Acquisition

12 Months Ended

Dec. 31, 2015

Acquisition [Abstract]

ACQUISITION

NOTE 12 – ACQUISITION

On September 3, 2015, the Company completed an Acquisition Agreement under which the Company acquired all of the equity interests of Stimulating Software, the acquisition of all the common stock of Inner Four, and all of the common and preferred stock of Play Celebrity.

The purchase price paid for the shares consisted of two components: shares of the Company’s common stock, and preferred shares:

25,417,405 restricted shares of Company common stock and 4,045 restricted shares of Company Series A preferred stock valued at $4,486,777. The value was based on the market price of the Company’s common stock on September 2, 2105.

A summary of the purchase price allocations is below:

	Stimulating			Inner			Play
	Software			Four			Celebrity		Total
Cash	$	11,671		$	10,566		$	111	$	22,348
Accounts receivable		6,134			-			—		6,134
Apps		927,500			927,500			—		1,855,000
Goodwill		—			—			2,623,142		2,623,142
Accounts payable		(9,335	)		(10,512	)		—		(19,847	)
Purchase price	$	935,970		$	927,554		$	2,623,253	$	4,486,777

With the acquisitions, the Company purchased 371 various apps with an estimated value of $5,000 per app, giving the Company an asset value of $1,855,000. The Company recorded $2,623,142 in goodwill. As of December 31, 2015, the Company determined that the apps and goodwill were impaired and took a charge to earnings of $4,478,142.

The unaudited pro forma information below present statement of operations data as if the above acquisitions took place on January 1, 2014.

	Years Ended December 31,
	2015			2014
	(unaudited)			(unaudited)
Net revenue	$	49,918		$	15,230
Operating income (loss)		(3,111,111	)		10,582
Net income (loss)	$	(3,108,741	)	$	3,110,880