Marathon Digital (MARA) 10-K 5 Apr 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Mar. 15, 2017	Jun. 30, 2016
Document And Entity Information
Entity Registrant Name	Marathon Patent Group, Inc.
Entity Central Index Key	1,507,605
Document Type	10-K
Document Period End Date	Dec. 31, 2016
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 Public Float			$ 37.6
Entity Common Stock, Shares Outstanding		19,302,472
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash	$ 4,998,314	$ 2,555,151
Accounts receivable - net of allowance for bad debt of $387,976 and $375,750 for December 31, 2016 and December 31, 2015	95,069	136,842
Bonds posted with courts		1,748,311
Prepaid expenses and other current assets, net of discounts of $3,724 for December 31, 2016 and $3,414 for December 31, 2015	428,049	338,598
Total current assets	5,521,432	4,778,902
Other assets:
Property and equipment, net of accumulated depreciation of $108,407 and $67,052 for December 31, 2016 and December 31, 2015	28,329	61,297
Intangible assets, net	12,314,628	25,457,639
Deferred tax assets		12,437,741
Other non current assets, net of discounts of $797 and $4,831 for December 31, 2016 and December 31, 2015	201,203	9,169
Goodwill	222,843	4,482,845
Total other assets	12,767,003	42,448,691
Total Assets	18,288,435	47,227,593
Current liabilities:
Accounts payable and accrued expenses	7,217,078	6,534,825
Clouding IP earn out - current portion	81,930	33,646
Notes payable, net of discounts of $852,404 and $730,945 for December 31, 2016 and December 31, 2015	13,162,007	10,383,177
Total current liabilities	20,461,015	16,951,648
Long-term liabilities
Notes Payable, net of discounts of $572,763 and $1,425,167 for December 31, 2016 and December 31, 2015	4,670,502	12,223,884
Clouding IP earn out	1,400,082	3,281,238
Deferred tax liability		1,044,997
Revenue share liability	1,000,000	1,000,000
Other long term liability	43,978	50,084
Total long-term liabilities	7,114,562	17,600,203
Total liabilities	27,575,577	34,551,851
Stockholders' Equity (Deficit):
Common stock, $.0001 par value; 200,000,000 shares authorized: 18,552,472 and 14,867,141 at December 31, 2016 and December 31, 2015	1,877	1,487
Additional paid-in capital	49,877,689	43,217,513
Accumulated other comprehensive loss	(1,060,390)	(1,265,812)
Accumulated deficit	(57,942,548)	(29,277,524)
Total Marathon Patent Group stockholders' equity (deficit)	(9,123,294)	12,675,742
Non-controlling Interests	(163,848)
Total Equity (Deficit)	(9,287,142)	12,675,742
Total liabilities and stockholders' equity (deficit)	18,288,435	47,227,593
Series B preferred stock
Stockholders' Equity (Deficit):
Preferred stock Series B, $.0001 par value, 100,000,000 shares authorized: 782,004 issued and outstanding at December 31, 2016 and December 31, 2015	$ 78	$ 78

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Allowance for bad debt	$ 387,976	$ 375,750
Discounts on prepaid expenses and other current assets	3,724	3,414
Other assets:
Accumulated depreciation of property and equipment	108,407	67,052
Discount on other noncurrent assets	797	4,831
Current liabilities:
Discount on notes payable, current	852,404	730,945
Long-term liabilities
Discount on notes payable, long-term	$ 572,763	$ 1,425,167
Stockholders' Equity (Deficit):
Preferred stock, par value	$ 0.0001
Preferred stock, shares authorized	100,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	18,552,472	14,867,141
Common stock, shares outstanding	18,552,472	14,867,141
Series B preferred stock
Stockholders' Equity (Deficit):
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	782,004	782,004
Preferred stock, shares outstanding	782,004	782,004

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenues	$ 36,629,276	$ 18,977,794
Expenses
Cost of revenues	19,064,473	16,603,792
Amortization of patents and website	7,453,004	10,825,164
Compensation and related taxes	5,483,031	5,419,252
Consulting fees	1,279,092	2,324,248
Professional fees	1,797,922	2,548,492
General and administrative	840,179	1,143,869
Goodwill impairment	4,336,307	0
Patent impairment	11,958,882	5,793,409
Total operating expenses	52,212,890	44,658,226
Operating loss from continuing operations	(15,583,614)	(25,680,432)
Other income (expenses)
Other income (expense)	(57,454)	170,706
Foreign exchange gain (loss)	(367,847)	(61,868)
Change in fair value adjustment of Clouding IP earn out	1,832,872	6,137,116
Interest income	4,353	1,068
Interest expense	(3,140,375)	(4,245,982)
Loss on debt extinguishment		(1,416,915)
Total other income (expenses)	(1,728,451)	584,125
Loss before benefit for income taxes	(17,312,065)	(25,096,307)
Income tax benefit (expense)	(11,516,807)	8,156,448
Net loss	(28,828,872)	(16,939,859)
Net loss attributable to non-controlling interests	163,848
Net loss attributable to common shareholders	$ (28,665,024)	$ (16,939,859)
Loss per common share:
Basic and fully diluted (in dollars per share)	$ (1.89)	$ (1.19)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic and diluted (in shares)	15,178,056	14,208,787

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (28,828,872)	$ (16,939,859)
Other Comprehensive Loss:
Unrealized gain (loss) on foreign currency translation	205,422	(877,455)
Comprehensive loss	(28,623,450)	(17,817,314)
Net loss attributable to noncontrolling interest	163,848
Comprehensive loss attributable to Marathon Patent Group, Inc.	$ (28,459,602)	$ (17,817,314)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Preferred StockSeries B preferred stock	Preferred Stock	Common StockSeries B preferred stock	Common Stock	Add'l Paid in CapitalSeries B preferred stock	Add'l Paid in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Non-Controlling Interest	Series B preferred stock	Total
Beginning balance at Dec. 31, 2014		$ 93		$ 1,379		$ 36,977,169	$ (12,337,665)	$ (388,357)			$ 24,252,619
Beginning balance (in shares) at Dec. 31, 2014		932,000		13,791,460
Increase (decrease) in Stockholders' Equity
Equity compensation expense						2,490,175					2,490,175
Issue common stock for services				$ 21		900,479					900,500
Issue common stock for services (in shares)				210,000
Exercise of stock option and warrants				$ 4		18,745					18,749
Exercise of stock option and warrants (in shares)				31,276
Warrant issued in conjunction with debt financing						318,679					318,679
Common stock issued in conjunction with debt restructuring				$ 20		653,980					654,000
Common stock issued in conjunction with debt restructuring (in shares)				200,000
Common stock issued in conjunction with debt financing				$ 13		999,987					1,000,000
Common stock issued in conjunction with debt financing (in shares)				134,409
Common stock issued upon conversion of preferred stock	$ (20)		$ 20
Common stock issued upon conversion of preferred stock (in shares)	(199,996)		199,996
Preferred stock compensation	$ 5				$ 345,329					$ 345,334
Preferred stock compensation (in shares)	50,000
Issue common stock in litigation settlement				$ 30		512,970					513,000
Issue common stock in litigation settlement (in shares)				300,000
Currency translation loss								(877,455)			(877,455)
Net Loss							(16,939,859)				(16,939,859)
Ending balance at Dec. 31, 2015		$ 78		$ 1,487		43,217,513	(29,277,524)	(1,265,812)			12,675,742
Ending balance (in shares) at Dec. 31, 2015		782,004		14,867,141
Increase (decrease) in Stockholders' Equity
Equity compensation expense						1,817,344					1,817,344
Issue common stock for services				$ 18		135,982					136,000
Issue common stock for services (in shares)				180,000
Issue common stock				$ 349		4,653,731					4,654,080
Issue common stock (in shares)				3,481,997
Warrant issued in conjunction with debt financing						50					50
Warrant exercise to purchase common stock (in shares)				23,334
Warrant exercise to purchase common stock				$ 23		46,644					46,667
Convertible debt warrant repricing						6,425					6,425
Currency translation loss								205,422			205,422
Net Loss							(28,665,024)		$ (163,848)		(28,828,872)
Ending balance at Dec. 31, 2016		$ 78		$ 1,877		$ 49,877,689	$ (57,942,548)	$ (1,060,390)	$ (163,848)		$ (9,287,142)
Ending balance (in shares) at Dec. 31, 2016		782,004		18,552,472

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net loss	$ (28,828,872)	$ (16,939,859)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	4,262	7,578
Amortization of patents and website	7,453,004	10,825,164
Provision for allowance for doubtful accounts	12,226	375,750
Deferred tax asset	12,437,741	(7,618,580)
Deferred tax liability	(1,044,998)	(660,455)
Impairment of intangible assets	11,958,882	5,793,409
Impairment of goodwill	4,336,307	0
Stock based compensation	1,817,344	2,490,175
Stock issued for services	136,000	1,245,834
Loss on debt extinguishment		1,416,915
Non-cash interest, discount, and financing costs	1,223,341	2,220,992
Change in fair value of Clouding earnout	(1,832,872)	(6,137,116)
Other non-cash adjustments	121,617	260,938
Changes in operating assets and liabilities
Accounts receivable	29,547	(295,608)
Prepaid expenses and other assets	(81,486)	(116,791)
Bonds posted with courts	1,748,311	(45,915)
Accounts payable and accrued expenses	682,253	4,216,331
Net cash provided by (used in) operating activities	10,172,607	(2,961,238)
Cash flows from investing activities:
Acquisition of patents	(3,681,358)
Purchase of property, equipment, and other intangible assets	(8,388)	(58,386)
Net cash used in investing activities	(3,689,746)	(58,386)
Cash flows from financing activities:
Repayment of notes payable	(5,379,103)
Payment on MdR Escrow TLI		(50,000)
Cash received upon issuance of notes payable (net of issuance costs)		19,600,000
Cash received upon issuance of common stock (net of issuance costs)	4,654,130
Cash received upon exercise of warrants	46,667	18,751
Repayment of convertible notes payable		(5,050,000)
Payments on note payable, net	(375,805)	(181,626)
Net cash provided (used in) by financing activities	(4,007,890)	508,838
Effect of exchange rate changes on cash	(31,808)	(16,632)
Net increase (decrease) in cash	2,443,163	(2,527,418)
Cash at beginning of period	2,555,151	5,082,569
Cash at end of period	4,998,314	2,555,151
Cash paid for:
Interest expense	1,917,304	1,982,140
Taxes paid	43,052	168,378
Loan fees		400,000
Cash invested in 3DNano	788,097
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Common stock issued in conjunction with note payable		1,000,000
Warrant issued in conjunction with note payable		318,679
Revenue share liability incurred in conjunction with note payable		1,000,000
Common stock issued in conjunction with debt extinguishment		654,000
Includes officer loan	944,296
Conversion of AP to notes payable		705,093
Medtech And Orthophoenix
Cash flows from financing activities:
Repayment of notes payable	(2,953,779)	(4,318,287)
Orthophoenix, LLC
Cash flows from financing activities:
Repayment of notes payable		(5,500,000)
Sarif Biomedical, LLC
Cash flows from financing activities:
Repayment of notes payable		(276,250)
IP Liquidity
Cash flows from financing activities:
Repayment of notes payable		(1,109,375)
Dynamic Advances, LLC
Cash flows from financing activities:
Payment on MdR Escrow TLI		(2,624,375)
Orthophoenix, LLC
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Non-cash interest increase in debt assumed in an acquisition		$ 750,000
License | 3D Nano
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Note payable issuance in conjunction with the acquisition	100,000
GE | Patents
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Note payable issuance in conjunction with the acquisition	944,296
Seimens | Patents
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Note payable issuance in conjunction with the acquisition	$ 1,672,294

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2016
ORGANIZATION AND DESCRIPTION OF BUSINESS
ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS Organization Our business is to acquire patents and patent rights and to monetize the value of those assets to generate revenue and profit for the Company. We acquire patents and patent rights from their owners, who range from individual inventors to Fortune 500 companies. Part of our acquisition strategy is to acquire or invest in patents and patent rights that cover a wide-range of subject matter, which allows us to achieve the benefits of a growing diversified portfolio of assets. Generally, the patents and patent rights that we acquire are characterized by having large identifiable companies who are or have been using technology that infringes our patents and patent rights. We generally monetize our portfolio of patents and patent rights by entering into license discussions, and if that is unsuccessful, initiating enforcement activities against any infringing parties with the objective of entering into a standard form of comprehensive settlement and license agreement that may include the granting of non-exclusive retroactive and future rights to use the patented technology, a covenant not to sue, a release of the party from certain claims, the dismissal of any pending litigation and other terms that are appropriate in the circumstances. Our strategy has been developed with the expectation that it will result in a long-term, diversified revenue stream for the Company. Marathon Patent Group, Inc. (the “Company”), formerly American Strategic Minerals Corporation, was incorporated under the laws of the State of Nevada on February 23, 2010. On December 7, 2011, the Company changed its name to American Strategic Minerals Corporation from Verve Ventures, Inc., and increased the Company’s authorized capital to 200,000,000 shares of Common Stock, par value $0.0001 per share, and 100,000,000 shares of preferred stock, par value $0.0001 per share. In June 2012, the Company discontinued its exploration and potential development of uranium and vanadium minerals business. In October 2012, we discontinued our real estate business when our CEO joined the firm and we commenced our current business, at which time the Company’s name was changed to Marathon Patent Group, Inc. On August 1, 2012, the shareholders holding a majority of the Company’s voting capital voted in favor of (i) changing the name of the Company to Fidelity Property Group, Inc. and (ii) the adoption the 2012 Equity Incentive Plan and reserving 20,000,000 shares of Common Stock for issuance thereunder (the “2012 Plan”). The board of directors of the Company (the “Board of Directors”) approved the name change and the adoption of the 2012 Plan on August 1, 2012. The Company did not file an amendment to its Articles of Incorporation with the Secretary of State of Nevada and subsequently abandoned the decision to adopt the Fidelity Property Group, Inc. name. On October 1, 2012, the shareholders holding a majority of the Company’s voting capital had voted and authorized the Company to (i) change the name of the Company to Marathon Patent Group, Inc. and (ii) effectuate a reverse stock split of the Company’s Common Stock by a ratio of 3-for-2 (the “Reverse Split”) within one year from the date of approval of the stockholders of the Company. The Board of Directors approved the name change and the Reverse Split on October 1, 2012. The Board of Directors determined the name Marathon Patent Group, Inc. better reflects the long-term strategy in exploring other opportunities and the identity of the Company going forward. On February 15, 2013, the Company filed the Certificate of Amendment with the Secretary of State of the State of Nevada in order to effectuate the name change. On May 1, 2014, the Company issued 2,047,158 shares of Series A Convertible Preferred Stock and two-year warrants to purchase an aggregate of 511,790 shares of Common Stock in a private placement to accredited investors. All of the Series A Convertible Preferred Stock was automatically converted pursuant to the terms of the Series A Convertible Preferred Stock Certificate of Designation during the year ended December 31, 2014. The exercise price of the warrants is $3.75, after giving effect to the two-for-one stock dividend issued on December 22, 2014. The warrants expired on May 1, 2016. On May 2, 2014, the Company issued an aggregate of 782,000 shares of Series B Convertible Preferred Stock valued at $2,807,380 to acquire IP Liquidity Ventures, LLC, Dynamic Advances, LLC and Sarif Biomedical, LLC. On August 29, 2014, the Company entered into a patent purchase agreement to acquire a portfolio of patents from Clouding IP, LLC for an aggregate purchase price of $2.4 million, of which $1.4 million was paid in cash and $1.0 million was paid in the form of a promissory note issued by the Company that matured on October 31, 2014 and paid on October 1, 2014. The Company also issued 25,000 shares of its restricted common stock valued at $281,000 in connection with the acquisition. Clouding IP, LLC is also entitled to certain possible future cash payments. On September 17, 2014, the Company entered into a six-month consulting agreement (the “Consulting Agreement”) with GRQ Consultants, Inc. (“GRQ”), pursuant to which GRQ shall provide certain consulting services including, but not limited to, advertising, marketing, business development, strategic and business planning, channel partner development and other functions intended to advance the business of the Company. As consideration, GRQ shall be entitled to 200,000 shares of the Company’s Series B Convertible Preferred Stock, 50% of which vested upon execution of the Consulting Agreement, and 50% of which shall vest in six (6) equal monthly installments commencing on October 17, 2014. The first tranche of 100,000 shares of Series B Convertible Preferred Stock was issued to GRQ on October 6, 2014. In 2014, the Company issued 150,000 shares of Series B Convertible Preferred Stock for a value of $1,103,581, and in 2015, the Company issued 50,000 shares of Series B Convertible Preferred Stock for a value of $345,334. In addition, the Consulting Agreement allows for GRQ to receive additional shares of Series B Convertible Preferred Stock upon the achievement of certain performance benchmarks. No milestones were met and no additional shares were issued in 2015. The Consulting Agreement contained an acknowledgement that the conversion of the preferred stock into shares of the Company’s common stock is precluded by the beneficial ownership blockers set forth in the Series B Convertible Preferred Stock Certificate of Designation and in Section 17 of the 2014 Plan to ensure compliance with NASDAQ Listing Rule 5635(d). Every share of Series B Convertible Preferred Stock was convertible into two shares of Common Stock, after giving effect to the two-for-one stock dividend issued on December 22, 2014 and four shares of the Series B pursuant to this agreement remain outstanding. On October 10, 2014, the Company entered into an interest sale agreement with MedTech Development, LLC (“MedTech”) to acquire from MedTech 100% of the limited liability membership interests of OrthoPhoenix and TLIF as well as 100% of the shares of MedTech GmbH. In connection with the transaction, the Company paid MedTech $1 million at closing and is obligated to pay $1 million on each of the following nine (9) month anniversary dates of the closing. On July 16, 2015, the Company entered into a forbearance agreement (the “Agreement”) with MedTech Development, the holder of a Promissory Note issued by the Company, dated October 10, 2014. Pursuant to the Agreement, the term of the Note was extended to October 1, 2015 and the Note began accruing interest starting from May 13, 2015. In addition, the Company agreed to make certain mandatory prepayments under certain circumstances and issue to MedTech Development 200,000 shares of restricted common stock of the Company. In accordance with ASC 470-50, the Company recorded this agreement as debt extinguishment and $654,000 was recorded as loss on debt extinguishment during the year ended December 31, 2015. On October 23, 2015, the Company entered into Amendment No. 1 to the Forbearance Agreement (the “Amendment”) entered into with MedTech Development on July 16, 2015. Pursuant to the Amendment, the due date of the Promissory Note was extended to October 23, 2016 in return for which the Company made a payment of $100,000 on October 23, 2015 and modified the terms under which the Company agreed to make mandatory prepayments under certain circumstances. The acquired subsidiaries are also obligated to make certain additional payments to MedTech from recoveries following the receipt by the acquired subsidiaries of 200% of the purchase payments, plus recovery of out of pocket expenses in connection with patent claims. The participation payments may be paid, at the election of the Company, in common stock of the Company at the market price on the date of issuance. Enforcement activity related to the MedTech patents was completed in 2016 and no liabilities were outstanding as of December 31, 2016. On October 16, 2014, the Company sold to certain accredited investors an aggregate of $5,550,000 of principal amount of convertible notes due October 9, 2018, of which, $500,000 was outstanding as of December 31, 2016, along with two-year warrants to purchase 258,998 shares of the Company’s Common Stock, par value $0.0001 per share pursuant to a securities purchase agreement. The warrants were valued at $169,015 and were recorded as a discount to the fair value of the convertible notes. The notes and warrants are initially convertible into shares of the Company’s Common Stock at a conversion price of $7.50 per share and an exercise price of $8.25 per share, respectively. The conversion and exercise prices are subject to adjustment in the event of certain events, including stock splits and dividends. The notes bear interest at the rate of 11% per annum, payable quarterly in cash on each of the three, six, nine and twelve-month anniversary of the issuance date and on each conversion date. The Company reviewed the instruments in the context of ASC 480 and determined that the convertible notes should be recorded as a liability and analyzed the conversion feature and bifurcation pursuant to ASC 815 and ASC 470, respectively, to determine that there was no beneficial conversion feature and that the conversion feature should not be bifurcated. On January 29, 2015, the Company and certain of its subsidiaries entered into a series of agreements including a Securities Purchase Agreement (the “Fortress Purchase Agreement”) and a Subscription Agreement with DBD Credit Funding, LLC (“DBD”), an affiliate of Fortress Credit Corp., pursuant to which the Company sold to the purchasers: (i) $15,000,000 original principal amount of Senior Secured Notes (the “Fortress Notes”), (ii) a right to receive a portion of certain proceeds from monetization net revenues received by the Company (after receipt by the Company of $15,000,000 of monetization net revenues and repayment of the Fortress Notes), (iii) a five-year warrant (the “Fortress Warrant”) to purchase 100,000 shares of the Company’s Common Stock exercisable at $7.44 per share, subject to adjustment; and (iv) 134,409 shares of the Company’s Common Stock. Pursuant to the Fortress Purchase Agreement, as security for the payment and performance in full of the secured obligations, the Company and certain subsidiaries executed and delivered in favor of the purchasers a Security Agreement and a Patent Security Agreement, including a pledge of the Company’s interests in certain of its subsidiaries (together with the Fortress Purchase Agreement, the Fortress Notes and the Fortress Warrant, the “Fortress Documents”). On February 12, 2015, the Company exercised its right to require the purchasers to purchase an additional $5,000,000 of notes from the Company. On March 13, 2015, the Company settled a dispute with a former consultant whereby the Company issued the consultant 60,000 shares of Common Stock for a full release of all claims. For the three months ended March 31, 2015, certain holders of warrants exercised their warrants to purchase, in cash, 5,000 shares of the Company’s Common Stock. For the three months ended June 30, 2015, certain holders of options exercised their options to purchase, on a net exercise basis, 33,968 (net) shares of the Company’s Common Stock. On July 16, 2015, the Company entered into a forbearance agreement (the “Agreement”) with MedTech Development, the holder of a Promissory Note issued by the Company, dated October 10, 2014. Pursuant to the Agreement, among other terms, the Company issues to MedTech Development 200,000 shares of restricted common stock of the Company. In connection with this transaction, the Company valued the shares at the quoted market price on the date of grant at $3.27 per share or $654,000. The transaction did not involve any underwriters, underwriting discounts or commissions, or any public offering. The issuance of these securities was deemed to be exempt from the registration requirements of the Securities Act of 1933, as amended, by virtue of Section 4(a)(2) thereof, as a transaction by an issuer not involving a public offering. On August 14, 2015, the Company entered into a Business Combination Agreement (the “Business Combination Agreement”) with Marathon Group SA, a Luxembourg société anonyme (“Holdco”) and Uniloc Luxembourg SA, a Luxembourg société anonyme (“Uniloc”), and Uniloc Corporation Pty. Limited, an Australian corporation (“Uniloc Australia”). The Business Combination Agreement was subsequently terminated on February 23, 2016, without completion of the merger set forth in the Business Combination Agreement. On September 21, 2015, the Company issued 150,000 shares of the Company’s Common Stock to Alex Partners, LLC and Del Mar Consulting Group, Inc. pursuant to a services agreement entered into on September 21, 2015. In connection with this transaction, the Company valued the shares at the quoted market price on the date of grant at $2.23 per share or $334,500. The transaction did not involve any underwriters, underwriting discounts or commissions, or any public offering. The issuance of these securities was deemed to be exempt from the registration requirements of the Securities Act of 1933, as amended, by virtue of Section 4(a)(2) thereof, as a transaction by an issuer not involving a public offering. During the year ended December 31, 2015, 199,996 shares of the Series B Convertible Preferred Stock associated with the GRQ Consulting Agreement were converted into 199,996 shares of the Company’s Common Stock, leaving four shares of the Series B Convertible Preferred Stock associated with the GRQ Consulting Agreement outstanding. On November 4, 2015, the Company issued 300,000 shares of the Company’s Common Stock to Dominion Harbor Group LLC (“Dominion”), pursuant to a settlement agreement entered into with Dominion on October 30, 2015. In connection with this transaction, the Company valued the shares at the quoted market price on the date of grant at $1.71 per share or $513,000. The transaction did not involve any underwriters, underwriting discounts or commissions, or any public offering. The issuance of these securities was deemed to be exempt from the registration requirements of the Securities Act of 1933, as amended, by virtue of Section 4(a)(2) thereof, as a transaction by an issuer not involving a public offering. On December 9, 2015, the Company entered into an agreement with Melechdavid, Inc. (“Melechdavid”), pursuant to which the Company agreed to issue 100,000 shares of the Company’s Common Stock. In connection with this transaction, the Company valued the shares at the quoted market price on the date of grant at $1.61 per share or $161,000. The transaction did not involve any underwriters, underwriting discounts or commissions, or any public offering. The issuance of these securities was deemed to be exempt from the registration requirements of the Securities Act by virtue of Section 4(a)(2) thereof, as a transaction by an issuer not involving a public offering. On May 11, 2016, the Company entered into an agreement with the Cooper Law Firm, LLC (“Cooper”), pursuant to which the Company agreed to issue 80,000 shares of the Company’s Common Stock. In connection with this transaction, the Company valued the shares at the quoted market price on the date of grant at $1.70 per share or $136,000. The transaction did not involve any underwriters, underwriting discounts or commissions, or any public offering. The issuance of these securities was deemed to be exempt from the registration requirements of the Securities Act by virtue of Section 4(a)(2) thereof, as a transaction by an issuer not involving a public offering. On December 9, 2016, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain institutional investors for the sale of an aggregate of 3,481,997 shares of the Company’s common stock, at a purchase price of $1.50 per share, and warrants to purchase 1,740,995 shares of common stock for a purchase price of $0.01 per warrant. The exercise price of the warrants is $1.70. In conjunction with the offering, the Company issued a five-year warrant on December 14, 2016 to the underwriter to purchase 174,100 shares of the Company’s Common Stock at an exercise price of $1.73.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) and present the consolidated financial statements of the Company and its wholly owned and majority owned subsidiaries as of December 31, 2016. In the preparation of consolidated financial statements of the Company, intercompany transactions and balances are eliminated. Use of Estimates and Assumptions The preparation of financial statements in conformity with US GAAP 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. Actual results could differ from those estimates. Significant estimates made by management include, but are not limited to, estimating the useful lives of patent assets, the assumptions used to calculate fair value of warrants and options granted, goodwill and intangible assets impairment, realization of long-lived assets, valuation of Clouding IP earn out liability, deferred income taxes, unrealized tax positions and business combination accounting. Cash The Company considers all highly liquid debt instruments and other short-term investments with maturity of three months or less, when purchased, to be cash equivalents. The Company maintains cash and cash equivalent balances at one financial institution that is insured by the Federal Deposit Insurance Corporation. The Company’s accounts at this institution are insured, up to $250,000, by the Federal Deposit Insurance Corporation (“FDIC”). For the years ended December 31, 2016 and 2015, the Company’s bank balances exceeded the FDIC insurance limit. To reduce its risk associated with the failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds deposits. Accounts Receivable The Company has a policy of reserving for accounts based on its best estimate of the amount of probable credit losses in its existing accounts receivable. The Company periodically reviews its accounts receivable to determine whether an allowance is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt. Account balances deemed to be uncollectible are charged to the bad debt expense after all means of collection have been exhausted and the potential for recovery is considered remote. At December 31, 2016 and 2015, the Company had recorded an allowance for bad debts in the amounts of $387,976 and $375,750, respectively. Net accounts receivable at December 31, 2016 and 2015 were $95,069 and $136,842, respectively. Concentration of Revenue and Geographic Area Revenue from the Company’s patent enforcement activities is considered United States revenue as any payments for licenses included in that revenue are for United States operations irrespective of the location of the licensee’s or licensee’s parent home domicile. Revenues from the five largest licenses for the year ended December 31, 2016 accounted for approximately 97% of the Company’s total 2016 revenue and revenue from the largest five licenses in 2015 accounted for approximately 62% of the Company’s revenues for the year ended December 31, 2015. The Company derived these revenues from the one-time issuance of non-recurring, non-exclusive, non-assignable licenses. While the Company has a growing portfolio of patents, at this time, the Company expects that a significant portion of its future revenues will be based on one-time grants of similar non-recurring, non-exclusive, non-assignable licenses to a relatively small number of entities and their affiliates. Further, with the expected small number of firms with which the Company enters into license agreements, and the amount and timing of such license agreements, the Company also expects that its revenues may be highly variable from one period to the next. For the year ended December 31, 2016 the Company earned $161,000 of revenues in Germany. Amounts for the year ended December 31, 2015 were insignificant. At the current time, we define customers as firms that obtain licenses to the Company’s patents, either prior to or during enforcement litigation. These firms generally enter into non-recurring, non-exclusive, non-assignable license agreements with the Company, and these customers do not generally engage on ongoing, recurring business activity with the Company. The Company has historically had a small number of customers enter into such agreements, resulting in higher levels of revenue concentration. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition”. Revenue is recognized when (i) persuasive evidence of an arrangement exists, (ii) all obligations have been substantially performed, (iii) amounts are fixed or determinable and (iv) collectability of amounts is reasonably assured. In general, revenue arrangements provide for the payment of contractually determined fees in consideration for the grant of certain intellectual property rights for patented technologies owned or controlled by the Company. These rights typically include some combination of the following: (i) the grant of a non-exclusive, perpetual license to use patented technologies owned or controlled by the Company, (ii) a covenant-not-to-sue, (iii) the dismissal of any pending litigation. The intellectual property rights granted typically are perpetual in nature. Pursuant to the terms of these agreements, the Company has no further obligation with respect to the grant of the non-exclusive licenses, covenants-not-to-sue, releases, and other deliverables, including no express or implied obligation on the Company’s part to maintain or upgrade the technology, or provide future support or services. Generally, the agreements provide for the grant of the licenses, covenants-not-to-sue, releases, and other significant deliverables upon execution of the agreement. As such, the earnings process is complete and revenue is recognized upon the execution of the agreement, when collectibility is reasonably assured, and when all other revenue recognition criteria have been met. The Company also considers the revenue generated from its settlement and licensing agreements as one unit of accounting under ASC 605-25, “Multiple-Element Arrangements” as the delivered items do not have value to customers on a standalone basis, there are no undelivered elements and there is no general right of return relative to the license. Under ASC 605-25, the appropriate recognition of revenue is determined for the combined deliverables as a single unit of accounting and revenue is recognized upon delivery of the final elements, including the license for past and future use and the release. Also, due to the fact that the settlement element and license element for past and future use are the Company’s major central business, the Company presents these two elements as one revenue category in its statement of operations. The Company does not expect to provide licenses that do not provide some form of settlement or release. Revenue from patent enforcement activities accounted for 100% of the Company’s revenues for the years ended December 31, 2016 and December 31, 2015. Prepaid Expenses Prepaid expenses of $428,049 and $338,598 at December 31, 2016 and 2015, respectively, consist primarily of costs paid for future services that will occur within a year. Prepaid expenses include prepayments in cash and in equity instruments for investor relations public relations services, business advisory, other consulting and prepaid insurance, all of which assets are being amortized over the terms of their respective agreements. Bonds Posted With Courts Under certain circumstances related to litigations in Germany, the Company is either required to or may decide to enter a bond with the courts. As of December 31, 2016 and December 31, 2015, the Company had outstanding bonds in the amount of $0 and $1,748,311, respectively. These bonds were entered into in Germany after the first instance of litigation of some of the Company’s patents in German courts and the difference in the balance of the litigation bonds at December 31, 2016 compared to December 31, 2015 is attributable to the repayment of all outstanding bonds. Related Party Transactions Parties are considered related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. On May 10, 2016, the Company entered into an executive employment agreement with Erich Spangenberg pursuant to which Mr. Spangenberg became the Company’s Director of Acquisitions, Licensing and Strategy. On May 13, 2013, we entered into a six-year advisory services agreement (the “Advisory Services Agreement”) with IP Navigation Group, LLC (“IP Nav”), of which Erich Spangenberg is founder and former Chief Executive Officer. Mr. Spangenberg is an affiliate of the Company. The terms of the Advisory Services Agreement provide that, in consideration for its services as intellectual property licensing agent, the Company will pay to IP Navigation Group, LLC between 10% and 20% of the gross proceeds of certain licensing campaigns in which IP Navigation Group, LLC acts as intellectual property licensing agent. On November 18, 2013, we entered into Amendment No. 1 to the Executive Employment Agreement with our Chief Executive Officer and Chairman, Doug Croxall, pursuant to which Mr. Croxall’s base salary was raised to $480,000, subject to a 3% increase every year commencing on November 14, 2014. We also granted Mr. Croxall a bonus of $350,000 and ten-year stock options to purchase an aggregate of 100,000 shares of our Common Stock, with a strike price of $5.93 per share (representing the closing price on the date of grant), vesting in twenty-four (24) equal installments on each monthly anniversary of the date of grant. On November 18, 2013, we entered into a consulting agreement with Jeff Feinberg (“Feinberg Agreement”), pursuant to which we agreed to grant Mr. Feinberg 100,000 shares of our restricted Common Stock, 50% of which shall vest on the one-year anniversary of the Feinberg Agreement and the remaining 50% of which shall vest on the second-year anniversary of the Feinberg Agreement. Mr. Feinberg is the trustee of The Feinberg Family Trust and holds voting and dispositive power over shares held by The Feinberg Family Trust, which is a 10% beneficial owner of our Common Stock. On May 2, 2014, the Company completed the acquisition of certain ownership rights (the “Acquired Intellectual Property”) from TechDev, Granicus and SFF pursuant to the terms of three purchase agreements between: (i) the Company, TechDev, SFF and DA Acquisition LLC, a newly formed Texas limited liability company and wholly-owned subsidiary of the Company; (ii) the Company, Granicus, SFF and IP Liquidity Ventures Acquisition LLC, a newly formed Delaware limited liability company and wholly-owned subsidiary of the Company; and (iii) the Company, TechDev, SFF and Sarif Biomedical Acquisition LLC, a newly formed Delaware limited liability company and wholly-owned subsidiary of the Company. TechDev, SFF and Granicus are owned or controlled by Erich Spangenberg or family members or associates. · Pursuant to the DA Agreement, the Company acquired 100% of the limited liability company membership interests of Dynamic Advances, LLC, a Texas limited liability company, in consideration for: (i) two cash payments of $2,375,000, one payment due at closing and the other payment was due on or before June 30, 2014, with such second payment being subject to increase to $2,850,000 if not made on or before June 30, 2014; and (ii) 195,500 shares of the Company’s Series B Convertible Preferred Stock. The remaining cash payment was made on April 1, 2015 and is fully paid. Under the terms of the DA Agreement, TechDev and SFF are entitled to possible future payments for a maximum consideration of $250,000,000 pursuant to the Pay Proceeds Agreement described below. · Pursuant to the IP Liquidity Agreement, the Company acquired 100% of the limited liability company membership interests of IP Liquidity Ventures, LLC, a Delaware limited liability company, in consideration for: (i) two cash payments of $2,375,000, one payment due at closing and the other payment was due on or before June 30, 2014, with such second payment being subject to increase to $2,850,000 if not made on or before June 30, 2014; and (ii) 195,500 shares of the Company’s Series B Convertible Preferred Stock. The remaining cash payment was made on April 1, 2015 and is fully paid. Under the terms of the IP Liquidity Agreement, Granicus and SFF are entitled to possible future payments for a maximum consideration of $250,000,000 pursuant to the Pay Proceeds Agreement described below. · Pursuant to the Sarif Agreement, the Company acquired 100% of the limited liability company membership interests of Sarif Biomedical, LLC, a Delaware limited liability company, in consideration for two cash payments of $250,000, one payment due at closing and the other payment was due on or before June 30, 2014, with such second payment being subject to increase to $300,000 if not made on or before June 30, 2014. The remaining cash payment was made on February 24, 2015 and is fully paid. Under the terms of the Sarif Agreement, TechDev and SFF are entitled to possible future payments for a maximum consideration of $250,000,000 pursuant to the Pay Proceeds Agreement described below. · Pursuant to the Pay Proceeds Agreement, the Company may pay the sellers a percentage of the net recoveries (gross revenues minus certain defined expenses) that the Company makes with respect to the assets held by the entities that the Company acquired pursuant to the DA Agreement, the IP Liquidity Agreement and the Sarif Agreement. Under the terms of the Pay Proceeds Agreement, as amended in 2016, if the Company recovers $10,000,000 or less with regard to the IP Assets, then nothing is due to the sellers; if the Company recovers between $13,000,000 and $40,000,000 with regard to the IP Assets, then the Company shall pay 40% of the cumulative gross proceeds of such recoveries to the sellers; and if the Company recovers over $40,000,000 with regard to the IP Assets, the Company shall pay 50% of the cumulative gross proceeds of such recoveries to the sellers. Pursuant to the amendment to the Pay Proceeds Agreement, the Company paid TechDev, Granicus and SFF $2.4 million. In no event will the total payments made by the Company under the Pay Proceeds Agreement exceed $250,000,000. On May 2, 2014, we entered into an opportunity agreement (the “Marathon Opportunity Agreement”) with Erich Spangenberg, who is an affiliate of the Company. The terms of the Marathon Opportunity Agreement provide that we have ten business days after receiving notice from Mr. Spangenberg to provide up to 50% of the funding for certain opportunities relating to the licensing, intellectual property acquisitions and/or intellectual property enforcement actions in which Mr. Spangenberg, IP Nav or any entity controlled by Mr. Spangenberg, other than: (i) IP Nav or any of its affiliates, and (ii) Medtech Development, LLC or any of its affiliates. On June 17, 2014, Selene Communication Technologies Acquisition LLC (“Acquisition LLC”), a Delaware limited liability company and newly formed wholly-owned subsidiary of the Company, entered into a merger agreement with Selene Communication Technologies, LLC (“Selene”). Selene owned a patent portfolio consisting of three United States patents in the field of search and network intrusion that relate to tools for intelligent searches applied to data management systems as well as global information networks such as the internet. IP Nav provided patent monetization and support services under an existing agreement with Selene prior to the return of the patents to Stanford Research Institute (“SRI”), the original owners of the patents. On August 29, 2014, the Company entered into a patent purchase agreement to acquire a portfolio of patents from Clouding IP, LLC for an aggregate purchase price of $2.4 million, of which $1.4 million was paid in cash and $1.0 million was paid in the form of a promissory note issued by the Company that matured on October 31, 2014 and was fully paid prior to the maturation date. The Company also issued 25,000 shares of its restricted common stock in connection with the acquisition. Clouding IP, LLC is also entitled to certain possible future cash payments. Clouding IP LLC is owned or controlled by Erich Spangenberg or family members or associates. On October 10, 2014, the Company entered into an interest sale agreement with MedTech Development, LLC (“MedTech”) to acquire from MedTech 100% of the limited liability membership interests of OrthoPhoenix and TLIF as well as 100% of the shares of MedTech GmbH. In connection with the transaction, the Company is obligated to pay to MedTech $1 million at closing and $1 million on each of the following nine (9) month anniversary dates of the closing. On July 16, 2015, the Company entered into a forbearance agreement (the “Agreement”) with MedTech Development, the holder of a Promissory Note issued by the Company, dated October 10, 2014. Pursuant to the Agreement, the term of the Note was extended to October 1, 2015 and the Note began accruing interest starting from May 13, 2015. In addition, the Company agreed to make certain mandatory prepayments under certain circumstances and issue to MedTech Development 200,000 shares of restricted common stock of the Company. In accordance with ASC 470-50, the Company recorded this agreement as debt extinguishment and $654,000 was recorded as loss on debt extinguishment during the year ended September 30, 2015. On October 23, 2015, the Company entered into Amendment No. 1 to the Forbearance Agreement (the “Amendment”) entered into with MedTech Development on July 16, 2015. Pursuant to the Amendment, the due date of the Promissory Note was extended to October 23, 2016 in return for which the Company made a payment of $100,000 on October 23, 2015 and modified the terms under which the Company agreed to make mandatory prepayments under certain circumstances. The acquired subsidiaries are also obligated to make certain additional payments to MedTech from recoveries following the receipt by the acquired subsidiaries of 200% of the purchase payments, plus recovery of out of pocket expenses in connection with patent claims. The participation payments may be paid, at the election of the Company, in common stock of Marathon at the market price on the date of issuance. In connection with the transaction, the Company entered into a promissory note, common interest agreement and in the event of issuance of common stock to MedTech, will enter into a lockup and registration rights agreement. Approximately forty-five percent (45%) of MedTech is owned or controlled by Erich Spangenberg or family members or associates. On October 1, 2016, one of the Company’s subsidiaries, PG Technologies S.a.r.l. entered into an advisory services agreement with Granicus IP, LLC, an entity owned or controlled by one of the Company’s employees, whereby Granicus receives a percentage of pre-tax return from PG Technologies after certain revenue thresholds have been met. During 2016, certain officers and directors of the Company received restricted common stock in the Company’s 3D Nano subsidiary. Fair Value of Financial Instruments The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. The carrying amounts reported in the consolidated balance sheet for cash, accounts receivable, accounts payable, and accrued expenses, approximate their estimated fair market value based on the short-term maturity of these instruments. The carrying value of notes payable and other long-term liabilities approximate fair value as the related interest rates approximate rates currently available to the Company. The Clouding IP earn out liability was determined to be a Level 3 liability, which requires fair assessment of fair value at each period end by using a discounted cash flow model as the valuation methodology, using unobservable inputs, such as revenue and expenses forecasts, timing of proceeds, and discount rates. Based on the reassessment of fair value as of December 31, 2016, the Company determined the Clouding IP earn out liability to be $81,930 (current portion) and $1,400,082 (long-term portion), which resulted in a gain from exchange in fair value adjustment of $1,832,872 for the year ended December 31, 2016. Further, the periodic reassessment resulted in a non-routine impairment of the Clouding patent intangible assets of $3,089,983 for the year ended December 31, 2016. Under certain circumstances related to litigations in Germany, the Company is either required to or may decide to enter a bond with the courts. As of December 31, 2016 and December 31, 2015, the Company had outstanding bonds in the amount of $0 and $1,748,311, respectively. These bonds were entered into in Germany after the first instance of litigation of some of the Company’s patents in German courts and the difference in the balance of the litigation bonds at December 31, 2016 compared to December 31, 2015 is attributable to the repayment of all outstanding bonds. The Company adjusts the value of the bonds at the end of each reporting period to reflect changes to the exchange rate between the Euro and the US Dollar. Accounting for Acquisitions In the normal course of its business, the Company makes acquisitions of patent assets and may also make acquisitions of businesses. With respect to each such transaction, the Company evaluates facts of the transaction and follows the guidelines prescribed in accordance with ASC 805 — Business Combinations to determine the proper accounting treatment for each such transaction and then records the transaction in accordance with the conclusions reached in such analysis. The Company performs such analysis with respect to each material acquisition within the consolidated group of entities. Income Taxes The Company accounts for income taxes pursuant to the provision of ASC 740-10, “Accounting for Income Taxes” which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized. The Company follows the provision of the ASC 740-10 related to Accounting for Uncertain Income Tax Position. When tax returns are filed, it is more likely than not that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is most likely that not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions will more likely than not be upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits. The federal and state income tax returns of the Company are subject to examination by the Internal Revenue Service and state taxing authorities, generally for three years after they were filed. The Company is in the process of filing the 2016 tax returns. After review of the prior year financial statements and the results of operations through December 31, 2016, the Company has recorded a full valuation allowance on its deferred tax asset. Basic and Diluted Net Loss per Share Net loss per common share is calculated in accordance with ASC Topic 260: Earnings Per Share (“ASC 260”). Basic loss per share is computed by dividing net loss by the weighted average number of shares of Common Stock outstanding during the period. The computation of diluted net loss per share does not include dilutive Common Stock equivalents in the weighted average shares outstanding, as they would be anti-dilutive. As of December 31, 2016, the Company has warrants to purchase 466,078 shares of Common Stock outstanding, options to purchase 3,516,136 shares of Common Stock outstanding, convertible notes convertible into 66,667 shares of Common Stock outstanding and 782,004 shares of Series B Convertible Preferred Stock convertible into 782,004 shares of Common Stock outstanding, all of which were excluded from the computation of diluted shares outstanding as they would have had an anti-dilutive impact on the Company’s net loss per share computation. The following table sets forth the computation of basic and diluted loss per share on a GAAP basis: For the Year Ended For the Year Ended Net loss attributable to Common Shareholders $ ) $ ) Denominator Weighted Average Common Shares - Basic Weighted Average Common Shares - Diluted Earnings (Loss) per common share: Earnings (Loss) - Basic $ ) $ ) Earnings (Loss) - Diluted $ ) $ ) Intangible Assets - Patents Intangible assets include patents purchased and patents acquired in lieu of cash in licensing transactions. The patents purchased are recorded based on the cost to acquire them and patents acquired in lieu of cash are recorded at their fair market value. The costs of these assets are amortized over their remaining useful lives. Useful lives of intangible assets are periodically evaluated for reasonableness and the assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may no longer be recoverable. The Company recorded impairment charges to its intangible assets during the year ended December 31, 2016 in the amount of $11,958,882, associated with the end of life of a number of the Company’s portfolios, compared to an impairment charge in the amount of $5,793,409 during the year ended December 31, 2015 associated with the reduction in the carrying value of one the Company’s portfolios. Goodwill Goodwill is tested for impairment at the reporting unit level at least annually in accordance with ASC 350, and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. When conducting its annual goodwill impairment assessment, the Company initially performs a qualitative evaluation of whether it is more likely than not that goodwill is impaired. If it is determined by a qualitative evaluation that it is more likely than not that goodwill is impaired, the Company then applies a two-step impairment test. The two-step impairment test first compares the fair value of the Company’s reporting unit to its carrying or book value. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired. If the carrying value of the reporting unit exceeds its fair value, the Company determines the implied fair value of the reporting unit’s goodwill and if the carrying value of the reporting unit’s goodwill exceeds its implied fair value, then an impairment loss equal to the difference is recorded in the consolidated statement of operations. The Company performs the annual testing for impairment of goodwill at the reporting unit level during the quarter ended September 30. For the year ended December 31, 2016, the Company recorded an impairment charge to its goodwill in the amount of $4,336,307, and for the year ended December 31, 2015, the Company recorded no impairment charge to its goodwill. Other Intangible Assets In accordance with ASC 350-30, “Intangibles - Goodwill and Others”, the Company assesses the impairment of identifiable intangibles whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors the Company considers to be important which could trigger an impairment review include the following: (1) significant underperformance relative to expected historical or projected future operating results; (2) significant changes in the manner of use of the acquired assets or the strategy for the overall business; and (3) significant negative industry or economic trends. When the Company determines that the carrying value of intangibles may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flows, the Company records an impairment charge. The Company measures any impairment based on a projected discounted cash flow method using a discount rate determined by management to be commensurate with the risk inherent in the current business model. Impairment of Long-lived Assets The Company accounts for the impairment or disposal of long-lived assets according to the ASC 360 “Property, Plant and Equipment”. The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of long-lived assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated future net undiscounted cash flows that the Company expects to be generated by the asset. When necessary, impaired assets are written down to estimated fair value based on the best information available. Estimated fair value is generally based on either appraised value or measured by discounting estimated future cash flows. Considerable management judgment is necessary to estimate discounted future cash flows. Accordingly, actual results could vary significantly from such estimates. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The Company did not record any impairment charges on its long-lived assets during the years ended December 31, 2016 and 2015. Stock-based Compensation Stock-b

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2016
ACQUISITIONS
ACQUISITIONS	NOTE 3 — ACQUISITIONS Dynamic Advances, IP Liquidity and Sarif Biomedical On May 2, 2014, the Company completed the acquisition of certain ownership rights (the “Acquired Intellectual Property”) from TechDev, Granicus IP, LLC (“Granicus”) and SFF pursuant to the terms of three purchase agreements between: (i) the Company, TechDev, SFF and DA Acquisition LLC, a newly formed Texas limited liability company and wholly-owned subsidiary of the Company; (ii) the Company, Granicus, SFF and IP Liquidity Ventures Acquisition LLC, a newly formed Delaware limited liability company and wholly-owned subsidiary of the Company; and (iii) the Company, TechDev, SFF and Sarif Biomedical Acquisition LLC, a newly formed Delaware limited liability company and wholly-owned subsidiary of the Company (the “DA Agreement,” the “IP Liquidity Agreement” and the “Sarif Agreement,” respectively and the collective transactions, the “Acquisitions”). Dynamic Advances Pursuant to the DA Agreement, the Company acquired 100% of the limited liability company membership interests of Dynamic Advances, LLC, a Texas limited liability company, in consideration for: (i) two cash payments totaling $5,225,000; and (ii) 391,000 shares of the Company’s Series B Convertible Preferred Stock. Under the terms of the DA Agreement, TechDev and SFF are entitled to possible future payments for a maximum consideration of $250,000,000 pursuant to the Pay Proceeds Agreement described below. Dynamic Advances, LLC holds exclusive license to monetize certain patents owned by a third party. On May 2, 2014, the Company issued TechDev and SFF a promissory note in order to evidence the second cash payment due under the terms of the DA Agreement in the amount of $2,375,000 due on or before September 30, 2014, with such amount due under the terms of the promissory note being subject to increase to $2,850,000 if the Company’s payment pursuant to the terms of the DA Agreement are not made on or before June 30, 2014. The Company did not make the payment prior to June 30, 2014 and the promissory note matured on September 30, 2014. Effective September 30, 2014, TechDev and SFF extended the maturity to March 31, 2015 in return for a payment of $249,375, payable within thirty days. The payment for this extension of the maturity date was made on October 10, 2014 and the loan was paid off on April 1, 2015. The promissory note did not otherwise include any interest payable by the Company. Since the Company did not make the payment on the promissory note prior to June 30, 2014, the Company included in the consideration paid for Dynamic Advances the promissory note balance of $2,850,000. Further, the Company had the Series B Convertible Preferred Stock valued by a third party firm that determined, based on the rights and privileges of the Series B Convertible Preferred Stock, that it was on par with the value of the Company’s Common Stock. The total amount of consideration paid by the Company for Dynamic Advances, including capitalized costs associated with the purchase, was $6,653,078. After evaluating the facts and circumstances of the purchase, the Company determined that this was an asset purchase. In coming to its conclusion, the Company reviewed the status of the assets, the historical activity and the absence of any employees, licenses, revenues, and any other assets other than the IP Assets. Further, as there are no assumed licensees or historical revenues, the Company is not certain that it will be able to obtain access to customers pursuant to AC 805-10-55-7. IP Liquidity Pursuant to the IP Liquidity Agreement, the Company acquired 100% of the limited liability company membership interests of IP Liquidity Ventures, LLC, a Delaware limited liability company, in consideration for: (i) two cash payments totaling $5,225,000; and (ii) 391,000 shares of the Company’s Series B Convertible Preferred Stock. Under the terms of the IP Liquidity Agreement, Granicus and SFF are entitled to possible future payments for a maximum consideration of $250,000,000 pursuant to the Pay Proceeds Agreement described below. IP Liquidity Ventures, LLC holds contract rights to the proceeds from the monetization of certain patents owned by a number of third parties. On May 2, 2014, the Company issued Granicus and SFF a promissory note in order to evidence the second cash payment due under the terms of the IP Liquidity Agreement in the amount of $2,375,000 due on or before September 30, 2014, with such amount due under the terms of the promissory note being subject to increase to $2,850,000 if the Company’s payment pursuant to the terms of the IP Liquidity Agreement are not made on or before June 30, 2014. The Company did not make the payment prior to June 30, 2014 and the promissory note matured on September 30, 2014. Effective September 30, 2014, Granicus and SFF extended the maturity to March 31, 2015 in return for a payment of $249,375, payable within thirty days. The payment for this extension of the maturity date was made on October 10, 2014 and the loan was paid off on April 1, 2015. The promissory note did not otherwise include any interest payable by the Company. Since the Company did not make the payment on the promissory note prior to June 30, 2014, the Company included in the consideration paid for IP Liquidity the promissory note balance of $2,850,000. Further, the Company had the Series B Convertible Preferred Stock valued by a third party firm that determined, based on the rights and privileges of the Series B Convertible Preferred Stock that it was on par with the value of the Company’s Common Stock. The total amount of consideration paid by the Company for IP Liquidity, including capitalized costs associated with the purchase, was $6,653,078. After evaluating the facts and circumstances of the purchase, the Company determined that this was an asset purchase. In coming to its conclusion, the Company reviewed the status of the assets, the historical activity and the absence of any employees, licenses, revenues, and any other assets other than the IP Assets. Further, as there are no assumed licensees or historical revenues, the Company is not certain that it will be able to obtain access to customers pursuant to AC 805-10-55-7. Sarif Biomedical Pursuant to the Sarif Agreement, the Company acquired 100% of the limited liability company membership interests of Sarif Biomedical, LLC, a Delaware limited liability company, in consideration for two cash payments totaling $550,000. Under the terms of the Sarif Agreement, TechDev is entitled to possible future payments for a maximum consideration of $250,000,000 pursuant to the Pay Proceeds Agreement described below. Sarif Biomedical, LLC holds ownership rights to certain patents. On May 2, 2014, the Company issued TechDev a promissory note in order to evidence the second cash payment due under the terms of the Sarif Agreement in the amount of $250,000 due on or before September 30, 2014, with such amount due under the terms of the promissory note being subject to increase to $300,000 if the Company’s payment pursuant to the terms of the Sarif Agreement are not made on or before September 30, 2014. The Company did not make the payment prior to June 30, 2014 and the promissory note matured on September 30, 2014. Effective September 30, 2014, TechDev extended the maturity to March 31, 2015 in return for a payment of $26,250, payable within thirty days. The payment for this extension of the maturity date was made on October 10, 2014 and the loan was paid off on February 24, 2015. The promissory note did not otherwise include any interest payable by the Company. Since the Company did not make the payment on the promissory note prior to June 30, 2014, the Company included in the consideration paid for Dynamic Advances the higher principal amount of the promissory note. The total amount of consideration paid by the Company for Sarif Biomedical, including capitalized costs associated with the purchase, was $552,024. After evaluating the facts and circumstances of the purchase, the Company determined that this was an asset purchase. In coming to its conclusion, the Company reviewed the status of the assets, the historical activity and the absence of any employees, licenses, revenues, and any other assets other than the IP Assets. Further, as there are no assumed licensees or historical revenues, the Company is not certain that it will be able to obtain access to customers pursuant to AC 805-10-55-7. Dynamic Advances, IP Liquidity and Sarif Biomedical Pursuant to the Pay Proceeds Agreement, the Company may pay the sellers a percentage of the net recoveries (gross revenues minus certain defined expenses) that the Company makes with respect to the assets held by the entities that the Company acquired pursuant to the DA Agreement, the IP Liquidity Agreement and the Sarif Agreement (the “IP Assets”). Under the terms of the Pay Proceeds Agreement, if the Company recovers $10,000,000 or less with regard to the IP Assets, then nothing is due to the sellers; if the Company recovers between $10,000,000 and $40,000,000 with regard to the IP Assets, then the Company shall pay 40% of the net proceeds of such recoveries to the sellers; and if the Company recovers over $40,000,000 with regard to the IP Assets, the Company shall pay 50% of the net proceeds of such recoveries to the sellers. In no event will the total payments made by the Company under the Pay Proceeds Agreement exceed $250,000,000. Pursuant to a Registration Rights Agreement with the sellers (the “Acquisition Registration Rights Agreement”), the Company agreed to file a “resale” registration statement with the SEC covering at least 10% of the registrable shares of the Company’s Series B Convertible Preferred Stock issued to the sellers under the terms of the DA Agreement and the IP Liquidity Agreement, at any time on or after November 2, 2014 upon receipt of a written demand from the sellers which describes the amount and type of securities to be included in the registration and the intended method of distribution thereof. The Company shall not be required to file more than three such registration statements not more than sixty days after the receipt of each such written demand from the sellers. TechDev and Mr. Erich Spangenberg (the founder of IP Nav) and his spouse Audrey Spangenberg have jointly filed a Schedule 13G and are deemed to be affiliates of the Company. Clouding Corp. On August 29, 2014, the Company entered into a patent purchase agreement (the “Clouding Agreement”) between Clouding Corp., a Delaware corporation and a wholly owned subsidiary of the Company (“Clouding”) and Clouding IP, LLC, a Delaware limited liability company (“Clouding IP”), pursuant to which Clouding acquired a portfolio of patents from Clouding IP. Clouding owns patents related to network and data management technology. The Company paid Clouding IP (i) $1.4 million in cash, (ii) $1.0 million in the form of a promissory note issued by the Company that matures on October 31, 2014, (iii) 50,000 shares of its restricted Common Stock valued at $281,000 and (iv) fifty percent (50%) of the net recoveries (gross revenues minus certain defined expenses) in excess of $4.0 million in net revenues that the Company makes with respect to the patents purchased from Clouding IP. The Company valued the Common Stock at the fair market value on the date of the Interests Sale Agreement at $5.62 per share or $281,000 and the promissory note was paid in full prior to October 31, 2014. The revenue share under item (iv) above was booked as an earn out liability on the balance sheet in accordance with the appraisal of the consideration and intangible value. The Company booked a payable to the sellers pursuant to the earn out liability in the amount of $2,148,000 at September 30, 2014, based on license agreements entered into during the quarter. No further amount is owed until the Company generates additional revenue, if any, from the Clouding patents. The Company accounted for the acquisition as a business combination in accordance with ASC 805 “Business Combinations”. The Company engaged a third party valuation firm to determine the fair value of the assets purchases, and the net purchase price paid by the Company was subsequently allocated to assets acquired and liabilities assumed on the records of the Company as follows: Intangible assets $ Goodwill Net purchase price $ Total consideration paid of the following: Cash $ Promissory Note Common Stock Earn-Out Liability Net purchase price $ Upon further evaluation, the total value of the earn-out liability was reduced, measured as of the acquisition date, to reflect certain underlying changes in the litigation schedule. Historical financial statements of Clouding and the pro forma condensed combined consolidated financial statements can be found on the Form 8-K/A filed with the SEC on November 12, 2014. The unaudited pro forma condensed combined consolidated financial statements are not necessarily indicative of the results that actually would have been attained if the merger had been in effect on the dates indicated or which may be attained in the future. Such statements should be read in conjunction with the historical financial statements of the Company. The Clouding IP earn out liability was determined to be a Level 3 liability, which requires fair assessment of fair value at each period end by using a discounted cash flow model as the valuation methodology, using unobservable inputs, such as revenue and expenses forecasts, timing of proceeds, and discount rates. Based on the reassessment of fair value as of December 31, 2016, the Company determined the Clouding IP earn out liability to be $81,930 (current portion) and $1,400,082 (long-term portion), which resulted in a gain from exchange in fair value adjustment of $1,832,872 for the year ended December 31, 2016. Further, the periodic reassessment resulted in a non-routine impairment of the Clouding patent intangible assets of $3,089,983 for the year ended December 31, 2016. Medtech Group On October 13, 2014, Medtech Group Acquisition Corp (“Medtech Corp.”), a Texas corporation and newly formed wholly-owned subsidiary of the Company, entered into an interest sale agreement to purchase 100% of the equity or membership interests of OrthoPhoenix, LLC (“OrthoPhoenix”), a Delaware limited liability company, TLIF, LLC (“TLIF”) and MedTech Development Deutschland GmbH (“MedTech GmbH” and along with OrthoPhoenix and TLIF, the “Medtech Entities”) from MedTech Development, LLC (“MedTech Development”). The Medtech Group own patents in the medical technology field. Pursuant to the terms of the Interest Sale Agreement between MedTech Development, Medtech Corp. and the Medtech Entities, the Company (i) paid MedTech Development $1,000,000 cash and (ii) issue a Promissory Note to MedTech Development in the amount of $9,000,000 and (iii) assumed existing debt payable to Medtronics, Inc. The assumed debt payable to Medtronics was renegotiated, as a result of which, the outstanding amount was $6.25 million prior to any repayment by the Company. The debt is due in installments through July 20, 2015; in the event that the Company paid the total amount due by June 30, 2015, the Company would have received a reduction in the remaining principal owed by the Company in the amount of $750,000. Since the Company expected to make the payment by that time when it entered into the agreement, the Company took a discount to the principal amount during the fourth quarter of 2014 when it made the acquisition. However, since the Company did not actually make the payment of the final principal amount by June 30, 2015, the Company reversed the earlier discount as of June 30, 2015. The transaction resulted in a business combination and caused the Medtech Entities to become wholly-owned subsidiaries of the Company. The Company accounted for the acquisition as a business combination in accordance with ASC 805 “Business Combinations”. The Company is the acquirer for accounting purposes and TLIC is the acquired company. The Company engaged a third party valuation firm to determine the fair value of the assets purchases, and the net purchase price paid by the Company was subsequently allocated to assets acquired and liabilities assumed on the records of the Company as follows: Intangible assets $ Goodwill Net purchase price $ Historical financial statements of the Medtech Entities and the pro forma condensed combined consolidated financial statements can be found on the Form 8-K/A filed with the SEC on December 24, 2014. The unaudited pro forma condensed combined consolidated financial statements are not necessarily indicative of the results that actually would have been attained if the merger had been in effect on the dates indicated or which may be attained in the future. Such statements should be read in conjunction with the historical financial statements of the Company. Bridgestone Americas Tire Operations, LLC (“BATO”) On April 23, 2015, IP Liquidity entered into a Patent Purchase Agreement (“BATO PPA”), as amended, whereby IP Liquidity purchased 43 patents from Bridgestone Americas Tire Operations LLC (“BATO”). Pursuant to the terms of the BATO PPA, the Company agreed to pay BATO (i) $3.5 million in two increments shortly after the execution of the document and (ii) an additional $7.5 million in the event that the Company funds the German court bond requirement to put an injunction in place. The Company accounted for the acquisition as an asset acquisition in accordance with ASC 805-50 “Business Combinations”. The Company engaged a third party valuation firm to determine the fair value of the assets purchased, which determined that the fair value of the assets was in excess of the purchase consideration, so the Company booked the assets at the purchase consideration of $11 million. On November 15, 2015, the Company and its wholly-owned subsidiary, IP Liquidity, entered into a Memorandum of Understanding with BATO and IP Nav pursuant to which BATO acknowledged that IP Liquidity was entitled to certain fees under an Advisory Services Agreement (“ASA”) dated December 3, 2012. In addition, (i) the parties further agreed to terminate the Advisory Services Agreement and (ii) rescind the BATO PPA entered into between Bridgestone and the Company on April 23, 2015, as amended. In connection with the termination of the ASA and the rescission of the BATO PPA, as of November 15, 2015, the Company removed notes payable in the amount of $10,000,000, $9,068,504 in patent assets from the Company’s books and records associated with the rescission of the BATO PPA, and in connection with the termination of the ASA, the Company removed $2,451,550 in patents assets from the Company’s books and records. Munitech IP S.a.r.l. (“Munitech”) On June 27, 2016, Munitech S.a.r.l. (“Munitech”), a Luxembourg limited liability company and newly formed wholly-owned subsidiary of the Company, entered into two Patent Purchase Agreements (the “PPA” or together, the “PPAs”) to purchase 221 patents from Siemens Aktiengesellschaft. The patents purchased by Munitech relate to W-CDMA and GSM cellular technology and cover all the major global economies including China, France, Germany, the United Kingdom and the United States. Significantly, many of the patent families have been declared to be Standard Essential Patents (“SEPs”) with the European Telecommunications Standard Institute (“ETSI”) and/or the Association of Radio Industries and Businesses (“ARIB”) related to Long Term Evolution (“LTE”), Universal Mobile Telecommunications System (“UMTS”), and/or General Packet Radio Service (“GPRS”). Pursuant to the terms of the PPAs, Munitech (i) paid Siemens Aktiengesellschaft $1,150,000 in cash upon closing and (ii) agreed to two future payments, one in the amount of $1,000,000 payable on December 31, 2016 and the second in the amount of $750,000 payable on September 30, 2017. After evaluating the facts and circumstances of the purchase, the Company determined that this was an asset purchase. In coming to its conclusion, the Company reviewed the status of the assets, the historical activity and the absence of any employees, licensing activity, vendors associated with the patents, any royalties, and any other assets other than the patents. Magnus IP GmbH (“Magnus”) On July 5, 2016, Marathon IP GmbH (“Marathon IP”), a German corporate entity and newly formed wholly-owned subsidiary of the Company, entered into a Patent Purchase Agreements (the “PPA”) to purchase 86 patents from Siemens Switzerland Ltd and Siemens Industry Inc., (together, “Siemens”). On September 15, 2016, the patents were assigned by Marathon IP to Magnus, both of which are wholly-owned subsidiaries of the Company. The patents purchased by Marathon IP relate to Internet-of-Things (IOT) technology. Generally, the portfolio’s subject matter is directed toward self-healing control networks for automation systems. The patents are relevant to wireless mesh or home area networks for use in IOT, or connected home devices and enable simple commissioning, application level security, simplified bridging, and end-to-end IP security. The technology can support a wide variety of IOT enabled devices including lighting, sensors, appliances, security, and more. Pursuant to the terms of the PPA, Marathon IP paid Siemens $250,000 in cash upon closing. Pursuant to the terms of the PPAs, Munitech (i) paid Siemens $250,000 in cash upon closing and (ii) will pay a percentage of gross proceeds in excess of a reserve threshold on behalf of Marathon IP. After evaluating the facts and circumstances of the purchase, the Company determined that this was an asset purchase. In coming to its conclusion, the Company reviewed the status of the assets, the historical activity and the absence of any employees, licensing activity, vendors associated with the patents, any royalties, and any other assets other than the patents. Traverse Technologies Corp. (“Traverse”) On August 3, 2016, Traverse Technologies Corp. (“Traverse”), a United States corporation and newly formed wholly-owned subsidiary of the Company, entered into a Patent Purchase Agreement (the “PPA”) to purchase 12 patents from CPT IP Holdings (“CPT”). The patents purchased by Traverse relate to batteries and principally cover various Asian and the United States markets. Pursuant to the terms of the PPAs, Traverse (i) paid CPT $1,300,000 in cash upon closing and (ii) will pay a percentage of net recoveries in excess of a reserve threshold on behalf of Traverse. After evaluating the facts and circumstances of the purchase, the Company determined that this was an asset purchase. In coming to its conclusion, the Company reviewed the status of the assets, the historical activity and the absence of any employees, licensing activity, vendors associated with the patents, any royalties, and any other assets other than the patents. PG Technologies S.a.r.l. (“PG Tech”) On August 11, 2016, PG Technologies S.a.r.l. (“PG Tech”), a Luxembourg limited liability company jointly owned with a large litigation financing fund, entered into a Patent Funding and Exclusive License Agreement (the “ELA”) to manage the monetization of greater than 10,000 patents in a single industry vertical with a Fortune 50 company. The patents cover all the major global economies including China, France, Germany, the United Kingdom and the United States. The Company determined that its ownership in PG Tech constitutes a VIE and that the Company is the primary beneficiary, as a result of which, the Company consolidated PG Tech in its financial statements. Pursuant to the terms of the ELA, PG Tech agreed with the Fortune 50 company to pay (i) $1,000,000 in cash upon closing, (ii) a future payment in the amount of $1,000,000 payable on or before December 31, 2016, (iii) minimum quarterly payments of $250,000 starting on April 1, 2017 and (iv) split 50% of the net licensing revenues. After evaluating the facts and circumstances of the purchase, the Company determined that this was an asset purchase. In coming to its conclusion, the Company reviewed the status of the assets, the historical activity and the absence of any employees, licensing activity, vendors associated with the patents, any royalties, and any other assets other than the patents. Motheye Technologies LLC (“Motheye”) On September 13, 2016, Motheye Technologies, LLC (“Motheye”), a United States corporation and newly formed wholly-owned subsidiary of the Company, entered into a Patent Purchase Agreements (the “PPA”) to purchase 1 patent from Cirrex Systems, LLC (“Cirrex”). The patent purchased by Motheye relates to LED lighting and is issued in the United States. Pursuant to the terms of the PPA, Motheye pays no determined cash consideration, but is required to pay a percentage of net recoveries in excess of a reserve threshold on behalf of Motheye. After evaluating the facts and circumstances of the purchase, the Company determined that this was an asset purchase. In coming to its conclusion, the Company reviewed the status of the assets, the historical activity and the absence of any employees, licensing activity, vendors associated with the patents, any royalties, and any other assets other than the patents.

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	12 Months Ended
	Dec. 31, 2016
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET	NOTE 4 — INTANGIBLE ASSETS, NET Intangible assets include patents purchased and patents acquired in lieu of cash in licensing transactions. Patents purchased are recorded based at their acquisition cost and patents acquired in lieu of cash are recorded at their fair market value. Intangible assets consisted of the following: December 31, 2016 December 31, 2015 Intangible Assets $ $ Accumulated Amortization & Impairment ) ) Intangible assets, net $ $ Intangible assets are comprised of patents with estimated useful lives between approximately 1 to 13 years. Once placed in service, the Company amortizes the costs of intangible assets over their estimated useful lives on a straight-line basis. During the years ended December 31, 2016 and 2015, respectively, the Company capitalized a total of $6,450,000 and $252,946 in patent acquisition costs. Costs incurred to acquire patents, including legal costs, are also capitalized as long-lived assets and amortized on a straight-line basis with the associated patent. Amortization of patents is included as an operating expense as reflected in the accompanying consolidated statements of operations. The Company assesses fair market value for any impairment to the carrying values. Management concluded that there was an impairment to the carrying value in the amount of $11,958,882 for the year ended December 31, 2016 compared to an impairment to the carrying value in the amount of $5,793,409 for the year ended December 31, 2015. The Company determined the fair value using a Level 3 fair value category of unobservable inputs and concluded that the fair value on these intangibles was zero. Amortization expense for the years ended December 31, 2016 and 2015 was $7,453,004 and $10,825,164, respectively. Future amortization of current intangible assets, net is as follows: 2017 $ 2018 2019 2020 2021 2022 and thereafter Total $ Since November 2012, the Company has continued to add to its intangible assets, through either the purchase of intangible asset directly or purchasing entities holding intangible assets. During the years ended December 31, 2016 and December 31, 2015, the Company made the following intangible asset acquisitions: · In April 2015, we purchased 43 patents from Bridgestone Americas Tire Operations LLC (“BATO”), with such patents related to automobile tire pressure monitoring systems, with such purchase terminated and reversed on November 15, 2015. · In June 2016, we acquired two patent portfolios from Siemens covering W-CDMA and GSM cellular technology; · In July 2016, we acquired a patent portfolio from Siemens covering internet-of-things technology; · In August 2016, we acquired a patent portfolio from CPT IP Holdings, LLC covering battery technology; · In August 2016, we entered into a Patent Funding and Exclusive License Agreement with a Fortune 50 company to monetize more than 10,000 patents in a single industry vertical; and · In September 2016, we acquired a patent from Cirrex Systems, LLC covering LED technology.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2016
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	NOTE 5 - STOCKHOLDERS’ EQUITY The Company has authorized capital to 200,000,000 shares of Common Stock with par value to $0.0001 per share, and has authorized capital of 100,000,000 shares of preferred stock, par value $0.0001 per share. Preferred Stock The terms of the Series B Convertible Preferred Stock are summarized below: Dividend . The holders of Series B Convertible Preferred Stock will be entitled to receive such dividends paid and distributions made to the holders of Common Stock, pro rata to the same extent as if such holders had converted the Series B Convertible Preferred Stock into Common Stock (without regard to any limitations on conversion herein or elsewhere) and had held such shares of Common Stock on the record date for such dividends and distributions. Liquidation Preference . In the event of a liquidation, dissolution or winding up of the Company, after provision for payment of all debts and liabilities of the Company, any remaining assets of the Company shall be distributed pro rata to the holders of Common Stock and the holders of Series B Convertible Preferred Stock as if the Series B Convertible Preferred Stock had been converted into shares of Common Stock on the date of such liquidation, dissolution or winding up of the Company. Voting Rights . The Series B Convertible Preferred Stock have no voting rights except with regard to certain customary protective provisions set forth in the Series B Convertible Preferred Stock Certificate of Designations and as otherwise provided by applicable law. Conversion . Each share of Series B Convertible Preferred Stock may be converted at the holder’s option at any time after issuance into one share of Common Stock, provided that the number of shares of Common Stock to be issued pursuant to such conversion does not exceed, when aggregated with all other shares of Common Stock owned by such holder at such time, result in such holder beneficially owning (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and the rules thereunder) in excess of 9.99% of all of the Common Stock outstanding at such time, unless otherwise waived in writing by the Company with sixty-one (61) days’notice. On May 2, 2014, the Company issued an aggregate of 782,000 shares of Series B Convertible Preferred Stock valued at $2,807,380 to acquire IP Liquidity Ventures, LLC, Dynamic Advances, LLC and Sarif Biomedical, LLC. The transaction did not involve any underwriters, underwriting discounts or commissions, or any public offering. The issuance of these securities was deemed to be exempt from the registration requirements of the Securities Act by virtue of Section 4(a)(2) thereof, as a transaction by an issuer not involving a public offering. On September 17, 2014, the Company entered into a consulting agreement (the “Consulting Agreement”) with GRQ Consultants, Inc. (“GRQ”), pursuant to which GRQ shall provide certain consulting services including, but not limited to, advertising, marketing, business development, strategic and business planning, channel partner development and other functions intended to advance the business of the Company. As consideration, GRQ shall be entitled to 200,000 shares of the Company’s Series B Convertible Preferred Stock, 50% of which vested upon execution of the Consulting Agreement, and 50% of which shall vest in six (6) equal monthly installments of commencing on October 17, 2014. The first tranche of 100,000 shares of Series B Convertible Preferred Stock was issued to GRQ on October 6, 2014. An aggregate of 150,000 shares of Series B Convertible Preferred Stock for a value of $1,103,581 was issued in 2014 and 50,000 shares of Series B Convertible Preferred Stock for a value of $345,334 was issued in 2015. In addition, the Consulting Agreement allows for GRQ to receive additional shares of Series B Convertible Preferred Stock upon the achievement of certain performance benchmarks. No milestones were met and no additional shares were issued in 2015 prior to the termination of the Consulting Agreement. All shares of Series B Convertible Preferred Stock issuable to GRQ shall be pursuant to the 2014 Plan (as defined below) . The Consulting Agreement contains an acknowledgement that the conversion of the preferred stock into shares of the Company’s Common Stock is precluded by the beneficial ownership blockers set forth in the Series B Convertible Preferred Stock Certificate of Designation and in Section 17 of the 2014 Plan to ensure compliance with NASDAQ Listing Rule 5635(d). Common Stock On January 29, 2015, the Company issued 134,409 shares of the Company’s Common Stock to DBD Credit Funding, LLC (“DBD”), an affiliate of Fortress Credit Corp., pursuant to the Fortress transaction. On March 13, 2015, the Company settled a dispute with a former consultant whereby the Company issued the consultant 60,000 shares of Common Stock for a full release of all claims. For the three months ended March 31, 2015, certain holders of warrants exercised their warrants to purchase, in cash, 5,000 shares of the Company’s Common Stock. For the three months ended June 30, 2015, certain holders of options exercised their options to purchase, on a net exercise basis, 33,968 (net) shares of the Company’s Common Stock. In a series of transactions, the Series B Convertible Preferred Stock associated with the GRQ Consulting Agreement was converted into shares of the Company’s Common Stock, with 183,330 shares of Series B Convertible Preferred Stock converted into Common Stock prior to September 30, 2015. On September 21, 2015, the Company issued 150,000 shares of the Company’s Common Stock to Alex Partners, LLC and Del Mar Consulting Group, Inc., pursuant to a services agreement entered into on September 21, 2015. In connection with this transaction, the Company valued the shares at the quoted market price on the date of grant at $2.23 per share or $334,500. The transaction did not involve any underwriters, underwriting discounts or commissions, or any public offering. The issuance of these securities was deemed to be exempt from the registration requirements of the Securities Act by virtue of Section 4(a)(2) thereof, as a transaction by an issuer not involving a public offering. On October 20, 2015, 16,666 shares of Series B Convertible Preferred Stock associated with the GRQ Consulting Agreement was converted into 16,666 shares of the Company’s Common Stock. On November 4, 2015, the Company issued 300,000 shares of the Company’s Common Stock to Dominion Harbor Group LLC (“Dominion”), pursuant to a settlement agreement entered into with Dominion on October 30, 2015. In connection with this transaction, the Company valued the shares at the quoted market price on the date of grant at $1.71 per share or $513,000. The transaction did not involve any underwriters, underwriting discounts or commissions, or any public offering. The issuance of these securities was deemed to be exempt from the registration requirements of the Securities Act by virtue of Section 4(a)(2) thereof, as a transaction by an issuer not involving a public offering. On December 9, 2015, the Company entered into an agreement with Melechdavid, Inc. (“Melechdavid”), pursuant to which the Company agreed to issue 100,000 shares of the Company’s Common Stock. In connection with this transaction, the Company valued the shares at the quoted market price on the date of grant at $1.61 per share or $161,000. The transaction did not involve any underwriters, underwriting discounts or commissions, or any public offering. The issuance of these securities was deemed to be exempt from the registration requirements of the Securities Act by virtue of Section 4(a)(2) thereof, as a transaction by an issuer not involving a public offering. The shares were issued pursuant to this transaction on January 25, 2016. On May 11, 2016, the Company entered into a consulting agreement with the Cooper Law Firm, LLC (“Cooper”), pursuant to which the Company agreed to issue 80,000 shares of the Company’s Common Stock. In connection with this transaction, the Company valued the shares at the quoted market price on the date of grant at $1.70 per share or $136,000. On December 9, 2016, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain institutional investors for the sale of an aggregate of 3,481,997 shares of the Company’s common stock, at a purchase price of $1.50 per share, and warrants to purchase 1,740,995 shares of common stock for a purchase price of $0.01 per warrant, or $17,019.95 in total. None of the warrants were purchased prior to December 31, 2016, and all were subsequently purchased prior to the date of this report. Common Stock Warrants During the year ended December 31, 2016, the Company issued a warrant to purchase 174,100 shares of Common Stock in connection with financings and warrants for 23,334 shares of Common Stock were exercised. Warrants to purchase 1,705,996 shares of Common Stock were cancelled as they reached the end of their lives without being exercised in accordance with the terms of the underlying agreements. During the years ended December 31, 2016 and December 31, 2015, the Company recorded stock based compensation expense of $0 and $3,465,respectively, in connection with the vested warrants associated with one warrant-based compensatory grant. At December 31, 2016, there was a total of $0 of unrecognized compensation expense related to future recognition of warrant-based compensation arrangements. As of December 31, 2016, the Company had warrants outstanding to purchase 466,078 shares of Common Stock with a weighted average remaining life of 3.25 years. A summary of the status of the Company’s outstanding stock warrants and changes during the period then ended is as follows: Number of Warrants Weighted Average Weighted Average Balance at December 31, 2015 $ Granted $ Cancelled — Forfeited — — — Exercised $ — Balance at December 31, 2016 Warrants exercisable at December 31, 2016 Weighted average fair value of warrants granted during the period $ The warrants pursuant to the Purchase Agreement entered into on December 9, 2016, as described above, were purchased and issued in January and February 2017 and are not included in the table set forth above. Common Stock Options On November 14, 2012, the Company entered into an employment agreement with Doug Croxall (the “Croxall Employment Agreement”), whereby Mr. Croxall agreed to serve as Company’s Chief Executive Officer for a period of two years. Mr. Croxall received a ten-year option award to purchase an aggregate of 307,692 shares of the Company’s Common Stock with an exercise price of $3.25 per share, subject to adjustment, which shall vest in 24 equal monthly installments on each monthly anniversary of the date of the Croxall Employment Agreement. The options were valued on the grant date at approximately $3.12 per option or a total of $968,600 using a Black-Scholes option pricing model with the following assumptions: stock price of $3.25 per share (based on the recent selling price of the Company’s Common Stock at private placements), volatility of 192%, expected term of 5 years, and a risk free interest rate of 0.61%. On March 1, 2013, Mr. James Crawford was appointed as the Company’s Chief Operating Officer. Pursuant to the employment agreement between the Company and Mr. Crawford dated March 1, 2013 (“Crawford Employment Agreement”), Mr. Crawford shall serve as the Company’s Chief Operating Officer for two (2) years. Mr. Crawford was awarded a five-year stock option to purchase an aggregate of 76,924 shares of the Company’s Common Stock, with a strike price based on the closing price of the Company’s Common Stock on March 1, 2013 as reported by the OTC Bulletin Board or an exercise price of $5.525 per share, vesting in twenty-four (24) equal installments on each monthly anniversary of March 1, 2013, provided Mr. Crawford is still employed by the Company on each such date. On June 19, 2013, the Company granted Mr. Crawford an option to purchase 76,924 shares of Common Stock. The stock options granted have an exercise price equal to the fair market value per share on the option grant date, which was $2.47 per share. The options issued to Mr. Crawford are conditioned upon the cancellation of the stock options granted to him on March 1, 2013 under his employment agreement with the Company and will vest in twenty-four (24) equal installments on each monthly anniversary of the date of grant. On June 11, 2013, the Company granted five-year options to purchase an aggregate of 353,846 shares of Common Stock exercisable at $2.625 per share to the Chief Executive Officer and two directors of the Company. The stock options shall vest pro rata monthly over the following 24-month period. On November 18, 2013, we entered into Amendment No. 1 to the Croxall Employment Agreement with our Chief Executive Officer and Chairman, Doug Croxall. As part of Amendment No. 1, we granted Mr. Croxall a ten-year stock options to purchase an aggregate of 200,000 shares of our Common Stock, with an exercise price of $2.965 per share, reflecting the closing price of our Common Stock on the date of grant, and vesting in twenty-four (24) equal installments on each monthly anniversary date of the grant. The Company has valued the option grant at $442,692 using the Black-Scholes option pricing model with the following assumptions: an expected life of five years; volatility of 100%; and a risk-free rate of 1.33%. On April 15, 2014, the Company issued a new board member, Edward Kovalik, a five (5) year option to purchase an aggregate of 20,000 shares of the Company’s Common Stock with an exercise price of $3.295 per share, subject to adjustment, which shall vest in twelve (12) monthly installments commencing on the date of grant. The option was valued based on the Black-Scholes model, using the strike and market prices of $3.295 per share, life of three years, volatility of 51% based on the closing price of the 50 trading sessions immediately preceding the grant and a discount rate as published by the Federal Reserve of 0.84%. On May 15, 2014, the Company entered into an executive employment agreement with Francis Knuettel II (“Knuettel Agreement”) pursuant to which Mr. Knuettel would serve as the Company’s Chief Financial Officer. As part of the consideration, the Company agreed to grant Mr. Knuettel a ten-year stock option to purchase an aggregate of 290,000 shares of Common Stock, with a strike price of $4.165 per share, vesting in thirty-six (36) equal installments on each monthly anniversary of the date of the Knuettel Agreement. The option was valued based on the Black-Scholes model, using the strike and market prices of $4.165 per share, life of 6.5 years, volatility of 63% based on the closing price of the 50 trading sessions immediately preceding the grant and a discount rate as published by the Federal Reserve of 1.97%. On February 5, 2015 the Company issued to a consultant, a five-year option to purchase an aggregate of 25,000 shares of the Company’s Common Stock with an exercise price of $6.80 per share, subject to adjustment, which shall vest in twenty-four (24) equal installments on each monthly anniversary of the grant. On March 6, 2015 the Company issued to a new board member a five-year option to purchase an aggregate of 20,000 shares of the Company’s Common Stock with an exercise price of $7.37 per share, subject to adjustment, which shall vest in twelve (12) equal installments on each monthly anniversary of the grant. The options were valued based on the Black-Scholes model, using the strike and market prices of $7.37 per share, an expected term of 3.0 years, volatility of 41% based on the average volatility of comparable companies over the comparable prior period and a discount rate as published by the Federal Reserve of 1.16%. On March 18, 2015 the Company issued to a new board member a five-year option to purchase an aggregate of 20,000 shares of the Company’s Common Stock with an exercise price of $6.61 per share, subject to adjustment, which shall vest in twelve (12) equal installments on each monthly anniversary of the grant. The options were valued based on the Black-Scholes model, using the strike and market prices of $6.61 per share, an expected term of 3.0 years, volatility of 41% based on the average volatility of comparable companies over the comparable prior period and a discount rate as published by the Federal Reserve of 0.92%. On April 7, 2015 (the “Effective Date”), the Company entered into a consulting agreement (the “Consulting Agreement”) with Richard Chernicoff, a member of the Company’s Board of Directors, pursuant to which Mr. Chernicoff shall provide certain services to the Company, including serving as the interim General Counsel and interim General Manager of commercial product commercialization development. Pursuant to the terms of the Consulting Agreement, Mr. Chernicoff shall receive a monthly retainer of $27,000 and a ten-year stock option to purchase 280,000 shares of the Company’s Common Stock pursuant to the Company’s 2014 Equity Incentive Plan (the “2014 Plan). The stock options shall have an exercise price of $6.76 per share, the closing price of the Company’s common stock on the date immediately prior to the Board of Directors approval of such stock options and the options shall vest as follows: 25% of the option shall vest on the 12 month anniversary of the Effective Date and thereafter 2.083% on the 21st day of each succeeding calendar month for the following twelve months, provided Mr. Chernicoff continues to provide services (in addition to as a member of the Company’s Board of Directors) at the time of vesting. The option shall be subject in all respects to the terms of the 2014 Plan. Notwithstanding anything herein to the contrary, the remainder of the option shall be subject to the following as an additional condition of vesting: (A) options to purchase 70,000 shares of the Company’s common stock under the option shall not vest at all unless the price of the Company’s common stock while Mr. Chernicoff continues as an officer and/or director reaches $8.99 and (B) options to purchase 70,000 shares of the Company’s common stock under the option shall not vest at all unless the price of the Company’s common stock while Mr. Chernicoff continues as an officer and/or director reaches $10.14. On September 16, 2015, the Company issued its independent board members ten-year options to purchase an aggregate of 80,000 shares of the Company’s Common Stock with an exercise price of $2.03 per share, subject to adjustment, which shall vest monthly over twelve (12) months commencing on the date of grant. The options were valued based on the Black-Scholes model, using the strike and market prices of $2.03 per share, an expected term of 5.5 years, volatility of 47% based on the average volatility of comparable companies over the comparable prior period and a discount rate as published by the Federal Reserve of 1.72%. On October 14, 2015, the Company issued certain of its employees ten-year options to purchase an aggregate of 385,000 shares of the Company’s Common Stock with an exercise price of $1.86 per share, subject to adjustment, which shall vest monthly over twenty-four (24) months commencing on the date of grant. The options were valued based on the Black-Scholes model, using the strike and market prices of $1.86 per share, an expected term of 6.5 years, volatility of 49% based on the average volatility of comparable companies over the comparable prior period and a discount rate as published by the Federal Reserve of 1.57%. On October 14, 2015, the Company issued certain of its consultants ten (10) year options to purchase an aggregate of 70,000 shares of the Company’s Common Stock with an exercise price of $1.86 per share, subject to adjustment, which shall vest monthly over twenty-four (24) months commencing on the date of grant. On May 10, 2016, the Company entered into an executive employment agreement with Erich Spangenberg (“Spangenberg Agreement”) pursuant to which Mr. Spangenberg would serve as the Company’s Director of Acquisitions, Licensing and Strategy. As part of the consideration, the Company agreed to grant Mr. Spangenberg a ten-year stock option to purchase an aggregate of 500,000 shares of Common Stock, with a strike price of $1.87 per share, vesting in twenty-four (24) equal installments on each monthly anniversary of the date of the Spangenberg Agreement. The options were valued based on the Black-Scholes model, using the strike and market prices of $1.87 per share, an expected term of 5.75 years, volatility of 47% based on the average volatility of comparable companies over the comparable prior period and a discount rate as published by the Federal Reserve of 1.32%. On May 20, 2016, the Company entered into an employment agreement with Kathy Grubbs (“Grubbs Agreement”) pursuant to which Ms. Grubbs would serve as an analyst. As part of the consideration, the Company agreed to grant Ms. Grubbs a ten-year stock option to purchase an aggregate of 50,000 shares of Common Stock, with a strike price of $2.25 per share, vesting in thirty-six (36) equal installments on each monthly anniversary of the date of the Grubbs Agreement. The options were valued based on the Black-Scholes model, using the strike and market prices of $2.25 per share, an expected term of 6.50 years, volatility of 47% based on the average volatility of comparable companies over the comparable prior period and a discount rate as published by the Federal Reserve of 1.88%. On July 1, 2016, in conjunction with an executive employment agreement with David Liu (“Liu Agreement”) pursuant to which Mr. Liu would serve as the Company’s CTO, entered into on June 29, 2016, the Company granted Mr. Liu a ten-year stock option to purchase an aggregate of 150,000 shares of Common Stock, with a strike price of $2.79 per share, vesting in thirty-six (36) equal installments on each monthly anniversary of the date of the Liu Agreement. The options were valued based on the Black-Scholes model, using the strike and market prices of $2.79 per share, an expected term of 6.50 years, volatility of 47% based on the average volatility of comparable companies over the comparable prior period and a discount rate as published by the Federal Reserve of 1.20%. On October 13, 2016, the Company issued its independent board members ten-year options to purchase an aggregate of 80,000 shares of the Company’s Common Stock with an exercise price of $2.41 per share, subject to adjustment, which shall vest monthly over twelve (12) months commencing on the date of grant. The options were valued based on the Black-Scholes model, using the strike and market prices of $2.41 per share, an expected term of 5.5 years, volatility of 46% based on the average volatility of comparable companies over the comparable prior period and a discount rate as published by the Federal Reserve of 1.21%. As there were not sufficient shares in the Company’s equity incentive plans to accommodate these grants, Mr. Croxall forfeited a portion of one of his options to purchase 80,000 shares. At December 31, 2016, there was a total of $1,371,382 of unrecognized compensation expense related to non-vested option-based compensation arrangements entered into during the year. A summary of the stock options as of December 31, 2016 and changes during the period are presented below: Number of Options Weighted Average Weighted Average Balance at December 31, 2015 $ Granted $ Cancelled $ — Forfeited $ — Exercised — $ — — Balance at December 31, 2016 $ Options Exercisable at December 31, 2016 $ Options expected to vest $ Weighted average fair value of options granted during the period $ Stock options outstanding at December 31, 2016 as disclosed in the above table have $0 in intrinsic value at the end of the period.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 6 — COMMITMENTS AND CONTINGENCIES Debt consists of the following: Maturity Interest December 31, Date Rate 2016 2015 Senior secured term notes 29-Jul-18 LIBOR + 9.75% $ $ Less: debt discount ) ) Total senior-term notes, net of discount $ $ Maturity Interest December 31, Date Rate 2016 2015 Convertible Note 10-Oct-18 % $ $ Less: debt discount — ) Total convertible note $ $ Maturity Late December 31, Date Fee 2016 2015 iRunway trade payable On Demand 1.5% per month $ $ Maturity Interest December 31, Date Rate 2016 2015 Note payable 31-Jan-17 NA $ $ — Maturity Interest December 31, Date Rate 2016 2015 Sichenzia trade payable On Demand NA $ — $ Maturity Interest December 31, Date Rate 2016 2015 Medtech LLC note payable On Demand % $ — $ Maturity Interest December 31, Date Rate 2016 2015 Afco financing On Demand % $ — $ Maturity Interest December 31, Date Rate 2016 2015 Siemens 30-Sep-17 NA $ $ — Maturity Interest December 31, Date Rate 2016 2015 Dominion Harbor 15-Oct-17 NA $ $ Maturity Interest December 31, Date Rate 2016 2015 Oil & Gas On Demand NA $ $ — Maturity Interest December 31, Date Rate 2016 2015 3dnano Liscense Fee 31-Jan-17 NA $ $ — 2016 2015 Total $ $ Less: current portion ) ) Total, net of current portion $ $ Senior Secured Term Notes: On January 29, 2015, the Company and certain of its subsidiaries entered into a series of Agreements including a Securities Purchase Agreement with DBD Credit Funding LLC, (“DBD”) an affiliate of Fortress Credit Corp., under which the terms of the notes were: (i) $15,000,000 original principal amount of Fortress Notes (the “Initial Note”); (ii) a right to receive a portion of certain proceeds from monetization net revenues received by the Company (the “Revenue Stream”, after receipt by the Company of $15,000,000 of monetization net revenues and repayment of the Fortress Notes); (iii) a five-year Fortress Warrant to purchase 100,000 shares of the Company’s Common Stock exercisable at $7.44 per share, subject to adjustment; and (iv) 134,409 shares of the Issuer’s Common Stock (the “Fortress Shares”). On February 12, 2015, the Company issued an additional $5,000,000 of Notes (which increase proportionately the Revenue Stream). The Initial Note matures on July 29, 2018. Additional Notes issued pursuant to the Fortress Purchase Agreement mature 42 months after issuance. The unpaid principal amount of the Initial Note plus the additional $5,000,000 note (including any PIK Interest, as defined below) bear cash interest at a rate equal to LIBOR plus 9.75% per annum payable on the last business day of each month. Interest is paid in cash except that 2.75% per annum of the interest due on each Interest Payment Date shall be paid-in-kind, by increasing the principal amount of the Notes by the amount of such interest. Monthly principal payments are due commencing one year after the anniversary dates of the loans. The terms of the Fortress Warrant provide that until January 29, 2020, the Warrant may be exercised for cash or on a cashless basis. Exercisability of the Fortress Warrant is limited if, upon exercise, the holder would beneficially own more than 4.99% of the Company’s Common Stock. The exercise price of the warrant is $7.44 and the warrant fair value was determined to be $318,679 utilizing the Black-Scholes model, with the fair value of the warrants recorded as additional paid-in capital and reducing the carrying value of the Notes. As of December 31, 2016, and 2015 the unamortized discount on the Notes was $1,425,167 and $2,150,263; respectively. Senior Secured Term Note Amendment On January 10, 2017 the Company and certain of its subsidiaries entered into the Amended and Restated Revenue Sharing and Securities Purchase Agreement (“ARRSSPA”) with DBD Credit Funding LLC, under which the Company and DBD amended and restated the Revenue Sharing and Securities Purchase Agreement dated January 29, 2015 (the “Original Agreement”) pursuant to which (i) Fortress purchased $20,000,000 in promissory notes, of which $15,620,759 is currently outstanding (less $4,500,000 that is currently held in a cash collateral account), (ii) an interest in the Company’s revenues from certain activities and warrants to purchase 100,000 shares of the Company’s common stock. The ARRSSPA amends and restates the Original Agreement to provide for (i) the sale by the Company of a $4,500,000 promissory note (the “New Note”) and (ii) the insurance of additional warrants to purchase 187,500 shares of common stock (the “New Warrant”). Pursuant to the ARRSSPA, Fortress acquired an increased revenue stream right to certain revenues generated by the Company through monetization of our patent portfolio (“Monetization Revenues”). The ARRSSPA increases the revenue stream basis to $1,225,000. The ARRSSPA provides for the potential issuance of up to $7,500,000 of additional notes (the “Additional Notes”), of which not more than $3,750,000 shall be made prior to June 30, 2017 and of which not more than $3,750,000 shall be made available during the period following June 30, 2017 and on or prior to December 31, 2017 and not more than two such issuances shall occur under the ARRSSPA. The unpaid principal amount of the New Note (including any PIK Interest, as defined below) shall bear cash interest at a rate equal to LIBOR plus 9.75% per annum; provided that upon and during the continuance of an Event of Default (as defined in the Initial Note), the interest rate shall increase by an additional 2% per annum. Interest on the Initial Note shall be paid on the last business day of each calendar month (the “Interest Payment Date”), commencing January 31, 2017. Interest shall be paid in cash except that 2.75% per annum of the interest due on each Interest Payment Date shall be paid-in-kind, by increasing the principal amount of the Notes by the amount of such interest, effective as of the applicable Interest Payment Date (“PIK Interest”). PIK Interest shall be treated as added principal of the New Note for all purposes, including interest accrual and the calculation of any prepayment premium. The Company paid a structuring fee of 2.0% of the New Note and would pay a 2.0% fee upon the issuance of any Additional Notes. The proceeds of the New Note and any Additional Notes may be used for working capital purposes, portfolio acquisitions, growth capital and other general corporate purposes. The ARRSSPA contains certain customary events of default, and also contains certain covenants including a requirement that the Company maintain minimum liquidity of $1,250,000 in unrestricted cash and cash equivalents. The terms of the New Warrants provide that from July 10, 2017 until January 10, 2022, the Warrant may be exercised for cash or on a cashless basis. Exercisability of the Warrant is limited if, upon exercise, the holder would beneficially own more than 4.99% of the Issuer’s Common Stock. Pursuant to the ARSSPA, as security for the payment and performance in full of the Secured Obligations (as defined in the Security Agreement entered in favor of the Note purchasers (the “Security Agreement”) the Company and certain subsidiaries executed and delivered in favor of the purchasers a Security Agreement and a Patent Security Agreement, including a pledge of the Company’s interests in certain of its subsidiaries. As further set forth in the Security Agreement, repayment of the Note Obligations (as defined in the Notes) is secured by a first priority lien and security interest in all the assets of the Company, subject to certain permitted liens. Certain subsidiaries of the Company also executed guarantees in favor of the purchasers (each, a “Guaranty”), guaranteeing the Note Obligations. Convertible Note In two transactions, on October 9, 2014 and October 16, 2014, the Company sold an aggregate $5,550,000 of principal amount of convertible notes (“Convertible Notes”) along with two-year warrants to purchase 129,499 shares of the Company’s Common Stock. The Convertible Notes are convertible into shares of the Company’s Common Stock at $7.50 per share and the Warrants have an exercise price of $8.25 per share. The Notes mature on October 10, 2018 and bear interest at the rate of 11% per annum, payable quarterly in cash on each of the three, six, nine and twelve month anniversaries of the issuance date and on each conversion date. The Notes may become secured by a security interest granted to the holder in certain future assets under certain circumstances. In the event the Company’s Common Stock trades at a price of at least $27.00 per share for four out of eight trading days, the Notes will be mandatorily converted into Common Stock of the Company at the then applicable conversion price per share. The Company repaid the Convertible Notes for all but one holder in early 2015. iRunway The Company converted a set of outstanding invoices related to work performed by one of the Company’s vendors to a short-term payable whereby the Company agreed to pay iRunway over time for the open invoices, subject to a payment schedule as defined. To the extent that the Company does not make payments according to that schedule, the remaining balance accrues interest at 1.5% per month. As of December 31, 2016 and 2015, principal in the amount of $191,697 and $494,244 remained outstanding and the Company expects to repay the open balance during the year ended December 31, 2017. Note Payable The Company entered into a short term advance with an officer related to funds the Company was transferring from its European subsidiaries. The advance carried no interest and as of December 31, 2016, principal in the amount of $103,000 was outstanding, which was subsequently repaid by the Company in January 2017. Sichenzia Trade Payable The Company converted a set of outstanding invoices related to work performed by Company’s primary outside law firms to a trade payable whereby the Company agreed to pay Sichenzia over time for the open invoices, subject to a payment schedule as defined. There was no interest payable associated with the Sichenzia Trade Payable, and as of the December 31, 2016, all balances had been repaid. Medtech Note Payable The Company entered into a purchase agreement to acquire ownership of or monetization rights to certain patents. As part of the purchase agreement, the Company agreed to certain future payments of cash consideration. The Medtech Note Payable carried an interest rate of up to 28%, and as of December 31, 2016, the Company had repaid all amounts outstanding relative to this purchase obligation. AFCO Financing The Company financed its Directors and Officers (“D&O”) insurance through AFCO, whereby the Company agreed to make nine (9) monthly payments commencing one month after binding of the insurance. The AFCO Financings carried an interest rate of 4.82% per annum and as of December 31, 2016, the Company had repaid all amounts outstanding relative to the D&O financing. Siemens Purchase Payment The Company entered into a purchase agreement to acquire ownership of certain patents. As part of the purchase agreement, the Company agreed to certain future payments of cash consideration. The payment obligation bears no interest and as of December 31, 2016, the Company had an outstanding obligation for purchase of certain Siemens patents in the net amount of $1,672,924, with such payments expected to be made by the September 30, 2017. Dominion Harbor Settlement Note The Company entered into a settlement agreement with Dominion Harbor, a former licensing agent for some of the Company’s subsidiaries, on October 29, 2015 whereby the Company agreed to issue 300,000 shares of the Company’s Common Stock to Dominion Harbor and make eight (8) payments of $25,000 each ending on October 15, 2017. The shares issued to Dominion Harbor were valued at the quoted market price on the date of the grant of $1.71 per share or $513,000. As of December 31, 2016, $125,000 remained outstanding and the Company and Dominion Harbor subsequently agreed to make one payment of $25,000 and issue 125,000 shares of the Company’s Common Stock, which has not yet occurred as of the date of this report. Oil & Gas Purchase Payment The Company entered into a purchase agreement to acquire monetization rights to certain patents. As part of the purchase agreement, the Company agreed to certain future payments of cash consideration. The payment obligation bears no interest and as of December 31, 2016, the Company had an outstanding obligation for purchase of certain Siemens patents in the net amount of $944,296, with such payments expected to be made by December 31, 2017. 3D Nano Purchase Payment 3D Nano entered into a license and purchase agreement with HP Inc. to acquire the rights to use if 3D Nano chooses, the right to exercise an option to acquire, ownership of certain patents, trade secrets and other intellectual property (the “Technology”). As part of the purchase agreement, the Company agreed to license the Technology for two payments of $100,000 each, with the first payment made in April 2016 and the second payment due by January 31, 2017. The payment obligation bears no interest and as of December 31, 2016, the Company had an outstanding obligation in the amount of $100,000, which was subsequently paid to HP in January 2017. Future minimum principal payments are as follows: 2017 $ 2018 Total $ Office Lease In October 2013, the Company entered into a net-lease for its current office space in Los Angeles, California. The lease commenced on May 1, 2014 and has a term of seven years, which term expires on April 30, 2021, with monthly lease payments escalating each year of the lease. In addition, to paying a deposit of $7,564 and the monthly base lease cost, the Company is required to pay its pro rata share of operating expenses and real estate taxes. Under the terms of the lease, the Company will not be required to pay rent for the first five months but must remain in compliance with the terms of the lease to continue to maintain that benefit. In addition, the Company has a one-time option to terminate the lease in the 42nd month of the lease. Minimum future lease payments under this lease at December 31, 2016, net of the rent abatement, for the next five years are as follows: 2017 $ 2018 2019 2020 2021 Total $ The lease for the property maintained in Longview, Texas is month-to-month and can be cancelled upon thirty days’ notice. Legal Proceedings In the normal course of our business of patent monetization, it is generally necessary for us to initiate litigation in order to commence the process of protecting our patent rights. Such litigation is expected to lead to a monetization event. Accordingly, we are, and in the future, expect to become, a party to ongoing patent enforcement related litigation alleging infringement by various third parties of certain patented technologies owned and/or controlled by us. Litigation is commenced by and managed through the subsidiary that owns the related portfolio of patents or patent rights. In connection with our enforcement activities, we are currently involved in multiple patent infringement cases. As of December 31, 2016, the Company is involved into a total of 7 lawsuits against defendants in the following jurisdictions: United States District of Delaware 5 Central District of California 1 Eastern District of Michigan 1 On November 14, 2016, Symantec Corporation filed a complaint against Clouding Corp., a wholly-owned subsidiary of the Company, the Company and other unaffiliated parties in the Superior Court of the State of California for the County of Los Angeles, Unlimited Jurisdiction. Symantec Corporation asserted claims against Clouding Corp. and the Company of negligent misrepresentation, fraudulent misrepresentation, intentional interference with contractual relations, violation of Business & Professions Code Section 17200, and for an accounting. The Court has sustained in its entirety Clouding Corp.’s demurrer to Symantec Corporation’s complaint. Neither Clouding Corp. nor the Company were parties to the agreement on which the claims are based. Clouding Corp. plans to vigorously defend against such claims and is exploring counter-claims and repayment of the Company’s legal fees. On October 13, 2016, Liner LLP (“Liner”), a law firm, filed an arbitration request seeking payment of outstanding legal fees invoiced by Liner to Signal IP, Inc., a wholly-owned subsidiary of the Company. The Company is preparing counter-claims against Liner for its breach of the engagement agreement and abject failure in its representation of Signal IP, Inc. The Company plans to vigorously defend against such claims and is preparing counter-claims and will seek repayment of the Company’s legal fees. Other than as disclosed herein, we know of no other material, active or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceedings or pending litigation other than in the normal course of business.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
INCOME TAXES
INCOME TAXES	NOTE 7 - INCOME TAXES The Company accounts for income taxes under ASC Topic 740: Income Taxes, which requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carry-forwards. ASC Topic 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. The following table presents the current and deferred provision (benefit) for income taxes for the years ended December 31, 2016: 2016 2015 US Net Income/(loss) ) ) Foreign Net Income (loss) ) ) ) ) 2016 2015 Current: Federal $ $ ) State Foreign — $ $ Deferred: Federal $ $ ) State ) Foreign ) ) $ $ ) Total provision (benefit) $ $ ) The table below summarizes the differences between the Company’s effective tax rate and the statutory federal rate for the years ended December 31, 2016 and 2015. 2016 2015 Tax benefit computed at “expected” statutory rate $ ) $ ) State income taxes, net of benefit ) ) Permanent differences : Deemed Dividend — — Stock based compensation and consulting Transaction Cost Other permanent differences ) Foreign rate Differential — Amortization of patents and other — — Change in valuation allowance — Net income tax benefit $ $ ) The table below summarizes the differences between the Companies’ effective tax rate and the statutory federal rate as follows for the years ended December 31, 2016 and 2015: 2016 2015 Computed “expected” tax expense (benefit) )% )% State income taxes )% )% Permanent differences % % Timing differences — % — % Change in valuation allowance % — % Effective tax rate % )% The Company has a deferred tax asset, which is summarized as follows at December 31: 2016 2015 Deferred tax assets: Total deferred tax assets $ $ Total deferred tax liabilities — ) Less: valuation allowance ) — Net deferred tax asset $ — $ The details of the deferred tax asset and deferred tax liability are as follows: 2016 2015 Accruals $ $ Reserves — — Fixed Assets ) ) Intangible Assets Inventory — — State Taxes — Other Charitable Contributions — Net Operating Loss AMT Credit — Valuation Allowance ) — Net Deferred Asset/(Liability) $ — $ The Company does not have any taxable income in carryback years in which net operating losses (“NOLs”) can be carried back to. At December 31, 2016, the Company did not have any taxable temporary differences that will reverse and generate taxable income and was still in a cumulative loss position. Based on all the available information, including tax planning strategies and future forecast, the Company does not believe that it is more likely than not that the net deferred tax assets will be realized; therefore, a full valuation allowance has been recorded against its net deferred tax assets. As of December 31, 2016, the Company had NOL carry-forwards for federal and state purposes of approximately $18.0 million and $12.9 million, respectively, which will begin to expire in 2032. The utilization of NOL and credit carry-forwards may be limited under the provisions of the Internal Revenue Code (“IRC”) Section 382 and similar state provisions. IRC Section 382 generally imposes an annual limitation on the amount of NOL carry-forwards that may be used to offset taxable income where a corporation has undergone significant changes in stock ownership. As of December 31, 2016 and 2015, the Company has not recorded liability for unrecognized tax benefit. As of December 31, 2016 and 2015 the Company did not increase or decrease penalties or interest in connection with liability for unrecognized tax benefit. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. The Company files U.S. and state income tax returns with varying statutes of limitations. The 2012 through 2015 tax years generally remain subject to examination by federal and state tax authorities. The Company has not recognized a deferred tax liability on foreign earnings that it has declared as indefinitely reinvested. This amount may become taxable upon repatriation of assets from the subsidiaries or a sale or liquidation of the subsidiaries. The amount of earnings designated as indefinitely reinvested offshore is based upon our expectations of the future cash needs of the Company’s foreign entities.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2016
SUBSEQUENT EVENTS.
SUBSEQUENT EVENTS	NOTE 8 — SUBSEQUENT EVENTS On January 10, 2017, the Company and certain of its subsidiaries (each a “Subsidiary” and collectively with the Issuer, the “Company”) entered into an amended and restated revenue sharing and securities purchase agreement (the “ARRSSPA”) with DBD Credit Funding, LLC (“DBD”), an affiliate of Fortress Credit Corp. (“Fortress”), under which the Company and DBD amended and restated the Revenue Sharing and Securities Purchase Agreement dated January 29, 2015 (the “Original Agreement”) pursuant to which (i) Fortress purchased $20,000,000 in promissory notes, (ii) an interest in the Company’s revenues from certain activities and (iii) warrants to purchase 100,000 shares of the Company’s common stock. As of the close of the restructuring on January 10, 2017, there was $20,131,158 in outstanding principal and PIK interest accrued. Under the terms of the ARRSSPA, the Company pays interest only through January 2018, after which the principal amortizes over thirty (30) months. On January 27, 2017, the Company entered into a sales agreement (the “Sales Agreement”) with Northland Securities, Inc., as agent (“Northland”), pursuant to which the Company may offer and sell, from time to time through Northland, up to 750,000 shares (the “Shares”) of the Company’s common stock in an “at the market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended. As of January 31, 2017, the Company sold all 750,000 shares of common stock under the Sales Agreement for gross proceeds of approximately $1,301,923 and no further shares are available under the terms of the Sales Agreement as filed on January 27, 2017. The warrants pursuant to the Purchase Agreement entered into on December 9, 2016, as described above in Note 6, were purchased and issued in January and February 2017. On March 15, 2017, the Company terminated four of its employees and all six employees employed at the Company’s subsidiary, 3D Nano.

SUMMARY OF SIGNIFICANT ACCOUN16

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) and present the consolidated financial statements of the Company and its wholly owned and majority owned subsidiaries as of December 31, 2016. In the preparation of consolidated financial statements of the Company, intercompany transactions and balances are eliminated.
Use of Estimates and Assumptions	Use of Estimates and Assumptions The preparation of financial statements in conformity with US GAAP 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. Actual results could differ from those estimates. Significant estimates made by management include, but are not limited to, estimating the useful lives of patent assets, the assumptions used to calculate fair value of warrants and options granted, goodwill and intangible assets impairment, realization of long-lived assets, valuation of Clouding IP earn out liability, deferred income taxes, unrealized tax positions and business combination accounting.
Cash	Cash The Company considers all highly liquid debt instruments and other short-term investments with maturity of three months or less, when purchased, to be cash equivalents. The Company maintains cash and cash equivalent balances at one financial institution that is insured by the Federal Deposit Insurance Corporation. The Company’s accounts at this institution are insured, up to $250,000, by the Federal Deposit Insurance Corporation (“FDIC”). For the years ended December 31, 2016 and 2015, the Company’s bank balances exceeded the FDIC insurance limit. To reduce its risk associated with the failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds deposits.
Accounts Receivable	Accounts Receivable The Company has a policy of reserving for accounts based on its best estimate of the amount of probable credit losses in its existing accounts receivable. The Company periodically reviews its accounts receivable to determine whether an allowance is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt. Account balances deemed to be uncollectible are charged to the bad debt expense after all means of collection have been exhausted and the potential for recovery is considered remote. At December 31, 2016 and 2015, the Company had recorded an allowance for bad debts in the amounts of $387,976 and $375,750, respectively. Net accounts receivable at December 31, 2016 and 2015 were $95,069 and $136,842, respectively.
Concentration of Revenue and Geographic Area	Concentration of Revenue and Geographic Area Revenue from the Company’s patent enforcement activities is considered United States revenue as any payments for licenses included in that revenue are for United States operations irrespective of the location of the licensee’s or licensee’s parent home domicile. Revenues from the five largest licenses for the year ended December 31, 2016 accounted for approximately 97% of the Company’s total 2016 revenue and revenue from the largest five licenses in 2015 accounted for approximately 62% of the Company’s revenues for the year ended December 31, 2015. The Company derived these revenues from the one-time issuance of non-recurring, non-exclusive, non-assignable licenses. While the Company has a growing portfolio of patents, at this time, the Company expects that a significant portion of its future revenues will be based on one-time grants of similar non-recurring, non-exclusive, non-assignable licenses to a relatively small number of entities and their affiliates. Further, with the expected small number of firms with which the Company enters into license agreements, and the amount and timing of such license agreements, the Company also expects that its revenues may be highly variable from one period to the next. For the year ended December 31, 2016 the Company earned $161,000 of revenues in Germany. At the current time, we define customers as firms that obtain licenses to the Company’s patents, either prior to or during enforcement litigation. These firms generally enter into non-recurring, non-exclusive, non-assignable license agreements with the Company, and these customers do not generally engage on ongoing, recurring business activity with the Company. The Company has historically had a small number of customers enter into such agreements, resulting in higher levels of revenue concentration.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition”. Revenue is recognized when (i) persuasive evidence of an arrangement exists, (ii) all obligations have been substantially performed, (iii) amounts are fixed or determinable and (iv) collectability of amounts is reasonably assured. In general, revenue arrangements provide for the payment of contractually determined fees in consideration for the grant of certain intellectual property rights for patented technologies owned or controlled by the Company. These rights typically include some combination of the following: (i) the grant of a non-exclusive, perpetual license to use patented technologies owned or controlled by the Company, (ii) a covenant-not-to-sue, (iii) the dismissal of any pending litigation. The intellectual property rights granted typically are perpetual in nature. Pursuant to the terms of these agreements, the Company has no further obligation with respect to the grant of the non-exclusive licenses, covenants-not-to-sue, releases, and other deliverables, including no express or implied obligation on the Company’s part to maintain or upgrade the technology, or provide future support or services. Generally, the agreements provide for the grant of the licenses, covenants-not-to-sue, releases, and other significant deliverables upon execution of the agreement. As such, the earnings process is complete and revenue is recognized upon the execution of the agreement, when collectibility is reasonably assured, and when all other revenue recognition criteria have been met. The Company also considers the revenue generated from its settlement and licensing agreements as one unit of accounting under ASC 605-25, “Multiple-Element Arrangements” as the delivered items do not have value to customers on a standalone basis, there are no undelivered elements and there is no general right of return relative to the license. Under ASC 605-25, the appropriate recognition of revenue is determined for the combined deliverables as a single unit of accounting and revenue is recognized upon delivery of the final elements, including the license for past and future use and the release. Also, due to the fact that the settlement element and license element for past and future use are the Company’s major central business, the Company presents these two elements as one revenue category in its statement of operations. The Company does not expect to provide licenses that do not provide some form of settlement or release. Revenue from patent enforcement activities accounted for 100% of the Company’s revenues for the years ended December 31, 2016 and December 31, 2015.
Prepaid Expenses	Prepaid Expenses Prepaid expenses of $428,049 and $338,598 at December 31, 2016 and 2015, respectively, consist primarily of costs paid for future services that will occur within a year. Prepaid expenses include prepayments in cash and in equity instruments for investor relations public relations services, business advisory, other consulting and prepaid insurance, all of which assets are being amortized over the terms of their respective agreements.
Bonds Posted With Courts	Bonds Posted With Courts Under certain circumstances related to litigations in Germany, the Company is either required to or may decide to enter a bond with the courts. As of December 31, 2016 and December 31, 2015, the Company had outstanding bonds in the amount of $0 and $1,748,311, respectively. These bonds were entered into in Germany after the first instance of litigation of some of the Company’s patents in German courts and the difference in the balance of the litigation bonds at December 31, 2016 compared to December 31, 2015 is attributable to the repayment of all outstanding bonds.
Related Party Transactions	Related Party Transactions Parties are considered related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. On May 10, 2016, the Company entered into an executive employment agreement with Erich Spangenberg pursuant to which Mr. Spangenberg became the Company’s Director of Acquisitions, Licensing and Strategy. On May 13, 2013, we entered into a six-year advisory services agreement (the “Advisory Services Agreement”) with IP Navigation Group, LLC (“IP Nav”), of which Erich Spangenberg is founder and former Chief Executive Officer. Mr. Spangenberg is an affiliate of the Company. The terms of the Advisory Services Agreement provide that, in consideration for its services as intellectual property licensing agent, the Company will pay to IP Navigation Group, LLC between 10% and 20% of the gross proceeds of certain licensing campaigns in which IP Navigation Group, LLC acts as intellectual property licensing agent. On November 18, 2013, we entered into Amendment No. 1 to the Executive Employment Agreement with our Chief Executive Officer and Chairman, Doug Croxall, pursuant to which Mr. Croxall’s base salary was raised to $480,000, subject to a 3% increase every year commencing on November 14, 2014. We also granted Mr. Croxall a bonus of $350,000 and ten-year stock options to purchase an aggregate of 100,000 shares of our Common Stock, with a strike price of $5.93 per share (representing the closing price on the date of grant), vesting in twenty-four (24) equal installments on each monthly anniversary of the date of grant. On November 18, 2013, we entered into a consulting agreement with Jeff Feinberg (“Feinberg Agreement”), pursuant to which we agreed to grant Mr. Feinberg 100,000 shares of our restricted Common Stock, 50% of which shall vest on the one-year anniversary of the Feinberg Agreement and the remaining 50% of which shall vest on the second-year anniversary of the Feinberg Agreement. Mr. Feinberg is the trustee of The Feinberg Family Trust and holds voting and dispositive power over shares held by The Feinberg Family Trust, which is a 10% beneficial owner of our Common Stock. On May 2, 2014, the Company completed the acquisition of certain ownership rights (the “Acquired Intellectual Property”) from TechDev, Granicus and SFF pursuant to the terms of three purchase agreements between: (i) the Company, TechDev, SFF and DA Acquisition LLC, a newly formed Texas limited liability company and wholly-owned subsidiary of the Company; (ii) the Company, Granicus, SFF and IP Liquidity Ventures Acquisition LLC, a newly formed Delaware limited liability company and wholly-owned subsidiary of the Company; and (iii) the Company, TechDev, SFF and Sarif Biomedical Acquisition LLC, a newly formed Delaware limited liability company and wholly-owned subsidiary of the Company. TechDev, SFF and Granicus are owned or controlled by Erich Spangenberg or family members or associates. · Pursuant to the DA Agreement, the Company acquired 100% of the limited liability company membership interests of Dynamic Advances, LLC, a Texas limited liability company, in consideration for: (i) two cash payments of $2,375,000, one payment due at closing and the other payment was due on or before June 30, 2014, with such second payment being subject to increase to $2,850,000 if not made on or before June 30, 2014; and (ii) 195,500 shares of the Company’s Series B Convertible Preferred Stock. The remaining cash payment was made on April 1, 2015 and is fully paid. Under the terms of the DA Agreement, TechDev and SFF are entitled to possible future payments for a maximum consideration of $250,000,000 pursuant to the Pay Proceeds Agreement described below. · Pursuant to the IP Liquidity Agreement, the Company acquired 100% of the limited liability company membership interests of IP Liquidity Ventures, LLC, a Delaware limited liability company, in consideration for: (i) two cash payments of $2,375,000, one payment due at closing and the other payment was due on or before June 30, 2014, with such second payment being subject to increase to $2,850,000 if not made on or before June 30, 2014; and (ii) 195,500 shares of the Company’s Series B Convertible Preferred Stock. The remaining cash payment was made on April 1, 2015 and is fully paid. Under the terms of the IP Liquidity Agreement, Granicus and SFF are entitled to possible future payments for a maximum consideration of $250,000,000 pursuant to the Pay Proceeds Agreement described below. · Pursuant to the Sarif Agreement, the Company acquired 100% of the limited liability company membership interests of Sarif Biomedical, LLC, a Delaware limited liability company, in consideration for two cash payments of $250,000, one payment due at closing and the other payment was due on or before June 30, 2014, with such second payment being subject to increase to $300,000 if not made on or before June 30, 2014. The remaining cash payment was made on February 24, 2015 and is fully paid. Under the terms of the Sarif Agreement, TechDev and SFF are entitled to possible future payments for a maximum consideration of $250,000,000 pursuant to the Pay Proceeds Agreement described below. · Pursuant to the Pay Proceeds Agreement, the Company may pay the sellers a percentage of the net recoveries (gross revenues minus certain defined expenses) that the Company makes with respect to the assets held by the entities that the Company acquired pursuant to the DA Agreement, the IP Liquidity Agreement and the Sarif Agreement. Under the terms of the Pay Proceeds Agreement, as amended in 2016, if the Company recovers $10,000,000 or less with regard to the IP Assets, then nothing is due to the sellers; if the Company recovers between $13,000,000 and $40,000,000 with regard to the IP Assets, then the Company shall pay 40% of the cumulative gross proceeds of such recoveries to the sellers; and if the Company recovers over $40,000,000 with regard to the IP Assets, the Company shall pay 50% of the cumulative gross proceeds of such recoveries to the sellers. Pursuant to the amendment to the Pay Proceeds Agreement, the Company paid TechDev, Granicus and SFF $2.4 million. In no event will the total payments made by the Company under the Pay Proceeds Agreement exceed $250,000,000. On May 2, 2014, we entered into an opportunity agreement (the “Marathon Opportunity Agreement”) with Erich Spangenberg, who is an affiliate of the Company. The terms of the Marathon Opportunity Agreement provide that we have ten business days after receiving notice from Mr. Spangenberg to provide up to 50% of the funding for certain opportunities relating to the licensing, intellectual property acquisitions and/or intellectual property enforcement actions in which Mr. Spangenberg, IP Nav or any entity controlled by Mr. Spangenberg, other than: (i) IP Nav or any of its affiliates, and (ii) Medtech Development, LLC or any of its affiliates. On June 17, 2014, Selene Communication Technologies Acquisition LLC (“Acquisition LLC”), a Delaware limited liability company and newly formed wholly-owned subsidiary of the Company, entered into a merger agreement with Selene Communication Technologies, LLC (“Selene”). Selene owned a patent portfolio consisting of three United States patents in the field of search and network intrusion that relate to tools for intelligent searches applied to data management systems as well as global information networks such as the internet. IP Nav provided patent monetization and support services under an existing agreement with Selene prior to the return of the patents to Stanford Research Institute (“SRI”), the original owners of the patents. On August 29, 2014, the Company entered into a patent purchase agreement to acquire a portfolio of patents from Clouding IP, LLC for an aggregate purchase price of $2.4 million, of which $1.4 million was paid in cash and $1.0 million was paid in the form of a promissory note issued by the Company that matured on October 31, 2014 and was fully paid prior to the maturation date. The Company also issued 25,000 shares of its restricted common stock in connection with the acquisition. Clouding IP, LLC is also entitled to certain possible future cash payments. Clouding IP LLC is owned or controlled by Erich Spangenberg or family members or associates. On October 10, 2014, the Company entered into an interest sale agreement with MedTech Development, LLC (“MedTech”) to acquire from MedTech 100% of the limited liability membership interests of OrthoPhoenix and TLIF as well as 100% of the shares of MedTech GmbH. In connection with the transaction, the Company is obligated to pay to MedTech $1 million at closing and $1 million on each of the following nine (9) month anniversary dates of the closing. On July 16, 2015, the Company entered into a forbearance agreement (the “Agreement”) with MedTech Development, the holder of a Promissory Note issued by the Company, dated October 10, 2014. Pursuant to the Agreement, the term of the Note was extended to October 1, 2015 and the Note began accruing interest starting from May 13, 2015. In addition, the Company agreed to make certain mandatory prepayments under certain circumstances and issue to MedTech Development 200,000 shares of restricted common stock of the Company. In accordance with ASC 470-50, the Company recorded this agreement as debt extinguishment and $654,000 was recorded as loss on debt extinguishment during the year ended September 30, 2015. On October 23, 2015, the Company entered into Amendment No. 1 to the Forbearance Agreement (the “Amendment”) entered into with MedTech Development on July 16, 2015. Pursuant to the Amendment, the due date of the Promissory Note was extended to October 23, 2016 in return for which the Company made a payment of $100,000 on October 23, 2015 and modified the terms under which the Company agreed to make mandatory prepayments under certain circumstances. The acquired subsidiaries are also obligated to make certain additional payments to MedTech from recoveries following the receipt by the acquired subsidiaries of 200% of the purchase payments, plus recovery of out of pocket expenses in connection with patent claims. The participation payments may be paid, at the election of the Company, in common stock of Marathon at the market price on the date of issuance. In connection with the transaction, the Company entered into a promissory note, common interest agreement and in the event of issuance of common stock to MedTech, will enter into a lockup and registration rights agreement. Approximately forty-five percent (45%) of MedTech is owned or controlled by Erich Spangenberg or family members or associates. On October 1, 2016, one of the Company’s subsidiaries, PG Technologies S.a.r.l. entered into an advisory services agreement with Granicus IP, LLC, an entity owned or controlled by one of the Company’s employees, whereby Granicus receives a percentage of pre-tax return from PG Technologies after certain revenue thresholds have been met. During 2016, certain officers and directors of the Company received restricted common stock in the Company’s 3D Nano subsidiary.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. The carrying amounts reported in the consolidated balance sheet for cash, accounts receivable, accounts payable, and accrued expenses, approximate their estimated fair market value based on the short-term maturity of these instruments. The carrying value of notes payable and other long-term liabilities approximate fair value as the related interest rates approximate rates currently available to the Company. The Clouding IP earn out liability was determined to be a Level 3 liability, which requires fair assessment of fair value at each period end by using a discounted cash flow model as the valuation methodology, using unobservable inputs, such as revenue and expenses forecasts, timing of proceeds, and discount rates. Based on the reassessment of fair value as of December 31, 2016, the Company determined the Clouding IP earn out liability to be $81,930 (current portion) and $1,400,082 (long-term portion), which resulted in a gain from exchange in fair value adjustment of $1,832,872 for the year ended December 31, 2016. Further, the periodic reassessment resulted in a non-routine impairment of the Clouding patent intangible assets of $3,089,983 for the year ended December 31, 2016. Under certain circumstances related to litigations in Germany, the Company is either required to or may decide to enter a bond with the courts. As of December 31, 2016 and December 31, 2015, the Company had outstanding bonds in the amount of $0 and $1,748,311, respectively. These bonds were entered into in Germany after the first instance of litigation of some of the Company’s patents in German courts and the difference in the balance of the litigation bonds at December 31, 2016 compared to December 31, 2015 is attributable to the repayment of all outstanding bonds. The Company adjusts the value of the bonds at the end of each reporting period to reflect changes to the exchange rate between the Euro and the US Dollar.
Accounting for Acquisitions	Accounting for Acquisitions In the normal course of its business, the Company makes acquisitions of patent assets and may also make acquisitions of businesses. With respect to each such transaction, the Company evaluates facts of the transaction and follows the guidelines prescribed in accordance with ASC 805 — Business Combinations to determine the proper accounting treatment for each such transaction and then records the transaction in accordance with the conclusions reached in such analysis. The Company performs such analysis with respect to each material acquisition within the consolidated group of entities.
Income Taxes	Income Taxes The Company accounts for income taxes pursuant to the provision of ASC 740-10, “Accounting for Income Taxes” which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized. The Company follows the provision of the ASC 740-10 related to Accounting for Uncertain Income Tax Position. When tax returns are filed, it is more likely than not that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is most likely that not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions will more likely than not be upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits. The federal and state income tax returns of the Company are subject to examination by the Internal Revenue Service and state taxing authorities, generally for three years after they were filed. The Company is in the process of filing the 2016 tax returns. After review of the prior year financial statements and the results of operations through December 31, 2016, the Company has recorded a full valuation allowance on its deferred tax asset.
Basic and Diluted Net Loss per Share	Basic and Diluted Net Loss per Share Net loss per common share is calculated in accordance with ASC Topic 260: Earnings Per Share (“ASC 260”). Basic loss per share is computed by dividing net loss by the weighted average number of shares of Common Stock outstanding during the period. The computation of diluted net loss per share does not include dilutive Common Stock equivalents in the weighted average shares outstanding, as they would be anti-dilutive. As of December 31, 2016, the Company has warrants to purchase 466,078 shares of Common Stock outstanding, options to purchase 3,516,136 shares of Common Stock outstanding, convertible notes convertible into 66,667 shares of Common Stock outstanding and 782,004 shares of Series B Convertible Preferred Stock convertible into 782,004 shares of Common Stock outstanding, all of which were excluded from the computation of diluted shares outstanding as they would have had an anti-dilutive impact on the Company’s net loss per share computation. The following table sets forth the computation of basic and diluted loss per share on a GAAP basis: For the Year Ended For the Year Ended Net loss attributable to Common Shareholders $ ) $ ) Denominator Weighted Average Common Shares - Basic Weighted Average Common Shares - Diluted Earnings (Loss) per common share: Earnings (Loss) - Basic $ ) $ ) Earnings (Loss) - Diluted $ ) $ )
Intangible Assets - Patents	Intangible Assets - Patents Intangible assets include patents purchased and patents acquired in lieu of cash in licensing transactions. The patents purchased are recorded based on the cost to acquire them and patents acquired in lieu of cash are recorded at their fair market value. The costs of these assets are amortized over their remaining useful lives. Useful lives of intangible assets are periodically evaluated for reasonableness and the assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may no longer be recoverable. The Company recorded impairment charges to its intangible assets during the year ended December 31, 2016 in the amount of $11,958,882, associated with the end of life of a number of the Company’s portfolios, compared to an impairment charge in the amount of $5,793,409 during the year ended December 31, 2015 associated with the reduction in the carrying value of one the Company’s portfolios.
Goodwill	Goodwill Goodwill is tested for impairment at the reporting unit level at least annually in accordance with ASC 350, and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. When conducting its annual goodwill impairment assessment, the Company initially performs a qualitative evaluation of whether it is more likely than not that goodwill is impaired. If it is determined by a qualitative evaluation that it is more likely than not that goodwill is impaired, the Company then applies a two-step impairment test. The two-step impairment test first compares the fair value of the Company’s reporting unit to its carrying or book value. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired. If the carrying value of the reporting unit exceeds its fair value, the Company determines the implied fair value of the reporting unit’s goodwill and if the carrying value of the reporting unit’s goodwill exceeds its implied fair value, then an impairment loss equal to the difference is recorded in the consolidated statement of operations. The Company performs the annual testing for impairment of goodwill at the reporting unit level during the quarter ended September 30. For the year ended December 31, 2016, the Company recorded an impairment charge to its goodwill in the amount of $4,336,307, and for the year ended December 31, 2015, the Company recorded no impairment charge to its goodwill.
Other Intangible Assets	Other Intangible Assets In accordance with ASC 350-30, “Intangibles - Goodwill and Others”, the Company assesses the impairment of identifiable intangibles whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors the Company considers to be important which could trigger an impairment review include the following: (1) significant underperformance relative to expected historical or projected future operating results; (2) significant changes in the manner of use of the acquired assets or the strategy for the overall business; and (3) significant negative industry or economic trends. When the Company determines that the carrying value of intangibles may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flows, the Company records an impairment charge. The Company measures any impairment based on a projected discounted cash flow method using a discount rate determined by management to be commensurate with the risk inherent in the current business model.
Impairment of Long-lived Assets	Impairment of Long-lived Assets The Company accounts for the impairment or disposal of long-lived assets according to the ASC 360 “Property, Plant and Equipment”. The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of long-lived assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated future net undiscounted cash flows that the Company expects to be generated by the asset. When necessary, impaired assets are written down to estimated fair value based on the best information available. Estimated fair value is generally based on either appraised value or measured by discounting estimated future cash flows. Considerable management judgment is necessary to estimate discounted future cash flows. Accordingly, actual results could vary significantly from such estimates. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The Company did not record any impairment charges on its long-lived assets during the years ended December 31, 2016 and 2015.
Stock-based Compensation	Stock-based Compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. As stock-based compensation expense is recognized based on awards expected to vest, forfeitures are also estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. For the year ended December 31, 2016, the expected forfeiture rate was 2.4%, which resulted in a decrease in expense of $44,146, recognized in the Company’s compensation expenses and for the year ended December 31, 2015, the expected forfeiture rate was 10.40%, which resulted in a decrease in expense of $28,663, recognized in the Company’s compensation expenses. The Company will continue to re-assess the impact of forfeitures if actual forfeitures increase in future quarters. Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third parties, compensation expense is determined at the “measurement date.” The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date.
Reclassification	Reclassification Certain prior year reported amounts have been reclassified to conform to the current year presentation. The reclassification did not have an impact on previously issued net income (loss) or Total Shareholders’ Equity.
Liquidity and Capital Resources	Liquidity and Capital Resources At December 31, 2016, we had approximately $5.0 million in cash and cash equivalents and a working capital deficit of approximately $14.9 million. Based on the Company’s current revenue and profit projections, management is uncertain that the Company’s existing cash and accounts receivables will be sufficient to fund its operations through at least the next twelve months from the issuance date of the financial statements, raising substantial doubt regarding the Company’s ability to continue operating as a going concern. If we do not meet our revenue and profit projections or the business climate turns negative, then we will need to: · raise additional funds to support the Company’s operations; provided, however, there is no assurance that the Company will be able to raise such additional funds on acceptable terms, if at all. If the Company raises additional funds by issuing securities, existing stockholders may be diluted; and · review strategic alternatives. If adequate funds are not available, we may be required to curtail our operations or other business activities or obtain funds through arrangements with strategic partners or others that may require us to relinquish rights to certain technologies or potential markets. The accompanying consolidated financial statements have been prepared assuming the Company will continue to operate as a going concern, which contemplates the realization of assets and settlements of liabilities in the normal course of business, and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from uncertainty related to the Company’s ability to continue as a going concern
Recent Accounting Pronouncements	Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04 Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). This guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the amended guidance, a goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill. This guidance is effective for interim and annual period beginning after December 15, 2019, with early adoption permitted for any impairment tests performed after January 1, 2017. In January 2017, the FASB issued ASU 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”), which clarifies the definition of a business and assists entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under this guidance, when substantially all of the fair value of gross assets acquired is concentrated in a single asset (or group of similar assets), the assets acquired would not represent a business. In addition, in order to be considered a business, an acquisition would have to include at a minimum an input and a substantive process that together significantly contribute to the ability to create an output. The amended guidance also narrows the definition of outputs by more closely aligning it with how outputs are described in FASB guidance for revenue recognition. This guidance is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. In October 2016, the FASB issued ASU 2016-16 Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”), which eliminates the exception in existing guidance which defers the recognition of the tax effects of intra-entity asset transfers other than inventory until the transferred asset is sold to a third party. Rather, the amended guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This guidance is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted as of the beginning of an annual reporting period. The Company is currently assessing the impact of this guidance on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The standard is intended to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 will be effective for fiscal years beginning after December 15, 2017. Early adoption is permitted for all entities. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In May 2014, the FASB Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, as a new Topic, (ASC) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. This ASU must be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. We are considering the alternatives of adoption of this ASU and we are conducting our review of the likely impact to the existing portfolio of customer contracts entered into prior to adoption. After completing our review, we will continue to evaluate the effect of adopting this guidance upon our results of operations, cash flows and financial position. In March 2016, the FASB issued ASU No. 2016-09, “ Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ” (“ASU 2016-09”). The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is permitted. Accordingly, the standard is effective for us on January 1, 2017 and we are currently evaluating the impact that the standard will have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting . The amendments in the ASU eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those years and should be applied prospectively upon the effective date. Early adoption is permitted. The Company is currently evaluating the provisions of this guidance. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) ” (“ASU 2016-02”). The standard requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. Accordingly, the standard is effective for us on September 1, 2019 using a modified retrospective approach. We are currently evaluating the impact that the standard will have on our consolidated financial statements. There were other updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of computation of basic and diluted loss per share	For the Year Ended For the Year Ended Net loss attributable to Common Shareholders $ ) $ ) Denominator Weighted Average Common Shares - Basic Weighted Average Common Shares - Diluted Earnings (Loss) per common share: Earnings (Loss) - Basic $ ) $ ) Earnings (Loss) - Diluted $ ) $ )

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
	Dec. 31, 2016
Clouding Corp
Summary of net purchase price paid, assets and liabilities	Intangible assets $ Goodwill Net purchase price $ Total consideration paid of the following: Cash $ Promissory Note Common Stock Earn-Out Liability Net purchase price $
Medtech Group
Summary of net purchase price paid, assets and liabilities	Intangible assets $ Goodwill Net purchase price $

INTANGIBLE ASSETS, NET (Tables)

INTANGIBLE ASSETS, NET (Tables)	12 Months Ended
	Dec. 31, 2016
INTANGIBLE ASSETS, NET
Schedule of intangible assets, net	December 31, 2016 December 31, 2015 Intangible Assets $ $ Accumulated Amortization & Impairment ) ) Intangible assets, net $ $
Schedule of future amortization of current intangible assets, net	2017 $ 2018 2019 2020 2021 2022 and thereafter Total $

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2016
STOCKHOLDERS' EQUITY
Summary of the Company's outstanding stock warrants and changes during the period	Number of Warrants Weighted Average Weighted Average Balance at December 31, 2015 $ Granted $ Cancelled — Forfeited — — — Exercised $ — Balance at December 31, 2016 Warrants exercisable at December 31, 2016 Weighted average fair value of warrants granted during the period $
Summary of stock options and changes during the period	Number of Options Weighted Average Weighted Average Balance at December 31, 2015 $ Granted $ Cancelled $ — Forfeited $ — Exercised — $ — — Balance at December 31, 2016 $ Options Exercisable at December 31, 2016 $ Options expected to vest $ Weighted average fair value of options granted during the period $

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES
Schedule of debt and obligations	Maturity Interest December 31, Date Rate 2016 2015 Senior secured term notes 29-Jul-18 LIBOR + 9.75% $ $ Less: debt discount ) ) Total senior-term notes, net of discount $ $ Maturity Interest December 31, Date Rate 2016 2015 Convertible Note 10-Oct-18 % $ $ Less: debt discount — ) Total convertible note $ $ Maturity Late December 31, Date Fee 2016 2015 iRunway trade payable On Demand 1.5% per month $ $ Maturity Interest December 31, Date Rate 2016 2015 Note payable 31-Jan-17 NA $ $ — Maturity Interest December 31, Date Rate 2016 2015 Sichenzia trade payable On Demand NA $ — $ Maturity Interest December 31, Date Rate 2016 2015 Medtech LLC note payable On Demand % $ — $ Maturity Interest December 31, Date Rate 2016 2015 Afco financing On Demand % $ — $ Maturity Interest December 31, Date Rate 2016 2015 Siemens 30-Sep-17 NA $ $ — Maturity Interest December 31, Date Rate 2016 2015 Dominion Harbor 15-Oct-17 NA $ $ Maturity Interest December 31, Date Rate 2016 2015 Oil & Gas On Demand NA $ $ — Maturity Interest December 31, Date Rate 2016 2015 3dnano Liscense Fee 31-Jan-17 NA $ $ —
Schedule of notes payable	2016 2015 Total $ $ Less: current portion ) ) Total, net of current portion $ $
Schedule of maturities of senior and sub combined debt	2017 $ 2018 Total $
Schedule of future minimum lease payments	Minimum future lease payments under this lease at December 31, 2016, net of the rent abatement, for the next five years are as follows: 2017 $ 2018 2019 2020 2021 Total $
Schedule of pending lawsuits against defendants	As of December 31, 2016, the Company is involved into a total of 7 lawsuits against defendants in the following jurisdictions: United States District of Delaware 5 Central District of California 1 Eastern District of Michigan 1

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
INCOME TAXES
Schedule of current and deferred provision (benefit) for income taxes	2016 2015 US Net Income/(loss) ) ) Foreign Net Income (loss) ) ) ) ) 2016 2015 Current: Federal $ $ ) State Foreign — $ $ Deferred: Federal $ $ ) State ) Foreign ) ) $ $ ) Total provision (benefit) $ $ )
Schedule of differences between the Company's effective tax rate and the statutory federal rate (in dollars)	2016 2015 Tax benefit computed at “expected” statutory rate $ ) $ ) State income taxes, net of benefit ) ) Permanent differences : Deemed Dividend — — Stock based compensation and consulting Transaction Cost Other permanent differences ) Foreign rate Differential — Amortization of patents and other — — Change in valuation allowance — Net income tax benefit $ $ )
Schedule of differences between the Company's effective tax rate and the statutory federal rate (as a percent)	2016 2015 Computed “expected” tax expense (benefit) )% )% State income taxes )% )% Permanent differences % % Timing differences — % — % Change in valuation allowance % — % Effective tax rate % )%
Schedule of deferred tax assets	2016 2015 Deferred tax assets: Total deferred tax assets $ $ Total deferred tax liabilities — ) Less: valuation allowance ) — Net deferred tax asset $ — $
Schedule of deferred tax asset and deferred tax liability	2016 2015 Accruals $ $ Reserves — — Fixed Assets ) ) Intangible Assets Inventory — — State Taxes — Other Charitable Contributions — Net Operating Loss AMT Credit — Valuation Allowance ) — Net Deferred Asset/(Liability) $ — $

ORGANIZATION AND DESCRIPTION 23

ORGANIZATION AND DESCRIPTION OF BUSINESS - Organization (Details)	Oct. 01, 2012	Dec. 31, 2016$ / sharesshares	Dec. 31, 2015$ / sharesshares	Aug. 01, 2012shares	Dec. 07, 2011$ / sharesshares
Organization and Description of Business
Common stock, shares authorized		200,000,000	200,000,000
Common stock, par value | $ / shares		$ 0.0001	$ 0.0001
Preferred stock, shares authorized		100,000,000
Preferred stock, par value | $ / shares		$ 0.0001
Common Stock
Organization and Description of Business
Reverse stock split ratio	1.5
Reverse stock split time to effectuate	1 year
2012 Plan | Common Stock
Organization and Description of Business
Shares reserved for issuance under plan				20,000,000
American Strategic Minerals Corporation
Organization and Description of Business
Common stock, shares authorized					200,000,000
Common stock, par value | $ / shares					$ 0.0001
Preferred stock, shares authorized					100,000,000
Preferred stock, par value | $ / shares					$ 0.0001

ORGANIZATION AND DESCRIPTION 24

ORGANIZATION AND DESCRIPTION OF BUSINESS - Operations (Details)

Dec. 14, 2016$ / sharesshares

Dec. 09, 2016$ / sharesshares

May 11, 2016USD ($)$ / sharesshares

Dec. 09, 2015USD ($)$ / sharesshares

Nov. 04, 2015USD ($)$ / sharesshares

Oct. 23, 2015USD ($)

Oct. 20, 2015shares

Sep. 21, 2015USD ($)$ / sharesshares

Jul. 16, 2015USD ($)$ / sharesshares

Mar. 13, 2015shares

Jan. 29, 2015USD ($)$ / sharesshares

Dec. 22, 2014

Oct. 17, 2014installment

Oct. 16, 2014USD ($)$ / sharesshares

Oct. 10, 2014USD ($)payment

Oct. 06, 2014shares

Aug. 29, 2014USD ($)shares

May 02, 2014USD ($)shares

May 01, 2014$ / sharesshares

Sep. 30, 2015shares

Jun. 30, 2015shares

Mar. 31, 2015shares

Dec. 31, 2016USD ($)$ / sharesshares

Dec. 31, 2015USD ($)$ / sharesshares

Dec. 31, 2014USD ($)shares

Feb. 12, 2015USD ($)

Sep. 17, 2014shares

Organization and Description of Business

Value of stock issued for services | $

$ 136,000

$ 900,500

Value of shares issued | $

$ 4,654,080

Loss on debt extinguishment | $

$ (1,416,915)

Common stock, par value | $ / shares

$ 0.0001

$ 0.0001

Series B Convertible Preferred Stock

Organization and Description of Business

Stock Dividend (as a percent)

200.00%

Conversion of Stock, Shares Converted

1

Common Stock

Organization and Description of Business

Number of shares issued upon exercise of warrants

5,000

23,334

Stock issued for services (in shares)

180,000

210,000

Value of stock issued for services | $

$ 18

$ 21

Shares issued

3,481,997

Value of shares issued | $

$ 349

Exercise stock options (in shares)

33,968

Common Stock | Former Consultant

Organization and Description of Business

Shares issued

60,000

Accredited Investors | Series A Convertible Preferred Stock | Private Placement

Organization and Description of Business

Preferred stock, shares issued

2,047,158

Accredited Investors | Common Stock | Private Placement

Organization and Description of Business

Term of warrants

2 years

Number of warrants to purchase common stock

511,790

Exercise price of warrants | $ / shares

$ 3.75

Clouding IP, LLC | Common Stock | Restricted Stock

Organization and Description of Business

Stock issued in acquisition (in shares)

25,000

Fair value of restricted common stock | $

$ 281,000

MedTech | Promissory Notes

Organization and Description of Business

Number of cash payments made | payment

9

Cooper Law Firm., LLC | Common Stock | Private Placement

Organization and Description of Business

Stock issued for services (in shares)

80,000

Value of stock issued for services | $

$ 136,000

Price per share | $ / shares

$ 1.70

Melechdavid, Inc | Common Stock | Private Placement

Organization and Description of Business

Stock issued for services (in shares)

100,000

Value of stock issued for services | $

$ 161,000

Price per share | $ / shares

$ 1.61

Consulting and services agreement | GRQ

Organization and Description of Business

Term of consulting agreement

6 months

Number of equal monthly installments | installment

6

Consulting and services agreement | GRQ | Series B Convertible Preferred Stock

Organization and Description of Business

Preferred stock consideration (in shares)

200,000

Vest upon execution (percentage)

50.00%

Vest after execution (percentage)

50.00%

Stock issued for services (in shares)

50,000

150,000

Value of stock issued for services | $

$ 345,334

$ 1,103,581

Number of shares of common stock issued upon conversion of preferred stock

2

Preferred stock, shares outstanding

4

Conversion of Stock, Shares Converted

16,666

183,330

199,996

Consulting and services agreement | GRQ | Series B Convertible Preferred Stock, Tranche One

Organization and Description of Business

Stock issued for services (in shares)

100,000

Consulting and services agreement | GRQ | Common Stock

Organization and Description of Business

Number of shares of common stock issued upon conversion of preferred stock

16,666

199,996

Consulting and services agreement | Alex Partners LLC and Del Mar Consulting Group | Common Stock | Private Placement

Organization and Description of Business

Stock issued for services (in shares)

150,000

Value of stock issued for services | $

$ 334,500

Price per share | $ / shares

$ 2.23

Consulting and services agreement | Cooper Law Firm., LLC | Common Stock

Organization and Description of Business

Stock issued for services (in shares)

80,000

Value of stock issued for services | $

$ 136,000

Price per share | $ / shares

$ 1.70

Interest Sale Agreement | MedTech

Organization and Description of Business

Payments to Acquire Businesses, Net of Cash Acquired | $

$ 1,000,000

Loss on debt extinguishment | $

$ 654,000

Recovery threshold (as a percent)

200.00%

Patent enforcement liabilities | $

$ 0

Interest Sale Agreement | MedTech | Promissory Notes

Organization and Description of Business

Cash | $

$ 100,000

Monthly payment obligation | $

$ 1,000,000

Interest Sale Agreement | MedTech | Common Stock | Restricted Stock

Organization and Description of Business

Restricted common stock issued (in shares)

200,000

Fortress Purchase Agreement | DBD Credit Funding, LLC | Senior Lien

Organization and Description of Business

Licenses Revenue | $

$ 15,000,000

Fortress Purchase Agreement | DBD Credit Funding, LLC | Convertible Notes

Organization and Description of Business

Principal amount of debt | $

$ 5,000,000

Fortress Purchase Agreement | DBD Credit Funding, LLC | Senior Notes

Organization and Description of Business

Principal amount of debt | $

$ 15,000,000

Fortress Purchase Agreement | DBD Credit Funding, LLC | Common Stock

Organization and Description of Business

Term of warrants

5 years

Number of warrants to purchase common stock

100,000

Exercise price of warrants | $ / shares

$ 7.44

Shares issued

134,409

Settlement and license agreement | Dominion Harbor Group, LLC | Common Stock | Private Placement

Organization and Description of Business

Price per share | $ / shares

$ 1.71

Shares issued

300,000

Value of shares issued | $

$ 513,000

Securities Purchase Agreement | Common Stock

Organization and Description of Business

Number of warrants to purchase common stock

0

Price per share | $ / shares

$ 1.50

Purchase price per warrant | $ / shares

0.01

Shares issued

3,481,997

Securities Purchase Agreement | Accredited Investors | Convertible Notes

Organization and Description of Business

Principal amount of debt | $

$ 5,550,000

Long-term debt outstanding | $

$ 500,000

Conversion price (in dollars per share) | $ / shares

$ 7.50

Interest rate of loan (as a percent)

11.00%

Beneficial conversion feature | $

$ 0

Securities Purchase Agreement | Accredited Investors | Common Stock

Organization and Description of Business

Term of warrants

2 years

Number of warrants to purchase common stock

258,998

Exercise price of warrants | $ / shares

$ 8.25

Common stock, par value | $ / shares

$ 0.0001

Warrants value | $

$ 169,015

Securities Purchase Agreement | Institutional investors | Common Stock

Organization and Description of Business

Number of warrants to purchase common stock

1,740,995

Exercise price of warrants | $ / shares

$ 1.70

Price per share | $ / shares

$ 1.50

Purchase price per warrant | $ / shares

0.01

Shares issued

3,481,997

Securities Purchase Agreement | Underwriters | Common Stock

Organization and Description of Business

Term of warrants

5 years

Number of warrants to purchase common stock

174,100

Exercise price of warrants | $ / shares

$ 1.73

Forbearance Agreement | MedTech | Common Stock | Restricted Stock

Organization and Description of Business

Fair value of restricted common stock | $

$ 654,000

Restricted common stock issued (in shares)

200,000

Fair value on grant date (in dollars per share) | $ / shares

$ 3.27

Patent purchase agreement | Clouding IP, LLC

Organization and Description of Business

Payments to Acquire Businesses, Net of Cash Acquired | $

2,400,000

Cash | $

1,400,000

Promissory note issued | $

$ 1,000,000

Orthophoenix, LLC | Interest Sale Agreement | MedTech

Organization and Description of Business

Ownership interest held (as a percent)

100.00%

TLIF, LLC | Interest Sale Agreement | MedTech

Organization and Description of Business

Ownership interest held (as a percent)

100.00%

MedTech GmbH | Interest Sale Agreement | MedTech

Organization and Description of Business

Percentage of shares (as a percent)

100.00%

IP Liquidity Ventures, LLC, Dynamic Advances, LLC and Sarif Biomedical, LLC | Series B Convertible Preferred Stock | Private Placement

Organization and Description of Business

Stock issued in acquisition (in shares)

782,000

Stock issued in acquisition, value | $

$ 2,807,380

SUMMARY OF SIGNIFICANT ACCOUN25

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash, Accounts Receivable, Concentration of Revenue, Revenue Recognition (Details)	12 Months Ended
	Dec. 31, 2016USD ($)agreementitem	Dec. 31, 2015USD ($)agreement
Cash
Number of financial institution for maintaining balances of cash and cash equivalents | item	1
Accounts Receivable
Allowance for bad debts	$ 387,976	$ 375,750
Net accounts receivable	95,069	136,842
Concentration of Revenue and Geographic Area
Revenues	36,629,276	18,977,794
Prepaid Expenses
Prepaid Expense, Current	428,049	338,598
Bonds Posted With Courts
Estimated Litigation Liability	$ 0	$ 1,748,311
Patent Enforcement
Concentration of Revenue and Geographic Area
Number of largest licenses | agreement	5	5
Revenues from licenses (as a percent)	97.00%	62.00%
Geographic concentration risk | Germany
Concentration of Revenue and Geographic Area
Revenues	$ 108,000
Revenue | Patent Enforcement
Concentration of Revenue and Geographic Area
Revenues from licenses (as a percent)	100.00%	100.00%
Maximum
Cash
Insured by FDIC	$ 250,000	$ 250,000

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Related Party Transactions Consulting and Share Agreements (Details)	Nov. 18, 2013USD ($)installment$ / sharesshares	May 13, 2013	Dec. 31, 2016USD ($)shares	Dec. 31, 2015shares
Related Party Transactions
Issue common stock			$ 4,654,080
Common Stock
Related Party Transactions
Issue common stock			$ 349
Issue common stock for services (in shares) | shares			180,000	210,000
IP Navigation Group, LLC | Advisory Services Agreement | Founder and Former Chief Executive Officer
Related Party Transactions
Length of agreement		6 years
IP Navigation Group, LLC | Advisory Services Agreement | Founder and Former Chief Executive Officer | Minimum
Related Party Transactions
Percent of gross proceeds (as a percent)		10.00%
IP Navigation Group, LLC | Advisory Services Agreement | Founder and Former Chief Executive Officer | Maximum
Related Party Transactions
Percent of gross proceeds (as a percent)		20.00%
Chief Executive Officer | Croxall Employment Agreement, Amendment One
Related Party Transactions
Base salary	$ 480,000
Increase in salary (as a percent)	3.00%
Bonus amount	$ 350,000
Chief Executive Officer | Croxall Employment Agreement, Amendment One | Common Stock
Related Party Transactions
Common stock issued (in shares) | shares	100,000
Option term	10 years
Option price (in dollars per share) | $ / shares	$ 5.93
Number of monthly installments | installment	24
Feinberg Family Trust | Feinberg Agreement | Trustee | Common Stock | Restricted Stock
Related Party Transactions
Common stock issued (in shares) | shares	100,000
Vesting on first anniversary (as a percent)	50
Vesting on second anniversary (as a percent)	50

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Related Party Transactions Acquisitions (Details)	Jun. 30, 2014USD ($)	May 02, 2014USD ($)installmentpaymentshares	May 02, 2013USD ($)	Dec. 31, 2016USD ($)
Dynamic Advances, IP Liquidity and Sarif Biomedical
Related Party Transactions
Number of purchase agreements		3
Dynamic Advances, IP Liquidity and Sarif Biomedical | Pay Proceeds Agreement Member | Maximum
Related Party Transactions
Reimbursement Revenue		$ 250,000,000
Dynamic Advances, IP Liquidity and Sarif Biomedical | Pay Proceeds Agreement Member | $10,000,000 or less | Maximum
Related Party Transactions
Reimbursement Revenue		$ 10,000,000
Dynamic Advances, IP Liquidity and Sarif Biomedical | Pay Proceeds Agreement Member | $10,000,000 to $40,000,000
Related Party Transactions
Net recovery proceeds due to sellers (as a percent)		40.00%
Dynamic Advances, IP Liquidity and Sarif Biomedical | Pay Proceeds Agreement Member | $10,000,000 to $40,000,000 | Minimum
Related Party Transactions
Reimbursement Revenue		$ 10,000,000
Dynamic Advances, IP Liquidity and Sarif Biomedical | Pay Proceeds Agreement Member | $10,000,000 to $40,000,000 | Maximum
Related Party Transactions
Reimbursement Revenue		$ 40,000,000
Dynamic Advances, IP Liquidity and Sarif Biomedical | Pay Proceeds Agreement Member | Over $40,000,000
Related Party Transactions
Net recovery proceeds due to sellers (as a percent)		50.00%
Dynamic Advances, IP Liquidity and Sarif Biomedical | Pay Proceeds Agreement Member | Over $40,000,000 | Minimum
Related Party Transactions
Reimbursement Revenue		$ 40,000,000
Dynamic Advances, LLC
Related Party Transactions
Ownership interest held (as a percent)		100.00%
Number of cash payments made | payment		2
Payments to Acquire Businesses, Net of Cash Acquired			$ 5,225,000	$ 6,653,078
Maximum possible amount of future payments		$ 250,000,000
IP Liquidity
Related Party Transactions
Ownership interest held (as a percent)		100.00%
Number of cash payments made | payment		2
Payments to Acquire Businesses, Net of Cash Acquired	$ 2,850,000	$ 5,225,000
Maximum possible amount of future payments		$ 250,000,000
Sarif Biomedical, LLC
Related Party Transactions
Ownership interest held (as a percent)		100.00%
Number of cash payments made | payment		2
Payments to Acquire Businesses, Net of Cash Acquired		$ 550,000		$ 552,024
Maximum possible amount of future payments		$ 250,000,000
Acquired Intellectual Property | Erich Spangenberg | Dynamic Advances, IP Liquidity and Sarif Biomedical
Related Party Transactions
Number of purchase agreements		3
Acquired Intellectual Property | Erich Spangenberg | Dynamic Advances, IP Liquidity and Sarif Biomedical | Pay Proceeds Agreement Member | Maximum
Related Party Transactions
Reimbursement Revenue		$ 250,000,000
Acquired Intellectual Property | Erich Spangenberg | Dynamic Advances, IP Liquidity and Sarif Biomedical | Pay Proceeds Agreement Member | $10,000,000 or less
Related Party Transactions
Reimbursement Revenue		$ 10,000,000
Acquired Intellectual Property | Erich Spangenberg | Dynamic Advances, IP Liquidity and Sarif Biomedical | Pay Proceeds Agreement Member | $10,000,000 to $40,000,000
Related Party Transactions
Net recovery proceeds due to sellers (as a percent)		40.00%
Acquired Intellectual Property | Erich Spangenberg | Dynamic Advances, IP Liquidity and Sarif Biomedical | Pay Proceeds Agreement Member | $10,000,000 to $40,000,000 | Minimum
Related Party Transactions
Reimbursement Revenue		$ 13,000,000
Acquired Intellectual Property | Erich Spangenberg | Dynamic Advances, IP Liquidity and Sarif Biomedical | Pay Proceeds Agreement Member | $10,000,000 to $40,000,000 | Maximum
Related Party Transactions
Reimbursement Revenue		40,000,000
Acquired Intellectual Property | Erich Spangenberg | Dynamic Advances, IP Liquidity and Sarif Biomedical | Pay Proceeds Agreement Member | Over $40,000,000
Related Party Transactions
Reimbursement Revenue		40,000,000
Payments of Reimbursement Revenue		$ 2,400,000
Net recovery proceeds due to sellers (as a percent)		50.00%
Acquired Intellectual Property | Erich Spangenberg | Dynamic Advances, LLC
Related Party Transactions
Ownership interest held (as a percent)		100.00%
Number of cash payments made | installment		2
Second payment amount after June 30, 2014		$ 2,850,000
Preferred stock, shares issued | shares		195,500
Maximum possible amount of future payments		$ 250,000,000
Acquired Intellectual Property | Erich Spangenberg | IP Liquidity
Related Party Transactions
Ownership interest held (as a percent)		100.00%
Number of cash payments made | installment		2
Second payment amount after June 30, 2014		$ 2,850,000
Preferred stock, shares issued | shares		195,500
Maximum possible amount of future payments		$ 250,000,000
Acquired Intellectual Property | Erich Spangenberg | Sarif Biomedical, LLC
Related Party Transactions
Ownership interest held (as a percent)		100.00%
Number of cash payments made | installment		2
Payments to Acquire Businesses, Net of Cash Acquired		$ 250,000
Second payment amount after June 30, 2014		300,000
Maximum possible amount of future payments		$ 250,000,000

SUMMARY OF SIGNIFICANT ACCOUN28

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Related Party Transactions Other Items (Details)	Oct. 23, 2015USD ($)	Oct. 10, 2014USD ($)installmentpaymentshares	Aug. 29, 2014USD ($)shares	Jun. 30, 2014USD ($)	Jun. 17, 2014patent	May 02, 2014USD ($)installmentpayment	May 02, 2013USD ($)	Dec. 31, 2016USD ($)
Clouding IP, LLC | Common Stock | Restricted Stock
Related Party Transactions
Stock issued in acquisition (in shares) | shares			25,000
MedTech | Promissory Notes
Related Party Transactions
Business Acquisition Cash Payments | payment		9
Erich Spangenberg | Marathon Opportunity Agreement
Related Party Transactions
Funding percentage						50.00%
Erich Spangenberg | Patent purchase agreement | Clouding IP, LLC
Related Party Transactions
Payments to Acquire Businesses, Net of Cash Acquired			$ 2,400,000
Cash			$ 1,400,000
Erich Spangenberg | Patent purchase agreement | Clouding IP, LLC | Common Stock | Restricted Stock
Related Party Transactions
Stock issued in acquisition (in shares) | shares			25,000
Erich Spangenberg | Patent purchase agreement | Clouding IP, LLC | Promissory Notes
Related Party Transactions
Promissory note issued			$ 1,000,000
Erich Spangenberg | Interest Sale Agreement | MedTech
Related Party Transactions
Payments to Acquire Businesses, Net of Cash Acquired	$ 100,000	$ 1,000,000
Recovery threshold (as a percent)		200.00%
Ownership interest held (as a percent)		45.00%
Debt extinguishment		$ 654,000
Erich Spangenberg | Interest Sale Agreement | MedTech | Common Stock | Restricted Stock
Related Party Transactions
Restricted shares granted (in shares) | shares		200,000
Erich Spangenberg | Interest Sale Agreement | MedTech | Promissory Notes
Related Party Transactions
Monthly payment obligation		$ 1,000,000
Business Acquisition Cash Payments | installment		9
Selene Communication Technologies, LLC | Merger Agreement
Related Party Transactions
Number of patents | patent					3
OrthoPhoenix and TLIF | Erich Spangenberg | Interest Sale Agreement | MedTech
Related Party Transactions
Percentage of shares (as a percent)		100.00%
MedTech GmbH | Erich Spangenberg | Interest Sale Agreement | MedTech
Related Party Transactions
Percentage of shares (as a percent)		100.00%
Dynamic Advances, LLC
Related Party Transactions
Payments to Acquire Businesses, Net of Cash Acquired							$ 5,225,000	$ 6,653,078
Promissory note issued						$ 2,375,000
Business Acquisition Cash Payments | payment						2
Ownership interest held (as a percent)						100.00%
Dynamic Advances, LLC | Erich Spangenberg | Acquired Intellectual Property
Related Party Transactions
Cash						$ 2,375,000
Business Acquisition Cash Payments | installment						2
Ownership interest held (as a percent)						100.00%
IP Liquidity
Related Party Transactions
Payments to Acquire Businesses, Net of Cash Acquired				$ 2,850,000		$ 5,225,000
Promissory note issued						$ 2,375,000
Business Acquisition Cash Payments | payment						2
Ownership interest held (as a percent)						100.00%
IP Liquidity | Erich Spangenberg | Acquired Intellectual Property
Related Party Transactions
Cash						$ 2,375,000
Business Acquisition Cash Payments | installment						2
Ownership interest held (as a percent)						100.00%

SUMMARY OF SIGNIFICANT ACCOUN29

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value of Financial Instruments, Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value of Financial Instruments
Earnout liability, short-term	$ 81,930	$ 33,646
Earnout liability, long-term	1,400,082	3,281,238
Impairment of intangible assets	11,958,882	5,793,409
Outstanding litigation bonds in Germany	0	$ 1,748,311
Clouding IP, LLC
Fair Value of Financial Instruments
Earnout liability, short-term	81,930
Earnout liability, long-term	1,400,082
Gain on exchange in fair value adjustment	1,832,872
Impairment of intangible assets	$ 3,089,983

SUMMARY OF SIGNIFICANT ACCOUN30

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basic and Diluted Net Earnings (Loss) per Share (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Computation of basic and diluted loss per share
Net loss attributable to Common Shareholders	$ (28,665,024)	$ (16,939,859)
Denominator
Weighted Average Common Shares - Basic	15,178,056	14,208,787
Weighted Average Common Shares - Diluted	15,178,056	14,208,787
Earnings (Loss) per common share:
Earnings (Loss) - Basic	$ (1.89)	$ (1.19)
Earnings (Loss) - Diluted	$ (1.89)	$ (1.19)
Warrants
Computation of basic and diluted loss per share
Anti-dilutive securities excluded from computation of diluted shares outstanding (in shares)	466,078
Options
Computation of basic and diluted loss per share
Anti-dilutive securities excluded from computation of diluted shares outstanding (in shares)	3,516,136
Convertible Notes
Computation of basic and diluted loss per share
Anti-dilutive securities excluded from computation of diluted shares outstanding (in shares)	66,667
Series B preferred stock
Computation of basic and diluted loss per share
Anti-dilutive securities excluded from computation of diluted shares outstanding (in shares)	782,004

SUMMARY OF SIGNIFICANT ACCOUN31

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets, Goodwill and Stock-based Compensation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Intangible Assets
Impairment of intangible assets	$ 11,958,882	$ 5,793,409
Goodwill
Impairment of goodwill	$ 4,336,307	$ 0
Stock-based Compensation
Expected forfeiture rate (as a percent)	2.40%	10.40%
Compensation expenses	$ 44,146	$ 28,663
Liquidity and Capital Resources
Cash and cash equivalents	5,000,000
Working capital	$ (14,900,000)

ACQUISITIONS - Dynamic Advances

ACQUISITIONS - Dynamic Advances (Details)	May 02, 2014USD ($)paymentshares	May 02, 2013USD ($)	Sep. 30, 2014USD ($)	Dec. 31, 2016USD ($)
Dynamic Advances, IP Liquidity and Sarif Biomedical
Acquisitions
Number of purchase agreements	3
Dynamic Advances, LLC
Acquisitions
Ownership interest held (as a percent)	100.00%
Number of cash payments made | payment	2
Consideration paid		$ 5,225,000		$ 6,653,078
Maximum possible amount of future payments	$ 250,000,000
Promissory note issued	2,375,000
Promissory note amount upon late payment	$ 2,850,000
Payment agreement to extend maturity date			$ 249,375
Note term			30 days
Dynamic Advances, LLC | Series B Convertible Preferred Stock
Acquisitions
Preferred stock shares issued | shares	391,000

ACQUISITIONS - IP Liquidity (De

ACQUISITIONS - IP Liquidity (Details) - IP Liquidity	Jun. 30, 2014USD ($)	May 02, 2014USD ($)paymentshares	Sep. 30, 2014USD ($)	Dec. 31, 2016USD ($)
Acquisitions
Ownership Interest Controlling Owners		100.00%
Number of cash payments made | payment		2
Consideration paid	$ 2,850,000	$ 5,225,000
Maximum possible amount of future payments		250,000,000
Promissory note issued		2,375,000
Promissory note amount upon late payment		$ 2,850,000
Payment agreement to extend maturity date			$ 249,375
Note term			30 days
Aggregate purchase price				$ 6,653,078
Series B Convertible Preferred Stock
Acquisitions
Preferred stock shares issued | shares		391,000

ACQUISITIONS - Sarif Biomedical

ACQUISITIONS - Sarif Biomedical (Details) - Sarif Biomedical, LLC	May 02, 2014USD ($)payment	Sep. 30, 2014USD ($)	Dec. 31, 2016USD ($)
Acquisitions
Ownership Interest Controlling Owners	100.00%
Number of cash payments made | payment	2
Consideration paid	$ 550,000		$ 552,024
Maximum possible amount of future payments	250,000,000
Promissory note issued	250,000
Promissory note amount upon late payment	$ 300,000
Payment agreement to extend maturity date		$ 26,250
Note term		30 days

ACQUISITIONS - Dynamic Advanc35

ACQUISITIONS - Dynamic Advances, IP Liquidity and Sarif Biomedical (Details) - Dynamic Advances, IP Liquidity and Sarif Biomedical	Nov. 02, 2014	May 02, 2014USD ($)
Pay Proceeds Agreement Member | Maximum
Acquisitions
Recovery of licensing or enforcement activities on patents		$ 250,000,000
Pay Proceeds Agreement Member | $10,000,000 or less | Maximum
Acquisitions
Recovery of licensing or enforcement activities on patents		$ 10,000,000
Pay Proceeds Agreement Member | $10,000,000 to $40,000,000
Acquisitions
Net recovery proceeds due to sellers (as a percent)		40.00%
Pay Proceeds Agreement Member | $10,000,000 to $40,000,000 | Minimum
Acquisitions
Recovery of licensing or enforcement activities on patents		$ 10,000,000
Pay Proceeds Agreement Member | $10,000,000 to $40,000,000 | Maximum
Acquisitions
Recovery of licensing or enforcement activities on patents		$ 40,000,000
Pay Proceeds Agreement Member | Over $40,000,000
Acquisitions
Net recovery proceeds due to sellers (as a percent)		50.00%
Pay Proceeds Agreement Member | Over $40,000,000 | Minimum
Acquisitions
Recovery of licensing or enforcement activities on patents		$ 40,000,000
Registration Rights Agreement Member | Maximum
Acquisitions
Registration statements required to be filed (in statements)	3
Filing period	60 days
Series B Convertible Preferred Stock | Registration Rights Agreement Member | Minimum
Acquisitions
Percentage of registrable shares covered in resale registration statement (as a percent)	10.00%

ACQUISITIONS - Clouding Corp (D

ACQUISITIONS - Clouding Corp (Details) - USD ($)	Aug. 29, 2014	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2014
Acquisitions
Earnout liability, short-term		$ 81,930	$ 33,646
Earnout liability, long-term		1,400,082	3,281,238
Impairment of intangible assets		11,958,882	5,793,409
Allocation of net purchase price to assets acquired and liabilities assumed
Goodwill		222,843	$ 4,482,845
Clouding Corp
Acquisitions
Earnout liability, short-term		81,930
Earnout liability, long-term		1,400,082
Gain on exchange in fair value adjustment		1,832,872
Impairment of intangible assets		$ 3,089,983
Allocation of net purchase price to assets acquired and liabilities assumed
Intangible assets	$ 14,500,000
Goodwill	1,296,000
Net purchase price	15,796,000
Total consideration paid of the following:
Cash	1,400,000
Promissory Note	1,000,000
Common Stock	281,000
Earn-Out Liability	13,115,000
Net purchase price	15,796,000
Clouding Corp | Patent purchase agreement
Acquisitions
Consideration paid	1,400,000
Promissory note issued	$ 1,000,000
Restricted shares granted (in shares)	50,000
Fair value of restricted common stock	$ 281,000
Net recovery proceeds due to sellers (as a percent)	50.00%
Net revenues	$ 4,000,000
Fair value on grant date (in dollars per share)	$ 5.62
Stock issued in acquisition, value	$ 281,000
Earnout liability, short-term				$ 2,148,000

ACQUISITIONS - MedTech Group (D

ACQUISITIONS - MedTech Group (Details) - USD ($)	Oct. 13, 2014	Dec. 31, 2016	Dec. 31, 2015
Allocation of net purchase price to assets acquired and liabilities assumed
Goodwill		$ 222,843	$ 4,482,845
Medtech Group
Allocation of net purchase price to assets acquired and liabilities assumed
Intangible assets	$ 12,800,000
Goodwill	2,700,000
Net purchase price	$ 15,500,000
Medtech Group | Interest Sale Agreement
Acquisitions
Ownership interest held (as a percent)	100.00%
Consideration paid	$ 1,000,000
Promissory note issued	9,000,000
Outstanding amount after renegotiation	6,250,000
Debt reduction available upon early repayment	$ 750,000

ACQUISITIONS - Bridgestone Amer

ACQUISITIONS - Bridgestone Americas Tire Operations (Details)	Nov. 15, 2015USD ($)	Apr. 23, 2015USD ($)patent	Apr. 30, 2015patent	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Acquisitions
Acquisition of patents				$ 3,681,358
Patent impairment				$ 11,958,882	$ 5,793,409
Bridgestone Americas Tire Operations, LLC
Acquisitions
Number of patents | patent			43
Patent purchase agreement | Bridgestone Americas Tire Operations, LLC
Acquisitions
Fair value of patent assets acquired		$ 11,000,000
Advisory Services Agreement | Bridgestone Americas Tire Operations, LLC
Acquisitions
Debt extinguishment	$ 10,000,000
Patent impairment	2,451,550
Advisory Services Agreement | Bridgestone Americas Tire Operations, LLC | Adjustment
Acquisitions
Fair value of patent assets acquired	$ (9,068,504)
IP Liquidity | Patent purchase agreement | Bridgestone Americas Tire Operations, LLC
Acquisitions
Number of patents | patent		43
Acquisition of patents		$ 3,500,000
Number of installments (in payments)		2
Maximum possible amount of future payments		$ 7,500,000

ACQUISITIONS - Additional Acqui

ACQUISITIONS - Additional Acquisitions (Details)	Sep. 13, 2016USD ($)patent	Aug. 11, 2016USD ($)patent	Aug. 03, 2016USD ($)patent	Jul. 05, 2016USD ($)patent	Jun. 27, 2016USD ($)patent
Munitech | Patent purchase agreement | Siemens
Acquisitions
Number of patents | patent					221
Consideration paid					$ 1,150,000
Number of installments (in payments)					2
Munitech | Patent purchase agreement | Siemens | Payment due on December 31, 2016
Acquisitions
Consideration paid					$ 1,000,000
Munitech | Patent purchase agreement | Siemens | Payment due on September 30, 2017
Acquisitions
Consideration paid					$ 750,000
Magnus | Patent purchase agreement | Siemens
Acquisitions
Number of patents | patent				86
Consideration paid				$ 250,000
Traverse | Patent purchase agreement | CPT IP Holdings
Acquisitions
Number of patents | patent			12
Consideration paid			$ 1,300,000
PG Tech | Patent Funding and Exclusive License Agreement
Acquisitions
Number of patents | patent		10,000
Consideration paid		$ 1,000,000
Net licensing revenue (as a percent)		50.00%
PG Tech | Patent Funding and Exclusive License Agreement | Payment due on December 31, 2016
Acquisitions
Consideration paid		$ 1,000,000
PG Tech | Patent Funding and Exclusive License Agreement | Payment start on April 1, 2017
Acquisitions
Consideration paid		$ 250,000
Motheye | Patent purchase agreement | Cirrex
Acquisitions
Number of patents | patent	1
Consideration paid	$ 0

INTANGIBLE ASSETS, NET (Details

INTANGIBLE ASSETS, NET (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Intangible Assets	$ 30,214,116	$ 41,014,992
Accumulated Amortization & Impairment	(17,899,488)	(15,557,353)
Intangible assets, net	12,314,628	25,457,639
Impairment of intangible assets	11,958,882	5,793,409
Fair value of intangible assets	$ 0
Minimum
Weighted average useful life, intangibles	1 year
Maximum
Weighted average useful life, intangibles	13 years
Patents
Intangible assets capitalized	$ 6,450,000	252,946
Impairment of intangible assets	$ 11,958,882	$ 5,793,409

INTANGIBLE ASSETS, NET - Future

INTANGIBLE ASSETS, NET - Future amortization of current intangible assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
INTANGIBLE ASSETS, NET
Amortization expense	$ 7,453,004	$ 10,825,164
Future amortization of intangible assets, net
2,017	2,317,258
2,018	1,885,345
2,019	1,801,910
2,020	1,492,503
2,021	1,324,119
2022 and thereafter	3,493,493
Total	$ 12,314,628

INTANGIBLE ASSETS, NET - Intang

INTANGIBLE ASSETS, NET - Intangible Asset Acquisitions (Details) - patent	1 Months Ended
	Aug. 31, 2016	Jun. 30, 2016	Apr. 30, 2015
Bridgestone Americas Tire Operations, LLC
Number of patents			43
Siemens
Number of patents		2
Minimum | Patent Funding and Exclusive License Agreement
Number of patents	10,000

STOCKHOLDERS' EQUITY - Summary

STOCKHOLDERS' EQUITY - Summary of Stock and Preferred Stock (Details)	Oct. 20, 2015shares	Oct. 06, 2014shares	May 02, 2014USD ($)shares	Sep. 30, 2015shares	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)shares	Sep. 17, 2014paymentshares	Dec. 07, 2011$ / sharesshares
Stockholders' Equity
Common stock, shares authorized					200,000,000	200,000,000
Common stock, par value | $ / shares					$ 0.0001	$ 0.0001
Preferred stock, shares authorized					100,000,000
Preferred stock, par value | $ / shares					$ 0.0001
Preferred Stock
Value of stock issued for services | $					$ 136,000	$ 900,500
Series B Convertible Preferred Stock
Preferred Stock
Preferred Stock converted to Common Stock					1
Series B Convertible Preferred Stock | Consulting and services agreement | GRQ
Preferred Stock
Preferred Stock converted to Common Stock	16,666			183,330		199,996
Preferred stock consideration (in shares)								200,000
Vest upon execution (percentage)								50.00%
Vest after execution (percentage)								50.00%
Number of monthly installments | payment								6
Stock issued for services (in shares)						50,000	150,000
Value of stock issued for services | $						$ 345,334	$ 1,103,581
Series B Convertible Preferred Stock | IP Liquidity Ventures, LLC, Dynamic Advances, LLC and Sarif Biomedical, LLC | Private Placement
Preferred Stock
Stock issued in acquisition (in shares)			782,000
Stock issued in acquisition, value | $			$ 2,807,380
Series B Convertible Preferred Stock, Tranche One | Consulting and services agreement | GRQ
Preferred Stock
Stock issued for services (in shares)		100,000
American Strategic Minerals Corporation
Stockholders' Equity
Common stock, shares authorized									200,000,000
Common stock, par value | $ / shares									$ 0.0001
Preferred stock, shares authorized									100,000,000
Preferred stock, par value | $ / shares									$ 0.0001

STOCKHOLDERS' EQUITY - Common S

STOCKHOLDERS' EQUITY - Common Stock (Details)

Dec. 31, 2016shares

Dec. 09, 2016USD ($)$ / sharesshares

May 11, 2016USD ($)$ / sharesshares

Dec. 09, 2015USD ($)$ / sharesshares

Nov. 04, 2015USD ($)$ / sharesshares

Oct. 29, 2015USD ($)$ / sharesshares

Oct. 20, 2015shares

Sep. 21, 2015USD ($)$ / sharesshares

Mar. 13, 2015shares

Jan. 29, 2015shares

Sep. 30, 2015shares

Jun. 30, 2015shares

Dec. 31, 2016USD ($)shares

Dec. 31, 2015USD ($)shares

Dec. 31, 2014USD ($)shares

Stockholders' Equity

Value of stock issued for services | $

$ 136,000

$ 900,500

Series B Convertible Preferred Stock

Stockholders' Equity

Preferred Stock converted to Common Stock

1

Series B Convertible Preferred Stock | Consulting and services agreement | GRQ

Stockholders' Equity

Preferred Stock converted to Common Stock

16,666

183,330

199,996

Stock issued for services (in shares)

50,000

150,000

Value of stock issued for services | $

$ 345,334

$ 1,103,581

Number of shares of common stock issued upon conversion of preferred stock

2

2

Common Stock

Stockholders' Equity

Shares issued

3,481,997

Exercise stock options (in shares)

33,968

Stock issued for services (in shares)

180,000

210,000

Value of stock issued for services | $

$ 18

$ 21

Common Stock | Former Consultant

Stockholders' Equity

Shares issued

60,000

Common Stock | Dominion Harbor Group LLC

Stockholders' Equity

Shares issued

125,000

300,000

Price per share | $ / shares

$ 1.71

Value of stock issued for services | $

$ 513,000

Common Stock | Fortress Purchase Agreement | DBD Credit Funding, LLC

Stockholders' Equity

Shares issued

134,409

Number of warrants to purchase common stock

100,000

Common Stock | Consulting and services agreement | GRQ

Stockholders' Equity

Number of shares of common stock issued upon conversion of preferred stock

16,666

199,996

Common Stock | Consulting and services agreement | Alex Partners, LLC and Del Mar Consulting Group, Inc

Stockholders' Equity

Stock issued for services (in shares)

150,000

Price per share | $ / shares

$ 2.23

Value of stock issued for services | $

$ 334,500

Common Stock | Consulting and services agreement | Cooper Law Firm., LLC

Stockholders' Equity

Stock issued for services (in shares)

80,000

Price per share | $ / shares

$ 1.70

Value of stock issued for services | $

$ 136,000

Common Stock | Settlement and license agreement | Dominion Harbor Group LLC

Stockholders' Equity

Stock issued for services (in shares)

300,000

Price per share | $ / shares

$ 1.71

Value of stock issued for services | $

$ 513,000

Common Stock | Securities Purchase Agreement

Stockholders' Equity

Shares issued

3,481,997

Price per share | $ / shares

$ 1.50

Number of warrants to purchase common stock

0

0

Purchase price per warrant | $ / shares

0.01

Warrants issued, total value | $

$ 17,019.95

Common Stock | Securities Purchase Agreement | Institutional investors

Stockholders' Equity

Shares issued

3,481,997

Price per share | $ / shares

$ 1.50

Number of warrants to purchase common stock

1,740,995

Purchase price per warrant | $ / shares

0.01

Common Stock | Private Placement | Melechdavid, Inc

Stockholders' Equity

Stock issued for services (in shares)

100,000

Price per share | $ / shares

$ 1.61

Value of stock issued for services | $

$ 161,000

Common Stock | Private Placement | Cooper Law Firm., LLC

Stockholders' Equity

Stock issued for services (in shares)

80,000

Price per share | $ / shares

$ 1.70

Value of stock issued for services | $

$ 136,000

STOCKHOLDERS' EQUITY - Common45

STOCKHOLDERS' EQUITY - Common Stock Warrants (Details) - Warrants - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Common Stock Warrants
Stock compensation expense	$ 0	$ 3,465
Unrecognized compensation expense, warrants	$ 0
Number of Warrants
Warrants, beginning balance	2,021,308
Granted	174,100
Cancelled	1,705,996
Exercised	23,334
Warrants, ending balance	466,078	2,021,308
Warrants Exercisable	466,078
Warrants, Weighted Average Exercise Price
Weighted Average Exercise Price, Beginning Balance	$ 4.27
Weighted Average Exercise Price, Granted	$ 1.73
Weighted Average Exercise Price, Cancelled	3.22
Weighted Average Exercise Price, Exercised	$ 2
Weighted Average Exercise Price, Ending Balance	3.79	$ 4.27
Weighted average fair value of warrants granted during the period	$ 0.37
Weighted Average Remaining Life
Weighted Average Remaining Life	3 years 3 months	10 months 13 days
Weighted Average Remaining Life, Granted	4 years 11 months 9 days

STOCKHOLDERS' EQUITY - Common46

STOCKHOLDERS' EQUITY - Common Stock Options (Details)

Oct. 13, 2016period$ / sharesshares

Jul. 01, 2016installment$ / sharesshares

May 20, 2016installment$ / sharesshares

May 10, 2016installment$ / sharesshares

Oct. 14, 2015periodinstallment$ / sharesshares

Sep. 16, 2015period$ / sharesshares

Apr. 07, 2015USD ($)period$ / sharesshares

Mar. 18, 2015installment$ / sharesshares

Mar. 06, 2015installment$ / sharesshares

Feb. 05, 2015period$ / sharesshares

May 15, 2014USD ($)period$ / sharesshares

Apr. 15, 2014period$ / sharesshares

Nov. 18, 2013USD ($)installment$ / sharesshares

Jun. 19, 2013period$ / sharesshares

Jun. 11, 2013perioddirector$ / sharesshares

Mar. 01, 2013period$ / sharesshares

Nov. 14, 2012USD ($)period$ / sharesshares

Dec. 31, 2016USD ($)$ / sharesshares

Dec. 31, 2015USD ($)

Value of stock issued for services | $

$ 136,000

$ 900,500

Options

Option term

8 years 10 months 24 days

Granted | shares

780,000

Option price (in dollars per share)

$ 2.13

Fair value of options at grant date (in dollars per share)

$ 0.89

Cancelled | shares

373,856

Unrecognized compensation expense, options | $

$ 1,371,382

Options | Chief Executive Officer And Two Directors

Option term

5 years

Granted | shares

353,846

Option price (in dollars per share)

$ 2.625

Number of monthly installments | period

24

Number of directors | director

2

Options | Board of Directors Member

Option term

5 years

5 years

5 years

Granted | shares

20,000

20,000

20,000

Option price (in dollars per share)

$ 6.61

$ 7.37

$ 3.295

Number of monthly installments

12

12

12

Expected term

3 years

3 years

3 years

Volatility

41.00%

41.00%

51.00%

Discount rate

0.92%

1.16%

0.84%

Options | Independent Board Members

Option term

10 years

10 years

Granted | shares

80,000

80,000

Option price (in dollars per share)

$ 2.41

$ 2.03

Number of monthly installments | period

12

Number of annual installments | period

12

Expected term

5 years 6 months

5 years 6 months

Volatility

46.00%

47.00%

Discount rate

1.21%

1.72%

Options | Consultants

Option term

10 years

5 years

Granted | shares

70,000

25,000

Option price (in dollars per share)

$ 1.86

$ 6.80

Number of monthly installments

24

24

Options | Employees

Option term

10 years

Option price (in dollars per share)

$ 1.86

Number of monthly installments | period

24

Expected term

6 years 6 months

Volatility

49.00%

Discount rate

1.57%

Granted | shares

385,000

Options | Croxall Employment Agreement | Chief Executive Officer

Employment Agreement Term

2 years

Option term

10 years

Granted | shares

307,692

Option price (in dollars per share)

$ 3.25

Number of monthly installments | period

24

Fair value of options at grant date (in dollars per share)

$ 3.12

Aggregate fair value of options at grant date | $

$ 968,600

Share Price

$ 3.25

Expected term

5 years

Volatility

192.00%

Risk free interest rate

0.61%

Options | Croxall Employment Agreement, Amendment One | Chief Executive Officer

Option term

10 years

Granted | shares

200,000

Option price (in dollars per share)

$ 2.965

Number of monthly installments | installment

24

Value of stock issued for services | $

$ 442,692

Expected term

5 years

Volatility

100.00%

Risk free interest rate

1.33%

Options | Crawford Employment Agreement | Chief Operating Officer

Employment Agreement Term

2 years

Option term

5 years

Granted | shares

76,924

76,924

Option price (in dollars per share)

$ 2.47

$ 5.525

Number of monthly installments | period

24

24

Options | Knuettel Agreement | Chief Financial Officer

Option term

10 years

Granted | shares

290,000

Option price (in dollars per share)

$ 4.165

Number of monthly installments | period

36

Aggregate fair value of options at grant date | $

$ 4.165

Expected term

6 years 6 months

Volatility

63.00%

Discount rate

1.97%

Options | Chernicoff Consulting Agreement | Board of Directors Member

Option term

10 years

Granted | shares

280,000

Option price (in dollars per share)

$ 6.76

Number of monthly installments | period

12

Percent vested upon execution of the GRQ Consulting Agreement

25.00%

Percent vested after execution

2.083%

Monthly retainer | $

$ 27,000

Options | Spangenberg Agreement | Director Of Acquisitions, Licensing And Strategy

Option term

10 years

Granted | shares

500,000

Option price (in dollars per share)

$ 1.87

Number of monthly installments | installment

24

Expected term

5 years 9 months

Volatility

47.00%

Discount rate

1.32%

Options | Grubbs Agreement | Analyst

Option term

10 years

Granted | shares

50,000

Option price (in dollars per share)

$ 2.25

Number of monthly installments | installment

36

Expected term

6 years 6 months

Volatility

47.00%

Discount rate

1.88%

Options | Liu Agreement | CTO

Option term

10 years

Granted | shares

150,000

Option price (in dollars per share)

$ 2.79

Number of monthly installments | installment

36

Expected term

6 years 6 months

Volatility

47.00%

Discount rate

1.20%

Time Based Shares | Chernicoff Consulting Agreement | Board of Directors Member

Granted | shares

70,000

Time Based Shares | Chernicoff Consulting Agreement | Minimum | Board of Directors Member

Option price (in dollars per share)

$ 8.99

Performance Shares | Chernicoff Consulting Agreement | Board of Directors Member

Granted | shares

70,000

Performance Shares | Chernicoff Consulting Agreement | Minimum | Board of Directors Member

Option price (in dollars per share)

$ 10.14

STOCKHOLDERS' EQUITY - Changes

STOCKHOLDERS' EQUITY - Changes in Stock Options (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Intrinsic value of stock options outstanding	$ 0
Options
Number of Options
Options outstanding, beginning	3,383,267
Granted	780,000
Cancelled	373,856
Forfeited		273,275
Options outstanding, ending	3,516,316	3,383,267
Options Exercisable	2,574,703
Options expected to vest	941,433
Weighted Average Exercise Price
Weighted average exercise price, beginning balance	$ 4.25
Granted	2.13
Cancelled	5.80
Forfeited		$ 5.24
Weighted average exercise price, ending balance	4.46	$ 4.25
Options Exercisable	4.67
Options expected to vest	3.65
Weighted average fair value of options granted during the period	$ 0.89
Weighted Average Remaining Life
Weighted Average Remaining Life	6 years 9 months 18 days	7 years 1 month 10 days
Weighted Average Remaining Life, Granted	9 years 5 months 9 days
Weighted Average Remaining Life, Options Exercisable	6 years 11 days
Weighted Average Remaining Life, Options expected to vest	8 years 10 months 24 days

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Debt and Obligations (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Senior Secured Notes
Debt and obligations
Long-term debt, gross	$ 15,620,759	$ 20,513,892
Less: debt discount	(1,425,167)	(2,150,263)
Total debt	$ 14,195,592	$ 18,363,629
Senior Secured Notes | LIBOR
Debt and obligations
Spread (as a percent)	9.75%	9.75%
Convertible Notes
Debt and obligations
Long-term debt, gross	$ 500,000	$ 500,000
Less: debt discount		(5,849)
Total debt	$ 500,000	$ 494,151
Interest rate (as a percent)	11.00%	11.00%
Promissory Notes
Debt and obligations
Short-term payable	$ 103,000
iRunway
Debt and obligations
Short-term payable	$ 191,697	$ 494,244
Late Fee (as a percent)	1.50%
Monthly interest rate	1.50%
Sichenzia
Debt and obligations
Interest rate (as a percent)	0.00%
Sichenzia | Promissory Notes
Debt and obligations
Short-term payable		45,000
Medtech | Promissory Notes
Debt and obligations
Short-term payable		2,953,779
Interest rate (as a percent)	28.00%
Dominion Harbor Group LLC
Debt and obligations
Outstanding amount	$ 125,000	200,000
AFCO Financing
Debt and obligations
Short-term payable		$ 56,258
Interest rate (as a percent)	4.82%
Siemens Purchase Payment
Debt and obligations
Purchase obligation for patents	$ 1,672,924
Oil & Gas Purchase Payment
Debt and obligations
Purchase obligation for patents	944,296
3D Nano Purchase Payment
Debt and obligations
Purchase obligation	$ 100,000

COMMITMENTS AND CONTINGENCIES49

COMMITMENTS AND CONTINGENCIES - Schedule of Notes Payable (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES
Total	$ 17,832,509	$ 22,607,061
Less: current portion	(13,162,007)	(10,383,177)
Total, net of current portion	$ 4,670,502	$ 12,223,884

COMMITMENTS AND CONTINGENCIES50

COMMITMENTS AND CONTINGENCIES - Senior Secured Term Notes (Details) - USD ($)	Feb. 12, 2015	Jan. 29, 2015	Dec. 31, 2016	Dec. 31, 2015
Debt
Warrant issued in conjunction with debt financing			$ 50	$ 318,679
Fortress
Debt
Warrant term		5 years
Warrant to purchase (in shares)		100,000
Exercise price (in dollars per share)		$ 7.44
Issue common stock (in shares)		134,409
Additional amount	$ 5,000,000
Fortress | Warrants
Debt
Common Stock Percentage to trigger warrant exercise		4.99
Warrant issued in conjunction with debt financing		$ 318,679
Senior Secured Notes | Fortress
Debt
Principal amount of debt		15,000,000
Monetization net revenues		$ 15,000,000
Unamortized discount			$ 1,425,167	$ 2,150,263
Initial Note | Fortress
Debt
Note term		42 months
Interest rate on paid-in-kind interest (as a percent)		2.75%
LIBOR | Initial Note | Fortress
Debt
Interest rate		LIBOR
Spread (as a percent)		9.75%

COMMITMENTS AND CONTINGENCIES51

COMMITMENTS AND CONTINGENCIES - Senior Secured Term Note Amendment (Details) - DBD Credit Funding, LLC - USD ($)	Jan. 10, 2017	Dec. 31, 2017	Jun. 30, 2017	Jan. 29, 2015
Warrants
Debt
Common Stock Percentage to trigger warrant exercise	4.99
Fortress Purchase Agreement, Amended And Restated
Debt
Number of warrants to purchase common stock	187,500
Increase in revenue stream basis	$ 1,225,000
Debt covenant to maintain minimum liquidity in unrestricted cash and cash equivalents	$ 1,250,000
Promissory Notes
Debt
Structuring fees (as a percent)	2.00%
Promissory Notes | Fortress Purchase Agreement
Debt
Principal amount of debt				$ 20,000,000
Outstanding amount				15,620,759
Cash collateral account				$ 4,500,000
Number of warrants to purchase common stock				100,000
Promissory Notes | Fortress Purchase Agreement, Amended And Restated
Debt
Principal amount of debt	$ 4,500,000
Increase in rate of interest (as a percent)	2.00%
Interest rate on paid-in-kind interest (as a percent)	2.75%
Promissory Notes | Fortress Purchase Agreement, Amended And Restated | LIBOR
Debt
Spread (as a percent)	9.75%
Additional Notes | Maximum
Debt
Principal amount of debt	$ 7,500,000
Additional Notes | Fortress Purchase Agreement, Amended And Restated
Debt
Structuring fees (as a percent)	2.00%
Additional Notes | Fortress Purchase Agreement, Amended And Restated | Maximum
Debt
Principal amount of debt		$ 3,750,000	$ 3,750,000

COMMITMENTS AND CONTINGENCIES52

COMMITMENTS AND CONTINGENCIES - Convertible Note (Details) - Convertible Notes	Oct. 16, 2014USD ($)item$ / sharesshares	Dec. 31, 2016	Dec. 31, 2015
Debt
Issuance of Convertible Debt | $	$ 5,550,000
Warrant term	2 years
Warrant to purchase (in shares) | shares	129,499
Conversion price (in dollars per share)	$ 7.50
Exercise price (in dollars per share)	$ 8.25
Interest rate (as a percent)		11.00%	11.00%
Trading days for conversion feature	4 days
Trading days	8 days
Number of convertible note holder to whom repayment happened | item	1
Minimum
Debt
Minimum common stock trade price for convertible debt conversion	$ 27

COMMITMENTS AND CONTINGENCIES53

COMMITMENTS AND CONTINGENCIES - iRunway, Note Payable, Sichenzia Trade Payable and Medtech Note Payable (Details)	12 Months Ended
	Dec. 31, 2016USD ($)item	Dec. 31, 2015USD ($)
Officer
Short-term payable
Interest rate (as a percent)	0.00%
Short-term payable	$ 103,000
iRunway
Short-term payable
Number of vendors for whom invoices converted to short term payable | item	1
Short-term payable	$ 191,697	$ 494,244
Sichenzia
Short-term payable
Interest rate (as a percent)	0.00%
Medtech | Maximum
Short-term payable
Interest rate (as a percent)	28.00%

COMMITMENTS AND CONTINGENCIES54

COMMITMENTS AND CONTINGENCIES - AFCO Financing and Siemens Purchase Payment (Details)	12 Months Ended
	Dec. 31, 2016USD ($)item
Siemens Purchase Payment
Siemens Purchase Payment
Interest rate (as a percent)	0.00%
Purchase obligation for patents | $	$ 1,672,924
Directors and Officers
AFCO Financing
Number of agreed to make monthly payments | item	9
Interest rate (as a percent)	4.82%

COMMITMENTS AND CONTINGENCIES55

COMMITMENTS AND CONTINGENCIES - Dominion Harbor Settlement Note, Oil & Gas Purchase Payment and 3D Nano Purchase Payment (Details)	Dec. 31, 2016USD ($)shares	Oct. 29, 2015USD ($)item$ / sharesshares	Dec. 31, 2016USD ($)itemshares	Dec. 31, 2015USD ($)
Dominion Harbor Settlement Note
Value of stock issued for services			$ 136,000	$ 900,500
Oil & Gas Purchase Payment
Oil & Gas Purchase Payment
Interest rate (as a percent)			0.00%
Purchase obligation for patents	$ 944,296		$ 944,296
3D Nano Purchase Payment
Interest rate (as a percent)			0.00%
3D Nano Purchase Payment
Oil & Gas Purchase Payment
Interest rate (as a percent)			0.00%
3D Nano Purchase Payment
Number of monthly payments to make under purchase agreement | item			2
Monthly agreed amount under purchase agreement			$ 100,000
Interest rate (as a percent)			0.00%
Purchase obligation	100,000		$ 100,000
Common Stock
Dominion Harbor Settlement Note
Issue common stock (in shares) | shares			3,481,997
Value of stock issued for services			$ 18	21
Dominion Harbor Group LLC
Dominion Harbor Settlement Note
Number of agreed monthly payments to make under settlement agreement | item		8
Monthly agreed amount		$ 25,000
Outstanding amount	$ 125,000		$ 125,000	$ 200,000
Dominion Harbor Group LLC | Common Stock
Dominion Harbor Settlement Note
Issue common stock (in shares) | shares	125,000	300,000
Shares issued, value per share | $ / shares		$ 1.71
Value of stock issued for services		$ 513,000

COMMITMENTS AND CONTINGENCIES56

COMMITMENTS AND CONTINGENCIES - Future Minimum Principal Payments (Details) - Senior and Junior Debt	Dec. 31, 2016USD ($)
Debt
2,017	$ 14,014,411
2,018	5,243,265
Total debt	$ 19,257,676

COMMITMENTS AND CONTINGENCIES57

COMMITMENTS AND CONTINGENCIES - Office Lease and Legal Proceedings (Details)	May 01, 2014USD ($)	Dec. 31, 2016USD ($)lawsuit
Lease term	7 years
Security deposit	$ 7,564
Rent payment grace period	5 months
Lease termination option available	42nd month of the lease
Minimum future lease payments, net of rent abatement
2,017		$ 71,288
2,018		74,540
2,019		77,872
2,020		81,336
2,021		27,504
Total		$ 332,540
Period of notice for cancellation		30 days
District of Delaware
Legal Proceedings
Number of lawsuits | lawsuit		5
Central District of California
Legal Proceedings
Number of lawsuits | lawsuit		1
Eastern District of Michigan
Legal Proceedings
Number of lawsuits | lawsuit		1

INCOME TAXES - Current and defe

INCOME TAXES - Current and deferred provision (benefit) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Taxes [Line Items]
Net loss	$ (28,828,872)	$ (16,939,859)
Current:
Federal	53,634	(28,000)
State	101,969	48,188
Foreign	4,077
Total	159,680	20,188
Deferred:
Federal	10,182,479	(6,046,674)
State	1,996,064	(1,171,260)
Foreign	(821,416)	(958,702)
Total	11,357,127	(8,176,636)
Total provision (benefit)	11,516,807	(8,156,448)
US
Income Taxes [Line Items]
Net loss	(21,151,022)	(15,246,302)
Foreign
Income Taxes [Line Items]
Net loss	$ (7,677,850)	$ (1,693,557)

INCOME TAXES - Effective tax ra

INCOME TAXES - Effective tax rate and statutory federal rate (in dollars) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of effective tax rate and statutory federal rate (in dollars)
Tax benefit computed at "expected" statutory rate	$ (6,018,384)	$ (8,533,296)
State income taxes, net of benefit	(406,978)	(818,432)
Permanent differences :
Stock based compensation and consulting	525,774	738,904
Transaction Cost		208,481
Other permanent differences	(345,981)	247,895
Foreign rate Differential	350,180
Change in valuation allowance	17,412,196
Total provision (benefit)	$ 11,516,807	$ (8,156,448)

INCOME TAXES - Effective tax 60

INCOME TAXES - Effective tax rate and statutory federal rate (in percent) (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of effective tax rate and statutory federal rate (as a percent)
Computed "expected" tax expense (benefit)	34.00%	34.00%
State income taxes	2.30%	3.26%
Permanent differences	(2.97%)	(4.75%)
Change in valuation allowance	(98.37%)
Effective tax rate	65.04%	32.51%

INCOME TAXES - Deferred tax ass

INCOME TAXES - Deferred tax assets (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Total deferred tax assets	$ 17,412,196	$ 12,437,741
Total deferred tax liabilities		1,044,997
Less: valuation allowance	$ (17,412,196)
Net deferred tax asset		$ 11,392,744

INCOME TAXES - Deferred tax a62

INCOME TAXES - Deferred tax assets and deferred tax liabilities (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deferred tax asset and liability
Accruals	$ 89,649	$ 95,356
Fixed Assets	(6,968)	(8,634)
Intangible Assets	7,005,648	1,094,758
State Taxes		19,961
Other	1,839,980	1,490,489
Charitable Contributions	4,410
Net Operating Loss	8,425,843	8,700,814
AMT Credit	53,634
Valuation Allowance	$ (17,412,196)
Net deferred tax asset		$ 11,392,744

INCOME TAXES - Net operating lo

INCOME TAXES - Net operating loss carryforward (Details) $ in Millions	Dec. 31, 2016USD ($)
INCOME TAXES
Net operating loss carryforward, federal	$ 18
Net operating loss carryforward, state	$ 12.9

SUBSEQUENT EVENTS - Amended and

SUBSEQUENT EVENTS - Amended and Restated Revenue Sharing and Securities Purchase and Sales Agreement (Details)	Mar. 15, 2017employee	Jan. 31, 2017USD ($)shares	Jan. 27, 2017shares	Jan. 10, 2017USD ($)shares	Dec. 31, 2016USD ($)shares
SUBSEQUENT EVENTS
Proceeds from sales of stock | $					$ 4,654,130
Common Stock
SUBSEQUENT EVENTS
Shares issued					3,481,997
DBD Credit Funding, LLC | Fortress Purchase Agreement, Amended And Restated
SUBSEQUENT EVENTS
Number of warrants to purchase common stock				187,500
Subsequent Events
SUBSEQUENT EVENTS
Number of employees terminated | employee	4
Subsequent Events | DBD Credit Funding, LLC | Fortress Purchase Agreement, Amended And Restated | Common Stock
SUBSEQUENT EVENTS
Number of warrants to purchase common stock				100,000
Subsequent Events | Northland | Sales Agreement | At The Market Offering | Common Stock
SUBSEQUENT EVENTS
Maximum Number of Shares authorized to sale			750,000
Shares issued		750,000
Proceeds from sales of stock | $		$ 1,301,923
Subsequent Events | Promissory Notes | DBD Credit Funding, LLC | Fortress Purchase Agreement, Amended And Restated
SUBSEQUENT EVENTS
Principal amount of debt | $				$ 20,000,000
Outstanding amount | $				$ 20,131,158
Amortization period				30 months
Subsequent Events | 3D Nano
SUBSEQUENT EVENTS
Number of employees terminated | employee	6