Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

v3.2.0.727
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Income Statement [Abstract]        
Revenue $ 1,368,986 $ 3,824,500 $ 5,462,855 $ 6,604,500
Expenses        
Cost of revenues 3,860,210 1,753,833 8,188,375 2,864,412
Amortization of patents and website 3,029,000 938,679 5,627,461 1,392,326
Compensation and related taxes 1,087,058 712,131 2,668,132 1,442,118
Consulting fees 329,081 336,447 1,225,624 764,554
Professional fees 578,920 268,616 1,348,535 525,472
General and administrative 284,976 $ 130,521 504,457 $ 212,185
Patent impairment 766,498   766,498  
Total operating expenses 9,935,743 $ 4,140,227 20,329,082 $ 7,201,067
Operating loss from continuing operations (8,566,757) $ (315,727) (14,866,227) $ (596,567)
Other income (expenses)        
Foreign exchange gain/(loss) 1,899   (37,503)  
Change in fair value adjustment of Clouding IP earn out 2,304,301   2,304,301  
Other income $ 7,439 $ (2,770) 7,439 $ (2,770)
Interest income   266 2 494
Interest expense $ (1,577,083) (20) (2,508,623) (20)
Total other income 736,556 (2,524) (234,384) (2,296)
Loss before provision for income taxes (7,830,201) $ (318,251) (15,100,611) $ (598,863)
Income tax benefit 3,327,505   5,816,344  
Net loss $ (4,502,696) $ (318,251) $ (9,284,267) $ (598,863)
Deemed dividends to related beneficial conversion feature of Series A preferred stock   (1,271,492)   (1,271,492)
Net loss attributable to common shareholders $ (4,502,696) $ (1,589,743) $ (9,284,267) $ (1,870,355)
Loss per common share, basic and diluted: $ (0.32) $ (0.14) $ (0.67) $ (0.17)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - Basic and Diluted 13,998,563 11,016,646 13,937,872 10,980,290
Other comprehensive income, net of tax:        
Foreign currency translation adjustments $ 319,905   $ (630,334)