PARETEUM (TEUM) 10-Q 9 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 08, 2019
Document and Entity Information
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Entity Registrant Name	PARETEUM Corp
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Trading Symbol	TEUM
Entity Common Stock, Shares Outstanding		111,903,762
Entity Central Index Key	0001084384
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2019	Dec. 31, 2018
CURRENT ASSETS
Cash and cash equivalents	$ 3,377,556	$ 6,051,709
Restricted cash	1,104,757	430,655
Accounts receivable, net of an allowance for doubtful accounts of $1,307,071 at June 30, 2019 and $1,021,179 at December 31, 2018, respectively	45,061,236	15,361,594
Notes receivable, current	1,024,025	0
Prepaid expenses and other current assets	3,385,842	2,083,950
Total current assets	53,953,416	23,927,908
NON-CURRENT ASSETS
OTHER ASSETS	956,810	45,336
RIGHT OF USE LEASE ASSETS	2,493,352	0
NOTES RECEIVABLE, NON-CURRENT	2,819,200	1,082,436
PROPERTY AND EQUIPMENT, NET	4,896,503	4,553,250
INTANGIBLE ASSETS, NET	60,262,420	39,658,325
GOODWILL	121,486,562	91,773,911
TOTAL ASSETS	246,868,263	161,041,166
CURRENT LIABILITIES
Accounts payable and customer deposits	28,183,711	10,337,629
Net billings in excess of revenues	1,330,757	927,780
Accrued expenses and other payables	14,036,645	7,952,380
Promissory note	671,165	681,220
Lease liabilities, current	1,776,900	0
9% Unsecured subordinate convertible promissory note (net of debt discount and debt issuance costs)	0	106,967
Total current liabilities	45,999,178	20,005,976
LONG TERM LIABILITIES
Senior secured debt, net	22,077,767	0
Lease liabilities, non-current	1,013,785	0
Other long term liabilities	63,853	212,703
Deferred tax liabilities	7,712,860	8,415,825
Related party loan	342,000	341,998
Total long term liabilities	31,210,265	8,970,526
Total liabilities	77,209,443	28,976,502
EQUITY
Preferred Stock $0.00001 par value, 50,000,000 shares authorized, none issued and outstanding as of June 30, 2019 and December 31, 2018, respectively	0	0
Common Stock $0.00001 par value, 500,000,000 shares authorized, 111,652,349 issued and outstanding as of June 30, 2019 and 97,852,911 shares issued and outstanding as of December 31, 2018, respectively	494,803,176	450,990,827
Accumulated other comprehensive loss	(6,224,649)	(6,300,780)
Accumulated deficit	(318,919,707)	(312,625,383)
Total equity	169,658,820	132,064,664
TOTAL LIABILITIES AND EQUITY	$ 246,868,263	$ 161,041,166

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 1,307,071	$ 1,021,179
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	500,000,000	500,000,000
Common Stock, Shares, Issued	111,652,349	97,852,911
Common Stock, Shares, Outstanding	111,652,349	97,852,911

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
REVENUES	$ 34,148,396	$ 6,003,180	$ 57,188,310	$ 10,115,750
COST AND OPERATING EXPENSES
Cost of service, excluding depreciation and amortization	15,293,244	1,779,882	25,361,468	2,974,405
Product development	3,242,145	753,931	5,816,189	1,480,776
Sales and marketing	2,769,065	652,442	5,709,747	1,341,440
General and administrative	9,033,690	2,214,070	15,896,619	4,510,922
Restructuring and acquisition charges	427,586	5,592	3,507,950	79,193
Depreciation and amortization	3,224,027	994,318	6,067,430	1,959,609
Total cost and operating expenses	33,989,757	6,400,235	62,359,403	12,346,345
INCOME/(LOSS) FROM OPERATIONS	158,639	(397,055)	(5,171,093)	(2,230,595)
OTHER INCOME/ (EXPENSE)
Interest income	149,298	43,193	250,844	85,865
Interest expense	(777,907)	(99,708)	(1,326,767)	(163,467)
Interest expense related to debt discount accretion and conversion feature	(199,224)	(30,272)	(271,205)	(59,838)
Changes in derivative liabilities	0	1,597,647	0	1,283,914
Other (expense)/income	(194,354)	567,710	(241,485)	637,255
Amortization of deferred financing costs	(101,664)	(6,209)	(151,355)	(12,351)
Total other (expense)/income	(1,123,851)	2,072,361	(1,739,968)	1,771,378
(LOSS)/INCOME BEFORE INCOME TAX (BENEFIT)/EXPENSE	(965,212)	1,675,306	(6,911,061)	(459,217)
Income tax (benefit)/expense	(449,403)	18,842	(616,737)	18,424
NET (LOSS)/INCOME	(515,809)	1,656,464	(6,294,324)	(477,641)
OTHER COMPREHENSIVE (LOSS)/INCOME
Foreign currency translation gain/(loss)	435,935	(79,137)	76,131	25,266
COMPREHENSIVE (LOSS)/INCOME	$ (79,874)	$ 1,577,327	$ (6,218,193)	$ (452,375)
Net (loss)/income per common share and equivalents - basic	$ 0	$ 0.03	$ (0.06)	$ (0.01)
Net (loss)/income per common share and equivalents - diluted	$ 0	$ 0.03	$ (0.06)	$ (0.01)
Weighted average shares outstanding during the period - basic	111,074,977	53,348,376	107,341,105	51,714,482
Weighted average shares outstanding during the period - diluted	111,074,977	64,741,232	107,341,105	51,714,482

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Accumulated Other comprehensive Loss [Member]	Accumulated Deficit [Member]	Total
Beginning Balance at Dec. 31, 2017	$ 321,271,437	$ (6,306,691)	$ (299,543,213)	$ 15,421,533
Beginning Balance (in shares) at Dec. 31, 2017	46,617,093
ASC 606 transition adjustment	$ 0	107,520	0	107,520
Warrant exercises	$ 2,542,250	0	0	2,542,250
Warrant exercises (in shares)	4,250,748
Stock-based compensation	$ 1,052,567	0	0	1,052,567
Stock-based compensation (in shares)	178,553
Other comprehensive loss due to foreign exchange rate translation, net of tax	$ 0	(3,118)	0	(3,118)
Net loss	0	0	(2,134,102)	(2,134,102)
Ending Balance at Mar. 31, 2018	$ 324,866,254	(6,202,289)	(301,677,315)	16,986,651
Ending Balance (in shares) at Mar. 31, 2018	51,046,394
Beginning Balance at Dec. 31, 2017	$ 321,271,437	(6,306,691)	(299,543,213)	15,421,533
Beginning Balance (in shares) at Dec. 31, 2017	46,617,093
Conversions of convertible notes				(1,911,380)
Shares issued to senior secured lender				0
Net loss				(477,641)
Ending Balance at Jun. 30, 2018	$ 331,959,299	(6,281,425)	(300,020,851)	25,657,023
Ending Balance (in shares) at Jun. 30, 2018	55,656,115
Beginning Balance at Mar. 31, 2018	$ 324,866,254	(6,202,289)	(301,677,315)	16,986,651
Beginning Balance (in shares) at Mar. 31, 2018	51,046,394
ASC 606 transition adjustment	$ 0	(107,520)	0	(107,520)
Shares issued for acquisitions (in shares)	0
Warrant exercises	$ 841,720	0	0	841,720
Warrant exercises (in shares)	1,663,522
Shares issued in equity financing	$ 5,467,100	0	0	5,467,100
Shares issued in equity financing (in shares)	2,453,400
Stock-based compensation	$ 697,448	0	0	697,448
Stock-based compensation (in shares)	447,970
Services settled by issuance of shares	$ 86,778	0	0	86,778
Services settled by issuance of shares (in shares)	44,829
Other comprehensive loss due to foreign exchange rate translation, net of tax	$ 0	28,384	0	28,384
Net loss	0	0	1,656,464	1,656,464
Ending Balance at Jun. 30, 2018	$ 331,959,299	(6,281,425)	(300,020,851)	25,657,023
Ending Balance (in shares) at Jun. 30, 2018	55,656,115
Beginning Balance at Dec. 31, 2018	$ 450,990,827	(6,300,780)	(312,625,383)	132,064,664
Beginning Balance (in shares) at Dec. 31, 2018	97,852,911
Shares issued for acquisitions	$ 29,253,287	0	0	29,253,287
Shares issued for acquisitions (in shares)	9,865,412
Warrant exercises	$ 647,447	0	0	647,447
Warrant exercises (in shares)	501,606
Stock-based compensation	$ 3,713,614	0	0	3,713,614
Stock-based compensation (in shares)	594,475
Services settled by issuance of shares	$ 1,522,636		0	1,522,636
Services settled by issuance of shares (in shares)	420,514
Stock option exercises	$ 69,567	0	0	69,567
Stock option exercises (in shares)	68,083
Shares in transit	$ 1,451,700	0	0	1,451,700
Shares in transit (in shares)	0
Shares issued to be cancelled	$ 64,775	0	0	64,775
Shares issued to be cancelled (in shares)	37,014
Shares issued to senior secured lender	$ 956,500	0	0	956,500
Shares issued to senior secured lender (in shares)	425,000
Other comprehensive loss due to foreign exchange rate translation, net of tax	$ 0	(359,804)	0	(359,804)
Net loss	0	0	(5,778,515)	(5,778,515)
Ending Balance at Mar. 31, 2019	$ 488,670,353	(6,660,584)	(318,403,898)	163,605,871
Ending Balance (in shares) at Mar. 31, 2019	109,765,015
Beginning Balance at Dec. 31, 2018	$ 450,990,827	(6,300,780)	(312,625,383)	$ 132,064,664
Beginning Balance (in shares) at Dec. 31, 2018	97,852,911
Shares issued for acquisitions (in shares)				10,970,412
Conversions of convertible notes				$ (147,385)
Conversion of notes (in shares)				84,220
Services settled by issuance of shares	$ 0	0	0	$ 0
Services settled by issuance of shares (in shares)	0
Stock option exercises (in shares)				176,038
Stock options granted and rescinded (in Shares)				(158,552)
Shares issued to senior secured lender				$ 1,606,500
Net loss				(6,294,324)
Ending Balance at Jun. 30, 2019	$ 494,803,176	(6,224,649)	(318,919,707)	169,658,820
Ending Balance (in shares) at Jun. 30, 2019	111,652,349
Beginning Balance at Mar. 31, 2019	$ 488,670,353	(6,660,584)	(318,403,898)	163,605,871
Beginning Balance (in shares) at Mar. 31, 2019	109,765,015
Shares issued for acquisitions	$ 1,692,000	0	0	1,692,000
Shares issued for acquisitions (in shares)	1,105,000
Warrant exercises	$ 737,993	0	0	737,993
Warrant exercises (in shares)	356,738
Conversions of convertible notes	$ 147,385	0	0	147,385
Conversion of notes (in shares)	84,220
Stock-based compensation	$ 2,008,833	0	0	2,008,833
Stock-based compensation (in shares)	0
Services settled by issuance of shares	$ 756,602	0	0	756,602
Services settled by issuance of shares (in shares)	233,282
Stock option exercises	$ 140,010	0	0	$ 140,010
Stock option exercises (in shares)	107,955			107,955
Stock options granted and rescinded (in Shares)				(335,333)
Shares issued to be cancelled	$ 0	0	0	$ 0
Shares issued to be cancelled (in shares)	139
Shares issued to senior secured lender	$ 650,000	0	0	650,000
Shares issued to senior secured lender (in shares)	0
Other comprehensive loss due to foreign exchange rate translation, net of tax	$ 0	435,935	0	435,935
Net loss	0	0	(515,809)	(515,809)
Ending Balance at Jun. 30, 2019	$ 494,803,176	$ (6,224,649)	$ (318,919,707)	$ 169,658,820
Ending Balance (in shares) at Jun. 30, 2019	111,652,349

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (6,294,324)	$ (477,641)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	6,067,430	1,959,609
Provision for doubtful accounts	285,892	0
Stock based compensation	5,722,447	1,771,580
Change in fair value of warrant liability	0	(1,283,914)
Amortization of deferred financing costs	151,355	12,351
Interest expense relating to debt discount accretion and conversion feature	271,205	59,838
Payables settled by issuance of shares	2,279,238	86,778
Changes in operating assets and liabilities:
(Increase) in accounts receivable	(25,190,857)	(1,851,046)
Decrease/(Increase) in prepaid expenses, deposits and other assets	2,974,602	(351,046)
Increase in accounts payable and customer deposits	6,936,552	606,393
(Decrease)/Increase in Net billings in excess of revenues and deferred revenue	(2,000,430)	22,627
(Decrease) in accrued expenses and other payables	(1,644,320)	(1,508,005)
Net cash (used in) operating activities	(10,441,210)	(952,476)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, and capitalized software	(1,650,013)	(1,877,477)
Issuance of notes receivable	(2,760,789)	0
Business combinations, net of cash acquired	(1,562,636)	0
Net cash (used in) investing activities	(5,973,438)	(1,877,477)
CASH FLOWS FROM FINANCING ACTIVITIES:
Exercise of warrants and options	1,595,017	3,070,110
Increase in short term loans	141,639	0
Proceeds from senior secured debt issued	25,000,000	0
Repayments on other long term loans	0	(32,682)
Financing related fees	(623,555)	(653,000)
Gross proceeds from public offering	0	6,100,000
Principal repayment Senior Secured Loan	(11,669,963)	0
Net cash provided by financing activities	14,443,138	8,484,428
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(28,541)	42,185
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(2,000,051)	5,696,660
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF THE PERIOD	6,482,364	13,737,675
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF THE PERIOD	4,482,313	19,434,335
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash (paid)/received during the period for interest, net	(840,562)	43,193
Cash paid during the period for taxes	(56,201)	0
NON-CASH FINANCING ACTIVITIES
Acquisitions paid for in common shares	(32,337,287)	0
Conversions of convertible notes	(147,385)	(1,911,380)
Settlement of debt paid for in common shares	(2,279,238)	0
Senior Secured Lender fees paid for in shares	(1,606,500)	0
Amendment to warrants and convertible notes into common shares	$ 0	$ 313,733

Financial Condition

Financial Condition	6 Months Ended
	Jun. 30, 2019
Financial Condition
Financial Condition	Note 1. Financial Condition As reflected in the accompanying condensed consolidated financial statements, Pareteum Corporation (“Pareteum,” the “Company,” “we,” “us,” or “our”) (NASDAQ: TEUM) reported a net loss of $6,294,324 for the six months ended June 30, 2019, and had an accumulated deficit of $318,919,707 as of June 30, 2019.

Description of Business, Basis

Description of Business, Basis of Presentation and Use of Estimates	6 Months Ended
	Jun. 30, 2019
Description of Business, Basis of Presentation and Use of Estimates
Description of Business, Basis of Presentation and Use of Estimates	Note 2. Description of Business, Basis of Presentation and Use of Estimates Business overview Pareteum has developed a Communications Cloud Services Platform, providing (i) Mobility, (ii) Messaging, and (iii) Security services and applications, with a Single-Sign-On, API and software development suite. The Pareteum platform hosts integrated IT/Back Office and Core Network functionality for mobile network operators, and for enterprises implement and leverage mobile communications solutions on a fully outsourced SaaS, PaaS and/or IaaS basis: made available either as an on-premise solution or as a fully hosted service in the Cloud depending on the needs of our customers. Pareteum also delivers an Operational Support System (“OSS”) for channel partners, with Application Program Interfaces (“APIs”) for integration with third party systems, workflows for complex application orchestration, customer support with branded portals and plug-ins for a multitude of other applications. These features facilitate and improve the ability of our channel partners to provide support and to drive sales. Basis of Presentation of Interim Periods The unaudited interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP,”) for interim financial information and in accordance with the instructions to Securities and Exchange Commission (“SEC”), Form 10‑Q and Article 8 of SEC Regulation S-X. They do not include all the information and footnotes required by GAAP 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, 2018, included in our 2018 Annual Report on Form 10‑K filed with the SEC on March 18, 2019, referred to as our 2018 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 and six month periods ended June 30, 2019, are not necessarily indicative of the results to be expected for future quarters or the full year. All intercompany transactions and account balances have been eliminated in consolidation. As of June 30, 2019, the Company’s subsidiaries are: · its wholly owned subsidiary Pareteum North America Corp. with its wholly owned subsidiary, Pareteum UK Ltd.; · its wholly owned subsidiary Pareteum Asia PTE. Ltd.; · its wholly owned subsidiary TBR Inc. (special purpose vehicle for iPass acquisition); · its wholly-owned subsidiary Pareteum Europe B.V. (fka Elephant Talk Europe Holding B.V.) and its wholly owned subsidiaries, Elephant Talk Mobile Services B.V., Elephant Talk PRS Netherlands BV, Elephant Talk Deutschland GmbH (dormant), Elephant Talk Middle East & Africa (Holding) W.L.L., Elephant Talk Luxembourg SA (dormant), Guangzhou Elephant Talk Information Technology Limited (dormant), Elephant Talk Communications Italy S.R.L. (dormant), Elephant Talk Business Services W.L.L., Elephant Talk Middle East & Africa (Holding) Jordan L.L.C. (dormant).; · its wholly owned Elephant Talk Communications Holding AG and its wholly owned subsidiaries Pareteum Spain SLU and ETC Carrier Services GmbH.; · Pareteum Europe B.V. majority-owned subsidiaries Elephant Talk Bahrain W.L.L. (99%), ET de Mexico S.A.P.I. de C.V. (99.998%), ET-UTS NV; (51%) and LLC Pareteum (Russia) (50%) Elephant Talk; · Elephant Talk Telecomunicação do Brasil LTDA, is owned 90% by Pareteum Europe B.V. and 10% by Elephant Talk Communication Holding AG; · its wholly-owned subsidiary Elephant Talk Limited (“ETL”) and its wholly owned ET Guangdong Ltd. And its majority owned (50.54%) subsidiary Elephant Talk Middle East & Africa FZ-LLC.; · Asesores Profesionales ETAK S. de RL. De C.V. is owned 99% by Pareteum Europe B.V.; · its wholly owned subsidiary Artilium Group Ltd. And its wholly owned subsidiaries, Artilium UK Ltd., Artilium Trustee Company Limited, Artilium BV, Pareteum NV, Interactive Digital Media GMBH and United Telecom NV, and United Telecom NV's wholly-owned subsidiary, ELLO Mobile BVVA; · its wholly owned subsidiary iPass, Inc. and its wholly owned subsidiaries iPass (U.K.) Limited, iPass France SAS, iPass Deutschland GmbH, iPass Holdings Pty Ltd., iPass Asia Pte Ltd., iPass Japan, Inc., iPass India Private Limited, iPass Ltd., GoRemote Internet Communications, Inc., GoRemote International Corporation, Axcelerant, Inc., Worldwide Axcelerant Group, Mobile Automation, Inc. and Safe3W, Inc.; and · its wholly-owned subsidiary Devicescape Holdings, Inc. For a complete summary of our significant accounting policies, please refer to Note 1, “Business and Summary of Significant Accounting Policies,” in Item 8 of our 2018 Annual Report. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP 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 and intangible assets acquired in our acquisitions of Artilium, iPass and Devicescape. Significant estimates include the bad debt allowance, revenue recognition, impairment of long-lived assets, 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 and those differences could be material. Reclassification Certain reclassifications have been made to the Company’s consolidated financial statements for the prior period to conform to the current period presentation. Such reclassifications had no impact on net loss or net cash flows.

Business Combinations

Business Combinations	6 Months Ended
	Jun. 30, 2019
Business Combinations
Business Combinations	Note 3. Business Combinations On November 12, 2018, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and among the Company, Purchaser, and iPass. Pursuant to the Merger Agreement, Purchaser, a wholly-owned subsidiary of the Company, commenced the offer for the “iPass Shares for the “Transaction Consideration, upon the terms and subject to the conditions set forth in the Prospectus/Offer to Exchange dated December 4, 2018 (together with any amendments and supplements thereto, the “Offer to Exchange”), and the related Letter of Transmittal. The Offer and withdrawal rights expired at 5:00 p.m. New York City time on February 12, 2019, and promptly following such time Purchaser accepted for payment and promptly paid for all validly tendered iPass Shares in accordance with the terms of the Offer. The Company acquired 100% of the voting shares of iPass. On February 12, 2019, following acceptance and payment for the validly tendered iPass Shares and pursuant to the terms and conditions of the Merger Agreement, the Company completed its acquisition of iPass from the stockholders of iPass when Purchaser merged with and into iPass, with iPass surviving as a wholly owned subsidiary of the Company (the “Merger”). The Merger was governed by Section 251(h) of the Delaware General Corporation Law, as amended (the “DGCL”) with no stockholder vote required to consummate the Merger. At the effective time of the Merger, each iPass Share outstanding was converted into the right to receive the Transaction Consideration. The iPass Shares are no longer listed on the Nasdaq Capital Market. As part of the acquisition, the Company issued 9,865,412 common shares to shareholders and 705,000 shares were granted to employees. The allocation of the purchase price was as follows (in thousands): Purchase consideration: Shares issued to shareholders $ 29,253 Shares issued to employees 1,401 Total purchase consideration $ 30,654 Purchase price allocation: Assets: Cash and cash equivalents $ 284 Accounts receivable, net 4,344 Property, plant and equipment, net 1,092 Other assets 4,863 Intangible assets 22,700 Total assets 33,283 Liabilities: Accounts payable 11,321 Deferred revenue 1,701 Loans outstanding 10,989 Other liabilities 6,743 Total liabilities 30,754 Estimated fair value of net assets acquired 2,529 Goodwill $ 28,125 The period ended June 30, 2019, consolidated financial statements included iPass and its subsidiaries from the closing date of February 12, 2019, through June 30, 2019. The allocation of the purchase price for iPass’s intangible assets were as follows (in thousands): Estimated Useful Fair Life Value (Years) Developed Technology $ 5,500 Customer relationships 15,500 Tradename 1,700 Intangible assets $ 22,700 On April 22, 2019, the Company, together with Devicescape Holdings, Inc., a Delaware corporation and wholly-owned subsidiary of the Company (the “Holdco” and together with the Company, the “Buyer”) entered into an asset purchase agreement (the “Purchase Agreement”) with Devicescape Software, Inc., a California corporation (“Devicescape”), whereby the Buyer acquired substantially all of the assets of Devicescape and assumed certain liabilities of Devicescape, such that Holdco shall continue as a surviving subsidiary of the Company holding all assets and assuming those certain liabilities of Devicescape (the “Devicescape Purchase”). In connection with the Devicescape Purchase, and pursuant to the terms and subject to the conditions set forth in the Purchase Agreement, the Company paid cash consideration of $2,000,000 and issued to the stockholders of Devicescape an aggregate of 400,000 shares of the Company’s common stock at a value of $1,692,000 based on our closing price on April 22, 2019, of $4.23 per share. The allocation of the purchase price was as follows (in thousands): Purchase consideration: Cash consideration $ 2,000 Shares issued to shareholders 1,692 Total purchase consideration $ 3,692 Purchase price allocation: Assets: Cash and cash equivalents $ 153 Accounts receivable, net 451 Intangible assets 1,588 Total assets 2,192 Liabilities: Accounts payable & other liabilities 88 Total liabilities 88 Estimated fair value of net assets acquired 2,104 Goodwill $ 1,588 The June 30, 2019, consolidated financial statements included Devicescape and its subsidiaries from April 22, 2019, the acquisition date, through June 30, 2019 . The allocation of the purchase price for Devicescape’s intangible assets were as follows (in thousands): Estimated Useful Fair Life Value (Years) Developed Technology $ 1,588 8 Intangible assets $ 1,588

Balance Sheet Information

Balance Sheet Information	6 Months Ended
	Jun. 30, 2019
Balance Sheet Information
Balance Sheet Information	Note 4. Balance Sheet Information The following tables present details of our unaudited condensed consolidated financial statements: June 30, December 31, Prepaid expenses and other current assets 2019 2018 Prepaid expenses $ 2,960,148 $ 1,659,783 VAT 425,694 424,167 $ 3,385,842 $ 2,083,950 June 30, December 31, Property and equipment, net 2019 2018 Furniture and fixtures $ 561,858 $ 139,857 Computer, communications and network equipment 17,341,035 17,520,435 Software 4,911,585 4,716,816 Automobiles 324,534 10,744 Software development 3,589,731 1,656,739 Accumulated depreciation and amortization (21,832,240) (19,491,341) $ 4,896,503 $ 4,553,250 June 30, December 31, Intangible Assets, net 2019 2018 Intangible assets: Developed technology $ 27,687,821 $ 20,600,000 Consumer relationships 32,300,000 16,800,000 Tradename 5,100,000 3,400,000 Accumulated amortization (4,825,401) (1,141,675) $ 60,262,420 $ 39,658,325 June 30, December 31, Accrued expenses and other payables 2019 2018 Accrued selling, general and administrative expenses $ 3,987,888 $ 2,396,941 Accrued restructuring & acquisition related costs 972,714 1,885,194 Accrued cost of service 5,765,483 1,070,099 Accrued taxes (including VAT) 2,980,801 2,283,999 Accrued interest payable 184,415 67,613 Other accrued expenses 145,344 248,534 $ 14,036,645 $ 7,952,380 9% Unsecured Subordinated Convertible Promissory Note (Matured between December 2018 and June 2019) Conversions (during 2019) Outstanding Regular including 10% Early Outstanding June 30, Amortizations accelerated Repayment December 31, 2019 (during 2019) amortization Short Term 2018 Convertible Note Principal Amount $ - $ - $ 105,000 $ 10,500 $ (115,500) Debt Discounts & Financing Costs - (8,533) - - 8,533 Total 9% Unsecured Note $ - $ (8,533) $ 105,000 $ 10,500 $ (106,967) During the six months ended June 30, 2019, the conversion feature was exercised at a price of $1.75 per share, and a total of 84,220 shares were exercised. Outstanding numbers of Dilutive Securities The outstanding number of dilutive securities for the six months ended June 30, 2019, can be seen below: Number of underlying shares for Outstanding Agreement Outstanding Warrants & Conversion Features June 30, 2019 Amendments Conversions December 31, 2018 Fortress - iPass Loan Repayment Warrant 325,000 325,000 - - 2017 Registered Public Offering 110,912 - (359,058) 469,970 Investor Management Services 610,000 - (100,000) 710,000 9% Convertible Note Warrants 492,506 - (27,867) 520,373 2013 Convertible Notes 60,000 - - 60,000 Other 9% Convertible Note Warrants 96,520 - - 96,520 2017 Registered Public Offering Agent Warrants 21,500 - (40,834) 62,334 9% Convertible Note 7% Agent Warrants 66,230 - - 66,230 Nov-2017 Underwriter Agreement Agent Warrants 704,831 - (205,756) 910,587 Oct-2017 Shelf Take Down Agent Warrants 843 - - 843 May-2018 Public Offering Agent Warrants 6,700 - (115,300) 122,000 Preferred Share Conversion Warrants 639,844 - (91,954) 731,798 Preferred Share issuance 8% Agent Warrants 38,827 - - 38,827 Total Outstanding Warrants 3,173,713 325,000 (940,769) 3,789,482 Cash and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to that sum to the total amounts shown in the Condensed Consolidated Statements of Cash Flows: June 30, December 31, 2019 2018 Cash and cash equivalents $ 3,377,556 $ 6,051,709 Restricted Cash 1,104,757 430,655 Total cash, cash equivalents and restricted cash reported in the Condensed Consolidated Statement of Cash Flows $ 4,482,313 $ 6,482,364 Notes Receivable At June 30, 2019, and December 31, 2018, the Company had non-current notes receivable of $2,819,200 and $1,082,436, respectively, and the current portion amounted to $1,024,025 and $0 respectively. The third quarter 2016 sale of ValidSoft for the price of $3,000,000 was completed and the Company received $2,000,000 in cash and a $1,000,000 promissory note, with an interest rate of 5% per annum. The maturity date of the note is September 30, 2019. At June 30, 2019, and December 31, 2018, the remaining outstanding principal amounts were $488,191 and $576,769, respectively. On November 26, 2018, the Company executed a senior secured promissory note for $500,000 from Yonder Media Mobile (an unrelated entity), with interest accruing at a simple rate of 6% per annum with a maturity date of May 26, 2020. On January 9, 2019, February 12, 2019 and February 28, 2019, the Company issued additional notes of $500,000, $200,000, and $2,000,000, respectively (the “2019 Notes”). The 2019 Notes each bear an interest rate of 12% per annum and mature 18 months following the issuance date. All principal and interest are due on the maturity date. At June 30, 2019 and December 31, 2018, the remaining outstanding principal amounts were $3,355,034 and $505,667, respectively. Related Party Loan As of June 30, 2019 and December 31, 2018, there remained an outstanding related party loan to Comsys, a wholly-owned subsidiary of Artilium BV, from Comsystems (a company owned by Gerard Derenbos). Prior to the acquisition by Pareteum, Gerard Derenbos was a shareholder of Artilium PLC, with approximately 15% of the total shares of Artilium PLC, and a board member of Artilium PLC. The total outstanding balance as of June 30, 2019 and December 31, 2018 was $342,000 and $341,998, respectively. The loan carries an 8% interest rate and a maturity date of December 31, 2021. All principal and interest are due on the maturity date.

Equity

Equity	6 Months Ended
	Jun. 30, 2019
Equity
Equity	Note 5. Equity (A) Common Stock The Company is presently authorized to issue 500,000,000 shares of common stock. The Company had 111,652,349 shares of common stock issued and outstanding as of June 30, 2019, an increase of 13,799,438 shares from December 31, 2018, were largely due to the iPass and Devicescape acquisitions (10,970,412), warrant exercises (858,344), shares issued to Senior Secured lender (425,000), and services settled by issuance of shares (653,796). (B) 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 June 30, 2019 and December 31, 2018, have been recorded and classified as equity is 3,173,713 and 3,789,482, respectively. The weighted average exercise price for the currently outstanding warrants in the table below is $2.21. The table below summarizes the warrants outstanding as of June 30, 2019 and as of December 31, 2018: Exercise/ Conversion June 30, December 31, Outstanding Warrants price(s) (range) Expiring 2019 2018 Equity Warrants – Fundraising $1.05 - $5.375 2019 – 2026 3,173,713 3,789,482 3,173,713 3,789,482

Amended and Restated 2008 Long

Amended and Restated 2008 Long Term Incentive Compensation Plan and 2017 Long-Term Incentive Compensation Plan	6 Months Ended
	Jun. 30, 2019
Amended and Restated 2008 Long Term Incentive Compensation Plan, 2017 Long-Term Incentive Compensation Plan and 2018 Long-Term Incentive Compensation Plan, As Amended
Amended and Restated 2008 Long Term Incentive Compensation Plan, 2017 Long-Term Incentive Compensation Plan and 2018 Long-Term Incentive Compensation Plan, As Amended	Note 6. Amended and Restated 2008 Long Term Incentive Compensation Plan, 2017 Long-Term Incentive Compensation Plan and 2018 Long Term Incentive Compensation Plan, As Amended The Company maintains the following Long Term Incentive Compensation Plans (collectively, the “Plans”): · Amended and Restated 2008 Long-Term Incentive Compensation Plan (“2008 Plan”) · 2017 Long-Term Incentive Compensation Plan (“2017 Plan”) · 2018 Long-Term Incentive Compensation Plan (“2018 Plan”) On October 10, 2018, the Company filed an S‑8 to register the remaining 8,000,000 shares of common stock of the 2018 Plan which was previously ratified by our stockholders on September 12, 2018 at our annual meeting of stockholders. This incentive plan provides for awards of up to 8,000,000 shares of common stock, in the form of options, restricted stock awards, stock appreciation rights (“SAR’s”), performance units and performance bonuses to eligible employees and the grant of nonqualified stock options, restricted stock awards, SAR’s and performance units to consultants and eligible directors. Pursuant to the terms of the 2018 Plan, as amended, the number of shares available under the plan shall increase on the first day of each fiscal year in an amount equal to the lesser of (i) 15% of the total number of shares of common stock outstanding as of December 31 st of the preceding fiscal year or (ii) such number of shares of common stock determined by the Board of Directors (the “Evergreen Increase”). As a result of the 2019 Evergreen Increase, the number of shares available under the 2018 Plan increased by 7,500,000 shares, such number determined by the Board of Directors being the lesser of (i) and (ii) as described herein (the “2018 Plan Increase”). The 2018 Plan Increase took effect upon the filing of the Registration Statement on Form S-8 on June 28, 2019. Under the provisions of ASC 718, expensing takes place proportionally to the vesting associated with each stock-award, adjusted for cancellations, forfeitures and returns. If there are any modifications or cancellations of the underlying unvested awards, we may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. As of June 30, 2019, the following shares were authorized under the Plans: Reconciliation of registered and available shares and/or options as of June 30, 2019: Total Approved by the Shareholders (annually 15% of outstanding shares) Registered 2008 (S-8 dated July 11, 2008) 2008 Plan 200,000 Registered 2011 (S-8 dated October 6, 2011) 2008 Plan 720,000 Registered 2017 (S-8 dated June 14, 2017) 2017 Plan 3,500,000 Registered 2018 (S-8 dated April 13, 2018) 2017 Plan 3,000,000 Registered 2018 (S-8 dated October 10, 2018) 2018 Plan 8,000,000 Registered 2018 (S-8 dated June 28, 2019) 2018 Plan 7,500,000 2019 Activities Shares (issued to): Consultants 177,744 1,011,165 Directors, Officers and staff 797,789 5,064,305 Options exercised 176,038 330,542 Total Shares issued: 6,406,012 Available for issuance at June 30, 2019 (under the S-8 registration statements) 16,513,988 Outstanding rights (movements): Options 5,082,211 8,746,023 Time Conditioned Share Awards / Other Awards 84,723 1,641,355 Available for grant at June 30, 2019: 6,126,610 The Company’s stockholders also approved an additional 920,000 shares and 400,000 shares under the 2008 Plan on December 17, 2013 and September 12, 2014, respectively. These approved shares have not been registered on Form S-8 as of June 30, 2019. The following table summarizes the activities that occurred during the three months ended June 30, 2019: Initial Fair Weighted Market Value Number of Average (Outstanding Options: Options Exercise Price Options) Outstanding as of March 31, 2019 8,981,608 $ 2.26 $ 11,465,952 Granted in 2019 207,703 2.29 424,055 Exercised (with delivery of shares) (107,955) 1.30 (91,008) Forfeitures (Pre-vesting) (335,333) 2.28 (721,969) Outstanding as of June 30, 2019 8,746,023 $ 2.21 $ 11,077,030 The following table summarizes the activity that occurred during the six month period ended June 30, 2019: Initial Fair Weighted Market Value Number of Average (Outstanding Options: Options Exercise Price Options) Outstanding as of December 31, 2018 3,663,812 $ 2.26 $ 4,962,798 Granted in 2019 5,440,103 2.18 6,661,232 Exercised (with delivery of shares) (176,038) 1.19 (127,518) Forfeitures (Pre-vesting) (158,552) 2.20 (226,849) Expirations (Post-vesting) (23,302) 8.32 (192,633) Outstanding as of June 30, 2019 8,746,023 $ 2.21 $ 11,077,030 Stock-based compensation expense totaled $5,722,447 and $1,771,580 for the six months ended June 30, 2019 and 2018, respectively. Stock-based compensation expense totaled $2,008,833 and $697,448 for the three months ended June 30, 2019 and 2018, respectively. At June 30, 2019, there was $6,280,777 of unrecognized expense for share-based awards granted under the Plans.

Income taxes

Income taxes	6 Months Ended
	Jun. 30, 2019
Income taxes
Income taxes	Note 7. Income taxes The following table presents details of income tax (benefit)/expense: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Income tax (benefit)/expense $ (449,403) $ 18,842 $ (616,737) $ 18,424 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 based upon an expected annual tax rate.

Significant Customer and Geogra

Significant Customer and Geographical Information	6 Months Ended
	Jun. 30, 2019
Significant Customers and Geographical Information
Significant Customers and Geographical Information	Note 8. Significant Customers and Geographical Information During the three months ended June 30, 2019 and 2018, 19.7% and 75% of revenue, respectively, were made from two customers. For the three months ended June 30, 2019 and 2018, our largest customer represented 11.2% and 53.4% of revenues, respectively. Our second largest customer represented 8.5% and 21.6% of revenues for the three months ended June 30, 2019 and 2018, respectively. During the six months ended June 30, 2019 and 2018, 20.4% and 79.3% of revenues, respectively, were made from two customers. For the six months ended June 30, 2019 and 2018, our largest customer represented 12.5% and 63.5% of revenues, respectively. Our second largest customer represented 7.9% and 15.8% of revenues for the six months ended June 30, 2019 and 2018, respectively. The geographical distribution of our revenue, as a percentage of revenues, was as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Europe 52.7 % 59.4 % 57.7 % 76.8 % All other (non-European) countries 47.3 % 40.6 % 42.3 % 23.2 % 100 % 100 % 100 % 100 %

Revenues

Revenues	6 Months Ended
	Jun. 30, 2019
Revenues
Revenues	Note 9. Revenues Our revenues represent amounts earned for our mobile and security solutions. Our solutions take many forms, but our revenues generally consist of fixed and/or variable charges for services delivered monthly under a combined services and SaaS model. We also offer discrete (one-time) services for implementation and for development of specific functionality to properly service our customers. The following table presents our revenues disaggregated by revenue source: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Monthly service $ 31,627,289 $ 4,277,289 $ 53,237,189 $ 7,772,831 Installation and software development 2,521,107 1,725,891 3,951,121 2,342,919 Total revenues $ 34,148,396 $ 6,003,180 $ 57,188,310 $ 10,115,750 Monthly services revenues are generally recognized over time and amounted to $31,627,289 and $53,237,189 for the three and six months ended June 30, 2019, respectively. Installation and software development revenues are recognized over time and amounted to $2,521,107 and $3,951,121 over for the three and six months ended June 30, 2019, respectively. The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Europe $ 17,978,271 $ 3,563,089 $ 33,015,300 $ 7,772,831 Other geographic areas 16,170,125 2,440,091 24,173,010 2,342,919 Total revenues $ 34,148,396 $ 6,003,180 $ 57,188,310 $ 10,115,750 Monthly Service Revenues The Company’s performance obligations in a monthly SaaS and service offerings are simultaneously received and consumed by the customer and therefore, are generally recognized over time. For recognition purposes, we do not unbundle such services into separate performance obligations as their pattern of transfer does not differ. The Company typically bills its customer at the end of each month. The fees charged may include a combination of fixed and variable charges with the variable charges tied to the number of subscribers or some other measure of volume. Although the consideration may be variable, the volumes are easily estimable at the time of billing, with “true-up” adjustments occurring in the subsequent month. As such adjustments have not historically been material, no amounts of variable consideration are subject to constraint. Installation and Software Development Revenues The Company’s other revenues consist generally of installation and development projects. Installation represents the activities necessary for a customer to obtain access and connectivity to the Company’s monthly SaaS and service offerings. While installation may require separate phases, it represents one performance obligation within the context of the contract. Development consists of programming and other services to add new, additional or customized functionality to a customer’s existing service offerings. Each development activity is typically its own performance obligation. Revenue is recognized over time if the installation and development activities create an asset that has no alternative use for which the Company is entitled to receive payment for performance completed to date. If not, then revenue is not recognized until the applicable performance obligation is satisfied. Arrangements with Multiple Performance Obligations The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers. Net Billings in Excess of Revenues The Company records net billings in excess of revenues when payments are made or due in advance of our performance, including amounts which are refundable. Payment terms vary by the type and location of our customer and the products or services offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, payment is required before the products or services are delivered to the customer. Contract Assets Given the nature of the Company’s services and contracts, it has no contract assets.

Credit Agreement

Credit Agreement	6 Months Ended
	Jun. 30, 2019
Credit Agreement
Credit Agreement	Note 10. Credit Agreement On February 26, 2019, Pareteum Corporation and certain of its subsidiaries entered into a credit agreement (the “Credit Agreement”) with Post Road Administrative Finance, LLC and its affiliate Post Road Special Opportunity Fund I LLP (collectively, “Post Road”). Pursuant to the Credit Agreement, Post Road will provide the Company with a secured loan of up to $50,000,000 (the “Loan”), with an initial loan of $25,000,000 funded on February 26, 2019, and additional amounts in $5,000,000 increments as requested by the Company before the 18‑month anniversary of the initial funding date. No additional loan shall be funded until the later of delivery of certain third-party consents (the “Consents”), the filing of Pareteum’s Quarterly Report on Form 10‑Q for the first quarter of 2019, or June 1, 2019. All amounts owed under the Credit Agreement shall be due on February 26, 2022. The unpaid principal amount of the Loan shall bear interest from the relevant funding dates at a rate per year of Libor plus 8.5% in effect from time to time, provided however, that upon an event of default or if certain of the Consents are not delivered prior to May 1, 2019 or June 1, 2019, as applicable, the unpaid principal amount of the Loan shall bear interest from the relevant funding dates at a rate per year of Libor plus 11.5% in effect from time to time until the Consents are delivered. The interest shall be due and payable monthly in cash in arrears, provided, however, that the Company may elect to pay any or all of the interest in the form of Payment-in-Kind (“PIK”) interest due and payable at maturity at a maximum percentage per year equal to (a) through and including the first anniversary of the initial funding date, 3%, (b) after the first anniversary of the initial funding date through and including the second anniversary of the initial funding date, 2%, and (c) after the second anniversary of the initial funding date, 1%. Permitted use of proceeds for the initial $25,000,000 of the Loan include approximately $11,700,000 for payment in full of outstanding secured debt owed to Fortress Credit Corp. (together with its affiliates, “Fortress”) incurred in connection with the Company’s previously disclosed acquisition of iPass Inc. (“iPass”) on February 12, 2019, as well as remaining amounts for permitted acquisitions and investments, for general working capital purposes and paid $623,555 in transaction fees related to the Loan. Proceeds are to be used for permitted acquisitions and to fund growth capital expenditures and other growth initiatives. The Loan is subject to prepayment upon the receipt of proceeds outside the ordinary course of business in excess of $1,000,000 and the Company must pay a commitment fee of 1% per year for an unfunded commitment. The initial $25,000,000 loan is reduced by an original issue discount of (i) 0.75% of $25,000,000 and (ii) 1.25% of $50,000,000, and any additional amounts borrowed will be reduced by an original issue discount of 0.75% of the funded amounts. The Company’s obligations under the Credit Agreement are secured by a first-priority security interest in all the assets of the Company and guaranteed by certain subsidiaries of the Company. The Credit Agreement contains customary representations, warranties and indemnification provisions. The Credit Agreement also contains affirmative and negative covenants with respect to operation of the business and properties of the Company as well as financial performance, including requirements to maintain a minimum of $2,000,000 of unrestricted cash, certain maximum total leverage ratios, a debt to asset ratio, maximum churn rate and minimum adjusted EBITDA. The Credit Agreement further provides customary events of default and cure periods for certain specified events of default, and in the event of uncured default, the acceleration of the maturity date, an increase in the applicable interest rate with respect to amounts outstanding under the Loan and payment of additional fees. On February 26, 2019, concurrently with entering into the Credit Agreement, the existing loan and security agreement by and among iPass, iPass IP LLC and Fortress (the “Existing iPass Loan”) terminated. Credit facilities under the Existing iPass Loan included a term loan A facility and a term loan B facility maturing on February 27, 2019. On February 26, 2019, pursuant to the terms of the Credit Agreement, the Company issued to Post Road 425,000 shares of common stock at $1,606,500 and will issue an additional 200,000 shares of common stock upon the next subsequent funding, if any, under the Loan. As of June 30, 2019, and December 31, 2018, the Company had outstanding senior secured debt of $22,077,767 and $0, respectively. For the three and six months ended June 30, 2019, the Company recorded interest expense of $747,245 and $1,054,120, respectively, related to the Loan. The interest rate at June 30, 2019 was 11%. The Company recorded $1,655,112 in deferred financing costs and other fees as a reduction of the outstanding loan balance through June 30, 2019. A total of $101,664 and $151,355 was amortized during the three and six months ended June 30, 2019. The remaining capacity under the Loan was $25,000,000 at June 30, 2019. As of June 30, 2019, the Company was in compliance with all covenants required by the Loan.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies
Commitments and Contingencies	Note 11. Commitments and Contingencies Lease Commitments We have operating leases for our office space. Our leases have remaining lease terms of less than one year to 6 years, some of which include options to indefinitely extend the leases monthly. For our month to month leases, we determined the number of renewal periods we are reasonably certain to exercise and include these periods in our right of use asset and lease liability calculations. Lease expense was $487,850 and $970,398 for the three and six months ended June 30, 2019, respectively, and is included in general and administrative expense in the condensed consolidated statement of comprehensive loss. Lease expense was $39,393 and $81,506 for the three and six months ended June 30, 2018. Operating Leases: June 30, 2019 Operating lease right-of-use assets $ 2,493,352 Operating lease liabilities $ 2,790,685 Weighted average remaining lease term Operating leases 1.9 years Incremental borrowing rate Operating leases 8.8 % The following represents maturities of operating lease liabilities as of June 30, 2019: Remainder of 2019 $ 975,453 2020 1,716,284 2021 119,059 2022 62,387 2023 62,387 Thereafter 98,779 Total lease payments $ 3,034,349 Less: imputed interest (243,664) Lease liabilities, current 1,776,900 Lease liabilities, non-current 1,013,785 Total $ 2,790,685 Legal Proceedings Ellenoff Grossman & Schole LLP, claimed legal fees. On May 5, 2017, the Company’s former legal counsel, Ellenoff Grossman & Schole LLP, commenced litigation proceedings in New York alleging breach of contract and claiming $817,822 in unpaid legal fees for January 2015 through November 2016. On June 29, 2017, the parties entered into a settlement agreement for the full $817,822 with agreed-upon monthly installment payments through August 31, 2019. As of June 30, 2019, this transaction is reflected in the financial statements. The Company is involved in various claims and lawsuits incidental to our business. In the opinion of management, the ultimate resolution of such claims and lawsuits will not have a material effect on our financial position, liquidity, or results of operations.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2019
Subsequent Events
Subsequent Events	Note 12. Subsequent Events None.

Description of Business, Basi_2

Description of Business, Basis of Presentation and Use of Estimates (Policies)	6 Months Ended
	Jun. 30, 2019
Description of Business, Basis of Presentation and Use of Estimates
Business overview	Pareteum has developed a Communications Cloud Services Platform, providing (i) Mobility, (ii) Messaging, and (iii) Security services and applications, with a Single-Sign-On, API and software development suite. The Pareteum platform hosts integrated IT/Back Office and Core Network functionality for mobile network operators, and for enterprises implement and leverage mobile communications solutions on a fully outsourced SaaS, PaaS and/or IaaS basis: made available either as an on-premise solution or as a fully hosted service in the Cloud depending on the needs of our customers. Pareteum also delivers an Operational Support System (“OSS”) for channel partners, with Application Program Interfaces (“APIs”) for integration with third party systems, workflows for complex application orchestration, customer support with branded portals and plug-ins for a multitude of other applications. These features facilitate and improve the ability of our channel partners to provide support and to drive sales.
Basis of Presentation of Interim Periods	Basis of Presentation of Interim Periods The unaudited interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP,”) for interim financial information and in accordance with the instructions to Securities and Exchange Commission (“SEC”), Form 10‑Q and Article 8 of SEC Regulation S-X. They do not include all the information and footnotes required by GAAP 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, 2018, included in our 2018 Annual Report on Form 10‑K filed with the SEC on March 18, 2019, referred to as our 2018 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 and six month periods ended June 30, 2019, are not necessarily indicative of the results to be expected for future quarters or the full year. All intercompany transactions and account balances have been eliminated in consolidation. As of June 30, 2019, the Company’s subsidiaries are: · its wholly owned subsidiary Pareteum North America Corp. with its wholly owned subsidiary, Pareteum UK Ltd.; · its wholly owned subsidiary Pareteum Asia PTE. Ltd.; · its wholly owned subsidiary TBR Inc. (special purpose vehicle for iPass acquisition); · its wholly-owned subsidiary Pareteum Europe B.V. (fka Elephant Talk Europe Holding B.V.) and its wholly owned subsidiaries, Elephant Talk Mobile Services B.V., Elephant Talk PRS Netherlands BV, Elephant Talk Deutschland GmbH (dormant), Elephant Talk Middle East & Africa (Holding) W.L.L., Elephant Talk Luxembourg SA (dormant), Guangzhou Elephant Talk Information Technology Limited (dormant), Elephant Talk Communications Italy S.R.L. (dormant), Elephant Talk Business Services W.L.L., Elephant Talk Middle East & Africa (Holding) Jordan L.L.C. (dormant).; · its wholly owned Elephant Talk Communications Holding AG and its wholly owned subsidiaries Pareteum Spain SLU and ETC Carrier Services GmbH.; · Pareteum Europe B.V. majority-owned subsidiaries Elephant Talk Bahrain W.L.L. (99%), ET de Mexico S.A.P.I. de C.V. (99.998%), ET-UTS NV; (51%) and LLC Pareteum (Russia) (50%) Elephant Talk; · Elephant Talk Telecomunicação do Brasil LTDA, is owned 90% by Pareteum Europe B.V. and 10% by Elephant Talk Communication Holding AG; · its wholly-owned subsidiary Elephant Talk Limited (“ETL”) and its wholly owned ET Guangdong Ltd. And its majority owned (50.54%) subsidiary Elephant Talk Middle East & Africa FZ-LLC.; · Asesores Profesionales ETAK S. de RL. De C.V. is owned 99% by Pareteum Europe B.V.; · its wholly owned subsidiary Artilium Group Ltd. And its wholly owned subsidiaries, Artilium UK Ltd., Artilium Trustee Company Limited, Artilium BV, Pareteum NV, Interactive Digital Media GMBH and United Telecom NV, and United Telecom NV's wholly-owned subsidiary, ELLO Mobile BVVA; · its wholly owned subsidiary iPass, Inc. and its wholly owned subsidiaries iPass (U.K.) Limited, iPass France SAS, iPass Deutschland GmbH, iPass Holdings Pty Ltd., iPass Asia Pte Ltd., iPass Japan, Inc., iPass India Private Limited, iPass Ltd., GoRemote Internet Communications, Inc., GoRemote International Corporation, Axcelerant, Inc., Worldwide Axcelerant Group, Mobile Automation, Inc. and Safe3W, Inc.; and · its wholly-owned subsidiary Devicescape Holdings, Inc. For a complete summary of our significant accounting policies, please refer to Note 1, “Business and Summary of Significant Accounting Policies,” in Item 8 of our 2018 Annual Report.
Use of Estimates	Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP 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 and intangible assets acquired in our acquisitions of Artilium, iPass and Devicescape. Significant estimates include the bad debt allowance, revenue recognition, impairment of long-lived assets, 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 and those differences could be material.
Reclassification	Reclassification Certain reclassifications have been made to the Company’s consolidated financial statements for the prior period to conform to the current period presentation. Such reclassifications had no impact on net loss or net cash flows.

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
	Jun. 30, 2019
Artilium Board [Member]
Schedule of Business Combination, Segment Allocation	The allocation of the purchase price was as follows (in thousands): Purchase consideration: Shares issued to shareholders $ 29,253 Shares issued to employees 1,401 Total purchase consideration $ 30,654 Purchase price allocation: Assets: Cash and cash equivalents $ 284 Accounts receivable, net 4,344 Property, plant and equipment, net 1,092 Other assets 4,863 Intangible assets 22,700 Total assets 33,283 Liabilities: Accounts payable 11,321 Deferred revenue 1,701 Loans outstanding 10,989 Other liabilities 6,743 Total liabilities 30,754 Estimated fair value of net assets acquired 2,529 Goodwill $ 28,125
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination	The allocation of the purchase price for iPass’s intangible assets were as follows (in thousands): Estimated Useful Fair Life Value (Years) Developed Technology $ 5,500 Customer relationships 15,500 Tradename 1,700 Intangible assets $ 22,700
Device scape [Member]
Schedule of Business Combination, Segment Allocation	The allocation of the purchase price was as follows (in thousands): Purchase consideration: Cash consideration $ 2,000 Shares issued to shareholders 1,692 Total purchase consideration $ 3,692 Purchase price allocation: Assets: Cash and cash equivalents $ 153 Accounts receivable, net 451 Intangible assets 1,588 Total assets 2,192 Liabilities: Accounts payable & other liabilities 88 Total liabilities 88 Estimated fair value of net assets acquired 2,104 Goodwill $ 1,588
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination	The allocation of the purchase price for Devicescape’s intangible assets were as follows (in thousands): Estimated Useful Fair Life Value (Years) Developed Technology $ 1,588 8 Intangible assets $ 1,588

Balance Sheet Information (Tabl

Balance Sheet Information (Tables)	6 Months Ended
	Jun. 30, 2019
Balance Sheet Information
Schedule of Prepaid expense and other current assets	The following tables present details of our unaudited condensed consolidated financial statements: June 30, December 31, Prepaid expenses and other current assets 2019 2018 Prepaid expenses $ 2,960,148 $ 1,659,783 VAT 425,694 424,167 $ 3,385,842 $ 2,083,950
Schedule of property and equipment, net	June 30, December 31, Property and equipment, net 2019 2018 Furniture and fixtures $ 561,858 $ 139,857 Computer, communications and network equipment 17,341,035 17,520,435 Software 4,911,585 4,716,816 Automobiles 324,534 10,744 Software development 3,589,731 1,656,739 Accumulated depreciation and amortization (21,832,240) (19,491,341) $ 4,896,503 $ 4,553,250
Schedule of intangible assets, net	June 30, December 31, Intangible Assets, net 2019 2018 Intangible assets: Developed technology $ 27,687,821 $ 20,600,000 Consumer relationships 32,300,000 16,800,000 Tradename 5,100,000 3,400,000 Accumulated amortization (4,825,401) (1,141,675) $ 60,262,420 $ 39,658,325
Schedule of accrued and other payables	June 30, December 31, Accrued expenses and other payables 2019 2018 Accrued selling, general and administrative expenses $ 3,987,888 $ 2,396,941 Accrued restructuring & acquisition related costs 972,714 1,885,194 Accrued cost of service 5,765,483 1,070,099 Accrued taxes (including VAT) 2,980,801 2,283,999 Accrued interest payable 184,415 67,613 Other accrued expenses 145,344 248,534 $ 14,036,645 $ 7,952,380
Schedule of Unsecured Subordinated Convertible Promissory Note	(Matured between December 2018 and June 2019) Conversions (during 2019) Outstanding Regular including 10% Early Outstanding June 30, Amortizations accelerated Repayment December 31, 2019 (during 2019) amortization Short Term 2018 Convertible Note Principal Amount $ - $ - $ 105,000 $ 10,500 $ (115,500) Debt Discounts & Financing Costs - (8,533) - - 8,533 Total 9% Unsecured Note $ - $ (8,533) $ 105,000 $ 10,500 $ (106,967)
Summary of Warrants and Debt Conversion Feature	Number of underlying shares for Outstanding Agreement Outstanding Warrants & Conversion Features June 30, 2019 Amendments Conversions December 31, 2018 Fortress - iPass Loan Repayment Warrant 325,000 325,000 - - 2017 Registered Public Offering 110,912 - (359,058) 469,970 Investor Management Services 610,000 - (100,000) 710,000 9% Convertible Note Warrants 492,506 - (27,867) 520,373 2013 Convertible Notes 60,000 - - 60,000 Other 9% Convertible Note Warrants 96,520 - - 96,520 2017 Registered Public Offering Agent Warrants 21,500 - (40,834) 62,334 9% Convertible Note 7% Agent Warrants 66,230 - - 66,230 Nov-2017 Underwriter Agreement Agent Warrants 704,831 - (205,756) 910,587 Oct-2017 Shelf Take Down Agent Warrants 843 - - 843 May-2018 Public Offering Agent Warrants 6,700 - (115,300) 122,000 Preferred Share Conversion Warrants 639,844 - (91,954) 731,798 Preferred Share issuance 8% Agent Warrants 38,827 - - 38,827 Total Outstanding Warrants 3,173,713 325,000 (940,769) 3,789,482
Restrictions on Cash and Cash Equivalents	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to that sum to the total amounts shown in the Condensed Consolidated Statements of Cash Flows: June 30, December 31, 2019 2018 Cash and cash equivalents $ 3,377,556 $ 6,051,709 Restricted Cash 1,104,757 430,655 Total cash, cash equivalents and restricted cash reported in the Condensed Consolidated Statement of Cash Flows $ 4,482,313 $ 6,482,364

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2019
Equity
Schedule of Stockholders' Equity Note, Warrants or Rights	Exercise/ Conversion June 30, December 31, Outstanding Warrants price(s) (range) Expiring 2019 2018 Equity Warrants – Fundraising $1.05 - $5.375 2019 – 2026 3,173,713 3,789,482 3,173,713 3,789,482

Amended and Restated 2008 Lon_2

Amended and Restated 2008 Long Term Incentive Compensation Plan and 2017 Long-Term Incentive Compensation Plan (Tables)	6 Months Ended
	Jun. 30, 2019
Amended and Restated 2008 Long Term Incentive Compensation Plan, 2017 Long-Term Incentive Compensation Plan and 2018 Long-Term Incentive Compensation Plan, As Amended
Reconciliation Of Registered And Available Shares And Or Options	Reconciliation of registered and available shares and/or options as of June 30, 2019: Total Approved by the Shareholders (annually 15% of outstanding shares) Registered 2008 (S-8 dated July 11, 2008) 2008 Plan 200,000 Registered 2011 (S-8 dated October 6, 2011) 2008 Plan 720,000 Registered 2017 (S-8 dated June 14, 2017) 2017 Plan 3,500,000 Registered 2018 (S-8 dated April 13, 2018) 2017 Plan 3,000,000 Registered 2018 (S-8 dated October 10, 2018) 2018 Plan 8,000,000 Registered 2018 (S-8 dated June 28, 2019) 2018 Plan 7,500,000 2019 Activities Shares (issued to): Consultants 177,744 1,011,165 Directors, Officers and staff 797,789 5,064,305 Options exercised 176,038 330,542 Total Shares issued: 6,406,012 Available for issuance at June 30, 2019 (under the S-8 registration statements) 16,513,988 Outstanding rights (movements): Options 5,082,211 8,746,023 Time Conditioned Share Awards / Other Awards 84,723 1,641,355 Available for grant at June 30, 2019: 6,126,610
Share-based Compensation, Stock Options, Activity	The following table summarizes the activities that occurred during the three months ended June 30, 2019: Initial Fair Weighted Market Value Number of Average (Outstanding Options: Options Exercise Price Options) Outstanding as of March 31, 2019 8,981,608 $ 2.26 $ 11,465,952 Granted in 2019 207,703 2.29 424,055 Exercised (with delivery of shares) (107,955) 1.30 (91,008) Forfeitures (Pre-vesting) (335,333) 2.28 (721,969) Outstanding as of June 30, 2019 8,746,023 $ 2.21 $ 11,077,030 The following table summarizes the activity that occurred during the six month period ended June 30, 2019: Initial Fair Weighted Market Value Number of Average (Outstanding Options: Options Exercise Price Options) Outstanding as of December 31, 2018 3,663,812 $ 2.26 $ 4,962,798 Granted in 2019 5,440,103 2.18 6,661,232 Exercised (with delivery of shares) (176,038) 1.19 (127,518) Forfeitures (Pre-vesting) (158,552) 2.20 (226,849) Expirations (Post-vesting) (23,302) 8.32 (192,633) Outstanding as of June 30, 2019 8,746,023 $ 2.21 $ 11,077,030

Income taxes (Tables)

Income taxes (Tables)	6 Months Ended
	Jun. 30, 2019
Income taxes
Schedule of Income before Income Tax, Domestic and Foreign	Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Income tax (benefit)/expense $ (449,403) $ 18,842 $ (616,737) $ 18,424

Significant Customer and Geog_2

Significant Customer and Geographical Information (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Schedules of Concentration of Risk, by Risk Factor	The geographical distribution of our revenue, as a percentage of revenues, was as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Europe 52.7 % 59.4 % 57.7 % 76.8 % All other (non-European) countries 47.3 % 40.6 % 42.3 % 23.2 % 100 % 100 % 100 % 100 %

Revenues (Tables)

Revenues (Tables)	6 Months Ended
	Jun. 30, 2019
Revenues
Schedule of disaggregation of revenue	The following table presents our revenues disaggregated by revenue source: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Monthly service $ 31,627,289 $ 4,277,289 $ 53,237,189 $ 7,772,831 Installation and software development 2,521,107 1,725,891 3,951,121 2,342,919 Total revenues $ 34,148,396 $ 6,003,180 $ 57,188,310 $ 10,115,750
Revenue from External Customers by Geographic Areas	The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Europe $ 17,978,271 $ 3,563,089 $ 33,015,300 $ 7,772,831 Other geographic areas 16,170,125 2,440,091 24,173,010 2,342,919 Total revenues $ 34,148,396 $ 6,003,180 $ 57,188,310 $ 10,115,750

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies
Schedule Of Classification Of Lease Liabilities	Operating Leases: June 30, 2019 Operating lease right-of-use assets $ 2,493,352 Operating lease liabilities $ 2,790,685 Weighted average remaining lease term Operating leases 1.9 years Incremental borrowing rate Operating leases 8.8 %
Schedule of Future Minimum Rental Payments for Operating Leases	The following represents maturities of operating lease liabilities as of June 30, 2019: Remainder of 2019 $ 975,453 2020 1,716,284 2021 119,059 2022 62,387 2023 62,387 Thereafter 98,779 Total lease payments $ 3,034,349 Less: imputed interest (243,664) Lease liabilities, current 1,776,900 Lease liabilities, non-current 1,013,785 Total $ 2,790,685

Financial Condition (Details)

Financial Condition (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Financial Condition
Net Income (Loss) Attributable to Parent	$ (515,809)	$ (5,778,515)	$ 1,656,464	$ (2,134,102)	$ (6,294,324)	$ (477,641)
Retained Earnings (Accumulated Deficit)	$ (318,919,707)				$ (318,919,707)		$ (312,625,383)

Description of Business, Basi_3

Description of Business, Basis of Presentation and Use of Estimates (Details)	Jun. 30, 2019
Asesores Profesionales ETAK S De RL De CV [Member]
Noncontrolling Interest, Ownership Percentage by Parent	50.54%
Elephant Talk Telecomunicacao Do Brasil LTDA [Member]
Noncontrolling Interest, Ownership Percentage by Parent	10.00%
Elephant Talk Telecomunicacao Do Brasil LTDA [Member] | Elephant Talk Europe Holding BV [Member]
Noncontrolling Interest, Ownership Percentage by Parent	90.00%

Business Combinations (Details)

Business Combinations (Details) - USD ($)	Apr. 22, 2019	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Purchase consideration:
Shares issued to shareholders		$ 1,692,000	$ 29,253,287
Liabilities:
Goodwill		121,486,562		$ 121,486,562	$ 91,773,911
Artilium Board [Member]
Purchase consideration:
Shares issued to shareholders				29,253,000
Shares issued to employees				1,401,000
Total Purchase Consideration				30,654,000
Assets
Cash and cash equivalents		284,000		284,000
Accounts receivable		4,344,000		4,344,000
Property, plant and equipment, net		1,092,000		1,092,000
Other assets		4,863,000		4,863,000
Intangible assets		22,700,000		22,700,000
Total assets		33,283,000		33,283,000
Liabilities:
Accounts payable		11,321,000		11,321,000
Deferred revenue		1,701,000		1,701,000
Loans outstanding		10,989,000		10,989,000
Other liabilities		6,743,000		6,743,000
Total liabilities		30,754,000		30,754,000
Estimated fair value of net assets acquired		2,529,000		2,529,000
Goodwill		28,125,000		28,125,000
Device scape [Member]
Purchase consideration:
Cash consideration				2,000,000
Shares issued to shareholders				1,692,000
Total Purchase Consideration				3,692,000
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned	$ 1,692,000	2,000,000		2,000,000
Business Acquisition, Share Price	$ 4.23
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	400,000
Assets
Cash and cash equivalents		153,000		153,000
Accounts receivable		451,000		451,000
Intangible assets		1,588,000		1,588,000
Total assets		2,192,000		2,192,000
Liabilities:
Accounts payable		88,000		88,000
Total liabilities		88,000		88,000
Estimated fair value of net assets acquired		2,104,000		2,104,000
Goodwill		$ 1,588,000		$ 1,588,000

Business Combinations (Details

Business Combinations (Details 1) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Artilium Board [Member]
Estimated Fair Value	$ 22,700
Device scape [Member]
Estimated Fair Value	1,588
Technology | Artilium Board [Member]
Estimated Fair Value	$ 5,500
Useful life (years)	8 years
Customer relationships | Artilium Board [Member]
Estimated Fair Value	$ 15,500
Useful life (years)	11 years
Tradename | Artilium Board [Member]
Estimated Fair Value	$ 1,700
Useful life (years)	3 years
Developed Technology | Device scape [Member]
Estimated Fair Value	$ 1,588
Useful life (years)	8 years

Business Combinations - Addtion

Business Combinations - Addtional Information (Details) - shares	Apr. 22, 2019	Jun. 30, 2019	Feb. 12, 2019
Shareholders [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares		9,865,412
Employees [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares		705,000
IPass [Member]
Business Acquisition, Percentage of Voting Interests Acquired			100.00%
Device scape [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	400,000

Balance Sheet Information (Deta

Balance Sheet Information (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Balance Sheet Information
Prepaid Expenses - Other	$ 2,960,148	$ 1,659,783
VAT	425,694	424,167
Total	$ 3,385,842	$ 2,083,950

Balance Sheet Information - Pro

Balance Sheet Information - Property and equipment, net (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Accumulated depreciation and amortization	$ (21,832,240)	$ (19,491,341)
Total property and equipment, net	4,896,503	4,553,250
Automobiles [Member]
Property, Plant and Equipment, Gross	324,534	10,744
Furniture and Fixtures [Member]
Property, Plant and Equipment, Gross	561,858	139,857
Computer Equipment [Member]
Property, Plant and Equipment, Gross	17,341,035	17,520,435
Software
Property, Plant and Equipment, Gross	4,911,585	4,716,816
Software Development [Member]
Property, Plant and Equipment, Gross	$ 3,589,731	$ 1,656,739

Balance Sheet Information - Int

Balance Sheet Information - Intangible Assets, net (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Indefinite-lived Intangible Assets [Line Items]
Accumulated Amortization	$ (4,825,401)	$ (1,141,675)
Intangible Assets, net	60,262,420	39,658,325
Developed Technology
Indefinite-lived Intangible Assets [Line Items]
Intangible Assets	27,687,821	20,600,000
Customer relationships
Indefinite-lived Intangible Assets [Line Items]
Intangible Assets	32,300,000	16,800,000
Tradename
Indefinite-lived Intangible Assets [Line Items]
Intangible Assets	$ 5,100,000	$ 3,400,000

Balance Sheet Information - Acc

Balance Sheet Information - Accrued expenses and other payables (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Balance Sheet Information
Accrued selling, general and administrative expenses	$ 3,987,888	$ 2,396,941
Accrued restructuring acquisition related costs	972,714	1,885,194
Accrued cost of service	5,765,483	1,070,099
Accrued taxes (including VAT)	2,980,801	2,283,999
Accrued interest payable	184,415	67,613
Other accrued expenses	145,344	248,534
Total accrued expenses	$ 14,036,645	$ 7,952,380

Balance Sheet Information - Con

Balance Sheet Information - Convertable Note (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Short-term Debt [Line Items]
Convertible Note Principal Amount	$ 0	$ (115,500)
Convertible Note Principal Amount, Total Amortizations	0
Convertible Note Principal Amount, accelerated amortization	105,000
Debt Discounts & Financing Costs	0	8,533
10% Early Repayment Short Term	10,500
Amortization of debt discount and deferred financing costs	(8,533)
Debt Discounts & Financing Costs, accelerated amortization	$ 0
Conversion feature, exercise price per share	$ 1.75
Conversion feature, shares exercised	84,220
9% Unsecured Convertible Note[Member]
Short-term Debt [Line Items]
Convertible Note Principal Amount, accelerated amortization	$ 10,500
Debt Discounts & Financing Costs	0	$ (106,967)
Amortization of debt discount and deferred financing costs	(8,533)
Debt Discounts & Financing Costs, accelerated amortization	$ 105,000

Balance Sheet Information (De_2

Balance Sheet Information (Details) - Outstanding Warrants [Member]	6 Months Ended
	Jun. 30, 2019shares
Outstanding December 31, 2018	3,789,482
Agreement Amendments / Interest effects (in shares)	325,000
Exercises / Conversions / Expirations (in shares)	(940,769)
Outstanding June 30, 2019	3,173,713
2017 Registered Public Offering [Member]
Outstanding December 31, 2018	469,970
Agreement Amendments / Interest effects (in shares)	0
Exercises / Conversions / Expirations (in shares)	(359,058)
Outstanding June 30, 2019	110,912
Investor Management Services [Member]
Outstanding December 31, 2018	710,000
Agreement Amendments / Interest effects (in shares)	0
Exercises / Conversions / Expirations (in shares)	(100,000)
Outstanding June 30, 2019	610,000
9% Convertible Note Warrants [Member]
Outstanding December 31, 2018	520,373
Agreement Amendments / Interest effects (in shares)	0
Exercises / Conversions / Expirations (in shares)	(27,867)
Outstanding June 30, 2019	492,506
2013 Convertible Notes [Member]
Outstanding December 31, 2018	60,000
Agreement Amendments / Interest effects (in shares)	0
Exercises / Conversions / Expirations (in shares)	0
Outstanding June 30, 2019	60,000
Other 9% Convertible Note Warrants [Member]
Outstanding December 31, 2018	96,520
Agreement Amendments / Interest effects (in shares)	0
Exercises / Conversions / Expirations (in shares)	0
Outstanding June 30, 2019	96,520
2017 Registered Public Offering Agent Warrants [Member]
Outstanding December 31, 2018	62,334
Agreement Amendments / Interest effects (in shares)	0
Exercises / Conversions / Expirations (in shares)	(40,834)
Outstanding June 30, 2019	21,500
9% Convertible Note 7% Agent Warrants [Member]
Outstanding December 31, 2018	66,230
Agreement Amendments / Interest effects (in shares)	0
Exercises / Conversions / Expirations (in shares)	0
Outstanding June 30, 2019	66,230
May-2018 Public Offering Agent Warrants [Member]
Outstanding December 31, 2018	122,000
Agreement Amendments / Interest effects (in shares)	0
Exercises / Conversions / Expirations (in shares)	(115,300)
Outstanding June 30, 2019	6,700
Preferred Share Conversion Warrants [Member]
Outstanding December 31, 2018	731,798
Agreement Amendments / Interest effects (in shares)	0
Exercises / Conversions / Expirations (in shares)	(91,954)
Outstanding June 30, 2019	639,844
Preferred Share issuance 8% Agent Warrants [Member]
Outstanding December 31, 2018	38,827
Agreement Amendments / Interest effects (in shares)	0
Exercises / Conversions / Expirations (in shares)	0
Outstanding June 30, 2019	38,827
Nov-2017 Underwriter Agreement Investor Warrants [Member]
Outstanding December 31, 2018	910,587
Agreement Amendments / Interest effects (in shares)	0
Exercises / Conversions / Expirations (in shares)	(205,756)
Outstanding June 30, 2019	704,831
Oct-2017 Shelf Take Down Agent Warrants [Member]
Outstanding December 31, 2018	843
Agreement Amendments / Interest effects (in shares)	0
Exercises / Conversions / Expirations (in shares)	0
Outstanding June 30, 2019	843
Fortress - iPass Loan Repayment Warrant [Member]
Outstanding December 31, 2018	0
Agreement Amendments / Interest effects (in shares)	325,000
Exercises / Conversions / Expirations (in shares)	0
Outstanding June 30, 2019	325,000

Balance Sheet Information - Cas

Balance Sheet Information - Cash and Restricted Cash (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Balance Sheet Information
Cash and cash equivalents	$ 3,377,556	$ 6,051,709
Restricted Cash	1,104,757	430,655
Total cash, cash equivalents and restricted cash reported in the Statement of Cash Flows	$ 4,482,313	$ 6,482,364	$ 19,434,335	$ 13,737,675

Balance Sheet Information - Not

Balance Sheet Information - Notes Receivable (Details) - USD ($)	Feb. 28, 2019	Feb. 12, 2019	Jan. 09, 2019	Jun. 30, 2019	Dec. 31, 2018	Nov. 26, 2018	Sep. 30, 2018	Sep. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, non-current				$ 2,819,200	$ 1,082,436
Notes receivable, current				1,024,025	0
Total outstanding balance of related party loan				$ 342,000	341,998
Related Party Transaction, Rate				8.00%
Yonder Media Mobile [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, non-current				$ 3,355,034	505,667
Interest rate (as percent)						6.00%
Execution of senior secured promissory note					500,000
Yonder Media Mobile [Member] | 2019 Notes [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate (as percent)				12.00%
Additional notes issued	$ 2,000,000	$ 200,000	$ 500,000
Share Holder | Artilium PLC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Equity Method Investment, Ownership Percentage				15.00%
ValidSoft Ltd [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, non-current				$ 488,191	$ 576,769
Consideration received								$ 3,000,000
Promissoy note								$ 2,000,000
Cash							$ 1,000,000
Interest rate (as percent)					5.00%

Stockholders' Equity (Details)

Stockholders' Equity (Details) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Class of Warrant or Right, Outstanding	3,173,713
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 2.21
Warrants - Fundraising [Member]
Class of Warrant or Right, Outstanding	3,173,713	3,789,482
Warrants - Fundraising [Member] | Maximum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 5.375
Warrants - Fundraising [Member] | Minimum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.05

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - $ / shares	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Dec. 31, 2018
Common Stock, Shares Authorized	500,000,000				500,000,000	500,000,000
Common Stock, Shares, Outstanding	111,652,349				111,652,349	97,852,911
Stock Issued During Period, Shares, Period Increase (Decrease)					13,799,438
Stock Issued During Period, Shares, New Issues					(425,000)
Stock Issued During Period, Shares, Conversion of Convertible Securities					84,220
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 2.21				$ 2.21
Stock Issued During Period, Shares, Acquisitions					(10,970,412)
Convertible Notes Payable [Member]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures					(653,796)
Warrants - Fundraising [Member]
Warrants And Debt Conversion Feature, Units Outstanding	3,173,713				3,173,713	3,789,482
Common Stock [Member]
Stock Issued During Period, Shares, Conversion of Convertible Securities	84,220
Stock Issued During Period Shares Warrants Exercised	356,738	501,606	1,663,522	4,250,748
Stock Issued During Period Shares For Settlement Of Debt	233,282	420,514	44,829		0
Stock Issued During Period, Shares, Acquisitions	(1,105,000)	(9,865,412)	0
Warrant [Member]
Stock Issued During Period Shares Warrants Exercised					(858,344)

Amended and Restated 2008 Lon_3

Amended and Restated 2008 Long Term Incentive Compensation Plan and 2017 Long-Term Incentive Compensation Plan (Details) - shares	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Amended and Restated 2008 Long Term Incentive Compensation Plan, 2017 Long-Term Incentive Compensation Plan and 2018 Long-Term Incentive Compensation Plan, As Amended
Outstanding options	(8,746,023)	(8,981,608)	(3,663,812)

Amended and Restated 2008 Lon_4

Amended and Restated 2008 Long Term Incentive Compensation Plan and 2017 Long-Term Incentive Compensation Plan (Details1) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Amended and Restated 2008 Long Term Incentive Compensation Plan, 2017 Long-Term Incentive Compensation Plan and 2018 Long-Term Incentive Compensation Plan, As Amended
Number of Options, Outstanding as of December 31, 2018	8,981,608	3,663,812		3,663,812
Number of Options, Granted	207,703			5,440,103
Number of Options, Exercised (with delivery of shares)	(107,955)			(176,038)
Number of Options, Forfeitures	(335,333)			(158,552)
Number of Options, Expirations				(23,302)
Number of Options, Outstanding as of June 30, 2019	8,746,023	8,981,608		8,746,023
Weighted Average Exercise Price, Outstanding (in dollars per share)	$ 2.26	$ 2.26		$ 2.26
Weighted Average Exercise Price, Granted (in dollars per share)	2.29			2.18
Weighted Average Exercise Price, Exercised (with delivery of shares) (in dollars per share)	1.30			1.19
Weighted Average Exercise Price, Forfeitures (in dollars per share)	2.28			2.20
Weighted Average Exercise Price, Expirations (in dollars per share)				8.32
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ / shares	$ 2.21	$ 2.26		$ 2.21
Initial Fair Market Value, Outstanding	$ 11,465,952	$ 4,962,798		$ 4,962,798
Initial Fair Market Value, Granted in 2019	424,055			6,661,232
Initial Fair Market Value, Exercised (with delivery of shares)	(91,008)			(127,518)
Initial Fair Market Value, Forfeitures (pre-vesting)	(721,969)			(226,849)
Initial Fair Market Value, Expirations (Post-vesting)				(192,633)
Initial Fair Market Value, Outstanding	11,077,030	$ 11,465,952		11,077,030
Stock-based compensation expense	2,008,833		$ 697,448	5,722,447	$ 1,771,580
Unrecognized expense for share-based awards granted under the plans	$ 6,280,777			$ 6,280,777

Amended and Restated 2008 Lon_5

Amended and Restated 2008 Long Term Incentive Compensation Plan and 2017 Long-Term Incentive Compensation Plan (Details Textual) - shares	Jun. 28, 2019	Oct. 10, 2018	Apr. 13, 2018	Jun. 14, 2017	Sep. 12, 2014	Dec. 17, 2013	Oct. 06, 2011	Jul. 11, 2008	Jun. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Issued Since Inception Of Plan									6,406,012	6,406,012
Options exercised									107,955	176,038
Issued and Outstanding									8,746,023	8,746,023	8,981,608	3,663,812
Time Conditioned Share Awards									1,641,355	1,641,355
Available for grant at June 30, 2019:									6,126,610	6,126,610
Common Stock, Shares, Issued									111,652,349	111,652,349		97,852,911
2008 Long-Term Incentive Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number registered					400,000	920,000	720,000	200,000
2017 Long-Term Incentive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number registered			3,000,000	3,500,000
2018 Long Term Incentive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number registered	7,500,000	8,000,000								8,000,000
Common Stock, Shares, Issued									8,000,000	8,000,000
2018 Plan Increase [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Long term Incentive Plan Increase in Number Of Shares Available										7,500,000
Evergreen Increase [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of Increase In Incentive Plan										15.00%
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Issued Since Inception Of Plan									330,542	330,542
Options exercised										176,038
Issued and Outstanding									8,746,023	8,746,023
Time Conditioned Share Awards									84,723	84,723
Available for grant at June 30, 2019:									16,513,988	16,513,988
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross										5,082,211
Consultant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Issued Since Inception Of Plan									1,011,165	1,011,165
2019 Activities										177,744
Directors And Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Issued Since Inception Of Plan									5,064,305	5,064,305
2019 Activities										797,789

Income taxes (Details)

Income taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income taxes
Income tax (benefit)/expense	$ (449,403)	$ 18,842	$ (616,737)	$ 18,424

Significant Customer and Geog_3

Significant Customer and Geographical Information (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Concentration Risk [Line Items]
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
Europe
Concentration Risk [Line Items]
Concentration Risk, Percentage	52.70%	59.40%	57.70%	76.80%
All other (non-European) countries
Concentration Risk [Line Items]
Concentration Risk, Percentage	47.30%	40.60%	42.30%	23.20%

Significant Customer and Geog_4

Significant Customer and Geographical Information (Detail Textuals)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
Customer
Concentration Risk, Percentage	19.70%	75.00%	20.40%	79.30%
Largest Customer
Concentration Risk, Percentage	11.20%	53.40%	12.50%	63.50%
Second Largest Customer
Concentration Risk, Percentage	8.50%	21.60%	7.90%	15.80%

Revenues (Details)

Revenues (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues.	$ 34,148,396	$ 6,003,180	$ 57,188,310	$ 10,115,750
Monthly Service [Member]
Revenues.	31,627,289	4,277,289	53,237,189	7,772,831
Software Development [Member]
Revenues.	$ 2,521,107	$ 1,725,891	$ 3,951,121	$ 2,342,919

Revenues - Disaggregated by geo

Revenues - Disaggregated by geography (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues.	$ 34,148,396	$ 6,003,180	$ 57,188,310	$ 10,115,750
Europe
Revenues.	17,978,271	3,563,089	33,015,300	7,772,831
Other Geographic Areas [Member]
Revenues.	$ 16,170,125	$ 2,440,091	$ 24,173,010	$ 2,342,919

Revenues - Additional informati

Revenues - Additional information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Deferred Revenue, Revenue Recognized			$ 0
Revenues.	$ 34,148,396	$ 6,003,180	57,188,310	$ 10,115,750
Revenue From Contract Increase Decrease In Billing In Excess Of Cost Of Earnings			0
Revenue From Contract Billings In Excess Of Cost Current	0		0
Monthly Service [Member]
Revenues.	31,627,289	4,277,289	53,237,189	7,772,831
Software Development [Member]
Revenues.	$ 2,521,107	$ 1,725,891	$ 3,951,121	$ 2,342,919

Credit Agreement (Details)

Credit Agreement (Details) - USD ($)	Feb. 12, 2019	Feb. 26, 2019	Feb. 26, 2019	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Line of Credit Facility, Maximum Borrowing Capacity		$ 50,000,000	$ 50,000,000
Proceeds from Secured Lines of Credit		25,000,000
Line of Credit Facility, Remaining Borrowing Capacity		$ 5,000,000	$ 5,000,000	$ 25,000,000
Secured Debt, Current				22,077,767		$ 0
Capital Leases, Income Statement, Interest Expense				0
Debt Issuance Costs, Net				1,655,112
Accumulated Amortization, Debt Issuance Costs				0
Debt Instrument, Description of Variable Rate Basis		Libor plus 8.5%
Investments and Cash				$ 2,000,000
Stock Issued During Period, Shares, New Issues				425,000
Transaction fees paid related to loan	$ 623,555			$ 623,555	$ 653,000
Description of Prepayment Condition			The Loan is subject to prepayment upon the receipt of proceeds outside the ordinary course of business in excess of $1,000,000
Line Of Credit Facility Discount Rate Description			The initial $25,000,000 loan is reduced by an original issue discount of (i) 0.75% of $25,000,000 and (ii) 1.25% of $50,000,000, and any additional amounts borrowed will be reduced by an original issue discount of 0.75% of the funded amounts.
Line of Credit Facility, Covenant Terms			The Credit Agreement also contains affirmative and negative covenants with respect to operation of the business and properties of the Company as well as financial performance, including requirements to maintain a minimum of $2,000,000 of unrestricted cash
Fortress Credit Corp [Member]
Business Combination Repayment of Assumed Debt			$ 11,700,000
Post Road Group Debt Facility [Member]
Stock Issued During Period, Shares, New Issues			425,000
Additional Common Stock Shares Issued			200,000
Stock Issued During Period, Value, New Issues				$ 1,606,500
Long-term Line of Credit		$ 25,000,000	$ 25,000,000
Debt Instrument Description Of Variable Rate Basis On Non Compliance Of Debt Conditions			Libor plus 11.5%

Commitments and Contingencies_2

Commitments and Contingencies (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Operating Leases:
Operating lease right-of-use assets	$ 2,493,352	$ 0
Operating lease liabilities	$ 2,790,685
Weighted average remaining lease term
Operating leases	1 year 10 months 24 days
Weighted average remaining discount rate
Operating leases	8.80%

Commitments and Contingencies -

Commitments and Contingencies - Maturities of operating lease liabilities (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2019	$ 975,453
2020	1,716,284
2021	119,059
2022	62,387
2023	62,387
Thereafter	98,779
Total lease payments	3,034,349
Less imputed interest	(243,664)
Lease liabilities, current	1,776,900	$ 0
Lease liabilities, non-current	1,013,785	$ 0
Total	$ 2,790,685

Commitments and Contingencies_3

Commitments and Contingencies - Lease expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Operating Lease, Expense	$ 487,850	$ 39,393	$ 970,398	$ 81,506

Commitments and Contingencies_4

Commitments and Contingencies - Ellenoff Grossman & Schole LLP (Details) - USD ($)	May 05, 2017	Jun. 27, 2017
Loss Contingencies [Line Items]
Loss Contingency Amount Payable to Plaintiff Description		$ 817,822
Unpaid Legal Fees [Member]
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Value	$ 817,822