Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Statement of Cash Flows [Abstract]    
Net income (loss) $ (13,034,736) $ 2,923,742
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation 5,668 4,357
Amortization of intangible assets 8,511,730 2,872,638
Amortization of expenses connected to equity to be issued for services   355,711
Net reversal of expense related to forfeiture of unvested stock   (179,708)
Impairment of goodwill   2,144,488
Deferred tax assets (5,579,418) (1,949,401)
Income tax payable   467,997
Deferred tax liability (709,280)  
Impairment of patent 766,498  
Loss on debt extinguishment 654,000  
Stockbased compensation 1,961,505 2,101,995
Stock issued for services 1,084,834  
Non-cash interest, discounts and financing costs 1,926,865  
Change in fair value of Clouding earn-out (2,901,348)  
Non-cash other income   (3,930)
Other non-cash adjustments (13,244) 24,994
Changes in operating assets and liabilities    
Accounts receivable (2,109,984) (10,182,950)
Prepaid expenses and other current assets 60,938 (207,182)
Accounts payable and accrued expenses 6,454,467 4,860,286
Net cash provided by (used in) operating activities (2,921,505) 3,233,037
Cash flows from investing activities:    
Acquisition of patents   (6,850,800)
Purchase of property, equipment and other intangible assets (22,520) (24,903)
Net cash provided by (used in) investing activities (22,520) (6,875,703)
Cash flows from financing activities:    
Payment on note payable in connection with the acquisition of IP Liquidity (1,109,375) (937,500)
Payment on note payable in connection with the acquisition of Dynamic Advances (2,624,375)  
Payment on assumed note payable in connection with the acquisition of Orthophoenix (5,000,000)  
Payment on note payable in connection with the acquisition of Medtech and Orthophoenix (4,200,000)  
Payment on Due to MdR Escrow (TLI) (50,000)  
Payment on note payable in connection with the acquisition of Sarif (276,250)  
Repayment on convertible notes (5,050,000)  
Repayment of notes payable to vendors (42,500)  
Cash received upon issuance of notes payable (net of issuance costs) 19,600,000  
Proceeds received from sale of Preferred Stock / common stock, net of issuance costs   6,388,266
Cash received upon exercise of warrant 18,751 138,222
Net cash provided by financing activities 1,266,251 5,588,988
Effect of exchange rate changes on cash 4,044  
Net increase (decrease) in cash (1,673,730) 1,946,322
Cash at beginning of period 5,082,569 3,610,262
Cash at end of period 3,408,839 5,556,584
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid for: Interest expenses and loan fees 1,660,372 20
Cash paid for: Taxes paid 54,437  
Loan fees 400,000  
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES    
Common stock issued in connection with the acquisition of Clouding Corp.   281,000
Earn-out liabilities in connection with the acquisition of Clouding Corp.   13,119,000
Common stock granted in connection with the acquisition of TLI Communications, LLC   817,800
Series B Preferred Stock issued in connection with the acquisition of Dynamic Advances, LLC   1,403,690
Series B Preferred Stock issued in connection with the acquisition of IP Liquidity Ventures, LLC   1,403,690
Common stock issued in connection with the acquisition of Selene Communication Technologies, LLC   980,000
Value of warrants pertaining to equity issuance   11,595
Notes payable in connection with the acquisition of Dynamic Advances, LLC, IP Liquidity Ventures, LLC, and Selene Communication Technologies, LLC   7,000,000
Common stock issued for prepaid services   $ (298,301)
Common stock issued in conjunction with note payable 1,000,000  
Warrants issued in conjunction with note payable 318,769  
Revenue share liability incurred in conjunction with note payable 1,000,000  
Non-cash interest increase in debt assumed in the acquisition of Orthophoenix 750,000  
Notes payable issued in conjunction with acquisition of BATO patent 10,000,000  
Common stock issued in conjunction with debt extinguishment 654,000  
Conversion of accounts payable to note payable $ 705,093