10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑	QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2016
	OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number:   000-54918

MCORPCX, INC.

(Exact name of registrant as specified in its charter)

California

(State or other jurisdiction of incorporation or organization)

26-0030631

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

201 Spear Street, Suite 1100

San Francisco, CA   94105

(Address of principal executive offices, including zip code)

(415) 526-2655

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 last 90 days.  

YES ☑     NO ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   YES ☑     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.  See the definitions of "large accelerated filer," "accelerated filer," "non-accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	☐	Accelerated Filer	☐
Non-accelerated Filer (Do not check if a smaller reporting company)	☐	Smaller Reporting Company	☑

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   YES ☐     NO ☑

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicated the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

20,426,158 as of August 12, 2016. 

MCORPCX, Inc.

Form 10-Q Quarterly Report

TABLE OF CONTENTS

		Page No.
	Part I. - Financial Information
Item 1.	Condensed Financial Statements.	3
	Condensed Balance Sheets as of June 30, 2016 (unaudited) and December 31, 2015.	3
	Condensed Statements of Operations for the Three and Six Months ended June 30, 2016 and 2015 (unaudited).	4
	Condensed Statements of Cash Flows for the Six Months ended June 30, 2016 and 2015 (unaudited).	5
	Notes to Condensed Financial Statements (unaudited).	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations.	12
Item 3.	Quantitative and Qualitative Disclosure about Market Risk.	17
Item 4.	Controls and Procedures.	17
	Part II. - Other Information	18
Item 1.	Legal Proceedings.	18
Item 1A.	Risk Factors.	18
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	18
Item 3.	Defaults Upon Senior Securities.	18
Item 4.	Mine Safety Disclosures.	18
Item 5.	Other Information.	18
Item 6.	Exhibits.	18
Signatures		19
Exhibit Index		20

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PART I. FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS.

McorpCX, Inc.

Condensed Balance Sheets

	June 30,			December 31,
	2016			2015
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	2,538,902		$	492,733
Accounts receivable		113,404			114,805
Total current assets		2,652,306			607,538
Long term assets:
Property and equipment, net		96,532			89,725
Capitalized software development costs, net		191,626			61,224
Intangible assets, net		95,279			83,072
Other assets		64,065			23,541
Total assets	$	3,099,808		$	865,100
Liabilities and Shareholders' Equity
Liabilities:
Accounts payable	$	249,734		$	133,046
Deferred revenue		104,653			118,034
Other current liabilities		5,105			6,718
Total current liabilities		359,492			257,798
Notes payable, net of current portion		50,000			50,000
Related party notes, net of current portion		77,150			70,829
Total liabilities		486,642			378,627
Shareholders' equity:
Common stock, $0 par value, 30,000,000 shares authorized, 20,426,158 and 16,766,158 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively		-			-
Additional paid-in capital		6,154,034			3,339,503
Accumulated deficit		(3,540,868	)		(2,853,030	)
Total shareholders' equity		2,613,166			486,473
Total liabilities and shareholders' equity	$	3,099,808		$	865,100

The accompanying notes are an integral part of these unaudited statements.

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McorpCX, Inc.

Condensed Statement of Operations

(unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Revenue
Consulting services	$	450,208		$	275,069		$	636,742		$	640,238
Products & other		40,743			57,551			90,162			123,253
Total revenue		490,951			332,620			726,904			763,491
Cost of goods sold
Labor		49,905			93,242			81,423			181,506
Products and other		67,812			46,840			129,439			132,489
Total cost of goods sold		117,717			140,082			210,862			313,995
Gross profit		373,234			192,538			516,042			449,496
Expenses
Salaries and wages		248,398			209,220			491,900			462,426
Contract services		23,395			83,311			68,800			128,947
Other general and administrative		294,794			179,849			626,883			271,164
Total expenses		566,587			472,380			1,187,583			862,537
Net operating loss		(193,353	)		(279,842	)		(671,541	)		(413,041	)
Interest expense		(4,131	)		(4,746	)		(7,850	)		(7,195	)
Other income (expense)		(1,597	)		(850	)		(8,447	)		5,231
Loss before income taxes		(199,081	)		(285,438	)		(687,838	)		(415,005	)
Income tax provision		-			-			-			-
Net loss	$	(199,081	)	$	(285,438	)	$	(687,838	)	$	(415,005	)
Net loss per share-basic and diluted	$	(0.01	)	$	(0.02	)	$	(0.03	)	$	(0.03	)
Weighted average common shares outstanding-basic and diluted		20,426,158			16,626,667			19,782,642			16,492,158

The accompanying notes are an integral part of these unaudited statements.

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McorpCX, Inc.

Condensed Statement of Cash Flows

(unaudited)

	Six Months Ended June 30,
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(687,838	)	$	(415,005	)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization		57,889			47,754
Stock compensation expense		69,531			30,557
Loss on disposal of assets		-			1,484
Unrealized (gain) loss on foreign currency translation		6,321			(6,142	)
Realized gain on foreign currency translation		-			911
Changes in operating assets and liabilities:
Accounts receivable		1,401			(40,595	)
Other assets		(40,524	)		14,849
Accounts payable		116,688			83,687
Other current liabilities		(19,133	)		(273	)
Deferred revenue		(13,381	)		(23,591	)
Accrued interest		17,520			2,610
Net cash used in operating activities		(491,526	)		(303,754	)
INVESTING ACTIVITIES
Equipment purchases		(8,856	)		(2,597	)
Payments for acquisition of intangible assets		(30,000	)		-
Capitalized web development costs		-			(39,088	)
Capitalized software development costs		(168,449	)		-
Net cash used in investing activities		(207,305	)		(41,685	)
FINANCING ACTIVITIES
Proceeds from private placement of common stock		2,745,000			513,750
Net cash provided by financing activities		2,745,000			513,750
Increase in cash and cash equivalents		2,046,169			168,311
Cash and cash equivalents, beginning of period		492,733			649,063
Cash and cash equivalents, end of period	$	2,538,902		$	817,374
Supplemental disclosure of cash flow information:
Interest paid		5,330			4,585

The accompanying notes are an integral part of these unaudited statements.

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MCORPCX, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2016

(unaudited)

Note 1: Organization and Basis of Presentation

McorpCX, Inc. (the "Company", “we”, “us”) is a for profit corporation established under the corporation laws in the State of California, United States of America on December 14, 2001. We operated as The Innes Group, Inc., dba MCorp Consulting until filing a Certificate of Amendment to the Articles of Incorporation renaming the Company Touchpoint Metrics, Inc., effective October 18, 2011. During Q1 2015, the we filed a d/b/a (doing business as) with the State of California Secretary of State to begin doing business as McorpCX. On June 11, 2015, at our Annual General Meeting, shareholders passed a resolution to change the name of the Company to McorpCX, Inc.

We develop and delivers technology-enabled products and services that improve customer experience management capabilities for corporations. Our products assist companies with improving business performance by measuring and transforming the ways they interact with customers. We serve a wide variety of industries and customer sizes.

The condensed financial statements and related disclosures as of June 30, 2016 and for the three and six months ended June 30, 2016, are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC"). The condensed balance sheet as of December 31, 2015 was derived from the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. In our opinion, these condensed financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These condensed financial statements should be read in conjunction with the financial statements included in our Annual Report for the year ended December 31, 2015, filed on Form 10-K with the SEC on March 30, 2016.  The results of operations for the three and six months ended June 30, 2016, are not necessarily indicative of the results to be expected for the full year. Unless the context otherwise requires, all references to "McorpCX," "we," "us," "our" or the "Company" are to McorpCX, Inc. and our subsidiaries.

Note 2: Recent Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases: (Topic 842), to provide guidance on recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements, specifically differentiating between different types of leases. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from all leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous GAAP. There continues to be a differentiation between finance leases and operating leases. However, the principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases should be recognized in the statement of financial position. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. We are currently evaluating the impact of these amendments on its financial statements.

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MCORPCX, INC.

NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2016

(unaudited)

In March 2016, the FASB issued ASU No. 2016-9, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to reduce complexity in accounting standards involving several aspects of the accounting for employee share-based payment transactions, including (1) the income tax consequences, (2) classification of awards as either equity or liabilities, and (3) classification on the statement of cash flows. The amendments will be effective for financial statements issued for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and early adoption is permitted. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition, amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively, amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively, and amendments related to the presentation of excess tax benefits on the statement of cash flows can be applied using either a prospective transition method or a retrospective transition method. An entity that elects early adoption must adopt all of the amendments in the same period. We are currently evaluating the impact of these amendments on our financial statements.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. The effective date and transition requirements for these amendments are the same as the effective date and transition requirements of ASU 2014-09. We are currently evaluating the impact of these amendments on our financial statements.

In April 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, to clarify the following two aspects of Topic 606: 1) identifying performance obligations, and 2) the licensing implementation guidance. The effective date and transition requirements for these amendments are the same as the effective date and transition requirements of ASU 2014-09. We are currently evaluating the impact of these amendments on our financial statements.

In May 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, to clarify certain core recognition principles including collectability, sales tax presentation, noncash consideration, contract modifications and completed contracts at transition and disclosures no longer required if the full retrospective transition method is adopted. The effective date and transition requirements for these amendments are the same as the effective date and transition requirements of ASU 2014-09. We are currently evaluating the impact of these amendments on our financial statements.

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MCORPCX, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2016

(unaudited)

Note 3: Capitalized Software Development Costs

Costs incurred to develop Software as a Service (SaaS) technology consist of external direct costs of materials and services and payroll and payroll-related costs for employees who directly devote time to the project. Research and development costs incurred during the preliminary project stage are expensed as incurred. Capitalization begins when technological feasibility is established. Costs incurred during the operating stage of the software application relating to upgrades and enhancements are capitalized to the extent that they result in the extended life of the product. All other costs are expensed as incurred. During the six months ended June 30, 2016 expenses relating to upgrades and enhancements of $168,449 were capitalized.

Amortization of software development costs commenced when the product was available for general release to customers. The capitalized costs are amortized on a straight line basis over the three year expected useful life of the software. Capitalized software development costs, net of amortization, were $191,626 and $61,224 as of June 30, 2016 and December 31, 2015, respectively. Amortization expense incurred during the six months ended June 30, 2016 and 2015 was $38,047 and $36,551, respectively and is included in cost of goods sold.

Note 4: Intangible Assets

Intangibles as of June 30, 2016 consisted of the following:

	June 30, 2016
			Accumulated
	Gross		Amortization			Net Book Value
PetroPortfolio	$	131,151	$	(89,538	)	$	41,613
Website development costs		67,113		(42,197	)	$	24,916
Media distribution rights		25,000		(1,042	)	$	23,958
Intellectual property		5,000		(208	)	$	4,792
LinkedIn Group		2,500		(2,500	)	$	-
Organization costs		1,377		(1,377	)	$	-
Total intangibles	$	232,141	$	(136,862	)	$	95,279

We began development of a new Company website in September 2014; related costs incurred during the design and production stages of website development were capitalized prior to its go-live date, which occurred in March 2015.  Now that the website is live, all capitalized costs are amortized using straight-line basis over two years, the estimated economic life of the completed website.

Acquisition of media distribution rights occurred in May 2016 and all capitalized costs are amortized using straight-line basis over two years, the estimated economic life of this asset.

Acquisition of intellectual property occurred in June 2016 and capitalized costs are amortized using straight-line basis over two years, the estimated economic life of this asset.

Our intangible assets are reviewed for impairment when facts or circumstances suggest that the carrying value of the asset may not be recoverable.  There were no impairment charges during the six months ending June 30, 2016 and 2015.

Total amortization of intangible assets was $17,793 and $9,945 for the six months ended June 30, 2016 and 2015, respectively.

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MCORPCX, INC.

NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2016

(unaudited)

Note 5: Stock-Based Compensation

Our stock-based compensation plan was originally established in 2008. The shares of our common stock issuable pursuant to the terms of such plan (the “Plan Shares”) could not exceed 30% of any outstanding issue or 2,500,000 shares, whichever was the lower amount.

In December 2015, we adopted a revised share option plan in which Plan Shares cannot exceed 10% of the total issued and outstanding shares at any given time. All stock option grants have an exercise price equal to the fair market value of our common stock on the date of the grant and all option grants have a 10-year term.

In order to calculate the fair value of stock options at the date of grant, we use the Black-Scholes option pricing model. The volatility used is based on a blended historical volatility of our own stock and similar sized companies due to the limited historical data available for our own stock price.  The expected term was determined based on the simplified method outlined in Staff Accounting Bulletin No. 110.  The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

At June 30, 2016, 906,000 stock options were exercisable and $69,531 of total compensation cost related to vested share-based compensation grants had been recognized for six months ended June 30, 2016. Unrecognized compensation expense from stock options was $260,660 at June 30, 2016, which is expected to be recognized over a weighted-average vesting period of 1.80 years beginning July 1, 2016.

The following table summarizes our stock option activity for the six months ended June 30, 2016:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
	Number of			Exercise		Contractual		Intrinsic
	Shares			Price		Term (in years)		Value
Outstanding at December 31, 2015		1,730,000		$	0.70		8.37		1,810,200
Granted		70,000		$	1.95		-		-
Exercised		-		$	-		-		-
Forfeited or expired		(20,000	)	$	2.20		-		-
Outstanding at June 30, 2016		1,780,000		$	0.74		8.02		592,800
Exercisable at June 30, 2016		906,000		$	0.56		7.07	$	592,800
Vested or expected to vest		1,644,540		$	0.73

The following assumptions were used to calculate weighted average fair values of the options granted in the six months ended June 30, 2016 and 2015:

	Six Months Ended			Six Months Ended
	June 30,			June 30,
	2016			2015
Expected life (in years)		5.84			5.75
Risk-free interest rate		1.45	%		1.67	%
Volatility		111.43	%		51.94	%
Dividend yield		-			-
Weighted average grant date fair value per option granted	$	1.81		$	0.21

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MCORPCX, INC.

NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2016

(unaudited)

Note 6: Concentrations

We sell products and services under various terms to a broad range of companies across multiple industries ranging from start-ups to Fortune 500 companies, with sales historically concentrated among a few large clients. In 2016 we have made efforts to mitigate risk from loss of a single client and have shifted sales concentration to a more even distribution among our clients. For the six months ended June 30, 2016 and 2015, the percentage of sales and the concentrations are:

	Six Months Ended
	June 30,
	2016			2015
Largest client		21.56	%		48.03	%
Second largest client		21.55	%		14.34	%
Third largest client		17.27	%		14.26	%
Next three largest clients		21.76	%		20.04	%
All other clients		17.86	%		3.33	%
		100.00	%		100.00	%

Sales are made without collateral and the credit-related losses have been insignificant or non-existent. Accordingly, there is no provision made to include an allowance for doubtful accounts.

Note 7: Debt

On September 16, 2011, a $100,000 CAD note was executed with an individual, a 1.64% shareholder. The note is structured to incur a balloon payment of the principal and 4% APR non-compounding accrued interest on its amended maturity date of September 16, 2016.  All accrued interest to date was paid in September 2014. We have recorded unrealized loss of $6,321 and a gain of $6,142 during the six months ended June 30, 2016 and 2015, respectively, related to the revaluation of this note's principal from CAD to USD.  As of June 30, 2016, principal and accrued interest was $77,150 and $5,654, respectively.

On September 7, 2011, a $50,000 USD note was executed with McLellan Investment Corporation, a related party. The note is structured to incur a balloon payment of the principal and 4% APR non-compounding accrued interest on its amended maturity date of September 7, 2016. All accrued interest to date was paid in September 2014. As of June 30, 2016, principal and accrued interest was $50,000 and $3,583, respectively.

Interest expense was $7,850 and $7,195 for the six months ended June 30, 2016 and 2015, respectively and consists of interest on our short-term promissory notes, and credit card balances.

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MCORPCX, INC.

NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2016

(unaudited)

Note 8: Shareholders Equity

On February 2, 2016 we completed a private placement of 3,660,000 restricted shares of common stock in consideration for $2,745,000 or at a rate of $0.75 per share. The private placement was completed in connection with and as a condition of our listing on the TSX Venture Exchange. The proceeds will be used for sales and marketing, product development and for general working capital purposes.

The Company is authorized to issue 30,000,000 shares of common stock, no par value per share.

Note 9: Going Concern

The accompanying financial statements and notes have been prepared assuming that the Company will continue as a going concern.

For the six months ended June 30, 2016 we had a net loss of $687,838.  We also had a net loss of $415,005 for the six months ended June 30, 2015. These circumstances result in substantial doubt as to our ability to continue as a going concern which is dependent upon our ability to continue to generate sufficient revenues to operate profitably, or raise additional capital through debt financing and/or through sales of common stock.

The failure to achieve the necessary levels of profitability or obtain the additional funding would be detrimental.  The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Cautionary Statement

This Management's Discussion and Analysis includes a number of “forward-looking statements”, that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: "believe," "expect," "plan", "estimate," "anticipate," "intend," "project," "will," "predicts," "seeks," "may," "would," "could," "potential," "continue," "ongoing," "should" and similar expressions, or words which, by their nature, refer to future events. Although we believe that our expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this Form 10-Q. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or from our predictions. Other than as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.

Unless the context otherwise requires, all references to "McorpCX," "we," "us," "our" or the "Company" are to McorpCX, Inc. and our subsidiaries.

Overview

We are a customer experience (CX) management solutions company that develops and delivers technology products such as Touchpoint Mapping®, an on-demand "cloud based" suite of customer experience management software, and that also provides professional and related services designed to help organizations improve customer experiences, increase customer loyalty, reduce costs and increase revenue.

We believe that delivering better customer experiences is a powerful, sustainable way for any organization to differentiate from their competition. We are engaged in the business of developing and delivering technology-enabled products and professional services that help large, medium and small organizations improve their customer listening and customer experience management capabilities.

Our current product, Touchpoint Mapping® On-Demand, is a research-based software solution designed to be a comprehensive customer experience solution for customer-centric organizations to measure and gather customer data across all their touchpoints, channels and interactions with their customers. Touchpoint Mapping® On-Demand is designed to enable an organization to see where and how to improve brand and customer loyalty, as well as their customers' experiences across multiple channels and touchpoints.

Our professional services are intended to help primarily large and medium sized organizations plan, design and deliver better customer experiences, and to analyze and review client data gathered through our software application. Other services include customer experience training, strategy consulting and business process optimization, which are intended to increase our customers' adoption of our products and services, help our customers maximize their return on investment, and improve our customers' efficiency.

Development of our software is ongoing, as Touchpoint Mapping® On-Demand is refined and improved based on customer feedback, and customized for specific organizations and industry sectors. The services delivered with Touchpoint Mapping® On-Demand may include consulting and additional research services, as well as services such as assessment, integration, implementation and additional offline analysis and reporting of data.

Though we released Touchpoint Mapping^® On-Demand in 2013, we cannot predict the timing or probability of generating material sales revenue from it.  As of this filing, we have yet to engage the necessary sales and marketing staff or the capabilities required to identify, develop, and close material product sales opportunities, and currently lack sufficient resources to market and sell our products in the manner which we believe is required to achieve our product sales and revenue growth objectives.

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Sources of Revenue

Our revenue consisted primarily of professional and software-enabled consulting services, product sales and other revenues in 2016 and 2015. Consulting services include customer experience management consulting in the areas of strategy development, planning, education, training and program design, and includes the articulation of customer-centric strategies and implementation roadmaps in support of these strategies. Product revenue is from productized and software-enabled service sales not elsewhere classified, while other revenue includes reimbursement of related travel costs and out-of-pocket expenses.

While our plan of operations is based on migrating the majority of our service revenue from these categories to recurring Software as Service (“SaaS”) subscription fees, we anticipate that fees for professional and software-enabled consulting services will remain a significant revenue source in the foreseeable future. As of June 30, 2016, we have successfully delivered certain features and functionality of our software product, Touchpoint Mapping^® On-Demand, to several clients. However, we have not obtained material stand-alone sales commitments for Touchpoint Mapping^® On-Demand, and do not anticipate being able to do so until we engage the necessary sales and marketing staff to develop and execute product sales opportunities.

Should we successfully obtain material sales commitments for Touchpoint Mapping^® On-Demand, we anticipate that subscription agreements and related professional services associated with delivering our software solutions will become a source of increased revenue. Subscriptions and associated professional services pricing are based on our gross margin objectives, growth strategies and the specific needs of our clients' organizations, measured primarily by the following metrics: breadth of insights sought, number of employees, number of customers and customer segments, frequency of insights gathered, and other variables.

Subscription agreements for our software solutions are offered as monthly term agreements which contain a minimum commitment period of at least 12 months, and which include related setup, upgrades, hosting and support. Professional services include consulting fees related to implementation, customization, configuration, training and other services.

Based on data gathered during the implementation stage of on-demand software and software-enabled services engagements, we believe that the average time it will take our clients from placing an order to live deployment of our products is between 30 and 45 days. We typically invoice clients upon inception of subscription agreements for setup and total subscription fees contracted over the term of the agreements, with payment due within 30 days.

Professional services related to the subscription agreements are invoiced at the inception of the professional services agreement at one-third or fifty percent of total fees, with the balance of payments due over the duration of the contract as project milestones are met. Amounts invoiced are recorded in accounts receivable and deferred revenue or revenue, depending on whether revenue recognition criteria have been met.

Cost of Revenue and Operating Expenses

Our costs of revenue and operating expenses are detailed at the sub-category level in our Income Statements. And while the financial results for these categories are further explained in the Results of Operations section below, a general description of these categories follows:

Cost of Goods Sold

Cost of goods sold has historically consisted primarily of expenses directly related to providing professional and consulting services. Those expenses include contract labor, third-party services, and materials and travel expenses related to providing professional services to our clients.  However, as certain features of Touchpoint Mapping^® On-Demand were made available for general release beginning in 2014, costs of goods now also includes significant product-related hosting and monitoring costs, licenses for products embedded in the application, amortization of capitalized software development costs, related sales commissions, service support, account management and subscriptions, as applicable.

-13-

Should our client base grow, we intend to continue to invest additional resources in our hosting, technical support and professional services capabilities, as well as our utilization of third-party licensed software.

General and Administrative Expenses

General and administrative expenses consist primarily of salary and related expenses for management, client delivery, finance and accounting, and marketing personnel. Expenses also include contract services, as well as marketing and promotion costs, professional fees, software license fee expenses, administrative costs, insurance, rent and a portion of travel expenses and other overhead, which are categorized as “other general and administrative expenses” in our financial statements.

Sales and marketing expenses are currently reflected in salaries and wages, commissions, contract labor, sales, marketing and promotion, and other related overhead expense categories. Since we currently recognize revenue over the terms of the subscriptions or professional services engagements, we expect to experience a delay between increases in selling and marketing expenses and the recognition of revenue. We expect to continue to incur significant sales and marketing expenses in both absolute dollars and as a percentage of expenses as we hire sales and additional marketing personnel and increase the level of marketing activities.

We expect that total general and administrative expenses will increase as we continue to add personnel in connection with the growth of our business. In addition to increases in sales and marketing and research and development expenses, in order to meet the requirements of a public company we anticipate we will also incur additional employee salaries and related expenses, professional service fees and insurance costs in connection with any growth of our business and operations.

Results of Operations

					Change from			Percent Change
Revenue	2016		2015		Prior Year			from Prior Year
Three Months Ended June 30,	$	490,951	$	332,620	$	158,331			48	%
Six Months Ended June 30,	$	726,904	$	763,491	$	(36,587	)		(5	%)

Revenues were lower for the six months ended June 30, 2016 when compared to the same period in 2015, primarily due to decreased revenues from consulting services in the first half of 2016 compared to the first half of 2015 mainly due to a decrease in revenues from our consulting services during the three months ended March 31, 2016, not being fully offset by increased revenues from our consulting services in the second quarter of 2016. Revenues also decreased from our software products and software related services in the first half of 2016 compared to the same period in 2015. During the first quarter of 2016, we decided to focus on internal initiatives that we believed were critical to our long-term growth. These initiates included the listing of our shares of common stock on the TSX Venture Exchange and the closing of the related private placement of our common stock in February 2016.

Total revenues in the second quarter of 2016 were 48% higher than total revenues in the second quarter of 2015, mainly due to increased revenue from consulting services in the second quarter of 2016 that was primarily the result of management’s re-focus on business development and revenue generating efforts in that quarter.

					Change from			Percent Change
Cost of Goods Sold	2016		2015		Prior Year			from Prior Year
Three Months Ended June 30,	$	117,717	$	140,082	$	(22,365	)		(16	%)
Six Months Ended June 30,	$	210,862	$	313,995	$	(103,133	)		(33	%)

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Cost of goods sold decreased by $22,364 for the three months ended June 30, 2016 when compared to the same period in 2015 due primarily to a decrease of approximately $29,000 in professional fee costs. This decrease was largely driven by the hiring of additional salaried employees leading to a lesser need for contracted resources.

Cost of goods sold decreased by $103,133 during the six months ended June 30, 2016 when compared to the same period in 2015 primarily as a result of a decrease of approximately $84,000 in professional fee costs. A decrease of $37,000 in reimbursable expenses such as lodging, meals and entertainment and transportation in the same period also contributed to the decrease in cost of goods sold.

					Change from		Percent Change
Salaries and Wages	2016		2015		Prior Year		from Prior Year
Three Months Ended June 30,	$	248,398	$	209,220	$	39,178		18.73	%
Six Months Ended June 30,	$	491,900	$	462,426	$	29,474		6.37	%

Salaries and wages increased by $39,178 for the three months ended June 30, 2016 when compared to the three months ended June 30, 2015 driven largely by an increase in staff salaries of $53,000 combined with an increased stock based compensation expense of $29,000, being partially offset by a reduction in officer salaries and related benefits of approximately $43,000 mainly due to the capitalization of officer salaries for software development efforts during the second quarter of 2016. We hired additional staff in 2016 to assist with the delivery of our professional services and other tasks, which primarily contributed to the increased staff salaries and stock compensation expenses in the second quarter of 2016.

For the six months ended June 30, 2016, salaries increased when compared to the six months ended June 30, 2015, primarily as a result of the hiring of new employees and increased stock based compensation expense of $39,000 mostly due to the issuance of option grants to these employees. This increase was partially offset by a decrease in commissions.

					Change from			Percent Change
Contract Services	2016		2015		Prior Year			from Prior Year
Three Months Ended June 30,	$	23,395	$	83,311	$	(59,916	)		(71.92	%)
Six Months Ended June 30,	$	68,800	$	128,947	$	(60,147	)		(46.64	%)

Contract services expenses decreased by $60,147 for the three and six months ended June 30, 2016 primarily due to decreases in corporate and investor relations, business development and sales, accounting, marketing, and product development expenses, being partially offset by an increase in acquisition assistance of $9,000 for the six months ended June 30, 2016. There was no change in acquisition assistance for the three months ended June 30, 2015.

					Change from		Percent Change
Other General and Administrative	2016		2015		Prior Year		from Prior Year
Three Months Ended June 30,	$	294,794	$	179,849	$	114,945		63.91	%
Six Months Ended June 30,	$	626,883	$	271,164	$	355,719		131.18	%

Other general and administrative costs increased for the three months ended June 30, 2016 as compared to the three months ended June 30, 2015 primarily due to an increase in professional fees of $53,000 mainly as a result of increased legal costs. Other increases include $38,000 in sales, marketing, and promotion, $20,000 in travel, meals, and entertainment and $13,000 across all of the following categories: computers and software, dues and subscriptions, insurance, rent, and repairs and maintenance. These increases were partially offset by a decrease in administration costs of $9,000.

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Other general and administrative costs increased for the six months ended June 30, 2016 as compared to the six months ended June 30, 2015 primarily due to an increase of $187,000 in professional fees associated with our listing on the TSX-V exchange, the closing of our private placement in February 2016, and the engagement of a new audit firm. Other increases include $90,000 in sales, marketing, and promotion, $29,000 in administration costs, $24,000 in travel, meals, and entertainment and $25,000 across all of the following categories: computers and software, dues and subscriptions, insurance, rent, and repairs and maintenance.

							Change from			Percent Change
Other Income/Expense	2016			2015			Prior Year			from Prior Year
Three Months Ended June 30,	$	(1,597	)	$	(850	)	$	(747	)		87.88	%
Six Months Ended June 30,	$	(8,447	)	$	5,231		$	(13,678	)		(261.48	%)

Other expenses increased for the three and six months ended June 30, 2016 when compared to the same periods in 2015 primarily due to unrealized losses associated with the revaluation of a promissory note from Canadian dollars to United States dollars in 2016.

Liquidity and Capital Resources

We measure our liquidity in a variety of ways, including the following:

	June 30,		December 31,
	2016		2015
Cash and cash equivalents	$	2,538,902	$	492,733
Working capital	$	2,292,814	$	349,740

As at June 30, 2016, our cash and cash equivalents and working capital had increased to $2,538,902 and $2,292,814, respectively, from $492,733 and $349,740 as at December 31, 2015. The closing of a private placement of our common stock in February 2016 for proceeds of $2,745,000 was the primary driver behind the increase in cash and working capital.

For the six months ended June 30, 2016 and the year ended December 31, 2015, we were able to finance our operations, including capital expenditures for infrastructure, product development and marketing activities with cash generated through operating activities, cash on hand, and the proceeds received from our private placement of common stock in February 2016.  The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. As reflected in the financial statements included in this report, for the six months ended June 30, 2016 we had a net loss of $687,838 and a net loss of $994,351 for the year ended December 31, 2015.

We have had material operating losses and have not yet created positive cash flows. These factors raise substantial doubt as to our ability to continue as a going concern. Although we believe that sufficient funding will be available from operations, private placements of equity securities or additional borrowings to meet our liquidity needs over the next 12 months, our ability to continue as a going concern is entirely dependent upon our ability to achieve a level of profitability, and/or to raise additional capital through debt financing and/or through sales of common stock. We cannot provide any assurance that profits from operations, if any, will generate sufficient cash flow to meet our working capital needs and service our existing debt, nor that sufficient capital can be raised through debt or equity financing. The financial statements do not include adjustments related to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should we be unable to continue as a going concern.

Anticipated Uses of Cash

In 2015 and the first half of 2016, our primary areas of investment were professional staff to support our services business, as well as staff to support SaaS product delivery and client relationship management. We also invested in product development and sales and marketing activities, including sales staff, marketing and sales automation software and other related services.

For the remainder of 2016, we currently anticipate increased uses of cash in connection with sales and marketing activities, including on- and offline marketing, marketing and sales automation software, and other related services. We also anticipate investments in product development, professional sales and development staff, staff to support SaaS product delivery and client relationship management, and staff to support our services business.

We intend to fund these planned expenditures with cash on-hand, cash flows generated from ongoing operations during this period and/or additional capital raised through debt financing or through sales of common stock or both. We do not intend to pay dividends in the foreseeable future.

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Cash Flow – Six Months Ended June 30, 2016 and 2015

Operating Activities. Net cash used in operating activities increased to $491,526 for the six months ended June 30, 2016 compared to $303,754 for the six months ended June 30, 2015. This increase in cash used by operating activities was attributable primarily to a $272,833 increase in net losses, partially offset by increases in cash flow due to the change in net working capital, primarily due to increases in account payable and deferred revenue balances in 2016.

Days Sales Outstanding (“DSO”), which the Company defines as the average number of days it takes to collect revenue once a sale has been made, increased in the first half of 2016 compared to the same period in the prior year.  During the six months ended June 30, 2016, DSO was approximately 63 days, up from approximately 49 days during the six months ended June 30, 2015. This increase mainly resulted from a high accounts receivable balance at the end of the second quarter of 2016 driven primarily by up-front billings in the current quarter related to deferred revenue on services not yet performed.

Investing Activities. Net cash used in investing activities for the six months ended June 30, 2016 increased to $207,305 compared to $41,685 in net cash used in investing activities for the same period in 2015. Net cash used in investing activities in the first half of 2016 primarily consisted of capitalized software development costs of $168,499 as well as payments for acquisition of intangible assets of $30,000 and equipment for $8,856.

Financing Activities. Net cash provided by financing activities for the six months ended June 30, 2016 and 2015 amounted to $2,745,000 and $513,750, respectively. Cash provided in both years was the result of separate private placement of our common stock in each period.

Off Balance Sheet Arrangements

We did not have any off balance sheet arrangements as of June 30, 2016.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and as such, are not required to provide the associated information under this item.

ITEM 4. CONTROLS AND PROCEDURES.

Disclosure Controls and Procedure

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of such date, our disclosure controls and procedures were not effective.

We are in the process of developing and implementing remediation plans to address our material weaknesses as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2015.

Changes in Internal Controls

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

We are not involved in any legal actions or claims and to our knowledge no such actions or claims are pending.

ITEM 1A. RISK FACTORS.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and as such, are not required to provide the associated information under this item.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

Recent Sales of Unregistered Securities

There were no unregistered sales of our equity securities during the three month period ended on June 30, 2016.

Purchases of Equity Securities

During the three months ended June 30, 2016, there were no purchases of our common stock made by, or on behalf of, the Company or any "affiliated purchaser," as defined by Rule 10b-18 of the Exchange Act.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION.

(a) Not applicable.

(b) There have been no material changes to the procedures by which shareholders may nominate directors to our board of directors.

ITEM 6. EXHIBITS.

See exhibits listed under the Exhibit Index below.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report has been signed on its behalf by the undersigned, thereunto duly authorized on this 12^th day of August, 2016.

MCORPCX, INC.
BY:	/s/ MICHAEL HINSHAW
	Michael Hinshaw
	Chief Executive Officer, Principal Accounting Officer, and Treasurer
BY:	/s/ BARRY MACNEIL
	Barry MacNeil
	Chief Financial Officer

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EXHBIIT INDEX

3.1	Articles of Incorporation (Incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on April 25, 2012).
3.2	Amended Articles of Incorporation (Incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on April 25, 2012).
3.3	Amended Articles of Incorporation (Incorporated by reference to Exhibit 3.3 to the Company’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on April 25, 2012).
3.4	Amended Articles of Incorporation (Incorporated by reference to the Company’s Form 8-K filed with the Securities and Exchange Commission on July 13, 2015).
3.5	Amended and Restated Bylaws (Incorporated by reference to Exhibit 3. 2.1 to the Company’s Form 8-K filed with the Securities and Exchange Commission on November 24, 2015).
31.1	Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a).
31.2	Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a).
32.1*	Certification of Chief Executive Officer and Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension - Schema
101.CAL	XBRL Taxonomy Extension - Calculations
101.DEF	XBRL Taxonomy Extension - Definitions
101.LAB	XBRL Taxonomy Extension - Labels
101.PRE	XBRL Taxonomy Extension - Presentation

*Furnished, not filed

Notes to Exhibits List:

Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Balance Sheet, (ii) Statements of Operations, (iii) Statements of Cash Flows, and (iv)Notes to the Financial Statements. In accordance with Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be part of any registration statement or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

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EX-31.1

Exhibit 31.1

SARBANES-OXLEY SECTION 302(a) CERTIFICATION

I, Michael Hinshaw, certify that:

1.	I have reviewed this Form 10-Q for the period ended June 30, 2016 of MCorpCX, Inc.;
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 the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer 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 the registrant, 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 the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’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 the registrant’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.

Date:	August 12, 2016	/s/ MICHAEL HINSHAW
		Michael Hinshaw
		Principal Executive Officer

EX-31.2

Exhibit 31.2

SARBANES-OXLEY SECTION 302(a) CERTIFICATION

I, Barry MacNeil, certify that:

1.	I have reviewed this Form 10-Q for the period ended June 30, 2016 of McorpCX, Inc.;
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 the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer 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 the registrant, 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 the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’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 the registrant’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.

Date:	August 12, 2016	/s/ BARRY MACNEIL
		Barry MacNeil
		Principal Financial Officer

EX-32.1

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 McorpCX, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “report”), I, Michael Hinshaw, Chief Executive Officer of the Company and Barry MacNeil, Chief Financial Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated this 12^th day of August, 2016.

/s/ MICHAEL HINSHAW

Michael Hinshaw

Chief Executive Officer

/s/ BARRY MACNEIL

Barry MacNeil

Chief Financial Officer

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 12, 2016
Document Information [Line Items]
Entity Registrant Name	McorpCX, Inc.
Entity Central Index Key	0001535079
Trading Symbol	mccx
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		20,426,158
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Condensed Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 2,538,902	$ 492,733
Accounts receivable	113,404	114,805
Total current assets	2,652,306	607,538
Property and equipment, net	96,532	89,725
Capitalized software development costs, net	191,626	61,224
Intangible assets, net	95,279	83,072
Other assets	64,065	23,541
Total assets	3,099,808	865,100
Liabilities:
Accounts payable	249,734	133,046
Deferred revenue	104,653	118,034
Other current liabilities	5,105	6,718
Total current liabilities	359,492	257,798
Notes payable, net of current portion	50,000	50,000
Related party notes, net of current portion	77,150	70,829
Total liabilities	486,642	378,627
Shareholders' equity:
Common stock, $0 par value, 30,000,000 shares authorized, 20,426,158 and 16,766,158 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively
Additional paid-in capital	6,154,034	3,339,503
Accumulated deficit	(3,540,868)	(2,853,030)
Total shareholders' equity	2,613,166	486,473
Total liabilities and shareholders' equity	$ 3,099,808	$ 865,100

XML

Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Common stock, authorized (in shares)	30,000,000	30,000,000
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares issued (in shares)	20,426,158	16,766,158
Common stock, shares outstanding (in shares)	20,426,158	16,766,158

XML

Condensed Statement of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue
Consulting services	$ 450,208	$ 275,069	$ 636,742	$ 640,238
Products & other	40,743	57,551	90,162	123,253
Total revenue	490,951	332,620	726,904	763,491
Cost of goods sold
Labor	49,905	93,242	81,423	181,506
Products and other	67,812	46,840	129,439	132,489
Total cost of goods sold	117,717	140,082	210,862	313,995
Gross profit	373,234	192,538	516,042	449,496
Expenses
Salaries and wages	248,398	209,220	491,900	462,426
Contract services	23,395	83,311	68,800	128,947
Other general and administrative	294,794	179,849	626,883	271,164
Total expenses	566,587	472,380	1,187,583	862,537
Net operating loss	(193,353)	(279,842)	(671,541)	(413,041)
Interest expense	(4,131)	(4,746)	(7,850)	(7,195)
Other income (expense)	(1,597)	(850)	(8,447)	5,231
Loss before income taxes	(199,081)	(285,438)	(687,838)	(415,005)
Income tax provision
Net loss	$ (199,081)	$ (285,438)	$ (687,838)	$ (415,005)
Net loss per share-basic and diluted (in dollars per share)	$ (0.01)	$ (0.02)	$ (0.03)	$ (0.03)
Weighted average common shares outstanding-basic and diluted (in shares)	20,426,158	16,626,667	19,782,642	16,492,158

XML

Condensed Statement of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (687,838)	$ (415,005)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization	57,889	47,754
Stock compensation expense	69,531	30,557
Loss on disposal of assets		1,484
Unrealized (gain) loss on foreign currency translation	6,321	(6,142)
Realized gain on foreign currency translation		911
Changes in operating assets and liabilities:
Accounts receivable	1,401	(40,595)
Other assets	(40,524)	14,849
Accounts payable	116,688	83,687
Other current liabilities	(19,133)	(273)
Deferred revenue	(13,381)	(23,591)
Accrued interest	17,520	2,610
Net cash used in operating activities	(491,526)	(303,754)
INVESTING ACTIVITIES
Equipment purchases	(8,856)	(2,597)
Payments for acquisition of intangible assets	(30,000)
Capitalized web development costs		(39,088)
Capitalized software development costs	(168,449)
Net cash used in investing activities	(207,305)	(41,685)
FINANCING ACTIVITIES
Proceeds from private placement of common stock	2,745,000	513,750
Net cash provided by financing activities	2,745,000	513,750
Increase in cash and cash equivalents	2,046,169	168,311
Cash and cash equivalents, beginning of period	492,733	649,063
Cash and cash equivalents, end of period	2,538,902	817,374
Supplemental disclosure of cash flow information:
Interest paid	$ 5,330	$ 4,585

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Note 1 - Organization and Basis of Presentation

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1: Organization and Basis of Presentation

McorpCX, Inc. (the "Company", “we”, “us”) is a for profit corporation established under the corporation laws in the State of California, United States of America on December 14, 2001. We operated as The Innes Group, Inc., dba MCorp Consulting until filing a Certificate of Amendment to the Articles of Incorporation renaming the Company Touchpoint Metrics, Inc., effective October 18, 2011. During Q1 2015, the we filed a d/b/a (doing business as) with the State of California Secretary of State to begin doing business as McorpCX. On June 11, 2015, at our Annual General Meeting, shareholders passed a resolution to change the name of the Company to McorpCX, Inc.

We develop and delivers technology-enabled products and services that improve customer experience management capabilities for corporations. Our products assist companies with improving business performance by measuring and transforming the ways they interact with customers. We serve a wide variety of industries and customer sizes.

The condensed financial statements and related disclosures as of June 30, 2016 and for the three and six months ended June 30, 2016, are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC"). The condensed balance sheet as of December 31, 2015 was derived from the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. In our opinion, these condensed financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These condensed financial statements should be read in conjunction with the financial statements included in our Annual Report for the year ended December 31, 2015, filed on Form 10-K with the SEC on March 30, 2016.  The results of operations for the three and six months ended June 30, 2016, are not necessarily indicative of the results to be expected for the full year. Unless the context otherwise requires, all references to "McorpCX," "we," "us," "our" or the "Company" are to McorpCX, Inc. and our subsidiaries.

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Note 2 - Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

Note 2: Recent Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases: (Topic 842), to provide guidance on recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements, specifically differentiating between different types of leases. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from all leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous GAAP. There continues to be a differentiation between finance leases and operating leases. However, the principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases should be recognized in the statement of financial position. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. We are currently evaluating the impact of these amendments on its financial statements.

In March 2016, the FASB issued ASU No. 2016-9, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to reduce complexity in accounting standards involving several aspects of the accounting for employee share-based payment transactions, including (1) the income tax consequences, (2) classification of awards as either equity or liabilities, and (3) classification on the statement of cash flows. The amendments will be effective for financial statements issued for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and early adoption is permitted. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition, amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively, amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively, and amendments related to the presentation of excess tax benefits on the statement of cash flows can be applied using either a prospective transition method or a retrospective transition method. An entity that elects early adoption must adopt all of the amendments in the same period. We are currently evaluating the impact of these amendments on our financial statements.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. The effective date and transition requirements for these amendments are the same as the effective date and transition requirements of ASU 2014-09. We are currently evaluating the impact of these amendments on our financial statements.

In April 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, to clarify the following two aspects of Topic 606: 1) identifying performance obligations, and 2) the licensing implementation guidance. The effective date and transition requirements for these amendments are the same as the effective date and transition requirements of ASU 2014-09. We are currently evaluating the impact of these amendments on our financial statements.

In May 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, to clarify certain core recognition principles including collectability, sales tax presentation, noncash consideration, contract modifications and completed contracts at transition and disclosures no longer required if the full retrospective transition method is adopted. The effective date and transition requirements for these amendments are the same as the effective date and transition requirements of ASU 2014-09. We are currently evaluating the impact of these amendments on our financial statements.

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Note 3 - Capitalized Software Development Costs

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Research, Development, and Computer Software Disclosure [Text Block]

Note

3

: Capitalized Software Development Costs

Costs incurred to develop Software as a Service (SaaS) technology consist of external direct costs of materials and services and payroll and payroll-related costs for employees who directly devote time to the project. Research and development costs incurred during the preliminary project stage are expensed as incurred. Capitalization begins when technological feasibility is established. Costs incurred during the operating stage of the software application relating to upgrades and enhancements are capitalized to the extent that they result in the extended life of the product. All other costs are expensed as incurred. During the six months ended June 30, 2016 expenses relating to upgrades and enhancements of $168,449 were capitalized.

Amortization of software development costs commenced when the product was available for general release to customers. The capitalized costs are amortized on a straight line basis over the three year expected useful life of the software. Capitalized software development costs, net of amortization, were $191,626 and $61,224 as of June 30, 2016 and December 31, 2015, respectively. Amortization expense incurred during the six months ended June 30, 2016 and 2015 was $38,047 and $36,551, respectively and is included in cost of goods sold.

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Note 4 - Intangible Assets

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

Note

4

: Intangible Assets

Intangibles as of June 30, 2016 consisted of the following:

	June 30, 2016
			Accumulated
	Gross		Amortization			Net Book Value
PetroPortfolio	$	131,151	$	(89,538	)	$	41,613
Website development costs		67,113		(42,197	)	$	24,916
Media distribution rights		25,000		(1,042	)	$	23,958
Intellectual property		5,000		(208	)	$	4,792
LinkedIn Group		2,500		(2,500	)	$	-
Organization costs		1,377		(1,377	)	$	-
Total intangibles	$	232,141	$	(136,862	)	$	95,279

We began development of a new Company website in September 2014; related costs incurred during the design and production stages of website development were capitalized prior to its go-live date, which occurred in March 2015.  Now that the website is live, all capitalized costs are amortized using straight-line basis over two years, the estimated economic life of the completed website.

Acquisition of media distribution rights occurred in May 2016 and all capitalized costs are amortized using straight-line basis over two years, the estimated economic life of this asset.

Acquisition of intellectual property occurred in June 2016 and capitalized costs are amortized using straight-line basis over two years, the estimated economic life of this asset.

Our intangible assets are reviewed for impairment when facts or circumstances suggest that the carrying value of the asset may not be recoverable.  There were no impairment charges during the six months ending June 30, 2016 and 2015.

Total amortization of intangible assets was $17,793 and $9,945 for the six months ended June 30, 2016 and 2015, respectively.

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Note 5 - Stock-based Compensation

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note

5

: Stock-Based Compensation

Our stock-based compensation plan was originally established in 2008. The shares of our common stock issuable pursuant to the terms of such plan (the “Plan Shares”) could not exceed 30% of any outstanding issue or 2,500,000 shares, whichever was the lower amount.

In December 2015, we adopted a revised share option plan in which Plan Shares cannot exceed 10% of the total issued and outstanding shares at any given time. All stock option grants have an exercise price equal to the fair market value of our common stock on the date of the grant and all option grants have a 10-year term.

In order to calculate the fair value of stock options at the date of grant, we use the Black-Scholes option pricing model. The volatility used is based on a blended historical volatility of our own stock and similar sized companies due to the limited historical data available for our own stock price.  The expected term was determined based on the simplified method outlined in Staff Accounting Bulletin No. 110.  The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

At June 30, 2016, 906,000 stock options were exercisable and $69,531 of total compensation cost related to vested share-based compensation grants had been recognized for six months ended June 30, 2016. Unrecognized compensation expense from stock options was $260,660 at June 30, 2016, which is expected to be recognized over a weighted-average vesting period of 1.80 years beginning July 1, 2016.

The following table summarizes our stock option activity for the six months ended June 30, 2016:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
	Number of			Exercise		Contractual		Intrinsic
	Shares			Price		Term (in years)		Value
Outstanding at December 31, 2015		1,730,000		$	0.70		8.37		1,810,200
Granted		70,000		$	1.95		-		-
Exercised		-		$	-		-		-
Forfeited or expired		(20,000	)	$	2.20		-		-
Outstanding at June 30, 2016		1,780,000		$	0.74		8.02		592,800
Exercisable at June 30, 2016		906,000		$	0.56		7.07	$	592,800
Vested or expected to vest		1,644,540		$	0.73

The following assumptions were used to calculate weighted average fair values of the options granted in the six months ended June 30, 2016 and 2015:

	Six Months Ended			Six Months Ended
	June 30,			June 30,
	2016			2015
Expected life (in years)		5.84			5.75
Risk-free interest rate		1.45	%		1.67	%
Volatility		111.43	%		51.94	%
Dividend yield		-			-
Weighted average grant date fair value per option granted	$	1.81		$	0.21

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Note 6 - Concentrations

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note

6

: Concentrations

We sell products and services under various terms to a broad range of companies across multiple industries ranging from start-ups to Fortune 500 companies, with sales historically concentrated among a few large clients. In 2016 we have made efforts to mitigate risk from loss of a single client and have shifted sales concentration to a more even distribution among our clients. For the six months ended June 30, 2016 and 2015, the percentage of sales and the concentrations are:

	Six Months Ended
	June 30,
	2016			2015
Largest client		21.56	%		48.03	%
Second largest client		21.55	%		14.34	%
Third largest client		17.27	%		14.26	%
Next three largest clients		21.76	%		20.04	%
All other clients		17.86	%		3.33	%
		100.00	%		100.00	%

Sales are made without collateral and the credit-related losses have been insignificant or non-existent. Accordingly, there is no provision made to include an allowance for doubtful accounts.

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Note 7 - Debt

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Debt Disclosure [Text Block]

Note

7

: Debt

On September 16, 2011, a $100,000 CAD note was executed with an individual, a 1.64% shareholder. The note is structured to incur a balloon payment of the principal and 4% APR non-compounding accrued interest on its amended maturity date of September 16, 2016.  All accrued interest to date was paid in September 2014. We have recorded

unrealized loss of $6,321 and a gain of $6,142 during the six months ended June 30, 2016 and 2015, respectively, related to the revaluation of this note's principal from CAD to USD.  As of June 30, 2016, principal and accrued interest was $77,150 and $5,654, respectively.

On September 7, 2011, a $50,000 USD note was executed with McLellan Investment Corporation, a related party. The note is structured to incur a balloon payment of the principal and 4% APR non-compounding accrued interest on its amended maturity date of September 7, 2016. All accrued interest to date was paid in September 2014

. As of June 30, 2016, principal and accrued interest was $50,000 and $3,583, respectively.

Interest expense was $7,850 and $7,195 for the six months ended June 30, 2016 and 2015, respectively and consists of interest on our short-term promissory notes, and credit card balances.

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Note 8 - Shareholders Equity

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note

8

: Shareholders Equity

On February 2, 2016 we completed a private placement of 3,660,000 restricted shares of common stock in consideration for $2,745,000 or at a rate of $0.75 per share. The private placement was completed in connection with and as a condition of our listing on the TSX Venture Exchange. The proceeds will be used for sales and marketing, product development and for general working capital purposes.

The Company is authorized to issue 30,000,000 shares of common stock, no par value per share.

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Note 9 - Going Concern

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Substantial Doubt about Going Concern [Text Block]

Note

9

: Going Concern

The accompanying financial statements and notes have been prepared assuming that the Company will continue as a going concern.

For the six months ended June 30, 2016 we had a net loss of $687,838.  We also had a net loss of $415,005 for the six months ended June 30, 2015. These circumstances result in substantial doubt as to our ability to continue as a going concern which is dependent upon our ability to continue to generate sufficient revenues to operate profitably, or raise additional capital through debt financing and/or through sales of common stock.

The failure to achieve the necessary levels of profitability or obtain the additional funding would be detrimental.  The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

In February 2016, the FASB issued ASU No. 2016-02, Leases: (Topic 842), to provide guidance on recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements, specifically differentiating between different types of leases. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from all leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous GAAP. There continues to be a differentiation between finance leases and operating leases. However, the principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases should be recognized in the statement of financial position. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. We are currently evaluating the impact of these amendments on its financial statements.

In March 2016, the FASB issued ASU No. 2016-9, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to reduce complexity in accounting standards involving several aspects of the accounting for employee share-based payment transactions, including (1) the income tax consequences, (2) classification of awards as either equity or liabilities, and (3) classification on the statement of cash flows. The amendments will be effective for financial statements issued for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and early adoption is permitted. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition, amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively, amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively, and amendments related to the presentation of excess tax benefits on the statement of cash flows can be applied using either a prospective transition method or a retrospective transition method. An entity that elects early adoption must adopt all of the amendments in the same period. We are currently evaluating the impact of these amendments on our financial statements.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. The effective date and transition requirements for these amendments are the same as the effective date and transition requirements of ASU 2014-09. We are currently evaluating the impact of these amendments on our financial statements.

In April 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, to clarify the following two aspects of Topic 606: 1) identifying performance obligations, and 2) the licensing implementation guidance. The effective date and transition requirements for these amendments are the same as the effective date and transition requirements of ASU 2014-09. We are currently evaluating the impact of these amendments on our financial statements.

In May 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, to clarify certain core recognition principles including collectability, sales tax presentation, noncash consideration, contract modifications and completed contracts at transition and disclosures no longer required if the full retrospective transition method is adopted. The effective date and transition requirements for these amendments are the same as the effective date and transition requirements of ASU 2014-09. We are currently evaluating the impact of these amendments on our financial statements.

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Note 4 - Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2016

Notes Tables

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	June 30, 2016
			Accumulated
	Gross		Amortization			Net Book Value
PetroPortfolio	$	131,151	$	(89,538	)	$	41,613
Website development costs		67,113		(42,197	)	$	24,916
Media distribution rights		25,000		(1,042	)	$	23,958
Intellectual property		5,000		(208	)	$	4,792
LinkedIn Group		2,500		(2,500	)	$	-
Organization costs		1,377		(1,377	)	$	-
Total intangibles	$	232,141	$	(136,862	)	$	95,279

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Note 5 - Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2016

Notes Tables

Schedule of Share-based Compensation, Activity [Table Text Block]

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
	Number of			Exercise		Contractual		Intrinsic
	Shares			Price		Term (in years)		Value
Outstanding at December 31, 2015		1,730,000		$	0.70		8.37		1,810,200
Granted		70,000		$	1.95		-		-
Exercised		-		$	-		-		-
Forfeited or expired		(20,000	)	$	2.20		-		-
Outstanding at June 30, 2016		1,780,000		$	0.74		8.02		592,800
Exercisable at June 30, 2016		906,000		$	0.56		7.07	$	592,800
Vested or expected to vest		1,644,540		$	0.73

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Six Months Ended			Six Months Ended
	June 30,			June 30,
	2016			2015
Expected life (in years)		5.84			5.75
Risk-free interest rate		1.45	%		1.67	%
Volatility		111.43	%		51.94	%
Dividend yield		-			-
Weighted average grant date fair value per option granted	$	1.81		$	0.21

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Note 6 - Concentrations (Tables)

6 Months Ended

Jun. 30, 2016

Notes Tables

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

	Six Months Ended
	June 30,
	2016			2015
Largest client		21.56	%		48.03	%
Second largest client		21.55	%		14.34	%
Third largest client		17.27	%		14.26	%
Next three largest clients		21.76	%		20.04	%
All other clients		17.86	%		3.33	%
		100.00	%		100.00	%

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Note 3 - Capitalized Software Development Costs (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Cost of Goods Sold [Member]
Capitalized Computer Software, Amortization	$ 38,047	$ 36,551
Capitalized Computer Software, Period Increase (Decrease)	168,449
Capitalized Computer Software, Net	$ 191,626		$ 61,224

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Note 4 - Intangible Assets (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Developed Technology Rights [Member]
Finite-Lived Intangible Asset, Useful Life	2 years
Impairment of Intangible Assets, Finite-lived	$ 0	$ 0
Amortization of Intangible Assets	$ 17,793	$ 9,945

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Note 4 - Intangibles (Details)	Jun. 30, 2016 USD ($)
Petro Portfolio [Member]
Gross	$ 131,151
Accumulated Amortization	(89,538)
Net Book Value	41,613
Developed Technology Rights [Member]
Gross	67,113
Accumulated Amortization	(42,197)
Net Book Value	24,916
Distribution Rights [Member]
Gross	25,000
Accumulated Amortization	(1,042)
Net Book Value	23,958
Intellectual Property [Member]
Gross	5,000
Accumulated Amortization	(208)
Net Book Value	4,792
LinkedIn Group [Member]
Gross	2,500
Accumulated Amortization	(2,500)
Organization Costs [Member]
Gross	1,377
Accumulated Amortization	(1,377)
Gross	232,141
Accumulated Amortization	(136,862)
Net Book Value	$ 95,279

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Note 5 - Stock-based Compensation (Details Textual) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2008
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount	$ 69,531
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 260,660
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 292 days
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum	10.00%	30.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	2,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number	906,000

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Note 5 - Stock Option Activity (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Outstanding (in shares)	1,730,000
Outstanding (in dollars per share)	$ 0.70
Outstanding	8 years 7 days	8 years 135 days
Outstanding	$ 592,800	$ 1,810,200
Granted (in shares)	70,000
Granted (in dollars per share)	$ 1.95
Forfeited or expired (in shares)	(20,000)
Forfeited or expired (in dollars per share)	$ 2.20
Outstanding (in shares)	1,780,000	1,730,000
Outstanding (in dollars per share)	$ 0.74	$ 0.70
Exercisable at June 30, 2016 (in shares)	906,000
Exercisable at June 30, 2016 (in dollars per share)	$ 0.56
Exercisable at June 30, 2016	7 years 25 days
Exercisable at June 30, 2016	$ 592,800
Vested or expected to vest (in shares)	1,644,540
Vested or expected to vest (in dollars per share)	$ 0.73

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Note 5 - Fair Value Assumptions (Details) - $ / shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Expected life (in years)	5 years 306 days	5 years 273 days
Risk-free interest rate	1.45%	1.67%
Volatility	111.43%	51.94%
Dividend yield
Weighted average grant date fair value per option granted (in dollars per share)	$ 1.81	$ 0.21

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Note 6 - Percentage of Sales and the Concentrations (Details) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member]	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Largest Client [Member]
Concentrations	21.56%	48.03%
Second Largest Client [Member]
Concentrations	21.55%	14.34%
Third Largest Client [member]
Concentrations	17.27%	14.26%
Next Three Largest Clients [Member]
Concentrations	21.76%	20.04%
All Other Clients [Member]
Concentrations	17.86%	3.33%
Concentrations	100.00%	100.00%

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Note 7 - Debt (Details Textual)	3 Months Ended		6 Months Ended
	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Sep. 16, 2011 CAD	Sep. 07, 2011 USD ($)
Investor [Member]
Debt Instrument, Face Amount | CAD					CAD 100,000
Percentage of Ownership					1.64%
Debt Instrument, Interest Rate, Effective Percentage					4.00%
Loans Payable	$ 77,150		$ 77,150
Accrued Liabilities	5,654		5,654
McLellan Investment Corporation [Member]
Debt Instrument, Interest Rate, Effective Percentage						4.00%
Accrued Liabilities	3,583		3,583
Notes Payable	50,000		50,000			$ 50,000
Foreign Currency Transaction Loss, before Tax			6,321
Foreign Currency Transaction Gain, before Tax				$ 6,142
Interest Income (Expense), Net	$ (4,131)	$ (4,746)	$ (7,850)	$ (7,195)

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Note 8 - Shareholders Equity (Details Textual) - USD ($)	Feb. 02, 2016	Jun. 30, 2016	Dec. 31, 2015
Private Placement [Member]
Stock Issued During Period, Shares, New Issues	3,660,000
Stock Issued During Period, Value, New Issues	$ 2,745,000
Shares Issued, Price Per Share	$ 0.75
Common Stock, Par or Stated Value Per Share		$ 0	$ 0
Common Stock, Shares Authorized		30,000,000	30,000,000

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Note 9 - Going Concern (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net Income (Loss) Attributable to Parent	$ (199,081)	$ (285,438)	$ (687,838)	$ (415,005)