts Payable and Accrued Liabilities (Tables) (USD $) 6 Months Ended
( us-gaap:PayablesAndAccrualsAbstract )  
  Jun. 30, 2016
   
   
   
Schedule of accrued liabilties
    June 30, 2016     December 31, 2015
Accounts and other payable   $ 149,514     $ 244,977
Accrued payroll and related     4,365       3,518
Accrued rent     3,259       -
Due to Frank Worth Estate (Note 7)     135,000       135,000
Interest payable     17,233       4,776
Due to consultants for website development     102,000       102,000
Accrued royalties     89,832       -
Accrued tax payable     1,755       -
Stock-based compensation due to non-employees     104,167       104,167
Contingent liability for taxes assumed in reverse merger     91,000       91,000
Other     18,735       20,847
Total accrued liabilities   $ 716,860     $ 705,685
( us-gaap:ScheduleOfAccruedLiabilitiesTableTextBlock )  
(End Disclosure - Accounts Payable and Accrued Liabilities (Tables))
 
Disclosure - Related Party Transactions (Tables)
Disclosure - Related Party Transactions (Tables) (USD $) 6 Months Ended
( us-gaap:RelatedPartyTransactionsAbstract )  
  Jun. 30, 2016
   
   
   
Schedule of related party transactions
    June 30, 2016     December 31, 2015
Due from related parties:              
Klaus Moeller, related party of pre-merger CAPA and beneficial interest shareholder   $ 91,000      $ 91,000
       Total due from related parties   91,000      $ 91,000
               
               
Due to related parties:              
MSN Holding Co., beneficial interest shareholder    $ 12,999      $ 12,999
Premier Collectibles, beneficial interest shareholder     33,085       33,085
Stuart Scheinman, officer, director and beneficial  -  interest shareholder     3,000       -
     Total due to related parties   $ 49,084     $ 46,084
( us-gaap:ScheduleOfRelatedPartyTransactionsTableTextBlock )  
(End Disclosure - Related Party Transactions (Tables))
 
Disclosure - Organization and Business Operations (Details Narrative)
Disclosure - Organization and Business Operations (Details Narrative) (USD $) 3 Months Ended 6 Months Ended        
( us-gaap:AccountingPoliciesAbstract )            
  Jun. 30, 2016 Jun. 30, 2015 Jun. 30, 2015 Jun. 30, 2016 Jun. 30, 2016 Dec. 31, 2015 Jun. 30, 2015 Dec. 31, 2014
                 
                 
                 
Cash         8,288 32,570 61,039 340,523
( us-gaap:Cash )                
Retained deficit         (2,205,412) (1,733,465)    
( us-gaap:RetainedEarningsAccumulatedDeficit )                
Net loss (148,338) (497,920) (696,089) (471,947)        
( us-gaap:NetIncomeLoss )                
Cash used in operations     (551,226) (193,582)        
( us-gaap:NetCashProvidedByUsedInOperatingActivitiesContinuingOperations )                
Movie Star News Organization Date       2012-08-29        
( custom:MovieStar [Extension] )                
Global Photo LLC Organization Date       2011-01-24        
( custom:GlobalPhoto [Extension] )                
Capital Art LLC Organization Date       2015-07-24        
( custom:CapitalArtLLC [Extension] )                
Capital Art, Inc. Incorporation Date       2007-04-26        
( custom:CapitalArtIncIncorporation [Extension] )                
(End Disclosure - Organization and Business Operations (Details Narrative))
 
Disclosure - Significant Accounting Policies (Details)
Disclosure - Significant Accounting Policies (Details) (USD $) 3 Months Ended 6 Months Ended
( us-gaap:AccountingPoliciesAbstract )    
  Jun. 30, 2016 Jun. 30, 2015 Jun. 30, 2015 Jun. 30, 2016
         
         
         
Basic weighted average common shares outstanding 325,341,224 322,010,151 320,383,974 325,341,224
( us-gaap:WeightedAverageNumberOfSharesOutstandingBasic )        
Effect of dilutive securities 0 0 0 0
( us-gaap:WeightedAverageNumberDilutedSharesOutstandingAdjustment )        
Diluted weighted average common and potential common shares outstanding 325,341,224 322,010,151 320,383,974 325,341,224
( us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding )        
Shares to be issued to Frank Worth Estate       200,000
( custom:SharesToBeIssuedFrankWorth [Extension] )        
(End Disclosure - Significant Accounting Policies (Details))
 
Disclosure - Fair Value of Financial Instruments (Details - fair value)
Disclosure - Fair Value of Financial Instruments (Details - fair value) (USD $)            
( us-gaap:FairValueDisclosuresAbstract )            
  Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Dec. 31, 2015 Dec. 31, 2015
( us-gaap:FairValueByFairValueHierarchyLevelAxis )            
  Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 1 [Member]
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 2 [Member]
  Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
 
( us-gaap:FairValueMeasurementsFairValueHierarchyDomain )            
Embedded derivative 0 82,000 0 82,000 55,000 55,000
( us-gaap:EmbeddedDerivativeFairValueOfEmbeddedDerivativeLiability )            
(End Disclosure - Fair Value of Financial Instruments (Details - fair value))
 
Disclosure - Fair Value of Financial Instruments (Details - Level 3)
Disclosure - Fair Value of Financial Instruments (Details - Level 3) (USD $) 3 Months Ended 6 Months Ended 12 Months Ended    
( us-gaap:FairValueDisclosuresAbstract )          
  Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Dec. 31, 2015 Jun. 30, 2016 Dec. 31, 2015
( us-gaap:FairValueByFairValueHierarchyLevelAxis )            
    Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
    Fair Value, Measurements, Recurring [Member]
Fair Value, Inputs, Level 3 [Member]
 
( us-gaap:FairValueMeasurementsFairValueHierarchyDomain )            
Beginning balance         55,000
( custom:BeginningBalanceLevelThree [Extension] )            
Embedded derivative in connection with put options       55,000    
( us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationIssues )            
Total unrealized income (loss) included in earnings (22,000) (27,000) (27,000)      
( us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationGainLossIncludedInEarnings )            
Ending balance         82,000 55,000
( custom:EndingBalanceLevelThree [Extension] )            
(End Disclosure - Fair Value of Financial Instruments (Details - Level 3))
 
Disclosure - Fair Value of Financial Instruments (Details Narrative)
Disclosure - Fair Value of Financial Instruments (Details Narrative) (USD $) 3 Months Ended 6 Months Ended
( us-gaap:FairValueDisclosuresAbstract )    
  Jun. 30, 2016 Jun. 30, 2016
     
     
     
Total unrealized income (loss) included in earnings (22,000) (27,000)
( us-gaap:FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationGainLossIncludedInEarnings )    
(End Disclosure - Fair Value of Financial Instruments (Details Narrative))
 
Disclosure - Inventory (Details)
Disclosure - Inventory (Details) (USD $)  
( us-gaap:InventoryDisclosureAbstract )  
  Mar. 23, 2016
   
   
   
Purchase Price of Celebrity Photograph Archive 55,000
( custom:PurchasePriceOfCelebrityPhotographArchive [Extension] )  
Finders Fee paid to Consultant 10,000
( custom:FindersFeePaidToConsultant [Extension] )  
(End Disclosure - Inventory (Details))
 
Disclosure - Archival Images, and Property and Equipment (Details)
Disclosure - Archival Images, and Property and Equipment (Details) (USD $) 6 Months Ended          
( us-gaap:PropertyPlantAndEquipmentAbstract )            
  Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016
( us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis )                    
  Leasehold Improvements [Member] Computer and other equipment [Member] Furniture and fixtures [Member] Frank Worth Collection [Member] Other archival images[Member] Frank Worth Collection [Member] Computer and other equipment [Member] Furniture and fixtures [Member] Other archival images[Member] Leasehold Improvements [Member]
( us-gaap:FiniteLivedIntangibleAssetsMajorClassNameDomain )                    
Property and equipment gross           2,770,000 54,340 83,666 822,789 12,446
( us-gaap:PropertyPlantAndEquipmentGross )                    
Less accumulated deprecation                    
( us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment )                    
Total archival images, property and equipment, net                    
( us-gaap:PropertyPlantAndEquipmentNet )                    
Estimated useful lives 7 years 3-5 years 7 years 10 years 10 years          
( us-gaap:PropertyPlantAndEquipmentEstimatedUsefulLives )                    
 
Table continued from above
 
Disclosure - Archival Images, and Property and Equipment (Details) (USD $)              
( us-gaap:PropertyPlantAndEquipmentAbstract )              
  Jun. 30, 2016 Dec. 31, 2015 Dec. 31, 2015 Dec. 31, 2015 Dec. 31, 2015 Dec. 31, 2015 Dec. 31, 2015
( us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis )              
    Furniture and fixtures [Member] Computer and other equipment [Member] Leasehold Improvements [Member] Frank Worth Collection [Member] Other archival images[Member]  
( us-gaap:FiniteLivedIntangibleAssetsMajorClassNameDomain )              
Property and equipment gross 3,743,241 83,666 53,332 12,446 2,770,000 730,076 3,649,520
( us-gaap:PropertyPlantAndEquipmentGross )              
Less accumulated deprecation (781,934)           (590,537)
( us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment )              
Total archival images, property and equipment, net 2,961,307           3,058,983
( us-gaap:PropertyPlantAndEquipmentNet )              
Estimated useful lives              
( us-gaap:PropertyPlantAndEquipmentEstimatedUsefulLives )              
(End Disclosure - Archival Images, and Property and Equipment (Details))
 
Disclosure - Archival Images, and Property and Equipment (Details Narrative)
Disclosure - Archival Images, and Property and Equipment (Details Narrative) (USD $) 3 Months Ended 6 Months Ended
( us-gaap:PropertyPlantAndEquipmentAbstract )    
  Jun. 30, 2016 Jun. 30, 2015 Jun. 30, 2015 Jun. 30, 2016
( us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis )        
         
( us-gaap:FiniteLivedIntangibleAssetsMajorClassNameDomain )        
Depreciation Expense 96,676 94,406 187,606 191,397
( us-gaap:Depreciation )        
(End Disclosure - Archival Images, and Property and Equipment (Details Narrative))
 
Disclosure - Frank Worth Collection (Details Narrative)
Disclosure - Frank Worth Collection (Details Narrative) (USD $) 0 Months Ended 1 Month Ended 12 Months Ended    
( us-gaap:InvestmentsAllOtherInvestmentsAbstract )          
  Nov. 12, 2014 May. 31, 2015 Dec. 31, 2015 Jun. 30, 2016 Dec. 31, 2015
( us-gaap:InvestmentsInAndAdvancesToAffiliatesCategorizationAxis )          
  Frank Worth Collection [Member] [Default Label] Frank Worth Collection [Member] [Default Label] Frank Worth Collection [Member] [Default Label]   Frank Worth Collection [Member] [Default Label]
( us-gaap:InvestmentsInAndAdvancesToAffiliatesCategorizationDomain )          
Common shares issued in connection with acquisition, shares 200,000        
( us-gaap:StockIssuedDuringPeriodSharesAcquisitions )          
Common shares issued in connection with acquisition, value 10,000        
( us-gaap:StockIssuedDuringPeriodValueAcquisitions )          
Cash paid for acquisition 155,000        
( us-gaap:PaymentsForPreviousAcquisition )          
Royalties paid     30,000    
( us-gaap:PaymentsForRoyalties )          
Accrued liabilities, stock and cash due for acquisition       135,000 135,000
( us-gaap:AccruedLiabilitiesCurrent )          
Fair Value per share 0.05        
( custom:FairValuePerShare [Extension] )          
Common Shares due and payable, shares   200,000      
( custom:CommonSharesDueShares [Extension] )          
Common Shares due and payable, value   10,000      
( custom:CommonSharesDueValue [Extension] )          
Cash for acquisition due and payable   125,000      
( custom:CashForAcquisitionDue [Extension] )          
(End Disclosure - Frank Worth Collection (Details Narrative))
 
Disclosure - Intangible Assets (Details)
Disclosure - Intangible Assets (Details) (USD $)            
( us-gaap:GoodwillAndIntangibleAssetsDisclosureAbstract )            
  Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Dec. 31, 2015 Dec. 31, 2015 Dec. 31, 2015
( us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis )            
  Copyrights [Member] Content provider and photographic agreements [Member]   Content provider and photographic agreements [Member] Copyrights [Member]  
( us-gaap:FiniteLivedIntangibleAssetsMajorClassNameDomain )            
Intangible assets, gross 35,000 400,000 435,000 400,000 35,000 435,000
( us-gaap:FiniteLivedIntangibleAssetsGross )            
Accumulated amortization 3,500 40,000 43,500 20,000 1,750 21,750
( us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization )            
(End Disclosure - Intangible Assets (Details))
 
Disclosure - Intangible Assets (Details Narrative)
Disclosure - Intangible Assets (Details Narrative) (USD $) 3 Months Ended 6 Months Ended      
( us-gaap:GoodwillAndIntangibleAssetsDisclosureAbstract )          
  Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 1, 2016 Mar. 8, 2016
( us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis )            
    Non-Exclussive License Agreements     Non-Exclussive License Agreements Royaly Network, LLC
( us-gaap:FiniteLivedIntangibleAssetsMajorClassNameDomain )            
Amortization expense 10,875   21,750      
( us-gaap:AdjustmentForAmortization )            
Amortization expense due current       43,500    
( us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths )            
Amortization expense year two       43,500    
( us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo )            
Amortization expense year three       43,500    
( us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearThree )            
Amortization expense year four       43,500    
( us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearFour )            
Amortization expense year five       43,500    
( us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseYearFive )            
Percent ownrship of photographic copyrights           50
( custom:PercentOwnershipOfPhotoGraphicCopyrights [Extension] )            
Use of License Term Date   2019-12-31        
( custom:UseOfLicenseTermDate [Extension] )            
Percent of Royalities Paid on Sales         10  
( custom:PercentOfRoyaltiesPaid [Extension] )            
Minimum Royalties Paid per year         150,000  
( custom:MinimumRoyaltiesPaid [Extension] )            
Minimum Sales per year         1,500,000  
( custom:MinimumSales [Extension] )            
Advances Paid Percentage         50  
( custom:AdvancesPaidPercentage [Extension] )            
Total Advances Paid         75,000  
( custom:TotalAdvancesPaid [Extension] )            
(End Disclosure - Intangible Assets (Details Narrative))
 
Disclosure - Accounts Payable and Accrued Liabilities (Details)
Disclosure - Accounts Payable and Accrued Liabilities (Details) (USD $)    
( us-gaap:PayablesAndAccrualsAbstract )    
  Jun. 30, 2016 Dec. 31, 2015
     
     
     
Accounts Payable 149,514 244,977
( us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent )    
Accrued payroll and related 4,365 3,518
( us-gaap:EmployeeRelatedLiabilitiesCurrent )    
Deferred Rent 3,259
( us-gaap:ManagementFeePayable )    
Due to Frank Worth Estate 135,000 135,000
( custom:DueToFrankWorthEstate [Extension] )    
Interest payable 17,233 4,776
( us-gaap:InterestPayableCurrent )    
Accrued liability in connection with archive acquisition    
( custom:AccruedLiabilityInConnectionWithArchiveAcquisition [Extension] )    
Due to consultants for website development 102,000 102,000
( us-gaap:AccruedProfessionalFeesCurrent )    
Accrued royalties due to Frank Worth Estate 89,832
( us-gaap:AccruedRoyaltiesCurrent )    
Accrued Tax Payable 1,755
( custom:FairValueOfLimitedEditionPrintsDueToConsultant [Extension] )    
Stock-based compensation due to non-employees 104,167 104,167
( us-gaap:DeferredCompensationShareBasedArrangementsLiabilityCurrent )    
Contingent liability for taxes assumed in reverse merger 91,000 91,000
( us-gaap:BusinessCombinationContingentConsiderationLiabilityCurrent )    
Other 18,735 20,847
( us-gaap:OtherAccruedLiabilitiesCurrent )    
Total accrued liabilities 716,860 705,685
( us-gaap:AccountsPayableCurrent )    
(End Disclosure - Accounts Payable and Accrued Liabilities (Details))
 
Disclosure - Accounts Payable and Accrued Liabilities (Details Narrative)
Disclosure - Accounts Payable and Accrued Liabilities (Details Narrative) (USD $)    
( us-gaap:PayablesAndAccrualsAbstract )    
  Jun. 30, 2016 Jun. 30, 2015
     
     
     
Contingent liability for income taxes 91,000 91,000
( us-gaap:BusinessCombinationContingentConsiderationLiability )    
(End Disclosure - Accounts Payable and Accrued Liabilities (Details Narrative))
 
Disclosure - Note Payable (Details Narrative)
Disclosure - Note Payable (Details Narrative) (USD $) 3 Months Ended 6 Months Ended        
( us-gaap:DebtDisclosureAbstract )            
  Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Apr. 15, 2016
( us-gaap:LongtermDebtTypeAxis )                    
  Unsecured Debt [Member] Secured Promissory Note Two [Member] RelatedPartyAdvancesMember SecuredDebtThreeMember Secured Promissory Note [Member] Unsecured Debt [Member] Secured Promissory Note [Member] Unsecured Debt [Member]   Sean Goodchild [Member]
( us-gaap:LongtermDebtTypeDomain )                    
Debt face amount                    
( us-gaap:DebtInstrumentFaceAmount )                    
Proceeds from note payable   62,500 75,000   120,000 150,000        
( us-gaap:ProceedsFromUnsecuredNotesPayable )                    
Debt maturity date   2017-12-31   2017-12-31 2017-12-31 2017-07-31        
( us-gaap:DebtInstrumentMaturityDate )                    
Debt interest rate                   0.06
( us-gaap:DebtInstrumentInterestRateStatedPercentage )                    
Interest expense 3,750     1,089   7,500        
( us-gaap:InterestExpenseDebt )                    
Accrued interest             6,665 3,904 17,233  
( us-gaap:InterestPayableCurrent )                    
Photographs securing note         200,000 240,000        
( custom:PhotgraphsSecuringNote [Extension] )                    
Default Interest Rate                    
( custom:DefaultInterestRate [Extension] )                    
First Tranche Received                    
( custom:FirstTranche [Extension] )                    
Remaining Proceeds Reveived Date   2016-04-05                
( custom:RemainingProceedsReceivedDate [Extension] )                    
Remaining Proceeds Received   40,000                
( custom:RemainingProceedsReceived [Extension] )                    
Advance from Related Party original discount     25,000              
( custom:AdvancedToRelatedParty [Extension] )                    
Discount Amortized     5,822              
( custom:AmortizedDiscount [Extension] )                    
Net of Unamortized Discount     19,178              
( custom:NetOfUnamortizedDiscount [Extension] )                    
Gauranteed Total of Repayment     100,000              
( custom:GauranteedTotalRepayment [Extension] )                    
Outstanding Balnce of Related Party Advance     100,000              
( custom:OutstandingBalanceDueRelatedParty [Extension] )                    
 
Table continued from above
 
Disclosure - Note Payable (Details Narrative) (USD $)              
( us-gaap:DebtDisclosureAbstract )              
  Apr. 7, 2016 Apr. 4, 2016 Apr. 1, 2016 Feb. 15, 2016 Dec. 31, 2015 Dec. 31, 2015 Sep. 28, 2015
( us-gaap:LongtermDebtTypeAxis )              
  Related Party Advances [Member] Premier Collectibles [Member] Secured Promissory Note Three [Member] Secured Promissory Note Two [Member] Secured Promissory Note [Member]   Unsecured Debt [Member]
( us-gaap:LongtermDebtTypeDomain )              
Debt face amount 75,000   75,000 62,500 120,000   150,000
( us-gaap:DebtInstrumentFaceAmount )              
Proceeds from note payable              
( us-gaap:ProceedsFromUnsecuredNotesPayable )              
Debt maturity date              
( us-gaap:DebtInstrumentMaturityDate )              
Debt interest rate   0.08 0.06 0.10 0.10   0.10
( us-gaap:DebtInstrumentInterestRateStatedPercentage )              
Interest expense              
( us-gaap:InterestExpenseDebt )              
Accrued interest           4,776  
( us-gaap:InterestPayableCurrent )              
Photographs securing note              
( custom:PhotgraphsSecuringNote [Extension] )              
Default Interest Rate             0.25
( custom:DefaultInterestRate [Extension] )              
First Tranche Received              
( custom:FirstTranche [Extension] )              
Remaining Proceeds Reveived Date              
( custom:RemainingProceedsReceivedDate [Extension] )              
Remaining Proceeds Received              
( custom:RemainingProceedsReceived [Extension] )              
Advance from Related Party original discount              
( custom:AdvancedToRelatedParty [Extension] )              
Discount Amortized              
( custom:AmortizedDiscount [Extension] )              
Net of Unamortized Discount              
( custom:NetOfUnamortizedDiscount [Extension] )              
Gauranteed Total of Repayment              
( custom:GauranteedTotalRepayment [Extension] )              
Outstanding Balnce of Related Party Advance              
( custom:OutstandingBalanceDueRelatedParty [Extension] )              
(End Disclosure - Note Payable (Details Narrative))
 
Disclosure - Notes Payable to Related Parties (Details Narrative)
Disclosure - Notes Payable to Related Parties (Details Narrative) (USD $) 3 Months Ended 6 Months Ended
( custom:NotesPayableToRelatedPartiesDetailsNarrativeAbstract [Extension] )    
  Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2015 Jun. 30, 2015 Jun. 30, 2015 Jun. 30, 2015 Jun. 30, 2015 Jun. 30, 2015
( us-gaap:LongtermDebtTypeAxis )                    
  Dino Satallante [Member] Dreamstar [Member]
Unsecured Debt -2 [Member]
Dino Satallante [Member]
Unsecured Debt [Member]
Dino Satallante [Member]
Unsecured Debt -2 [Member]
Dino Satallante [Member]
Unsecured Debt [Member]
Dino Satallante [Member]
Unsecured Debt -2 [Member]
Dreamstar [Member]
Unsecured Debt -2 [Member]
Dino Satallante [Member]
Unsecured Debt [Member]
Dino Satallante [Member]
Unsecured Debt -2 [Member]
Dreamstar [Member]
Unsecured Debt -2 [Member]
( us-gaap:LongtermDebtTypeDomain )                    
Proceeds from related party                    
( us-gaap:ProceedsFromRelatedPartyDebt )                    
Utilazation of Debt                    
( custom:UtilizationOfDebt [Extension] )                    
Repayment of related party debt                    
( us-gaap:RepaymentsOfRelatedPartyDebt )                    
Debt Effective Date                    
( custom:DebtEffectiveDate [Extension] )                    
Debt maturity date                    
( us-gaap:DebtInstrumentMaturityDate )                    
Debt interest rate                    
( us-gaap:DebtInstrumentInterestRateStatedPercentage )                    
Interest expense 4,800 579 1,214 579 1,225 605 605 2,485 1,220 1,220
( us-gaap:InterestExpenseDebt )                    
Amortization of loan fees 2,001                  
( us-gaap:AmortizationOfFinancingCosts )                    
Amortization of Loan fees after extension                    
( custom:AmortizationOfLoanFeesAfterExtension [Extension] )                    
Debt loan fees                    
( us-gaap:DeferredFinanceCostsGross )                    
Note payable related party                    
( us-gaap:NotesPayableRelatedPartiesCurrentAndNoncurrent )                    
Interest payable                    
( us-gaap:InterestPayableCurrentAndNoncurrent )                    
Otstanding Debt Due                    
( custom:OutstandingDebtDue [Extension] )                    
 
Table continued from above
 
Disclosure - Notes Payable to Related Parties (Details Narrative) (USD $)
( custom:NotesPayableToRelatedPartiesDetailsNarrativeAbstract [Extension] )
  Jun. 30, 2015 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016
( us-gaap:LongtermDebtTypeAxis )                    
    Secured Promissory Note Two [Member] Secured Promissory Note [Member] Sean Goodchild [Member] Premier Collectibles [Member] Dreamstar [Member]
Unsecured Debt -2 [Member]
Dino Satallante [Member] Dino Satallante [Member]
Unsecured Debt -2 [Member]
Dino Satallante [Member]
Unsecured Debt [Member]
SecuredDebtThreeMember
( us-gaap:LongtermDebtTypeDomain )                    
Proceeds from related party       50,000 65,000 20,500 160,000 20,500 100,000  
( us-gaap:ProceedsFromRelatedPartyDebt )                    
Utilazation of Debt             80,000      
( custom:UtilizationOfDebt [Extension] )                    
Repayment of related party debt                  
( us-gaap:RepaymentsOfRelatedPartyDebt )                    
Debt Effective Date       2016-04-15 2016-04-04 2014-09-11 2015-07-21 2014-09-11 2013-08-01  
( custom:DebtEffectiveDate [Extension] )                    
Debt maturity date   2017-12-31 2017-12-31 2017-12-15 2017-06-30 2017-12-31 2017-07-20 2017-12-31 2017-07-31 2017-12-31
( us-gaap:DebtInstrumentMaturityDate )                    
Debt interest rate                    
( us-gaap:DebtInstrumentInterestRateStatedPercentage )                    
Interest expense       633 1,239 1,158 9,600 1,158 2,091 1,089
( us-gaap:InterestExpenseDebt )                    
Amortization of loan fees             4,002      
( us-gaap:AmortizationOfFinancingCosts )                    
Amortization of Loan fees after extension                    
( custom:AmortizationOfLoanFeesAfterExtension [Extension] )                    
Debt loan fees                    
( us-gaap:DeferredFinanceCostsGross )                    
Note payable related party                    
( us-gaap:NotesPayableRelatedPartiesCurrentAndNoncurrent )                    
Interest payable                    
( us-gaap:InterestPayableCurrentAndNoncurrent )                    
Otstanding Debt Due           18,100   20,500    
( custom:OutstandingDebtDue [Extension] )                    
 
Table continued from above
 
Disclosure - Notes Payable to Related Parties (Details Narrative) (USD $)                  
( custom:NotesPayableToRelatedPartiesDetailsNarrativeAbstract [Extension] )                  
  Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Apr. 15, 2016 Apr. 4, 2016 Feb. 15, 2016 Dec. 31, 2015
( us-gaap:LongtermDebtTypeAxis )                    
    UnsecuredDebtAllMember Dino Satallante [Member]
Unsecured Debt -2 [Member]
Dino Satallante [Member] Dino Satallante [Member]
Unsecured Debt [Member]
Dreamstar [Member]
Unsecured Debt -2 [Member]
Sean Goodchild [Member] Premier Collectibles [Member] Secured Promissory Note Two [Member] Secured Promissory Note [Member]
( us-gaap:LongtermDebtTypeDomain )                    
Proceeds from related party                    
( us-gaap:ProceedsFromRelatedPartyDebt )                    
Utilazation of Debt                    
( custom:UtilizationOfDebt [Extension] )                    
Repayment of related party debt 7,479                  
( us-gaap:RepaymentsOfRelatedPartyDebt )                    
Debt Effective Date                    
( custom:DebtEffectiveDate [Extension] )                    
Debt maturity date                    
( us-gaap:DebtInstrumentMaturityDate )                    
Debt interest rate     0.06 0.12 0.05 0.06 0.06 0.08 0.10 0.10
( us-gaap:DebtInstrumentInterestRateStatedPercentage )                    
Interest expense                    
( us-gaap:InterestExpenseDebt )                    
Amortization of loan fees                    
( us-gaap:AmortizationOfFinancingCosts )                    
Amortization of Loan fees after extension                    
( custom:AmortizationOfLoanFeesAfterExtension [Extension] )                    
Debt loan fees       8,000            
( us-gaap:DeferredFinanceCostsGross )                    
Note payable related party     20,500   83,664 18,100        
( us-gaap:NotesPayableRelatedPartiesCurrentAndNoncurrent )                    
Interest payable   6,338                
( us-gaap:InterestPayableCurrentAndNoncurrent )                    
Otstanding Debt Due                    
( custom:OutstandingDebtDue [Extension] )                    
 
Table continued from above
 
Disclosure - Notes Payable to Related Parties (Details Narrative) (USD $)    
( custom:NotesPayableToRelatedPartiesDetailsNarrativeAbstract [Extension] )    
  Dec. 31, 2015 Jun. 30, 2015
( us-gaap:LongtermDebtTypeAxis )    
  Dino Satallante [Member]
Unsecured Debt [Member]
UnsecuredDebtAllMember
( us-gaap:LongtermDebtTypeDomain )    
Proceeds from related party    
( us-gaap:ProceedsFromRelatedPartyDebt )    
Utilazation of Debt    
( custom:UtilizationOfDebt [Extension] )    
Repayment of related party debt    
( us-gaap:RepaymentsOfRelatedPartyDebt )    
Debt Effective Date    
( custom:DebtEffectiveDate [Extension] )    
Debt maturity date    
( us-gaap:DebtInstrumentMaturityDate )    
Debt interest rate    
( us-gaap:DebtInstrumentInterestRateStatedPercentage )    
Interest expense    
( us-gaap:InterestExpenseDebt )    
Amortization of loan fees    
( us-gaap:AmortizationOfFinancingCosts )    
Amortization of Loan fees after extension    
( custom:AmortizationOfLoanFeesAfterExtension [Extension] )    
Debt loan fees    
( us-gaap:DeferredFinanceCostsGross )    
Note payable related party 100,000  
( us-gaap:NotesPayableRelatedPartiesCurrentAndNoncurrent )    
Interest payable   2,381
( us-gaap:InterestPayableCurrentAndNoncurrent )    
Otstanding Debt Due    
( custom:OutstandingDebtDue [Extension] )    
(End Disclosure - Notes Payable to Related Parties (Details Narrative))
 
Disclosure - Related Party Transactions (Details)
Disclosure - Related Party Transactions (Details) (USD $)                    
( custom:RelatedPartyTransactionsDetailsAbstract [Extension] )                    
  Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Jun. 30, 2016 Dec. 31, 2015 Dec. 31, 2015 Dec. 31, 2015 Dec. 31, 2015 Dec. 31, 2015
( us-gaap:RelatedPartyTransactionsByRelatedPartyAxis )                    
  Klaus Moeller [Member] Scheinman [Member] Premier Collectibles [Member] MSN Holding Co. [Member]   Klaus Moeller [Member] MSN Holding Co. [Member] Premier Collectibles [Member] Scheinman [Member]  
( us-gaap:RelatedPartyDomain )                    
Due from related parties 91,000         91,000        
( us-gaap:DueFromRelatedPartiesCurrent )                    
Due to related parties   3,000 33,085 12,999 49,084   12,999 33,085 46,084
( us-gaap:DueToRelatedPartiesCurrent )                    
Totals Due from Related Parties         91,000         91,000
( custom:TotalsDueToRelatedPartiesOne [Extension] )                    
Totals Due to Related Parties         49,084