4. Mergers and Acquisitions (Tables)

6 Months Ended

Jun. 30, 2014

Business Combinations [Abstract]

Schedule of Assets Acquired and Liabilities Assumed

	April 4,
	2014
Consideration:
Cash paid at, and prior to, closing	$	75,000
Fair value of identifiable assets acquired assumed:
Software	$	8,035
Trade name		1,826
Total fair value of assets assumed		9,861
Consideration paid in excess of fair value (Goodwill)(1)	$	65,139

	May 9,
	2014
Consideration:
Cash paid at, and prior to, closing	$	215,000
Seller financed note payable(1)(2)		210,000
Adjustments to cash paid at closing(3)		(7,055	)
		417,945
Fair value of identifiable liabilities acquired:
Deferred revenue		86,423
Fair value of total consideration exchanged	$	504,368
Fair value of identifiable assets acquired assumed:
Accounts receivable	$	42,382
Software		37,180
Trade name		24,941
Total fair value of assets assumed		104,503
Consideration paid in excess of fair value (Goodwill)(4)	$	399,865

	February 28,
	2014
Consideration:
Cash paid at, and prior to, closing	$	200,000
Seller financed note payable(1)(2)		120,000
Excess liability adjustment to seller financed note payable(3)		(18,000	)
		302,000
Fair value of identifiable liabilities acquired:
Accounts payable and accrued expenses		43,500
Deferred revenue		162,016
Line of credit		24,500
Fair value of total consideration exchanged	$	532,016
Fair value of identifiable assets acquired assumed:
Cash	$	736
Other current assets		823
Technology-based intangible assets		72,490
Trade name		29,390
Total fair value of assets assumed		103,439
Consideration paid in excess of fair value (Goodwill)(4)	$	428,577

Unaudited Supplemental Pro Forma Results of Operations

	Combined Pro Forma:
	For the six months ended June 30,
	2014			2013
Revenue:	$	748,952		$	745,071
Expenses:
Operating expenses		3,249,648			2,440,624
Net operating income (loss)		(2,500,696	)		(1,695,553	)
Other income (expense)		(1,972,184	)		(366,946	)
Net income (loss)	$	(4,472,880	)	$	(2,062,499	)
Weighted average number of common shares
Outstanding – basic and fully diluted		4,783,826,881			1,666,897,778
Net income (loss) per share – basic and fully diluted	$	(0.00	)	$	(0.00	)

		Combined pro Forma:
		For the six months ended June 30,
		2014		2013
Revenue:		$	668,780	$	775,668
Expenses:
	Operating expenses		3,190,846		2,550,029
Net operating income (loss)			(2,522,066)		(1,774,361)
	Other income (expense)		(1,968,126)		(359,687)
Net income (loss)		$	(4,490,192)	$	(2,134,048)
Weighted average number of common shares
	Outstanding – basic and fully diluted		4,783,826,881		1,666,897,778
Net income (loss) per share – basic and fully diluted		$	(0.00)	$	(0.00)

Schedule of revenue for the relevant year

Revenue for the Relevant Year	Earn-Out
$-0- to $500,000	$	–
$500,000 to $600,000	$	25,000
$600,000 to $700,000	$	50,000
$700,000 to $800,000	$	75,000
$800,000 or more	$	100,000