Globe Photos (GBPT) 10-Q 13 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 06, 2019
Document And Entity Information
Entity Registrant Name	Globe Photos, Inc.
Entity Central Index Key	0001527844
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		8,588,679
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019
Entity Emerging Growth Company	true
Entity Small Business	true
Entity Ex Transition Period	false
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	DE
Entity File Number	000-55370

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Current Assets
Cash	$ 272,842	$ 304,267
Accounts receivable, net	434,908	559,255
Prepaid expenses	45,574	21,513
Total Current Assets	753,324	885,035
Right of use asset	154,347	0
Property and equipment, net	5,096,282	5,533,680
Security deposit	19,528	11,306
Intangible Assets, net	15,054,453	15,793,346
Total Assets	21,077,934	22,223,367
Current Liabilities
Accounts payable and accrued liabilities	3,041,804	2,462,563
Contingent purchase consideration	2,500,000	2,500,000
Payable to Photo File, Inc	631,634	686,943
Payable to Globe Photos, Inc.	10,000	10,000
Due to related parties	284,455	287,455
Lease liability	69,808	0
Notes payable - related parties	628,195	635,675
Notes payable - net of debt discount	185,000	185,000
Loans payable, net of unamortized discounts	486,338	481,784
Convertible Notes, net of debt discount and issuance costs	3,933,100	1,655,700
Total Current Liabilities	11,770,334	8,905,120
Contingent purchase consideration	3,779,000	3,779,000
Lease liability - long term	109,010	0
Total Long-term Liabilities	3,888,010	3,779,000
Total Liabilities	15,658,344	12,684,120
Stockholders' Equity
Preferred stock, $0.0001 par value, 50,000,000 shares authorized; none issued and outstanding at June 30, 2019 and December 31, 2018.	0	0
Common stock par value $0.0001: 450,000,000 shares authorized; 8,576,179 and 8,161,679 issued and outstanding as of June 30, 2019 and December 31, 2018.	857	816
Additional paid in capital	13,202,328	10,145,902
Accumulated deficit	(11,011,785)	(4,016,630)
Stockholders' equity attributable to Globe Photo, Inc.	2,191,400	6,130,088
Non controlling interest	3,228,190	3,409,159
Stockholders' Equity	5,419,590	9,539,247
Total Liabilities and Stockholders' Equity	$ 21,077,934	$ 22,223,367

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	450,000,000	450,000,000
Common stock, shares issued	8,576,179	8,161,679
Common stock, shares outstanding	8,576,179	8,161,679

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Total revenue	$ 1,607,269	$ 204,432	$ 3,084,721	$ 754,253
Cost of revenue	1,733,041	190,329	3,160,526	486,472
Gross margin (loss)	(125,772)	14,103	(75,805)	267,781
Operating expenses
Product development, sales and marketing	259,356	108,632	416,146	113,164
General and administrative	2,203,524	208,252	4,106,732	365,699
Depreciation and amortization	25,658	11,221	34,184	17,935
Total operating expenses	2,488,538	328,105	4,557,062	496,798
Loss from operations	(2,614,310)	(314,002)	(4,632,867)	(229,017)
Other income (expenses)
Loss on settlement of accrued liabilities	(10,000)	(208,322)	(10,000)	(208,322)
Interest expense	(847,519)	(145,715)	(2,512,115)	(164,079)
Change in fair value of derivative liabilities	0	4,810	0	9,195
Other income (expenses)	(857,519)	(349,227)	(2,522,115)	(363,206)
Net loss	(3,471,829)	(663,229)	(7,154,982)	(592,223)
Net loss attributable to non-controlling interest	(90,994)	0	(180,969)	0
Net loss attributable to Globe Photos, Inc.	$ (3,380,835)	$ (663,229)	$ (6,974,013)	$ (592,223)
Per-share data
Basic and diluted loss per share	$ (0.41)	$ (0.08)	$ (0.85)	$ (0.07)
Weighted average number of common shares outstanding	8,278,108	8,130,543	8,221,685	8,132,204
License Revenue [Member]
Total revenue	$ 79,211	$ 83,818	$ 197,498	$ 314,593
Image Revenue [Member]
Total revenue	$ 1,528,058	$ 120,614	$ 2,887,223	$ 439,660

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($)	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Noncontrolling Interest	Total
Beginning balance, shares at Dec. 31, 2017	8,139,263
Beginning balance, value at Dec. 31, 2017	$ 814	$ 4,155,986	$ (88,000)	$ (3,522,655)	$ 0	$ 546,145
Repurchase and cancellation of shares, shares	(8,235)
Repurchase and cancellation of shares, value	$ (1)	(111,999)	88,000			(24,000)
Net income (loss)				71,006		71,006
Ending balance, shares at Mar. 31, 2018	8,131,028
Ending balance, value at Mar. 31, 2018	$ 813	4,043,987	0	(3,451,649)	0	593,151
Beginning balance, shares at Dec. 31, 2017	8,139,263
Beginning balance, value at Dec. 31, 2017	$ 814	4,155,986	(88,000)	(3,522,655)	0	546,145
Net income (loss)						(592,223)
Ending balance, shares at Jun. 30, 2018	8,130,439
Ending balance, value at Jun. 30, 2018	$ 813	4,363,475	0	(4,114,878)	0	249,410
Beginning balance, shares at Mar. 31, 2018	8,131,028
Beginning balance, value at Mar. 31, 2018	$ 813	4,043,987	0	(3,451,649)	0	593,151
Repurchase and cancellation of shares, shares	(589)
Repurchase and cancellation of shares, value		(8,000)				(8,000)
Stock options issued for services		14,999				14,999
Stock options issued for debt settlement		312,489				312,489
Net income (loss)				(663,229)		(663,229)
Ending balance, shares at Jun. 30, 2018	8,130,439
Ending balance, value at Jun. 30, 2018	$ 813	4,363,475	0	(4,114,878)	0	249,410
Beginning balance, shares at Dec. 31, 2018	8,161,679
Beginning balance, value at Dec. 31, 2018	$ 816	10,145,902	0	(4,016,630)	3,409,159	9,539,247
Prior period lease adjustment at Mar. 31, 2019				(21,142)		(21,142)
Warrants issued for services		312,000				312,000
Stock option expense		297,800				297,800
Beneficial conversion feature		572,924				572,924
Net income (loss)				(3,593,178)	(89,975)	(3,683,153)
Ending balance, shares at Mar. 31, 2019	8,161,679
Ending balance, value at Mar. 31, 2019	$ 816	11,328,626	0	(7,630,950)	3,319,184	7,017,676
Beginning balance, shares at Dec. 31, 2018	8,161,679
Beginning balance, value at Dec. 31, 2018	$ 816	10,145,902	0	(4,016,630)	3,409,159	9,539,247
Net income (loss)						(7,154,982)
Ending balance, shares at Jun. 30, 2019	8,576,179
Ending balance, value at Jun. 30, 2019	$ 857	13,202,328	0	(11,011,785)	3,228,190	5,419,590
Beginning balance, shares at Mar. 31, 2019	8,161,679
Beginning balance, value at Mar. 31, 2019	$ 816	11,328,626	0	(7,630,950)	3,319,184	7,017,676
Stock options issued for debt settlement		92,629				92,629
Stock issued for cash, shares	407,500
Stock issued for cash, value	$ 41	1,291,244				1,291,285
Shares issued for services, shares	5,000
Shares issued for services, value		99,600				99,600
Shares issued for settlement of accrued liabilities, shares	2,000
Shares issued for settlement of accrued liabilities, value		18,000				18,000
Stock option expense		464,858				464,858
Net income (loss)				(3,380,835)	(90,994)	(3,471,829)
Ending balance, shares at Jun. 30, 2019	8,576,179
Ending balance, value at Jun. 30, 2019	$ 857	$ 13,202,328	$ 0	$ (11,011,785)	$ 3,228,190	$ 5,419,590

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (7,154,982)	$ (592,223)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,320,361	228,441
Amortization of debt discount	2,284,418	4,597
Noncash operating lease expense	31,903	0
Stock option expense	762,658	14,999
Shares issued for services	99,600	0
Warrants issued for services	312,000	0
Loss on settlement of accrued liabilities	10,000	208,322
Change in fair value of embedded derivative	0	(9,195)
Changes in operating assets and liabilities:
Accounts receivable	124,347	14,818
Prepaid expenses	(24,061)	(22,817)
Deposits	(8,222)	0
Deferred revenue	0	(200,000)
Repayment of lease liability	(32,082)	0
Accounts payable and accrued liabilities	590,749	153,622
Net Cash Used In Operating Activities	(1,683,311)	(199,436)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of archival images	(112,500)	(12,922)
Purchase of software	(31,570)	0
Payment of liability related to acquisition of Photo File, Inc.	(485,000)	0
Net Cash Provided By (Used In) Investing Activities	(629,070)	(12,922)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from loans payable	0	150,000
Repayment of loans payable	(2,464)	(3,984)
Proceeds from related party advances	426,691	147,342
Repayment of note payable - related party	(7,480)	(24,980)
Proceeds from convertible notes payable, net	572,924	0
Proceeds from the sale of common stock, net of issuance costs	1,291,285	0
Purchase of treasury stock	0	(32,000)
Net Cash Provided By Financing Activities	2,280,956	236,378
Net Change in Cash	(31,425)	24,020
Cash - Beginning of Period	304,267	1,297
Cash - End of Period	272,842	25,317
Cash Paid During the Period for:
Interest	5,646	11,219
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Beneficial conversion feature on convertible debt	572,924	0
Options issued to settle accrued liabilities	8,000	104,167
Purchase of third party notes by related party	0	212,500
Assets acquired under operating leases	$ 186,250	$ 0

1. Organization and Business Op

1. Organization and Business Operations	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business Operations	1. ORGANIZATION AND BUSINESS OPERATIONS Globe Photos, Inc. (“we”, “our”, the “Company”) sells and manages classic and contemporary, limited edition photographic images and reproductions, with a focus on iconic celebrity images. The Company also makes available its images for publications and merchandizing. The Company aims to become a leading global photography marketing and distribution company by acquiring rights and ownership to collections of rare iconic negatives and photographs, and to establish worldwide wholesale and retail sales channels. On June 6, 2018, we filed a Certificate of Merger with the Secretary of State of Delaware in order to effectuate a merger with our wholly-owned subsidiary, Globe Photos, Inc. Shareholder approval was not required pursuant to the Delaware General Corporation Law. As part of the merger, our board of directors authorized a change in our name to “Globe Photos, Inc.” and our Certificate of Incorporation has been amended to reflect this name change. On October 11, 2018, we acquired substantially all of the assets of Photo File, Inc. (“Photo File”), a New York corporation, a 30-year-old New York-based licensed sports photography company. As part of the Photo File transaction, we acquired licenses to produce and sell licensed sports prints, lithographs and other related items for major U.S. sports leagues, including the NFL, NBA, MLB, and NHL Properties and their respective player associations, as well as most major college sports teams. We also gained licenses from thousands of individuals and organizations, including Babe Ruth, Joe Namath, Vince Lombardi, Marvel Entertainment, Nickelodeon and others. The acquisition also significantly expanded our collection of company-owned iconic sports photography. Going Concern The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. Management evaluated all relevant conditions and events that are reasonably known or reasonably knowable, in the aggregate, as of the date the consolidated financial statements are issued and determined that substantial doubt exists about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on the Company’s ability to generate revenues and raise capital. The Company has not generated sufficient revenues from product sales to provide sufficient cash flows to enable the Company to finance its operations internally. As of June 30, 2019, the Company had $272,842 cash on hand. At June 30, 2019 the Company has an accumulated deficit of $11,011,785. For the six months ended June 30, 2019, the Company had a net loss of $6,974,013 and cash used in operations of $1,683,311. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company intends to invest its working capital resources in sales and marketing in order to increase the distribution and demand for its products. If the Company fails to generate sufficient revenue and obtain additional capital to continue at its expected level of operations, the Company may be forced to scale back or discontinue its sales and marketing efforts. However, there is no guarantee the Company will generate sufficient revenues or raise capital to continue operations. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

2. Significant Accounting Polic

2. Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Significant Accounting Policies	2. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in the consolidated financial statements for the three and six months ended June 30, 2019 should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Form 10-K for the Company’s fiscal year ended December 31, 2018, as filed with the SEC. The consolidated balance sheet as of December 31, 2018, included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. The accompanying unaudited consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the year ending December 31, 2019. The accompanying unaudited consolidated financial statements represent the results of operations, financial position and cash flows of the Company prepared on the accrual basis of accounting and conform to accounting principles generally accepted in the United States of America. The consolidated financial statements include the financial statements of the Company, and its 100% owned subsidiaries Capital Art, LLC, Globe Photos, LLC, and Photo File, LLC. All inter-company balances and transactions have been eliminated. Reclassifications Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and also requires disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Revenue Recognition On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. We did not have a cumulative impact as of January 1, 2018 due to the adoption of Topic 606 and there was not an impact to our consolidated statement of operations for the year ended December 31, 2018 as a result of applying Topic 606. We recognize revenue in accordance with generally accepted accounting principles as outlined in the Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue From Contracts with Customers, which requires that five basic criteria be met before revenue can be recognized: (i) identify the contract with the customer; (ii) identity the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price; and (v) recognize revenue when or as the entity satisfied a performance obligation. Revenue recognition occurs at the time product is shipped to customers, when control transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. We only record revenue when collectability is reasonably assured. The Company’s other revenue represent payments based on net sales from brand licensees for content reproduction rights. These license agreements are held in conjunction with third parties that are responsible for collecting fees due and remitting to the Company its share after expenses. Revenue from licensed products is recognized when realized or realizable based on royalty reporting received from licensees. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASC 842”). The guidance requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. ASC 842 is effective for fiscal years beginning after December 15, 2018. We adopted ASC 842 effective January 1, 2019 using the optional transition method of recognizing a cumulative-effect adjustment to the opening balance of retained earnings on January 1, 2019. Therefore, comparative financial information was not adjusted and continues to be reported under the prior lease accounting guidance in ASC 840. We elected the transition relief package of practical expedients, and as a result, we did not assess 1) whether existing or expired contracts contain embedded leases, 2) lease classification for any existing or expired leases, and 3) whether lease origination costs qualified as initial direct costs. We elected the short-term lease practical expedient by establishing an accounting policy to exclude leases with a term of 12 months or less, as well as the land easement practical expedient for maintaining our current accounting policy for existing or expired land easements. In June 2018, the FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," which modifies the accounting for share-based payment awards issued to nonemployees to largely align it with the accounting for share-based payment awards issued to employees. ASU 2018-07 is effective for us for annual periods beginning January 1, 2019. Management evaluated ASU 2018-07 and determined that the adoption of this new accounting standard did not have a material impact on the Company’s consolidated financial statements.

3. Fair Value of Financial Inst

3. Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	3. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company measures fair value in accordance with Accounting Standards Codification (“ASC”) 820 – Fair Value Measurements. ASC 820 defines fair value and establishes a three-level valuation hierarchy for disclosures of fair value measurements. ASC 820 establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, ASC 820 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by ASC 820 are: Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 — Inputs (other than quoted market prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Valuation of instruments includes unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. As defined by ASC 820, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale, which was further clarified as the price that would be received to sell an asset or paid to transfer a liability (“an exit price”) in an orderly transaction between market participants at the measurement date. The reported fair values for financial instruments that use Level 2 and Level 3 inputs to determine fair value are based on a variety of factors and assumptions. Accordingly, certain fair values may not represent actual values of the Company’s financial instruments that could have been realized as of June 30, 2019or that will be recognized in the future, and do not include expenses that could be incurred in an actual settlement. The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, receivables from related parties, prepaid expenses and other, accounts payable, accrued liabilities, and related party and third-party notes payables approximate fair value due to their relatively short maturities. The Company’s notes payable to related parties approximates the fair value of such instrument based upon management’s best estimate of terms that would be available to the Company for similar financial arrangements at June 30, 2019 and December 31, 2018.

4. Photo File Asset Purchase Ag

4. Photo File Asset Purchase Agreement	6 Months Ended
	Jun. 30, 2019
Business Combinations [Abstract]
Photo File Asset Purchase Agreement	4. PHOTO FILE ASSET PURCHASE AGREEMENT On October 11, 2018, the Company entered into a definitive Asset Purchase Agreement with Photo File, Inc., a New York corporation along with it related entity Sportphotos.com and Charles Singer, its CEO and principal shareholder (collectively, the “Seller”) wherein the Company acquired certain assets and assumed certain liabilities of the Seller in exchange for $2,000,000. In connection with the agreement, the Company paid $1,515,000 to the Seller as of December 31, 2018 toward the purchase price of the Asset Purchase Agreement. The final payment of $485,000 which was recorded as a payable to Photo File, Inc. as of December 31, 2018 in the consolidated balance sheet was paid during the three month period end June 30, 2019. The Company has also recorded an additional liability due to the Seller related to a final working capital adjustment of the acquisition as of June 30, 2019 and December 31, 2018 in the amount of $631,634 and $201,943, respectively. As additional consideration the seller also received the following: · A royalty to Seller that commences upon the initial $6,000,000 in sales from the Nevada subsidiary, with a fair value of $4,279,000. · 10% interest in the Nevada subsidiary that we have formed to house the assets Additionally, the seller will endeavor to sell its Vintage Photographic Collection over time after Closing. If at the completion of the sale of the Vintage Photographic Collection, proceeds from net sales but before any expenses other than commissions are less than $2,000,000, the Company will pay the difference between the proceeds and $2,000,000 within 30 days. Any proceeds above $2,000,000 will be divided equally between Seller and the Company with the Seller remitting 50% of the net proceeds after expenses of those sales within 30 days of their receipt. As of December 31, 2018, the Company has recorded the entire $2,000,000 as a contingent purchase consideration. This remains outstanding as of June 30, 2019. The transaction was deemed to be an acquisition of a business and was accounted for under the acquisition method of accounting in accordance with the guidance in ASC 805 - “Business Combinations”. The following table summarizes the acquisition date fair value of the consideration paid, identifiable assets acquired and liabilities assumed. Cash $ 2,000,000 10% noncontrolling interest in subsidiary 2,750,000 Royalty payments 4,279,000 Contingent consideration 2,000,000 Total Purchase Price 11,029,000 Accounts Receivable 313,257 Memorabilia 3,600,000 Copyright Image library 4,100,000 Trade name 340,000 Non-Compete agreement 90,000 Outbound license agreement 9,000,000 Customer relationships 2,330,000 Total Identifiable assets 19,773,257 Liabilities (1,447,491 ) Total liabilities assumed (1,447,491 ) Total net assets acquired $ 18,325,766 Total bargain purchase gain $ (7,296,766 ) Pro Forma The following table below shows the unaudited pro-forma information which assumes that the acquisition had been completed as of January 1, 2018. For the June 30, 2018 Total revenue $ 1,808,147 Cost of revenue 974,348 Gross margin 833,799 Total operating expenses (1,337,833 ) Other income (expenses) (354,134 ) Net loss $ (858,168 ) For the June 30, 2018 Total revenue $ 4,702,788 Cost of revenue 2,427,534 Gross margin 2,275,254 Total operating expenses (2,486,794 ) Other income (expenses) (380,209 ) Net loss $ (591,749 )

5. Property and Equipment, Net

5. Property and Equipment, Net	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	5. PROPERTY AND EQUIPMENT, NET June 30, December 31, Estimated 2019 2018 Useful Lives Frank Worth Collection $ 2,770,000 $ 2,770,000 10 years Other archival images 4,689,268 4,576,768 5-10 years Leasehold improvements 12,446 12,446 7 years Computer and other equipment 72,687 72,687 3 – 5 years Furniture and fixtures 83,666 83,666 7 years 7,628,067 7,515,567 Less accumulated deprecation (2,531,785 ) (1,981,887 ) Total property and equipment, net $ 5,096,282 $ 5,533,680 Depreciation expense was $549,898 and $206,691 for the six months ended June 30, 2019 and 2018, respectively, of which $518,648 and $188,756 are reported in cost of revenue, respectively.

6. Intangible Assets, Net

6. Intangible Assets, Net	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, Net	6. INTANGIBLE ASSETS, NET June 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net book value Gross Carrying Amount Accumulated Amortization Net book value Intangible assets with determinable lives: Content provider and photographic agreements $ 400,000 $ 160,000 $ 240,000 $ 400,000 $ 140,000 $ 260,000 Copyrights 35,000 14,000 21,000 35,000 12,250 22,750 Internal use software 58,666 2,934 55,732 27,096 – 27,096 Copyrighted Image Library 4,100,000 305,534 3,794,466 4,100,000 102,500 3,997,500 Non-Compete and Non-Solicitation Covenants 90,000 22,356 67,644 90,000 7,500 82,500 Trade name 340,000 – 340,000 340,000 – 340,000 License agreements 9,000,000 447,123 8,552,877 9,000,000 150,000 8,850,000 Customer relationships 2,330,000 347,266 1,982,734 2,330,000 116,500 2,213,500 Total $ 16,353,666 $ 1,299,213 $ 15,054,453 $ 16,322,096 $ 528,750 $ 15,793,346 Total amortization expense for the six months ended June 30, 2019 and 2018 was $770,463 and $21,750, respectively of which $767,529 and 21,750 is included in cost of sales in the consolidated statements of operations, respectively. Estimated amortization expense over the next five years is $1,561,233 per year.

7. Notes Payable

7. Notes Payable	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Notes Payable	7. NOTES PAYABLE On April 1, 2016, the Company entered into an unsecured promissory note agreement with unrelated parties for working capital purposes for total proceeds of $25,000. The promissory notes matured on December 1, 2017 and on March 30, 2018 was extended through June 30, 2018 and on June 30, 2018 was further extended to December 31, 2018, and on December 31, 2018, the note was further extended to June 30, 2019. The note and accrued interest was paid in full subsequent to this filing (See note 12). The notes bear interest at the rate of 6% per annum. Accrued interest payable due under the unsecured note agreement was $4,880 and $3,380 as of June 30, 2019 and December 31, 2018, respectively. On December 20, 2017, the Company entered into an on demand unsecured note with an unrelated party for working capital purposes for total proceeds of $10,000. As of June 30, 2019, the note was still outstanding. On April 13, 2018, the Company entered into an unsecured promissory note agreement with an unrelated party for total proceeds of $150,000 of which is still outstanding as of June 30, 2019. The note is due upon demand and carried an interest rate of 15% and is guaranteed by a shareholder and director of the Company. Accrued interest payable due under the unsecured note agreement was $22,500 and $22,500 as of June 30, 2019 and December 31, 2018, respectively. The Company evaluated the modification of the notes resulting from the extensions in maturity dates under ASC 470-50 and determined that the modifications were not considered substantial and would not qualify for extinguishment accounting under such guidance.

8. Convertible Notes

8. Convertible Notes	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Convertible Notes	8. CONVERTIBLE NOTES From July 2018 to December 31, 2018, we issued convertible promissory notes in the aggregate principal amount of $2,782,050 to several accredited investors through a private placement. This includes the convertible note of $50,000 issued to settle an existing account payable. During the six months ended June 30, 2019, we issued an additional $651,050 notes under the same private placement. The convertible notes bear interest at a rate of 10% per annum, matured on April 30, 2019, are payable within ten days of written notice, and are secured by certain archival images owned by the Company. The notes and accrued interest are convertible at the option of the noteholder into our common stock at $4.00 per share but will mandatorily convert to common stock at the same price upon an up list to a national exchange and will have piggyback registration rights to register the shares of common stock underlying the conversion of the notes. The Company evaluated the convertible debentures under ASC 470-20 and recognized a debt discount of $3,029,628 related to the beneficial conversion feature (“BCF”), of which $572,924 was recorded during the six months ended June 30, 2019, with a corresponding credit to additional paid-in capital. The debt discount is being accreted to interest expense over the term of the notes. As part of the private placement, the Company paid a consultant financing fees equivalent to 12% of the gross proceeds received from the issuance of convertible notes or $403,472, of which $78,126 was recorded during the six months ended June 30, 2019 and was recorded as a debt discount and accreted to interest expense over the term of the notes. During the six months ended June 30, 2019 and 2018, the Company recorded interest expense of $2,207,023 of which $2,043,937 was related to the accretion of the debt discount and financing cost. As of June 30, 2019, the convertible notes are shown net of unamortized debt discount and financing cost of $0. On August 16, 2018, we issued a convertible promissory note with a principal amount of $500,000 to a company managed by one of our former directors. The note bear interest at a rate of 10% per annum, matured on April 30, 2019, payable within ten days of written notice and is secured by certain archival images owned by the Company. The note and accrued interest are convertible at the option of the noteholder into our common stock at $4.00 per share but will mandatorily convert to common stock at the same price upon an up list to a national exchange and will have piggyback registration rights to register the shares of common stock underlying the conversion of the notes. The Company evaluated the convertible debentures under ASC 470-20 and recognized a debt discount of $500,000 related to the BCF with a corresponding credit to additional paid-in capital. The debt discount is being accreted to interest expense over the term of the note. During the six months ended June 30, 2019, the Company recorded interest expense of $258,258 related to this note, of which $233,463 was related to the accretion of the debt discount. As of June 30, 2019, the convertible note is shown net of unamortized discount of $0.

9. Related Party Transactions

9. Related Party Transactions	6 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	9. RELATED PARTY TRANSACTIONS Notes payable to related parties In December 2015, the Company entered into a secured promissory note agreement with an unrelated party for working capital purposes for total proceeds of $120,000. The note bears interest at the rate of 10% per annum and is payable on the 1st day of each month commencing in February 2016. On February 15, 2016, the Company entered into an additional promissory note agreement with the same unrelated party for additional proceeds of $62,500 and under the same terms as the first note. As of June 30, 2019, and December 31, 2018, a balance of $162,500 on these two notes remains outstanding. Both notes are secured by certain inventory and archival images of the Company in the amount of up to $200,000. Accrued interest payable due under the unsecured note agreement was $58,787 and $34,412 as of June 30, 2019 and December 31, 2018, respectively. The notes matured on December 31, 2017; however, on January 22, 2018, the outstanding balance on the notes was purchased by a related party (ICONZ Art, LLC, beneficial interest shareholder) and the notes were extended to June 30, 2018 and on June 30, 2018 was extended indefinitely and will now be considered due on demand. All the accrued interest through December 31, 2017, was still due to the original noteholder. On April 5, 2016, the Company entered into an unsecured promissory note agreement with unrelated parties for working capital purposes for total proceeds of $50,000. The promissory notes matured in December 2017 and bear interest at the rate of 6% per annum. However, on January 22, 2018, the outstanding balance on the notes was purchased by a related party and the notes were extended to June 30, 2018 and on June 30, 2018 was extended indefinitely and will now be considered due on demand. Accrued interest payable due under the unsecured note agreement was $9,727 and $8,277 as of June 30, 2019 and December 31, 2018, respectively. All the accrued interest through December 31, 2017, was still due to the original noteholder. On August 1, 2013 the Company entered into an unsecured promissory note agreement with a related party Dino Satallante for $100,000. The loan bears interest at the rate of 5% per annum. During the six months ended June 30, 2019, the Company made payment of $7,480. As of June 30, 2019, and December 31, 2018, $38,695 and $46,175 was outstanding under the unsecured promissory note agreement, respectively. Interest expense for the six months ended June 30, 2019 and 2018 was $967 and $1,341 respectively. The loan matured on July 14, 2014 and was extended to July 31, 2016. Effective March 30, 2018, the note agreement was extended to June 30, 2018 and on June 30, 2018, the note was further extended to December 31, 2018 and on February 11, 2019 the note was further extended to December 31, 2019. On September 11, 2014, the Company entered into an unsecured promissory note agreement for $20,500 with Dino Satallante, a beneficial interest shareholder which bear interest at a rate of 6% per annum. Total interest expense in connection with the secured promissory note agreement for the six months ended June 30, 2019 and 2018 is $615. The loan matured on September 10, 2015 and has been extended multiple times up to December 31, 2018. On February 11, 2019, the note was further extended to December 31, 2019. Effective July 21, 2015, the Company entered into a promissory note agreement with a related party Dino Satallante, a beneficial interest shareholder of the Company, for total proceeds of $160,000. The Company utilized $80,000 of the proceeds for payments due in connection with the Globe Photo assets acquired. The remainder of the proceeds were used for working capital purposes. The note matured on July 20, 2016, with monthly interest only payments commencing July 22, 2015. Interest accrues at the rate of 12% per annum. The note is secured by the Globe Photo Assets. Total interest expense in connection with the secured promissory note agreement for the six months ended June 30, 2019 and 2018 is $9,600. Effective March 30, 2018 the note was extended to June 30, 2018, and on June 30, 2018, the note was further extended to December 31, 2018, and on February 11, 2019 the note was further extended to December 31, 2019. On April 4, 2016 the Company entered into a secured promissory note agreement with Premier Collectibles, a beneficial interest shareholder for total proceeds of $65,000 to be used for acquisition of archive agreement. The promissory note bears interest at the rate of 8% per annum, is secured by the archive collection which the proceeds were used and matured on April 1, 2017. On March 30, 2018, the note was extended to June 30, 2018 and on June 30, 2018 was extended indefinitely and will now be considered due on demand. Interest expense on the note was 2,600 each of the six months ended June 30, 2019 and 2018, respectively. On April 15, 2016, the Company entered into an unsecured promissory note agreement with Sean Goodchild, a beneficial interest shareholder, for total proceeds of $50,000. The promissory note bears interest at the rate of 6% per annum and matured on December 15, 2017, however, on January 22, 2018, the outstanding balance on the notes was purchased by another related party (ICONZ Art, LLC, beneficial interest shareholder) and the notes were extended to June 30, 2018 and on June 30, 2018 was extended indefinitely and will now be considered due on demand. Interest expense was $1,500 for each of the six months ended June 30, 2019 and 2018, respectively. All the accrued interest through December 31, 2017, was still due to the original noteholder. On October 3, 2016, the Company entered into an unsecured promissory note agreement with Sean Goodchild, a beneficial interest shareholder, for total proceeds of $50,000. The promissory note bears interest at the rate of 6% per annum and matured on December 31, 2017, however, on January 22, 2018, the outstanding balance on the notes was purchased by another related party (ICONZ Art, LLC, beneficial interest shareholder) and the notes were extended to June 30, 2018 and on June 30, 2018 was extended indefinitely and will now be considered due on demand. Interest expense was $1,500 for each of the six months ended June 30, 2019 and 2018, respectively. On December 2, 2016, the Company entered into an unsecured promissory note agreement with Sean Goodchild, a beneficial interest shareholder, for total proceeds of $31,500. The promissory note bears interest at the rate of 6% per annum and matured on December 31, 2017, however, on January 22, 2018, the outstanding balance on the notes was purchased by another related party (ICONZ Art, LLC, beneficial interest shareholder) and the notes were extended to June 30, 2018 and on June 30, 2018 was extended indefinitely and will now be considered due on demand. Interest expense was $945 for each of the six months ended June 30, 2019 and 2018, respectively. The Company evaluated the modification of the notes resulting from the extensions in maturity dates under ASC 470-50 and determined that the modifications were not considered substantial and would not qualify for extinguishment accounting under such guidance. Due to Related Parties The following table summarizes amounts due to related parties for expenses paid for on the behalf of the Company as of June 30, 2019 and December 31, 2018. The amounts due are non-interest bearing and due upon demand. These amounts have been included in the consolidated balance sheets as current liabilities due to related parties, respectively. June 30, December 31, 2019 2018 Due to related parties: ICONZ Art, LLC, beneficial interest shareholder $ 256,423 $ 259,423 MSN Holding Co., beneficial interest shareholder 12,947 12,947 Premier Collectibles, beneficial interest shareholder 15,085 15,085 Total due to related parties $ 284,455 $ 287,455

10. Commitments and Contingenci

10. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. COMMITMENTS AND CONTINGENCIES Proceeds from Auctions of Royalty Rights On March 8, 2016, the Company entered into a Listing Agreement with Royalty Network, LLC, doing business as Royalty Exchange for auction of a 50% ownership of photographic copyrights of certain celebrity archival images owned by the Company. In addition, the sale also assigns the winning bidder the right to receive 50% of the future share of income derived from the assigned images. During 2016, the Company received gross proceeds of $396,000, less 12.5% auction broker fee, from five separate auctions of these rights. The Company retains all exclusive licensing authority over the images and may exercise a buyback option to buy back the 50% ownership of the rights for two times the original auction proceeds over a period ranging from 1 to 2 years. The Company accounted for the 50% profit consideration for the above agreement in accordance with ASC 470-10-25 and 470-10-35 which requires amounts recorded as debt to be amortized under the interest method as described in ASC 835-30, Interest Method. The Company determined an effective interest rate based on future expected cash flows to be paid to the loan holders. This rate represents the discount rate that equates estimated cash flows with the initial proceeds received from the loan holders and is used to compute the amount of interest to be recognized each period. Estimating the future cash outflows under this agreement requires the Company to make certain estimates and assumptions about future revenues and such estimates are subject to significant variability. Therefore, the estimates are likely to change which may result in future adjustments to the accretion of the interest expense and the amortized cost based carrying value of the related loans. Accordingly, the Company has estimated the cash flows associated with the images and determined a discount of $151,316 which is being accounted as interest expense over a 10-year estimated life of the asset based on expected future revenue streams. For the six months ended June 30, 2019 and 2018, interest expense related to these loans amounted to $7,018 and $14,597, respectively, which has been included in interest expense and a corresponding increase in loans payable. During the six months ended June 30, 2019 and 2018, the Company made payments of $2,464 and $3,984 to the loan holders, respectively. As of June 30, 2019, loan payable net of unamortized debt discount amounted to $286,338. Asset purchase agreement On March 3, 2017, the Company entered into an agreement to sell 20% of its ownership in a certain photographic archive asset for $200,000. As part of the agreement the buyer received preferential distributions of their entire purchase price of the asset. If, however the entire purchase price is not paid back after 24 months then all net revenues from the Company will be paid to the buyer until the full purchase price has been paid. On March 30, 2018, the Company entered into an addendum to the agreement to remove the preferential distributions clause from the agreement. Additionally, on May 1, 2018, the Company entered into a second addendum to the agreement whereby the Company agreed to repay the seller the total purchase price of $200,000 and 25,000 shares of common stock within 120 days of the effective date of the agreement. The Company valued the 25,000 shares at $100,000 as of the agreement date and recorded the value as interest expense during the year ended December 31, 2018. The Company accounted for the above transaction as debt and recognized the amount received as a loan payable. As of June 30, 2019, other debt, net of unamortized debt discount amounted to $200,000. License Agreements Effective June 1, 2016 the Company entered into three separate non-exclusive license agreements use of licensed images and trademarks through December 31, 2019. Under the terms of the agreements, the Company is required to pay royalties of 10% on net sales. The agreements call for combined annual guaranteed minimum royalties per year of $150,000 based on combined minimum sales of $1,500,000 per year. As of June 30, 2019, the Company has paid $45,000 toward the guaranteed royalties associated with these agreements. With the acquisition of the assets of Photo File, Inc we acquired multiple license agreement with royalty rates rating between 6 – 16% and terms extending through December 31, 2021. As of June 30, 2019, the Company has incurred $580,746 in royalty expenses associated with these agreements which has been included in cost of sales. Operating Lease Agreements The Company has entered into lease agreements as a lessee for the use of land and office space. These lease agreements are classified as operating leases and the liability and right-of-use asset are recognized on the balance sheet at lease commencement. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are recognized as lease expense on a straight-line basis over the lease term. As a result of the adoption of ASC 842, the Company recognized an operating lease liability of $112,480 and a corresponding right-of-use asset of $87,830, net of deferred rent of $3,508 and the cumulative effect adjustment to retained earnings of $21,142 as a result of applying hindsight in determining the lease term. The Company determines whether or not a contract contains a lease based on whether or not it provides the Company with the use of a specifically identified asset for a period of time, as well as both the right to direct the use of that asset and receive the significant economic benefits of the asset. The Company elected the transition relief package of practical expedients, and as a result, we did not assess 1) whether existing or expired contracts contain embedded leases, 2) lease classification for any existing or expired leases, and 3) whether lease origination costs qualified as initial direct costs. We elected the short-term lease practical expedient by establishing an accounting policy to exclude leases with a term of 12 months or less, as well as the land easement practical expedient for maintaining our current accounting policy for existing or expired land easements. The discount rate utilized for classification and measurement purposes as of the inception date of the lease is based on each company's collateralized incremental interest rate to borrow of 10%, as the rate implicit in the lease is not determinable. On September 6, 2012 the Company entered into a 25-month operating lease agreement for approximately 4,606 square foot warehouse and office facilities located in Las Vegas, NV. Monthly base rent due under the agreement is $3,270, plus common area maintenance fees. The agreement calls for 3% annual increase in base rental payments. On October 10, 2014, the Company entered into a First Amendment to Lease agreement extending the lease term for 60-months, beginning November 1, 2014. All other terms of the agreement remain unchanged. On February 19, 2019 the Company extended the operating lease agreement for the lease originally entered into September 6, 2012 for an additional 24 months. During the six months ended June 30, 2019, the Company recorded noncash lease expense associated with the right of use asset of $15,500 and made payment on the lease liability of $17,152. On February 26, 2019 the Company entered into a 24-month operating lease agreement for approximately 4,672 square foot warehouse and office facilities located in Las Vegas, NV. Monthly base rent due under the agreement is $4,437, plus common area maintenance fees. The agreement calls for 3% annual increase in base rental payments. The Company determined this lease to be an operating lease and recorded a right-of-use asset and lease liability during the six month period ended June 30, 2019 of $98,420 for this new lease. During the six months ended June 30, 2019, the Company recorded noncash lease expense associated with the right to use asset of $16,403 and made payments on the lease liability of $14,930. Undiscounted Cash Flows As of June 30, 2019, the right of use asset and lease liability were shown on the consolidated balance sheet at $154,347 and $178,818, respectively. The table below reconciles the fixed component of the undiscounted cash flows and the total remaining years to the operating lease liability recorded on the consolidated balance sheet as of June 30, 2019: Amounts due as of June 30, 2019 Operating Leases 2019 $ 48,901 2020 100,088 2021 43,234 Total minimum lease payments $ 192,223 Less: effect of discounting (13,405 ) Present value of future minimum lease payments $ 178,818 Less: current obligations under leases (69,808 ) Long-term lease obligations $ 109,010 The Company also leases various corporate housing from unrelated third parties for terms that range from month-to-month to one year. The Company also rents office space on a month-to-month basis in New York at rate of $850 per month. As part of our acquisition of Photo File, while we did not assume the lease we assumed its existing lease payments as follows: we will pay 100% of the lease payments through December 31, 2018, and after December 31, 2018 we will pay 50% of the lease until the end of the lease term or until the lease may be terminated. The Company paid $352,920 in rent related to the lease for the six months ended June 30, 2019. Total rent expense for the six months ended June 30, 2019 and 2018 was $369,947 and $27,442, respectively, in connection with short term operating lease agreements.

11. Shareholders' Equity

11. Shareholders' Equity	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Shareholders' Equity	11. SHAREHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue up to 50,000,000 shares of preferred stock authorized with a par value of $0.0001. The Board of Directors is authorized, subject to any limitations prescribed by law, without further vote or action by the Company’s stockholders, to issue from time to time shares of preferred stock in one or more series. Each series of preferred stock will have such number of shares, designations, preferences, voting powers, qualifications and special or relative rights or privileges as shall be determined by the board of directors, which may include, among others, dividend rights, voting rights, liquidation preferences, and conversion rights. As of June 30, 2019, there were no shares of Preferred Stock issued and outstanding. Common Stock On June 18, 2018, the Company’s stockholders voted to give discretionary authority to the Board of Directors of the Company, to effect a reverse split of our issued and outstanding common stock in a range of not less than 1-for-5 and not more than 1-for-500. Effective as of June 6, 2019, FINRA approved the effectiveness of a 1-for-40 reverse stock split of the Company’s common stock. Unless otherwise noted, impacted amounts and share information included in the financial statements and notes thereto, have been retroactively adjusted for the Reverse Stock Split as if such Reverse Stock Split occurred on the first day of the first period presented. The Company is authorized to issue up to 450,000,000 shares of common stock with a par value of $0.0001. As of June 30, 2019, and December 31, 2018, there were 8,576,179 and 8,161,679 shares of common stock (post-split) issued and outstanding, respectively. On June 4, 2019, the Company sold 407,500 shares of common stock for net proceeds of $1,291,285. On April 22, 2019, the Company issued 5,000 shares for services with a fair value of $99,600. On May 23, 2019, the Company issued 2,000 shares of common stock valued at $18,000 for the settlement of $8,000 in accrued liabilities. The Company recorded the difference between the fair value of common stock and accrued liability as loss on settlement of accrued liabilities in the amount of $10,000. STOCK WARRANTS On January 30, 2019, we granted 20,000 5-year warrants with exercise prices of $4.00 valued at $312,000 for services. The warrants above were valued using the Black-Scholes option pricing model. Assumptions used in the valuation include the following: a) market value of stock on measurement date of $15.60; b) risk-free rate of 2.49%; c) volatility factor of 521.46%; d) dividend yield of 0%. The following is a summary of stock warrant activity during the six months ended June 30, 2019. Number of Shares Weighted Average Exercise Price Balance, December 31, 2018 162,500 $ 4.00 Warrants granted and assumed 20,000 $ 4.00 Warrants expired – – Warrants canceled – – Warrants exercised – – Balance outstanding, June 30, 2019 182,500 $ 4.00 Balance exercisable, June 30, 2019 182,500 $ 4.00 As of June 3, 2019, the outstanding warrants have a weighted average remaining term of was 1.79 years and an intrinsic value of $1,725,000. STOCK OPTIONS On June 24, 2019, we granted, 12,500 5-year options with an exercise price of $7.00 valued at $92,629 for services. The options above were valued using the Black-Scholes option pricing model. Assumptions used in the valuation include the following: a) market value of stock on measurement date of $9.00; b) risk-free rate of 1.92%; c) volatility factor of 254.67%; d) dividend yield of 0%. During the six months ended June 30, 2019, the Company recognized stock option expense of $670,029 for options granted in the prior year. The following is a summary of stock option activity during the year ended June 30, 2019: Number of Shares Weighted Average Exercise Price Balance, December 31, 2018 500,833 $ 2.80 Options granted and assumed 12,500 $ 7.00 Options expired – – Options canceled – – Options exercised – – Balance outstanding, June 30, 2019 513,333 $ 3.03 Balance exercisable, June 30, 2019 473,333 $ 2.82 As of June 30, 2019, the outstanding options have a weighted average remaining term of was 7.88 years and an intrinsic value of $3,063,167.

12. Subsequent Events

12. Subsequent Events	6 Months Ended
	Jun. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	12. SUBSEQUENT EVENTS On July 29, 2019, the Company issued 12,500 shares of common stock for services. Subsequent to June 30, 2019, the Company received a $100,000 advance from a related party Dino Satallante. The advance bears no interest and is due upon demand. On April 1, 2016, the Company entered into an unsecured promissory note agreement with unrelated parties for working capital purposes for total proceeds of $25,000. Subsequent to June 30, 2019, the note and accrued interest was paid in full. On August 8, 2019, the Board approved and authorized the Company to borrow up to an aggregate principal amount of One Million Dollars ($1,000,000.00) in the form of a Note and Warrant Purchase Agreement. Pursuant to the Agreement, an investor shall purchase from the Company (i) a secured convertible promissory note for the principal amount set forth therein (the “Note”), and (ii) a warrant to purchase common stock of the Company equivalent to twenty-five percent (25%) of the principal amount of the Note purchased by the investor (the “Warrant”). The Note bears interest at a rate of 12% per annum,and is secured by the Company’s assets. The Note matures on October 31, 2019. The principal and accrued interest therein is convertible at the option of the noteholder into the Company’s common stock at $6.00 per share, subject to certain price adjustments as set forth in the Note. The proceeds from the Note are to be used for general working capital purposes. The Warrant allows the investor to purchase shares of common stock of the Company at $6.00 per share, subject to certain price adjustments as set forth in the Warrant,and shall be exercisable for a period of three (3) years from the anniversary of the grant date of such Warrant. Cashless exercise is available under the terms of the Warrant. The Company has received $260,000 in proceeds under this offering subsequent to June 30, 2019. On August 8, 2019, the Board approved the extension of certain existing secured convertible promissory notes which had a maturity date of April 30, 2019 to October 31, 2019. In connection with such extension, the Board approved the issuance of warrants to such noteholders as consideration for agreeing to the extension. The Extension Warrants allow the existing noteholders to purchase shares of common stock of the Company equivalent to (i) twenty-five percent (25%) of the principal and accrued interest of the Prior Notes purchased by the noteholders, and (ii) shares of common stock currently held by such noteholders. The exercise price for the warrants is $9.00 per share, subject to certain price adjustments as set forth in the warrant agreement, and shall be exercisable for a period of three (3) years from the anniversary of the grant date of such warrants. The Extension Warrants are exercisable for cash and do not have a cashless exercise feature. On August 8, 2019, the Board appointed Shamar Tobias as the Company’s interim Chief Financial Officer to fill the vacancy left by Mr. Evan Bedell.

2. Significant Accounting Pol_2

2. Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in the consolidated financial statements for the three and six months ended June 30, 2019 should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Form 10-K for the Company’s fiscal year ended December 31, 2018, as filed with the SEC. The consolidated balance sheet as of December 31, 2018, included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. The accompanying unaudited consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the year ending December 31, 2019. The accompanying unaudited consolidated financial statements represent the results of operations, financial position and cash flows of the Company prepared on the accrual basis of accounting and conform to accounting principles generally accepted in the United States of America. The consolidated financial statements include the financial statements of the Company, and its 100% owned subsidiaries Capital Art, LLC, Globe Photos, LLC, and Photo File, LLC. All inter-company balances and transactions have been eliminated.
Reclassifications	Reclassifications Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and also requires disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Revenue Recognition	Revenue Recognition On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. We did not have a cumulative impact as of January 1, 2018 due to the adoption of Topic 606 and there was not an impact to our consolidated statement of operations for the year ended December 31, 2018 as a result of applying Topic 606. We recognize revenue in accordance with generally accepted accounting principles as outlined in the Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue From Contracts with Customers, which requires that five basic criteria be met before revenue can be recognized: (i) identify the contract with the customer; (ii) identity the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price; and (v) recognize revenue when or as the entity satisfied a performance obligation. Revenue recognition occurs at the time product is shipped to customers, when control transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. We only record revenue when collectability is reasonably assured. The Company’s other revenue represent payments based on net sales from brand licensees for content reproduction rights. These license agreements are held in conjunction with third parties that are responsible for collecting fees due and remitting to the Company its share after expenses. Revenue from licensed products is recognized when realized or realizable based on royalty reporting received from licensees.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASC 842”). The guidance requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. ASC 842 is effective for fiscal years beginning after December 15, 2018. We adopted ASC 842 effective January 1, 2019 using the optional transition method of recognizing a cumulative-effect adjustment to the opening balance of retained earnings on January 1, 2019. Therefore, comparative financial information was not adjusted and continues to be reported under the prior lease accounting guidance in ASC 840. We elected the transition relief package of practical expedients, and as a result, we did not assess 1) whether existing or expired contracts contain embedded leases, 2) lease classification for any existing or expired leases, and 3) whether lease origination costs qualified as initial direct costs. We elected the short-term lease practical expedient by establishing an accounting policy to exclude leases with a term of 12 months or less, as well as the land easement practical expedient for maintaining our current accounting policy for existing or expired land easements. In June 2018, the FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," which modifies the accounting for share-based payment awards issued to nonemployees to largely align it with the accounting for share-based payment awards issued to employees. ASU 2018-07 is effective for us for annual periods beginning January 1, 2019. Management evaluated ASU 2018-07 and determined that the adoption of this new accounting standard did not have a material impact on the Company’s consolidated financial statements.

4. Photo File Asset Purchase _2

4. Photo File Asset Purchase Agreement (Tables)	6 Months Ended
	Jun. 30, 2019
Business Combinations [Abstract]
Identifiable assets from combination	Cash $ 2,000,000 10% noncontrolling interest in subsidiary 2,750,000 Royalty payments 4,279,000 Contingent consideration 2,000,000 Total Purchase Price 11,029,000 Accounts Receivable 313,257 Memorabilia 3,600,000 Copyright Image library 4,100,000 Trade name 340,000 Non-Compete agreement 90,000 Outbound license agreement 9,000,000 Customer relationships 2,330,000 Total Identifiable assets 19,773,257 Liabilities (1,447,491 ) Total liabilities assumed (1,447,491 ) Total net assets acquired $ 18,325,766 Total bargain purchase gain $ (7,296,766 )
ProForma Information	For the June 30, 2018 Total revenue $ 1,808,147 Cost of revenue 974,348 Gross margin 833,799 Total operating expenses (1,337,833 ) Other income (expenses) (354,134 ) Net loss $ (858,168 ) For the June 30, 2018 Total revenue $ 4,702,788 Cost of revenue 2,427,534 Gross margin 2,275,254 Total operating expenses (2,486,794 ) Other income (expenses) (380,209 ) Net loss $ (591,749 )

5. Property and Equipment, Net

5. Property and Equipment, Net (Tables)	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Schedule of archival images, property and equipment	June 30, December 31, Estimated 2019 2018 Useful Lives Frank Worth Collection $ 2,770,000 $ 2,770,000 10 years Other archival images 4,689,268 4,576,768 5-10 years Leasehold improvements 12,446 12,446 7 years Computer and other equipment 72,687 72,687 3 – 5 years Furniture and fixtures 83,666 83,666 7 years 7,628,067 7,515,567 Less accumulated deprecation (2,531,785 ) (1,981,887 ) Total property and equipment, net $ 5,096,282 $ 5,533,680

6. Intangible Assets (Tables)

6. Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	June 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net book value Gross Carrying Amount Accumulated Amortization Net book value Intangible assets with determinable lives: Content provider and photographic agreements $ 400,000 $ 160,000 $ 240,000 $ 400,000 $ 140,000 $ 260,000 Copyrights 35,000 14,000 21,000 35,000 12,250 22,750 Internal use software 58,666 2,934 55,732 27,096 – 27,096 Copyrighted Image Library 4,100,000 305,534 3,794,466 4,100,000 102,500 3,997,500 Non-Compete and Non-Solicitation Covenants 90,000 22,356 67,644 90,000 7,500 82,500 Trade name 340,000 – 340,000 340,000 – 340,000 License agreements 9,000,000 447,123 8,552,877 9,000,000 150,000 8,850,000 Customer relationships 2,330,000 347,266 1,982,734 2,330,000 116,500 2,213,500 Total $ 16,353,666 $ 1,299,213 $ 15,054,453 $ 16,322,096 $ 528,750 $ 15,793,346

9. Related Party Transactions (

9. Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
Schedule of related party transactions	June 30, December 31, 2019 2018 Due to related parties: ICONZ Art, LLC, beneficial interest shareholder $ 256,423 $ 259,423 MSN Holding Co., beneficial interest shareholder 12,947 12,947 Premier Collectibles, beneficial interest shareholder 15,085 15,085 Total due to related parties $ 284,455 $ 287,455

10. Commitments and Contingen_2

10. Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Lease maturity amortization table	Amounts due as of June 30, 2019 Operating Leases 2019 $ 48,901 2020 100,088 2021 43,234 Total minimum lease payments $ 192,223 Less: effect of discounting (13,405 ) Present value of future minimum lease payments $ 178,818 Less: current obligations under leases (69,808 ) Long-term lease obligations $ 109,010

11. Shareholders' Equity (Table

11. Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Stock Warrant Activity	Number of Shares Weighted Average Exercise Price Balance, December 31, 2018 162,500 $ 4.00 Warrants granted and assumed 20,000 $ 4.00 Warrants expired – – Warrants canceled – – Warrants exercised – – Balance outstanding, June 30, 2019 182,500 $ 4.00 Balance exercisable, June 30, 2019 182,500 $ 4.00
Stock Option Activity	Number of Shares Weighted Average Exercise Price Balance, December 31, 2018 500,833 $ 2.80 Options granted and assumed 12,500 $ 7.00 Options expired – – Options canceled – – Options exercised – – Balance outstanding, June 30, 2019 513,333 $ 3.03 Balance exercisable, June 30, 2019 473,333 $ 2.82

1. Organization and Business _2

1. Organization and Business Operations (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash	$ 272,842	$ 25,317	$ 272,842	$ 25,317	$ 304,267	$ 1,297
Accumulated deficit	(11,011,785)		(11,011,785)		$ (4,016,630)
Net loss	$ (3,380,835)	$ (663,229)	(6,974,013)	(592,223)
Cash used in operations			$ (1,683,311)	$ (199,436)

4. Photo File Asset Purchase _3

4. Photo File Asset Purchase Agreement (Details - Assumed from acquisition)	9 Months Ended
	Oct. 11, 2018USD ($)
Trade Names [Member]
Finite lived intangibles	$ 340,000
Memorabilia [Member]
Finite lived intangibles	3,600,000
Copyrighted Image Library [Member]
Finite lived intangibles	4,100,000
Noncompete Agreements [Member]
Finite lived intangibles	90,000
Licensing Agreements [Member]
Finite lived intangibles	9,000,000
Customer Relationships [Member]
Finite lived intangibles	2,330,000
Photo File Inc. [Member]
Cash	2,000,000
10% noncontrolling interest in subsidiary	2,750,000
Royalty payments	4,279,000
Contingent consideration	2,000,000
Total Purchase Price	11,029,000
Accounts Receivable	313,257
Total Identifiable assets	19,773,257
Total liabilities assumed	(1,447,491)
Total net assets acquired	18,325,766
Total bargain purchase gain	$ (7,296,766)

4. Photo File Asset Purchase _4

4. Photo File Asset Purchase Agreement (Details - Pro Forma Information) - Photo File Inc. [Member] - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Total revenue	$ 1,808,147	$ 4,702,788
Cost of revenue	974,348	2,427,534
Gross margin	833,799	2,275,254
Total operating expenses	(1,337,833)	(2,468,794)
Other income (expenses)	(354,134)	(380,209)
Net loss	$ (858,168)	$ (591,749)

4. Photo File Asset Purchase _5

4. Photo File Asset Purchase Agreement (Details Narrative) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Payable to Photo File, Inc	$ 631,634	$ 686,943
Contingent purchase consideration	2,500,000	2,500,000
Photo File Inc. [Member]
Payable to Photo File, Inc	631,634	201,943
Contingent purchase consideration	$ 2,000,000	$ 2,000,000

5. Property and Equipment (Deta

5. Property and Equipment (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Property and equipment gross	$ 7,628,067	$ 7,515,567
Less accumulated deprecation	(2,531,785)	(1,981,887)
Total archival images, property and equipment, net	5,096,282	5,533,680
Leasehold Improvements [Member]
Property and equipment gross	$ 12,446	12,446
Estimated useful lives	7 years
Computer and other equipment [Member]
Property and equipment gross	$ 72,687	72,687
Estimated useful lives	3-5 years
Furniture and fixtures [Member]
Property and equipment gross	$ 83,666	83,666
Estimated useful lives	7 years
Frank Worth Collection [Member]
Property and equipment gross	$ 2,770,000	2,770,000
Estimated useful lives	10 years
Other archival images[Member]
Property and equipment gross	$ 4,689,268	$ 4,576,768
Estimated useful lives	5-10 years

5. Property and Equipment (De_2

5. Property and Equipment (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Depreciation Expense	$ 549,898	$ 206,691
Cost of Revenues [Member]
Depreciation Expense	$ 518,648	$ 188,756

6. Intangible Assets (Details)

6. Intangible Assets (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Intangible assets, gross	$ 16,353,666	$ 16,322,096
Accumulated amortization	1,299,213	528,750
Net Book Value	15,054,453	15,793,346
Trade Names [Member]
Intangible assets, gross	340,000	340,000
Accumulated amortization	0	0
Net Book Value	340,000	340,000
Content provider and photographic agreements [Member]
Intangible assets, gross	400,000	400,000
Accumulated amortization	160,000	140,000
Net Book Value	240,000	260,000
Copyrights [Member]
Intangible assets, gross	35,000	35,000
Accumulated amortization	14,000	12,250
Net Book Value	21,000	22,750
Internal use software [Member]
Intangible assets, gross	58,666	27,096
Accumulated amortization	2,934	0
Net Book Value	55,732	27,096
Copyrighted Image Library [Member]
Intangible assets, gross	4,100,000	4,100,000
Accumulated amortization	305,534	102,500
Net Book Value	3,794,466	3,997,500
Noncompete Agreements [Member]
Intangible assets, gross	90,000	90,000
Accumulated amortization	22,356	7,500
Net Book Value	67,644	82,500
Licensing Agreements [Member]
Intangible assets, gross	9,000,000	9,000,000
Accumulated amortization	447,123	150,000
Net Book Value	8,552,877	8,850,000
Customer Relationships [Member]
Intangible assets, gross	2,330,000	2,330,000
Accumulated amortization	347,266	116,500
Net Book Value	$ 1,982,734	$ 2,213,500

6. Intangible Assets (Details N

6. Intangible Assets (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Amortization expense	$ 770,463	$ 21,750
Amortization expense due current	1,561,233
Amortization expense year two	1,561,233
Amortization expense year three	1,561,233
Amortization expense year four	1,561,233
Amortization expense year five	1,561,233
Cost of Sales [Member]
Amortization expense	$ 767,529	$ 21,750

7. Note Payable (Details Narrat

7. Note Payable (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Note Payable 1 [Member]
Debt issuance date	Apr. 1, 2016
Debt face amount	$ 25,000
Debt maturity date	Jun. 30, 2019
Debt interest rate	6.00%
Accrued interest	$ 4,880	$ 3,380
Note Payable 2 [Member]
Accrued interest	$ 10,000	10,000
Note Payable 3 [Member]
Debt issuance date	Apr. 13, 2018
Debt face amount	$ 150,000
Debt maturity date	Dec. 31, 2018
Debt interest rate	15.00%
Accrued interest	$ 22,500	$ 22,500
Note payable balance	$ 150,000

8. Convertible Notes (Details N

8. Convertible Notes (Details Narrative) - USD ($)	6 Months Ended		8 Months Ended	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Aug. 16, 2018	Jun. 30, 2019	Dec. 31, 2018
Beneficial conversion feature	$ 572,924	$ 0
Convertible Notes Payable [Member] | Former Directors Company [Member]
Debt face amount			$ 500,000
Debt stated interest rate			10.00%
Debt maturity date			Apr. 30, 2019
Beneficial conversion feature			$ 500,000
Interest expense debt	258,258	233,463
Unamortized discount	0			$ 0
Convertible Notes Payable [Member] | Private Placement [Member]
Debt face amount					$ 2,782,050
Debt issued during period	$ 651,050
Debt stated interest rate	10.00%			10.00%
Debt maturity date	Apr. 30, 2019
Beneficial conversion feature	$ 572,924			$ 3,029,628
Debt issuance costs	78,126			403,472
Interest expense debt	2,207,023	$ 2,043,937
Unamortized discount	$ 0			$ 0

9. Related Party Transactions_2

9. Related Party Transactions (Details - Due to related parties) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Due to related parties	$ 284,455	$ 287,455
ICONZ Art, LLC [Member]
Due to related parties	256,423	259,423
MSN Holding Co. [Member]
Due to related parties	12,947	12,947
Premier Collectibles [Member]
Due to related parties	$ 15,085	$ 15,085

9. Related Party Transactions_3

9. Related Party Transactions (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Dec. 02, 2016	Oct. 03, 2016	Apr. 15, 2016	Apr. 05, 2016	Apr. 04, 2016	Dec. 31, 2015	Jul. 21, 2015	Sep. 11, 2014	Aug. 01, 2013
Repayment of note payable	$ 7,480	$ 24,980
Note Payable Related 1 [Member]
Debt face amount									$ 120,000
Debt stated interest rate									10.00%
Note payable balance	162,500		$ 162,500
Accrued interest	58,787		34,412
Note Payable Related 2 [Member]
Debt face amount							$ 50,000
Debt stated interest rate							6.00%
Note payable balance	50,000		50,000
Accrued interest	9,727		8,277
Note Payable Related 3 [Member] | Dino Satallante [Member]
Debt face amount												$ 100,000
Debt stated interest rate												5.00%
Note payable balance	38,695		$ 46,175
Repayment of note payable	7,480
Interest expense	$ 967	1,341
Debt maturity date	Dec. 31, 2019
Note Payable Related 4 [Member] | Dino Satallante [Member]
Debt face amount										$ 160,000
Debt stated interest rate										12.00%
Interest expense	$ 9,600	9,600
Debt maturity date	Dec. 31, 2019
Note Payable Related 5 [Member] | Premier Collectibles [Member]
Debt face amount								$ 65,000
Debt stated interest rate								8.00%
Interest expense	$ 2,600	2,600
Note Payable Related 6 [Member] | Sean Goodchild [Member]
Debt face amount						$ 50,000
Debt stated interest rate						6.00%
Interest expense	750	750
Note Payable Related 7 [Member] | Sean Goodchild [Member]
Debt face amount					$ 50,000
Debt stated interest rate					6.00%
Interest expense	1,500	1,500
Note Payable Related 8 [Member] | Sean Goodchild [Member]
Debt face amount				$ 31,500
Debt stated interest rate				6.00%
Interest expense	945	945
Note Payable Related 3.5 [Member] | Dino Satallante [Member]
Debt face amount											$ 20,500
Debt stated interest rate											6.00%
Interest expense	$ 615	$ 615
Debt maturity date	Dec. 31, 2019

10. Commitments and Contingen_3

10. Commitments and Contingencies (Details - Leases) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
2019	$ 48,901
2020	100,088
2021	43,234
Total minimum lease payments	192,223
Less: effect of discounting	(13,405)
Present value of future minimum lease payments	178,818
Less: current obligations under leases	(69,808)	$ 0
Long-term lease obligations	$ 109,010	$ 0

10. Commitments and Contingen_4

10. Commitments and Contingencies (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Repayment of loans payable	$ 2,464	$ 3,984
Rent expense	369,947	27,442
Operating lease liability	178,818
Right to use asset	154,347		$ 0
Asset Purchase Agreement [Member]
Other debt	200,000
Vegas 4672 Warehouse [Member]
Payment on lease liability	14,930
Operating lease liability	98,420
Right to use asset	98,420
Non-cash lease expense	16,403
Vegas 4606 Warehouse [Member]
Payment on lease liability	17,152
Non-cash lease expense	15,500
Royalty Network [Member]
Interest expense	7,018	14,597
Repayment of loans payable	2,464	$ 3,984
Loan payable	286,338
Photo File License Agreements [Member]
Payment of royalty fees	45,000
Royalty payments	$ 580,746

11. Shareholders' Equity (Detai

11. Shareholders' Equity (Details - Warrant activity) - Warrants [Member]	6 Months Ended
	Jun. 30, 2019$ / sharesshares
Number of Warrants
Number of Warrants Outstanding, Beginning | shares	162,500
Number of Warrants Granted and assumed | shares	20,000
Number of Warrants Expired | shares	0
Number of Warrants canceled | shares	0
Number of Warrants Exercised | shares	0
Number of Warrants Outstanding, Ending | shares	182,500
Number of Warrants Exercisable, Ending | shares	182,500
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Beginning | $ / shares	$ 4
Weighted Average Exercise Price Granted | $ / shares	4
Weighted Average Exercise Price Expired | $ / shares
Weighted Average Exercise Price canceled | $ / shares
Weighted Average Exercise Price Exercised | $ / shares
Weighted Average Exercise Price Outstanding, Ending | $ / shares	4
Weighted Average Exercise Price Exercisable | $ / shares	$ 4

11. Shareholders' Equity (Det_2

11. Shareholders' Equity (Details - Options) - Options [Member] - $ / shares	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Number of Options
Number of Options Outstanding, Beginning	800,833
Number of Options Granted	12,500	0
Number of Options Expired	0	0
Number of Options canceled	0	0
Number of Options Exercised	0	0
Number of Options Outstanding, Ending	513,333
Number of Options Exercisable, Ending	473,333
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Beginning	$ 2.80
Weighted Average Exercise Price Granted	7
Weighted Average Exercise Price Expired
Weighted Average Exercise Price Forfeited
Weighted Average Exercise Price Exercised
Weighted Average Exercise Price Outstanding, Ending	3.03
Weighted Average Exercise Price Exercisable, Ending	$ 2.82

11. Shareholders' Equity (Det_3

11. Shareholders' Equity (Details Narrative) - USD ($)	3 Months Ended		4 Months Ended	5 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Apr. 22, 2019	Jun. 04, 2019	May 23, 2019	Jun. 30, 2019	Jun. 30, 2018
Reverse stock split						As of June 6, 2019, 1-for-40 reverse stock split approved
Proceeds from sale of common stock						$ 1,291,285	$ 0
Stock issued for services, value	$ 99,600
Shares issued for settlement of accrued liabilities, value	18,000
Loss on settlement of accrued liabilities	(10,000)	$ (208,322)				$ (10,000)	$ (208,322)
Warrants [Member]
Number of Warrants Granted and assumed						20,000
Weighted average remaining term						1 year 9 months 14 days
Warrant intrinsic value	1,725,000					$ 1,725,000
Share based compensation						670,029
Warrants [Member] | Services [Member]
Fair value of warrants granted						$ 312,000
Options [Member]
Weighted average remaining term						7 years 10 months 17 days
Option intrinsic value	$ 3,063,167					$ 3,063,167
Stock for Services [Member]
Stock issued for services, shares			5,000
Stock issued for services, value			$ 99,600
Stock for Accrued Liabilities [Member]
Shares issued for settlement of accrued liabilities, shares					2,000
Shares issued for settlement of accrued liabilities, value					$ 18,000
Liabilities settled with stock, value					8,000
Loss on settlement of accrued liabilities					$ (10,000)
Open market [Member]
Stock issued new, shares				407,500
Proceeds from sale of common stock				$ 1,291,285