0001318482-13-000003.txt : 20130515 0001318482-13-000003.hdr.sgml : 20130515 20130515104758 ACCESSION NUMBER: 0001318482-13-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20130331 FILED AS OF DATE: 20130515 DATE AS OF CHANGE: 20130515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BINGO.COM LTD. CENTRAL INDEX KEY: 0001318482 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AMUSEMENT & RECREATION SERVICES [7900] IRS NUMBER: 000000000 STATE OF INCORPORATION: Y6 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-120120-01 FILM NUMBER: 13844439 BUSINESS ADDRESS: STREET 1: HANSA BANK BUILDING STREET 2: GROUND FLOOR, LANSOME ROAD CITY: THE VALLEY STATE: 1A ZIP: AI2640 BUSINESS PHONE: 264 461 2646 MAIL ADDRESS: STREET 1: HANSA BANK BUILDING STREET 2: GROUND FLOOR, LANSOME ROAD CITY: THE VALLEY STATE: 1A ZIP: AI2640 10-Q 1 bclqq113.htm BINGO.COM, LTD. Q1 2013 FORM 10-Q UNITED STATES SECURITIES AND EXC

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 

FORM 10-Q

(Mark one)

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

For the quarterly period ended March 31, 2013

[    ]      [    ]     TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE EXCHANGE ACT
                        For the transition period from _____________ to ____________

Commission File Number:  333-120120-01

        BINGO.COM, LTD. 

(Exact name of small business issuer as specified in its charter)

 

ANGUILLA 

 

98-0206369

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

National Bank of Anguilla Corporate Building, 1St Floor

St Mary's Road, TV1 02P

The Valley, Anguilla, B.W.I

(Address of principal executive offices) 

 

(264) 461-2646

(Issuer's telephone number)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

                                                                                            Yes [ X ]      No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer  [ ]                                                    Accelerated filer                 [  ]

Non-accelerated filer    [ ]                                                   Smaller reporting company  [X]

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

APPLICABLE ONLY TO CORPORATE ISSUERS The number of outstanding shares of the Issuer's common stock, no par value per share, was 66,877,703 as of May 15, 2013.

 

 BINGO.COM, LTD.

QUARTERLY REPORT ON FORM 10-Q

FOR THE PERIOD ENDED MARCH 31, 2013

 

TABLE OF CONTENTS

PAGE
PART I - FINANCIAL INFORMATION 2
ITEM 1. Financial Statements   2
Consolidated Balance Sheets 2
Consolidated Statements of Operations and Comprehensive Loss  3
Consolidated Statements of Stockholders' Equity  4
Consolidated Statements of Cash Flows 5
Notes to the Consolidated Financial Statements 6
ITEM 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 17
ITEM 4T.  Controls and Procedures. 22
PART II - OTHER INFORMATION 24
ITEM 1. Legal Proceedings  24
ITEM 2.  Unregistered Sales of Equity Securities and Use of Proceeds 24
ITEM 3. Defaults Upon Senior Securities  24
ITEM 4. Submission of Matters to a Vote of Security Holders 24
ITEM 5. Other Information  24
ITEM 6. Exhibits and reports on Form 8-K 25
SIGNATURES 27
EXHIBITS 28
CERTIFICATIONS 28
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002. 30

Page 1

PART I - FINANCIAL INFORMATION

ITEM 1.                      Financial Statements.

BINGO.COM, LTD. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

As at

 

March 31, 2013

 

 

December 31, 2012

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

   Cash

$

550,997

 

$

876,004

   Accounts receivable less allowance for doubtful

   accounts $nil  (December 31, 2012 - $38,736)

 

158,987

 

 

364,184

   Prepaid expenses

 

344,430

 

 

506,133

Total Current Assets

 

1,054,414

 

 

1,746,321

 

 

 

 

 

 

Equipment, net

 

11,056

 

 

10,280

 

 

 

 

 

 

Other assets (Note 4)

 

596,525

 

 

348,212

 

 

 

 

 

 

Domain name rights and intangible assets (Note 5)

 

1,257,241

 

 

1,257,241

 

 

 

 

 

 

Deferred tax asset, less valuation allowance of $77,636 (December 31, 2012 - $79,681) (Note 8)

 

 

 

 

 

 

 

 

 

Total Assets

$

2,919,236

 

$

3,362,054

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

   Accounts payable

$

36,972

 

$

24,465

   Accrued liabilities

 

75,578

 

 

65,593

   Accounts payable and accrued liabilities - related

   party (Note 9)

 

21,429

 

 

15,550

Total Current Liabilities

 

133,979

 

 

105,608

 

 

 

 

 

 

Commitments (Note 7)

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity (Note 6):

 

 

 

 

 

   Common stock, no par value, unlimited shares

   authorized, 65,877,703 shares issued and outstanding

   (December 31, 2012 - 65,877,703)

 

19,197,690

 

 

19,197,690

   Accumulated deficit

 

(16,437,013)

 

 

(15,965,824)

   Accumulated other comprehensive income:

     Foreign currency translation adjustment

 

24,580

 

 

24,580

Total Stockholders' Equity

 

2,785,257

 

 

3,256,446

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity

$

2,919,236

 

$

3,362,054

             

See accompanying notes to the consolidated financial statements.

 Page 2

BINGO.COM, LTD. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Loss

For Periods Ended March 31, 2013 and 2012

(Unaudited)

 

 

 

March 31,

2013

 

 

March 31,

2012

 

 

 

 

 

 

 

Advertising revenue

 

$

7,439

 

$

19,382

Gaming revenue

 

 

582,760

 

 

386,925

Total revenue

 

 

590,199

 

 

406,307

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

   Depreciation and amortization

 

 

807

 

 

1,180

   Directors fees

 

 

2,500

 

 

2,500

   General and administrative

 

 

80,151

 

 

66,242

   Salaries, wages, consultants and benefits

 

 

72,746

 

 

103,107

   Selling and marketing

 

 

868,789

 

 

298,339

   Stock-based compensation

 

 

-

 

 

60,005

Total operating expenses

 

 

1,024,993

 

 

531,373

 

 

 

 

 

 

 

Loss before other income (expense) and income taxes

 

 

(434,794)

 

 

(125,066)

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

   Foreign exchange gain (loss)

 

 

(36,800)

 

 

39,647

   Interest and other income

 

 

405

 

 

544

 

 

 

 

 

 

 

Loss before income taxes

 

 

(471,189)

 

 

(84,875)

 

 

 

 

 

 

 

Income tax expense

 

 

-

 

 

(60)

 

 

 

 

 

 

 

Net loss

 

$

(471,189)

 

$

(84,935)

 

 

 

 

 

 

 

Comprehensive income (loss)

 

 

-

 

 

-

 

 

 

 

 

 

 

Comprehensive loss

 

$

(471,189)

 

$

(84,935)

 

 

 

 

 

 

 

Net loss per common share, basic

 

$

(0.01)

 

$

(0.00)

Net loss per common share, diluted

 

$

(0.01)

 

$

(0.00)

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

 

65,877,703

 

 

63,877,703

Weighted average common shares outstanding, diluted

 

 

65,877,703

 

 

63,877,703

See accompanying notes to the consolidated financial statements.

Page 3

BINGO.COM, LTD. and Subsidiaries

Consolidated Statements of Stockholders' Equity 

For the period ended March 31, 2013

(Unaudited)

 

Common stock

 

Accumulated Other Comprehensive income

 

 

 

Shares

Amount

Accumulated Deficit

Foreign currency translation adjustment

Total Stockholders' Equity

Balance, December 31, 2012

65,877,703

$19,197,690

$(15,965,824)

$ 24,580

$3,256,446

 

 

 

 

 

 

   Net loss

-

-

(471,189)

-

(471,189)

Balance, March 31, 2013

65,877,703

$19,197,690

$ (16,437,013)

$ 24,580

$ 2,785,257

       

 

 

See accompanying notes to the consolidated financial statements.

Page 4

BINGO.COM, LTD. and Subsidiaries

Consolidated Statements of Cash Flows

Three Months ended March 31, 2013 and 2012

(Unaudited)

 

 

 

2013

 

2012

Cash flows from operating activities:

 

 

 

 

 

   Net loss

 

$

(471,189)

$

(84,935)

   Adjustments to reconcile net loss to net cash

   used in operating activities:

 

 

 

 

 

      Depreciation and amortization

 

 

807

 

1,180

      Stock-based compensation

 

 

-

 

60,005

   Changes in operating assets and liabilities:

 

 

 

 

 

      Accounts receivable

 

 

205,197

 

(156,222)

      Prepaid expenses

 

 

161,703

 

37,494

      Other assets

 

 

239

 

(285)

      Accounts payable and accrued liabilities

 

 

28,371

 

29,446

   Net cash used in operating activities

 

 

(74,872)

 

(113,317)

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Acquisition of equipment

 

 

(1,583)

 

(208)

   Software development

 

 

(248,552)

 

-

   Net cash used in investing activities

 

 

(250,135)

 

(208)

 

 

 

 

 

 

Change in cash

 

 

(325,007)

 

(113,525)

 

 

 

 

 

 

Cash, beginning of period

 

 

876,004

 

787,524

Cash, end of period

 

$

550,997

$

673,999

 

 

 

 

 

 

Supplementary information:

 

 

 

 

 

   Interest paid

 

$

  - 

$

  - 

   Income taxes paid

 

$

-

$

1,363

Non-cash financing activity

 

$

-

$

-

Non-cash investing activity

 

$

-

$

-

 

 

 

 

 

 

See accompanying notes to the consolidated financial statements.
 

 Page 5

BINGO.COM, LTD. and Subsidiaries

Notes to Consolidated Financial Statements

Three Months ended March 31, 2013 and 2012

(Unaudited)

   

1.         Basis of Presentation:

The accompanying unaudited financial statements have been prepared by Bingo.com, Ltd. ("the Company") in conformity with accounting principles generally accepted in the United States of America ("US GAAP") applicable to interim financial information and with the rules and regulations of the United States Securities and Exchange Commission.  Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed, or omitted, pursuant to such rules and regulations.  In the opinion of management, the unaudited interim financial statements include all adjustments necessary for the fair presentation of the results of the interim periods presented.  All adjustments are of a normal recurring nature, except as otherwise noted below.  These financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2012, included in the Company's Annual Report on Form 10-K, filed March 29, 2013, with the Securities and Exchange Commission.  The results of operations for the interim periods are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year.

Continuing operations

These consolidated financial statements have been prepared on the going concern basis, which presumes the realization of assets and the settlement of liabilities in the normal course of operations.  The application of the going concern basis is dependent upon the Company achieving profitable operations to generate sufficient cash flows to fund continued operations, or, in the absence of adequate cash flows from operations, obtaining additional financing.  The Company has reported losses from operations for the quarter ended March 31, 2013 and 2012, and has an accumulated deficit of $16,437,013 as at March 31, 2013.  This raises substantial doubt about the Company's ability to continue as a going concern.

In view of the matters described in the preceding paragraph, recoverability of a major portion of the recorded asset amounts and settlement of the liability amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

Management continues to review operations in order to identify additional strategies designed to generate cash flow, improve the Company's financial position, and enable the timely discharge of the Company's obligations.  If management is unable to identify sources of additional cash flow in the short term, it may be required to further reduce or limit operations.

 Page 6

BINGO.COM, LTD. and Subsidiaries

Notes to Consolidated Financial Statements

Three Months ended March 31, 2013 and 2012

(Unaudited)

   

2.         Summary of significant accounting policies:

(a)     Basis of presentation:

These consolidated financial statements have been prepared in accordance with U.S. GAAP. The financial statements include the accounts of the Company's wholly-owned subsidiaries, English Bay Office Management Limited (registered in British Columbia, Canada), Bingo.com N.V. (registered in Curacao, Netherlands Antilles), Coral Reef Marketing Inc. (registered in Anguilla), Bingo.com (Antigua) Inc., Bingo.com (Wyoming) Inc., Bingo Acquisition Corp, Shoal Media Inc. (registered in Anguilla), and the 99% owned subsidiary, Bingo.com (UK) plc. (registered in the United Kingdom). Shoal Media Inc. was purchased on January 1, 2013. All inter-company balances and transactions have been eliminated in the consolidated financial statements.

(b)    Use of estimates:

The preparation of consolidated financial statements in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and recognized revenues and expenses for the reporting periods.

Significant areas requiring the use of estimates and judgment include the valuation of long-lived assets, software development, the collectability of accounts receivable, revenue recognition and the valuation of deferred tax assets.  Actual results may differ significantly from these estimates.

Although the Company believes that its approach to estimates and judgments as described herein is reasonable, actual results could differ and the Company may be exposed to increases or decreases in revenue that could be material.

(c)   Revenue recognition:

Gaming revenues have been recognized on the basis of total dollars wagered, less commissions on all games less all winnings payable to players.

Advertising revenues have been recognized as the advertising campaign or impressions and clicks are made on the website and when collection of the amounts are reasonably assured. Cash received in advance of the advertising campaigns or impressions and clicks are recorded under unearned revenue.

(d)    Foreign currency:

The consolidated financial statements are presented in United States dollars, the functional currency of the Company and its subsidiaries. The Company accounts for foreign currency transactions and translation of foreign currency financial statements under Statement ASC 830, Foreign Currency Matters. Transaction amounts denominated in foreign currencies are translated at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities are adjusted at each balance sheet date to reflect the exchange rate at that date. Non-monetary assets and liabilities are translated at the exchange rate on the original transaction date. Gains and losses from restatement of foreign currency monetary and non-monetary assets and

 Page 7

BINGO.COM, LTD. and Subsidiaries

Notes to Consolidated Financial Statements

Three Months ended March 31, 2013 and 2012

(Unaudited)

   

2.         Summary of significant accounting policies: (Continued)

(d)    Foreign currency: (Continued)

 liabilities are included in income. Revenues and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in earnings.

(e)  Impairment of long-lived assets and long-lived assets to be disposed of:

The Company accounts for long-lived assets in accordance with the provisions of ASC 360, Property, Plant and Equipment and ASC 350, Intangibles-Goodwill and Others. During the years presented, the only long-lived assets reported on the Company's consolidated balance sheet are equipment, other assets, and domain name rights.  These provisions require that long-lived assets and certain identifiable recorded intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. 

If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.  Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell.

(f)  Domain name and intangible assets:

The Company has capitalized the cost of the purchase of the domain name Bingo.com and was amortizing the cost over five years from the date of commencement of operations. In 2002, the Company suspended the amortization of the domain name cost in accordance with ASC 350, where companies are no longer required to amortize indefinite life assets but instead test the indefinite life intangible asset for impairment at least annually. The capitalized amount is based on the net present value of the minimum payments permitted under the terms of the purchase agreement. The domain name is tested for impairment by comparing the future cash flows of the domain name with its carrying value. The Company determined that as a result of level 3 unobservable inputs in accordance with ASC 820, Fair Value Measurements and Disclosures, that the fair value of the domain name exceeded the carrying value and therefore no impairment existed for the periods presented.

(g)  Software Development Costs: 

Software development costs incurred in the research and development of new software products and enhancements to existing software products for external use are expensed as incurred until technological feasibility has been established. After technological feasibility is established, any software development costs are capitalized and amortized on a straight-line basis over the estimated economic life of the related product. The Company performs an annual review of the estimated economic life and the recoverability of such capitalized software costs. If a determination is made that capitalized amounts are not recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off.

 Page 8

BINGO.COM, LTD. and Subsidiaries

Notes to Consolidated Financial Statements

Three Months ended March 31, 2013 and 2012

(Unaudited)

   

2.         Summary of significant accounting policies: (Continued)

(h)  New accounting pronouncements and changes in accounting policy:

In July 2012, the FASB issued ASU 2012-02, Intangibles- Goodwill or Other (Topic 350): Testing Indefinite-Living Tangible Assets for Impairment. ASU 2012-02 simplifies the guidance for testing the decline in the realizable value (impairment) of indefinite-lived intangible assets other than goodwill by allowing an organization the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. An organization electing to perform a qualitative assessment is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the organization determines, based on a qualitative assessment, that it is "more likely than not" that the asset is impaired. The amendments in this Update are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of ASU 2012-02 did not have a material impact on our results of operations or our financial position.

In October 2012, the FASB issued ASU 2012-04, Technical Corrections and Improvements. ASU 2012-04 contains amendments to clarify the ASC, correct unintended application of guidance, or make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Additionally, the amendments are intended to make the ASC easier to understand and the fair value measurement guidance easier to apply by eliminating inconsistencies and providing needed clarifications. The amendments that do not have transition guidance were effective upon issuance. The amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. The adoption of ASU 2012-04 did not have a material impact on our results of operations or our financial position.

In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income   (ASU 2013-02), which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional details about those amounts.  For public entities, the amendments are effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on our results of operations or our financial position.

 Page 9

BINGO.COM, LTD. and Subsidiaries

Notes to Consolidated Financial Statements

Three Months ended March 31, 2013 and 2012

(Unaudited)

   

2.         Summary of significant accounting policies: (Continued)

    (h)  New accounting pronouncements and changes in accounting policy: (Continued)

In March 2013, the FASB issued ASU 2013-05, Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity , which provides guidance on releasing cumulative translation adjustments out of accumulated comprehensive income into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. This guidance is effective prospectively for interim and annual periods beginning on January 1, 2014. Early adoption is permitted. As the Company has not ceased to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity, the adoption of this guidance is not expected to have a significant impact on the Company's consolidated financial position, results of operations, or cash flows.

In April 2013, the FASB issued ASU 2013-07, requiring financial statements to be prepared using the liquidation basis of accounting when liquidation is "imminent." Liquidation is considered imminent when the likelihood is remote that the organization will return from liquidation and either: (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties; or (b) a plan for liquidation is being imposed by other forces (e.g., involuntary bankruptcy). In cases where a plan for liquidation was specified in the organization's governing documents at inception (e.g., limited-life entities), the organization should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified in the organization's governing documents. The ASU requires financial statements prepared using the liquidation basis to present relevant information about a company's resources and obligations in liquidation, including: (a) The organization's assets measured at the amount of the expected cash proceeds from liquidation, including any items it had not previously recognized under U.S. GAAP, that it expects to either sell in liquidation or use in settling liabilities (e.g., trademarks); (b) The organization's liabilities as recognized and measured in accordance with existing guidance that applies to those liabilities; (c) Accrual of the costs it expects to incur and the income it expects to earn during liquidation, including any anticipated disposal costs. The amendments in ASU 2013-07 are effective for interim and annual reporting periods beginning after December 15, 2013, with early adoption permitted. Management does not expect the implementation of this update to have an effect on the Company's consolidated financial statements.

There have been no other recent accounting standards, or changes in accounting standards, during the three months ended March 31, 2013, as compared to the recent accounting standards described in the Annual Report, that are of material significance, or have potential material significance, to us.

 Page 10

BINGO.COM, LTD. and Subsidiaries

Notes to Consolidated Financial Statements

Three Months ended March 31, 2013 and 2012

(Unaudited)

   

2.         Summary of significant accounting policies: (Continued)

(i)   Financial instruments:

 (i)  Fair values:

The fair value of accounts receivable, accounts payable, accrued liabilities and accounts payable and accrued liabilities - related party approximate their financial statement carrying amounts due to the short-term maturities of these instruments.  Cash is carried at fair value using a level 1 fair value measurement.

In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset.  The Company's cash was measured using Level 1 inputs.

 (ii)  Foreign currency risk:

The Company operates internationally, which gives rise to the risk that cash flows may be adversely impacted by exchange rate fluctuations.  The Company has not entered into any forward exchange contracts or other derivative instrument to hedge against foreign exchange risk.

(j)    Reclassification

Certain comparative figures have been reclassified to conform to the presentation adopted in the current year.

3.         Acquisition of subsidiary

Effective January 1, 2013, the Company acquired 100% of the share capital of Shoal Media Inc., an Anguillian corporation from Mr. T. M. Williams for $6,820. The Company accounted for the transaction as an asset acquisition. The net assets of Shoal Media Inc. were as follows:

 

 

 

January 1, 2013

 

 

 

Assets

 

 

Current assets:

 

 

Cash

$

5,590

Total Current Assets

$

5,590

 

 

 

Liabilities

 

 

Current liabilities:

 

 

   Accounts payable

$

-

Total Current Liabilities

$

-

 

 

 

Net Assets

$

5,590

 

 Page 11

BINGO.COM, LTD. and Subsidiaries

Notes to Consolidated Financial Statements

Three Months ended March 31, 2013 and 2012

(Unaudited)

   

4.    Other assets:

During the year ended December 31, 2012, the Company commenced development of a social bingo game. The Company has capitalized $584,457 (December 31, 2012 - $335,905) as at March 31, 2013. The Company has not yet begun to amortize on these capitalized development costs. Other assets also include $12,068 (December 31, 2012 - $12,307) for security deposits.

5.    Domain name rights and intangible assets:

The rights to use the domain name Bingo.com were acquired in January of 1999 for a cash payment of $200,000 and the issuance of 500,000 shares of common stock of the Company at a value of $2.00 per share. The agreement was signed with Bingo, Inc., an unrelated party at the date of signing of the agreement. Under the terms of the agreement, the Company was required to make quarterly domain name purchase payments to the vendor based on 4% of annual gross revenue (as defined in the agreement), with total minimum payments of $1,100,000 in the first three years, including the initial cash payment, over the 99 year period ending December 31, 2098. These minimum payment commitments were completed on June 30, 2002. During the year ended December 31, 2002, the agreement was amended so that the remaining domain name purchase payments to the vendor were made monthly, based on 4% of the preceding month's gross revenue. During the year ended December 31, 2010, the Company purchased the remaining Domain Name payments for $900,000, with the issuance of 6,000,000 common shares of the Company, at a value of $0.15 per share. In accordance with ASC Topic 420-10-25-11, the Company expensed the Domain Name Purchase payments of $900,000 during the year ended December 31, 2010.

Domain name rights have been capitalized on the balance sheet based on the present value of the future minimum purchase payments. In 2002, the Company suspended the amortization of the domain name in accordance with ASC 350, Intangibles - Goodwill and Others, where companies are no longer permitted to amortize indefinite life intangible assets.

March 31, 2013

 

Cost

 

Accumulated amortization

 

Net book

Value

 

 

 

 

 

 

 

Domain name rights

$

1,934,500

$

677,259

$

1,257,241

 

December 31, 2012

 

Cost

 

Accumulated amortization

 

Net book

Value

 

 

 

 

 

 

 

Domain name rights

$

1,934,500

$

677,259

$

1,257,241

6.    Stockholder's Equity:

No options were granted or exercised during the period ended March 31, 2013.

During the quarter ended March 31, 2013, 275,000 options with an exercise price of $0.33 per share expired unexercised.

Subsequent to the quarter ended March 31, 2013, the Company completed a private placement for 1,000,000 shares at $0.45 per share for proceeds of $450,000.

 Page 12

BINGO.COM, LTD. and Subsidiaries

Notes to Consolidated Financial Statements

Three Months ended March 31, 2013 and 2012

(Unaudited)

   

7.   Commitments:

The Company leases office facilities in Vancouver, British Columbia, Canada, The Valley, Anguilla, British West Indies and London, United Kingdom. These office facilities are leased under operating lease agreements. The Canadian operating lease expires on April 30, 2014. The Anguillan operating lease expired on April 1, 2011 but unless 3 month's notice is given it automatically renews for a future 3 months until notice is given. The United Kingdom lease is leased from Bingo, Inc. This lease is for 30 days and is automatically renewed with a 30 day notice period.

Minimum lease payments under these operating leases are approximately as follows:

 

 

 

2013

$

22,010

2014

 

6,071

2015

 

-

 

 

 

The Company paid rent expense totaling $30,581 for the quarter ended March 31, 2013 (March 31, 2012 - $18,387). 

The Company has a management consulting agreement with T.M. Williams (Row), Inc., an Anguilla incorporated company, and Mr. Williams, a related party, for a consultancy payment of $11,666 per month payable in arrears. This contract is for the provision of services by Mr. Williams as Executive Chairman of the Company.

8.    Income Taxes

Bingo.com, Ltd. is domiciled in the tax-free jurisdiction of Anguilla, British West Indies. However certain of the Company's subsidiaries incur income taxation.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at March 31, 2013, and December 31, 2012, are presented below:

 

 

March 31, 2013

 

December 31, 2012

Deferred tax assets:

 

 

 

 

   Net operating loss carry forwards

$

77,636

$

79,681

 

 

 

 

 

   Valuation Allowance

 

(77,636)

 

(79,681)

 

$

$

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible.

Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in assessing the realizability of deferred tax assets.

 Page 13

BINGO.COM, LTD. and Subsidiaries

Notes to Consolidated Financial Statements

Three Months ended March 31, 2013 and 2012

(Unaudited)

   

9.    Related Party Transactions

The Company has a liability of $2,147 (December 31, 2012 - $nil), to a company owned by a current director and officer of the Company for payment of services rendered and expenses incurred by the current director and officer of the Company.

The Company has a liability of $9,004 (December 31, 2012 - $384) to a current director and officer of the Company for expenses incurred by a current director and officer of the Company.

The Company has a liability to Bingo, Inc. for rental of the UK office of $nil (December 31, 2012 - $11,270) for rental for the quarter ended March 31, 2013 of $23,302 (Quarter ended March 31, 2012 - $11,782).

The Company has a liability of $3,502 (December 31, 2012 - $1,002), to the independent directors of the Company for payment of services rendered. The Company incurred independent directors fees of $2,500 for the quarter ended March 31, 2013 (Quarter ended March 31, 2012 - $2,500).

The Company has a liability of $6,777 (December 31, 2012 - $2,894), to an officer of the Company for payment of services rendered and expenses incurred of $20,523 during the quarter ended March 31, 2013 (Quarter ended March 31, 2012 - $19,280), by the officer of the Company.

The related party transactions are in the normal course of operations and were measured at the exchange amount, which is the amount of consideration established and agreed to by the related party.

10. Segmented information:

Revenue

The Company operates in one reportable business segment, the business of marketing games and entertainment based principally on the game of bingo through its Internet portal, Bingo.com.   Bingo.com is supported by the revenue generated from the deposits received for the games for money and by selling advertising on the website.  The revenue for the quarters ended March 31, 2013 and 2012, has been derived primarily from the revenue generated from the deposits received for the games for money.

 Page 14

BINGO.COM, LTD. and Subsidiaries

Notes to Consolidated Financial Statements

Three Months ended March 31, 2013 and 2012

(Unaudited)

   

10. Segmented information: (Continued)

The Company had the following revenue by geographical region.

 

 

 

Three Months ended March 31, 2013

 

Three Months ended March 31, 2012

 

 

 

 

 

 

Gaming revenue

 

 

 

 

 

Western Europe

 

$

58,686

$

70,577

Central, Eastern and Southern Europe

 

 

5,534

 

9,642

Nordics

 

 

517,763

 

299,133

Other

 

 

777

 

7,573

Total gaming revenue

 

$

582,760

$

386,925

 

 

 

 

 

 

Advertising revenue

 

 

 

 

 

Nordics

 

$

79

$

1,711

Other

 

 

7,360

 

17,671

Total advertising revenue

 

$

7,439

$

19,382

 

 

 

 

 

 

Total revenue

 

 

 

 

 

Western Europe

 

$

58,686

$

70,577

Central, Eastern and Southern Europe

 

 

5,534

 

9,642

Nordics

 

 

517,842

 

300,844

Other

 

 

8,137

 

25,244

Total revenue

 

$

590,199

$

406,307

Equipment

The Company's equipment is located as follows:

Net Book Value

 

March 31, 2013

 

December 31, 2012

 

 

 

 

 

Anguilla

$

800

$

872

Canada

 

5,529

 

5,978

United Kingdom

 

2,619

 

1,131

United States of America

 

2,108

 

2,299

 

$

11,056

$

10,280

11.       Concentrations

Major customers

For the quarter ended March 31, 2013, there was no single player on the gaming site who had wagered more than 10% of the total gaming revenue. The Company is reliant on Unibet, a related party, to provide contracted services pursuant to its Partner Program. The Company has a receivable from Unibet of $152,627 as at March 31, 2013 (December 31, 2012 - $360,284).

During the quarter ended March 31, 2013 and 2012, the Company offered limited advertising. Therefore there were no advertising sales representing more than 10% of the total sales.

 Page 15

BINGO.COM, LTD. and Subsidiaries

Notes to Consolidated Financial Statements

Three Months ended March 31, 2013 and 2012

(Unaudited)

   

12.  Concentrations of Credit Risk:

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable.  The Company places its cash with high quality financial institutions and limits the amount of credit exposure with any one institution.

The Company currently maintains a substantial portion of its day-to-day operating cash balances at financial institutions. At March 31, 2013, the Company had total cash balances of $550,997 (December 31, 2012 - $876,004) at financial institutions, where $214,097 (December 31, 2012 - $491,300) is in excess of federally insured limits. The Company has concentrations of credit risk with respect to accounts receivable, as large amounts of its accounts receivable are concentrated geographically in the United Kingdom amongst a small number of customers.

As of March 31, 2013, the Company had one customer totaling $152,627, who accounted for total accounts receivable greater than 10%. As of December 31, 2012, the Company had one customer, totaling $360,284 who accounted for greater than 10% of the total accounts receivable.

The Company controls credit risk through monitoring procedures and receiving prepayments of cash for services rendered.  The Company performs credit evaluations of its customers but generally does not require collateral to support accounts receivable.

 Page 16

 ITEM 2.        Management's Discussion and Analysis of Financial Condition and Results of Operations

The following Management's Discussion and Analysis or Plan of Operation contains forward-looking statements that involve risks and uncertainties, as described below.  Bingo.com, Ltd.'s (the "Company", "we", or "us") actual results could differ materially from those anticipated in these forward-looking statements.  The following discussion should be read in conjunction with the unaudited interim consolidated financial statements and notes thereto included in Part I - Item 1 of this Quarterly Report, and the audited consolidated financial statements and notes thereto and the Management Discussion and Analysis or plan of Operations included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012.

FORWARD LOOKING STATEMENTS

All statements contained in this Quarterly Report on Form 10-Q and the documents incorporated herein by reference, as well as statements made in press releases and oral statements that may be made by us or by officers, directors or employees acting on our behalf, that are not statements of historical fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause our actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Readers should consider statements that include the terms "believe," "belief," "expect," "plan," "anticipate," "intend" or the like to be uncertain and forward-looking. In addition, all statements, trends, analyses and other information contained in this report relative to trends in net sales, gross margin, anticipated expense levels and liquidity and capital resources, constitute forward-looking statements. Particular attention should be paid to the facts of our limited operating history, the unpredictability of our future revenues, our need for and the availability of capital resources, the evolving nature of our business model, and the risks associated with systems development, management of growth and business expansion.  Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. All cautionary statements made herein should be read as being applicable to all forward-looking statements wherever they appear.  Readers should consider the risks more fully described in our Annual Report on Form 10-K for the year ended December 31, 2012, filed with the Securities and Exchange Commission (the "SEC") and should not place undue reliance on any forward-looking statements.

 Page 17

OVERVIEW

Bingo.com, Ltd. (the "Company") is in the business of owning and marketing a bingo based entertainment website that provides a variety of Internet games plus other forms of entertainment, including an online community, chat rooms, and more. Located at www.bingo.com, the Company has built one of the leading bingo portals on the Internet. The Bingo.com website has attracted millions of visitors from over 200 countries. The level of Internet traffic that arrives at Bingo.com has a direct impact on our revenues as, generally, the greater the Internet traffic, the greater the amount of gaming or advertising revenue received.

The Company generates its main source of revenue from players who deposit funds into their Bingo.com accounts and play games for money.  An additional source of revenue comes from selling advertising on the website to other companies who wish to advertise their products to our user demographic.  During the year ended December 31, 2010, Bingo.com joined the Unibet International Limited ("Unibet") Partner Program as a network operator of their multi-language and multi-currency bingo and casino system.  The Unibet Partner Program provides a complete solution to Bingo.com which includes gambling licenses, multi-language customer support, financial processing capabilities, website technology, bingo games, soft games, casino games and many other services required to operate an online gambling business.  Bingo.com players continue to play on the website www.bingo.com but now participate in rooms shared across the entire Unibet Partner Program alongside players from Maria.com, Bingo.se, and other white label partner sites. These combined games increase the gaming liquidity and create one of the largest and most international online gaming systems in operation.

Unibet is paid a commission based on a fixed percentage of the gaming revenues generated on the Bingo.com website.  Unibet will own, create and run the service offered and it will be the Company's responsibility to drive traffic to the website.  Bingo.com continues to own the player data contained within the database of players that register at www.bingo.com. As a member of the Partner Program, Bingo.com is not required to secure or maintain any online gambling licenses of its own as the Company is permitted to offer Internet gambling products to its players pursuant to Unibet's licenses in relevant jurisdictions.

Since joining the Unibet Partner Program, we embarked on a cost focused restructure of the Bingo.com organization which has included a significant staff downsizing, the termination of hosting and other operational contracts, the sale of computer hardware, a reduction in office space, the release of both our Maltese and Curacao gaming licenses, and much more.  The Bingo.com restructuring program was completed in the quarter ending June 30, 2011.  The remaining costs of Bingo.com are now focused behind the marketing function of the organization as we build the Bingo.com brand in our target markets and generate increasing amounts of Internet traffic to create a large base of valuable customers.  We intend to expand our business, leveraging the many different languages and currencies supported by Unibet's system, by launching marketing campaigns in jurisdictions which we anticipate will be the most responsive to Bingo.com's online offering. Furthermore, in an attempt to maximize the value of our North American visitors to whom we cannot offer online gambling services, we have commenced the development of an innovative social bingo game that we expect to launch in the second quarter of 2013.

The Bingo.com website provides players the ability to purchase bingo cards online for cash, with the winner of each bingo game winning a percentage of the total cards purchased for that particular bingo game. The website is divided into two main sections: (1) the main section is accessible to players from countries where the Company offers its pay-to-play games; and, (2) the second section is focused on a free-to-play offering for the remaining countries.  Depending on the pay-to-play or free-to-play section of the website, the Company provides online entertainment content to players consisting of multiplayer bingo games, video poker, casino games and slot machines.

Gaming revenue from the Bingo.com website accounted for approximately 99% of our revenue for the quarter ended March 31, 2013.

 Page 18

We have made a significant investment in the development of our website, the purchase of our domain name, branding, marketing, and operations.  As a result we have incurred significant losses since inception, and as of March 31, 2013, had an accumulated deficit of $16,437,013.

CRITICAL ACCOUNTING POLICIES

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which except for lack of all detailed note disclosures, have been prepared in conformity with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, management evaluates these judgments and estimates, including whether there are any uncertainties as to compliance with the revenue recognition criteria described below, and recoverability of long-lived assets, as well as the assessment as to whether there are contingent assets and liabilities that should be recognized or disclosed for the consolidated financial statements to fairly present the information required to be set forth therein. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

We consider the following accounting policies to be both those most important to the portrayal of our financial condition and require the most subjective judgment:

- Revenue recognition; 

- Impairment of long-lived assets and long-lived assets to be disposed of;

- Software development

 

Revenue recognition:

The Company generates the majority of its revenue from gaming revenue. Gaming revenues have been recognized on the basis of total dollars wagered, less commissions on all games less all winnings payable to players.

Advertising revenues have been recognized as the advertising campaign or impressions and clicks are made on the website and when collection of the amounts are reasonably assured. Cash received in advance of the advertising campaigns or impressions and clicks are recorded under unearned revenue.

Impairment of long-lived assets and long-lived assets to be disposed of:

Management evaluates long-lived assets for impairment in accordance with the provisions of ASC 360 Property, Plant and Equipment and ASC 350, Intangibles-Goodwill and Others.  These assets comprise mainly property and equipment, other assets and the bingo.com domain name. The impairment review is performed by management, whenever events and circumstances indicate that the assets may be impaired. In performing this review, we estimate the future net cash flows from the assets and compare this amount to the carrying value. If this review indicates the carrying value may not be recoverable, impairment losses are measured and recognized based on the difference between the estimated discounted cash flows over the remaining life of the assets and the assets' carrying value. Changes in our future net cash flow estimates may impact our assessment as to whether a particular long-lived asset has been impaired. 

Software Development Costs: 

Software development costs incurred in the research and development of new software products and enhancements to existing software products for external use are expensed as incurred until technological feasibility has been established. After technological feasibility is established, any software development costs are capitalized and amortized on a straight-line basis over the estimated economic life of the related product. The Company performs an annual review of the estimated economic life and the recoverability

 Page 19

of such capitalized software costs. If a determination is made that capitalized amounts are not recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off.

 Page 20

RESULTS OF OPERATIONS

            Revenue

Total revenue for the quarter ended March 31, 2013, was $590,199, an increase of 45% from revenue of $406,307 for the first quarter of 2012 and an increase of 7% from revenue of $554,031, in the fourth quarter of 2012. Gaming Revenue was $582,760, an increase of 51% in the quarter ended March 31, 2013, compared to Gaming Revenue of $386,925 in the first quarter of 2012 and an 6% increase from revenue of $549,104 in the fourth quarter of 2012. This increase compared to the first and fourth quarter of 2012 is due to an increase in players as a result of increased marketing. We earned advertising revenue of $7,439 in the quarter ended March 31, 2013, a decrease of 62% from advertising revenue of $19,382 in the first quarter of 2012 and an increase of 51% from advertising revenue of $4,927 in the fourth quarter of 2012.

            Sales and marketing expenses

Sales and marketing expenses were $868,789 for the quarter ended March 31, 2013, an increase of 191% over expenses of $298,339 in the first quarter of 2012 and an increase of 107% from expenses of $419,954 in the fourth quarter of 2012. Sales and marketing expenses principally include costs for television marketing, Search Engine Optimization expenses, prizes for our players and other bonuses and incentives offered to gaming players. The increase in sales and marketing expenses for the quarter ended March 31, 2013, compared to the first and fourth quarter of 2012 is due to a larger media budget in the first quarter of fiscal 2013 to drive additional players to the website and to expand into new European markets.

We expect to continue to incur sales and marketing expenses to increase traffic and, consequently, deposits to our web portal. These costs will include affiliate commissions, salaries, advertising media purchases, and other promotional expenses intended to increase our subscriber base and improve gaming revenue. There can be no assurances that these expenditures will result in increased traffic or significant additional revenue.

            General and administrative expenses

General and administrative expenses consist primarily of premises costs for our office, legal and professional fees, and other general corporate and office expenses. General and administrative expenses increased to $78,910 for the first quarter of 2013, an increase of 19% from costs of $66,242 for the first quarter of 2012 and an increase of 57% from costs of $50,155 in the fourth quarter of 2012. General and administrative expenses have increased in comparison to the prior year due to an increase in rental costs.

We expect to continue to incur general and administrative expenses to support the business, and there can be no assurances that we will be able to generate sufficient revenue to cover these expenses.

Salaries, wages, consultants and benefits

Salaries, wages, consultants and benefits decreased to $72,746 for the quarter ended March 31, 2013, a decrease of 29% compared to salaries, wages, consultants and benefits of $103,107 in the first quarter of 2012 and an increase of 49%, over salaries, wages, consultants and benefits of $48,933 in the fourth quarter of 2012. The majority of the Company's salaries, wages, consultants and benefits are incurred in Canadian Dollars. This decrease compared to the first quarter of 2012 and the increase compared to the fourth quarter of 2012, is due to the capitalization of salaries of staff involved in the development of the Company's new social media game, Trophy Bingo.

 Page 21

Depreciation and amortization

Equipment is depreciated using the declining balance method over the useful lives of the assets, ranging from three to five years. Depreciation and amortization decreased to $807 during the quarter ended March 31, 2013, a decrease of 32% over costs of $1,180 during the same quarter in the prior year and a decrease of 32% from costs of $1,192 in the fourth quarter of 2012. This decrease in depreciation and amortization compared to the first and fourth quarter of fiscal 2012, is due to the aging of the Company's equipment and the disposal of obsolete equipment.

Stock based Compensation

During the year ended December 31, 2006, the Company adopted ASC 718, Compensation-Stock Compensation, which requires us to expense stock options granted. Stock based compensation decreased to $nil during the quarter ended March 31, 2013, a decrease over stock based compensation of $60,005 in the same quarter in the prior year, and stock based compensation of $nil during the fourth quarter of fiscal 2012. This decrease in stock based compensation during the quarter ended March 31, 2013, is due to the extension of the terms of the options expiring in 2012. There were no stock options granted during the quarter ended March 31, 2013.

            Net loss and loss per share

Net loss for the three months ended March 31, 2013, amounted to $471,189, a loss of $0.01 per share, an increase in net loss compared to net loss of $84,935, a loss of $0.00 per share for the same period in 2012 and a decrease in net income compared to a net income of $38,606 or income of $0.00 per share in the fourth quarter of 2012. The increase in net loss for the quarter ended March 31, 2013, compared to the first and fourth quarter of 2012, is due to the increase in marketing as a result of the increased marketing campaign.

LIQUIDITY AND CAPITAL RESOURCES

We had cash of $550,997 and positive working capital of $920,435 at March 31, 2013.  This compares to cash of $876,004 and positive working capital of $1,640,713 at December 31, 2012.

During the quarter ended March 31, 2013, we used cash of ($73,632) in operating activities compared to using cash of ($113,317) in the same period in the prior year and compared to using cash of ($318,887) in the fourth quarter of 2012.

Our future capital requirements will depend on a number of factors, including costs associated with the marketing of our Web portal, the success and acceptance of gaming operations and the possible acquisition of complementary businesses, or development of new products and technologies.

ITEM 4T.       Controls and Procedures

(a)        Evaluation of disclosure controls and procedures.

As required by Rule 13a-15 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), the Company carried out an evaluation under the supervision and with the participation of the Company's management, including the President and Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures as of March 31, 2013. In designing and evaluating the Company's disclosure controls and procedures, the Company and its management recognize that there are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their desired control objectives. Additionally, in evaluating and implementing possible controls and procedures, the Company's management was required to apply its

 Page 22

reasonable judgment. Furthermore, in the course of this evaluation, management considered certain internal control areas, in which we have made and are continuing to make changes to improve and enhance controls. Based upon the required evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that as of March 31, 2013, the Company's disclosure controls and procedures were effective (at the "reasonable assurance" level mentioned above) to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

From time-to-time, the Company and its management have conducted and will continue to conduct further reviews and, from time to time put in place additional documentation, of the Company's disclosure controls and procedures, as well as its internal control over financial reporting. The Company may from time to time make changes aimed at enhancing their effectiveness, as well as changes aimed at ensuring that the Company's systems evolve with, and meet the needs of, the Company's business. These changes may include changes necessary or desirable to address recommendations of the Company's management, its counsel and/or its independent auditors, including any recommendations of its independent auditors arising out of their audits and reviews of the Company's financial statements. These changes may include changes to the Company's own systems, as well as to the systems of businesses that the Company has acquired or that the Company may acquire in the future and will, if made, be intended to enhance the effectiveness of the Company's controls and procedures. The Company is also continually striving to improve its management and operational efficiency and the Company expects that its efforts in that regard will from time to time directly or indirectly affect the Company's disclosure controls and procedures, as well as the Company's internal control over financial reporting.

(b)        Changes in internal controls.

There were no significant changes in the Company's internal controls or other factors that could significantly affect the Company's internal controls subsequent to the date of their evaluation.

 Page 23

PART II - OTHER INFORMATION

ITEM 1.          Legal Proceedings

We are not currently a party to any legal proceeding, and was not a party to any other legal proceeding during the quarter ended March 31, 2013. We are currently not aware of any other legal proceedings proposed to be initiated against the Company. However, from time to time, we may become subject to claims and litigation generally associated with any business venture.

ITEM 2.          Unregistered Sales of Equity Securities and Use of Proceeds

There were no unregistered sales of equity securities during the quarter ended March 31, 2013. 

Subsequent to the quarter ended March 31, 2013, the Company closed a private placement of 1,000,000 shares at $0.45 per share for proceeds of $450,000.

ITEM 3.          Defaults Upon Senior Securities

Not applicable.

ITEM 4.          Submission of Matters to a Vote of Security Holders

There were no matters submitted to the shareholders during the period.

ITEM 5.          Other Information

The Company did not enter any new reportable agreements during the quarter ended March 31, 2013.

 Page 24

ITEM 6.          Exhibits and reports on Form 8-K

Exhibits

The following instruments are included as exhibits to this Report.  Exhibits incorporated by reference are so indicated.

Exhibit Number

Description

4.4

Convertible Debenture between the Company and unrelated parties dated July 2, 2002. (b)

4.5

Common Stock Purchase Warrant between the Company and unrelated parties dated July 2, 2002. (b)

10.2

Asset Purchase Agreement by and between Bingo, Inc. and Progressive Lumber, Corp. dated January 18, 1999. (a)

10.24

Amended Consulting Agreement dated February 28, 2002, between the Company, T.M. Williams (Row), Ltd., and T.M. Williams. (c)

10.29

Amendment of Asset Purchase Agreement dated July 1, 2002. (d)

10.32

Code of Business Conduct and Ethics dated December 22, 2006. (e)

10.33

Amended Consulting Agreement dated June 16, 2010, between the Company, T.M. Williams (Row), Ltd., and T.M. Williams. (f)

10.35

Consulting agreement dated April 1, 2011, between the Company and H. W. Bromley (g)

10.36

The Marketing Service Agreement between the Bingo.com, Ltd. wholly owned subsidiary, Coral Reef Marketing Inc. and with Unibet International Limited dated March 19, 2010. (h)

31.1

Certificate of Chief Executive Officer pursuant to the Securities Exchange Act Rules 13a-15(e) and 15d -15(e) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 dated May 15, 2013.

31.2

Certificate of Chief Financial Officer pursuant to the Securities Exchange Act Rules 13a-15(e) and 15d -15(e) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 dated May 15, 2013.

32.1

Certification from the Chief Executive Officer of Bingo.com, Ltd. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated May 15, 2013.

32.2

Certification from the Chief Financial Officer of Bingo.com, Ltd. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated May 15, 2013.

(a) Previously filed with the Registrant's registration statement on Form 10 on June 9, 1999.

(b) Previously filed with the Company's quarterly report on Form 10-Q for the period ended September 30, 2002, on November 14, 2002.

(c) Previously filed with the Company's quarterly report on Form 10-Q for the period ended June 30, 2002, on August 14, 2002.

(d) Previously filed with the Company's year end report on Form 10-K/A for the year ended December 31, 2002, on May 8, 2003.

(e) Previously filed with the Company's report on Form 8-K on December 26, 2006.

(f) Previously filed with the Company's report on Form 8-K on June 17, 2010.

(g) Filed with the Company's report on Form 10-Q on May 12, 2011.

(h) Previously field with the Company's report on Form 8-K/A on June 18, 2012.

 Page 25

Reports on Form 8-K.

During the quarter ended March 31, 2013, no Form 8-K were filed for Bingo.com, Ltd.

Reports Subsequent to the quarter ended March 31, 2013.

Subsequent to the quarter ended March 31, 2013, we filed our definitive schedule 14A for our Annual General Meeting on June 27, 2013.

 Page 26

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date:

May 15, 2013

 

BINGO.COM, LTD.

 

 

(Registrant)

Date:

May 15, 2013

           

            /S/ J.M. Williams

 

 

J. M. Williams, Chief Executive Officer, and President

(Principal Executive Officer)

Date:

May 15, 2013

 

 

            /S/ H. W. Bromley

 

 

H.W. Bromley, Chief Financial Officer

(Principal Accounting Officer)

 Page 27

EXHIBIT 31.1

CERTIFICATIONS

I, J. M. Williams, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of Bingo.com, Ltd.;

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

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

4.  Bingo.com, Ltd.'s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Bingo.com, Ltd., including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

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

(c)   Evaluated the effectiveness of Bingo.com, Ltd.'s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of as of March 31, 2013, covered by this quarterly report based on such evaluation; and

(d)   Disclosed in this report any change Bingo.com, Ltd.'s internal control over financial reporting that occurred during Bingo.com, Ltd.'s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, Bingo.com, Ltd.'s internal control over financial reporting; and

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

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

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

Signed:  /S/ J. M. Williams                                                        Date: May 15, 2013

J. M. Williams,

Chief Executive Officer and President

(Principal Executive Officer)

 Page 28

EXHIBIT 31.2

CERTIFICATIONS

I, H. W. Bromley, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of Bingo.com, Ltd.;

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

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

4. Bingo.com, Ltd.'s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Bingo.com, Ltd., including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

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

(c)   Evaluated the effectiveness of Bingo.com, Ltd.'s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of as of March 31, 2013, covered by this quarterly report based on such evaluation; and

(d)   Disclosed in this report any change Bingo.com, Ltd.'s internal control over financial reporting that occurred during Bingo.com, Ltd.'s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, Bingo.com, Ltd.'s internal control over financial reporting; and

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

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

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

 

Signed:  /S/ H. W. Bromley                                                      Date: May 15, 2013

H.W. Bromley,

Chief Financial Officer

(Principal Accounting Officer)
 

 Page 29

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Bingo.com, Ltd. (the "Company") on Form 10-Q for the period ended March 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, J. M. Williams, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

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

b)      The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

                                                                        /S/ J.M. Williams         

                                                            J. M. Williams

                                                            President and Chief Executive Officer

                                                                        May 15, 2013

A signed original of this written statement required by Section 906 has been provided to Bingo.com, Ltd. and will be retained by the company and furnished to the Securities and Exchange Commission or its staff upon request.

 Page 30

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Bingo.com, Ltd. (the "Company") on Form 10-Q for the period ended March 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, H. W. Bromley, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

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

b)        The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

                                                                        /S/ H. W. Bromley        

                                                            H. W. Bromley

                                                            Chief Financial Officer

                                                                        May 15, 2013

A signed original of this written statement required by Section 906 has been provided to Bingo.com, Ltd. and will be retained by the company and furnished to the Securities and Exchange Commission or its staff upon request.

 Page 31

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(registered in Curacao, Netherlands Antilles), Coral Reef Marketing Inc. (registered in Anguilla), Bingo.com (Antigua) Inc., Bingo.com (Wyoming) Inc., Bingo Acquisition Corp, Shoal Media Inc. (registered in Anguilla), and the 99% owned subsidiary, Bingo.com (UK) plc. (registered in the United Kingdom). Shoal Media Inc. was purchased on January 1, 2013. 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Non-monetary assets and liabilities are translated at the exchange rate on the original transaction date. Gains and losses from restatement of foreign currency monetary and non-monetary assets and liabilities are included in income. Revenues and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in earnings.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 0 17.85pt">(e)&#160; Impairment of long-lived assets and long-lived assets to be disposed of:</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 5pt 35.45pt">The Company accounts for long-lived assets in accordance with the provisions of ASC 360, Property, Plant and Equipment and ASC 350, Intangibles-Goodwill and Others. 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The Company performs an annual review of the estimated economic life and the recoverability of such capitalized software costs. If a determination is made that capitalized amounts are not recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 5pt 17.85pt">(h)&#160; New accounting pronouncements and changes in accounting policy:</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt 0.5in">In July 2012, the FASB issued ASU 2012-02, Intangibles- Goodwill or Other (Topic 350): Testing Indefinite-Living Tangible Assets for Impairment. ASU 2012-02 simplifies the guidance for testing the decline in the realizable value (impairment) of indefinite-lived intangible assets other than goodwill by allowing an organization the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. An organization electing to perform a qualitative assessment is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the organization determines, based on a qualitative assessment, that it is &#34;more likely than not&#34; that the asset is impaired. The amendments in this Update are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. 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The adoption of ASU 2012-04 did not have a material impact on our results of operations or our financial position.</p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt 0.5in">In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income&#160;&#160; (ASU 2013-02), which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional details about those amounts.&#160; For public entities, the amendments are effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. 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In cases where a plan for liquidation was specified in the organization's governing documents at inception (e.g., limited-life entities), the organization should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified in the organization's governing documents. The ASU requires financial statements prepared using the liquidation basis to present relevant information about a company's resources and obligations in liquidation, including: (a) The organization's assets measured at the amount of the expected cash proceeds from liquidation, including any items it had not previously recognized under U.S. GAAP, that it expects to either sell in liquidation or use in settling liabilities (e.g., trademarks); (b) The organization's liabilities as recognized and measured in accordance with existing guidance that applies to those liabilities; (c) Accrual of the costs it expects to incur and the income it expects to earn during liquidation, including any anticipated disposal costs. The amendments in ASU 2013-07 are effective for interim and annual reporting periods beginning after December 15, 2013, with early adoption permitted. 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Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. 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ASU 2012-02 simplifies the guidance for testing the decline in the realizable value (impairment) of indefinite-lived intangible assets other than goodwill by allowing an organization the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. An organization electing to perform a qualitative assessment is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the organization determines, based on a qualitative assessment, that it is &#34;more likely than not&#34; that the asset is impaired. The amendments in this Update are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. 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The amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. The adoption of ASU 2012-04 did not have a material impact on our results of operations or our financial position.</font></p> <p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 10pt 0pt"><font style="font: 8pt Times New Roman, Times, Serif">In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income&#160;&#160; (ASU 2013-02), which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional details about those amounts.&#160; For public entities, the amendments are effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on our results of operations or our financial position.</font></p> <p style="font: 8pt/14pt Times New Roman, Times, Serif; margin: 6pt 0 0 0pt; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">In March 2013, the FASB issued ASU 2013-05, Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity , which provides guidance on releasing cumulative translation adjustments out of accumulated comprehensive income into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. This guidance is effective prospectively for interim and annual periods beginning on January 1, 2014. Early adoption is permitted. 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In cases where a plan for liquidation was specified in the organization's governing documents at inception (e.g., limited-life entities), the organization should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified in the organization's governing documents. The ASU requires financial statements prepared using the liquidation basis to present relevant information about a company's resources and obligations in liquidation, including: (a) The organization's assets measured at the amount of the expected cash proceeds from liquidation, including any items it had not previously recognized under U.S. GAAP, that it expects to either sell in liquidation or use in settling liabilities (e.g., trademarks); (b) The organization's liabilities as recognized and measured in accordance with existing guidance that applies to those liabilities; (c) Accrual of the costs it expects to incur and the income it expects to earn during liquidation, including any anticipated disposal costs. The amendments in ASU 2013-07 are effective for interim and annual reporting periods beginning after December 15, 2013, with early adoption permitted. 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Q1 2013 DEF EX-101.LAB 7 bngof-20130331_lab.xml BINGO.COM, LTD. Q1 2013 LAB Director and Officer [Member] Related Party Transactions By Related Party [Axis] Independent Director [Member] UK Office [Member] Officer [Member] Western Europe [Member] Statement Geographical [Axis] Central Eastern and Southern Europe [Member] Nordics [Member] Other [Member] Anguilla [Member] Canada [Member] United Kingdom [Member] United States of America [Member] Adjustment [Member] Scenario [Axis] Common Stock Equity Components [Axis] Accumulated Deficit Accumulated Other Comprehensive Income/Foreign currency translation adjustment January 1, 2013 Business Acquisition [Axis] geographical Revenue Document And Entity Information Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Current Fiscal Year End Date Is Entity a Well-known Seasoned Issuer? Is Entity a Voluntary Filer? Is Entity's Reporting Status Current? Entity Filer Category Entity Public Float Entity Common Stock, Shares Outstanding Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] Assets Current assets: Cash Accounts receivable less allowance for doubtful accounts $nil (December 31, 2012 - $38,736) Prepaid expenses Total Current Assets Equipment, net Other assets (Note 4) Domain name rights and intangible assets (Note 5) Deferred tax asset, less valuation allowance of $77,636 (December 31, 2012 - $79,681) (Note 8) Total Assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Accounts payable and accrued liabilities - related party (Note 9) Total Current Liabilities Commitments (Note 7) Stockholders' equity (Note 6) Common stock, no par value, unlimited shares authorized, 65,877,703 shares issued and outstanding (December 31, 2012 - 65,877,703) Accumulated deficit Accumulated other comprehensive income: Foreign currency translation adjustment Total Stockholders' Equity Total Liabilities and Stockholders' Equity Consolidated Balance Sheets Parenthetical Allowance for doubtful accounts Valuation allowance for deferred tax asset Stockholders' equity Common stock, par value Common stock, authorized shares Common stock, issued shares Common stock, outstanding shares Consolidated Statements Of Operations And Comprehensive Loss Advertising revenue Gaming revenue Total revenue Operating expenses: Depreciation and amortization Directors fees General and administrative Salaries, wages, consultants and benefits Selling and marketing Stock-based compensation Total operating expenses Loss before other income (expense) and income taxes Other income (expense): Foreign exchange gain (loss) Interest and other income Loss before income taxes Income tax expense Net loss Comprehensive income (loss) Comprehensive loss Net loss per common share, basic Net loss per common share, diluted Weighted average common shares outstanding, basic Weighted average common shares outstanding, diluted Statement [Table] Statement [Line Items] Beginning balance, Amount Beginning balance, Shares Net loss Ending balance, Amount Ending balance, Shares Statement of Cash Flows [Abstract] Cash flows from operating activities: Adjustments to reconcile net loss to net cash used in operating activities: Changes in operating assets and liabilities: Accounts receivable Prepaid expenses Other assets Accounts payable and accrued liabilities Net cash used in operating activities Cash flows from investing activities: Acquisition of equipment Software development Net cash used in investing activities Change in cash Cash, beginning of period Cash, end of period Supplementary information: Interest paid Income taxes paid Non-cash financing activity Non-cash investing activity Accounting Policies [Abstract] Note 1. Basis of Presentation: Notes to Financial Statements Note 2. Summary of significant accounting policies 3. Acquisition of subsidiary Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] 4. Other assets Note 5. Domain name rights and intangible asset Equity [Abstract] Note 6. Stockholder's Equity Commitments and Contingencies Disclosure [Abstract] Note 7. Commitments Income Tax Disclosure [Abstract] Note 8. Income Taxes Related Party Transactions [Abstract] Note 9. Related Party Transactions Note 10. Segmented information Risks and Uncertainties [Abstract] Note 11. Concentrations Note 12. Concentrations of Credit Risk Basis of presentation Use of estimates Revenue recognition Foreign currency Impairment of long-lived assets and long-lived assets to be disposed of Domain name and intangible assets Software Development Costs New accounting pronouncements and changes in accounting policy Financial instruments Reclassification Acquisition Of Subsidiary Tables Net assets of Shoal Media Capitalization of domain name rights Minimum lease payments under these operating leases Deferred tax assets and deferred tax liabilities Revenue by geographical region Basis Of Presentation Details Narrative Assets Current assets: Cash Total Current Assets Liabilities Current liabilities: Accounts payable Total Current Liabilities Net Assets Other Assets Details Narrative Capitalized development costs Other assets Domain Name Rights And Intangible Asset Details Domain name rights, Cost Domain name rights, Accumulated amortization Domain name rights, Net book Value Remaining domain name payments Issuance of common shares Issuance of common shares, per share Preceding month's gross revenue Stockholders Equity Details Narrative Options expired unexercised Options expired unexercised, exercise price Private placement shares Private placement shares, per share Share proceeds Commitments Details 2013 2014 2015 Commitments Details Narrative Rent expense Income Taxes Details Net operating loss carry forwards Valuation Allowance Net Deferred Tax Assets Schedule of Related Party Transactions, by Related Party [Table] Related Party Transaction [Line Items] Related Party [Axis] Company liability towards payment of services Company liability towards expenses Company liability towards office rent Fees Expenses Schedule of Revenues from External Customers and Long-Lived Assets [Table] Revenues from External Customers and Long-Lived Assets [Line Items] Geographical [Axis] Total gaming revenue Total advertising revenue Total revenue Equipment Concentrations Details Narrative Receivable from Ubinet No single player wagered more than total ten percent gaming revenue Concentrations Of Credit Risk Details Narrative Federally insured limits Percentage representation by a customer Amounts representation by a customer Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Custom Element. Assets, Current Assets [Default Label] Liabilities, Current Stockholders' Equity Attributable to Parent Liabilities and Equity Costs and Expenses Income Tax Expense (Benefit) Comprehensive Income (Loss), Net of Tax, Attributable to Parent Shares, Issued Increase (Decrease) in Accounts Receivable Increase (Decrease) in Prepaid Expense Increase (Decrease) in Other Operating Assets Net Cash Provided by (Used in) Operating Activities Payments to Acquire Property, Plant, and Equipment Payments to Develop Software Net Cash Provided by (Used in) Investing Activities Business Acquisition, Purchase Price Allocation, Assets Acquired (Liabilities Assumed), Net [Abstract] Business Acquisition, Purchase Price Allocation, Current Assets [Abstract] Business Acquisition, Purchase Price Allocation, Current Assets, Cash and Cash Equivalents Business Acquisition, Purchase Price Allocation, Current Liabilities [Abstract] Business Acquisition, Purchase Price Allocation, Current Liabilities, Accounts Payable XML 8 R33.htm IDEA: XBRL DOCUMENT v2.4.0.6
8. Income Taxes (Details) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Income Taxes Details    
Net operating loss carry forwards $ 77,636 $ 79,681
Valuation Allowance (77,636) (79,681)
Net Deferred Tax Assets      
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1. Basis of Presentation (Details Narrative) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Basis Of Presentation Details Narrative    
Accumulated deficit $ (16,437,013) $ (15,965,824)
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11. Concentrations (Details Narrative) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Concentrations Details Narrative    
Receivable from Ubinet $ 152,627 $ 360,284
No single player wagered more than total ten percent gaming revenue 10.00% 10.00%
XML 13 R9.htm IDEA: XBRL DOCUMENT v2.4.0.6
3. Acquisition of subsidiary
3 Months Ended
Mar. 31, 2013
Notes to Financial Statements  
3. Acquisition of subsidiary

Effective January 1, 2013, the Company acquired 100% of the share capital of Shoal Media Inc., an Anguillian corporation from Mr. T. M. Williams for $6,820. The Company accounted for the transaction as an asset acquisition. The net assets of Shoal Media Inc. were as follows:

 

    January 1, 2013
     
Assets    
Current assets:    
Cash $ 5,590
Total Current Assets $ 5,590
     
Liabilities    
Current liabilities:    
   Accounts payable $ -
Total Current Liabilities $ -
     
Net Assets $ 5,590
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5. Domain name rights and intangible asset (Details Narrative) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2010
Notes to Financial Statements    
Remaining domain name payments   $ 900,000
Issuance of common shares   6,000,000
Issuance of common shares, per share   $ 0.15
Preceding month's gross revenue 4.00%  
XML 16 R28.htm IDEA: XBRL DOCUMENT v2.4.0.6
5. Domain name rights and intangible asset (Details) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Domain Name Rights And Intangible Asset Details    
Domain name rights, Cost $ 1,934,500 $ 1,934,500
Domain name rights, Accumulated amortization 677,259 677,259
Domain name rights, Net book Value $ 1,257,241 $ 1,257,241
XML 17 R30.htm IDEA: XBRL DOCUMENT v2.4.0.6
6. Stockholder's Equity (Details Narrative) (USD $)
3 Months Ended
Mar. 31, 2013
Stockholders Equity Details Narrative  
Options expired unexercised 275,000
Options expired unexercised, exercise price $ 0.33
Private placement shares 1,000,000
Private placement shares, per share $ 0.45
Share proceeds $ 450,000
XML 18 R31.htm IDEA: XBRL DOCUMENT v2.4.0.6
7. Commitments (Details) (USD $)
Mar. 31, 2013
Commitments Details  
2013 $ 22,010
2014 6,071
2015   
XML 19 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
2. Summary of significant accounting policies
3 Months Ended
Mar. 31, 2013
Notes to Financial Statements  
Note 2. Summary of significant accounting policies

2.         Summary of significant accounting policies:

(a)     Basis of presentation:

These consolidated financial statements have been prepared in accordance with U.S. GAAP. The financial statements include the accounts of the Company's wholly-owned subsidiaries, English Bay Office Management Limited (registered in British Columbia, Canada), Bingo.com N.V. (registered in Curacao, Netherlands Antilles), Coral Reef Marketing Inc. (registered in Anguilla), Bingo.com (Antigua) Inc., Bingo.com (Wyoming) Inc., Bingo Acquisition Corp, Shoal Media Inc. (registered in Anguilla), and the 99% owned subsidiary, Bingo.com (UK) plc. (registered in the United Kingdom). Shoal Media Inc. was purchased on January 1, 2013. All inter-company balances and transactions have been eliminated in the consolidated financial statements.

(b)    Use of estimates:

The preparation of consolidated financial statements in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and recognized revenues and expenses for the reporting periods.

Significant areas requiring the use of estimates and judgment include the valuation of long-lived assets, software development, the collectability of accounts receivable, revenue recognition and the valuation of deferred tax assets.  Actual results may differ significantly from these estimates.

Although the Company believes that its approach to estimates and judgments as described herein is reasonable, actual results could differ and the Company may be exposed to increases or decreases in revenue that could be material.

(c)   Revenue recognition:

Gaming revenues have been recognized on the basis of total dollars wagered, less commissions on all games less all winnings payable to players.

Advertising revenues have been recognized as the advertising campaign or impressions and clicks are made on the website and when collection of the amounts are reasonably assured. Cash received in advance of the advertising campaigns or impressions and clicks are recorded under unearned revenue.

(d)    Foreign currency:

The consolidated financial statements are presented in United States dollars, the functional currency of the Company and its subsidiaries. The Company accounts for foreign currency transactions and translation of foreign currency financial statements under Statement ASC 830, Foreign Currency Matters. Transaction amounts denominated in foreign currencies are translated at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities are adjusted at each balance sheet date to reflect the exchange rate at that date. Non-monetary assets and liabilities are translated at the exchange rate on the original transaction date. Gains and losses from restatement of foreign currency monetary and non-monetary assets and liabilities are included in income. Revenues and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in earnings.

(e)  Impairment of long-lived assets and long-lived assets to be disposed of:

The Company accounts for long-lived assets in accordance with the provisions of ASC 360, Property, Plant and Equipment and ASC 350, Intangibles-Goodwill and Others. During the years presented, the only long-lived assets reported on the Company's consolidated balance sheet are equipment, other assets, and domain name rights.  These provisions require that long-lived assets and certain identifiable recorded intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. 

If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.  Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell.

(f)  Domain name and intangible assets:

The Company has capitalized the cost of the purchase of the domain name Bingo.com and was amortizing the cost over five years from the date of commencement of operations. In 2002, the Company suspended the amortization of the domain name cost in accordance with ASC 350, where companies are no longer required to amortize indefinite life assets but instead test the indefinite life intangible asset for impairment at least annually. The capitalized amount is based on the net present value of the minimum payments permitted under the terms of the purchase agreement. The domain name is tested for impairment by comparing the future cash flows of the domain name with its carrying value. The Company determined that as a result of level 3 unobservable inputs in accordance with ASC 820, Fair Value Measurements and Disclosures, that the fair value of the domain name exceeded the carrying value and therefore no impairment existed for the periods presented.

(g)  Software Development Costs: 

Software development costs incurred in the research and development of new software products and enhancements to existing software products for external use are expensed as incurred until technological feasibility has been established. After technological feasibility is established, any software development costs are capitalized and amortized on a straight-line basis over the estimated economic life of the related product. The Company performs an annual review of the estimated economic life and the recoverability of such capitalized software costs. If a determination is made that capitalized amounts are not recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off.

(h)  New accounting pronouncements and changes in accounting policy:

In July 2012, the FASB issued ASU 2012-02, Intangibles- Goodwill or Other (Topic 350): Testing Indefinite-Living Tangible Assets for Impairment. ASU 2012-02 simplifies the guidance for testing the decline in the realizable value (impairment) of indefinite-lived intangible assets other than goodwill by allowing an organization the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. An organization electing to perform a qualitative assessment is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the organization determines, based on a qualitative assessment, that it is "more likely than not" that the asset is impaired. The amendments in this Update are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of ASU 2012-02 did not have a material impact on our results of operations or our financial position.

In October 2012, the FASB issued ASU 2012-04, Technical Corrections and Improvements. ASU 2012-04 contains amendments to clarify the ASC, correct unintended application of guidance, or make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Additionally, the amendments are intended to make the ASC easier to understand and the fair value measurement guidance easier to apply by eliminating inconsistencies and providing needed clarifications. The amendments that do not have transition guidance were effective upon issuance. The amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. The adoption of ASU 2012-04 did not have a material impact on our results of operations or our financial position.

In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income   (ASU 2013-02), which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional details about those amounts.  For public entities, the amendments are effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on our results of operations or our financial position.

In March 2013, the FASB issued ASU 2013-05, Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity , which provides guidance on releasing cumulative translation adjustments out of accumulated comprehensive income into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. This guidance is effective prospectively for interim and annual periods beginning on January 1, 2014. Early adoption is permitted. As the Company has not ceased to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity, the adoption of this guidance is not expected to have a significant impact on the Company's consolidated financial position, results of operations, or cash flows.

In April 2013, the FASB issued ASU 2013-07, requiring financial statements to be prepared using the liquidation basis of accounting when liquidation is "imminent." Liquidation is considered imminent when the likelihood is remote that the organization will return from liquidation and either: (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties; or (b) a plan for liquidation is being imposed by other forces (e.g., involuntary bankruptcy). In cases where a plan for liquidation was specified in the organization's governing documents at inception (e.g., limited-life entities), the organization should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified in the organization's governing documents. The ASU requires financial statements prepared using the liquidation basis to present relevant information about a company's resources and obligations in liquidation, including: (a) The organization's assets measured at the amount of the expected cash proceeds from liquidation, including any items it had not previously recognized under U.S. GAAP, that it expects to either sell in liquidation or use in settling liabilities (e.g., trademarks); (b) The organization's liabilities as recognized and measured in accordance with existing guidance that applies to those liabilities; (c) Accrual of the costs it expects to incur and the income it expects to earn during liquidation, including any anticipated disposal costs. The amendments in ASU 2013-07 are effective for interim and annual reporting periods beginning after December 15, 2013, with early adoption permitted. Management does not expect the implementation of this update to have an effect on the Company's consolidated financial statements.

There have been no other recent accounting standards, or changes in accounting standards, during the three months ended March 31, 2013, as compared to the recent accounting standards described in the Annual Report, that are of material significance, or have potential material significance, to us.

(i)   Financial instruments:

 (i)  Fair values:

The fair value of accounts receivable, accounts payable, accrued liabilities and accounts payable and accrued liabilities - related party approximate their financial statement carrying amounts due to the short-term maturities of these instruments.  Cash is carried at fair value using a level 1 fair value measurement.

In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset.  The Company's cash was measured using Level 1 inputs.

 (ii)  Foreign currency risk:

The Company operates internationally, which gives rise to the risk that cash flows may be adversely impacted by exchange rate fluctuations.  The Company has not entered into any forward exchange contracts or other derivative instrument to hedge against foreign exchange risk.

(j)    Reclassification

Certain comparative figures have been reclassified to conform to the presentation adopted in the current year.

XML 20 R32.htm IDEA: XBRL DOCUMENT v2.4.0.6
7. Commitments (Details Narrative) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Commitments Details Narrative    
Rent expense $ 30,581 $ 18,387
XML 21 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Balance Sheets (Unaudited) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Assets    
Cash $ 550,997 $ 876,004
Accounts receivable less allowance for doubtful accounts $nil (December 31, 2012 - $38,736) 158,987 364,184
Prepaid expenses 344,430 506,133
Total Current Assets 1,054,414 1,746,321
Equipment, net 11,056 10,280
Other assets (Note 4) 596,525 348,212
Domain name rights and intangible assets (Note 5) 1,257,241 1,257,241
Deferred tax asset, less valuation allowance of $77,636 (December 31, 2012 - $79,681) (Note 8)      
Total Assets 2,919,236 3,362,054
Current liabilities:    
Accounts payable 36,972 24,465
Accrued liabilities 75,578 65,593
Accounts payable and accrued liabilities - related party (Note 9) 21,429 15,550
Total Current Liabilities 133,979 105,608
Stockholders' equity (Note 6)    
Common stock, no par value, unlimited shares authorized, 65,877,703 shares issued and outstanding (December 31, 2012 - 65,877,703) 19,197,690 19,197,690
Accumulated deficit (16,437,013) (15,965,824)
Accumulated other comprehensive income: Foreign currency translation adjustment 24,580 24,580
Total Stockholders' Equity 2,785,257 3,256,446
Total Liabilities and Stockholders' Equity $ 2,919,236 $ 3,362,054
XML 22 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Statements of Cash Flows (Unaudited) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Cash flows from operating activities:    
Net loss $ (471,189) $ (84,935)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 807 1,180
Stock-based compensation    60,005
Changes in operating assets and liabilities:    
Accounts receivable 205,197 (156,222)
Prepaid expenses 161,703 37,494
Other assets 239 (285)
Accounts payable and accrued liabilities 28,371 29,446
Net cash used in operating activities (74,872) (113,317)
Cash flows from investing activities:    
Acquisition of equipment (1,583) (208)
Software development (248,552)   
Net cash used in investing activities (250,135) (208)
Change in cash (325,007) (113,525)
Cash, beginning of period 876,004 787,524
Cash, end of period 550,997 673,999
Supplementary information:    
Interest paid      
Income taxes paid    1,363
Non-cash financing activity      
Non-cash investing activity      
XML 23 R35.htm IDEA: XBRL DOCUMENT v2.4.0.6
10. Segmented information (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total gaming revenue $ 582,760 $ 386,925
Total advertising revenue 7,439 19,382
Total revenue 590,199 406,307
Western Europe [Member]
   
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total gaming revenue 58,686 70,577
Total revenue 58,686 70,577
Central Eastern and Southern Europe [Member]
   
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total gaming revenue 5,534 9,642
Total revenue 5,534 9,642
Nordics [Member]
   
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total gaming revenue 517,763 299,133
Total advertising revenue 79 1,711
Total revenue 517,842 300,844
Other [Member]
   
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total gaming revenue 777 7,573
Total advertising revenue 7,360 17,671
Total revenue $ 8,137 $ 25,244
XML 24 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
7. Commitments (Tables)
3 Months Ended
Mar. 31, 2013
Commitments and Contingencies Disclosure [Abstract]  
Minimum lease payments under these operating leases

Minimum lease payments under these operating leases are approximately as follows:

     
2013 $ 22,010
2014   6,071
2015   -
     
XML 25 R36.htm IDEA: XBRL DOCUMENT v2.4.0.6
10. Segmented information (Details 1) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]    
Equipment $ 11,056 $ 10,280
Anguilla [Member]
   
Revenues from External Customers and Long-Lived Assets [Line Items]    
Equipment 800 872
Canada [Member]
   
Revenues from External Customers and Long-Lived Assets [Line Items]    
Equipment 5,529 5,978
United Kingdom [Member]
   
Revenues from External Customers and Long-Lived Assets [Line Items]    
Equipment 2,619 1,131
United States of America [Member]
   
Revenues from External Customers and Long-Lived Assets [Line Items]    
Equipment $ 2,108 $ 2,299
XML 26 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
10. Segmented information (Tables)
3 Months Ended
Mar. 31, 2013
Notes to Financial Statements  
Revenue by geographical region

The Company had the following revenue by geographical region.

      Three Months ended March 31, 2013   Three Months ended March 31, 2012
           
Gaming revenue          
Western Europe   $ 58,686 $ 70,577
Central, Eastern and Southern Europe     5,534   9,642
Nordics     517,763   299,133
Other     777   7,573
Total gaming revenue   $ 582,760 $ 386,925
           
Advertising revenue          
Nordics   $ 79 $ 1,711
Other     7,360   17,671
Total advertising revenue   $ 7,439 $ 19,382
           
Total revenue          
Western Europe   $ 58,686 $ 70,577
Central, Eastern and Southern Europe     5,534   9,642
Nordics     517,842   300,844
Other     8,137   25,244
Total revenue   $ 590,199 $ 406,307

Equipment

The Company's equipment is located as follows:

Net Book Value   March 31, 2013   December 31, 2012
         
Anguilla $ 800 $ 872
Canada   5,529   5,978
United Kingdom   2,619   1,131
United States of America   2,108   2,299
  $ 11,056 $ 10,280
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XML 28 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
1. Basis of Presentation
3 Months Ended
Mar. 31, 2013
Accounting Policies [Abstract]  
Note 1. Basis of Presentation:

The accompanying unaudited financial statements have been prepared by Bingo.com, Ltd. ("the Company") in conformity with accounting principles generally accepted in the United States of America ("US GAAP") applicable to interim financial information and with the rules and regulations of the United States Securities and Exchange Commission.  Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed, or omitted, pursuant to such rules and regulations.  In the opinion of management, the unaudited interim financial statements include all adjustments necessary for the fair presentation of the results of the interim periods presented.  All adjustments are of a normal recurring nature, except as otherwise noted below.  These financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2012, included in the Company's Annual Report on Form 10-K, filed March 29, 2013, with the Securities and Exchange Commission.  The results of operations for the interim periods are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year.

 

Continuing operations

 

These consolidated financial statements have been prepared on the going concern basis, which presumes the realization of assets and the settlement of liabilities in the normal course of operations.  The application of the going concern basis is dependent upon the Company achieving profitable operations to generate sufficient cash flows to fund continued operations, or, in the absence of adequate cash flows from operations, obtaining additional financing.  The Company has reported losses from operations for the quarter ended March 31, 2013 and 2012, and has an accumulated deficit of $16,437,013 as at March 31, 2013.  This raises substantial doubt about the Company's ability to continue as a going concern.

 

In view of the matters described in the preceding paragraph, recoverability of a major portion of the recorded asset amounts and settlement of the liability amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

 

Management continues to review operations in order to identify additional strategies designed to generate cash flow, improve the Company's financial position, and enable the timely discharge of the Company's obligations.  If management is unable to identify sources of additional cash flow in the short term, it may be required to further reduce or limit operations.

 

XML 29 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Balance Sheets (Parenthetical) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Assets    
Allowance for doubtful accounts $ 0 $ 38,736
Valuation allowance for deferred tax asset $ 77,636 $ 79,681
Stockholders' equity    
Common stock, par value $ 0 $ 0
Common stock, authorized shares unlimited unlimited
Common stock, issued shares 65,877,703 65,877,703
Common stock, outstanding shares 65,877,703 65,877,703
XML 30 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
11. Concentrations
3 Months Ended
Mar. 31, 2013
Risks and Uncertainties [Abstract]  
Note 11. Concentrations

Major customers

For the quarter ended March 31, 2013, there was no single player on the gaming site who had wagered more than 10% of the total gaming revenue. The Company is reliant on Unibet, a related party, to provide contracted services pursuant to its Partner Program. The Company has a receivable from Unibet of $152,627 as at March 31, 2013 (December 31, 2012 - $360,284).

During the quarter ended March 31, 2013 and 2012, the Company offered limited advertising. Therefore there were no advertising sales representing more than 10% of the total sales.

XML 31 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information
3 Months Ended
Mar. 31, 2013
May 15, 2013
Document And Entity Information    
Entity Registrant Name BINGO.COM LTD.  
Entity Central Index Key 0001318482  
Document Type 10-Q  
Document Period End Date Mar. 31, 2013  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Is Entity a Well-known Seasoned Issuer? No  
Is Entity a Voluntary Filer? No  
Is Entity's Reporting Status Current? Yes  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   66,877,703
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2013  
XML 32 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
12. Concentrations of Credit Risk
3 Months Ended
Mar. 31, 2013
Notes to Financial Statements  
Note 12. Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable.  The Company places its cash with high quality financial institutions and limits the amount of credit exposure with any one institution.

The Company currently maintains a substantial portion of its day-to-day operating cash balances at financial institutions. At March 31, 2013, the Company had total cash balances of $550,997 (December 31, 2012 - $876,004) at financial institutions, where $214,097 (December 31, 2012 - $491,300) is in excess of federally insured limits. The Company has concentrations of credit risk with respect to accounts receivable, as large amounts of its accounts receivable are concentrated geographically in the United Kingdom amongst a small number of customers.

As of March 31, 2013, the Company had one customer totaling $152,627, who accounted for total accounts receivable greater than 10%. As of December 31, 2012, the Company had one customer, totaling $360,284 who accounted for greater than 10% of the total accounts receivable.

The Company controls credit risk through monitoring procedures and receiving prepayments of cash for services rendered.  The Company performs credit evaluations of its customers but generally does not require collateral to support accounts receivable.

XML 33 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Consolidated Statements Of Operations And Comprehensive Loss    
Advertising revenue $ 7,439 $ 19,382
Gaming revenue 582,760 386,925
Total revenue 590,199 406,307
Operating expenses:    
Depreciation and amortization 807 1,180
Directors fees 2,500 2,500
General and administrative 80,151 66,242
Salaries, wages, consultants and benefits 72,746 103,107
Selling and marketing 868,789 298,339
Stock-based compensation    60,005
Total operating expenses 1,024,993 531,373
Loss before other income (expense) and income taxes (434,794) (125,066)
Other income (expense):    
Foreign exchange gain (loss) (36,800) 39,647
Interest and other income 405 544
Loss before income taxes (471,189) (84,875)
Income tax expense    (60)
Net loss (471,189) (84,935)
Comprehensive income (loss)      
Comprehensive loss $ (471,189) $ (84,935)
Net loss per common share, basic $ (0.01) $ 0.00
Net loss per common share, diluted $ (0.01) $ 0.00
Weighted average common shares outstanding, basic 65,877,703 63,877,703
Weighted average common shares outstanding, diluted 65,877,703 63,877,703
XML 34 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
6. Stockholder's Equity
3 Months Ended
Mar. 31, 2013
Equity [Abstract]  
Note 6. Stockholder's Equity

No options were granted or exercised during the period ended March 31, 2013.

During the quarter ended March 31, 2013, 275,000 options with an exercise price of $0.33 per share expired unexercised.

Subsequent to the quarter ended March 31, 2013, the Company completed a private placement for 1,000,000 shares at $0.45 per share for proceeds of $450,000.

XML 35 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
5. Domain name rights and intangible asset
3 Months Ended
Mar. 31, 2013
Notes to Financial Statements  
Note 5. Domain name rights and intangible asset

The rights to use the domain name Bingo.com were acquired in January of 1999 for a cash payment of $200,000 and the issuance of 500,000 shares of common stock of the Company at a value of $2.00 per share. The agreement was signed with Bingo, Inc., an unrelated party at the date of signing of the agreement. Under the terms of the agreement, the Company was required to make quarterly domain name purchase payments to the vendor based on 4% of annual gross revenue (as defined in the agreement), with total minimum payments of $1,100,000 in the first three years, including the initial cash payment, over the 99 year period ending December 31, 2098. These minimum payment commitments were completed on June 30, 2002. During the year ended December 31, 2002, the agreement was amended so that the remaining domain name purchase payments to the vendor were made monthly, based on 4% of the preceding month's gross revenue. During the year ended December 31, 2010, the Company purchased the remaining Domain Name payments for $900,000, with the issuance of 6,000,000 common shares of the Company, at a value of $0.15 per share. In accordance with ASC Topic 420-10-25-11, the Company expensed the Domain Name Purchase payments of $900,000 during the year ended December 31, 2010.

Domain name rights have been capitalized on the balance sheet based on the present value of the future minimum purchase payments. In 2002, the Company suspended the amortization of the domain name in accordance with ASC 350, Intangibles - Goodwill and Others, where companies are no longer permitted to amortize indefinite life intangible assets.

March 31, 2013   Cost   Accumulated amortization  

Net book

Value

             
Domain name rights $ 1,934,500 $ 677,259 $ 1,257,241

 

December 31, 2012   Cost   Accumulated amortization  

Net book

Value

             
Domain name rights $ 1,934,500 $ 677,259 $ 1,257,241
XML 36 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
8. Income Taxes (Tables)
3 Months Ended
Mar. 31, 2013
Income Tax Disclosure [Abstract]  
Deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at March 31, 2013, and December 31, 2012, are presented below:

    March 31, 2013   December 31, 2012
Deferred tax assets:        
   Net operating loss carry forwards $ 77,636 $ 79,681
         
   Valuation Allowance   (77,636)   (79,681)
  $ $
XML 37 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
2. Summary of significant accounting policies (Policies)
3 Months Ended
Mar. 31, 2013
Notes to Financial Statements  
Basis of presentation

These consolidated financial statements have been prepared in accordance with U.S. GAAP. The financial statements include the accounts of the Company's wholly-owned subsidiaries, English Bay Office Management Limited (registered in British Columbia, Canada), Bingo.com N.V. (registered in Curacao, Netherlands Antilles), Coral Reef Marketing Inc. (registered in Anguilla), Bingo.com (Antigua) Inc., Bingo.com (Wyoming) Inc., Bingo Acquisition Corp, Shoal Media Inc. (registered in Anguilla), and the 99% owned subsidiary, Bingo.com (UK) plc. (registered in the United Kingdom). Shoal Media Inc. was purchased on January 1, 2013. All inter-company balances and transactions have been eliminated in the consolidated financial statements.

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and recognized revenues and expenses for the reporting periods.

Significant areas requiring the use of estimates and judgment include the valuation of long-lived assets, software development, the collectability of accounts receivable, revenue recognition and the valuation of deferred tax assets.  Actual results may differ significantly from these estimates.

Although the Company believes that its approach to estimates and judgments as described herein is reasonable, actual results could differ and the Company may be exposed to increases or decreases in revenue that could be material.

Revenue recognition

Gaming revenues have been recognized on the basis of total dollars wagered, less commissions on all games less all winnings payable to players.

Advertising revenues have been recognized as the advertising campaign or impressions and clicks are made on the website and when collection of the amounts are reasonably assured. Cash received in advance of the advertising campaigns or impressions and clicks are recorded under unearned revenue.

Foreign currency

The consolidated financial statements are presented in United States dollars, the functional currency of the Company and its subsidiaries. The Company accounts for foreign currency transactions and translation of foreign currency financial statements under Statement ASC 830, Foreign Currency Matters. Transaction amounts denominated in foreign currencies are translated at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities are adjusted at each balance sheet date to reflect the exchange rate at that date. Non-monetary assets and liabilities are translated at the exchange rate on the original transaction date. Gains and losses from restatement of foreign currency monetary and non-monetary assets and liabilities are included in income. Revenues and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in earnings.

Impairment of long-lived assets and long-lived assets to be disposed of

The Company accounts for long-lived assets in accordance with the provisions of ASC 360, Property, Plant and Equipment and ASC 350, Intangibles-Goodwill and Others. During the years presented, the only long-lived assets reported on the Company's consolidated balance sheet are equipment, other assets, and domain name rights.  These provisions require that long-lived assets and certain identifiable recorded intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. 

If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.  Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell.

Domain name and intangible assets

The Company has capitalized the cost of the purchase of the domain name Bingo.com and was amortizing the cost over five years from the date of commencement of operations. In 2002, the Company suspended the amortization of the domain name cost in accordance with ASC 350, where companies are no longer required to amortize indefinite life assets but instead test the indefinite life intangible asset for impairment at least annually. The capitalized amount is based on the net present value of the minimum payments permitted under the terms of the purchase agreement. The domain name is tested for impairment by comparing the future cash flows of the domain name with its carrying value. The Company determined that as a result of level 3 unobservable inputs in accordance with ASC 820, Fair Value Measurements and Disclosures, that the fair value of the domain name exceeded the carrying value and therefore no impairment existed for the periods presented.

Software Development Costs

Software development costs incurred in the research and development of new software products and enhancements to existing software products for external use are expensed as incurred until technological feasibility has been established. After technological feasibility is established, any software development costs are capitalized and amortized on a straight-line basis over the estimated economic life of the related product. The Company performs an annual review of the estimated economic life and the recoverability of such capitalized software costs. If a determination is made that capitalized amounts are not recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off.

New accounting pronouncements and changes in accounting policy

New accounting pronouncements and changes in accounting policy:

In July 2012, the FASB issued ASU 2012-02, Intangibles- Goodwill or Other (Topic 350): Testing Indefinite-Living Tangible Assets for Impairment. ASU 2012-02 simplifies the guidance for testing the decline in the realizable value (impairment) of indefinite-lived intangible assets other than goodwill by allowing an organization the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. An organization electing to perform a qualitative assessment is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the organization determines, based on a qualitative assessment, that it is "more likely than not" that the asset is impaired. The amendments in this Update are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of ASU 2012-02 did not have a material impact on our results of operations or our financial position.

In October 2012, the FASB issued ASU 2012-04, Technical Corrections and Improvements. ASU 2012-04 contains amendments to clarify the ASC, correct unintended application of guidance, or make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Additionally, the amendments are intended to make the ASC easier to understand and the fair value measurement guidance easier to apply by eliminating inconsistencies and providing needed clarifications. The amendments that do not have transition guidance were effective upon issuance. The amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. The adoption of ASU 2012-04 did not have a material impact on our results of operations or our financial position.

In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income   (ASU 2013-02), which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional details about those amounts.  For public entities, the amendments are effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on our results of operations or our financial position.

In March 2013, the FASB issued ASU 2013-05, Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity , which provides guidance on releasing cumulative translation adjustments out of accumulated comprehensive income into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. This guidance is effective prospectively for interim and annual periods beginning on January 1, 2014. Early adoption is permitted. As the Company has not ceased to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity, the adoption of this guidance is not expected to have a significant impact on the Company's consolidated financial position, results of operations, or cash flows.

In April 2013, the FASB issued ASU 2013-07, requiring financial statements to be prepared using the liquidation basis of accounting when liquidation is "imminent." Liquidation is considered imminent when the likelihood is remote that the organization will return from liquidation and either: (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties; or (b) a plan for liquidation is being imposed by other forces (e.g., involuntary bankruptcy). In cases where a plan for liquidation was specified in the organization's governing documents at inception (e.g., limited-life entities), the organization should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified in the organization's governing documents. The ASU requires financial statements prepared using the liquidation basis to present relevant information about a company's resources and obligations in liquidation, including: (a) The organization's assets measured at the amount of the expected cash proceeds from liquidation, including any items it had not previously recognized under U.S. GAAP, that it expects to either sell in liquidation or use in settling liabilities (e.g., trademarks); (b) The organization's liabilities as recognized and measured in accordance with existing guidance that applies to those liabilities; (c) Accrual of the costs it expects to incur and the income it expects to earn during liquidation, including any anticipated disposal costs. The amendments in ASU 2013-07 are effective for interim and annual reporting periods beginning after December 15, 2013, with early adoption permitted. Management does not expect the implementation of this update to have an effect on the Company's consolidated financial statements.

There have been no other recent accounting standards, or changes in accounting standards, during the three months ended March 31, 2013, as compared to the recent accounting standards described in the Annual Report, that are of material significance, or have potential material significance, to us.

Financial instruments

(i)  Fair values:

The fair value of accounts receivable, accounts payable, accrued liabilities and accounts payable and accrued liabilities - related party approximate their financial statement carrying amounts due to the short-term maturities of these instruments.  Cash is carried at fair value using a level 1 fair value measurement.

In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset.  The Company's cash was measured using Level 1 inputs.

(ii)  Foreign currency risk:

The Company operates internationally, which gives rise to the risk that cash flows may be adversely impacted by exchange rate fluctuations.  The Company has not entered into any forward exchange contracts or other derivative instrument to hedge against foreign exchange risk.

Reclassification

Certain comparative figures have been reclassified to conform to the presentation adopted in the current year.

XML 38 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
9. Related Party Transactions
3 Months Ended
Mar. 31, 2013
Related Party Transactions [Abstract]  
Note 9. Related Party Transactions

The Company has a liability of $2,147 (December 31, 2012 - $nil), to a company owned by a current director and officer of the Company for payment of services rendered and expenses incurred by the current director and officer of the Company.

The Company has a liability of $9,004 (December 31, 2012 - $384) to a current director and officer of the Company for expenses incurred by a current director and officer of the Company.

The Company has a liability to Bingo, Inc. for rental of the UK office of $nil (December 31, 2012 - $11,270) for rental for the quarter ended March 31, 2013 of $23,302 (Quarter ended March 31, 2012 - $11,782).

The Company has a liability of $3,502 (December 31, 2012 - $1,002), to the independent directors of the Company for payment of services rendered. The Company incurred independent directors fees of $2,500 for the quarter ended March 31, 2013 (Quarter ended March 31, 2012 - $2,500).

The Company has a liability of $6,777 (December 31, 2012 - $2,894), to an officer of the Company for payment of services rendered and expenses incurred of $20,523 during the quarter ended March 31, 2013 (Quarter ended March 31, 2012 - $19,280), by the officer of the Company.

The related party transactions are in the normal course of operations and were measured at the exchange amount, which is the amount of consideration established and agreed to by the related party.

XML 39 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
7. Commitments
3 Months Ended
Mar. 31, 2013
Commitments and Contingencies Disclosure [Abstract]  
Note 7. Commitments

The Company leases office facilities in Vancouver, British Columbia, Canada, The Valley, Anguilla, British West Indies and London, United Kingdom. These office facilities are leased under operating lease agreements. The Canadian operating lease expires on April 30, 2014. The Anguillan operating lease expired on April 1, 2011 but unless 3 month's notice is given it automatically renews for a future 3 months until notice is given. The United Kingdom lease is leased from Bingo, Inc. This lease is for 30 days and is automatically renewed with a 30 day notice period.

Minimum lease payments under these operating leases are approximately as follows:

     
2013 $ 22,010
2014   6,071
2015   -
     

The Company paid rent expense totaling $30,581 for the quarter ended March 31, 2013 (March 31, 2012 - $18,387). 

The Company has a management consulting agreement with T.M. Williams (Row), Inc., an Anguilla incorporated company, and Mr. Williams, a related party, for a consultancy payment of $11,666 per month payable in arrears. This contract is for the provision of services by Mr. Williams as Executive Chairman of the Company.

XML 40 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
8. Income Taxes
3 Months Ended
Mar. 31, 2013
Income Tax Disclosure [Abstract]  
Note 8. Income Taxes

Bingo.com, Ltd. is domiciled in the tax-free jurisdiction of Anguilla, British West Indies. However certain of the Company's subsidiaries incur income taxation.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at March 31, 2013, and December 31, 2012, are presented below:

    March 31, 2013   December 31, 2012
Deferred tax assets:        
   Net operating loss carry forwards $ 77,636 $ 79,681
         
   Valuation Allowance   (77,636)   (79,681)
  $ $

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible.

Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in assessing the realizability of deferred tax assets.

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10. Segmented information
3 Months Ended
Mar. 31, 2013
Notes to Financial Statements  
Note 10. Segmented information

Revenue

The Company operates in one reportable business segment, the business of marketing games and entertainment based principally on the game of bingo through its Internet portal, Bingo.com.   Bingo.com is supported by the revenue generated from the deposits received for the games for money and by selling advertising on the website.  The revenue for the quarters ended March 31, 2013 and 2012, has been derived primarily from the revenue generated from the deposits received for the games for money.

The Company had the following revenue by geographical region.

      Three Months ended March 31, 2013   Three Months ended March 31, 2012
           
Gaming revenue          
Western Europe   $ 58,686 $ 70,577
Central, Eastern and Southern Europe     5,534   9,642
Nordics     517,763   299,133
Other     777   7,573
Total gaming revenue   $ 582,760 $ 386,925
           
Advertising revenue          
Nordics   $ 79 $ 1,711
Other     7,360   17,671
Total advertising revenue   $ 7,439 $ 19,382
           
Total revenue          
Western Europe   $ 58,686 $ 70,577
Central, Eastern and Southern Europe     5,534   9,642
Nordics     517,842   300,844
Other     8,137   25,244
Total revenue   $ 590,199 $ 406,307

Equipment

The Company's equipment is located as follows:

Net Book Value   March 31, 2013   December 31, 2012
         
Anguilla $ 800 $ 872
Canada   5,529   5,978
United Kingdom   2,619   1,131
United States of America   2,108   2,299
  $ 11,056 $ 10,280
XML 42 R34.htm IDEA: XBRL DOCUMENT v2.4.0.6
9. Related Party Transactions (Details Narrative) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Director and Officer [Member]
     
Related Party Transaction [Line Items]      
Company liability towards payment of services $ 2,147   $ 0
Company liability towards expenses 9,004   384
Independent Director [Member]
     
Related Party Transaction [Line Items]      
Company liability towards payment of services 3,502   1,002
Fees 2,500 2,500  
UK Office [Member]
     
Related Party Transaction [Line Items]      
Company liability towards office rent 0   11,270
Expenses 23,302 11,782  
Officer [Member]
     
Related Party Transaction [Line Items]      
Company liability towards payment of services 6,777   2,894
Expenses $ 20,523 $ 19,280  
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5. Domain name rights and intangible asset (Tables)
3 Months Ended
Mar. 31, 2013
Notes to Financial Statements  
Capitalization of domain name rights

Domain name rights have been capitalized on the balance sheet based on the present value of the future minimum purchase payments. In 2002, the Company suspended the amortization of the domain name in accordance with ASC 350, Intangibles - Goodwill and Others, where companies are no longer permitted to amortize indefinite life intangible assets.

March 31, 2013   Cost   Accumulated amortization  

Net book

Value

             
Domain name rights $ 1,934,500 $ 677,259 $ 1,257,241

 

December 31, 2012   Cost   Accumulated amortization  

Net book

Value

             
Domain name rights $ 1,934,500 $ 677,259 $ 1,257,241
XML 44 R26.htm IDEA: XBRL DOCUMENT v2.4.0.6
3. Acquisition of subsidiary (Details) (January 1, 2013, USD $)
Mar. 31, 2013
January 1, 2013
 
Current assets:  
Cash $ 5,590
Total Current Assets 5,590
Current liabilities:  
Accounts payable   
Total Current Liabilities   
Net Assets $ 5,590
XML 45 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Statements of Stockholders' Equity (Unaudited) (USD $)
Common Stock
Accumulated Deficit
Accumulated Other Comprehensive Income/Foreign currency translation adjustment
Total
Beginning balance, Amount at Dec. 31, 2012 $ 19,197,690 $ (15,965,824) $ 24,580 $ 3,256,446
Beginning balance, Shares at Dec. 31, 2012 65,877,703      
Net loss   (471,189)    (471,189)
Ending balance, Amount at Mar. 31, 2013 $ 19,197,690 $ (16,437,013) $ 24,580 $ 2,785,257
Ending balance, Shares at Mar. 31, 2013 65,877,703      
XML 46 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
4. Other assets
3 Months Ended
Mar. 31, 2013
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
4. Other assets

During the year ended December 31, 2012, the Company commenced development of a social bingo game. The Company has capitalized $584,457 (December 31, 2012 - $335,905) as at March 31, 2013. The Company has not yet begun to amortize on these capitalized development costs. Other assets also include $12,068 (December 31, 2012 - $12,307) for security deposits.

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4. Other assets (Details Narrative) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Other Assets Details Narrative    
Capitalized development costs $ 584,457 $ 335,905
Other assets $ 12,068 $ 12,307
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12. Concentrations of Credit Risk (Details Narrative) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2012
Dec. 31, 2011
Concentrations Of Credit Risk Details Narrative        
Cash $ 550,997 $ 876,004 $ 673,999 $ 787,524
Federally insured limits 214,097 491,300    
Percentage representation by a customer 10.00% 10.00%    
Amounts representation by a customer $ 152,627 $ 360,284    
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3. Acquisition of subsidiary (Tables)
3 Months Ended
Mar. 31, 2013
Acquisition Of Subsidiary Tables  
Net assets of Shoal Media

Effective January 1, 2013, the Company acquired 100% of the share capital of Shoal Media Inc., an Anguillian corporation from Mr. T. M. Williams for $6,820. The Company accounted for the transaction as an asset acquisition. The net assets of Shoal Media Inc. were as follows:

 

    January 1, 2013
     
Assets    
Current assets:    
Cash $ 5,590
Total Current Assets $ 5,590
     
Liabilities    
Current liabilities:    
   Accounts payable $ -
Total Current Liabilities $ -
     
Net Assets $ 5,590