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2015 QUARTERLY RESTATEMENTS (UNAUDITED) (Details 1) - USD ($)
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Jun. 30, 2015
Sep. 30, 2015
Dec. 31, 2015
Dec. 31, 2014
Operating Expenses:              
Depreciation and amortization           $ 147,052 $ 148,841
Research and development           480,789 1,500
General and administrative           9,003,143 717,505
Total operating expenses           9,630,984 767,846
Loss from operations           (8,895,620) (767,846)
Derivative expense           (3,832,920)  
Amortizaton of debt discounts           (832,775)
Interest expense           (1,136,528) (65,225)
Net loss           $ (36,679,169) $ (904,687)
Net loss per share: Basic and diluted (in dollars per share)           $ (0.21) $ (0.01)
As Previously Reported [Member]              
Condensed Consolidated Statements of Operations:              
Revenue $ 75,312 $ 11,046   $ 11,046 $ 86,358    
Operating Expenses:              
Depreciation and amortization 10,135 11,469 $ 11,271 22,740 34,312    
Research and development 853 24,000 24,853 24,853    
General and administrative 840,199 570,622 472,836 1,043,459 [1] 1,817,906    
Total operating expenses 850,334 582,944 508,107 1,091,052 1,877,071    
Loss from operations (775,022) (571,898) (508,107) (1,080,006) (1,790,713)    
Derivative expense (20,478,790) (3,680,374)   (3,680,374) (20,979,041)    
Stock compensation expense (4,849,740)       (4,849,740)    
Financing Costs of debentures (1,357,917)       (4,538,040)    
Amortizaton of debt discounts (358,705)       (421,524)    
Interest expense (98,166) (11,741) (1,755) (13,496) [1] (112,304)    
Other income 9,315       9,315    
Translation loss   (26,259)   (26,259)      
Net loss $ (27,909,025) $ (4,290,272) $ (509,862) $ (4,800,135) $ (32,682,047)    
Net loss per share: Basic and diluted (in dollars per share) $ (0.16) $ (0.03) $ (0.00) $ (0.03) $ (0.19)    
Adjustments [Member]              
Condensed Consolidated Statements of Operations:              
Revenue      
Operating Expenses:              
Depreciation and amortization 32,549 32,549 32,549 65,098    
Research and development 200,000 200,000 200,000    
General and administrative (1,957,052) (46,344) (46,344) (2,003,395)    
Total operating expenses (1,924,503) (13,795) 200,000 186,205 (1,738,297)    
Loss from operations 1,924,503 13,795 (200,000) (186,205) 1,738,297    
Derivative expense (3,767,837) 815,021   815,021 (6,132,939)    
Stock compensation expense          
Financing Costs of debentures 1,357,917       4,538,040    
Amortizaton of debt discounts          
Interest expense (11,919) 45,685 45,685 28,667    
Other income          
Translation loss          
Net loss $ (497,336) $ 874,501 $ (200,000) $ 674,501 $ 172,065    
Net loss per share: Basic and diluted (in dollars per share) $ (0.00) $ 0.01 $ (0.00) $ 0.01 $ 0.00    
As Restated [Member]              
Condensed Consolidated Statements of Operations:              
Revenue $ 75,312 $ 11,046   $ 11,046 $ 86,358    
Operating Expenses:              
Depreciation and amortization 42,684 44,018 $ 11,271 55,289 99,410    
Research and development 853 224,000 224,853 224,853    
General and administrative 3,732,887 456,360 472,836 929,197 4,664,251    
Total operating expenses 3,775,571 501,231 708,107 1,209,339 4,988,514    
Loss from operations (3,700,259) (490,185) (708,107) (1,198,293) (4,902,156)    
Derivative expense (24,246,627) (2,865,353)   (2,865,353) (27,111,980)    
Stock compensation expense          
Financing Costs of debentures          
Amortizaton of debt discounts          
Interest expense (468,790) (33,974) (1,755) (35,729) (505,161)    
Other income 9,315       9,315    
Translation loss   (26,259)   (26,259)      
Net loss $ (28,406,361) $ (3,415,771) $ (709,862) $ (4,125,634) $ (32,509,982)    
Net loss per share: Basic and diluted (in dollars per share) $ (0.17) $ (0.02) $ (0.00) $ (0.02) $ (0.19)    
Reclassifications [Member]              
Condensed Consolidated Statements of Operations:              
Revenue      
Operating Expenses:              
Depreciation and amortization      
Research and development      
General and administrative 4,849,740 (67,918)   (67,918) 4,849,740    
Total operating expenses 4,849,740 (67,918)   (67,918) 4,849,740    
Loss from operations (4,849,740) 67,918   67,918 (4,849,740)    
Derivative expense      
Stock compensation expense 4,849,740       4,849,740    
Financing Costs of debentures          
Amortizaton of debt discounts 358,705       421,524    
Interest expense (358,705) (67,918)   (67,918) (421,524)    
Other income          
Translation loss          
Net loss      
Net loss per share: Basic and diluted (in dollars per share)      
As Reclassified [Member]              
Condensed Consolidated Statements of Operations:              
Revenue $ 75,312 $ 11,046   $ 11,046 $ 86,358    
Operating Expenses:              
Depreciation and amortization 10,135 [2] 11,469 [3]   22,740 [3] 34,312 [2]    
Research and development 853   24,853 [4] 24,853 [5]    
General and administrative 5,689,939 [6],[7] 502,704 [8],[9]   975,541 [8],[9] 6,667,646 [6],[7]    
Total operating expenses 5,700,074 515,026   1,023,134 6,726,811    
Loss from operations (5,624,762) (503,980)   (1,012,088) (6,640,453)    
Derivative expense (20,478,790) [10] (3,680,374) [11]   (3,680,374) [11] (20,979,041) [10]    
Stock compensation expense          
Financing Costs of debentures (1,357,917)       (4,538,040)    
Amortizaton of debt discounts          
Interest expense (456,871) [10] (79,659) [11]   (81,414) [11] (533,828) [10]    
Other income 9,315       9,315    
Translation loss   (26,259)   (26,259)      
Net loss $ (27,909,025) $ (4,290,272)   $ (4,800,135) $ (32,682,047)    
Net loss per share: Basic and diluted (in dollars per share) $ (0.16) $ (0.03)   $ (0.03) $ (0.19)    
[1] Reclassifications. During the preparation of its consolidated financial statements for the year ended December 31, 2015, the Company changed or renamed the classification/description of certain accounts and related amounts. Accordingly, certain of the previously stated classifications/descriptions and related amounts required adjustment for the three and six months ended June 30, 2015. The reclassifications and description changes relate to General and Administrative and Interest expenses associated with the recording of the Debt Discount amortization.
[2] Fair Value of Intangible Assets In Connection with Business Acquisition. During the three months ended June 30, 2015, the Company accounted for the acquisition of Multipay (see Note 7) as a business combination using the acquisition method of accounting utilizing an incorrect valuation. The adjustment to reflect the correct valuation, including the purchase price allocation of assets acquired, resulted in an increase of $138,336 to Goodwill, $168,438 to Intangible Assets (net of additional amortization) and $370,125 to Contingent Purchase Consideration as of September 30, 2015. In addition, certain previously reported contingent assets and liabilities of $87,941 were eliminated. The increase to Intangible Assets required an increase in previously reported amortization expense by $32,549 and $65,098 for the three and nine months ended September 30, 2015, respectively.
[3] Fair Value of Intangible Assets In Connection with Business Acquisition. During the three months ended June 30, 2015, the Company accounted for the acquisition of Multipay (see Note 7) as a business combination using the acquisition method of accounting utilizing an incorrect valuation. The adjustment to reflect the correct valuation, including the purchase price allocation of assets acquired, resulted in an increase of $166,689 to Goodwill, $200,986 to Intangible Assets (net of $32,549 additional amortization) and $370,125 to Contingent Purchase Consideration as of June 30, 2015. In addition, certain previously reported contingent assets and liabilities of $149,848 were eliminated.
[4] Intangible Assets-Capitalized Software. As previously discussed, related to the quarter ended March 31, 2015, the Company determined that previously capitalized software should have been expensed in accordance with US GAAP. Accordingly, a reduction of $200,000 to Intangible Assets and an increase to Research and Development Expenses is made as of and for the six months ended June 30, 2015. The net increase to Intangible Assets, after considering the increase of $200,986 related to the Multipay acquisition in (1) above and the reduction due to the software incorrectly being capitalized of $200,000 is $986 as of June 30, 2015.
[5] Intangible Assets-Capitalized Software. As previously discussed, related to the quarter ended March 31, 2015, the Company determined that previously capitalized software should have been expensed in accordance with US GAAP. Accordingly, a reduction of $200,000 to Intangible Assets and an increase to Research and Development Expenses is made as of and for the nine months ended September 30, 2015. The net decrease to Intangible Assets, after considering the increase of $168,438 related to the Multipay acquisition in (1) above and the reduction due to the internal use software incorrectly being capitalized of $200,000 is $31,562 as of September 30, 2015.
[6] Debt Issuance Costs. The capitalization of debt issuance costs resulted in a reduction to convertible notes payable of and a corresponding decrease general and administrative of $226,700 and $286,700 for the three and nine months ended September 30, 2015, respectively. The net decrease to General and Administrative expenses, after considering the decrease of $1,730,352 and $1,716,695 related to stock-based compensation in (4) above and the capitalization of debt issuance costs of $226,700 and $286,700 is $1,957,052 and $2,003,395 for the three and nine months ended September 30, 2015, respectively.
[7] Stock-Based Compensation. The adjusted fair value analysis of the Company's stock-based compensation resulted in a decrease to general and administrative expenses of $1,730,352 and $1,716,695 for the three and nine months ended September 30, 2015, respectively.
[8] Debt Issuance Costs. The capitalization of debt issuance costs as a reduction of the debt principal resulted in a reduction to convertible notes payable of $60,000 and a corresponding decrease to general and administrative for the three and six months ended June 30, 2015. The decrease to General and Administrative expenses, after considering the increase of $13,656 related to stock-based compensation in (4) above and the capitalization of debt issuance costs of $60,000 is $46,344 for the three and six months ended June 30, 2015.
[9] Stock-Based Compensation. The adjusted fair value of the Company's stock-based compensation resulted in an increase to general and administrative expenses of $13,656 for the three and six months ended June 30, 2015.
[10] Derivative Liability. As described in Notes 9 and 10, at December 31, 2015, the fair value of derivative liabilities related to convertible and other notes payable, have now been estimated based on the Monte Carlo Simulation Model because it considers the effect of the down round feature (probability of a triggering capital raise) along with the other assumptions associated with the Black-Scholes option pricing model. The previously used methodology by the Company incorrectly did not take into consideration the probability of a financing at a price that would trigger the instruments down round provision. The adjusted fair value of the Company's derivatives associated with its Convertible Notes and other Notes Payable resulted in an increase of $1,545,232 to the Derivative Liability as of September 30, 2015. For the three and nine months ended September 30, 2015, the Company's derivative expense is increased by $3,767,837 and $6,132,939, respectively. In addition, the finalized fair value analysis of the Company's embedded derivatives associated with its Convertible and other Notes Payable required a reduction to the previously recorded Debt Discount which resulted in an increase (decrease) of interest expense of $11,919 and $(28,667) for the three and nine months ended September 30, 2015, respectively. The adjusted fair value analysis for the derivatives required a decrease to Convertible Notes Payable of $271,655 and an increase to Notes Payable of $159,357 as of September 30, 2015.
[11] Derivative Liability. As described in Notes 9 and 10, at December 31, 2015, the fair value of the derivative liabilities related to convertible and other notes payable have now been estimated based on the Monte Carlo Simulation Model because it considers the effect of the down round feature (probability of a triggering capital raise) along with the other assumptions associated with the Black-Scholes option pricing model. The previously used methodology by the Company incorrectly did not take into consideration the probability of a financing at a price that would trigger the instruments down round provision. The adjusted fair value of the Company's derivatives associated with its Convertible and other Notes Payable resulted in a decrease of $907,123 to the Derivative Liability as of June 30, 2015. For the three and six months ended June 30, 2015, the Company's derivative expense is reduced by $815,021. In addition, the finalized fair value analysis of the Company's derivatives associated with its Convertible and other Notes Payable required a reduction to the previously recorded Debt Discount and interest expense by $45,685 for the three and six months ended June 30, 2015.