Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED BALANCE SHEETS

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CONSOLIDATED BALANCE SHEETS - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Current assets:    
Cash $ 1,487,242 $ 5,082,569
Accounts receivable - net of allowance for bad debt of $0 and $0 for June 30, 2015 and December 31, 2014 704,061 216,997
Bonds posted with courts 1,790,241 1,946,196
Prepaid expenses and other current assets 124,436 438,391
Total current assets 4,105,980 7,684,153
Other assets:    
Property and equipment, net of accumulated depreciation of $40,385 and $16,135 for June 30, 2015 and December 31, 2014 70,738 53,828
Intangible assets, net of accumulated amortization of $12,043,560 and $6,550,528 for June 30, 2015 and December 31, 2014 46,597,522 43,363,832
Deferred tax assets 10,257,415 4,789,293
Goodwill 4,556,291 4,894,208
Total other assets 61,481,966 53,101,161
Total Assets 65,587,946 60,785,314
Current liabilities:    
Accounts payable and accrued expenses 5,289,861 3,293,746
Clouding IP earn out - current portion 883,484 2,092,000
Notes payable, net of discounts and loan fees of $676,182 and $82,010 for 6/30/15 and 12/31/14 17,394,103 16,560,000
Total current liabilities 23,567,448 21,945,746
Long-term liabilities    
Notes payable, net of discount and loan fees of $1,804,517 and $64,925, for 6/30/15 and 12/31/14 15,608,198 $ 5,403,065
Other non current liability 52,101  
Deferred tax liability 1,256,480 $ 1,823,884
Revenue sharing liability 1,000,000  
Clouding IP earn out 6,264,215 $ 7,360,000
Total long-term liabilities 24,180,994 14,586,949
Total liabilities 47,748,442 36,532,695
Stockholders' equity:    
Preferred stock Series B, $.0001 par value, 50,000,000 shares authorized: 982,000 and 932,000 issued and outstanding at June 30, 2015 and December 31, 2014 98 93
Common stock, $.0001 par value, 200,000,000 shares authorized: 14,024,837 and 13,791,460 issued and outstanding at June 30, 2015 and December 31,2014 1,402 1,379
Additional paid-in capital 40,478,627 36,977,169
Accumulated other comprehensive loss (1,018,691) (388,357)
Accumulated deficit (21,621,932) (12,337,665)
Total stockholders' equity 17,839,504 24,252,619
Total liabilities and stockholders' equity $ 65,587,946 $ 60,785,314