4. Mergers and Acquisitions (Tables)

9 Months Ended

Sep. 30, 2014

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

Strantin, Inc

Schedule of Assets Acquired and Liabilities Assumed

	July,
	2014
Consideration:
Cash paid at, and prior to, closing	$	100,000
Seller financed note payable(1)(2)		85,000
		185,000
Fair value of identifiable liabilities acquired:
Deferred revenue		36,638
Fair value of total consideration exchanged	$	221,638
Fair value of identifiable assets acquired assumed:
Software	$	9,447
Trade name		5,870
Goodwill		206,321
Total fair value of assets assumed		221,638
Consideration paid in excess of fair value (Goodwill)(3)	$	–

Unaudited Supplemental Pro Forma Results of Operations

	Combined Pro Forma:
	For the nine months ended September 30,
	2014			2013
Revenue:	$	1,039,287		$	990,049
Expenses:
Operating expenses		3,620,536			2,687,554
Net operating income (loss)		(2,581,249	)		(1,697,505	)
Other income (expense)		(2,141,440	)		(366,946	)
Net income (loss)	$	(4,472,880	)	$	(2,064,451	)
Weighted average number of common shares outstanding – basic and fully diluted		5,563,139,967			1,666,897,778
Net income (loss) per share – basic and fully diluted	$	(0.00	)	$	(0.00	)

Zinergy

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

Jadian [Member]

Schedule of Assets Acquired and Liabilities Assumed

	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

Unaudited Supplemental Pro Forma Results of Operations

	Combined Pro Forma:
	For the nine months ended September 30,
	2014			2013
Revenue:	$	1,112,167		$	1,274,813
Expenses:
Operating expenses		3,658,633			2,941,345
Net operating income (loss)		(2,546,466	)		(1,666,532	)
Other income (expense)		(2,153,780	)		(368,430	)
Net income (loss)	$	(4,700,246	)	$	(2,034,962	)
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	)

Telecorp [Member]

Schedule of Assets Acquired and Liabilities Assumed

	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 nine months ended September 30,
	2014			2013
Revenue:	$	1,029,930		$	1,311,150
Expenses:
Operating expenses		3,615,415			2,883,930
Net operating income (loss)		(2,585,485	)		(1,572,780	)
Other income (expense)		(2,228,419	)		(367,836	)
Net income (loss)	$	(4,813,904	)	$	(1,940,616	)
Weighted average number of common shares outstanding – basic and fully diluted		5,563,139,967			1,666,897,778
Net income (loss) per share – basic and fully diluted	$	(0.00	)	$	(0.00	)