Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2017

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The Company’s unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). The condensed consolidated financial statements include the accounts of all subsidiaries and affiliates in which the Company holds a controlling financial interest as of the date of the condensed consolidated financial statements. Normally, a controlling financial interest reflects ownership of a majority of the voting interests.

The condensed consolidated financial statements include the accounts of The Meet Group (formerly known as MeetMe) and its wholly-owned subsidiaries, Quepasa.com de Mexico, Quepasa Serviços em Solucoes de Publicidade E Tecnologia Ltda (inactive), MeetMe Online S/S Ltda, which was dissolved during the

fourth

quarter of

2016,

and Skout, LLC (“

Skout”

). All intercompany accounts and transactions have been eliminated in consolidation.

Unaudited Interim Financial Information

The unaudited condensed consolidated financial statements have been prepared by the Company and reflect all normal, recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the interim financial information. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the year ending

December

31,

2017.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited condensed consolidated financial statements and notes included herein should be read in conjunction with the audited consolidated financial statements and notes included in the Company's Annual Report on Form

-K for the year ended

December

31,

2016,

filed with the SEC on

March

2017.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of the Company’

s condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are required in the determination of revenue recognition, accounts receivable valuation, the fair value of financial instruments, the valuation of long-lived assets, valuation of deferred tax assets, income taxes, contingencies, goodwill and intangible assets, and stock-based compensation. Some of these judgments can be subjective and complex, and, consequently, actual results

may

differ from these estimates. The Company’

s estimates often are based on complex judgments, probabilities and assumptions that it believes to be reasonable but that are inherently uncertain and unpredictable. For any given individual estimate or assumption made by the Company, there

may

also be other estimates or assumptions that are reasonable.

The Company regularly evaluates its estimates and assumptions using historical experience and other factors, including the economic environment. As future events and their effects cannot be determined with precision, the Company’

s estimates and assumptions

may

prove to be incomplete or inaccurate, or unanticipated events and circumstances

may

occur that might cause it to change those estimates and assumptions. Market conditions, such as illiquid credit markets, volatile equity markets, dramatic fluctuations in foreign currency rates and economic downturn, can increase the uncertainty already inherent in its estimates and assumptions. The Company adjusts its estimates and assumptions when facts and circumstances indicate the need for change. Those changes generally will be reflected in the Company’

s consolidated financial statements on a prospective basis unless they are required to be treated retrospectively under the relevant accounting standard. It is possible that other professionals, applying reasonable judgment to the same facts and circumstances, could develop and support a range of alternative estimated amounts. The Company is also subject to other risks and uncertainties that

may

cause actual results to differ from estimated amounts, such as changes in competition, litigation, legislation and regulations.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the purchase price is fixed or determinable and collectability is reasonably assured. The Company earns revenue from the display of advertisements on its mobile apps and website, primarily based on a cost per thousand (“

CPM”

) model. The Company recognizes revenue in accordance with ASC

605,

“

Revenue

Recognition,

”

and ASC

605

“

Principal

Agent Considerations”

(together, the “

ASC Guidance”

). Revenue from advertising on the Company’

s website and mobile apps is generally recognized on a net basis, since the majority of its advertising revenues come from advertising agencies. The guidance provides indicators for determining whether “

gross”

or “

net”

presentation is appropriate. While all indicators should be considered, the Company believes that whether it acted as a primary obligor in its agreements with advertising agencies is the strongest indicator of whether gross or net revenue reporting is appropriate.

During the

three

months ended

March

31,

2017

and

2016,

the Company had transactions with several partners that qualify for principal agent considerations. The Company recognizes revenue, net of amounts retained by

third

party entities, pursuant to revenue sharing agreements with advertising networks for advertising and with other partners for royalties on product sales. The Company considered

two

key factors when making its revenue recognition determinations:

(1)

whether the Company performed a service for a fee, similar to an agent or a broker; and

(2)

whether the Company was involved in the determination of product or service specifications. The Company focused on the substance of the agreements and determined that net presentation was representationally faithful to the substance, as well as the form, of the agreements. The form of the agreements was such that the Company provided services in exchange for a fee. In addition, the Company has no latitude in establishing price, and the advertising agencies were solely responsible for determining pricing with

third

party advertisers. The Company determined only the fee for providing its services to advertising agencies.

In instances in which the Company works directly with an advertiser, revenue is recognized on a gross basis. The Company is the primary obligor in arrangements made with direct advertisers, as there is no

third

party facilitating or managing the sales process. The Company is solely responsible for determining price, product or service specifications, and which advertisers to use. The Company assumes all credit risk in the sales arrangements made with direct advertisers.

During the

three

months ended

March

31,

2017

and

2016,

the Company’

s revenue was generated from

two

principal sources: revenue earned from the sales of advertising on the Company’

s mobile applications and website and revenue earned from in-app products.

Advertising Revenue

Advertising and custom sponsorship revenues consist primarily of advertising fees earned from the display of advertisements on the Company’

s website and mobile applications. Revenue from advertising is generally recognized as advertisements are delivered. The Company recognizes advertising revenue from customers that are advertising networks on a net basis, while advertising revenues earned directly from advertisers are recognized on a gross basis. Approximately

86%

and

85%

of the Company’s revenue came from advertising during the

three

months ended

March

31,

2017

and

2016,

respectively.

In-App Purchases

Revenue is earned from in-app purchase products sold to our mobile application and website users. The Company offers in-app products such as Credits and Points. Users buy Credits or Points to purchase the Company’

s virtual products. These products put users in the spotlight, helping users to get more attention from the community in order to meet more people faster. Revenue from these virtual products is recognized over time. Credits and Points can be purchased using iTunes and Google checkout on mobile applications. Platform users do not own the Credits or Points but have a limited right to use the Credits or Points on virtual products offered for sale on the Company’

s platforms. Credits and Points are non-refundable, the Company

may

change the purchase price of Credits or Points at any time, and the Company reserves the right to stop issuing Credits and Points in the future. The Company’

s in-app products are not transferable, cannot be sold or exchanged outside our platform, are not redeemable for any sum of money, and can only be used on the Company’

s platforms. In-app products are recorded in deferred revenue when purchased and recognized as revenue when: (i) the Credits or Points are used by the customer; or (ii) the Company determines the likelihood of the Credits or Points being redeemed by the customer is remote (breakage) and there is not a legal obligation to remit the unredeemed Credits or Points to the relevant jurisdiction. The determination of the breakage rate is based upon Company-specific historical redemption patterns. Breakage is recognized in revenue as the Credits are used on a pro rata basis over a

three

month period (life of the user) beginning at the date of the Credit’

s sale and is included in revenue in the consolidated statements of operations and comprehensive income. Breakage recognized during the

three

months ended

March

31,

2017

and

2016

was

$298,000

and

$299,000,

respectively. For “MeetMe+” and other subscription based products, the Company recognizes revenue over the term of the subscription.

The Company also earns revenue from advertisement products from currency engagement actions (i.e. sponsored engagement advertisements) by users on all of the Company’

s platforms, including cost-per-action (“

CPA”

) currency incented promotions and sales on its proprietary cross-platform currency monetization product, “

Social Theater.”

The Company controls and develops the Social Theater product and CPA promotions and acts as a user’

s principal in these transactions and recognizes the related revenue on a gross basis when collections are reasonably assured and upon delivery of the Credits to the user’

s account. When a user performs an action, the user earns Credits and the Company earns product revenue from the advertiser.

Social Theater is a product that allows the Company to offer advertisers a way to leverage the

third

party platforms through guaranteed actions by their user bases. Social Theater is also hosted on the Company’

s platform. Typical guaranteed actions available to advertisers are video views, fan page growth, quizzes and surveys. Social Theater revenue is recognized when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, collectability is reasonably assured, and the service has been rendered. Social Theater prices are both fixed and determinable based on the contract with the advertiser. The user completes an action and the electronic record of the transaction triggers the revenue recognition. The collection of the Social Theater revenue is reasonably assured by contractual obligation and historical payment performance. The delivery of virtual currency from the hosting platform to a user evidences the completion of the action required by the customer that the service has been rendered for Social Theater revenue recognition.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

The fair values of the Company’s financial instruments reflect the amounts that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price).

The carrying amounts of the Company’s financial instruments of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short maturities. Certain common stock warrants are carried at fair value as disclosed in Note

The Company has evaluated the estimated fair value of financial instruments using available market information and management's estimates. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts.

In addition, the Company carries its contingent consideration liabilities related to acquisitions at fair value. In accordance with the

three

-tier fair value hierarchy, the Company determined the fair value of its contingent consideration liabilities using the income approach with assumed discount rates and payment probabilities. The income approach uses Level

or unobservable inputs as defined under the accounting guidance for fair value measurements. At

March

31,

2017

and

December

31,

2016,

the Company’

s contingent consideration liability had a fair value of

$3.0

million. See Note

for more information regarding the Company’

s contingent consideration liability.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency

The functional currency of our foreign subsidiaries is the local currency. The financial statements of these subsidiaries are translated to U.S. dollars using period-end rates of exchange for assets and liabilities and average quarterly rates of exchange for revenues and expenses. Net gains and losses resulting from foreign exchange transactions are included in other income (expense). The Company’s foreign operations were substantially liquidated in the

first

quarter of

2015.

Due to our current reporting metrics, providing revenues from users attributed to the U.S. and revenues from users attributed to all other countries is impracticable.

Earnings Per Share, Policy [Policy Text Block]

Net Income per Share

Basic net income per share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding. Diluted net income per share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares and common stock equivalents outstanding, calculated on the treasury stock method for options and warrants using the average market prices during the period.

The following table shows the computation of basic and diluted net income per share for the following:

	For the Three Months Ended March 31,
	2017		2016
Numerator:
Net income	$	445,846	$	2,354,898

Denominator:
Weighted-average shares outstanding		61,093,810		47,458,748
Effect of dilutive securities		5,110,810		6,207,878
Weighted-average diluted shares		66,204,620		53,666,626

Basic income per share	$	0.01	$	0.05
Diluted income per share	$	0.01	$	0.04

The following table summarizes the number of dilutive securities, which

may

dilute future earnings per share, outstanding for each of the periods presented, but not included in the calculation of diluted loss per share:

	For the Three Months Ended March 31,
	2017		2016
Stock options		3,815,725		6,030,169
Warrants		384,595		2,267,612
Totals		4,200,320		8,297,781

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Significant Customers and Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, and accounts receivable. The Company invests its excess cash in high-quality, liquid money market funds maintained by major U.S. banks and financial institutions. The Company has not experienced any losses on its cash equivalents.

The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company has no recent history of significant losses from uncollectible accounts. During the

three

months ended

March

31,

2017

and

2016,

four

customers and

two

customers, all which were advertising aggregators, which represent thousands of advertisers, comprised approximately

63%

and

47%

of total revenues, respectively.

Four

customers and

three

customers, all of which were advertising aggregators, which represent thousands of advertisers, comprised of approximately

57%

and

49%

of accounts receivable as of

March

31,

2017

and

December

31,

2016,

respectively.

The Company does not expect its current or future credit risk exposure to have a significant impact on its operations. However, there can be no assurance that the Company’s business will not experience any adverse impact from credit risk in the future.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Issued Accounting Standards

May

2014,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

2014

09,

Revenue from Contracts with Customers.

ASU

2014

supersedes the revenue recognition requirements of FASB ASC Topic

605,

Revenue Recognition

and most industry-specific guidance throughout the ASC, resulting in the creation of FASB ASC Topic

606,

Revenue from Contracts with Customers

. ASU

2014

requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. This ASU provides alternative methods of adoption. In

August

2015,

the FASB issued ASU

2015

14,

Revenue from Contracts with Customers, Deferral of the Effective Date

. ASU

2015

defers the effective date of ASU

2014

to annual reporting periods beginning after

December

15,

2017

and interim periods within those reporting periods beginning after that date, and permits early adoption of the standard, but not before the original effective date for fiscal years beginning after

December

15,

2016.

March

2016,

the FASB issued ASU

2016

08,

Revenue from Contracts with Customers, Principal versus Agent Considerations (Reporting Revenue Gross versus Net)

clarifying the implementation guidance on principal versus agent considerations. Specifically, an entity is required to determine whether the nature of a promise is to provide the specified good or service itself (that is, the entity is a principal) or to arrange for the good or service to be provided to the customer by the other party (that is, the entity is an agent). The determination influences the timing and amount of revenue recognition. In

April

2016,

the FASB issued ASU

2016

10,

Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing

clarifying the implementation guidance on identifying performance obligations and licensing. Specifically, the amendments reduce the cost and complexity of identifying promised goods or services and improves the guidance for determining whether promises are separately identifiable. The amendments also provide implementation guidance on determining whether an entity's promise to grant a license provides a customer with either a right to use the entity's intellectual property (which is satisfied at a point in time) or a right to access the entity's intellectual property (which is satisfied over time). The effective date and transition requirements for ASU

2016

and ASU

2016

are the same as the effective date and transition requirements for ASU

2014

09.

May,

2016

the FASB issued ASU No.

2016

Revenue from Contracts with Customers (Topic

606):

Narrow-Scope Improvements and Practical Expedients

, which clarifies guidance in certain narrow areas and adds a practical expedient for certain aspects of the guidance. The amendments do not change the core principle of the guidance in ASU

2014

09.

Management is still evaluating disclosure requirements under the new standard and will continue to evaluate the standard as well as additional changes, modifications or interpretations which

may

impact current conclusions. The Company has engaged a

third

-party to assist in the assessment and implementation of this standard. They have begun assessing the impact that these standards will have on our financial position and results of operations. Management is expecting to complete the evaluation of the impact of the accounting and disclosure changes on the business processes, controls and systems throughout

2017

and will adopt the new standard using the modified retrospective method.

August

2014,

the FASB issued ASU

2014

15,

Presentation of Financial Statements - Going Concern (Subtopic

205

40):

Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern

. ASU

2014

explicitly requires management to evaluate, at each annual or interim reporting period, whether there are conditions or events that exist which raise substantial doubt about an entity’

s ability to continue as a going concern and to provide related disclosures. ASU

2014

is effective for annual periods ending after

December

15,

2016,

and annual and interim periods thereafter, with early adoption permitted. The adoption of ASU

2014

had no material impact on the Company’s consolidated financial statements.

February

2016,

the FASB issued ASU No.

2016

02,

Leases

(Topic

842).

The new standard establishes a right-of-use (ROU) model that requires a lessee to record an ROU asset and a lease liability on the balance sheet for all leases with terms longer than

months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU

2016

is effective for annual periods beginning after

December

15,

2018,

and annual and interim periods thereafter, with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact that the adoption of this new standard will have on its consolidated financial statements.

August

2016,

the FASB issued ASU No.

2016

15,

Statement of Cash Flows (Topic

230):

Classification of Certain Cash Receipts and Cash Payments

, providing additional guidance on several cash flow classification issues, with the goal of the update to reduce the current and potential future diversity in practice. The amendments in this update are effective for fiscal years beginning after

December

15,

2017,

and interim periods within those fiscal years. The Company is currently evaluating the impact that the adoption of this new standard will have on its consolidated financial statements.

November

2016,

the FASB issued ASU No.

2016

, Statement of Cash Flows (Topic

230):

Restricted Cash

(“

ASU

2016

18”

), which amended the existing accounting standards for the statement of cash flows by requiring restricted cash to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU

2016

will be effective in fiscal years beginning after

December

15,

2017,

including interim periods within those fiscal years, and early adoption is permitted. The Company has early adopted this new standard beginning in the

fourth

quarter of

2016

and it has been applied retrospectively to all periods presented.