0001136261-16-000442.txt : 20160421 0001136261-16-000442.hdr.sgml : 20160421 20160420190356 ACCESSION NUMBER: 0001136261-16-000442 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 86 CONFORMED PERIOD OF REPORT: 20151231 FILED AS OF DATE: 20160421 DATE AS OF CHANGE: 20160420 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MMRGlobal, Inc. CENTRAL INDEX KEY: 0001285701 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 330892797 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-51134 FILM NUMBER: 161582281 BUSINESS ADDRESS: STREET 1: 4401 WILSHIRE BLVD. STREET 2: SUITE 200 CITY: LOS ANGELES STATE: CA ZIP: 90010 BUSINESS PHONE: 310 476 7002 MAIL ADDRESS: STREET 1: 4401 WILSHIRE BLVD. STREET 2: SUITE 200 CITY: LOS ANGELES STATE: CA ZIP: 90010 FORMER COMPANY: FORMER CONFORMED NAME: MMR Information Systems, Inc. DATE OF NAME CHANGE: 20090401 FORMER COMPANY: FORMER CONFORMED NAME: FAVRILLE INC DATE OF NAME CHANGE: 20040401 10-K/A 1 form10ka.htm 10-K/A Form 10-KA 2015 DOC


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

________________

FORM 10-K/A
Amendment No. 1

(Mark One)

x

 

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the fiscal year ended December 31, 2015

OR

o

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period __________ to ______________,

Commission File No. 000-51134

________________

MMRGLOBAL, INC.
(Exact Name of Registrant as Specified in Its Charter)

Delaware

 

33-0892797

(State or Other Jurisdiction of
Incorporation or Organization)

 

(I.R.S. Employer Identification No.)

4401 Wilshire Blvd., Suite 200,
LOS ANGELES, CALIFORNIA

 

90010

(Address of Principal Executive Offices)

 

(Zip Code)

(310) 476-7002
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $.001 par value

________________

      Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes    ¨        No    x

      Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes    ¨        No    x

      Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file reports), and (2) has been subject to such filing requirements for the past 90 days. Yes    x        No    ¨

      Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes   x     No   ¨

      Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.    ¨

      Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer    ¨

Accelerated filer    ¨

Non-accelerated filer    ¨
(Do not check if a smaller reporting company)

Smaller reporting company    x

      Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes    ¨        No    x

      As of June 30, 2015, the last business day of the registrant's most recently completed second fiscal quarter, the aggregate market value of the registrant's common stock was $5,899,029 based on 173,500,847 shares issued and outstanding on such date and a closing sales price for the registrant's common stock of $0.034 as reported on the OTC BB on such date.

      As of March 30, 2016, the registrant had 221,593,227 shares of common stock outstanding.



Explanatory Note

We are filing this Amendment No. 1 (the "Amendment") on Form 10-K/A to amend our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 (the "Original Filing") that was filed with the Securities and Exchange Commission on April 14, 2016, solely for the purpose of providing our Exhibit 101 - Interactive Data File (XBRL Exhibit) required by Rule 405 of Regulation S-T, which was omitted in the Original Filing. In addition, pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, as amended, as a result of this Amendment, the certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002, filed and furnished, respectively, as exhibits to the original filing have been re-executed and re-filed as of the date of this Amendment and are included as exhibits hereto. Except as described above, this Amendment does not amend any other information set forth in the Original Filing, and the Company has not updated disclosures included therein to reflect any events that occurred subsequent to April 14, 2016.

PART IV

ITEM 15. EXHIBITS, CONSOLIDATED FINANCIAL STATEMENTS SCHEDULES

(a) The following documents are filed as part of this annual report on Form 10-K:

(1) Consolidated Financial Statements.

Reference is made to the Index to Consolidated Financial Statements under Item 8 of Part II hereof and incorporating by reference pages F-1 through F-20 of the annual report on Form 10-K filed April 14, 2016.

(2) Financial Statement Schedules.

All other schedules are omitted because they are not applicable or the amounts are immaterial or the required information is presented in the financial statements and notes thereto.

(3) Exhibits.

The following exhibits are either filed herewith or incorporated herein by reference:

EXHIBIT INDEX

 

Exhibit
Number

 

Exhibit Description

 

2.1

 

+ Agreement and Plan of Merger and Reorganization, dated as of November 8, 2008, by and among Favrille, Inc., Montana Merger Sub, Inc. and mymedicalrecords.com, Inc. (incorporated by reference to Exhibit 2.1 of the registrant's current report on Form 8-K filed on November 13, 2008)

 

2.2

 

Form of Voting Agreement, dated as of November 8, 2008, by and among Favrille, Inc. and certain stockholders of mymedicalrecords.com, Inc. (incorporated by reference to Exhibit 2.2 of the registrant's current report on Form 8-K filed on November 13, 2008)

 

3.1

 

Amended and Restated Certificate of Incorporation, as amended by a Certificate of Amendment of Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 of the registrant's current report on Form 8-K filed on February 2, 2009)

 

3.2

 

Certificate of Amendment of Certificate of Incorporation of MMR Information Systems, Inc., dated as of July 10, 2009 (incorporated by reference to Exhibit 3.2 of the registrant's current report on Form 8-K filed on July 13, 2009)

 

3.3

 

Certificate of Ownership and Merger (incorporated by reference to Exhibit 3.2 of the registrant's current report on Form 8-K filed on February 2, 2009)

 

3.4

 

Certificate of Amendment of Amended and Restated Certificate of Incorporation of the Company, as amended, dated as of June 15, 2010 (incorporated by reference to Exhibit 3.1 of the registrant's current report on Form 8-K filed on June 18, 2010)

 

3.5

 

Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 of the registrant's current report on Form 8-K filed on October 9, 2007)

 

3.7

 

Certificate of Amendment of Amended and Restated Certificate of Incorporation of the Company, as amended, dated as of June 22, 2012. (incorporated by reference to Exhibit 3.7 of the registrant's annual report on Form 10-K for the year ended December 31, 2012)

 

3.8

 

Certificate of Amendment of Certificate of Incorporation of MyMedicalRecords, Inc., dated as of February 19, 2015. (incorporated by reference to Exhibit 3.8 of the registrant's annual report on Form 10-K for the year ended December 31, 2014)

 

3.9

 

Certificate of Amendment of Amended and Restated Certificate of Incorporation of MMRGlobal, Inc., dated as of January 29, 2016 (incorporated by reference to Exhibit 3.1 of the registrant's current report on Form 8-K filed on February 8, 2016).

 

4.1

 

Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to registrant's registration statement on Form S-1 (File No. 333-114299) filed on May 11, 2004)

 

4.2

 

Amended and Restated Investor Rights Agreement dated March 26, 2004 among the registrant and certain of its stockholders (incorporated by reference to Exhibit 4.2 to registrant's registration statement on Form S-1 (File No. 333-114299) filed on April 8, 2004)

Page 1


 

4.3

 

Amendment No. 1 to Amended and Restated Investor Rights Agreement dated April 6, 2004 among the registrant and certain of its stockholders (incorporated by reference to Exhibit 4.3 to registrant's registration statement on Form S-1 (File No. 333-114299) filed on April 8, 2004)

 

4.4

 

Securities Purchase Agreement dated March 6, 2006, by and among registrant and the individuals and entities identified on Exhibit A thereto (incorporated by reference to Exhibit 4.4 of the registrant's current report on Form 8-K filed on March 10, 2006)

 

4.5

 

Form of Warrant issued pursuant to the Securities Purchase Agreement dated March 6, 2006, by and among registrant and the individuals and entities identified on Exhibit A thereto (incorporated by reference to Exhibit 4.5 of the registrant's current report on Form 8-K filed on March 10, 2006)

 

4.6

 

Securities Purchase Agreement dated February 12, 2007, by and among registrant and certain investors (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 8-K filed on February 13, 2007)

 

4.7

 

Warrant to purchase 250,000 shares of common stock dated December 19, 2006 issued to Kingsbridge Capital Limited (incorporated by reference to Exhibit 4.1 of the registrant's current report on Form 8-K filed on December 20, 2006)

 

4.8

 

Registration Rights Agreement dated December 19, 2006, by and between registrant and Kingsbridge Capital Limited (incorporated by reference to Exhibit 4.2 of the registrant's current report on Form 8-K filed on December 20, 2006)

 

4.9

 

Amendment No. 1 to Registration Rights Agreement dated December 19, 2006, by and between registrant and Kingsbridge Capital Limited dated August 10, 2007 (incorporated by reference to Exhibit 4.11 of the registrant's quarterly report on Form 10-Q for the quarter ended June 30, 2007)

 

4.10

 

Warrant to purchase 48,834 shares of common stock dated December 30, 2005 issued to General Electric Capital Corporation (incorporated by reference to Exhibit 4.6 of the registrant's annual report on Form 10-K for the year ended December 31, 2005)

 

4.11

 

Warrant to purchase 48,834 shares of common stock dated December 30, 2005 issued to Oxford Finance Corporation (incorporated by reference to Exhibit 4.7 of the registrant's annual report on Form 10-K for the year ended December 31, 2005)

 

4.12

 

Form of Warrant issued to investors in November 2007 registered direct offering (incorporated by reference to Exhibit 4.1 of the registrant's current report on Form 8-K filed on November 5, 2007)

 

4.13

 

Placement Agent Agreement dated November 2, 2007, by and between registrant and Lazard Capital Markets, LLC (incorporated by reference to Exhibit 1.1 of the registrant's current report on Form 8-K filed on November 5, 2007)

 

4.14

 

Warrant to purchase 10,000 shares of common stock dated April 8, 2008 issued to Porter Novelli Life Sciences, LLC (incorporated by reference to Exhibit 4.13 of the registrant's quarterly report on Form 10-Q for the quarter ended March 31, 2008)

 

4.15

 

Form of Warrant issued pursuant to the Creditor Plan dated as of November 8, 2008 by and among registrant, mymedicalrecords.com, Inc. and Kershaw, Mackie & Co. as the administrative agent (incorporated by reference to Exhibit 4.15 of the registrant's current report on Form 8-K filed on February 2, 2009)

 

10.1

 

**Amended and Restated 2001 Equity Incentive Plan and Form of Stock Option Agreement thereunder (incorporated by reference to Exhibit 10.2 to registrant's registration statement on Form S-1 (File No. 333-114299) filed on April 8, 2004)

 

10.2

 

** 2005 Non-Employee Directors' Stock Option Plan, as amended (incorporated by reference to Exhibit 10.4A of the registrant's annual report on Form 10-K for the year ended December 31, 2006)

 

10.3

 

**Form of Stock Option Agreement to the 2005 Non-Employee Directors' Stock Option Plan, as amended (incorporated by reference to Exhibit 10.3 to registrant's registration statement on Form S-1 (File No. 333-114299) filed on January 7, 2005)

 

10.4

 

**2005 Employee Stock Purchase Plan and Form of Offering Document thereunder (incorporated by reference to Exhibit 10.4 to registrant's registration statement on Form S-1 (File No. 333-114299) filed on January 7, 2005)

 

10.5

 

Creditor Plan dated as of November 8, 2008 by and among registrant, mymedicalrecords.com, Inc. and Kershaw, Mackie & Co. as the administrative agent. (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 8-K filed on November 13, 2008)

Page 2


 

10.9

 

Form of Indemnity Agreement for the registrant's directors and executive officers (incorporated by reference to Exhibit 10.9 of the registrant's current report on Form 8-K filed on February 2, 2009)

 

10.10

 

**Employment Agreement dated as of January 27, 2009 by and among the registrant, MMR and Robert H. Lorsch (incorporated by reference to Exhibit 10.10 of the registrant's current report on Form 8-K filed on February 2, 2009)

 

10.12

 

Amended and Restated Consulting Agreement dated as of January 27, 2009 by and between MMR and The RHL Group, Inc. (incorporated by reference to Exhibit 10.12 of the registrant's current report on Form 8-K filed on February 2, 2009)

 

10.14

 

Marketing and Strategic Planning Agreement dated November 23, 2005 by and between MMR and Bernard Stolar (incorporated by reference to Exhibit 10.14 of the registrant's current report on Form 8-K filed on February 2, 2009)

 

10.18

 

Secured Credit Restructuring Agreement dated April 29, 2009, by and between the registrant, MMR, The RHL Group, Inc. and Robert H. Lorsch (incorporated by reference to Exhibit 10.2 of the registrant's current report on Form 8-K filed on May 4, 2009)

 

10.19

 

Guaranty dated April 29, 2009, made by the registrant in favor of The RHL Group, Inc. (incorporated by reference to Exhibit 10.3 of the registrant's current report on Form 8-K filed on May 4, 2009)

 

10.21

 

** Stock Option Agreement dated August 6, 2009, by and between MMR Information Systems, Inc. and Robert H. Lorsch (incorporated by reference to Exhibit 10.1 of the registrant's quarterly report on Form 10-Q filed on August 27, 2009)

 

10.22

 

Waiver Agreement, dated August 18, 2009, by and among MMR Information Systems, Inc., MyMedicalRecords, Inc., and The RHL Group, Inc. (incorporated by reference to Exhibit 10.2 of the registrant's quarterly report on Form 10-Q filed on August 27, 2009)

 

10.23

 

** Warrant dated August 18, 2009, issued by MMR Information Systems, Inc. in favor of Robert H. Lorsch (incorporated by reference to Exhibit 10.3 of the registrant's quarterly report on Form 10-Q filed on August 27, 2009)

 

10.24

 

Warrant dated August 18, 2009, issued by MMR Information Systems, Inc. in favor of The RHL Group, Inc. (incorporated by reference to Exhibit 10.4 of the registrant's quarterly report on Form 10-Q filed on August 27, 2009)

 

10.29

 

** Employment Agreement dated as of January 26, 2010 by and among MMR Information Systems and Ingrid Safranek. (incorporated by reference to Exhibit 10.29 of the registrant's annual report on Form 10-K for the year ended December 31, 2009)

 

10.30

 

** Amendment No. 1, dated March 5, 2010, to that Stock Option Agreement, dated August 6, 2009, by and between MMR Information Systems, Inc., and Robert H. Lorsch. (incorporated by reference to Exhibit 10.30 of the registrant's annual report on Form 10-K for the year ended December 31, 2009)

 

10.32

 

+ Non-Exclusive License Agreement dated December 21, 2010, by and between MMRGlobal, Inc. and Celgene Corporation. (incorporated by reference to Exhibit 10.32 of the registrant's annual report on Form 10-K for the year ended December 31, 2010)

 

10.34

 

**Employment Agreement dated as of December 15, 2010, by and between the Company and Ingrid Safranek. (incorporated by reference to Exhibit 10.33 of the registrant's annual report on Form 10-K for the year ended December 31, 2010)

 

10.36

Guaranty dated April 29, 2011, made by the registrant in favor of The RHL Group, Inc. (incorporated by reference to Exhibit 10.3 of the registrant's current report on Form 8-K filed on May 26, 2011)

 

10.37

+ Equipment Purchase Agreement, Effective as of July 11, 2011, by and between the Company and Eastman Kodak Company (incorporated by reference to Exhibit 10.1 of the registrant's quarterly report on Form 10-Q filed on August 15, 2011).

 

10.38

Settlement and Patent License Agreement, Effective as of December 9, 2011, by and between the Company and Surgery Center Management, LLC. (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 8-K filed on January 17, 2012)

 

10.39

**Employment Agreement dated as of December 23, 2011, by and between the Company and Richard Lagani. (incorporated by reference to Exhibit 10.39 of the registrant's annual report on Form 10-K for the year ended December 31, 2011)

Page 3


 

10.40

**Employment Agreement dated as of January 1, 2012 by and among the registrant, MMR and Robert H. Lorsch. (incorporated by reference to Exhibit 10.40 of the registrant's annual report on Form 10-K for the year ended December 31, 2011)

 

10.41

**Employment Agreement dated as of January 1, 2012 by and among the registrant, MMR and Rafael ("Ralph") Salazar. (incorporated by reference to Exhibit 10.41 of the registrant's annual report on Form 10-K for the year ended December 31, 2011)

 

10.42

**Amended Employment Agreement dated as of January 1, 2012 by and among the registrant, MMR and Ingrid Safranek. (incorporated by reference to Exhibit 10.42 of the registrant's annual report on Form 10-K for the year ended December 31, 2011)

 

10.43

 

**2011 Equity Incentive Plan and Form of Stock Option Agreement thereunder. (incorporated by reference to Exhibit 10.43 of the registrant's annual report on Form 10-K for the year ended December 31, 2011)

 

10.44

 

Investment Agreement, dated April 16, 2012, by and between the Company and Granite State Capital, LLC. (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 8-K filed on April 18, 2012)

 

10.45

 

Registration Rights Agreement, dated April 16, 2012, by and between the Company and Granite State Capital, LLC. (incorporated by reference to Exhibit 10.2 of the registrant's current report on Form 8-K filed on April 18, 2012)

 

10.47

 

First Amended Security Agreement dated June 26, 2012 by and between MMR and The RHL Group, Inc. (incorporated by reference to Exhibit 10.2 of the registrant's current report on Form 10-Q filed on August 14, 2012)

 

10.49

 

+ Reseller Agreement, dated September 27, 2012, by and between the Company and VisiInc, PLC (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 10-Q filed on November 14, 2012).

 

10.50

 

+ MMRPro Valued-Added Reseller Agreement dated September 27, 2012 by and between MMR and the Visilnc PLC Confidential portions omitted and filed separately with the U.S. Securities and Exchange Commission pursuant to Rule 24b-2 promulgated under the Securities Exchange Act of 1934, as amended (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 10-Q filed on May 15, 2013).

 

10.51

 

Eighth Amended and Restated Secured Promissory Note dated August 13, 2013 by and between MMR and The RHL Group, Inc (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 10-Q filed on August 14, 2013).

 

10.52

 

+ Settlement Agreement and Mutual Releases, dated February 28, 2014, by and between MyMedicalRecords, Inc. and Walgreen Co. (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 10-Q filed on May 15, 2014).

 

10.53

 

Ninth Amended and Restated Secured Promissory Note dated April 29, 2014 by and between MMR and The RHL Group, Inc (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 10-Q filed on August 14, 2014).

 

10.54

 

+ Patent License Agreement, dated June 30, 2014, by and between the Company and Salutopia, Inc. (incorporated by reference to Exhibit 10.2 of the registrant's current report on Form 10-Q filed on August 14, 2014).

 

10.55

 

+ Patent License Agreement, dated June 30, 2014, by and between the Company and Claydata Australia Pty Ltd (incorporated by reference to Exhibit 10.3 of the registrant's current report on Form 10-Q filed on August 14, 2014).

 

10.56

 

Tenth Amended and Restated Secured Promissory Note dated May 20, 2015 by and between MMR and the RHL Group, Inc. (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 10-Q filed on August 14, 2015).

 

16.1

 

Letter re: Change in Certifying Accountant. (incorporated by reference to Exhibit 16.1 of the registrant's current report on Form 8-K/A filed on January 5, 2010)

 

21.1

 

(1) Schedule of Subsidiaries

 

23.1

 

(1) Consent of Rose, Snyder & Jacobs LLP, Independent Registered Public Accounting Firm

 

24.1

 

(1) Power of Attorney (included in the signature pages hereof)

Page 4


 

31.1

 

* Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.

 

31.2

 

* Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.

 

32.1

 

* Certification of Chief Executive Officer Pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.

 

32.1

 

* Certification of Chief Financial Officer Pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.

 

101.INS

 

* XBRL Instance Document

 

101.SCH

 

* XBRL Taxonomy Extension Schema Document

 

101.CAL

 

* XBRL Taxonomy Extension Calculation Linkbase Document

 

101.DEF

 

* XBRL Taxonomy Extension Definition Linkbase Document

 

101.LAB

 

* XBRL Taxonomy Extension Label Linkbase Document

 

101.PRE

 

* XBRL Taxonomy Extension Presentation Linkbase Document

 

 

 

 

 

 

(1)

Previously filed on April 14, 2016 with the annual report on Form 10-K.

 

 

+

The Company has requested confidential treatment with respect to portions of this exhibit.

 

 

*

Filed herewith.

 

 

**

This exhibit is identified as a management contract or compensatory plan or arrangement pursuant to Item 15(a)(3) of Form 10-K.

 

 

Page 5


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized this 21st day of April, 2016.

MMRGLOBAL, INC.

By: /s/ Robert H. Lorsch
Name: Robert H. Lorsch
Title: Chairman, President and Chief Executive Officer

 

 

 

 

 

Page 6


 

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M)L35J1<(V2W\SXYM_A_XE4C_ (IZ]^GV5O\ "OJOP$)5\&::L\;(ZV:*Z,N" M#@#!':MKR8LY\L?E3@ !@ 5]=P/X';G;AIQC+VS-C.U\<>A%?C#^PG87_AC]KOP]HVNV,MO=VVHR075O,FU MXY K*00>F#7]*,JY/7'%?F_^WQ_P3N7PC^V+X2_;"^$>BXT_4]5\KQ=86T/^ MIN"I"W( [/T;_: ]:[<5F;CPSC<%4U4JQT5)/WM[*GS2#TC'<^_05Z3\%OV4WU:6+Q3\3+ M?RX.&@TL_>?G@R'L/]G\Z^A[&QM+"W2TLH5BBC4+''&NU5 Z 5_,_!WA5/% MRCCG^9C> ?AMX5^&^@Q^'_ EI<=M" M@&]@OSRL."SMU8UO&,@ EX-31 3 exh31-1.htm CEO 302 CERT Form 10-K 2015 Exhibit 31.1

Exhibit 31.1

Certification

I, Robert H. Lorsch, certify that:

1. I have reviewed this annual report on Form 10-K of MMRGlobal, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: April 21, 2016

 

/s/ Robert H. Lorsch


Name: Robert H. Lorsch
Title: Chief Executive Officer








EX-31 4 exh31-2.htm CFO 302 CERT Form 10-K 2015 Exhibit 31.2

Exhibit 31.2

Certification

I, Bernard Stolar, certify that:

1. I have reviewed this annual report on Form 10-K of MMRGlobal, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: April 21, 2016

 

/s/ Bernard Stolar


Name: Bernard Stolar
Title: Acting Chief Financial Officer








EX-32 5 exh32-1.htm CEO 906 CERT Form 10-K 2015 Exhibit 32.1

Exhibit 32.1

Certification

I, Robert H. Lorsch, certify, pursuant to Rule 13(a)-14(b) or Rule 15(d)-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, that (i) the Annual Report on Form 10-K of MMRGlobal, Inc. for the year ended December 31, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in such Annual Report on Form 10-K fairly presents in all material respects the financial condition and results of operations of MMRGlobal, Inc.

/s/ Robert H. Lorsch


Name:

 

Robert H. Lorsch

Title:

 

Chief Executive Officer

Date:

 

April 21, 2016

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being "filed" as part of the Form 10-K or as a separate disclosure document for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to liability under that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act except to the extent that this Exhibit 32.1 is expressly and specifically incorporated by reference in any such filing.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.








EX-32 6 exh32-2.htm CFO 906 CERT Form 10-K 2015 Exhibit 32.2

Exhibit 32.2

Certification

I, Bernard Stolar, certify, pursuant to Rule 13(a)-14(b) or Rule 15(d)-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, that (i) the Annual Report on Form 10-K of MMRGlobal, Inc. for the year ended December 31, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in such Annual Report on Form 10-K fairly presents in all material respects the financial condition and results of operations of MMRGlobal, Inc.

/s/ Bernard Stolar


Name:

 

Bernard Stolar

Title:

 

Acting Chief Financial Officer

Date:

 

April 21, 2016

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being "filed" as part of the Form 10-K or as a separate disclosure document for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to liability under that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act except to the extent that this Exhibit 32.2 is expressly and specifically incorporated by reference in any such filing.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.








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(&#34;MMR Inc.&#34;), we provide secure and easy-to-use online Personal Health Records (&#34;PHR&#34;) and MyEsafeDepositBox storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, retailers, and professional organizations and affinity groups. Our PHR, marketed both directly via our website at <font style="color: blue"><u>www.mymedicalrecords.com</u></font> at online retailers and as a private-label service, enables individuals and families to access their medical records and other important documents, such as birth certificates, passports, insurance policies and wills, anytime from anywhere using an Internet-connected device. The MyMedicalRecords PHR is built on proprietary, patented and patent-pending technologies to allow documents, images and voicemail messages to be transmitted and stored in the system using a variety of methods, including fax, phone, or file upload without relying on any specific electronic medical record platform to populate a user's account.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The Company's professional offering, MMRPro, is an end-to-end electronic document management and imaging system designed to give physicians' offices, community hospitals and surgery centers an easy and cost-effective solution to digitizing paper-based medical records and sharing them with patients in a timely manner through an integrated patient portal, MMRPatientView. The MMR Stimulus Program is offered with the MMRPro product offerings to help healthcare professionals recoup some or all of the cost of digital conversion of patient charts when they upgrade patients from the free MMRPatientView portal to a full-featured MyMedicalRecords PHR. In addition, in January 2009, as a result of the Merger, we acquired biotech assets and other intellectual property including anti-CD20 antibodies and data and samples from its FavId/Specifid vaccine clinical trials for the treatment of B-cell Non-Hodgkin's lymphoma.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Since 2005, MMR Inc. began filing for patent protection for its products and services. 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Warrant exercise by related parties Warrant exercise by related parties, shares Warrant exercises Warrant exercises, shares Warrants issued for services USTGlobalMember NinthAmendedAndRestatedSecuredPromissoryNoteMember Media Content [Member] Assets, Current Assets Liabilities, Current Liabilities Stockholders' Equity Attributable to Parent Liabilities and Equity Revenue, Net Gross Profit Operating Income (Loss) Other Income Interest and Debt Expense Weighted Average Number of Shares Outstanding, Basic and Diluted Shares, Issued AccountsPayableWriteoff Allocated Share-based Compensation Expense Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities Increase (Decrease) in Accounts Receivable Increase (Decrease) in Inventories Increase (Decrease) in Prepaid Expense Increase (Decrease) in Accounts Payable and Accrued Liabilities Increase (Decrease) in Accounts Payable, Related Parties Increase (Decrease) in Accrued Salaries Increase (Decrease) in Deferred Revenue SubtotalNetChangeInOperatingAssetsAndLibilities Net Cash Provided by (Used in) Operating Activities, Continuing Operations Payments to Acquire Machinery and Equipment Payments to Acquire Intangible Assets Payments to Develop Software Net Cash Provided by (Used in) Investing Activities, Continuing Operations Repayments of Notes Payable Repayments of Lines of Credit Repayments of Debt and Capital Lease Obligations Net Cash Provided by (Used in) Financing Activities, Continuing Operations Cash and Cash Equivalents, Period Increase (Decrease) Line of Credit, Current Accounts Payable, Related Parties, Current Property, Plant and Equipment, Gross Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment Other Intangible Assets, Net Effective Income Tax Rate Reconciliation, Percent Deferred Tax Liabilities, Property, Plant and Equipment Deferred Tax Assets, Gross Deferred Tax Assets, Net of Valuation Allowance Operating Leases, Future Minimum Payments Due, Next Twelve Months Operating Leases, Future Minimum Payments, Due in Two Years Operating Leases, Future Minimum Payments, Due in Three Years Operating Leases, Future Minimum Payments Due Capital Leases, Future Minimum Payments Due Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsExercisePriceRangeLowerRangeLimit SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsExercisePriceRangeUpperRangeLimit Amortization of Debt Issuance Costs and Discounts EX-101.PRE 12 mmrf-20151231_pre.xml XML 13 R1.htm IDEA: XBRL DOCUMENT v3.3.1.900
Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2015
Mar. 30, 2016
Jun. 30, 2015
Document And Entity Information      
Entity Registrant Name MMRGlobal, Inc.    
Entity Central Index Key 0001285701    
Document Type 10-K    
Document Period End Date Dec. 31, 2015    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
Is Entity a Well-known Seasoned Issuer? No    
Is Entity a Voluntary Filer? No    
Is Entity's Reporting Status Current? Yes    
Entity Filer Category Smaller Reporting Company    
Entity Public Float     $ 5,899,029
Entity Common Stock, Shares Outstanding   221,593,227  
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2015    
XML 14 R2.htm IDEA: XBRL DOCUMENT v3.3.1.900
Consolidated Balance Sheets - USD ($)
Dec. 31, 2015
Dec. 31, 2014
Current assets:    
Cash and cash equivalents $ 0 $ 309,393
Accounts receivable, less allowances of $215,483 and $173,591 in 2015 and 2014, respectively 27,934 47,718
Inventory 0 13,537
Prepaid expenses and other current assets 0 162,184
Total current assets 27,934 532,832
Property and equipment, net 19,071 32,118
Intangible assets, net of accumulated amortization of $38,567 and $1,141,121 respectively 669,603 1,790,622
Total assets 716,608 2,355,572
Current liabilities:    
Line of credit, related party 1,002,428 753,704
Related party payables 1,351,083 952,835
Compensation payable 727,509 491,109
Severance liability 620,613 620,613
Accounts payable and accrued expenses 4,420,585 4,668,960
Deferred revenue 0 51,312
Convertible notes payable 323,749 932,047
Notes payable, current portion 369,413 360,343
Notes payable, related party 91,561 253,664
Capital leases payable, current portion 13,221 13,221
Total current liabilities 8,920,162 9,097,808
Total liabilities $ 8,920,162 9,097,808
Commitments and contingencies (See Note 9)  
Stockholders' deficit:    
Preferred stock - $0.001 per value, 5,000,000 shares authorized, 0 issued and outstanding. $ 0 0
Common stock, $0.001 par value, 1,250,000,000 shares authorized, 211,851,177 and 154,883,548 shares issued and outstanding as of December 31, 2015 and December 31, 2014, respectively 1,059,050 774,211
Additional paid-in capital 57,687,270 56,437,812
Accumulated deficit (66,949,874) (63,954,259)
Total stockholders' deficit (8,203,554) (6,742,236)
Total liabilities and stockholders' deficit $ 716,608 $ 2,355,572
XML 15 R3.htm IDEA: XBRL DOCUMENT v3.3.1.900
Consolidated Balance Sheets (Parenthetical) - USD ($)
Dec. 31, 2015
Dec. 31, 2014
Current assets:    
Allowances $ 215,483 $ 173,591
Stockholders' deficit:    
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 1,250,000,000 1,250,000,000
Common stock, shares issued 211,851,177 154,883,548
Common stock, shares outstanding 211,851,177 154,883,548
XML 16 R4.htm IDEA: XBRL DOCUMENT v3.3.1.900
Consolidated Statements of Operations - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Revenues    
Subscriber $ 100,719 $ 134,984
MMR Pro 47,259 44,547
License fees 34,480 2,392,538
Other income 8,917 7,500
Total revenues 191,375 2,579,569
Cost of revenues 232,685 378,342
Gross (loss) profit (41,310) 2,201,227
General and administrative expenses 2,931,559 4,238,320
Sales and marketing expenses 564,001 1,305,901
Technology development 0 76,247
Loss from operations (3,536,870) (3,419,241)
Other income 781,126 1,672,820
Interest and other finance charges, net (239,871) (433,791)
Net loss $ (2,995,615) $ (2,180,212)
Net income (loss) per share:    
Basic and diluted $ (0.02) $ (0.01)
Weighted average common shares outstanding:    
Basic and diluted 175,846,916 148,120,906
XML 17 R5.htm IDEA: XBRL DOCUMENT v3.3.1.900
Consolidated Statements of Stockholders' Deficit - USD ($)
Preferred Stock
Common Stock
Additional Paid-In Capital
Accumulated Deficit
Total
Beginning balances at Dec. 31, 2013 $ 0 $ 684,536 $ 53,215,960 $ (61,774,047) $ (7,873,551)
Beginning balances, shares at Dec. 31, 2013 0 136,873,492      
Convertible debt conversions $ 0 $ 15,369 324,631 0 340,000
Convertible debt conversions, shares   3,073,896      
Shares issued for services or reduction to liabilities 0 $ 18,542 585,853 0 604,395
Shares issued for services or reduction to liabilities, shares   3,708,506      
Shares issued for financing activities 0 $ 53,138 1,367,108 0 1,422,246
Shares issued for financing activities, shares   10,627,654      
Stock-based compensation 0 $ (500) 621,632 0 621,132
Stock-based compensation, shares   (100,000)      
Warrant exercises 0 $ 1,500 40,500 0 42,000
Warrant exercises, shares   300,000      
Warrants issued for services 0 $ 0 159,169 0 159,169
Creation of note discount 0 $ 1,626 122,959 0 198,749
Creation of note discount, shares   400,000      
Net loss 0 $ 0 0 (2,180,212) (2,180,212)
Ending balances at Dec. 31, 2014 $ 0 $ 774,211 56,437,812 (63,954,259) (6,742,236)
Ending balance, shares at Dec. 31, 2014 0 154,883,548      
Convertible debt conversions $ 9 $ 139,064 884,543 0 1,023,607
Convertible debt conversions, shares   27,812,768      
Shares issued for services or reduction to liabilities 0 $ 127,788 272,156 0 399,944
Shares issued for services or reduction to liabilities, shares   25,557,562      
Shares issued for financing activities 0 $ 17,987 43,790 0 $ 61,777
Shares issued for financing activities, shares   3,597,299      
Stock option exercises, shares         0
Stock-based compensation 0 $ 0 22,426 0 $ 22,426
Stock-based compensation, shares   0      
Warrants issued for services 0 $ 0 26,453 0 26,453
Net loss 0 0 0 (2,995,615) (2,995,615)
Ending balances at Dec. 31, 2015 $ 0 $ 1,059,050 $ 57,687,270 $ (66,949,874) $ (8,203,554)
Ending balance, shares at Dec. 31, 2015 0 211,851,177      
XML 18 R6.htm IDEA: XBRL DOCUMENT v3.3.1.900
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Operating activities:    
Net loss $ (2,995,615) $ (2,180,212)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 267,378 302,762
Gain on wrie-off of liabilities (721,461) (1,672,820)
Non-cash write down of assets 1,054,449 152,738
Bad debt expense and allowance for doubtful accounts 41,892 69,784
Warrants issued for services 26,543 159,169
Stock-based compensation 22,426 621,132
Common stock issued for services 38,200 296,422
Amortization of loan discount 78,560 214,953
Subtotal - non-cash adjustments 807,987 144,140
Effect of changes in:    
Accounts receivable (22,108) 28,796
Inventory 0 (13,537)
Prepaid expenses and other current assets 162,184 (7,547)
Accounts payable and accrued expenses 640,774 1,162,790
Related party payables 398,248 121,938
Compensation payable 236,400 89,030
Deferred revenue (51,312) (9,899)
Subtotal - net change in operating assets and liabilities 1,364,186 1,371,571
Net cash used in operating activities (823,442) (664,501)
Investing activities:    
Purchase of property and equipment (1,252) (7,401)
Filing of patents 0 (356,047)
Cost of continuing MMRPro and website development 0 (52,485)
Net cash used in investing activities (1,252) (415,933)
Financing activities:    
Net proceeds from convertible notes 0 200,000
Proceeds from shares issued for financing activities 61,777 1,422,246
Net proceeds from warrant exercises 0 42,000
Proceeds from note payable 30,000 85,000
Payments of note payable 0 (50,000)
Proceeds on line of credit 423,524 0
Payments of line of credit 0 (316,141)
Payments of capital lease 0 (3,637)
Net cash provided by financing activities 515,301 1,379,468
Net increase (decrease) in cash (309,393) 299,034
Cash, beginning of period 309,393 10,359
Cash, end of period 0 309,393
Supplemental disclosures of cash flow information:    
Cash paid for interest 137,254 200,929
Cash paid for income taxes 1,600 1,457
Supplemental disclosure of non-cash investing and financing activities:    
Conversion of convertible notes into common stock 1,023,607 340,000
Cancellation of investment in equity securities 0 87,500
Payment of accounts payable and related party payables through issuance of common stock $ 361,744 $ 296,422
XML 19 R7.htm IDEA: XBRL DOCUMENT v3.3.1.900
NATURE OF OPERATIONS AND BASIS OF PRESENTATION - Note 1
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
NATURE OF OPERATIONS AND BASIS OF PRESENTATION - Note 1

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION

MMRGlobal Inc. (referred to herein, unless otherwise indicated, as "MMR," the "Company," "we," "us," and "our") was originally incorporated as Favrille, Inc. ("Favrille") in Delaware in 2000, and since its inception and before the Merger (with MyMedicalRecords, Inc. in 2009), operated under a different management team as a biopharmaceutical company focused on the development and commercialization of targeted immunotherapies for the treatment of cancer and other diseases of the immune system. In May 2008, Favrille's ongoing Phase 3 registration trial for its lead product candidate failed to show a statistically significant improvement in the treatment of patients with follicular B-cell non-Hodgkin's lymphoma.

Through our wholly-owned operating subsidiary MyMedicalRecords, Inc. ("MMR Inc."), we provide secure and easy-to-use online Personal Health Records ("PHR") and MyEsafeDepositBox storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, retailers, and professional organizations and affinity groups. Our PHR, marketed both directly via our website at www.mymedicalrecords.com at online retailers and as a private-label service, enables individuals and families to access their medical records and other important documents, such as birth certificates, passports, insurance policies and wills, anytime from anywhere using an Internet-connected device. The MyMedicalRecords PHR is built on proprietary, patented and patent-pending technologies to allow documents, images and voicemail messages to be transmitted and stored in the system using a variety of methods, including fax, phone, or file upload without relying on any specific electronic medical record platform to populate a user's account.

The Company's professional offering, MMRPro, is an end-to-end electronic document management and imaging system designed to give physicians' offices, community hospitals and surgery centers an easy and cost-effective solution to digitizing paper-based medical records and sharing them with patients in a timely manner through an integrated patient portal, MMRPatientView. The MMR Stimulus Program is offered with the MMRPro product offerings to help healthcare professionals recoup some or all of the cost of digital conversion of patient charts when they upgrade patients from the free MMRPatientView portal to a full-featured MyMedicalRecords PHR. In addition, in January 2009, as a result of the Merger, we acquired biotech assets and other intellectual property including anti-CD20 antibodies and data and samples from its FavId/Specifid vaccine clinical trials for the treatment of B-cell Non-Hodgkin's lymphoma.

Since 2005, MMR Inc. began filing for patent protection for its products and services. Through the most recent year, the Company had received thirteen U.S. health IT patents pertaining to Personal Health Records, patient portals and Electronic Health Records and numerous other patents issued, pending and applied for in other countries and territories of commercial interest. The Company believes these patents represent a foundational patent portfolio which could have significant ramifications to healthcare professionals and vendors of health IT products and services. As a result of the issuance of these patents, and certain requirements affecting the use of health IT products and services, the Company's business is evolving to include both an operating entity and a licensor of intellectual property.

On March 8, 2011, we formed a subsidiary, which we named MMR Life Sciences Group, Inc., exclusively to maximize the value of our biotech assets including the Company's anti-CD20 antibodies and related FavId vaccine technologies acquired by MyMedicalRecords, Inc. through the merger with Favrille. As of this date the assets have not been transferred to the subsidiary.

The Company (formerly Favrille) was incorporated in Delaware in 2000, MMR Inc. was incorporated in Delaware in 2005, and both are headquartered in Los Angeles, CA.

Principles of Consolidation

The consolidated financial statements include the accounts of MMRGlobal, and its wholly-owned subsidiaries MMR and MMR Life Sciences Group, Inc. All intercompany transactions and balances are eliminated upon consolidation.

Basis of Presentation and Going Concern

The accompanying financial statements are prepared in accordance with U.S. generally accepted accounting principles, or GAAP.

GOING CONCERN

As of December 31, 2015, the Company's current liabilities exceeded its current assets by $8.89 million. Furthermore, during the years ended December 31, 2015, and 2014, the Company incurred losses of $3.0 million and $2.18 million, respectively.

At December 31, 2015 and December 31, 2014, we had $0 and $309,393, respectively, in cash and cash equivalents. Historically, we issued capital stock, sold debt and equity securities and received funds from The RHL Group, Inc. (a significant stockholder that is wholly-owned by our Chairman and Chief Executive Officer, Robert H. Lorsch) to operate our business. Although we received additional funding from The RHL Group pursuant to the Tenth Amended and Restated Note effective May 20, 2015 (the "Line of Credit"), we will still be required to obtain additional financing in order to meet installment payment obligations and the previously existing obligations under the Line of Credit, which had a balance of $1,942,693 at December 31, 2015 and a total Unpaid Balance (as defined in the Line of Credit) of $2,192,693, which includes amounts borrowed under the Line of Credit, unpaid interest fees, any amounts guaranteed by The RHL Group, and other obligations due the RHL Group pursuant to the terms of the Tenth Amended and Restated Note and the Security Agreement. As a result of the above, we express uncertainty about our ability to continue as a going concern. The components of the RHL Group Note payable and the related balance sheet presentation as of December 31, 2015 are as follows: $1,002,428, which is included in the line of credit, related party; and $70,352 related to other obligations due to The RHL Group which are included in related party payables.

Management's plan regarding this matter is to, amongst other things, continue to utilize our available line of credit with The RHL Group (see Note 3). At December 31, 2015, we had approximately $2.3 million remaining as available under The RHL Group line of credit. Additionally, we plan to continue selling additional debt and equity securities, continue to settle our existing liabilities through issuance of equity securities, explore other debt financing arrangements, continue to increase our existing subscriber and affiliate customer base, sell MMRPro products, and continue licensing our intellectual property to obtain additional cash flow over the next twelve months. We cannot assure that funds from these sources will be available when needed or, if available, will be on terms favorable to us or to our stockholders. If we raise additional funds or settle liabilities by issuing equity securities, the percentage ownership of our stockholders will be reduced, stockholders may experience additional dilution or such equity securities may provide for rights, preferences or privileges senior to those of the holders of our common stock. If we are unable to utilize our available line of credit with The RHL Group or obtain suitable alternative debt or equity financing, our ability to execute our business plan and continue as a going concern may be adversely affected.

These matters raise substantial doubt about our ability to continue as a going concern. These financial statements were prepared under the assumption that the Company will continue as a going concern and do not include any adjustments that might result from the outcome of that uncertainty.

 

 

 

 

XML 20 R8.htm IDEA: XBRL DOCUMENT v3.3.1.900
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Note 2
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Note 2

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) MANAGEMENT'S USE OF ESTIMATES

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net revenue and expenses during each reporting period. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, allowances for doubtful accounts, the valuation of deferred income taxes, tax contingencies, long-lived and intangible assets, valuation of derivative liabilities and stock-based compensation. These estimates are based on historical experience and on various other factors that management believes to be reasonable under the circumstances, although actual results could differ from those estimates.

(b) CASH AND CASH EQUIVALENTS

We consider cash equivalents to be only those investments that are highly liquid, readily convertible to cash and with maturities of 90 days or less at the purchase date. We maintain our cash in bank deposit accounts that, at times, may exceed federally insured limits. We have not experienced any losses in such accounts and believe that we are not exposed to any significant credit or deposit risk on our cash. We had cash and cash equivalents of $0 and $309,393 as of December 31, 2015 and 2014, respectively.

(c) TRADE AND OTHER RECEIVABLES

Receivables represent claims against third parties that will be settled in cash. The carrying value of receivables, net of an allowance for doubtful accounts, if any, represents their estimated net realizable value. We estimate the allowance for doubtful accounts, if any, based on historical collection trends, type of customer, the age of outstanding receivables and existing economic conditions. If events or changes in circumstances indicate that specific receivable balances may be impaired, we give further consideration to the collectability of those balances and the allowance is adjusted accordingly. We write off past due receivable balances when collection efforts have been unsuccessful in collecting the amount due.

(d) FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC 820-10, Fair Value Measurements and Disclosures, requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. ASC 820-10 defines the fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. As of December 31, 2015, and 2014, the carrying value of accounts receivable, deposits, related party payables, compensation payable, severance liabilities, and accounts payable and accrued expenses approximates fair value due to the short-term nature of such instruments. The carrying value of short-term debt approximates fair value as the related interest rates approximate rates currently available to us.

We utilize ASC 820-10 for valuing financial assets and liabilities measured on a recurring basis. ASC 820-10 defines fair value, establishes a framework for measuring fair value and GAAP and expands disclosures about fair value measurements. This standard applies in situations where other accounting pronouncements either permit or require fair value measurements. ASC 820-10 does not require any new fair value measurements.

Accounting guidance also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The standard describes three levels of inputs that may be used to measure fair value:

  Level 1: Quoted prices in active markets for identical or similar assets and liabilities.
  Level 2: Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets and liabilities.
  Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

(e) PROPERTY AND EQUIPMENT

We record property and equipment at cost. We record equipment under capital leases at the present value of the minimum lease payments. We calculate depreciation using the straight- line method, based upon the following estimated useful lives:

Furniture and Fixtures: 5 Years

Computer Equipment: 5 Years

When we retire or dispose of items, we charge or credit income for the difference between the net book value of the asset and the proceeds realized thereon.

We charge expenditures for maintenance and repairs to operations as incurred while we capitalize renewals and betterments.

We have pledged as collateral all property and equipment, along with all of our other assets, for a line of credit from The RHL Group, a related party (see Note 3 - Related Party Note Payable).

(f) INTANGIBLE ASSETS

Intangible assets are comprised of website and software development costs, domain names and patents. We account for website and software development costs in accordance with ASC 350-50, Website Development Costs, and ASC 985-20, Costs of Software to Be Sold, Leased or Marketed. Pursuant to ASC 350-50 and 985-20, we capitalize internally developed website and software costs when the website or software under development has reached technological feasibility. We amortize these costs, typically over an estimated life of five years, using the larger of the amount calculated using the straight-line method or the amount calculated using the ratio between current period gross revenues and the total of current period gross revenues and estimated future gross revenues. At each balance sheet date, we evaluate the unamortized capitalized website and software costs compared to the net realizable value. We then write off the amount by which the unamortized capitalized website costs exceed its net realizable value.

We account for domain names and patents in accordance with ASC 350-30, General Intangibles Other than Goodwill. We capitalize patent costs representing legal fees associated with filing patent applications and amortize them on a straight-line basis. We amortize the patents when they are brought to the market or otherwise commercialized. We amortize identifiable intangible assets over their estimated useful lives as follows:

Website and Software Development Costs: 5 Years

Domain Name: 5 Years

Patents: 20 Years

(g) IMPAIRMENT OF LONG-LIVED ASSETS AND INTANGIBLES

We account for long-lived assets, which include property and equipment and identifiable intangible assets with finite useful lives (subject to amortization), in accordance with ASC 350-30. ASC 350-30 requires that we review long-lived assets for impairment whenever events or changes in circumstances indicate that we may not recover the carrying amount of an asset. We measure recoverability by comparing the carrying amount of an asset to the expected future undiscounted net cash flows generated by the asset. If we determine that the asset may not be recoverable, or if the carrying amount of an asset exceeds its estimated future undiscounted cash flows, we recognize an impairment charge to the extent of the difference between the fair value and the asset's carrying amount.

(h) REVENUE RECOGNITION

We generate our revenues from services, which are comprised of providing electronic access to consumer medical records and other vital documents and from the licensing of our services. We recognize revenue only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and we reasonably are assured of collectability of the resulting receivable.

Our subscriber revenues consist of annual and monthly recurring retail subscriptions and usage-based fees, which are primarily paid in advance by credit card, and corporate accounts that are based on either an access-fee or actual number of users, and in each case billed in advance at the beginning of each month of service. We defer the portions of annual recurring subscription fees collected in advance and recognize them on a straight line basis over the subscription period. Deferred revenue was insignificant in 2015.

We grant exclusive licenses for the sale and marketing of our services in international territories in consideration of an up-front license fee and an ongoing royalty. The royalty fee is usually a percentage of revenue earned by the licensee and there usually are certain minimum guarantees. We defer the recognition of license fee revenues received in advance from international licensees for the grant of the license and recognize them over the period covered by the agreement. We defer the recognition of minimum guaranteed royalty payments received in advance and recognize them over the period to which the royalty relates. We include all such revenues under "License Fees." In those cases where a license agreement contains multiple deliverables, we account for the agreement in accordance with ASC 605-25, Revenue Recognition - Multiple-Element Arrangements.

We recognize revenue on sales of our MMRPro system in accordance with ASC 605-25, Revenue Recognition, Multiple-Element Arrangements.

Our multiple-deliverable arrangements consist solely of our MMRPro product. Significant deliverables within these arrangements include sophisticated scanning equipment, various licenses to use third party software, a license to use our proprietary MMRPro application software, installation and training, dedicated telephone lines, secure online storage and warranties.

We determined all elements to be separate units of accounting as they have standalone value to the customers and/or they are sold by other vendors on a standalone basis. Delivery of the hardware and certain software elements of these arrangements occur at the inception of the agreement. We deliver installation and training at the inception of the agreement. We provide other software licenses, telephone lines and online secure storage over the three year term of the agreement. We include warranties in the arrangements, however the third party product manufacturer, and not us, is obligated to fulfill such warranties. The third-party warranty contracts are paid in advance and are not refundable.

We allocate the revenue derived from these arrangements among all the deliverables. We base such allocation on the relative selling price of each deliverable. With the exception of our proprietary MMRPro application software, we use third party evidence to set the selling prices used for this allocation. In all such cases, third parties sell the same or very similar products. For the MMRPro application software, we estimate the selling price based on recent discussions regarding licensure of that particular application on a standalone basis. To date, we have not licensed this software on a standalone basis.

We recognize the allocated revenue for each deliverable in accordance with SEC Staff Accounting Bulletin ("SAB") No. 104, Topic 13: Revenue Recognition. Under this guidance, we recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable and collectability is reasonably assured. This results in us recognizing revenue for the hardware, certain software and the warranties upon delivery to the customer, for the installation and training upon completion of these services, and ratably over the contract period for the software licenses, telephone lines and online secure storage.

Revenue from the licensing of our biotech assets may include non-refundable license and up-front fees, non-refundable milestone payments that are triggered upon achievement of a specific event and future royalties or lump-sum payments on sales of related products. For agreements that provide for milestone payments, such as the Celgene Agreement, we adopted ASC 605-28-25, Revenue Recognition, Milestone Method.

(i) INCOME TAXES AND UNCERTAIN TAX POSITIONS

We account for income taxes in accordance with ASC 740-10, Income Taxes. We recognize deferred tax assets and liabilities to reflect the estimated future tax effects, calculated at the tax rate expected to be in effect at the time of realization. We record a valuation allowance related to a deferred tax asset when it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.

ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. We classify interest and penalties as a component of interest and other expenses. To date, we have not been assessed, nor have we paid, any interest or penalties.

We measure and record uncertain tax positions by establishing a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Only tax positions meeting the more-likely-than-not recognition threshold at the effective date may be recognized or continue to be recognized.

(j) ADVERTISING

We expense advertising costs as we incur them. Advertising expense for the years ended December 31, 2015 and 2014 was $1,454 and $23,884, respectively.

(k) SHARE-BASED COMPENSATION

We account for share-based compensation in accordance with ASC 718-20, Awards Classified as Equity. We apply ASC 718-20 in accounting for stock-based awards issued to employees under the recognition of compensation expense related to the fair value of employee share-based awards, including stock options and restricted stock. Determining the fair value of options at the grant date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise, the associated volatility and the expected dividends. Judgment is required in estimating the amount of share-based awards expected to be forfeited prior to vesting. If actual forfeitures differ significantly from these estimates, share-based compensation expense could be materially impacted.

We account for options and warrants issued to non-employees in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. We treat options and warrants issued to non-employees the same as those issued to employees with the exception of determination of the measurement date. The measurement date is the earlier of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty's performance is complete. Options and warrants granted to consultants are valued at their respective measurement dates, and recognized as expense based on the portion of the total consulting services provided during the applicable period. As further consulting services are provided in future periods, we will revalue the associated options and warrants and recognize additional expense based on their then current values.

We estimate the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. We determine assumptions relative to volatility and anticipated forfeitures at the time of grant. We valued grants of warrants during the years ended December 31, 2015 and 2014 using the following assumptions.

  December 31, 2015   December 31, 2014
       
Expected life in years 0 - 5 Years    0 - 5 Years 
Stock price volatility 431.32% - 435.13%   144.64% - 171.22%
Risk free interest rate 0.14% - 1.10%   0.10% - 1.64%
Expected dividends None   None
Forfeiture rate 0%   0%

 

We base the assumptions used in the Black-Scholes models upon the following data: (1) our use of the contractual life of the underlying non-employee warrants as the expected life; the expected life of the employee options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience; (2) in the absence of an extensive public market for our shares, the expected stock price volatility of the underlying shares over the expected term of the option or warrant was taken at approximately the mid-point of the range for similar companies at the various grant dates; (3) we base the risk free interest rate on published U.S. Treasury Department interest rates for the expected terms of the underlying options or warrants; (4) we base expected dividends on historical dividend data and expected future dividend activity; and (5) we base the expected forfeiture rate on historical forfeiture activity and assumptions regarding future forfeitures based on the composition of current grantees.

(l) NET INCOME/LOSS PER SHARE

We apply the guidance of ASC 260-10, Earnings Per Share for calculating the basic and diluted loss per share. We calculate basic loss per share by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding. We compute diluted loss per share similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional shares were dilutive. We exclude common equivalent shares from the computation of net loss per share if their effect is anti-dilutive.

We excluded all potential common shares from the computation of diluted net loss per common share for the years ended December 31, 2015 and 2014 because they were anti-dilutive due to our net loss position. Stock options, warrants and convertible notes excluded from the computation totaled 20,272,887 and 38,393,068 shares as of December 31, 2015 and 2014, respectively.

(m) RESEARCH, DEVELOPMENT AND ENGINEERING

We expense research, development and engineering costs as incurred and presented as technology development in the accompanying consolidated statements of operations. We capitalize and amortize costs for software development relating to our website incurred subsequent to establishing technological feasibility, in the form of a working model, over their estimated useful lives.

(n) RECENT ACCOUNTING PRONOUNCEMENTS

In May 2014, FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. The standard will eliminate the transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle-based approach for determining revenue recognition. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2017. Early adoption is not permitted. The revenue recognition standard is required to be applied retrospectively, including any combination of practical expedients as allowed in the standard. We are evaluating the impact, if any, of the adoption of ASU 2014-09 to our financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. ASU 2014-15 changes to the disclosure of uncertainties about an entity's ability to continue as a going concern. These changes require an entity's management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that financial statements are issued. Substantial doubt is defined as an indication that it is probable that an entity will be unable to meet its obligations as they become due within one year after the date that financial statements are issued. If management has concluded that substantial doubt exists, then the following disclosures should be made in the financial statements: (i) principal conditions or events that raised the substantial doubt, (ii) management's evaluation of the significance of those conditions or events in relation to the entity's ability to meet its obligations, (iii) management's plans that alleviated the initial substantial doubt or, if substantial doubt was not alleviated, management's plans that are intended to at least mitigate the conditions or events that raise substantial doubt, and (iv) if the latter in (iii) is disclosed, an explicit statement that there is substantial doubt about the entity's ability to continue as a going concern. These changes become effective for the Company for the 2017 annual period. Management is evaluating the impact of the adoption of these changes will have on the consolidated financial statements. Subsequent to adoption, this guidance will need to be applied by management at the end of each annual period and interim period therein to determine what, if any, impact there will be on the consolidated financial statements in a given reporting period.

In April 2015, the FASB issued ASU No 2015-3, Simplifying the Presentation of Debt Issuance Costs. This update changes the presentation of debt issuance costs in the balance sheet. ASU 2015-03 requires debt issuance costs related to a recognized debt obligation to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability rather than being presented as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. In August 2015, the FASB issued ASU 2015-15, "Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements". This ASU clarified guidance in ASC 2015-03 stating that the SEC staff would not object to a company presenting debt issuance costs related to a line-of-credit arrangement on the balance sheet as a deferred asset, regardless of whether there were any outstanding borrowings at period-end. This update is effective for annual and interim periods beginning after December 15, 2015, which will require us to adopt these provisions in the first quarter of 2016. We do not expect this guidance to have a material impact to our financial position or results of operations.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes existing guidance on accounting for leases in "Leases (Topic 840)" and generally requires all leases to be recognized in the consolidated balance sheet. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018; early adoption is permitted. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. This ASU affects entities that issue share-based payment awards to their employees. The ASU is designed to simplify several aspects of accounting for share-based payment award transactions which include - the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. ASU 2016-09 will become effective for the Company in the first quarter of fiscal 2018. Early adoption is permitted in any interim or annual period. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

 

 

 

XML 21 R9.htm IDEA: XBRL DOCUMENT v3.3.1.900
RELATED PARTY NOTE PAYABLE - Note 3
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
RELATED PARTY NOTE PAYABLE - Note 3

NOTE 3 - RELATED PARTY NOTE PAYABLE

On May 20, 2015, we and The RHL Group entered into a Tenth Amended and Restated Promissory Note (the "Amended Note"), effective as of May 20, 2015. The Tenth Note amends and restates that certain Ninth Amended Note entered into between the foregoing parties, effective July 10, 2014 (the "Existing Note" and together with its predecessor notes and the Amended Note, the "Credit Facility"), by: (i) extending the maturity date to April 29, 2016. In connection with the Tenth Amended Note, we issued The RHL Group warrants to purchase 352,928 shares of our common stock at $0.015 per share on May 20, 2015. Except as set forth above, the Amended Note does not materially alter the terms of the Existing Note.

Historically, the predecessor notes have increased over time the maximum amount of credit available under the Credit Facility from $100,000 to $1,000,000 to $3,000,000 to $4,500,000. The maximum amount of the Amended Note is $4,500,000. The Amended Note continues to bear interest at the lesser of 10% or the highest rate then permitted by law, and is secured (similar to the Existing Note) by a Security Agreement, which has been in effect since July 31, 2007, as renewed and amended to date (the "Security Agreement").

The Tenth Amended Note had a current balance of $1.95 million at December 31, 2015. The components of the Tenth Amended Note and the related balance sheet presentation as of December 31, 2015 are as follows: $1.87 million, which is included in the line of credit, related party; and $0.07 million for other obligations due to The RHL Group, which is included in related party payables.

Total interest expense on the Line of Credit for the twelve months ended December 31, 2015 and 2014 amounted to $142,337 and $134,523, respectively. The unpaid interest balances as of December 31, 2015 and December 31, 2014 were $62,492 and $30,160, respectively.

In conjunction with the Tenth Amended Note, we were required to maintain certain financial covenants, including the requirement that we have at least $200,000 of cash in our bank accounts or such other amount as necessary to maintain operations through the subsequent thirty (30) days and timely pay any obligations due respecting payroll and all associated payroll taxes on and after June 30, 2015. Since we did not meet these covenants as of December 31, 2015, we received a waiver from The RHL Group until April 25, 2016.

 

 

 

 

 

XML 22 R10.htm IDEA: XBRL DOCUMENT v3.3.1.900
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Note 4
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Note 4

4. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets include the following:

      December 31,     December 31,
      2015     2014
Prepaid consulting fees from issuance of common stock   $   $ 125,625 
Prepaid insurance         5,984 
Prepaid trade shows         30,575 
             
Total prepaid expenses and other current assets   $   $ 162,184 

 

 

 

 

XML 23 R11.htm IDEA: XBRL DOCUMENT v3.3.1.900
PROPERTY AND EQUIPMENT - Note 5
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
PROPERTY AND EQUIPMENT - Note 5

5. PROPERTY AND EQUIPMENT

Property and equipment, at year end consisted of the following:

      December 31,     December 31,
      2015     2014
Furniture and fixtures   $ 5,295    $ 4,041 
Computers and related equipment     137,465      137,465 
      142,760      141,506 
             
Less: Accumulated depreciation and amortization     (123,689)     (109,389)
             
    $ 19,071    $ 32,118 

 

Depreciation expense for the years ended December 31, 2015 and 2014 amounted to $14,299 and $13,677, respectively, which is recorded in general and administrative expenses in the Consolidated Statement of Operations.

 

 

 

 

XML 24 R12.htm IDEA: XBRL DOCUMENT v3.3.1.900
INTANGIBLE ASSETS - Note 6
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
INTANGIBLE ASSETS - Note 6

6. INTANGIBLE ASSETS

Intangible assets as of December 31, 2015 and 2014 consisted primarily of pattents, which are amortizable assets.

Amortization expense for the years ended December 31, 2015 and 2014 amounted to $253,078 and $289,085, respectively. Estimated amortization expense for each of the next five succeeding years is expected to be as follows:

Year Ending
December 31,
     
2016   $ 109,528 
2017     28,566 
2018     26,703 
2019     24,786 
2020     24,787 
Total   $ 214,370 

 

During the year ended December 31, 2015, we performed an analysis of our intangible assets under FASB ASC 350-30 using discounted cash flows and we recorded a write down of our patents totaling $1,040,912. The charge is recorded as part of general & administrative expenses in the attached statement of operations.

 

 

XML 25 R13.htm IDEA: XBRL DOCUMENT v3.3.1.900
ACCOUNTS PAYABLE AND ACCRUED EXPENSES - Note 7
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
ACCOUNTS PAYABLE AND ACCRUED EXPENSES - Note 7

7. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

      December 31,     December 31,
      2015     2014
Legal and accounting fees   $ 2,721,983    $ 3,524,788 
Accounts payable and accruals from Favrille Merger     309,791      309,791 
Trade payables and consulting services     1,552,741      732,234 
Accrued vacation     145,861      102,147 
             
Total accounts payable and accrued expenses   $ 4,420,585    $ 4,668,960 

 

 

 

 

XML 26 R14.htm IDEA: XBRL DOCUMENT v3.3.1.900
INCOME TAXES - Note 8
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
INCOME TAXES - Note 8

NOTE 8 - INCOME TAXES

The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes were as follows:

    Years Ended December 31,
    2015   2014
Federal statutory rate   -34.00%   -34.00%
State tax, net of federal benefit   -5.65%   -5.65%
Non-deductible items   0.84%   0.84%
Valuation allowance   38.81%   38.81%
Effective income tax rate   0.00%   0.00%

 

Significant components of deferred tax assets and (liabilities) are as follows:

      December 31,
      2015     2014
Net operating loss carryforwards   $ 20,124,072    $ 19,345,922 
Depreciation and amortization     435,026      (55,855)
Share-based compensation     2,494,629      2,494,629 
R&D tax credit     2,455,964      2,455,964 
State tax and other     (1,597,575)     (1,509,212)
Deferred tax assets, net     23,912,116      22,731,448 
Less: valuation allowance     (23,912,116)     (22,731,448)
    $   $

 

At December 31, 2015 and 2014, the Company had Federal and State net operating loss carry forwards available to offset future taxable income of $47,187,635 and $46,156,969. These carry forwards will begin to expire in the years ending December 31, 2027 and December 31, 2016, respectively. These net operating losses may be subject to various limitations on utilization based on ownership changes under Internal Revenue Code Section 382 as a result of the Merger, and the Company is in the process of evaluating the impact of this before any losses are used to offset future taxable income. The Company's net operating loss carry forwards are subject to examination until such time as the NOLs are used and the tax year is closed.

The Company periodically evaluates the likelihood of the realization of deferred tax assets, and adjusts the carrying amount of the deferred tax assets by a valuation allowance to the extent the future realization of the deferred tax assets is not judged to be more likely than not. The Company considers many factors when assessing the likelihood of future realization of our deferred tax assets, including recent cumulative earnings experience by taxing jurisdiction, expectations of future taxable income or loss, the carry-forward periods available to us for tax reporting purposes, and other relevant factors.

At December 31, 2015, based on available evidence, including cumulative losses in recent years and expectations of future taxable income, the Company determined that it was more likely than not that its deferred tax assets would not be realized. The Company has recorded a 100% valuation allowance.

The Company performed an analysis of its tax filings and determined that there were no positions taken that it considered uncertain. Therefore, there were no unrecognized tax benefits as of December 31, 2015 and 2014.

Future changes in the unrecognized tax benefit are not expected to have an impact on the effective tax rate due to the existence of the valuation allowance. The Company estimates that the unrecognized tax benefit will not change within the next twelve months. The Company will continue to classify income tax penalties and interest, if any, as part of interest and other expenses in its consolidated statements of operations. The Company incurred $0 of interest and penalties during the years ended December 31, 2015 and 2014.

The Company files income tax returns in the United States ("Federal") and California ("State") jurisdictions. The Company is subject to Federal and State income tax examinations by the tax authorities.

As the Company has significant net operating loss carryforwards, even if certain of the Company's tax positions were disallowed, it is not foreseen that the Company would have to pay any taxes in the near future. Consequently, the Company does not calculate the impact of interest or penalties on amounts that might be disallowed. The Company's net operating loss carryforwards are subject to examination until they are fully utilized and such tax years are closed.

 

 

 

 

XML 27 R15.htm IDEA: XBRL DOCUMENT v3.3.1.900
COMMITMENTS AND CONTINGENCIES - Note 9
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
COMMITMENTS AND CONTINGENCIES - Note 9

NOTE 9 - COMMITMENTS AND CONTINGENCIES

Leases

Effective September 1, 2013, we renewed our lease for office space in Los Angeles, California with a term through August 31, 2018. The lease currently requires a monthly payment of $8,250. Total rent expense for the years ended December 31, 2015 and 2014 were $113,299 and $150,720 respectively. Future minimum lease payments as of December 31, 2015, under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) are as follows:

Year Ending     Operating     Capital
December 31,     Leases     Leases
             
     2016   $ 187,550    $ 13,221 
     2017     206,305     
     2018     146,410     
Total minimum lease payments   $ 540,265    $ 13,221 

 

Guarantee provided by The RHL Group

On May 6, 2011, the RHL Group agreed to guarantee up to $250,000 in payments to a vendor for future services to be rendered. In consideration of this guarantee, the RHL Group received (i) a warrant to purchase 625,000 shares of our common stock, at an exercise price of $0.046 per share, which was the closing price of our common stock on the date of the transaction, and (ii) 125,000 shares of our common stock priced as of the same date. In the event that the RHL Group has to perform on this guarantee, interest on any outstanding balance paid to the vendor by the RHL Group will be added to the balance of the Tenth Amended Note or any subsequent renewals. Additionally, any balances due to this vendor at any given time will reduce the amount available under the Tenth Amended Note or any subsequent renewals. The warrants and shares were issued on November 11, 2011 to the RHL Group.

Employment Agreements

The Company has employment agreements with its Chairman, President and Chief Executive Officer, Robert H. Lorsch, its Vice President of Finance and Chief Financial Officer, Ingrid Safranek. Under each employment agreement, the executive officers receive a base salary, subject to annual increases as determined by the board of directors, certain benefits as set forth in the employment agreements, and an annual bonus at the discretion of the board of directors. Ms. Safranek's employment agreement expired at the end of 2015.

On January 29, 2009 we entered into an employment agreement with our Chairman, President and Chief Executive Officer, Robert H. Lorsch, with an initial term ending on December 31, 2011, subject to successive automatic extension unless we or Mr. Lorsch elect not to extend. Under the terms of his agreement, Mr. Lorsch shall serve as both our President and Chief Executive Officer and President and Chief Executive Officer of our wholly-owned subsidiary, MMR. The agreement provides for a base salary of $15,000 per month, subject to an upward increase and with an annual bonus and stock option grants in such amounts, if any, as the Board of Directors may determine in its sole discretion. Mr. Lorsch receives a monthly auto allowance, reimbursement of certain life insurance premiums, and reimbursement for certain other insurance coverage, and is entitled to participate in benefits generally made to our senior executives.

On December 28, 2011, the Board of Directors agreed to renew Mr. Lorsch's employment agreement effective January 1, 2012 for an additional three year term ending on December 31, 2014. The term of the Renewal expired on December 31, 2014, but may be extended automatically for successive additional one-year periods at the expiration of the then-current term unless written notice of non-extension is provided to Mr. Lorsch with at least 90 days prior notice to the expiration of such term. A notice of non-extension was not provided to Mr. Lorsch pursuant to the terms of his employment agreement and as such the agreement automatically renewed through the end of 2016. In addition, on December 31, 2013, the Board of Directors agreed to extend Mr. Lorsch's employment term to December 31, 2015 under the same terms. Mr. Lorsch's current annual base salary will remain unchanged, except for the minimum 5% annual increase as called under the agreement, with the understanding that, as in the past, portions of the payments could be deferred into future periods. Mr. Lorsch may terminate the agreement upon 30 days written notice without reason or for good reason (as defined in the agreements) if we fail to cure acts or omissions constituting good reason within 30 days. If Mr. Lorsch's employment is terminated by us for cause or voluntarily by Mr. Lorsch without good reason, he will not be entitled to receive any severance payments or benefits under the employment agreement. If Mr. Lorsch's employment is terminated by us without cause or voluntarily by Mr. Lorsch for good reason, Mr. Lorsch will be entitled to one year of salary at his then current rate of pay, including all monthly benefits, and the pro rata portion of the annual bonus otherwise due Mr. Lorsch. In the event of his disability, Mr. Lorsch would be entitled to receive compensation equal to 60% of his base salary as then in effect. Mr. Lorsch's employment agreement includes provisions that prohibit Mr. Lorsch from disclosing our confidential information and trade secrets and competing with us during the term of his employment agreement or soliciting our employees for 12 months following termination of employment.

We also have entered into a consulting agreement with The RHL Group, Inc., which is wholly-owned by Mr. Lorsch that provides for a monthly fee of $25,000 plus reimbursement of expenses including medical insurance. The RHL Group provides consulting, operational and technical services to the Company, which we refer to as the RHL Services. As part of the RHL Services, The RHL Group provides the Company with unrestricted access to its internal business and relationship contact database of more than 10,000 persons and entities, which includes clients of the RHL Group and other individuals which may hold value to the Company. The RHL Group also provides infrastructure support to the Company, including allowing the Company unlimited access to its facilities, equipment, and data, information management and server systems. The RHL Group has also consented to allow the Company to utilize the full-time services of Mr. Lorsch as the Company's President, Chairman and Chief Executive Officer, which requires substantial time and energy away from his required duties as The RHL Group's Chairman and Chief Executive Officer. In addition, The RHL Group has made its President, Kira Reed, available as the Company's spokesperson. Ms. Reed, who is Mr. Lorsch's spouse, also manages the Company's social networking activities.

On January 26, 2010, we entered into an employment agreement with Ingrid Safranek as our Vice President, Chief Financial Officer and Secretary. Under the employment agreement, Ms. Safranek receives a base salary, subject to annual increases as determined by the Board of Directors, certain benefits as set forth in the employment agreement, and an annual bonus at the discretion of the board of directors. Ms. Safranek's employment agreement was effective until June 15, 2010, but was extended until June 15, 2011. On December 10, 2010, the Board approved Ms. Safranek's employment agreement to be amended to extend the term for an additional one year commencing on January 1, 2011. On December 28, 2011, the Board extended the current employment agreement for an additional two years term and approved an increase in her base salary with the understanding that, from time to time, it could be necessary to defer certain payments or benefits into future periods. Furthermore, on December 31, 2013, the Board elected to renew Ms. Safranek's agreement for an additional two year term under the same terms as before.

The current term of Ms. Safranek's employment agreement was effective until December 31, 2015 and automatically renewed for successive 12 month periods unless terminated at least 30 days prior to the end of the term. On July 27, 2015, Ms. Safranek submitted her resignation to the Board of Directors. The resignation became effective immediately. In recognition of her six years of service to our company, the Board of Directors determined by unanimous written consent on July 27, 2015 that, notwithstanding Ms. .Safranek's voluntary resignation, the Company will pay her the remaining balance due her through December 31, 2015 pursuant to the terms of her existing employment agreement which is on file with the SEC. Ms. Safranek's employment agreement includes provisions that prohibit her from disclosing our confidential information and trade secrets and competing with us during the term of his employment agreement or soliciting our employees for 12 months following termination of employment.

 

Legal Matters and Contingencies - Note 9

Litigation Matters

From time to time, we are involved in various legal proceedings generally incidental to our business. While the result of any litigation contains an element of uncertainty, our management presently believes that the outcome of any known, pending or threatened legal proceeding or claim, individually or combined, will not have a material adverse effect on our financial statements.

On December 9, 2011, MyMedicalRecords, Inc. entered into a Non-Exclusive Settlement and Patent License Agreement with Surgery Center Management LLC ("SCM"). In consideration for the rights granted under that Agreement and in consideration of a settlement and release agreement, SCM contracted to pay MyMedicalRecords, Inc. an initial payment of $5 million payable on December 23, 2011, and additional payments of $5 million per year for five consecutive years. After unsuccessful attempts to collect the past due amount of $5 million, on January 19, 2012, MyMedicalRecords, Inc. filed a lawsuit in the Superior Court of the State of California for the County of Los Angeles for breach of contract. At this time, MMR believes that SCM owes the Company $30 million plus interest, and on August 4, 2015, the Court granted MMR leave to amend its complaint to seek damages of $30 million (plus interest) from SCM since the end of 2011, and SCM filed an answer to MMR's amended complaint. On February 13, 2014, SCM filed a cross-complaint alleging claims for breach of that contract, among other things. On July 10, 2014, the court granted SCM's motion for summary adjudication on the claim for breach of contract in the complaint and its counterclaim for declaratory relief. On July 30, 2014, SCM filed its second amended cross-complaint, alleging substantially the same claims against the same parties. On December 5, 2014, the Court of Appeal issued an Alternative Writ of Mandate, finding the trial court erred in granting SCM's motion for summary adjudication. Pursuant to the Court of Appeal's Alternative Writ, on January 7, 2015, the trial court vacated its order granting SCM's motion for summary adjudication. On April 24, 2015, the trial court held a new hearing on that motion, and it entered an order denying SCM's motion in its entirety. The case is scheduled for trial on November 1, 2016.  MyMedicalRecords, Inc. will continue to pursue its claim and defenses, but the Company cannot predict the chances of either a favorable or unfavorable outcome, nor does the Company have sufficient information regarding its ability to collect any judgment MyMedicalRecords, Inc. may obtain.

On April 10, 2013, MMR filed a complaint for patent infringement against Quest Diagnostics Inc. ("Quest") in the United States District Court for the Central District of California, alleging that Quest Diagnostics Inc. is infringing U.S. Patent No. 8,301,466. On October 11, 2013, MMR filed an unopposed motion to add a claim of infringement of U.S. Patent 8,498,883 to its complaint against Quest, which was granted on October 29, 2013. On December 22 and 23, 2014, the Court entered orders finding that the eight claims asserted (of the 42 total claims present) under the two asserted MMR patents were invalid. On January 9, 2015, as previously reported by the Company, the case was closed. Defendants filed a motion with the District Court to recover a portion of their fees incurred in defense of the matter, which has been denied by the Court in favor of MMR.

On February 11, 2013, MMR filed a complaint for patent infringement against WebMD Health Corp. and its wholly owned subsidiary WebMD Health Services Group, Inc. (collectively, "WebMD"), titled MyMedicalRecords, Inc. v. WebMD Health Corp et al., United States District Court, Central District of California. That complaint alleged that WebMD is infringing MMR's Personal Health Records patent U.S. Patent No. 8,301,466. On October 2, 2013, MMR filed a new complaint against WebMD in the United States District Court for the Central District of California, alleging infringement of U.S. Patent Nos. 8,301,466 and 8,498,883. On December 22 and 23, 2014, the Court entered orders finding that the eight claims asserted (of the 42 total claims present) under the two asserted MMR patents were invalid. On January 9, 2015, as previously reported by the Company, the case was closed. Defendants filed a motion with the District Court to recover a portion of their fees incurred in defense of the matter, which has been denied by the Court in favor of MMR.

On May 17, 2013, MMR filed a complaint for patent infringement against Jardogs, LLC (the "Jardogs Complaint") in the United States District Court for the Central District of California, alleging that Jardogs, LLC infringes U.S. Patent No. 8,301,466. On September 23, 2013, MMR filed a separate complaint for patent infringement against Allscripts Healthcare Solutions Inc. ("Allscripts") titled MyMedicalRecords, Inc. v. Allscripts Healthcare Solutions Inc., United States District Court, Central District of California (the "Separate Allscripts Complaint"). The Separate Allscripts Complaint alleged that Allscripts is infringing U.S. Patent Nos. 8,301,466 and 8,498,883. On October 4, 2013, MMR filed a motion to amend the Jardogs Complaint to add Allscripts as a party defendant and to allege that Allscripts is infringing U.S. Patent Nos. 8,301,466 and 8,498,883. The Court granted that motion on November 1, 2013. Thereafter, MMR dismissed the Separate Allscripts Complaint. On December 22 and 23, 2014, the Court entered orders finding that the eight claims asserted (of the 42 total claims present) under the two asserted MMR patents were invalid. On January 9, 2015, as previously reported by the Company, the case was closed. Defendants filed a motion with the District Court to recover a portion of their fees incurred in defense of the matter, which has been denied by the Court in favor of MMR.

Allscripts also filed a Covered Business Method ("CBM") petition on November 3, 2014, before the Patent Trial and Appeal Board ("PTAB') alleging that claims 8-12 of U.S. Patent No. 8,301,466 are invalid. MMR filed a preliminary response on February 20, 2015. On May 5th the PTAB decided to implement the CBM. On January 15, 2015, MMR filed a notice of appeal in the Federal Circuit. Subsequently, MMR filed for voluntary dismissal of the appeal which was granted on July 7, 2015. On July 30, 2015, MMR informed the PTAB of the voluntary dismissal of the appeal, and on August 26, 2015, the PTAB entered a Final Written Decision consistent with the Court's prior rulings.

The decisions handed down in the cases of Quest Diagnostics, WebMD and Jardogs LLC and Allscripts above did not affect MMR's portfolio of other patents, including U.S. Patent Nos.: 8,117,045 ("Method and System for Providing Online Medical Records"); 8,117,646 ("Method and System for Providing Online Records"); 8,121,855 ("Method and System for Providing Online Medical Records"); 8,321,240 ("Method and System for Providing Online Medical Records"); 8,352,287 ("Method for Proving a User with a Service for Accessing and Collecting Personal Health Records"); 8,352,288 ("Method for Providing a User with a Web-Based Service for Accessing and Collecting Records"); 8,626,532 ("Method for Providing a User with a Web-Based Service for Accessing and Collecting Health Records"); 8,645,161 ("Method and System for Providing Online Records"); 8,725,537 ("Method and System for Providing Online Records"); 8,768,725 ("Method and System for Providing Online Medical Records"); 8,775,212 ("Electronic Health Records in Clinical Trials"); as well as 12 foreign patents including two in Australia, three in Mexico, three in South Korea, with others in New Zealand, Singapore, Japan and Canada.

On April 2, 2015, the Company and Stradling Yocca Carlson & Rauth, P.C. ("SYCR"), were notified of the determination of an arbitrator in regards to disputes over amounts of monies due SYCR regarding prior services rendered. SYCR and the Company has previously agreed to a non-binding arbitration of the matter. The Company received an award in favor of SYCR in the amount of $285,000 which the Company disputes, notwithstanding, that it represents a reduction of SYCR's original $571,000 claim or $286,000 in favor of the Company. Since the arbitration award is non-binding the Company has filed an appeal of the remaining award. The Company cannot predict the chances of either a favorable or unfavorable outcome of the appeal.

On August 14, 2013, Gemini Master Fund, Ltd. purchased a convertible note from the Company. On or about February 23, 2015, Gemini filed an action against the Company for breach of contract seeking damages allegedly owed pursuant to the convertible note in the amount of $210,000 in the United States District Court for the Southern District of New York. The case has since been settled and dismissed.

 

 

 

XML 28 R16.htm IDEA: XBRL DOCUMENT v3.3.1.900
STOCKHOLDERS' DEFICIT - Note 10
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
STOCKHOLDERS' DEFICIT - Note 10

NOTE 10 - STOCKHOLDERS' DEFICIT

Preferred Stock

The Company has 5,000,000 shares of preferred stock authorized. As of December 31, 2015, and 2014, there were no shares of preferred stock issued and outstanding.

Common Stock

As of December 31, 2015, we are authorized to issue 1,250,000,000 shares of common stock.

On May 24, 2012, the Company filed a Form S-1 related to the offer and resale of up to 20,000,000 shares of our common stock by Granite. Granite agreed to purchase all 20,000,000 shares pursuant to the Investment Agreement, and an additional 200,000 shares were issued to Granite as partial consideration for the preparation of the documents for its investment in the Company. Subject to the terms and conditions of the Investment Agreement, the Company has the right to put up to $75 million in shares of our common stock to Granite. As of December 31, 2015, the amount available under the equity line facility was $0.

As of December 31, 2015, the total shares of our common stock issued and outstanding amounted to 211,851,177.

On February 2, 2016, the Company filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation (the "Certificate of Amendment") with the Secretary of State of the State of Delaware effecting a five for one reverse stock split of the Company's common stock (the "Reverse Stock Split") which became effective in the marketplace on February 8, 2016. The number of shares and per share amounts have been retroactively restated to reflect this reverse stock split.

 

 

 

 

XML 29 R17.htm IDEA: XBRL DOCUMENT v3.3.1.900
EQUITY ITRANSACTIONS - Note 11
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
EQUITY TRANSACTIONS - Note 11

NOTE 11 - EQUITY TRANSACTIONS

Stock Option Activity

On January 21, 2010, our Board of Directors approved an increase to the number of shares authorized for issuance under our 2001 Equity Incentive Plan (the "Plan") from 12,000,000 to 27,000,000 shares as we determined that the number of shares remaining under the Plan was inadequate to retain our key directors, executives and managers. Our stockholders approved the increase to the Plan on June 15, 2010.The Plan expired on June 5, 2011 and no options were issued under the Plan since that date. On September 1, 2011, our Board of Directors approved the adoption of a new plan to replace the Plan under the same general terms. On June 20, 2012, the shareholder voted and approved the 2011 Equity Incentive Plan at the 2012 Annual Shareholder Meeting.

As of December 31, 2015, total unrecognized stock-based compensation expense related to non-vested stock options was $9,106, which is expected to be recognized during 2016.

A summary of option activity for the years ended December 31, 2014 and 2015 is presented below. Options granted by MMR Inc. prior to the date of the Merger of January 27, 2009 have been retroactively restated to reflect the conversion ratio of MMR Inc. to MMR shares.

              Weighted-Average      
          Weighted-   Remaining      
          Average   Contractual     Aggregate
          Exercise   Life     Intrinsic
    Options     Price   (Years)     Value
Outstanding at December 31, 2014   7,508,345    $ 0.50    5.08    $ -  
Granted   -       -            
Exercised   -       -            
Cancelled   (20,000)   $ 0.40           
Outstanding at December 31, 2015   7,488,345    $ 0.50    3.62    $ -  
                     
Vested and expected to vest                    
     at December 31, 2015   7,488,345    $ 0.50    3.62    $ -  
                     
Exercisable at December 31, 2015   7,368,345    $ 0.50    3.60    $ -  

 

The aggregate intrinsic value in the table above is before applicable income taxes and is calculated based on the difference between the exercise price of the options and the quoted price of the common stock as of the reporting date. Total stock option expenses recorded during the years ended December 31, 2015 and 2014 were $22,426 and $157,283, respectively, and is reflected in operating expenses in the accompanying consolidated statements of operations. During the year ended December 31, 2014, the Company modified the terms of certain stock options and warrants held by the Company's CEO and its board of directors to extend the expiration date between 3 and 12 months. The Company recognized $185,476 of incremental cost associated with this modification, which is recorded as a part of stock-based compensation.

The following table summarizes information about stock options outstanding and exercisable at December 31, 2015.

      Options Outstanding   Options Exercisable
            Weighted     Weighted       Weighted     Weighted
            Average     Average       Average     Average
  Exercise   Number     Remaining     Exercise   Number   Remaining     Exercise
  Price   of Shares     Life (Years)     Price   of Shares   Life (Years)     Price
                                 
$ 0.25 - 0.45   2,560,000      5.81   $ 0.35    2,420,000    5.81   $ 0.30 
$ 0.50 - 0.75   4,602,292      2.44   $ 0.55    4,602,292    2.44   $ 0.55 
$ > 0.75   326,053      2.64   $ 0.90    326,053    2.64   $ 0.90 
      7,488,345                7,348,345           

 

Warrants

On March 4, 2014, we granted an unrelated third party a warrant to purchase 500,000 shares of our common stock. This warrant vests immediately and has an exercise price of $0.06 per share, and an expiration date of February 28, 2015.

On March 4, 2014, we granted an unrelated third party a warrant to purchase 500,000 shares of our common stock. This warrant vests upon three successful Hospital Sign up of MMR Patient View Portal and has an exercise price of $0.10 per share, and an expiration date of February 28, 2015.

On March 4, 2014, we granted an unrelated third party a warrant to purchase 250,000 shares of our common stock. This warrant vests in six months and has an exercise price of $0.06 per share, and an expiration date of March 4, 2016.

On March 27, 2014, we granted an unrelated third party a warrant to purchase 250,000 shares of our common stock. This warrant vests in one year and has an exercise price of $0.06 per share, and an expiration date of March 27, 2019.

On April 8, 2014, we granted and unrelated third-party a warrant to acquire 250,000 shares of common stock in consideration for services. The warrant vests equally over three years, has an exercise price of $0.06 per share, and an expiration date of April 8, 2019.

On April 30, 2014, we granted and unrelated third-party a warrant to acquire 250,000 shares of common stock in consideration for services. The warrant vests equally over three years, has an exercise price of $0.06 per share, and an expiration date of April 30, 2019.

On May 29, 2014, we granted an unrelated third party a warrant to purchase 500,000 shares of our common stock as part of a warrant exchange program. This warrant vests immediately and has an exercise price of $0.024 per share, and an expiration date of May 29, 2015.

On May 29, 2014, we granted an unrelated third party a warrant to purchase 500,000 shares of our common stock in consideration for services. This warrant vests in one year and has an exercise price of $0.06 per share, and an expiration date of May 29, 2015.

On July 10, 2014, we granted The RHL Group a warrant to purchase 2,781,561 shares of our common stock in connection with the renewal of the line of credit through the Ninth Amended Note. This warrant has an exercise price of $0.035 per share, with an expiration date of June 4, 2019, and vests at commencement.

On May 19, 2015, we granted the RHL Group, Inc. a warrant to purchase 352,928 shares of common stock in connection with the renewal of the line of credit through the Tenth Amended Note. This warrant has an exercise price of $0.015 per share, with an expiration date of May 19, 2020, and vests at commencement.

A summary of the activity of the Company's warrants for the year ended December 31, 2015 is presented below.

        Weighted Avg
  Shares     Exercise Price
Outstanding at December 31, 2014 14,005,682    $ 0.30 
Granted 352,928      0.02 
Exercised     0.00 
Cancelled (2,930,000)     0.36 
Outstanding at December 31, 2015 11,428,610    $ 0.30 
         
Exercisable at December 31, 2015 10,470,960    $ 0.31 

 

The following summarizes the total warrants outstanding and exercisable as of December 31, 2015.

    Warrants Outstanding   Warrants Exercisable
    Warrants   Weighted Avg     Weighted Avg   Warrants   Weighted Avg     Weighted Avg
Ranges   Outstanding   Remaining Life     Exercise Price   Exercisable   Remaining Life     Exercise Price
                             
$0.02 - $0.30   8,182,798   1.92   $ 0.15   7,625,147   1.92   $ 0.20
$0.30 - $0.50   805,000   0.57     0.50   605,000   0.25     0.45
Greater $0.50   2,440,812   0.95     0.75   2,240,813   1.01     0.75
                             
    11,428,610             10,470,960          

 

Shares Issued for Services or Reduction to Liabilities

During the year ended December 31, 2015, we issued 25,557,562 shares of common stock with a value of $399,944 and charged to the appropriate accounts for the following reasons:

    Year Ended December 31, 2015
           
Purpose   Shares     Value
           
Services provided   400,000    $ 38,200 
Reduction of payables   25,157,562    $ 361,744 
Totals    25,557,562    $ 399,944 

 

The 25,557,562 shares were not contractually restricted, however as they have not been registered under the Act, they are restricted from sale until they are registered under the Securities Act of 1933, as amended (the "Act"), or qualify for resale under the rules promulgated under the Act. All such shares were issued at the trading closing price on the date of issuance and the corresponding values were calculated therefrom.

Restricted Stock Program

Under the Restricted Stock Program, a restricted stock award is an offer by the Company to sell to an eligible person shares that are subject to restrictions relating to the sale or transfer of the shares. A committee appointed by the Board to administer the program or the Board itself shall determine to whom an offer will be made, the number of shares the person may purchase, the price to be paid and the restriction to which the shares shall be subject. The offer must be accepted by the eligible person within thirty days from the date of the offer evidenced by the Restricted Stock Purchase Agreement. The purchase price of shares shall not be less than 85% of the fair market value of such shares on the issue date, with the provision that the purchase price for a 10% stockholder shall not be less than 110% of such fair market value. Shares are either fully and immediately vested upon issuance, or may vest in installments upon attainment of specified performance objectives.

During the year ended December 31, 2015 and 2014, the Company issued 25,557,562 and 3,708,506, respectively, shares of common stock in consideration for goods and services from both employees and non-employees valued at $399,944 and $604,395, respectively.

Stock Bonus Program

Under the Stock Bonus Program, shares are issued as a bonus for services rendered pursuant to the Stock Bonus Agreement. Stock bonuses may be awarded upon satisfaction of specified performance goals pursuant to the Performance Stock Bonus Agreement. Total stock bonus expenses recorded during the years ended December 31, 2015 and 2014 was approximately $0 and $308,375, respectively, and is reflected in operating expenses in the accompanying consolidated statements of operations.

On December 31, 2013, we issued a total of 7,000,000 shares of our common stock at $0.05 per share as an incentive to our board members and members of our management team under the Stock Bonus Program. All shares vested on January 1, 2015 were forfeitable before such time.

 

 

XML 30 R18.htm IDEA: XBRL DOCUMENT v3.3.1.900
NOTES PAYABLE - Note 12
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
NOTES PAYABLE - Note 12

NOTE 12 - NOTES PAYABLE

The Notes payable consisted of the following:

      December 31,     December 31,
      2015     2014
             
Promissory notes payable due to the former officers of MMRGlobal as part of severance packages, due in full on August 31, 2009 with no stated interest   $ 76,783    $ 76,783 
             
Promissory notes payable due to the former officers of MMRGlobal pursuant to the
Resignation and Post-Merger Employment Arrangement, due in full on August 31, 2009 with no stated interest
    25,444      25,444 
             
Promissory notes payable due to vendors relating to settlement of certain outstanding
accounts payable, payable in 18 equal monthly installments commencing on July 27, 2009 and ending on January 27, 2011, with no stated interest
    223,116      223,116 
             
Short-term loan due to a third-party with 6% interest     44,070      35,000 
      369,413      360,343 
Less: current portion     (369,413)     (360,343)
Notes payable, less current portion   $   $
             
Short term loan due to a related-party, payable in full on January 2, 2014 with 12% interest    $ 41,561    $ 203,664 
             
Short term loan due to a related-party, payable in full on May 31, 2014 with 12% interest      50,000      50,000 
             
Notes payable related party, current portion     91,561      253,664 
             
Less: current portion     (91,561)     (253,664)
Notes payable related party, less current portion   $   $

 

 

 

XML 31 R19.htm IDEA: XBRL DOCUMENT v3.3.1.900
CONVERTIBLE PROMISSORY NOTES - Note 13
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
CONVERTIBLE PROMISSORY NOTES - Note 13

NOTE 13 - CONVERTIBLE PROMISSORY NOTES

From time to time, we issue Convertible Promissory Notes. As of December 31, 2015, a total of $323,749 in convertible notes remained outstanding. As of December 31, 2015, $198,749 of these Notes have matured, however, the Company and the remaining Holder(s) have agreed to keep the balance as a Note Payable and the note holders have elected not to convert their note balances into shares of our common stock as of December 31, 2015.

Each Note contains the following general terms and provisions:

The principal amount owed under each note becomes due and payable one year or less from the investment date provided that, upon ten (10) days' prior written notice to the holder, we may, in our sole discretion, extend the maturity date for an additional six month term. The Notes can be further extended upon mutual agreement.

These notes bear interest at a rate of 6% per annum payable in cash or shares of common stock or a combination of cash and shares of common stock at our option.

During the first quarter of 2015, we did not enter into any Convertible Promissory Notes.

During the second quarter of 2015, we did not enter into any Convertible Promissory Notes, however, the Company still has one Convertible Promissory Note with one unrelated third-party for a principal amount of $198,749. This note has the option to be converted into a total of 6,779,661 shares of our common stock. As of December 31, 2015, this note has not been converted.

During the third quarter of 2015, we did not enter into any Convertible Promissory Notes.

During the fourth quarter of 2015, we did not enter into any new Convertible Promissory Notes.

We recognized the intrinsic value of the embedded beneficial conversion feature as additional paid in capital and an equivalent discount that reduced the carrying value of the convertible notes in the amount of $33,000 and $124,120, for the years ended December 31, 2015 and 2014, respectively.

The related discount for the beneficial conversion outstanding was $0 and $45,560 as of December 31, 2015 and 2014 respectively.

Shares issuable upon conversion for convertible notes payable was 1,355,932 and 16,879,041 as of December 31, 2015 and 2014, respectively.

The total interest expense attributed to the Beneficial Conversion Feature of the Notes and related warrants for the year ended December 31, 2015 and 2014 was $78,560 and $214,953, respectively.

 

 

 

 

 

XML 32 R20.htm IDEA: XBRL DOCUMENT v3.3.1.900
RESTRUCTURING ACTIVITIES - Note 14
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
RESTRUCTURING ACTIVITIES - Note 14

NOTE 14 - RESTRUCTURING ACTIVITIES

From May 29, 2008 to November 7, 2008, Favrille, Inc. had provided notices under the federal Worker Adjustment and Retraining Notification Act to 142 employees, including six members of senior management, that it planned to conduct a workforce reduction at its facility in San Diego, California and that their employment was expected to end on various dates between June 6, 2008 to November 7, 2008. Immediately prior to the date of the Merger on January 27, 2009, the total severance liability relating to former Favrille employees amounted to $1,682,416. On January 27, 2009, immediately prior to the Merger, as part of the 9,999,992 warrants issued to creditors, the Company issued warrants as settlement of $985,020 of these amounts. In addition, the Company signed promissory notes with certain former executives totaling $76,783.

As of December 31, 2015, the total remaining severance liabilities amounted to $620,613, which is reflected as severance liability on the accompanying consolidated balance sheets. No payments were made during the years ended December 31, 2015 or 2014 on these severance liabilities.

During the period from January 27, 2009 through June 30, 2009, the Company entered into a series of settlement agreements with certain vendors of Favrille pursuant to the Creditor Plan, in which the Company settled $302,982 of its outstanding accounts payable for an aggregate settlement amount of $214,402, including promissory notes of $139,355.

 

 

 

 

 

 

XML 33 R21.htm IDEA: XBRL DOCUMENT v3.3.1.900
RELATED PARTY TRANSACTIONS - Note 15
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
RELATED PARTY TRANSACTIONS - Note 15

NOTE 15 - RELATED PARTY TRANSACTIONS

Our Chairman and Chief Executive Officer, Robert H. Lorsch, is also the Chief Executive Officer of The RHL Group, Inc. and has full voting power over all of the capital stock of The RHL Group, Inc. Mr. Lorsch directly and indirectly through The RHL Group, Inc., beneficially owns approximately 21.8% of our total outstanding voting stock. The RHL Group, Inc. has loaned us money pursuant to the Tenth Amended Note and any predecessor notes. See Note 3 - Related Party Note Payable above.

The RHL Group is an investment holding company which provides consulting, operational and technical services to the Company, which we refer to as the RHL Services. As part of the RHL Services, the RHL Group provides the Company with unrestricted access to its internal business and relationship contact database of more than 10,000 persons and entities, which includes clients of the RHL Group and other individuals which may hold value to the Company. The RHL Group also provides infrastructure support to us, including allowing us unlimited access to its facilities, equipment, and data, information management and server systems. In addition to allowing us the use of its office support personnel, the RHL Group has also consented to allow us to utilize the full-time services of Mr. Lorsch as the Company's President, Chairman and Chief Executive Officer, which requires substantial time and energy away from his required duties as The RHL Group's Chairman and Chief Executive Officer. In addition, The RHL Group has made its President, Kira Reed, available as the Company's spokesperson. Ms. Reed, who is Mr. Lorsch's spouse, also manages our social networking activities.

On March 28, 2016, the Board approved the issuance of the following securities, which shall be issued no later than April 19, 2016:

  • 5-year Stock Options totaling 14,000,000 shares of Common Stock at $0.02 per share to our Directors (10,000,000 to Robert H. Lorsch, and 1,000,000 to each of the other directors.
  • An option for the RHL Group to convert up to $100,000 of principal on the Amended and Restated Note into 5,000,000 shares of Common Stock at a price of $0.02 per share in addition to any conversion rights in the existing note.

In consideration for the above, The RHL Group, Inc. has a consulting arrangement with MMR. A copy of the consulting agreement is filed as an Exhibit in our current report on Form 8-K filed with the SEC on May 4, 2009 and is hereby incorporated by reference.

We incurred $50,000 each year during the years ended December 31, 2015 and 2014, toward marketing consulting services from Bernard Stolar, a director. We included $206,272 and 174,273 in related party payables as of December 31, 2015, and 2014, respectively, in connection with these services.

We contract with a significant vendor for the development and maintenance of the software applications necessary to run our MyMedicalRecords PHR, MyEsafeDepositBox and MyMedicalRecords Pro products. Our outside developer supports our software development needs through a team of software engineers, programmers, quality control personnel and testers, who work with our internal product development team on all aspects of application development, design, integration and support of our products. This vendor is also a stockholder. For the year ended December 31, 2015 and 2014, the total expenses relating to this stockholder amounted to $120,000 and $120,000, respectively. As of December 31, 2015 and 2014, the total amounts due to the stockholder and included in related party payables amounted to $130,000 and $10,000, respectively.

On September 15, 2009, we entered into a five year agreement with E-Mail Frequency, LLC and David Loftus, Managing Partner of E-Mail Frequency, LLC, a significant stockholder of the Company. Under the Agreement the Company acquired the rights to license an existing 80 million person direct marketing database (the "Database") of street addresses, cellular phone numbers, e-mail addresses and other comprehensive data with E-Mail Frequency. The agreement allows us to market, through the use of the Database, our MyMedicalRecords PHR, MyEsafeDepositBox virtual vault, and MMRPro document management system to physicians and their patients. Under the terms of the Agreement, we paid $250,000 to David Loftus as a one-time consulting fee in the form of 555,556 shares of our common stock. We recorded the $250,000 one-time licensee fee as a prepaid consulting fee. Amortization expense for the years ended December 31, 2014 and 2013 was $50,000 per year. In addition, we incurred a total of $0 and $15,020 during the years ended December 31, 2014 and 2013, respectively, toward convertible notes interest to Mr. Loftus. We included in related party payables at December 31, 2014 and December 31, 2013 of $64,615 and $64,615, respectively, in respect to these services. Furthermore, Mr. Loftus is a value-added-reseller of MMRPro systems. We recognized $0 and $ 0 in revenue from E-Mail Frequency for the sale of MMRPro systems, during 2015 and 2014, respectively. On July 19, 2012, we entered into a 6% Convertible Promissory Note with Mr. Loftus for a principal amount of $157,422 and warrants to purchase our common stock. Effective September 1, 2011, we signed an Amendment to the Agreement dated September 15, 2009 to provide licensor a non- exclusive right to target, market and exploit the Employee Benefits market.

On October 19, 2015 Mr. Loftus Converted the Promissory Notes into 5,588,651 shares of the Company's Common Stock.

 

 

XML 34 R22.htm IDEA: XBRL DOCUMENT v3.3.1.900
SUBSEQUENT EVENTS - Note 16
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
SUBSEQUENT EVENTS - Note 16

NOTE 16 - SUBSEQUENT EVENTS

On February 2, 2016, the Company filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation (the "Certificate of Amendment") with the Secretary of State of the State of Delaware effecting a five for one reverse stock split of the Company's common stock (the "Reverse Stock Split"). The Reverse Stock Split became effective in the marketplace on February 8, 2016 at which time every five (5) shares of the Company's issued and outstanding common stock were automatically converted into one (1) issued and outstanding share of the Company's common stock, without any change in the par value per share. The Certificate of Amendment provides that no fractional shares will be issued. Instead, the Company will issue to the Stockholders one additional share of Common Stock for each fractional share. The new CUSIP number for the Company's common stock following the Reverse Stock Split is 55314U207.

On March 28, 2016, the Board approved the issuance of the following securities, which shall be issued no later than April 19, 2016:

  • 5-year Stock Options totaling 14,000,000 shares of Common Stock at $0.02 per share to our Directors (10,000,000 to Robert H. Lorsch, and 1,000,000 to each of the other directors.
  • An option for the RHL Group to convert up to $100,000 of principal on the Amended and Restated Note into 5,000,000 shares of Common Stock at a price of $0.02 per share in addition to any conversion rights in the existing note.
  • 3-year Stock Options and/or Warrants totaling 10,000,000 shares of Common Stock to certain employees, legal counsel, and consultants at a strike price of $0.02 per share on terms consistent with the Company's existing option and warrant agreements.

 

 

 

 

 

XML 35 R23.htm IDEA: XBRL DOCUMENT v3.3.1.900
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
Principles of Consolidation

Principles of Consolidation

 

The consolidated financial statements include the accounts of MMRGlobal, and its wholly-owned subsidiaries MMR and MMR Life Sciences Group, Inc. All intercompany transactions and balances are eliminated upon consolidation.

 

 

 

 

 

 

 

 

 

 

 

Basis of Presentation

Basis of Presentation

 

The accompanying financial statements are prepared in accordance with U.S. generally accepted accounting principles, or GAAP.

 

 

 

 

 

Going Concern and Management's Plan

GOING CONCERN

As of December 31, 2015, the Company's current liabilities exceeded its current assets by $8.89 million. Furthermore, during the years ended December 31, 2015, and 2014, the Company incurred losses of $3.0 million and $2.18 million, respectively.

At December 31, 2015 and December 31, 2014, we had $0 and $309,393, respectively, in cash and cash equivalents. Historically, we issued capital stock, sold debt and equity securities and received funds from The RHL Group, Inc. (a significant stockholder that is wholly-owned by our Chairman and Chief Executive Officer, Robert H. Lorsch) to operate our business. Although we received additional funding from The RHL Group pursuant to the Tenth Amended and Restated Note effective May 20, 2015 (the "Line of Credit"), we will still be required to obtain additional financing in order to meet installment payment obligations and the previously existing obligations under the Line of Credit, which had a balance of $1,942,693 at December 31, 2015 and a total Unpaid Balance (as defined in the Line of Credit) of $2,192,693, which includes amounts borrowed under the Line of Credit, unpaid interest fees, any amounts guaranteed by The RHL Group, and other obligations due the RHL Group pursuant to the terms of the Tenth Amended and Restated Note and the Security Agreement. As a result of the above, we express uncertainty about our ability to continue as a going concern. The components of the RHL Group Note payable and the related balance sheet presentation as of December 31, 2015 are as follows: $1,002,428, which is included in the line of credit, related party; and $70,352 related to other obligations due to The RHL Group which are included in related party payables.

Management's plan regarding this matter is to, amongst other things, continue to utilize our available line of credit with The RHL Group (see Note 3). At December 31, 2015, we had approximately $2.3 million remaining as available under The RHL Group line of credit. Additionally, we plan to continue selling additional debt and equity securities, continue to settle our existing liabilities through issuance of equity securities, explore other debt financing arrangements, continue to increase our existing subscriber and affiliate customer base, sell MMRPro products, and continue licensing our intellectual property to obtain additional cash flow over the next twelve months. We cannot assure that funds from these sources will be available when needed or, if available, will be on terms favorable to us or to our stockholders. If we raise additional funds or settle liabilities by issuing equity securities, the percentage ownership of our stockholders will be reduced, stockholders may experience additional dilution or such equity securities may provide for rights, preferences or privileges senior to those of the holders of our common stock. If we are unable to utilize our available line of credit with The RHL Group or obtain suitable alternative debt or equity financing, our ability to execute our business plan and continue as a going concern may be adversely affected.

These matters raise substantial doubt about our ability to continue as a going concern. These financial statements were prepared under the assumption that the Company will continue as a going concern and do not include any adjustments that might result from the outcome of that uncertainty.

 

 

Management's Use of Estimates

(a) MANAGEMENT'S USE OF ESTIMATES

 

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net revenue and expenses during each reporting period. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, allowances for doubtful accounts, the valuation of deferred income taxes, tax contingencies, long-lived and intangible assets, valuation of derivative liabilities and stock-based compensation. These estimates are based on historical experience and on various other factors that management believes to be reasonable under the circumstances, although actual results could differ from those estimates.

 

 

 

 

 

 

Cash and Cash Equivalents

(b) CASH AND CASH EQUIVALENTS

We consider cash equivalents to be only those investments that are highly liquid, readily convertible to cash and with maturities of 90 days or less at the purchase date. We maintain our cash in bank deposit accounts that, at times, may exceed federally insured limits. We have not experienced any losses in such accounts and believe that we are not exposed to any significant credit or deposit risk on our cash. We had cash and cash equivalents of $0 and $309,393 as of December 31, 2015 and 2014, respectively.

 

Trade and Other Receivables

(c) TRADE AND OTHER RECEIVABLES

Receivables represent claims against third parties that will be settled in cash. The carrying value of receivables, net of an allowance for doubtful accounts, if any, represents their estimated net realizable value. We estimate the allowance for doubtful accounts, if any, based on historical collection trends, type of customer, the age of outstanding receivables and existing economic conditions. If events or changes in circumstances indicate that specific receivable balances may be impaired, we give further consideration to the collectability of those balances and the allowance is adjusted accordingly. We write off past due receivable balances when collection efforts have been unsuccessful in collecting the amount due.

 

 

 

Fair Value of Financial Instruments

(d) FAIR VALUE OF FINANCIAL INSTRUMENTS

 

ASC 820-10, Fair Value Measurements and Disclosures, requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. ASC 820-10 defines the fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. As of December 31, 2014, and 2013, the carrying value of accounts receivable, deposits, related party payables, compensation payable, severance liabilities, and accounts payable and accrued expenses approximates fair value due to the short-term nature of such instruments. The carrying value of short-term debt approximates fair value as the related interest rates approximate rates currently available to us.

We utilize ASC 820-10 for valuing financial assets and liabilities measured on a recurring basis. ASC 820-10 defines fair value, establishes a framework for measuring fair value and GAAP and expands disclosures about fair value measurements. This standard applies in situations where other accounting pronouncements either permit or require fair value measurements. ASC 820-10 does not require any new fair value measurements.

Accounting guidance also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The standard describes three levels of inputs that may be used to measure fair value:

  Level 1: Quoted prices in active markets for identical or similar assets and liabilities.
  Level 2: Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets and liabilities.
  Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

 

 

 

Property and Equipment

(e) PROPERTY AND EQUIPMENT

We record property and equipment at cost. We record equipment under capital leases at the present value of the minimum lease payments. We calculate depreciation using the straight-line method, based upon the following estimated useful lives:

Furniture and Fixtures: 5 Years

Computer Equipment: 5 Years

When we retire or dispose of items, we charge or credit income for the difference between the net book value of the asset and the proceeds realized thereon.

We charge expenditures for maintenance and repairs to operations as incurred while we capitalize renewals and betterments.

We have pledged as collateral all property and equipment, along with all of our other assets, for a line of credit from The RHL Group, a related party (see Note 3 - Related Party Note Payable).

 

 

 

 

Intangible Assets

(f) INTANGIBLE ASSETS

Intangible assets are comprised of website and software development costs, domain names and patents. We account for website and software development costs in accordance with ASC 350-50, Website Development Costs, and ASC 985-20, Costs of Software to Be Sold, Leased or Marketed. Pursuant to ASC 350-50 and 985-20, we capitalize internally developed website and software costs when the website or software under development has reached technological feasibility. We amortize these costs, typically over an estimated life of five years, using the larger of the amount calculated using the straight-line method or the amount calculated using the ratio between current period gross revenues and the total of current period gross revenues and estimated future gross revenues. At each balance sheet date, we evaluate the unamortized capitalized website and software costs compared to the net realizable value. We then write off the amount by which the unamortized capitalized website costs exceed its net realizable value.

We account for domain names and patents in accordance with ASC 350-30, General Intangibles Other than Goodwill. We capitalize patent costs representing legal fees associated with filing patent applications and amortize them on a straight-line basis. We are in the process of evaluating our patents' estimated useful life and will begin amortizing the patents when they are brought to the market or otherwise commercialized. We amortize identifiable intangible assets over their estimated useful lives as follows:

Website and Software Development Costs: 5 Years

Domain Name: 5 Years

Patents: 20 Years

 

Impairment of Long-Lived Assets and Intangibles

(g) IMPAIRMENT OF LONG-LIVED ASSETS AND INTANGIBLES

 

We account for long-lived assets, which include property and equipment and identifiable intangible assets with finite useful lives (subject to amortization), in accordance with ASC 350-30. ASC 350-30 requires that we review long-lived assets for impairment whenever events or changes in circumstances indicate that we may not recover the carrying amount of an asset. We measure recoverability by comparing the carrying amount of an asset to the expected future undiscounted net cash flows generated by the asset. If we determine that the asset may not be recoverable, or if the carrying amount of an asset exceeds its estimated future undiscounted cash flows, we recognize an impairment charge to the extent of the difference between the fair value and the asset's carrying amount.

 

 

 

 

Revenue Recognition

(h) REVENUE RECOGNITION

 

We generate our revenues from services, which are comprised of providing electronic access to consumer medical records and other vital documents and from the licensing of our services. We recognize revenue only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and we reasonably are assured of collectability of the resulting receivable.

Our subscriber revenues consist of annual and monthly recurring retail subscriptions and usage-based fees, which are primarily paid in advance by credit card, and corporate accounts that are based on either an access-fee or actual number of users, and in each case billed in advance at the beginning of each month of service. We defer the portions of annual recurring subscription fees collected in advance and recognize them on a straight line basis over the subscription period. Deferred revenue was insignificant in 2015.

We grant exclusive licenses for the sale and marketing of our services in international territories in consideration of an up-front license fee and an ongoing royalty. The royalty fee is usually a percentage of revenue earned by the licensee and there usually are certain minimum guarantees. We defer the recognition of license fee revenues received in advance from international licensees for the grant of the license and recognize them over the period covered by the agreement. We defer the recognition of minimum guaranteed royalty payments received in advance and recognize them over the period to which the royalty relates. We include all such revenues under "License Fees." In those cases where a license agreement contains multiple deliverables, we account for the agreement in accordance with ASC 605-25, Revenue Recognition - Multiple-Element Arrangements.

We recognize revenue on sales of our MMRPro system in accordance with ASC 605-25, Revenue Recognition, Multiple-Element Arrangements.

Our multiple-deliverable arrangements consist solely of our MMRPro product. Significant deliverables within these arrangements include sophisticated scanning equipment, various licenses to use third party software, a license to use our proprietary MMRPro application software, installation and training, dedicated telephone lines, secure online storage and warranties.

We determined all elements to be separate units of accounting as they have standalone value to the customers and/or they are sold by other vendors on a standalone basis. Delivery of the hardware and certain software elements of these arrangements occur at the inception of the agreement. We deliver installation and training at the inception of the agreement. We provide other software licenses, telephone lines and online secure storage over the three year term of the agreement. We include warranties in the arrangements, however the third party product manufacturer, and not us, is obligated to fulfill such warranties. The third-party warranty contracts are paid in advance and are not refundable.

We allocate the revenue derived from these arrangements among all the deliverables. We base such allocation on the relative selling price of each deliverable. With the exception of our proprietary MMRPro application software, we use third party evidence to set the selling prices used for this allocation. In all such cases, third parties sell the same or very similar products. For the MMRPro application software, we estimate the selling price based on recent discussions regarding licensure of that particular application on a standalone basis. To date, we have not licensed this software on a standalone basis.

We recognize the allocated revenue for each deliverable in accordance with SEC Staff Accounting Bulletin ("SAB") No. 104, Topic 13: Revenue Recognition. Under this guidance, we recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable and collectability is reasonably assured. This results in us recognizing revenue for the hardware, certain software and the warranties upon delivery to the customer, for the installation and training upon completion of these services, and ratably over the contract period for the software licenses, telephone lines and online secure storage.

Revenue from the licensing of our biotech assets may include non-refundable license and up-front fees, non-refundable milestone payments that are triggered upon achievement of a specific event and future royalties or lump-sum payments on sales of related products. For agreements that provide for milestone payments, such as the Celgene Agreement, we adopted ASC 605-28-25, Revenue Recognition, Milestone Method.

 

Income Taxes

(i) INCOME TAXES

We account for income taxes in accordance with ASC 740-10, Income Taxes. We recognize deferred tax assets and liabilities to reflect the estimated future tax effects, calculated at the tax rate expected to be in effect at the time of realization. We record a valuation allowance related to a deferred tax asset when it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.

ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. We classify interest and penalties as a component of interest and other expenses. To date, we have not been assessed, nor have we paid, any interest or penalties.

 

 

Income Tax Uncertainties, Policy

(i) UNCERTAIN TAX POSITIONS

We measure and record uncertain tax positions by establishing a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Only tax positions meeting the more-likely-than-not recognition threshold at the effective date may be recognized or continue to be recognized.

 

 

Advertising

(j) ADVERTISING

We expense advertising costs as we incur them. Advertising expense for the years ended December 31, 2015 and 2014 was $1,454 and $23,884, respectively.

 

Shared-Based Compensation

(k) SHARE-BASED COMPENSATION

 

We account for share-based compensation in accordance with ASC 718-20, Awards Classified as Equity. We apply ASC 718-20 in accounting for stock-based awards issued to employees under the recognition of compensation expense related to the fair value of employee share-based awards, including stock options and restricted stock. Determining the fair value of options at the grant date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise, the associated volatility and the expected dividends. Judgment is required in estimating the amount of share-based awards expected to be forfeited prior to vesting. If actual forfeitures differ significantly from these estimates, share-based compensation expense could be materially impacted.

We account for options and warrants issued to non-employees in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. We treat options and warrants issued to non-employees the same as those issued to employees with the exception of determination of the measurement date. The measurement date is the earlier of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty's performance is complete. Options and warrants granted to consultants are valued at their respective measurement dates, and recognized as expense based on the portion of the total consulting services provided during the applicable period. As further consulting services are provided in future periods, we will revalue the associated options and warrants and recognize additional expense based on their then current values.

We estimate the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. We determine assumptions relative to volatility and anticipated forfeitures at the time of grant. We valued grants of warrants during the years ended December 31, 2015 and 2014 using the following assumptions.

  December 31, 2015   December 31, 2014
       
Expected life in years 0 - 5 Years    0 - 5 Years 
Stock price volatility 431.32% - 435.13%   144.64% - 171.22%
Risk free interest rate 0.14% - 1.10%   0.10% - 1.64%
Expected dividends None   None
Forfeiture rate 0%   0%

 

We base the assumptions used in the Black-Scholes models upon the following data: (1) our use of the contractual life of the underlying non-employee warrants as the expected life; the expected life of the employee options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience; (2) in the absence of an extensive public market for our shares, the expected stock price volatility of the underlying shares over the expected term of the option or warrant was taken at approximately the mid-point of the range for similar companies at the various grant dates; (3) we base the risk free interest rate on published U.S. Treasury Department interest rates for the expected terms of the underlying options or warrants; (4) we base expected dividends on historical dividend data and expected future dividend activity; and (5) we base the expected forfeiture rate on historical forfeiture activity and assumptions regarding future forfeitures based on the composition of current grantees.

 

 

Net Income/Loss Per Share

(l) NET INCOME/LOSS PER SHARE

 

We apply the guidance of ASC 260-10, Earnings Per Share for calculating the basic and diluted loss per share. We calculate basic loss per share by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding. We compute diluted loss per share similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional shares were dilutive. We exclude common equivalent shares from the computation of net loss per share if their effect is anti-dilutive.

We excluded all potential common shares from the computation of diluted net loss per common share for the years ended December 31, 2015 and 2014 because they were anti-dilutive due to our net loss position. Stock options, warrants and convertible notes excluded from the computation totaled 20,272,887 and 38,393,068 shares as of December 31, 2015 and 2014, respectively.

 

 

Research, development and engineering costs

(m) RESEARCH, DEVELOPMENT AND ENGINEERING

We expense research, development and engineering costs as incurred and presented as technology development in the accompanying consolidated statements of operations. We capitalize and amortize costs for software development relating to our website incurred subsequent to establishing technological feasibility, in the form of a working model, over their estimated useful lives.

 

 

Recent Accounting Pronouncements

(n) RECENT ACCOUNTING PRONOUNCEMENTS

 

In May 2014, FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. The standard will eliminate the transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle-based approach for determining revenue recognition. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2017. Early adoption is not permitted. The revenue recognition standard is required to be applied retrospectively, including any combination of practical expedients as allowed in the standard. We are evaluating the impact, if any, of the adoption of ASU 2014-09 to our financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. ASU 2014-15 changes to the disclosure of uncertainties about an entity's ability to continue as a going concern. These changes require an entity's management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that financial statements are issued. Substantial doubt is defined as an indication that it is probable that an entity will be unable to meet its obligations as they become due within one year after the date that financial statements are issued. If management has concluded that substantial doubt exists, then the following disclosures should be made in the financial statements: (i) principal conditions or events that raised the substantial doubt, (ii) management's evaluation of the significance of those conditions or events in relation to the entity's ability to meet its obligations, (iii) management's plans that alleviated the initial substantial doubt or, if substantial doubt was not alleviated, management's plans that are intended to at least mitigate the conditions or events that raise substantial doubt, and (iv) if the latter in (iii) is disclosed, an explicit statement that there is substantial doubt about the entity's ability to continue as a going concern. These changes become effective for the Company for the 2017 annual period. Management is evaluating the impact of the adoption of these changes will have on the consolidated financial statements. Subsequent to adoption, this guidance will need to be applied by management at the end of each annual period and interim period therein to determine what, if any, impact there will be on the consolidated financial statements in a given reporting period.

In April 2015, the FASB issued ASU No 2015-3, Simplifying the Presentation of Debt Issuance Costs. This update changes the presentation of debt issuance costs in the balance sheet. ASU 2015-03 requires debt issuance costs related to a recognized debt obligation to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability rather than being presented as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. In August 2015, the FASB issued ASU 2015-15, "Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements". This ASU clarified guidance in ASC 2015-03 stating that the SEC staff would not object to a company presenting debt issuance costs related to a line-of-credit arrangement on the balance sheet as a deferred asset, regardless of whether there were any outstanding borrowings at period-end. This update is effective for annual and interim periods beginning after December 15, 2015, which will require us to adopt these provisions in the first quarter of 2016. We do not expect this guidance to have a material impact to our financial position or results of operations.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes existing guidance on accounting for leases in "Leases (Topic 840)" and generally requires all leases to be recognized in the consolidated balance sheet. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018; early adoption is permitted. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. This ASU affects entities that issue share-based payment awards to their employees. The ASU is designed to simplify several aspects of accounting for share-based payment award transactions which include - the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. ASU 2016-09 will become effective for the Company in the first quarter of fiscal 2018. Early adoption is permitted in any interim or annual period. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

 

 

 

XML 36 R24.htm IDEA: XBRL DOCUMENT v3.3.1.900
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Black-Scholes Assumptions) (Tables)
12 Months Ended
Dec. 31, 2015
Summary Of Significant Accounting Policies Black-scholes Assumptions Tables  
Black-Scholes option and valuation model assumptions

We valued grants of warrants during the years ended December 31, 2015 and 2014 using the following assumptions.

  December 31, 2015   December 31, 2014
       
Expected life in years 0 - 5 Years    0 - 5 Years 
Stock price volatility 431.32% - 435.13%   144.64% - 171.22%
Risk free interest rate 0.14% - 1.10%   0.10% - 1.64%
Expected dividends None   None
Forfeiture rate 0%   0%

 

 

 

XML 37 R25.htm IDEA: XBRL DOCUMENT v3.3.1.900
Prepaid Expenses and other Current Assets (Tables)
12 Months Ended
Dec. 31, 2015
Prepaid Expenses And Other Current Assets Tables  
Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets include the following:

      December 31,     December 31,
      2015     2014
Prepaid consulting fees from issuance of common stock   $   $ 125,625 
Prepaid insurance         5,984 
Prepaid trade shows         30,575 
             
Total prepaid expenses and other current assets   $   $ 162,184 

 

 

 

 

 

XML 38 R26.htm IDEA: XBRL DOCUMENT v3.3.1.900
Property and equipment, net (Tables)
12 Months Ended
Dec. 31, 2015
Property And Equipment Net Tables  
Components of Property, Plant and Equipment

Property and equipment, at year end consisted of the following:

      December 31,     December 31,
      2015     2014
Furniture and fixtures   $ 5,295    $ 4,041 
Computers and related equipment     137,465      137,465 
      142,760      141,506 
             
Less: Accumulated depreciation and amortization     (123,689)     (109,389)
             
    $ 19,071    $ 32,118 

 

 

 

 

 

 

XML 39 R27.htm IDEA: XBRL DOCUMENT v3.3.1.900
Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2015
Intangible Assets Tables  
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Estimated amortization expense for each of the next five succeeding years is expected to be as follows:

Year Ending
December 31,
     
2016   $ 109,528 
2017     28,566 
2018     26,703 
2019     24,786 
2020     24,787 
Total   $ 214,370 

 

 

 

XML 40 R28.htm IDEA: XBRL DOCUMENT v3.3.1.900
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)
12 Months Ended
Dec. 31, 2015
Accounts Payable And Accrued Expenses Tables  
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)

 

      December 31,     December 31,
      2015     2014
Legal and accounting fees   $ 2,721,983    $ 3,524,788 
Accounts payable and accruals from Favrille Merger     309,791      309,791 
Trade payables and consulting services     1,552,741      732,234 
Accrued vacation     145,861      102,147 
             
Total accounts payable and accrued expenses   $ 4,420,585    $ 4,668,960 

 

 

 

 

XML 41 R29.htm IDEA: XBRL DOCUMENT v3.3.1.900
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2015
Income Taxes Tables  
Reconciliation of U.S. statutory income tax rate to company's effective tax rate

The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes were as follows:

    Years Ended December 31,
    2015   2014
Federal statutory rate   -34.00%   -34.00%
State tax, net of federal benefit   -5.65%   -5.65%
Non-deductible items   0.84%   0.84%
Valuation allowance   38.81%   38.81%
Effective income tax rate   0.00%   0.00%

 

 

 

Schedule of Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and (liabilities) are as follows:

      December 31,
      2015     2014
Net operating loss carryforwards   $ 20,124,072    $ 19,345,922 
Depreciation and amortization     435,026      (55,855)
Share-based compensation     2,494,629      2,494,629 
R&D tax credit     2,455,964      2,455,964 
State tax and other     (1,597,575)     (1,509,212)
Deferred tax assets, net     23,912,116      22,731,448 
Less: valuation allowance     (23,912,116)     (22,731,448)
    $   $

 

 

 

 

 

 

 

 

XML 42 R30.htm IDEA: XBRL DOCUMENT v3.3.1.900
COMMITMENTS AND CONTINGENCIES (Tables)
12 Months Ended
Dec. 31, 2015
Commitments And Contingencies Tables  
Schedule of Future Minimum Rental Payments for Operating and Capital Leases

Future minimum lease payments as of December 31, 2015, under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) are as follows:

Year Ending     Operating     Capital
December 31,     Leases     Leases
             
     2016   $ 187,550    $ 13,221 
     2017     206,305     
     2018     146,410     
Total minimum lease payments   $ 540,265    $ 13,221 

 

 

 

 

 

XML 43 R31.htm IDEA: XBRL DOCUMENT v3.3.1.900
EQUITY ISSUANCES (Tables)
12 Months Ended
Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of Outstanding Option Awards

A summary of option activity for the years ended December 31, 2014 and 2015 is presented below. Options granted by MMR Inc. prior to the date of the Merger of January 27, 2009 have been retroactively restated to reflect the conversion ratio of MMR Inc. to MMR shares.

              Weighted-Average      
          Weighted-   Remaining      
          Average   Contractual     Aggregate
          Exercise   Life     Intrinsic
    Options     Price   (Years)     Value
Outstanding at December 31, 2014   7,508,345    $ 0.50    5.08    $ -  
Granted   -       -            
Exercised   -       -            
Cancelled   (20,000)   $ 0.40           
Outstanding at December 31, 2015   7,488,345    $ 0.50    3.62    $ -  
                     
Vested and expected to vest                    
     at December 31, 2015   7,488,345    $ 0.50    3.62    $ -  
                     
Exercisable at December 31, 2015   7,368,345    $ 0.50    3.60    $ -  

 

 

 

 

Summary of Stock Options Outstanding and Exercisable

The following table summarizes information about stock options outstanding and exercisable at December 31, 2015.

      Options Outstanding   Options Exercisable
            Weighted     Weighted       Weighted     Weighted
            Average     Average       Average     Average
  Exercise   Number     Remaining     Exercise   Number   Remaining     Exercise
  Price   of Shares     Life (Years)     Price   of Shares   Life (Years)     Price
                                 
$ 0.25 - 0.45   2,560,000      5.81   $ 0.35    2,420,000    5.81   $ 0.30 
$ 0.50 - 0.75   4,602,292      2.44   $ 0.55    4,602,292    2.44   $ 0.55 
$ > 0.75   326,053      2.64   $ 0.90    326,053    2.64   $ 0.90 
      7,488,345                7,348,345           

 

 

 

Summary of Outstanding Warrant Awards

A summary of the activity of the Company's warrants for the year ended December 31, 2015 is presented below.

        Weighted Avg
  Shares     Exercise Price
Outstanding at December 31, 2014 14,005,682    $ 0.30 
Granted 352,928      0.02 
Exercised     0.00 
Cancelled (2,930,000)     0.36 
Outstanding at December 31, 2015 11,428,610    $ 0.30 
         
Exercisable at December 31, 2015 10,470,960    $ 0.31 

 

The following summarizes the total warrants outstanding and exercisable as of December 31, 2015.

    Warrants Outstanding   Warrants Exercisable
    Warrants   Weighted Avg     Weighted Avg   Warrants   Weighted Avg     Weighted Avg
Ranges   Outstanding   Remaining Life     Exercise Price   Exercisable   Remaining Life     Exercise Price
                             
$0.02 - $0.30   8,182,798   1.92   $ 0.15   7,625,147   1.92   $ 0.20
$0.30 - $0.50   805,000   0.57     0.50   605,000   0.25     0.45
Greater $0.50   2,440,812   0.95     0.75   2,240,813   1.01     0.75
                             
    11,428,610             10,470,960          

 

 

 

 

Shares Issued for Services or Reduction to Liabilities

During the year ended December 31, 2015, we issued 25,557,562 shares of common stock with a value of $399,944 and charged to the appropriate accounts for the following reasons:

    Year Ended December 31, 2015
           
Purpose   Shares     Value
           
Services provided   400,000    $ 38,200 
Reduction of payables   25,157,562    $ 361,744 
Totals    25,557,562    $ 399,944 

 

 

 

 

 

XML 44 R32.htm IDEA: XBRL DOCUMENT v3.3.1.900
NOTES PAYABLE (Tables)
12 Months Ended
Dec. 31, 2015
Notes Payable Tables  
Notes Payable

The Notes payable consisted of the following:

      December 31,     December 31,
      2015     2014
             
Promissory notes payable due to the former officers of MMRGlobal as part of severance packages, due in full on August 31, 2009 with no stated interest   $ 76,783    $ 76,783 
             
Promissory notes payable due to the former officers of MMRGlobal pursuant to the
Resignation and Post-Merger Employment Arrangement, due in full on August 31, 2009 with no stated interest
    25,444      25,444 
             
Promissory notes payable due to vendors relating to settlement of certain outstanding
accounts payable, payable in 18 equal monthly installments commencing on July 27, 2009 and ending on January 27, 2011, with no stated interest
    223,116      223,116 
             
Short-term loan due to a third-party with 6% interest     44,070      35,000 
      369,413      360,343 
Less: current portion     (369,413)     (360,343)
Notes payable, less current portion   $   $
             
Short term loan due to a related-party, payable in full on January 2, 2014 with 12% interest    $ 41,561    $ 203,664 
             
Short term loan due to a related-party, payable in full on May 31, 2014 with 12% interest      50,000      50,000 
             
Notes payable related party, current portion     91,561      253,664 
             
Less: current portion     (91,561)     (253,664)
Notes payable related party, less current portion   $   $

 

 

 

 

XML 45 R33.htm IDEA: XBRL DOCUMENT v3.3.1.900
Accounting Policies (Cash and Cash Equivalents) (Narrative) (Details) - USD ($)
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Accounting Policies Cash And Cash Equivalents Narrative Details      
Cash and cash equivalents $ 0 $ 309,393 $ 10,359
XML 46 R34.htm IDEA: XBRL DOCUMENT v3.3.1.900
Accounting Policies (Property and Equipment Useful Lives) (Narrative) (Details)
12 Months Ended
Dec. 31, 2015
Computer Equipment  
Property and Equipment, Depreciation Methods

We record property and equipment at cost. We record equipment under capital leases at the present value of the minimum lease payments. We calculate depreciation using the straight-line method, based upon the following estimated useful lives:

 

Computer Equipment: 5 Years

 

When we retire or dispose of items, we charge or credit income for the difference between the net book value of the asset and the proceeds realized thereon.

 

We charge expenditures for maintenance and repairs to operations as incurred while we capitalize renewals and betterments.

 

 

 

Property and Equipment, Estimated Useful Lives, years 5
Furniture and Fixtures  
Property and Equipment, Depreciation Methods

We record property and equipment at cost. We record equipment under capital leases at the present value of the minimum lease payments. We calculate depreciation using the straight-line method, based upon the following estimated useful lives:

 

Furniture and Fixtures: 5 Years

 

When we retire or dispose of items, we charge or credit income for the difference between the net book value of the asset and the proceeds realized thereon.

 

We charge expenditures for maintenance and repairs to operations as incurred while we capitalize renewals and betterments.

 

 

 

 

Property and Equipment, Estimated Useful Lives, years 5
XML 47 R35.htm IDEA: XBRL DOCUMENT v3.3.1.900
Accounting Policies (Intangible Assets Lives and Impairments) (Narrative) (Details)
12 Months Ended
Dec. 31, 2015
Website and Software Development Costs  
Finite-Lived Intangible Assets, Amortization Method

Intangible assets are comprised of website and software development costs, domain names and patents. We account for website and software development costs in accordance with ASC 350-50, Website Development Costs, and ASC 985-20, Costs of Software to Be Sold, Leased or Marketed. Pursuant to ASC 350-50 and 985-20, we capitalize internally developed website and software costs when the website or software under development has reached technological feasibility. We amortize these costs, typically over an estimated life of five years, using the larger of the amount calculated using the straight-line method or the amount calculated using the ratio between current period gross revenues and the total of current period gross revenues and estimated future gross revenues. At each balance sheet date, we evaluate the unamortized capitalized website and software costs compared to the net realizable value. We then write off the amount by which the unamortized capitalized website costs exceed its net realizable value.

We account for domain names and patents in accordance with ASC 350-30, General Intangibles Other than Goodwill. We capitalize patent costs representing legal fees associated with filing patent applications and amortize them on a straight-line basis. We amortize the patents when they are brought to the market or otherwise commercialized.

 

 

 

Finite-Lived Intangible Assets, Average Useful Life, years 5 years
Domain Names  
Finite-Lived Intangible Assets, Amortization Method

Intangible assets are comprised of website and software development costs, domain names and patents. We account for website and software development costs in accordance with ASC 350-50, Website Development Costs, and ASC 985-20, Costs of Software to Be Sold, Leased or Marketed. Pursuant to ASC 350-50 and 985-20, we capitalize internally developed website and software costs when the website or software under development has reached technological feasibility. We amortize these costs, typically over an estimated life of five years, using the larger of the amount calculated using the straight-line method or the amount calculated using the ratio between current period gross revenues and the total of current period gross revenues and estimated future gross revenues. At each balance sheet date, we evaluate the unamortized capitalized website and software costs compared to the net realizable value. We then write off the amount by which the unamortized capitalized website costs exceed its net realizable value.

We account for domain names and patents in accordance with ASC 350-30, General Intangibles Other than Goodwill. We capitalize patent costs representing legal fees associated with filing patent applications and amortize them on a straight-line basis. We amortize the patents when they are brought to the market or otherwise commercialized.

 

 

 

Finite-Lived Intangible Assets, Average Useful Life, years 5 years
Patents  
Finite-Lived Intangible Assets, Amortization Method

Intangible assets are comprised of website and software development costs, domain names and patents. We account for website and software development costs in accordance with ASC 350-50, Website Development Costs, and ASC 985-20, Costs of Software to Be Sold, Leased or Marketed. Pursuant to ASC 350-50 and 985-20, we capitalize internally developed website and software costs when the website or software under development has reached technological feasibility. We amortize these costs, typically over an estimated life of five years, using the larger of the amount calculated using the straight-line method or the amount calculated using the ratio between current period gross revenues and the total of current period gross revenues and estimated future gross revenues. At each balance sheet date, we evaluate the unamortized capitalized website and software costs compared to the net realizable value. We then write off the amount by which the unamortized capitalized website costs exceed its net realizable value.

We account for domain names and patents in accordance with ASC 350-30, General Intangibles Other than Goodwill. We capitalize patent costs representing legal fees associated with filing patent applications and amortize them on a straight-line basis. We amortize the patents when they are brought to the market or otherwise commercialized.

 

 

 

Finite-Lived Intangible Assets, Average Useful Life, years 20 years
XML 48 R36.htm IDEA: XBRL DOCUMENT v3.3.1.900
Accounting Policies (Income Taxes and Uncertain Tax Positions) (Narrative) (Details) - USD ($)
Dec. 31, 2015
Dec. 31, 2014
Accounting Policies Income Taxes And Uncertain Tax Positions Narrative Details    
Tax interest or penalties assessed and paid $ 0 $ 0
XML 49 R37.htm IDEA: XBRL DOCUMENT v3.3.1.900
Accounting Policies (Advertising) (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Accounting Policies Advertising Narrative Details    
Advertising expense $ 1,454 $ 23,884
XML 50 R38.htm IDEA: XBRL DOCUMENT v3.3.1.900
Accounting Policies (Share-Based Compensation Schedule Of Assumptions Used In Black-Scholes Model) (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Accounting Policies Share-based Compensation Schedule Of Assumptions Used In Black-scholes Model Details    
Expected life, in years, maximum 5 years 5 years
Stock price volatility, minimum 431.32% 144.64%
Stock price volatility, maximum 435.13% 171.22%
Risk-free interest rate, mimimum 0.14% 0.10%
Risk-free interest rate, maximum 1.10% 1.64%
Expected dividends $ 0 $ 0
Forfeiture rate 0.00% 0.00%
XML 51 R39.htm IDEA: XBRL DOCUMENT v3.3.1.900
Accounting Policies (Net Income/Loss Per Share) (Narrative) (Details) - shares
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Accounting Policies Net Incomeloss Per Share Narrative Details    
Stock options, warrants and convertible notes excluded from the computation of net loss per share 20,272,887 38,393,068
XML 52 R40.htm IDEA: XBRL DOCUMENT v3.3.1.900
Related Party Note Payable (Narrative) (Details) - Tenth Amended and Restated Secured Promissory Note - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Date of note May 20, 2015  
Maximum line of credit under note

On May 20, 2015, we and The RHL Group entered into a Tenth Amended and Restated Promissory Note (the "Amended Note"), effective as of May 20, 2015. The Tenth Note amends and restates that certain Ninth Amended Note entered into between the foregoing parties, effective July 10, 2014 (the "Existing Note" and together with its predecessor notes and the Amended Note, the "Credit Facility"), by: (i) extending the maturity date to April 29, 2016. In connection with the Tenth Amended Note, we issued The RHL Group warrants to purchase 352,928 shares of our common stock at $0.015 per share on May 20, 2015. Except as set forth above, the Amended Note does not materially alter the terms of the Existing Note.

Historically, the predecessor notes have increased over time the maximum amount of credit available under the Credit Facility from $100,000 to $1,000,000 to $3,000,000 to $4,500,000. The maximum amount of the Amended Note is $4,500,000. The Amended Note continues to bear interest at the lesser of 10% or the highest rate then permitted by law, and is secured (similar to the Existing Note) by a Security Agreement, which has been in effect since July 31, 2007, as renewed and amended to date (the "Security Agreement").

The Tenth Amended Note had a current balance of $1.95 million at December 31, 2015. The components of the Tenth Amended Note and the related balance sheet presentation as of December 31, 2015 are as follows: $1.87 million, which is included in the line of credit, related party; and $0.07 million for other obligations due to The RHL Group, which is included in related party payables.

Total interest expense on the Line of Credit for the twelve months ended December 31, 2015 and 2014 amounted to $142,337 and $134,523, respectively. The unpaid interest balances as of December 31, 2015 and December 31, 2014 were $62,492 and $30,160, respectively.

In conjunction with the Tenth Amended Note, we were required to maintain certain financial covenants, including the requirement that we have at least $200,000 of cash in our bank accounts or such other amount as necessary to maintain operations through the subsequent thirty (30) days and timely pay any obligations due respecting payroll and all associated payroll taxes on and after June 30, 2015. Since we did not meet these covenants as of December 31, 2015, we received a waiver from The RHL Group until April 25, 2016.

 

 

 

 

 

 

 

 

 
Maturity date Apr. 29, 2016  
Warrants granted for shares 352,928  
Warrant price per share $ 0.015  
Debt component classification:    
Line of credit, related party $ 1,880,000  
Related party payables 70,000  
Total note payable balance 1,950,000  
Interest expense on line of credit 142,337 $ 134,523
Related party accrued interest $ 62,492 $ 30,160
XML 53 R41.htm IDEA: XBRL DOCUMENT v3.3.1.900
Prepaid Expenses and Other Current Assets (Details) - USD ($)
Dec. 31, 2015
Dec. 31, 2014
Prepaid Expenses And Other Current Assets Details    
Prepaid consulting fees from issuance of common stock $ 0 $ 125,625
Prepaid insurance 0 5,984
Prepaid trade shows 0 30,575
Total prepaid expenses and other current assets $ 0 $ 162,184
XML 54 R42.htm IDEA: XBRL DOCUMENT v3.3.1.900
Property, Plant and Equipment (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Balance Sheet Related Disclosures [Abstract]    
Furniture and fixtures $ 5,295 $ 4,041
Computers and related equipment 137,465 137,465
Property and equipment, gross 142,760 141,506
Less: Accumulated depreciation (123,689) (109,388)
Property, plant and equipment, net 19,071 32,118
Depreciation expense $ 14,299 $ 13,677
XML 55 R43.htm IDEA: XBRL DOCUMENT v3.3.1.900
Intangible Assets (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Intangible Assets Narrative Details    
Amortization expense $ 253,078 $ 289,085
Impairment charges $ 1,040,912  
XML 56 R44.htm IDEA: XBRL DOCUMENT v3.3.1.900
Intangible Assets (Future Amortization) (Details)
Dec. 31, 2015
USD ($)
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract]  
2016 $ 109,528
2017 28,566
2018 26,703
2019 24,786
2020 24,787
Total $ 214,370
XML 57 R45.htm IDEA: XBRL DOCUMENT v3.3.1.900
Accounts Payable and Accrued Expenses (Details) - USD ($)
Dec. 31, 2015
Dec. 31, 2014
Accounts Payable And Accrued Expenses Details    
Legal and accounting fees $ 2,721,983 $ 3,524,788
Accounts payable and accruals from Favrille Merger 309,791 309,791
Trade payables and consulting services 1,552,741 732,234
Accrued vacation 145,861 102,147
Accounts payable and accrued expenses $ 4,420,585 $ 4,668,960
XML 58 R46.htm IDEA: XBRL DOCUMENT v3.3.1.900
Income Tax (Schedule of Effective Income Tax Rate Reconciliation) (Details)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Income Tax Schedule Of Effective Income Tax Rate Reconciliation Details    
Federal statutory rate (34.00%) (34.00%)
State tax, net of federal benefit (5.65%) (5.82%)
Non-deductible items 0.84% 0.08%
Valuation allowance 38.81% 39.74%
Effective income tax rate 0.00% 0.00%
XML 59 R47.htm IDEA: XBRL DOCUMENT v3.3.1.900
Income Tax (Schedule of Tax Effects of Temporary Differences in Deferred Tax Assets and Liabilities) (Details) - USD ($)
Dec. 31, 2015
Dec. 31, 2014
Income Tax Schedule Of Tax Effects Of Temporary Differences In Deferred Tax Assets And Liabilities Details    
Net operating loss carryforwards $ 20,124,072 $ 19,345,922
Depreciation and amortization 435,026 (55,855)
Share-based compensation 2,494,629 2,494,629
R&D tax credit 2,455,964 2,455,964
State tax and other (1,597,575) (1,509,212)
Deferred tax assets, net 23,912,116 22,731,448
Less: valuation allowance (23,912,116) (22,731,448)
Total deferred tax assets $ 0 $ 0
XML 60 R48.htm IDEA: XBRL DOCUMENT v3.3.1.900
Income Taxes (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Deferred tax asset valuation allowance $ 23,912,116 $ 22,731,448
Unrecognized tax benefits 0 0
Tax interest and penalties 0 $ 0
Federal    
Operating Loss Carryforwards $ 47,187,635  
Operating loss carryforwards, expiration date Dec. 31, 2027  
State    
Operating Loss Carryforwards $ 46,156,969  
Operating loss carryforwards, expiration date Dec. 31, 2016  
XML 61 R49.htm IDEA: XBRL DOCUMENT v3.3.1.900
Commitments and Contingencies (Operating Leases) (Details)
Dec. 31, 2015
USD ($)
Year ending December 31:  
2016 $ 187,550
2017 206,305
2018 146,410
Total minimum lease payments $ 540,265
XML 62 R50.htm IDEA: XBRL DOCUMENT v3.3.1.900
Commitments and Contingencies (Capital Leases) (Details)
Dec. 31, 2015
USD ($)
Year ending December31:  
2015 $ 13,221
Total minimum lease payments $ 13,221
XML 63 R51.htm IDEA: XBRL DOCUMENT v3.3.1.900
Commitments and Contingencies (Leases Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Rent expense $ 113,299 $ 150,720
September 2013 Lease    
Operating lease description

Effective September 1, 2013, we renewed our lease for office space in Los Angeles, California with a term through August 31, 2018.

 

 

 
XML 64 R52.htm IDEA: XBRL DOCUMENT v3.3.1.900
Commitments and Contingencies (Guarantees Provided To The Company Narrative) (Details) - Guarantee provided by The RHL Group
12 Months Ended
Dec. 31, 2015
USD ($)
$ / shares
shares
Date of guarantee May 06, 2011
Amount of guarantee | $ $ 250,000
Warrants granted | shares 625,000
Warrant price per share | $ / shares $ 0.046
Shares granted | shares 125,000
Share price per share | $ / shares $ 0.046
XML 65 R53.htm IDEA: XBRL DOCUMENT v3.3.1.900
Commitments and Contingencies (Employment Agreements Narrative) (Details)
12 Months Ended
Dec. 31, 2015
Lorsch  
Description of Employment Arrangements

The Company has employment agreements with its Chairman, President and Chief Executive Officer, Robert H. Lorsch, its Vice President of Finance and Chief Financial Officer, Ingrid Safranek. Under each employment agreement, the executive officers receive a base salary, subject to annual increases as determined by the board of directors, certain benefits as set forth in the employment agreements, and an annual bonus at the discretion of the board of directors. Ms. Safranek's employment agreement expired at the end of 2015.

On January 29, 2009 we entered into an employment agreement with our Chairman, President and Chief Executive Officer, Robert H. Lorsch, with an initial term ending on December 31, 2011, subject to successive automatic extension unless we or Mr. Lorsch elect not to extend. Under the terms of his agreement, Mr. Lorsch shall serve as both our President and Chief Executive Officer and President and Chief Executive Officer of our wholly-owned subsidiary, MMR. The agreement provides for a base salary of $15,000 per month, subject to an upward increase and with an annual bonus and stock option grants in such amounts, if any, as the Board of Directors may determine in its sole discretion. Mr. Lorsch receives a monthly auto allowance, reimbursement of certain life insurance premiums, and reimbursement for certain other insurance coverage, and is entitled to participate in benefits generally made to our senior executives.

On December 28, 2011, the Board of Directors agreed to renew Mr. Lorsch's employment agreement effective January 1, 2012 for an additional three year term ending on December 31, 2014. The term of the Renewal expired on December 31, 2014, but may be extended automatically for successive additional one-year periods at the expiration of the then-current term unless written notice of non-extension is provided to Mr. Lorsch with at least 90 days prior notice to the expiration of such term. A notice of non-extension was not provided to Mr. Lorsch pursuant to the terms of his employment agreement and as such the agreement automatically renewed through the end of 2016. In addition, on December 31, 2013, the Board of Directors agreed to extend Mr. Lorsch's employment term to December 31, 2015 under the same terms. Mr. Lorsch's current annual base salary will remain unchanged, except for the minimum 5% annual increase as called under the agreement, with the understanding that, as in the past, portions of the payments could be deferred into future periods. Mr. Lorsch may terminate the agreement upon 30 days written notice without reason or for good reason (as defined in the agreements) if we fail to cure acts or omissions constituting good reason within 30 days. If Mr. Lorsch's employment is terminated by us for cause or voluntarily by Mr. Lorsch without good reason, he will not be entitled to receive any severance payments or benefits under the employment agreement. If Mr. Lorsch's employment is terminated by us without cause or voluntarily by Mr. Lorsch for good reason, Mr. Lorsch will be entitled to one year of salary at his then current rate of pay, including all monthly benefits, and the pro rata portion of the annual bonus otherwise due Mr. Lorsch. In the event of his disability, Mr. Lorsch would be entitled to receive compensation equal to 60% of his base salary as then in effect. Mr. Lorsch's employment agreement includes provisions that prohibit Mr. Lorsch from disclosing our confidential information and trade secrets and competing with us during the term of his employment agreement or soliciting our employees for 12 months following termination of employment.

We also have entered into a consulting agreement with The RHL Group, Inc., which is wholly-owned by Mr. Lorsch that provides for a monthly fee of $25,000 plus reimbursement of expenses including medical insurance. The RHL Group provides consulting, operational and technical services to the Company, which we refer to as the RHL Services. As part of the RHL Services, The RHL Group provides the Company with unrestricted access to its internal business and relationship contact database of more than 10,000 persons and entities, which includes clients of the RHL Group and other individuals which may hold value to the Company. The RHL Group also provides infrastructure support to the Company, including allowing the Company unlimited access to its facilities, equipment, and data, information management and server systems. The RHL Group has also consented to allow the Company to utilize the full-time services of Mr. Lorsch as the Company's President, Chairman and Chief Executive Officer, which requires substantial time and energy away from his required duties as The RHL Group's Chairman and Chief Executive Officer. In addition, The RHL Group has made its President, Kira Reed, available as the Company's spokesperson. Ms. Reed, who is Mr. Lorsch's spouse, also manages the Company's social networking activities.

 

Safranek  
Description of Employment Arrangements

On January 26, 2010, we entered into an employment agreement with Ingrid Safranek as our Vice President, Chief Financial Officer and Secretary. Under the employment agreement, Ms. Safranek receives a base salary, subject to annual increases as determined by the Board of Directors, certain benefits as set forth in the employment agreement, and an annual bonus at the discretion of the board of directors. Ms. Safranek's employment agreement was effective until June 15, 2010, but was extended until June 15, 2011. On December 10, 2010, the Board approved Ms. Safranek's employment agreement to be amended to extend the term for an additional one year commencing on January 1, 2011. On December 28, 2011, the Board extended the current employment agreement for an additional two years term and approved an increase in her base salary with the understanding that, from time to time, it could be necessary to defer certain payments or benefits into future periods. Furthermore, on December 31, 2013, the Board elected to renew Ms. Safranek's agreement for an additional two year term under the same terms as before.

The current term of Ms. Safranek's employment agreement was effective until December 31, 2015 and automatically renewed for successive 12 month periods unless terminated at least 30 days prior to the end of the term. On July 27, 2015, Ms. Safranek submitted her resignation to the Board of Directors. The resignation became effective immediately. In recognition of her six years of service to our company, the Board of Directors determined by unanimous written consent on July 27, 2015 that, notwithstanding Ms. .Safranek's voluntary resignation, the Company will pay her the remaining balance due her through December 31, 2015 pursuant to the terms of her existing employment agreement which is on file with the SEC. Ms. Safranek's employment agreement includes provisions that prohibit her from disclosing our confidential information and trade secrets and competing with us during the term of his employment agreement or soliciting our employees for 12 months following termination of employment.

 

 

XML 66 R54.htm IDEA: XBRL DOCUMENT v3.3.1.900
Stockholders' Deficit (Narrative) (Details)
12 Months Ended
Dec. 31, 2015
Stockholders Deficit Narrative Details  
Investment agreement

On May 24, 2012, the Company filed a Form S-1 related to the offer and resale of up to 20,000,000 shares of our common stock by Granite. Granite agreed to purchase all 20,000,000 shares pursuant to the Investment Agreement, and an additional 200,000 shares were issued to Granite as partial consideration for the preparation of the documents for its investment in the Company. Subject to the terms and conditions of the Investment Agreement, the Company has the right to put up to $75 million in shares of our common stock to Granite. As of December 31, 2015, the amount available under the equity line facility was $0.

 

Reverse Stock Split

On February 2, 2016, the Company filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation (the "Certificate of Amendment") with the Secretary of State of the State of Delaware effecting a five for one reverse stock split of the Company's common stock (the "Reverse Stock Split") which became effective in the marketplace on February 8, 2016. The number of shares and per share amounts have been retroactively restated to reflect this reverse stock split.

 

 

 

Reverse Stock Split, Conversion Ratio .20
XML 67 R55.htm IDEA: XBRL DOCUMENT v3.3.1.900
Equity Issuances (Stock Option Activity Summary Of Option Activity) (Details)
12 Months Ended
Dec. 31, 2015
USD ($)
$ / shares
shares
Equity Issuances Stock Option Activity Summary Of Option Activity Details  
Outstanding at beginning 7,508,345
Granted 0
Exercised 0
Cancelled (20,000)
Outstanding at end 7,488,345
Vested and expected to vest at December 31, 2014 7,488,345
Exercisable at December 31, 2014 7,348,345
Weighted-Average Exercise Prices, Granted | $ / shares $ 0.00
Weighted-Average Exercise Prices, Exercised | $ / shares 0.00
Weighted-Average Exercise Prices, Forfeited, cancelled or expired | $ / shares 0.40
Weighted-Average Exercise Prices, Outstanding at end | $ / shares 0.50
Weighted-Average Exercise Prices, Vested and expected to vest | $ / shares $ 0.50
Weighted-Average Remaining Contractual Life (in years), Outstanding at beginning 5 years 29 days
Weighted-Average Remaining Contractual Life (in years), Outstanding at end 5 years 223 days
Weighted-Average Remaining Contractual Life (in years), Vested and expected to vest 5 years 223 days
Weighted-Average Remaining Contractual Life (in years), Exercisable 3 years 180 days
Aggregate Intrinsic Value, Outstanding at end | $ $ 0
Aggregate Intrinsic Value, Vested and expected to vest | $ 0
Aggregate Intrinsic Value, Exercisable | $ $ 0
XML 68 R56.htm IDEA: XBRL DOCUMENT v3.3.1.900
Equity Issuances (Stock Option Activity Summary Of Stock Options Outstanding and Exercisable) (Details) - $ / shares
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Options Outstanding, Number of Shares 7,488,345 7,508,345
Options Outstanding, Weighted-Average Exercise Price Per Share $ 0.50  
Options Exercisable, Number of Shares 7,348,345  
$0.02 - $0.45    
Range of Exercise Price, Minimum $ 0.25  
Range of Exercise Price, Maximum $ 0.45  
Options Outstanding, Number of Shares 2,560,000  
Options Outstanding, Weighted-Average Remaining Life (in years) 5 years 282 days  
Options Outstanding, Weighted-Average Exercise Price Per Share $ 0.35  
Options Exercisable, Number of Shares 2,420,000  
Options Exercisable, Weighted-Average Remaining Life (in years) 5 years 282 days  
Options Exercisable, Weighted-Average Exercise Price Per Share $ 0.30  
$0.50 - $0.75    
Range of Exercise Price, Minimum 0.50  
Range of Exercise Price, Maximum $ 0.75  
Options Outstanding, Number of Shares 4,602,292  
Options Outstanding, Weighted-Average Remaining Life (in years) 2 years 158 days  
Options Outstanding, Weighted-Average Exercise Price Per Share $ .55  
Options Exercisable, Number of Shares 4,602,292  
Options Exercisable, Weighted-Average Remaining Life (in years) 2 years 158 days  
Options Exercisable, Weighted-Average Exercise Price Per Share $ 0.55  
> $0.75    
Range of Exercise Price, Minimum $ 0.75  
Options Outstanding, Number of Shares 326,053  
Options Outstanding, Weighted-Average Remaining Life (in years) 2 years 230 days  
Options Outstanding, Weighted-Average Exercise Price Per Share $ 0.90  
Options Exercisable, Number of Shares 326,053  
Options Exercisable, Weighted-Average Remaining Life (in years) 2 years 230 days  
Options Exercisable, Weighted-Average Exercise Price Per Share $ 0.90  
XML 69 R57.htm IDEA: XBRL DOCUMENT v3.3.1.900
Equity Issuances (Stock Option and Warrant Expense Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Equity Issuances Stock Option And Warrant Expense Narrative Details    
Stock option expense $ 22,426 $ 157,283
XML 70 R58.htm IDEA: XBRL DOCUMENT v3.3.1.900
Equity Issuances (Summary Of Warrant Activity) (Details)
12 Months Ended
Dec. 31, 2015
$ / shares
shares
Equity Issuances Summary Of Warrant Activity Details  
Warrants outstanding at December 31, 2014 | shares 14,005,682
Granted | shares 352,928
Exercised | shares 0
Cancelled | shares (2,930,000)
Warrants outstanding at December 31, 2015 | shares 11,428,610
Warrants exercisable at December 31, 2015 | shares 10,470,960
Weighted-average exercise price, beginning balance | $ / shares $ 0.30
Weighted-average exercise price, granted | $ / shares 0.02
Weighted-average exercise price, exercised during period | $ / shares 0.00
Weighted-average exercise price, cancelled during period | $ / shares 0.36
Weighted-average exercise price, ending balance | $ / shares 0.30
Warrants exercisable, weighted average exercise price | $ / shares $ 0.31
XML 71 R59.htm IDEA: XBRL DOCUMENT v3.3.1.900
Equity Issuances (Summary Of Warrants Outstanding and Exercisable) (Details)
12 Months Ended
Dec. 31, 2015
$ / shares
shares
Warrants outstanding at December 31, 2015 | shares 11,428,610
Warrants exercisable | shares 10,470,960
$0.02 - $0.30  
Range of Exercise Price, Minimum $ 0.02
Range of Exercise Price, Maximum $ 0.30
Warrants outstanding at December 31, 2015 | shares 8,182,798
Warrants outstanding, Weighted-average remaining life, in years 1 year 331 days
Warrants outstanding, Weighted-average exercise price $ 0.15
Warrants exercisable | shares 7,625,147
Warrants exercisable, Weighted-average remaining life, in years 1.92
Warrants exercisable, Weighted-average exercise price $ 0.20
$0.30 - $0.50  
Range of Exercise Price, Minimum 0.30
Range of Exercise Price, Maximum $ 0.50
Warrants outstanding at December 31, 2015 | shares 805,000
Warrants outstanding, Weighted-average remaining life, in years 205 days
Warrants outstanding, Weighted-average exercise price $ 0.50
Warrants exercisable | shares 605,000
Warrants exercisable, Weighted-average remaining life, in years 0.25
Warrants exercisable, Weighted-average exercise price $ 0.45
> $0.50  
Range of Exercise Price, Minimum $ 0.50
Warrants outstanding at December 31, 2015 | shares 2,440,812
Warrants outstanding, Weighted-average remaining life, in years 342 days
Warrants outstanding, Weighted-average exercise price $ 0.75
Warrants exercisable | shares 2,240,813
Warrants exercisable, Weighted-average remaining life, in years 1.01
Warrants exercisable, Weighted-average exercise price $ 0.75
XML 72 R60.htm IDEA: XBRL DOCUMENT v3.3.1.900
Equity Issuances (Shares Issued for Services or Reduction to Liabilities) (Details)
12 Months Ended
Dec. 31, 2015
USD ($)
shares
Equity Issuances Shares Issued For Services Or Reduction To Liabilities Details  
Reduction of payables, shares | shares 25,157,562
Reduction of payables, amount | $ $ 361,744
Services provided, shares | shares 400,000
Services provided, amount | $ $ 38,200
Total payment of services provided through issuance of common stock, shares | shares 25,557,562
Total payment of accounts payable through issuance of common stock, amount | $ $ 399,944
XML 73 R61.htm IDEA: XBRL DOCUMENT v3.3.1.900
Equity Issuances (Stock Option Expense Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Equity Issuances Stock Option And Warrant Expense Narrative Details    
Stock option expense $ 22,426 $ 157,283
Unrecognized compensation cost related to share-based compensation $ 9,106  
Weighted-average service period, years   1 year
XML 74 R62.htm IDEA: XBRL DOCUMENT v3.3.1.900
Equity Issuances (Warrants) (Narrative) (Details)
12 Months Ended
Dec. 31, 2015
$ / shares
shares
March 4 2014  
Number of warrants granted | shares 500,000
Exercise price, per share | $ / shares $ 0.06
Title of Warrants Outstanding

On March 4, 2014, we granted an unrelated third party a warrant to purchase 500,000 shares of our common stock. This warrant vests immediately and has an exercise price of $0.06 per share, and an expiration date of February 28, 2015.

 

March 4 2014 B  
Number of warrants granted | shares 500,000
Exercise price, per share | $ / shares $ 0.10
Title of Warrants Outstanding

On March 4, 2014, we granted an unrelated third party a warrant to purchase 500,000 shares of our common stock. This warrant vests upon three successful hospital sign ups of MMR Patient View Portal and has an exercise price of $0.10 per share, and an expiration date of February 28, 2015.

 

 

 

March 4 2014 C  
Number of warrants granted | shares 250,000
Exercise price, per share | $ / shares $ 0.06
Title of Warrants Outstanding

On March 4, 2014, we granted an unrelated third party a warrant to purchase 250,000 shares of our common stock. This warrant vests in six months and has an exercise price of $0.06 per share, and an expiration date of March 4, 2016.

 

 

 

 

March 27 2014  
Number of warrants granted | shares 250,000
Exercise price, per share | $ / shares $ 0.06
Title of Warrants Outstanding

On March 27, 2014, we granted an unrelated third party a warrant to purchase 250,000 shares of our common stock. This warrant vests in one year and has an exercise price of $0.06 per share, and an expiration date of March 27, 2019.

 

April 8 2014  
Number of warrants granted | shares 250,000
Exercise price, per share | $ / shares $ 0.06
Title of Warrants Outstanding

On April 8, 2014, we granted and unrelated third-party a warrant to acquire 250,000 shares of common stock in consideration for services. The warrant vests equally over three years, has an exercise price of $0.06 per share, and an expiration date of April 8, 2019.

 

 

 

 

April 30 2014  
Number of warrants granted | shares 250,000
Exercise price, per share | $ / shares $ 0.06
Title of Warrants Outstanding

On April 30, 2014, we granted and unrelated third-party a warrant to acquire 250,000 shares of common stock in consideration for services. The warrant vests equally over three years, has an exercise price of $0.06 per share, and an expiration date of April 30, 2019.

 

 

 

 

May 29 2014 A  
Number of warrants granted | shares 500,000
Exercise price, per share | $ / shares $ 0.024
Title of Warrants Outstanding

On May 29, 2014, we granted an unrelated third party a warrant to purchase 500,000 shares of our common stock as part of a warrant exchange program. This warrant vests immediately and has an exercise price of $0.024 per share, and an expiration date of May 29, 2015.

 

 

 

 

May 29 2014 B  
Number of warrants granted | shares 500,000
Exercise price, per share | $ / shares $ 0.06
Title of Warrants Outstanding

On May 29, 2014, we granted an unrelated third party a warrant to purchase 500,000 shares of our common stock in consideration for services. This warrant vests in one year and has an exercise price of $0.06 per share, and an expiration date of May 29, 2015.

 

 

 

July 10 2014  
Number of warrants granted | shares 2,871,561
Exercise price, per share | $ / shares $ 0.035
Title of Warrants Outstanding

On July 10, 2014, we granted the RHL Group a warrant to purchase 2,781,561 shares of our common stock in connection with the renewal of the line of credit through the Ninth Amended Note. This warrant has an exercise price of $0.035 per share, with an expiration date of June 4, 2019, and vests at commencement.

 

 

May 19 2015  
Number of warrants granted | shares 352,928
Exercise price, per share | $ / shares $ 0.015
Title of Warrants Outstanding

On May 19, 2015, we granted the RHL Group, Inc. a warrant to purchase 352,928 shares of common stock in connection with the renewal of the line of credit through the Tenth Amended Note. This warrant has an exercise price of $0.015 per share, with an expiration date of May 19, 2020, and vests at commencement.

 

 

XML 75 R63.htm IDEA: XBRL DOCUMENT v3.3.1.900
Equity Issuances (Restricted Stock Program) (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Share-based Compensation $ 22,426 $ 621,132
Restricted Stock Program    
Stock Issued During Period, Shares, Share-based Compensation 25,557,562 3,708,506
Share-based Compensation $ 399,944 $ 604,395
XML 76 R64.htm IDEA: XBRL DOCUMENT v3.3.1.900
Equity Issuances (Stock Bonus Agreements) (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Stock Bonus Agreement expense $ 0 $ 308,375
Unrecognized compensation cost $ 9,106  
XML 77 R65.htm IDEA: XBRL DOCUMENT v3.3.1.900
Notes Payable (Details) - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Notes payable consisted of the following:    
Short-term debt $ 369,413 $ 360,343
Related party short-term debt $ 91,561 253,664
Severance Package Notes    
Notes payable consisted of the following:    
Short-term Debt, Terms

Promissory notes payable due to the former officers of MMRGlobal as part of severance packages, due in full on August 31, 2009 with no stated interest

 

 

 

 
Short-term debt $ 76,783 76,783
Resignation and Post-Merger Employment Arrangement Notes    
Notes payable consisted of the following:    
Short-term Debt, Terms

Promissory notes payable due to the former officers of
MMRGlobal pursuant to the Resignation and Post-Merger Employment
Arrangement, due in full on August 31, 2009 with no stated interest

 
Short-term debt $ 25,444 25,444
Notes Payable - Vendors    
Notes payable consisted of the following:    
Short-term Debt, Terms

Promissory notes payable due to vendors relating to settlement of certain
outstanding accounts payable, payable in 18 equal monthly installments commencing
on July 27, 2009 and ending on January 27, 2011, with no stated interest

 
Short-term debt $ 223,116 223,116
Short Term Loan Two    
Notes payable consisted of the following:    
Short-term Debt, Terms

Short term loan due to a third-party with 6% interest

 

 

 
Short-term debt $ 44,070 35,000
Related Party One    
Notes payable consisted of the following:    
Short-term Debt, Terms

Short term loan due to a related-party, payable in full on
January 2, 2014 with 12% interest 

 

 

 

 
Related party short-term debt $ 41,561 203,664
Related Party Two    
Notes payable consisted of the following:    
Short-term Debt, Terms

Short term loan due to a related-party, payable in full on
May 31, 2014 with 12% interest 

 

 

 

 
Related party short-term debt $ 50,000 $ 50,000
XML 78 R66.htm IDEA: XBRL DOCUMENT v3.3.1.900
Convertible Promissory Notes (Narrative) (Details)
12 Months Ended
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Convertible Promissory Notes Narrative Details    
Debt instrument, description

From time to time, we issue Convertible Promissory Notes. As of December 31, 2015, a total of $323,749 in convertible notes remained outstanding. As of December 31, 2015, $198,749 of these Notes have matured, however, the Company and the remaining Holder(s) have agreed to keep the balance as a Note Payable and the note holders have elected not to convert their note balances into shares of our common stock as of December 31, 2015.

Each Note contains the following general terms and provisions:

The principal amount owed under each note becomes due and payable one year or less from the investment date provided that, upon ten (10) days' prior written notice to the holder, we may, in our sole discretion, extend the maturity date for an additional six month term. The Notes can be further extended upon mutual agreement.

These notes bear interest at a rate of 6% per annum payable in cash or shares of common stock or a combination of cash and shares of common stock at our option.

During the first quarter of 2015, we did not enter into any Convertible Promissory Notes.

During the second quarter of 2015, we did not enter into any Convertible Promissory Notes, however, the Company still has one Convertible Promissory Note with one unrelated third-party for a principal amount of $198,749. This note has the option to be converted into a total of 6,779,661 shares of our common stock. As of December 31, 2015, this note has not been converted.

During the third quarter of 2015, we did not enter into any Convertible Promissory Notes.

During the fourth quarter of 2015, we did not enter into any new Convertible Promissory Notes.

We recognized the intrinsic value of the embedded beneficial conversion feature as additional paid in capital and an equivalent discount that reduced the carrying value of the convertible notes in the amount of $33,000 and $124,120, for the years ended December 31, 2015 and 2014, respectively.

The related discount for the beneficial conversion outstanding was $0 and $45,560 as of December 31, 2015 and 2014 respectively.

Shares issuable upon conversion for convertible notes payable was 1,355,932 and 16,879,041 as of December 31, 2015 and 2014, respectively.

The total interest expense attributed to the Beneficial Conversion Feature of the Notes and related warrants for the year ended December 31, 2015 and 2014 was $78,560 and $214,953, respectively.

 

 
Debt Instrument, Convertible, Number of Equity Instruments 1,355,932 16,879,041
Creation of note discount   $ 198,749
Note discount $ 0 45,560
Interest expense $ 78,560 $ 214,953
XML 79 R67.htm IDEA: XBRL DOCUMENT v3.3.1.900
Restructuring Activities (Narrative) (Details)
12 Months Ended
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Total remaining severance liability $ 620,613 $ 620,613
Favrille    
Restructuring and Related Activities, Description

From May 29, 2008 to November 7, 2008, Favrille, Inc. had provided notices under the federal Worker Adjustment and Retraining Notification Act to 142 employees, including six members of senior management, that it planned to conduct a workforce reduction at its facility in San Diego, California and that their employment was expected to end on various dates between June 6, 2008 to November 7, 2008. Immediately prior to the date of the Merger on January 27, 2009, the total severance liability relating to former Favrille employees amounted to $1,682,416. On January 27, 2009, immediately prior to the Merger, as part of the 9,999,992 warrants issued to creditors, the Company issued warrants as settlement of $985,020 of these amounts. In addition, the Company signed promissory notes with certain former executives totaling $76,783.

As of December 31, 2015, the total remaining severance liabilities amounted to $620,613, which is reflected as severance liability on the accompanying consolidated balance sheets. No payments were made during the years ended December 31, 2015 or 2014 on these severance liabilities.

 

 

 

 

 

 

 

 
Number of employees terminated 142  
Severance liability relating to former Favrille employees at merger date $ 1,682,416  
Warrants issued as settlement of severance liability 985,020  
Promissory notes with certain former executives 76,783  
Severance liabilty payable to former non-executive employees in 18 monthly installments starting on July 27, 2009 571,362  
Estimated payroll tax on severance liabilty 49,251  
Total remaining severance liability $ 620,613  
Creditor Plan    
Restructuring and Related Activities, Description

During the period from January 27, 2009 through June 30, 2009, the Company entered into a series of settlement agreements with certain vendors of Favrille pursuant to the Creditor Plan, in which the Company settled $302,982 of its outstanding accounts payable for an aggregate settlement amount of $214,402, including promissory notes of $139,355.

 

 

 

 

 

 
Amount settled under creditor plan $ 302,982  
Accounts payable settled 214,402  
Promissory notes settled $ 139,355  
XML 80 R68.htm IDEA: XBRL DOCUMENT v3.3.1.900
Related Party Transactions (Narrative) (Details) - USD ($)
3 Months Ended 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2009
Related party payables     $ 1,351,083 $ 952,835  
Amortization of licensee fee     $ 253,078 289,085  
The RHL Group, Inc.          
Nature of Common Ownership or Management Control Relationships    

Our Chairman and Chief Executive Officer, Robert H. Lorsch, is also the Chief Executive Officer of The RHL Group, Inc. and has full voting power over all of the capital stock of The RHL Group, Inc. Mr. Lorsch directly and indirectly through The RHL Group, Inc., beneficially owns approximately 21.8% of our total outstanding voting stock. The RHL Group, Inc. has loaned us money pursuant to the Tenth Amended Note and any predecessor notes. See Note 3 - Related Party Note Payable above.

The RHL Group is an investment holding company which provides consulting, operational and technical services to the Company, which we refer to as the RHL Services. As part of the RHL Services, the RHL Group provides the Company with unrestricted access to its internal business and relationship contact database of more than 10,000 persons and entities, which includes clients of the RHL Group and other individuals which may hold value to the Company. The RHL Group also provides infrastructure support to us, including allowing us unlimited access to its facilities, equipment, and data, information management and server systems. In addition to allowing us the use of its office support personnel, the RHL Group has also consented to allow us to utilize the full-time services of Mr. Lorsch as the Company's President, Chairman and Chief Executive Officer, which requires substantial time and energy away from his required duties as The RHL Group's Chairman and Chief Executive Officer. In addition, The RHL Group has made its President, Kira Reed, available as the Company's spokesperson. Ms. Reed, who is Mr. Lorsch's spouse, also manages our social networking activities.

On March 28, 2016, the Board approved the issuance of the following securities, which shall be issued no later than April 19, 2016:

  • 5-year Stock Options totaling 14,000,000 shares of Common Stock at $0.02 per share to our Directors (10,000,000 to Robert H. Lorsch, and 1,000,000 to each of the other directors.
  • An option for the RHL Group to convert up to $100,000 of principal on the Amended and Restated Note into 5,000,000 shares of Common Stock at a price of $0.02 per share in addition to any conversion rights in the existing note.

In consideration for the above, The RHL Group, Inc. has a consulting arrangement with MMR. A copy of the consulting agreement is filed as an Exhibit in our current report on Form 8-K filed with the SEC on May 4, 2009 and is hereby incorporated by reference.

 

 

 

 

 

   
Bernard Stolar          
Nature of Common Ownership or Management Control Relationships    

We incurred $50,000 each year during the years ended December 31, 2015 and 2014, toward marketing consulting services from Bernard Stolar, a director. We included $206,272 and 174,273 in related party payables as of December 31, 2015, and 2014, respectively, in connection with these services.

 

 

 

 

 

 

   
Related Party Transaction, Expenses from Transactions with Related Party     $ 50,000 50,000  
Related party payables     $ 206,272 174,273  
Significant Vendor          
Nature of Common Ownership or Management Control Relationships    

We contract with a significant vendor for the development and maintenance of the software applications necessary to run our MyMedicalRecords PHR, MyEsafeDepositBox and MyMedicalRecords Pro products. Our outside developer supports our software development needs through a team of software engineers, programmers, quality control personnel and testers, who work with our internal product development team on all aspects of application development, design, integration and support of our products. This vendor is also a stockholder. For the year ended December 31, 2015 and 2014, the total expenses relating to this stockholder amounted to $120,000 and $120,000, respectively. As of December 31, 2015 and 2014, the total amounts due to the stockholder and included in related party payables amounted to $130,000 and $10,000, respectively.

 

 

 

 

 

 

   
Related Party Transaction, Expenses from Transactions with Related Party     $ 120,000 120,000  
Related party payables     $ 130,000 10,000  
E-Mail Frequency, LLC          
Nature of Common Ownership or Management Control Relationships    

On September 15, 2009, we entered into a five year agreement with E-Mail Frequency, LLC and David Loftus, Managing Partner of E-Mail Frequency, LLC, a significant stockholder of the Company. Under the Agreement the Company acquired the rights to license an existing 80 million person direct marketing database (the "Database") of street addresses, cellular phone numbers, e-mail addresses and other comprehensive data with E-Mail Frequency. The agreement allows us to market, through the use of the Database, our MyMedicalRecords PHR, MyEsafeDepositBox virtual vault, and MMRPro document management system to physicians and their patients. Under the terms of the Agreement, we paid $250,000 to David Loftus as a one-time consulting fee in the form of 555,556 shares of our common stock. We recorded the $250,000 one-time licensee fee as a prepaid consulting fee. Amortization expense for the years ended December 31, 2014 and 2013 was $50,000 per year. In addition, we incurred a total of $0 and $15,020 during the years ended December 31, 2014 and 2013, respectively, toward convertible notes interest to Mr. Loftus. We included in related party payables at December 31, 2014 and December 31, 2013 of $64,615 and $64,615, respectively, in respect to these services. Furthermore, Mr. Loftus is a value-added-reseller of MMRPro systems. We recognized $0 and $ 0 in revenue from E-Mail Frequency for the sale of MMRPro systems, during 2015 and 2014, respectively. On July 19, 2012, we entered into a 6% Convertible Promissory Note with Mr. Loftus for a principal amount of $157,422 and warrants to purchase our common stock. Effective September 1, 2011, we signed an Amendment to the Agreement dated September 15, 2009 to provide licensor a non-exclusive right to target, market and exploit the Employee Benefits market.

On October 19, 2015 Mr. Loftus Converted the Promissory Notes into 5,588,651 shares of the Company's Common Stock.

 

 

 

 

 

 

   
Related Party Transaction, Expenses from Transactions with Related Party     $ 0 15,020  
Amortization of licensee fee     50,000 50,000  
David Loftus          
Related Party Transaction, Revenues from Transactions with Related Party     0 0  
Related party payables     $ 64,615 $ 64,615  
Shares issued for services, related party, shares         2,777,778
Shares issued for services, related party, amount         $ 250,000
Interest expense with related party $ 0 $ 0      
XML 81 R69.htm IDEA: XBRL DOCUMENT v3.3.1.900
Subsequent Events (Narrative) (Details)
12 Months Ended
Dec. 31, 2015
Subsequent Events Narrative Details  
Subsequent Event, Description

On February 2, 2016, the Company filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation (the "Certificate of Amendment") with the Secretary of State of the State of Delaware effecting a five for one reverse stock split of the Company's common stock (the "Reverse Stock Split"). The Reverse Stock Split became effective in the marketplace on February 8, 2016 at which time every five (5) shares of the Company's issued and outstanding common stock were automatically converted into one (1) issued and outstanding share of the Company's common stock, without any change in the par value per share. The Certificate of Amendment provides that no fractional shares will be issued. Instead, the Company will issue to the Stockholders one additional share of Common Stock for each fractional share. The new CUSIP number for the Company's common stock following the Reverse Stock Split is 55314U207.

On March 28, 2016, the Board approved the issuance of the following securities, which shall be issued no later than April 19, 2016:

  • 5-year Stock Options totaling 14,000,000 shares of Common Stock at $0.02 per share to our Directors (10,000,000 to Robert H. Lorsch, and 1,000,000 to each of the other directors.
  • An option for the RHL Group to convert up to $100,000 of principal on the Amended and Restated Note into 5,000,000 shares of Common Stock at a price of $0.02 per share in addition to any conversion rights in the existing note.
  • 3-year Stock Options and/or Warrants totaling 10,000,000 shares of Common Stock to certain employees, legal counsel, and consultants at a strike price of $0.02 per share on terms consistent with the Company's existing option and warrant agreements.

 

 

 

 

 

 

 

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