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Discontinued Operations
 12 Months Ended
Dec. 31, 2014
Discontinued Operations [Abstract]  
DISCONTINUED OPERATIONS:

3. DISCONTINUED OPERATIONS:

 

During 2013, the Company decided to concentrate its efforts on the operations of FlexShopper and subsequently on April 30, 2014, Anchor entered into an Asset Purchase and Sale Agreement (the “Purchase Agreement”) with a Bank, pursuant to which Anchor sold to the Bank substantially all of its assets (the “Anchor Assets”), consisting primarily of its factoring portfolio (the “Portfolio Accounts”). The purchase price for the Anchor Assets was equal to (1) approximately $4,445,000 which represented 110% of the total funds outstanding associated with the Portfolio Accounts which resulted in a gain of approximately $445,000 plus (2) an amount equal to 50% of the factoring fee and interest income earned by the Portfolio Accounts during the 12 month period following acquisition (“Earnout Payments”). The Earnout Payments totaled $342,541 for the period ended December 31, 2014. The sale of the Anchor Assets was made in a series of closings through June 16, 2014. In connection with each closing, Anchor used the proceeds thereof to pay the Bank all amounts due for factor advances associated with the Portfolio Accounts acquired pursuant to such closing under Anchor’s Rediscount Facility Agreement with the Bank dated November 30, 2011 (the “Rediscount Facility Agreement”). In accordance with the Purchase Agreement, following the final closing thereunder all obligations of Anchor under the Rediscount Facility Agreement (and the associated Validity Warranty) were paid and satisfied in full and the agreement was terminated. Anchor recorded a gain of $788,015 on the sale of these assets including the earnout payments received through December 31, 2014 which is included in income from discontinued operations. Future contingent earnout payments will be recorded as income when earned.

 

The assets and liabilities of the discontinued operations are presented separately under the captions “Assets of discontinued operations” and “Liabilities of discontinued operations” in the accompanying consolidated Balance Sheets at December 31, 2014 and December 31, 2013 and consist of the following:

 

    December 31, 2014     December 31, 2013  
Assets of discontinued operations:                
 Retained interest in purchased accounts receivable   $ 6,500     $ 4,966,338  
 Earned but uncollected fees     -       141,077  
 Due from client     -       256,313  
    $ 6,500     $ 5,363,728  
                 
 
Liabilities of discontinued operations:		                
Accounts payable   $ -     $ 26,966  
Accrued expenses     7,626       51,719  
Due to financial institution     -       3,240,942  
Deferred revenue     -       12,328  
    $ 7,626     $ 3,331,955  

 

Major classes of income and expenses related to income from discontinued operations are as follows:

  

    Twelve months ended  
    December 31, 2014     December 31, 2013  
             
 Finance revenues   $ 735,357     $ 2,364,128  
 Interest expense and other fees -financial institution     (109,878 )     (385,918 )
 Benefit (Provision) for credit losses     24,904       (62,603 )
 Net finance revenues     650,383       1,915,607  
 Operating expenses     (446,733 )     (1,953,814 )
 Other income     153,453       -  
      357,103       (38,207 )
 Gain on sale of discontinued assets     788,015       -  
 Income (loss) from discontinued operations before income taxes   $ 1,145,118     $ (38,207 )