SRAX (SRAX) 10-K 16 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 11, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	SOCIAL REALITY, Inc.
Entity Central Index Key	1,538,217
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer	No
Is Entity a Voluntary Filer	No
Is Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 23,456,438
Entity Common Stock, Shares Outstanding		29,977,925
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 1,091,186	$ 1,843,393
Accounts receivable, net	7,056,298	3,874,620
Prepaid expenses	309,436	222,532
Other current assets	36,090	7,352
Total current assets	8,493,010	5,947,897
Property and equipment, net	43,936	27,602
Goodwill	16,314,957	16,312,911
Intangible assets, net	1,611,744	2,006,000
Deferred debt issue costs	1,654,773	2,907,736
Prepaid stock based compensation	373,567	1,008,019
Other assets	34,659	4,804
Total assets	28,526,646	28,214,969
Current liabilities:
Accounts payable and accrued expenses	$ 5,138,807	2,882,120
Note payable - related party		2,500,000
Notes payable, current portion	$ 2,455,000	1,350,000
Unearned revenue	1,295	25,295
Contingent consideration payable to related party - current portion	7,585,435	$ 3,586,722
Put liability	1,436,282
Total current liabilities	16,616,819	$ 10,344,137
Notes payable	$ 8,033,898	7,713,014
Contingent consideration payable to related party - long term		3,145,401
Put liability		1,260,010
Total liabilities	$ 24,650,717	22,462,562
Stockholders' equity:
Additional paid in capital	13,989,590	13,143,153
Accumulated deficit	(10,141,771)	(7,417,862)
Total stockholders' equity	3,875,929	5,752,407
Total liabilities and stockholders' equity	$ 28,526,646	28,214,969
Series A Preferred Stock [Member]
Stockholders' equity:
Preferred stock, authorized 50,000,000 shares, $0.001 par value,		86
Common Class A [Member]
Stockholders' equity:
Common stock	$ 28,110	$ 27,030
Common Class B [Member]
Stockholders' equity:
Common stock

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Preferred Stock, shares authorized	50,000,000	50,000,000
Preferred Stock, par value per share	$ 0.001	$ 0.001
Common Stock, shares authorized	259,000,000
Preferred Stock Undesignated Shares	49,800,000	49,800,000
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	28,110,229	29,416,612
Common Stock, shares outstanding	28,110,229	27,029,749
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	0	0
Common Stock, shares outstanding	0	0
Preferred Stock [Member]
Preferred Stock, shares authorized	50,000,000	50,000,000
Preferred Stock, par value per share	$ 0.001	$ 0.001
Preferred Stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series A Preferred Stock [Member]
Preferred Stock, shares authorized	200,000	200,000
Preferred Stock, par value per share	$ 0.001	$ 0.001
Preferred Stock, shares issued	0	86,000
Preferred stock, shares outstanding	0	86,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenues	$ 30,294,165	$ 5,120,343
Cost of revenue	14,407,363	2,791,948
Gross profit	15,886,802	2,328,395
Operating expense	14,834,766	6,066,611
Income (loss) from operations	1,052,036	(3,738,216)
Interest expense	(3,775,945)	(673,347)
Loss before provision for income taxes	$ (2,723,909)	$ (4,411,563)
Provision for income taxes
Net loss	$ (2,723,909)	$ (4,411,563)
Net loss per share, basic and diluted	$ (0.10)	$ (0.20)
Weighted average shares outstanding	27,073,550	21,808,515

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2013	$ 121	$ 19,902	$ 6,081,014	$ (3,006,299)	$ 3,094,738
Balance, shares at Dec. 31, 2013	121,000	19,901,794
Sale of common stock units for cash		$ 5,999	5,101,599		5,107,598
Sale of common stock units for cash, shares		5,999,168
Common stock warrants subscribed			2,100		2,100
Stock based compensation			1,203,534		$ 1,203,534
Vested stock awards issued		$ 134	(134)
Vested stock awards issued, shares		133,332
Unvested stock awards issued		$ 45	(45)
Unvested stock awards issued, shares		45,455
Common stock issued for acquisition		$ 600	755,400		$ 756,000
Common stock issued for acquisition, shares		600,000
Common stock issued upon conversion of preferred stock	$ (35)	$ 350	(315)
Common stock issued upon conversion of preferred stock, shares	(35,000)	350,000
Net loss				(4,411,563)	$ (4,411,563)
Balance at Dec. 31, 2014	$ 86	$ 27,030	13,143,153	(7,417,862)	5,752,407
Balance, shares at Dec. 31, 2014	86,000	27,029,749
Stock based compensation			739,146		739,146
Vested stock awards issued		$ 128	(128)
Vested stock awards issued, shares		128,331
Common stock issued upon conversion of preferred stock	$ (86)	$ 860	(774)
Common stock issued upon conversion of preferred stock, shares	(86,000)	860,000
Proceeds from warrant offering			6,921		6,921
Shares issued for services		$ 92	101,272		101,364
Shares issued for services, shares		92,149
Net loss				(2,723,909)	(2,723,909)
Balance at Dec. 31, 2015		$ 28,110	$ 13,989,590	$ (10,141,771)	$ 3,875,929
Balance, shares at Dec. 31, 2015		28,110,229

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net loss	$ (2,723,909)	$ (4,411,563)
Adjustments to reconcile net loss to net cash provided (used) by operating activities:
Amortization of stock based prepaid fees	634,452	654,055
Stock based compensation	840,512	1,203,534
Amortization of debt issue costs	1,252,963	256,616
PIK interest expense accrued to principal	390,462	63,014
Accretion of contingent consideration	853,312	148,081
Accretion of put liability	176,272	27,716
Bad debts	86,946	26,488
Depreciation and amortization	411,538	14,829
Changes in operating assets and liabilities:
Accounts receivable	(3,287,624)	(1,196,572)
Prepaid expenses	(86,904)	(170,902)
Other current assets	(28,738)	17,514
Other assets	(10,855)	(804)
Accounts payable and accrued expenses	2,254,639	861,148
Unearned revenue	(24,000)	25,295
Cash provided (used) by operating activities	$ 739,066	(2,481,551)
Cash flows from investing activities:
Cash paid for acquisition		(2,000,000)
Cash acquired in acquisition		32,038
Purchase of equipment	$ (33,616)	(6,856)
Cash used by investing activities	$ (33,616)	(1,974,818)
Cash flows from financing activities:
Sale of common stock		3,950,747
Cost of common stock sale		(16,291)
Proceeds from warrant offering	$ 6,921	2,100
Proceeds from note payable	2,900,000	$ 1,227,601
Repayments of note payable	$ (4,364,578)
Debt issue costs		$ (579,659)
Cash (used) provided by financing activities	$ (1,457,657)	4,584,498
Net (decrease) increase in cash	(752,207)	128,129
Cash, beginning of period	1,843,393	1,715,264
Cash, end of period	1,091,186	1,843,393
Supplemental Schedule of Cash Flow Information:
Cash paid for interest	$ 1,133,847	$ 157,792
Cash paid for taxes
Non-cash financial activities:
Fees and costs deducted from proceeds of debt		$ 1,352,399
Warrant put liability in conjunction with notes payable		1,232,294
Net assets and liabilities recognized with the acquisition of Steel Media		17,562,911
Issuance of stock for the acquisition of Five Delta, Inc.		756,000
Common stock issued for preferred stock conversion and vesting grants	$ 988	529
Accounts payable paid directly through escrow		98,595
Steel Media partial purchase consideration paid directly through escrow		$ 7,500,000

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Basis of Presentation Social Reality, Inc. ("Social Reality", "we", "us" or "the Company") is a Delaware corporation formed on August 2, 2011. Effective January 1, 2012 we acquired all of the member interests and operations of Social Reality, LLC, a California limited liability company formed on August 14, 2009, which began business in May of 2010, in exchange for 12,328,767 shares of our Class A and Class B common stock. The former members of Social Reality, LLC owned all of our common stock after the acquisition. At Social Reality, we sell digital advertising campaigns to advertising agencies and brands. We have developed technology that allows brands to launch and manage digital advertising campaigns, and we provide the platform that allows website publishers to sell their media inventory to a number of digital adverting buyers. Our focus is to provide technology tools that enable both publishers and advertisers to maximize their digital advertising initiatives. We derive our revenues from: · sales of digital advertising campaigns to advertising agencies and brands; · sales of media inventory owned by our publishing partners through real-time bidding, or RTB, exchanges; · sale and licensing of our SRAX Social platform and related media; and, · creation of custom platforms for buying media on SRAX for large brands. The core elements of this business are: · Social Reality Ad Exchange or "SRAX" Real Time Bidding sell side and buy side representation · SRAX MD · SRAXSocial, · SRAX APP, We offer our customers a number of pricing options including cost-per-thousand-impression ("CPM"), whereby our customers pay based on the number of times the target audience is exposed to the advertisement, and cost-per-engagement ("CPE"), whereby payment is triggered only when an individual takes a specific activity. Social Reality is also an approved Facebook advertising partner, through Facebook’s PMD (Preferred Marketing Developer) program. We sell targeted and measurable online advertising campaigns and programs to brand advertisers and advertising agencies across large Facebook apps and websites, generating qualified Facebook likes and quantifiable engagement for our clients, driving online sales and increased brand equity. We are headquartered in Los Angeles, California. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements include the accounts of the Company and its subsidiaries from the acquisition date of majority voting control and through the date of disposition, if any. Use of Estimates Accounting principles generally accepted in the United States ("GAAP") require management of the Company to make estimates and assumptions in the preparation of these consolidated financial statements that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates and assumptions. The most significant areas that require management judgment and which are susceptible to possible change in the near term include the Company's revenue recognition, allowance for doubtful accounts and sales credits, stock-based compensation, income taxes, purchase price for acquisition, goodwill, other intangible assets, put rights and valuation of liabilities. The accounting policies for these areas are discussed elsewhere in these consolidated financial statements. Cash and Cash Equivalents The Company considers all short-term highly liquid investments with a remaining maturity at the date of purchase of three months or less to be cash equivalents. Revenue Recognition The Company recognizes revenue when the following criteria have been met: persuasive evidence of an arrangement exists, no significant Company obligations remain, collection of the related receivable is reasonably assured, and the fees are fixed or determinable. The Company acts as a principal in its revenue transactions as the Company is the primary obligor in the transactions. Revenue is recognized on a gross basis, and media and publisher expenses that are directly related to a revenue-generating event are recorded as a component of cost of revenue. Cost of Revenue Cost of revenue consists of payments to media providers and website publishers that are directly related to a revenue-generating event and project and application design costs. The Company becomes obligated to make payments related to media providers and website publishers in the period the advertising impressions, click-throughs, actions or lead-based information are delivered or occur. Such expenses are classified as cost of revenue in the corresponding period in which the revenue is recognized in the accompanying income statement. Accounts Receivable Credit is extended to customers based on an evaluation of their financial condition and other factors. Management periodically assesses the Company's accounts receivable and, if necessary, establishes an allowance for estimated uncollectible amounts. Accounts determined to be uncollectible are charged to operations when that determination is made. The Company usually does not require collateral. Allowance for doubtful accounts was $135,442 and $52,338 at December 31, 2015 and 2014, respectively. Concentration of Credit Risk, Significant Customers and Supplier Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents and accounts receivable. Cash and cash equivalents are deposited in the United States. The balances in the United States held at any one financial institution are generally in excess of Federal Deposit Insurance Corporation ("FDIC") insurance limits. The uninsured cash bank balances were approximately $591,000 at December 31, 2015. The Company has not experienced any loss on these accounts. The balances are maintained in demand accounts to minimize risk. At December 31, 2015, one customer accounted for more than 10% of the accounts receivable balance, for a total of 38%. For the year ended December 31, 2015 one customer accounted for 48% of total revenue. For the year ended December 31, 2014 no one customer accounted for 10% or more of total revenue. However, 38% of our revenue was collected and paid to us by three of our RTB exchange service providers. Fair Value of Financial Instruments The Company's financial instruments, including cash and cash equivalents, net accounts receivable, accounts payable and accrued expenses, are carried at historical cost. At December 31, 2015 and 2014 the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments. Property and equipment Property and equipment is stated at cost less accumulated depreciation. Depreciation is provided on the straight line basis over the estimated useful lives of the assets of three years. Expenditures for repair and maintenance which do not materially extend the useful lives of property and equipment are charged to operations. When property or equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the respective accounts with the resulting gain or loss reflected in operations. Management periodically reviews the carrying value of its property and equipment for impairment. Intangible assets Intangible assets consist of intellectual property and a non-complete agreement and are stated at cost less accumulated amortization. Amortization is provided for on the straight line basis over the estimated useful lives of the assets of five to six years. Business Combinations For all business combinations (whether partial, full or step acquisitions), the Company records 100% of all assets and liabilities of the acquired business, including goodwill, generally at their fair values; contingent consideration, if any, is recognized at its fair value on the acquisition date and; for certain arrangements, changes in fair value are recognized in earnings until settlement; and acquisition-related transaction and restructuring costs are expensed rather than treated as part of the cost of the acquisition. Goodwill Our goodwill consists of the excess purchase price paid in business combinations over the fair value of assets acquired. Goodwill is considered to have an indefinite life. The Company employs the non-amortization approach to account for goodwill. Under the non-amortization approach, goodwill is not amortized into the results of operations, but instead is reviewed annually or more frequently if events or changes in circumstances indicate that the asset might be impaired, to assess whether the fair value exceeds the carrying value. The Company performs its annual goodwill and impairment assessment on September 30 of each year. When evaluating the potential impairment of goodwill we first assess a range of qualitative factors, including but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company's products and services, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, and the overall financial performance for each of the Company's reporting units. If, after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then proceed to a two-step impairment testing methodology using the income approach (discounted cash flow method). In the first step of the two step testing methodology, we compare the carrying value of the reporting unit, including goodwill, with its fair value, as determined by its estimated discounted cash flows. If the carrying value of a reporting unit exceeds its fair value, we then complete the second step of the impairment test to determine the amount of impairment to be recognized. In the second step, we estimate an implied fair value of the reporting unit's goodwill by allocating the fair value of the reporting unit to all of the assets and liabilities other than goodwill (including any unrecognized intangible assets). If the carrying value of a reporting unit's goodwill exceeds its implied fair value, the Company records an impairment loss equal to the difference in that period. When required, we arrive at our estimates of fair value using a discounted cash flow methodology which includes estimates of future cash flows to be generated by particular assets, as well as selecting a discount rate to measure the present value of those anticipated cash flows. Estimating future cash flows requires significant judgment and includes making assumptions about projected growth rates, industry-specific factors, working capital requirements, weighted average cost of capital, and current and anticipated operating conditions. The use of different assumptions or estimates for future cash flows could produce different results. No impairment of goodwill has been recorded in 2015. Long-lived Assets Management evaluates the recoverability of the Company's identifiable intangible assets and other long-lived assets when events or circumstances indicate a potential impairment exists. Events and circumstances considered by the Company in determining whether the carrying value of identifiable intangible assets and other long-lived assets may not be recoverable include, but are not limited to: significant changes in performance relative to expected operating results; significant changes in the use of the assets; significant negative industry or economic trends; a significant decline in the Company's stock price for a sustained period of time; and changes in the Company's business strategy. In determining if impairment exists, the Company estimates the undiscounted cash flows to be generated from the use and ultimate disposition of these assets. If impairment is indicated based on a comparison of the assets' carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairments have been recorded in 2015 or 2014. Loss Per Share We use ASC 260, "Earnings Per Share" for calculating the basic and diluted earnings (loss) per share. We compute basic earnings (loss) per share by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted earnings (loss) per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and warrants and stock awards. For periods with a net loss, basic and diluted loss per share are the same, in that any potential common stock equivalents would have the effect of being anti-dilutive in the computation of net loss per share. There were 13,097,016 common share equivalents at December 31, 2015 and 13,096,470 at December 31, 2014. For the years ended December 31, 2015 and 2014, these potential shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share. Income Taxes We utilize ASC 740 “Income Taxes” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at year-end based on enacted laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. The Company recognizes the impact of a tax position in the financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense. Stock-Based Compensation We account for our stock based compensation under ASC 718 "Compensation – Stock Compensation" using the fair value based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. This guidance establishes standards for the accounting for transactions in which an entity exchanges it equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity's equity instruments or that may be settled by the issuance of those equity instruments. We use the fair value method for equity instruments granted to non-employees and use the Black-Scholes model for measuring the fair value of options. The stock based fair value compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement date) and is recognized over the vesting periods. Business Segments The Company uses the "management approach" to identify its reportable segments. The management approach designates the internal organization used by management for making operating decisions and assessing performance as the basis for identifying the Company's reportable segments. Using the management approach, the Company determined that it has one operating segment due to business similarities and similar economic characteristics. Recently Issued Accounting Standards Management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
ACQUISITIONS	NOTE 2 – ACQUISITIONS. Acquisition of Steel Media On October 30, 2014, we acquired 100% of the capital stock of Steel Media, a California corporation ("Steel Media"), from Richard Steel pursuant to the terms and conditions of a stock purchase agreement, dated October 30, 2014, by and among the Company, Steel Media and Mr. Steel (the "Stock Purchase Agreement"). The acquisition of Steel Media is intended to complement and augment the current operations of Social Reality. Together, the companies offer and deliver improved performance and technology for digital advertising buy-side and sell-side solutions, delivered to agencies, brands and publishers by our combined digital sales team. We expect that the integration of Steel Media into the Company's operations will enhance the quality of our technology and service. As consideration for the purchase of Steel Media, we agreed to pay Mr. Steel up to $20 million, consisting of: (i) a cash payment at closing of $7.5 million; (ii) a cash payment of $2 million which is being held in escrow to satisfy certain indemnification obligations to the extent such arise under the Stock Purchase Agreement; (iii) a one year secured subordinated promissory note in the principal amount of $2.5 million (the "Note") which was secured by 2,386,863 shares of our Class A common stock (the "Escrow Shares"); and (iv) a earnout payments of up to $8 million (the "Earnout Consideration"). We have recorded the Earnout Consideration at its present value of $6,584,042. Changes in the value will be recorded through the statement of operations. The total acquisition price aggregated $18,584,042. The Earnout Consideration is payable upon the attainment of certain earnings before interest, taxes, depreciation and amortization ("EBITDA") targets of Steel Media during the two year period following the closing, 60% of which may be satisfied in shares of Social Reality's Class A common stock subject to the satisfaction of certain conditions set forth in the Stock Purchase Agreement. Further, in the event of (i) a change of control of the Company or Steel Media or (ii) Mr. Steel's termination without "cause" or resignation for "good reason" (each as defined in Mr. Steel's employment agreement (as hereinafter described)) during the two year period following the closing, we are obligated to pay Mr. Steel 100% of the Earnout Consideration (less any amount previously paid to Mr. Steel). To the extent we are prohibited from paying any Earnout Consideration in cash and Mr. Steel is prohibited from receiving same under the terms of the Subordination Agreement (as hereinafter defined) described below, Mr. Steel has the right to request that the Company pay him the prohibited cash earnout payment in shares of the Company's Class A common stock. The Note issued to Mr. Steel at the closing bore interest at the rate of 5% per annum and the principal and accrued interest was due and payable on October 30, 2015. The obligations under the Note were subordinated to the Company's obligations under the Financing Agreement (as hereinafter defined) pursuant to the terms of the Subordination Agreement (as hereinafter described) and were secured by the Escrow Shares. In October 2015 the Note was paid in full and the Escrow Shares were cancelled and returned to the status of authorized but unissued shares. On October, 30, 2014, in connection with the acquisition of Steel Media, the Company entered into a registration rights agreement (the "Registration Rights Agreement") with Mr. Steel pursuant to which the Company agreed to register any Earnout Shares issued to him or Escrow Shares released to him. The Company granted Mr. Steel demand registration rights over the Escrow Shares and the Earnout Shares which he may exercise 180 days after such shares are issued or released to him. In addition, Mr. Steel has the right to include any Earnout Shares issued to him or Escrow Shares released to him in registration statements for offerings by the Company as well as offerings of the Company's Class A common stock held by third parties. Following the cancellation of the Escrow Shares upon satisfaction of the Note the Registration Rights Agreement now only covers the Earnout Shares. The final accounting for the acquisition of Steel Media has been completed during the third quarter of 2015. The final allocation of the purchase price to the assets acquired and liabilities assumed based on the estimated fair values is as follows: Cash $ 32,038 Accounts receivable and other assets 2,975,728 Equipment 7,777 Non-compete agreement 1,250,000 Goodwill 16,314,957 Total assets acquired 20,580,500 Accounts payable and other liabilities (1,996,458 ) Total $ 18,584,042 Goodwill will not be tax deductible. Pro forma Results of Operations. 2014 Revenue $ 12,558,030 Net loss (4,212,778 ) Net loss per share (0.19 ) The amounts of revenue and earnings of Steel Media since the acquisition date included in the consolidated statement of operations for the year ended December 31, 2014 are approximately $1,896,000 and $490,000, respectively. Acquisition of Five Delta, Inc. On December 19, 2014 we acquired 100% of the outstanding capital stock of Five Delta, Inc., a Delaware corporation ("Five Delta"), in exchange for 600,000 shares of our Class A common stock pursuant to the terms and conditions of the Share Acquisition and Exchange Agreement dated December 19, 2014 (the "Five Delta Agreement") by and among Social Reality, Five Delta and the stockholders of Five Delta. The acquisition price was $756,000. Five Delta was a managed advertising service that used proprietary technology and methods to optimize digital advertising for its customers. Five Delta primarily utilized high quality first party data from major platforms like Facebook, Yahoo, LinkedIn and Google in optimization decisions. Five Delta's goal was to maximize marketing budget utility while simultaneously reporting clear and actionable information to its clients. The acquisition of Five Delta is intended to complement and augment the current operations of Social Reality and Steel Media through the integration of its proprietary technology and methods into our operations. Under the terms of the Five Delta Agreement, 300,000 shares of the Class A common stock (the "Five Delta Escrow Shares") were deposited in escrow by the holders with the escrow agent pending satisfaction of certain post-closing conditions as described in the agreement. If these post-closing conditions are not satisfied by the second annual anniversary of the closing date, all or a portion of the Five Delta Escrow Shares were subject to forfeiture. While the Five Delta Escrow Shares remained in escrow, the holders granted Mr. Chris Miglino, our Chief Executive Officer, a voting proxy over the Five Delta Escrow Shares. The post-closing conditions were satisfied and the Five Delta Escrow Shares were released from escrow in December 2015. The Five Delta stockholders also granted us a right of first refusal over the shares of our Class A common stock tendered as consideration for a four year period from the closing date. The Five Delta stockholders also entered into 24 month Lock Up Agreements at the closing of the Five Delta Agreement. The Lock Up Agreements provide that one-half of our shares of Class A common stock acquired in the transaction will be released from the lock up on the one year anniversary of the closing date, with the balance released on the two year anniversary of the closing date. Following the release of any of the shares from the Lock Up Agreement, the holders agreed to limit the resale of such shares based upon a numerical formula tied to the trading volume of our Class A common stock and agreed that all permitted resales will be made at the then current bid price of our Class A common stock. The lock up automatically terminates upon a change of control of our company. The Company has determined that the acquisition of Five Delta is an asset purchase, rather than the acquisition of a business. The only asset acquired was the intellectual property owned by Five Delta, and that property has been integrated into our operations. We acquired no other assets, customers, facilities or operations.

NOTES PAYABLE

NOTES PAYABLE	12 Months Ended
	Dec. 31, 2015
Notes Payable [Abstract]
NOTES PAYABLE	NOTE 3 – NOTES PAYABLE. Financing Agreement with Victory Park Management, LLC as agent for the lenders On October 30, 2014 (the "Financing Agreement Closing Date"), the Company entered into a financing agreement (the "Financing Agreement") with Victory Park Management, LLC, as administrative agent and collateral agent for the lenders and holders of notes and warrants issued thereunder (the "Agent"). The Financing Agreement provides for borrowings of up to $20 million to be evidenced by notes issued thereunder, which are secured by a first priority, perfected security interest in substantially all of the assets of the Company and its subsidiaries (including Steel Media) and a pledge of 100% of the equity interests of each domestic subsidiary of the Company pursuant to the terms of a pledge and security agreement (the "Pledge and Security Agreement") entered into by the Company on the Financing Agreement Closing Date (which was joined by Steel Media immediately after the Company's acquisition of Steel Media). The Financing Agreement contains covenants limiting, among other things, indebtedness, liens, transfers or sales of assets, distributions or dividends, and merger or consolidation activity. The notes (the "Financing Notes") issued pursuant to the Financing Agreement, including the note issued to the lender thereunder in the original aggregate principal amount of $9 million on the Financing Agreement Closing Date (the "Initial Financing Note"), bear interest at a rate per annum equal to the sum of (1) cash interest at a rate of 10% per annum and (2) payment-in-kind (PIK) interest at a rate of 4% per annum for the period commencing on the Financing Agreement Closing Date and extending through the last day of the calendar month during which the Company's financial statements for December 31, 2014 are delivered, and which PIK interest rate thereafter from time to time may be adjusted based on the ratio of the Company's consolidated indebtedness to its earnings before interest, taxes, depreciation and amortization. If the Company achieves a reduction in the leverage ratio as described in the Financing Agreement, the PIK interest rate declines on a sliding scale from 4% to 2%. The Financing Notes issued under the Financing Agreement are scheduled to mature on October 30, 2017, with scheduled quarterly payment dates commencing December 31, 2014. Proceeds from the Initial Financing Note issued on the Financing Agreement Closing Date were used to finance, in part, the Company's acquisition of Steel Media as described in Note 2. The Financing Agreement provides for subsidiaries of the Company to join the Financing Agreement from time to time as borrowers and cross guarantors thereunder. Immediately after the Company's acquisition of Steel Media on October 30, 2014, Steel Media executed a joinder agreement under which it became a borrower under the Financing Agreement. The Company and its subsidiary, Steel Media, are cross guarantors of each other's obligations under the Financing Agreement, all of which guaranties and obligations are secured pursuant to the terms of the Pledge and Security Agreement. On May 14, 2015 we entered into the First Amendment to Financing Agreement with Victory Park Management, LLC, as administrative agent and collateral agent for the lenders. Under the terms of the amendment, the leverage ratio, senior leverage ratio, fixed charge coverage ratio and interest coverage ratio under the Financing Agreement were all modified, and the minimum current ratio was reduced. The amendment also modified our obligations with respect to the delivery of certain reports, certain representations by us as well as clarifying other additional terms by which the loan is administered. On July 6, 2015 we borrowed an additional $1,500,000 pursuant to the financing agreement. The loan funded on July 8, 2015. In connection therewith, we issued a Senior Secured Term Note to the Lender in the principal amount of $1,500,000. The Senior Secured Term Note has terms identical to the Initial Financing Notes described above. The Senior Secured Term Note will mature on October 30, 2017. We are using the proceeds from this additional draw under the Financing Agreement for working capital. On October 26, 2015 we borrowed an additional $1,400,000 pursuant to the financing agreement. The loan funded on October 26, 2015. In connection therewith, we issued a Senior Secured Term Note to the Lender in the principal amount of $1,400,000. The Senior Secured Term Note has terms identical to the Initial Financing Notes described above. The Senior Secured Term Note will mature on October 30, 2017. We used the proceeds from this additional draw under the Financing Agreement towards the payment of the secured promissory note due Richard Steel described in Note 3, and for working capital. Notes payable consists of the following: December 31, 2015 2014 Principal amount $ 10,071,828 $ 9,000,000 PIK interest accrued 417,070 63,014 10,488,898 9,063,014 Less current portion (2,455,000 ) (1,350,000 ) Notes payable and PIK interest accrued, net of current portion $ 8,033,898 $ 7,713,014 Pursuant to the Financing Agreement dated October 31, 2014, the Company also issued to the lender thereunder, on the Financing Agreement Closing Date, a five year warrant to purchase 2,900,000 shares of its Class A common stock at an exercise price of $1.00 per share (the "Financing Warrant"). The warrant holder may not, however, exercise the Financing Warrant for a number of shares of Class A common stock that would cause such holder to beneficially own shares of Class A common stock in excess of 4.99% of the Company's outstanding shares of Class A common stock following such exercise. The number of shares issuable upon exercise of the Financing Warrant and the exercise price therefor are subject to adjustment in the event of stock splits, stock dividends, recapitalizations and similar corporate events. Pursuant to the Financing Warrant, the warrant holder has the right, at any time after the earlier of April 30, 2016 and the maturity date of the Financing Notes issued pursuant to the Financing Agreement, but prior to the date that is five years after the Financing Agreement Closing Date, to exercise its put right under the terms of the Financing Warrant, pursuant to which the warrant holder may sell to the Company, and the Company will purchase from the warrant holder, all or any portion of the Financing Warrant that has not been previously exercised. In connection with any exercise of this put right, the purchase price will be equal to an amount based upon the percentage of the Financing Warrant for which the put right is being exercised, multiplied by the lesser of (A) 50% of the total revenue for the Company and its subsidiaries, on a consolidated basis, for the trailing 12- month period ending with the Company's then-most recently completed fiscal quarter, and (B) $1,500,000. We have recorded the put liability at its present value of $1,232,294 at October 31, 2014 and have recorded it as deferred debt cost. We will record the accretion as interest expense. As contemplated under the Financing Agreement, the Company also entered into a registration rights agreement on the Financing Agreement Closing Date (the "Financing Registration Rights Agreement") with the holder of the Financing Warrant, pursuant to which the Company granted to such holder certain "piggyback" rights to register the shares of the Company's Class A common stock issuable upon exercise of the Financing Warrant. Specifically, the holder of the Financing Warrant has the right, subject to certain allocation provisions set forth in the Financing Registration Rights Agreement, to include the shares underlying the Financing Warrant in registration statements for offerings by the Company of its Class A common stock, as well as offerings of the Company's Class A common stock held by third parties. The shares underlying the Financing Warrant were included in a registration statement on Form S-1 that was declared effective by the Securities and Exchange Commission in October 2015. As part of the arrangements under the Financing Agreement, the Agent, Mr. Steel, and the Company and Steel Media (as borrowers under the Financing Agreement) have also entered into a subordination agreement (the "Subordination Agreement") under which Mr. Steel has agreed, subject to the terms and conditions of the Subordination Agreement, to subordinate to the lenders and holders of Financing Notes and the Financing Warrant issued under the Financing Agreement (i) certain obligations, liabilities, and indebtedness, including, without limitation, payments under the Note and payments of Earnout Consideration, owed to him by the Company and any of its subsidiaries and (ii) Mr. Steel's right to exercise the Put Right. Activity for the put liability during the years ended December 31, 2015 and 2014 was: December 31, 2015 2014 Balance, beginning of year $ 1,260,010 $ — Present value of put liability incurred — 1,232,294 Accretion in value 176,272 27,716 Balance, December 31 $ 1,436,282 $ 1,260,010 We incurred a total of $3,164,352 of costs related to the Financing Agreement. These costs will be amortized to interest expense over the life of the debt. During the years ended December 31, 2015 and 2014, $1,252,963 and $256,616, respectively, was amortized with a remaining balance of $1,654,773 reported as deferred debt issue costs as of December 31, 2015. The approximate maturities of the long term portion of the financing agreement are as follows: Year ended December 31, 2017 8,034,000 Note payable – Richard Steel As partial consideration for the purchase of Steel Media described in Note 2, we executed a one year secured subordinated promissory note in the principal amount of $2.5 million (the "Note") which was secured by 2,386,863 shares of our Class A common stock (the "Escrow Shares"). The Note issued to Mr. Steel bore interest at the rate of 5% per annum and the principal and accrued interest was due and payable on October 30, 2015. The amounts due under the Note accelerated and became immediately due and payable upon the occurrence of an event of default as described in the Note. Upon an event of default under the Note, the interest rate increased to 10% per annum. The Note was permitted to be prepaid upon five days' notice to Mr. Steel, and the Note was required to be prepaid upon a change of control of the Company or Steel Media. The Note was also subject to certain mandatory partial prepayments for each of the fiscal quarters ending December 31, 2014, March 31, 2015 and June 30, 2015 in an amount equal to 25% of the "Excess Cash Amount" as defined in the Note. During August 2015 we made a partial prepayment on the note in the amount of $241,737. On October 29, 2015 we paid the remaining balance on the Note of $2,258,263, along with accrued interest of $122,861. The obligations under the Note were subordinated to the Company's obligations under the Financing Agreement (as hereinafter defined) pursuant to the terms of the Subordination Agreement (as hereinafter described) and were secured by the Escrow Shares. Upon satisfaction of the Note, the Escrow Shares were cancelled.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	NOTE 4 – STOCKHOLDERS' EQUITY Preferred Stock We are authorized to issue 50,000,000 of preferred stock, par value $0.001, of which 200,000 shares were designated as Series 1 Preferred Stock. Our board of directors, without further stockholder approval, may issue preferred stock in one or more series from time to time and fix or alter the designations, relative rights, priorities, preferences, qualifications, limitations and restrictions of the shares of each series. The rights, preferences, limitations and restrictions of different series of preferred stock may differ with respect to dividend rates, amounts payable on liquidation, voting rights, conversion rights, redemption provisions, sinking fund provisions and other matters. Our board of directors may authorize the issuance of preferred stock, which ranks senior to our common stock for the payment of dividends and the distribution of assets on liquidation. In addition, our board of directors can fix limitations and restrictions, if any, upon the payment of dividends on both classes of our common stock to be effective while any shares of preferred stock are outstanding. On August 16, 2013 our Board of Directors approved a Certificate of Designations, Rights and Preferences pursuant to which it designated a series consisting of 200,000 shares of its blank check preferred stock as Series 1 Preferred Stock. The designations, rights and preferences of the Series 1 Preferred Stock are as follows: · each share has a stated and liquidation value of $0.001 per share, · the shares do not pay any dividends, except as may be declared by our Board of Directors, and are not redeemable, · the shares do not have any voting rights, except as may be provided under Delaware law, · each share is convertible into 10 shares of our Class A common stock, subject to customary anti-dilution provisions in the event of stock splits, recapitalizations and similar corporate events, and · the number of shares of Series 1 Preferred Stock, as well as the number of shares of Class A common stock issued upon a conversion of shares of Series 1 Preferred Stock, that a holder may sell, transfer, assign, hypothecate or otherwise dispose of (collectively or severally, a "Disposition") at any one time shall be limited to an amount which is pari passu to any Disposition of Class A common stock by either Christopher Miglino and/or Erin DeRuggiero, executive officers and directors of our company. Notwithstanding anything contained in the designations, the holder of Series 1 Preferred Stock is not obligated to make any Dispositions of Series 1 Preferred Stock or Class A common stock issued upon the conversion of Series 1 Preferred Stock. As described in Note 11, following the conversion of the remaining shares of our Series 1 Preferred Stock during 2015, in February 2016 we filed a Certificate of Elimination with the Secretary of State of Delaware returning all shares of previously designated Series 1 Preferred Stock to our blank check preferred stock. Common Stock We are authorized to issue an aggregate of 259,000,000 shares of common stock. Our certificate of incorporation provides that we will have two classes of common stock: Class A common stock (authorized 250,000,000 shares, par value $0.001), which has one vote per share, and Class B common stock (authorized 9,000,000 shares, par value $0.001), which has ten votes per share. Any holder of Class B common stock may convert his or her shares at any time into shares of Class A common stock on a share-for-share basis. Otherwise the rights of the two classes of common stock are identical. 2015 Transactions: Preferred Stock During 2015, 86,000 shares of Series 1 Preferred Stock were converted into 860,000 shares of Class A common stock. Common Stock In January 2015 we sold three-year warrants to purchase 882,001 shares of our Class A common stock at an exercise price of $1.50 to 20 existing stockholders of our company in a private transaction. We received gross proceeds of $8,820 for which we did not pay any commissions or finder's fees. The investors were accredited investors and the issuances were exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(a)(2) of that act. During 2015 we issued 128,331 shares of Class A common stock for stock awards that have vested. During 2015 we issued 92,149 shares of Class A common stock, valued at $101,364, for consulting services. During December 2015 we issued 860,000 shares of Class A common stock upon the conversion of 86,000 shares of Series 1 Preferred Stock. Stock Awards On September 22, 2015 we granted an aggregate of 220,000 common stock awards to nine employees. The shares will vest ratably over three years on each grant date anniversary. Compensation expense will be recognized over the vesting period. During the year ended December 31, 2015 we recorded $34,360 of compensation expense related to these awards. During the year ended December 31, 2015 we recorded expense of $459,525 related to stock awards granted in prior years. Awards in the amount of 85,456 shares were forfeited during 2015. Stock Options and Warrants During February 2015 we granted 12,000 common stock options to a director. The options will vest quarterly over one year. The options have an exercise price of $1.20 per share and a term of five years. These options have a grant date fair value of $0.62 per option, determined using the Black-Scholes method based on the following assumptions: (1) risk free interest rate of 0.50%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of our common stock of 99%; and (4) an expected life of the options of 2 years. We have recorded an expense for the director options of $6,845 for the year ended December 31, 2015. On August 5, 2015 we granted 200,000 common stock options to an employee. The options will vest ratably over three years on each grant date anniversary. Compensation expense will be recognized over the vesting period. The options have an exercise price of $1.65 per share and expire three years following the vesting date. These options have a grant date fair value of $0.74 per option, determined using the Black-Scholes method based on the following assumptions: (1) risk free interest rate of 0.625 % ; (2) dividend yield of 0 %; (3) volatility factor of the expected market price of our common stock of 85%; and (4) an expected life of the options of 2 years. We have recorded an expense for the options of $20,478 for the year ended December 31, 2015. On September 22, 2015 we granted 385,000 common stock options to employees. The options will vest ratably over three years on each grant date anniversary. Compensation expense will be recognized over the vesting period. The options have an exercise price of $1.73 per share and expire three years following the vesting date. These options have a grant date fair value of $0.79 per option, determined using the Black-Scholes method based on the following assumptions: (1) risk free interest rate of 0.625 % ; (2) dividend yield of 0 %; (3) volatility factor of the expected market price of our common stock of 85%; and (4) an expected life of the options of 2 years. We have recorded an expense for the options of $26,328 for the year ended December 31, 2015. Awards in the amount of 15,000 options were forfeited during 2015. During the year ended December 31, 2015 we recorded expense of $191,612 related to stock options granted in prior years. Awards in the amount of 543,000 options were forfeited during 2015. 2014 Transactions: Preferred Stock During 2014, 35,000 shares of Series 1 Preferred Stock were converted into 350,000 shares of Class A common stock. Common Stock In January 2014 we sold an aggregate of 978,668 shares of our Class A common stock at a purchase price of $1.50 per share to 22 accredited investors in a private placement exempt from registration under the Securities Act of 1933 in reliance on exemptions provided by Section 4(a)(2) and Rule 506(b) of Regulation D. We received gross proceeds of $1,468,001. T.R. Winston & Company, LLC acted as placement agent for us in this offering. We paid the placement agent and a selling agent commissions and a non-accountable expense allowance totaling $190,840 and issued these firms three year Series B common stock purchase warrants to purchase an aggregate of 97,866 shares of our Class A common stock at an exercise price of $2.00 per share as additional compensation. We incurred additional expenses of $25,744 for this and have used net proceeds of $1,251,416 for working capital. During June 2014 we issued 133,332 shares of common stock pursuant to the vesting of stock grants. On October 30, 2014 and November 5, 2014, we sold 4,220,500 units of our securities to 28 accredited investors in a private placement exempt from registration under the Securities Act of 1933. The units were sold at a purchase price of $1.00 per unit resulting in gross proceeds to the Company of $4,220,500. Each unit consisted of one share of our Class A common stock and one three year Class A common stock purchase warrant to purchase 0.5 shares of our Class A common stock. Each redeemable three year warrant (the "Private Placement Warrants") entitles the holder to purchase one-half share of our Class A common stock at an exercise price of $1.50 per share. The Private Placement Warrants must be exercised in such denominations as to require the issuance of a whole number of shares. Providing that there is an effective registration statement registering the shares of our Class A common stock issuable upon exercise of the Private Placement Warrants, we have the right to redeem all or any portion of the warrants at a price of $0.001 per share of Class A common stock underlying such warrants upon 20 days' notice at any time that the closing price of our Class A common stock equals or exceeds $3.75 per share for 20 consecutive trading days and the daily average minimum volume of our Class A common stock during those 20 trading days is at least 100,000 shares. In addition to the units sold for cash, we also issued T.R. Winston & Company, LLC ("T.R. Winston") 800,000 units, valued at $800,000, as compensation for the firm's investment banking services to us in connection with the acquisition of Steel Media described above. The units issued to T.R. Winston are identical to the units sold in the private placement. As a result, we issued an aggregate of 5,020,500 shares of our Class A common stock and Private Placement Warrants to purchase an additional 2,510,250 shares of our Class A common stock. T.R. Winston acted as our placement agent in the private placement offering. We paid the placement agent and a selling agent cash commissions totaling $351,435 and agreed to issue T.R. Winston and the selling agent three year warrants which are identical to the Private Placement Warrant to purchase 301,230 shares of our Class A common stock at an exercise price of $1.50 per share. We incurred additional expenses of $12,885 for this and used $2,500,000 of the net proceeds from the offering as part of the cash consideration for the acquisition of Steel Media described above and used approximately $678,000 for fees in this transaction, including $580,000 to T.R. Winston as a loan origination fee for the Financing Agreement. The balance of the net proceeds will be used for general working capital. The Company has agreed to file a registration statement covering the shares underlying the Private Placement Warrants and the placement agent warrants. We are obligated to pay all costs associated with this registration statement, other than selling expenses of the warrant holders. This registration statement was declared effective by the SEC in October 2015. On December 19, 2014 we issued 600,000 shares of our Class A common stock in exchange for 100% of the outstanding capital stock of Five Delta, Inc., a Delaware corporation ("Five Delta"), pursuant to the terms and conditions of a Share Acquisition and Exchange Agreement dated December 19, 2014 (the "Five Delta Agreement") by and among Social Reality, Five Delta and the stockholders of Five Delta. During December 2014 we issued 350,000 shares of Class A common stock upon the conversion of 35,000 shares of preferred stock. Stock Awards During May 2014 we granted an aggregate of 200,000 common stock awards to ten employees. One half of the shares will vest ratably over three years and one half will vest upon the attainment of a performance condition. Compensation expense will be recognized over the vesting period. During the year ended December 31, 2014 we recorded $36,667 of compensation expense related to these awards. Awards in the amount of 40,000 shares were forfeited during 2014. On August 15, 2014 we granted 250,000 common stock awards pursuant to a restricted stock award to an employee. Of this award, 31,250 shares will vest quarterly with an initial vesting date of January 1, 2015. Compensation expense will be recognized over the vesting period. During the year ended December 31, 2014, we recorded $31,251 of compensation expense related to this award. On November 5, 2014 we issued 45,455 shares of Class A common stock pursuant to a restricted stock award to an employee. The award vests on November 5, 2015. Compensation expense will be recognized over the vesting period. During the year ended December 31, 2014, we recorded $22,644 of compensation expense related to this award. On December 19, 2014 we granted 50,000 common stock awards pursuant to a restricted stock award to an employee. The award vests on December 19, 2015. Compensation expense will be recognized over the vesting period. During the year ended December 31, 2014, we recorded $1,732 of compensation expense related to this award. During the year ended December 31, 2014 we recorded expense of $228,416 related to stock awards granted in prior years. The fair value of shares that vested during the year ended December 31, 2014 was $447,911. Stock Options and Warrants During February 2014 we granted 12,000 common stock options to a director. The options will vest quarterly over one year. The options have an exercise price of $2.70 per share and a term of five years. These options have a grant date fair value of $0.65 per option, determined using the Black-Scholes method based on the following assumptions: (1) risk free interest rate of 0.375 % ; (2) dividend yield of 0 %; (3) volatility factor of the expected market price of our common stock of 43 %; and (4) an expected life of the options of 2 years. We have recorded an expense for the director options of $7,180 for the year ended December 31, 2014. On March 15, 2014 we granted 200,000 Class A common stock options to a non-employee. The individual became an employee on June 19, 2014 and left our employ during the third quarter of 2014. Pursuant to the separation agreement all vested and unvested options were forfeited. During the year ended December 31, 2014 we have recorded expense of $7,678 related to the fair value of the options that vested. On June 19, 2014 we granted 300,000 Class A common stock options to an employee. The employee left our employ during the third quarter of 2014. Pursuant to the separation agreement all vested and unvested options were forfeited. We have not recorded any expense related to the fair value of options that were forfeited prior to vesting. On August 15, 2014 we granted 310,000 common stock options to employees. One half of the options will vest ratably over three years, such vesting to begin August 15, 2014, and one half will vest ratably over three years commencing upon the attainment of a performance condition, such vesting to begin August 15, 2016. The options subject to the performance condition will terminate if the performance condition is not met by July 31, 2015. Compensation expense will be recognized over the vesting period. The options have an exercise price of $1.00 per share and expire three years following vesting date. These options have a grant date fair value of $0.29 per option, determined using the Black-Scholes method based on the following assumptions: (1) risk free interest rate of 0.875 % ; (2) dividend yield of 0 %; (3) volatility factor of the expected market price of our common stock of 41 %; and (4) an expected life of the options of 3 years. We have recorded an expense for the options of $11,121 for the year ended December 31, 2014. On October 30, 2014 we granted 600,000 common stock options to our president. One half of the options will vest on October 30, 2017 and the remainder will vest on October 30, 2018. The options have an exercise price of $1.50 per share and a term of ten years. These options have a grant date fair value of $0.45 per option, determined using the Black-Scholes method based on the following assumptions: (1) risk free interest rate of 0.875% ; (2) dividend yield of 0%; (3) volatility factor of the expected market price of our common stock of 75%; and (4) an expected life of the options of 3.5 years. We have recorded an expense for the options of $13,012 for the year ended December 31, 2014. On October 30, 2014 we granted an aggregate of 275,000 common stock options to two employees. The options will vest ratably over four years, such vesting to begin October 30, 2015. The options have an exercise price of $1.50 per share and a term of ten years. These options have a grant date fair value of $0.36 per option, determined using the Black-Scholes method based on the following assumptions: (1) risk free interest rate of 0.625 % ; (2) dividend yield of 0%; (3) volatility factor of the expected market price of our common stock of 75%; and (4) an expected life of the options of 2.5 years. We have recorded an expense for the options of $4,114 for the year ended December 31, 2014. On November 5, 2014 we granted an aggregate of 130,000 common stock options to thirteen employees. The options will vest ratably over three years, such vesting to begin November 5, 2015. The options have an exercise price of $1.50 per share and expire three years after vesting. These options have a grant date fair value of $0.35 per option, determined using the Black-Scholes method based on the following assumptions: (1) risk free interest rate of 0.375 % ; (2) dividend yield of 0%; (3) volatility factor of the expected market price of our common stock of 75%; and (4) an expected life of the options of 2 years. We have recorded an expense for the options of $2,512 for the year ended December 31, 2014. On November 5, 2014 we granted 500,000 common stock options to our chief financial officer. The options will vest ratably over three years, such vesting to begin November 5, 2015. The options have an exercise price of $1.10 per share and expire three years after vesting. These options have a grant date fair value of $0.45 per option, determined using the Black-Scholes method based on the following assumptions: (1) risk free interest rate of 0.375 % ; (2) dividend yield of 0%; (3) volatility factor of the expected market price of our common stock of 75%; and (4) an expected life of the options of 2 years. We have recorded an expense for the options of $12,416 for the year ended December 31, 2014. On December 19, 2014 we granted 100,000 common stock options to an employee. The options will vest quarterly over two years, such vesting to begin March 31, 2016. The options have an exercise price of $1.26 per share and expire three years after vesting. These options have a grant date fair value of $0.53 per option, determined using the Black-Scholes method based on the following assumptions: (1) risk free interest rate of 0.375 % ; (2) dividend yield of 0%; (3) volatility factor of the expected market price of our common stock of 75%; and (4) an expected life of the options of 2.13 years. We have recorded an expense for the options of $739 for the year ended December 31, 2014. During the year ended December 31, 2014 we recorded expense of $33,468 related to stock options granted in prior years.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 5 – PROPERTY AND EQUIPMENT Property and equipment consists of the following: December 31, 2015 2014 Assets: Office equipment $ 86,231 $ 52,615 Accumulated depreciation and amortization (42,295 ) (25,013 ) Carrying value $ 43,936 $ 27,602 Depreciation expense was $17,282 and $14,829 for the years ended December 31, 2015 and 2014, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 6 – INTANGIBLE ASSETS Intangible assets consist of the following: December 31, 2015 2014 Non-compete agreement $ 1,250,000 $ 1,250,000 Intellectual property 756,000 756,000 2,006,000 2,006,000 Accumulated amortization (394,256 ) — Carrying value $ 1,611,744 $ 2,006,000 Amortization expense was $151,200 for intellectual property and $243,056 for the non-compete agreement for the year ended December 31, 2015. Estimated total amortization expense for each of the next five years is as follows: 2016 - 2019, $359,533 per year; 2020, $173,612.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 7 – RELATED PARTY TRANSACTIONS We were obligated to Richard Steel, our president and a director, pursuant to a promissory note in the amount of $2,500,000, as described in Note 3. During August 2015 we made a partial prepayment on the note in the amount of $241,737. On October 29, 2015 we paid the remaining balance on the note of $2,258,263, along with accrued interest of $122,861. We are also obligated to Mr. Steel for contingent Earnout Consideration of up to $8,000,000 incurred in connection with the acquisition of Steel Media, as described in Note 2. The Company has initially recorded the liability at its present value of $6,584,042. Changes in the value will be recorded through the statement of operations. Activity for the contingent consideration payable during the years ended December 31, 2015 and 2014 was: December 31, 2015 2014 Balance, beginning of year $ 6,732,123 $ — Present value of liability incurred — 6,584,042 Accretion in value 853,312 148,081 Balance, December 31 $ 7,585,435 $ 6,732,123 The Earnout Consideration target of Steel Media was achieved for the first Earnout period ended October 31, 2015 and on January 29, 2016 we paid Mr. Steel $4 million, of which $1.6 million was paid in cash and the balance was paid through the issuance of 1,283,766 shares of our Class A common stock in accordance with the terms of the Stock Purchase Agreement.

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2015
Accounts Payable and Accrued Liabilities [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	NOTE 8 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses are comprised of the following: December 31, 2015 2014 Accounts payable, trade $ 3,003,642 $ 2,240,894 Accrued expenses 45,450 136,065 Accrued compensation 659,262 168,274 Accrued commissions 1,430,453 336,887 Balance, December 31 $ 5,138,807 $ 2,882,120

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 9 - INCOME TAXES The Company generated operating losses for the years ended December 31, 2015 and December 31, 2014 which are not benefitted for tax accounting purposes. The Company accounts for its state franchise and minimum taxes as a component of its general and administrative expenses. Accordingly, the Company has recorded no current or deferred income tax expense for the years ended December 31, 2015 and December 31, 2014. A reconciliation of the federal statutory income tax rate to the Company's effective income tax rate is as follows: Year Ended December 31, 2015 2014 Federal statutory income tax rate (34.0 )% (34.0 )% State income taxes, net of federal benefit (3.0 ) (5.3 ) Stock based compensation 0.2 15.4 Acquisition expenses 0.0 6.2 Permanent differences 16.5 1.3 Other 1.5 1.5 Change in valuation allowance 18.8 14.9 Provision for income taxes 0.0 % 0.0 % Significant components of the Company's deferred income taxes are shown below: Year Ended December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 1,785,000 $ 1,785,000 Fixed assets 3,000 2,000 Stock based compensation — — Total deferred tax assets 1,788,000 1,787,000 Deferred tax liabilities Stock based compensation (128,000 ) (122,000 ) Other accruals (32,000 ) (31,000 ) Total deferred tax liabilities (160,000 ) (153,000 ) Net deferred tax assets Valuation allowance (1,628,000 ) (1,634,000 ) Net deferred tax liability $ — $ — The Company has established a valuation allowance against net deferred tax assets due to the uncertainty that such assets will be realized. The Company periodically evaluates the recoverability of the deferred tax assets. At such time as it is determined that it is more likely than not that deferred tax assets will be realizable, the valuation allowance will be reduced. The valuation allowance decreased by $6,000 for the year ended December 31, 2015. At December 31, 2015, the Company has federal and state net operating losses, or NOL, carryforwards of approximately $4.5 million and $4.5 million, respectively. The federal and state NOL carryforwards begin to expire in 2032. The above NOL carryforward may be subject to an annual limitation under Section 382 and 383 of the Internal Revenue Code of 1986, and similar state provisions if the Company experienced one or more ownership changes which would limit the amount of NOL and tax credit carryforwards that can be utilized to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Section 382 and 383, results from transactions increasing ownership of certain stockholders or public groups in the stock of the corporation by more than 50 percentage points over a three-year period. The Company has not completed an IRC Section 382/383 analysis. If a change in ownership were to have occurred, NOL and tax credit carryforwards could be eliminated or restricted. If eliminated, the related asset would be removed from the deferred tax asset schedule with a corresponding reduction in the valuation allowance. Due to the existence of the valuation allowance, limitations created by future ownership changes, if any, will not impact the Company’s effective tax rate. The Company files income tax returns in the United States, and various state jurisdictions. Due to the Company’s losses incurred, the Company is essentially subject to income tax examination by tax authorities from inception to date. The Company’s policy is to recognize interest expense and penalties related to income tax matters as tax expense. At December 31, 2015, there are no unrecognized tax benefits, and there are no significant accruals for interest related to unrecognized tax benefits or tax penalties.

STOCK OPTIONS AND WARRANTS

STOCK OPTIONS AND WARRANTS	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK OPTIONS AND WARRANTS	NOTE 10- STOCK OPTIONS AND WARRANTS 2012 and 2014 Equity Compensation Plans In January 2012, our board of directors and stockholders authorized the 2012 Equity Compensation Plan, which we refer to as the 2012 Plan, covering 3,000,000 shares of our Class A common stock. On November 5, 2014 our board of directors approved the adoption of our 2014 Equity Compensation Plan (the " 2014 Plan · incentive stock options (ISOs), · non-qualified options (NSOs), · awards of our common stock, · stock appreciation rights (SARs), · restricted stock units (RSUs), · performance units, · performance shares, and · other stock-based awards. Any option granted under the 2012 or 2014 Plans must provide for an exercise price of not less than 100% of the fair market value of the underlying shares on the date of grant, but the exercise price of any ISO granted to an eligible employee owning more than 10% of our outstanding common stock must not be less than 110% of fair market value on the date of the grant. The plans further provide that with respect to ISOs the aggregate fair market value of the common stock underlying the options which are exercisable by any option holder during any calendar year cannot exceed $100,000. The exercise price of any NSO granted under the 2012 or 2014 Plans is determined by the Board at the time of grant, but must be at least equal to fair market value on the date of grant. The term of each plan option and the manner in which it may be exercised is determined by the board of directors or the compensation committee, provided that no option may be exercisable more than 10 years after the date of its grant and, in the case of an incentive option granted to an eligible employee owning more than 10% of the common stock, no more than five years after the date of the grant. The terms of grants of any other type of award under the 2012 or 2014 Plans is determined by the Board at the time of grant. Subject to the limitation on the aggregate number of shares issuable under the plans, there is no maximum or minimum number of shares as to which a stock grant or plan option may be granted to any person. Transactions involving our stock options are summarized as follows: 2015 2014 Number Weighted Average Exercise Price Number Weighted Average Exercise Price Outstanding at beginning of the period 2,345,000 $ 1.26 426,000 $ 1.04 Granted during the period 597,000 1.69 2,427,000 1.32 Exercised during the period — — — — Terminated during the period (558,000 ) 1.13 (508,000 ) 1.35 Outstanding at end of the period 2,384,000 $ 1.40 2,345,000 $ 1.26 Exercisable at end of the period 494,163 $ 1.20 177,171 $ 1.13 At December 31, 2015 options outstanding totaled 2,384,000 with a weighted average exercise price of $1.40. At December 31, 2015 these options had an intrinsic value of $963,184 and a weighted average remaining contractual term of 5.6 years. Of these options, 494,163 are exercisable at December 31, 2015, with an intrinsic value of $295,550 and a remaining weighted average contractual term of 3.6 years. Compensation cost related to the unvested options not yet recognized is $756,643 at December 31, 2015. We have estimated that approximately $321,000 will be recognized during 2016. The weighted average remaining life of the options is 5.6 years. Transactions involving our common stock awards are summarized as follows: 2015 2014 Number Number Outstanding at beginning of the period 838,792 650,002 Granted during the period 220,000 545,455 Vested during the period (457,499 ) (316,665 ) Terminated during the period (85,456 ) (40,000 ) Unvested at end of the period 515,837 838,792 Unrecognized compensation cost related to our common stock awards is $532,597 at December 31, 2015. We have estimated that we will recognize future compensation expense as follows: 2016, $306,000; 2017, $134,000; 2018, $93,000. Transactions involving our stock warrants are summarized as follows: 2015 2014 Number Weighted Average Exercise Price Number Weighted Average Exercise Price Outstanding at beginning of the period 9,269,346 $ 1.16 3,460,000 $ 1.00 Granted during the period 882,001 1.50 5,809,346 1.26 Exercised during the period — — — — Terminated during the period — — — — Outstanding at end of the period 10,151,347 $ 1.19 9,269,346 $ 1.16 Exercisable at end of the period 10,151,347 $ 1.19 9,269,346 $ 1.16 The weighted average remaining life of the warrants is 2.1 years.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11 - COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases offices under operating leases with lease terms which expire through September 30, 2021. The following is a schedule of the future minimum lease payments required under the operating leases that have initial non-cancelable lease terms in excess of one year: Fiscal year ending December 31, Minimum Lease Commitments 2016 $ 127,925 2017 127,200 2018 127,200 2019 90,000 2020 90,000 2021 67,500 Rent expense for office space amounted to $198,733 and $71,231 for the years ended December 31, 2015 and 2014, respectively. Other Commitments In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company's breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with its directors and certain of its officers and employees that will require the Company to, among other things, indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. The Company has also agreed to indemnify certain former officers, directors and employees of acquired companies in connection with the acquisition of such companies. The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its directors and certain of its officers and employees, and former officers, directors and employees of acquired companies, in certain circumstances. It is not possible to determine the maximum potential amount of exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Such indemnification agreements may not be subject to maximum loss clauses. Employment agreements We have entered into employment agreements with a number of our employees. These agreements may include provisions for base salary, guaranteed and discretionary bonuses and option grants. The agreements may contain severance provisions if the employees are terminated without cause, as defined in the agreements. Litigation From time to time, the Company may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. In addition, the Company may receive letters alleging infringement of patent or other intellectual property rights. The Company is not currently a party to any material legal proceedings, nor is the Company aware of any pending or threatened litigation that would have a material adverse effect on the Company's business, operating results, cash flows or financial condition should such litigation be resolved unfavorably.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 12 – SUBSEQUENT EVENTS On January 26, 2016 we borrowed an additional $1,600,000 pursuant to the financing agreement with Victory Park Management, LLC described in Note 3. The loan funded on January 28, 2016. In connection therewith, we issued a Senior Secured Term Note to the Lender in the principal amount of $1,600,000. As with the Initial Note, the Senior Secured Term Note bears interest at a rate per annum equal to the sum of (1) cash interest at a rate of 10% per annum, and (2) payment-in-kind (PIK) interest, as may be adjusted from time to time, based on the ratio of our consolidated indebtedness to our earnings before interest, taxes, depreciation and amortization. If we achieve a reduction in the leverage ratio as described in the Financing Agreement, the PIK interest rate declines on a sliding scale from 4% to 2%. The Senior Secured Term Note will mature on October 30, 2017. We used the proceeds from this additional draw under the Financing Agreement as a portion of the payment to Mr. Richard Steel of the first year earn out payment described in Notes 2 and 7. On February 16, 2016 we borrowed an additional $500,000 pursuant to the financing agreement with Victory Park Management, LLC described in Note 3. The loan funded on February 16, 2016. In connection therewith, we issued a Senior Secured Term Note to the Lender in the principal amount of $500,000. As with the Initial Note, the Senior Secured Term Note bears interest at a rate per annum equal to the sum of (1) cash interest at a rate of 10% per annum, and (2) payment-in-kind (PIK) interest, as may be adjusted from time to time, based on the ratio of our consolidated indebtedness to our earnings before interest, taxes, depreciation and amortization. If we achieve a reduction in the leverage ratio as described in the Financing Agreement, the PIK interest rate declines on a sliding scale from 4% to 2%. The Senior Secured Term Note will mature on October 30, 2017. We used the proceeds from this additional draw under the Financing Agreement as working capital. On January 29, 2016 we paid Richard Steel $4 million, of which $1.6 million was paid in cash and the balance was paid through the issuance of 1,283,766 shares of our Class A common stock as payment of the earnout consideration for the first Earnout period ended October 31, 2015, in accordance with the terms of the Stock Purchase Agreement described in Note 2. During January and February 2016 we received aggregate proceeds of $500,000 from the sale of 500,000 shares of our Class A common stock. Following the conversion of the remaining shares of our Series 1 Preferred Stock during 2015 into shares of our Class A Common Stock, in February 2016 we filed a Certificate of Elimination with the Secretary of State of Delaware returning all shares of previously designated Series 1 Preferred Stock to our blank check preferred stock. On February 23, 2016 our Board of Directors approved the adoption of our 2016 Equity Compensation Plan (the “ 2016 Plan On February 23, 2016 we issued an aggregate of 50,000 shares of our Class A common stock valued at $70,000 as partial compensation for services under the terms of a consulting agreement.

ORGANIZATION AND SUMMARY OF S19

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	Organization and Basis of Presentation Social Reality, Inc. ("Social Reality", "we", "us" or "the Company") is a Delaware corporation formed on August 2, 2011. Effective January 1, 2012 we acquired all of the member interests and operations of Social Reality, LLC, a California limited liability company formed on August 14, 2009, which began business in May of 2010, in exchange for 12,328,767 shares of our Class A and Class B common stock. The former members of Social Reality, LLC owned all of our common stock after the acquisition. At Social Reality, we sell digital advertising campaigns to advertising agencies and brands. We have developed technology that allows brands to launch and manage digital advertising campaigns, and we provide the platform that allows website publishers to sell their media inventory to a number of digital adverting buyers. Our focus is to provide technology tools that enable both publishers and advertisers to maximize their digital advertising initiatives. We derive our revenues from: · sales of digital advertising campaigns to advertising agencies and brands; · sales of media inventory owned by our publishing partners through real-time bidding, or RTB, exchanges; · sale and licensing of our SRAX Social platform and related media; and, · creation of custom platforms for buying media on SRAX for large brands. The core elements of this business are: · Social Reality Ad Exchange or "SRAX" Real Time Bidding sell side and buy side representation · SRAX MD · SRAXSocial, · SRAX APP, We offer our customers a number of pricing options including cost-per-thousand-impression ("CPM"), whereby our customers pay based on the number of times the target audience is exposed to the advertisement, and cost-per-engagement ("CPE"), whereby payment is triggered only when an individual takes a specific activity. Social Reality is also an approved Facebook advertising partner, through Facebook’s PMD (Preferred Marketing Developer) program. We sell targeted and measurable online advertising campaigns and programs to brand advertisers and advertising agencies across large Facebook apps and websites, generating qualified Facebook likes and quantifiable engagement for our clients, driving online sales and increased brand equity. We are headquartered in Los Angeles, California.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements include the accounts of the Company and its subsidiaries from the acquisition date of majority voting control and through the date of disposition, if any.
Use of Estimates	Use of Estimates Accounting principles generally accepted in the United States ("GAAP") require management of the Company to make estimates and assumptions in the preparation of these consolidated financial statements that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates and assumptions. The most significant areas that require management judgment and which are susceptible to possible change in the near term include the Company's revenue recognition, allowance for doubtful accounts and sales credits, stock-based compensation, income taxes, purchase price for acquisition, goodwill, other intangible assets, put rights and valuation of liabilities. The accounting policies for these areas are discussed elsewhere in these consolidated financial statements.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all short-term highly liquid investments with a remaining maturity at the date of purchase of three months or less to be cash equivalents.
Revenue Recognition	Revenue Recognition The Company recognizes revenue when the following criteria have been met: persuasive evidence of an arrangement exists, no significant Company obligations remain, collection of the related receivable is reasonably assured, and the fees are fixed or determinable. The Company acts as a principal in its revenue transactions as the Company is the primary obligor in the transactions. Revenue is recognized on a gross basis, and media and publisher expenses that are directly related to a revenue-generating event are recorded as a component of cost of revenue.
Cost of Revenue	Cost of Revenue Cost of revenue consists of payments to media providers and website publishers that are directly related to a revenue-generating event and project and application design costs. The Company becomes obligated to make payments related to media providers and website publishers in the period the advertising impressions, click-throughs, actions or lead-based information are delivered or occur. Such expenses are classified as cost of revenue in the corresponding period in which the revenue is recognized in the accompanying income statement.
Accounts Receivable	Accounts Receivable Credit is extended to customers based on an evaluation of their financial condition and other factors. Management periodically assesses the Company's accounts receivable and, if necessary, establishes an allowance for estimated uncollectible amounts. Accounts determined to be uncollectible are charged to operations when that determination is made. The Company usually does not require collateral. Allowance for doubtful accounts was $135,442 and $52,338 at December 31, 2015 and 2014, respectively.
Concentration of Credit Risk, Significant Customers and Supplier Risk	Concentration of Credit Risk, Significant Customers and Supplier Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents and accounts receivable. Cash and cash equivalents are deposited in the United States. The balances in the United States held at any one financial institution are generally in excess of Federal Deposit Insurance Corporation ("FDIC") insurance limits. The uninsured cash bank balances were approximately $591,000 at December 31, 2015. The Company has not experienced any loss on these accounts. The balances are maintained in demand accounts to minimize risk. At December 31, 2015, one customer accounted for more than 10% of the accounts receivable balance, for a total of 38%. For the year ended December 31, 2015 one customer accounted for 48% of total revenue. For the year ended December 31, 2014 no one customer accounted for 10% or more of total revenue. However, 38% of our revenue was collected and paid to us by three of our RTB exchange service providers.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company's financial instruments, including cash and cash equivalents, net accounts receivable, accounts payable and accrued expenses, are carried at historical cost. At December 31, 2015 and 2014 the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments.
Property and equipment	Property and equipment Property and equipment is stated at cost less accumulated depreciation. Depreciation is provided on the straight line basis over the estimated useful lives of the assets of three years. Expenditures for repair and maintenance which do not materially extend the useful lives of property and equipment are charged to operations. When property or equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the respective accounts with the resulting gain or loss reflected in operations. Management periodically reviews the carrying value of its property and equipment for impairment.
Intangible assets	Intangible assets Intangible assets consist of intellectual property and a non-complete agreement and are stated at cost less accumulated amortization. Amortization is provided for on the straight line basis over the estimated useful lives of the assets of five to six years.
Business Combinations	Business Combinations For all business combinations (whether partial, full or step acquisitions), the Company records 100% of all assets and liabilities of the acquired business, including goodwill, generally at their fair values; contingent consideration, if any, is recognized at its fair value on the acquisition date and; for certain arrangements, changes in fair value are recognized in earnings until settlement; and acquisition-related transaction and restructuring costs are expensed rather than treated as part of the cost of the acquisition.
Goodwill	Goodwill Our goodwill consists of the excess purchase price paid in business combinations over the fair value of assets acquired. Goodwill is considered to have an indefinite life. The Company employs the non-amortization approach to account for goodwill. Under the non-amortization approach, goodwill is not amortized into the results of operations, but instead is reviewed annually or more frequently if events or changes in circumstances indicate that the asset might be impaired, to assess whether the fair value exceeds the carrying value. The Company performs its annual goodwill and impairment assessment on September 30 of each year. When evaluating the potential impairment of goodwill we first assess a range of qualitative factors, including but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company's products and services, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, and the overall financial performance for each of the Company's reporting units. If, after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then proceed to a two-step impairment testing methodology using the income approach (discounted cash flow method). In the first step of the two step testing methodology, we compare the carrying value of the reporting unit, including goodwill, with its fair value, as determined by its estimated discounted cash flows. If the carrying value of a reporting unit exceeds its fair value, we then complete the second step of the impairment test to determine the amount of impairment to be recognized. In the second step, we estimate an implied fair value of the reporting unit's goodwill by allocating the fair value of the reporting unit to all of the assets and liabilities other than goodwill (including any unrecognized intangible assets). If the carrying value of a reporting unit's goodwill exceeds its implied fair value, the Company records an impairment loss equal to the difference in that period. When required, we arrive at our estimates of fair value using a discounted cash flow methodology which includes estimates of future cash flows to be generated by particular assets, as well as selecting a discount rate to measure the present value of those anticipated cash flows. Estimating future cash flows requires significant judgment and includes making assumptions about projected growth rates, industry-specific factors, working capital requirements, weighted average cost of capital, and current and anticipated operating conditions. The use of different assumptions or estimates for future cash flows could produce different results. No impairment of goodwill has been recorded in 2015.
Long-lived Assets	Long-lived Assets Management evaluates the recoverability of the Company's identifiable intangible assets and other long-lived assets when events or circumstances indicate a potential impairment exists. Events and circumstances considered by the Company in determining whether the carrying value of identifiable intangible assets and other long-lived assets may not be recoverable include, but are not limited to: significant changes in performance relative to expected operating results; significant changes in the use of the assets; significant negative industry or economic trends; a significant decline in the Company's stock price for a sustained period of time; and changes in the Company's business strategy. In determining if impairment exists, the Company estimates the undiscounted cash flows to be generated from the use and ultimate disposition of these assets. If impairment is indicated based on a comparison of the assets' carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairments have been recorded in 2015 or 2014.
Loss Per Share	Loss Per Share We use ASC 260, "Earnings Per Share" for calculating the basic and diluted earnings (loss) per share. We compute basic earnings (loss) per share by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted earnings (loss) per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and warrants and stock awards. For periods with a net loss, basic and diluted loss per share are the same, in that any potential common stock equivalents would have the effect of being anti-dilutive in the computation of net loss per share. There were 13,097,016 common share equivalents at December 31, 2015 and 13,096,470 at December 31, 2014. For the years ended December 31, 2015 and 2014, these potential shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share.
Income Taxes	Income Taxes We utilize ASC 740 “Income Taxes” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at year-end based on enacted laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. The Company recognizes the impact of a tax position in the financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense.
Stock-Based Compensation	Stock-Based Compensation We account for our stock based compensation under ASC 718 "Compensation – Stock Compensation" using the fair value based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. This guidance establishes standards for the accounting for transactions in which an entity exchanges it equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity's equity instruments or that may be settled by the issuance of those equity instruments. We use the fair value method for equity instruments granted to non-employees and use the Black-Scholes model for measuring the fair value of options. The stock based fair value compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement date) and is recognized over the vesting periods.
Business Segments	Business Segments The Company uses the "management approach" to identify its reportable segments. The management approach designates the internal organization used by management for making operating decisions and assessing performance as the basis for identifying the Company's reportable segments. Using the management approach, the Company determined that it has one operating segment due to business similarities and similar economic characteristics.
Recently Issued Accounting Standards	Recently Issued Accounting Standards Management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
Schedule of final allocation of the purchase price to the assets acquired and liabilities assumed based on the estimated fair values	The final allocation of the purchase price to the assets acquired and liabilities assumed based on the estimated fair values is as follows: Cash $ 32,038 Accounts receivable and other assets 2,975,728 Equipment 7,777 Non-compete agreement 1,250,000 Goodwill 16,314,957 Total assets acquired 20,580,500 Accounts payable and other liabilities (1,996,458 ) Total $ 18,584,042
Schedule of pro forma resutlts of operations	Pro forma results of operations data (unaudited) for the year ended December 31, 2014, as if the acquisition had occurred on January 1, 2014 are as follows: 2014 Revenue $ 12,558,030 Net loss (4,212,778 ) Net loss per share (0.19 )

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Payable [Abstract]
Schedule of notes payable	Notes payable consists of the following: December 31, 2015 2014 Principal amount $ 10,071,828 $ 9,000,000 PIK interest accrued 417,070 63,014 10,488,898 9,063,014 Less current portion (2,455,000 ) (1,350,000 ) Notes payable and PIK interest accrued, net of current portion $ 8,033,898 $ 7,713,014
Schedule of put liability	Activity for the put liability during the years ended December 31, 2015 and 2014 was: December 31, 2015 2014 Balance, beginning of year $ 1,260,010 $ — Present value of put liability incurred — 1,232,294 Accretion in value 176,272 27,716 Balance, December 31 $ 1,436,282 $ 1,260,010
Schedule of maturities of long term debt	The approximate maturities of the long term portion of the financing agreement are as follows: Year ended December 31, 2017 8,034,000

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consists of the following: December 31, 2015 2014 Assets: Office equipment $ 86,231 $ 52,615 Accumulated depreciation and amortization (42,295 ) (25,013 ) Carrying value $ 43,936 $ 27,602

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible assets	Intangible assets consist of the following: December 31, 2015 2014 Non-compete agreement $ 1,250,000 $ 1,250,000 Intellectual property 756,000 756,000 2,006,000 2,006,000 Accumulated amortization (394,256 ) — Carrying value $ 1,611,744 $ 2,006,000

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Schedule of contingent consideration payable	Activity for the contingent consideration payable during the years ended December 31, 2015 and 2014 was: December 31, 2015 2014 Balance, beginning of year $ 6,732,123 $ — Present value of liability incurred — 6,584,042 Accretion in value 853,312 148,081 Balance, December 31 $ 7,585,435 $ 6,732,123

ACCOUNTS PAYABLE AND ACCRUED 25

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2015
Accounts Payable and Accrued Liabilities [Abstract]
Schedule of Accounts payable and accrued expenses	Accounts payable and accrued expenses are comprised of the following: December 31, 2015 2014 Accounts payable, trade $ 3,003,642 $ 2,240,894 Accrued expenses 45,450 136,065 Accrued compensation 659,262 168,274 Accrued commissions 1,430,453 336,887 Balance, December 31 $ 5,138,807 $ 2,882,120

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of Effective tax rate	A reconciliation of the federal statutory income tax rate to the Company's effective income tax rate is as follows: Year Ended December 31, 2015 2014 Federal statutory income tax rate (34.0 )% (34.0 )% State income taxes, net of federal benefit (3.0 ) (5.3 ) Stock based compensation 0.2 15.4 Acquisition expenses 0.0 6.2 Permanent differences 16.5 1.3 Other 1.5 1.5 Change in valuation allowance 18.8 14.9 Provision for income taxes 0.0 % 0.0 %
Schedule of Deferred Tax Assets and Liabilities	Significant components of the Company's deferred income taxes are shown below: Year Ended December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 1,785,000 $ 1,785,000 Fixed assets 3,000 2,000 Stock based compensation — — Total deferred tax assets 1,788,000 1,787,000 Deferred tax liabilities Stock based compensation (128,000 ) (122,000 ) Other accruals (32,000 ) (31,000 ) Total deferred tax liabilities (160,000 ) (153,000 ) Net deferred tax assets Valuation allowance (1,628,000 ) (1,634,000 ) Net deferred tax liability $ — $ —

STOCK OPTIONS AND WARRANTS (Tab

STOCK OPTIONS AND WARRANTS (Tables)	12 Months Ended
	Dec. 31, 2015
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of stock options, common stock awards and stock warrants	Transactions involving our common stock awards are summarized as follows: 2015 2014 Number Number Outstanding at beginning of the period 838,792 650,002 Granted during the period 220,000 545,455 Vested during the period (457,499 ) (316,665 ) Terminated during the period (85,456 ) (40,000 ) Unvested at end of the period 515,837 838,792
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of stock options, common stock awards and stock warrants	Transactions involving our stock warrants are summarized as follows: 2015 2014 Number Weighted Average Exercise Price Number Weighted Average Exercise Price Outstanding at beginning of the period 9,269,346 $ 1.16 3,460,000 $ 1.00 Granted during the period 882,001 1.50 5,809,346 1.26 Exercised during the period — — — — Terminated during the period — — — — Outstanding at end of the period 10,151,347 $ 1.19 9,269,346 $ 1.16 Exercisable at end of the period 10,151,347 $ 1.19 9,269,346 $ 1.16
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of stock options, common stock awards and stock warrants	Transactions involving our stock options are summarized as follows: 2015 2014 Number Weighted Average Exercise Price Number Weighted Average Exercise Price Outstanding at beginning of the period 2,345,000 $ 1.26 426,000 $ 1.04 Granted during the period 597,000 1.69 2,427,000 1.32 Exercised during the period — — — — Terminated during the period (558,000 ) 1.13 (508,000 ) 1.35 Outstanding at end of the period 2,384,000 $ 1.40 2,345,000 $ 1.26 Exercisable at end of the period 494,163 $ 1.20 177,171 $ 1.13

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule Of Future Minimum Payments	The following is a schedule of the future minimum lease payments required under the operating leases that have initial non-cancelable lease terms in excess of one year: Fiscal year ending December 31, Minimum Lease Commitments 2016 $ 127,925 2017 127,200 2018 127,200 2019 90,000 2020 90,000 2021 67,500

ORGANIZATION AND SUMMARY OF S29

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	1 Months Ended	12 Months Ended
	Jan. 31, 2012shares	Dec. 31, 2015USD ($)Itemshares	Dec. 31, 2014USD ($)shares
Uninsured cash bank balance | $		$ 591,000
Number of operating segments | Item		1
Property and equipment estimated useful life		3 years
Antidilutive common share equivalents | shares		13,097,016	13,096,470
Allowance for doubtful accounts | $		$ 135,442	$ 52,338
Minimum [Member]
Intangible assets estimated useful life		5 years
Maximum [Member]
Intangible assets estimated useful life		6 years
Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration risk percentage		10.00%
Accounts Receivable [Member] | Credit Concentration Risk [Member]
Concentration risk percentage		38.00%
Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
Concentration risk percentage			10.00%
Sales Revenue, Net [Member] | Credit Concentration Risk [Member]
Concentration risk percentage		48.00%
Sales Revenue, Net [Member] | Three Rtb Exchange Service Provider [Member]
Concentration risk percentage		38.00%
Social Reality Llc [Member]
Effective date of business acquisition	Jan. 1, 2012
Social Reality Llc [Member] | Class A and Class B Common Stock [Member]
Shares issued in business acquisition | shares	12,328,767

ACQUISITIONS (Acquisition of St

ACQUISITIONS (Acquisition of Steel Media) (Details) - USD ($)	Dec. 19, 2015	Oct. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Oct. 30, 2015	Dec. 31, 2013
Business Acquisition [Line Items]
Cash payment				$ 2,000,000
Earnout consideration			$ 7,585,435	$ 6,732,123
Five Delta Inc [Member]
Business Acquisition [Line Items]
Ownership acquired (as a percent)	100.00%
Purchase consideration	$ 756,000
Five Delta Inc [Member] | Common Class A [Member]
Business Acquisition [Line Items]
Escrow shares	300,000
Steel Media [Member]
Business Acquisition [Line Items]
Ownership acquired (as a percent)		100.00%
Cash payment		$ 7,500,000
Cash payment held in escrow		2,000,000
Earnout consideration			6,732,123
Present Value of earnout consideration		6,584,042	6,584,042		$ 6,584,042
Acquisition price		$ 18,584,042
Period of earnout consideration payment		2 years
Percentage of earnout consideration		100.00%
Steel Media [Member] | Contingent Consideration Payable [Member]
Business Acquisition [Line Items]
Earnout consideration			$ 6,732,123
Steel Media [Member] | Senior Subordinated Notes [Member]
Business Acquisition [Line Items]
Notes term		1 year
Notes issued		$ 2,500,000
Interest rate (as a percent)		5.00%
Notice period for prepayment of debt		5 days
Steel Media [Member] | Maximum [Member]
Business Acquisition [Line Items]
Purchase consideration		$ 20,000,000
Earnout consideration		$ 8,000,000
Steel Media [Member] | Common Class A [Member]
Business Acquisition [Line Items]
Percentage of earnout consideration to be paid in shares		60.00%
Period when registration rights can be exercised		180 days
Steel Media [Member] | Common Class A [Member] | Senior Subordinated Notes [Member]
Business Acquisition [Line Items]
Escrow shares		2,386,863

ACQUISITIONS (Final allocation

ACQUISITIONS (Final allocation of the purchase price to the assets acquired and liabilities) (Details) - Steel Media [Member]	Oct. 30, 2014USD ($)
Final allocation of the purchase price to the assets acquired and liabilities assumed based on the estimated fair values
Cash	$ 32,038
Accounts receivable and other assets	2,975,728
Equipment	7,777
Non-compete agreement	1,250,000
Goodwill	16,314,957
Total assets acquired	20,580,500
Accounts payable and other liabilities	(1,996,458)
Total	$ 18,584,042

ACQUISITIONS (Pro forma Results

ACQUISITIONS (Pro forma Results of Operations) (Details) - Steel Media [Member]	12 Months Ended
	Dec. 31, 2014USD ($)$ / shares
Pro forma Results of Operations
Revenue	$ 12,558,030
Net loss	$ (4,212,778)
Net loss per share | $ / shares	$ (0.18)
Revenue of acquiree since the acquisition date included in the consolidated statement of operations	$ 1,896,000
Earnings of acquiree since the acquisition date included in the consolidated statement of operations	$ 490,000

ACQUISITIONS (Acquisition of Fi

ACQUISITIONS (Acquisition of Five Delta, Inc.) (Details) - Five Delta Inc [Member]	Dec. 19, 2015USD ($)shares
Business Acquisition [Line Items]
Ownership acquired (as a percent)	100.00%
Purchase consideration | $	$ 756,000
Common Class A [Member]
Business Acquisition [Line Items]
Number of common stock issued	600,000
Escrow shares	300,000
Period from the closing date during which entity has a right of refusal over the shares of common stock	4 years
Lock Up Agreement term	24 months
Percentage of common stock released from the lock up on the one year anniversary	50.00%

NOTES PAYABLE (Financing Agreem

NOTES PAYABLE (Financing Agreement with Victory Park Management, LLC as agent for the lenders) (Details) - USD ($)	Oct. 26, 2015	Jul. 06, 2015	Oct. 30, 2014	Jan. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Jan. 31, 2016
Debt Instrument [Line Items]
Exercise period of warrants				3 years
Number of shares to be issued							882,001
Exercise price of warrants							$ 1.50
Amortization of debt issue costs					$ 1,252,963	$ 256,616
Deferred debt issue costs					$ 1,654,773	$ 2,907,736
Secured Debt [Member]
Debt Instrument [Line Items]
Notes issued	$ 1,400,000	$ 1,500,000	$ 9,000,000
Percentage of equity interest pledged			100.00%
Interest rate (as a percent)			10.00%
Paid-in-kind interest rate (as a percent)			4.00%
Exercise period of warrants			5 years
Exercise price of warrants			$ 1
Percentage of revenue used as base to calculate purchase price			50.00%
Amount used as base to calculate purchase price			$ 1,500,000
Present value of put liability			1,232,294
Costs related to agreement			$ 3,164,352
Maturity date	Oct. 30, 2017	Oct. 30, 2017
Secured Debt [Member] | Common Class A [Member]
Debt Instrument [Line Items]
Number of shares to be issued			2,900,000
Minimum [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Paid-in-kind interest rate (as a percent)			2.00%
Maximum [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Notes issued			$ 20,000,000
Paid-in-kind interest rate (as a percent)			4.00%

NOTES PAYABLE (Schedule of Note

NOTES PAYABLE (Schedule of Notes Payable) (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Notes Payable [Abstract]
Principal amount	$ 10,071,828	$ 9,000,000
PIK interest accrued	417,070	63,014
Notes payable	10,488,898	9,063,014
Less current portion	(2,455,000)	(1,350,000)
Notes payable and PIK interest accrued, net of current portion	$ 8,033,898	$ 7,713,014

NOTES PAYABLE (Schedule of Put

NOTES PAYABLE (Schedule of Put Liability) (Details) - Put Liability Notes Payable [Member] - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Activity for the put liability- notes payable [Roll Forward]
Beginning balance	$ 1,260,010
Present value of put liability incurred		$ 1,232,294
Accretion in Value	$ 176,272	27,716
Ending balance	$ 1,436,282	$ 1,260,010

NOTES PAYABLE (Maturities of lo

NOTES PAYABLE (Maturities of long term debt) (Details)	Dec. 31, 2015USD ($)
Notes Payable Maturities Of Long Term Debt Details
2,017	$ 8,034,000

NOTES PAYABLE (Note payable - R

NOTES PAYABLE (Note payable - Richard Steel) (Details) - Senior Subordinated Notes [Member] - Steel Media [Member] - USD ($)	Oct. 30, 2014	Oct. 29, 2015	Aug. 31, 2015
Debt Instrument [Line Items]
Notes term	1 year
Notes issued	$ 2,500,000
Interest rate (as a percent)	5.00%
Notice period for prepayment of debt	5 days
Notes repaid		$ 2,258,263	$ 241,737
Accrued interest		$ 122,861
Common Class A [Member]
Debt Instrument [Line Items]
Escrow shares	2,386,863

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details)	Sep. 22, 2015Item$ / sharesshares	Aug. 05, 2015$ / sharesshares	Dec. 19, 2014$ / sharesshares	Nov. 05, 2014$ / sharesshares	Oct. 30, 2014USD ($)Item$ / sharesshares	Aug. 15, 2014$ / sharesshares	May. 05, 2014shares	Mar. 15, 2014shares	Feb. 28, 2015$ / sharesshares	Jan. 31, 2015USD ($)Item$ / sharesshares	Dec. 31, 2014$ / sharesshares	Dec. 19, 2014shares	Jun. 30, 2014shares	Jun. 19, 2014shares	May. 31, 2014shares	Feb. 28, 2014$ / sharesshares	Sep. 30, 2015Item	Dec. 31, 2015USD ($)Item$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Jan. 31, 2016$ / sharesshares	Oct. 16, 2015$ / sharesshares
Preferred Stock, shares authorized											50,000,000							50,000,000	50,000,000
Preferred Stock, par value per share | $ / shares											$ 0.001							$ 0.001	$ 0.001
Common Stock, shares authorized																		259,000,000
Expense related to restricted stock awards | $																			$ 228,416
Amortization of fair value of stock options | $																		$ 191,612	33,468
Warrants to purchase shares of common stock, number of shares of common stock																				882,001
Exercise price of warrant | $ / shares																				$ 1.50
Exercise period of warrants										3 years
Common stock issued for consulting services | $																		$ 101,364
Fees paid to placement agents and selling agent , including commissions and a non-accountable expense allowance | $					$ 678,000
Common stock issued pursuant to the vesting of stock grants, shares													133,332
Common stock warrants issued																				882,001
Fair value of shares vested | $																			$ 447,911
Common Stock [Member]
Common stock issued upon conversion of preferred stock, shares																		860,000	350,000
Common stock issued for consulting services, shares																		92,149
Common stock issued for consulting services | $																		$ 92
Common stock issued for acquisition, shares																			600,000
Five Delta [Member]
Ownership acquired (as a percent)			100.00%									100.00%
T.R. Winston and Company, LLC [Member] | Financing Agreement [Member]
Loan origination fee | $					$ 580,000
Common Stock Awards [Member]
Expense related to restricted stock awards | $																		$ 34,360
Share-based compensation, vesting period	3 years
Common stock awards granted	220,000
Number of employees to whom common stock awards granted | Item	9
Awards forfeited																		85,456
Common Stock Awards Granted in Prior Years [Member]
Expense related to restricted stock awards | $																		$ 459,525
Employee Stock Option [Member]
Awards forfeited																		543,000
Employee Stock Option [Member] | Director [Member]
Granted during the period									12,000							12,000
Share-based compensation, vesting period									1 year							1 year
Granted during the period, exercise price | $ / shares									$ 1.20							$ 2.70
Award term									5 years							5 years
Stock options granted, grant date fair value | $ / shares									$ 0.62							$ 0.65
Share-based compensation, risk free interest rate									0.50%							0.375%
Share-based compensation, expected dividend yield									0.00%							0.00%
Share-based compensation, expected volatility rate									99.00%							43.00%
Share-based compensation, expected life in years									2 years							2 years
Amortization of fair value of stock options | $																		$ 6,845
Employee Stock Option [Member] | Employee One [Member]
Granted during the period		200,000
Share-based compensation, vesting period		3 years
Granted during the period, exercise price | $ / shares		$ 1.65
Award term		3 years
Stock options granted, grant date fair value | $ / shares		$ 0.74
Share-based compensation, risk free interest rate		0.625%
Share-based compensation, expected dividend yield		0.00%
Share-based compensation, expected volatility rate		85.00%
Share-based compensation, expected life in years		2 years
Amortization of fair value of stock options | $																		20,478
Employee Stock Option [Member] | Employee Two [Member]
Granted during the period	385,000
Share-based compensation, vesting period	3 years
Granted during the period, exercise price | $ / shares	$ 1.73
Award term	3 years
Stock options granted, grant date fair value | $ / shares	$ 0.79
Share-based compensation, risk free interest rate	0.625%
Share-based compensation, expected dividend yield	0.00%
Share-based compensation, expected volatility rate	85.00%
Share-based compensation, expected life in years	2 years
Amortization of fair value of stock options | $																		$ 26,328
Awards forfeited																		15,000
Employee Stock Option [Member] | Employee [Member] | August 15, 2014 [Member]
Granted during the period						310,000
Share-based compensation, vesting period						3 years
Granted during the period, exercise price | $ / shares						$ 1
Award term						3 years
Stock options granted, grant date fair value | $ / shares						$ 0.29
Share-based compensation, risk free interest rate						0.875%
Share-based compensation, expected dividend yield						0.00%
Share-based compensation, expected volatility rate						41.00%
Share-based compensation, expected life in years						3 years
Amortization of fair value of stock options | $																			$ 11,121
Employee Stock Option [Member] | Employee [Member] | December 19, 2014 [Member]
Granted during the period			100,000
Share-based compensation, vesting period			2 years
Granted during the period, exercise price | $ / shares			$ 1.26
Award term			3 years
Stock options granted, grant date fair value | $ / shares			$ 0.53
Share-based compensation, risk free interest rate			0.375%
Share-based compensation, expected dividend yield			0.00%
Share-based compensation, expected volatility rate			75.00%
Share-based compensation, expected life in years			2 years 1 month 17 days
Amortization of fair value of stock options | $																			739
Employee Stock Option [Member] | President [Member]
Granted during the period					600,000
Granted during the period, exercise price | $ / shares					$ 1.50
Award term					10 years
Stock options granted, grant date fair value | $ / shares					$ 0.45
Share-based compensation, risk free interest rate					0.875%
Share-based compensation, expected dividend yield					0.00%
Share-based compensation, expected volatility rate					75.00%
Share-based compensation, expected life in years					3 years 6 months
Amortization of fair value of stock options | $																			13,012
Employee Stock Option [Member] | Two Employees [Member]
Granted during the period					275,000
Share-based compensation, vesting period					4 years
Granted during the period, exercise price | $ / shares					$ 1.50
Award term					10 years
Stock options granted, grant date fair value | $ / shares					$ 0.36
Share-based compensation, risk free interest rate					0.625%
Share-based compensation, expected dividend yield					0.00%
Share-based compensation, expected volatility rate					75.00%
Share-based compensation, expected life in years					2 years 6 months
Amortization of fair value of stock options | $																			4,114
Employee Stock Option [Member] | Chief Financial Officer [Member]
Granted during the period				500,000
Share-based compensation, vesting period				3 years
Granted during the period, exercise price | $ / shares				$ 1.10
Award term				3 years
Stock options granted, grant date fair value | $ / shares				$ 0.45
Share-based compensation, risk free interest rate				0.375%
Share-based compensation, expected dividend yield				0.00%
Share-based compensation, expected volatility rate				75.00%
Share-based compensation, expected life in years				2 years
Amortization of fair value of stock options | $																			12,416
Private Placement [Member]
Exercise price of warrant | $ / shares										$ 2
Proceeds from issuance of private placement | $					$ 4,220,500					$ 1,468,001
Securities sold to accredited investors in a private placement, units					4,220,500					978,668
Puchase price, per unit | $ / shares					$ 1					$ 1.50
Number Of Accredited Investors In Private Placement | Item					28					22
Fees paid to placement agents and selling agent , including commissions and a non-accountable expense allowance | $										$ 190,840
Warrants issued to pay placement agents and selling agent										97,866
Additional Private Placement Expenses | $																			25,744
Net proceeds used for working capital | $																			1,251,416
Private Placement [Member] | T.R. Winston and Company, LLC [Member]
Exercise price of warrant | $ / shares					$ 1.50
Proceeds from issuance of private placement | $					$ 800,000
Exercise period of warrants					3 years
Securities sold to accredited investors in a private placement, units					800,000
Fees paid to placement agents and selling agent , including commissions and a non-accountable expense allowance | $					$ 351,435
Warrants issued to pay placement agents and selling agent					301,230
Net proceeds from the offering | $					$ 2,500,000
Restricted Stock [Member] | Employee [Member] | Common Stock [Member] | May 2014 [Member]
Expense related to restricted stock awards | $																			$ 36,667
Share-based compensation, vesting period															3 years
Common stock awards granted															200,000
Awards forfeited																			40,000
Restricted Stock [Member] | Employee [Member] | Common Stock [Member] | August 15, 2014 [Member]
Expense related to restricted stock awards | $																			$ 31,251
Common stock awards granted						250,000
Number of shares will vest quarterly with an initial vesting date of January 1, 2015																			31,250
Restricted Stock [Member] | Employee [Member] | Common Stock [Member] | November 5, 2014 [Member]
Expense related to restricted stock awards | $																			$ 22,644
Common stock awards granted							45,455
Restricted Stock [Member] | Employee [Member] | Common Stock [Member] | December 19, 2014 [Member]
Expense related to restricted stock awards | $																			1,732
Common stock awards granted												50,000
Thirteen Employees [Member] | Chief Financial Officer [Member]
Granted during the period				130,000
Share-based compensation, vesting period				3 years
Granted during the period, exercise price | $ / shares				$ 1.50
Award term				3 years
Stock options granted, grant date fair value | $ / shares				$ 0.35
Share-based compensation, risk free interest rate				0.375%
Share-based compensation, expected dividend yield				0.00%
Share-based compensation, expected volatility rate				75.00%
Share-based compensation, expected life in years				2 years
Amortization of fair value of stock options | $																			$ 2,512
Series A Preferred Stock [Member]
Preferred Stock, shares authorized											200,000							200,000	200,000		200,000
Preferred Stock, par value per share | $ / shares											$ 0.001							$ 0.001	$ 0.001		$ 0.001
Number of preferred stock converted to common stock																		86,000	35,000
Common Class A [Member]
Common Stock, shares authorized											250,000,000							250,000,000	250,000,000
Common Stock, par value per share | $ / shares											$ 0.001							$ 0.001	$ 0.001
Voting rights per share | Item																		1
Common stock issued upon conversion of preferred stock, shares											350,000							860,000	350,000
Shares issued for stock awards that have vested																		128,331
Common stock issued for consulting services, shares																		92,149
Common stock issued for consulting services | $																		$ 101,364
Common Stock, shares issued											29,416,612							28,110,229	29,416,612
Common Class A [Member] | Five Delta [Member]
Common stock issued for acquisition, shares			600,000
Common Class A [Member] | Employee Stock Option [Member] | Employee [Member]
Granted during the period														300,000
Common Class A [Member] | Employee Stock Option [Member] | Non Employee [Member]
Granted during the period								200,000
Amortization of fair value of stock options | $																			$ 7,678
Common Class A [Member] | Private Placement [Member]
Warrants to purchase shares of common stock, number of shares of common stock					2,510,250
Exercise period of warrants					3 years
Additional Private Placement Expenses | $					$ 12,885
Number of shares called by each warrant					.50
Number of shares issued for each unit in private placement					1
Number of warrants issued for each unit in private placement					1
Notice Period for Redemption of Warrants					20 days
Redemption price of warrants (in dollars per share) | $ / shares					$ 0.001
Share price (in dollars per share) | $ / shares					$ 3.75
Number of consecutive trading days					20 days
Daily average minimum volume in 20 consecutive trading days (in shares)					100,000
Common Stock, shares issued					5,020,500
Common stock warrants issued					2,510,250
Common Class B [Member]
Common Stock, shares authorized											9,000,000							9,000,000	9,000,000
Common Stock, par value per share | $ / shares											$ 0.001							$ 0.001	$ 0.001
Voting rights per share | Item																	10
Common Stock, shares issued											0							0	0
Warrant [Member]
Proceeds from issuance of private placement | $										$ 8,820

PROPERTY AND EQUIPMENT (Schedul

PROPERTY AND EQUIPMENT (Schedule of Property and equipment) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Accumulated depreciation and amortization	$ (42,295)	$ (25,013)
Carrying value	43,936	27,602
Depreciation expense	17,282	14,829
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment	$ 86,231	$ 52,615

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details)	Dec. 31, 2015USD ($)
2,016	$ 359,533
2,017	359,533
2,018	359,533
2,019	359,533
2,020	173,612
Intellectual Property [Member]
Amortization expense	151,200
Non-compete agreement [Member]
Amortization expense	$ 243,056

INTANGIBLE ASSETS (Schedule of

INTANGIBLE ASSETS (Schedule of Intangible assets) (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Intangible assets	$ 2,006,000	$ 2,006,000
Accumulated amortization	(394,256)
Carrying value	1,611,744	$ 2,006,000
Intellectual Property [Member]
Intangible assets	756,000	756,000
Non-compete agreement [Member]
Intangible assets	$ 1,250,000	$ 1,250,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	Jan. 29, 2016	Dec. 31, 2015	Oct. 30, 2015	Oct. 29, 2015	Aug. 31, 2015	Dec. 31, 2014	Oct. 30, 2014	Dec. 31, 2013
Related Party Transaction [Line Items]
Note payable - related party						$ 2,500,000
Contingent Earnout Consideration		$ 7,585,435				$ 6,732,123
Steel Media [Member]
Related Party Transaction [Line Items]
Contingent Earnout Consideration		6,732,123
Value of earnout consideration paid in cash	$ 1,600,000
Present value of consideration		$ 6,584,042	$ 6,584,042				$ 6,584,042
Contingent Earnout Consideration paid	$ 4,000,000
Earnout consideration paid in shares		1,283,766
Steel Media [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Contingent Earnout Consideration							$ 8,000,000
Steel Media [Member] | Richard Steel [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Contingent Earnout Consideration		$ 8,000,000
Senior Subordinated Notes [Member] | Richard Steel [Member]
Related Party Transaction [Line Items]
Note payable - related party		$ 2,500,000
Senior Subordinated Notes [Member] | Steel Media [Member]
Related Party Transaction [Line Items]
Partial prepayment on notes payable				$ 2,258,263	$ 241,737
Accrued interest				$ 122,861

RELATED PARTY TRANSACTIONS (Sch

RELATED PARTY TRANSACTIONS (Schedule of contingent consideration payable) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Activity for the contingent consideration payable [Roll Forward]
Beginning of period	$ 6,732,123
Present value of liability incurred		$ 6,584,042
Accretion in Value	$ 853,312	148,081
End of period	$ 7,585,435	$ 6,732,123

ACCOUNTS PAYABLE AND ACCRUED 45

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Accounts Payable and Accrued Liabilities [Abstract]
Accounts payable, trade	$ 3,003,642	$ 2,240,894
Accrued expenses	45,450	136,065
Accrued compensation	659,262	168,274
Accrued commissions	1,430,453	336,887
Balance, December 31	$ 5,138,807	$ 2,882,120

INCOME TAXES (Details)

INCOME TAXES (Details)	12 Months Ended
	Dec. 31, 2015USD ($)
Income Tax Disclosure [Abstract]
Increase (decrease) in valuation allowance	$ (6,000)
Federal net operating losses, or NOL, carryforwards	4,500,000
State net operating losses, or NOL, carryforwards	$ 4,500,000
Operating loss carry-forward expiration dates	Dec. 31, 2032
Unrecognized tax benefits	$ 0
Accruals for interest and penalties related to unrecognized tax benefits	$ 0

INCOME TAXES (Schedule of Effec

INCOME TAXES (Schedule of Effective tax rate) (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Federal statutory income tax rate	(34.00%)	(34.00%)
State income taxes, net of federal benefit	(3.00%)	(5.30%)
Stock based compensation	0.20%	15.40%
Acquisition expenses	0.00%	6.20%
Permanent differences	16.50%	1.30%
Other	1.50%	1.50%
Change in valuation allowance	18.80%	14.90%
Provision for income taxes	0.00%	0.00%

INCOME TAXES (Schedule of Defer

INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Net operating loss carry forward	$ 1,785,000	$ 1,785,000
Fixed assets	$ 3,000	$ 2,000
Stock based compensation
Total deferred tax assets	$ 1,788,000	$ 1,787,000
Deferred tax liabilities
Stock based compensation	(128,000)	(122,000)
Other accruals	(32,000)	(31,000)
Total deferred tax liabilities	(160,000)	(153,000)
Net deferred tax assets
Less: valuation allowance	$ (1,628,000)	$ (1,634,000)
Net deferred tax liability

STOCK OPTIONS AND WARRANTS (Det

STOCK OPTIONS AND WARRANTS (Details) - USD ($)	Nov. 05, 2014	Jan. 31, 2013	Dec. 31, 2015	Jan. 31, 2012
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining life			2 years 1 month 6 days
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value, outstanding			$ 963,184
Intrinsic value, exercisable			$ 295,550
Average remaining contractual life outstanding			3 years 7 months 6 days
Compensation cost related to unvested employee options not yet recognized			$ 756,643
Weighted average remaining life			5 years 7 months 6 days
Exercisable at end of the period			494,163
Options expected to recognize			$ 321,000
Equity Compensation 2012 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized				3,000,000
Exercise price		$ 100
Equity Compensation 2014 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	3,000,000
Exercise price	$ 100

STOCK OPTIONS AND WARRANTS (Sum

STOCK OPTIONS AND WARRANTS (Summary of Stock Options Activity) (Details) - Employee Stock Option [Member] - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Options
Outstanding at beginning of the period	2,345,000	426,000
Granted during the period	597,000	2,427,000
Exercised during the period
Terminated during the period	(558,000)	(508,000)
Outstanding at end of the period	2,384,000	2,345,000
Exercisable at end of the period	494,163	177,171
Weighted Average Exercise Price
Outstanding at beginning of the period	$ 1.26	$ 1.04
Granted during the period	$ 1.69	$ 1.32
Exercised during the period
Terminated during the period	$ 1.13	$ 1.35
Outstanding at end of the period	1.40	1.26
Exercisable at end of the period	$ 1.20	$ 1.13

STOCK OPTIONS AND WARRANTS (S51

STOCK OPTIONS AND WARRANTS (Summary of Common Stock Award Activity) (Details) - Common Stock Awards [Member] - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Warrant activity, number of shares:
Outstanding at beginning of the period	838,792	650,002
Granted during the period	220,000	545,455
Vested during the period	(457,499)	(316,665)
Terminated during the period	(85,456)	(40,000)
Outstanding at the end of period	515,837	838,792
Unrecognized compensation cost	$ 532,597
2,016	306,000
2,017	134,000
2,018	$ 93,000

STOCK OPTIONS AND WARRANTS (S52

STOCK OPTIONS AND WARRANTS (Summary of Stock Warrants Activity) (Details) - Warrant [Member] - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Warrant activity, number of shares:
Outstanding at beginning of the period	9,269,346	3,460,000
Granted during the period	882,001	5,809,346
Exercised during the period
Terminated during the period
Outstanding at the end of period	10,151,347	9,269,346
Exercisable at end of the period	10,151,347	9,269,346
Warrant activity, weighted average exercise price:
Outstanding at beginning of the period	$ 1.16	$ 1
Granted during the period	$ 1.50	$ 1.26
Exercised during the period
Terminated during the period
Outstanding at end of the period	$ 1.19	$ 1.16
Exercisable at end of the period	$ 1.19	$ 1.16

COMMITMENTS AND CONTINGENCIES53

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Schedule of the future minimum lease payments
2,016	$ 127,925
2,017	127,200
2,018	127,200
2,019	90,000
2,020	90,000
2,021	$ 67,500
Lease expiration period	Sep. 30, 2021
Rent expense	$ 198,733	$ 71,231

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)

Oct. 30, 2014

Feb. 16, 2016

Jan. 26, 2016

Feb. 29, 2016

Dec. 31, 2015

Dec. 31, 2014

Feb. 23, 2016

Jan. 29, 2016

Oct. 29, 2015

Oct. 26, 2015

Aug. 31, 2015

Jul. 06, 2015

Subsequent Event [Line Items]

Aggregate proceeds from sale

$ 3,950,747

Secured Debt [Member]

Subsequent Event [Line Items]

Debt instrument, face amount

$ 9,000,000

$ 1,400,000

$ 1,500,000

Interest rate (as a percent)

10.00%

Paid-in-kind interest rate (as a percent)

4.00%

Secured Debt [Member] | Minimum [Member]

Subsequent Event [Line Items]

Paid-in-kind interest rate (as a percent)

2.00%

Secured Debt [Member] | Maximum [Member]

Subsequent Event [Line Items]

Debt instrument, face amount

$ 20,000,000

Paid-in-kind interest rate (as a percent)

4.00%

Steel Media [Member]

Subsequent Event [Line Items]

Earnout consideration paid in shares

1,283,766

Senior Subordinated Notes [Member] | Steel Media [Member]

Subsequent Event [Line Items]

Debt instrument, face amount

$ 2,500,000

Interest rate (as a percent)

5.00%

Partial prepayment on notes payable

$ 2,258,263

$ 241,737

Common Class A [Member]

Subsequent Event [Line Items]

Common stock issued, shares

28,110,229

29,416,612

Common stock issued, value

$ 28,110

$ 27,030

Subsequent Event [Member] | Secured Debt [Member]

Subsequent Event [Line Items]

Proceeds from agreement

$ 500,000

$ 1,600,000

Debt instrument, face amount

$ 500,000

$ 1,600,000

Interest rate (as a percent)

10.00%

10.00%

Subsequent Event [Member] | Secured Debt [Member] | Minimum [Member]

Subsequent Event [Line Items]

Paid-in-kind interest rate (as a percent)

2.00%

2.00%

Subsequent Event [Member] | Secured Debt [Member] | Maximum [Member]

Subsequent Event [Line Items]

Paid-in-kind interest rate (as a percent)

4.00%

4.00%

Subsequent Event [Member] | Senior Subordinated Notes [Member] | Steel Media [Member]

Subsequent Event [Line Items]

Notes repaid

$ 4,000,000

Partial prepayment on notes payable

$ 1,600,000

Earnout consideration paid in shares

1,283,766

Subsequent Event [Member] | Common Class A [Member]

Subsequent Event [Line Items]

Aggregate proceeds from sale

$ 500,000

Aggregate proceeds from issuance of shares, shares

500,000

Subsequent Event [Member] | Common Class A [Member] | Equity Compensation Plan[Member]

Subsequent Event [Line Items]

Shares reserved under the plan

3,000,000

Subsequent Event [Member] | Common Class A [Member] | Consulting Agreement member [Member]

Subsequent Event [Line Items]

Common stock issued, shares

50,000

Common stock issued, value

$ 70,000