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Condensed Consolidated Statements of Cash Flows - USD ($)
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities:    
Net loss $ (5,014,947) $ (2,242,677)
Adjustments to reconcile net loss to net cash used in operating activities    
Depreciation expense 231,587 189,260
Amortization of intangible assets 96,570 168,558
Amortization of debt discount 360,540 136,939
Stock-based compensation 691,607 854,301
Issuance of common stock for services 144,000 59,166
Change in fair value of financial instruments (1,182,800) 53,328
Accrued interest income on notes receivable from third party (8,919)
Accrued interest expenses on notes payable 31,755 18,648
Change in earn-out liability (58,754)
Inducement for exercise of warrants 3,560,958
Extinguishment of convertible debt (415,689)
Provision for bad debt 62,792 434,877
Changes in operating assets and liabilities:    
Accounts receivable (293,612) (663,831)
Customer short-term notes receivable 111,870 (330,146)
Customer long-term notes receivable 72,584 (196,572)
Deferred revenue (124,717) (160,221)
Prepaid insurance (5,401) 6,090
Other assets (3,250)
Accounts payable and accrued liabilities (97,907) 328,820
Net cash used in operating activities (939,432) (1,160,731)
Cash flows from investing activities:    
Proceeds from short-term notes receivable from third party 110,000
Payment of deferred acquisition payable - intellectual Capital Mgmt, LLC (10,000) (10,000)
Software development costs (291,957) (545,900)
Purchase of property and equipment (305,326)
Net cash used in investing activities (301,957) (751,226)
Cash flows from financing activities:    
Net proceeds from liabilities related to tender offer 1,179,252
Repayment of notes (70,262)
Repayment of notes to related parties (35,000)
Repayment of convertible notes (200,000)
Proceeds from issuance of convertible debt 1,112,500
Net cash provided by financing activities 873,990 1,112,500
Net decrease in cash and cash equivalents (367,399) (1,053,109)
Cash and cash equivalents at beginning of the period 470,341 1,242,155
Cash and cash equivalents at end of the period $ 102,942 $ 189,046
Non-cash Investing and Financing Activities:
The Company had conversion of 41,500 shares of Series C preferred stock into 166,000 shares of common stock during the six months ended June 30, 2015.
The Company issued 750,004 warrants in connection with convertible debt during the six months ended June 30, 2015.
The Company issued 26,479,217 warrants in connection with the exercise of tender offer warrants during the six months ended June 30, 2016.
The Company had a debt discount of $336,175 in connection with convertible debt during the six months ended June 30, 2015.
The Company had a debt discount of $30,470 in connection with convertible debt during the six months ended June 30, 2016.
The Company issued 17,895,859 shares of Common Stock in connection with the exercise of tender offer warrants during the six months ended June 30, 2016.