10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

or

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________________ to __________________

Commission file number: 000-54887

Bright Mountain Acquisition Corporation

(Exact name of registrant as specified in its charter)

Florida	27-2977890
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

6400 Congress Avenue, Suite 2050, Boca Raton, Florida	33487
(Address of principal executive offices)	(Zip Code)

561-998-2440

(Registrant's telephone number, including area code)

not applicable

(Former name, former address and former fiscal year, if changed since last report)

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 such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, 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). þ Yes ¨ No

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 the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	þ

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

As of November 6, 2015 the issuer had 35,600,059 shares of its common stock outstanding.

TABLE OF CONTENTS

		Page No.
	PART I - FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS.	1
ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.	21
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.	26
ITEM 4.	CONTROLS AND PROCEDURES.	26
	PART II - OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS.	27
ITEM 1A.	RISK FACTORS.	27
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.	27
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES.	27
ITEM 4.	MINE SAFETY DISCLOSURES.	27
ITEM 5.	OTHER INFORMATION.	27
ITEM 6.	EXHIBITS.	27

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Various statements in this report contain or may contain forward-looking statements that are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements were based on various factors and were derived from utilizing numerous assumptions and other factors that could cause our actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to:

· our history of losses and our ability to continue as a going concern,

· our limited operating history,

· our ability to raise capital,

· our dependence on our relationships with Amazon, eBay and PayPal,

· acquisitions of new businesses and our ability to integrate those businesses into our operations,

· dependence on Chief Executive Officer and our ability to hire qualified personnel,

· third party content,

· possible problems with our network infrastructure,

· the illiquid nature of our common stock,

· the impact of Federal securities laws on the trading in our common stock once a market is established,

· control of our company by our management,

· our corporate governance practices,

· dilution to our shareholders from the conversion of outstanding shares of preferred stock and the payment of dividends on those shares in shares of our common stock, and

· the ability of our board of directors to issue shares of our blank check preferred stock.

Most of these factors are difficult to predict accurately and are generally beyond our control. You should consider the areas of risk described in connection with any forward-looking statements that may be made herein. Readers are cautioned not to place undue reliance on these forward-looking statements and readers should carefully review this report, our Annual Report on Form 10-K for the year ended December 31, 2014, as amended, and our other filings with the Securities and Exchange Commission in their entirety. Except for our ongoing obligations to disclose material information under the Federal securities laws, we undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events. These forward-looking statements speak only as of the date of this report, and you should not rely on these statements without also considering the risks and uncertainties associated with these statements and our business.

OTHER PERTINENT INFORMATION

Unless specifically set forth to the contrary, when used in this report the terms “Bright Mountain", the “Company,” "we", "us", "our" and similar terms refer to Bright Mountain Acquisition Corporation, a Florida corporation formerly known as Bright Mountain Holdings, Inc., and its subsidiaries. In addition, when used in this report, “third quarter of 2015” refers to the three months ended September 30, 2015, “third quarter of 2014” refers to the three months ended September 30, 2014, “2015” refers to the year ending December 31, 2015 and “2014” refers to the year ended December 31, 2014.

Unless specifically set forth to the contrary, the information which appears on our website at www.bmaq.com is not part of this report.

PART 1 - FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30,			December 31,
	2015			2014
	(unaudited)
ASSETS
Current Assets
Cash	$	354,421		$	590,236
Accounts Receivable		44,376			4,110
Prepaid Costs and Expenses		84,118			86,298
Inventories		1,065,732			776,448
Total Current Assets		1,548,647			1,457,092
Fixed Assets, net		50,057			38,074
Website Acquisition Assets, net		750,785			443,222
Other Assets		15,547			12,580
Total Assets	$	2,365,036		$	1,950,968
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	262,316		$	270,323
Premium Finance Loan Payable		18,604			47,866
Total Liabilities		280,920			318,189
Commitments and contingencies (Note 7)
Shareholders' equity
Preferred stock, par value $0.01, 20,000,000 shares authorized, 5,200,000 issued and 4,400,000 outstanding respectively
Series A, 2,000,000 shares designated, 1,900,000 and 1,600,000 shares issued and outstanding		19,000			16,000
Series B, 1,000,000 shares designated, 1,000,000 and 1,000,000 shares issued and outstanding		10,000			10,000
Series C, 2,000,000 shares designated, 1,800,000 and 1,800,000 shares issued and outstanding		18,000			18,000
Series D, 2,000,000 shares designated, 500,000 and 0 shares issued and outstanding		5,000			—
Common stock, par value $.01, 324,000,000 shares authorized, 35,760,059 issued 35,400,059 outstanding, and 33,483,234 issued 33,123,234 outstanding, respectively.		357,600			334,832
Treasury Stock (360,000 shares)		(2,501	)		(2,501	)
Additional paid-in-capital		7,242,795			5,741,109
Accumulated Deficit		(5,565,778	)		(4,484,661	)
Total shareholders’ equity		2,084,116			1,632,779
Total liabilities and shareholders’ equity	$	2,365,036		$	1,950,968

See accompanying notes to unaudited condensed consolidated financial statements

1

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
Product Sales	$	335,750		$	245,812		$	921,322		$	675,130
Revenues from Services		95,264			31,031			191,722			66,876
Total Revenue		431,014			276,843			1,113,044			742,006
Cost of sales - Product		273,227			186,611			733,146			526,387
Cost of sales - Services		—			—			—			—
Gross profit		157,787			90,232			379,898			215,619
Selling, general and administrative expenses		516,439			435,204			1,459,654			1,325,199
Loss from operations		(358,652	)		(344,972	)		(1,079,756	)		(1,109,580	)
Other income (expense)
Interest income		10			7			23			41
Interest expense		(493	)		—			(1,384	)		—
Total other income (expense), net		(483	)		7			(1,361	)		41
Net loss before taxes		(359,135	)		(344,965	)		(1,081,117	)		(1,109,539	)
Income taxes		—			—			—			—
Net Loss		(359,135	)		(344,965	)		(1,081,117	)		(1,109,539	)
Preferred stock dividends
Series A, Series B, Series C & Series D preferred		101,939			49,377			247,397			139,666
Total preferred stock dividends		101,939			49,377			247,397			139,666
Net loss attributable to common shareholders	$	(461,074	)	$	(394,342	)	$	(1,328,514	)	$	(1,249,205	)
Basic and diluted net loss per share	$	(0.01	)	$	(0.01	)	$	(0.04	)	$	(0.04	)
Weighted average shares outstanding – Basic and diluted		35,108,850			33,053,785			34,245,752			32,474,590

See accompanying notes to unaudited condensed consolidated financial statements

2

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

 (formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

 CONDENSED CONSOLIDATED STATEMENTS OF CHANGE IN SHAREHOLDERS’ EQUITY

For the nine months ended September 30, 2015

(Unaudited)

									Additional									Total
	Preferred Stock				Common Stock				Paid-in			Treasury			Accumulated			Shareholders'
	Shares		Amount		Shares		Amount		Capital			Shares			Deficit			Equity
Balance -December 31, 2014		4,400,000	$	44,000		33,123,234	$	334,832	$	5,741,109		$	(2,501	)	$	(4,484,661	)	$	1,632,779
Common stock issued for services ($.75/share)						57,400		574		36,776									37,350
Sale of common stock for cash ($.50/share) pursuant to Subscription Agreement						1,580,000		15,800		774,200									790,000
Sale of Series A preferred stock for cash ($.50/share) pursuant to Subscription Agreement		300,000		3,000						147,000									150,000
Sale of Series D preferred stock for cash ($.50/share) pursuant to Subscription Agreement		500,000		5,000						245,000									250,000
Common stock issued for 10% dividend payment pursuant to Series A preferred stock Subscription Agreements						160,000		1,600		(1,600	)								—
Common stock issued for 10% dividend payment pursuant to Series B preferred stock Subscription Agreements						100,000		1,000		(1,000	)								—
Common stock issued for 10% dividend payment pursuant to Series C preferred stock Subscription Agreements						29,425		294		(294	)								—
Stock option compensation expense										42,604									42,604
Common Stock issued for acquisitions ($0.75/share)						350,000		3,500		259,000									262,500
Net loss for the nine months ended September 30, 2015																(1,081,117	)		(1,081,117	)
Balance – September 30, 2015		5,200,000	$	52,000		35,400,059	$	357,600	$	7,242,795		$	(2,501	)	$	(5,565,778	)	$	2,084,116

See accompanying notes to unaudited condensed consolidated financial statements

3

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	For the Nine Months Ended
	September 30,
	2015			2014
Cash flows from operating activities:
Net Loss	$	(1,081,117	)	$	(1,109,539	)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation		10,879			8,220
Amortization		131,937			95,761
Stock option compensation expense		42,604			51,898
Common stock issued for services		37,350			20,000
Changes in operating assets and liabilities:
Accounts Receivable		(40,266	)		(2,250	)
Inventory		(289,284	)		(347,839	)
Prepaid costs and expenses		2,180			1,368
Other assets		(2,967	)		(7,880)
Accounts payable		(19,659	)		25,818
Net cash used in operating activities		(1,208,343	)		(1,264,443	)
Cash flows from investing activities:
Purchase of fixed assets		(22,862	)		(9,566	)
Purchase of websites		(162,000	)		(572,000	)
Net cash used in investing activities		(184,862	)		(581,566	)
Cash flows from financing activities:
Sale of common stock		790,000			675,000
Sale of Preferred stock		400,000			400,000
Payments on premium finance loan		(32,610	)		(11,509	)
Net cash provided by financing activities		1,157,390			1,063,491
Net decrease in cash		(235,815	)		(782,518	)
Cash at beginning of period		590,236			1,162,632
Cash at end of period	$	354,421		$	380,114
Supplemental Disclosure of Cash Flow Information
Cash paid for:
Interest	$	1,384		$	—
Income Taxes	$	—		$	—
Non-Cash Investing and financing activities
Common stock issued for purchase of websites	$	262,500		$	—
Payable for purchase of websites	$	27,000		$	—

See accompanying notes to unaudited condensed consolidated financial statements

4

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Nature of Operations

Bright Mountain Acquisition Corporation and subsidiaries, formerly known as Bright Mountain Holdings, Inc., and subsidiaries ("BMAQ" or the "Company," "we," "us," "our", "Bright Mountain") is a Florida corporation formed on May 20, 2010. Its wholly owned subsidiaries, Bright Mountain LLC, and The Bright Insurance Agency, LLC, were formed as Florida limited liability companies in May 2011.

The Company is a media holding company of online assets.  We sell various products through our proprietary websites and retail location, and through third party e-commerce distributor portals.  Our websites provide content designed to attract and retain targeted Internet audiences.  We generate revenues from two segments, product sales and services.  Services consists of advertising revenue and subscription revenue.  Our advertising revenue is generated primarily through the display of paid listings as well as display advertisements appearing on our websites.

Our websites contain a number of sections with demographically oriented information including originally written news content, blogs, forums, career information, and video.  Our websites are:

· BMAQ.com;

· Bootcamp4me.com;

· Bootcamp4me.org;

· Brightwatches.com;

· Certifiedwolfhunter.com;

· Coastguardnews.com;

· Fdcareers.com;

· Fireaffairs.com;

· FireFightingNews.com;

· Gopoliceblotter.com;

· JQPublicblog.com;

· Leoaffairs.com;

· PopularMilitary.com;

· Teacheraffairs.com;

· Thebravestonline.com;

· Thebright.com;

· USMCLife.com;

· Wardocumentaryfilms.com;

· Welcomehomeblog.com; and

· 360fire.com

Basis of Presentation

The interim unaudited condensed consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of the Company’s management, all adjustments necessary to present fairly the consolidated results of operations and cash flows for the nine months ended September 30, 2015, and the consolidated financial position as of September 30, 2015 have been made. The results of operations for such interim period is not necessarily indicative of the operating results expected for the full year.

5

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

Principles of Consolidation

The interim unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Bright Mountain LLC and The Bright Insurance Agency, LLC. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

Our condensed consolidated financial statements are prepared in accordance with Accounting Principles Generally Accepted in the United States ("GAAP"). These accounting principles require management to make certain estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments, and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of our consolidated financial statements as well as reported amounts of revenue and expenses during the periods presented. Our condensed consolidated financial statements would be affected to the extent there are material differences between these estimates and actual results. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management's judgment in its application. There are also areas in which management's judgment in selecting any available alternative would not produce a materially different result. Significant estimates included in the accompanying condensed consolidated financial statements include the fair value of acquired assets for purchase price allocation in business combinations, valuation of inventory, valuation of intangible assets, estimates of amortization period for intangible assets, estimates of depreciation period for fixed assets, valuation of equity based transactions, and the valuation allowance on deferred tax assets.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Fair Value of Financial Instruments and Fair Value Measurements

The Company measures its financial assets and liabilities in accordance with GAAP. For certain of our financial instruments, including cash, accounts payable, accrued expenses, and the short-term portion of long-term debt, the carrying amounts approximate fair value due to their short maturities.

We adopted accounting guidance for financial and non-financial assets and liabilities in accordance with ASC 820 "Fair Value Measurements and Disclosures."  This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use.

6

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

Accounts Receivable

Accounts receivable are recorded at fair value on the date revenue is recognized. The Company provides allowances for doubtful accounts for estimated losses resulting from the inability of its customers to repay their obligation. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to repay, additional allowances may be required. The Company provides for potential uncollectible accounts receivable based on specific customer identification and historical collection experience adjusted for existing market conditions. If market conditions decline, actual collection experience may not meet expectations and may result in decreased cash flows and increased bad debt expense.

The policy for determining past due status is based on the contractual payment terms of each customer, which are generally net 30 or net 60 days. Once collection efforts by the Company and its collection agency are exhausted, the determination for charging off uncollectible receivables is made.

Inventories

Inventories are stated at the lower of cost or market using the first in, first out (FIFO) method. Provisions have been made to reduce excess or obsolete inventories to their net realizable value.

Revenue Recognition

The Company recognizes revenue on our products in accordance with ASC 605-10, "Revenue Recognition in Financial Statements."  Under these guidelines, revenue is recognized on sales transactions when all of the following exist: persuasive evidence of an arrangement did exist; delivery of product has occurred; the sales price to the buyer is fixed or determinable; and collectability is reasonably assured. The Company has several revenue streams generated directly from its website and specific revenue recognition criteria for each revenue stream is as follows:

·

Sale of merchandise directly to consumers: The Company's product sales are recognized either FOB shipping point or FOB destination, dependent on the customer. Revenues are therefore recognized at point of ownership transfer, accordingly.

·

Advertising revenue is received directly form companies who pay the Company a monthly fee for advertising space.

·

Advertising revenues are generated by users "clicking" on website advertisements utilizing several ad network partners: Revenues are recognized, on a net basis, upon receipt of payment by the ad network partner since the revenue is not determinable until it is received.

·

Subscription revenues are generated by the sale of access to career postings on one of our websites. The term of the subscriptions range from one month to twelve months. Revenues are recognized, on a net basis, over the term of the subscription period. All sales are final per the subscription Terms of Use.

The Company follows the guidance of ASC 605-50-25, "Revenue Recognition, Customer Payments."  Accordingly, any incentives received from vendors are recognized as a reduction of the cost of products included in inventories. Promotional products or samples given to customers or potential customers are recognized as a cost of goods sold. Cash incentives provided to our customers are recognized as a reduction of the related sale price, and, therefore, are a reduction in sales.

Cost of Sales

Components of costs of sales include product costs, shipping costs to customers and any inventory adjustments.

Shipping and Handling Costs

The Company includes shipping and handling fees billed to customers as revenues and shipping and handling costs for shipments to customers as cost of revenues.

7

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

Sales Return Reserve Policy

Our return policy generally allows our end users to return purchased products for refund or in exchange for new products. We estimate a reserve for sales returns, if any, and record that reserve amount as a reduction of sales and as a sales return reserve liability. Sales to consumers on our web site generally may be returned within a reasonable period of time.

Product Warranty Reserve Policy

The Company is a retail distributor of products and warranties are the responsibility of the manufacturer. Therefore, the Company does not record a reserve for product warranty

Property and Equipment

Property and equipment is recorded at cost. Depreciation is computed using the straight-line method based on the estimated useful lives of the related assets of seven years for office furniture and equipment, and five years for computer equipment. Leasehold improvements, if any, would be amortized over the lesser of the lease term or the useful life of the improvements. Expenditures for maintenance and repairs along with fixed assets below our capitalization threshold of $500 are expensed as incurred.

Website Development Costs

The Company accounts for its website development costs in accordance with ASC 350-50 "Website Development Costs."  These costs, if any, are included in intangible assets in the accompanying condensed consolidated financial statements or expensed immediately if the Company cannot support recovery of these costs from positive future cash flows.

ASC 350-50 requires the expensing of all costs of the preliminary project stage and the training and application maintenance stage and the capitalization of all internal or external direct costs incurred during the application and infrastructure development stage. Upgrades or enhancements that add functionality are capitalized while other costs during the operating stage are expensed as incurred. The Company amortizes the capitalized website development costs over an estimated life of five years.

As of September 30, 2015 and September 30, 2014, all website development costs have been expensed.

Amortization and Impairment of Long-Lived Assets

Amortization and impairment of long-lived assets are non-cash expenses relating primarily to website acquisitions. The Company accounts for long-lived assets in accordance with the provisions of ASC 360-10 "Accounting for the Impairment or Disposal of Long-Lived Assets." This statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Website acquisition costs are amortized over five years. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. While it is likely that we will have significant amortization expense as we continue to acquire websites, we believe that intangible assets represent costs incurred by the acquired website to build value prior to acquisition and the related amortization and impairment charges of assets, if applicable, are not ongoing costs of doing business. Non-cash impairment loss is included in selling, general and administrative expenses on the accompanying statement of operations. For the three months ended September 30, 2015 and September 30, 2014, non-cash impairment expense was $0 and $0 respectively. For the nine months ended September 30, 2015 and September 30, 2014, non-cash amortization expense was $131,937 and $95,761 respectively.

8

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

ASC 360-10 requires the review of the residual value and useful life of long-lived assets and certain identifiable intangibles at least at each financial year end.  The Company revised the useful life of its website acquisition assets with effect from January 1, 2015. The revision was accounted for prospectively as a change in accounting estimates and as a result, the Company’s website acquisition assets costs are amortized over five years.

Stock-Based Compensation

The Company accounts for stock-based instruments issued to employees for services in accordance with ASC Topic 718 "Compensation – Stock Compensation." ASC Topic 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity based compensation issued to employees. The value of the portion of an employee award that is ultimately expected to vest is recognized as an expense over the requisite service periods using the straight-line attribution method. The Company accounts for non-employee share-based awards in accordance with the measurement and recognition criteria of ASC Topic 505-50, "Equity-Based Payments to Non-Employees."  The Company estimates the fair value of stock options by using the Black-Scholes option-pricing model. Non-cash stock-based stock option compensation is expensed over the requisite service period and are included in selling, general and administrative expenses on the accompanying condensed consolidated statement of operations. For the nine months ended September 30, 2015 and September 30, 2014, non-cash stock-based stock option compensation expense was $42,604 and $51,898 respectively.

Advertising, Marketing and Promotion Costs

Advertising, marketing and promotion expenses are expensed as incurred and are included in selling, general and administrative expenses on the accompanying statement of operations. For the nine months ended September 30, 2015 and September 30, 2014, advertising, marketing and promotion expense was $17,541 and $83,069, respectively.

Income Taxes

We use the asset and liability method to account for income taxes. Under this method, deferred income taxes are determined based on the differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements which will result in taxable or deductible amounts in future years and are measured using the currently enacted tax rates and laws. A valuation allowance is provided to reduce net deferred tax assets to the amount that, based on available evidence, is more likely than not to be realized.

The Company follows the provisions of ASC 740-10 "Accounting for Uncertain Income Tax Positions." When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

As of September 30, 2015, tax years 2014, 2013, and 2012 remain open for IRS audit. The Company has received no notice of audit or any notifications from the IRS for any of the open tax years.

9

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

Basic and Diluted Net Earnings (Loss) Per Common Share

In accordance with ASC 260-10 "Earnings Per Share," basic net earnings (loss) per common share is computed by dividing the net earnings (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed using the weighted average number of common and dilutive common stock equivalent shares outstanding during the period. As of September 30, 2015 and September 30, 2014 there were approximately 1,605,000 and 1,500,000 common stock equivalent shares outstanding as stock options, respectively and 5,200,000 and 3,300,000 common stock equivalents from the conversion of preferred stock, respectively. Equivalent shares were not utilized as the effect is anti-dilutive.

Segment Information

In accordance with the provisions of ASC 280-10 "Disclosures about Segments of an Enterprise and Related Information," the Company is required to report financial and descriptive information about its reportable operating segments. The Company has two identifiable operating segments based on the activities of the Company in accordance with the ASC 28-10. The Company's two segments are product sales and services as of September 30, 2015. The product sales segment sells merchandise to customers thorough e-commerce distributor portals and directly to consumers through our proprietary websites and retail location. The services segment is focused on producing advertising revenue generated by users "clicking" on website advertisements utilizing several ad network partners and direct advertisers and subscription revenue generated by the sale of access to career postings on one of our websites.

Recent Accounting Pronouncements

In June 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.”  The update gives entities a single comprehensive model to use in reporting information about the amount and timing of revenue resulting from contracts to provide goods or services to customers. The proposed ASU, which would apply to any entity that enters into contracts to provide goods or services, would supersede the revenue recognition requirements in Topic 605 "Revenue Recognition," and most industry-specific guidance throughout the Industry Topics of the Codification. Additionally, the update would supersede some cost guidance included in Subtopic 605-35 "Revenue Recognition – Construction-Type and Production-Type Contracts." The update removes inconsistencies and weaknesses in revenue requirements and provides a more robust framework for addressing revenue issues and more useful information to users of financial statements through improved disclosure requirements. In addition, the update improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. The update is effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. All other entities may apply the guidance in ASU No. 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities also may apply the guidance in Update 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, and interim reporting periods within annual reporting periods beginning one year after the annual reporting period in which the entity first applies the guidance in ASU No. 2014-09. We are currently reviewing the provisions of this ASU to determine if there will be any impact on our results of operations, cash flows or financial condition.

In June 2014, the FASB issued ASU 2014-12, "Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period." This ASU provides more explicit guidance for treating share-based payment awards that require a specific performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2015. We do not expect the adoption of this guidance to have a material impact on the consolidated financial statements.

10

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern,” which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures.  ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter.  Early application is permitted.  The adoption of ASU 2014-15 is not expected to have a material effect on the condensed consolidated financial statements.

In July 2015, FASB issued Accounting Standards Update (“ASU”) No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory” more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS).  The amendments in this ASU do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of this Update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. For public business entities, this ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, this ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments in this ASU should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period.We are currently reviewing the provisions of this ASU to determine if there will be any impact on our results of operations, cash flows or financial condition.

All other newly issued accounting pronouncements, but not yet effective, have been deemed either immaterial or not applicable.

NOTE 2 - GOING CONCERN

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company sustained a net loss of $1,081,117 and used cash in operating activities of $1,208,343 for the nine months ended September 30, 2015. The Company had an accumulated deficit of $5,565,778 at September 30, 2015. These factors raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time. The Company's continuation as a going concern is dependent upon its ability to generate revenues and its ability to continue receiving investment capital and loans from related parties to sustain its current level of operations.

Management plans to continue to raise additional capital through private placements and is exploring additional avenues for future fund-raising through both public and private sources.

The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

NOTE 3 – ACQUISITIONS

On April 1, 2015, the Company entered into Website Asset Purchase Agreement with an unrelated third party. As consideration for the purchase, the Company paid $50,000 and issued 250,000 shares of its common stock with a fair value of $187,500. In conjunction with the Website Asset Purchase Agreement, the Company also entered into a Website Management Agreement. Under the terms of the Website Management Agreement, which expires on December 31, 2017, the Company agreed to pay $30,000 per year for full-time services in managing the website.  The acquisition was accounted following ASC 805 "Business Combinations." The operations of the website prior to the Company's acquisition were immaterial; therefore, pro forma information will not be presented. There were no costs of acquisition incurred as a result of this purchase.

11

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

As previously disclosed in our Annual Report on Form 10-K for the year ending December 31, 2014, as amended, on April 1, 2015, the Company entered into a Website Asset Purchase Agreement with an unrelated third party for an aggregate purchase price of $102,000. The purchase price consisted of a cash payment of $27,000, payable at a rate of $1,500 per month beginning on the closing date, and 100,000 shares of the Company’s common stock with a fair value of $75,000. The asset acquisition was accounted for as a purchase of assets in accordance with Rule 11-01 (d) of Regulation S-X and ASC 805-10-55-4. There were no costs of acquisition incurred as a result of the asset purchase.

On April 14, 2015, the Company entered into a Website Asset Purchase Agreement with an unrelated third party for a purchase price of $50,000 in cash.  The acquisition was accounted following ASC 805 "Business Combinations."  The operations of the website prior to the Company's acquisition were immaterial; therefore, pro forma information was presented. There were no costs of acquisition incurred as a result of this purchase.

On June 1, 2015, the Company entered into a Website Asset Purchase Agreement with an unrelated third party for a purchase price of $50,000.  The purchase price consisted of a cash payment of $50,000, payable at closing.  The asset acquisition was accounted for as a purchase of assets in accordance with Rule 11-01 (d) of Regulation S-X and ASC 805-10-55-4. There were no costs of acquisition incurred as a result of the asset purchase.

At September 30, 2015 and December 31, 2014, website acquisition assets consisted of the following:

	September 30,			December 31,
	2015			2014
Website Acquisition Assets	$	1,029,728		$	614,944
Less: Accumulated Amortization		(278,943	)		(147,006	)
Less:  Impairment Loss		—			(24,716	)
Website Acquisition Assets, net	$	750,785		$	443,222

Non-cash amortization expense for the nine months ending September 30, 2015 and September 30, 2014 was $131,937 and $95,761 respectively.

NOTE 4 – INVENTORIES

At September 30, 2015 and December 31, 2014 inventories consisted of the following:

	September 30,		December 31,
	2015		2014
Product Inventory: Other	$	11,593	$	6,488
Product Inventory: Clocks and Watches		1,054,139		769,960
Total Inventory Balance	$	1,065,732	$	776,448

NOTE 5 – PREMIUM FINANCE LOAN PAYABLE

Premium finance loans payable related to the financing of the Company’s Error & Omission (E&O) insurance coverage for the period September 6, 2015 through September 6, 2016.  The Company financed $18,604 of the total policy premium of $25,396 (including interest and fees of $643) from Pro Premium Finance Company, Inc.  The term of the loan are nine equal payments of $ 2,131 per month beginning October 6, 2014.  The principal balance due was $18,604 at September 30, 2015.

12

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

NOTE 6 – SEGMENT INFORMATION

The Company has two identifiable segments as of September 30, 2015; products and services. The products segment sells merchandise to customers thorough e-commerce distributor portals and directly to consumers through our proprietary websites and retail location. The services segment is focused on producing advertising revenue generated by users "clicking" on website advertisements utilizing several advertising network partners and direct advertisers and subscription revenue generated by the sale of access to career postings on one of our websites.

The following information represents segment activity for the three and nine months ended September 30, 2015. Comparable information is not presented for the respective periods in 2014 as the Company only had one identifiable segment in the respective 2014 periods:

	For the three months ended September 30,								For the nine months ended September 30,
	2015								2015
	Products			Services		Total			Products			Services			Total
Revenues	$	335,750		$	95,264	$	431,014		$	921,322		$	191,722		$	1,113,044
Amortization	$	—		$	45,801	$	45,801		$	—		$	131,937		$	131,937
Depreciation	$	3,211		$	911	$	4,122		$	9,006		$	1,873		$	10,879
Loss from operations	$	(414,698	)	$	56,046	$	(358,652	)	$	(937,098	)	$	(142,658	)	$	(1,079,756	)
Segment Assets	$	1,537,101		$	827,935	$	2,365,036		$	1,537,101		$	827,935		$	2,365,036

The following information represents further detail on segment revenues for the three and nine months ended September 30, 2015 and 2014:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	(unaudited)				(unaudited)
	2015		2014		2015		2014
Revenue:
Product Sales	$	335,750	$	245,812	$	921,322	$	675,130
Services	$	95,264	$	31,031	$	191,722	$	66,876
Total Revenue	$	431,014	$	276,843	$	1,113,044	$	742,006

NOTE 7 – COMMITMENTS AND CONTINGENCIES

Leases

The Company leases its corporate offices at 6400 Congress Avenue, Suite 2050, Boca Raton, Florida 33487 under a long-term non-cancellable lease agreement, which contains renewal options. The lease, which was entered into on August 25, 2014 was amended on July 30, 2015 to increase the original approximate 2,014 square feet to approximately 4,450 square feet.  The term of the lease was extended and will terminate on March 14, 2019 at a current base rent of for a term of approximately $8,978 per month for the first twelve months with a 3% escalation each year. An additional security deposit of $2,500 was required. Rent is all-inclusive and includes electricity, heat, air-conditioning, and water. The original rent commencement date is October 11, 2014 and will expire on March 14, 2019.

Legal

From time-to-time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. As of September 30, 2015, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations.

13

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

Other Commitments

The Company entered into an Executive Employment Agreement with our Chief Executive Officer, with an effective date of June 1, 2014. Under the terms of this agreement, the Company will compensate the Chief Executive Officer with a base salary of $75,000 annually, and he is entitled to receive discretionary bonuses as may be awarded by the Company's Board of Directors from time to time. The initial term of the agreement is three years, and the Company may extend it for an additional one-year period upon written notice at least 180 days prior to the expiration of the term.

The Chief Executive Officer's base salary was increased to $125,000 annual effective October 1, 2015 upon recommendation of the Compensation Committee of the board of directors.

The agreement will terminate upon the Chief Executive Officer's death or disability. In the event of a termination upon his death, the Company is obligated to pay his beneficiary or estate an amount equal to one year base salary plus any earned bonus at the time of his death. In the event the agreement is terminated as a result of his disability, as defined in the agreement, he is entitled to continue to receive his base salary for a period of one year. The Company is also entitled to terminate the agreement either with or without case, and the Chief Executive Officer is entitled to voluntarily terminate the agreement upon one year's notice to the Company. In the event of a termination by the Company for cause, as defined in the agreement, or voluntarily by the Chief Executive Officer, the Company is obligated to pay him the base salary through the date of termination. In the event the Company terminates the agreement without cause, the Company is obligated to give him one years' notice of the Company's intent to terminate and, at the end of the one year period, pay an amount equal to two times his annual base salary together with any bonuses which may have been earned as of the date of termination. A constructive termination of the agreement will also occur if the Company materially breaches any term of the agreement or if a successor company to Bright Mountain Acquisition Corporation fails to assume the Company's obligations under the employment agreement. In that event, the Chief Executive Officer will be entitled to the same compensation as if the Company terminated the agreement without cause.

The employment agreement contains customary non-compete and confidentiality provisions. The Company also agreed to indemnify the Chief Executive Officer pursuant to the provisions of the Company's Amended and Restated Articles of Incorporation and Restated By-laws.

NOTE 8 – RELATED PARTIES

During the nine months ended September 30, 2015, a related party founder purchased 200,000 shares of the Company’s 10% Series A Convertible Preferred Stock (“Series A Stock") for $100,000.

During the nine months ended September 30, 2015, a related party purchased 500,000 shares of the Company’s 10% Series D Convertible Preferred Stock ("Series D Stock") for $250,000.

During the nine months ended September 30, 2015, a related party founder purchased 740,000 shares of the Company’s common stock for $370,000.

During the nine months ended September 30, 2015, a related party purchased 40,000 shares of the Company’s common stock for $20,000.

During the nine months ended September 30, 2015, a related party purchased 400,000 shares of the Company’s common stock for $200,000.

During the nine months ended September 30, 2015, a related party purchased 100,000 shares of the Company’s Series A Stock for $50,000.

14

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

NOTE 9 – SHAREHOLDERS’ EQUITY

Preferred Stock

The Company authorized 20,000,000 shares of preferred stock with a par value of $0.01.

At a meeting of the Board of Directors, held on November 1, 2013, the directors approved the designation of two million (2,000,000) shares of the Preferred Stock as Series A and authorized the issuance of the Series A Stock. Holders of the Series A Stock shall be entitled to the payment of a 10% dividend payable of preferred shares outstanding in shares of the Corporation’s common stock at a rate of one share of Common Stock for each ten shares of Series A Stock. Dividends shall be payable annually the tenth business day of January. Each holder of Series A Stock may convert all or part of the Series A Stock into shares of common stock on a share for share basis. Series A Stock shall rank superior to all other classes of stock upon liquidation.  Each share of Series A Stock shall automatically convert to common shares five years from the date of issuance or upon a change in control. On the tenth business day of January 2015 there were 160,000 shares of common stock dividends owed and payable to the Series A Stockholders of record as dividends on the Series A Stock. On January 10, 2015, the Company issued 160,000 shares of common stock due Series A Stockholders.  As of September 30, 2015, there were 127,589 shares of common stock dividends accrued but not earned until the tenth business day of January 2016 to the Series A Stockholders as dividends on the Series A Stock.

During the nine months ended September 30, 2015, the Company raised additional capital of $100,000 through issuance of 200,000 shares of its Series A Stock pursuant to the same private placement.  The shares were issued to the Company’s founder and CEO.

During the nine months ended September 30, 2015, the Company raised additional capital of $50,000 through issuance of 100,000 shares of its Series A Stock pursuant to the same private placement.  The shares were issued to a related party.

At a meeting of the Board of Directors, held on December 23, 2013, the directors approved the designation of one million (1,000,000) shares of the Preferred Stock as 10% Series B Convertible Preferred Stock (“Series B Stock”) and authorized the issuance of the Series B Stock. Holders of the Series B Stock shall be entitled to the payment of a 10% dividend payable of preferred shares outstanding in shares of the Corporation’s common stock at a rate of one share of common stock for each ten shares of Series B Stock. Dividends shall be payable annually the tenth business day of January. Each holder of Series B Stock may convert all or part of the Series B Stock into shares of common stock on a share for share basis. Series B Stock shall rank superior to all common stock upon liquidation. Each share of Series B Stock shall automatically convert to common shares five years from the date of issuance or upon a change in control. On the tenth business day of January 2015 there were 100,000 shares of common stock owed and payable to the Series B stockholders as dividends on the Series B Stock. On January 10, 2015, the Company issued 100,000 shares of common stock due Series B Stockholder.  As of September 30, 2015, there were 71,507 shares of common stock accrued but not earned until the tenth business day of January 2016 to the Series B Stockholder as dividends on the Series B Stock.

At a meeting of the Board of Directors, held on September 22, 2014, the directors approved the designation of two million (2,000,000) shares of the Preferred Stock as 10% Series C Convertible Preferred Stock (“Series C Stock”) and authorized the issuance of the Series C Stock. Holders of the Series C Stock shall be entitled to the payment of a 10% dividend payable of preferred shares outstanding in shares of the Corporation’s common stock at a rate of one share of common stock for each ten shares of Series C Stock. Dividends shall be payable annually the tenth business day of January. Each holder of Series C Stock may convert all or part of the Series C Stock into shares of common stock on a share for share basis. Series C Stock shall rank superior to all common stock upon liquidation. Each share of Series C Stock shall automatically convert to common shares five years from the date of issuance or upon a change in control. On the tenth business day of January 2015 there were 29,425 shares of common stock owed and payable to the Series C stockholders as dividends on the Series C Stock.  On January 10, 2015, the Company issued 29,425 shares of common stock due Series C Stockholder.  As of September 30, 2015, there were 128,712 shares of common stock accrued but not earned until the tenth business day of January 2016 to the Series C Stockholder as dividends on the Series C Stock.

15

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

At a meeting of the Board of Directors, held on March 20, 2015, the directors approved the designation of two million (2,000,000) shares of the Preferred Stock as Series D Stock and authorized the issuance of the Series D Stock. Holders of the Series D Stock shall be entitled to the payment of a 10% dividend payable of preferred shares outstanding in shares of the Corporation’s common stock at a rate of one share of common stock for each ten shares of Series D Stock. Dividends shall be payable annually the tenth business day of January. Each holder of Series D Stock may convert all or part of the Series D Stock into shares of common stock on a share for share basis. Series D Stock shall rank superior to all common stock upon liquidation. Each share of Series D Stock shall automatically convert to common shares five years from the date of issuance or upon a change in control. As of September 30, 2015, there were 25,616 shares of common stock accrued but not earned until the tenth business day of January 2016 to the Series D Stockholder as dividends on the Series D Stock.

During the nine months ended September 30, 2015, the Company raised additional capital of $250,000 through issuance of 500,000 shares of its Series D Stock pursuant to the same private placement.  The shares were issued to a related party.

Series A, B, C and D Stock are also subject to adjustment of the conversion terms due to future mergers, sales and stock splits, if any.

Common Stock

A) Stock issued for services

On January 19, 2015, the Company entered into an agreement with an employee, wherein the employee elected to receive 400 shares of the Company common stock at a fair value of $0.75 per share, or $300, in lieu of a bonus.  

On May 1, 2015, the Company entered into an agreement with an employee, wherein the employee elected to receive 2,000 shares of the Company common stock at a fair value of $0.65 per share, or $1,300, in lieu of a bonus.  

On May 22, 2015, the Company issued to a law firm 50,000 shares of its common stock at $0.65 per share, or $32,500, for services rendered. The Company valued these common shares based on the fair value at the date of grant.

On May 28, 2015, the Company issued to a consultant 5,000 shares of its common stock at $0.65 per share, or $3,250, for services rendered. The Company valued these common shares based on the fair value at the date of grant.

B)

Stock issued for dividends

During the nine months ended September 30, 2015, the Company issued 289,425 shares of its common stock as dividends to the holders of its Series A, Series B, and Series C Stock only.  Holders of the Series A, Series B, Series C, and Series D Stock are entitled to the payment of a 10% dividend payable in shares of the Company’s common stock at a rate of one share of common stock for each ten shares of Series A, Series B, Series C, or Series D Stock payable on the tenth business day of January commencing in 2016.

C)

Stock issued for acquisitions

During the nine months ended September 30, 2015, the Company issued 350,000 shares of its common stock for the acquisition of two websites. The Company valued these common shares at $262,500 or $0.75 per share, based on the fair value on the date of the acquisitions.

D)

Stock issued for cash

During the nine months ended September 30, 2015, the Company raised additional capital through issuance of common stock pursuant to a private placement whereby $790,000 in capital was raised through the issuance of 1,580,000 shares of common stock at $0.50 per share.

16

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

Stock Incentive Plan and Stock Option Grants to Employees and Directors

The Company accounts for stock option compensation issued to employees for services in accordance with ASC Topic 718. ASC Topic 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity based compensation issued to employees. The value of the portion of an employee award that is ultimately expected to vest is recognized as an expense over the requisite service periods using the straight-line attribution method. The Company accounts for non-employee share-based awards in accordance with the measurement and recognition criteria of ASC Topic 505-50, "Equity-Based Payments to Non-Employees." The Company estimates the fair value of stock options by using the Black-Scholes option-pricing model.

Stock options issued to consultants and other non-employees as compensation for services provided to the Company are accounted for based on the fair value of the services provided or the estimated fair market value of the option, whichever is more reliably measurable in accordance with ASC 505 "Equity" and ASC 718, including related amendments and interpretations. The related expense is recognized over the period the services are provided.

Stock Option Plans

The Company has adopted three stock option plans, the terms of which are substantially identical.  The purpose of each plan is to provide an incentive to attract and retain directors, officers, consultants, advisors and employees whose services are considered valuable, to encourage a sense of proprietorship and to stimulate an active interest of such persons into our development and financial success. Under each plan, the Company is authorized to issue incentive stock options intended to qualify under Section 422 of the Code, non-qualified stock options, stock appreciation rights, performance shares, restricted stock and long-term incentive awards.  The Compensation Committee of the Company's board of directors administers each plan. The material terms of each option which may be granted under each plan will contain the following terms: (i) that the purchase price of each share purchasable under an incentive option shall be determined by the Committee at the time of grant, (ii) the term of each option shall be fixed by the Committee, but no option shall be exercisable more than 10 years after the date such option is granted, and (iii) in the absence of any option vesting periods designated by the Committee at the time of grant, options shall vest and become exercisable in terms and conditions, consistent with the plan, as may be determined by the Committee and specified in the grant instrument.

On April 20, 2011, the Company's board of directors and majority stockholder adopted the 2011 Stock Option Plan (the "2011 Plan"), to be effective on January 3, 2011.  The Company has reserved for issuance an aggregate of 900,000 shares of common stock under the 2011 Plan. The maximum aggregate number of shares of Company stock that shall be subject to Grants made under the Plan to any individual during any calendar year shall be 180,000 shares. As of September 30, 2015, 81,000 shares were remaining under the 2011 Plan for future issuance.

On April 1, 2013, the Company's board of directors and majority stockholder adopted the 2013 Stock Option Plan (the "2013 Plan"), to be effective on April 1, 2013. The Company has reserved for issuance an aggregate of 900,000 shares of common stock under the 2013 Plan. The maximum aggregate number of shares of Company stock that shall be subject to grants made under the 2013 Plan to any individual during any calendar year shall be 180,000 shares. During the year ended December 31, 2014, 129,000 shares of common stock under the 2013 Plan were forfeited. As of September 30, 2015, 44,000 shares were remaining under the 2013 Plan for future issuance.

On May 22, 2015, the Company's board of directors adopted the 2015 Stock Option Plan (the "2015 Plan"), to be effective on May 22, 2015.  Effective August 3, 2015, and as disclosed in the Company's Information Statement on Schedule 14C, the Company's majority shareholders ratified the adoption of the 2015 Plan.  The Company has reserved for issuance an aggregate of 1,000,000 shares of common stock under the 2015 Plan. The maximum aggregate number of shares of Company stock that shall be subject to grants made under the 2015 Plan to any individual during any calendar year shall be 100,000 shares. As of September 30, 2015, 1,000,000 shares were remaining under the 2015 Plan for future issuance.

On March 23, 2015 the Company granted 40,000 ten-year stock options, which have an exercise price of $0.75 per share to a director.  The aggregate fair value of these options was computed at $17,223 or $0.4306 per option.

17

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

The Company estimates the fair value of share-based compensation utilizing the Black-Scholes option pricing model, which is dependent upon several variables such as the expected option term, expected volatility of our stock price over the expected option term, expected risk-free interest rate over the expected option term, expected dividend yield rate over the expected option term, and an estimate of expected forfeiture rates.

The Company believes this valuation methodology is appropriate for estimating the fair value of stock options granted to employees and directors, which is subject to ASC Topic 718 requirements. These amounts are estimates and thus may not be reflective of actual future results, nor amounts ultimately realized by recipients of these grants. The Company recognizes share-based compensation expense on a straight-line basis over the requisite service period for each award. The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted during the nine months ended September 30, 2015 and 2014:

	September 30,		September 30,
Assumptions:	2015		2014
Expected term (years)	6.25		6.25
Expected volatility	63	%	80	%
Risk-free interest rate	1.56	%	.38	%
Dividend yield	0	%	0	%
Expected forfeiture rate	0	%	0	%

The expected life is computed using the simplified method, which is the average of the vesting term and the contractual term. The expected volatility is based on an average of similar public companies historical volatility.  The risk-free interest rate is based on the U.S. Treasury yields with terms equivalent to the expected term of the related option at the time of the grant. Dividend yield is based on historical trends. While the Company believes these estimates are reasonable, the compensation expense recorded would increase if the expected life was increased, a higher expected volatility was used, or if the expected dividend yield increased.

The Company recorded $13,480 and $10,573 stock option expense for the three months ended September 30, 2015 and September 30, 2014 respectively.  The Company recorded $42,604 and $51,898 stock option expense for the nine months ended September 30, 2015 and September 30, 2014 respectively.  The $42,604 non-cash stock option expense for the nine months ended September 30, 2015 has been recognized as a component of general and administrative expenses in the accompanying unaudited condensed consolidated financial statements.

As of September 30, 2015 there were total unrecognized compensation costs related to non-vested share-based compensation arrangements of $58,611 to be recognized through September 2019.

The grant date weighted average for fair values of options granted in 2015 is $ 0.43 per option.  The intrinsic value as of September 30, 2015 was $0.

A summary of the Company's stock option activity during the nine months ended September 30, 2015 is presented below:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Balance Outstanding, December 31, 2014		1,565,000	$	0.21		6.3	$	317,986
Granted		40,000		0.75		—		—
Exercised		—		—		—		—
Forfeited		—		—		—		—
Expired		—		—		—		—
Balance Outstanding, September 30, 2015		1,605,000	$	0.31		6.8		349,983
Exercisable at September 30, 2015		1,123,500	$	0.22		6.1	$	317,986

18

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

Summarized information with respect to options outstanding under the three option plans at September 30, 2015 is as follows:

	Options Outstanding				Options Exercisable
Range or Exercise Price	Number Outstanding	Remaining Average Contractual Life (In Years)	Weighted Average Exercise Price		Number Exercisable	Weighted Average Exercise Price
0.14 - 0.78	1,605,000	6.8	$	0.31	1,123,500	$	0.22
	1,605,000	6.8	$	0.31	1,123,500	$	0.22

NOTE 10 – CONCENTRATIONS

The Company purchases a substantial amount of its products from two vendors; Citizens Watch Company of America, Inc., and Bulova Corporation. During the three months ended September 30, 2015, purchases from Citizens accounted for 17% and purchases from Bulova accounted for 24%, of the total products purchased as compared to 44% and 33%, respectively for the three months ended September 30, 2014.  During the nine months ended September 30, 2015, purchases from Citizens accounted for 33% and purchases from Bulova accounted for 26%, of the total products purchased as compared to 56% and 31%, respectively for the nine months ended September 30, 2014.  Although we have added additional product vendors in the past twelve month period, and we continue to expand our product line and vendor relationships, due to continued high concentration and reliance on these two vendors, the loss of one of these two vendors could adversely affect the Company's operations.

The Company sells many of its products through various e-commerce distribution portals, which include Amazon and eBay. During the three months ended September 30, 2015, these two distributor portals accounted for 64% and 6%, respectively of our total revenue. During the nine months ended September 30, 2015, these two distributor portals accounted for 72% and 5%, respectively of our total revenue. Although our direct product sales has increased to 10% of total product revenue as compared to 2% for the three months ended September 30, 2015 and 7% of total product revenue as compared to 1% for the nine months ended September 30, 2015, due to the high concentration and reliance on these two e-commerce distributor portals, the loss of a working relationship with either of these two distributor portals could adversely affect the Company's operations.

A substantial amount of payments for our products sold are processed through PayPal. A disruption in PayPal payment processing could have an adverse effect on the Company's operations and cash flow.

The Company obtained approximately 30% of its advertising revenue for the three months ended September 30, 2015 from Google AdSense, a third-party provider.  Paid listings are priced on a price per click basis and when a user submits a search query and then clicks on a Google AdSense paid listing displayed in response to the query, Google bills the advertiser that purchased the paid listing directly and shares a portion of the fee charged to the advertiser with the Company. The Company's remaining 70% of advertising revenue was from direct advertising and subscriptions.

Credit Risk

The Company minimizes the concentration of credit risk associated with its cash by maintaining its cash with high quality federally insured financial institutions. However, cash balances in excess of the FDIC insured limit of $250,000 are at risk. At September 30, 2015 and December 31, 2014, respectively, the Company had cash balances above the FDIC insured limit of approximately $0 and $173,933 respectively. The Company performs ongoing evaluations of its trade accounts receivable customers and generally does not require collateral.

Concentration of Funding

During the nine months ended September 30, 2015 the Company's funding was provided by the sale of shares of the Company's preferred stock and common stock to a related party officer and director, as well as to a principal shareholder.

19

BRIGHT MOUNTAIN ACQUISITION CORPORATION AND SUBSIDIARIES

(formerly known as Bright Mountain Holdings, Inc., and subsidiaries)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(Unaudited)

NOTE 11 – SUBSEQUENT EVENTS

On October 15, 2015 the Company entered into a six-month agreement with a consultant.  The consultant shall be compensated for services by a combination of $30,000 cash and 42,000 shares of stock to be paid $5,000 cash and 7,000 shares of common stock per month.

On October 13, 2015 the Board of Directors approved changing the name of the Company to Bright Mountain Media, Inc.  On October 26, 2015 the holders of a majority of the Company’s outstanding common stock approved the name change.  The name change will be effective on December 7, 2015 pending processing by the Financial Industry Regulatory Authority, Inc., (FINRA) in accordance with Rule 10b-17 of the Securities Exchange Act of 1934, as amended.

The Company entered into a premium finance agreement on October 26, 2015 with Flat Iron Capital for (1) the Company’s Director’s and Officer’s (D & O) insurance coverage for the period October 31, 2015 through October 30, 2016, and (2) the Employment Practices Liability insurance coverage for the period October 31, 2015 through October 30, 2016.  The Company financed $47,381 (including interest and fees of $1,742) from Flat Iron Capital.  The terms of the loan are nine equal payments of $5,247 per month beginning November 30, 2015.

On October 27, 2015 the Company granted 60,000 ten-year stock options, which have an exercise price of $0.65 per share, to a director.  The aggregate fair value of these options was computed at $22,391 or $0.3732 per option.

On October 27, 2015 the Company granted 100,000 ten-year stock options, which have an exercise price of $0.65 per share to an executive officer and director.  The aggregate fair value of these options was computed at $37,318 or $0.3732 per option.

On November 6, 2015 the Company raised additional capital through the issuance of its common stock pursuant to a private placement whereby $100,000 in capital was raised through the issuance of 200,000 shares of common stock at $0.50 per share to a related party founder and CEO.

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ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion of our unaudited condensed consolidated financial condition and results of operations for the three and nine months ended September 30, 2015 and 2014 should be read in conjunction with the unaudited condensed consolidated financial statements and the notes to those statements that are included elsewhere in this report. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2014, as amended, as filed with the Securities and Exchange Commission.  We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions to identify forward-looking statements.

Overview

We are a media holding company for online assets primarily targeted to the military and public safety sectors. We own and manage websites, which are customized to provide our niche users, including active, reserve and retired military, law enforcement, and fire fighters with information and news that which believe may be of interest to them. We generate revenues from two segments, product sales and services, which consists of advertising revenue and subscriptions. Within our product sales segment, we generate product sales revenue through e-commerce distributors portals such as Amazon and eBay, and direct sales though proprietary websites and a retail location.

We have grown from one website in March 2013 to 21 websites today, including our corporate website, BMAQ.com, and TheBright.com. Of the 21 websites currently in our portfolio, 18 were acquired; six were acquired in 2013, seven were acquired in 2014, and four were acquired in 2015. Additionally, we own the website BrightWatches.com which we developed and operate. Our strategy is to continue to build scale and expand our reach to our chosen demographic.

The following table provides comparative information on the quarterly growth in our revenues over the periods presented:

Quarterly Total Revenue

Bright Mountain plans to continue to grow its business through organic growth and acquisitions. The Bright Mountain strategy is to concentrate its marketing and development primarily to military and public safety audiences.

21

Although our selling, general and administrative expenses increased by 10% for the nine months ended September 30, 2015 as compared to the nine months ended September 30, 2014, our total revenue increased by 50% and our gross profit increased by 76% for the nine months ended September 30, 2015 compared to the nine months ending September 30, 2014. Further, revenue from services, comprised of advertising revenue and subscriptions, increased by 187% for the nine months ended September 30, 2015 as compared to the nine months ended September 30, 2014.  Our direct product sales and our e-commerce distributor product sales increased 652% and 28% respectively for the nine months ended September 30, 2015 as compared to the nine months ended September 30, 2014. These increases are being powered by website traffic increases of over 286% for the nine months ended September 30, 2015 as compared to the nine months ended September 30, 2014 as a result of organic growth and acquisitions.

Website Traffic (Visitors)
	Q1	Q2	Q3	Q4
2013	51,000	121,000	240,000	428,000
2014	1,475,000	2,048,000	4,110,000	5,509,000
2015	7,723,000	9,197,000	12,563,000

The following table provides information on the quarterly traffic to our proprietary websites over the periods presented:

Website Traffic (Visitors)

We believe that advertising and marketing budgets continue to grow with digital marketing and advertising channels having budget increases where traditional print channels are likely to continue to see budget reductions. Management continues to focus its efforts on continued growth of our digital media reach through organic growth and acquisitions of strategic websites consistent with its niche market.

We are committed to continue to add websites to our portfolio in 2015 and beyond with additional Internet properties that will fit strategically into our business objectives, subject to the availability of sufficient capital.

During September 2015 we launched www.MilitaryStarter.com, an online platform designed to help active duty military, veterans and their family members bring their dreams and ideas to fruition and receive support from the general public through crowdfunding campaigns.  Active and retired military members and their families are able to use the portal to seek funds for a wide variety of purposes, including business ideas, community and personal needs, such as starting or expanding a new business, helping homeless veterans or providing funding for educational and health care needs.  Creators are charged a small fee when registering a campaign and MilitaryStarter.com retains a customary percentage of the funds collected in the campaign. Unlike other crowdfunding sites, there are no minimum amounts which need to be raised for the creators to receive the funding. To further demonstrate our corporate commitment to the military community, MilitaryStarter.com will donate 10% of the revenue from the platform to select military non-profits that provide services and programs for active and veteran personnel, along with their families.

22

As a result of the consistent increase in both the overall site traffic as well as unique visitors to our websites, we believe our company has reached sufficient critical mass to begin the transition purely to a media company that generates substantially all of its revenue from the sales of advertising on its websites.  We believe that this natural evolution of our model will permit us to concentrate our efforts on growing our highest profit opportunities through the leverage of our website portfolios and growing Internet audience.  To begin implementing the next segment of our business model, we have begun a rebranding of our company which includes a name change to "Bright Mountain Media, Inc." which will be effective in early December 2015.  We have also begun hiring sales representatives to begin selling our advertising inventory to select, targeted brands and publishers.  Subject to the availability of additional capital, will begin adding more content staff including writers, graphic designers, videographers and social media personnel, as well as former military and public safety individuals to create additional content for our websites.

While we generated revenues of $1,113,044 for the nine months ended September 30, 2015, we reported a net loss of $1,081,117 and we do not anticipate that we will generate sufficient revenue to fund our operations for the next 12 months.  As a result, we will need to raise additional working capital to fund our ongoing operations as well as to provide additional funds for the further evolution of our business.  We presently estimate we will need to raise at least $3,500,000.  We do not have any firm commitments for this necessary capital and there are no assurances we will be successful in raising the capital upon terms and conditions, which are acceptable to us, if at all. If we are unable to raise the necessary additional working capital, absent a significant increase in our revenues, of which there is no assurance, we will be unable to continue to grow our company and may be forced to reduce certain operating expenses in an effort to conserve our working capital.

Going Concern

For the nine months ended September 30, 2015, we reported a net loss of $1,081,117, cash used in operating activities of $1,208,343 and we had an accumulated deficit of $5,565,778 at September 30, 2015.  The report of our independent registered public accounting firm on our audited consolidated financial statements at December 31, 2014 and 2013 and for the years then ended contains an explanatory paragraph regarding substantial doubt of our ability to continue as a going concern based upon our net losses, cash used in operations and accumulated deficit. These factors, among others, raise substantial doubt about our ability to continue as a going concern. Our unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. There are no assurances we will be successful in our efforts to generate revenues or report profitable operations or to continue as a going concern, in which event investors would lose their entire investment in our company.

Results of operations for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014

Revenue

The following table provides information regarding the revenues attributable to each our reportable segments for the three and nine months ended September 30, 2015 and 2014:

	Three Months Ended September 30,							Nine Months Ended September 30,
	(unaudited)							(unaudited)
	2015		2014		% Increase			2015		2014		% Increase
Revenue:
Product Sales	$	335,750	$	245,815		37	%	$	921,322	$	675,130		36	%
Revenue from Services	$	95,264	$	31,031		207	%	$	191,722	$	66,876		187	%
Total Revenue	$	431,014	$	276,843		56	%	$	1,113,044	$	742,006		50	%

23

The following table provides information on the growth in revenues in our product sales segment, which are attributable to e-commerce distributor sales and our direct sales of our products through our proprietary websites and our retail location:

	Three Months Ended September 30,							Nine Months Ended September 30,
	(unaudited)							(unaudited)
	2015		2014		% Increase			2015		2014		% Increase
Revenue:
Product Sales	$	335,750	$	245,812		37	%	$	921,322	$	675,130		36	%
Services	$	95,264	$	31,031		207	%	$	191,722	$	66,876		187	%
Total Revenue	$	431,014	$	276,843		56	%	$	1,113,044	$	742,006		50	%

The increase in both our direct product sales and revenues from services reflects the impact of increased visitor traffic as a result of additional websites acquired during 2014 and to date in 2015, and organic growth from cross traffic to our full family of sites.  The increase in distributor product sales reflects the impact of expanded product lines.

Cost of sales: We recognize cost of sales related to our product sales segment and do not have any cost of sales related to revenue from services. Cost of sales, as a percentage of total revenue, was 63% for the three months ended September 30, 2015 as compared to 67% for the three months ended September 30, 2014.  Cost of sales as a percentage of revenue from product sales was 81% and 80%, respectively, for those periods.  Cost of sales as a percentage of total revenues from product sales was 76% and 78%, respectively, for the nine months ended September 30, 2015.  

Selling, general and administrative expenses: Our total selling, general and administrative expenses for the three months ended September 30, 2015 increased 19% from the three months ended September 30, 2014. Selling, general and administrative expenses for the nine months ended June 30, 2015 increased 10% from the nine months ended September 30, 2014.  The increases in total selling, general and administrative expenses in each of the 2015 periods can be attributed to ongoing implementation of our business plan and our need to add employees to manage our growth.  Non-cash amortization of our website acquisition assets increased 7% for the three months ended September 30, 2015 as compared to the three months ended September 30, 2014, and increased 38% for the nine months ended September 30, 2015 as compared to the nine months ended September 30, 2014. The following expenses represent the other material increases in our total selling, general and administrative expenses for the three and nine months ended September 30, 2015 from the comparable periods in 2014;

·

payroll, payroll taxes, and employee medical expenses increased by 31% and 21% for the three and nine months ended September 30, 2015;

·

rent increased by 82% and 51% for each of the three and nine months ended September 30, 2015; and

·

insurance expense increased by 109% and 114% for the three and six months ended June 30, 2015.

While our total revenue increased by 56% and 50% for the third quarter of 2015 and the nine months then ended, respectively, as compared to 2014 periods, our total selling, general and administrative expense increased by 19% and 10%, respectively.  Our gross profit was 37% of total revenue for the three months ended September 30, 2015 as compared to 33% for the three months ended September 30, 2014.  Our gross profit for the nine months ended September 30, 2015 increased to 34% of total revenue as compared to 27% for the same period in 2014 as a result of increases in revenues attributable to services, which do not have associated cost of revenue.

Interest expense.  Interest expense represents interest paid on the Company’s insurance premium financing agreements.

Liquidity and capital resources

Liquidity is the ability of a company to generate sufficient cash to satisfy its needs for cash. As of September 30, 2015 we had $354,421 in cash and cash equivalents and working capital of $1,267,727, as compared to cash and cash equivalents of $590,236 in cash and cash equivalents and working capital of $1,138,903 at December 31, 2014. Our principal sources of operating capital have been equity financings from related parties. The increase in our working capital at September 30, 2015 is primarily attributable to a 37% increase in inventories and a 12% reduction in liabilities from December 31, 2014, offset by a 40% decline in cash.  The increase in inventories at September 30, 2015 includes our historic practice of increasing inventory in the third quarter for the anticipated increase in fourth quarter sales.  During the nine months ended September 30, 2015 we raised $1,190,000 in capital through the sale of our securities.

24

During 2015 we have continued to use our working capital to purchase additional websites. During the nine months ended September 30, 2015, we purchased four websites for an aggregate amount of $439,500; $262,500 through the issuance of 350,000 shares of the Company’s common stock and $177,000 is cash.  Of the $177,000 in cash, $162,000 had been paid as of September 30, 2015 with the remaining $15,000 to be paid at a rate of $1,500 per month for 10 months as further described under Note 3 of the unaudited condensed consolidated financial statements appearing earlier in this report. Presently, our average total monthly operating overhead is approximately $162,000 of which, approximately $142,000 is cash operating overhead. As we continue to grow our business we expect that our monthly cash operating overhead will continue to increase as we add personnel, although we are not able at this time to quantify the amount of this expected increase.

Cash flows

Net cash flows used in operating activities was $1,208,343 for the nine months ended September 30, 2015 as compared to $1,264,443 used in operating activities for the nine months ended September 30, 2014. In the nine months ended September 30, 2015 we used cash primarily to fund our net loss of $1,081,117 and increases in our inventory of $289,284. These increases were offset by a decrease in prepaid costs and expenses and a decrease in our accounts payable.

Net cash used in investing activities was $184,862 for the nine months ended September 30, 2015 as compared to $581,566 used in investing activities for the same period in 2014.  Net cash used in investing activities for the nine months ended September 30, 2015 was substantially less than for the same period in 2014 since the Company issued common stock valued at $262,500 for website acquisitions.  In the 2015 period we used cash and issued common stock to purchase websites and fixed assets, and in the 2014 period we used cash only to purchase websites and fixed assets.

Net cash flows provided from financing activities was $1,157,390 for the nine months ended September 30, 2015 as compared to $1,063,491 for the same period in 2014. In both periods, cash was provided from the sale of our securities, net of repayments of debt obligations.

Non-GAAP Measure

We report adjusted EBITDA as a supplemental measure to GAAP. This measure is one of the primary metrics by which we evaluate the performance of our business, on which our internal budgets and based. We believe that investors have access to, and we are obligated to provide, the same set of tools that we use in analyzing our results. This non-GAAP measure should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. We endeavor to compensate for the limitations of the non-GAAP measure presented by providing the comparable GAAP measure with equal or greater prominence and description of the reconciling items, including quantifying such items to derive the non-GAAP measure. We encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measure.

Our adjusted EBITDA is defined as operating income/loss excluding: (1) non-cash stock option compensation expense, (2) depreciation, (3) acquisition-related items consisting of (i) amortization expense, and (ii) impairment expense, and (4) non-cash stock compensation for services. We believe this measure is useful for analysts and investors as this measure allows a more meaningful year-to-year comparison of our performance. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole. The above items are excluded from adjusted EBITDA measure because these items are non-cash in nature, and we believe that by excluding these items, adjusted EBITDA corresponds more closely to the cash operating income/loss generated from our business. Adjusted EBITDA has certain limitations in that it does not take into account the impact to our statement of operations of certain expense.

The following is an unaudited reconciliation of net (loss) to adjusted EBITDA for the periods presented:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
Net Loss	$	(359,135	)	$	(344,965	)	$	(1,081,117	)	$	(1,109,539	)
plus:
Stock compensation expense	$	13,480		$	10,573		$	42,604		$	51,898
Depreciation expense		4,122			2,888			10,879			8,220
Amortization expense		45,801			42,912			131,937			95,761
Stock compensation for services		—			7,500			37,350			20,000
Adjusted EBITDA:	$	(295,732	)	$	(281,092	)	$	(858,347	)	$	(933,660	)

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Critical accounting policies

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses during the reported periods. The more critical accounting estimates include estimates related to revenue recognition and accounts receivable allowances. We also have other key accounting policies, which involve the use of estimates, judgments and assumptions that are significant to understanding our results, which are described in Note 1 to our unaudited condensed consolidated financial statements appearing elsewhere in this report.

Recent accounting pronouncements

The recent accounting standards that have been issued or proposed by the FASB or other standards-setting bodies as described in Note 1 appearing earlier in this report that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

All other newly issued accounting pronouncements, but not yet effective, have been deemed either immaterial or not applicable.

Off balance sheet arrangements

As of the date of this report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. The term "off-balance sheet arrangement" generally means any transaction, agreement or other contractual arrangement to which an entity unconsolidated with us is a party, under which we have any obligation arising under a guarantee contract, derivative instrument or variable interest or a retained or contingent interest in assets transferred to such entity or similar arrangement that serves as credit, liquidity or market risk support for such assets.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable for a smaller reporting company.

ITEM 4.

CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures. We maintain “disclosure controls and procedures” as such term is defined in Rule 13a-15(e) under Securities Exchange Act of 1934 (the “Exchange Act”). In designing and evaluating our disclosure controls and procedures, our management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Based on their evaluation as of the end of the period covered by this report, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were not effective such that the information relating to our company, required to be disclosed in our Securities and Exchange Commission reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and (ii) is accumulated and communicated to our management, including our Chief Executive Officer, to allow timely decisions regarding required disclosure as a result of continuing material weaknesses in our internal control over financial reporting as described in our Annual Report on Form 10-K for the year ended December 31, 2014, as amended.  A material weakness is a deficiency, or combination of deficiencies, that results in more than a remote likelihood that a material misstatement of annual or interim financial statements will not be prevented or detected.  During the nine months ended September 30, 2015 we retained an outside accountant with SEC accounting experience on an as needed basis as a partial remedial action for material weaknesses in internal control and as a monitoring control.

Subject to the availability of sufficient funds during 2015 to expand our accounting staff, we also expect to create a position to segregate duties consistent with control objectives and will increase our personnel resources and, if necessary, hire independent third parties or consultants to provide expert advice as needed. We do not, however, expect that the material weaknesses in our disclosure controls will be remediated until such time as we have improved our internal control over financial reporting.

Changes in Internal Control over Financial Reporting. There have been no changes in our internal control over financial reporting during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS.

None.

ITEM 1A.

RISK FACTORS.

Not applicable for a smaller reporting company.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

On September 30, 2015 we sold 200,000 shares of our common stock to the company’s founder, CEO and member of our board of directors, for $100,000. We did not pay any commissions or finders fees.  The purchaser is an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(a)(2) of that act.  We are using the proceeds for general working capital.

On November 6, 2015 we sold 200,000 shares of our common stock to the company’s founder, CEO and member of our board of directors, for $100,000. We did not pay any commissions or finders fees.  The purchaser is an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(a)(2) of that act.  We are using the proceeds for general working capital.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.

MINE SAFETY DISCLOSURES.

Not applicable to our company’s operations.

ITEM 5.

OTHER INFORMATION.

The Company is a party to an Executive Employment Agreement effective June 1, 2014 with W. Kip Speyer, our Chief Executive Officer. Under the terms of this agreement, we agreed to initially compensate him with a base salary of $75,000 annually in addition to other terms of the agreement.  Effective October 1, 2015 we increased Mr. Speyer's annual base compensation to $125,000 upon the recommendation of the Compensation Committee.  All other terms and conditions of the agreement remain in effect.

Effective October 1, 2015 we increased the Chief Financial Officer’s base annual salary to $85,000 upon recommendation of the Compensation Committee.

On October 15, 2015 the Company entered into a six-month agreement with a consultant pursuant to which the consultant was engaged to assist the Company increasing market awareness.  As compensation for its services, the consultant is being compensated for its services by a combination of $30,000 cash and 42,000 shares of the Company’s common stock to be paid $5,000 cash and 7,000 shares of common stock per month over the term of the agreement.  The agreement contains certain leak out and method of sale restrictions on the compensation shares once such shares are available for resale pursuant to the provisions of Rule 144 of the Securities Act of 1933.

ITEM 6.

EXHIBITS.

No.	Description
31.1	Rule 13a-14(a)/ 15d-14(a) Certification of Chief Executive Officer *
31.2	Rule 13a-14(a)/ 15d-14(a) Certification of Chief Financial Officer *
32.1	Section 1350 Certification of Chief Executive Officer and Chief Financial Officer*
101.INS	XBRL Instance Document *
101.PRE	XBRL Taxonomy Extension Presentation Linkbase *
101.LAE	XBRL Taxonomy Extension Label Linkbase *
101.DEF	XBRL Taxonomy Extension Definition Linkbase *
101.SCH	XBRL Taxonomy Extension Schema *
101.CAL	XBRL Taxonomy Extension Calculation Linkbase *

———————

*

filed herewith

27

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 thereunto duly authorized.

	BRIGHT MOUNTAIN ACQUISITION CORPORATION
November 12, 2015	By:	/s/ W. Kip Speyer
		W. Kip Speyer, Chief Executive Officer
November 12, 2015	By:	/s/ Annette Casacci
		Annette Casacci, Chief Financial Officer

28

EX-31.1

EXHIBIT 31.1

Rule 13a-14(a)/15d-14(a) Certification

I, W. Kip Speyer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended September 30, 2015 of Bright Mountain Acquisition Corporation

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.

November 12, 2015 /s/ W. Kip Speyer W. Kip Speyer, Chief Executive Officer, principal executive officer

EX-31.2

EXHIBIT 31.2

Rule 13a-14(a)/15d-14(a) Certification

I, Annette Casacci, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended September 30, 2015 of Bright Mountain Acquisition Corporation.

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.

November 12, 2015 /s/ Annette Casacci Annette Casacci, Chief Financial Officer, principal financial and accounting officer

EX-32.1

EXHIBIT 32.1

Section 1350 Certification

In connection with the Quarterly Report of Bright Mountain Acquisition Corporation (the “Company”) on Form 10-Q for the period ended September 30, 2015 as filed with the Securities and Exchange Commission (the “Report”), I, W. Kip Speyer, Chief Executive Officer and Chief Financial Officer of the Company, and Annette Casacci, Chief Financial Officer of the Company, do each hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and

2. The information contained in the Report fairly presents, in all material respects, the financial conditions and results of operations of the Company.

November 12, 2015	/s/ W. Kip Speyer W. Kip Speyer, Chief Executive Officer, principal executive officer
November 12, 2015	/s/ Annette Casacci Annette Casacci, Chief Financial Officer, principal financial and accounting officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signatures that appear in typed form within the electronic version of this written statement 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.

XML

SUBSEQUENT EVENTS (Details) - USD ($)										9 Months Ended
	Nov. 06, 2015	Oct. 27, 2015	Oct. 26, 2015	Oct. 15, 2015	May. 28, 2015	May. 22, 2015	May. 01, 2015	Mar. 23, 2015	Jan. 19, 2015	Sep. 30, 2015
Subsequent Event [Line Items]
Number of shares issued for service					5,000	50,000	2,000		400
Stock option expiration term										10 years
Exercise price of stock options (in dollars per share)										$ 0.22
Weighted average fair values of options granted (in dollars per share)										$ 0.43
Stock issued during period										$ 790,000
Shares Issued, Price Per Share					$ 0.65	$ 0.65	$ 0.65		$ 0.75	$ 0.75
Director [Member]
Subsequent Event [Line Items]
Stock options granted								40,000
Stock option expiration term								10 years
Exercise price of stock options (in dollars per share)								$ 0.75
Fair value of options granted								$ 17,223
Weighted average fair values of options granted (in dollars per share)								$ 0.4306
Subsequent Event [Member] | Director & Officer Insurance [Member] | Flat Iron Capital [Member]
Subsequent Event [Line Items]
Amount financed			$ 47,381
Financing interest expense			$ 1,742
Loan term			9 years
Periodic loan payments			$ 5,247
Periodic payments, frequency			Monthly
Subsequent Event [Member] | Consultant [Member]
Subsequent Event [Line Items]
Agreement term				6 months
Consultant Fees				$ 30,000
Number of shares issued for service				42,000
Monthly payment of consultant fees				$ 5,000
Number of share issued for service per month				7,000
Subsequent Event [Member] | Director [Member]
Subsequent Event [Line Items]
Stock options granted		60,000
Stock option expiration term		10 years
Exercise price of stock options (in dollars per share)		$ 0.65
Fair value of options granted		$ 22,391
Weighted average fair values of options granted (in dollars per share)		$ 0.3732
Subsequent Event [Member] | Executive officer and director [Member]
Subsequent Event [Line Items]
Stock options granted		100,000
Stock option expiration term		10 years
Exercise price of stock options (in dollars per share)		$ 0.65
Fair value of options granted		$ 37,318
Weighted average fair values of options granted (in dollars per share)		$ 0.3732
Subsequent Event [Member] | Related Party Founder and CEO [Member]
Subsequent Event [Line Items]
Stock issued during period	$ 100,000
Stock issued during period, shares	200,000
Shares Issued, Price Per Share	$ 0.50

XML

GOING CONCERN (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
GOING CONCERN [Abstract]
Net loss	$ 359,135	$ 344,965	$ 1,081,117	$ 1,109,539
Net cash used in operating activities			1,208,343	$ 1,264,443
Accumulated deficit	$ 5,565,778		$ 5,565,778		$ 4,484,661

XML

SHAREHOLDERS' EQUITY (Schedule of Information of Options Outstanding Under Option Plans) (Details)	9 Months Ended
	Sep. 30, 2015 $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding (in shares) | shares	1,605,000
Remaining Average Contractual Life (In Years)	6 years 9 months 18 days
Weighted Average Exercise Price (in dollars per share)	$ 0.31
Number Exercisable (in shares) | shares	1,123,500
Weighted Average Exercise Price (in dollars per share)	$ 0.22
Price Range One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range or Exercise Price, lower range	0.14
Range or Exercise Price, upper range	$ 0.78
Number Outstanding (in shares) | shares	1,605,000
Remaining Average Contractual Life (In Years)	6 years 9 months 18 days
Weighted Average Exercise Price (in dollars per share)	$ 0.31
Number Exercisable (in shares) | shares	1,123,500
Weighted Average Exercise Price (in dollars per share)	$ 0.22

XML

GOING CONCERN

9 Months Ended

Sep. 30, 2015

GOING CONCERN [Abstract]

GOING CONCERN

NOTE 2 - GOING CONCERN

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company sustained a net loss of $1,081,117 and used cash in operating activities of $1,208,343 for the nine months ended September 30, 2015. The Company had an accumulated deficit of $5,565,778 at September 30, 2015. These factors raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time. The Company's continuation as a going concern is dependent upon its ability to generate revenues and its ability to continue receiving investment capital and loans from related parties to sustain its current level of operations.

Management plans to continue to raise additional capital through private placements and is exploring additional avenues for future fund-raising through both public and private sources.

The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

XML

PREMIUM FINANCE LOAN PAYABLE (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Principal balance amount	$ 18,604	$ 47,866
Corporate Error & Omission Insurance [Member]
Debt Instrument [Line Items]
Amount financed	18,604
Total insurance premiums	25,396
Financing interest expense	$ 643
Loan term	9 months
Periodic loan payments	$ 2,131
Periodic payments, frequency	Monthly
Principal balance amount	$ 18,604

XML

INVENTORIES (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Inventory [Line Items]
Inventory Balance	$ 1,065,732	$ 776,448
Product Inventory: Other Inventory [Member]
Inventory [Line Items]
Inventory Balance	11,593	6,488
Product Inventory: Clocks and Watches [Member]
Inventory [Line Items]
Inventory Balance	$ 1,054,139	$ 769,960

XML

SEGMENT INFORMATION (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) item	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
SEGMENT INFORMATION [Abstract]
Number of reportable segments | item			2
SEGMENT INFORMATION [Line Items]
Revenues	$ 431,014	$ 276,843	$ 1,113,044	$ 742,006
Amortization	45,801		131,937	95,761
Depreciation	4,122		10,879	8,220
Loss from operations	(358,652)	(344,972)	(1,079,756)	(1,109,580)
Segment Assets	2,365,036		2,365,036		$ 1,950,968
Products [Member]
SEGMENT INFORMATION [Line Items]
Revenues	$ 335,750	245,812	$ 921,322	675,130
Amortization
Depreciation	$ 3,211		$ 9,006
Loss from operations	(414,698)		(937,098)
Segment Assets	1,537,101		1,537,101
Services [Member]
SEGMENT INFORMATION [Line Items]
Revenues	95,264	$ 31,031	191,722	$ 66,876
Amortization	45,801		131,937
Depreciation	911		1,873
Loss from operations	56,046		(142,658)
Segment Assets	$ 827,935		$ 827,935

XML

COMMITMENTS AND CONTINGENCIES (Details)	9 Months Ended
	Sep. 30, 2015 USD ($) ft²	Oct. 01, 2015 USD ($)	Jul. 30, 2015 ft²
Chief Executive Officer [Member] | Executive Employment Agreement [Member]
Related Party Transaction [Line Items]
Base salary to be paid to related party	$ 75,000	$ 125,000
Initial term of employment agreement with related party	3 years
6400 Congress Avenue, Suite 2050, Boca Raton, Florida Property [Member]
Operating Leased Assets [Line Items]
Area of real estate space | ft²	2,014		4,450
Monthly base rent owed per operating lease agreement	$ 8,978
Period of monthly base rent	12 months
Percentage of escalation in monthly base rent	3.00%
Security deposit	$ 2,500

XML

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2015

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Nature of Operations

Bright Mountain Acquisition Corporation and subsidiaries, formerly known as Bright Mountain Holdings, Inc., and subsidiaries ("BMAQ" or the "Company," "we," "us," "our", "Bright Mountain") is a Florida corporation formed on May 20, 2010. Its wholly owned subsidiaries, Bright Mountain LLC, and The Bright Insurance Agency, LLC, were formed as Florida limited liability companies in May 2011.

The Company is a media holding company of online assets.  We sell various products through our proprietary websites and retail location, and through third party e-commerce distributor portals.  Our websites provide content designed to attract and retain targeted Internet audiences.  We generate revenues from two segments, product sales and services.  Services consists of advertising revenue and subscription revenue.  Our advertising revenue is generated primarily through the display of paid listings as well as display advertisements appearing on our websites.

Our websites contain a number of sections with demographically oriented information including originally written news content, blogs, forums, career information, and video.  Our websites are:

• BMAQ.com;

• Bootcamp4me.com;

• Bootcamp4me.org;

• Brightwatches.com;

• Certifiedwolfhunter.com;

• Coastguardnews.com;

• Fdcareers.com;

• Fireaffairs.com;

• FireFightingNews.com;

• Gopoliceblotter.com;

• JQPublicblog.com;

• Leoaffairs.com;

• PopularMilitary.com;

• Teacheraffairs.com;

• Thebravestonline.com;

• Thebright.com;

• USMCLife.com;

• Wardocumentaryfilms.com;

• Welcomehomeblog.com; and

• 360fire.com

Basis of Presentation

The interim unaudited condensed consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of the Company's management, all adjustments necessary to present fairly the consolidated results of operations and cash flows for the nine months ended September 30, 2015, and the consolidated financial position as of September 30, 2015 have been made. The results of operations for such interim period is not necessarily indicative of the operating results expected for the full year.

Principles of Consolidation

The interim unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Bright Mountain LLC and The Bright Insurance Agency, LLC. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

Our condensed consolidated financial statements are prepared in accordance with Accounting Principles Generally Accepted in the United States ("GAAP"). These accounting principles require management to make certain estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments, and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of our consolidated financial statements as well as reported amounts of revenue and expenses during the periods presented. Our condensed consolidated financial statements would be affected to the extent there are material differences between these estimates and actual results. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management's judgment in its application. There are also areas in which management's judgment in selecting any available alternative would not produce a materially different result. Significant estimates included in the accompanying condensed consolidated financial statements include the fair value of acquired assets for purchase price allocation in business combinations, valuation of inventory, valuation of intangible assets, estimates of amortization period for intangible assets, estimates of depreciation period for fixed assets, valuation of equity based transactions, and the valuation allowance on deferred tax assets.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Fair Value of Financial Instruments and Fair Value Measurements

The Company measures its financial assets and liabilities in accordance with GAAP. For certain of our financial instruments, including cash, accounts payable, accrued expenses, and the short-term portion of long-term debt, the carrying amounts approximate fair value due to their short maturities.

We adopted accounting guidance for financial and non-financial assets and liabilities in accordance with ASC 820 "Fair Value Measurements and Disclosures."  This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use.

Accounts Receivable

Accounts receivable are recorded at fair value on the date revenue is recognized. The Company provides allowances for doubtful accounts for estimated losses resulting from the inability of its customers to repay their obligation. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to repay, additional allowances may be required. The Company provides for potential uncollectible accounts receivable based on specific customer identification and historical collection experience adjusted for existing market conditions. If market conditions decline, actual collection experience may not meet expectations and may result in decreased cash flows and increased bad debt expense.

The policy for determining past due status is based on the contractual payment terms of each customer, which are generally net 30 or net 60 days. Once collection efforts by the Company and its collection agency are exhausted, the determination for charging off uncollectible receivables is made.

Inventories

Inventories are stated at the lower of cost or market using the first in, first out (FIFO) method. Provisions have been made to reduce excess or obsolete inventories to their net realizable value.

Revenue Recognition

The Company recognizes revenue on our products in accordance with ASC 605-10, "Revenue Recognition in Financial Statements."  Under these guidelines, revenue is recognized on sales transactions when all of the following exist: persuasive evidence of an arrangement did exist; delivery of product has occurred; the sales price to the buyer is fixed or determinable; and collectability is reasonably assured. The Company has several revenue streams generated directly from its website and specific revenue recognition criteria for each revenue stream is as follows:

•

Sale of merchandise directly to consumers: The Company's product sales are recognized either FOB shipping point or FOB destination, dependent on the customer. Revenues are therefore recognized at point of ownership transfer, accordingly.

•

Advertising revenue is received directly form companies who pay the Company a monthly fee for advertising space.

•

Advertising revenues are generated by users "clicking" on website advertisements utilizing several ad network partners: Revenues are recognized, on a net basis, upon receipt of payment by the ad network partner since the revenue is not determinable until it is received.

•

Subscription revenues are generated by the sale of access to career postings on one of our websites. The term of the subscriptions range from one month to twelve months. Revenues are recognized, on a net basis, over the term of the subscription period. All sales are final per the subscription Terms of Use.

The Company follows the guidance of ASC 605-50-25, "Revenue Recognition, Customer Payments." Accordingly, any incentives received from vendors are recognized as a reduction of the cost of products included in inventories. Promotional products or samples given to customers or potential customers are recognized as a cost of goods sold. Cash incentives provided to our customers are recognized as a reduction of the related sale price, and, therefore, are a reduction in sales.

Cost of Sales

Components of costs of sales include product costs, shipping costs to customers and any inventory adjustments.

Shipping and Handling Costs

The Company includes shipping and handling fees billed to customers as revenues and shipping and handling costs for shipments to customers as cost of revenues.

Sales Return Reserve Policy

Our return policy generally allows our end users to return purchased products for refund or in exchange for new products. We estimate a reserve for sales returns, if any, and record that reserve amount as a reduction of sales and as a sales return reserve liability. Sales to consumers on our web site generally may be returned within a reasonable period of time.

Product Warranty Reserve Policy

The Company is a retail distributor of products and warranties are the responsibility of the manufacturer. Therefore, the Company does not record a reserve for product warranty

Property and Equipment

Property and equipment is recorded at cost. Depreciation is computed using the straight-line method based on the estimated useful lives of the related assets of seven years for office furniture and equipment, and five years for computer equipment. Leasehold improvements, if any, would be amortized over the lesser of the lease term or the useful life of the improvements. Expenditures for maintenance and repairs along with fixed assets below our capitalization threshold of $500 are expensed as incurred.

Website Development Costs

The Company accounts for its website development costs in accordance with ASC 350-50 "Website Development Costs." These costs, if any, are included in intangible assets in the accompanying condensed consolidated financial statements or expensed immediately if the Company cannot support recovery of these costs from positive future cash flows.

ASC 350-50 requires the expensing of all costs of the preliminary project stage and the training and application maintenance stage and the capitalization of all internal or external direct costs incurred during the application and infrastructure development stage. Upgrades or enhancements that add functionality are capitalized while other costs during the operating stage are expensed as incurred. The Company amortizes the capitalized website development costs over an estimated life of five years.

As of September 30, 2015 and September 30, 2014, all website development costs have been expensed.

Amortization and Impairment of Long-Lived Assets

Amortization and impairment of long-lived assets are non-cash expenses relating primarily to website acquisitions. The Company accounts for long-lived assets in accordance with the provisions of ASC 360-10 "Accounting for the Impairment or Disposal of Long-Lived Assets." This statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Website acquisition costs are amortized over five years. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. While it is likely that we will have significant amortization expense as we continue to acquire websites, we believe that intangible assets represent costs incurred by the acquired website to build value prior to acquisition and the related amortization and impairment charges of assets, if applicable, are not ongoing costs of doing business. Non-cash impairment loss is included in selling, general and administrative expenses on the accompanying statement of operations. For the three months ended September 30, 2015 and September 30, 2014, non-cash impairment expense was $0 and $0 respectively. For the nine months ended September 30, 2015 and September 30, 2014, non-cash amortization expense was $131,937 and $95,761 respectively.

ASC 360-10 requires the review of the residual value and useful life of long-lived assets and certain identifiable intangibles at least at each financial year end. The Company revised the useful life of its website acquisition assets with effect from January 1, 2015. The revision was accounted for prospectively as a change in accounting estimates and as a result, the Company's website acquisition assets costs are amortized over five years.

Stock-Based Compensation

The Company accounts for stock-based instruments issued to employees for services in accordance with ASC Topic 718 "Compensation – Stock Compensation." ASC Topic 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity based compensation issued to employees. The value of the portion of an employee award that is ultimately expected to vest is recognized as an expense over the requisite service periods using the straight-line attribution method. The Company accounts for non-employee share-based awards in accordance with the measurement and recognition criteria of ASC Topic 505-50, "Equity-Based Payments to Non-Employees." The Company estimates the fair value of stock options by using the Black-Scholes option-pricing model. Non-cash stock-based stock option compensation is expensed over the requisite service period and are included in selling, general and administrative expenses on the accompanying condensed consolidated statement of operations. For the nine months ended September 30, 2015 and September 30, 2014, non-cash stock-based stock option compensation expense was $42,604 and $51,898, respectively.

Advertising, Marketing and Promotion Costs

Advertising, marketing and promotion expenses are expensed as incurred and are included in selling, general and administrative expenses on the accompanying statement of operations. For the nine months ended September 30, 2015 and September 30, 2014, advertising, marketing and promotion expense was $17,541 and $83,069, respectively.

Income Taxes

We use the asset and liability method to account for income taxes. Under this method, deferred income taxes are determined based on the differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements which will result in taxable or deductible amounts in future years and are measured using the currently enacted tax rates and laws. A valuation allowance is provided to reduce net deferred tax assets to the amount that, based on available evidence, is more likely than not to be realized.

The Company follows the provisions of ASC 740-10 "Accounting for Uncertain Income Tax Positions." When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

As of September 30, 2015, tax years 2014, 2013, and 2012 remain open for IRS audit. The Company has received no notice of audit or any notifications from the IRS for any of the open tax years.

Basic and Diluted Net Earnings (Loss) Per Common Share

In accordance with ASC 260-10 "Earnings Per Share," basic net earnings (loss) per common share is computed by dividing the net earnings (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed using the weighted average number of common and dilutive common stock equivalent shares outstanding during the period. As of September 30, 2015 and September 30, 2014 there were approximately 1,605,000 and 1,500,000 common stock equivalent shares outstanding as stock options, respectively and 5,200,000 and 3,300,000 common stock equivalents from the conversion of preferred stock, respectively. Equivalent shares were not utilized as the effect is anti-dilutive.

Segment Information

In accordance with the provisions of ASC 280-10 "Disclosures about Segments of an Enterprise and Related Information," the Company is required to report financial and descriptive information about its reportable operating segments. The Company has two identifiable operating segments based on the activities of the Company in accordance with the ASC 28-10. The Company's two segments are product sales and services as of September 30, 2015. The product sales segment sells merchandise to customers thorough e-commerce distributor portals and directly to consumers through our proprietary websites and retail location. The services segment is focused on producing advertising revenue generated by users "clicking" on website advertisements utilizing several ad network partners and direct advertisers and subscription revenue generated by the sale of access to career postings on one of our websites.

Recent Accounting Pronouncements

In June 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” The update gives entities a single comprehensive model to use in reporting information about the amount and timing of revenue resulting from contracts to provide goods or services to customers. The proposed ASU, which would apply to any entity that enters into contracts to provide goods or services, would supersede the revenue recognition requirements in Topic 605 "Revenue Recognition," and most industry-specific guidance throughout the Industry Topics of the Codification. Additionally, the update would supersede some cost guidance included in Subtopic 605-35 "Revenue Recognition – Construction-Type and Production-Type Contracts." The update removes inconsistencies and weaknesses in revenue requirements and provides a more robust framework for addressing revenue issues and more useful information to users of financial statements through improved disclosure requirements. In addition, the update improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. The update is effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. All other entities may apply the guidance in ASU No. 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities also may apply the guidance in Update 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, and interim reporting periods within annual reporting periods beginning one year after the annual reporting period in which the entity first applies the guidance in ASU No. 2014-09. We are currently reviewing the provisions of this ASU to determine if there will be any impact on our results of operations, cash flows or financial condition.

In June 2014, the FASB issued ASU 2014-12, "Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period." This ASU provides more explicit guidance for treating share-based payment awards that require a specific performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2015. We do not expect the adoption of this guidance to have a material impact on the consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern,” which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early application is permitted. The adoption of ASU 2014-15 is not expected to have a material effect on the condensed consolidated financial statements.

In July 2015, FASB issued Accounting Standards Update (“ASU”) No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory” more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS).  The amendments in this ASU do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of this Update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. For public business entities, this ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, this ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments in this ASU should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. We are currently reviewing the provisions of this ASU to determine if there will be any impact on our results of operations, cash flows or financial condition.

All other newly issued accounting pronouncements, but not yet effective, have been deemed either immaterial or not applicable.

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RELATED PARTIES (Details)	9 Months Ended
	Sep. 30, 2015 USD ($) shares
Related Party Transaction [Line Items]
Dividend rate	10.00%
Stock issued during period	$ 790,000
Series A Stock [Member]
Related Party Transaction [Line Items]
Dividend rate	10.00%
Series B Stock [Member]
Related Party Transaction [Line Items]
Dividend rate	10.00%
Series D Stock [Member]
Related Party Transaction [Line Items]
Dividend rate	10.00%
Stock issued during period, shares | shares	500,000
Stock issued during period	$ 250,000
Related Party Founder [Member] | Common Stock [Member]
Related Party Transaction [Line Items]
Stock issued during period, shares | shares	740,000
Stock issued during period	$ 370,000
Related Party Founder [Member] | Series A Stock [Member]
Related Party Transaction [Line Items]
Dividend rate	10.00%
Stock issued during period, shares | shares	200,000
Stock issued during period	$ 100,000
Related Party [Member] | Common Stock [Member]
Related Party Transaction [Line Items]
Stock issued during period, shares | shares	40,000
Stock issued during period	$ 20,000
Related Party [Member] | Series A Stock [Member]
Related Party Transaction [Line Items]
Stock issued during period, shares | shares	100,000
Stock issued during period	$ 50,000
Related Party [Member] | Series D Stock [Member]
Related Party Transaction [Line Items]
Dividend rate	10.00%
Stock issued during period, shares | shares	500,000
Stock issued during period	$ 250,000
Related party, two [Member] | Common Stock [Member]
Related Party Transaction [Line Items]
Stock issued during period, shares | shares	400,000
Stock issued during period	$ 200,000

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current Assets
Cash	$ 354,421	$ 590,236
Accounts Receivable	44,376	4,110
Prepaid Costs and Expenses	84,118	86,298
Inventories	1,065,732	776,448
Total Current Assets	1,548,647	1,457,092
Fixed Assets, net	50,057	38,074
Website Acquisition Assets, net	750,785	443,222
Other Assets	15,547	12,580
Total Assets	2,365,036	1,950,968
Current liabilities
Accounts payable	262,316	270,323
Premium Finance Loan Payable	18,604	47,866
Total Liabilities	$ 280,920	$ 318,189
Commitments and contingencies (Note 7)
Shareholders' equity
Common stock, par value $.01, 324,000,000 shares authorized, 35,760,059 issued 35,400,059 outstanding, and 33,483,234 issued 33,123,234 outstanding, respectively.	$ 357,600	$ 334,832
Treasury Stock (360,000 shares)	(2,501)	(2,501)
Additional paid-in-capital	7,242,795	5,741,109
Accumulated Deficit	(5,565,778)	(4,484,661)
Total shareholders' equity	2,084,116	1,632,779
Total liabilities and shareholders' equity	2,365,036	1,950,968
Series A Stock [Member]
Shareholders' equity
Preferred stock, par value $0.01, 20,000,000 shares authorized, 5,200,000 issued and 4,400,000 outstanding respectively	19,000	16,000
Series B Stock [Member]
Shareholders' equity
Preferred stock, par value $0.01, 20,000,000 shares authorized, 5,200,000 issued and 4,400,000 outstanding respectively	10,000	10,000
Series C Stock [Member]
Shareholders' equity
Preferred stock, par value $0.01, 20,000,000 shares authorized, 5,200,000 issued and 4,400,000 outstanding respectively	18,000	$ 18,000
Series D Stock [Member]
Shareholders' equity
Preferred stock, par value $0.01, 20,000,000 shares authorized, 5,200,000 issued and 4,400,000 outstanding respectively	$ 5,000

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGE IN SHAREHOLDERS' EQUITY (Parenthetical)	9 Months Ended
	Sep. 30, 2015 $ / shares
CONDENSED CONSOLIDATED STATEMENTS OF CHANGE IN SHAREHOLDERS' EQUITY [Abstract]
Shares Issued, Price Per Share	$ 0.75
Debt conversion, price per share	$ 0.50
Preferred Stock dividend rate	10.00%
Common Stock issued for acquisitions, Per share price	$ 0.75

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SHAREHOLDERS' EQUITY (Stock Incentive Plan and Stock Option Grants to Employees and Directors) (Narrative) (Details) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 23, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Apr. 01, 2013	Apr. 20, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeited
Stock option expiration term				10 years
Options exercisable, weighted-average exercise price		$ 0.22		$ 0.22
Weighted average fair values of options granted (in dollars per share)				0.43
Intrinsic value				$ 0
Non-cash stock-based stock option compensation		$ 13,480	$ 10,573	$ 42,604	$ 51,898
Non-cash stock option expense				42,604
Unrecognized compensation cost		$ 58,611		$ 58,611
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted	40,000
Stock option expiration term	10 years
Options exercisable, weighted-average exercise price	$ 0.75
Weighted average fair values of options granted (in dollars per share)	$ 0.4306
Fair value of options granted	$ 17,223
2011 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance								900,000
Maximum allowable annual shares granted to any individual				180,000
Shares remaining for future issuance		81,000		81,000
2013 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance							900,000
Maximum allowable annual shares granted to any individual				180,000
Forfeited						129,000
Shares remaining for future issuance		44,000		44,000
2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance		1,000,000		1,000,000
Maximum allowable annual shares granted to any individual				100,000
Shares remaining for future issuance		1,000,000		1,000,000

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SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2015

SEGMENT INFORMATION [Abstract]

Schedule of segment activity

	For the three months ended September 30,								For the nine months ended September 30,
	2015								2015
	Products			Services		Total			Products			Services			Total
Revenues	$	335,750		$	95,264	$	431,014		$	921,322		$	191,722		$	1,113,044
Amortization	$	—		$	45,801	$	45,801		$	—		$	131,937		$	131,937
Depreciation	$	3,211		$	911	$	4,122		$	9,006		$	1,873		$	10,879
Loss from operations	$	(414,698	)	$	56,046	$	(358,652	)	$	(937,098	)	$	(142,658	)	$	(1,079,756	)
Segment Assets	$	1,537,101		$	827,935	$	2,365,036		$	1,537,101		$	827,935		$	2,365,036

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	(unaudited)				(unaudited)
	2015		2014		2015		2014
Revenue:
Product Sales	$	335,750	$	245,812	$	921,322	$	675,130
Services	$	95,264	$	31,031	$	191,722	$	66,876
Total Revenue	$	431,014	$	276,843	$	1,113,044	$	742,006

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SHAREHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Assumptions:
Expected term (years)	6 years 3 months	6 years 3 months
Expected volatility	63.00%	80.00%
Risk-free interest rate	1.56%	0.38%
Dividend yield	0.00%	0.00%
Expected forfeiture rate	0.00%	0.00%
Number of Options
Balance Outstanding, Beginning	1,565,000
Granted	40,000
Exercised
Forfeited
Expired
Balance Outstanding, Ending	1,605,000		1,565,000
Exercisable, Ending	1,123,500
Weighted Average Exercise Price
Balance Outstanding, Beginning	$ 0.21
Granted	$ 0.75
Exercised
Forfeited
Expired
Balance Outstanding, Ending	$ 0.31		$ 0.21
Exercisable, Ending	$ 0.22
Weighted Average Remaining Contractual Term
Balance Outstanding	6 years 9 months 18 days		6 years 3 months 18 days
Exercisable, Ending	6 years 1 month 6 days
Aggregate Intrinsic Value
Outstanding Balance	$ 349,983		$ 317,986
Exercisable, Ending	$ 317,986

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) item shares	Sep. 30, 2014 USD ($) shares
Revenue Recognition
Term of the subscriptions, minimum			1 month
Term of the subscriptions, maximum			12 months
Amortization and Impairment of Long-Lived Assets
Non-cash impairment expense	$ 0	$ 0
Non-cash amortization expense	45,801		$ 131,937	$ 95,761
Stock-Based Compensation
Non-cash stock-based stock option compensation	$ 13,480	$ 10,573	42,604	51,898
Advertising, marketing and promotion expense			17,541	$ 83,069
Property and equipment, capitalization threshold			$ 500
Segment Information
Number of operating segments | item			2
Internal Revenue Service (IRS) [Member] | 2012 [Member]
Income Tax Examination [Line Items]
Open Tax Year			2012
Internal Revenue Service (IRS) [Member] | 2013 [Member]
Income Tax Examination [Line Items]
Open Tax Year			2013
Internal Revenue Service (IRS) [Member] | 2014 [Member]
Income Tax Examination [Line Items]
Open Tax Year			2014
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life			7 years
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life			5 years
Website Development Costs [Member]
Property, Plant and Equipment [Line Items]
Finite-Lived Intangible Asset, Useful Life			5 years
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock equivalent shares | shares			1,605,000	1,500,000
Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock equivalent shares | shares			5,200,000	3,300,000

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net Loss	$ (1,081,117)	$ (1,109,539)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation	10,879	8,220
Amortization	131,937	95,761
Stock option compensation expense	42,604	51,898
Common stock issued for services	37,350	20,000
Changes in operating assets and liabilities:
Accounts Receivable	(40,266)	(2,250)
Inventory	(289,284)	(347,839)
Prepaid costs and expenses	2,180	1,368
Other assets	(2,967)	(7,880)
Accounts payable	(19,659)	25,818
Net cash used in operating activities	(1,208,343)	(1,264,443)
Cash flows from investing activities:
Purchase of fixed assets	(22,862)	(9,566)
Purchase of websites	(162,000)	(572,000)
Net cash used in investing activities	(184,862)	(581,566)
Cash flows from financing activities:
Sale of common stock	790,000	675,000
Sale of Preferred stock	400,000	400,000
Payments on premium finance loan	(32,610)	(11,509)
Net cash provided by financing activities	1,157,390	1,063,491
Net decrease in cash	(235,815)	(782,518)
Cash at beginning of period	590,236	1,162,632
Cash at end of period	354,421	$ 380,114
Supplemental Disclosure of Cash Flow Information
Cash paid for Interest	$ 1,384
Cash paid for Income Taxes
Non-Cash Investing and financing activities
Common stock issued for purchase of websites	$ 262,500
Payable for purchase of websites	$ 27,000

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Class of Stock [Line Items]
Preferred stock, par value per share	$ 0.01	$ 0.01
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	5,200,000	4,400,000
Preferred stock, shares outstanding	5,200,000	4,400,000
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	324,000,000	324,000,000
Common shares, shares issued	35,760,059	33,483,234
Common shares, shares outstanding	35,400,059	33,123,234
Treasury stock, shares	360,000	360,000
Series A Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	1,900,000	1,600,000
Preferred stock, shares outstanding	1,900,000	1,600,000
Series B Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	1,000,000	1,000,000
Preferred stock, shares outstanding	1,000,000	1,000,000
Series C Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	1,800,000	1,800,000
Preferred stock, shares outstanding	1,800,000	1,800,000
Series D Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	500,000	0
Preferred stock, shares outstanding	500,000	0

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CONCENTRATIONS

9 Months Ended

Sep. 30, 2015

CONCENTRATIONS [Abstract]

CONCENTRATIONS

NOTE 10 – CONCENTRATIONS

The Company purchases a substantial amount of its products from two vendors; Citizens Watch Company of America, Inc., and Bulova Corporation. During the three months ended September 30, 2015, purchases from Citizens accounted for 17% and purchases from Bulova accounted for 24%, of the total products purchased as compared to 44% and 33%, respectively for the three months ended September 30, 2014. During the nine months ended September 30, 2015, purchases from Citizens accounted for 33% and purchases from Bulova accounted for 26%, of the total products purchased as compared to 56% and 31%, respectively for the nine months ended September 30, 2014. Although we have added additional product vendors in the past twelve month period, and we continue to expand our product line and vendor relationships, due to continued high concentration and reliance on these two vendors, the loss of one of these two vendors could adversely affect the Company's operations.

The Company sells many of its products through various e-commerce distribution portals, which include Amazon and eBay. During the three months ended September 30, 2015, these two distributor portals accounted for 64% and 6%, respectively of our total revenue. During the nine months ended September 30, 2015, these two distributor portals accounted for 72% and 5%, respectively of our total revenue. Although our direct product sales has increased to 10% of total product revenue as compared to 2% for the three months ended September 30, 2015 and 7% of total product revenue as compared to 1% for the nine months ended September 30, 2015, due to the high concentration and reliance on these two e-commerce distributor portals, the loss of a working relationship with either of these two distributor portals could adversely affect the Company's operations.

A substantial amount of payments for our products sold are processed through PayPal. A disruption in PayPal payment processing could have an adverse effect on the Company's operations and cash flow.

The Company obtained approximately 30% of its advertising revenue for the three months ended September 30, 2015 from Google AdSense, a third-party provider. Paid listings are priced on a price per click basis and when a user submits a search query and then clicks on a Google AdSense paid listing displayed in response to the query, Google bills the advertiser that purchased the paid listing directly and shares a portion of the fee charged to the advertiser with the Company. The Company's remaining 70% of advertising revenue was from direct advertising and subscriptions.

Credit Risk

The Company minimizes the concentration of credit risk associated with its cash by maintaining its cash with high quality federally insured financial institutions. However, cash balances in excess of the FDIC insured limit of $250,000 are at risk. At September 30, 2015 and December 31, 2014, respectively, the Company had cash balances above the FDIC insured limit of approximately $0 and $173,933 respectively. The Company performs ongoing evaluations of its trade accounts receivable customers and generally does not require collateral.

Concentration of Funding

During the nine months ended September 30, 2015 the Company's funding was provided by the sale of shares of the Company's preferred stock and common stock to a related party officer and director, as well as to a principal shareholder.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 06, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Entity Registrant Name	Bright Mountain Acquisition Corp
Entity Central Index Key	0001568385
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		35,600,059
Trading Symbol	BMAQ

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SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2015

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

NOTE 11 – SUBSEQUENT EVENTS

On October 15, 2015 the Company entered into a six-month agreement with a consultant.  The consultant shall be compensated for services by a combination of $30,000 cash and 42,000 shares of stock to be paid $5,000 cash and 7,000 shares of common stock per month.

On October 13, 2015 the Board of Directors approved changing the name of the Company to Bright Mountain Media, Inc.  On October 26, 2015 the holders of a majority of the Company's outstanding common stock approved the name change.  The name change will be effective on December 7, 2015 pending processing by the Financial Industry Regulatory Authority, Inc., (FINRA) in accordance with Rule 10b-17 of the Securities Exchange Act of 1934, as amended.

The Company entered into a premium finance agreement on October 26, 2015 with Flat Iron Capital for (1) the Company's Director's and Officer's (D & O) insurance coverage for the period October 31, 2015 through October 30, 2016, and (2) the Employment Practices Liability insurance coverage for the period October 31, 2015 through October 30, 2016.  The Company financed $47,381 (including interest and fees of $1,742) from Flat Iron Capital.  The terms of the loan are nine equal payments of $5,247 per month beginning November 30, 2015.

On October 27, 2015 the Company granted 60,000 ten-year stock options, which have an exercise price of $0.65 per share, to a director.  The aggregate fair value of these options was computed at $22,391 or $0.3732 per option.

On October 27, 2015 the Company granted 100,000 ten-year stock options, which have an exercise price of $0.65 per share to an executive officer and director.  The aggregate fair value of these options was computed at $37,318 or $0.3732 per option.

On November 6, 2015 the Company raised additional capital through the issuance of its common stock pursuant to a private placement whereby $100,000 in capital was raised through the issuance of 200,000 shares of common stock at $0.50 per share to a related party founder and CEO.

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CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS [Abstract]
Product Sales	$ 335,750	$ 245,812	$ 921,322	$ 675,130
Revenues from Services	95,264	31,031	191,722	66,876
Total Revenue	431,014	276,843	1,113,044	742,006
Cost of sales - Product	$ 273,227	$ 186,611	$ 733,146	$ 526,387
Cost of sales - Services
Gross profit	$ 157,787	$ 90,232	$ 379,898	$ 215,619
Selling, general and administrative expenses	516,439	435,204	1,459,654	1,325,199
Loss from operations	(358,652)	(344,972)	(1,079,756)	(1,109,580)
Other income (expense)
Interest income	10	$ 7	23	$ 41
Interest expense	(493)		(1,384)
Total other income (expense), net	(483)	$ 7	(1,361)	$ 41
Net loss before taxes	$ (359,135)	$ (344,965)	$ (1,081,117)	$ (1,109,539)
Income taxes
Net Loss	$ (359,135)	$ (344,965)	$ (1,081,117)	$ (1,109,539)
Preferred stock dividends
Series A, Series B, Series C & Series D preferred	101,939	49,377	247,397	139,666
Total preferred stock dividends	101,939	49,377	247,397	139,666
Net loss attributable to common shareholders	$ (461,074)	$ (394,342)	$ (1,328,514)	$ (1,249,205)
Basic and diluted net loss per share	$ (0.01)	$ (0.01)	$ (0.04)	$ (0.04)
Weighted average shares outstanding - Basic and diluted	35,108,850	33,053,785	34,245,752	32,474,590

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PREMIUM FINANCE LOAN PAYABLE

9 Months Ended

Sep. 30, 2015

PREMIUM FINANCE LOAN PAYABLE [Abstract]

PREMIUM FINANCE LOAN PAYABLE

NOTE 5 – PREMIUM FINANCE LOAN PAYABLE

Premium finance loans payable related to the financing of the Company's Error & Omission (E&O) insurance coverage for the period September 6, 2015 through September 6, 2016.  The Company financed $18,604 of the total policy premium of $25,396 (including interest and fees of $643) from Pro Premium Finance Company, Inc.  The term of the loan are nine equal payments of $ 2,131 per month beginning October 6, 2014.  The principal balance due was $18,604 at September 30, 2015.

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INVENTORIES

9 Months Ended

Sep. 30, 2015

INVENTORIES [Abstract]

INVENTORIES

NOTE 4 – INVENTORIES

At September 30, 2015 and December 31, 2014 inventories consisted of the following:

	September 30,		December 31,
	2015		2014
Product Inventory: Other	$	11,593	$	6,488
Product Inventory: Clocks and Watches		1,054,139		769,960
Total Inventory Balance	$	1,065,732	$	776,448

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SHAREHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2015

SHAREHOLDERS' EQUITY [Abstract]

Summary of the assumptions utilized to record compensation expense for stock options granted

	September 30,		September 30,
Assumptions:	2015		2014
Expected term (years)	6.25		6.25
Expected volatility	63	%	80	%
Risk-free interest rate	1.56	%	.38	%
Dividend yield	0	%	0	%
Expected forfeiture rate	0	%	0	%

Summary of Stock Option Activity

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Balance Outstanding, December 31, 2014		1,565,000	$	0.21		6.3	$	317,986
Granted		40,000		0.75		—		—
Exercised		—		—		—		—
Forfeited		—		—		—		—
Expired		—		—		—		—
Balance Outstanding, September 30, 2015		1,605,000	$	0.31		6.8		349,983
Exercisable at September 30, 2015		1,123,500	$	0.22		6.1	$	317,986

Summary of information of options outstanding under option plans

	Options Outstanding				Options Exercisable
Range or Exercise Price	Number Outstanding	Remaining Average Contractual Life (In Years)	Weighted Average Exercise Price		Number Exercisable	Weighted Average Exercise Price
0.14 - 0.78	1,605,000	6.8	$	0.31	1,123,500	$	0.22
	1,605,000	6.8	$	0.31	1,123,500	$	0.22

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)

9 Months Ended

Sep. 30, 2015

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Organization and Nature of Operations

Organization and Nature of Operations

Bright Mountain Acquisition Corporation and subsidiaries, formerly known as Bright Mountain Holdings, Inc., and subsidiaries ("BMAQ" or the "Company," "we," "us," "our", "Bright Mountain") is a Florida corporation formed on May 20, 2010. Its wholly owned subsidiaries, Bright Mountain LLC, and The Bright Insurance Agency, LLC, were formed as Florida limited liability companies in May 2011.

The Company is a media holding company of online assets.  We sell various products through our proprietary websites and retail location, and through third party e-commerce distributor portals.  Our websites provide content designed to attract and retain targeted Internet audiences.  We generate revenues from two segments, product sales and services.  Services consists of advertising revenue and subscription revenue.  Our advertising revenue is generated primarily through the display of paid listings as well as display advertisements appearing on our websites.

Our websites contain a number of sections with demographically oriented information including originally written news content, blogs, forums, career information, and video.  Our websites are:

• BMAQ.com;

• Bootcamp4me.com;

• Bootcamp4me.org;

• Brightwatches.com;

• Certifiedwolfhunter.com;

• Coastguardnews.com;

• Fdcareers.com;

• Fireaffairs.com;

• FireFightingNews.com;

• Gopoliceblotter.com;

• JQPublicblog.com;

• Leoaffairs.com;

• PopularMilitary.com;

• Teacheraffairs.com;

• Thebravestonline.com;

• Thebright.com;

• USMCLife.com;

• Wardocumentaryfilms.com;

• Welcomehomeblog.com; and

• 360fire.com

Basis of Presentation

Basis of Presentation

The interim unaudited condensed consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of the Company's management, all adjustments necessary to present fairly the consolidated results of operations and cash flows for the nine months ended September 30, 2015, and the consolidated financial position as of September 30, 2015 have been made. The results of operations for such interim period is not necessarily indicative of the operating results expected for the full year.

Principles of Consolidation

Principles of Consolidation

The interim unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Bright Mountain LLC and The Bright Insurance Agency, LLC. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

Use of Estimates

Our condensed consolidated financial statements are prepared in accordance with Accounting Principles Generally Accepted in the United States ("GAAP"). These accounting principles require management to make certain estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments, and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of our consolidated financial statements as well as reported amounts of revenue and expenses during the periods presented. Our condensed consolidated financial statements would be affected to the extent there are material differences between these estimates and actual results. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management's judgment in its application. There are also areas in which management's judgment in selecting any available alternative would not produce a materially different result. Significant estimates included in the accompanying condensed consolidated financial statements include the fair value of acquired assets for purchase price allocation in business combinations, valuation of inventory, valuation of intangible assets, estimates of amortization period for intangible assets, estimates of depreciation period for fixed assets, valuation of equity based transactions, and the valuation allowance on deferred tax assets.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Fair Value of Financial Instruments and Fair Value Measurements

Fair Value of Financial Instruments and Fair Value Measurements

The Company measures its financial assets and liabilities in accordance with GAAP. For certain of our financial instruments, including cash, accounts payable, accrued expenses, and the short-term portion of long-term debt, the carrying amounts approximate fair value due to their short maturities.

We adopted accounting guidance for financial and non-financial assets and liabilities in accordance with ASC 820 "Fair Value Measurements and Disclosures."  This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use.

Accounts Receivable

Accounts Receivable

Accounts receivable are recorded at fair value on the date revenue is recognized. The Company provides allowances for doubtful accounts for estimated losses resulting from the inability of its customers to repay their obligation. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to repay, additional allowances may be required. The Company provides for potential uncollectible accounts receivable based on specific customer identification and historical collection experience adjusted for existing market conditions. If market conditions decline, actual collection experience may not meet expectations and may result in decreased cash flows and increased bad debt expense.

The policy for determining past due status is based on the contractual payment terms of each customer, which are generally net 30 or net 60 days. Once collection efforts by the Company and its collection agency are exhausted, the determination for charging off uncollectible receivables is made.

Inventories

Inventories

Inventories are stated at the lower of cost or market using the first in, first out (FIFO) method. Provisions have been made to reduce excess or obsolete inventories to their net realizable value.

Revenue Recognition

Revenue Recognition

The Company recognizes revenue on our products in accordance with ASC 605-10, "Revenue Recognition in Financial Statements."  Under these guidelines, revenue is recognized on sales transactions when all of the following exist: persuasive evidence of an arrangement did exist; delivery of product has occurred; the sales price to the buyer is fixed or determinable; and collectability is reasonably assured. The Company has several revenue streams generated directly from its website and specific revenue recognition criteria for each revenue stream is as follows:

•

Sale of merchandise directly to consumers: The Company's product sales are recognized either FOB shipping point or FOB destination, dependent on the customer. Revenues are therefore recognized at point of ownership transfer, accordingly.

•

Advertising revenue is received directly form companies who pay the Company a monthly fee for advertising space.

•

Advertising revenues are generated by users "clicking" on website advertisements utilizing several ad network partners: Revenues are recognized, on a net basis, upon receipt of payment by the ad network partner since the revenue is not determinable until it is received.

•

Subscription revenues are generated by the sale of access to career postings on one of our websites. The term of the subscriptions range from one month to twelve months. Revenues are recognized, on a net basis, over the term of the subscription period. All sales are final per the subscription Terms of Use.

The Company follows the guidance of ASC 605-50-25, "Revenue Recognition, Customer Payments." Accordingly, any incentives received from vendors are recognized as a reduction of the cost of products included in inventories. Promotional products or samples given to customers or potential customers are recognized as a cost of goods sold. Cash incentives provided to our customers are recognized as a reduction of the related sale price, and, therefore, are a reduction in sales.

Cost of Sales

Cost of Sales

Components of costs of sales include product costs, shipping costs to customers and any inventory adjustments.

Shipping and Handling Costs

Shipping and Handling Costs

The Company includes shipping and handling fees billed to customers as revenues and shipping and handling costs for shipments to customers as cost of revenues.

Sales Return Reserve Policy

Sales Return Reserve Policy

Our return policy generally allows our end users to return purchased products for refund or in exchange for new products. We estimate a reserve for sales returns, if any, and record that reserve amount as a reduction of sales and as a sales return reserve liability. Sales to consumers on our web site generally may be returned within a reasonable period of time.

Product Warranty Reserve Policy

Product Warranty Reserve Policy

The Company is a retail distributor of products and warranties are the responsibility of the manufacturer. Therefore, the Company does not record a reserve for product warranty

Property and Equipment

Property and Equipment

Property and equipment is recorded at cost. Depreciation is computed using the straight-line method based on the estimated useful lives of the related assets of seven years for office furniture and equipment, and five years for computer equipment. Leasehold improvements, if any, would be amortized over the lesser of the lease term or the useful life of the improvements. Expenditures for maintenance and repairs along with fixed assets below our capitalization threshold of $500 are expensed as incurred.

Website Development Costs

Website Development Costs

The Company accounts for its website development costs in accordance with ASC 350-50 "Website Development Costs." These costs, if any, are included in intangible assets in the accompanying condensed consolidated financial statements or expensed immediately if the Company cannot support recovery of these costs from positive future cash flows.

ASC 350-50 requires the expensing of all costs of the preliminary project stage and the training and application maintenance stage and the capitalization of all internal or external direct costs incurred during the application and infrastructure development stage. Upgrades or enhancements that add functionality are capitalized while other costs during the operating stage are expensed as incurred. The Company amortizes the capitalized website development costs over an estimated life of five years.

As of September 30, 2015 and September 30, 2014, all website development costs have been expensed.

Amortization and Impairment of Long-Lived Assets

Amortization and Impairment of Long-Lived Assets

Amortization and impairment of long-lived assets are non-cash expenses relating primarily to website acquisitions. The Company accounts for long-lived assets in accordance with the provisions of ASC 360-10 "Accounting for the Impairment or Disposal of Long-Lived Assets." This statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Website acquisition costs are amortized over five years. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. While it is likely that we will have significant amortization expense as we continue to acquire websites, we believe that intangible assets represent costs incurred by the acquired website to build value prior to acquisition and the related amortization and impairment charges of assets, if applicable, are not ongoing costs of doing business. Non-cash impairment loss is included in selling, general and administrative expenses on the accompanying statement of operations. For the three months ended September 30, 2015 and September 30, 2014, non-cash impairment expense was $0 and $0 respectively. For the nine months ended September 30, 2015 and September 30, 2014, non-cash amortization expense was $131,937 and $95,761 respectively.

ASC 360-10 requires the review of the residual value and useful life of long-lived assets and certain identifiable intangibles at least at each financial year end. The Company revised the useful life of its website acquisition assets with effect from January 1, 2015. The revision was accounted for prospectively as a change in accounting estimates and as a result, the Company's website acquisition assets costs are amortized over five years.

Stock-Based Compensation

Stock-Based Compensation

The Company accounts for stock-based instruments issued to employees for services in accordance with ASC Topic 718 "Compensation – Stock Compensation." ASC Topic 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity based compensation issued to employees. The value of the portion of an employee award that is ultimately expected to vest is recognized as an expense over the requisite service periods using the straight-line attribution method. The Company accounts for non-employee share-based awards in accordance with the measurement and recognition criteria of ASC Topic 505-50, "Equity-Based Payments to Non-Employees." The Company estimates the fair value of stock options by using the Black-Scholes option-pricing model. Non-cash stock-based stock option compensation is expensed over the requisite service period and are included in selling, general and administrative expenses on the accompanying condensed consolidated statement of operations. For the nine months ended September 30, 2015 and September 30, 2014, non-cash stock-based stock option compensation expense was $42,604 and $51,898, respectively.

Advertising, Marketing and Promotion Costs

Advertising, Marketing and Promotion Costs

Advertising, marketing and promotion expenses are expensed as incurred and are included in selling, general and administrative expenses on the accompanying statement of operations. For the nine months ended September 30, 2015 and September 30, 2014, advertising, marketing and promotion expense was $17,541 and $83,069, respectively.

Income Taxes

Income Taxes

We use the asset and liability method to account for income taxes. Under this method, deferred income taxes are determined based on the differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements which will result in taxable or deductible amounts in future years and are measured using the currently enacted tax rates and laws. A valuation allowance is provided to reduce net deferred tax assets to the amount that, based on available evidence, is more likely than not to be realized.

The Company follows the provisions of ASC 740-10 "Accounting for Uncertain Income Tax Positions." When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

As of September 30, 2015, tax years 2014, 2013, and 2012 remain open for IRS audit. The Company has received no notice of audit or any notifications from the IRS for any of the open tax years.

Basic and Diluted Net Earnings (Loss) Per Common Share

Basic and Diluted Net Earnings (Loss) Per Common Share

In accordance with ASC 260-10 "Earnings Per Share," basic net earnings (loss) per common share is computed by dividing the net earnings (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed using the weighted average number of common and dilutive common stock equivalent shares outstanding during the period. As of September 30, 2015 and September 30, 2014 there were approximately 1,605,000 and 1,500,000 common stock equivalent shares outstanding as stock options, respectively and 5,200,000 and 3,300,000 common stock equivalents from the conversion of preferred stock, respectively. Equivalent shares were not utilized as the effect is anti-dilutive.

Segment Information

Segment Information

In accordance with the provisions of ASC 280-10 "Disclosures about Segments of an Enterprise and Related Information," the Company is required to report financial and descriptive information about its reportable operating segments. The Company has two identifiable operating segments based on the activities of the Company in accordance with the ASC 28-10. The Company's two segments are product sales and services as of September 30, 2015. The product sales segment sells merchandise to customers thorough e-commerce distributor portals and directly to consumers through our proprietary websites and retail location. The services segment is focused on producing advertising revenue generated by users "clicking" on website advertisements utilizing several ad network partners and direct advertisers and subscription revenue generated by the sale of access to career postings on one of our websites.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In June 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” The update gives entities a single comprehensive model to use in reporting information about the amount and timing of revenue resulting from contracts to provide goods or services to customers. The proposed ASU, which would apply to any entity that enters into contracts to provide goods or services, would supersede the revenue recognition requirements in Topic 605 "Revenue Recognition," and most industry-specific guidance throughout the Industry Topics of the Codification. Additionally, the update would supersede some cost guidance included in Subtopic 605-35 "Revenue Recognition – Construction-Type and Production-Type Contracts." The update removes inconsistencies and weaknesses in revenue requirements and provides a more robust framework for addressing revenue issues and more useful information to users of financial statements through improved disclosure requirements. In addition, the update improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. The update is effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. All other entities may apply the guidance in ASU No. 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities also may apply the guidance in Update 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, and interim reporting periods within annual reporting periods beginning one year after the annual reporting period in which the entity first applies the guidance in ASU No. 2014-09. We are currently reviewing the provisions of this ASU to determine if there will be any impact on our results of operations, cash flows or financial condition.

In June 2014, the FASB issued ASU 2014-12, "Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period." This ASU provides more explicit guidance for treating share-based payment awards that require a specific performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2015. We do not expect the adoption of this guidance to have a material impact on the consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern,” which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early application is permitted. The adoption of ASU 2014-15 is not expected to have a material effect on the condensed consolidated financial statements.

In July 2015, FASB issued Accounting Standards Update (“ASU”) No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory” more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS).  The amendments in this ASU do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of this Update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. For public business entities, this ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, this ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments in this ASU should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. We are currently reviewing the provisions of this ASU to determine if there will be any impact on our results of operations, cash flows or financial condition.

All other newly issued accounting pronouncements, but not yet effective, have been deemed either immaterial or not applicable.

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RELATED PARTIES

9 Months Ended

Sep. 30, 2015

RELATED PARTIES [Abstract]

RELATED PARTIES

NOTE 8 – RELATED PARTIES

During the nine months ended September 30, 2015, a related party founder purchased 200,000 shares of the Company's 10% Series A Convertible Preferred Stock (“Series A Stock") for $100,000.

During the nine months ended September 30, 2015, a related party purchased 500,000 shares of the Company's 10% Series D Convertible Preferred Stock ("Series D Stock") for $250,000.

During the nine months ended September 30, 2015, a related party founder purchased 740,000 shares of the Company's common stock for $370,000.

During the nine months ended September 30, 2015, a related party purchased 40,000 shares of the Company's common stock for $20,000.

During the nine months ended September 30, 2015, a related party purchased 400,000 shares of the Company's common stock for $200,000.

During the nine months ended September 30, 2015, a related party purchased 100,000 shares of the Company's Series A Stock for $50,000.

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SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2015

SEGMENT INFORMATION [Abstract]

SEGMENT INFORMATION

NOTE 6 – SEGMENT INFORMATION

The Company has two identifiable segments as of September 30, 2015; products and services. The products segment sells merchandise to customers thorough e-commerce distributor portals and directly to consumers through our proprietary websites and retail location. The services segment is focused on producing advertising revenue generated by users "clicking" on website advertisements utilizing several advertising network partners and direct advertisers and subscription revenue generated by the sale of access to career postings on one of our websites.

The following information represents segment activity for the three and nine months ended September 30, 2015. Comparable information is not presented for the respective periods in 2014 as the Company only had one identifiable segment in the respective 2014 periods:

	For the three months ended September 30,								For the nine months ended September 30,
	2015								2015
	Products			Services		Total			Products			Services			Total
Revenues	$	335,750		$	95,264	$	431,014		$	921,322		$	191,722		$	1,113,044
Amortization	$	—		$	45,801	$	45,801		$	—		$	131,937		$	131,937
Depreciation	$	3,211		$	911	$	4,122		$	9,006		$	1,873		$	10,879
Loss from operations	$	(414,698	)	$	56,046	$	(358,652	)	$	(937,098	)	$	(142,658	)	$	(1,079,756	)
Segment Assets	$	1,537,101		$	827,935	$	2,365,036		$	1,537,101		$	827,935		$	2,365,036

The following information represents further detail on segment revenues for the three and nine months ended September 30, 2015 and 2014:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	(unaudited)				(unaudited)
	2015		2014		2015		2014
Revenue:
Product Sales	$	335,750	$	245,812	$	921,322	$	675,130
Services	$	95,264	$	31,031	$	191,722	$	66,876
Total Revenue	$	431,014	$	276,843	$	1,113,044	$	742,006

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2015

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 7 – COMMITMENTS AND CONTINGENCIES

Leases

The Company leases its corporate offices at 6400 Congress Avenue, Suite 2050, Boca Raton, Florida 33487 under a long-term non-cancellable lease agreement, which contains renewal options. The lease, which was entered into on August 25, 2014 was amended on July 30, 2015 to increase the original approximate 2,014 square feet to approximately 4,450 square feet. The term of the lease was extended and will terminate on March 14, 2019 at a current base rent of for a term of approximately $8,978 per month for the first twelve months with a 3% escalation each year. An additional security deposit of $2,500 was required. Rent is all-inclusive and includes electricity, heat, air-conditioning, and water. The original rent commencement date is October 11, 2014 and will expire on March 14, 2019.

Legal

From time-to-time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. As of September 30, 2015, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations.

Other Commitments

The Company entered into an Executive Employment Agreement with our Chief Executive Officer, with an effective date of June 1, 2014. Under the terms of this agreement, the Company will compensate the Chief Executive Officer with a base salary of $75,000 annually, and he is entitled to receive discretionary bonuses as may be awarded by the Company's Board of Directors from time to time. The initial term of the agreement is three years, and the Company may extend it for an additional one-year period upon written notice at least 180 days prior to the expiration of the term.

The Chief Executive Officer's base salary was increased to $125,000 annual effective October 1, 2015 upon recommendation of the Compensation Committee of the board of directors.

The agreement will terminate upon the Chief Executive Officer's death or disability. In the event of a termination upon his death, the Company is obligated to pay his beneficiary or estate an amount equal to one year base salary plus any earned bonus at the time of his death. In the event the agreement is terminated as a result of his disability, as defined in the agreement, he is entitled to continue to receive his base salary for a period of one year. The Company is also entitled to terminate the agreement either with or without case, and the Chief Executive Officer is entitled to voluntarily terminate the agreement upon one year's notice to the Company. In the event of a termination by the Company for cause, as defined in the agreement, or voluntarily by the Chief Executive Officer, the Company is obligated to pay him the base salary through the date of termination. In the event the Company terminates the agreement without cause, the Company is obligated to give him one years' notice of the Company's intent to terminate and, at the end of the one year period, pay an amount equal to two times his annual base salary together with any bonuses which may have been earned as of the date of termination. A constructive termination of the agreement will also occur if the Company materially breaches any term of the agreement or if a successor company to Bright Mountain Acquisition Corporation fails to assume the Company's obligations under the employment agreement. In that event, the Chief Executive Officer will be entitled to the same compensation as if the Company terminated the agreement without cause.

The employment agreement contains customary non-compete and confidentiality provisions. The Company also agreed to indemnify the Chief Executive Officer pursuant to the provisions of the Company's Amended and Restated Articles of Incorporation and Restated By-laws.

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SHAREHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2015

SHAREHOLDERS' EQUITY [Abstract]

SHAREHOLDERS' EQUITY

NOTE 9 – SHAREHOLDERS' EQUITY

Preferred Stock

The Company authorized 20,000,000 shares of preferred stock with a par value of $0.01.

At a meeting of the Board of Directors, held on November 1, 2013, the directors approved the designation of two million (2,000,000) shares of the Preferred Stock as Series A and authorized the issuance of the Series A Stock. Holders of the Series A Stock shall be entitled to the payment of a 10% dividend payable of preferred shares outstanding in shares of the Corporation's common stock at a rate of one share of Common Stock for each ten shares of Series A Stock. Dividends shall be payable annually the tenth business day of January. Each holder of Series A Stock may convert all or part of the Series A Stock into shares of common stock on a share for share basis. Series A Stock shall rank superior to all other classes of stock upon liquidation.  Each share of Series A Stock shall automatically convert to common shares five years from the date of issuance or upon a change in control. On the tenth business day of January 2015 there were 160,000 shares of common stock dividends owed and payable to the Series A Stockholders of record as dividends on the Series A Stock. On January 10, 2015, the Company issued 160,000 shares of common stock due Series A Stockholders. As of September 30, 2015, there were 127,589 shares of common stock dividends accrued but not earned until the tenth business day of January 2016 to the Series A Stockholders as dividends on the Series A Stock.

During the nine months ended September 30, 2015, the Company raised additional capital of $100,000 through issuance of 200,000 shares of its Series A Stock pursuant to the same private placement.  The shares were issued to the Company's founder and CEO.

During the nine months ended September 30, 2015, the Company raised additional capital of $50,000 through issuance of 100,000 shares of its Series A Stock pursuant to the same private placement.  The shares were issued to a related party.

At a meeting of the Board of Directors, held on December 23, 2013, the directors approved the designation of one million (1,000,000) shares of the Preferred Stock as 10% Series B Convertible Preferred Stock (“Series B Stock”) and authorized the issuance of the Series B Stock. Holders of the Series B Stock shall be entitled to the payment of a 10% dividend payable of preferred shares outstanding in shares of the Corporation's common stock at a rate of one share of common stock for each ten shares of Series B Stock. Dividends shall be payable annually the tenth business day of January. Each holder of Series B Stock may convert all or part of the Series B Stock into shares of common stock on a share for share basis. Series B Stock shall rank superior to all common stock upon liquidation. Each share of Series B Stock shall automatically convert to common shares five years from the date of issuance or upon a change in control. On the tenth business day of January 2015 there were 100,000 shares of common stock owed and payable to the Series B stockholders as dividends on the Series B Stock. On January 10, 2015, the Company issued 100,000 shares of common stock due Series B Stockholder. As of September 30, 2015, there were 71,507 shares of common stock accrued but not earned until the tenth business day of January 2016 to the Series B Stockholder as dividends on the Series B Stock.

At a meeting of the Board of Directors, held on September 22, 2014, the directors approved the designation of two million (2,000,000) shares of the Preferred Stock as 10% Series C Convertible Preferred Stock (“Series C Stock”) and authorized the issuance of the Series C Stock. Holders of the Series C Stock shall be entitled to the payment of a 10% dividend payable of preferred shares outstanding in shares of the Corporation's common stock at a rate of one share of common stock for each ten shares of Series C Stock. Dividends shall be payable annually the tenth business day of January. Each holder of Series C Stock may convert all or part of the Series C Stock into shares of common stock on a share for share basis. Series C Stock shall rank superior to all common stock upon liquidation. Each share of Series C Stock shall automatically convert to common shares five years from the date of issuance or upon a change in control. On the tenth business day of January 2015 there were 29,425 shares of common stock owed and payable to the Series C stockholders as dividends on the Series C Stock. On January 10, 2015, the Company issued 29,425 shares of common stock due Series C Stockholder. As of September 30, 2015, there were 128,712 shares of common stock accrued but not earned until the tenth business day of January 2016 to the Series C Stockholder as dividends on the Series C Stock.

At a meeting of the Board of Directors, held on March 20, 2015, the directors approved the designation of two million (2,000,000) shares of the Preferred Stock as Series D Stock and authorized the issuance of the Series D Stock. Holders of the Series D Stock shall be entitled to the payment of a 10% dividend payable of preferred shares outstanding in shares of the Corporation's common stock at a rate of one share of common stock for each ten shares of Series D Stock. Dividends shall be payable annually the tenth business day of January. Each holder of Series D Stock may convert all or part of the Series D Stock into shares of common stock on a share for share basis. Series D Stock shall rank superior to all common stock upon liquidation. Each share of Series D Stock shall automatically convert to common shares five years from the date of issuance or upon a change in control. As of September 30, 2015, there were 25,616 shares of common stock accrued but not earned until the tenth business day of January 2016 to the Series D Stockholder as dividends on the Series D Stock.

During the nine months ended September 30, 2015, the Company raised additional capital of $250,000 through issuance of 500,000 shares of its Series D Stock pursuant to the same private placement.  The shares were issued to a related party.

Series A, B, C and D Stock are also subject to adjustment of the conversion terms due to future mergers, sales and stock splits, if any.

Common Stock

A) Stock issued for services

On January 19, 2015, the Company entered into an agreement with an employee, wherein the employee elected to receive 400 shares of the Company common stock at a fair value of $0.75 per share, or $300, in lieu of a bonus.  

On May 1, 2015, the Company entered into an agreement with an employee, wherein the employee elected to receive 2,000 shares of the Company common stock at a fair value of $0.65 per share, or $1,300, in lieu of a bonus.  

On May 22, 2015, the Company issued to a law firm 50,000 shares of its common stock at $0.65 per share, or $32,500, for services rendered. The Company valued these common shares based on the fair value at the date of grant.

On May 28, 2015, the Company issued to a consultant 5,000 shares of its common stock at $0.65 per share, or $3,250, for services rendered. The Company valued these common shares based on the fair value at the date of grant.

B)

Stock issued for dividends

During the nine months ended September 30, 2015, the Company issued 289,425 shares of its common stock as dividends to the holders of its Series A, Series B, and Series C Stock only.  Holders of the Series A, Series B, Series C, and Series D Stock are entitled to the payment of a 10% dividend payable in shares of the Company's common stock at a rate of one share of common stock for each ten shares of Series A, Series B, Series C, or Series D Stock payable on the tenth business day of January commencing in 2016.

C)

Stock issued for acquisitions

During the nine months ended September 30, 2015, the Company issued 350,000 shares of its common stock for the acquisition of two websites. The Company valued these common shares at $262,500 or $0.75 per share, based on the fair value on the date of the acquisitions.

D)

Stock issued for cash

During the nine months ended September 30, 2015, the Company raised additional capital through issuance of common stock pursuant to a private placement whereby $790,000 in capital was raised through the issuance of 1,580,000 shares of common stock at $0.50 per share.

Stock Incentive Plan and Stock Option Grants to Employees and Directors

The Company accounts for stock option compensation issued to employees for services in accordance with ASC Topic 718. ASC Topic 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity based compensation issued to employees. The value of the portion of an employee award that is ultimately expected to vest is recognized as an expense over the requisite service periods using the straight-line attribution method. The Company accounts for non-employee share-based awards in accordance with the measurement and recognition criteria of ASC Topic 505-50, "Equity-Based Payments to Non-Employees." The Company estimates the fair value of stock options by using the Black-Scholes option-pricing model.

Stock options issued to consultants and other non-employees as compensation for services provided to the Company are accounted for based on the fair value of the services provided or the estimated fair market value of the option, whichever is more reliably measurable in accordance with ASC 505 "Equity" and ASC 718, including related amendments and interpretations. The related expense is recognized over the period the services are provided.

Stock Option Plans

The Company has adopted three stock option plans, the terms of which are substantially identical.  The purpose of each plan is to provide an incentive to attract and retain directors, officers, consultants, advisors and employees whose services are considered valuable, to encourage a sense of proprietorship and to stimulate an active interest of such persons into our development and financial success. Under each plan, the Company is authorized to issue incentive stock options intended to qualify under Section 422 of the Code, non-qualified stock options, stock appreciation rights, performance shares, restricted stock and long-term incentive awards.  The Compensation Committee of the Company's board of directors administers each plan. The material terms of each option which may be granted under each plan will contain the following terms: (i) that the purchase price of each share purchasable under an incentive option shall be determined by the Committee at the time of grant, (ii) the term of each option shall be fixed by the Committee, but no option shall be exercisable more than 10 years after the date such option is granted, and (iii) in the absence of any option vesting periods designated by the Committee at the time of grant, options shall vest and become exercisable in terms and conditions, consistent with the plan, as may be determined by the Committee and specified in the grant instrument.

On April 20, 2011, the Company's board of directors and majority stockholder adopted the 2011 Stock Option Plan (the "2011 Plan"), to be effective on January 3, 2011. The Company has reserved for issuance an aggregate of 900,000 shares of common stock under the 2011 Plan. The maximum aggregate number of shares of Company stock that shall be subject to Grants made under the Plan to any individual during any calendar year shall be 180,000 shares. As of September 30, 2015, 81,000 shares were remaining under the 2011 Plan for future issuance.

On April 1, 2013, the Company's board of directors and majority stockholder adopted the 2013 Stock Option Plan (the "2013 Plan"), to be effective on April 1, 2013. The Company has reserved for issuance an aggregate of 900,000 shares of common stock under the 2013 Plan. The maximum aggregate number of shares of Company stock that shall be subject to grants made under the 2013 Plan to any individual during any calendar year shall be 180,000 shares. During the year ended December 31, 2014, 129,000 shares of common stock under the 2013 Plan were forfeited. As of September 30, 2015, 44,000 shares were remaining under the 2013 Plan for future issuance.

On May 22, 2015, the Company's board of directors adopted the 2015 Stock Option Plan (the "2015 Plan"), to be effective on May 22, 2015. Effective August 3, 2015, and as disclosed in the Company's Information Statement on Schedule 14C, the Company's majority shareholders ratified the adoption of the 2015 Plan. The Company has reserved for issuance an aggregate of 1,000,000 shares of common stock under the 2015 Plan. The maximum aggregate number of shares of Company stock that shall be subject to grants made under the 2015 Plan to any individual during any calendar year shall be 100,000 shares. As of September 30, 2015, 1,000,000 shares were remaining under the 2015 Plan for future issuance.

On March 23, 2015 the Company granted 40,000 ten-year stock options, which have an exercise price of $0.75 per share to a director.  The aggregate fair value of these options was computed at $17,223 or $0.4306 per option.

The Company estimates the fair value of share-based compensation utilizing the Black-Scholes option pricing model, which is dependent upon several variables such as the expected option term, expected volatility of our stock price over the expected option term, expected risk-free interest rate over the expected option term, expected dividend yield rate over the expected option term, and an estimate of expected forfeiture rates.

The Company believes this valuation methodology is appropriate for estimating the fair value of stock options granted to employees and directors, which is subject to ASC Topic 718 requirements. These amounts are estimates and thus may not be reflective of actual future results, nor amounts ultimately realized by recipients of these grants. The Company recognizes share-based compensation expense on a straight-line basis over the requisite service period for each award. The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted during the nine months ended September 30, 2015 and 2014:

	September 30,		September 30,
Assumptions:	2015		2014
Expected term (years)	6.25		6.25
Expected volatility	63	%	80	%
Risk-free interest rate	1.56	%	.38	%
Dividend yield	0	%	0	%
Expected forfeiture rate	0	%	0	%

The expected life is computed using the simplified method, which is the average of the vesting term and the contractual term. The expected volatility is based on an average of similar public companies historical volatility.  The risk-free interest rate is based on the U.S. Treasury yields with terms equivalent to the expected term of the related option at the time of the grant. Dividend yield is based on historical trends. While the Company believes these estimates are reasonable, the compensation expense recorded would increase if the expected life was increased, a higher expected volatility was used, or if the expected dividend yield increased.

The Company recorded $13,480 and $10,573 stock option expense for the three months ended September 30, 2015 and September 30, 2014 respectively. The Company recorded $42,604 and $51,898 stock option expense for the nine months ended September 30, 2015 and September 30, 2014 respectively. The $42,604 non-cash stock option expense for the nine months ended September 30, 2015 has been recognized as a component of general and administrative expenses in the accompanying unaudited condensed consolidated financial statements.

As of September 30, 2015 there were total unrecognized compensation costs related to non-vested share-based compensation arrangements of $58,611 to be recognized through September 2019.

The grant date weighted average for fair values of options granted in 2015 is $ 0.43 per option. The intrinsic value as of September 30, 2015 was $0.

A summary of the Company's stock option activity during the nine months ended September 30, 2015 is presented below:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Balance Outstanding, December 31, 2014		1,565,000	$	0.21		6.3	$	317,986
Granted		40,000		0.75		—		—
Exercised		—		—		—		—
Forfeited		—		—		—		—
Expired		—		—		—		—
Balance Outstanding, September 30, 2015		1,605,000	$	0.31		6.8		349,983
Exercisable at September 30, 2015		1,123,500	$	0.22		6.1	$	317,986

Summarized information with respect to options outstanding under the three option plans at September 30, 2015 is as follows:

	Options Outstanding				Options Exercisable
Range or Exercise Price	Number Outstanding	Remaining Average Contractual Life (In Years)	Weighted Average Exercise Price		Number Exercisable	Weighted Average Exercise Price
0.14 - 0.78	1,605,000	6.8	$	0.31	1,123,500	$	0.22
	1,605,000	6.8	$	0.31	1,123,500	$	0.22

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SHAREHOLDERS' EQUITY (Common Stock) (Details)					9 Months Ended
	May. 28, 2015 USD ($) $ / shares shares	May. 22, 2015 USD ($) $ / shares shares	May. 01, 2015 USD ($) $ / shares shares	Jan. 19, 2015 USD ($) $ / shares shares	Sep. 30, 2015 USD ($) item $ / shares shares	Dec. 31, 2014 $ / shares
Stockholders' Equity [Line Items]
Common stock issued for services, shares | shares	5,000	50,000	2,000	400
Common stock, par value per share					$ 0.01	$ 0.01
Common stock issued for services | $	$ 3,250	$ 32,500	$ 1,300	$ 300	$ 37,350
Common stock issued for acquisition | $					$ 262,500
Share price (in dollars per share)					$ 0.75
Stock Issued During Period, Value, New Issues | $					$ 790,000
Shares Issued, Price Per Share	$ 0.65	$ 0.65	$ 0.65	$ 0.75	$ 0.75
Private Placement [Member]
Stockholders' Equity [Line Items]
Sale of common stock for cash ($.50/share) pursuant to Subscription Agreement, shares | shares					1,580,000
Stock Issued During Period, Value, New Issues | $					$ 790,000
Shares Issued, Price Per Share					$ 0.50
Websites [Member]
Stockholders' Equity [Line Items]
Common stock issued for acquisition, shares | shares					350,000
Number of websites acquired | item					2
Common stock issued for acquisition | $					$ 262,500
Share price (in dollars per share)					$ 0.75

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INVENTORIES (Tables)

9 Months Ended

Sep. 30, 2015

INVENTORIES [Abstract]

Schedule of Inventories

	September 30,		December 31,
	2015		2014
Product Inventory: Other	$	11,593	$	6,488
Product Inventory: Clocks and Watches		1,054,139		769,960
Total Inventory Balance	$	1,065,732	$	776,448

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ACQUISITIONS (Narrative) (Details) - USD ($)				3 Months Ended	9 Months Ended
	Jun. 01, 2015	Apr. 14, 2015	Apr. 02, 2015	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Acquisition [Line Items]
Non-cash amortization expense				$ 45,801	$ 131,937	$ 95,761
Unrelated third party, one [Member] | Websites [Member]
Acquisition [Line Items]
Cash payment for acquisition			$ 50,000
Number of shares issued for purchase consideration			250,000
Value of shares issued for purchase consideration			$ 187,500
Monthly consulting fee			30,000
Unrelated third party, two [Member] | Websites [Member]
Acquisition [Line Items]
Cash payment for acquisition			$ 27,000
Number of shares issued for purchase consideration			100,000
Value of shares issued for purchase consideration			$ 75,000
Monthly consulting fee			1,500
Aggregate purchase price			$ 102,000
Unrelated third party, three [Member] | Websites [Member]
Acquisition [Line Items]
Cash payment for acquisition		$ 50,000
Unrelated third party, three [Member] | Websites [Member]
Acquisition [Line Items]
Cash payment for acquisition	$ 50,000
Aggregate purchase price	$ 50,000

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGE IN SHAREHOLDERS' EQUITY - 9 months ended Sep. 30, 2015 - USD ($)	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Shares [Member]	Accumulated Deficit [Member]
Balance, shares at Dec. 31, 2014		4,400,000	33,123,234
Balance at Dec. 31, 2014	$ 1,632,779	$ 44,000	$ 334,832	$ 5,741,109	$ (2,501)	$ (4,484,661)
Common stock issued for services ($.75/share)	37,350		$ 574	36,776
Common stock issued for services ($.75/share), shares			57,400
Sale of common stock for cash ($.50/share) pursuant to Subscription Agreement	790,000		$ 15,800	774,200
Sale of common stock for cash ($.50/share) pursuant to Subscription Agreement, shares			1,580,000
Sale of Series A preferred stock for cash ($.50/share) pursuant to Subscription Agreement	150,000	$ 3,000		147,000
Sale of Series A preferred stock for cash ($.50/share) pursuant to Subscription Agreement, shares		300,000
Sale of Series D preferred stock for cash ($.50/share) pursuant to Subscription Agreement	$ 250,000	$ 5,000		245,000
Sale of Series D preferred stock for cash ($.50/share) pursuant to Subscription Agreement, shares		500,000
Common stock issued for 10% dividend payment pursuant to Series A preferred stock Subscription Agreements			$ 1,600	(1,600)
Common stock issued for 10% dividend payment pursuant to Series A preferred stock Subscription Agreements, shares			160,000
Common stock issued for 10% dividend payment pursuant to Series B preferred stock Subscription Agreements			$ 1,000	(1,000)
Common stock issued for 10% dividend payment pursuant to Series B preferred stock Subscription Agreements, shares			100,000
Common stock issued for 10% dividend payment pursuant to Series C preferred stock Subscription Agreements			$ 294	(294)
Common stock issued for 10% dividend payment pursuant to Series C preferred stock Subscription Agreements, shares			29,425
Stock option compensation expense	$ 42,604			42,604
Common Stock issued for acquisitions ($0.75/share)	262,500		$ 3,500	259,000
Common Stock issued for acquisitions ($0.75/share), shares			350,000
Net Loss	(1,081,117)					(1,081,117)
Balance, shares at Sep. 30, 2015		5,200,000	35,400,059
Balance at Sep. 30, 2015	$ 2,084,116	$ 52,000	$ 357,600	$ 7,242,795	$ (2,501)	$ (5,565,778)

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ACQUISITIONS

9 Months Ended

Sep. 30, 2015

ACQUISITIONS [Abstract]

ACQUISITIONS

NOTE 3 – ACQUISITIONS

On April 1, 2015, the Company entered into Website Asset Purchase Agreement with an unrelated third party. As consideration for the purchase, the Company paid $50,000 and issued 250,000 shares of its common stock with a fair value of $187,500. In conjunction with the Website Asset Purchase Agreement, the Company also entered into a Website Management Agreement. Under the terms of the Website Management Agreement, which expires on December 31, 2017, the Company agreed to pay $30,000 per year for full-time services in managing the website.  The acquisition was accounted following ASC 805 "Business Combinations." The operations of the website prior to the Company's acquisition were immaterial; therefore, pro forma information will not be presented. There were no costs of acquisition incurred as a result of this purchase.

As previously disclosed in our Annual Report on Form 10-K for the year ending December 31, 2014, as amended, on April 1, 2015, the Company entered into a Website Asset Purchase Agreement with an unrelated third party for an aggregate purchase price of $102,000. The purchase price consisted of a cash payment of $27,000, payable at a rate of $1,500 per month beginning on the closing date, and 100,000 shares of the Company's common stock with a fair value of $75,000. The asset acquisition was accounted for as a purchase of assets in accordance with Rule 11-01 (d) of Regulation S-X and ASC 805-10-55-4. There were no costs of acquisition incurred as a result of the asset purchase.

On April 14, 2015, the Company entered into a Website Asset Purchase Agreement with an unrelated third party for a purchase price of $50,000 in cash.  The acquisition was accounted following ASC 805 "Business Combinations." The operations of the website prior to the Company's acquisition were immaterial; therefore, pro forma information was presented. There were no costs of acquisition incurred as a result of this purchase.

On June 1, 2015, the Company entered into a Website Asset Purchase Agreement with an unrelated third party for a purchase price of $50,000.  The purchase price consisted of a cash payment of $50,000, payable at closing.  The asset acquisition was accounted for as a purchase of assets in accordance with Rule 11-01 (d) of Regulation S-X and ASC 805-10-55-4. There were no costs of acquisition incurred as a result of the asset purchase.

At September 30, 2015 and December 31, 2014, website acquisition assets consisted of the following:

	September 30,			December 31,
	2015			2014
Website Acquisition Assets	$	1,029,728		$	614,944
Less: Accumulated Amortization		(278,943	)		(147,006	)
Less:  Impairment Loss		—			(24,716	)
Website Acquisition Assets, net	$	750,785		$	443,222

Non-cash amortization expense for the nine months ending September 30, 2015 and September 30, 2014 was $131,937 and $95,761 respectively.

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ACQUISITIONS (Schedule of Intangible Assets) (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Acquisition [Line Items]
Total Website Acquisition Assets, net	$ 750,785	$ 443,222
Websites [Member]
Acquisition [Line Items]
Website Acquisition Assets	1,029,728	614,944
Less: Accumulated Amortization	$ (278,943)	(147,006)
Less: Impairment Loss		(24,716)
Total Website Acquisition Assets, net	$ 750,785	$ 443,222

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CONCENTRATIONS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Concentration Risk [Line Items]
Cash balance insured by FDIC	$ 250,000		$ 250,000
Cash balance uninsured	$ 0		$ 0		$ 173,933
Percentage of advertising revenue from direct advertising and subscriptions			70.00%
Percentage of advertising revenue from Google AdSense, a third-party provider			30.00%
Total sales [Member] | Direct Product Sales [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	10.00%	2.00%	7.00%	1.00%
Citizens Watch Company of America, Inc [Member] | Products purchased [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	17.00%	44.00%	33.00%	56.00%
Bulova Corporation [Member] | Products purchased [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	24.00%	33.00%	26.00%	31.00%
Amazon [Member] | Total sales [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	64.00%		72.00%
eBay [Member] | Total sales [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	6.00%		5.00%

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ACQUISITIONS (Tables)

9 Months Ended

Sep. 30, 2015

ACQUISITIONS [Abstract]

Schedule of Intangible Assets

	September 30,			December 31,
	2015			2014
Website Acquisition Assets	$	1,029,728		$	614,944
Less: Accumulated Amortization		(278,943	)		(147,006	)
Less:  Impairment Loss		—			(24,716	)
Website Acquisition Assets, net	$	750,785		$	443,222