BTCS (BTCS) 10-Q 22 Sep 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Sep. 19, 2016
Document And Entity Information
Entity Registrant Name	BTCS Inc.
Entity Central Index Key	1,436,229
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		965,756,004
Trading Symbol	BTCS
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash	$ 66,599	$ 124,535
Digital currencies	17,872	17,036
Prepaid expense and other current assets	2,078	8,902
Total current assets	86,549	150,473
Other assets:
Property and equipment, net		489,420
Investment		2,250,000
Websites	3,497	6,075
Deposits	35,996	336,885
Total other assets	39,493	3,082,380
Total Assets	126,042	3,232,853
Liabilities and Stockholders' Deficit:
Accounts payable and accrued expense	736,525	402,464
Short term loan	45,000	45,000
Convertible notes at fair value	3,840,110	1,781,156
Derivative liabilities	13,015,937	3,794,153
Derivative liabilities for shortfall of shares	14,479,363
Total current liabilities	32,116,935	6,022,773
Stockholders' deficit:
Common stock, 975,000,000 shares authorized at $0.001 par value, 236,946,578 and 170,480,545 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively	236,946	170,480
Treasury stock, at cost, 13,000,000 shares at June 30, 2016 and December 31, 2015	(4,991)	(4,991)
Additional paid in capital	22,746,996	21,831,518
Accumulated deficit	(54,969,844)	(24,786,927)
Total stockholders' deficit	(31,990,893)	(2,789,920)
Total Liabilities and Stockholders' Deficit	$ 126,042	$ 3,232,853

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, shares authorized	975,000,000	975,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares issued	236,946,578	170,480,545
Common stock, shares outstanding	236,946,578	170,480,545
Treasury stock, shares	13,000,000	13,000,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
E-commerce	$ 2,242	$ 5,252	$ 2,242	$ 6,290
Transaction verification services	119,220	139,123	310,623	175,753
Hosting	20,205		27,945
Total revenues	141,667	144,375	340,810	182,043
Power and mining expenses	(114,837)	(60,342)	(228,819)	(77,285)
Gross profit	26,830	84,033	111,991	104,758
Operating expenses:
Marketing	1,872	3,461	9,447	4,039
General and administrative	376,399	2,047,140	776,201	3,654,087
Impairment loss on fixed assets	240,853		240,853
Fair value adjustments for digital currencies	(4,868)		(9,153)
Total operating expenses	614,256	2,050,601	1,017,348	3,658,126
Net loss from operations	(587,426)	(1,966,568)	(905,357)	(3,553,368)
Other (expenses) income:
Impairment loss related to investment			(2,250,000)	(254,433)
Fair value adjustments for warrant liabilities	(9,719,017)	1,250,572	(9,221,784)	323,952
Fair value adjustments for convertible notes	(371,670)		(336,660)
Fair value adjustments for derivative liability shortfall of shares	(14,479,363)		(14,479,363)
Inducement expense				(58,380)
Interest expenses	(2,639)	(2,283)	(6,180)	(5,782)
Loss on issuance of Units	(250,000)	(531,311)	(250,000)	(1,050,911)
Loss on extinguishment of debt	(2,512,473)		(2,512,473)
Liquidated Damages	(188,500)		(188,500)
Other expenses	(32,488)	(256)	(32,600)	(470)
Total other (expenses) income	(27,556,150)	716,722	(29,277,560)	(1,046,024)
Net loss	$ (28,143,576)	$ (1,249,846)	$ (30,182,917)	$ (4,599,392)
Net loss per share, basic and diluted	$ (0.16)	$ (0.01)	$ (0.17)	$ (0.03)
Weighted average number of shares outstanding, basic and diluted	177,144,561	167,874,601	173,812,553	162,971,575

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Net Cash from operating activities:
Net loss	$ (30,182,917)	$ (4,599,392)
Adjustments to reconcile net loss to net cash used in provided by operating activities:
Depreciation and amortization expenses	179,845	115,791
Stock based compensation		2,753,968
Change in fair value of digital currencies	(9,153)	(7,476)
Issuance of common stock for services		102,585
Issuance of derivative liability warrants for services		40,377
Loss on issuance of Units	250,000	1,050,911
Fair value adjustments for warrant liabilities	9,221,784	(323,952)
Fair value adjustments for convertible notes	336,660
Fair value adjustments for derivative liability shortfall of shares	14,479,363
Inducement expenses		58,380
Impairment loss related to investment	2,250,000	254,433
Impairment loss on fixed assets	240,853
Loss on sale of fixed assets	35,102
Loss on extinguishment of debt	2,512,473
Bad debt expense	720
Liquidated Damages	188,500
Changes in operating assets and liabilities:
Digital currencies	8,317	(22,584)
Accounts receivable	(720)
Prepaid expenses and other current assets	6,824	(7,923)
Accounts payable	(104,439)	131,895
Net cash used in operating activities	(586,788)	(452,987)
Net cash from investing activities:
Purchase of property and equipment	(19,238)	(375,603)
Sale of property and equipment, net	55,436	3,117
Refund of lease deposit	300,889	(56,700)
Investments at cost		(1,600,000)
Net cash provided by (used in) investing activities	337,087	(2,029,186)
Net cash from financing activities:
Common stock repurchase		(2,500)
Net proceeds from exercise of warrant	91,765
Net proceeds from issuance of Private Placement Units		2,695,500
Net proceeds from issuance of Private Placement Units from related party		50,000
Proceeds from short term loan		45,000
Proceeds from issuance of convertible notes, net	100,000
Payment on short term loan to related party		(7,990)
Net cash provided by financing activities	191,765	2,780,010
Net decrease in cash	(57,936)	297,837
Cash, beginning of period	124,535	5,403
Cash, end of period	66,599	303,240
Supplemental disclosure of non-cash financing and investing activities:
Conversion of Series C Convertible Preferred to common stock		2,200
Issuance of common stock for fixed assets purchases		48,626
Conversion of accounts payable to common stock		246,924
Issuance of common stock for investment		154,433
Cashless warrant exercise	12,500
Conversion of convertible notes to common stock	$ 890,179

Business Organization and Natur

Business Organization and Nature of Operations	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Organization and Nature of Operations	Note 1 - Business Organization and Nature of Operations BTCS Inc. (formerly Bitcoin Shop, Inc.), a Nevada Corporation (the “Company”) in February 2014 entered the business of hosting an online ecommerce marketplace where consumers can purchase merchandise using digital currencies, including bitcoin and is building a diversified company with operations in the blockchain and digital currency ecosystems. In January 2015, the Company began a rebranding campaign using its BTCS.COM domain (shorthand for Blockchain Technology Consumer Solutions) to better reflect its broadened strategy. The Company released its new website which included broader information on its strategy, and access to its ecommerce site. In late 2014 we shifted our focus towards our transaction verification service business, also known as bitcoin mining. Although we continue to support our ecommerce marketplace we are no longer developing or actively marketing it and our support of the ecommerce marketplace is limited. On July 20, 2016, BTCS Digital Manufacturing (“DM”), a wholly owned subsidiary the Company suspended its North Carolina transaction verification services facility operations. The recent reduction in the block reward from 25 bitcoins to 12.5 bitcoins, often referred to as the halving, coupled with the facilities cooling system failing, has resulted in DM being unable to meet certain of its financial commitments. The Company is pursuing the following options: i) seeking additional capital to potentially bring DM back online; ii) a possible sale of DM; iii) and permanently winding down DM’s operations. If the Company ceases operations at DM, it may relocate its transaction verification services business to others data centers which may be more appropriate for the Company’s current scale of operations. On August 8, 2016, DM discovered that its facility in North Carolina was broken into and certain of its equipment and approximately 165 Bitmain transaction verification servers leased from CSC Leasing Company were stolen. The value of the stolen equipment owned by the Company does not appear to be material. The Company has reported the theft to local authorities as well its insurance company regarding next steps. The Company was incorporated in the State of Nevada in 2008 under the name “Hotel Management Systems, Inc.”. On February 5, 2014, the Company entered into an Exchange Agreement with BitcoinShop.us, LLC, a Maryland limited liability company (“BCSLLC”), and the holders of the membership interests in BCSLLC. Upon closing of the Share Exchange, BCSLLC Members transferred all the outstanding membership interests of BCSLLC to the Company in exchange for an aggregate of 100,773,923 shares of the Company’s common stock (the “Reverse Merger”). As a result, BCSLLC became a wholly-owned subsidiary of the Company. Immediately following the Share Exchange with BCSLLC, the Company discontinued its business as manufacturer of touch screen and touch board products, interactive whiteboard displays and large touch-screens. The Company is an early entrant in the digital currency market and one of the first U.S. publicly traded companies to be involved with digital currencies. The Company currently operates a beta ecommerce marketplace which already accepts a variety of digital currencies, and has been operating its transaction verification services business, which generate bitcoins (i.e. bitcoin mining).

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 2 - Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Form 10-Q and the rules and regulations of the SEC. Accordingly, since they are interim statements, the accompanying condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements, but reflect all adjustments consisting of normal, recurring adjustments, that are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. In the opinion of the Company’s management, all adjustments, consisting of only normal and recurring adjustments, necessary for a fair presentation of the financial position and the results of operations for the periods presented have been included. Interim results are not necessarily indicative of results for a full year. The condensed consolidated financial statements and notes should be read in conjunction with the financial statements and notes for the year ended December 31, 2015.

Liquidity, Financial Condition

Liquidity, Financial Condition and Management's Plans	6 Months Ended
	Jun. 30, 2016
Liquidity Financial Condition And Managements Plans
Liquidity, Financial Condition and Management's Plans	Note 3 - Liquidity, Financial Condition and Management’s Plans For the six months ended June 30, 2016 and 2015, the Company recognized a net loss of approximately $30.2 million and a net loss of approximately $4.6 million, respectively. The Company had cash and cash equivalents of approximately $67,000 and a working capital deficiency of approximately $32.0 million at June 30, 2016, which includes $27.5 million for the fair value of derivative liabilities. The Company expects to incur losses into the foreseeable future as it undertakes its efforts to execute its business plans. The Company will require significant additional capital to sustain its short-term operations and make the investments it needs to execute its longer term business plan. The Company’s existing liquidity is not sufficient to fund its operations and anticipated capital expenditures for the foreseeable future. The Company is currently seeking to obtain additional debt or equity financing, however there are currently no commitments in place for further financing nor is there any assurance that such financing will be available to the Company on favorable terms, if at all. Because of recurring operating losses, net operating cash flow deficits, and an accumulated deficit, there is substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has not made adjustments to the accompanying consolidated financial statements to reflect the potential effects on the recoverability and classification of assets or liabilities should the Company be unable to continue as a going concern. The Company continues to incur ongoing administrative and other operating expenses, including public company expenses, in excess of revenues. While the Company continues to implement its business strategy, it intends to finance its activities by: ● managing current cash and cash equivalents on hand from the Company’s past debt and equity offerings, by controlling costs, and ● seeking additional financing through sales of additional securities.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 4 - Summary of Significant Accounting Policies A summary of the significant accounting policies applied in the preparation of the accompanying condensed consolidated financial statements is as follows: Transaction Verification Services Revenue earned from bitcoin processing activities (“Transaction Verification Services”), commonly termed ‘mining’ activities, is recognized at the fair value of the bitcoins received as consideration on the date of actual receipt. The Company generates revenue by performing computer processing activities for bitcoin generation. In the digital-currency industry such activity is generally referred to as Transaction Verification Services or bitcoin mining. The Company receives consideration for performing such transaction verification activities in the form of bitcoins. Revenue is recorded upon the actual receipt of bitcoins. Expenses consist of utilities paid to cover our electric costs, rent for our facility and personnel to run our facility. The expenses related to our Transaction Verification Services activities are affected by the level of activities and not the ultimate generation of bitcoins. The Company expenses these costs as they are incurred. Net Loss per Share Basic loss per share is computed by dividing net loss applicable to common stock by the weighted-average number of common shares outstanding during the period. For purposes of calculating basic and diluted earnings per share, vested restricted stock awards are considered outstanding. Under the treasury stock method, diluted loss per share reflects the potential dilution that could occur if securities or other instruments that are convertible into common stock were exercised or could result in the issuance of common stock. The following financial instruments were not included in the diluted loss per share calculation as of June 30, 2016 and 2015 because their effect was anti-dilutive: June 30, 2016 June 30, 2015 Stock options - 12,450,000 Warrants 1,184,186,577 22,991,679 Convertible notes 274,376,241 - Favored Nations 474,752,455 - Excluded potentially dilutive securities 1,933,315,273 35,441,679 Recent Accounting Pronouncements In January 2016, FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, FASB issued ASU No. 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customer In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments Subsequent events Subsequent events have been evaluated through the date of this filing.

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Note 5 - Property and Equipment Property and equipment consist of the following at June 30, 2016 and December 31, 2015: June 30, 2016 December 31, 2015 Equipment $ - $ 109,493 Computer - 3,086 Leasehold improvement - 242,091 Transaction verification servers - 451,281 - 805,951 Accumulated depreciation - (316,531 ) Property and equipment, net $ - $ 489,420 Depreciation expense was approximately $84,000 and $68,000 for the three months ended June 30, 2016 and 2015, respectively, and $177,000 and $114,000 for the six months ended June 30, 2016 and 2015, respectively. During the six months ended June 30, 2016, the Company purchased fixed assets of approximately $19,000, sold fixed assets amounting to approximately $55,000, resulting in loss on sale of fixed assets of $35,000. Due to the financial nature of the Company as of June 30, 2016, the Company impaired all fixed assets and recorded an approximately $241,000 impairment charge during the three months ended June 30, 2016.

Investment at Cost

Investment at Cost	6 Months Ended
	Jun. 30, 2016
Schedule of Investments [Abstract]
Investment at Cost	Note 6 - Investment at Cost Spondoolies The Company had total investment of approximately $2.3 million to Spondoolies Tech Ltd. (“Spondoolies”) as of December 31, 2015. On May 5, 2016, the Company was informed that, on May 4, 2016, a hearing was held in the district court in Beersheva, Israel during which certain parties sought appointment of a temporary liquidator for Spondoolies. As a result of the liquidation the Company is no longer pursuing the acquisition of Spondoolies. The Company assessed impairment for the Spondoolies investment and determined that this investment is not recoverable and as such fully impaired. During the six months ended June 30, 2016, the Company recorded impairment loss of approximately $2.3 million.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 7 - Fair Value Measurements The Company’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy. The following table presents information about the Company’s liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of June 30, 2016 and December 31, 2015: Fair value measured at June 30, 2016 Total carrying value at June 30, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2016 (Level 1) (Level 2) (Level 3) Assets: Digital Currencies $ 17,872 $ 17,872 $ - $ - Liabilities: Derivative Liabilities $ 13,015,937 $ - $ - $ 13,015,937 Derivative liabilities for shortfall of shares 14,479,363 - - 14,479,363 Convertible notes at fair value 3,840,110 - - 3,840,110 Fair value measured at December 31, 2015 Total carrying value at December 31, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2015 (Level 1) (Level 2) (Level 3) Assets: Digital Currencies $ 17,036 $ 17,036 $ - $ - Liabilities: Derivative Liabilities $ 3,794,153 $ - $ - $ 3,794,153 Convertible notes at fair value 1,781,156 1,781,156 There were no transfers between Level 1, 2 or 3 during the six months ended June 30, 2016. The following table presents additional information about Level 3 assets and liabilities measured at fair value. Both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the Level 3 category. As a result, the unrealized gains and losses for assets and liabilities within the Level 3 category may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs. Changes in Level 3 liabilities measured at fair value for the six months ended June 30, 2016: Derivative liabilities Balance - January 1, 2016 $ 3,794,153 Change in fair value of derivative liability 9,221,784 Derivative liabilities Balance - June 30, 2016 $ 13,015,937 Derivative liabilities for shortfall of shares Balance - January 1, 2016 $ - Change in fair value of derivative liability shortfall of shares 14,479,363 Derivative liabilities for shortfall of shares Balance - June 30, 2016 $ 14,479,363 Convertible notes at fair value Balance - January 1, 2016 $ 1,781,156 Addition of convertible notes 100,000 Conversion of notes into common stock (890,179 ) Loss on extinguishment of debt 2,512,473 Change in fair value of convertible notes (including OID discount) 336,660 Convertible notes at fair value Balance - June 30, 2016 $ 3,840,110 The Company’s derivative liabilities are measured at fair value using the Monte Carlo simulation valuation methodology. A summary of the weighted average (in aggregate) significant unobservable inputs (Level 3 inputs) used in measuring the Company’s derivative liabilities that are categorized within Level 3 of the fair value hierarchy for the six months ended June 30, 2016 is as follows: Warrant Liabilities Date of valuation June 30, 2016 Strike price $ 0.01 Volatility (annual) 146% to 155 % Risk-free rate 0.64% to 0.93 % Contractual term (years) 0.60 to 4.5 Dividend yield (per share) 0 % Derivative Liabilities for shortfall of shares Date of valuation June 30, 2016 Strike price $ 0.01 Volatility (annual) 155.0 % Risk-free rate 0.9 % Contractual term (years) 4.0 Dividend yield (per share) 0 % Convertible Notes at Fair Value Date of valuation June 30, 2016 Strike price $ 0.01 Volatility (annual) 90.6% to 193.2 % Risk-free rate 0.02% to 0.4 % Dividend yield (per share) 0 % The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s Management.

Stock Based Compensation

Stock Based Compensation	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Based Compensation	Note 8 - Stock Based Compensation Compensation expense for all stock-based awards is measured on the grant date based on the fair value of the award and is recognized as an expense, on a straight-line basis, over the employee’s requisite service period (generally the vesting period of the equity award). The fair value of each option award is estimated on the grant date using a Black-Scholes option valuation model. Stock-based compensation expense is recognized only for those awards that are expected to vest using an estimated forfeiture rate. The Company estimates pre-vesting option forfeitures at the time of grant and reflects the impact of estimated pre-vesting option forfeitures in compensation expense recognized. For options and warrants issued to non-employees, the Company recognizes stock compensation costs utilizing the fair value methodology over the related period of benefit. Stock-based compensation expense was $0 and $1.4 million for the three months ended June 30, 2016 and 2015, respectively. Stock-based compensation expense was $0 and $2.8 million for the six months ended June 30, 2016 and 2015, respectively. Stock Options There are no stock options outstanding as of June 30, 2016 and December 31, 2015.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Note 8 - Stock Based Compensation Compensation expense for all stock-based awards is measured on the grant date based on the fair value of the award and is recognized as an expense, on a straight-line basis, over the employee’s requisite service period (generally the vesting period of the equity award). The fair value of each option award is estimated on the grant date using a Black-Scholes option valuation model. Stock-based compensation expense is recognized only for those awards that are expected to vest using an estimated forfeiture rate. The Company estimates pre-vesting option forfeitures at the time of grant and reflects the impact of estimated pre-vesting option forfeitures in compensation expense recognized. For options and warrants issued to non-employees, the Company recognizes stock compensation costs utilizing the fair value methodology over the related period of benefit. Stock-based compensation expense was $0 and $1.4 million for the three months ended June 30, 2016 and 2015, respectively. Stock-based compensation expense was $0 and $2.8 million for the six months ended June 30, 2016 and 2015, respectively. Stock Options There are no stock options outstanding as of June 30, 2016 and December 31, 2015.

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Notes Payable	Note 10 - Notes Payable On June 6, 2016, the Company, entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with certain institutional investors (the “Purchasers”), pursuant to which the Purchaser subscribed for up to $375,000 of a 20% Original Issue Discount Junior Secured Convertible Notes (the “Junior Notes”). The aggregate principal amount of the Junior Notes issued at the initial close is $125,000 and the Company received $100,000 after giving effect to the 20% original issue discount. The lead investor was granted the option to require the Company to sell the Purchasers up to two additional Junior Notes in the principal amount of $125,000 during each of the periods that begin with the Initial Closing Date and end (i) on or before 45 days from the Initial Closing Date, and (ii) on or before 90 days from the Initial Closing Date. The Junior Notes bears no interest except in the event of default which interest rate is 24% per annum upon the occurrence of an Event of Default (as defined in the Junior Notes), have a maturity date of December 5, 2016 and are convertible (principal, and interest) at any time after the issuance date of the Junior Notes into shares of the Company’s Common Stock at a conversion price equal to $0.30 per share. If an Event of Default has occurred, the Junior Note shall be convertible at 60% of the lowest closing price during the prior twenty (20) trading days of the Company’s Common Stock. The Junior Notes contains certain covenants, such as restrictions on the incurrence of indebtedness, creation of liens, payment of restricted payments, redemptions, payment of cash dividends and the transfer of assets. The Junior Notes also contains certain adjustment provisions that apply in connection with any stock split, stock dividend, stock combination, recapitalization or similar transactions. In addition, subject to limited exceptions, the Purchaser will not have the right to convert any portion of the Junior Note if the Purchaser, together with its affiliates, would beneficially own in excess of 4.99% of the number of shares of the Company’s Common Stock outstanding immediately after giving effect to its conversion. The Purchaser may not convert into or otherwise beneficially own in excess of 9.99% of the number of shares of the Company’s Common Stock outstanding immediately after giving effect to its conversion. In connection with the Company’s obligations under the Junior Notes, the Company and its subsidiaries (the “Subsidiaries”) entered into a Security Agreement, Pledge Agreement and Subsidiary Agreement with the lead investor, as agent, pursuant to which the Company and the Subsidiaries granted a lien on all assets of the Company (the “Collateral”) excluding permitted indebtedness, for the benefit of the Purchasers, to secure the Company’s obligations under the Junior Notes. Upon an Event of Default (as defined in the Junior Notes), the Purchaser may, among other things, collect or take possession of the Collateral, proceed with the foreclosure of the security interest in the Collateral or sell, lease or dispose of the Collateral. The use of proceeds from this financing are intended for general corporate purposes. The Company also reimbursed the Purchaser $5,000 for legal fees and expenses from the private placement. The issuance of the Common Stock is exempt from the registration requirements from the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) and Rule 506(b) of Regulation D thereof. The Company has not engaged in general solicitation or advertising with regard to the issuance and sale of the Common Stock and has not offered securities to the public in connection with such issuance and sale. Over the course of June 16, 2016 through June 30, 2016, the Company issued a total of 66,466,033 shares of the Company’s Common Stock for: i) the conversion of $581,000 of principal and accrued interest on the Senior Secured Convertible Notes issued December 16, 2015 (the “Senior Notes”), and ii) the exercise of warrants. The issuances were exempt from registration pursuant to Rule 506 under Regulation D, the investors are sophisticated and familiar with our operations, and there was no solicitation in connection with the issuances. The dates of the issuances and the numbers of shares issued are as follows: Issued Date Note Conversions Warrant Exercises Total June 8, 2016 0 1,000,000 1,000,000 June 10, 2016 0 300,000 300,000 June 16, 2016 5,900,000 0 5,900,000 June 17, 2016 3,250,417 0 3,250,417 June 20, 2016 9,238,446 0 9,238,446 June 21, 2016 31,452,170 0 31,452,170 June 22, 2016 0 1,000,000 1,000,000 June 28, 2016 0 1,825,000 1,825,000 June 30, 2016 0 12,500,000 12,500,000 Total Issued Shares 49,841,033 16,625,000 66,466,033 None of the securities were sold through an underwriter and accordingly, there were no underwriting discounts or commissions involved. No registration rights were granted to any of the purchasers. Following these issuances, there were 236,946,578 shares of our Common Stock issued and outstanding as of June 30, 2016. On June 22, 2016 the Company entered into a Standstill and Leak-out Agreement with all of the Senior Note holders. The Senior Note holders have agreed not to convert any Senior Notes until July 1, 2016. Thereafter, and until September 19, 2016, each Senior Note holder’s daily conversions will be limited to the greater of: (1) $7,500, and (2) five percent of the aggregate dollar value of Common Stock traded during the trading day immediately prior to the conversion date. As of the June 30, 2016 the Company did not have sufficient shares of Common Stock to fulfill its obligations with respect to its Notes and warrants and has booked a derivative liability of $14,479,363 to account for the shortfall.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Stockholders' Equity	Note 11 - Stockholders’ Equity On June 3, 2016, the Company received the last signature from investors, which investors hold 75% of the units (“Units”) sold to subscribers (“Subscribers”) in the Company private placement offering (the “Offering”) pursuant to that certain subscription agreement by and between the Company and the Subscribers dated on or around April 20, 2015 (the “Subscription Agreement”), to an amendment agreement (the “Amendment Agreement”). Pursuant to the Amendment Agreement, the Company agreed to pay, on a pro-rata basis to all subscribers that purchased Units in the Offering, and in proportion to the respective Units purchased by each subscriber, pursuant to the Subscription Agreement, an aggregate $250,000 (“Payment”) upon the occurrence of the following events and in the amounts and on payment dates set forth in connection with such events: (i) in the event of a closing of any one or more equity or debt financing resulting in aggregate gross proceeds from the date of this Amendment of $350,000 or less, a payment towards the then-remaining Payment equal to ten-percent (10%) of such gross proceeds shall be made within three (3) business days of the closing of any such equity or debt financing; (ii) in the event of a closing of any one or more equity or debt financing resulting in aggregate gross proceeds from the date of this Amendment of $350,000 or more but less than $1,000,000, a payment towards the then-remaining Payment equal to twenty-percent (20%) of such gross proceeds shall be made within three (3) business days of the closing of any such equity or debt financing; (iii) at any of the Company’s fiscal-year-ends payment will be made in the amount of available cash prior to any payments of bonuses payable to Mr. Allen, the Company’s CEO, CFO and Chairman, and Mr. Handerhan, the Company’s COO, Secretary and Director; and (iv) upon closing of any one or more equity or debt financing resulting in aggregate gross proceeds from the date of this Amendment of $1,000,000 or more, a payment of all then-remaining Payment within three (3) business days of the closing of any such equity or debt financing. In consideration for the Payment, the Subscribers agreed to limit any remedies currently due, if any, or to which they may be entitled in the future, under the “Favored Nations Provision” of the Subscription Agreement, to the additional issuance of Common Stock of the Company and warrants (“Warrants”) to purchase Common Stock up to the Common Stock and Warrants that would not result in each respective Subscriber beneficially owning over 4.99% of the Company’s issued and outstanding Common Stock. On June 8, 2016, the Company and an investor (the “Investor”) holding a warrant dated January 19, 2015 (the “Warrant”) to purchase 2,325,000 shares (the “Warrant Shares”) of the Company’s Common Stock entered into a warrant exercise agreement (the “Exercise Agreement”). Pursuant to the Exercise Agreement, the Company agreed to accept as full payment for 500,000 of the Warrant Shares, an aggregate exercise price equal to $27,500 (the “Exercise Price”) and the Investor irrevocably agreed to exercise the Warrant and deliver the Exercise Price within 2 days of the Exercise Agreement. Over the course of June 8, 2016 through June 28, 2016, the Company issued 4,125,000 shares of Common Stock for the cash exercise of warrants resulting in aggregate proceeds of $91,765 to the Company this includes the $27,500 received in connection with the Exercise Agreement mentioned above.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Note 12 - Subsequent Events Over the course of July 1, 2016 through August 1, 2016, the Company issued a total of 728,809,426 shares of the Company’s Common Stock for: i) the conversion of $460,344 of principal and accrued interest on the Senior Notes, and ii) the exercise of warrants. The issuances were exempt from registration pursuant to Rule 506 under Regulation D, the investors are sophisticated and familiar with our operations, and there was no solicitation in connection with the issuances. The dates of the issuances and the numbers of shares issued are as follows: Issued Date Note Conversions Warrant Exercises Total July 1, 2016 1,409,427 4,000,000 5,409,427 July 5, 2016 7,137,095 12,000,000 19,137,095 July 6, 2016 13,107,365 7,500,000 20,607,365 July 7, 2016 32,997,387 40,935,845 73,933,232 July 8, 2016 28,313,307 35,380,676 63,693,983 July 11, 2016 43,015,180 36,502,280 79,517,460 July 12, 2016 8,214,526 16,000,000 24,214,526 July 13, 2016 41,857,162 11,153,844 53,011,006 July 14, 2016 73,745,678 36,257,966 110,003,644 July 15, 2016 51,569,878 0 51,569,878 July 18, 2016 53,571,427 0 53,571,427 July 19, 2016 44,240,476 0 44,240,476 July 20, 2016 23,591,267 0 23,591,267 July 25, 2016 7,500,000 0 7,500,000 July 27, 2016 60,590,572 0 60,590,572 July 29, 2016 11,448,412 0 11,448,412 August 1, 2016 26,769,656 0 26,769,656 Total Issued Shares 529,078,815 199,730,611 728,809,426 None of the securities were sold through an underwriter and accordingly, there were no underwriting discounts or commissions involved. No registration rights were granted to any of the purchasers. Following these issuances, there were 952,756,004 shares of our Common Stock issued and outstanding. As a result of the Senior Note conversions, the Company became obligated to issue, subject to certain limitations, the following additional securities: (i) 6,524,866,433 shares of Common Stock pursuant to “favored nations” provisions in certain common stockholder subscription agreements which includes those anti-dilution shares of Common Stock previously disclosed; and (ii) warrants to purchase 10,264,097,638 shares of Common Stock pursuant to “favored nations” provisions in certain common stockholder subscription agreements which includes those anti-dilution warrants previously disclosed. These figures do not reflect additional warrants to purchase Common Stock issuable to certain investors pursuant to the terms of the warrants issued on December 16, 2016 which includes those anti-dilution warrants previously disclosed. The Company also lowered the conversion price of the Company’s outstanding Junior Notes and Senior Notes to $0.00042. The Company does not currently have sufficient authorized and unreserved shares to fulfill its obligations with respect to the issuance of new shares of Common Stock. While no assurances can be made, the Company intends to seek shareholder approval to adjust the Company’s capitalization. On July 20, 2016, DM suspended its North Carolina transaction verification services facility operations. The recent reduction in the block reward from 25 bitcoins to 12.5 bitcoins, often referred to as the halving, coupled with the facilities cooling system failing, has resulted in DM being unable to meet certain of its financial commitments. The Company is pursuing the following options: i) seeking additional capital to potentially bring DM back online; ii) a possible sale of DM; iii) and permanently winding down DM’s operations. If the Company ceases operations at DM, it may relocate its transaction verification services business to others data centers which may be more appropriate for the Company’s current scale of operations. On August 8, 2016, DM, a wholly owned subsidiary of the Company discovered that its facility in North Carolina was broken into and certain of its equipment and approximately 165 Bitmain transaction verification servers leased from CSC Leasing Company were stolen. The value of the stolen equipment owned by the Company does not appear to be material. The Company has reported the theft to local authorities as well its insurance company regarding next steps. On September 1, 2016, DM gave cancelation notice to the landlord with respect to the lease of its North Carolina facility.

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Transaction Verification Services	Transaction Verification Services Revenue earned from bitcoin processing activities (“Transaction Verification Services”), commonly termed ‘mining’ activities, is recognized at the fair value of the bitcoins received as consideration on the date of actual receipt. The Company generates revenue by performing computer processing activities for bitcoin generation. In the digital-currency industry such activity is generally referred to as Transaction Verification Services or bitcoin mining. The Company receives consideration for performing such transaction verification activities in the form of bitcoins. Revenue is recorded upon the actual receipt of bitcoins. Expenses consist of utilities paid to cover our electric costs, rent for our facility and personnel to run our facility. The expenses related to our Transaction Verification Services activities are affected by the level of activities and not the ultimate generation of bitcoins. The Company expenses these costs as they are incurred.
Net Loss Per Share	Net Loss per Share Basic loss per share is computed by dividing net loss applicable to common stock by the weighted-average number of common shares outstanding during the period. For purposes of calculating basic and diluted earnings per share, vested restricted stock awards are considered outstanding. Under the treasury stock method, diluted loss per share reflects the potential dilution that could occur if securities or other instruments that are convertible into common stock were exercised or could result in the issuance of common stock. The following financial instruments were not included in the diluted loss per share calculation as of June 30, 2016 and 2015 because their effect was anti-dilutive: June 30, 2016 June 30, 2015 Stock options - 12,450,000 Warrants 1,184,186,577 22,991,679 Convertible notes 274,376,241 - Favored Nations 474,752,455 - Excluded potentially dilutive securities 1,933,315,273 35,441,679
Recent Accounting Pronouncements	Recent Accounting Pronouncements In January 2016, FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, FASB issued ASU No. 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customer In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments
Subsequent Events	Subsequent events Subsequent events have been evaluated through the date of this filing.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Schedule of Earnings Per Share Anti-Diluted	The following financial instruments were not included in the diluted loss per share calculation as of June 30, 2016 and 2015 because their effect was anti-dilutive: June 30, 2016 June 30, 2015 Stock options - 12,450,000 Warrants 1,184,186,577 22,991,679 Convertible notes 274,376,241 - Favored Nations 474,752,455 - Excluded potentially dilutive securities 1,933,315,273 35,441,679

Property And Equipment (Tables)

Property And Equipment (Tables)	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property And Equipment, Net	Property and equipment consist of the following at June 30, 2016 and December 31, 2015: June 30, 2016 December 31, 2015 Equipment $ - $ 109,493 Computer - 3,086 Leasehold improvement - 242,091 Transaction verification servers - 451,281 - 805,951 Accumulated depreciation - (316,531 ) Property and equipment, net $ - $ 489,420

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Summary of Fair Value Liabilities Measured at Fair Value On Recurring Basis	The following table presents information about the Company’s liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of June 30, 2016 and December 31, 2015: Fair value measured at June 30, 2016 Total carrying value at June 30, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2016 (Level 1) (Level 2) (Level 3) Assets: Digital Currencies $ 17,872 $ 17,872 $ - $ - Liabilities: Derivative Liabilities $ 13,015,937 $ - $ - $ 13,015,937 Derivative liabilities for shortfall of shares 14,479,363 - - 14,479,363 Convertible notes at fair value 3,840,110 - - 3,840,110 Fair value measured at December 31, 2015 Total carrying value at December 31, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 2015 (Level 1) (Level 2) (Level 3) Assets: Digital Currencies $ 17,036 $ 17,036 $ - $ - Liabilities: Derivative Liabilities $ 3,794,153 $ - $ - $ 3,794,153 Convertible notes at fair value 1,781,156 1,781,156
Schedule of Changes in Level 3 Liabilities Measured at Fair Value	Derivative liabilities Balance - January 1, 2016 $ 3,794,153 Change in fair value of derivative liability 9,221,784 Derivative liabilities Balance - June 30, 2016 $ 13,015,937
Schedule of Derivative Liabilities for Shortfall of Shares	Derivative liabilities for shortfall of shares Balance - January 1, 2016 $ - Change in fair value of derivative liability shortfall of shares 14,479,363 Derivative liabilities for shortfall of shares Balance - June 30, 2016 $ 14,479,363
Schedule of Changes in Fair Value of Convertible Notes	Convertible notes at fair value Balance - January 1, 2016 $ 1,781,156 Addition of convertible notes 100,000 Conversion of notes into common stock (890,179 ) Loss on extinguishment of debt 2,512,473 Change in fair value of convertible notes (including OID discount) 336,660 Convertible notes at fair value Balance - June 30, 2016 $ 3,840,110
Summary of Quantitative Information to Valuation Methodology	Warrant Liabilities Date of valuation June 30, 2016 Strike price $ 0.01 Volatility (annual) 146% to 155 % Risk-free rate 0.64% to 0.93 % Contractual term (years) 0.60 to 4.5 Dividend yield (per share) 0 % Derivative Liabilities for shortfall of shares Date of valuation June 30, 2016 Strike price $ 0.01 Volatility (annual) 155.0 % Risk-free rate 0.9 % Contractual term (years) 4.0 Dividend yield (per share) 0 % Convertible Notes at Fair Value Date of valuation June 30, 2016 Strike price $ 0.01 Volatility (annual) 90.6% to 193.2 % Risk-free rate 0.02% to 0.4 % Dividend yield (per share) 0 %

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of Debt Conversion and Issuance of Shares	Issued Date Note Conversions Warrant Exercises Total June 8, 2016 0 1,000,000 1,000,000 June 10, 2016 0 300,000 300,000 June 16, 2016 5,900,000 0 5,900,000 June 17, 2016 3,250,417 0 3,250,417 June 20, 2016 9,238,446 0 9,238,446 June 21, 2016 31,452,170 0 31,452,170 June 22, 2016 0 1,000,000 1,000,000 June 28, 2016 0 1,825,000 1,825,000 June 30, 2016 0 12,500,000 12,500,000 Total Issued Shares 49,841,033 16,625,000 66,466,033

Subsequent Events (Tables)

Subsequent Events (Tables)	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Schedule of Debt Conversions and Issuance of Shares	The dates of the issuances and the numbers of shares issued are as follows: Issued Date Note Conversions Warrant Exercises Total July 1, 2016 1,409,427 4,000,000 5,409,427 July 5, 2016 7,137,095 12,000,000 19,137,095 July 6, 2016 13,107,365 7,500,000 20,607,365 July 7, 2016 32,997,387 40,935,845 73,933,232 July 8, 2016 28,313,307 35,380,676 63,693,983 July 11, 2016 43,015,180 36,502,280 79,517,460 July 12, 2016 8,214,526 16,000,000 24,214,526 July 13, 2016 41,857,162 11,153,844 53,011,006 July 14, 2016 73,745,678 36,257,966 110,003,644 July 15, 2016 51,569,878 0 51,569,878 July 18, 2016 53,571,427 0 53,571,427 July 19, 2016 44,240,476 0 44,240,476 July 20, 2016 23,591,267 0 23,591,267 July 25, 2016 7,500,000 0 7,500,000 July 27, 2016 60,590,572 0 60,590,572 July 29, 2016 11,448,412 0 11,448,412 August 1, 2016 26,769,656 0 26,769,656 Total Issued Shares 529,078,815 199,730,611 728,809,426

Business Organization and Nat24

Business Organization and Nature of Operations (Details Narrative)	Feb. 05, 2014shares
Bitcoin Shop Us LLC [Member]
Shares issued for membership interests	100,773,923

Liquidity, Financial Conditio25

Liquidity, Financial Condition and Management's Plans (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Liquidity Financial Condition And Managements Plans
Net loss	$ 28,143,576	$ 1,249,846	$ 30,182,917	$ 4,599,392
Cash	66,599	$ 303,240	66,599	$ 303,240	$ 124,535	$ 5,403
Working capital deficiency	32,000,000		32,000,000
Fair value of derivative liabilities	$ 27,500,000		$ 27,500,000

Summary of Significant Accoun26

Summary of Significant Accounting Policies - Schedule of Earnings Per Share Anti-Diluted (Details) - shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Excluded potentially dilutive securities	1,933,315,273	35,441,679
Warrants [Member]
Excluded potentially dilutive securities	1,184,186,577	22,991,679
Convertible Notes [Member]
Excluded potentially dilutive securities	274,376,241
Favored Nations [Member]
Excluded potentially dilutive securities	474,752,455
Stock Option [Member]
Excluded potentially dilutive securities		12,450,000

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 84,000	$ 68,000	$ 177,000	$ 114,000
Fixed assets purchased			19,238	375,603
Fixed assets sold			55,436	3,117
Impairment charge	$ 240,853		240,853
Loss on sale of fixed assets			$ 35,000

Property And Equipment - Schedu

Property And Equipment - Schedule of Property And Equipment, Net (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Equipment		$ 109,493
Computer		3,086
Leasehold improvement		242,091
Transaction verification servers		451,281
Property and equipment		805,951
Accumulated depreciation		(316,531)
Property and equipment, net		$ 489,420

Investment at Cost (Details Nar

Investment at Cost (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Schedule of Investments [Abstract]
Investment					$ 2,250,000
Impairment charge	$ 240,853		$ 240,853

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Fair Value liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Digital currencies	$ 17,872	$ 17,036
Derivative Liabilities	13,015,937	3,794,153
Derivative liabilities for shortfall of shares	14,479,363
Convertible notes at fair value	3,840,110	1,781,156
Level 1 [Member]
Digital currencies	17,872	17,036
Derivative Liabilities
Derivative liabilities for shortfall of shares
Convertible notes at fair value
Fair Value, Inputs, Level 2 [Member]
Digital currencies
Derivative Liabilities
Derivative liabilities for shortfall of shares
Convertible notes at fair value
Fair Value, Inputs, Level 3 [Member]
Digital currencies
Derivative Liabilities	13,015,937	3,794,153
Derivative liabilities for shortfall of shares	14,479,363
Convertible notes at fair value	$ 3,840,110	$ 1,781,156

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Changes in Level 3 Liabilities Measured at Fair Value (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Beginning balance			$ 3,794,153
Change in fair value of derivative liability	$ 9,719,017	$ (1,250,572)	9,221,784	$ (323,952)
Ending balance	$ 13,015,937		$ 13,015,937

Fair Value Measurements - Sch32

Fair Value Measurements - Schedule of Derivative Liabilities for Shortfall of Shares (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
Fair Value Disclosures [Abstract]
Derivative liabilities for shortfall of shares Balance - January 1, 2016
Change in fair value of derivative liability shortfall of shares	14,479,363
Derivative liabilities for shortfall of shares Balance - June 30, 2016	$ 14,479,363

Fair Value Measurements - Sch33

Fair Value Measurements - Schedule of Changes in Fair Value of Convertible Notes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Convertible notes at fair value, beginning balance			$ 1,781,156
Addition of convertible notes			100,000
Conversion of notes into common stock			(890,179)
Loss on extinguishment of debt	$ 2,512,473		2,512,473
Change in fair value of convertible notes (including OID discount)			336,660
Convertible notes at fair value, ending balance	$ 3,840,110		$ 3,840,110

Fair Value Measurement - Summar

Fair Value Measurement - Summary of Quantitative Information to Valuation Methodology (Details)	6 Months Ended
	Jun. 30, 2016$ / shares
Derivative Liabilities for shortfall of shares [Member]
Strike price	$ 0.01
Volatility (annual)	155.00%
Risk-free rate	0.90%
Contractual term (years)	4 years
Dividend yield (per share)	$ 0
Convertible Notes at Fair Value [Member]
Strike price	0.01
Dividend yield (per share)	$ 0
Convertible Notes at Fair Value [Member] | Minimum [Member]
Volatility (annual)	90.60%
Risk-free rate	0.02%
Convertible Notes at Fair Value [Member] | Maximum [Member]
Volatility (annual)	193.20%
Risk-free rate	0.40%
Warrant Liabilities [Member]
Strike price	$ 0.01
Dividend yield (per share)	$ 0
Warrant Liabilities [Member] | Minimum [Member]
Volatility (annual)	146.00%
Risk-free rate	0.64%
Contractual term (years)	7 months 6 days
Warrant Liabilities [Member] | Maximum [Member]
Volatility (annual)	155.00%
Risk-free rate	0.93%
Contractual term (years)	4 years 6 months

Stock Based Compensation (Detai

Stock Based Compensation (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock options outstanding
Stock-based compensation expense	$ 0	$ 1,400,000		$ 2,753,968

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - Principal Stockholders [Member] - USD ($)	Jun. 03, 2016	Feb. 19, 2016	Apr. 30, 2015	Jun. 30, 2016
Payments for Repurchase of Private Placement	$ 86		$ 20,000
Subscription Agreement [Member]
Payments for Repurchase of Private Placement				$ 40,000
Securities Escrow Agreement [Member]
Number of common stock shares into escrow		24,000,000
Listing Escrow Shares [Member]
Number of escrowed shares returned				12,000,000
Merger Escrow Shares [Member] | Spondoolies-Tech Ltd [Member]
Number of escrowed shares returned				12,000,000

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	Jun. 06, 2016	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Number of common stock shares issued for conversion of debt			66,466,033
Debt conversion into shares amount			$ 890,179
Common stock, shares issued		236,946,578	236,946,578		170,480,545
Common stock, shares outstanding		236,946,578	236,946,578		170,480,545
Derivative liabilities for shortfall of shares		$ 14,479,363	$ 14,479,363
Senior Secured Convertible Notes [Member]
Number of common stock shares issued for conversion of debt		66,466,033
Debt conversion into shares amount		$ 581,000
Institutional Investors [Member]
Percentage of beneficially own in excess of number of common stock shares outstanding	9.99%
Institutional Investors [Member] | Junior Secured Convertible Notes [Member]
Percentage of beneficially own in excess of number of common stock shares outstanding	4.99%
Securities Purchase Agreement [Member] | Institutional Investors [Member] | Junior Secured Convertible Notes [Member]
Debt original amount	$ 375,000
Percentage of original issuance of debt	20.00%
Debt face amount	$ 125,000
Proceeds from issuance of debt	$ 100,000
Debt default interest rate	24.00%
Debt maturity date	Dec. 5, 2016
Debt conversion price per share	$ 0.30
Debt convertible into common stock lowest closing price rate	60.00%
Debt trading days	20 days
Reimbursement amount	$ 5,000
Securities Purchase Agreement [Member] | Institutional Investors [Member] | Junior Secured Convertible Notes [Member] | On or Before 45 Days From The Initial Closing Date [Member]
Debt periodic amount	125,000
Securities Purchase Agreement [Member] | Institutional Investors [Member] | Junior Secured Convertible Notes [Member] | On or Before 90 Days From The Initial Closing Date [Member]
Debt periodic amount	$ 125,000
Standstill and Leak-out Agreement [Member] | Senior Noteholders [Member] | September 19, 2016 [Member]
Debt periodic amount			$ 7,500
Debt convertible into common stock lowest closing price rate			5.00%

Notes Payable - Schedule of Deb

Notes Payable - Schedule of Debt Conversion and Issuance of Shares (Details)	6 Months Ended
	Jun. 30, 2016shares
Note Conversions	49,841,033
Warrant Exercises	16,625,000
Total	66,466,033
Notes Payable 1 [Member]
Date	Jun. 8, 2016
Note Conversions	0
Warrant Exercises	1,000,000
Total	1,000,000
Notes Payable 2 [Member]
Date	Jun. 10, 2016
Note Conversions	0
Warrant Exercises	300,000
Total	300,000
Notes Payable 3 [Member]
Date	Jun. 16, 2016
Note Conversions	5,900,000
Warrant Exercises	0
Total	5,900,000
Notes Payable 4 [Member]
Date	Jun. 17, 2016
Note Conversions	3,250,417
Warrant Exercises	0
Total	3,250,417
Notes Payable 5 [Member]
Date	Jun. 20, 2016
Note Conversions	9,238,446
Warrant Exercises	0
Total	9,238,446
Notes Payable 6 [Member]
Date	Jun. 21, 2016
Note Conversions	31,452,170
Warrant Exercises	0
Total	31,452,170
Notes Payable 7 [Member]
Date	Jun. 22, 2016
Note Conversions	0
Warrant Exercises	1,000,000
Total	1,000,000
Notes Payable 8 [Member]
Date	Jun. 28, 2016
Note Conversions	0
Warrant Exercises	1,825,000
Total	1,825,000
Notes Payable 9 [Member]
Date	Jun. 30, 2016
Note Conversions	0
Warrant Exercises	12,500,000
Total	12,500,000

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Jun. 03, 2016	Jan. 19, 2016	Jun. 28, 2016	Jun. 30, 2016	Jun. 30, 2015	Jan. 19, 2015
Warrants exercise value			$ 91,765	$ 91,765
Number of common stock shares for cash exercise of warrants			4,125,000
Amendment Agreement [Member]
Proceeds from equity or debt financing	$ 350,000
Percentage of remaining payment of gross proceeds from equity or debt financing	10.00%
Amendment Agreement [Member] | Charles Allen [Member]
Proceeds from equity or debt financing	$ 1,000,000
Percentage of remaining payment of gross proceeds from equity or debt financing	10.00%
Amendment Agreement [Member] | Minimum [Member]
Proceeds from equity or debt financing	$ 1,000,000
Percentage of remaining payment of gross proceeds from equity or debt financing	20.00%
Exercise Agreement [Member]
Warrants issued to purchase of shares of common stock						500,000
Warrants exercise value		$ 27,500
Subscribers [Member]
Percentage of units for sold during the period	75.00%
Subscribers [Member] | Subscription Agreement [Member]
Payment of offering	$ 250,000
Percentage of beneficially own in excess of number of common stock shares outstanding	4.99%
Investors [Member] | Exercise Agreement [Member]
Warrants issued to purchase of shares of common stock						2,325,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	1 Months Ended		6 Months Ended
	Aug. 01, 2016	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Number of common stock shares issued for conversion of debt			66,466,033
Debt conversion into shares amount			$ 890,179
Common stock, shares issued		236,946,578	236,946,578		170,480,545
Common stock, shares outstanding		236,946,578	236,946,578		170,480,545
Senior Secured Convertible Notes [Member]
Number of common stock shares issued for conversion of debt		66,466,033
Debt conversion into shares amount		$ 581,000
Subsequent Event [Member]
Number of common stock shares issued for conversion of debt	728,809,426
Debt conversion into shares amount	$ 460,344
Common stock, shares issued	952,756,004
Common stock, shares outstanding	952,756,004
Subsequent Event [Member] | Senior Secured Convertible Notes [Member] | Common Stockholder Subscription Agreements [Member]
Number of common stock shares issued for conversion of debt	6,524,866,433
Warrants issued to purchase of shares of common stock	10,264,097,638
Debt conversion price per share	$ 0.00042

Subsequent Events - Schedule of

Subsequent Events - Schedule of Debt Conversion and Issuance of Shares (Details) - shares	1 Months Ended	6 Months Ended
	Aug. 01, 2016	Jun. 30, 2016
Note Conversions		49,841,033
Warrant Exercises		16,625,000
Total		66,466,033
Notes Payable 1 [Member]
Date		Jun. 8, 2016
Note Conversions		0
Warrant Exercises		1,000,000
Total		1,000,000
Notes Payable 2 [Member]
Date		Jun. 10, 2016
Note Conversions		0
Warrant Exercises		300,000
Total		300,000
Notes Payable 3 [Member]
Date		Jun. 16, 2016
Note Conversions		5,900,000
Warrant Exercises		0
Total		5,900,000
Notes Payable 4 [Member]
Date		Jun. 17, 2016
Note Conversions		3,250,417
Warrant Exercises		0
Total		3,250,417
Notes Payable 5 [Member]
Date		Jun. 20, 2016
Note Conversions		9,238,446
Warrant Exercises		0
Total		9,238,446
Notes Payable 6 [Member]
Date		Jun. 21, 2016
Note Conversions		31,452,170
Warrant Exercises		0
Total		31,452,170
Notes Payable 7 [Member]
Date		Jun. 22, 2016
Note Conversions		0
Warrant Exercises		1,000,000
Total		1,000,000
Notes Payable 8 [Member]
Date		Jun. 28, 2016
Note Conversions		0
Warrant Exercises		1,825,000
Total		1,825,000
Notes Payable 9 [Member]
Date		Jun. 30, 2016
Note Conversions		0
Warrant Exercises		12,500,000
Total		12,500,000
Subsequent Event [Member]
Note Conversions	529,078,815
Warrant Exercises	199,730,611
Total	728,809,426
Subsequent Event [Member] | Notes Payable 1 [Member]
Date	Jul. 1, 2016
Note Conversions	1,409,427
Warrant Exercises	4,000,000
Total	5,409,427
Subsequent Event [Member] | Notes Payable 2 [Member]
Date	Jul. 5, 2016
Note Conversions	7,137,095
Warrant Exercises	12,000,000
Total	19,137,095
Subsequent Event [Member] | Notes Payable 3 [Member]
Date	Jul. 6, 2016
Note Conversions	13,107,365
Warrant Exercises	7,500,000
Total	20,607,365
Subsequent Event [Member] | Notes Payable 4 [Member]
Date	Jul. 7, 2016
Note Conversions	32,997,387
Warrant Exercises	40,935,845
Total	73,933,232
Subsequent Event [Member] | Notes Payable 5 [Member]
Date	Jul. 8, 2016
Note Conversions	28,313,307
Warrant Exercises	35,380,676
Total	63,693,983
Subsequent Event [Member] | Notes Payable 6 [Member]
Date	Jul. 11, 2016
Note Conversions	43,015,180
Warrant Exercises	36,502,280
Total	79,517,460
Subsequent Event [Member] | Notes Payable 7 [Member]
Date	Jul. 12, 2016
Note Conversions	8,214,526
Warrant Exercises	16,000,000
Total	24,214,526
Subsequent Event [Member] | Notes Payable 8 [Member]
Date	Jul. 13, 2016
Note Conversions	41,857,162
Warrant Exercises	11,153,844
Total	53,011,006
Subsequent Event [Member] | Notes Payable 9 [Member]
Date	Jul. 14, 2016
Note Conversions	73,745,678
Warrant Exercises	36,257,966
Total	110,003,644
Subsequent Event [Member] | Notes Payable 10 [Member]
Date	Jul. 15, 2016
Note Conversions	51,569,878
Warrant Exercises	0
Total	51,569,878
Subsequent Event [Member] | Notes Payable 11 [Member]
Date	Jul. 18, 2016
Note Conversions	53,571,427
Warrant Exercises	0
Total	53,571,427
Subsequent Event [Member] | Notes Payable 12 [Member]
Date	Jul. 19, 2016
Note Conversions	44,240,476
Warrant Exercises	0
Total	44,240,476
Subsequent Event [Member] | Notes Payable 13 [Member]
Date	Jul. 20, 2016
Note Conversions	23,591,267
Warrant Exercises	0
Total	23,591,267
Subsequent Event [Member] | Notes Payable 14 [Member]
Date	Jul. 25, 2016
Note Conversions	7,500,000
Warrant Exercises	0
Total	7,500,000
Subsequent Event [Member] | Notes Payable 15 [Member]
Date	Jul. 27, 2016
Note Conversions	60,590,572
Warrant Exercises	0
Total	60,590,572
Subsequent Event [Member] | Notes Payable 16 [Member]
Date	Jul. 29, 2016
Note Conversions	11,448,412
Warrant Exercises	0
Total	11,448,412
Subsequent Event [Member] | Notes Payable 17 [Member]
Date	Aug. 1, 2016
Note Conversions	26,769,656
Warrant Exercises	0
Total	26,769,656