Efactor (STDR) 10-Q 17 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 13, 2015
Document And Entity Information
Entity Registrant Name	EFACTOR GROUP CORP.
Entity Central Index Key	1,158,694
Document Type	10-Q
Trading Symbol	efct
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		3,289,323
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash	$ 262,424	$ 111,878
Accounts receivable, net of allowance for doubtful accounts of $64,812 and $64,812 at June 30, 2015 and December 31, 2014, respectively	640,250	419,664
Unbilled revenue	644,581	329,315
Other current assets	65,965	59,215
Total current assets	1,613,220	920,072
Property, website and equipment, net of accumulated depreciation of $1,446,929 and $1,419,215 at June 30, 2015 and December 31, 2014, respectively	956,387	856,030
Goodwill	$ 27,737,616	25,544,581
Deferred financing costs		101,897
TOTAL ASSETS	$ 30,307,223	27,422,580
CURRENT LIABILITIES:
Accounts payable	2,741,175	2,229,944
Accounts payable - related party	280,875	748,120
Contingent consideration	68,746	943,746
Accrued expenses and other current liabilities	1,834,165	$ 2,050,070
Funds held in trust	167,361
Operating line of Credit	360,000	$ 475,000
Bank loans	264,885	148,006
Deferred revenue	129,490	55,382
Deferred rent	376,873	$ 368,509
Derivative liability	4,241,206
Current portion of note payable, net of discount	7,046	$ 261,267
Current portion of convertible note payable, net of discount	1,168,352	1,042,904
Current portion of note payable - related parties, net of discount	231,081	281,644
Total current liabilities	11,871,255	8,604,592
Other Long-term obligations	76,757	101,256
Contingent consideration	310,937	310,937
Non-current portion of note payable, net of discount	5,701	8,177
Total Non-Current Liabilities	393,395	420,370
TOTAL LIABILITIES	$ 12,264,650	$ 9,024,962
Commitments and contingencies
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value, 20,000,000 shares authorized, 42,000 issued and outstanding as of June 30, 2015 and and December 31, 2014 respectively.	$ 42	$ 42
Common stock, $0.001 par value, 300,000,000 shares authorized, 3,193,833 and 2,230,670 issued and outstanding at June 30, 2015 and December 31, 2014 respectively.	3,194	2,231
Subscription receivable	(168,000)	(168,000)
Accumulated other comprehensive loss	(1,234,945)	(1,441,630)
Additional paid-in capital	73,221,836	65,953,501
Accumulated deficit	(53,779,554)	(45,948,526)
Total stockholders' equity	18,042,573	18,397,618
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 30,307,223	$ 27,422,580

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable, current	$ 64,812	$ 64,812
Accumulated depreciation	$ 1,446,929	$ 1,419,215
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	42,000	42,000
Preferred stock, shares outstanding	42,000	42,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	3,193,833	2,230,670
Common stock, shares outstanding	3,193,833	2,230,670

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Other Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Net revenues	$ 1,065,757	$ 148,586	$ 2,069,398	$ 265,131
Operating expenses
Cost of revenue	262,423	46,549	424,836	77,755
Sales and marketing	168,847	64,081	363,541	119,407
General and administrative	2,751,701	882,988	4,877,108	3,169,520
Depreciation and amortization	$ 97,493	59,228	$ 196,029	114,866
Loss on forgiveness of liabilities		32,778		32,778
Total operating expenses	$ 3,280,464	1,085,624	$ 5,861,514	3,514,326
Loss from operations	(2,214,707)	(937,038)	(3,792,116)	(3,249,195)
Other income (expense):
Interest expense	$ (466,919)	$ (475,215)	$ (705,271)	(1,463,149)
Loss on conversion of debt				(49,926)
Derivative loss	$ (326,237)	$ (16,250)	$ (445,815)	$ (576,143)
Loss on change in FV of derivative liability	(2,299,967)		(2,609,141)
Amortization of warrants	$ (274,346)		(289,069)
Other income (expense)			10,384
Total other income (expense), net	$ (3,367,469)	$ (491,465)	(4,038,912)	$ (2,089,218)
Net loss	(5,582,176)	(1,428,503)	(7,831,028)	(5,338,413)
Other comprehensive gain (loss):
Foreign currency translation adjustment	(9,286)	(4,720)	206,685	(24,699)
Comprehensive loss	$ (5,591,462)	$ (1,433,223)	$ (7,624,343)	$ (5,363,112)
Basic and diluted net loss per common share (in dollars per share)	$ (2.08)	$ (1.36)	$ (2.61)	$ (5.12)
Weighted average shares used in completing basic and diluted net loss per common share (in shares)	2,683,786	1,055,582	3,004,152	1,047,553

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (7,831,028)	$ (5,338,413)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	196,029	114,866
Stock option expense	7,946	67,869
Amortization of debt discount	420,674	$ 1,331,004
Amortization of deferred finance costs	101,897
Stock compensation expense	1,370,492	$ 1,355,598
Loss on change in fair value of derivative liability	2,609,141	$ 32,778
Derivative related to interest expense	$ 445,815
Loss on conversion of debt		$ 49,926
Derivative loss		$ 576,143
Warrant expense	$ 289,069
Changes in operating assets and liabilities:
Accounts receivable	(208,573)	$ (5,263)
Unbilled revenue	(315,266)
Bank loans	116,879
Other current assets	(6,107)	$ (150,358)
Accounts payable	700,703	416,378
Accounts payable - related party	306,864	118,642
Accrued expenses	(223,925)	$ 77,939
Deferred revenue	74,108
Funds held in trust	(11,729)
Deferred rent	8,364	$ (3,106)
Net cash used in operating activities	(1,948,647)	(1,355,997)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for acquisition of property, website and equipment	(142,017)	$ (128,184)
Cash acquired from acquisitions	169,588
Net cash provided by (used) in investing activities	27,571	$ (128,184)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings	874,014	1,143,452
Proceeds from issuance of shares	983,075	$ 478,520
Proceeds from exercise of warrants	14,060
Repayment of notes payable	(6,212)	$ (30,143)
Net cash provided by financing activities	1,864,937	1,591,829
Effect of foreign currency exchange rate on cash	206,685	(24,699)
Net increase in cash	150,546	82,949
Cash at beginning of period	111,878	43,377
Cash at the end of the period	262,424	126,326
Supplemental Disclosure of Cash Flows Information:
Cash paid for interest	$ 22,701	7,298
Cash paid for income taxes		1,600
Non-cash Investing and Financing Activities:
Debt discount due to beneficial conversion feature	$ 1,186,250	$ 826,032
Shares issued for settlement of contingent liability	875,000
Shares issued for conversion of debt - related party	703,167
Shares issued for conversion of payables	$ 547,778
Debt discount due to shares and warrants issued with debt		$ 311,245
Default penalty incurred	$ 50,000
Reclass of accounts payable - related party to debt		$ 40,739
Shares issued for conversion of debt and accrued interest	$ 666,100	737,368
Shares issued for settlement of accounts payable		$ 20,000
Shares issued for acquisitions	1,714,286
Convertible debt purchased with acquistion	$ 255,000
Asignment of debt to third party	$ 548,796

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	Note 1 – Organization and Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements of EFactor Group Corp. (the “Company,” “we” or “our”) have been prepared by the Company’s management in conformity with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited consolidated financial statements and notes thereto of the Company contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (“Form 10-K”), which was filed on April 14, 2015.The condensed consolidated financial statements are prepared in accordance with the requirements for unaudited interim periods, and consequently, do not include all disclosures required to be made in conformity with accounting principles generally accepted in the United States of America. On April 28, 2015, the Company amended its Amended and Restated Articles of Incorporation to increase the number of authorized shares of common stock of the Company from 175,000,000 to 300,000,000. On July 14, 2015, the Company filed a Certificate of Amendment (the “Amendment”) with the Secretary of State of the State of Nevada to effect a reverse stock split of its outstanding shares of common stock and preferred stock at a ratio of 1 for 60 (the “Stock Split”), which Amendment became effective on July 17, 2015. Unless otherwise noted, all references herein to the number of common shares, price per common share or weighted average number of common shares outstanding have been adjusted to reflect this reverse stock split on a retroactive basis. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the fiscal year ended December 31, 2014 as reported in the Form 10-K have been omitted. Our mission is to assist entrepreneurs in building and growing their businesses. We believe we are the only global company that combines a comprehensive online and in-person social network with business services and funding focused exclusively on the entrepreneurial community. Operating through our wholly-owned subsidiaries, we provide our more than 1.7 million members with social networking opportunities, business services including education and mentoring, and funding including educational tools and opportunities such as donation-based crowdfunding. Coupled with members in every country of the world (196 countries) participating in 240 industry groups, we have created a global, resource-rich ecosystem for entrepreneurs and small businesses that serves as a source of inspiration and ideas and provides essential services to foster business growth. Our operations consist of the following three divisions: · Social Networks · Business Services · Funding The Company currently maintains its corporate office in New York, New York. Principles of consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries as of June 30, 2015. Significant intercompany balances and transactions have been eliminated.

Going Concern

Going Concern	6 Months Ended
	Jun. 30, 2015
Going Concern [Abstract]
Going Concern	Note 2 – Going Concern The Company’s financial statements are prepared using generally accepted accounting principles in the United States, which contemplate the realization of assets and liquidation of liabilities in the normal course of business. Because the Company is new, has limited history and relatively few sales, no certainty of continuation can be stated. The accompanying condensed consolidated financial statements for the six month period ended June 30, 2015 and 2014 have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has suffered losses from operations and has a working capital deficit, which raises substantial doubt about its ability to continue as a going concern. Management is taking steps to raise additional funds to address its operating and financial cash requirements to continue operations. The Company’s ability to continue as a going concern is dependent upon raising additional funds through debt and equity financing and generating revenue. There are no assurances the Company will receive the necessary funding or generate revenue necessary to fund operations. The financial statements contain no adjustments for the outcome of this uncertainty.

Notes Payable and Line of Credi

Notes Payable and Line of Credit	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Notes Payable and Line of Credit	Note 3 – Notes Payable and Line of Credit Notes payable On January 9, 2015 the Company issued $125,000 in convertible notes to an investor group and an additional $25,000 in February 2015. The notes have a maturity of one (1) year and interest rate of 10% per annum and are convertible at a price of 50% of the average closing bid prices on the primary trading market on which the Company’s Common Stock is then listed for the five (5) trading days immediately prior to conversion. In conjunction with the notes the Company issued 33,333 Warrants to the Investors with a strike price of $6.00 per share. The warrants are cashless and exercisable for a period of five (5) years from closing. The Company also issued a banking advisory fee of 11,667 shares of common stock of the Company to the investors valued at $50,090. On January 26, 2015, the Company issued a convertible note amounting to $78,750. The note is subject to annual interest of 8%, has a term of one (1) year and is convertible to common stock at a price equal to 58% of the lowest closing bid prices for the last 15 trading days prior to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash. Also on January 26, 2015, the Company issued a second convertible note amounting to $78,750 referenced as a backend note in which the proceeds are only available at the option of the Company and then only if the initial note for $78,750 has been satisfied. This note is subject to annual interest of 8%, has a term of one (1) year and is convertible to common stock at a price equal to 58% of the lowest closing bid prices for the last 15 trading days prior to conversion. During February and March 2015, pursuant to a Securities Purchase Agreement between the Company and Magna Equities II, LLC (“Magna Equities II”), the Company issued to Magna Equities II a convertible promissory note (the “Magna Equities II Note”) in the aggregate principal amount of $175,000. $100,000 was funded on February 27, 2015 and $75,000 was funded on March 2, 2015. The principal due under the Magna Equities II Note accrues interest at a rate of 12% per annum. All principal and accrued interest under the Magna Equities II Note must be repaid one year from the funding set forth above. All principal and accrued interest under the Magna Equities II Note is convertible into shares of Common Stock at a conversion price equal to the lesser of (i) a 40% discount from the lowest daily trading price in the five (5) trading days prior to conversion, or (ii) a fixed price of $0.25. On March 2, 2015, pursuant to a Securities Exchange Agreement between the Company and Magna Equities I, LLC (“Magna Equities I”), the Company issued to Magna Equities I a convertible promissory note (the “Magna Equities I Note”) in the aggregate principal amount of $200,000, in exchange for $200,000 of existing debt of the Company that Magna Equities I purchased from third parties. The Magna Equities I Note accrues interest at a rate of ten percent per annum. All principal and accrued interest under the Magna Equities I Note is due on March 2, 2016. All principal and accrued interest under the Magna Equities I Note is convertible into shares of common stock of the Company, par value $0.001 per share, at a conversion price equal to a 40% discount from the lowest daily trading price in five (5) trading days prior to conversion. At any time during the period beginning on the Issue Date and ending on the date which is ninety (90) days thereafter, the Company may prepay any portion of the principal amount and accrued interest at 135% of such amount upon three (3) days’ written notice to Magna Equities I. In addition, beginning on the date which is thirty (30) calendar days after the Issue Date, Magna Equities I shall be obligated to purchase an additional $200,000 of Magna Equities I Notes every thirty (30) calendar days, up to a total of $1 million in additional purchases. On March 15 th th On April 8, 2015, pursuant to a Securities Exchange Agreement between the Company and Magna Equities I, LLC, the Company issued to Magna Equities I a convertible promissory note in the aggregate principal amount of $200,000, in exchange for $200,000 of existing debt of the Company that Magna Equities I purchased from third parties. The Magna Equities I Note accrues interest at a rate of ten percent per annum. All principal and accrued interest under the Magna Equities I Note is due on March 2, 2016. All principal and accrued interest under the Magna Equities I Note is convertible into shares of common stock of the Company, par value $0.001 per share, at a conversion price equal to a 40% discount from the lowest daily trading price in five (5) trading days prior to conversion. On April 15, 2015, in connection with the acquisition of RocketHub, the Company assumed as part of the transaction seven convertible notes with an aggregate face value of $255,000 bearing an interest rate of 0.25%. While these notes are due during the third quarter of 2015, the Company is currently attempting to extend the maturity date of these convertible notes. In connection with the Merger Agreement, certain significant Sellers entered into non-competition and non-solicitation agreements in favor of the Company and RocketHub. In connection with the Merger Agreement, RocketHub also entered into employment agreements with certain of its existing key employees. Additionally, certain outstanding convertible promissory notes of RocketHub for an aggregate principal amount of $255,000 (the “Convertible Notes”) remain outstanding after the Merger, but will be convertible into shares of Common Stock. Convertible Notes with an aggregate principal amount of $95,000 mature on April 27, 2015 and have a conversion price of $1.1751 per share (subject to customary adjustments). However, in connection with the Merger, the holders of Convertible Notes with an aggregate principal amount of $160,000 agreed to extend the maturity of their Convertible Notes for a period of approximately 4 months (with $150,000 in principal amount extended until August 31, 2015 and $10,000 in principal amount extended until May 31, 2016) in exchange for a reduced conversion price of $0.70 per share (subject to customary adjustments). On May 1, 2015 the Company issued to Magna Equities I, LLC a convertible promissory note in the aggregate principal amount of $53,000 under the same terms as the. On May 20, 2015 the Company issued to Magna Equities I, LLC a convertible promissory note in the aggregate principal amount of $200,000 under the same terms as the previous note. On May 27, 2015 the Company issued a convertible promissory note in the aggregate principal amount of $85,000 under the same terms as the Magna Equities II Note. During the six months ended June 30, 2015, the Company issued approximately $110,000 shares to convert approximately $700,000 of convertible debt and accrued interest. During the six months ended June 30, 2015 the Company recognized $420,674 of interest expense due to the amortization of debt discounts on all convertible and unsecured short term notes. The fair value of the derivative liability at the re-measurement date amounting to $967,002 was credited to additional paid in capital. The derivative liability was valued using the Black-Scholes model using the following assumptions: At issuance date At termination date Market value of stock on measurement date $ 4.80 -135.00 $ 4.80 - 114.00 Risk-free interest rate 0.01% - 0.04 % 0.05 % Dividend yield 0 % 0 % Volatility factor 269% - 655 % 319 % Term 0.07 - 0.16 years 0.25 years A summary of activity for Convertible notes payable during the six months ended June 30, 2015 is set forth below: Balance at December 31, 2014 $ 1,312,348 Proceeds from convertible notes 874,014 Payments (6,212 ) Assumption of debt in acquisition 255,000 Assignment of debt from line of credit $ 115,000 Conversion of convertible notes to equity (616,222 ) Debt discount on new convertible notes and shares issued with debt (1,186,250 ) Amortization of debt discount 420,674 Balance at June 30, 2015 1,168,352 Odom - Line of Credit On June 7, 2013, the Company entered into a Revolving Line of Credit Agreement (the “Odom Agreement”) with Charles Odom, the lender, in the amount of $750,000. Pursuant to the Agreement, the lender agreed to make loans to the Company from time to time commencing on the date of the Agreement for a period of twenty four (24) months thereafter ending June 7, 2015. As of June 30, 2015, the Company has drawn $475,000 from the line and has made a payment of $75,000 during the first quarter of 2015 with another payment of $40,000 in the second quarter of 2015, leaving a current outstanding balance of $360,000 as of June 30, 2015. As required by the Odom Agreement, the Company also issued 1,979 shares to the lender, proportionate to amounts that had been drawn, which was recognized as deferred financing fees of $475,000 and amortized over the term of the line of credit. For the six months ended June 30, 2015, $58,227 has been amortized into interest expense. All amounts drawn from the line of credit are subject to annual interest of 15% and will mature within a period of 12 months or within 14 days after the Company has a capital raise with proceeds of $10 million, whichever is earlier. The line of credit is secured by all of the assets of the Company. We have been advised by the lender that, due to extenuating circumstances, he is not currently able to provide us with additional advances under the line of credit. Bank loans Through the acquisition of the HT Skills entity on July 1, 2014 the Company also assumed three separate banking activities where the former principal owner of HT Skills has continued to guarantee the amount of the funds provided whether in an overdraft or outstanding balance position. As of June 30, 2015, HT Skills has an outstanding balance on their overdraft facility of $60,908 (£40,331) which is included in accounts payable in the consolidated balance sheets. As of June 30, 2015, HT Skills has outstanding balances for two term loans totaling to $141,759 (£93,833). These loans mature on May 31, 2015, are subject to annual interest at a rate of 8% over the prevailing Bank of England Base Rate (the Bank of England base rate is currently 0.5% a year, but may change from time to time) and are secured by the assets of HT Skills. These Bank Loans per the Company’s Purchase Agreement with the Shareholders of HTSkills, are the obligation of the former owner of HT Skills and will be reimbursed to the Company. In March 2015, Robson Dowry entered into a receivables factoring agreement with Lloyds Bank PLC whereby Robson Dowry will be able to finance up to 80% of their receivables up to $100,000 (£65,000). This factoring agreement has a funding period of four months for the receivables presented and carries an interest rate of 4.98% above the base rate or 6% (whichever is higher). As of June 30, 2015, the outstanding balance on this agreement was $57,465.

Other Liabilities

Other Liabilities	6 Months Ended
	Jun. 30, 2015
Other Liabilities Disclosure [Abstract]
Other Liabilities	Note 4 – Other Liabilities Justice Obligation As part of the acquisition of EQmentor, Inc., the Company entered into an employment agreement with the former majority shareholder of EQmentor, Inc. where the latter is entitled to receive a quarterly bonus in an amount equivalent to $103,333 (net of payment of all payroll taxes and other withholdings), in cash or common stock. The purpose of the obligation was to allow the former majority shareholder to repay certain debts that he had personally secured during the course of his ownership of EQmentor, Inc. As of June 30, 2015, this obligation has an outstanding balance of $633,022 which is included in accrued liabilities and other current liabilities in the consolidated balance sheets. The obligation accrues interest of 3.5% per annum. The Company is anticipating payments to begin on a quarterly basis during the second half of 2015. MCC Obligation As a component of the MCC acquisition the Company acquired a long-term liability related to a previous recapitalization of MCC. Specifically, MCC entered into an arrangement with its creditors during 2010, in what is referred as a “Company Voluntary Arrangement”, in order to protect MCC from any unreceptive creditor action. In connection with the arrangement, the Company is required to make monthly fixed payments to a trustee of $2,265 (£1,500 GBP). These payments are scheduled to end in February 2019. This obligation is reported as other long-term obligations in the consolidated balance sheets.

Derivative Instruments

Derivative Instruments	6 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Note 5 – Derivative Instruments During the six months ended June 30, 2015, the Company recognized a derivative liability associated with the convertible notes discussed in Note 3. The resulting derivative liability being recognized at the issuance date amounting to $1,510,187 with a corresponding charge to debt discount for the full amount of the notes amounting of $1,186,250 and the balance of $445,815 to derivative expense. On June 30, 2015, the derivative instruments were revalued to $4,241,206 resulting in a loss on the change in value of $2,609,141 and a corresponding increase in derivative liability. Also on June 30, 2015, the Company amortized $324,175 in debt discount resulting in a net discount balance of $862,075 for these derivative instruments. The derivative liabilities were valued using the Black-Scholes model using the following assumptions: At issuance date At termination date Market value of stock on measurement date $ 4.80 - 135.00 $ 4.80 - 114.00 Risk-free interest rate 0.01% - 0.04 % 0.01 - 0.15 % Dividend yield 0 % 0 % Volatility factor 146% - 1,731 % 171 -319 % Term 0.07 – 1.01 years 0.09 - 0.25 years

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Acquisitions	Note 6 – Acquisitions Description of the Transactions HT Skills Ltd. On July 1, 2014, the Company entered into an Exchange Agreement by and among the Company, HT Skills Ltd., an entity organized under the laws of England and Wales (“HT Skills”), and Five5Five PTE Ltd., the sole shareholder of HT Skills (“HT Seller”). On the same date, the parties consummated the transaction, pursuant to which the HT Seller sold, and the Company purchased, all of HT Skills’ outstanding capital stock, in exchange for 221,985 unregistered shares of the Company’s common stock. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Assets Acquired: Accounts receivable $ 310,464 Unbilled revenue 100,200 Property, plant and equipment 167,728 Goodwill 10,782,378 Assets acquired $ 11,360,770 Liabilities Assumed: Accounts payable $ 409,602 Short term debt 148,006 Other long term liabilities 147,882 Liabilities assumed $ 705,490 Net assets acquired $ 10,655,280 Fair value of consideration given $ 10,655,280 Member Digital Ltd. On July 1, 2014, the Company entered into an Exchange Agreement by and among the Company, Member Digital Ltd., an entity organized under the laws of England and Wales (“Member Digital”), and the shareholders of Member Digital (the “MDSellers”). On the same date, the parties consummated the transaction, pursuant to which the MD Sellers sold, and the Company purchased, all of Member Digital’s outstanding capital stock, in exchange for 20,833 unregistered shares of the Company’s common stock. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Assets Acquired: Cash $ 8,305 Accounts receivable 5,884 Goodwill 1,002,063 Assets acquired $ 1,016,252 Liabilities Assumed: Accounts payable $ 16,252 Liabilities assumed $ 16,252 Net assets acquired $ 1,000,000 Fair value of consideration given $ 1,000,000 GroupCard BV On July 7, 2014, the Company entered into an Exchange Agreement by and among the Company, GroupCard BV, an entity organized under the laws of the Netherlands (“GroupCard”), and the shareholders of GroupCard (the “GC Sellers”). On the same date, the parties consummated the transaction, pursuant to which the GC Sellers sold, and the Company purchased, all of GroupCard’s outstanding capital stock, in exchange for 46,875 unregistered shares of the Company’s common stock. In connection with the transaction, the Company agreed to loan GroupCard, within 120 days of the closing of the transaction, $400,000 at six percent interest per annum for working capital purposes. In addition, the Company agreed to pay the GC Sellers four semi-annual earn-out payments of shares of Common Stock (“Earn-Out Shares”), commencing on January 1, 2015. In the event 20,000 or more members are added by GroupCard during a semi-annual period (each, an “Earn-Out Period”), the Company shall issue to the GC Sellers the number of Earn-Out Shares equal to (i) $25.00 per member added by GroupCard during such Earn-Out Period, divided by (ii) $0.80. In the event less than 20,000 members are added during an Earn-Out Period, the Company will not issue any Earn-Out Shares to the Sellers for such period; however, any members added during such Earn-Out Period will be counted towards the subsequent Earn-Out Period. The Company recorded a contingent liability of $875,000 during 2014, this amount was relieved through the issuance of 18,229 shares of the Company’s common stock during the June 2015 quarter as outlined in the Exchange Agreement. Furthermore, the Company has evaluated the potential contingencies associated with this Exchange Agreement and determined that there is no additional contingent liability required as of June 30, 2015. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Assets Acquired: Cash $ 4,460 Accounts receivable 19,177 Prepaid expenses 12,275 Goodwill 3,155,326 Assets acquired $ 3,191,238 Liabilities Assumed: Accounts payable $ 43,212 Other current liabilities 23,026 Liabilities assumed $ 66,238 Net assets acquired $ 3,125,000 Fair value of consideration given: Acquisition date $ 2,250,000 Contingent 875,000 Total fair value of consideration given $ 3,125,000 ELEQT Ltd. On October 1, 2014, the Company entered into an Exchange Agreement by and among the Company, ELEQT Ltd., an entity organized under laws of the England and Wales (“ELEQT”), and the shareholders of ELEQT (the “ELEQT Sellers”). On the same date, the parties consummated the transaction, pursuant to which the ELEQT Sellers sold, and the Company purchased, all of ELEQT’s outstanding capital stock, in exchange for 516,667 unregistered shares of the Company’s common stock. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Assets Acquired: Cash $ 85,896 Accounts receivable 61,624 Other receivables 339,268 Property, plant and equipment 6,838 Intangible assets 403,058 Goodwill 25,677,277 Assets acquired $ 26,573,961 Liabilities Assumed: Accounts payable $ 77,999 Other current liabilities 541,279 Liabilities assumed $ 619,278 Net assets acquired $ 25,954,683 Fair value of consideration given: Acquisition date $ 25,575,000 Contingent 379,683 Total fair value of consideration given $ 25,954,683 Robson Dowry Ltd. On November 15, 2014, the Company entered into an Exchange Agreement by and among the Company, Robson Dowry Associates Ltd., an entity organized under the laws of the England and Wales (“Robson Dowry”), and the shareholders of Robson Dowry Associates Ltd. (the “Robson Dowry Sellers”). On the same date, the parties consummated the transaction, pursuant to which the Sellers sold, and the Company purchased, all of Robson Dowry’s outstanding capital stock, in exchange for 25,000 unregistered shares of the Company’s common stock. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Assets Acquired: Accounts receivable $ 95,605 Prepaid expenses 31,318 Property, plant and equipment 8,485 Goodwill 347,934 Assets acquired $ 483,342 Liabilities Assumed: Accounts payable $ 96,704 Other current liabilities 41,638 Liabilities assumed $ 138,342 Net assets acquired $ 345,000 Fair value of consideration given $ 345,000 RocketHub On April 15, 2015, the Company entered into an Agreement and Plan of Merger with EFactor Merger Sub Inc., a New York corporation and wholly owned subsidiary of the Company (“Merger Sub”), RocketHub Inc., a New York corporation (“RocketHub”), the shareholders of RocketHub (the “ RocketHub Sellers”) and a representative of the RocketHub Sellers. Pursuant and subject to the terms and conditions of the merger agreement, Merger Sub was merged with and into RocketHub, with RocketHub surviving as a wholly owned subsidiary of the Company. As consideration for the merger, the RocketHub Sellers received 357,143 shares of common stock, par value $0.001, of the Company. Assets Acquired: Cash $ 169,588 Accounts receivable $ 12,013 Property, plant and equipment 155,128 Other assets 643 Goodwill 1,821,200 Assets acquired $ 2,158,572 Liabilities Assumed: Accounts payable $ 10,196 Funds held in trust 179,090 Other current liabilities 255,000 Other long term liabilities — Liabilities assumed $ 444,286 Net assets acquired $ 1,714,286 Fair value of consideration given $ 1,714,286 Basis of Presentation These acquisitions have been accounted for using the purchase method of accounting. Under the purchase method of accounting, the total purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, including identifiable intangible assets which either arise from a contractual or legal right or are separable from goodwill. The excess of purchase price over the estimated fair value assigned to the net tangible and identifiable intangible assets acquired and liabilities assumed is considered goodwill. The Company’s results of operations included the activities of Member Digital, HT Skills, GroupCard, ELEQT, Robson Dowry, and RocketHub from their respective dates of acquisition. The Company recorded the purchase based on the quoted market price of the stock for the purchase. Purchase Price Allocation In accordance with ASC 805, Business Combinations

Business Division Information a

Business Division Information and Geographical Segments	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Business Division Information and Geographical Segments	Note 7 – Business Division Information and Geographical Segments The Company’s reportable segments are defined by their service or revenue sources. The Company’s reportable divisions are Social Networks, Business Services, and Funding. Social Networks comprises EFactor, GroupCard, Member Digital, and ELEQT. The Business Services division is made up of EQMentor, HT Skills, Robson Dowry, and MCC. The Funding division is specific to the Company’s recent acquisition of RocketHub. The Company measures the performance of its divisions based on their operating income excluding administrative and general expenses. The accounting policies of the operating segments are the same as those described in Note 3 Summary of Significant Accounting Policies The table below sets forth our revenue based on our business segments for the three and six months ended June 30, 2015 and 2014: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Social Networks $ 576,205 $ 40,894 $ 1,061,362 $ 63,903 Business Services 458,565 107,692 977,049 201,228 Funding 30,987 — 30,987 — $ 1,065,757 $ 148,586 $ 2,069,398 $ 265,131 For the three and six months ended June 30, 2015 and 2014, the Company generated revenues in the United States, Europe (excluding the U.K.) and the United Kingdom as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 United States $ 42,037 $ 42,331 $ 53,527 $ 66,777 Europe 536,618 — 963,236 — United Kingdom 487,102 106,255 1,052,635 198,354 $ 1,065,757 $ 148,586 $ 2,069,398 $ 265,131 As of June 30, 2015 and December 31, 2014, the Company has assets in the U.S., Europe and the U.K.: June 30, December 31, 2015 2014 (Unaudited) Total assets in the U.S. $ 3,952,040 $ 2,129,289 Total assets in Europe 13,396,104 13,033,559 Total assets in the U.K. 12,959,079 12,259,732 Total assets $ 30,307,223 $ 27,422,580 As of June 30, 2015 and December 31, 2014, the Company has liabilities in the U.S., Europe and the U.K.: June 30, December 31, 2015 2014 (Unaudited) Total liabilities in the U.S. $ 5,955,043 $ 5,764,898 Total liabilities in Europe 3,464,364 2,204,411 Total liabilities in the U.K. 2,845,243 1,055,653 Total liabilities $ 12,264,650 $ 9,024,962 The following unaudited pro forma consolidated results of operations have been prepared as if the acquisition of HT Skills Ltd, Member Digital Ltd., GroupCard BV, ELEQT Ltd and Robson Dowry Ltd occurred on January 2014: June 30, 2014 Net Revenues $ 677,882 Net (loss) from continuing operations (4,036,059 ) Net (loss) income per share from continuing operations (3.89 ) Weighted average number of shares – Basic and diluted 1,038,779

Related Parties and Related Par

Related Parties and Related Party Transactions	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Related Parties and Related Party Transactions	Note 8 – Related Parties and Related Party Transactions Accounts Payable – Related Party As of June 30, 2015, two of our executive officers, Adriaan Reinders, and Marion Freijsen had unreimbursed expenses, unpaid board fees and salaries of $ 135,999 and $ 85,608, respectively. The remaining balance of the Accounts Payable Related Party of $59,268 represents amounts primarily due to our board of directors for board meeting fees, out of pocket expenses and consulting fees. Notes Payable – Related Parties A summary of activity for notes payable – related parties for the six months ended June 30, 2015 are set forth below: During the six months ended June 30, 2015, the Company assigned related party debt to an unrelated third party amounting to $32,458 and converted $7,300. In addition the Company incurred an additional $50,000 related to a default provision which resulted in the balance of $231,081 as of June 30, 2015.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Note 9 – Stockholders’ Equity On July 14, 2015, the Company filed a Certificate of Amendment (the “Amendment”) with the Secretary of State of the State of Nevada to effect a reverse stock split of its outstanding shares of common stock and preferred stock at a ratio of 1 for 60 (the “Stock Split”), which Amendment became effective on July 17, 2015. Unless otherwise noted, all references herein to the number of common shares, price per common share or weighted average number of common shares outstanding have been adjusted to reflect this reverse stock split on a retroactive basis. Common Stock During the six months ended June 30, 2015, we had the following issuances of common stock: In April 2015, the Company sold to an accredited investor 13,333 common shares and 3,333 warrants for cash for a total consideration of $100,000. That warrants have a strike price of $15.00 per share and a cashless exercise provision for a period of three (3) years from closing. In the event Company shall reach a minimum total market capitalization of $100,000,000 on a major U.S. stock exchange, and maintain such minimum for five (5) consecutive trading days, then the investor shall also receive a grant of 1,667 additional common shares. In April 2015, the Company sold 100,000 shares of its common stock to 5 accredited investors for an aggregate of $750,000. In addition to the common stock the investors received 40,000 three year warrants with a strike price of $15.00. On May 6, 2015, the Company issued 53,333 and 40,422 shares of the Company’s common stock to Adriaan Reinders and Marion Freijsen respectively to convert certain indebtedness aggregating to $703,167 of the Company related party liabilities. In addition to the common stock the investors received 23,439 three year warrants with a strike price of $15.00. In addition, the Company had the following transactions related to common stock: - the Company issued 16,052 shares of common stock for cash proceeds of $133,075. - the Company issued 109,850 shares of common stock to convert $666,100 of convertible debt. - the Company issued 71,850 shares of common stock to convert payables valued at $547,778. - the Company issued 20,033 shares of common stock to convert liabilities valued at $973,325. - the Company issued 184,491 shares of common stock for services with a fair value of $1,370,492. - the Company issued 357,143 shares of common stock related to the acquisition of RocketHub valued at $1,714,286. - the Company issued 1,667 shares of common stock for cash proceeds of $14,060 from the exercise of warrants. - the Company issued 93,756 shares of common stock to convert related party payables valued of $703,167. Stock Options During the six months ended June 30, 2015, the Company recognized $7,946 of stock option expense related to options granted in prior periods. As of June 30, 2015, there are 63,792 options outstanding with a weighted average exercise price of $34.20 and an expected life of one (1) year. Warrants During the six months ended June 30, 2015, the Company issued 127,147 warrants. As of June 30, 2015 there were 127,147 warrants outstanding with an aggregate exercise price of $1,607,203.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	Note 10 – Subsequent Events On July 25, 2015, the Company entered into a bridge financing arrangement with a related party for a convertible note of $120,000. This note is unsecured and carries a twelve percent interest rate due December 31, 2015 and may be converted into shares of the Company’s common stock at a conversion price of $4.80. The Company also issued 150,000 common stock warrants at a strike price of $4.80 per share in connection with this financing. On July 31, 2015, the Company entered into a bridge financing arrangement with Increasive Ventures BV for an original discount convertible note of $1,250,000. This note is unsecured and carries a twelve percent interest rate due December 31, 2015 and may be converted into shares of the Company’s Stock at a conversion price of $4.80. The Company also issued 1,500,000 common stock warrants at a strike price of $4.80 per share in connection with this financing.

Notes Payable and Line of Cre16

Notes Payable and Line of Credit (Tables)	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Schedule of derivative liability	The fair value of the derivative liability at the re-measurement date amounting to $967,002 was credited to additional paid in capital. The derivative liability was valued using the Black-Scholes model using the following assumptions: At issuance date At termination date Market value of stock on measurement date $ 4.80 -135.00 $ 4.80 - 114.00 Risk-free interest rate 0.01% - 0.04 % 0.05 % Dividend yield 0 % 0 % Volatility factor 269% - 655 % 319 % Term 0.07 - 0.16 years 0.25 years
Schedule of activity for notes payable	A summary of activity for Convertible notes payable during the six months ended June 30, 2015 is set forth below: Balance at December 31, 2014 $ 1,312,348 Proceeds from convertible notes 874,014 Payments (6,212 ) Assumption of debt in acquisition 255,000 Assignment of debt from line of credit $ 115,000 Conversion of convertible notes to equity (616,222 ) Debt discount on new convertible notes and shares issued with debt (1,186,250 ) Amortization of debt discount 420,674 Balance at June 30, 2015 1,168,352

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of assumptions used for derivative liabilities	The derivative liabilities were valued using the Black-Scholes model using the following assumptions: At issuance date At termination date Market value of stock on measurement date $ 4.80 - 135.00 $ 4.80 - 114.00 Risk-free interest rate 0.01% - 0.04 % 0.01 - 0.15 % Dividend yield 0 % 0 % Volatility factor 146% - 1,731 % 171 -319 % Term 0.07 – 1.01 years 0.09 - 0.25 years

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Schedule of estimated fair values of the assets acquired and liabilities	The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Assets Acquired: Accounts receivable $ 310,464 Unbilled revenue 100,200 Property, plant and equipment 167,728 Goodwill 10,782,378 Assets acquired $ 11,360,770 Liabilities Assumed: Accounts payable $ 409,602 Short term debt 148,006 Other long term liabilities 147,882 Liabilities assumed $ 705,490 Net assets acquired $ 10,655,280 Fair value of consideration given $ 10,655,280 The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Assets Acquired: Cash $ 8,305 Accounts receivable 5,884 Goodwill 1,002,063 Assets acquired $ 1,016,252 Liabilities Assumed: Accounts payable $ 16,252 Liabilities assumed $ 16,252 Net assets acquired $ 1,000,000 Fair value of consideration given $ 1,000,000 The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Assets Acquired: Cash $ 4,460 Accounts receivable 19,177 Prepaid expenses 12,275 Goodwill 3,155,326 Assets acquired $ 3,191,238 Liabilities Assumed: Accounts payable $ 43,212 Other current liabilities 23,026 Liabilities assumed $ 66,238 Net assets acquired $ 3,125,000 Fair value of consideration given: Acquisition date $ 2,250,000 Contingent 875,000 Total fair value of consideration given $ 3,125,000 The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Assets Acquired: Cash $ 85,896 Accounts receivable 61,624 Other receivables 339,268 Property, plant and equipment 6,838 Intangible assets 403,058 Goodwill 25,677,277 Assets acquired $ 26,573,961 Liabilities Assumed: Accounts payable $ 77,999 Other current liabilities 541,279 Liabilities assumed $ 619,278 Net assets acquired $ 25,954,683 Fair value of consideration given: Acquisition date $ 25,575,000 Contingent 379,683 Total fair value of consideration given $ 25,954,683 The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Assets Acquired: Accounts receivable $ 95,605 Prepaid expenses 31,318 Property, plant and equipment 8,485 Goodwill 347,934 Assets acquired $ 483,342 Liabilities Assumed: Accounts payable $ 96,704 Other current liabilities 41,638 Liabilities assumed $ 138,342 Net assets acquired $ 345,000 Fair value of consideration given $ 345,000 Assets Acquired: Cash $ 169,588 Accounts receivable $ 12,013 Property, plant and equipment 155,128 Other assets 643 Goodwill 1,821,200 Assets acquired $ 2,158,572 Liabilities Assumed: Accounts payable $ 10,196 Funds held in trust 179,090 Other current liabilities 255,000 Other long term liabilities — Liabilities assumed $ 444,286 Net assets acquired $ 1,714,286 Fair value of consideration given $ 1,714,286

Business Division Information19

Business Division Information and Geographical Segments (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Schedule of amount and geographic location of revenues	The table below sets forth our revenue based on our business segments for the three and six months ended June 30, 2015 and 2014: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Social Networks $ 576,205 $ 40,894 $ 1,061,362 $ 63,903 Business Services 458,565 107,692 977,049 201,228 Funding 30,987 — 30,987 — $ 1,065,757 $ 148,586 $ 2,069,398 $ 265,131 For the three and six months ended June 30, 2015 and 2014, the Company generated revenues in the United States, Europe (excluding the U.K.) and the United Kingdom as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 United States $ 42,037 $ 42,331 $ 53,527 $ 66,777 Europe 536,618 — 963,236 — United Kingdom 487,102 106,255 1,052,635 198,354 $ 1,065,757 $ 148,586 $ 2,069,398 $ 265,131
Schedule of business segment information	As of June 30, 2015 and December 31, 2014, the Company has assets in the U.S., Europe and the U.K.: June 30, December 31, 2015 2014 (Unaudited) Total assets in the U.S. $ 3,952,040 $ 2,129,289 Total assets in Europe 13,396,104 13,033,559 Total assets in the U.K. 12,959,079 12,259,732 Total assets $ 30,307,223 $ 27,422,580 As of June 30, 2015 and December 31, 2014, the Company has liabilities in the U.S., Europe and the U.K.: June 30, December 31, 2015 2014 (Unaudited) Total liabilities in the U.S. $ 5,955,043 $ 5,764,898 Total liabilities in Europe 3,464,364 2,204,411 Total liabilities in the U.K. 2,845,243 1,055,653 Total liabilities $ 12,264,650 $ 9,024,962
Schedule of pro forma consolidated results of operations	The following unaudited pro forma consolidated results of operations have been prepared as if the acquisition of HT Skills Ltd, Member Digital Ltd., GroupCard BV, ELEQT Ltd and Robson Dowry Ltd occurred on January 2014: June 30, 2014 Net Revenues $ 677,882 Net (loss) from continuing operations (4,036,059 ) Net (loss) income per share from continuing operations (3.89 ) Weighted average number of shares – Basic and diluted 1,038,779

Organization and Basis of Pre20

Organization and Basis of Presentation (Details Narrative)	Jul. 14, 2015	Jun. 30, 2015shares	Apr. 28, 2015shares	Dec. 31, 2014shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Common stock, shares authorized		300,000,000	175,000,000	300,000,000
Reverse stock split of common stock	Outstanding shares of common stock and preferred stock at a ratio of 1 for 60 (the “Stock Split”).
Stock split conversion ratio	0.0167

Notes Payable and Line of Cre21

Notes Payable and Line of Credit (Details Narrative) - USD ($)

Apr. 08, 2015

Mar. 02, 2015

Jan. 09, 2015

Apr. 15, 2015

Feb. 28, 2015

Feb. 27, 2015

Jan. 26, 2015

Mar. 31, 2015

Jun. 30, 2015

May. 27, 2015

May. 01, 2015

Mar. 27, 2015

Mar. 15, 2015

Dec. 31, 2014

Debt Instrument [Line Items]

Proceeds from convertible notes payable

$ 78,750

Interest rate on debt

8.00%

Lowest closing bid prices

50.00%

58.00%

Par value of common stock

$ 0.001

$ 0.001

Convertible notes issued to an investor group

$ 125,000

Additional convertible notes issued

$ 25,000

Maturity period

1 year

1 year

Interest rate

10.00%

Issuance of warrants

33,333

Strike price of warrants

$ 6

Warrants exercisable period

5 years

Banking advisory fee as common stock issued, Shares

11,667

Banking advisory fee as common stock issued, Value

$ 50,090

Fair value of the derivative liability

$ 967,002

Issuance of common stock for debt

$ 584,218

Issuance of common stock for debt, shares

72,942

Accrued interest

$ 24,632

Loss on conversion of debt

0

Convertible debt, accrued interest converted

$ 66,089

Rocket Hub [Member]

Debt Instrument [Line Items]

Conversion price

$ 1.1751

Aggregate principal amount

$ 255,000

Par value of common stock

$ 0.001

Accrued interest percentage

0.25%

Convertible notes payable

$ 95,000

Magna Equities II, LLC [Member]

Debt Instrument [Line Items]

Proceeds from convertible notes payable

$ 75,000

$ 100,000

$ 175,000

Interest rate on debt

12.00%

Lowest closing bid prices

40.00%

Backend Note [Member]

Debt Instrument [Line Items]

Proceeds from convertible notes payable

$ 78,750

Interest rate on debt

8.00%

Lowest closing bid prices

58.00%

Maturity period

1 year

Magna Equities I LLC [Member]

Debt Instrument [Line Items]

Proceeds from convertible notes payable

$ 200,000

$ 200,000

Lowest closing bid prices

40.00%

40.00%

Aggregate principal amount

$ 200,000

$ 200,000

$ 53,000

Par value of common stock

$ 0.0001

$ 0.0001

Accrued interest percentage

135.00%

Additional purchases

$ 1,000,000

Magna Equities I LLC [Member]

Debt Instrument [Line Items]

Aggregate principal amount

$ 200,000

Magna Equities II Note [Member]

Debt Instrument [Line Items]

Aggregate principal amount

$ 85,000

$ 29,500

$ 15,000

Debt Instrument, Redemption, Period Two [Member] | Rocket Hub [Member]

Debt Instrument [Line Items]

Conversion price

$ 0.70

Convertible notes payable

$ 10,000

Maturity date

May 31, 2016

Debt Instrument, Redemption, Period One [Member] | Rocket Hub [Member]

Debt Instrument [Line Items]

Conversion price

$ .70

Convertible notes payable

$ 150,000

Maturity date

Aug. 31, 2015

Rocket Hub [Member]

Debt Instrument [Line Items]

Maturity date

Apr. 27, 2015

Notes Payable and Line of Cre22

Notes Payable and Line of Credit (Details Narrative 1)	Jan. 09, 2015	Mar. 31, 2015USD ($)	Jan. 26, 2015	Jun. 30, 2013USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Jun. 30, 2015USD ($)shares	Jun. 30, 2014USD ($)	Jun. 30, 2015GBP (£)	Mar. 31, 2015GBP (£)
Line of Credit Facility [Line Items]
Deferred financing fees amortized into interest expense							$ 101,897
Maturity period	1 year		1 year
Term Loan [Member]
Line of Credit Facility [Line Items]
Annual interest					8.00%		8.00%		8.00%
Term loan, maturity date							May 31, 2015
Loans receivable, outstanding					$ 141,759		$ 141,759
Description of interest rate of loans receivable							Annual interest at a rate of 8% over the prevailing Bank of England Base Rate (the Bank of England base rate is currently 0.5% a year, but may change from time to time).
Term Loan [Member] | Robson Dowry [Member]
Line of Credit Facility [Line Items]
Annual interest					4.98%		4.98%		4.98%
Maturity period		4 months
Loans receivable, outstanding		$ 100,000			$ 57,465	$ 100,000	$ 57,465
Description of interest rate of loans receivable		An interest rate of 4.98% above the base rate or 6% (whichever is higher)
Term Loan [Member] | GBP
Line of Credit Facility [Line Items]
Loans receivable, outstanding | £									£ 93,833
Term Loan [Member] | GBP | Robson Dowry [Member]
Line of Credit Facility [Line Items]
Loans receivable, outstanding | £										£ 65,000
Revolving Credit Facility [Member] | Charles Odom [Member]
Line of Credit Facility [Line Items]
Line of credit, initiation date				Jun. 7, 2013
Line of credit, expiration period				24 months
Line of credit, expiration date				Jun. 7, 2015
Line of credit, borrowing capacity				$ 750,000	475,000		475,000
Repayment of line of credit					40,000	$ 75,000
Line of credit, remaining borrowing capacity					360,000		$ 360,000
Shares issued as deferred financing fees, shares | shares							1,979
Deferred financing fees				$ 475,000	$ 475,000		$ 475,000
Deferred financing fees amortized into interest expense							$ 58,227
Annual interest				15.00%	15.00%		15.00%		15.00%
Maturity period				12 months			12 months
Proceeds of capital raise that changes the maturity period to 14 days							$ 10,000,000
Overdraft facility [Member]
Line of Credit Facility [Line Items]
Line of credit, remaining borrowing capacity					$ 60,908		$ 60,908
Overdraft facility [Member] | GBP
Line of Credit Facility [Line Items]
Line of credit, remaining borrowing capacity | £									£ 40,331

Notes Payable and Line of Cre23

Notes Payable and Line of Credit (Details) - Jun. 30, 2015 - $ / shares	Total
Issuance Date [Member]
Dividend yield	0.00%
Issuance Date [Member] | Minimum [Member]
Market value of stock on measurement date	$ 4.80
Risk-free interest rate	0.01%
Volatility factor	146.00%
Term	26 days
Issuance Date [Member] | Maximum [Member]
Market value of stock on measurement date	$ 135
Risk-free interest rate	0.04%
Volatility factor	1731.00%
Term	1 year 4 days
Termination Date [Member]
Dividend yield	0.00%
Termination Date [Member] | Minimum [Member]
Market value of stock on measurement date	$ 4.80
Risk-free interest rate	0.01%
Volatility factor	171.00%
Term	1 month 2 days
Termination Date [Member] | Maximum [Member]
Market value of stock on measurement date	$ 114
Risk-free interest rate	0.15%
Volatility factor	319.00%
Term	3 months
Convertible Promissory Notes [Member] | Issuance Date [Member]
Dividend yield	0.00%
Convertible Promissory Notes [Member] | Issuance Date [Member] | Minimum [Member]
Market value of stock on measurement date	$ 4.80
Risk-free interest rate	0.01%
Volatility factor	269.00%
Term	26 days
Convertible Promissory Notes [Member] | Issuance Date [Member] | Maximum [Member]
Market value of stock on measurement date	$ 135
Risk-free interest rate	0.04%
Volatility factor	655.00%
Term	1 month 28 days
Convertible Promissory Notes [Member] | Termination Date [Member]
Risk-free interest rate	0.05%
Dividend yield	0.00%
Volatility factor	319.00%
Term	3 months
Convertible Promissory Notes [Member] | Termination Date [Member] | Minimum [Member]
Market value of stock on measurement date	$ 4.80
Convertible Promissory Notes [Member] | Termination Date [Member] | Maximum [Member]
Market value of stock on measurement date	$ 114

Notes Payable and Line of Cre24

Notes Payable and Line of Credit (Details 1) - USD ($)	1 Months Ended	6 Months Ended
	Jan. 26, 2015	Jun. 30, 2015	Jun. 30, 2014
Debt Instrument [Line Items]
Proceeds from convertible notes	$ 78,750
Amortization of debt discount		$ 420,674	$ 1,331,004
Notes Payable [Member]
Debt Instrument [Line Items]
Balance, beginning	$ 1,312,348	1,312,348
Proceeds from convertible notes		874,014
Payments		(6,212)
Assumption of debt in acquisition		255,000
Assignment of debt from line of credit		115,000
Conversion of convertible notes to equity		(616,222)
Debt discount on new convertible notes and shares issued with debt		(1,186,250)
Amortization of debt discount		420,674
Balance, end		$ 1,168,352

Other Liabilities (Details Narr

Other Liabilities (Details Narrative) - Jun. 30, 2015	USD ($)	GBP (£)
MCC Obligaton [Member]
Monthly fixed payment to trustee	$ 2,265
Maturity of payment	Feb. 28, 2019	Feb. 28, 2019
MCC Obligaton [Member] | GBP
Monthly fixed payment to trustee | £		£ 1,500
Justice Obligaton [Member]
Payroll taxes and other withholdings	$ 103,333
Outstanding obligation balance	$ 633,022
Obligation accrues interest	35.00%	35.00%

Derivative Instruments (Details

Derivative Instruments (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liabilities	$ 1,510,187		$ 1,510,187
Debt discount on derivative liability	1,186,250		1,186,250
Derivative expense			445,815
Fair value of the derivative liability	4,241,206		4,241,206
Loss on change in value of derivative liability	326,237	$ 16,250	445,815	$ 576,143
Amortization of debt discount			324,175
Debt discount net	$ 862,075		$ 862,075

Derivative Instruments (Detai27

Derivative Instruments (Details) - Jun. 30, 2015 - Longterm Debt Type Domain - $ / shares	Total
Issuance Date [Member]
Dividend yield	0.00%
Issuance Date [Member] | Minimum [Member]
Market value of stock on measurement date	$ 4.80
Risk-free interest rate	0.01%
Volatility factor	146.00%
Term	26 days
Issuance Date [Member] | Maximum [Member]
Market value of stock on measurement date	$ 135
Risk-free interest rate	0.04%
Volatility factor	1731.00%
Term	1 year 4 days
Termination Date [Member]
Dividend yield	0.00%
Termination Date [Member] | Minimum [Member]
Market value of stock on measurement date	$ 4.80
Risk-free interest rate	0.01%
Volatility factor	171.00%
Term	1 month 2 days
Termination Date [Member] | Maximum [Member]
Market value of stock on measurement date	$ 114
Risk-free interest rate	0.15%
Volatility factor	319.00%
Term	3 months

Acquisitions (Details Narrative

Acquisitions (Details Narrative)	Apr. 15, 2015USD ($)$ / sharesshares	Nov. 15, 2014shares	Oct. 01, 2014shares	Jul. 07, 2014USD ($)N$ / sharesshares	Jul. 01, 2014shares	Jun. 30, 2015$ / sharesshares	Dec. 31, 2014$ / shares
Business Acquisition [Line Items]
Common stock, par value (in dollars per share) | $ / shares						$ 0.001	$ 0.001
Ht Skills Ltd [Member]
Business Acquisition [Line Items]
Number of shares issued in business acquisition					221,985
Member Digital Ltd [Member]
Business Acquisition [Line Items]
Number of shares issued in business acquisition					20,833
ELEQT Ltd [Member]
Business Acquisition [Line Items]
Number of shares issued in business acquisition			516,667
Group Card [Member]
Business Acquisition [Line Items]
Number of shares issued in business acquisition				46,875		18,229
Loan to acquiree, face amount | $				$ 400,000
Number of members added during a semi-annual period | N				20,000
Business Acquisition Equity Interests Issued or Issuable Par Value | $ / shares				$ 0.80
Group Card [Member] | Maximum [Member]
Business Acquisition [Line Items]
Shares issued in business acquisition, amount | $				$ 25
Rocket Hub [Member]
Business Acquisition [Line Items]
Number of shares issued in business acquisition	357,143
Common stock, par value (in dollars per share) | $ / shares	$ 0.001
Purchase price (in dollars per share) | $ / shares	$ 42
Aggregrate purchase price | $	$ 15,000,000
Robson Dowry [Member]
Business Acquisition [Line Items]
Number of shares issued in business acquisition		25,000

Acquisitions (Details)

Acquisitions (Details) - USD ($)	Apr. 15, 2015	Nov. 15, 2014	Oct. 01, 2014	Jul. 07, 2014	Jul. 01, 2014	Jun. 30, 2015	Dec. 31, 2014
Assets Acquired:
Goodwill						$ 27,737,616	$ 25,544,581
Liabilities Assumed:
Contingent consideration						$ 310,937	$ 310,937
Ht Skills Ltd [Member]
Assets Acquired:
Accounts receivable					$ 310,464
Unbilled revenue					100,200
Property, plant and equipment					167,728
Goodwill					10,782,378
Assets acquired					11,360,770
Liabilities Assumed:
Accounts payable					409,602
Short term debt					148,006
Other long term liabilities					147,882
Liabilities assumed					705,490
Net assets acquired					10,655,280
Fair value of consideration					10,655,280
Member Digital Ltd [Member]
Assets Acquired:
Cash					8,305
Accounts receivable					5,884
Goodwill					1,002,063
Assets acquired					1,016,252
Liabilities Assumed:
Accounts payable					16,252
Liabilities assumed					16,252
Net assets acquired					1,000,000
Fair value of consideration					$ 1,000,000
Group Card [Member]
Assets Acquired:
Cash				$ 4,460
Accounts receivable				19,177
Prepaid Expenses				12,275
Goodwill				3,155,326
Assets acquired				3,191,238
Liabilities Assumed:
Accounts payable				43,212
Other current liabilities				23,026
Liabilities assumed				66,238
Net assets acquired				3,125,000
Acquisition date				2,250,000
Contingent consideration				875,000
Fair value of consideration				$ 3,125,000
ELEQT Ltd [Member]
Assets Acquired:
Cash			$ 85,896
Accounts receivable			61,624
Other receivables			339,268
Property, plant and equipment			6,838
Intangible assets			403,058
Goodwill			25,677,277
Assets acquired			26,573,961
Liabilities Assumed:
Accounts payable			77,999
Other current liabilities			541,279
Liabilities assumed			619,278
Net assets acquired			25,954,683
Acquisition date			25,575,000
Contingent consideration			379,683
Fair value of consideration			$ 25,954,683
Robson Dowry [Member]
Assets Acquired:
Accounts receivable		$ 95,605
Prepaid Expenses		31,318
Property, plant and equipment		8,485
Goodwill		347,934
Assets acquired		483,342
Liabilities Assumed:
Accounts payable		96,704
Other current liabilities		41,638
Liabilities assumed		138,342
Net assets acquired		345,000
Fair value of consideration		$ 345,000
Rocket Hub [Member]
Assets Acquired:
Cash	$ 169,588
Accounts receivable	12,013
Property, plant and equipment	155,128
Other Assets	643
Goodwill	1,821,200
Assets acquired	2,158,572
Liabilities Assumed:
Accounts payable	10,196
Funds held in trust	179,090
Other current liabilities	$ 255,000
Other long term liabilities
Liabilities assumed	$ 444,286
Net assets acquired	1,714,286
Fair value of consideration	$ 1,714,286

Business Division Information30

Business Division Information and Geographical Segments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues	$ 1,065,757	$ 148,586	$ 2,069,398	$ 265,131
Social Networks [Member]
Revenues	576,205	40,894	1,061,362	63,903
Business Services [Member]
Revenues	458,565	$ 107,692	977,049	$ 201,228
Funding [Member]
Revenues	$ 30,987		$ 30,987

Business Division Information31

Business Division Information and Geographical Segments (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues	$ 1,065,757	$ 148,586	$ 2,069,398	$ 265,131
Europe [Member]
Revenues	536,618		963,236
United Kingdom [Member]
Revenues	487,102	$ 106,255	1,052,635	$ 198,354
United States [Member]
Revenues	$ 42,037	$ 42,331	$ 53,527	$ 66,777

Business Division Information32

Business Division Information and Geographical Segments (Details 2) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Total assets	$ 30,307,223	$ 27,422,580
Europe [Member]
Total assets	13,396,104	13,033,559
United Kingdom [Member]
Total assets	12,959,079	12,259,732
United States [Member]
Total assets	$ 3,952,040	$ 2,129,289

Business Division Information33

Business Division Information and Geographical Segments (Details 3) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Liabilities	$ 12,264,650	$ 9,024,962
Europe [Member]
Liabilities	3,464,364	2,204,411
United Kingdom [Member]
Liabilities	2,845,243	1,055,653
United States [Member]
Liabilities	$ 5,955,043	$ 5,764,898

Business Division Information34

Business Division Information and Geographical Segments (Details 4) - 6 months ended Jun. 30, 2014 - USD ($)	Total
Segment Reporting [Abstract]
Net Revenues	$ 677,882
Net (loss) income from continuing operations	$ (4,036,059)
Net (loss) income per share from continuing operations	$ (3.89)
Weighted average number of shares - Basic and diluted	1,038,779

Related Parties and Related P35

Related Parties and Related Party Transactions (Details Narrative) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Accounts payable - related party	$ 280,875	$ 748,120
Marion Freijsen [Member]
Related Party Transaction [Line Items]
Accounts payable - related party	85,608
Adriaan Reinders [Member]
Related Party Transaction [Line Items]
Accounts payable - related party	135,999
Director [Member]
Related Party Transaction [Line Items]
Accounts payable - related party	$ 59,268

Related Parties and Related P36

Related Parties and Related Party Transactions (Details) - Jun. 30, 2015 - USD ($)	Total
Related Party Transaction [Line Items]
Related party debt	$ 231,081
Additional default provision	50,000
Unrelated Third Party [Member]
Related Party Transaction [Line Items]
Related party debt	32,458
Converted value	$ 7,300

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative)	Jul. 14, 2015	May. 06, 2015USD ($)$ / sharesshares	Apr. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)	Jan. 09, 2015$ / shares
Reverse stock split of common stock	Outstanding shares of common stock and preferred stock at a ratio of 1 for 60 (the “Stock Split”).
Stock split conversion ratio	0.0167
Issuance of common stock for cash | $		$ 703,167		$ 133,075
Issuance of common stock for cash, shares				16,052
Issuance of common stock for convertible debt | $				$ 584,218
Issuance of common stock for convertible debt, shares				72,942
Issuance of common stock for services | $				$ 1,370,492
Issuance of common stock for services, shares				184,491
Stock option expense | $				$ 7,946	$ 67,869
Issuance of common stock related to the acquisition | $				$ 1,714,286
Issuance of common stock related to the acquisition, shares				357,143
Issuance of common stock for converted related party | $				$ 703,167
Issuance of common stock for converted related party, shares				93,756
Issuance of common stock for convert liabilities | $				$ 973,325
Issuance of common stock for convert liabilities, shares				20,033
Issuance of common stock for convert payables | $				$ 547,778
Issuance of common stock for convert payables, shares				71,850
Warrants strike price (in dollars per share) | $ / shares						$ 6
Stock Option [Member]
Stock option expense | $				$ 7,946
Number of stock outstanding				63,792
weighted average exercise price of stock options (in dollars per share) | $ / shares				$ 34.20
Expected life of stock options				1 year
Accredited Investor [Member]
Issuance of common stock for cash | $			$ 100,000
Issuance of common stock for cash, shares			13,333
Additional shares issued, shares			1,667
Minimum market capitalization | $			$ 100,000,000
Adriaan Reinders [Member]
Issuance of common stock for cash, shares		53,333
Marion Freijsen [Member]
Issuance of common stock for cash, shares		40,422
Five Accredited Investor [Member]
Issuance of common stock for cash | $			$ 750,000
Issuance of common stock for cash, shares			100,000
Convertible Debt [Member]
Issuance of common stock for convertible debt | $				$ 666,100
Issuance of common stock for convertible debt, shares				109,850
Warrant [Member]
Issuance of common stock for cash | $				$ 14,060
Issuance of common stock for cash, shares		23,439		1,667
Number of stock outstanding				127,147
Warrants aggregate exercise price | $				$ 1,607,203
Warrants strike price (in dollars per share) | $ / shares		$ 15
Warrants exercise period		3 years
Warrant [Member] | Accredited Investor [Member]
Issuance of common stock for cash, shares			3,333
Warrants strike price (in dollars per share) | $ / shares			$ 15
Warrants exercise period			3 years
Warrant [Member] | Five Accredited Investor [Member]
Issuance of common stock for cash, shares			40,000
Warrants strike price (in dollars per share) | $ / shares			$ 15
Warrants exercise period			3 years

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	Jul. 31, 2015	Jul. 25, 2015	Jun. 30, 2015	Jan. 09, 2015
Subsequent Event [Line Items]
Convertible discount			$ 862,075
Common stock warrants strike price (in dollars per share)				$ 6
12% Convertible Note Due 2015-12-31 [Member] | Related Party [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Convertible note amount		$ 120,000
Conversion price (in dollars per share)		$ 4.80
Convertible description		Common stock warrants
Common stock warrants issued		$ 150,000
Common stock warrants strike price (in dollars per share)		$ 4.80
12% Convertible Note Due 2015-12-31 [Member] | Increasive Ventures BV [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Convertible discount	$ 1,250,000
Conversion price (in dollars per share)	$ 4.80
Convertible description	Common stock warrants
Common stock warrants issued	$ 1,500,000
Common stock warrants strike price (in dollars per share)	$ 4.80