SRAX (SRAX) 10-Q 14 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 13, 2019
Document And Entity Information
Entity Registrant Name	SRAX, Inc.
Entity Central Index Key	0001538217
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,997,452
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2019		Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 2,843,000		$ 2,785,000
Accounts receivable, net	1,241,000		1,829,000
Prepaid expenses	866,000		467,000
Other current assets	301,000		387,000
Total current assets	5,251,000		5,468,000
Property and equipment, net	205,000		192,000
Goodwill	15,645,000		15,645,000
Intangible assets, net	1,874,000		1,763,000
Right-of-Use Asset - Long Term Portion	429,000	[1]
Other assets	130,000		51,000
Total assets	23,534,000		23,119,000
Current liabilities:
Accounts payable and accrued expenses	1,594,000		3,575,000
Warrant Derivative liabilities	4,052,000		5,442,000
Other current liabilities	906,000
Total current liabilities	6,552,000		9,017,000
Long term liabilities:
Lease Obligation - Long Term Portion	295,000	[1]
Total liabilities	6,847,000		9,017,000
Commitments and contingencies (Note 11)
Stockholders' equity:
Preferred stock, authorized 50,000,000 shares, $0.001 par value, no shares issued or outstanding
Additional paid in capital	47,925,000		32,870,000
Accumulated deficit	(31,252,000)		(18,778,000)
Total stockholders' equity	16,687,000		14,102,000
Total liabilities and stockholders' equity	23,534,000		23,119,000
Common Class A [Member]
Stockholders' equity:
Common stock	14,000		10,000
Common Class B [Member]
Stockholders' equity:
Common stock
[1]	As of September 30, 2019, we have no "finance leases" as defined in ASC 842.

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Preferred Stock, shares authorized	50,000,000	50,000,000
Preferred Stock, value per share	$ 0.001	$ 0.001
Preferred Stock, shares issued
Preferred stock, shares outstanding
Common Class A [Member]
Common Stock, shares authorized	250,000,000	250,000,000
Common Stock, par value per share	$ 0.001	$ 0.001
Common Stock, shares issued	13,997,452	10,109,530
Common Stock, shares outstanding	13,997,452	10,109,530
Common Class B [Member]
Common Stock, shares authorized	9,000,000	9,000,000
Common Stock, par value per share	$ 0.001	$ 0.001
Common Stock, shares issued
Common Stock, shares outstanding

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Revenue	$ 1,001,000	$ 2,015,000	$ 2,497,000	$ 8,824,000
Cost of revenue	322,000	764,000	1,075,000	2,902,000
Gross profit	679,000	1,251,000	1,422,000	5,922,000
Operating expense:
General, selling and administrative expense	5,389,000	4,869,000	14,994,000	14,392,000
Loss from operations	(4,710,000)	(3,618,000)	(13,572,000)	(8,470,000)
Other income (expense):
Interest expense	(108,000)	(319,000)	(359,000)	(1,241,000)
Amortization of debt issuance costs		(619,000)		(1,538,000)
Total Interest Expense	(108,000)	(938,000)	(359,000)	(2,779,000)
Gain (loss) on sale of Assets		23,978,000	395,000	23,956,000
Exchange gain (loss)		10,000	14,000	5,000
Loss on repricing of equity warrants			(342,000)
Change in fair value of warrant derivative liabilities	6,227,000	1,839,000	1,390,000	4,549,000
Total other income (expense)	6,119,000	24,889,000	1,098,000	25,731,000
Loss before provision for income taxes	1,409,000	21,271,000	(12,474,000)	17,261,000
Provision for income taxes
Net income (loss)	$ 1,409,000	$ 21,271,000	$ (12,474,000)	$ 17,261,000
Net income (loss) per share, basic and diluted	$ 0.11	$ 2.10	$ (0.96)	$ 1.71
Weighted average shares outstanding - basic and diluted	12,933,585	10,112,804	12,965,773	10,121,717

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Common stock to be issued [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2017		$ 10,000	$ 880,000	$ 32,547,000	$ (27,522,000)	$ 5,915,000
Balance, shares at Dec. 31, 2017		9,910,565	150,000
Shares issued for services			$ (860,000)	859,000		(1,000)
Shares issued for services, shares		150,000	(150,000)
Stock based compensation				286,000		286,000
Stock based compensation, shares		129,950
Common stock issued to directors			$ (10,000)	40,000		30,000
Common stock issued to directors, shares		22,556
Net loss					11,000	11,000
Balance at Mar. 31, 2018		$ 10,000	$ 10,000	33,732,000	(27,511,000)	6,241,000
Balance, shares at Mar. 31, 2018		10,213,071
Balance at Dec. 31, 2017		$ 10,000	$ 880,000	32,547,000	(27,522,000)	5,915,000
Balance, shares at Dec. 31, 2017		9,910,565	150,000
Net loss						17,261,000
Balance at Sep. 30, 2018		$ 10,000		32,748,000	(10,261,000)	22,497,000
Balance, shares at Sep. 30, 2018		10,183,330
Balance at Mar. 31, 2018		$ 10,000	$ 10,000	33,732,000	(27,511,000)	6,241,000
Balance, shares at Mar. 31, 2018		10,213,071
Exercise of warrants				50,000		50,000
Exercise of warrants, shares		61,482
Shares issued for services			$ 860,000			860,000
Shares issued for services, shares			150,000
Stock based compensation				136,000		136,000
Stock based compensation, shares
Net loss					(4,021,000)	(4,021,000)
Balance at Jun. 30, 2018		$ 10,000	$ 870,000	33,918,000	(31,532,000)	3,266,000
Balance, shares at Jun. 30, 2018		10,274,553	150,000
Exercise of warrants				50,000		50,000
Exercise of warrants, shares		16,667
Shares issued for services			$ (860,000)	860,000
Shares issued for services, shares		150,000	(150,000)
Stock based compensation			$ (10,000)	605,000		595,000
Stock based compensation, shares		157,108
Conversion of debentures to common stock				300,000		300,000
Conversion of debentures to common stock, shares		100,002
Common stock repurchases with SRAX Md sale				(2,985,000)		(2,985,000)
Common stock repurchases with SRAX Md sale, shares		(515,000)
Net loss					21,271,000	21,271,000
Balance at Sep. 30, 2018		$ 10,000		32,748,000	(10,261,000)	22,497,000
Balance, shares at Sep. 30, 2018		10,183,330
Balance at Dec. 31, 2018		$ 10,000		32,870,000	(18,778,000)	14,102,000
Balance, shares at Dec. 31, 2018		10,109,530
Share based compensation, related to employees				121,000		121,000
Net loss					(5,784,000)	(5,784,000)
Balance at Mar. 31, 2019		$ 10,000		32,991,000	(24,562,000)	8,439,000
Balance, shares at Mar. 31, 2019		10,109,530
Balance at Dec. 31, 2018		$ 10,000		32,870,000	(18,778,000)	14,102,000
Balance, shares at Dec. 31, 2018		10,109,530
Net loss						(12,474,000)
Balance at Sep. 30, 2019		$ 14,000		47,925,000	(31,252,000)	16,687,000
Balance, shares at Sep. 30, 2019		13,997,452
Balance at Mar. 31, 2019		$ 10,000		32,991,000	(24,562,000)	8,439,000
Balance, shares at Mar. 31, 2019		10,109,530
Share based compensation, related to employees				325,000		325,000
Sale of common stock and warrants for cash		$ 2,000		6,227,000		6,229,000
Sale of common stock and warrants for cash, shares		1,687,825
Exercise of warrants		$ 1,000		1,145,000		1,146,000
Exercise of warrants, shares		328,667
Shares issued as collateral
Shares issued as collateral, shares		220,000
Loss on repricing of equity warrants				342,000		342,000
Share of common stock in private placement				1,000,000		1,000,000
Share of common stock in private placement, shares		200,000
Net loss					(8,099,000)	(8,099,000)
Balance at Jun. 30, 2019		$ 13,000		42,030,000	(32,661,000)	9,382,000
Balance, shares at Jun. 30, 2019		12,546,022
Share based compensation, related to employees				329,000		329,000
Sale of common stock and warrants for cash		$ 1,000		4,967,000		4,968,000
Sale of common stock and warrants for cash, shares		1,524,996
Common stock issued for exercise of warrants				50,000		50,000
Common stock issued for exercise of warrants, shares		13,333
Shares issued for services				330,000		330,000
Shares issued for services, shares		75,000
Shares retired - issued as collateral
Shares retired - issued as collateral, shares		(220,000)
Shares issued for settlement of original issue discount				219,000		219,000
Shares issued for settlement of original issue discount, shares		58,101
Net loss					1,409,000	1,409,000
Balance at Sep. 30, 2019		$ 14,000		$ 47,925,000	$ (31,252,000)	$ 16,687,000
Balance, shares at Sep. 30, 2019		13,997,452

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net (Loss) income	$ (12,474,000)	$ 17,261,000
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Stock based compensation	775,000	1,757,000
Service rendered for stock option exercise price	50,000
Amortization of debt issuance costs		331,000
Accretion of debenture discount and warrants		1,206,000
Change in fair value of warrant derivative liabilities	(1,390,000)	(4,549,000)
Loss on repricing of equity warrants	342,000
Gain on sale of SRAXmd	(395,000)	(23,956,000)
Loss on common stock issued to settle original issue discount	69,000
Provision for bad debts	271,000	(9,000)
Depreciation expense	53,000	31,000
Amortization of intangibles	781,000	512,000
Changes in operating assets and liabilities:
Accounts receivable	1,463,000	1,817,000
Prepaid expenses	(69,000)	(197,000)
Other current assets	86,000	(119,000)
Accounts payable and accrued expenses	(2,889,000)	(3,006,000)
Other current liabilities	772,000
Net cash used in operating activities	(12,555,000)	(8,921,000)
Cash flows from investing activities
Proceeds from SRAXmd	307,000	22,959,000
Purchase of equipment	(66,000)	(30,000)
Development of software	(892,000)	(702,000)
Other assets	(79,000)
Net cash (used in) provided by investing activities	(730,000)	22,227,000
Cash flows from financing activities
Proceeds from the issuance of common stock units	12,197,000
Proceeds from the issuance of common stock for exercise of warrants	1,146,000	100,000
Net cash provided by financing activities	13,343,000	100,000
Net increase in cash and cash equivalents	58,000	13,406,000
Cash and cash equivalents, beginning of period	2,785,000	1,017,000
Cash and cash equivalents, end of period	2,843,000	14,423,000
Supplemental schedule of cash flow information
Cash paid for interest	140,000	759,000
Cash paid for taxes
Supplemental schedule of noncash financing activities
Recorded right-of-use asset	(532,000)
Recorded lease obligation	532,000
Vesting of common stock award		150,000
Common stock issued to settle liability	219,000
Shares issued for convertible note conversions		300,000
Issuance of common stock to be issued		$ 880,000

Basis of Presentation and Signi

Basis of Presentation and Significant Account Policies	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation and Significant Account Policies	NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNT POLICIES Effective August 25, 2019, the Company amended its certificate of incorporation to change the name of the Company from Social Reality, Inc. to SRAX, Inc. The accompanying unaudited interim condensed consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to prevent the information presented from being misleading. These financial statements should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K, which contains audited financial information for the two years in the period ended December 31, 2018. Description of Business We are a digital marketing and data technology company with tools to reach and reveal valuable audiences with marketing and advertising communication. Our machine-learning technology analyzes marketing data to identify brands and content owners’ core consumers and their characteristics across marketing channels. In addition to our business services and technologies, we also operate a direct to consumer platform, BIGToken, which enables consumers to own, manage and sell access to their digital identity and data. This provides us with a direct consumer relationship and gives us valuable proprietary data. We derive our revenues from: ● sales of digital advertising campaigns to advertising agencies and brands; ● sale and licensing of our SRAXir ● creation of custom platforms for buying media on SRAX ● sales of proprietary consumer data. The core elements of our business are: ● Social Reality Ad Exchange or “SRAX” Real Time Bidding sell side and buy side representation SRAX ● SRAXauto ● SRAXcore is our generalized services and technologies supporting brands and agencies in data management, audience optimization, and multi-channel and omnichannel media and marketing services ● SRAXshopper ● SRAXir ● BIGToken Basis of Presentation The accompanying unaudited condensed consolidated financial statements and notes thereto are unaudited. The unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in the Company’s annual financial statements have been condensed or omitted. The December 31, 2018 condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by GAAP. These interim financial statements, in the opinion of management, reflect all normal recurring adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the interim three and nine month periods ended September 30, 2019 and 2018. The results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year ending December 31, 2019 or for any future period. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the year ended December 31, 2018, included in the Company’s annual report on Form 10-K filed with the SEC on April 16, 2019. Uses and Sources of Liquidity – Going Concern The Company has incurred losses since its inception and has not demonstrated an ability to generate significant operational cashflow and have not yet achieved profitable operations. There can be no assurance that profitable operations will ever be achieved, or if achieved, could be sustained on a continuing basis. In addition, our new business initiatives and products, including BIGToken, will require significant additional capital. These factors create substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. In making this assessment the Company performed a comprehensive analysis of its current circumstances including: its financial position at September 31, 2019, its cash flow and cash usage forecasts for the period covering one-year from the issuance date of this Quarterly Report and its current capital structure including outstanding warrants and other equity-based instruments and its obligations and debts. Impact of Recently Issued Accounting Standards Leases In February 2016, the FASB issued ASU No. 2016-02 (“ASC 842”), Leases, to require lessees to recognize all leases, with certain exceptions, on the balance sheet, while recognition on the statement of operations will remain similar to current lease accounting. Subsequently, the FASB issued ASU No.2018-10, Codification Improvements to Topic 842, Leases, ASU No. 2018-11, Targeted Improvements, ASU No. 2018-20, Narrow-Scope Improvements for Lessors, and ASU 2019-01, Codification Improvements, to clarify and amend the guidance in ASU No. 2016-02. ASC 842 eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. This standard is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. We are using a modified retrospective adoption approach, is required to recognize and measure leases existing at the beginning of the adoption period, with certain practical expedients available. We adopted the standard effective January 1, 2019. The standard allows a number of optional practical expedients to use for transition. The Company choose the certain practical expedients allowed under the transition guidance which permitted us to not to reassess any existing or expired contracts to determine if they contain embedded leases, to not to reassess our lease classification on existing leases, to account for lease and non-lease components as a single lease component for equipment leases, and whether initial direct costs previously capitalized would qualify for capitalization under FASB ASC 842. The new standard also provides practical expedients and recognition exemptions for an entity’s ongoing accounting policy elections. The Company has elected the short-term lease recognition for all leases that qualify, which means that we do not recognize a ROU asset and lease liability for any lease with a term of twelve months or less. The most significant impact of adopting the standard was the recognition of ROU assets and lease liabilities for operating leases on the Company’s consolidated balance sheet but it did not have an impact on the Company’s consolidated statements of operations or consolidated statements of cash flows. We recorded a ROU and the related operating lease liability for our long-term facilities lease. The below table summarizes these lease asset and liability accounts presented on our accompanying Condensed Consolidated Balance Sheets: Operating Leases* Condensed Consolidated Balance Sheet Caption Balance as of September 30, 2019 Operating lease right-of-use assets - non-current Right of Use Asset $ 429,000 Operating lease liabilities - current Other Current Liabilities $ 134,000 Operating lease liabilities - non-current Lease Obligation – Long-Term $ 295,000 Total operating lease liabilities $ 429,000 * As of September 30, 2019, we have no “finance leases” as defined in ASC 842 Components of Lease Expense We recognize lease expense on a straight-line basis over the term of our operating leases, as reported within “selling, general and administrative” expense on the accompanying Condensed Consolidated Statement of Operations. The components of our aggregate lease expense is summarized below: Three Months Ended Nine Months Ended Operating lease cost 41,000 125,000 Variable lease cost — — Short-term lease cost 33,000 102,000 Total lease cost 74,000 227,000 Weighted Average Remaining Lease Term and Applied Discount Rate Weighted Average Remaining Lease Term Weighted Average Discount Rate Operating leases as of September 30, 2019 4.00 years 18 % Future Contractual Lease Payments as of September 30, 2019 The below table summarizes our (i) minimum lease payments over the next five years, (ii) lease arrangement implied interest, and (iii) present value of future lease payments: Operating Leases - future payments 2019 (remaining) $ 41,000 2020 163,000 2021 163,000 2022 163,000 2023 136,000 Total future lease payments, undiscounted 666,000 Less: Implied interest (237,000 ) Present value of operating lease payments 429,000 Effective January 1, 2018, we adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230) In February 2018, the FASB issued ASU 2018-02: Income Statement – Reporting Comprehensive Income (Topic 220) In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement, Accounting Guidance Issued but Not Adopted at September 30, 2019 In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework — In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information for credit loss estimates. In addition, new disclosures are required. The ASU is effective for fiscal years beginning after December 15, 2019. We are currently evaluating the impact of adopting this guidance. During the nine months ended September 30, 2019, the Financial Accounting Standards Board (“FASB”) has not issued any Accounting Standard Updates which are expected to have a material retrospective or future effect on the consolidated financial statements.

Warrant Derivative Liabilities

Warrant Derivative Liabilities	9 Months Ended
	Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Warrant Derivative Liabilities	NOTE 2 – WARRANT DERIVATIVE LIABILITIES The discussion below relates to the following (collectively, the “Derivative Liabilities”): 1. In January 2017, the Company issued Series A in our registered direct and concurrent private placement. 2. In April and October 2017, the Company issued the Series A1 Warrants and Series A2 Warrants in connection with the private placement of secured convertible debentures; and 3. In November 2018, the Company issued the Series B1 Warrants upon redemption of the outstanding convertible debentures issued in April and October 2017, pursuant to the terms of such debentures. The Derivative Warrant Instruments have been accounted for utilizing ASC 815 “Derivatives and Hedging”. The Company identified embedded features in the Derivative Warrant Instruments which caused the warrants to be classified as a liability. These embedded features included the right for the holders to request for the Company to cash settle the Warrant Instruments from the Holder by paying to the Holder an amount of cash equal to the Black-Scholes value of the remaining unexercised portion of the Derivative Warrant Instruments on the date of the consummation of a fundamental transaction. The accounting treatment of derivative financial instruments requires that the Company treat the whole instrument as liability and record the fair value of the instrument as a derivative as of the inception date of the instrument and to adjust the fair value of the instrument as of each subsequent balance sheet dates. The Warrant derivative liabilities are comprised of the following: Debenture Warrant Liability Leapfrog Warrant Liability Derivative Liability Balance as of December 31, 2018 $ 4,323,000 $ 623,000 $ 496,000 Adjustments to warrants outstanding — — — Adjustment to fair value 3,892,000 539,000 407,000 Balance as of June 30, 2019 8,215,000 1,162,000 903,000 Adjustments to warrants outstanding - - - Adjustments to fair value (4,948,000 ) (717,000 ) (562,000 ) Balance as of September 30, 2019 $ 3,267,000 $ 445,000 $ 341,000 Debenture Warrant Liability Leapfrog Warrant Liability Derivative Liability Balance as of December 31, 2017 $ 7,257,000 $ 1,873,000 $ 2,026,000 Adjustments to warrants outstanding — — (329,000 ) Adjustment to fair value (1,548,000 ) (360,000 ) (474,000 ) Balance as of June 30, 2018 5,709,000 1,513,000 1,223,000 Adjustments to warrants outstanding - - - Adjustments to fair value (1,240,000 ) (335,000 ) (264,000 ) Balance as of September 30, 2018 $ 4,469,000 $ 1,178,000 $ 959,000

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Stockholders' Equity	NOTE 3 – STOCKHOLDERS’ EQUITY Common Stock In August 2019, the Company entered into a settlement agreement with a lender. Based on the settlement agreement, the lender and the Company agreed to cancel the 200,000 shares of common stock issued as collateral. As of the settlement date, the Company owed the lender $150,000 for the original issue discount. The Company issued 58,101 shares of the Company’s common stock as payment for the original issued discount issue. The fair value of the shares on the date of issuance was $219,000. On August 12, 2019, the Company sold 1,525,000 shares of the Company’s Class A common stock, par value $0.001 per share (the “Common Stock”) and Series A warrants (“Series A Warrants”) to purchase 965,500 shares of Common Stock at a purchase price per share of $3.60 (the “Registered Direct Offering”) resulting in gross proceeds to the Company of $5,490,000 and net proceeds of $4,968,000 after cash payments to the placement agents and legal fees. Concurrently with the offering the Company also issued the Investors in a private placement (“Private Placement”) (i) Series B warrants (“Series B Warrants”) to purchase an aggregate of 1,525,000 shares of Common Stock and (ii) Series C warrants (“Series C Warrants”) to purchase an aggregate of 965,500 shares of Common Stock (collectively, the Series B Warrants and Series C Warrants are referred to herein as the “Private Warrants”). The Series A Warrants are immediately exercisable upon issuance, have a term of ninety (90) days from the date of issuance, and have an exercise price of $3.60 per share. The Series B Warrants and Series C Warrants are not exercisable for a period of six (6) months following the issuance date, have an exercise price of $4.00 per share, and expire on October 1, 2022. Additionally, the Series C Warrants vest ratably from time to time in proportion to such Investor’s exercise of the Series A Warrants. The 1,525,000 shares of Common Stock and Series A Warrants to purchase 965,500 shares of Common Stock sold in the Registered Direct Offering were offered and sold by the Company pursuant to an effective “shelf” registration statement on Form S-3 (File No. 333-214644), which was declared effective on November 28, 2016. The Private Warrants and the Placement Agent Warrants (as defined below) were sold and issued without registration under the Securities Act of 1933, as amended (the “Securities Act”), in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act as transactions not involving a public offering and Rule 506 promulgated under the Securities Act as sales to accredited investors, and in reliance on similar exemptions under applicable state laws. In connection with the Registered Direct Offering and the Private Placement, the Company entered into engagement agreements (the “PA Agreements”) with The Special Equities Group, LLC, a division of Bradley Woods & Co. Ltd., and WestPark Capital, Inc. (the “Placement Agents”) on August 11, 2019 and August 9, 2019, respectively. Pursuant to the PA Agreements, the Placement Agents received (i) aggregate cash fees of 7.0% for one Placement Agent or 8.0% for the other Placement Agent, of their respective portions of the gross proceeds received by the Company from the sale of the securities, (ii) approximately $60,000 for certain expenses, and (iii) warrants to purchase up to 59,668 shares of Common Stock (the “Placement Agent Warrants”), representing 6.0% of the Common Stock and Series B Warrants sold by one of the Placement Agents in the Registered Direct Offering. The Placement Agent Warrants have substantially the same terms as the Series B Warrants, except that the exercise price of the Placement Agent Warrants is $4.50 per share and has a four (4) year term beginning one (1) year after issuance. Additionally, upon the exercise of up to 1,027,778 Series A Warrants, 650,701 Series B Warrants, and 1,027,778 Series C Warrants sold Registered Direct Offering and Private Placement, we have agreed to pay one of the Placement Agents a cash fee of 8% of proceeds from the exercise of such warrants exercised within 120 days following the closing of this offering or a cash fee of 5% of the proceeds from the exercise of such warrants after such 120 day period following the closing of this offering. One of the Placement Agents will be entitled to the foregoing cash commission and fee in the previous sentence with respect to certain investors if such investors provide capital to us in any future private or public offering, or other financing or capital-raising transaction during the six (6) months following the expiration or termination of our engagement of such Placement Agent. During the quarter ended June 30, 2019, the Company sold 1,687,825 shares of the Company’s common stock for gross proceeds of $6,751,300, or $4.00 per share. The net proceeds after the placement agent fees, of approximately $523,000, was approximately $6,229,000. In conjunction with this offering, the Company entered into a placement agent agreement, which provided for the placement agent to receive a cash fee equal to 7.0% of the gross proceeds received by the Company from the sale of the shares of common stock, warrants to purchase up to 101,270 shares of Common Stock at an exercise price of $5.00 per share and reimbursement of up to $50,000 for offering related expense. In July 2019, we issued a 75,000 share of the Company’s common stock as compensation. On the date of grant the fair value of the shares was $374,000. The fair value is be expense over a one-year service period. For the three and nine months ended September 30, 2019, the compensation expense was $94,000 and $138,000 respectively. Stock Options During the three-month period ended September 30, 2019, the Company issue no stock options. During the three-month period ended June 30, 2019 the Company issued 11,252 options to purchase the Company’s common stock at a price of $5.49 to our non-executive directors. Each of our four non-executive directors received 2,813 options that vest 1/4 th On March 27, 2019, an aggregate of 685,000 common stock purchase options, having an exercise price of $3.42 per share, were granted to our employees and members of the management team. The option has a grant date value of $1,513,137, calculated using the Black-Scholes option pricing model. This expense associated with this option award will be recognized in operating expenses ratably over the vesting period. The expected option life assumption is estimated based on the simplified method. Accordingly, the Company has utilized the average of the contractual term of the options and the weighted average vesting period for all options to calculate the expected option term. The risk-free interest rate assumption is based upon observed interest rates appropriate for the expected term of our employee stock options. In April 2019, the Company amended its expected volatility assumption from using exclusively a historical volatility. The Company calculates its expected volatility assumption based on a its historical and implied volatilities over the expected life of the stock-based award. We do not anticipate paying dividends on the common stock in the foreseeable future. We recognize stock-based compensation expense over the vesting period using the straight-line single option method. Stock-based compensation expense is recognized only for those awards that vest. We account for the forfeitures of unvested awards as they occur. Total stock-based compensation expense for the three-month period ended September 30, 2019 and 2018 was $329,000 and $605,000, respectively. Total stock-based compensation expense for the nine-month period ended September 30, 2019 and 2018 was $775,000 and $1,757,000, respectively. The expense is included in its entirety within General, selling and administrative expenses. Transactions involving our stock options for the nine months ended September 30, 2019 include the follows: Number of Shares Weighted Average Strike Price/Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (1) Outstanding — December 31, 2018 547,662 $ 5.27 2.7 $ — Granted (weighted-average fair value of $2.21 per share) 696,252 3.45 2.5 — Exercised — — — — Forfeited (45,062 ) 7.34 — — Outstanding — September 30, 2019 1,198,852 4.14 2.5 — Vested and exercisable — September 30, 2019 (270,936 ) 5.85 2.5 — Unvested and non-exercisable - September 30, 2019 927,916 $ 3.68 2.4 $ — (1) Aggregate intrinsic value represents the difference between the exercise price of the option and the closing market price of our common stock on September 30, 2019, which was $2.30 per share Warrants On May 13, 2019 the Company entered into a consulting agreement with a contractor for services related to BIGtoken. The agreement provides for 300,000 warrants with vesting conditions based on BIGtoken user growth in Asia. The warrants were valued using the Black Scholes option pricing model at a total of $1,138,332 based on the five-year term, implied volatility of 101%, a risk free equivalent yield of 1.8% and stock price of $4.99. We typically issue warrants to purchase shares of our common stock to investors as part of a financing transaction or in connection with services rendered by placement agents and consultants. Our outstanding warrants expire on varying dates through November 2021. A summary of warrant activity is as follows: Transactions involving our stock warrants for the nine months ended September 30, 2019 include the following: Number of Shares Weighted Average Strike Price/Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (1) Outstanding — December 31, 2018 4,325,423 $ 3.77 2.9 $ 3,849,626 Granted 2,919,941 3.98 1.9 — Exercised (342,000 ) 3.50 0.7 1,196,147 Forfeited (70,000 ) 7.50 — — Outstanding — September 30, 2019 6,833,364 3.84 2.3 600,616 Vested and exercisable — September 30, 2019 6,533,364 3.80 2.2 600,616 Unvested and non-exercisable - September 30, 2019 300,000 $ 4.75 4.6 $ — The fair value of each warrant grant was estimated on the date of grant using Black-Scholes with the following weighted average assumptions: Expected life (years) 1 - 7 Risk-free interest rate 1.31% - 2.3 % Volatility 100% - 167 % Dividend yield 0 % (1) Aggregate intrinsic value represents the difference between the exercise price of the warrant and the closing market price of our common stock on September 30, 2019, which was $2.30 per share. Total intrinsic value of warrants exercised during the three and nine months ended September 30, 2019 was $49,999 and $1,196,147 respectively. Net loss per share Basic loss per share is computed by dividing the net loss by the weighted average number of common shares issued and outstanding during the period reported. Diluted loss per share gives effect to all potentially dilutive common shares outstanding at the end of the reporting period, including stock options and share purchase warrants, using the treasury stock method. As the Company incurred a net loss during the three and nine months ended September 30, 2019, the computation of diluted loss per share does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on loss per share. The following outstanding instruments could have a dilutive effect in the future: September 30, 2019 2018 (unaudited) (unaudited) Warrants 6,833,364 2,196,700 Stock options 1,198,852 370,600 Total 8,032,216 2,567,300

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 4 – COMMITMENTS AND CONTINGENCIES BIGtoken Point liability During the three and nine months ended September 30, 2019 the Company instituted a policy that allows BIGtoken user to redeem outstanding BIGtoken points for cash if their account and point balances meet certain criteria. As of September 30, 2019, the Company has estimated the future liability for point redemptions to be $772,000. The Company considered the total number of points outstanding, the conversion rate in which points are redeemable for cash. Due to the recency of the BIGtoken platform and the ability for users to redeem points for cash, the Company does not have sufficient history to estimate account attrition and the associate breakage rates for outstanding points. Therefore, the Company utilized a breakage factor of zero percent as of September 30, 2019 in determining the estimated liability.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	NOTE 5 – SUBSEQUENT EVENTS The Company has evaluated all events that occurred after the balance sheet date through the date when the financial statements were issued to determine if they must be reported. The Management of the Company determined that there were no reportable subsequent events to disclose.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Account Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Description of Business	Description of Business We are a digital marketing and data technology company with tools to reach and reveal valuable audiences with marketing and advertising communication. Our machine-learning technology analyzes marketing data to identify brands and content owners’ core consumers and their characteristics across marketing channels. In addition to our business services and technologies, we also operate a direct to consumer platform, BIGToken, which enables consumers to own, manage and sell access to their digital identity and data. This provides us with a direct consumer relationship and gives us valuable proprietary data. We derive our revenues from: ● sales of digital advertising campaigns to advertising agencies and brands; ● sale and licensing of our SRAXir ● creation of custom platforms for buying media on SRAX ● sales of proprietary consumer data. The core elements of our business are: ● Social Reality Ad Exchange or “SRAX” Real Time Bidding sell side and buy side representation SRAX ● SRAXauto ● SRAXcore is our generalized services and technologies supporting brands and agencies in data management, audience optimization, and multi-channel and omnichannel media and marketing services ● SRAXshopper ● SRAXir ● BIGToken
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements and notes thereto are unaudited. The unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in the Company’s annual financial statements have been condensed or omitted. The December 31, 2018 condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by GAAP. These interim financial statements, in the opinion of management, reflect all normal recurring adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the interim three and nine month periods ended September 30, 2019 and 2018. The results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year ending December 31, 2019 or for any future period. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the year ended December 31, 2018, included in the Company’s annual report on Form 10-K filed with the SEC on April 16, 2019.
Uses and Sources of Liquidity - Going Concern	Uses and Sources of Liquidity – Going Concern The Company has incurred losses since its inception and has not demonstrated an ability to generate significant operational cashflow and have not yet achieved profitable operations. There can be no assurance that profitable operations will ever be achieved, or if achieved, could be sustained on a continuing basis. In addition, our new business initiatives and products, including BIGToken, will require significant additional capital. These factors create substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. In making this assessment the Company performed a comprehensive analysis of its current circumstances including: its financial position at September 31, 2019, its cash flow and cash usage forecasts for the period covering one-year from the issuance date of this Quarterly Report and its current capital structure including outstanding warrants and other equity-based instruments and its obligations and debts.
Impact of Recently Issued Accounting Standards	Impact of Recently Issued Accounting Standards Leases In February 2016, the FASB issued ASU No. 2016-02 (“ASC 842”), Leases, to require lessees to recognize all leases, with certain exceptions, on the balance sheet, while recognition on the statement of operations will remain similar to current lease accounting. Subsequently, the FASB issued ASU No.2018-10, Codification Improvements to Topic 842, Leases, ASU No. 2018-11, Targeted Improvements, ASU No. 2018-20, Narrow-Scope Improvements for Lessors, and ASU 2019-01, Codification Improvements, to clarify and amend the guidance in ASU No. 2016-02. ASC 842 eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. This standard is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. We are using a modified retrospective adoption approach, is required to recognize and measure leases existing at the beginning of the adoption period, with certain practical expedients available. We adopted the standard effective January 1, 2019. The standard allows a number of optional practical expedients to use for transition. The Company choose the certain practical expedients allowed under the transition guidance which permitted us to not to reassess any existing or expired contracts to determine if they contain embedded leases, to not to reassess our lease classification on existing leases, to account for lease and non-lease components as a single lease component for equipment leases, and whether initial direct costs previously capitalized would qualify for capitalization under FASB ASC 842. The new standard also provides practical expedients and recognition exemptions for an entity’s ongoing accounting policy elections. The Company has elected the short-term lease recognition for all leases that qualify, which means that we do not recognize a ROU asset and lease liability for any lease with a term of twelve months or less. The most significant impact of adopting the standard was the recognition of ROU assets and lease liabilities for operating leases on the Company’s consolidated balance sheet but it did not have an impact on the Company’s consolidated statements of operations or consolidated statements of cash flows. We recorded a ROU and the related operating lease liability for our long-term facilities lease. The below table summarizes these lease asset and liability accounts presented on our accompanying Condensed Consolidated Balance Sheets: Operating Leases* Condensed Consolidated Balance Sheet Caption Balance as of September 30, 2019 Operating lease right-of-use assets - non-current Right of Use Asset $ 429,000 Operating lease liabilities - current Other Current Liabilities $ 134,000 Operating lease liabilities - non-current Lease Obligation – Long-Term $ 295,000 Total operating lease liabilities $ 429,000 * As of September 30, 2019, we have no “finance leases” as defined in ASC 842 Components of Lease Expense We recognize lease expense on a straight-line basis over the term of our operating leases, as reported within “selling, general and administrative” expense on the accompanying Condensed Consolidated Statement of Operations. The components of our aggregate lease expense is summarized below: Three Months Ended Nine Months Ended Operating lease cost 41,000 125,000 Variable lease cost — — Short-term lease cost 33,000 102,000 Total lease cost 74,000 227,000 Weighted Average Remaining Lease Term and Applied Discount Rate Weighted Average Remaining Lease Term Weighted Average Discount Rate Operating leases as of September 30, 2019 4.00 years 18 % Future Contractual Lease Payments as of September 30, 2019 The below table summarizes our (i) minimum lease payments over the next five years, (ii) lease arrangement implied interest, and (iii) present value of future lease payments: Operating Leases - future payments 2019 (remaining) $ 41,000 2020 163,000 2021 163,000 2022 163,000 2023 136,000 Total future lease payments, undiscounted 666,000 Less: Implied interest (237,000 ) Present value of operating lease payments 429,000 Effective January 1, 2018, we adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230) In February 2018, the FASB issued ASU 2018-02: Income Statement – Reporting Comprehensive Income (Topic 220) In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement, Accounting Guidance Issued but Not Adopted at September 30, 2019 In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework — In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information for credit loss estimates. In addition, new disclosures are required. The ASU is effective for fiscal years beginning after December 15, 2019. We are currently evaluating the impact of adopting this guidance. During the nine months ended September 30, 2019, the Financial Accounting Standards Board (“FASB”) has not issued any Accounting Standard Updates which are expected to have a material retrospective or future effect on the consolidated financial statements.

Basis of Presentation and Sig_3

Basis of Presentation and Significant Account Policies (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Schedule of Operating Lease Assets and Liabilities	The below table summarizes these lease asset and liability accounts presented on our accompanying Condensed Consolidated Balance Sheets: Operating Leases* Condensed Consolidated Balance Sheet Caption Balance as of September 30, 2019 Operating lease right-of-use assets - non-current Right of Use Asset $ 429,000 Operating lease liabilities - current Other Current Liabilities $ 134,000 Operating lease liabilities - non-current Lease Obligation – Long-Term $ 295,000 Total operating lease liabilities $ 429,000 * As of September 30, 2019, we have no “finance leases” as defined in ASC 842
Schedule of Component of Lease Expense	The components of our aggregate lease expense is summarized below: Three Months Ended Nine Months Ended Operating lease cost 41,000 125,000 Variable lease cost — — Short-term lease cost 33,000 102,000 Total lease cost 74,000 227,000
Schedule of Weighted Average Remaining Lease Term and Discount Rate	Weighted Average Remaining Lease Term and Applied Discount Rate Weighted Average Remaining Lease Term Weighted Average Discount Rate Operating leases as of September 30, 2019 4.00 years 18 %
Schedule of Future Minimum Contractual Lease Payments	The below table summarizes our (i) minimum lease payments over the next five years, (ii) lease arrangement implied interest, and (iii) present value of future lease payments: Operating Leases - future payments 2019 (remaining) $ 41,000 2020 163,000 2021 163,000 2022 163,000 2023 136,000 Total future lease payments, undiscounted 666,000 Less: Implied interest (237,000 ) Present value of operating lease payments 429,000

Warrant Derivative Liabilities

Warrant Derivative Liabilities (Tables)	9 Months Ended
	Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Warrant Derivative Liability	The Warrant derivative liabilities are comprised of the following: Debenture Warrant Liability Leapfrog Warrant Liability Derivative Liability Balance as of December 31, 2018 $ 4,323,000 $ 623,000 $ 496,000 Adjustments to warrants outstanding — — — Adjustment to fair value 3,892,000 539,000 407,000 Balance as of June 30, 2019 8,215,000 1,162,000 903,000 Adjustments to warrants outstanding - - - Adjustments to fair value (4,948,000 ) (717,000 ) (562,000 ) Balance as of September 30, 2019 $ 3,267,000 $ 445,000 $ 341,000 Debenture Warrant Liability Leapfrog Warrant Liability Derivative Liability Balance as of December 31, 2017 $ 7,257,000 $ 1,873,000 $ 2,026,000 Adjustments to warrants outstanding — — (329,000 ) Adjustment to fair value (1,548,000 ) (360,000 ) (474,000 ) Balance as of June 30, 2018 5,709,000 1,513,000 1,223,000 Adjustments to warrants outstanding - - - Adjustments to fair value (1,240,000 ) (335,000 ) (264,000 ) Balance as of September 30, 2018 $ 4,469,000 $ 1,178,000 $ 959,000

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Schedule of Stock Options Activity	Transactions involving our stock options for the nine months ended September 30, 2019 include the follows: Number of Shares Weighted Average Strike Price/Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (1) Outstanding — December 31, 2018 547,662 $ 5.27 2.7 $ — Granted (weighted-average fair value of $2.21 per share) 696,252 3.45 2.5 — Exercised — — — — Forfeited (45,062 ) 7.34 — — Outstanding — September 30, 2019 1,198,852 4.14 2.5 — Vested and exercisable — September 30, 2019 (270,936 ) 5.85 2.5 — Unvested and non-exercisable - September 30, 2019 927,916 $ 3.68 2.4 $ —
Schedule of Stock Warrants Activity	Transactions involving our stock warrants for the nine months ended September 30, 2019 include the following: Number of Shares Weighted Average Strike Price/Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (1) Outstanding — December 31, 2018 4,325,423 $ 3.77 2.9 $ 3,849,626 Granted 2,919,941 3.98 1.9 — Exercised (342,000 ) 3.50 0.7 1,196,147 Forfeited (70,000 ) 7.50 — — Outstanding — September 30, 2019 6,833,364 3.84 2.3 600,616 Vested and exercisable — September 30, 2019 6,533,364 3.80 2.2 600,616 Unvested and non-exercisable - September 30, 2019 300,000 $ 4.75 4.6 $ —
Schedule of Fair Value of Warrant Weighted Average Assumptions	The fair value of each warrant grant was estimated on the date of grant using Black-Scholes with the following weighted average assumptions: Expected life (years) 1 - 7 Risk-free interest rate 1.31% - 2.3 % Volatility 100% - 167 % Dividend yield 0 % (1) Aggregate intrinsic value represents the difference between the exercise price of the warrant and the closing market price of our common stock on September 30, 2019, which was $2.30 per share. Total intrinsic value of warrants exercised during the three and nine months ended September 30, 2019 was $49,999 and $1,196,147 respectively.
Schedule of Loss Per Share Dilutive Effect	The following outstanding instruments could have a dilutive effect in the future: September 30, 2019 2018 (unaudited) (unaudited) Warrants 6,833,364 2,196,700 Stock options 1,198,852 370,600 Total 8,032,216 2,567,300

Basis of Presentation and Sig_4

Basis of Presentation and Significant Account Policies (Details Narrative) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Accounting Policies [Abstract]
General, selling and administrative expense	$ 5,389,000			$ 4,869,000			$ 14,994,000	$ 14,392,000
Net Income (loss)	1,409,000	$ (8,099,000)	$ (5,784,000)	21,271,000	$ (4,021,000)	$ 11,000	(12,474,000)	17,261,000
Change in fair value of warrant derivative liabilities	6,227,000			$ 1,839,000			1,390,000	$ 4,549,000
Accumulated deficit	(31,252,000)						(31,252,000)		$ (18,778,000)
Cash and cash equivalents	$ 2,843,000						$ 2,843,000		2,785,000
Working capital deficit									$ (3,549,000)

Basis of Presentation and Sig_5

Basis of Presentation and Significant Account Policies - Schedule of Operating Lease Assets and Liabilities (Details) - USD ($)		Sep. 30, 2019		Dec. 31, 2018
Accounting Policies [Abstract]
Operating lease right-of-use assets - non-current		$ 429,000	[1]
Operating lease liabilities - current	[1]	134,000
Operating lease liabilities - non-current		295,000	[1]
Total operating lease liabilities	[1]	$ 429,000
[1]	As of September 30, 2019, we have no "finance leases" as defined in ASC 842.

Basis of Presentation and Sig_6

Basis of Presentation and Significant Account Policies - Schedule of Component of Lease Expense (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Accounting Policies [Abstract]
Operating lease cost	$ 41,000	$ 125,000
Variable lease cost
Short-term lease cost	33,000	102,000
Total lease cost	$ 74,000	$ 227,000

Basis of Presentation and Sig_7

Basis of Presentation and Significant Account Policies - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Details)	Sep. 30, 2019
Accounting Policies [Abstract]
Weighted average remaining lease term	4 years
Weighted average discount rate	18.00%

Basis of Presentation and Sig_8

Basis of Presentation and Significant Account Policies - Schedule of Future Minimum Contractual Lease Payments (Details)	Sep. 30, 2019USD ($)
Accounting Policies [Abstract]
2019 (remaining)	$ 41,000
2020	163,000
2021	163,000
2022	163,000
2023	136,000
Total future lease payments, undiscounted	666,000
Less: Implied interest	(237,000)
Present value of operating lease payments	$ 429,000	[1]
[1]	As of September 30, 2019, we have no "finance leases" as defined in ASC 842.

Warrant Derivative Liabilitie_2

Warrant Derivative Liabilities - Schedule of Warrant Derivative Liability (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Debenture Warrant Liability [Member]
Balance as of beginning of period	$ 8,215,000	$ 5,709,000	$ 4,323,000	$ 7,257,000
Adjustments to Warrants Outstanding
Adjustment to fair value	(4,948,000)	(1,240,000)	3,892,000	(1,548,000)
Balance as of end of period	3,267,000	4,469,000	8,215,000	5,709,000
Leapfrog Warrant Liability [Member]
Balance as of beginning of period	1,162,000	1,513,000	623,000	1,873,000
Adjustments to Warrants Outstanding
Adjustment to fair value	(717,000)	(335,000)	539,000	(360,000)
Balance as of end of period	445,000	1,178,000	1,162,000	1,513,000
Derivative Liability [Member]
Balance as of beginning of period	903,000	1,223,000	496,000	2,026,000
Adjustments to Warrants Outstanding				(329,000)
Adjustment to fair value	(562,000)	(264,000)	407,000	(474,000)
Balance as of end of period	$ 341,000	$ 959,000	$ 903,000	$ 1,223,000

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative)

Aug. 12, 2019USD ($)$ / sharesshares

May 13, 2019USD ($)$ / shares

Mar. 27, 2019USD ($)$ / sharesshares

Aug. 31, 2019USD ($)shares

Jul. 31, 2019USD ($)shares

Sep. 30, 2019USD ($)$ / sharesshares

Jun. 30, 2019USD ($)$ / sharesshares

Sep. 30, 2018USD ($)shares

Jun. 30, 2018shares

Mar. 31, 2018shares

Sep. 30, 2019USD ($)$ / sharesshares

Sep. 30, 2018USD ($)

Dec. 31, 2018$ / shares

Class of Stock [Line Items]

Gross proceeds from placement agents and legal fees | $

$ 5,490,000

Net proceeds from placement agents and legal fees | $

$ 4,968,000

Options issued, price per share | $ / shares

$ 2.30

Stock-based compensation expense | $

$ 329,000

$ 605,000

$ 775,000

$ 1,757,000

Common Stock [Member]

Class of Stock [Line Items]

Number of shares issued as compensation

75,000

Fair value of compensation | $

$ 374,000

$ 94,000

$ 138,000

Service period for compensation

1 year

Issuance of common stock, shares

200,000

Number of shares of services

75,000

150,000

150,000

Warrants [Member]

Class of Stock [Line Items]

Warrant exercise price | $ / shares

$ 2.30

$ 2.30

Number of warrants exercised

342,000

Common Class A [Member]

Class of Stock [Line Items]

Sale of common stock, shares

1,525,000

Common stock par value | $ / shares

$ 0.001

$ 0.001

$ 0.001

$ 0.001

Series A Warrants [Member]

Class of Stock [Line Items]

Warrants to purchase common stock

965,500

Warrant exercise price | $ / shares

$ 3.60

Warrants term

90 months

Series B Warrants and Series C Warrants [Member]

Class of Stock [Line Items]

Warrant exercise price | $ / shares

$ 4

Warrants term

6 months

Warrants expiration date

Oct. 1, 2022

Investors [Member] | Series B Warrants [Member] | Private Placement [Member]

Class of Stock [Line Items]

Warrants to purchase common stock

1,525,000

Investors [Member] | Series C Warrants [Member] | Private Placement [Member]

Class of Stock [Line Items]

Warrants to purchase common stock

965,500

Placement Agent [Member]

Class of Stock [Line Items]

Sale of common stock, shares

1,687,825

Warrants to purchase common stock

101,270

Warrant exercise price | $ / shares

$ 5

Gross proceeds from placement agents and legal fees | $

$ 6,751,300

Net proceeds from placement agents and legal fees | $

$ 6,229,000

Percentage of cash fees

7.00%

Sale of stock price per share | $ / shares

$ 4

Placement agents fees | $

$ 523,000

Reimbursement for offering related expense | $

$ 50,000

Non-Executive Directors [Member]

Class of Stock [Line Items]

Share-based payment award, options, grants in period, gross

11,252

Options issued, price per share | $ / shares

$ 5.49

Share based compensation, expiration date

Apr. 15, 2026

Share-based payment award, options for fair value | $

$ 60,000

Share-based payment award, fair value assumptions, expected term

7 years

Fair value assumptions, expected volatility rate

102.00%

Share-based payment award, fair value assumptions, risk free interest rate

2.46%

Stock price | $ / shares

$ 5.49

Non-Executive Director One [Member]

Class of Stock [Line Items]

Share-based payment award, options, grants in period, gross

2,813

Non-Executive Director Two [Member]

Class of Stock [Line Items]

Share-based payment award, options, grants in period, gross

2,813

Non-Executive Director Three [Member]

Class of Stock [Line Items]

Share-based payment award, options, grants in period, gross

2,813

Non-Executive Director Four [Member]

Class of Stock [Line Items]

Share-based payment award, options, grants in period, gross

2,813

Employees and Members of Management Team [Member]

Class of Stock [Line Items]

Share-based payment award, options, grants in period, gross

685,000

Options issued, price per share | $ / shares

$ 3.42

Share-based payment award, options for fair value | $

$ 1,513,137

Settlement Agreement [Member] | Lender [Member[

Class of Stock [Line Items]

Stock cancel common stock as collateral

200,000

Debt owed original issue discount | $

$ 150,000

Stock issued original issue discount, shares

58,101

Stock issued original issue discount | $

$ 219,000

PA Agreements [Member]

Class of Stock [Line Items]

Proceeds from sale of securities | $

$ 60,000

Percentage of sale of securities

6.00%

Description for registered direct offering anf private placement

In connection with the Registered Direct Offering and the Private Placement, the Company entered into engagement agreements (the "PA Agreements") with The Special Equities Group, LLC, a division of Bradley Woods & Co. Ltd., and WestPark Capital, Inc. (the "Placement Agents") on August 11, 2019 and August 9, 2019, respectively. Pursuant to the PA Agreements, the Placement Agents received (i) aggregate cash fees of 7.0% for one Placement Agent or 8.0% for the other Placement Agent, of their respective portions of the gross proceeds received by the Company from the sale of the securities, (ii) approximately $60,000 for certain expenses, and (iii) warrants to purchase up to 59,668 shares of Common Stock (the "Placement Agent Warrants"), representing 6.0% of the Common Stock and Series B Warrants sold by one of the Placement Agents in the Registered Direct Offering. The Placement Agent Warrants have substantially the same terms as the Series B Warrants, except that the exercise price of the Placement Agent Warrants is $4.50 per share and has a four (4) year term beginning one (1) year after issuance. Additionally, upon the exercise of up to 1,027,778 Series A Warrants, 650,701 Series B Warrants, and 1,027,778 Series C Warrants sold Registered Direct Offering and Private Placement, we have agreed to pay one of the Placement Agents a cash fee of 8% of proceeds from the exercise of such warrants exercised within 120 days following the closing of this offering or a cash fee of 5% of the proceeds from the exercise of such warrants after such 120 day period following the closing of this offering. One of the Placement Agents will be entitled to the foregoing cash commission and fee in the previous sentence with respect to certain investors if such investors provide capital to us in any future private or public offering, or other financing or capital-raising transaction during the six (6) months following the expiration or termination of our engagement of such Placement Agent.

PA Agreements [Member] | Series A Warrants [Member]

Class of Stock [Line Items]

Number of warrants exercised

1,027,778

PA Agreements [Member] | Series B Warrants [Member]

Class of Stock [Line Items]

Number of warrants exercised

650,701

PA Agreements [Member] | Series C Warrants [Member]

Class of Stock [Line Items]

Number of warrants exercised

1,027,778

PA Agreements [Member] | One Placement Agent [Member]

Class of Stock [Line Items]

Percentage of cash fees

7.00%

PA Agreements [Member] | Other Placement Agent [Member]

Class of Stock [Line Items]

Percentage of cash fees

8.00%

PA Agreements [Member] | Placement Agent Warrants [Member]

Class of Stock [Line Items]

Warrants to purchase common stock

59,668

Warrant exercise price | $ / shares

$ 4.50

Warrants term

4 years

Consulting Agreement [Member] | Contractor [Member] | Warrants [Member]

Class of Stock [Line Items]

Warrant exercise price | $ / shares

$ 300,000

Warrants term

5 years

Warrants expiration date

Nov. 30, 2021

Fair value of warrants | $

$ 1,138,332

Consulting Agreement [Member] | Contractor [Member] | Warrants [Member] | Volatility [Member]

Class of Stock [Line Items]

Warrants and rights outstanding, measurement input , percent

101

Consulting Agreement [Member] | Contractor [Member] | Warrants [Member] | Risk Free Interest Rate [Member]

Class of Stock [Line Items]

Warrants and rights outstanding, measurement input , percent

1.8

Consulting Agreement [Member] | Contractor [Member] | Warrants [Member] | Stock Price [Member]

Class of Stock [Line Items]

Warrants and rights outstanding, measurement input , percent | $ / shares

4.99

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Stock Options Activity (Details)	9 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average strike price/share, granted (weighted-average fair value of $2.21 Per share)	$ 2.30
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, beginning balance | shares	547,662
Number of shares, granted (weighted-average fair value of $2.21 Per share) | shares	696,252
Number of shares, exercised | shares
Number of shares, forfeited | shares	(45,062)
Number of shares, ending balance | shares	1,198,852
Number of shares, vested and exercisable - september 30, 2019 | shares	(270,936)
Number of shares, unvested and non-exercisable - september 30, 2019 | shares	927,916
Weighted average strike price/share, beginning balance	$ 5.27
Weighted average strike price/share, granted (weighted-average fair value of $2.21 Per share)	3.45
Weighted average strike price/share, exercised
Weighted average strike price/share, forfeited	7.34
Weighted average strike price/share, ending balance	4.14
Weighted average strike price/share, vested and exercisable - september 30, 2019	5.85
Weighted average strike price/share, unvested and non-exercisable - september 30, 2019	$ 3.68
Weighted average remaining contractual term ( years), beginning balance	2 years 8 months 12 days
Weighted average remaining contractual term ( years), granted (weighted-average fair value of $2.21 Per share)	2 years 6 months
Weighted average remaining contractual term ( years), exercised	0 years
Weighted average remaining contractual term ( years), forfeited	0 years
Weighted average remaining contractual term ( years), ending balance	2 years 6 months
Weighted average remaining contractual term ( years), vested and exercisable - september 30, 2019	2 years 6 months
Weighted average remaining contractual term ( years), unvested and non-exercisable - september 30, 2019	2 years 4 months 24 days
Aggregate intrinsic value, beginning balance | $		[1]
Aggregate intrinsic value, granted (weighted-average fair value of $2.21 Per share)		[1]
Aggregate intrinsic value, exercised | $		[1]
Aggregate intrinsic value, ending balance | $		[1]
Aggregate intrinsic value, vested and exercisable - september 30, 2019 | $		[1]
Aggregate intrinsic value, unvested and non-exercisable - september 30, 2019 | $		[1]
[1]	Aggregate intrinsic value represents the difference between the exercise price of the option and the closing market price of our common stock on September 30, 2019, which was $2.30 per share

Stockholders' Equity - Schedu_2

Stockholders' Equity - Schedule of Stock Options Activity (Details) (Parenthetical)	9 Months Ended
	Sep. 30, 2019$ / shares
Stock issued price per share	$ 2.30
Stock Option [Member]
Weighted-average fair value of granted	$ 2.30

Stockholders' Equity - Schedu_3

Stockholders' Equity - Schedule of Stock Warrants Activity (Details) - Warrants [Member] - USD ($)		3 Months Ended	9 Months Ended
		Sep. 30, 2019	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, beginning balance			4,325,423
Number of shares, granted			2,919,941
Number of shares, exercised			(342,000)
Number of shares, forfeited			(70,000)
Number of shares, ending balance		6,833,364	6,833,364
Number of shares, vested and exercisable - september 30, 2019		6,533,364	6,533,364
Number of shares, unvested and non-exercisable - september 30, 2019			300,000
Weighted average strike price/share, beginning balance			$ 3.77
Weighted average strike price/share, granted			3.98
Weighted average strike price/share, exercised			3.50
Weighted average strike price/share, forfeited			7.50
Weighted average strike price/share, ending balance		$ 3.84	3.84
Weighted average strike price/share, vested and exercisable		$ 3.80	3.80
Weighted average strike price/share, Unvested and non-exercisable - september 30, 2019			$ 4.75
Weighted average remaining contractual term ( years), beginning balance			2 years 10 months 25 days
Weighted average remaining contractual term ( years), granted			1 year 10 months 25 days
Weighted average remaining contractual term ( years), exercised			8 months 12 days
Weighted average remaining contractual term ( years), forfeited			0 years
Weighted average remaining contractual term ( years), ending balance			2 years 3 months 19 days
Weighted average remaining contractual term ( years), vested and exercisable - september 30, 2019			2 years 2 months 12 days
Weighted average remaining contractual term ( years), unvested and non-exercisable - september 30, 2019			4 years 7 months 6 days
Aggregate intrinsic value, beginning balance	[1]		$ 3,849,626
Aggregate intrinsic value, granted	[1]
Aggregate intrinsic value, exercised		$ 49,999	1,196,147	[1]
Aggregate intrinsic value, forfeited	[1]
Aggregate intrinsic value, ending balance	[1]	600,616	600,616
Aggregate intrinsic value, vested and exercisable - september 30, 2019	[1]	600,616	600,616
Aggregate intrinsic value, unvested and non-exercisable - september 30, 2019	[1]
[1]	Aggregate intrinsic value represents the difference between the exercise price of the warrant and the closing market price of our common stock on September 30, 2019, which was $2.30 per share. Total intrinsic value of warrants exercised during the three and nine months ended September 30, 2019 was $49,999 and $1,196,147 respectively.

Stockholders' Equity - Schedu_4

Stockholders' Equity - Schedule of Stock Warrants Activity (Details) (Parenthetical) - Warrants [Member]	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)$ / shares	Sep. 30, 2019USD ($)$ / shares
Warrant exercise price | $ / shares	$ 2.30	$ 2.30
Total intrinsic value of warrants exercised | $	$ 49,999	$ 1,196,147	[1]
[1]	Aggregate intrinsic value represents the difference between the exercise price of the warrant and the closing market price of our common stock on September 30, 2019, which was $2.30 per share. Total intrinsic value of warrants exercised during the three and nine months ended September 30, 2019 was $49,999 and $1,196,147 respectively.

Stockholders' Equity - Schedu_5

Stockholders' Equity - Schedule of Fair Value of Warrant Weighted Average Assumptions (Details) - Warrants [Member]	Sep. 30, 2019
Expected life (years) [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants and rights outstanding, term	1 year
Expected life (years) [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants and rights outstanding, term	7 years
Risk Free Interest Rate [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants and rights outstanding, measurement input , percent	1.31
Risk Free Interest Rate [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants and rights outstanding, measurement input , percent	2.3
Volatility [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants and rights outstanding, measurement input , percent	100
Volatility [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants and rights outstanding, measurement input , percent	167
Measurement Input, Expected Dividend Rate [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants and rights outstanding, measurement input , percent	0

Stockholders' Equity - Schedu_6

Stockholders' Equity - Schedule of Loss Per Share Dilutive Effect (Details) - shares	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	8,032,216	2,567,300
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	6,833,364	2,196,700
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,198,852	370,600

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	9 Months Ended
	Sep. 30, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Future liability for point redemption	$ 772,000
Percentage for utilized breakage factor	0.00%