Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 01, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | ELEPHANT TALK COMMUNICATIONS CORP | |
Entity Central Index Key | 1,084,384 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | ETAK | |
Entity Common Stock, Shares Outstanding | 164,066,217 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 406,509 | $ 369,250 |
Financing receivable | 0 | 272,425 |
Restricted cash | 249,253 | 246,151 |
Accounts receivable, net of an allowance for doubtful accounts of $289,399 at March 31, 2016 and $269,608 at December 31, 2015 | 1,125,868 | 1,112,032 |
Prepaid expenses and other current assets | 1,877,894 | 2,016,236 |
Total current assets | 3,659,524 | 4,016,094 |
NON-CURRENT ASSETS | ||
OTHER ASSETS | 373,644 | 473,893 |
PROPERTY AND EQUIPMENT, NET | 12,973,465 | 13,051,375 |
INTANGIBLE ASSETS, NET | 210,685 | 258,630 |
ASSETS HELD FOR SALE | 4,695,132 | 4,564,972 |
GOODWILL | 3,144,370 | 3,027,422 |
TOTAL ASSETS | 25,056,820 | 25,392,386 |
CURRENT LIABILITIES | ||
Accounts payable and customer deposits | 3,177,360 | 2,639,863 |
Obligations under capital leases (current portion) | 185,600 | 310,403 |
Deferred Revenue | 1,307,350 | 1,259,545 |
Accrued expenses and other payables | 4,374,097 | 5,031,712 |
Advance Purchase Payment on "Assets held for Sale" | 700,000 | 0 |
2014 10% + libor 3rd Party Loan (net of Debt Discount and Debt Issuance) | 5,629,681 | 5,580,277 |
Total current liabilities | 15,374,088 | 14,821,800 |
LONG TERM LIABILITIES | ||
Derivative liabilities | 1,972,261 | 945,618 |
Non-current portion of obligation under capital leases | 0 | 5,621 |
Other long term liabilities | 255,552 | 260,290 |
9% Unsecured Subordinated Convertible Promissory Note (net of Debt Discount and Debt Issuance) | 968,358 | 238,829 |
Non-current portion of deferred revenue | 1,093,452 | 1,066,687 |
Total long term liabilities | 4,289,623 | 2,517,045 |
Total liabilities | $ 19,663,711 | $ 17,338,845 |
Commitments and Contingencies (See Notes) | ||
STOCKHOLDERS' EQUITY | ||
Preferred Stock $0.00001 par value, 50,000,000 shares authorized, 0 issued and outstanding | $ 0 | $ 0 |
Common Stock $0.00001 par value, 250,000,000 shares authorized, 163,349,482 issued and outstanding as of March 31, 2016 and 161,376,387 shares issued and outstanding as of December 31, 2015 | 270,784,151 | 269,470,165 |
Accumulated other comprehensive loss | (5,448,761) | (5,789,975) |
Accumulated deficit | (259,949,321) | (255,635,531) |
Elephant Talk Communications, Corp. stockholders' equity | 5,386,069 | 8,044,659 |
NON-CONTROLLING INTEREST | 7,040 | 8,882 |
Total stockholders' equity | 5,393,109 | 8,053,541 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 25,056,820 | $ 25,392,386 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts Receivable, Current | $ 289,399 | $ 269,608 |
Preferred Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 |
Common Stock, Shares, Issued | 163,349,482 | 161,376,387 |
Common Stock, Shares, Outstanding | 163,349,482 | 161,376,387 |
Term Loan 2014 [Member] | ||
Description of variable rate basis | libor | libor |
Loan payable, interest rate spread | 10.00% | 10.00% |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
REVENUES | $ 3,273,546 | $ 5,013,016 |
COST AND OPERATING EXPENSES | ||
Cost of service (excluding depreciation and amortization) | 1,125,700 | 1,868,846 |
Product development | 1,290,001 | 1,036,121 |
Sales and marketing | 541,941 | 662,160 |
General and administrative | 3,493,696 | 2,961,096 |
Depreciation and amortization of intangibles assets | 1,097,604 | 1,746,147 |
Total cost and operating expenses | 7,548,942 | 8,274,370 |
LOSS FROM OPERATIONS | (4,275,396) | (3,261,354) |
OTHER INCOME (EXPENSE) | ||
Interest income | 25,936 | 30,272 |
Interest expense | (306,299) | (367,340) |
Interest expense related to debt discount accretion | (351,799) | (63,972) |
Changes in derivative liabilities | 518,986 | 246,702 |
Gain on extinguishment of debt | 0 | 2,475,799 |
Other income & (expense), net | 221,640 | (1,191,270) |
Amortization of deferred financing costs | (136,929) | (62,502) |
Total other (expense) income | (28,465) | 1,067,689 |
(LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES | (4,303,861) | (2,193,665) |
Provision / (Benefit) for income taxes | 9,929 | (68,492) |
NET LOSS | (4,313,790) | (2,125,173) |
OTHER COMPREHENSIVE LOSS | ||
Foreign currency translation gain (loss) | 341,214 | (1,712,438) |
COMPREHENSIVE LOSS | $ (3,972,576) | $ (3,837,611) |
Net loss per common share and equivalents - basic | $ (0.03) | $ (0.01) |
Net loss per common share and equivalents - diluted | $ (0.03) | $ (0.01) |
Weighted average shares outstanding during the period - basic | 162,892,970 | 154,854,572 |
Weighted average shares outstanding during the period - diluted | 162,892,970 | 154,854,572 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (4,313,790) | $ (2,125,173) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,097,604 | 1,746,147 |
Provision for doubtful accounts | 0 | 8,184 |
Stock based compensation | 944,024 | 831,813 |
Change in fair value of warrant liability | (518,986) | (246,702) |
Amortization of deferred financing costs | 136,929 | 62,502 |
Accretion of debt discounts | 351,799 | 63,972 |
Unrealized foreign currency transaction gain (loss) | (221,640) | 1,191,270 |
(Gain) on Extinguishment of Debt | 0 | (2,475,799) |
Changes in operating assets and liabilities: | ||
Decrease (increase) in accounts receivable | 35,624 | (5,983,834) |
Decrease (increase) in prepaid expenses, deposits and other assets | 59,993 | 489,564 |
Increase (decrease) in accounts payable and customer deposits | 571,047 | 626,729 |
Increase (decrease) in deferred revenue | (136,050) | 2,981,659 |
Increase (decrease) in accrued expenses and other payables | 78,570 | 296,266 |
Net cash used in operating activities | (1,914,876) | (2,533,402) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (765,955) | (1,511,179) |
Net cash used in investing activities | (765,955) | (1,511,179) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Financing receivable | 355,000 | 2,000,000 |
Exercise of warrants & options | 0 | 5,861 |
Financing related fees | (360,249) | 0 |
Principal payment on 2014 10% + libor 3rd Part Loan | (85,000) | 0 |
Proceeds from 9% Unsecured Subordinated Convertible Promissory Note | 2,273,000 | 0 |
Advance Purchase Payment on "Assets held for Sale" | 450,000 | 0 |
Net cash provided by financing activities | 2,632,751 | 2,005,861 |
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | 85,339 | 1,129,253 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 37,259 | (909,467) |
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | 369,250 | 1,904,160 |
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 406,509 | 994,693 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid during the period for interest | 233,864 | 359,521 |
Cash paid during the period for income taxes | $ 0 | $ 14,246 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Unsecured Subordinated Convertible Promissory Note [Member] | |||
Interest Rate Percentage | 9.00% | ||
Term Loan 2014 [Member] | |||
Loan payable, interest rate spread | 10.00% | 10.00% | 10.00% |
Description of variable rate basis | libor | libor | libor |
Financial Condition
Financial Condition | 3 Months Ended |
Mar. 31, 2016 | |
Financial Condition [Abstract] | |
Substantial Doubt about Going Concern [Text Block] | Note 1. Financial Condition As reflected in the accompanying consolidated financial statements, the Company reported net (loss) of $ (4,313,790) (259,949,321) The Company’s financial statements through March 31, 2016 were materially impacted by a number of events: · the modification of the November 17, 2014 Atalaya/Corbin Capital credit agreement following the default position of the Company; · the default by Cross River Investments (“CRI”) to the definitive agreement dated February 18, 2016 to complete the acquisition of ValidSoft by no later than March 21, 2016; and · the restructuring of the Company. The prior expense reduction plan was turned into a substantial three phase restructuring plan in the fourth quarter of 2015, in order to align actual expenses and investments with current revenues as well as introducing new executive management. The first phase of the restructuring plan encompassed fourth quarter 2015 and first quarter 2016. The first quarter restructuring impacted the results in 2016 with a $ 0.6 1.9 The savings in ongoing operating expenses following the first phase of restructuring through the first quarter 2016, will be evident in second quarter of 2016 when substantial workforce reductions will have been realized. During the second quarter 2016, after the first phase of the restructuring plan has been completed the headcount will be more sustainably aligned with current revenues. During the second phase of the restructuring, commencing in the second quarter 2016, the Company will continue its cost reduction initiatives but also take steps to broaden its revenue focus, pivoting towards additional services including but not limited to recent complementary product initiatives. In 2016, up until March 25, 2016, we consummated additional closings of its private placement offering ( 9 2,273,000 1,998,807 The planned sale of ValidSoft for the price of $ 12.5 As part of the agreements with the prospective suitor for ValidSoft, the Company received $ 700,000 250,000 The cash balance of the Company at March 31, 2016 was $ 406,509 In addition to pursuing other sources of debt and equity financing, the Company continues to evaluate strategic alternatives related to ValidSoft, including, but not limited to, cross-licensing arrangements in the event of divestiture. Several investment groups have expressed interest in acquiring the subsidiary, and the Company believes that the divestiture of ValidSoft, would generate sufficient cash to fully repay Atalaya, the senior lender, and fund the necessary working capital requirements including restructuring costs. The Company is evaluating and potentially integrating certain product capabilities of ValidSoft within its mobile telephony product portfolio and is expanding its pipeline of revenue opportunities accordingly. The Company expects that ValidSoft revenues may benefit from access to the Company’s existing customer base and subscribers and is evaluating potential co-marketing synergies. Although we have previously been able to raise capital as needed, there can be no assurance that additional capital will be available at all, or if available, on reasonable terms. Further, the terms of such financing may be dilutive to our existing stockholders or otherwise on terms not favorable to us, or our existing stockholders. If we are unable to secure additional capital, and/or do not succeed in meeting our cash flow objectives or the Lender takes steps to call the loan before new capital is attracted, the Company will be materially and negatively impacted, and we may have to significantly reduce our operations. As of March 31, 2016, these events combined with the delays in the divestiture of ValidSoft raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Description of Business, Basis
Description of Business, Basis of Presentation and Use of Estimates | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 2. Description of Business, Basis of Presentation and Use of Estimates Business overview Elephant Talk Communications Corp. and its subsidiaries (also referred to as “Elephant Talk”, “ET” and “the Company”) provide a fully managed single sign on and application access’ Software as a Service, Platform as a Service, and Infrastructure as a Service application designed for communications services providers (“CSP”) end-users, delivered over the web. SaaS are applications designed for end-users, delivered over the web. PaaS is a set of tools and services designed to make coding and deploying those applications quickly and efficiently. IaaS is the hardware and software solution that powers it all including servers, storage, networks and operating systems. The Company is comprised of an experienced sales team, architects, software developers, implementation specialists and an operations team who bring turnkey mobile solutions to the retail telecommunications industry. ET also provides software based authentication and voice-biometrics technology and services through its wholly owned subsidiary, ValidSoft UK Limited (“ValidSoft”). Elephant Talk is operated by experienced software and telecom professionals who commercialized its software and virtualized telecom platform. The Company deployed its first Mobile Virtual Network Operator platform for a major mobile carrier in 2008 and has installed managed services platforms for clients globally. Individually, each of the managed services platform implementations has the capacity to support large numbers of subscribers and is capable of supporting multiple service brands through white label portal software. The comprehensive platform hosts an integrated IT/Back Office and Core Network for Mobile Network Operators, Mobile Virtual Network Operators, Mobile Virtual Network Enablers and Mobile Virtual Network Aggregators on a fully outsourced SaaS, PaaS, and IaaS basis. Elephant Talk’s platform is either made available as an on premise solution or as a fully hosted service in ‘the cloud’ depending on the individual needs of our customers. Elephant Talk delivers a wholesale private-labeled infrastructure and communications platform as well as an Operational Support System application service for channel partners. In doing so, Elephant Talk’s enablement model allows for proprietary open Application Program Interfaces, workflow for complex application orchestration, customer support with branded portals and supports plug-ins for any application or point solution. This process facilitates and improves channel partners customer sales and support. Elephant Talk’s intellectual property subsists in our technology, our industry expertise, knowledge and trade secrets, all combined in our ET-BOSS mobile network platform and services with new IP being developed, granted and pending. Our software, source codes and licenses are proprietary, in continuous development, and are protected by international copyright. Elephant Talk owns and manages the source code for 70 100 Basis of Presentation of Interim Periods The interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, for interim financial information and with the instructions to Securities and Exchange Commission, or SEC, Form 10-Q and Article 10 of SEC Regulation S-X. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended December 31, 2015, included in our 2015 Annual Report on Form 10-K filed with the SEC on March 30, 2016, referred to as our 2015 Annual Report. The interim condensed consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly our results of operations and financial position for the interim periods. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for future quarters or the full year. For a complete summary of our significant accounting policies, please refer to Note 2, “Business and Summary of Significant Accounting Policies,” of our 2015 Annual Report. There have been no material changes to our significant accounting policies during the three months ended March 31, 2016. Use of Estimates The preparation of the accompanying consolidated financial statements conforms with accounting principles generally accepted in the U.S. and requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Significant areas of estimates include revenue recognition, valuation of goodwill and other intangible assets, bad debt allowance, valuation of financial instruments, useful lives of long lived assets and share-based compensation. Actual results may differ from these estimates under different assumptions or conditions. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Financial Information [Abstract] | |
Additional Financial Information Disclosure [Text Block] | Note 3. Supplemental Financial Information The following tables present details of our condensed consolidated financial statements: Prepaid expenses and other current assets March 31, December 31, 2016 2015 Recurring & Non recurring prepaid expenses $ 1,154,533 $ 1,387,905 Value added tax 716,170 621,286 Inventory SIM cards 7,191 7,045 $ 1,877,894 $ 2,016,236 Other Assets March 31, December 31, 2016 2015 Long term deposits $ 283,342 $ 285,404 Due from third parties 90,302 188,489 $ 373,644 $ 473,893 Property and equipment March 31, December 31, 2016 2015 Furniture & fixtures $ 262,441 $ 253,782 Computer, communications and network equipment 23,836,331 22,927,827 Software 3,801,691 3,651,222 Automobiles 26,129 37,428 Construction in progress 1,390,971 904,408 Acc. Depreciation Property & Equipment (16,344,098) (14,723,292) $ 12,973,465 $ 13,051,375 Property and equipment - Assets Held for Sale March 31, December 31, 2016 2015 Furniture & fixtures $ 28,738 $ 29,605 Computer, communications and network equipment 61,363 63,216 Software 2,189,580 2,255,695 Construction in progress 468,667 395,585 Acc. Depreciation Property & Equipment (750,148) (772,799) $ 1,998,200 $ 1,971,302 Intangible Assets March 31, December 31, 2016 2015 Customer Contracts, Licenses , Interconnect & Technology 1,029,640 1,016,152 Accumulated amortization Customer Contracts, Licenses, Interconnect & Technology (818,955) (757,522) $ 210,685 $ 258,630 March 31, December 31, 2016 2015 ValidSoft IP & Technology $ 13,458,909 $ 12,930,083 Accumulated amortization ValidSoft IP & Technology (10,761,977) (10,336,413) $ 2,696,932 $ 2,593,670 Goodwill March 31, December 31, 2016 2015 Goodwill ValidSoft Ltd $ 2,769,510 $ 2,659,866 Goodwill Morodo Ltd. 184,459 177,155 Goodwill Telnicity 190,401 190,401 $ 3,144,370 $ 3,027,422 March 31, December 31, 2016 2015 Accrued Selling, General & Administrative expenses $ 3,044,705 $ 3,648,920 Accrued cost of service 284,121 297,370 Accrued taxes (including VAT) 706,749 708,002 Accrued interest payable 222,858 199,104 Other accrued expenses 115,664 178,316 $ 4,374,097 $ 5,031,712 2014 10% + libor 3rd Party Term Loan Agreement March 31, December 31, 2016 2015 2014 10% Term Loan (principal amount) $ 6,415,000 $ 6,500,000 Deferred Financing Costs (316,335) (343,130) Debt Discount - Original Issue Discount (116,145) (132,567) Debt Discount - Warrants (439,863) (501,202) Deferred Exit Fee 87,024 57,176 $ 5,629,681 $ 5,580,277 Breakdown of the 9% Unsecured Subordinated Convertible Promissory Note (maturing December 2018) December 31, Additional Closings (during 2016) Amortizations (during 2016) March 31, Convertible Note Principal Amount $ (1,275,000) $ (2,273,000) $ - $ (3,548,000) Debt Discounts & Financing Costs Investor Warrants ( $0.45) now ( $0.30) 543,548 1,105,059 (188,499) 1,460,108 Conversion Feature value 214,159 296,414 (36,541) 474,032 7% Agent Warrants( $0.30) 48,463 77,354 (8,740) 117,076 7% Agent Warrants ( $0.45) now ( $0.30) 38,130 66,804 (8,740) 96,194 Financing Costs 191,872 274,193 (33,833) 432,232 $ (238,829) $ (453,176) $ (276,353) $ (968,358) March 31, December 31, Convertible note 11,826,667 4,250,000 Investor Warrants 11,826,667 4,250,000 7% Agent Warrants 827,867 297,500 7% Agent Warrants 827,867 297,500 Total Underlying share commitment 25,309,068 9,095,000 Fair Market Value Warrants & Conversion Feature Initial FMV at closing(s) in 2015 FMV as per December 31, 2015 Initial FMV at closing(s) in 2016 FMV adjustment due to exercise Mark to market adjustment FMV as per March 31, 2016 FMV Conversion Feature $ 215,594 $ 260,398 $ 296,414 $ - $ (210,763) $ 346,048 Investor Warrants ( $0.30) $ 546,945 $ 591,473 $ 888,443 $ 206,065 $ (260,774) $ 1,425,207 7% Agent Warrants( $0.30) 48,836 52,344 77,354 - (29,195) 100,503 7% Agent Warrants ( $0.30) 38,286 41,403 62,930 14,424 (18,254) 100,503 FMV Warrant Liabilities $ 634,067 $ 685,220 $ 1,028,727 $ 220,489 $ (308,223) $ 1,626,213 The company modified the warrant exercise price from $ 0.45 0.30 220,490 125,511 94,979 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 4. Fair Value Measurements In accordance with ASC 820, Fair Value Measurement (“ASC 820”), the Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. ASC 820 establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 Level 2 Level 3 The degree of judgment exercised by the Company in determining fair value is greatest for securities categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined by the lowest level input that is significant to the fair value measurement. March 31, 2016 Level 1 Level 2 Level 3 Total Derivative Liabilities Conversion feature $ - $ - $ 346,048 $ 346,048 Warrant Liabilities - - $ 1,626,213 $ 1,626,213 Total Derivatives Liabilities $ - $ - $ 1,972,261 $ 1,972,261 December 31, 2015 Level 1 Level 2 Level 3 Total Derivative Liabilities Conversion feature $ - $ - $ 260,398 $ 260,398 Warrant Liabilities - - $ 685,220 $ 685,220 Total Derivatives Liabilities $ - $ - $ 945,618 $ 945,618 The Company uses the Monte Carlo valuation model to determine the value of the outstanding warrants and conversion feature from the “Offering”. Since the Monte Carlo valuation model requires special software and expertise to model the assumptions to be used, the Company hired a third party valuation expert. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Note 5. Stockholders’ Equity (A) Common Stock The Company is presently authorized to issue 250,000,000 163,349,482 1,973,095 1,473,095 500,000 Reconciliation with Stock Transfer Agent Records: The shares issued and outstanding as of March 31, 2016 and December 31, 2015 according to the Company’s stock transfer agent’s records were 163,595,382 161,622,287 163,349,482 245,900 233,900 12,000 (B) Preferred Stock The Company’s Certificate of Incorporation (“Articles”) authorizes the issuance of 50,000,000 0.00001 For the period ended March 31, 2016, the Company did not issue any shares of Preferred Stock, and no shares of Preferred Stock are outstanding. (C) Warrants Throughout the years, the Company has issued warrants with varying terms and conditions related to multiple financing rounds, acquisitions and other transactions. The number of warrants outstanding at March 31, 2016 (unaudited) and December 31, 2015 have been recorded and classified as equity is 22,140,295 29,628,865 685,220 1,636,763 0.46 Outstanding Exercise/ Expiring March 31, 2016 December 31, 2015 Warrants Fundraising $ 0.30- $0.95 2013 2021 22,140,295 29,610,206 Warrants Other $ 2.21 2016 - 18,659 22,140,295 29,628,865 |
Amended and Restated 2008 Long
Amended and Restated 2008 Long Term Incentive Compensation Plan | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Note 6. Amended and Restated 2008 Long Term Incentive Compensation Plan Total Authorized under the plan 56,000,000 Shares issued in prior years 6,999,864 Shares issued during 2016 1,973,095 Options exercised during 2016 - Outstanding options 27,515,921 Available for grant at March 31, 2016: 19,511,120 During the first quarter of 2016, the Company issued 1,973,095 500,000 Options: Number of Options Weighted Average Exercise Price Outstanding as of December 31, 2015 35,864,077 $ 1.32 Granted in 2016 - $NA Exercised (with delivery of shares) - $NA Forfeitures (Pre-vesting) (3,663,481) $ 1.05 Expirations (Post-vesting) (4,684,675) $ 1.74 Exchanged for Cashless exercise - $NA Outstanding as of March 31, 2016 27,515,921 $ 1.05 At March 31, 2016, the unrecognized expense portion of stock-based awards granted to employees under the 2008 Plan was approximately $ 1,651,460 7,419,546 |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 7. Income taxes Income Taxes March 31, 2016 2015 Net Provision (Benefit) for income taxes $ 9,929 $ (68,492) As a result of our cumulative tax losses in the U.S. and certain foreign jurisdictions, and the full utilization of our loss carryback opportunities, we have concluded that a full valuation allowance should be recorded in such jurisdictions. In certain other foreign jurisdictions where we do not have cumulative losses, we had net deferred tax liabilities. |
Significant Customer and Geogra
Significant Customer and Geographical Information | 3 Months Ended |
Mar. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | Note 8. Significant Customer and Geographical Information Three Months Ended March 31 2016 2015 Two largest customers 86.1 % 67.4 % The geographical distribution of our revenue, as a percentage of revenue, was as follows: Three Months Ended March 31 2016 2015 Europe 91.4 % 64.9 % All other (non-European) countries 8.6 35.1 100.0 % 100.0 % |
Advance Purchase Payment on "As
Advance Purchase Payment on "Assets held for Sale" | 3 Months Ended |
Mar. 31, 2016 | |
Advance Payments to Acquire Assets Held For Sale [Abstract] | |
Advance Payment On Assets Held For Sale [Text Block] | Note 9. Advance Purchase Payment on "Assets held for Sale" As provided by the terms of the previous Agreement with the prospective suitor for ValidSoft the $ 500,000 200,000 9 700,000 |
Supplemental Financial Inform16
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Financial Information [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Prepaid expenses and other current assets March 31, December 31, 2016 2015 Recurring & Non recurring prepaid expenses $ 1,154,533 $ 1,387,905 Value added tax 716,170 621,286 Inventory SIM cards 7,191 7,045 $ 1,877,894 $ 2,016,236 |
Schedule of Other Assets, Noncurrent [Table Text Block] | Other Assets March 31, December 31, 2016 2015 Long term deposits $ 283,342 $ 285,404 Due from third parties 90,302 188,489 $ 373,644 $ 473,893 |
Property, Plant and Equipment [Table Text Block] | Property and equipment March 31, December 31, 2016 2015 Furniture & fixtures $ 262,441 $ 253,782 Computer, communications and network equipment 23,836,331 22,927,827 Software 3,801,691 3,651,222 Automobiles 26,129 37,428 Construction in progress 1,390,971 904,408 Acc. Depreciation Property & Equipment (16,344,098) (14,723,292) $ 12,973,465 $ 13,051,375 Property and equipment - Assets Held for Sale March 31, December 31, 2016 2015 Furniture & fixtures $ 28,738 $ 29,605 Computer, communications and network equipment 61,363 63,216 Software 2,189,580 2,255,695 Construction in progress 468,667 395,585 Acc. Depreciation Property & Equipment (750,148) (772,799) $ 1,998,200 $ 1,971,302 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible Assets March 31, December 31, 2016 2015 Customer Contracts, Licenses , Interconnect & Technology 1,029,640 1,016,152 Accumulated amortization Customer Contracts, Licenses, Interconnect & Technology (818,955) (757,522) $ 210,685 $ 258,630 March 31, December 31, 2016 2015 ValidSoft IP & Technology $ 13,458,909 $ 12,930,083 Accumulated amortization ValidSoft IP & Technology (10,761,977) (10,336,413) $ 2,696,932 $ 2,593,670 |
Schedule of Goodwill [Table Text Block] | Goodwill March 31, December 31, 2016 2015 Goodwill ValidSoft Ltd $ 2,769,510 $ 2,659,866 Goodwill Morodo Ltd. 184,459 177,155 Goodwill Telnicity 190,401 190,401 $ 3,144,370 $ 3,027,422 |
Schedule of Accrued Liabilities [Table Text Block] | March 31, December 31, 2016 2015 Accrued Selling, General & Administrative expenses $ 3,044,705 $ 3,648,920 Accrued cost of service 284,121 297,370 Accrued taxes (including VAT) 706,749 708,002 Accrued interest payable 222,858 199,104 Other accrued expenses 115,664 178,316 $ 4,374,097 $ 5,031,712 |
Schedule of Long-term Debt Instruments [Table Text Block] | 2014 10% + libor 3rd Party Term Loan Agreement March 31, December 31, 2016 2015 2014 10% Term Loan (principal amount) $ 6,415,000 $ 6,500,000 Deferred Financing Costs (316,335) (343,130) Debt Discount - Original Issue Discount (116,145) (132,567) Debt Discount - Warrants (439,863) (501,202) Deferred Exit Fee 87,024 57,176 $ 5,629,681 $ 5,580,277 |
Convertible Debt [Table Text Block] | Breakdown of the 9% Unsecured Subordinated Convertible Promissory Note (maturing December 2018) December 31, Additional Closings (during 2016) Amortizations (during 2016) March 31, Convertible Note Principal Amount $ (1,275,000) $ (2,273,000) $ - $ (3,548,000) Debt Discounts & Financing Costs Investor Warrants ( $0.45) now ( $0.30) 543,548 1,105,059 (188,499) 1,460,108 Conversion Feature value 214,159 296,414 (36,541) 474,032 7% Agent Warrants( $0.30) 48,463 77,354 (8,740) 117,076 7% Agent Warrants ( $0.45) now ( $0.30) 38,130 66,804 (8,740) 96,194 Financing Costs 191,872 274,193 (33,833) 432,232 $ (238,829) $ (453,176) $ (276,353) $ (968,358) March 31, December 31, Convertible note 11,826,667 4,250,000 Investor Warrants 11,826,667 4,250,000 7% Agent Warrants 827,867 297,500 7% Agent Warrants 827,867 297,500 Total Underlying share commitment 25,309,068 9,095,000 |
Schedule of Warrant And Conversion Feature Liabilities [Table Text Block] | Fair Market Value Warrants & Conversion Feature Initial FMV at closing(s) in 2015 FMV as per December 31, 2015 Initial FMV at closing(s) in 2016 FMV adjustment due to exercise Mark to market adjustment FMV as per March 31, 2016 FMV Conversion Feature $ 215,594 $ 260,398 $ 296,414 $ - $ (210,763) $ 346,048 Investor Warrants ( $0.30) $ 546,945 $ 591,473 $ 888,443 $ 206,065 $ (260,774) $ 1,425,207 7% Agent Warrants( $0.30) 48,836 52,344 77,354 - (29,195) 100,503 7% Agent Warrants ( $0.30) 38,286 41,403 62,930 14,424 (18,254) 100,503 FMV Warrant Liabilities $ 634,067 $ 685,220 $ 1,028,727 $ 220,489 $ (308,223) $ 1,626,213 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables summarizes fair value measurements by level as of March 31, 2016 and December 31, 2015 for and the Company’s liabilities measured at fair value on a recurring basis: March 31, 2016 Level 1 Level 2 Level 3 Total Derivative Liabilities Conversion feature $ - $ - $ 346,048 $ 346,048 Warrant Liabilities - - $ 1,626,213 $ 1,626,213 Total Derivatives Liabilities $ - $ - $ 1,972,261 $ 1,972,261 December 31, 2015 Level 1 Level 2 Level 3 Total Derivative Liabilities Conversion feature $ - $ - $ 260,398 $ 260,398 Warrant Liabilities - - $ 685,220 $ 685,220 Total Derivatives Liabilities $ - $ - $ 945,618 $ 945,618 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | The table below summarizes the warrants outstanding as of March 31, 2016 and as of December 31, 2015: Outstanding Exercise/ Expiring March 31, 2016 December 31, 2015 Warrants Fundraising $ 0.30- $0.95 2013 2021 22,140,295 29,610,206 Warrants Other $ 2.21 2016 - 18,659 22,140,295 29,628,865 |
Amended and Restated 2008 Lon19
Amended and Restated 2008 Long Term Incentive Compensation Plan (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Reconciliation Of Registered And Available Shares And Or Options [Table Text Block] | Amended and Restated 2008 Long-Term Incentive Compensation Plan Total Authorized under the plan 56,000,000 Shares issued in prior years 6,999,864 Shares issued during 2016 1,973,095 Options exercised during 2016 - Outstanding options 27,515,921 Available for grant at March 31, 2016: 19,511,120 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Stock option activity is set forth below: Options: Number of Options Weighted Average Exercise Price Outstanding as of December 31, 2015 35,864,077 $ 1.32 Granted in 2016 - $NA Exercised (with delivery of shares) - $NA Forfeitures (Pre-vesting) (3,663,481) $ 1.05 Expirations (Post-vesting) (4,684,675) $ 1.74 Exchanged for Cashless exercise - $NA Outstanding as of March 31, 2016 27,515,921 $ 1.05 |
Income taxes (Tables)
Income taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The following table presents details of the net provision (benefit) for income taxes: March 31, 2016 2015 Net Provision (Benefit) for income taxes $ 9,929 $ (68,492) |
Significant Customer and Geog21
Significant Customer and Geographical Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Sales to our significant customers, as a percentage of net revenue were as follows: Three Months Ended March 31 2016 2015 Two largest customers 86.1 % 67.4 % The geographical distribution of our revenue, as a percentage of revenue, was as follows: Three Months Ended March 31 2016 2015 Europe 91.4 % 64.9 % All other (non-European) countries 8.6 35.1 100.0 % 100.0 % |
Financial Condition (Details Te
Financial Condition (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Income (Loss) Attributable to Parent, Total | $ (4,313,790) | $ (2,125,173) | ||
Retained Earnings (Accumulated Deficit), Total | (259,949,321) | $ (255,635,531) | ||
Impairment of Ongoing Project | 1,900,000 | |||
Proceeds from Convertible Debt | 2,273,000 | 0 | 1,998,807 | |
Proceeds from Divestiture of Businesses and Interests in Affiliates, Total | 12,500,000 | |||
Cash and Cash Equivalents, at Carrying Value, Total | 406,509 | $ 994,693 | $ 369,250 | $ 1,904,160 |
Employee Severance [Member] | ||||
Restructuring Charges, Total | 600,000 | |||
2014 10% Term Loan Agreement [Member] | ||||
Repayments of Debt | $ 250,000 | |||
Convertible Note Offering 2015 [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | |||
Cross River Initiatives LLC [Member] | ||||
Proceeds from Divestiture of Businesses and Interests in Affiliates, Total | $ 700,000 |
Description of Business, Basi23
Description of Business, Basis of Presentation and Use of Estimates (Details Textual) | Mar. 31, 2016 |
Et Boss Mobile network platform [Member] | |
Noncontrolling Interest, Ownership Percentage by Parent | 70.00% |
Et Boss Business Support System Operations Support Systems [Member] | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Supplemental Financial Inform24
Supplemental Financial Information (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Supplemental Financial Information [Line Items] | ||
Recurring & Non recurring prepaid expenses | $ 1,154,533 | $ 1,387,905 |
Value added tax | 716,170 | 621,286 |
Inventory SIM cards | 7,191 | 7,045 |
Prepaid Expense and Other Assets, Current | $ 1,877,894 | $ 2,016,236 |
Supplemental Financial Inform25
Supplemental Financial Information (Details 1) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Supplemental Financial Information [Line Items] | ||
Long term deposits | $ 283,342 | $ 285,404 |
Due from third parties | 90,302 | 188,489 |
Other Assets, Noncurrent | $ 373,644 | $ 473,893 |
Supplemental Financial Inform26
Supplemental Financial Information (Details 2) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation and amortization | $ (16,344,098) | $ (14,723,292) |
Property and equipment | 12,973,465 | 13,051,375 |
Assets Held for Sales [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation and amortization | (750,148) | (772,799) |
Property and equipment | 1,998,200 | 1,971,302 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 262,441 | 253,782 |
Furniture and Fixtures [Member] | Assets Held for Sales [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 28,738 | 29,605 |
Computer, communications and network equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 23,836,331 | 22,927,827 |
Computer, communications and network equipment [Member] | Assets Held for Sales [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 61,363 | 63,216 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,801,691 | 3,651,222 |
Software [Member] | Assets Held for Sales [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,189,580 | 2,255,695 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 26,129 | 37,428 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,390,971 | 904,408 |
Construction in Progress [Member] | Assets Held for Sales [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 468,667 | $ 395,585 |
Supplemental Financial Inform27
Supplemental Financial Information (Details 3) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, net | $ 210,685 | $ 258,630 |
Assets Held for Sales [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross | 2,696,932 | 2,593,670 |
Customer Contracts Licenses Interconnect And Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross | 1,029,640 | 1,016,152 |
Accumulated amortization | (818,955) | (757,522) |
ValidSoft IP & Technology [Member] | Assets Held for Sales [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | (10,761,977) | (10,336,413) |
Total intangible assets, net | $ 13,458,909 | $ 12,930,083 |
Supplemental Financial Inform28
Supplemental Financial Information (Details 4) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Goodwill [Line Items] | ||
Goodwill | $ 3,144,370 | $ 3,027,422 |
ValidSoft Ltd [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 2,769,510 | 2,659,866 |
Morodo Limited [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 184,459 | 177,155 |
Tenicity LLC [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 190,401 | $ 190,401 |
Supplemental Financial Inform29
Supplemental Financial Information (Details 5) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Supplemental Financial Information [Line Items] | ||
Accrued Selling, General & Administrative expenses | $ 3,044,705 | $ 3,648,920 |
Accrued cost of service | 284,121 | 297,370 |
Accrued taxes (including VAT) | 706,749 | 708,002 |
Accrued interest payable | 222,858 | 199,104 |
Other accrued expenses | 115,664 | 178,316 |
Total accrued expenses | $ 4,374,097 | $ 5,031,712 |
Supplemental Financial Inform30
Supplemental Financial Information (Details 6) - 2014 10% Term Loan Agreement [Member] - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
2014 10% Term Loan (principal amount) | $ 6,415,000 | $ 6,500,000 |
Deferred Financing Costs | (316,335) | (343,130) |
Debt Discount - Original Issue Discount | (116,145) | (132,567) |
Debt Discount - Warrants | (439,863) | (501,202) |
Deferred Exit Fee | 87,024 | 57,176 |
Long-term Debt, Total | $ 5,629,681 | $ 5,580,277 |
Supplemental Financial Inform31
Supplemental Financial Information (Details 7) - Convertible Debt [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Short-term Debt [Line Items] | ||
Convertible Note Principal Amount | $ (3,548,000) | $ (1,275,000) |
Debt Discounts & Financing Costs | (968,358) | (238,829) |
Convertible Note Principal Amount, Total Amortizations | 0 | |
Debt Discounts & Financing Costs, Total Amortizations | (276,353) | |
Additional Closings [Member] | ||
Short-term Debt [Line Items] | ||
Convertible Note Principal Amount | (2,273,000) | |
Debt Discounts & Financing Costs | (453,176) | |
Investor Warrants (@$0.45) now (@$0.30) [Member] | ||
Short-term Debt [Line Items] | ||
Debt Discounts & Financing Costs | 1,460,108 | 543,548 |
Debt Discounts & Financing Costs, Total Amortizations | (188,499) | |
Investor Warrants (@$0.45) now (@$0.30) [Member] | Additional Closings [Member] | ||
Short-term Debt [Line Items] | ||
Debt Discounts & Financing Costs | 1,105,059 | |
7% Agent Warrants(@$0.30) [Member] | ||
Short-term Debt [Line Items] | ||
Debt Discounts & Financing Costs | 117,076 | 48,463 |
Debt Discounts & Financing Costs, Total Amortizations | (8,740) | |
7% Agent Warrants(@$0.30) [Member] | Additional Closings [Member] | ||
Short-term Debt [Line Items] | ||
Debt Discounts & Financing Costs | 77,354 | |
7% Agent Warrants (@$0.45) now (@$0.30) [Member] | ||
Short-term Debt [Line Items] | ||
Debt Discounts & Financing Costs | 96,194 | 38,130 |
Debt Discounts & Financing Costs, Total Amortizations | (8,740) | |
7% Agent Warrants (@$0.45) now (@$0.30) [Member] | Additional Closings [Member] | ||
Short-term Debt [Line Items] | ||
Debt Discounts & Financing Costs | 66,804 | |
Conversion Feature value [Member] | ||
Short-term Debt [Line Items] | ||
Debt Discounts & Financing Costs | 474,032 | 214,159 |
Debt Discounts & Financing Costs, Total Amortizations | (36,541) | |
Conversion Feature value [Member] | Additional Closings [Member] | ||
Short-term Debt [Line Items] | ||
Debt Discounts & Financing Costs | 296,414 | |
Financing Costs [Member] | ||
Short-term Debt [Line Items] | ||
Debt Discounts & Financing Costs | 432,232 | $ 191,872 |
Debt Discounts & Financing Costs, Total Amortizations | (33,833) | |
Financing Costs [Member] | Additional Closings [Member] | ||
Short-term Debt [Line Items] | ||
Debt Discounts & Financing Costs | $ 274,193 |
Supplemental Financial Inform32
Supplemental Financial Information (Details 8) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Warrant and Conversion Feature Liabilities [Line Items] | |||
Debt instrument, convertible, beneficial conversion feature | $ 296,414 | $ 215,594 | |
Debt conversion, converted instrument, amount | 346,048 | 260,398 | |
Derivative liability | 1,626,213 | 685,220 | |
Financial liabilities fair value disclosure | 1,028,727 | 634,067 | |
Fair Value Adjustment, Change in Exercise Price | 0 | ||
Changes in derivative liabilities | 518,986 | $ 246,702 | |
Convertible Notes Payable [Member] | |||
Warrant and Conversion Feature Liabilities [Line Items] | |||
Fair Value Adjustment, Change in Exercise Price | 220,489 | ||
Changes in derivative liabilities | (308,223) | ||
Convertible Notes Payable [Member] | Investor Warrants [Member] | |||
Warrant and Conversion Feature Liabilities [Line Items] | |||
Derivative liability | 1,425,207 | 591,473 | |
Fair Value Adjustment, Change in Exercise Price | 206,065 | ||
Changes in derivative liabilities | (260,774) | ||
Convertible Notes Payable [Member] | Agent Warrants One [Member] | |||
Warrant and Conversion Feature Liabilities [Line Items] | |||
Derivative liability | 100,503 | 52,344 | |
Fair Value Adjustment, Change in Exercise Price | 0 | ||
Changes in derivative liabilities | (29,195) | ||
Convertible Notes Payable [Member] | Agent Warrants Two [Member] | |||
Warrant and Conversion Feature Liabilities [Line Items] | |||
Derivative liability | 100,503 | $ 41,403 | |
Fair Value Adjustment, Change in Exercise Price | 14,424 | ||
Changes in derivative liabilities | $ (18,254) | ||
Convertible Debt [Member] | |||
Warrant and Conversion Feature Liabilities [Line Items] | |||
Debt conversion, converted instrument, warrants or options issued | 25,309,068 | 9,095,000 | |
Convertible Debt [Member] | Investor Warrants [Member] | |||
Warrant and Conversion Feature Liabilities [Line Items] | |||
Debt conversion, converted instrument, warrants or options issued | 11,826,667 | 4,250,000 | |
Derivative liability | $ 888,443 | $ 546,945 | |
Convertible Debt [Member] | Agent Warrants One [Member] | |||
Warrant and Conversion Feature Liabilities [Line Items] | |||
Debt conversion, converted instrument, warrants or options issued | 827,867 | 297,500 | |
Derivative liability | $ 77,354 | $ 48,836 | |
Convertible Debt [Member] | Agent Warrants Two [Member] | |||
Warrant and Conversion Feature Liabilities [Line Items] | |||
Debt conversion, converted instrument, warrants or options issued | 827,867 | 297,500 | |
Derivative liability | $ 62,930 | $ 38,286 | |
Convertible Debt [Member] | Convertible Notes Payable [Member] | |||
Warrant and Conversion Feature Liabilities [Line Items] | |||
Debt conversion, converted instrument, warrants or options issued | 11,826,667 | 4,250,000 |
Supplemental Financial Inform33
Supplemental Financial Information (Details Textual) | 3 Months Ended |
Mar. 31, 2016USD ($)$ / shares | |
Debt Instrument [Line Items] | |
Fair Value Adjustment, Change in Exercise Price | $ 0 |
Debt Instrument, Unamortized Discount | 125,511 |
Accretion of Discount | $ 94,979 |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.45 |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.30 |
FMV Warrant Liabilities [Member] | |
Debt Instrument [Line Items] | |
Fair Value Adjustment, Change in Exercise Price | $ 220,490 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative Liabilities | ||
Derivative Liability | $ 1,626,213 | $ 685,220 |
Fair Value, Measurements, Recurring [Member] | ||
Derivative Liabilities | ||
Derivative Liability | 1,972,261 | 945,618 |
Fair Value, Measurements, Recurring [Member] | Conversion Feature [Member] | ||
Derivative Liabilities | ||
Derivative Liability | 346,048 | 260,398 |
Fair Value, Measurements, Recurring [Member] | Warrant [Member] | ||
Derivative Liabilities | ||
Derivative Liability | 1,626,213 | 685,220 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Derivative Liabilities | ||
Derivative Liability | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Conversion Feature [Member] | ||
Derivative Liabilities | ||
Derivative Liability | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Warrant [Member] | ||
Derivative Liabilities | ||
Derivative Liability | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative Liabilities | ||
Derivative Liability | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Conversion Feature [Member] | ||
Derivative Liabilities | ||
Derivative Liability | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Warrant [Member] | ||
Derivative Liabilities | ||
Derivative Liability | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Derivative Liabilities | ||
Derivative Liability | 1,972,261 | 945,618 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Conversion Feature [Member] | ||
Derivative Liabilities | ||
Derivative Liability | 346,048 | 260,398 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Warrant [Member] | ||
Derivative Liabilities | ||
Derivative Liability | $ 1,626,213 | $ 685,220 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 22,140,295 | 29,628,865 |
Warrants - Fundraising [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 22,140,295 | 29,610,206 |
Warrants - Other [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Outstanding | 0 | 18,659 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.21 | |
Class Of Warrant Or Right Expiration Date | Dec. 31, 2016 | |
Maximum [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.45 | |
Maximum [Member] | Warrants - Fundraising [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.95 | |
Class Of Warrant Or Right Expiration Date | Dec. 31, 2021 | |
Minimum [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.30 | |
Minimum [Member] | Warrants - Fundraising [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.30 | |
Class Of Warrant Or Right Expiration Date | Dec. 31, 2013 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 |
Common Stock, Shares, Issued | 163,349,482 | 161,376,387 |
Common Stock, Shares, Outstanding | 163,349,482 | 161,376,387 |
Stock Issued During Period, Shares, Period Increase (Decrease) | 1,973,095 | |
Number Of Common Stock Shares Issued Upon Exercise Of Warrants | 1,473,095 | |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.00001 | $ 0.00001 |
Number Of Shares Issued According To Stock Transfer Agent | 163,595,382 | 161,622,287 |
Shares Issued Difference | 245,900 | |
Unreturned Shares From Cancelled Acquisitions | 233,900 | |
Shares Issued Under Employee Benefits Plan Treasury Shares | 12,000 | |
Class of Warrant or Right, Outstanding | 22,140,295 | 29,628,865 |
Investors [Member] | ||
Class of Warrant or Right, Outstanding | 22,140,295 | 29,628,865 |
Issuance Of Warrant Liabilities | $ 1,636,763 | $ 685,220 |
Placement Agents [Member] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 0.46 | |
Common Stock [Member] | ||
Common Stock, Shares, Outstanding | 163,349,482 | |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures, Total | 500,000 |
Amended and Restated 2008 Lon37
Amended and Restated 2008 Long Term Incentive Compensation Plan (Details) - Employee Stock Option [Member] | 3 Months Ended |
Mar. 31, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Authorized under the plan | 56,000,000 |
Shares issued in prior years | 6,999,864 |
Shares issued during 2016 | 1,973,095 |
Options exercised during 2016 | 0 |
Outstanding options | 27,515,921 |
Available for grant at March 31, 2016: | 19,511,120 |
Amended and Restated 2008 Lon38
Amended and Restated 2008 Long Term Incentive Compensation Plan (Details 1) - 2008 Long-Term Incentive Plan [Member] | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options, Outstanding | 35,864,077 |
Number of Options, Granted | 0 |
Number of Options, Exercised (with delivery of shares) | 0 |
Number of Options, Forfeitures (Pre-vesting) | (3,663,481) |
Number of Options, Expirations (Post-vesting) | (4,684,675) |
Number of Options, Exchanged for Cashless exercise | 0 |
Number of Options, Outstanding | 27,515,921 |
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ / shares | $ 1.32 |
Weighted Average Exercise Price, Forfeitures (Pre-vesting) (in dollars per share) | $ / shares | 1.05 |
Weighted Average Exercise Price, Expirations (Post-vesting) (in dollars per share) | $ / shares | 1.74 |
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ / shares | $ 1.05 |
Amended and Restated 2008 Lon39
Amended and Restated 2008 Long Term Incentive Compensation Plan (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | |
Severance and Independent Contractor Agreement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures, Total | 500,000 | ||
2008 Long-Term Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 1,651,460 | $ 7,419,546 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued during 2016 | 1,973,095 |
Income taxes (Details)
Income taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Line Items] | ||
Net Provision (Benefit) for income taxes | $ 9,929 | $ (68,492) |
Significant Customer and Geog41
Significant Customer and Geographical Information (Details) - Revenue Concentration [Member] | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Geographic Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of revenues | 100.00% | 100.00% |
Geographic Concentration Risk [Member] | Europe [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of revenues | 91.40% | 64.90% |
Geographic Concentration Risk [Member] | All other (non-European) countries [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of revenues | 8.60% | 35.10% |
Two Largest Customers [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of revenues | 86.10% | 67.40% |
Advance Purchase Payment on "42
Advance Purchase Payment on "Assets held for Sale" (Details Textual) | Mar. 31, 2016USD ($) |
Advance Purchase Payment on Assets Held For Sale | $ 700,000 |
Note Warrant [Member] | Cross River Initiatives LLC [Member] | |
Debt Instrument, Interest Rate, Stated Percentage | 9.00% |
Five Lakhs Advance Payment [Member] | |
Debt Instrument, Face Amount | $ 500,000 |
Working Capital Contribution [Member] | |
Debt Instrument, Face Amount | $ 200,000 |