Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME    
Revenues $ 2,059,676 $ 4,093,869
Expenses    
Cost of revenues 2,639,976 4,328,165
Amortization of patents and website 2,025,899 2,598,461
Compensation and related taxes 1,033,346 1,581,074
Consulting fees 280,776 896,543
Professional fees 405,493 769,615
General and administrative 217,010 219,481
Patent Impairment 373,195 0
Total operating expenses 6,975,695 10,393,339
Operating loss (4,916,019) (6,299,470)
Other income (expenses)    
Other income (expense) (2,159) (39,402)
Foreign exchange gain (loss) 6,978  
Change in fair value adjustment of Clouding IP earn out (1,342)  
Interest income 931 2
Interest expense (1,006,850) (931,541)
Total other income (expenses) (1,002,442) (970,941)
Loss before benefit for income taxes (5,918,461) (7,270,411)
Income tax benefit 2,025,048 2,488,840
Net loss $ (3,893,413) $ (4,781,571)
Loss per common share, basic and diluted:    
Loss per common share, basic and diluted: $ (0.26) $ (0.34)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - Basic and Diluted 14,967,141 13,868,811
Other comprehensive income (loss)    
Foreign currency translation adjustments $ 247,427 $ (950,239)