Max Sound (MAXD) 10-Q 12 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 25, 2016
Document And Entity Information
Entity Registrant Name	Max Sound Corporation
Entity Central Index Key	1,353,499
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	Yes
Is Entity a Voluntary Filer?	Yes
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		835,052,691
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets
Cash	$ 2,223	$ 211,064
Prepaid expenses	65,908	82,681
Debt offering costs - net	10,436	36,699
Total Current Assets	78,567	330,444
Property and equipment, net	96,862	130,961
Other Assets
Security deposit	413	413
Intangible assets	1,036,231	1,092,621
Total Other Assets	1,036,644	1,093,034
Total Assets	1,212,073	1,554,439
Current Liabilities
Accounts payable	1,788,733	1,393,074
Accrued expenses	240,495	257,457
Accrued expenses - related party	473	473
Note Payable	60,000
Derivative liabilities	5,253,141	3,684,184
Convertible note payable, net of debt discount of $2,056,408 and $2,658,213 respectively	2,717,468	1,976,639
Total Current Liabilities	$ 10,060,310	$ 7,311,827
Preferred stock No shares issued and outstanding
Series, A Convertible Preferred stock, $0.00001 par value; 10,000,000 shares authorized, 5,000,000 and 0 shares issued and outstanding, respectively	$ 50	$ 50
Common stock, $0.00001 par value; 1,650,000,000 shares authorized, 835,052,691 and 422,310,693 shares issued and outstanding, respectively	8,349	4,222
Additional paid-in capital	62,286,027	58,052,946
Treasury stock	(519,575)	(519,575)
Accumulated deficit	(70,623,088)	(63,295,031)
Total Stockholders' Deficit	(8,848,237)	(5,757,388)
Total Liabilities and Stockholders' Deficit	$ 1,212,073	$ 1,554,439

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Common Stock
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	1,650,000,000	1,650,000,000
Common stock, shares issued	835,052,691	422,310,693
Common stock, shares outstanding	835,052,691	422,310,693
Preferred Stock
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series A Preferred Stock
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	5,000,000	0
Preferred stock, shares outstanding	0	0

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Revenue
Operating Expenses
General and administrative	197,381	829,361	741,905	1,616,664
Consulting	70,142	174,712	139,832	244,549
Professional fees	119,833	219,653	229,753	337,277
Website development	7,000	10,000	28,000	15,000
Compensation	198,000	228,000	410,000	469,300
Total Operating Expenses	592,356	1,461,726	1,549,490	2,682,790
Loss from Operations	(592,356)	(1,461,726)	(1,549,490)	(2,682,790)
Other Income / (Expense)
Other income	1,315	20,710	36,529	20,710
Loss on inventory write off				(29,275)
Interest expense	(74,684)	(91,893)	(164,145)	(148,336)
Derivative Expense	(424,320)	(866,758)	(2,505,412)	(1,034,281)
Amortization of debt offering costs	(23,532)		(58,000)	(41,929)
Loss on debt settlement	(215,161)	(125,953)	(316,270)	(125,953)
Amortization of debt discount	(1,508,607)	(1,001,924)	(2,847,565)	(1,932,848)
Change in fair value of embedded derivative liability	2,550,645	696,219	76,297	1,169,954
Total Other Income / (Expense)	305,656	(1,369,599)	(5,778,566)	(2,121,958)
Provision for Income Taxes
Net Income (Loss)	$ (286,700)	$ (2,831,325)	$ (7,328,056)	$ (4,804,748)
Net Loss Per Share - Diluted	$ 0	$ (0.01)	$ (0.01)	$ (0.01)
Weighted average number of shares outstanding during the year Diluted	835,352,459	305,550,413	710,704,959	335,473,464

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash Flows From Operating Activities:
Net Loss	$ (7,328,056)	$ (4,804,748)
Loss on debt extinguishment	(35,200)
Adjustments to reconcile net loss to net cash used in operations
Depreciation/Amortization	40,498	38,855
Stock and stock options issued for services	105,894	212,925
Warrants issued for services	91,556
Loss on debt conversion settled through the issuance of stock		105,246
Amortization of intangible assets	56,390	527,179
Amortization of debt offering costs	58,000	41,929
Amortization of debt discount	2,847,565	1,932,848
Change in fair value of derivative liability	(76,297)	(1,169,954)
Derivative Expense	2,505,412	1,034,281
Changes in operating assets and liabilities:
(Increase)/Decrease in inventory		29,275
(Increase)/Decrease in prepaid expenses	16,773	2,490
Increase in accounts payable	391,285	702,735
Increase in accrued expenses	165,286	161,678
Net Cash Used In Operating Activities	(1,160,894)	(1,185,261)
Cash Flows From Investing Activities:
Purchase of property equipment	(6,398)	(8,009)
Net Cash Used In Investing Activities	(6,398)	(8,009)
Cash Flows From Financing Activities:
Proceeds from stockholder loans / lines of credit		144,024
Repayment from stockholder loans / lines of credit		(368,000)
Repayment of convertible note	1,197,096	231,000
Proceeds from issuance of convertible note, less offering costs and OID costs paid	2,195,547	1,687,816
Repayment of note payable	(40,000)
Cash paid for interest		(69,102)
Net Cash Provided by Financing Activities	$ 958,451	$ 1,163,738
Net Decrease in Cash	(208,841)	(29,532)
Cash at Beginning of period	$ 211,064	$ 35,747
Cash at End of period	2,223	6,215
Supplemental disclosure of cash flow information:
Cash paid for interest
Cash paid for taxes
Supplemental disclosure of non-cash investing and financing activities:
Shares issued in conversion of convertible debt and accrued interest	1,000,029	3,520,886
Reclass of convertible debt to demand note	$ 100,000

Summary of Significant Accounti

Summary of Significant Accounting Policies and Organization	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Summary of Significant Accounting Policies and Organization	NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION (A) Organization and Basis of Presentation Max Sound Corporation (the "Company") was incorporated in Delaware on December 9, 2005, under the name 43010, Inc. The Company business operations are focused primarily on developing and launching audio technology software. Effective March 1, 2011, the Company filed with the State of Delaware a Certificate of Amendment of Certificate of Incorporation changing our name from So Act Network, Inc. to Max Sound Corporation. The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in The United States of America and the rules and regulations of the Securities and Exchange Commission applicable to interim financial information and with instructions to Form 10Q and Articles of Regulations S-X.. Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations. It is management's opinion, however, that all material adjustments (consisting of normal and recurring adjustments) have been made which are necessary for a fair financial statements presentation. The results for the interim period are not necessarily indicative of the results to be expected for the year. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 30, 2015. (B) Use of Estimates In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates. (C) Cash and Cash Equivalents For purposes of the cash flow statements, the Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. As of June 30, 2016 and December 31, 2015, the Company had no cash equivalents. (D) Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is provided using the straight-line method over the estimated useful life of three to five years. (E) Research and Development The Company has adopted the provis ions of FASB Accounting Standards Codification No. 350, Intangibles - Goodwill & Other . (F) Concentration of Credit Risk The Company at times has cash in banks in excess of FDIC insurance limits. The Company had $0 in excess of FDIC insurance limits as of June 30, 2016 and 2015. (G) Revenue Recognition The Company recognized revenue on arrangements in accordance with FASB Codification Topic 605, “Revenue Recognition” (“ASC Topic 605”). Under ASC Topic 605, revenue is recognized only when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service is performed and collectability of the resulting receivable is reasonably assured. We had revenues of $0, $0, $0 and $0 for the three and six months ended June 30, 2016 and 2015, respectively. (H) Advertising Costs Advertising costs are expensed as incurred and include the costs of public relations activities. These costs are included in consulting and general and administrative expenses and totaled $1,942 and $0 for the six months ended June 30, 2016 and 2015, respectively. (I) Inventories Inventory consists primarily of finished goods and is valued at the lower of cost or market. Cost is determined using the weighted average method and average cost is recomputed after each inventory purchase or sale. Inventory is periodically reviewed in order to identify obsolete or damaged inventory and impaired values. For the year ended December 31, 2015, the inventory was impaired and valued at $0. The Company had no inventory as of June 30, 2016. (J) Identifiable Intangible Assets ASC 350 prescribes a two-step process for impairment testing of goodwill and intangibles with indefinite lives, which is performed annually, as well as when an event triggering impairment may have occurred. ASC 350 also allows preparers to qualitatively assess goodwill impairment through a screening process which would permit companies to forgo Step 1 of their annual goodwill impairment process. This qualitative screening process will hereinafter be referred to as "Step 0". Goodwill and intangible assets deemed to have an indefinite life are tested for impairment on an annual basis, or earlier when events or changes in circumstances suggest the carrying amount may not be fully recoverable. The Company has elected to perform its annual assessment on $16,796,237 of intangible assets. For the year ended December 31, 2015, $15,703,616 impairment loss has been recorded due to a change in business model, this being significantly impacted by the impairment of Liquid Spins assets, as digital music sales are no longer relevant in today’s market for the following assets: Cost , net Impairment Loss Amortization for six months ended June 30, 2016 Balance as of June 30, 2016 Trademarks $ 7,500,000 $ (6,630,419 ) (43,479 ) 826,102 Distribution rights 7,372,561 (7,372,561 ) — — Licensing Rights 1,923,401 (1,700,393 ) (12,909 ) 210,099 Other 275 (243 ) (2 ) 30 $ 16,796,237 (15,703,616 ) (56,390 ) 1,036,231 As of June 30, 2016 and December 31, 2015, $826,102 and $869,581, respectively, of costs related to registering a trademark and acquiring technology rights [audio technology known as Max Audio Technology (MAXD) have been capitalized. It has been determined that the trademark and technology rights have an indefinite useful life and are not subject to amortization. However, the trademark and technology rights will be reviewed for impairment annually or more frequently if impairment indicators arise. As a result of this review, the Company recorded an impairment loss of $6,630,419 that is recorded as impairment loss on intangible asset for the year ended December 31, 2015. ASC 350 prescribes a two-step process for impairment testing of goodwill and intangibles with indefinite lives, which is performed annually, as well as when an event triggering impairment may have occurred. ASC 350 also allows preparers to qualitatively assess goodwill impairment through a screening process which would permit companies to forgo Step 1 of their annual goodwill impairment process. This qualitative screening process will hereinafter be referred to as "Step 0". Goodwill and intangible assets deemed to have an indefinite life are tested for impairment on an annual basis, or earlier when events or changes in circumstances suggest the carrying amount may not be fully recoverable. The Company has elected to perform its annual assessment on $16,796,237 of intangible assets. For the year ended December 31, 2015, $15,703,616 impairment loss has been recorded due to a change in business model, this being significantly impacted by the impairment of Liquid Spins assets, as digital music sales are no longer relevant in today’s market for the following assets: Net Cost Impairment Loss Balance as of June 30, 2016 Trademarks $ 7,500,000 $ (6,630,419 ) 869,581 Distribution rights 7,372,561 (7,372,561 ) — Licensing Rights 1,923,401 (1,700,393 ) 223,008 Other 275 (243 ) 32 $ 16,796,237 (15,703,616 ) 1,036,231 As of June 30, 2016 and December 31, 2015, $826,102 and $869,581, respectively, of costs related to registering a trademark and acquiring technology rights [audio technology known as Max Audio Technology (MAXD)] have been capitalized. It has been determined that the trademark and technology rights have an indefinite useful life and are not subject to amortization. However, the trademark and technology rights will be reviewed for impairment annually or more frequently if impairment indicators arise. As a result of this review, the Company recorded an impairment loss of $6,630,419 that is recorded as impairment loss on intangible asset for the year ended December 31, 2015. On November 15, 2012, the Company acquired the rights to assets and audio technology known as Liquid Spins, Inc. through a share exchange, whereby the Company issued 24,752,475 shares of common stock for their rights in Liquid Spins technology. As of June 30, 2016 and December 31, 2015, $0 and $0, respectively, of costs related to this intangible remain capitalized. The technology was placed in service on August 23, 2013 with a useful life of 10 years. During 2015, the Company the reviewed the intangible asset for impairment and determined that certain items had been impaired due to obsolescence. As a result of this review, the Company recorded an impairment loss of $7,372,562 that is recorded as impairment loss on intangible asset. On May 19, 2014, the Company entered into an agreement with VSL Communications to acquire the rights to intellectual property titled “Optimized Data Transmission System and Method” (“ODT”) through a cash payment of $500,000 in addition to a share issuance, whereby the Company issued 10,000,000 shares of common stock, valued at $1,000,000 ($0.10/share). In exchange, the Company received a perpetual, exclusive, worldwide license to the ODT technology for all fields of use. In addition, the Company issued 1,000,000 shares of common stock, valued at $120,000 ($0.12/share), as compensation for the introduction and identification of a seller based on the agreement dated April 10, 2014. As of June 30, 2016and December 31, 2015, $178,438 and $187,830, respectively, of costs related to the “ODT” intangible asset remains capitalized. The technology will be reviewed for impairment annually or more frequently if impairment indicators arise. As a result of this review, the Company recorded an impairment loss of $1,432,170 that is recorded as impairment loss on intangible asset for the year ended December 31, 2015 In connection with this agreement, the Company is obligated to make an additional five (5) payments totaling $1,000,000 to be made every 30 days, with the thirty (30) day periods to be waived if fund raising occurs on an anticipated faster time line. The payments of additional cash are contingent on the following funding criteria: ● The Company shall pay set increments of cash based on a percentage of gross funds received through funds raised. ● The Company shall pay 20% of such monies as soon as they are received. In connection with funds raised through June 30, 2016, the Company recorded a liability and expensed $1,096,510 as royalty cost, related to the 20% fee, as of June 30, 2016 $30,000, has been paid. The remaining liability as of June 30, 2016, is $1,060,845 and is included in accounts payable. The Company shall act as the exclusive agent to facilitate and negotiate any opportunities on behalf of ODT to Companies, Organizations and other qualified entities. Upon any closing, ODT shall receive 50% of gross dollars and the Company shall receive the other 50% at the time of a completion of any transaction opportunity, including legal settlements after subtracting applicable contingent legal fees. The term of the agreement is for the life of the acquired intellectual property. As a result of this review, the Company recorded an impairment loss of $6,630,419 on intangible asset during the year ended December 31, 2016. On August 11, 2014, the Company and VSL simultaneously filed trade secret and patent infringement actions against Google, Inc. and its subsidiaries, YouTube, LLC and On2 Technologies, Inc., relating to proprietary and patented technology owned by Vedanti Systems Limited, a subsidiary of VSL. The patent infringement complaint was brought in U.S. District Court for the District of Delaware and the trade secret suit was filed in Superior Court of California, County of Santa Clara. The lawsuits contend that, in 2010, while Google was in discussions with Vedanti about the possibility of acquiring Vedanti's patented digital video streaming techniques and other proprietary methods, Google gained access to and received technical guidance regarding Vedanti’s proprietary codec, a computer program capable of encoding and decoding a digital data stream or signal. The complaints allege that soon after the two companies initiated negotiations, Google began implementing Vedanti's technology into its own WebM/VP8 video codec without informing Vedanti, and without compensating Vedanti for its use. Plaintiffs are seeking a permanent injunction against Google, compensatory damages, as well as treble damages. As exclusive agent to VSL to enforce all rights with respect to the subject technology, the Company has hired Grant &Eisenhofer, PA to represent the Company and VSL in the suits. On November 24, 2015 the District Court entered an order granting the Google defendants’ motion to dismiss. The Company timely filed its notice of appeal with the appeals court on February 22, 2016. The two issues on appeal are, (i) whether the district court erred by granting the Google defendants’ motion to dismiss the Company’s lawsuit on the ground that the Company lacked standing to sue the Google defendants for infringement of the 339 patent, and (ii) whether the district court erred by denying the Company’s motion for leave to amend the complaint and add as a party VSL, a former licensee of the 339 patent to cure any defect in prudential standing to the extent VSL is a necessary party. These cases will be vigorously prosecuted and the Company believes it has a good likelihood of success. On May 22, 2014, the Company entered into a five (5) year agreement to acquire the rights to intellectual property titled “Engineered Architecture” (“EA Technology”) through a cash payment of $50,000 in addition to a share issuance, whereby the Company issued 4,000,000 shares of common stock, valued at $394,000 ($0.0985/share). In exchange, the Company received for the term of the agreement, the exclusive worldwide right to use the EA Technology. As of June 30, 2016 and December 31, 2015, $31,660 and $35,178, respectively of costs related to this intangible remains capitalized. The technology will be reviewed for impairment annually or more frequently if impairment indicators arise. As a result of this review, the Company recorded an impairment loss of $268,223 on intangible asset for the year ended December 31, 2015. In connection with this agreement, the Company is obligated to make an additional five (5) payments totaling $500,000 to be made every 30 days, with the thirty (30) day periods to be waived if fund raising occurs on an anticipated faster time line. The payments of additional cash are contingent on the following funding criteria: ● The Company shall pay set increments of cash based on a percentage of gross funds received through funds raised. ● The Company shall pay 10% of such monies as soon as they are received. In connection with funds raised through June 30, 2016, the Company recorded a liability and expensed $548,255 as royalty cost, related to the 10% fee, as of June 30 , 2016, $40,000 has been paid. The remaining liability as of June 30, 2016, is $515,423 and is included in accounts payable. The Company shall act as the exclusive agent to facilitate and negotiate any opportunities on behalf of EA Technology to Companies, Organizations and other qualified entities. Upon any closing, EA shall receive 50% of gross dollars and the Company shall receive the other 50% at the time of a completion of any transaction opportunity, including legal settlements after subtracting applicable contingent legal fees. In the event the Company sublicenses EA to other entities, profits shall be split evenly 50%/50%. (K) Impairment of Long-Lived Assets and Intangible Assets with Definite Life The Company accounts for its long-lived assets in accordance with ASC Topic 360-10-05, “Accounting for the Impairment or Disposal of Long-Lived Assets.” ASC Topic 360-10-05 requires that long-lived assets, such as technology rights, be reviewed for impairment annually, or whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposable value. The Company recorded $0, $0 and $15,703,617 in impairment of the intangible asset for the three and six months ended June 30, 2016 and the year ended December 31, 2015, respectively (See Note 1J). (L) Loss Per Share In accordance with accounting guidance now codified as FASB ASC Topic 260, “Earnings per Share,” The computation of basic and diluted loss per share for the years ended June 30, 2016 and 2015 excludes the common stock equivalents of the following potentially dilutive securities because their inclusion would be anti-dilutive: June 30, 2016 June 30, 2015 Stock Warrants (Exercise price - $0.25 - $.52/share) 21,070,690 — Stock Options (Exercise price - $0.10 - $.50/share) 2,866,652 — Convertible Debt (Exercise price - $0.07 - $.0817/share) 1,700,859,726 134,002,173 Series A Convertible Preferred Shares ($0.0/share) 125,000,000 125,000,000 Total 1,849,797,068 259,002,173 (M) Income Taxes The Company accounts for income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25”) Income Taxes. Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company's federal income tax returns are no longer subject to examination by the IRS for the years prior to 2011, and the related state income tax returns are no longer subject to examination by state authorities for the years prior to 2010. (N) Business Segments The Company operates in one segment and therefore segment information is not presented. (N) Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Interest–Imputation of Interest (Subtopic 835-30) (“ASU 2015-03”), which changes the presentation of debt issuance costs in financial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. It is effective for annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The new guidance will be applied retrospectively to each prior period presented. The Company is currently in the process of evaluating the impact of adoption of ASU 2015-03 on its balance sheets. All other newly issued accounting pronouncements but not yet effective have been deemed either immaterial or not applicable. (P) Fair Value of Financial Instruments The carrying amounts on the Company’s financial instruments including intangible assets, accounts payable, derivative liability, convertible note payable, and note payable, approximate fair value due to the relatively short period to maturity for these instruments. We adopted accounting guidance for financial and non-financial assets and liabilities (ASC 820). The adoption did not have a material impact on our results of operations, financial position or liquidity. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use. The following are the major categories of liabilities measured at fair value on a recurring basis: as of June 30, 2016 and December 31, 2015, using quoted prices in active markets for identical liabilities (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3): June 30, 2016 December 31, 2015 Fair Value Measurement Using Fair Value Measurement Using Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative Liabilities — 5,253,141 — 5,253,141 — 3,684,184 — 3,684,184 Intangible Assets — 1,036,230 — 1,036,230 — 1,092,621 — 1,092,621 (Q) Stock-Based Compensation In December 2004, the FASB issued FASB Accounting Standards Codification No. 718, Compensation - Stock Compensation. Under FASB Accounting Standards Codification No. 718, companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to provide services. Share-based compensation arrangements include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. As such, compensation cost is measured on the date of grant at their fair value. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. The Company applies this statement prospectively. Equity instruments (“instruments”) issued to other than employees are recorded on the basis of the fair value of the instruments, as required by FASB Accounting Standards Codification No. 718. FASB Accounting Standards Codification No. 505, Equity Based Payments to Non-Employees defines the measurement date and recognition period for such instruments. In general, the measurement date is when either a (a) performance commitment, as defined, is reached or (b) the earlier of (i) the non-employee performance is complete or (ii) the instruments are vested. The measured value related to the instruments is recognized over a period based on the facts and circumstances of each particular grant as defined in the FASB Accounting Standards Codification. (R) Reclassification Certain amounts from prior periods have been reclassified to conform to the current period presentation. These reclassifications had no impact on the Company's net loss or cash flows. (S) Derivative Financial Instruments Fair value accounting requires bifurcation of embedded derivative instruments such as conversion features in convertible debt or equity instruments, and measurement of their fair value for accounting purposes. In determining the appropriate fair value, the Company uses the Black-Scholes option-pricing model. In assessing the convertible debt instruments, management determines if the convertible debt host instrument is conventional convertible debt and further if there is a beneficial conversion feature requiring measurement. If the instrument is not considered conventional convertible debt, the Company will continue its evaluation process of these instruments as derivative financial instruments. Once determined, derivative liabilities are adjusted to reflect fair value at each reporting period end, with any increase or decrease in the fair value being recorded in results of operations as an adjustment to fair value of derivatives. In addition, the fair value of freestanding derivative instruments such as warrants, are also valued using the Black-Scholes option-pricing model. (T) Original Issue Discount For certain convertible debt issued, the Company provides the debt holder with an original issue discount. The original issue discount is recorded to debt discount, reducing the face amount of the note and is amortized to interest expense over the life of the debt. (U) Debt Issue Costs and Debt Discount The Company may pay debt issue costs, and record debt discounts in connection with raising funds through the issuance of convertible debt. These costs are amortized to interest expense over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed. (V) Licensing & Distribution On June 20, 2015, the Company entered into a license agreement with Santok LTD of United Kingdom (“Santok). The term of the agreement is three years. Santok will pay the Company a royalty fee of $1.50 for each licensed product. Santok guarantees to the Company a minimum total of 150,000 cumulative licensed product installation with a minimum total guaranteed value of $225,000 over the three years of the agreement. If the total royalty paid is less than the guaranteed value, Santok will pay the difference. On July 13, 2015, the Company entered into a license agreement with Luna Mobile, Inc. of United States (“Luna). The term of the agreement is three years. Luna will pay the Company a royalty fee of $1.50 for each licensed product manufactured and sold.

Going Concern

Going Concern	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Going Concern	NOTE 2 GOING CONCERN As reflected in the accompanying condensed unaudited financial statements, the Company had a net loss of $7,328,056 for the six months ended June 30, 2016, has an accumulated deficit of $70,623,088 as of June 30, 2016, and has negative cash flow from operations of $1,160,894 for the six months ended June 30, 2016. As the Company continues to incur losses, transition to profitability is dependent upon the successful commercialization of its products and achieving a level of revenues adequate to support the Company’s cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional cash. Management intends to fund future operations through additional private or public debt or equity offerings. Based on the Company’s operating plan, existing working capital at December 31, 2015 was not sufficient to meet the cash requirements to fund planned operations through June 30, 2016 without additional sources of cash. This raises substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and do not include adjustments that might result from the outcome of this uncertainty.

Debt

Debt	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Debt	NOTE 3 DEBT AND ACCOUNTS PAYABLE Debt consists of the following: As of As of June 30, 2016 December 31, 2015 Line of credit - related party $ 473 $ 473 Convertible debt 4,773,876 4,634,852 Less: debt discount (2,056,408 ) (2,658,213 ) Convertible debt - net 2,717,468 1,976,639 Demand note 60,000 Total current debt 2,777,941 $ 1,977,112 (A) Line of credit – related party Line of credit with the principal stockholder consisted of the following activity and terms: Principal Interest Rate Maturity Balance - December 31, 2015 $ 473 Borrowings during the six months ended June 30, 2016 — 4 % September 26, 2016 Interest accrual — Repayments — Balance - June 30, 2016 $ 473 4 % September 26, 2016 Accounts payable consists of the following : As of June 30, 2016 As of December 31, 2015 Accounts Payable 1,788,733 $ 1,393,074 Total accounts payable 1,788,733 $ 1,393,074 Accounts payable for the year ended included royalty payments due to VSL agreement entered into on August 11, 2014 in the amount of $1,033,000 and EA Technology agreement entered into on May 22, 2014 in the amount of $ 515,423 for a total payable of $1,060,845 See Note 1 (J). (B) Loan Payable – Related Party On September 17, 2015, the Company received $170,000 from a related party. Pursuant to the terms of the note, the note is bearing an original issuance discount in the amount of $10,000 and is due on or before October 31, 2015. As of December 31, 2015, the balance of the note was repaid and remaining balance is $0. (C) Convertible Debt During the six months ended June 30, 2016 and the year December 31, 2015, the Company issued convertible notes totaling $2,289,101, less the original issue discount and debt issue costs of $93,554, for the net proceeds of $2,195,547 and $5,390,789, respectively. On October 7, 2015, the Company issued 1,000,000 warrants in connection with the entry into certain convertible debenture agreements. Warrant vests immediately and expire on October 7, 2018 with an exercise price of $0.12. On October 26, 2015, the Company issued 1,000,000 warrants in connection with the entry into certain convertible debenture agreements. Warrant vests immediately and expire on October 26, 2018 with an exercise price of $0.12. The convertible notes issued for year ended June 30, 2016 and year ended December 31, 2015, consist of the following terms: Six months ended Year ended June 30, 2016 December 31, 2015 Amount of Amount of Principal Raised Principal Raised Interest Rate 0% - 10% 0% - 10% Default interest rate 14% - 22% 14% - 22% Maturity February 26, 2015 - November 23, 2017 February 26, 2015 - November 23, 2017 Conversion terms 1 65% of the “Market Price”, which is the average of the lowest three (3) trading prices for the common stock during the ten (10) trading day period prior to the conversion. 3,542,400 2,104,000 Conversion terms 2 65% of the “Market Price”, which is the lowest trading prices for the common stock during the ten (10) trading day period prior to the conversion. 465,416 420,410 Conversion terms 3 70% of the “Market Price”, which is the average of the lowest three (3) trading prices for the common stock during the fifteen (15) trading day period prior to the conversion. — 111,111 Conversion terms 4 75% of the “Market Price”, which is the average of the lowest three (3) trading prices for the common stock during the ten (10) trading day period prior to the conversion. 765,000 787,778 Conversion terms 5 60% of the “Market Price”, which is the lowest trading prices for the common stock during the fiften (15) trading day period prior to the conversion. — 35,000 Conversion terms 6 Conversion at $0.10 per share — 135,200 Conversion terms 7 60% of the “Market Price”, which is the lowest trading prices for the common stock during the ten (10) trading day period prior to the conversion. — 282,000 Conversion terms 8 65% of the “Market Price”, which is the two lowest trading prices for the common stock during the ten (10) trading day period prior to the conversion. 1,060 390,778 Conversion terms 9 65% of the “Market Price”, which is the two lowest trading prices for the common stock during the fifteen (15) trading day period prior to the conversion. — 150,250 Conversion terms 10 65% of the “Market Price”, which is the lowest trading prices for the common stock during the fifteen (15) trading day period prior to the conversion. — 218,325 Convertible Debt 4,773,876 4,634,852 Less: Debt Discount (2,056,408 ) (2,658,213 ) Convertible Debt - net $ 2,717,468 $ 1,976,639 The debt holders are entitled, at their option, to convert all or part of the principal and accrued interest into shares of the Company’s common stock at conversion prices and terms discussed above. The Company classifies embedded conversion features in these notes and warrants as a derivative liability due to management’s assessment that the Company may not have sufficient authorized number of shares of common stock required to net-share settle or due to the existence of a ratchet due to an anti-dilution provision. See Note 4 regarding accounting for derivative liabilities. During the six months ended June 30, 2016, the Company converted debt and accrued interest, totaling $1,000,029 into 400,741,998 shares of common stock During the year ended December 31, 2015, the Company converted debt and accrued interest, totaling $2,918,633 into 154,673,471 shares of common stock. Convertible debt consisted of the following activity and terms: Convertible Debt Balance as of December 31, 2015 4,634,852 4% - 10% February 26, 2015 - November 23, 2017 Borrowings during the six months ended June 30, 2016 2,289,101 8% - 10% Non-Cash Reclassification of accrued interest converted 55,163 Repayments (1,197,096 ) Conversion of debt to into 400,741,998 shares of common stock with a valuation of $1,000,029 ($0.017 - $0.042/share) including the accrued interest of $55,163 (1,000,029 ) Reclassification into a demand note — Convertible Debt Balance as of 3/31/16 4,781,991 4% - 10% February 26, 2015 - November 23, 2017 (D) Debt Issue Costs During the six months ended June 30, 2016, the Company paid debt issue costs totaling $21,737. The following is a summary of the Company’s debt issue costs: Six Months Ended Six Months Ended June 30, 2016 June 30, 2015 Debt issue costs $ 195,113 103,738 Accumulated amortization of debt issue costs (184,677 ) (56,811 ) Debt issue costs - net $ 10,436 46,927 During the six months ended June 30, 2016 and 2015 the Company amortized $58,000 and $41,929 of debt issue costs, respectively. (E) Debt Discount & Original Issue Discount During the six months ended June 30, 2016 and December 31, 2015, the Company recorded debt discounts totaling $2,245,760 and $5,323,857, respectively. The debt discount and the original issue discount recorded in 2016 and 2015 pertains to convertible debt that contains embedded conversion options that are required to bifurcated and reported at fair value and original issue discounts. The Company amortized $1,338,958 and $1,932,848 during the six months ended June 30, 2016 and 2015, respectively, to amortization of debt discount expense. Six Months Ended Year Ended June 30, 2016 December 31, 2015 Debt discount $ 9,290,998 7,042,922 Accumulated amortization of debt discount (7,234,590 ) (4,384,709 ) Debt discount - Net $ 2,056,408 2,658,213

Convertible Debt - Derivative L

Convertible Debt - Derivative Liabilities	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Convertible Debt - Derivative Liabilities	NOTE 4 DERIVATIVE LIABILITIES The Company identified conversion features embedded within convertible debt issued in 2016 and 2015 and warrants issued in 2016 and 2015. The Company has determined that the features associated with the embedded conversion option should be accounted for at fair value as a derivative liability. As a result of the application of ASC No. 815, the fair value of the conversion feature is summarized as follow: Derivative Liability -December 31, 2015 $ 3,684,184 Fair value at the commitment date for convertible instruments 4,696,124 Fair value at the commitment date for warrants issued 91,556 Change in fair value of embedded derivative liability for warrants issued (20,313 ) Change in fair value of embedded derivative liability for convertible instruments (55,984 ) Reclassification to additional paid in capital for financial instruments that ceased to be a derivative liability (1,111,782 ) Change from repayments (2,030,644 ) Derivative Liability -June 30, 2016 $ 5,253,141 The Company recorded the debt discount to the extent of the gross proceeds raised, and expensed immediately the remaining value of the derivative as it exceeded the gross proceeds of the note. The Company recorded a derivative expense for the sixmonths ended June 30, 2016 and 2015 of $2,505,412 and $1,034,281, respectively. The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of June 30, 2016: Commitment Date Re-measurement Date Expected dividends: — — Expected volatility: 133% - 262% 150% -268.842% Expected term: 0.41 - 3 Years 0.12–2.91 Years Risk free interest rate: 0.06% - 1.31% 0.04% - .1.58% The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of December 31, 2015: Commitment Date Re-measurement Date Expected dividends: — — Expected volatility: 133% - 221% 177% -238.77% Expected term: 0.41 - 3 Years 0.12–2.9 Years Risk free interest rate: 0.06% - 1.31% 0.12% - .1.31%

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Property and Equipment	NOTE 5 PROPERTY AND EQUIPMENT At June 30, 2016 and December 31, 2015, respectively, property and equipment is as follows: June 30, 2016 December 31, 2015 Website Development $ 294,795 $ 294,795 Furniture and Equipment 117,183 112,220 Leasehold Improvements 6,708 6,573 Software 54,598 53,897 Music Equipment 2,578 2,578 Office Equipment 80,710 80,110 Domain Name 1,500 1,500 Sign 628 628 Total 558,700 552,301 Less: accumulated depreciation and amortization (461,838 ) (421,340 ) Property and Equipment, Net $ 96,862 $ 130,961 Depreciation/amortization expense for the three and six months ended June 30, 2016 totaled $20,334 and $40,498, respectively. Depreciation/amortization expense for the three and six months ended June 30, 2015 totaled $19,645 and $38,854, respectively.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
STOCKHOLDERS' EQUITY	NOTE 6 STOCKHOLDERS’ EQUITY On March 4, 2015, the Company with the consent of the Majority Shareholder and Unanimous Written Consent of the Board of Directors created and authorized the issuance of Series A Convertible Preferred stock, with a par value of $0.00001 per share. The face amount of state value of each Preferred Share of stock is $0.96 and the conversion price of $0.04 per share. On June 24, 2015, the Company with the consent of the Majority Shareholder and Unanimous Written Consent of the Board of Directors filed with the State of Delaware an Amended Certificate of Incorporation increasing the authorized shares of common stock by 120,000,000 shares of common stock from 450,000,000 million shares of common stock to 570,000,000 shares of common stock. On August 19, 2015, the Company with the consent of the Majority Shareholder and Unanimous Written Consent of the Board of Directors filed with the State of Delaware an Amended Certificate of Incorporation increasing the authorized shares of common stock by 280,000,000 shares of common stock from 570,000,000 million shares of common stock to 850,000,000 shares of common stock. On January 13, 2016, the Company with the consent of the Majority Shareholder and Unanimous Written Consent of the Board of Directors filed with the Securities and Exchange Commission a Schedule 14C and with the State of Delaware an Amended Certificate of Incorporation increasing the authorized shares of common stock by 800,000,000 shares of common stock from 850,000,000 million shares of common stock to 1,650,000,000 shares of common stock. (A) Common Stock During the six months ended June 30, 2016, the Company issued the following common stock: Transaction Type Quantity Valuation Range of Value per share Conversion of convertible debt and accrued interest 400,741,998 $ 1,000,029 $0.00143 to- $0.00869 Services - rendered 12,000,000 105,600 $0.12-$0.009 Total shares issued 412,741,998 $ 1,105,629 During the year ended December 31, 2015, the Company issued the following common stock: Transaction Type Quantity Valuation Range of Value per share Conversion of convertible debt and accrued interest 154,673,471 $ 2,918,633 $0.009 - $0.042 Services - rendered 9,195,182 294,548 $0.12-$0.07 Return of shares (120,000,000 ) (1,200 ) $ 0.000010 Conversion of line of credit in common stock 5,000,000 150,000 $ 0.03 Total shares issued 48,868,653 $ 3,361,981 The following is a detailed description of transactions noted above: 1. Conversion of convertible debt and accrued interest During the six months ended June 30, 2016, the Company converted debt and accrued interest, totaling $1,000,029 into 400,741,998 shares of common stock 2. Services Rendered During the six months ended June 30, 2016, the Company issued 12,000,000 shares of common stock to employee having a fair value of $105,600 ($0.009/sh.) in exchange for services. During the year ended December 31, 2015, the Company issued 200,000 shares of common stock having a fair value of $14,000 ($0.070/sh.) in exchange for consulting services. During the year ended December 31, 2015, the Company issued 200,000 shares of common stock having a fair value of $10,000 ($0.050/sh.) in exchange for consulting services. During the year ended December 31, 2015, the Company issued 2,246,858 shares of common stock having a fair value of $53,925 ($0.012/sh.) in exchange for consulting services. During the year ended December 31, 2015, the Company issued 200,000 shares of common stock having a fair value of $8,000 ($0.040/sh.) in exchange for consulting services. On December 21, 2015, the Company issued 100,000 shares of common stock having a fair value of $2,000 ($0.020/sh.) in exchange for consulting services. On November 23, 2015, the Company issued 200,000 shares of common stock having a fair value of $6,000 ($0.030/sh.) in exchange for consulting services. On September l1, 2015, the Company issued 1,000,000 shares of common stock to employee having a fair value of $23,800 ($0.024/sh.) in exchange for services. On September 10, 2015, the Company issued 2,048,324 shares of common stock having a fair value of $62,679($0.031/sh.) in exchange for legal services of 138,433. This resulted in a gain on settlement of $75,954. On May 4, 2015, the Company issued 200,000 shares of common stock having a fair value of $10,700 ($0.054/sh) in exchange for consulting services. On April 1, 2015, the Company issued 150,000 shares of common stock having a fair value of $4,455 ($0.0284/sh) in exchange for consulting services. On April 1, 2015, the Company issued 150,000 shares of common stock having a fair value of $4,455 ($0.0284/sh) in exchange for consulting services. On April 1, 2015, the Company issued 300,000 shares of common stock having a fair value of $8,910 ($0.0284/sh) in exchange for consulting services. On March 1, 2015, the Company issued 375,000 shares of common stock to employees having a fair value of $20,725 ($0.040 – 0.063) in exchange for services. On February 28, 2015, the Company entered into a services agreement. In connection with this agreement, the consultant will receive 700,000 shares of fully vested common stock. The Company maintains on its books and within the above financials, debt to Venture Champion Asia Limited and ICG USA LLC or its designee(s) which is currently in default and has not been converted due to ICG’s settled administrative proceeding with the SEC, where the Company awaits any rightful exemption or regulatory no-action that would render any forward moving action compliant by all the parties. 3. Return of Shares and Issuance of Preferred shares On March 4, 2015 the Company filed a form 8K with the SEC associated with the Company entering into a Securities Exchange Agreement and the Company filing with the Secretary of State Delaware a Certificate of Designations, Preferences and Rights whereby, among other things, the Company for good and valuable consideration, agreed that in consideration of a large shareholder exchanging 120,000,000 shares of common stock back to the Company, the shareholder would receive 5,000,000 shares of Series A Convertible Preferred Stock of the Company at a Stated Value of $0.96 per share and a Conversion Price of $0.04 per share. The Series A Convertible Preferred Stock carries certain voting preferences and will accrue dividends at a rate of 8% per annum Stated Value, payable in cash or in kind at the election of the Board of Directors. For the six months ended June 30, 2016 and for the year ended December 31, 2015, the Company has not declared dividends. 4. Conversion of line of credit into Common shares On April 1, 2015, the principal stockholder converted $150,000 of the line of credit owed into 5,000,000 shares of common stock at $0.03 per share. (B) Stock Warrants On May 27, 2016, the Company has agreed to issue 1,000,000 three-year warrants at an exercise price of $0.005/share of the common stock of the Company to a consultant for consulting services. The Company recorded the fair value of the warrants based on the fair value of each warrant grant estimated on the date of grant using the black – Scholes option pricing On March 6, 2016, the Company entered into a revised engagement with its corporate counsel, McMenamin Law Group, for corporate legal services to be provided by legal counsel beginning July 28, 2015 through December 31, 2016, pursuant to which the Company has agreed to issue a five (5) warrants at an exercise price totaling $25,000 at a strike price of ($0.0029/share) per share of common stock of the Company, which share price was the closing price of the Company’s stock on March 3, 2016. In addition the Company has agreed to pay McMenamin Law Group cash consideration totaling $15,000 on or before March 31, 2016, or a funding of the Company, whichever occurs first. As of June 30, 2016, the payment was not made. This new engagement shall replace and supersede any previous engagements or other agreements between the Company and McMenamin Law Group. On February 29, 2016, the Company has agreed to issue 2,000,000 three-year warrants at an exercise price of $0.01/share of the common stock of the Company to a consultant for consulting services. On January 5, 2016, the Company increased the warrant issuance to a consultant from November 25, 2014, from 200,000 warrants to 2,800,000 warrants. The warrants vested immediately. The 2,000,000 have an exercise price of $0.02 per share. The 800,000 have an exercise price of $0.06 per share and contingent on the Common Stock on market price per share at $0.05 per share or higher for 30 or more consecutive days at the time of purchase. The Company will record the fair value of the warrants based on the fair value of each warrant grant estimated on the date of grant using the black – Scholes option pricing model. Subsequently, on May 24, 2016 the Company into a revised agreement, pursuant to which to Company cancelled the 3,000,000 issues previously issued and the Company has agreed to issue 5,600,000 a three (3) year warrant at a strike price of ($0.006/share) per share of common stock of the Company, which share price was the closing price of the Company’s stock on May 24, 2016. On October 7, 2015, the Company issued 1,000,000 warrants in connection with the entry into certain convertible debenture agreements. Warrant vests immediately and expires on October 7, 2018 with an exercise price of $0.12. On October 26, 2015, the Company issued 1,000,000 warrants in connection with the entry into certain convertible debenture agreements. Warrant vests immediately and expires on October 26, 2018 with an exercise price of $0.12. The following tables summarize all warrant grants as of June 30, 2016, and the related changes during these periods are presented below: Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Balance, December 31, 2015 5,550,000 $ 0.25 1.5 Granted 20,020,690 Exercised — Cancelled/Forfeited (4,500,000 ) Balance, June 30, 2016 21,070,690 $ 0.01 2.5 During the six months ended June 30, 2016 the Company cancelled 3,000,000 warrants in connection with the re issuance of 5,600,000 warrants as per the warrant issuance as described in note 6(B). In addition, during the six months ended June 30, 2016 the Company cancelled 1,500,000 fully expired warrants. A summary of all outstanding and exercisable warrants as of June 30, 2016 is as follows: Weighted Average Exercise Warrants Warrants Remaining Aggregate Price Outstanding Exercisable Contractual Life Intrinsic Value $ 0.01 2,000,000 2,000,000 2.66 $- $ 0.005 1,000,000 1,000,000- 2.91- $- $ 0.0029 8,620,690 8,620,690 2.75 $- $ 0.006 5,600,000 5,600,000 2.89 $ $ 0.12 2,000,000 2,000,000 2.27 $- $ 0.40 1,850,000 1,850,000 0.53 $- 21,070,690 21,070,690 2.5 $- A summary of all outstanding and exercisable warrants as of December 31, 2015 is as follows: Weighted Average Exercise Warrants Warrants Remaining Aggregate Price Outstanding Exercisable Contractual Life Intrinsic Value $ 0.10 200,000 200,000 1.90 $ — $ 0.12 2,000,000 2,000,000 2.77 $ — $ 0.40 2,850,000 2,850,000 0.73 $ — $ 0.45 500,000 500,000 — $ — 5,550,000 5,550,000 1.5 years $ — (C) Stock Options The following tables summarize all option grants as of June 30, 2016, and the related changes during these periods are presented below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Outstanding - December 31, 2015 15,566,652 $ 0.13 1.32 Granted — $ — — Exercised — $ — — Forfeited or Canceled (12,700,000 ) $ — — Outstanding – June 30, 2016 2,866,652 $ 0.13 1.02 Exercisable - June 30, 2016 2,866,652

Commitments

Commitments	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	NOTE 7 COMMITMENTS (A) Employment Agreement On January 31, 2016 Mr. Lloyd Trammell submitted a notice of resignation ending employment on March 1, 2016. On January 8, 2016, the Company extended the employment agreement with its CEO, John Blaisure for an additional five years. The C ompany issued 12,000,000 shares of Company’s common stock as part of the compensation with a fair value of $105,600 ($0.0088) based on the stock trading price. On September 11, 2015, the Company executed an employment agreement with an employee. The term of the agreement is for three years. As compensation for services, the employee will receive a monthly compensation of $12,000. In addition, the employee will receive up to 2,000,000 shares of common stock. The first 1,000,000 shares will be paid upon execution of Agreement. For the year ended December 31, 2015, the Company recorded $23,800 in expense for 1,000,000 shares of common stock at ($0.024/share) based on the trading price. The second 1,000,000 shares will be paid in month 13 of the agreement in lieu of the $12,000 that would be paid in that month. For the year ended December 31, 2015, the Company recorded $23,800 in stock based compensation payable for 1,000,000 shares of common stock at ($0.024/share) based on the trading price. (B) Consulting Agreement On April 14, 2016, the Company entered into an agreement, for consulting services, for which the Company issued 1,000,000 warrants at a strike price of ($0.005/share) per share. On March 6, 2016, the Company entered into a revised engagement with its corporate counsel, McMenamin Law Group, for corporate legal services to be provided by legal counsel beginning July 28, 2015 through December 31, 2016, pursuant to which the Company has issued a five (5) warrants at an exercise price totaling $25,000 at a strike price of ($0.0029/share) per share of common stock of the Company, which share price was the closing price of the Company’s stock on March 3, 2016. In addition the Company has agreed to pay McMenamin Law Group cash consideration totaling $15,000 on or before March 31, 2016, or a funding of the Company, whichever occurs first. On March 23, 2016, the Company paid $15,000 to McMenamin Law Group. On June 11, 2015, the Company entered into a consulting services agreement with two consultants. The agreement will continue until September 10, 2015. In connection with this agreement, the consultant shall be paid $6,000 per month and receive up to 100,000 shares of common stock each upon completion, submission and approval of the first stage of working APP. An additional 100,000 shares will be issued upon the completion, submission and approval of the second stage working APP. As of December 31, 2015, the Company recorded $2,000 in stock based compensation for 100,000 shares of common stock at ($0.02/share) based on the trading price. No additional shares will be issued to the consultant’s due to the non-performance of services. On May 4, 2015, the Company entered into a consulting services agreement. The agreement will remain in effect for three years. In connection with this agreement, the consultant shall be paid $7,500 per month and receive 200,000 shares of common stock upon the execution of the agreement. An additional 200,000 shares of common still will be grated within 10 days of achieving each of the following milestones, whichever comes first, up to one million shares of stock based on marketing goals. On July 2, 2015, the Company issued 200,000 shares of common stock having a fair value of $ 10,700 ($0.0535/sh) in exchange for consulting services agreement dated May 4, 2015. On January 21, 2015, the Company entered into a consulting services agreement. In connection with this agreement, the consultant shall be paid $4,000 per month and receive up to 150,000 shares of common stock payable in lots of 50,000 per month and will be issued 90 days after the date of the signing of the agreement. For year ended December 31, 2015, the Company recorded $4,455 in stock based compensation. On January 21, 2015, the Company entered into a consulting services agreement. In connection with this agreement, the consultant shall be paid $4,000 per month and receive up to 150,000 shares of common stock payable in lots of 50,000 per month and will be issued 90 days after the date of the signing of the agreement. For the year ended December 31, 2015, the Company recorded $4,455 in stock based compensation. On March 17, 2015, the Company entered into a services agreement. In connection with this agreement, the consultant will receive 300,000 shares of fully vested common stock, payable in lots of 100,000 shares of common stock per month and 5,000 per month. The agreement will continue until June 17, 2015. For year ended December 31, 2015, the Company recorded $8,910 in stock based compensation. On February 18, 2015, the Company entered into service agreement for a period of two years with the Company’s transfer agent for a period from September 23, 2014 to September 23, 2016. In consideration for these services, during the year ended December 31, 2015, 700,000 shares of fully vested common stock valued at $22,400 ($0.03/share) were granted.

Litigation

Litigation	6 Months Ended
	Jun. 30, 2016
Loss Contingency [Abstract]
LITIGATION	NOTE 8 LITIGATION From time to time, the Company has become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm its business. On January 21, 2015, the Company filed a patent infringement action against Netflix Inc., Netflix Luxembourg S.a.r.l. and Netflix International B.V. with the District Court of Mannheim, Germany. The asserted patent is the same patent as in the German proceedings against Google Inc. and its subsidiaries. The Complaint alleges that Netflix Inc. and its subsidiaries are offering and transmitting video streams to German customers as part of their video-on-demand business model; the videos being encoded and transmitted in a manner claimed and protected by the patent. The Company primarily seeks a permanent injunction against the Defendants, plus damages and information regarding past infringements. The Company, upon advice of counsel, decided withdraw the litigation prior to oral argument, which withdrawal is without prejudice to re-file the lawsuit in the future. The Company intends to vigorously prosecute these various patent infringement litigations. The Company believes it has a good likelihood of success associated with these patent infringement lawsuits. However, no assurance can be given by the Company as to the ultimate outcome of these actions or its effect on the Company. The law firm is prosecuting this action on a pure contingency fee basis. On January 26, 2015, the Company was named as a defendant in an action filed in the Superior Court for the State of California and the County of Los Angeles captioned Bibicoff Family Trust v. Max Sound Corporation (Case No. SC123679). In the complaint the plaintiff alleges a cause of action for breach of contract associated with the non-payment by the Company for certain services plaintiff agreed to provide to the Company. The Company interposed a cross-complaint against plaintiffs averring causes of action for breach of contract, fraud, and negligent misrepresentation by defendants with respect to defendants’ fraudulent and intentional undisclosed inability to perform the services that plaintiffs’ agreed to perform that are the subject of this dispute. The parties recently participated in mediation and have arrived successfully at a settlement and resolution of the matter. The Company agreed in connection with the settlement to pay Bibicoff Trust $100,000 over a 13 month installment period commencing March 10, 2016, with the caveat that such settlement amount will be reduced to $93,000.00 in the event the Company pays $20,000.00 on or before March 10, 2016, which the Company successfully achieved thus reducing the settlement amount to $93,000.00. On May 13, 2015 Google's “motion to dismiss” was denied by the Northern District of California court in a seven page order, stating that Max Sound had sufficiently alleged the existence and validity of the '339 Patent. On June 11, 2015, the District Court of Mannheim announced it had scheduled the hearing in the video streaming patent case against Google and YouTube for December 8, 2015; however, at the oral argument hearing the Company, upon advice of counsel, determined that it was in the Company’s best interests to withdraw the action such that it cannot be re-filed against the same parties. The case was filed by Max Sound against Google Inc., Mountain View, USA, Google Commerce Ltd., Dublin, Ireland, Google Germany GmbH, Hamburg, Germany, and the Google subsidiary YouTube LLC, San Bruno, USA, in December 2014 because of the infringement of a video streaming patent, which is valid for the world's most important markets. Max Sound requested the German court to order Google and YouTube to stop streaming video via using the current VP8 or H.264 video codecs and to stop selling video-enabled devices like Nexus Phones and Chromecast sticks. Further requests are that information about any profits is rendered and that Google and YouTube are declared liable for damages based on patent infringement. Max Sound claims that Google and YouTube are using the technology protected by European Patent EP 2 026 277, which allows far more economically efficient transport of digital content due to greatly optimized data capacity. MaxD v. VSL, et al. This is an arbitration action brought by the Company against VSL Communications, Ltd., Vedanti Systems, Ltd., Constance Nash, Robert Newell and eTech Investments as respondents before the American Arbitration Association for breach of contract, fraud, and other causes of action. Google filed a motion to dismiss the litigation based upon the argument that the Company’s underlying agreement with VSL did not confer on the Company legal standing to pursue the patent infringement claims against Google. On November 24, 2015 the Court granted the motion to dismiss in favor of Google. The Company timely filed it notice of appeal with the appeals court on February 22, 2016. The two issues on appeal are, (i) whether the district court erred by granting the Google defendants’ motion to dismiss the Company’s lawsuit on the ground that the Company lacked standing to sue the Google defendants for infringement of the 339 patent, and (ii) whether the district court erred by denying the Company’s motion for leave to amend the complaint and add as a party VSL, a former licensee of the 339 patent to cure any defect in prudential standing to the extent VSL is a necessary party. As noted herein, this finding by the Court was appealed to the Federal Circuit court of Appeals on February 22, 2016. The Circuit Court docketed the appeal on February 24, 2016, and the parties will be briefing the appeal during the next several months. Subsequently, the Company has pursued in arbitration claims against VSL to legally enforce the agreement and to compel VSL to comply with the agreement’s terms and conditions that inter alia VSL must fully cooperate with the Company to cure any issues the Court raised with standing to pursue the claims. This arbitration is still ongoing. On April 22, 2016, Vedanti filed a lawsuit against the Company in the Northern District of California seeking to avoid participation in the aforementioned arbitration. This lawsuit is ongoing. On December 5, 2014, the Company, along with renowned architect Eli Attia, filed a lawsuit in the Superior Court of California, County of Santa Clara, against Google, its co-founders Sergey Brin and Larry Page, Google’s spinoff company Flux Factory, and senior executives of Flux. Plaintiffs’ allege misappropriation of trade secrets, breach of contract and other contract-related claims, breach of confidence, slander of title, violation of California’s Unfair Competition Law (California Business and Professionals Code §§ 17200 et seq.), and fraud, and also bring a claim for declaratory relief. The lawsuit contends that Google and the other Defendants stole Mr. Attia’s trade secrets, proprietary information, and know-how regarding a revolutionary architecture design and building process that he alone had invented, known as Engineered Architecture. Defendants are alleged to have engaged Mr. Attia in 2010 and 2011 to translate his architectural technology into software for a proof of concept, with the goal of determining at that point whether to continue with full-scale development with Mr. Attia. Instead, the lawsuit claims that once Mr. Attia had disclosed the trade secrets and proprietary information Defendants needed to bring the technology to market, they severed ties with Mr. Attia, and continued to use his technology without a license and without compensation, in order to bring the technology to market themselves. Plaintiffs seek a permanent injunction against Google, damages (including punitive damages), and restitution. As exclusive agent to Eli Attia to enforce all rights with respect to the subject technology, the Company has retained Buether Joe & Carpenter LLC to represent the Company in the suit, on a contingency fee basis. The case will be vigorously prosecuted, and the Company believes it has a good likelihood of success. Defendants have filed multiple demurrers to the complaint, and the Court has issued orders allowing the case to proceed. Defendants filed another demurrer on March 17, 2016, which is scheduled to be heard by the Court on August 12, 2016. Attia v. Google and Flux Factory. As of December 31, 2015: Defendants had filed a demurrer to the complaint. The demurrer was pending as of December 31, 2015. Current status: On February 1, 2016, the court granted in part and denied in part the demurrer and provided plaintiff leave to amend the complaint to cure certain deficiencies. The amended complaint was filed on February 8, 2016. No assurance can be given as to the ultimate outcome of these actions or its effect on the Company.

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2016
Intangible Assets
Intangible Assets	NOTE 9 INTANGIBLE ASSETS As of June 30, 2016 and December 31, 2015 the Company owns certain trademarks and technology rights. See Note 1 (I). Useful Life Six Months Ended June 30, 2016 December 31, 2015 Distribution rights 10 Years $ 9,647,577 $ 9,647,577 Trademarks Indefinite 7,500,000 7,500,000 Licensing Rights Indefinite 2,064,000 2,064,000 Other Indefinite 275 275 Accumulated amortization (2,443,810 ) (2,415,615 ) Impairment of the distributions rights (15,703,616 ) (15,703,616 ) Net carrying value $ 1,064,426 $ 1,092,621 For the six months ended June 30, 2016 and 2015, amortization expense related to the intangibles with finite lives totaled $56,390 and $527,179, respectively, and was included in general and administrative expenses in the statement of operations. The Company also recorded an impairment expense of $15,703,617 during the year ended December 31, 2015.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 10 SUBSEQUENT EVENTS On April 14, 2016 the Company entered into a Term Sheet with Imperalis Holdings (IMHC). Under the Terms, IMHC would acquire certain rights, title and interest in and to the MAX-D Audio Technology's Intellectual Property for certain MAXD HD Audio Technology IP component assets. At the date of this filing, and per the initial Terms, the purchase is on hold as the Company awaits verification by IMHC of adequate funding to propel potential business and solidify that the IMHC asset purchase would be in the best interest of Company's Shareholders. On July 26, 2016 the Company entered into an agreement with Iliad Research and Trading, L.P., to issue up to $171,665 in a convertible note. The note matures on July 26, 2017 and bears an interest charge of 8%. The conversion price equals the “Variable Conversion Price”, which is 65% of the “Market Price”, which is the average of the lowest two (2) trading prices for the common stock during the ten (10) trading day period prior to the conversion.. The holder of the note has a right to convert all or any part of the outstanding unpaid principal amount into shares of common stock after six months. The Company received $150,000 proceeds on July 28, 2016. On July 15, 2016 the Company entered into an agreement with JSJ Investments, Inc., to issue up to $50,000 in a convertible note. The note matures on April 15, 2017 and bears an interest charge of 8%. The conversion price equals the “Variable Conversion Price”, which is 60% of the “Market Price”, which is the lowest trading prices for the common stock during the ten (10) trading day period prior to the conversion. The holder of the note has a right to convert all or any part of the outstanding unpaid principal amount into shares of common stock after six months. The Company received $49,000 proceeds on July 19, 2016. On July 7, 2016 the Company entered into an agreement with Crossover Capital Fund I, LLC, to issue up to $52,632 in a convertible note. The note matures on April 7, 2017 and bears an interest charge of 10%. The conversion price equals the “Variable Conversion Price”, which is 60% of the “Market Price”, which is the average of the lowest two (2) trading prices for the common stock during the twelve (12) trading day period prior to the conversion.. The holder of the note has a right to convert all or any part of the outstanding unpaid principal amount into shares of common stock after six months. The Company received $45,000 proceeds on July 12, 2016. On August 9, 2016 the Company has moved a level down from OTCQB to OTC Pink Current Information where it is within the continued standards and pricing requirements as found in Section 2 of the OTCQB Eligibility Standards .

Summary of Significant Accoun16

Summary of Significant Accounting Policies and Organization (Policies)	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Organization and Basis of Presentation	(A) Organization and Basis of Presentation Max Sound Corporation (the "Company") was incorporated in Delaware on December 9, 2005, under the name 43010, Inc. The Company business operations are focused primarily on developing and launching audio technology software. Effective March 1, 2011, the Company filed with the State of Delaware a Certificate of Amendment of Certificate of Incorporation changing our name from So Act Network, Inc. to Max Sound Corporation. The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in The United States of America and the rules and regulations of the Securities and Exchange Commission applicable to interim financial information and with instructions to Form 10Q and Articles of Regulations S-X.. Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations. It is management's opinion, however, that all material adjustments (consisting of normal and recurring adjustments) have been made which are necessary for a fair financial statements presentation. The results for the interim period are not necessarily indicative of the results to be expected for the year. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 30, 2015.
Use of Estimates	(B) Use of Estimates In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates.
Cash and Cash Equivalents	(C) Cash and Cash Equivalents For purposes of the cash flow statements, the Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. As of June 30, 2016 and December 31, 2015, the Company had no cash equivalents.
Property and Equipment	(D) Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is provided using the straight-line method over the estimated useful life of three to five years.
Research and Development	(E) Research and Development The Company has adopted the provisions of FASB Accounting Standards Codification No. 350, Intangibles - Goodwill & Other .
Concentration of Credit Risk	(F) Concentration of Credit Risk The Company at times has cash in banks in excess of FDIC insurance limits. The Company had $0 in excess of FDIC insurance limits as of June 30, 2016 and 2015.
Revenue Recognition	(G) Revenue Recognition The Company recognized revenue on arrangements in accordance with FASB Codification Topic 605, “Revenue Recognition” (“ASC Topic 605”). Under ASC Topic 605, revenue is recognized only when the price is fixed and determinable, persuasive evidence of an arrangement exists, the service is performed and collectability of the resulting receivable is reasonably assured. We had revenues of $0, $0, $0 and $0 for the three and six months ended June 30, 2016 and 2015, respectively.
Advertising Costs	(H) Advertising Costs Advertising costs are expensed as incurred and include the costs of public relations activities. These costs are included in consulting and general and administrative expenses and totaled $1,942 and $0 for the six months ended June 30, 2016 and 2015, respectively.
Inventories	(I) Inventories Inventory consists primarily of finished goods and is valued at the lower of cost or market. Cost is determined using the weighted average method and average cost is recomputed after each inventory purchase or sale. Inventory is periodically reviewed in order to identify obsolete or damaged inventory and impaired values. For the year ended December 31, 2015, the inventory was impaired and valued at $0. The Company had no inventory as of June 30, 2016.
Identifiable Intangible Assets	(J) Identifiable Intangible Assets ASC 350 prescribes a two-step process for impairment testing of goodwill and intangibles with indefinite lives, which is performed annually, as well as when an event triggering impairment may have occurred. ASC 350 also allows preparers to qualitatively assess goodwill impairment through a screening process which would permit companies to forgo Step 1 of their annual goodwill impairment process. This qualitative screening process will hereinafter be referred to as "Step 0". Goodwill and intangible assets deemed to have an indefinite life are tested for impairment on an annual basis, or earlier when events or changes in circumstances suggest the carrying amount may not be fully recoverable. The Company has elected to perform its annual assessment on $16,796,237 of intangible assets. For the year ended December 31, 2015, $15,703,616 impairment loss has been recorded due to a change in business model, this being significantly impacted by the impairment of Liquid Spins assets, as digital music sales are no longer relevant in today’s market for the following assets: Net Cost Impairment Loss Balance as of June 30, 2016 Trademarks $ 7,500,000 $ (6,630,419 ) 869,581 Distribution rights 7,372,561 (7,372,561 ) — Licensing Rights 1,923,401 (1,700,393 ) 223,008 Other 275 (243 ) 32 $ 16,796,237 (15,703,616 ) 1,036,231 As of June 30, 2016 and December 31, 2015, $826,102 and $869,581, respectively, of costs related to registering a trademark and acquiring technology rights [audio technology known as Max Audio Technology (MAXD)] have been capitalized. It has been determined that the trademark and technology rights have an indefinite useful life and are not subject to amortization. However, the trademark and technology rights will be reviewed for impairment annually or more frequently if impairment indicators arise. As a result of this review, the Company recorded an impairment loss of $6,630,419 that is recorded as impairment loss on intangible asset for the year ended December 31, 2015. On November 15, 2012, the Company acquired the rights to assets and audio technology known as Liquid Spins, Inc. through a share exchange, whereby the Company issued 24,752,475 shares of common stock for their rights in Liquid Spins technology. As of June 30, 2016 and December 31, 2015, $0 and $0, respectively, of costs related to this intangible remain capitalized. The technology was placed in service on August 23, 2013 with a useful life of 10 years. During 2015, the Company the reviewed the intangible asset for impairment and determined that certain items had been impaired due to obsolescence. As a result of this review, the Company recorded an impairment loss of $7,372,562 that is recorded as impairment loss on intangible asset. On May 19, 2014, the Company entered into an agreement with VSL Communications to acquire the rights to intellectual property titled “Optimized Data Transmission System and Method” (“ODT”) through a cash payment of $500,000 in addition to a share issuance, whereby the Company issued 10,000,000 shares of common stock, valued at $1,000,000 ($0.10/share). In exchange, the Company received a perpetual, exclusive, worldwide license to the ODT technology for all fields of use. In addition, the Company issued 1,000,000 shares of common stock, valued at $120,000 ($0.12/share), as compensation for the introduction and identification of a seller based on the agreement dated April 10, 2014. As of June 30, 2016and December 31, 2015, $178,438 and $187,830, respectively, of costs related to the “ODT” intangible asset remains capitalized. The technology will be reviewed for impairment annually or more frequently if impairment indicators arise. As a result of this review, the Company recorded an impairment loss of $1,432,170 that is recorded as impairment loss on intangible asset for the year ended December 31, 2015 In connection with this agreement, the Company is obligated to make an additional five (5) payments totaling $1,000,000 to be made every 30 days, with the thirty (30) day periods to be waived if fund raising occurs on an anticipated faster time line. The payments of additional cash are contingent on the following funding criteria: ● The Company shall pay set increments of cash based on a percentage of gross funds received through funds raised. ● The Company shall pay 20% of such monies as soon as they are received. In connection with funds raised through June 30, 2016, the Company recorded a liability and expensed $1,096,510 as royalty cost, related to the 20% fee, as of June 30, 2016 $30,000, has been paid. The remaining liability as of June 30, 2016, is $1,060,845 and is included in accounts payable. The Company shall act as the exclusive agent to facilitate and negotiate any opportunities on behalf of ODT to Companies, Organizations and other qualified entities. Upon any closing, ODT shall receive 50% of gross dollars and the Company shall receive the other 50% at the time of a completion of any transaction opportunity, including legal settlements after subtracting applicable contingent legal fees. The term of the agreement is for the life of the acquired intellectual property. As a result of this review, the Company recorded an impairment loss of $6,630,419 on intangible asset during the year ended December 31, 2016. On August 11, 2014, the Company and VSL simultaneously filed trade secret and patent infringement actions against Google, Inc. and its subsidiaries, YouTube, LLC and On2 Technologies, Inc., relating to proprietary and patented technology owned by Vedanti Systems Limited, a subsidiary of VSL. The patent infringement complaint was brought in U.S. District Court for the District of Delaware and the trade secret suit was filed in Superior Court of California, County of Santa Clara. The lawsuits contend that, in 2010, while Google was in discussions with Vedanti about the possibility of acquiring Vedanti's patented digital video streaming techniques and other proprietary methods, Google gained access to and received technical guidance regarding Vedanti’s proprietary codec, a computer program capable of encoding and decoding a digital data stream or signal. The complaints allege that soon after the two companies initiated negotiations, Google began implementing Vedanti's technology into its own WebM/VP8 video codec without informing Vedanti, and without compensating Vedanti for its use. Plaintiffs are seeking a permanent injunction against Google, compensatory damages, as well as treble damages. As exclusive agent to VSL to enforce all rights with respect to the subject technology, the Company has hired Grant &Eisenhofer, PA to represent the Company and VSL in the suits. On November 24, 2015 the District Court entered an order granting the Google defendants’ motion to dismiss. The Company timely filed its notice of appeal with the appeals court on February 22, 2016. The two issues on appeal are, (i) whether the district court erred by granting the Google defendants’ motion to dismiss the Company’s lawsuit on the ground that the Company lacked standing to sue the Google defendants for infringement of the 339 patent, and (ii) whether the district court erred by denying the Company’s motion for leave to amend the complaint and add as a party VSL, a former licensee of the 339 patent to cure any defect in prudential standing to the extent VSL is a necessary party. These cases will be vigorously prosecuted and the Company believes it has a good likelihood of success. On May 22, 2014, the Company entered into a five (5) year agreement to acquire the rights to intellectual property titled “Engineered Architecture” (“EA Technology”) through a cash payment of $50,000 in addition to a share issuance, whereby the Company issued 4,000,000 shares of common stock, valued at $394,000 ($0.0985/share). In exchange, the Company received for the term of the agreement, the exclusive worldwide right to use the EA Technology. As of June 30, 2016 and December 31, 2015, $31,660 and $35,178, respectively of costs related to this intangible remains capitalized. The technology will be reviewed for impairment annually or more frequently if impairment indicators arise. As a result of this review, the Company recorded an impairment loss of $268,223 on intangible asset for the year ended December 31, 2015. In connection with this agreement, the Company is obligated to make an additional five (5) payments totaling $500,000 to be made every 30 days, with the thirty (30) day periods to be waived if fund raising occurs on an anticipated faster time line. The payments of additional cash are contingent on the following funding criteria: ● The Company shall pay set increments of cash based on a percentage of gross funds received through funds raised. ● The Company shall pay 10% of such monies as soon as they are received. In connection with funds raised through June 30, 2016, the Company recorded a liability and expensed $548,255 as royalty cost, related to the 10% fee, as of June 30 , 2016, $40,000 has been paid. The remaining liability as of June 30, 2016, is $515,423 and is included in accounts payable. The Company shall act as the exclusive agent to facilitate and negotiate any opportunities on behalf of EA Technology to Companies, Organizations and other qualified entities. Upon any closing, EA shall receive 50% of gross dollars and the Company shall receive the other 50% at the time of a completion of any transaction opportunity, including legal settlements after subtracting applicable contingent legal fees. In the event the Company sublicenses EA to other entities, profits shall be split evenly 50%/50%.
Impairment of Long-Lived Assets	(K) Impairment of Long-Lived Assets and Intangible Assets with Definite Life The Company accounts for its long-lived assets in accordance with ASC Topic 360-10-05, “Accounting for the Impairment or Disposal of Long-Lived Assets.” ASC Topic 360-10-05 requires that long-lived assets, such as technology rights, be reviewed for impairment annually, or whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposable value. The Company recorded $0, $0 and $15,703,617 in impairment of the intangible asset for the three and six months ended June 30, 2016 and the year ended December 31, 2015, respectively (See Note 1J).
Loss Per Share	(L) Loss Per Share In accordance with accounting guidance now codified as FASB ASC Topic 260, “Earnings per Share,” The computation of basic and diluted loss per share for the years ended June 30, 2016 and 2015 excludes the common stock equivalents of the following potentially dilutive securities because their inclusion would be anti-dilutive: June 30, 2016 June 30, 2015 Stock Warrants (Exercise price - $0.25 - $.52/share) 21,070,690 — Stock Options (Exercise price - $0.10 - $.50/share) 2,866,652 — Convertible Debt (Exercise price - $0.07 - $.0817/share) 1,700,859,726 134,002,173 Series A Convertible Preferred Shares ($0.0/share) 125,000,000 125,000,000 Total 1,849,797,068 259,002,173
Income Taxes	(M) Income Taxes The Company accounts for income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25”) Income Taxes. Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company's federal income tax returns are no longer subject to examination by the IRS for the years prior to 2011, and the related state income tax returns are no longer subject to examination by state authorities for the years prior to 2010.
Business Segments	(N) Business Segments The Company operates in one segment and therefore segment information is not presented.
Recent Accounting Pronouncements	(N) Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Interest–Imputation of Interest (Subtopic 835-30) (“ASU 2015-03”), which changes the presentation of debt issuance costs in financial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. It is effective for annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The new guidance will be applied retrospectively to each prior period presented. The Company is currently in the process of evaluating the impact of adoption of ASU 2015-03 on its balance sheets. All other newly issued accounting pronouncements but not yet effective have been deemed either immaterial or not applicable.
Fair Value of Financial Instruments	(P) Fair Value of Financial Instruments The carrying amounts on the Company’s financial instruments including intangible assets, accounts payable, derivative liability, convertible note payable, and note payable, approximate fair value due to the relatively short period to maturity for these instruments. We adopted accounting guidance for financial and non-financial assets and liabilities (ASC 820). The adoption did not have a material impact on our results of operations, financial position or liquidity. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use. The following are the major categories of liabilities measured at fair value on a recurring basis: as of June 30, 2016 and December 31, 2015, using quoted prices in active markets for identical liabilities (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3): June 30, 2016 December 31, 2015 Fair Value Measurement Using Fair Value Measurement Using Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative Liabilities — 5,253,141 — 5,253,141 — 3,684,184 — 3,684,184 Intangible Assets — 1,036,230 — 1,036,230 — 1,092,621 — 1,092,621
Stock-Based Compensation	(Q) Stock-Based Compensation In December 2004, the FASB issued FASB Accounting Standards Codification No. 718, Compensation - Stock Compensation. Under FASB Accounting Standards Codification No. 718, companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to provide services. Share-based compensation arrangements include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. As such, compensation cost is measured on the date of grant at their fair value. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. The Company applies this statement prospectively. Equity instruments (“instruments”) issued to other than employees are recorded on the basis of the fair value of the instruments, as required by FASB Accounting Standards Codification No. 718. FASB Accounting Standards Codification No. 505, Equity Based Payments to Non-Employees defines the measurement date and recognition period for such instruments. In general, the measurement date is when either a (a) performance commitment, as defined, is reached or (b) the earlier of (i) the non-employee performance is complete or (ii) the instruments are vested. The measured value related to the instruments is recognized over a period based on the facts and circumstances of each particular grant as defined in the FASB Accounting Standards Codification.
Reclassification	(R) Reclassification Certain amounts from prior periods have been reclassified to conform to the current period presentation. These reclassifications had no impact on the Company's net loss or cash flows.
Derivative Financial Instruments	(S) Derivative Financial Instruments Fair value accounting requires bifurcation of embedded derivative instruments such as conversion features in convertible debt or equity instruments, and measurement of their fair value for accounting purposes. In determining the appropriate fair value, the Company uses the Black-Scholes option-pricing model. In assessing the convertible debt instruments, management determines if the convertible debt host instrument is conventional convertible debt and further if there is a beneficial conversion feature requiring measurement. If the instrument is not considered conventional convertible debt, the Company will continue its evaluation process of these instruments as derivative financial instruments. Once determined, derivative liabilities are adjusted to reflect fair value at each reporting period end, with any increase or decrease in the fair value being recorded in results of operations as an adjustment to fair value of derivatives. In addition, the fair value of freestanding derivative instruments such as warrants, are also valued using the Black-Scholes option-pricing model.
Original Issue Discount	(T) Original Issue Discount For certain convertible debt issued, the Company provides the debt holder with an original issue discount. The original issue discount is recorded to debt discount, reducing the face amount of the note and is amortized to interest expense over the life of the debt.
Debt Issue Costs and Debt Discount	(U) Debt Issue Costs and Debt Discount The Company may pay debt issue costs, and record debt discounts in connection with raising funds through the issuance of convertible debt. These costs are amortized to interest expense over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.
Licensing & Distribution	(V) Licensing & Distribution On June 20, 2015, the Company entered into a license agreement with Santok LTD of United Kingdom (“Santok). The term of the agreement is three years. Santok will pay the Company a royalty fee of $1.50 for each licensed product. Santok guarantees to the Company a minimum total of 150,000 cumulative licensed product installation with a minimum total guaranteed value of $225,000 over the three years of the agreement. If the total royalty paid is less than the guaranteed value, Santok will pay the difference. On July 13, 2015, the Company entered into a license agreement with Luna Mobile, Inc. of United States (“Luna). The term of the agreement is three years. Luna will pay the Company a royalty fee of $1.50 for each licensed product manufactured and sold.

Summary of Significant Accoun17

Summary of Significant Accounting Policies and Organization (Tables)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Summary of potentially dilutive securities	June 30, 2016 June 30, 2015 Stock Warrants (Exercise price - $0.25 - $.52/share) 21,070,690 — Stock Options (Exercise price - $0.10 - $.50/share) 2,866,652 — Convertible Debt (Exercise price - $0.07 - $.0817/share) 1,700,859,726 134,002,173 Series A Convertible Preferred Shares ($0.0/share) 125,000,000 125,000,000 Total 1,849,797,068 259,002,173
Fair Value of Financial Instruments	June 30, 2016 December 31, 2015 Fair Value Measurement Using Fair Value Measurement Using Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative Liabilities — 5,253,141 — 5,253,141 — 3,684,184 — 3,684,184 Intangible Assets — 1,036,230 — 1,036,230 — 1,092,621 — 1,092,621
Identifiable Intangible Assets	Net Cost Impairment Loss Balance as of June 30, 2016 Trademarks $ 7,500,000 $ (6,630,419 ) 869,581 Distribution rights 7,372,561 (7,372,561 ) — Licensing Rights 1,923,401 (1,700,393 ) 223,008 Other 275 (243 ) 32 $ 16,796,237 (15,703,616 ) 1,036,231

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Summary of Convertable Debt	As of As of June 30, 2016 December 31, 2015 Line of credit - related party $ 473 $ 473 Convertible debt 4,773,876 4,634,852 Less: debt discount (2,056,408 ) (2,658,213 ) Convertible debt - net 2,717,468 1,976,639 Demand note 60,000 Total current debt 2,777,941 $ 1,977,112
Line of Credit Related Party	Principal Interest Rate Maturity Balance - December 31, 2015 $ 473 Borrowings during the six months ended June 30, 2016 — 4 % September 26, 2016 Interest accrual — Repayments — Balance - June 30, 2016 $ 473 4 % September 26, 2016
Accounts Payable
Convertible Debt	Six months ended Year ended June 30, 2016 December 31, 2015 Amount of Amount of Principal Raised Principal Raised Interest Rate 0% - 10% 0% - 10% Default interest rate 14% - 22% 14% - 22% Maturity February 26, 2015 - November 23, 2017 February 26, 2015 - November 23, 2017 Conversion terms 1 65% of the “Market Price”, which is the average of the lowest three (3) trading prices for the common stock during the ten (10) trading day period prior to the conversion. 3,542,400 2,104,000 Conversion terms 2 65% of the “Market Price”, which is the lowest trading prices for the common stock during the ten (10) trading day period prior to the conversion. 465,416 420,410 Conversion terms 3 70% of the “Market Price”, which is the average of the lowest three (3) trading prices for the common stock during the fifteen (15) trading day period prior to the conversion. — 111,111 Conversion terms 4 75% of the “Market Price”, which is the average of the lowest three (3) trading prices for the common stock during the ten (10) trading day period prior to the conversion. 765,000 787,778 Conversion terms 5 60% of the “Market Price”, which is the lowest trading prices for the common stock during the fiften (15) trading day period prior to the conversion. — 35,000 Conversion terms 6 Conversion at $0.10 per share — 135,200 Conversion terms 7 60% of the “Market Price”, which is the lowest trading prices for the common stock during the ten (10) trading day period prior to the conversion. — 282,000 Conversion terms 8 65% of the “Market Price”, which is the two lowest trading prices for the common stock during the ten (10) trading day period prior to the conversion. 1,060 390,778 Conversion terms 9 65% of the “Market Price”, which is the two lowest trading prices for the common stock during the fifteen (15) trading day period prior to the conversion. — 150,250 Conversion terms 10 65% of the “Market Price”, which is the lowest trading prices for the common stock during the fifteen (15) trading day period prior to the conversion. — 218,325 Convertible Debt 4,773,876 4,634,852 Less: Debt Discount (2,056,408 ) (2,658,213 ) Convertible Debt - net $ 2,717,468 $ 1,976,639
Convertable Debt Terms	Convertible Debt Balance as of December 31, 2015 4,634,852 4% - 10% February 26, 2015 - November 23, 2017 Borrowings during the six months ended June 30, 2016 2,289,101 8% - 10% Non-Cash Reclassification of accrued interest converted 55,163 Repayments (1,197,096 ) Conversion of debt to into 400,741,998 shares of common stock with a valuation of $1,000,029 ($0.017 - $0.042/share) including the accrued interest of $55,163 (1,000,029 ) Reclassification into a demand note — Convertible Debt Balance as of 3/31/16 4,781,991 4% - 10% February 26, 2015 - November 23, 2017
Debt Issue Costs	Six Months Ended Six Months Ended June 30, 2016 June 30, 2015 Debt issue costs $ 195,113 103,738 Accumulated amortization of debt issue costs (184,677 ) (56,811 ) Debt issue costs - net $ 10,436 46,927
Debt Discount	Six Months Ended Year Ended June 30, 2016 December 31, 2015 Debt discount $ 9,290,998 7,042,922 Accumulated amortization of debt discount (7,234,590 ) (4,384,709 ) Debt discount - Net $ 2,056,408 2,658,213

Convertible Debt - Derivative19

Convertible Debt - Derivative Liabilities (Tables)	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Fair Value of the Conversion Feature	Derivative Liability -December 31, 2015 $ 3,684,184 Fair value at the commitment date for convertible instruments 4,696,124 Fair value at the commitment date for warrants issued 91,556 Change in fair value of embedded derivative liability for warrants issued (20,313 ) Change in fair value of embedded derivative liability for convertible instruments (55,984 ) Reclassification to additional paid in capital for financial instruments that ceased to be a derivative liability (1,111,782 ) Change from repayments (2,030,644 ) Derivative Liability -June 30, 2016 $ 5,253,141
Management Assumptions	Commitment Date Re-measurement Date Expected dividends: — — Expected volatility: 133% - 262% 150% -268.842% Expected term: 0.41 - 3 Years 0.12–2.91 Years Risk free interest rate: 0.06% - 1.31% 0.04% - .1.58%
Management Assumptions	Commitment Date Re-measurement Date Expected dividends: — — Expected volatility: 133% - 221% 177% -238.77% Expected term: 0.41 - 3 Years 0.12–2.9 Years Risk free interest rate: 0.06% - 1.31% 0.12% - .1.31%

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Summary of property and equipment	June 30, 2016 December 31, 2015 Website Development $ 294,795 $ 294,795 Furniture and Equipment 117,183 112,220 Leasehold Improvements 6,708 6,573 Software 54,598 53,897 Music Equipment 2,578 2,578 Office Equipment 80,710 80,110 Domain Name 1,500 1,500 Sign 628 628 Total 558,700 552,301 Less: accumulated depreciation and amortization (461,838 ) (421,340 ) Property and Equipment, Net $ 96,862 $ 130,961

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Summary of Common Stock	Transaction Type Quantity Valuation Range of Value per share Conversion of convertible debt and accrued interest 400,741,998 $ 1,000,029 $0.00143 to- $0.00869 Services - rendered 12,000,000 105,600 $0.12-$0.009 Total shares issued 412,741,998 $ 1,105,629
Summary of warrants activity	Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Balance, December 31, 2015 5,550,000 $ 0.25 1.5 Granted 20,020,690 Exercised — Cancelled/Forfeited (4,500,000 ) Balance, June 30, 2016 21,070,690 $ 0.01 2.5
Summary of all outstanding and exercisable warrants	Weighted Average Exercise Warrants Warrants Remaining Aggregate Price Outstanding Exercisable Contractual Life Intrinsic Value $ 0.01 2,000,000 2,000,000 2.66 $- $ 0.005 1,000,000 1,000,000- 2.91- $- $ 0.0029 8,620,690 8,620,690 2.75 $- $ 0.006 5,600,000 5,600,000 2.89 $ $ 0.12 2,000,000 2,000,000 2.27 $- $ 0.40 1,850,000 1,850,000 0.53 $- 21,070,690 21,070,690 2.5 $-
Summary of Stock Options	Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Outstanding - December 31, 2015 15,566,652 $ 0.13 1.32 Granted — $ — — Exercised — $ — — Forfeited or Canceled (12,700,000 ) $ — — Outstanding – June 30, 2016 2,866,652 $ 0.13 1.02 Exercisable - June 30, 2016 2,866,652

Summary of Significant Accoun22

Summary of Significant Accounting Policies and Organization (Details) - shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Preferred Stock
Summary of potentially dilutive securities
Potentially dilutive securities	125,000,000
Convertible Debt Securities [Member]
Summary of potentially dilutive securities
Potentially dilutive securities	1,700,859,726	134,002,173
Equity Option [Member]
Summary of potentially dilutive securities
Potentially dilutive securities	2,866,652
Warrant [Member]
Summary of potentially dilutive securities
Potentially dilutive securities	21,070,690

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Notes to Financial Statements
Net Loss	$ (286,700)	$ (2,831,325)	$ (7,328,056)	$ (4,804,748)
Working Capital Deficit			(70,623,088)
Cash Flow from Operations			$ (1,160,894)

Debt - Summary of Convertable D

Debt - Summary of Convertable Debt (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Line of credit - related party	$ 473	$ 473
Convertible debt	4,773,876	4,634,852
Less: debt discount	(2,056,408)	(2,658,213)
Convertible debt - net	2,717,467	1,976,639
Total current debt	$ 2,777,941	$ 1,977,112

Debt - Convertible Debt (Detail

Debt - Convertible Debt (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
Debt Disclosure [Abstract]
Borrowings during period	$ 2,289,101
Repayments	(1,197,096)
Conversion of debt to into 400,741,998 shares of common stock with a valuation of $1,000,029 ($0.017 - $0.042/share) including the accrued interest of $55,163	$ (1,000,029)

Debt - Debt Issue Costs (Detail

Debt - Debt Issue Costs (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Debt Disclosure [Abstract]
Debt issue costs	$ 195,113	$ 103,738
Accumulated amortization of debt issue costs	(184,677)	(56,811)
Debt issue costs - net	$ 10,436	$ 46,927

Debt - Debt Discount (Details)

Debt - Debt Discount (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Debt Disclosure [Abstract]
Debt discount	$ 9,290,998	$ 7,042,922
Accumulated amortization of debt discount	(7,234,590)	(4,384,709)
Debt discount - Net	$ 2,056,408	$ 2,658,213

Debt - Schedule Of Debt Instrum

Debt - Schedule Of Debt Instruments (Details) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Conversion Terms 1
Conversion Terms		65% of the “Market Price”, which is the average of the lowest three (3) trading prices for the common stock during the ten (10) trading day period prior to the conversion.	65% of the “Market Price”, which is the average of the lowest three (3) trading prices for the common stock during the ten (10) trading day period prior to the conversion.
Amount of Principle Raised		$ 3,542,400	$ 2,104,000
Conversion Terms 2
Conversion Terms		65% of the “Market Price”, which is the lowest trading prices for the common stock during the ten (10) trading day period prior to the conversion.	65% of the “Market Price”, which is the lowest trading prices for the common stock during the ten (10) trading day period prior to the conversion.
Amount of Principle Raised		$ 465,416	$ 420,410
Conversion Terms 3
Conversion Terms		70% of the “Market Price”, which is the average of the lowest three (3) trading prices for the common stock during the fifteen (15) trading day period prior to the conversion.	70% of the “Market Price”, which is the average of the lowest three (3) trading prices for the common stock during the fifteen (15) trading day period prior to the conversion.
Amount of Principle Raised			$ 111,111
Conversion Terms 4
Conversion Terms		75% of the “Market Price”, which is the average of the lowest three (3) trading prices for the common stock during the ten (10) trading day period prior to the conversion.	75% of the “Market Price”, which is the average of the lowest three (3) trading prices for the common stock during the ten (10) trading day period prior to the conversion.
Amount of Principle Raised		$ 765,000	$ 787,778
Conversion Terms 5
Conversion Terms		60% of the “Market Price”, which is the lowest trading prices for the common stock during the fifteen  (15) trading day period prior to the conversion.	60% of the “Market Price”, which is the lowest trading prices for the common stock during the fifteen  (15) trading day period prior to the conversion.
Amount of Principle Raised			$ 35,000
Conversion Terms 6
Conversion Terms		Conversion at $0.10 per share	Conversion at $0.10 per share
Amount of Principle Raised			$ 135,200
Conversion Terms 7
Conversion Terms		60% of the “Market Price”, which is the lowest trading prices for the common stock during the ten (10) trading day period prior to the conversion.	60% of the “Market Price”, which is the lowest trading prices for the common stock during the ten (10) trading day period prior to the conversion.
Amount of Principle Raised			$ 282,000
Conversion Terms 8
Conversion Terms		65% of the “Market Price”, which is the two lowest trading prices for the common stock during the ten (10) trading day period prior to the conversion.	65% of the “Market Price”, which is the two lowest trading prices for the common stock during the ten (10) trading day period prior to the conversion.
Amount of Principle Raised			$ 390,778
Conversion Terms 9
Conversion Terms		65% of the “Market Price”, which is the two lowest trading prices for the common stock during the fifteen (15) trading day period prior to the conversion.	65% of the “Market Price”, which is the two lowest trading prices for the common stock during the fifteen (15) trading day period prior to the conversion.
Amount of Principle Raised			$ 150,250
Conversion Terms 10
Conversion Terms		65% of the “Market Price”, which is the lowest trading prices for the common stock during the fifteen (15) trading day period prior to the conversion.	65% of the “Market Price”, which is the lowest trading prices for the common stock during the fifteen (15) trading day period prior to the conversion.
Amount of Principle Raised			$ 218,325
Debt Instruments
Maturity	February 26, 2015 - November 23,2017		February 26, 2015 - November 23,2017

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
Summary of property and equipment
Total	$ 558,700	$ 552,301
Less: accumulated depreciation and amortization	(461,383)	(421,340)
Property & Equipment, Net	96,862	130,961
Furniture and Equipment [Member]
Summary of property and equipment
Total	117,183	112,220
Internet Domain Names [Member]
Summary of property and equipment
Total	1,500	1,500
Sign [Member]
Summary of property and equipment
Total	628	628
Office Equipment [Member]
Summary of property and equipment
Total	80,710	80,110
Computer Software, Intangible Asset [Member]
Summary of property and equipment
Total	54,597	53,897
Leasehold Improvements [Member]
Summary of property and equipment
Total	6,708	6,573
Music Equipment [Member]
Summary of property and equipment
Total	$ 2,578
Website Development [Member]
Summary of property and equipment
Total		$ 294,795	$ 294,795

Debt - Line of Credit Related P

Debt - Line of Credit Related Party (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
Debt Disclosure [Abstract]
Balance	$ 473
Borrowings, Maturity	Sep. 26, 2016
Repayments
Ending Balance	$ 473

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Common Stock (Details)	6 Months Ended
	Jun. 30, 2016USD ($)$ / sharesshares
Conversion of convertible debt and accrued interest, Shares | shares	400,741,998
Conversion of convertible debt and accrued interest, Value	$ 1,000,029
Services - rendered, Shares | shares	12,000,000
Services - rendered, Value	$ 105,600
Return of shares, Shares | shares	(120,000,000)
Return of shares, Value	$ (1,200)
Conversion of line of credit in common stock, Shares	5,000,000
Conversion of line of credit in common stock, Value	$ 150,000
Conversion of line of credit in common stock, Value per share | $ / shares	$ 0.03
Total shares issued, Shares | shares	48,868,653
Total shares issued, Value | shares	3,361,981
Maximum
Conversion of convertible debt and accrued interest, Value per share | $ / shares	$ 0.042
Services - rendered, Value per share	$ 0
Minimum
Conversion of convertible debt and accrued interest, Value per share | $ / shares	$ 0.017
Services - rendered, Value per share	$ 0

Stockholders' Equity - Summar32

Stockholders' Equity - Summary of warrants activity (Details) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Equity [Abstract]
Number of Warrants, Balance	21,070,690	5,550,000
Number of Warrants, Granted	20,020,690	13,420,690
Number of Warrants, Cancelled / Forfeited	(4,500,000)
Weighted Average Exercise Price, Balance	$ .01	$ 0.25

Stockholders' Equity - Summar33

Stockholders' Equity - Summary of all outstanding and exercisable warrants (Details) - $ / shares	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Warrants Outstanding	18,270,690		5,550,000
Warrants Exercisable	18,270,690		5,550,000
$ 0.01
Exercise Price	$ 0.01
Warrants Outstanding	2,000,000
Warrants Exercisable	2,000,000
$ 0.02
Exercise Price	$ 0.02
Warrants Outstanding	2,000,000
Warrants Exercisable	2,000,000
$ 0.0029
Exercise Price	$ 0.0029
Warrants Outstanding	8,620,690
Warrants Exercisable	8,620,690
$ 0.06
Exercise Price	$ 0.06
Warrants Outstanding	800,000
Warrants Exercisable	800,000
$ 0.12
Exercise Price	$ 0.12
Warrants Outstanding	2,000,000
Warrants Exercisable	2,000,000
$ 0.40
Exercise Price	$ 0.40
Warrants Outstanding	2,850,000
Warrants Exercisable	2,850,000
$ 0.10
Exercise Price		$ 0.10
Warrants Outstanding		200,000
Warrants Exercisable		200,000
$ 0.12
Exercise Price		$ 0.12
Warrants Outstanding		2,000,000
Warrants Exercisable		2,000,000
$ 0.40
Exercise Price		$ 0.40
Warrants Outstanding		2,850,000
Warrants Exercisable		2,850,000
$ 0.45
Exercise Price		$ 0.45
Warrants Outstanding		500,000
Warrants Exercisable		500,000

Stockholders' Equity - Summar34

Stockholders' Equity - Summary of option activity (Details)	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Equity [Abstract]
Outstanding, Shares	2,866,652
Granted
Exercized
Forfeited or Canceled	(12,700,000)
Exercisable, Shares	2,866,652
Weighted Average Excerise Price | $ / shares	$ 0.13

Intangible Assets - Summary of

Intangible Assets - Summary of Intangible Assets (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Accumulated Amortization		$ (2,415,615)
Intangible Asset, Net Carrying Value	$ 1,036,231	1,092,621
Licensing Rights		2,064,000
Licensing Rights Durantion	2,064,000
Impairment of the distribution rights		(15,703,616)
Impairment of the distribution rights Duration	(15,703,616)
Trademarks
Intangible Asset, Gross	7,500,000	7,500,000
Other Indefinite Asset
Intangible Asset, Gross	$ 275	275
Distribution Rights Member
Useful Life	10 years
Intangible Asset, Gross	$ 9,647,577	$ 9,647,577