Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 10, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | EXP World Holdings, Inc. | |
Entity Central Index Key | 1,495,932 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 53,169,694 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,564,220 | $ 1,684,608 |
Restricted cash | 1,116,117 | 481,704 |
Accounts receivable, net of allowance $170,811 and $133,845, respectively | 8,442,372 | 3,015,767 |
Prepaids and other assets | 434,342 | 383,563 |
TOTAL CURRENT ASSETS | 11,557,051 | 5,565,642 |
OTHER ASSETS | ||
Fixed assets, net | 1,088,748 | 538,405 |
TOTAL OTHER ASSETS | 1,088,748 | 538,405 |
TOTAL ASSETS | 12,645,799 | 6,104,047 |
CURRENT LIABILITIES | ||
Accounts payable | 472,162 | 317,420 |
Customer deposits | 1,116,117 | 481,704 |
Accrued expenses | 7,165,071 | 2,742,119 |
Notes payable | 9,116 | 35,778 |
TOTAL CURRENT LIABILITIES | 8,762,466 | 3,577,021 |
Commitments and Contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common Stock, $0.00001 par value 220,000,000 shares authorized; 53,139,694 shares and 52,316,679 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively | 527 | 523 |
Additional paid-in capital | 32,716,439 | 34,526,859 |
Accumulated deficit | (28,840,651) | (32,004,561) |
Accumulated other comprehensive income (loss) | 7,018 | 4,205 |
TOTAL STOCKHOLDERS' EQUITY | 3,883,333 | 2,527,026 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 12,645,799 | $ 6,104,047 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 170,811 | $ 133,845 |
Common stock shares authorized | 220,000,000 | 220,000,000 |
Common stock par value | $ .00001 | $ 0.00001 |
Common stock shares issued | 53,139,694 | 52,316,679 |
Common stock shares outstanding | 52,139,694 | 52,316,679 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Net Revenues | $ 39,574,311 | $ 13,282,028 | $ 61,585,548 | $ 20,424,840 |
Operating expenses | ||||
Cost of revenues | 35,048,967 | 11,463,125 | 54,328,593 | 17,574,112 |
General and administrative | 600,420 | 7,565,698 | 2,709,772 | 8,990,856 |
Professional fees | 318,383 | 130,018 | 682,843 | 273,393 |
Sales and marketing | 348,823 | 122,285 | 650,045 | 199,428 |
Total expenses | 36,316,593 | 19,281,126 | 58,371,253 | 27,037,789 |
Net income (loss) from operations | 3,257,718 | (5,999,098) | 3,214,295 | (6,612,949) |
Other income and (expenses) | ||||
Other income | 0 | 439 | 0 | 446 |
Interest expense | (3,762) | 0 | (2,047) | 0 |
Total other income and (expenses) | (3,762) | 439 | (2,047) | 446 |
Income (loss) before income tax expense | 3,253,956 | (5,998,659) | 3,212,248 | (6,612,503) |
Income tax expense | (23,747) | (13,968) | (48,338) | (25,571) |
Net income (loss) | 3,230,209 | (6,012,627) | 3,163,910 | (6,638,074) |
Net loss attributable to non-controlling interest in subsidiary | 0 | 6,720 | 0 | 12,300 |
Net Income (loss) attributable to common shareholders | $ 3,230,209 | $ (6,005,907) | $ 3,163,910 | $ (6,625,774) |
Net income (loss) per share attributable to common shareholders | ||||
Basic from continuing operations | $ .06 | $ (.12) | $ .06 | $ (.13) |
Diluted from continuing operations | $ .05 | $ (.12) | $ .05 | $ (.13) |
Weighted average shares outstanding | ||||
Basic | 52,749,086 | 50,940,460 | 52,583,658 | 50,779,114 |
Diluted | 59,640,200 | 50,940,460 | 59,750,835 | 50,779,114 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 3,230,209 | $ (6,012,627) | $ 3,163,910 | $ (6,638,074) |
Other comprehensive loss: | ||||
Foreign currency translation adjustments, net of tax | (7,224) | (1,919) | 2,813 | 5,089 |
Comprehensive income (loss) | 3,222,985 | (6,014,546) | 3,166,723 | (6,632,985) |
Comprehensive loss attributable to non-controlling interest in subsidiary | 0 | 6,720 | 0 | 12,300 |
Comprehensive income (loss) attributable to common shareholders | $ 3,222,985 | $ (6,007,826) | $ 3,166,723 | $ (6,620,685) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 3,163,910 | $ (6,638,074) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Depreciation | 94,702 | 25,555 |
Stock compensation expense | 3,533,289 | 731,709 |
Stock option expense (benefit) | (5,502,256) | 6,551,040 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (5,426,605) | (679,418) |
Prepaids and other assets | (136,425) | (106,364) |
Restricted cash | (634,413) | (200,504) |
Customer deposits | 634,413 | 200,504 |
Accounts payable | 154,742 | (28,322) |
Accrued expenses | 4,421,123 | 603,492 |
CASH PROVIDED BY OPERATING ACTIVITIES | 302,480 | 459,618 |
INVESTING ACTIVITIES | ||
Acquisition of property and equipment | (548,758) | (150,328) |
CASH USED IN INVESTING ACTIVITIES | (548,758) | (150,328) |
FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock | 160,000 | 0 |
Common stock issuance transaction costs | (17,842) | 0 |
Repurchase and retirement of common stock | (3,607) | 0 |
Repurchase and retirement of subsidiary common stock | 0 | (1,000) |
Proceeds from exercise of options | 20,000 | 1,000 |
Principal payments of notes payable | (27,912) | 0 |
CASH PROVIDED BY FINANCING ACTIVITIES | 130,639 | 0 |
Effect of changes in exchange rates on cash and cash equivalents | (4,749) | 5,089 |
Net change in cash and cash equivalents | (120,388) | 314,379 |
Cash and cash equivalents, beginning of period | 1,684,608 | 571,814 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 1,564,220 | 886,193 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 862 | 0 |
Cash paid for income taxes | 54,336 | 32,235 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Fixed asset purchases in accounts payable | $ 96,287 | $ 0 |
1. Background and Basis of Pres
1. Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | eXp World Holdings, Inc. (the “Company” or “we” or “eXp”) was incorporated in the State of Delaware on July 30, 2008. Through various operating subsidiaries, the Company is a cloud-based real estate brokerage operating in most U.S. States. The Company focuses on a number of cloud-based technologies in order to grow an international brokerage without the burden of physical bricks and mortar or redundant staffing costs. The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month and six-month periods ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of eXp World Holdings, Inc., and its subsidiaries; eXp Realty Holdings, Inc.; First Cloud Mortgage, Inc. (dormant as of December 31, 2016 and through June 30, 2017); eXp Realty Associates, LLC; eXp Realty, LLC; eXp Realty of California, Inc.; eXp Realty of Canada, Inc.; and eXp Realty of Connecticut, LLC. All inter-company accounts and transactions have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in conformity with US generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to provisions for doubtful accounts, legal contingencies, income taxes, revenue recognition, stock-based compensation, expense accruals, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Recently Issued Accounting Pronouncements In January 2017, the Company implemented accounting treatment as promulgated by FASB as issued in ASU No. 2016-09 Compensation – Stock Compensation (Topic 718). The new standard simplifies several aspects of the accounting for share-based payments, including accounting for income taxes, forfeitures and statutory tax withholding requirements, and classification within the statement of cash flows. The Company made an election to account for forfeitures of non-vested equity awards in the periods in which they occur. The treatments implemented did not have a material impact on the accompanying condensed consolidated financial statements as presented. In May 2014, the FASB began issuing several accounting standards updates associated with accounting for revenue from contracts with customers. The objective of the updates, and subsequent clarifying and industry specific updates, are to 1) remove inconsistencies and weaknesses in revenue requirements, 2) provide a robust framework for addressing revenue recognition issues, 3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets 4) provide more useful information to users of financial statements through improved disclosure requirements, and 5) simplify the preparation of financial statements. The updates are effective in annual reporting periods beginning after December 15, 2017 and the interim periods within that year. The Company is still evaluating the potential impacts that the implementation of these new revenue standards may have on its financial position, operational results, or cash flows. |
3. Fixed Assets, Net
3. Fixed Assets, Net | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, Net | Fixed assets, net consisted of the following: As of June 30, 2017 As of December 31, 2016 Computer hardware and software $ 1,230,892 $ 219,590 Furniture, fixture and equipment 5,910 5,910 Total depreciable property and equipment 1,236,802 225,500 Less: accumulated depreciation and amortization (191,918 ) (97,216 ) Depreciable property, net 1,044,883 128,284 Assets under development 43,865 410,121 Fixed assets, net $ 1,088,748 $ 538,405 Depreciation expense for the six months ended June 30, 2017 and 2016 was $94,702 and $25,252, respectively. Depreciation expense for the three months ended June 30, 2017 and 2016 was $81,437 and $12,626, respectively. |
4. Stockholders' Equity
4. Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | As of June 30, 2017, the Company had 53,139,694 shares of common stock issued and outstanding. The following provides a detailed description of the stock based transactions completed since January 1, 2017: In January 2017, the Company issued the remaining 49,231 shares of restricted and unregistered shares of common stock to accredited investors subsequent to the receipt of $160,000 of gross proceeds from the Company’s December 2016 private placement. The Company received total gross cash proceeds from the private placement of $760,000. During the six months ended June 30, 2017, the Company issued 25,000 shares of restricted and unregistered shares of common stock upon the exercise of stock options , in connection with which it received cash consideration totaling $20,000. During the six months ended June 30, 2017, the Company repurchased and retired 1,307 shares of common stock for cash consideration totaling $3,607. During the six months ended June 30, 2017, the Company issued 799,322 shares of restricted and unregistered shares of common stock for services totaling $3,533,289. 2015 Agent Equity Program The Company provides agents and brokers the opportunity to elect to receive 5% of commissions earned from each completed residential real estate transaction in the form of restricted and unregistered common stock. If agents and brokers elect to receive portions of their commissions in restricted and unregistered common stock, they are entitled to receive the equivalent number of shares of common stock, based on the fixed monetary value of the commission payable. During the six months ended June 30, 2017 and 2016, the Company issued 667,159 and 459,190 shares, respectively, of restricted and unregistered shares of common stock to agents and brokers for $1,759,905 and $459,568, respectively for the settlement of commissions payable. Real Estate Agent Growth and Other Incentive Programs The Company administers an equity incentive program whereby agents and brokers become eligible to receive awards of the Company’s common stock through agent attraction and performance benchmarks. Agents who qualify, and who remain with the Company in good standing for the term of the applicable agreement, are awarded restricted and unregistered shares of common stock based on production milestones. Under this program, the Company awards restricted and unregistered shares of common stock to non-employees that become issuable upon the achievement of certain milestones for both the individual and the recruited agents. Subsequent to achieving and maintaining the milestones, the awards vest ratably over service periods of three years. The following table illustrates the Company’s restricted stock activity for the following periods: Shares Weighted Average Grant Date Fair Value Balance, December 31, 2015 1,293,056 $ 0.45 Granted 2,452,965 3.65 Issued (503,922 ) 4.30 Forfeited (688,142 ) 0.62 Balance, December 31, 2016 2,553,957 2.82 Granted 437,078 3.59 Issued (125,517 ) 1.27 Forfeited (107,325 ) 2.50 Balance, June 30, 2017 2,758,193 $ 2.52 As of June 30, 2017, unvested restricted stock awards of approximately 2,048,000 shares had total unrecognized compensation costs totaling approximately $4,300,000. Pre-2013 Stock Options As of June 30, 2017, the Company had outstanding options to purchase 6,384,808 shares of common stock, accounted for in accordance with the intrinsic value method. The required re-measurement of the intrinsic value of the awards resulted in the recognition of a stock option benefit of $7,981,010 for the six months ended June 30, 2017; and a benefit of $5,427,087 for the three months ended June 30, 2016; included in general and administrative expenses in accompanying consolidated statements of operations. As of June 30, 2017, the fully vested outstanding options subject to re-measurement in accordance with the intrinsic value method had a weighted average remaining contractual term of 5.31 years. Post-2013 Stock Option Awards During the six months ended June 30, 2017, the Company granted stock options to purchase 1,770,000 shares of common stock, with an estimated grant date fair value of $6,433,748. The assumptions used to estimate the grant date fair value of the awards issued for the six months ended June 30, 2017 include: In January, the Company modified certain terms of previously outstanding option awards to purchase 500,000 shares of common stock, including accelerating portions of the award to vest prior to the original terms and the forfeiture of unvested options to purchase 275,000 shares of common stock. As a result of this modification, the Company recognized approximately $368,000 of additional stock option expense during the six months ended June 30, 2017. The following table illustrates the Company’s stock option activity (inclusive of awards accounted for under the intrinsic value and fair value) for the following periods: Options Weighted Average Price Intrinsic Value Weighted Average Remaining Contractual Term (Years) Balance, December 31, 2015 7,281,250 $ 0.17 $ 0.17 6.75 Granted 4,130,000 1.53 – 9.75 Exercised (159,678 ) 0.13 1.42 – Forfeited (504,014 ) 1.19 3.36 – Balance, December 31, 2016 10,747,558 0.67 3.56 7.75 Granted 1,770,000 3.98 – 9.62 Exercised (25,000 ) 0.80 2.62 – Forfeited (275,000 ) 0.80 3.20 – Balance, June 30, 2017 12,217,558 1.15 1.65 7.10 Exercisable at June 30, 2017 7,902,033 0.46 2.40 6.10 Vested at June 30, 2017 7,959,461 $ 0.47 $ 2.41 6.13 For the six months ended June 30, 2017 and June 30, 2016, the Company recognized total stock-based compensation of ($5,502,256) and $6,551,040, respectively, associated with all equity and equity-linked awards, inclusive of intrinsic value re-measurement. For the three months ended June 30, 2017 and June 30, 2016, the Company recognized total stock-based compensation of ($4,300,892) and $6,117,510, respectively, associated with all equity and equity-linked awards, inclusive of intrinsic value re-measurement. As of June 30, 2017, the total unrecognized compensation cost associated with options was approximately $12,295,000. |
5. Related Party Transactions
5. Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | During the six months ended June 30, 2017, and as part of her agreement to join the Company’s Board of Directors, Ms. Laurie Hawkes was granted an option to purchase a total of 350,000 shares of common stock from a significant stockholder at an exercise price of $4.22 per share. The Company estimated the grant date fair value of these options using a Black-Scholes model with the assumptions described in Footnote 4. The aggregate grant date fair value of this award was $1,333,501 and the options vest monthly over a three-year period. During the six months ended June 30, 2017, the Company recognized compensation cost totaling $216,770 associated with this award. As of June 30, 2017, the Company had unrecognized compensation cost associated with this award totaling $1,116,731. Because the options were granted by a significant stockholder and not the Company, upon the exercise of the options, the Company will not receive any cash proceeds and will not be obligated to issue additional shares. |
2. Summary of Significant Acc12
2. Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of eXp World Holdings, Inc., and its subsidiaries; eXp Realty Holdings, Inc.; First Cloud Mortgage, Inc. (dormant as of December 31, 2016 and through June 30, 2017); eXp Realty Associates, LLC; eXp Realty, LLC; eXp Realty of California, Inc.; eXp Realty of Canada, Inc.; and eXp Realty of Connecticut, LLC. All inter-company accounts and transactions have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to provisions for doubtful accounts, legal contingencies, income taxes, revenue recognition, stock-based compensation, expense accruals, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In January 2017, the Company implemented accounting treatment as promulgated by FASB as issued in ASU No. 2016-09 Compensation – Stock Compensation (Topic 718). The new standard simplifies several aspects of the accounting for share-based payments, including accounting for income taxes, forfeitures and statutory tax withholding requirements, and classification within the statement of cash flows. The Company made an election to account for forfeitures of non-vested equity awards in the periods in which they occur. The treatments implemented did not have a material impact on the accompanying condensed consolidated financial statements as presented. In May 2014, the FASB began issuing several accounting standards updates associated with accounting for revenue from contracts with customers. The objective of the updates, and subsequent clarifying and industry specific updates, are to 1) remove inconsistencies and weaknesses in revenue requirements, 2) provide a robust framework for addressing revenue recognition issues, 3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets 4) provide more useful information to users of financial statements through improved disclosure requirements, and 5) simplify the preparation of financial statements. The updates are effective in annual reporting periods beginning after December 15, 2017 and the interim periods within that year. The Company is still evaluating the potential impacts that the implementation of these new revenue standards may have on its financial position, operational results, or cash flows. |
3. Fixed Assets, Net (Tables)
3. Fixed Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | As of June 30, 2017 As of December 31, 2016 Computer hardware and software $ 1,230,892 $ 219,590 Furniture, fixture and equipment 5,910 5,910 Total depreciable property and equipment 1,236,802 225,500 Less: accumulated depreciation and amortization (191,918 ) (97,216 ) Depreciable property, net 1,044,883 128,284 Assets under development 43,865 410,121 Fixed assets, net $ 1,088,748 $ 538,405 |
4. Stockholders' Equity (Tables
4. Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Restricted stock activity table | Shares Weighted Average Grant Date Fair Value Balance, December 31, 2015 1,293,056 $ 0.45 Granted 2,452,965 3.65 Issued (503,922 ) 4.30 Forfeited (688,142 ) 0.62 Balance, December 31, 2016 2,553,957 2.82 Granted 437,078 3.59 Issued (125,517 ) 1.27 Forfeited (107,325 ) 2.50 Balance, June 30, 2017 2,758,193 $ 2.52 |
Stock option activity table | Options Weighted Average Price Intrinsic Value Weighted Average Remaining Contractual Term (Years) Balance, December 31, 2015 7,281,250 $ 0.17 $ 0.17 6.75 Granted 4,130,000 1.53 – 9.75 Exercised (159,678 ) 0.13 1.42 – Forfeited (504,014 ) 1.19 3.36 – Balance, December 31, 2016 10,747,558 0.67 3.56 7.75 Granted 1,770,000 3.98 – 9.62 Exercised (25,000 ) 0.80 2.62 – Forfeited (275,000 ) 0.80 3.20 – Balance, June 30, 2017 12,217,558 1.15 1.65 7.10 Exercisable at June 30, 2017 7,902,033 0.46 2.40 6.10 Vested at June 30, 2017 7,959,461 $ 0.47 $ 2.41 6.13 |
3. Fixed Assets, Net (Details)
3. Fixed Assets, Net (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Property and equipment, gross | $ 1,236,802 | $ 225,500 |
Less: accumulated depreciation and amortization | (191,918) | (97,216) |
Depreciable property, net | 1,044,883 | 128,284 |
Assets under development | 43,865 | 410,121 |
Fixed assets, net | 1,088,748 | 538,405 |
Computer hardware and software [Member] | ||
Property and equipment, gross | 1,230,892 | 219,590 |
Furniture, fixtures and equipment [Member] | ||
Property and equipment, gross | $ 5,910 | $ 5,910 |
3. Fixed Assets, Net (Details N
3. Fixed Assets, Net (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 81,437 | $ 12,626 | $ 94,702 | $ 25,555 |
4. Stockholders' Equity (Detail
4. Stockholders' Equity (Details - Restricted Stock) - Restricted Stock [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Restricted stock, beginning balance | 2,553,957 | 1,293,056 |
Restricted stock granted | 437,078 | 2,452,965 |
Restricted stock issued | (125,517) | (503,922) |
Restricted stock forfeited | (107,325) | (688,142) |
Restricted stock, ending balance | 2,758,193 | 2,553,957 |
Restricted stock, beginning balance, Weighted Average Grant Date Fair Value | $ 2.82 | $ 0.45 |
Restricted stock granted, Weighted Average Grant Date Fair Value | 3.59 | 3.65 |
Restricted stock issued, Weighted Average Grant Date Fair Value | 1.27 | 4.30 |
Restricted stock forfeited, Weighted Average Grant Date Fair Value | 2.50 | 0.62 |
Restricted stock, ending balance, Weighted Average Grant Date Fair Value | $ 2.52 | $ 2.82 |
4. Stockholders' Equity (Deta18
4. Stockholders' Equity (Details - Option activity) - Stock Options [Member] - $ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options | |||
Options outstanding, beginning balance | 10,747,558 | 7,281,250 | |
Options granted | 1,770,000 | 4,130,000 | |
Options exercised | (25,000) | (159,678) | |
Options forfeited | (275,000) | (504,014) | |
Options outstanding, ending balance | 12,217,558 | 10,747,558 | 7,281,250 |
Options exercisable | 7,902,033 | ||
Options vested | 7,959,461 | ||
Weighted Average Exercise Price | |||
Weighted average exercise price, Options outstanding, beginning balance | $ 0.67 | $ 0.17 | |
Weighted average exercise price, Options granted | 3.98 | 1.53 | |
Weighted average exercise price, Options exercised | 0.80 | 0.13 | |
Weighted average exercise price, Options forfeited | 0.80 | 1.19 | |
Weighted average exercise price, Options outstanding, ending balance | 1.15 | 0.67 | $ 0.17 |
Weighted average exercise price, Options exercisable | .46 | ||
Weighted average exercise price, Options vested | .47 | ||
custom:IntrinsicValueAbstract | |||
Intrinsic value, Options outstanding, beginning balance | 3.56 | 0.17 | |
Intrinsic value, Options granted | |||
Intrinsic value, Options exercised | 2.62 | 1.42 | |
Intrinsic value, Options forfeited | 3.20 | 3.36 | |
Intrinsic value, Options outstanding, ending balance | 1.65 | $ 3.56 | $ 0.17 |
Intrinsic value, Options exercisable | 2.40 | ||
Intrinsic value, Options vested | $ 2.41 | ||
Weighted Average Contractual Term | |||
Weighted average remaining contractual term, Options granted | 9 years 7 months 13 days | 9 years 9 months | |
Weighted average remaining contractual term, Options outstanding | 7 years 1 month 6 days | 7 years 9 months | 6 years 9 months |
Weighted average remaining contractual term, Options exercisable | 6 years 1 month 6 days | ||
Weighted average remaining contractual term, Options vested | 6 years 1 month 17 days |
4. Stockholders' Equity (Deta19
4. Stockholders' Equity (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Proceeds from exercise of stock options | $ 20,000 | $ 1,000 | ||||
Stock repurchased and retired, shares | 1,307 | |||||
Payment for repurchase of shares, amount | $ 3,607 | 0 | ||||
Stock option expense (benefit) | $ (4,300,892) | $ 6,117,510 | $ (5,502,256) | $ 6,551,040 | ||
Pre 2013 Stock Options [Member] | ||||||
Options outstanding | 6,384,808 | 6,384,808 | ||||
Stock option expense (benefit) | $ (5,427,087) | $ (7,981,010) | ||||
Weighted average remaining contractual term | 5 years 3 months 22 days | |||||
Post 2013 Stock Options [Member] | ||||||
Stock options granted | 1,770,000 | |||||
Stock options granted, value | $ 6,433,748 | |||||
Assumptions - volatility range, minimum | 148.00% | |||||
Assumptions - volatility range, maximum | 157.00% | |||||
Assumptions - expected term | 6 years 3 months | |||||
Assumptions - risk free interest rate | 2.40% | |||||
Assumptions - dividend payments | $ 0 | |||||
Restricted Stock [Member] | ||||||
Unvested restricted stock awards remaining | 2,048,000 | 2,048,000 | ||||
Unrecognized compensation costs | $ 4,300,000 | $ 4,300,000 | ||||
Stock Options [Member] | ||||||
Stock issued for the exercise of stock options | 25,000 | 159,678 | ||||
Options outstanding | 12,217,558 | 12,217,558 | 10,747,558 | 7,281,250 | ||
Weighted average remaining contractual term | 7 years 1 month 6 days | 7 years 9 months | 6 years 9 months | |||
Stock options granted | 1,770,000 | 4,130,000 | ||||
Unrecognized compensation cost | $ 12,295,000 | $ 12,295,000 | ||||
Exercise of Options [Member] | ||||||
Stock issued for the exercise of stock options | 25,000 | |||||
Services [Member] | ||||||
Stock issued for services, shares | 799,322 | |||||
Stock issued for services, value | $ 3,533,289 | |||||
Modification of awards [Member] | ||||||
Stock option expense (benefit) | $ 368,000 | |||||
Accredited Investors [Member] | ||||||
Stock issued new, shares | 49,231 | |||||
Gross proceeds from private placement | $ 760,000 | |||||
Agents and Brokers [Member] | ||||||
Stock issued for settlement of commissions payable, shares | 667,159 | 459,190 | ||||
Stock issued for settlement of commissions payable, value | $ 1,759,905 | $ 459,568 |
3. Related Party Transactions (
3. Related Party Transactions (Details Narrative) - Hawkes [Member] | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Option granted, shares available for purchase | shares | 350,000 |
Exercise price per share | $ / shares | $ 4.22 |
Fair value of award | $ 1,333,501 |
Vesting period | 3 years |
Share based compensation | $ 216,770 |
Unrecognized compensation cost | $ 1,116,731 |