SRAX (SRAX) 10-Q 15 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 12, 2016
Document And Entity Information
Entity Registrant Name	SOCIAL REALITY, Inc.
Entity Central Index Key	1,538,217
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		29,977,925
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 674,820	$ 1,091,186
Accounts receivable, net	8,351,466	7,056,298
Prepaid expenses	322,833	309,436
Other current assets	6,488	36,090
Total current assets	9,355,607	8,493,010
Property and equipment, net of accumulated depreciation of $65,975 and $42,295	35,433	43,936
Goodwill	15,644,957	16,314,957
Intangible assets, net	1,431,979	1,611,744
Prepaid stock based compensation	56,341	373,567
Other assets	34,659	34,659
Total assets	26,558,976	26,871,873
Current liabilities:
Accounts payable and accrued expenses	7,931,990	5,138,807
Notes payable, current portion, net of unamortized costs of $1,088,168 and $1,076,633	10,374,914	1,378,367
Unearned revenue	45,042	1,295
Contingent consideration payable to related party		7,585,435
Put liability	1,500,000	1,436,282
Total current liabilities	19,851,946	15,540,186
Notes payable, net of unamortized costs of $0 and $578,140		7,455,758
Total liabilities	19,851,946	22,995,944
Stockholders' equity:
Preferred stock, authorized 50,000,000 shares, $0.001 par value, Undesignated, 49,800,000 shares, no shares issued and outstanding Series 1 Preferred stock, authorized 200,000 shares, no shares and 121,000 shares issued and outstanding, respectively
Additional paid in capital	17,347,276	13,989,590
Accumulated deficit	(10,670,224)	(10,141,771)
Total stockholders' equity	6,707,030	3,875,929
Total liabilities and stockholders' equity	26,558,976	26,871,873
Common Class A [Member]
Stockholders' equity:
Common stock	29,978	28,110
Common Class B [Member]
Stockholders' equity:
Common stock

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Property and equipment, accumulated depreciation	$ 65,975	$ 42,295
Notes payable, unamortized discount current portion	1,088,168	1,076,633
Notes payable, unamortized discount noncurrent portion	$ 0	$ 578,140
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
Common Stock, shares authorized	259,000,000
Common Stock, par value per share	$ 0.001
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	29,977,925	28,110,229
Common Stock, shares outstanding	29,977,925	28,110,229
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

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Revenues	$ 9,249,410	$ 10,761,573	$ 14,718,746	$ 14,782,857
Cost of revenue	6,262,807	5,158,443	9,443,370	7,400,918
Gross profit	2,986,603	5,603,130	5,275,376	7,381,939
Operating expense:
General, selling and administrative expenses	3,425,591	4,252,752	7,230,691	7,162,752
Impairment of goodwill	670,000		670,000
Income (loss) from operations	(1,108,988)	1,350,378	(2,625,315)	219,187
Other income (expense):
Write off of contingent consideration	3,744,496		3,744,496
Interest income (expense)	(762,307)	(934,787)	(1,647,634)	(1,858,057)
Nonoperating income (expense)	2,982,189	(934,787)	2,096,862	(1,858,057)
Income (loss) before provision for income taxes	1,873,201	415,591	(528,453)	(1,638,870)
Provision for income taxes
Net income (loss)	$ 1,873,201	$ 415,591	$ (528,453)	$ (1,638,870)
Net income (loss) per share, basic	$ 0.06	$ 0.02	$ (0.02)	$ (0.06)
Net income (loss) per share, diluted	$ 0.06	$ 0.01	$ (0.02)	$ (0.06)
Weighted average shares outstanding, basic	29,932,470	26,911,285	29,757,224	26,879,029
Weighted average shares outstanding, diluted	32,691,023	29,520,556	29,757,224	26,879,029

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (528,453)	$ (1,638,870)
Adjustments to reconcile net loss to net cash provided (used) by operating activities:
Amortization of stock based prepaid fees	317,226	317,226
Stock based compensation	459,556	446,683
Amortization of debt issue costs	566,604	628,370
PIK interest expense accrued to principal	241,449	176,966
Impairment of Steel goodwill	670,000
Write off of contingent consideration	(3,744,496)
Accretion of contingent consideration	159,061	451,628
Accretion of put liability	63,718	84,528
Depreciation and amortization	193,084	9,447
Bad debt expense	77,235	51,195
Changes in operating assets and liabilities:
Accounts receivable	(1,779,039)	(5,300,850)
Prepaid expenses	(13,396)	80,273
Other current assets	29,603	4,902
Other assets		(4,390)
Accounts payable and accrued expenses	3,199,816	4,928,211
Unearned revenue	43,747	(2,655)
Cash (used) provided by operating activities	(44,285)	232,664
Cash flows from investing activities:
Purchase of equipment	(4,816)
Cash used by investing activities	(4,816)
Cash flows from financing activities:
Payment of contingent consideration	(1,600,000)
Proceeds from sale of units	500,000	6,921
Proceeds from notes payable	2,100,000
Repayments of note payable	(1,367,265)	(567,252)
Cash used by financing activities	(367,265)	(560,331)
Net decrease in cash	(416,366)	(327,667)
Cash, beginning of period	1,091,186	1,843,393
Cash, end of period	674,820	1,515,726
Supplemental Schedule of Cash Flow Information:
Cash paid for interest	606,956	462,887
Cash paid for taxes
Non-cash financial activities:
Common stock issued for payment of contingent consideration	$ 2,400,000

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2016
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 • SRAX Social • 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-acquisition ("CPA"), whereby payment is triggered only when an individual takes a specific activity. Social Reality is also an approved Facebook advertising partner. 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. Basis of Presentation The accompanying condensed consolidated financial statements are unaudited. The unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These interim financial statements as of and for the three and six months ended June 30, 2016 and 2015 are unaudited; however, in the opinion of management, such statements include all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position, results of operations and cash flows of the Company for the periods presented. The results for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016 or for any future period. All references to June 30, 2016 and 2015 in these footnotes are unaudited. These unaudited condensed financial statements should be read in conjunction with our audited financial statements and the notes thereto for the year ended December 31, 2015, included in the Company's annual report on Form 10-K filed with the SEC on March 16, 2016. The condensed balance sheet as of December 31, 2015 has been derived from the audited financial statements at that date but do not include all disclosures required by the accounting principles generally accepted in the United States of America. Certain items have been reclassified to conform to the current period presentation. Principles of Consolidation The unaudited 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 unaudited 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 unaudited 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 $212,677 and $135,442 at June 30, 2016 and December 31, 2015, 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 $175,000 at June 30, 2016. The Company has not experienced any loss on these accounts. The balances are maintained in demand accounts to minimize risk. At June 30, 2016, one customer accounted for more than 10% of the accounts receivable balance, for a total of 59%. For the six months ended June 30, 2016 one customer accounted for 62% of total revenue. At June 30, 2015, three customers accounted for more than 10% of the accounts receivable balance, for a total of 80%. For the six months ended June 30, 2015 two customers accounted for 63% of total revenue. 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 June 30, 2016 and December 31, 2015 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 to seven 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. During the six months ended June 30, 2016, we determined that a portion of the goodwill assigned to Steel Media acquisition has become impaired. Accordingly, we recorded a goodwill impairment charge of $670,000 for the three and six months ended June 30, 2016. The impairment charge represents the excess of the carrying amount of the goodwill recorded in the acquisition over the implied fair value of the goodwill. The implied fair value of the goodwill is the residual fair value based on an income approach using discounted cash flow model using revenue and profit forecasts. No impairment of goodwill has been recorded in the three or six months ended June 30, 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 either the six months ended June 30, 2016 or 2015. 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 12,983,682 common share equivalents at June 30, 2016 and 13,735,471 at June 30, 2015. For the six months ended June 30, 2016 and 2015 these potential shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share. The dilutive effect of potential common shares for the three months ended June 30, 2016 and 2015 totaled 2,758,553 shares and 2,609,271 shares; respectively. 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. Liquidity The Company had an accumulated deficit at June 30, 2016 of $10,670,224. As of June 30, 2016 we had approximately $675,000 in cash and cash equivalents and a deficit in working capital of $10,496,339 as compared to $1,100,000 in cash and cash equivalents and a deficit in working capital of $7,047,176 at December 31, 2015. Due to the Steel acquisition and additional product offerings, the Company believes it has established an ongoing source of revenue that is sufficient to cover its operating costs over the next twelve months. Management’s plans to continue as a going concern include raising additional capital through borrowing and sales of common stock. Recently Issued Accounting Standards In April 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2016-10, Identifying Performance Obligations and Licensing (Topic 606), which amends certain aspects of the FASB’s new revenue standard, ASU 2014-09, Revenue from Contracts with Customer (Topic 606). ASU 2016-10 identifies performance obligations and provides licensing implementation guidance. The effective date for ASU 2016-10 is the same as the effective date of ASU No. 2014-09. ASU No. 2015-14 (Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date) defers the effective date of ASU No. 2014-09 by one year, for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718), which is part of the FASB's Simplification Initiative. The updated guidance simplifies the accounting for share-based payment transactions. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customer (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), or ASU 2016-08, that clarifies how to apply revenue recognition guidance related to whether an entity is a principal or an agent. ASU 2016-08 clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer and provides additional guidance about how to apply the control principle when services are provided and when goods or services are combined with other goods or services. The effective date for ASU 2016-08 is the same as the effective date of ASU No. 2014-09. ASU No. 2015-14 defers the effective date of ASU No. 2014-09 by one year, for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which establishes a new lease accounting model for lessees. The updated guidance requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-3, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-3”) which changes the presentation of debt issuance costs in financial statements to present such costs as a direct deduction from the related debt liability rather than as an asset. ASU 2015-3 became effective for public companies during interim and annual reporting periods beginning after December 15, 2015. The Company adopted this ASU on January 1, 2016. The adoption of this ASU did not have a material impact to our consolidated financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2016
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"). 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) earn out payments of up to $8 million (the "Earn Out Consideration"). The Earn Out Consideration target was achieved for the first earn out 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. The Company determined the Earn Out Consideration would not be achieved for the second earn out period ended October 31, 2016. As a result, the Company reversed the second earn out liability of $3,744,496 during the three and six months ended June 30, 2016. At June 30, 2016, we did not record a liability for the Earn Out Consideration. At December 31, 2015, we recorded $7,585,435 associated with the first and second earn out periods. 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.

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2016
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") and the subsequent notes described below, 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 Note 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 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 Note 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 Note due Richard Steel described in Note 2, and for working capital. On January 26, 2016, we borrowed an additional $1,600,000 pursuant to the financing agreement with Victory Park Management, LLC. 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. The Senior Secured Term Note has terms identical to the Initial Financing Note 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 as a portion of the payment to Mr. Richard Steel of the first year Earn Out Consideration described in Notes 2 and 6. On February 16, 2016, we borrowed an additional $500,000 pursuant to the Financing Agreement with Victory Park Management, LLC. 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. The Senior Secured Term Note has terms identical to the Initial Financing Note 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 as working capital. For the six months ended June 30, 2016, we made principal payments of approximate $1,367,000. Notes payable consists of the following: June 30, 2016 December 31, 2015 Current portion of note payable $ 11,463,082 $ 2,455,000 Non-current portion of note payable — 8,033,898 Total note payable including PIK interest 11,463,082 10,488,898 Less deferred financing costs (1,088,168 ) (1,654,773 ) Notes payable and PIK interest accrued, net of deferred costs $ 10,374,914 $ 8,834,125 During the three months ended June 30, 2016 and 2015, $121,166 and $88,299, respectively, were recorded as PIK interest expense. During the six months ended June 30, 2016 and 2015, $241,449 and $176,966, respectively, were recorded as PIK interest expense. 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 $1,500,000 at June 30, 2016. 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 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 Earn Out Consideration, which may be owed to him by the Company; and (ii) during the time the Note was outstanding a put right we granted him if in the event of a default under the Note. As set forth above, the Note was paid in full in October 2015 and the put right was terminated upon such payment. Activity for the put liability during the six months ended June 30, 2016 was: December 31, 2015 Activity During the Period Accretion in Value June 30, 2016 Put liability $ 1,436,282 $ — $ 63,718 $ 1,500,000 Total $ 1,436,282 $ — $ 63,718 $ 1,500,000 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 three months ended June 30, 2016 and 2015, $271,748 and $308,435, respectively of debt issuance costs were amortized. During the six months ended June 30, 2016 and 2015, $566,604 and $628,370, respectively of debt issuance costs were amortized. As of June 30, 2016 and December 31, 2015, capitalized debt costs had a balance of $1,088,169 and $1,654,773, respectively. As of June 30, 2016, The Company was not in compliance with one or more covenants under terms of the Financing Agreement. The Financing Agreement covenant violations constitute an event of default which, at the election of the Victory Park Management LLC, could result in the acceleration of the unpaid principal loan balance and accrued interest under the Financing Agreement. Additional disclosure is described in Note 9- Subsequent Events.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2016
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. 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. 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. There were no shares of Class B common stock outstanding during either the 2015 or 2016 periods. On February 23, 2016 our Board of Directors approved the adoption of our 2016 Equity Compensation Plan (the “2016 Plan Common Stock During January 2016 and February 2016, we received aggregate proceeds of $500,000 from the sale of 500,000 shares of our Class A common stock. During January 2016, we issued 1,283,766 shares of Class A common stock, valued at $2,400,000, to Richard Steel as partial payment of the first year Earn Out Consideration. During February 2016, we issued 33,930 shares of Class A common stock, valued at $47,500, to members of our board of directors for services. 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. Stock Awards During February 2016, we granted an aggregate of 33,930 shares of our Class A common stock awards to four directors. The shares were vested upon grant. We recorded $47,500 of compensation expense related to these awards. During April 2016, we granted a total of 100,000 shares of our Class A common stock awards to an employee. We have recorded a total of $17,292 in compensation expense related to these awards. During the six months ended June 30, 2016, we recorded expense of $209,254 related to stock awards granted in prior years. During the six months ended June 30, 2015, we recorded expense of $303,842 related to stock awards granted in prior years. During the three months ended June 30, 2016 and 2015, we recorded expense relating to stock awards granted in prior years of $97,794 and $117,822, respectively. Awards in the amount of 30,000 common shares were forfeited during 2016. Stock Options and Warrants During three months ended June 30, 2016, we granted an aggregate of 30,000 stock options to one employee. The options will vest over three years. The options have an exercise price of $1.33 per share and a term of five years. These options have a grant date fair value of $1.07 per option, determined using the Black Scholes method based on the following assumptions: (1) risk free interest rate of 0.35%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of our common stock of 115%; and (4) an expected life of the options of 5 years. We have recorded an expense for the options of $445 for the three and six months ended June 30, 2016, respectively. During the three months ended June 30, 2016 and June 30, 2015, we recorded expense of $66,173 and $68,828, respectively, related to stock options granted in the prior years but vested in current period. During six months ended June 30, 2016 and 2015, we recorded expense of $115,507 and $142,841, respectively, relating to stock options granted in the prior years but vested in current period. Awards in the amount of 210,000 options were forfeited during 2016.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 5 – INTANGIBLE ASSETS. Intangible assets consist of the following: June 30, 2016 December 31, 2015 Non-compete agreement $ 1,250,000 $ 1,250,000 Intellectual property 756,000 756,000 2,006,000 2,006,000 Accumulated amortization (574,021 ) (394,256 ) Carrying value $ 1,431,979 $ 1,611,744 Amortization expense was $37,800 for intellectual property and $52,083 for the non-compete agreement for the three months ended June 30, 2016. Amortization expense was $75,600 for intellectual property and $104,165 for the non-compete agreement for the six months ended June 30, 2016. No amortization expense was recorded for the three and six months ended June 30, 2015.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 6 – RELATED PARTY TRANSACTIONS. We are obligated to Mr. Steel for contingent Earn Out Consideration of up to $8,000,000 incurred in connection with the acquisition of Steel Media, as described in Note 2 upon Steel Media meeting certain EBITDA measurements. The Company had initially recorded the liability at its present value of $6,584,042. Changes in the value will be recorded through the statement of operations. The Earn Out Consideration target was achieved for the first earn out 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. As discussed in Note 2, during the three months ended June 30, 2016 the Company determined the Earn Out Consideration would not be achieved for the second earn out period ended October 31, 2016. The Company determined the fair value of the second Earn Out Consideration to be zero as of June 30, 2016. Activity for the contingent consideration payable was: June 30, December 31, 2016 2015 Balance, beginning of year $ 7,585,435 $ 6,732,123 Accretion in value 159,061 853,312 Payment made (4,000,000 ) — Reversal of second year Earn Out Consideration (3,744,496 ) — Balance, June 30 2016 $ — $ 7,585,435

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	6 Months Ended
	Jun. 30, 2016
Accounts Payable and Accrued Liabilities [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	NOTE 7 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES. Accounts payable and accrued expenses are comprised of the following: June 30, 2016 December 31, 2015 Accounts payable, trade $ 5,810,402 $ 3,003,642 Accrued expenses 987,846 45,450 Accrued compensation 143,676 659,262 Accrued commissions 990,066 1,430,453 Total $ 7,931,990 $ 5,138,807

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 8 – COMMITMENTS AND CONTINGENCIES. Operating Leases The Company leases offices under operating leases with lease terms which expire through September 30, 2021. Rent expense for office space amounted to $140,500 and $76,021 for the six months ended June 30, 2016 and 2015, respectively. Rent expense for office space amounted to $76,409 and $37,720 for the three months ended June 30, 2016 and 2015, 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	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9 – SUBSEQUENT EVENTS The terms of the Financing Agreement require us to maintain certain financial covenants, including leverage ratios, senior leverage ratios, fixed charge coverage ratios, interest coverage ratios and minimum current ratios. As of June 30, 2016, we are not in compliance with these ratios and we are currently negotiating the terms of a forbearance agreement with Victory Park Management, LLC. We expect that the terms of the forbearance agreement will provide that the lenders will not assert an event of default under the Financing Agreement related to our non-compliance with the financial ratios through December 31, 2016, and will require us to take certain actions to satisfy all amounts we owe under the Financing Agreement by December 31, 2016. There are no assurances, however, that we will be successful in negotiating the terms of the forbearance agreement, in which event the lender could declare the Financing Agreement in default and accelerate all amounts we owe thereunder.

ORGANIZATION AND SUMMARY OF S15

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2016
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 · SRAX Social · 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-acquisition ("CPA"), whereby payment is triggered only when an individual takes a specific activity. Social Reality is also an approved Facebook advertising partner. 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.
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements are unaudited. The unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These interim financial statements as of and for the three and six months ended June 30, 2016 and 2015 are unaudited; however, in the opinion of management, such statements include all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position, results of operations and cash flows of the Company for the periods presented. The results for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016 or for any future period. All references to June 30, 2016 and 2015 in these footnotes are unaudited. These unaudited condensed financial statements should be read in conjunction with our audited financial statements and the notes thereto for the year ended December 31, 2015, included in the Company's annual report on Form 10-K filed with the SEC on March 16, 2016. The condensed balance sheet as of December 31, 2015 has been derived from the audited financial statements at that date but do not include all disclosures required by the accounting principles generally accepted in the United States of America. Certain items have been reclassified to conform to the current period presentation.
Principles of Consolidation	Principles of Consolidation The unaudited 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 unaudited 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 unaudited 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 $212,677 and $135,442 at June 30, 2016 and December 31, 2015, 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 $175,000 at June 30, 2016. The Company has not experienced any loss on these accounts. The balances are maintained in demand accounts to minimize risk. At June 30, 2016, one customer accounted for more than 10% of the accounts receivable balance, for a total of 59%. For the six months ended June 30, 2016 one customer accounted for 62% of total revenue. At June 30, 2015, three customers accounted for more than 10% of the accounts receivable balance, for a total of 80%. For the six months ended June 30, 2015 two customers accounted for 63% of total revenue.
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 June 30, 2016 and December 31, 2015 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 to seven 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. During the six months ended June 30, 2016, we determined that a portion of the goodwill assigned to Steel Media acquisition has become impaired. Accordingly, we recorded a goodwill impairment charge of $670,000 for the three and six months ended June 30, 2016. The impairment charge represents the excess of the carrying amount of the goodwill recorded in the acquisition over the implied fair value of the goodwill. The implied fair value of the goodwill is the residual fair value based on an income approach using discounted cash flow model using revenue and profit forecasts. No impairment of goodwill has been recorded in the three or six months ended June 30, 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 either the six months ended June 30, 2016 or 2015.
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 12,983,682 common share equivalents at June 30, 2016 and 13,735,471 at June 30, 2015. For the six months ended June 30, 2016 and 2015 these potential shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share. The dilutive effect of potential common shares for the three months ended June 30, 2016 and 2015 totaled 2,758,553 shares and 2,609,271 shares; respectively.
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.
Liquidity	Liquidity The Company had an accumulated deficit at June 30, 2016 of $10,670,224. As of June 30, 2016 we had approximately $675,000 in cash and cash equivalents and a deficit in working capital of $10,496,339 as compared to $1,100,000 in cash and cash equivalents and a deficit in working capital of $7,047,176 at December 31, 2015. Due to the Steel acquisition and additional product offerings, the Company believes it has established an ongoing source of revenue that is sufficient to cover its operating costs over the next twelve months. Management’s plans to continue as a going concern include raising additional capital through borrowing and sales of common stock.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In April 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2016-10, Identifying Performance Obligations and Licensing (Topic 606), which amends certain aspects of the FASB’s new revenue standard, ASU 2014-09, Revenue from Contracts with Customer (Topic 606). ASU 2016-10 identifies performance obligations and provides licensing implementation guidance. The effective date for ASU 2016-10 is the same as the effective date of ASU No. 2014-09. ASU No. 2015-14 (Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date) defers the effective date of ASU No. 2014-09 by one year, for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718), which is part of the FASB's Simplification Initiative. The updated guidance simplifies the accounting for share-based payment transactions. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customer (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), or ASU 2016-08, that clarifies how to apply revenue recognition guidance related to whether an entity is a principal or an agent. ASU 2016-08 clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer and provides additional guidance about how to apply the control principle when services are provided and when goods or services are combined with other goods or services. The effective date for ASU 2016-08 is the same as the effective date of ASU No. 2014-09. ASU No. 2015-14 defers the effective date of ASU No. 2014-09 by one year, for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which establishes a new lease accounting model for lessees. The updated guidance requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-3, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-3”) which changes the presentation of debt issuance costs in financial statements to present such costs as a direct deduction from the related debt liability rather than as an asset. ASU 2015-3 became effective for public companies during interim and annual reporting periods beginning after December 15, 2015. The Company adopted this ASU on January 1, 2016. The adoption of this ASU did not have a material impact to our consolidated financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2016
Notes Payable [Abstract]
Schedule of notes payable	Notes payable consists of the following: June 30, 2016 December 31, 2015 Current portion of note payable $ 11,463,082 $ 2,455,000 Non-current portion of note payable — 8,033,898 Total note payable including PIK interest 11,463,082 10,488,898 Less deferred financing costs (1,088,168 ) (1,654,773 ) Notes payable and PIK interest accrued, net of deferred costs $ 10,374,914 $ 8,834,125
Schedule of put liability	Activity for the put liability during the six months ended June 30, 2016 was: December 31, 2015 Activity During the Period Accretion in Value June 30, 2016 Put liability $ 1,436,282 $ — $ 63,718 $ 1,500,000 Total $ 1,436,282 $ — $ 63,718 $ 1,500,000

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible assets	June 30, 2016 December 31, 2015 Non-compete agreement $ 1,250,000 $ 1,250,000 Intellectual property 756,000 756,000 2,006,000 2,006,000 Accumulated amortization (574,021 ) (394,256 ) Carrying value $ 1,431,979 $ 1,611,744

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Schedule of contingent consideration payable	June 30, December 31, 2016 2015 Balance, beginning of year $ 7,585,435 $ 6,732,123 Accretion in value 159,061 853,312 Payment made (4,000,000 ) — Reversal of second year Earn Out Consideration (3,744,496 ) — Balance, June 30 2016 $ — $ 7,585,435

ACCOUNTS PAYABLE AND ACCRUED 19

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	6 Months Ended
	Jun. 30, 2016
Accounts Payable and Accrued Liabilities [Abstract]
Schedule of Accounts payable and accrued expenses	June 30, 2016 December 31, 2015 Accounts payable, trade $ 5,810,402 $ 3,003,642 Accrued expenses 987,846 45,450 Accrued compensation 143,676 659,262 Accrued commissions 990,066 1,430,453 Total $ 7,931,990 $ 5,138,807

ORGANIZATION AND SUMMARY OF S20

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 31, 2012shares	Jun. 30, 2016USD ($)shares	Jun. 30, 2015USD ($)shares	Jun. 30, 2016USD ($)Itemshares	Jun. 30, 2015USD ($)shares	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Allowance for doubtful accounts		$ 212,677		$ 212,677		$ 135,442
Uninsured cash bank balance		$ 175,000		$ 175,000
Number of operating segments | Item				1
Antidilutive common share equivalents | shares		2,758,553	2,609,271	12,983,682	13,735,471
Goodwill impairment		$ 670,000		$ 670,000
Impairment of long-lived assets
Cash and cash equivalents		674,820	$ 1,515,726	674,820	$ 1,515,726	1,091,186	$ 1,843,393
Working capital deficit		$ 10,496,339		$ 10,496,339		$ 7,047,176
Minimum [Member]
Property and equipment estimated useful life				3 years
Intangible assets estimated useful life				5 years
Maximum [Member]
Property and equipment estimated useful life				7 years
Intangible assets estimated useful life				6 years
Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
Concentration risk percentage				62.00%	63.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration risk percentage				59.00%	80.00%
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, 2014	Oct. 30, 2014	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Jan. 29, 2016	Dec. 31, 2014
Business Acquisition [Line Items]
Earnout consideration					$ 7,585,435		$ 6,732,123
Reversal of second earnout liability			$ 3,744,496	$ (3,744,496)
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
Contingent Earnout Consideration paid						$ 4,000,000
Earnout consideration paid in cash						$ 1,600,000
Earnout consideration paid in shares						1,283,766
Steel Media [Member] | Maximum [Member]
Business Acquisition [Line Items]
Purchase consideration		20,000,000
Earnout consideration		$ 8,000,000
Steel Media [Member] | Senior Subordinated Notes [Member]
Business Acquisition [Line Items]
Notes term		1 year
Notes issued		$ 2,500,000
Steel Media [Member] | Senior Subordinated Notes [Member] | Common Class A [Member]
Business Acquisition [Line Items]
Escrow shares		2,386,863
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]
Number of common stock issued	600,000

NOTES PAYABLE (Financing Agreem

NOTES PAYABLE (Financing Agreement with Victory Park Management, LLC as agent for the lenders) (Details) - USD ($)	Feb. 16, 2016	Jan. 26, 2016	Oct. 26, 2015	Jul. 06, 2015	Oct. 30, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Present value of put liability						$ 1,500,000		$ 1,500,000		$ 1,436,282
Amortization of debt issue costs						271,748	$ 308,435	566,604	$ 628,370
Repayments of note payable								1,367,265	567,252
PIK interest expense accrued to principal						121,166	$ 88,299	241,449	$ 176,966
Capitalized debt costs						$ 1,088,169		$ 1,088,169		$ 1,654,773
Secured Debt [Member]
Debt Instrument [Line Items]
Notes issued	$ 500,000	$ 1,600,000	$ 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
Costs related to agreement					$ 3,164,352
Maturity date	Oct. 30, 2017	Oct. 30, 2017	Oct. 30, 2017	Oct. 30, 2017
Secured Debt [Member] | Common Class A [Member]
Debt Instrument [Line Items]
Number of shares to be issued					29,000,000
Secured Debt [Member] | Maximum [Member]
Debt Instrument [Line Items]
Notes issued					$ 20,000,000
Paid-in-kind interest rate (as a percent)					4.00%
Secured Debt [Member] | Minimum [Member]
Debt Instrument [Line Items]
Paid-in-kind interest rate (as a percent)					2.00%

NOTES PAYABLE (Schedule of Note

NOTES PAYABLE (Schedule of Notes Payable) (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Notes Payable [Abstract]
Current portion of note payable	$ 11,463,082	$ 2,455,000
Non-current portion of note payable		8,033,898
Total note payable including PIK interest	11,463,082	10,488,898
Less deferred financing costs	(1,088,168)	(1,654,773)
Notes payable and PIK interest accrued, net of deferred costs	$ 10,374,914	$ 8,834,125

NOTES PAYABLE (Schedule of Acti

NOTES PAYABLE (Schedule of Activity for the put liability) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Put liability December 31, 2015	$ 1,436,282
Activity During the Period
Accretion in Value	63,718	$ 84,528
Put liability June 30, 2016	1,500,000
Put Liability Notes Payable [Member]
Put liability December 31, 2015	1,436,282
Activity During the Period
Accretion in Value	63,718
Put liability June 30, 2016	$ 1,500,000

STOCKHOLDERS' EQUITY (Preferred

STOCKHOLDERS' EQUITY (Preferred and Common Stock) (Details) - $ / shares	Jun. 30, 2016	Dec. 31, 2015	Aug. 16, 2013
Class of Stock [Line Items]
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
Common Stock, par value per share	$ 0.001
Common Class A [Member]
Class of Stock [Line Items]
Common Stock, shares authorized	250,000,000	250,000,000
Common Stock, par value per share	$ 0.001	$ 0.001
Common Stock, shares outstanding	29,977,925	28,110,229
Common Class B [Member]
Class of Stock [Line Items]
Common Stock, shares authorized	9,000,000	9,000,000
Common Stock, par value per share	$ 0.001	$ 0.001
Common Stock, shares outstanding	0	0
Series 1 Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, shares authorized			200,000
Liquidation preference per share			$ 0.001

STOCKHOLDERS' EQUITY (2016 Tran

STOCKHOLDERS' EQUITY (2016 Transactions) (Details) - USD ($)	1 Months Ended	2 Months Ended	3 Months Ended		6 Months Ended
	Feb. 29, 2016	Feb. 29, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Jan. 29, 2016
Stock option compensation expense			$ 66,173	$ 68,828	$ 115,507	$ 142,841
Stock options forfeited during period					210,000
Steel Media [Member]
Earnout consideration paid in shares							1,283,766
Earnout consideration paid in shares, Amount							$ 2,400,000
Common Stock Awards [Member]
Expense related to stock awards					$ 209,254	$ 303,842
Stock option compensation expense			97,794	$ 117,822
Stock options forfeited during period					30,000
Four Directors [Member] | Common Stock Awards [Member]
Shares issued for stock awards that have vested	33,930
Stock option compensation expense	$ 47,500
Employee [Member] | Employee Stock Option [Member]
Stock option compensation expense			$ 445		$ 445
Granted during period			30,000
Share-based compensation, vesting period			3 years
Granted during period, exercise price			$ 1.33
Stock options granted, grant date fair value			$ 1.07
Award term			5 years
Share-based compensation, risk free interest rate			0.35%
Share-based compensation, expected dividend yield			0.00%
Share-based compensation, expected volatility rate			115.00%
Share-based compensation, expected life			5 years
Common Class A [Member]
Number of shares reserved under 2016 Plan			3,000,000		3,000,000
Sale of common stock		$ 500,000
Stock issued		500,000
Common Class A [Member] | Director [Member]
Common stock issued for services, shares	50,000
Common stock issued for services	$ 70,000
Common Class A [Member] | Employee [Member]
Stock option compensation expense			$ 17,292
Granted during period			100,000

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Intellectual Property [Member]
Amortization expense	$ 37,800	$ 0	$ 75,600	$ 0
Non-compete agreement [Member]
Amortization expense	$ 52,083	$ 0	$ 104,165	$ 0

INTANGIBLE ASSETS (Schedule of

INTANGIBLE ASSETS (Schedule of Intangible assets) (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Intangible assets	$ 2,006,000	$ 2,006,000
Accumulated amortization	(574,021)	(394,256)
Carrying value	1,431,979	1,611,744
Non-compete agreement [Member]
Intangible assets	1,250,000	1,250,000
Intellectual Property [Member]
Intangible assets	$ 756,000	$ 756,000

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($)	Jun. 30, 2016	Jan. 29, 2016	Dec. 31, 2015	Dec. 31, 2014	Oct. 30, 2014
Related Party Transaction [Line Items]
Contingent Earnout Consideration			$ 7,585,435	$ 6,732,123
Steel Media [Member]
Related Party Transaction [Line Items]
Earnout consideration paid in cash		$ 1,600,000
Present value of consideration	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] | Maximum [Member] | Richard Steel [Member]
Related Party Transaction [Line Items]
Contingent Earnout Consideration	$ 8,000,000

RELATED PARTY TRANSACTIONS (Sch

RELATED PARTY TRANSACTIONS (Schedule of contingent consideration payable) (Details) - USD ($)	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Activity for the contingent consideration payable [Roll Forward]
Beginning of period		$ 7,585,435	$ 6,732,123	$ 6,732,123
Accretion in value		159,061	$ 451,628	853,312
Payment made		(4,000,000)
Reversal of second year Earn Out Consideration	$ 3,744,496	(3,744,496)
End of period				$ 7,585,435

ACCOUNTS PAYABLE AND ACCRUED 31

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Accounts Payable and Accrued Liabilities [Abstract]
Accounts payable, trade	$ 5,810,402	$ 3,003,642
Accrued expenses	987,846	45,450
Accrued compensation	143,676	659,262
Accrued commissions	990,066	1,430,453
Total	$ 7,931,990	$ 5,138,807

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Lease expiration period			Sep. 30, 2021
Rent expense	$ 76,409	$ 37,720	$ 140,500	$ 76,021