SRAX (SRAX) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 13, 2017
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	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		8,675,427
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 216,409	$ 1,048,762
Accounts receivable, net	7,196,915	8,411,019
Prepaid expenses	541,510	332,503
Other current assets	6,898	6,488
Total current assets	7,961,732	9,798,772
Property and equipment, net of accumulated depreciation	138,539	55,492
Goodwill	15,644,957	15,644,957
Intangibles - net	1,609,228	1,365,241
Other assets	21,488	34,659
Total assets	25,375,944	26,899,121
Current liabilities:
Accounts payable and accrued expenses	12,434,810	13,156,081
Note payable, net of unamortized costs		3,418,788
Unearned revenue	67,516
Put warrant liability	757,476
Debenture warrant liability	1,615,844
Leapfrog warrant liability	673,416
Debenture conversion liability	1,936,752
Put liability	1,551,323	1,500,000
Total current liabilities	19,037,137	18,074,869
Secured convertible debentures, net	2,092,798
Total liabilities	21,129,935	18,074,869
Commitments and contingencies (Note 13)
Stockholders' equity
Preferred stock, authorized 50,000,000 shares, $0.001 par value, no shares issued or outstanding at September 30, 2017 and December 31, 2016, respectively
Common stock	8,233	6,952
Common stock to be issued	97,500	678,000
Additional paid in capital	25,367,237	22,529,303
Accumulated deficit	(21,226,961)	(14,390,003)
Total stockholders' equity	4,246,009	8,824,252
Total liabilities and stockholders' equity	25,375,944	26,899,121
Common Class A [Member]
Stockholders' equity
Common stock	8,233	6,952
Common Class B [Member]
Stockholders' equity
Common stock

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
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 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	8,232,830	6,951,077
Common Stock, shares outstanding	8,232,830	6,951,077
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 (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenues	$ 5,554,182	$ 9,530,842	$ 16,861,449	$ 24,249,588
Cost of revenue	2,454,919	6,986,834	8,378,247	16,430,204
Gross profit	3,099,263	2,544,008	8,483,202	7,819,384
Operating expense
General, selling and administrative expense	3,659,202	3,851,890	11,395,454	11,082,581
Write-off of non-compete agreement			486,750
Restructuring costs			377,961
Impairment of goodwill				670,000
Total operating expense, net	3,659,202	3,851,890	12,260,165	11,752,581
Loss from operations	(559,939)	(1,307,882)	(3,776,963)	(3,933,197)
Other income (expense)
Interest income (expense)	(338,010)	(817,864)	(668,583)	(1,898,893)
Amortization of debt issuance costs	(281,352)	(250,100)	(1,047,060)	(816,705)
Total interest expense	(619,362)	(1,067,964)	(1,715,643)	(2,715,598)
Loss on repurchase of Series B warrants			(2,053,975)
Loss on repricing of Series A warrants			(99,820)
Accretion of put warrants	(419,062)		1,934,663
Accretion of debenture discount and warrants	(2,139,618)		(788,873)
Accretion of Leapfrog warrants	(336,347)		(336,347)
Write-off of contingent consideration				3,744,496
Total other income (expense)	(3,514,389)	(1,067,964)	(3,059,995)	1,028,898
Loss before provision for income taxes	(4,074,328)	(2,375,846)	(6,836,958)	(2,904,299)
Provision for income taxes
Net loss	$ (4,074,328)	$ (2,375,846)	$ (6,836,958)	$ (2,904,299)
Net (loss) income per share, basic	$ (0.50)	$ (0.40)	$ (0.85)	$ (0.49)
Net (loss) income per share, diluted	$ (0.50)	$ (0.40)	$ (0.85)	$ (0.49)
Weighted average shares outstanding, basic	8,115,790	5,958,897	8,008,717	5,929,793
Weighted average shares outstanding, diluted	8,115,790	5,958,897	8,008,717	5,929,793

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net loss	$ (6,836,958)	$ (2,904,299)
Adjustments to reconcile net loss to net cash used by operating activities:
Amortization of stock based prepaid fees		373,567
Stock based compensation	947,968	610,397
Noncash financing cost		274,695
Amortization of debt issue costs	663,210	816,705
Loss on repurchase of Series B warrants	2,053,975
Loss on repricing of Series A warrants	99,820
Accretion of Leapfrog warrants	336,347
Accretion of put warrants	(1,934,663)
Accretion of debenture discount and warrants	788,873
Amortization of debt discount	383,850
PIK interest expense accrued to principal	51,323	447,738
Impairment of goodwill		670,000
Write-off of non-compete agreement	468,751
Accretion of contingent consideration		(3,585,388)
Accretion of put liability		63,718
Provision for bad debts	(163,703)	96,253
Depreciation expense	14,240	17,294
Amortization of intangibles	358,698	269,650
Changes in operating assets and liabilities:
Accounts receivable	1,377,870	(2,767,590)
Prepaid expenses	(209,007)	81,562
Other assets	12,762	29,602
Accounts payable and accrued expenses	(721,272)	6,355,103
Unearned revenue	67,516	18,115
Cash (used in) provided by operating activities	(2,240,400)	867,122
Cash flows from investing activities:
Purchase of equipment	(97,287)	(4,816)
Development of software	(454,368)
Cash used in investing activities	(551,655)	(4,816)
Cash flows from financing activities:
Proceeds from the issuance of common stock, net	3,820,001	3,550,815
Proceeds from notes payable		2,100,000
Proceeds from secured convertible debentures, net	2,136,629
Repayments of note payable and PIK interest	(3,996,928)	(1,763,077)
Payment of contingent consideration		(1,600,000)
Net cash provided by financing activities	1,959,702	2,287,738
Net decrease in cash and cash equivalents	(832,353)	3,150,044
Cash and cash equivalents, beginning of period	1,048,762	1,091,186
Cash and cash equivalents, end of period	216,409	4,241,230
Supplemental Schedule of Cash Flow Information:
Cash paid for interest	873,433	1,224,525
Cash paid for taxes
Non-cash financial activities:
Proceeds paid by Fastpay on behalf of Social Reality		5,507,468
Common stock issued as payment of contingent consideration		2,400,000
Initial derivative liability on issuance of put warrants	3,038,344
Issuance of placement agent warrants	249,028
Common stock issued for vested grants	52
Issuance of common stock to be issued	100
Initial derivative and warrant liability accounted as debt discount on convertible debenture	2,763,723
Repurchase of series B warrants directly paid by debenture holder on behalf of the Company	2,500,000
Common stock issued and Initial warrant liability accounted for assets purchase arrangement	$ 617,069

DESCRIPTION OF BUSINESS AND BAS

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	NOTE 1 – DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business Social Reality, Inc. ("Social Reality" or “SRAX”) is a Delaware corporation formed on August 2, 2011. These unaudited condensed consolidated financial statements include the consolidated results of Social Reality and its wholly owned subsidiary, Steel Media (“Steel Media”) (collectively referred to as “we”, “us”, “our” or the “Company”). We are headquartered in Los Angeles, California. We are a digital marketing and data management platform delivering the tools to reach and reveal valuable audiences. Our machine-learning technology analyzes marketing data to identify brands and content owners' core consumers and their characteristics across marketing channels. Through an omnichannel approach that integrates all aspects of the advertising experience into one platform, we discover new and measurable opportunities that amplify campaign performance and maximize profits. We derive our revenue 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; · sales and licensing of our SRAX Social · creation of custom platforms for buying media on SRAX We offer our customers several pricing options including cost-per-thousand-impression, commonly referred to as CPM, whereby our customers pay based on the number of times the target audience is exposed to the advertisement, and on a monthly service fee. The Company is an approved Facebook, Inc. advertising partner. We sell targeted and measurable online advertising campaigns and programs to brand advertisers and advertising agencies across large Facebook, Inc. applications and websites, generating qualified Facebook likes and quantifiable engagement for our clients, driving online sales and increased brand equity. Basis of Presentation The accompanying unaudited condensed consolidated financial statements and notes thereto are unaudited. The unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and note disclosures normally included in the Company’s annual financial statements have been condensed or omitted. The December 31, 2016 condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. These interim financial statements, in the opinion of management, reflect all normal recurring adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the interim three month and nine month periods ended September 30, 2017 and 2016. The results for the three months and nine months ended September 30, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017 or for any future period. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the year ended December 31, 2016, included in the Company's annual report on Form 10-K filed with the SEC on March 31, 2017, as amended on Form 10-K/A (Amendment No. 1) as filed with the SEC on April 28, 2017.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Uses and Sources of Liquidity Our primary need for liquidity is to fund working capital requirements of our business, development of internally used software and for general corporate purposes, including debt repayment. Our general, selling and administrative expenses decreased from $3,851,890 for the three months ended September 30, 2016 to $3,659,202 for the three months ended September 30, 2017. Our general, selling and administrative expenses increased from $11,082,581 for the nine months ended September 30, 2016 to $11,395,454 for the nine months ended September 30, 2017. We incurred a loss of $4,074,328 for the three months ended September 30, 2017 compared to a net loss of $2,375,846 for the three months ended September 30, 2016 and incurred losses of $6,836,958 and $2,904,299 for the nine months ended September 30, 2017 and 2016, respectively. At September 30, 2017, we had an accumulated deficit of $21,226,961. As of September 30, 2017, we had $216,409 in cash and cash equivalents and a deficit in working capital of $11,075,405 as compared to $1,048,762 in cash and cash equivalents and a deficit in working capital of $8,276,099 at December 31, 2016. We are currently experiencing a period of limited liquidity resulting from the complete repayment of senior secured notes associated with a financing agreement previously held by Victory Park Management, LLC and the repurchase of the Series B Warrants in April 2017. Additionally, we were notified in May 2017 that Victory Park Management, LLC had exercised its put right for the repurchase of the Financing Warrant which amounts to $1,500,000. See Note 8 for a further discussion of this obligation. During January 2017, we satisfied all outstanding obligations under the Victory Park Management, LLC financing agreement utilizing proceeds from the factoring of our receivables and sales of our securities. While the repayment of the amounts owed under this financing agreement is expected to result in overall savings to us through the elimination of both the associated interest expense as well as the internal costs related to the reporting obligations under its terms, the repayment of these notes have adversely impacted our current liquidity. To address the immediate impact of this decreased liquidity, we developed certain operating plans that focus on increased profitability growth through higher gross margin sales and cost reductions as further described herein. If our revenue increases throughout the next twelve months as anticipated, additional liquidity is expected to be readily available under our accounts receivable factoring agreement with FastPay Partners, LLC (“FastPay”). See Note 8 for a further discussion of this agreement. In March 2017, the Company initiated a restructuring program targeted to deliver cost savings in 2017 and beyond. Under the restructuring program, the Company made certain reductions in staffing and a restructuring of sales management compensation, delayed certain previously budgeted expenditures, eliminated certain operating expenses, simplified our organizational structure, including greater consolidation of our sales force and support functions, and extended payments to certain vendors. We recognized certain one-time costs amounting to $377,961 related to the restructuring. Although, we anticipate increasing our revenue streams, we believe our primary objective should evolve around profitability instead of revenue and market share each of which relate to, but do not necessarily drive profit. Accordingly, the Company has taken several actions to continue to support its operations and meet its obligations. The accompanying unaudited condensed consolidated financial statements have been prepared on the basis that the Company will continue to operate as a going concern. Our future success depends upon our ability to contain our operating expenses and generate profits. We do not have any long-term agreements with our customers. There are no assurances that we will be able to increase our revenue and cash flow to a level which supports profitable operations. It is uncertain whether the Company can attain profitability and positive cash flows from operations. In addition to increasing sales, lowering costs, and a more aggressive approach in managing our accounts payable, our plan to continue as a going concern also included raising additional capital through borrowing and/or additional sales of equity or equity linked securities. In April 2017, we entered a definitive securities purchase agreement which provided $5,000,000 in additional capital allowing us to satisfy certain warrant put obligations as further discussed in Note 10. In October 2017, we entered into an additional definitive securities purchase agreement which provided for an additional $5,180,158 of capital that allowed us to satisfy all amounts due under the Financing Warrant, as well as partially reduce our working capital deficit through payment of certain outstanding payables. We acknowledge that we continue to face a challenging competitive environment and while we continue to focus on our overall profitability, including managing expenses, we reported losses and were required to fund cash used in operating and investing activities with cash provided by financing activities. We expect that the actions initiated in 2017 will enhance our liquidity and financial flexibility toward the beginning of 2018. We also announced several new revenue initiatives that could provide additional revenue growth opportunities beginning in the second half of 2018. Our historical operating results indicate substantial doubt exists related to the Company's ability to continue as a going concern. We believe that the actions discussed above are probable of occurring and mitigating the substantial doubt raised by our historical operating results and satisfying our estimated liquidity needs 12 months from the issuance of the financial statements. However, we cannot predict, with certainty, the outcome of our actions to generate liquidity or whether such actions would generate the expected liquidity as currently planned. If we continue to experience operating losses, and we are not able to generate additional liquidity through the mechanisms described above or through some combination of other actions, while not expected, we may not be able to access additional funds and we might need to secure additional sources of funds, which may or may not be available to us under terms and conditions that are favorable to our success. Additionally, a failure to generate additional liquidity could negatively impact our access to services that are important to the operation of our business. The unaudited condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of the Company’s inability to continue as a going concern. The outcome of these plans cannot be predicted at this time. Effect of Reverse Stock Split on Presentation In September 2016, the Company completed a 1 for 5 reverse stock split of our Class A common stock. These unaudited condensed consolidated financial statements give retroactive effect to the reverse stock split for all periods presented, unless otherwise specified. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All material intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The unaudited condensed consolidated financial statements have been prepared in conformity with GAAP and requires management of the Company to make estimates and assumptions in the preparation of these unaudited condensed 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 expense during the reporting periods. 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, goodwill, other intangible assets, put rights and valuation of liabilities. 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 revenue transactions as the Company is the primary obligor in the transactions. As such, 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 either a revenue-generating event or 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-through, 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 unaudited condensed consolidated statements of operations. 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 does not require collateral. Allowance for doubtful accounts was $91,172 and $254,875 at September 30, 2017 and December 31, 2016, 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 with financial institutions within the United States. The Company has not experienced any loss on these accounts. The balances are maintained in demand accounts to minimize risk. At September 30, 2017, four customers accounted for more than 10% of the accounts receivable balance for a total of 84%. For the nine months ended September 30, 2017, five customers accounted for 52% of total revenue. At December 31, 2016, two customers accounted for more than 10% of the accounts receivable balance for a total of 61%. For the nine months ended September 30, 2016, one customer accounted for 49% 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 September 30, 2017 and December 31, 2016, 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, a non-complete agreement, and internally developed software 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 three to six years. The Company capitalizes the costs of developing internal-use computer software, including directly related payroll costs. The Company amortizes costs associated with its internally developed software over periods up to three years, beginning when the software is ready for its intended use. 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 and change to annual impairment testing period 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 had historically performed its annual goodwill and impairment assessment on September 30 th st No impairment of goodwill has been recorded during the three or nine months ended September 30, 2017, respectively. During the three and nine months ended September 30, 2016, we recognized an impairment of goodwill that amounted to $670,000, respectively. 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 regarding its identifiable intangible assets or other long-lived assets during the three or nine months ended September 30, 2017 or 2016, respectively. Loss Per Share We use Accounting Standards Codification (“ASC”) 260, " Earnings Per Share There were 6,254,705 common share equivalents at September 30, 2017 and 2,912,069 common share equivalents at September 30, 2016. For the nine months ended September 30, 2017 and 2016, respectively, these potential shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share. Income Taxes We utilize ASC 740 “ Income Taxes The Company recognizes the impact of a tax position in the consolidated 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 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.

IMPACT OF RECENTLY ISSUED ACCOU

IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS	NOTE 3 – IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS Adoption of New Accounting Standards For a discussion of recent accounting pronouncements, please refer to Recently Issued Accounting Standards as contained in Note 1 in the December 31, 2016 audited consolidated financial statements included in the Company’s annual report on Form 10-K filed with the SEC on March 31, 2017. During the nine months ended September 30, 2017, the Company adopted Accounting Standards Update (“ASU”) No. 2016-09, Compensation - Stock Compensation (Topic 718 Accounting Standards Issued But Not Yet Effective In September 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842). The effective date for ASU 2017-13 is for fiscal years beginning after December 15, 2018. We are currently evaluating the impact of adopting ASU 2017-13 on our unaudited consolidated financial statements. In July 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): Part 1 – Accounting for Certain Financial Instruments with Down Round Features and Part 2 – Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with Scope Exception Topic 480, Distinguishing Liabilities from Equity, FASB Accounting Standards Codification In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments In connection with its financial instruments project, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities · ASU No. 2016-13 introduces a new impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a forward-looking “expected loss” model that will replace the current “incurred loss” model and generally will result in earlier recognition of allowances for losses. The guidance will be effective for the first interim period of our 2021 fiscal year, with early adoption in fiscal year 2020 permitted. · ASU No. 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Among other provisions, the new guidance requires the fair value measurement of investments in certain equity securities. For investments without readily determinable fair values, entities have the option to either measure these investments at fair value or at cost adjusted for changes in observable prices minus impairment. All changes in measurement will be recognized in net income. The guidance will be effective for the first interim period of our 2019 fiscal year. Early adoption is not permitted, except for certain provisions relating to financial liabilities. In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing (Topic 606) Revenue from Contracts with Customer (Topic 606) , Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date 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 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) 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 unaudited condensed consolidated financial statements.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
ACQUISITIONS	NOTE 4 – ACQUISITIONS In June 2016, the Company determined that the second earn out consideration target related to the Steel Media acquisition would not be achieved. As such, the Company reversed the liability related to the second earn out target of $3,744,496 during the three and nine months ended September 30, 2016.

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	NOTE 5 – PROPERTY AND EQUIPMENT, NET Property and equipment consists of the following at September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Office equipment $ 216,378 $ 119,091 Accumulated depreciation (77,839 ) (63,599 ) Property and equipment, net $ 138,539 $ 55,492 Depreciation expense for the three months ended September 30, 2017 and 2016 was $8,058 and $3,975, respectively. Depreciation expense for the nine months ended September 30, 2017 and 2016 was $14,240 and $17,294, respectively.

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS, NET	NOTE 6 – INTANGIBLE ASSETS, NET Intangible assets consist of the following: September 30, 2017 December 31, 2016 Non-compete agreement $ 781,249 $ 1,250,000 Intellectual property 756,000 756,000 Acquired software - Leapfrog 617,069 — Internally developed software 573,593 119,225 2,727,911 2,125,225 Accumulated amortization (1,118,683 ) (759,984 ) Carrying value $ 1,609,228 $ 1,365,241 During the nine months ended September 30, 2017, the Company capitalized $454,368 of costs associated with the development of internal-use software, including directly related payroll costs. On August 17, 2017, the Company acquired software from Leapfrog Media Trading in exchange for 200,000 shares of Class A common stock and 350,000 warrants with a term of five years and an exercise price of $3.00. This software is currently being integrated into our platform and we estimate launching on January 1, 2018. No other assets, customers, employees, intangibles or business operations were acquired in this transaction. In connection with a separation and release agreement with Mr. Steel, the Company agreed to reduce the remaining period of the non-compete agreement with Mr. Steel, which was entered into as a result of the acquisition of Steel Media, to a period of eighteen months from the date of his separation from the Company. Accordingly, the Company wrote off $468,750 in value of the non-compete agreement during the nine months ended September 30, 2017. Amortization expense was $37,800 for intellectual property, $52,083 for the non-compete agreement and $42,610 for the internally developed software for the three months ended September 30, 2017. Amortization expense was $37,800 for intellectual property and $52,083 for the non-compete agreement for the three months ended September 30, 2016. Amortization expense was $113,400 for intellectual property, $156,249 for the non-compete agreement and $89,049 for the internally developed software for the nine months ended September 30, 2017. Amortization expense was $113,400 for intellectual property and $156,249 for the non-compete agreement for the nine months ended September 30, 2016. The estimated future amortization expense for the remainder of 2017 and the years ended December 31 thereafter, are as follows: Remainder of 2017 $ 137,883 2018 670,417 2019 548,890 2020 252,038 $ 1,609,228

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	9 Months Ended
	Sep. 30, 2017
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: September 30, 2017 December 31, 2016 Accounts payable, trade $ 10,795,846 $ 11,745,026 Accrued expenses 1,286,428 260,818 Accrued compensation 116,667 319,246 Accrued commissions 235,869 830,993 Total $ 12,434,810 $ 13,156,083

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Sep. 30, 2017
Notes Payable [Abstract]
NOTES PAYABLE	NOTE 8 – 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 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 initial and subsequent notes issued (the “Financing Notes”) bore 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 achieved a reduction in the leverage ratio as described in the Financing Agreement, the PIK interest rate declined on a sliding scale from 4% to 2%. The Financing Notes issued under the Financing Agreement were scheduled to mature on October 30, 2017. During the nine months ended September 30, 2017, we completely repaid the Financing Notes and made principal and PIK interest repayments in the amount of $3,996,928. Notes payable consisted of the following at December 31, 2016: December 31, 2016 Current portion of notes payable and PIK interest $ 3,996,928 Non-current portion of notes payable — Total notes payable and PIK interest 3,996,928 Less deferred financing costs (578,140 ) Notes payable and PIK interest, net of deferred costs $ 3,418,788 We incurred a total of $3,164,352 of costs related to the Financing Agreement. These costs were amortized to interest expense over the life of the debt. During the three months ended September 30, 2017 and 2016, $0 and $250,100, respectively, of debt issuance costs were amortized as interest expense. During the nine months ended September 30, 2017 and 2016, $578,140 and $816,705, respectively, of debt issuance costs were amortized as interest expense. As of September 30, 2017, all deferred debt issuance costs have been completely amortized. During the three months ended September 30, 2017 and 2016, $0 and $206,287, respectively, were recorded as PIK interest expense. During the nine months ended September 30, 2017 and 2016, $0 and $447,736, respectively, were recorded as PIK interest expense. Pursuant to the Financing Agreement, the Company issued to the lender a five-year warrant to purchase 580,000 shares of its Class A common stock at an exercise price of $5.00 per share (the "Financing Warrant"). The warrant holder was not, however, permitted to exercise the Financing Warrant for shares of Class A common stock that would cause such holder to beneficially own shares of Class A common stock that exceeds 4.99% of the Company's outstanding shares of Class A common stock following such exercise. Pursuant to the Financing Warrant, the warrant holder had the right, at any time after the earlier of April 30, 2016 and the maturity date of the Financing Notes issued, but prior to October 30, 2019, 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 had not been previously exercised. In connection with any exercise of this put right, the purchase price was to 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 consolidated revenue for the Company for the trailing 12-month period ending with the Company's then-most recently completed fiscal quarter, and (b) $1,500,000. In May 2017, the Company was notified by the warrant holder that it was exercising its put right. We had a period of 45 days from the date of notice to repay the right or negotiate a settlement. If the right remained unpaid after the 45-day period, interest would accrue on the unpaid balance at a rate of 14% per annum. We recorded the put liability at its present value of $1,500,000 at September 30, 2017 and December 31, 2016, respectively. On October 27, 2017, the obligation was paid in full. As of September 30, 2017, the accrued interest on put liability was $51,323. During the three months ended September 30, 2017, $51,323 was recorded as PIK interest expense. As contemplated under the Financing Agreement, the Company also entered 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 had 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 initially included in a Post-Effective Amendment No. 1 to the registration statement on Form S-1 that was declared effective by the SEC in March 2016. Financing and Security Agreement with FastPay In September 2016, the Company executed a Financing and Security Agreement, as amended (collectively, the "FastPay Agreement"), with FastPay creating an accounts receivable-based credit facility. Under the terms of the FastPay Agreement, FastPay may, at its sole discretion, purchase the Company's eligible accounts receivable. Upon any acquisition of accounts receivable, FastPay will advance the Company up to 80% of the gross value of the purchased accounts, up to a maximum of $8,000,000 in advances. As a result of the Debentures that we issued in April 2017 as further described in Note 10, the Company agreed to reduce the amount of receivables to be purchased to a maximum of $4,000,000. Each account receivable purchased by FastPay will be subject to a factoring fee rate specified in the FastPay Agreement calculated as a percentage of the gross value of the account outstanding and additional fees for accounts outstanding over 30 days. The Company is subject to a concentration limitation on the percentage of debt from any single customer of 25% to the total amount outstanding on its purchased accounts, subject to increase to 50% for its larger customer. The Company is obligated to repurchase accounts remaining uncollected after a specified deadline, and FastPay will generally have full recourse against the Company in the event of nonpayment of any purchased accounts. The Company's obligations under the FastPay Agreement are secured by a first position security interest in its accounts receivable, deposit accounts and all proceeds therefrom. The FastPay Agreement contains covenants that are customary for agreements of this type and are primarily related to accounts receivable and audit rights. The Company is also required to provide FastPay with 30-day notice of any transaction that result, or would result in, a “change of control” as defined in the FastPay Agreement. The failure to satisfy covenants under the FastPay Agreement or the occurrence of other specified events that constitute an event of default, as defined, could result in the termination of the FastPay Agreement and/or the acceleration of the Company's obligations. The FastPay Agreement contains provisions relating to events of default that are customary for agreements of this type. The FastPay Agreement has an initial one-year term and automatically renews for successive one-year terms thereafter, subject to earlier termination by written notice by the Company, provided all obligations are paid, including the payment of an early termination fee. At September 30, 2017, $2,100,539 of accounts receivable purchased by FastPay remain outstanding and are subject to repurchase under the terms of the FastPay Agreement.

PUT WARRANT LIABILITY

PUT WARRANT LIABILITY	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
PUT WARRANT LIABILITY	NOTE 9 – PUT WARRANT LIABILITY As more fully described in Note 11, the Company issued Series A Warrants and Series B Warrants in connection with a securities purchase agreement dated January 4, 2017. The Series A Warrants and the Series B Warrants have been accounted for utilizing ASC 815 “Derivatives and Hedging”. The Company identified embedded derivatives related to the warrants issued. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the warrants and to adjust the fair value as of each subsequent balance sheet date. At the inception of the warrants, the Company determined a fair value of $3,038,344 of the embedded derivatives. On January 4, 2017, the date of inception, the fair value of the embedded derivatives was determined using the Black-Scholes Model based on a risk-free interest rate of 2% for both the Series A Warrants and the Series B Warrants, an expected term of 5.5 years for the Series A Warrants and 5 years for the Series B Warrants, an expected volatility of 110% for the Series A Warrants and the Series B Warrants and a 0% dividend yield for the Series A Warrants and the Series B Warrants, respectively. In April 2017, the Company repurchased the Series B Warrants for $2,500,000 and recognized a loss on the repurchase amounting to $2,053,975. Fair value at September 30, 2017 of the Series A Warrants was estimated to be $757,476 and based on a risk-free interest rate of 1.75%, an expected term of 5 years, an expected volatility of 109% and a 0% dividend yield. During the three months ended September 30, 2017, the decrease in the fair value of the warrant derivative liability of $432,035 was recorded as a gain on change in fair value of derivative liability. During the nine months ended September 30, 2017, the decrease in the fair value of the warrant derivative liability of $1,934,663 was recorded as a gain on change in fair value of derivative liability. As a result of the sale of the Debentures (see Note 10), the exercise price of the Series A Warrants issued to investors in our January 2017 private offering was reset to $2.245 per share. The Company recognized a loss on the repricing of these warrants amounting to $99,820. The put warrant liability is comprised of the following at September 30, 2017: September 30, 2017 Initial derivative liability on issuance of put warrants $ 3,038,344 Plus put warrant repricing adjustment 99,820 Less accretion of put warrants (1,934,663 ) Less repurchase of Series B warrants (446,025 ) Put warrant liability $ 757,476

SECURED CONVERTIBLE DEBENTURES,

SECURED CONVERTIBLE DEBENTURES, NET	9 Months Ended
	Sep. 30, 2017
Convertible Debt [Abstract]
SECURED CONVERTIBLE DEBENTURES, NET	NOTE 10 – SECURED CONVERTIBLE DEBENTURES, NET In April 2017, the Company entered into definitive securities purchase agreements (the “Securities Purchase Agreements”) with certain accredited investors (the “Purchasers”) for the purchase and sale of an aggregate of : (i) $5,000,000 principal amount of 12.5% secured convertible debentures (the “Debentures”); and (ii) five-year Series A warrants (the “Debenture Warrants”) representing the right to acquire up to 833,337 shares of our Class A common stock in a transaction exempt from registration under the Securities Act, in reliance on an exemption provided by Rule 506(b) of Regulation D and Section 4(a)(2) of the Securities Act. The Debentures, which mature three years from the date of issuance, pay interest in cash at the rate of 12.5% per annum, payable quarterly on January 1, April 1, July 1 and October 1, beginning on July 1, 2017. Our obligations under the Debentures are secured by a second position security interest in our accounts receivable and a first position security interest in the balance of our assets, and we are subject to continued compliance with certain financial covenants. The Debentures are convertible at the option of the holder into shares of our Class A common stock at an initial conversion price of $3.00 per share, subject to adjustment as hereinafter set forth. Subject to our compliance with certain equity conditions set forth in the Debentures, upon 20 trading days' notice to the holders we have the right to redeem the Debentures in cash at a 120% premium during the first year and a 110% premium during the remaining term of the Debentures. Upon any optional redemption, we are obligated to issue the holder five-year warrant Series B warrants, the terms of which will be identical to the Debenture Warrants, to purchase a number of shares of our Class A common stock as shall equal 50% of conversion shares issuable on an as-converted basis as if the principal amount of the Debenture had been converted immediately prior to the optional redemption. In the event of future financings by us, subject to certain exempt issuances, the holders have the right to cause us to allocate 20% of the proceeds we may receive as a mandatory redemption of a portion of the principal amount then outstanding. We are also required to redeem the Debentures upon our failure to maintain certain financial covenants which include a minimum monthly current ratio, a maximum quarterly corporate expense ratio, and maintain minimum quarterly revenue and EBITDA related to SRAXmd The Debenture also contains certain customary events of default (including, but not limited to, default in payment of principal or interest thereunder, breaches of covenants, agreements, representations or warranties thereunder, the occurrence of an event of default under certain material contracts of the Company, changes in control of the Company and the entering or filing of certain monetary judgments against the Company). Upon the occurrence of any such event of default, the outstanding principal amount of the Debenture, plus liquidated damages, interest and other amounts owing in respect thereof through the date of acceleration, shall become, at the holder’s election, immediately due and payable in cash. The Company is also subject to certain customary non-financial covenants under the Debenture. The Debenture holders were granted board observation rights so long as the lead investor continues to hold the Debentures. The Debenture Warrants are initially exercisable at $3.00 per share and, if at any time after the six-month anniversary of the issuance the underlying shares of our Class A common stock are not covered by an effective resale registration statement, the Debenture Warrants are exercisable on a cashless basis. The conversion price of the Debentures and the exercise price of the Debenture Warrants are subject to adjustments upon certain events, including stock splits, stock dividends, subsequent equity transactions (other than specified exempt issuances), subsequent rights offerings, and fundamental transactions, subject to a floor of $1.40 per share. If we fail to timely deliver the shares of our Class A common stock upon any conversion of the Debentures or exercise of the Debenture Warrants we will be subject to certain buy-in provisions. Pursuant to the terms of the Debentures and Debenture Warrants, a holder will not have the right to convert any portion of the Debentures or exercise any portion of the Debenture Warrants if the holder (together with its affiliates) would beneficially own in excess of 4.99% of the number of shares of Class A common stock outstanding immediately after giving effect to such conversion or exercise, as such percentage ownership is determined in accordance with the terms of the Debentures and the Debenture Warrants; provided that after the Shareholder Approval Date, as defined below, at the election of a holder and notice to us such percentage ownership limitation may be increased or decreased to any other percentage, not to exceed 9.99%; provided that any increase will not be effective until the 61 st In accordance with the Nasdaq Marketplace Rules, until such time as our stockholders have approved the Securities Purchase Agreements and the transactions thereunder (the "Shareholder Approval Date"), we were not obligated to issue any shares of our Class A common stock upon any conversion of the Debentures and/or exercise of the Debenture Warrants, and the holders had no right to receive upon conversion and/or exercise thereof any shares of our Class A common stock, to the extent the issuance of such shares of Class A common stock would exceed 20% of our outstanding Class A common stock prior to the transaction. We held a special meeting of the shareholders on June 23, 2017 whereby we obtained approval of the Securities Purchase Agreements and the transactions thereunder. We agreed to file a registration statement registering the resale of the shares of our Class A common stock underlying the Debentures and the Debenture Warrants. Under the terms of the Securities Purchaser Agreements, we also granted the Purchasers of the Debentures the right to purchase an additional $3,000,000 of Debentures upon the same terms and conditions for a period beginning on the Shareholder Approval Date and expiring on earliest of the date that (a) the initial registration statement has been declared effective by the SEC, (b) all of the underlying shares have been sold pursuant to Rule 144 or may be sold pursuant to Rule 144 without the requirement for our company to be in compliance with the current public information required under Rule 144 and without volume or manner-of-sale restrictions, (c) following the one year anniversary of the closing date provided that a holder of the underlying shares is not an affiliate of the Company or (d) all of the underlying shares may be sold pursuant to an exemption from registration under Section 4(a)(1) of the Securities Act. The shares underlying the Debentures and Debenture Warrants were included in a resale registration statement on Form S-3 that was declared effective by the SEC in June 2017. Chardan Capital Markets, LLC (“Chardan Capital”), Noble Capital Markets, Inc. ("Noble") and Aspenwood Capital (an independent branch of Colorado Financial Services Corporation) (“Aspenwood”), all broker-dealers and members of FINRA, acted as either our placement agent or a finder in connection with the sale of the securities pursuant to the Securities Purchase Agreements. In addition, an affiliate of Noble purchased Debentures amounting to $720,000 and was issued Debenture Warrants to purchase 120,000 shares of our Class A common stock in this offering. We paid aggregate cash commissions amounting to $276,700 to these broker-dealers in connection with the sale of the Debentures. Additionally, we issued Chardan Capital placement agent warrants ("Chardan Placement Agent Warrants") to purchase 100,000 shares of our Class A common stock at an exercise price of $3.75 per share which are exercisable for 5.5 years commencing six months from the issuance date. We issued Noble placement agent warrants (“Noble Placement Agent Warrants”) to purchase up to 66,800 shares of our Class A common stock at an exercise price of $3.00 per share which will become exercisable six months from the date of issuance. We also issued Colorado Financial Service Corporation and its designees warrants (“Aspenwood Warrants”) to purchase 7,700 shares of our Class A common stock at an exercise price of $3.75 per share which are exercisable for 5.5 years commencing six months from the issuance date. We included the shares underlying the Chardan Placement Agent Warrants, the Noble Placement Agent Warrants, and the Aspenwood Warrants in the aforedescribed resale registration statement that was declared effective by the SEC in June 2017. The net proceeds to us from the offering, after deducting placement agent fees and estimated offering expenses, were approximately $4,636,629. We utilized $2,500,000 of the net proceeds to satisfy a put obligation under the Series B Warrants issued to investors in a registered direct offering that we conducted in January 2017 as described in Note 11. The balance of the net proceeds was used to pay down accounts payable and satisfy other working capital requirements. The Company issued Debenture Warrants in connection with the Securities Purchase Agreements. The Debenture Warrants have been accounted for utilizing ASC 815 “Derivatives and Hedging”. The Company identified embedded derivatives related to the Debenture Warrants issued. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception dates of the warrants and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Debenture Warrants, the Company determined a fair value of $1,228,484 of the embedded derivatives. On April 21 and April 28, 2017, the dates of inception, the fair value of the embedded derivatives was determined using the Black-Scholes Model based on a risk-free interest rate of 1.875%, an expected term of 5.5 years, an expected volatility of 109% and a 0% dividend yield for each respective date. Fair value at September 30, 2017 of the Debenture Warrants was estimated to be $1,615,844 based on a risk-free interest rate of 1.75%, an expected term of 5.33 years, an expected volatility of 109% and a 0% dividend yield. During the three months and nine months ended September 30, 2017, we recorded an the increase in the fair value of the warrant derivative liability of $892,808 and $387,360 respectively. This was recorded as a loss on change in fair value of derivative liability. The Debenture Warrant liability is comprised of the following at September 30, 2017: September 30, 2017 Initial derivative liability on issuance of debenture warrants $ 1,228,484 Less accretion of debenture warrants 387,360 Debenture warrant liability $ 1,615,844 In addition to the Debenture Warrants issued in connection with the Securities Purchase Agreements. The Company has additionally determined that the conversion feature of the Debentures should be accounted for utilizing ASC 815 “Derivatives and Hedging”. The Company identified embedded derivatives related to the conversion of debt into shares of stock. The accounting treatment of derivative financial instruments requires that the Company record the fair value of this derivative as of the inception dates of the debt and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Debentures, the Company determined a fair value of $1,535,239 of these embedded derivatives. On April 21 and April 28, 2017, the dates of inception, the fair value of the embedded derivatives was determined using the Black-Scholes Model based on a risk-free interest rate of 1.525%, an expected term of 3 years, an expected volatility of 90% and a 0% dividend yield for each respective date. Fair value at September 30, 2017 of the debenture conversion liability was estimated to be $1,936,752 based on a risk-free interest rate of 1.5%, an expected term of 2.83 years, an expected volatility of 86% and a 0% dividend yield. During the three months and nine months ended September 30, 2017, we recorded an increase in the fair value of the debenture conversion liability of $1,246,810 and $401,513 respectively. This was recorded as a loss on change in fair value of derivative liability. The debenture conversion liability is comprised of the following at September 30, 2017: September 30, 2017 Initial derivative liability for the convertible conversion $ 1,535,239 Less accretion of convertible conversion liability 401,513 Debenture conversion liability $ 1,936,752 The secured convertible debentures are comprised of the following at September 30, 2017: September 30, 2017 Senior convertible debentures $ 5,000,000 Less unamortized discount on debentures (2,379,873 ) Total 2,620,127 Less deferred financing costs (527,329 ) Senior convertible debentures, net $ 2,092,798

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2017
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	NOTE 11 – STOCKHOLDERS' EQUITY Common Stock On January 4, 2017, the Company entered a definitive securities purchase agreement with two fundamental institutional investors (the “Investors”) for the purchase and sale of an aggregate of: (i) 761,905 shares of the Company’s Class A common stock; and (ii) five-year Series B Warrants (the “Series B Warrants”) representing the right to acquire up an additional 380,953 shares of our Class A common stock at an exercise price of $7.00 per share. The shares of our Class A common stock and the Series B Warrants were sold in a registered direct offering and we received gross proceeds of $3,980,001. Simultaneously we conducted a private placement with the same Investors for no additional consideration of Series A Warrants (the “Series A Warrants”) representing the right to acquire up to an additional 380,953 shares of our Class A common stock at an exercise price of $6.70 per share. The Series A Warrants are exercisable for five years commencing 6 months from the date of closing of the private sale of the Series A Warrants to the Investors. The exercise price of the Series A Warrants is subject to full ratchet adjustment in certain circumstances, subject to a floor price of $1.20 per share. The adjustment provisions under the terms of the Series A Warrants will be extinguished at such time as our Class A common stock trades at or above $10.00 per share for 20 consecutive trading days, subject to the satisfaction of certain equity conditions. In addition, if there is no effective registration statement covering the shares issuable upon the exercise of the Series A Warrants, the warrants are exercisable on a cashless basis. If we fail to timely deliver the shares underlying the warrants, we will be subject to certain buy-in provisions. As a result of the sale of the Debentures, the exercise price of the Series A Warrants issued to investors in our January 2017 private offering were reset to $2.245 per share. Beginning 100 days after the issuance date of the Series B Warrants, at any time the market price of our Class A common stock is less than $5.25 per share, the holders had the right to exercise the Series B Warrants on a cashless basis for shares of our Class A common stock calculated pursuant to a formula set forth in the Series B Warrants. We had the right, in lieu of delivery of such shares of our Class A common stock, to pay the holder of the Series B Warrants being exercised on a cashless basis, a specified amount in cash, with a maximum cash payment of $2,500,000. The holders of the Series B Warrants exercised their right in April 2017 and we repurchased the Series B Warrants for $2,500,000. Pursuant to the terms of the warrants, a holder of a warrant will not have the right to exercise any portion of the warrant if the holder (together with its affiliates) would beneficially own in excess of 9.99% of the number of shares of Class A common stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the warrants; provided that at the election of a holder and notice to us such percentage ownership limitation may be increased or decreased to any other percentage, not to exceed 9.99%; provided that any increase will not be effective until the 61 st In the event of any extraordinary transaction, as described in the warrants and generally including any merger with or into another entity, sale of all or substantially all of our assets, tender offer or exchange offer, or reclassification of our common stock, the holder will have the right to have the warrants and all obligations and rights thereunder assumed by the successor or acquiring corporation. Also, at the election of the holder of each warrant, in the event of an extraordinary transaction, we or any successor entity may be required to repurchase such warrant for an amount of cash equal to the value of the warrant as determined in accordance with the Black Scholes option pricing model and the terms of the warrants. Pursuant to an engagement letter dated December 29, 2016 (the “Placement Agent Agreement”) by and between the Company and Chardan Capital Markets, Chardan Capital agreed to act as the Company’s placement agent in connection with both the registered direct offering and a concurrent private placement. Pursuant to the Placement Agent Agreement, the Company paid Chardan Capital a cash fee equal to $160,000 (4% of the gross proceeds), as well as reimbursement of its expenses related to the offering in the amount of $15,000. In addition, the Company granted Chardan Capital a warrant to purchase 76,190 shares of Class A common stock (the “Placement Warrants”). The Placement Warrants have an exercise price of $6.50 per share and are exercisable for 5.5 years commencing six months from the issuance date. The shares underlying the Placement Warrants were included in a resale registration statement on Form S-3 that was declared effective by the SEC in June 2017. The net proceeds to the Company from the offering, after deducting placement agent fees and estimated offering expenses, were $3,830,000. The proceeds of the offering were used to satisfy the outstanding notes issued under the terms of the Financing Agreement. In connection with the January 2017 capital raise, Victory Park Management, LLC agreed not to exercise the put right under the Financing Warrant prior to May 20, 2017. Victory Park Management, LLC exercised the put right on May 22, 2017. We had had 45 days to satisfy this obligation which remains unpaid. On October 27, 2017, the Company satisfied this obligation in full utilizing a portion of net proceeds from a second debenture financing. The Class A shares of common stock and Series B Warrants were sold and issued pursuant to the Prospectus Supplement, dated January 4, 2017, to the Prospectus included in the Company’s Registration Statement on Form S-3 (Registration No. 333-214644) filed with the SEC on November 16, 2016 and declared effective on November 28, 2016. In September and October 2016, we sold an aggregate of 920,000 units of our securities to accredited investors in a private placement exempt from registration under the Securities Act in reliance on exemptions provided by Section 4(a)(2) and Rule 506(b) of Regulation D. The units were sold at a purchase price of $5.00 per unit resulting in gross proceeds to us of $4,625,000. Each unit consisted of one share of our Class A common stock and one three-year Class A Common Stock Purchase Warrant (“Purchase Warrants”) to purchase 0.5 shares of our Class A common stock at an exercise price of $7.50 per share. We agreed to file a registration statement with the SEC within 90 days after the final closing in this offering registering for resale the shares of our Class A common stock issuable upon the exercise of the Purchase Warrants, together with the shares of our Class A common stock underlying the Placement Agent Warrants. The shares underlying the Purchase Warrants were included in a resale registration statement on Form S-3 that was declared effective by the SEC in February 2017. T.R. Winston & Company, LLC (“T.R. Winston”), a broker-dealer and member of FINRA, acted as placement agent for us in this offering. We paid placement agent commissions totaling $266,000 and agreed to issue it three year warrants Placement Agent Warrants to purchase 68,400 shares of our Class A common stock at an exercise price of $7.50 per share. We also provided T.R. Wilson 22,392 units in this offering in lieu of cash placement agent commissions totaling $109,956 and the reimbursement of certain expenses. T.R. Winston has reallocated a portion of the commissions and Placement Agent Warrants to a selected dealer member of the selling group resulting in the payment by us of a cash commission of $2,000 and the issuance of an additional 400 Placement Agent Warrants. We also agreed to pay T.R. Winston a fee of 4% of the proceeds we may receive upon the exercise of the warrants included in the units. We used $2,000,000 of the net proceeds received by us in this offering to further reduce our obligations which were outstanding under the Financing Agreement. We are using the balance of the proceeds for general working capital. In connection with an advisory agreement with kathy ireland Worldwide LLC ("kiWW"), the Company issued affiliates and designees of kiWW 100,000 shares of its Class A common stock valued at $678,000 on January 2, 2017. In January 2017, we issued 3,858 shares of our Class A common stock valued at $12,500 to Mr. Derek J. Ferguson upon his appointment to our board of directors and the audit committee of the board. He is an accredited investor and the issuance was exempt from registration under the Securities Act pursuant to an exemption provided by Section 4(a)(2) of that act. In February 2017, the Company issued Mr. Steven Antebi 150,000 shares of our Class A common stock valued at $540,000 as compensation for services under the terms of a consulting agreement. He is a principal stockholder of the Company. In March 2017, we issued 51,667 shares of Class A common stock for vested stock awards. In March 2017, we issued 6,510 shares of our Class A common stock valued at $12,500 to Mr. Robert Jordan upon his appointment to our board of directors and the audit committee of the board. He is an accredited investor and the issuance was exempt from registration under the Securities Act pursuant to an exemption provided by Section 4(a)(2) of that act. In August 2017, we issued 200,000 shares in conjunction with our acquisition of certain intellectual property assets from Leapfrog Media Trading, Inc. In September 2017, we issued 7,813 shares to a new member of our board of directors. Stock Awards There was one new grant of stock awards made during the three months ended September 30, 2017. Awards in the amount of 3,333 common shares were forfeited during the nine months ended September 30, 2017. During the three months ended September 30, 2017 and 2016, we recorded stock award expenses of $129,166 and $40,834; respectively. During the nine months ended September 30, 2017 and 2016, we recorded stock award expenses of $398,412 and $250,088; respectively. Stock Options and Warrants There were no new grants of stock options made during the nine months ended September 30, 2017. Awards in the amount of 157,000 options were forfeited during the nine months ended September 30, 2017. During the three months ended September 30, 2017 and 2016, we recorded stock option expense of $90,038 and $66,588, respectively. During the nine months ended September 30, 2017 and 2016, we recorded stock option expense of $308,908 and $181,650, respectively. In November 2016, the Company entered an Investor Relations and Consulting Agreement (“Consulting Agreement”) with Market Street Investor Relations, LLC (“Consultant”). The Company engaged the Consultant to provide certain investor relations and public relations services on behalf of the Company as are more fully described in the Consulting Agreement. The term of the Consulting Agreement is for a period of six-months from the effective date and may be extended for an additional six-month term. In lieu of cash payments for the services rendered by the Consultant, the Company issued the Consultant a three year Class A common stock purchase warrant to purchase 400,000 shares of the Company’s Class A common stock at an exercise price of $7.50 per share. The warrants vest based on specific milestones described within the Consulting Agreement. The value of the warrants at the date of grant was $1,390,264. At the direction of the Consultant, a warrant to purchase 200,000 shares was issued to the Consultant and a warrant to purchase 200,000 shares was issued to Steve Antebi (a principal stockholder in the Company). The Company also advanced the Consultant $100,000 on the effective date to cover anticipated expenses regarding the services to be performed by the Consultant. The Company paid the Consultant an additional $50,000 for expenses incurred during the nine months ended September 30, 2017. The Company is recognizing the value of the services rendered over the term of the Consulting Agreement. As of September 30, 2017, the Consultant has not yet attained any of the milestones contained within the Consulting Agreement and the Company reversed $275,637 of expense related to the Consulting Agreement. During the nine months ended September 30, 2017, it was determined that the Company would not extend the Consulting Agreement with the Consultant. On September 15, 2017, the Company entered an Investor Relations and Consulting Agreement (“Consulting Agreement”) with Al & J Media, Inc. (“Consultant”). The Company engaged the Consultant to provide certain consulting services on behalf of the Company as are more fully described in the Consulting Agreement. Under the terms of this agreement, which expires on December 15, 2017, the Company engaged Al & J Media, Inc. to provide a variety of advisory and consulting services to the Company, including introducing the Company to potential sources of media, marketing agreement(s) and/or other strategic alliances which may benefit the Company in the performance of implementing its business plan(s), including but not limited to radio and television media spots; various media publications; and internet podcasts. As compensation for such services, the Company will issue Al & J Media, Inc. 75,000 shares valued at $97,500 of its Class A common stock on September 15, 2017. Although the shares to be issued are for future services over the term of the agreement, we have recognized the value of these services as an expense during the three months ended September 30, 2017. Reverse Stock Split In September 2016, the Company completed a reverse stock split whereby each five shares of the Company's Class A common stock issued and outstanding, or held as treasury shares, immediately prior to the effective date of the reverse stock split became one share of its Class A common stock on the effective date of the reverse stock split. No fractional shares of Class A common stock were issued to any stockholder and all fractional shares which might otherwise be issuable because of the reverse stock split were rounded up to the nearest whole share. On the effective date of the reverse stock split, all outstanding options and warrants to purchase shares of the Company's Class A common stock were proportionally adjusted based upon the split ratio and became exercisable into one-fifth of the number of shares of the Company's Class A common stock as it was prior to the reverse stock split at an exercise price which is five times the exercise price prior to the reverse stock split. After the effective date of the reverse stock split, each certificate representing shares of pre-reverse stock split Class A common stock was deemed to represent one-fifth of a share of the post-reverse stock split Class A common stock, subject to rounding for fractional shares, and the records of the Company's transfer agent, Transfer Online, Inc., were adjusted to give effect to the reverse stock split. Following the effective date of the reverse stock split, the share certificates representing the pre-reverse stock split Class A common stock continue to be valid for the appropriate number of shares of post-reverse stock split Class A common stock, adjusted for rounding. These unaudited condensed consolidated financial statements give retroactive effect to the reverse stock split for all periods presented, unless otherwise specified.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 12 – RELATED PARTY TRANSACTIONS Mr. Malcolm Casselle, a member of our board of directors, is the Chief Technology Officer and President of New Ventures of Tronc, Inc. (“Tronc”), one of our major advertisers. At June 30, 2017, Tronc owed us $1,042,000, net of liabilities owed Tronc. The majority of the net amount outstanding relates to a number of transactions with Tronc and a predecessor company controlled by Tronc that dates back to the second quarter 2016. On August 25, 2017, Social Reality, Inc. filed a lawsuit against Tronc for breach of contract, fraudulent concealment and deceptive business practices (case number 1:17-cv-05998, U.S. District Court for the Northern District of Illinois). We have alleged that Tronc, Inc. and Tribune Content Agency, LLC refused to perform their contractual obligations and breached the terms of contract and insertion orders, causing us to suffer close to $35 million in damages. We are seeking a judgment in the amount of the damages as well as costs and such other relief as the court may award. Mr. Steven Antebi, a principal stockholder in the Company, served as a consultant to the Company. We paid him $540,000 and $0 for services provided to us during the nine months ended September 30, 2017 and 2016, respectively, through the issuance of shares of our Class A common stock. Additionally, the Company previously entered a Consulting Agreement with a Consultant that is controlled by Mr. Antebi. For further details regarding this arrangement, refer to Note 11.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 13 – COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases office space under operating leases with lease terms which expire through January 31, 2018. Rent expense for office space amounted to $35,000 and $81,069 for the three months ended September 30, 2017 and 2016, respectively. Rent expense for office space amounted to $177,908 and $221,569 for the nine months ended September 30, 2017 and 2016, respectively. Future minimum lease payments required under the operating leases amount to $11,700 for the remainder of the year ended December 31, 2017 and $800 for the year ended December 31, 2018. 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 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 due to 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 agreement. Such indemnification agreements may not be subject to maximum loss clauses. Employment agreements We have entered employment agreements with key 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. On August 25, 2017 Social Reality, Inc. filed a lawsuit against Tronc, Inc. (formerly Tribune Publishing Company LLC) and Tribune Content Agency, LLC for breach of contract, fraudulent concealment and deceptive business practices (case number 1:17-cv-05998, U.S. District Court for the Northern District of Illinois). We have alleged that Tronc, Inc. and Tribune Content Agency, LLC refused to perform their contractual obligations and breached the terms of contract and insertion orders, causing us to suffer close to $35 million in damages. We are seeking a judgment in the amount of the damages as well as costs and such other relief as the court may award. The Company is not currently a party to any other 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	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 14 – SUBSEQUENT EVENTS Between October 2, 2017 and October 17, 2017, multiple investors in the Company’s April 2017 debenture financing converted an aggregate of $655,000 of debentures into 218,334 shares of Class A common stock. On October 17, 2017, one investor in the Company’s April 2017 debenture financing exercised 83,334 Series A common stock purchase warrants at an exercise price of $3.00 per share, resulting in gross proceeds to the Company of $250,002. On October 17, 2017, 70,409 shares issued to our Chief Financial Officer as outlined in his October 17, 2016 employment agreement. On October 17, 2017, the Company issued a press release announcing it has engaged financial advisors to explore strategic alternatives for the company's SRAXmd business. On October 26, 2017, the Company entered into definitive securities purchase agreements (the “Securities Purchase Agreement”) with certain prior accredited investors (the “Purchasers”) for the purchase and sale of an aggregate of: (i) $5,180,157.78 in principal amount of 12.5% secured convertible debentures (the "Debentures"); and (ii) five year Series A common stock purchase warrants (the “Series A Warrants”) representing the right to acquire up to 863,365 shares of our Class A common stock (the “Offering”) in a transaction exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), in reliance on the exemption provided by Rule 506(b) of Regulation D and Section 4(a)(2) of the Securities Act. The Offering includes (i) $2,000,000 of Debentures and Series A Warrants pursuant to the exercise of a green shoe (“Green Shoe”) provision contained in the transaction documents for the purchase and sale of the Prior Debentures (as defined below) and (ii) $3,180,157.78 of additional Debentures. The Debentures and Series A Warrants are being sold for a combination of cash and the cancellation of debt or receivables. The Debentures also contain certain customary events of default (including, but not limited to, default in payment of principal or interest thereunder, breaches of covenants, agreements, representations or warranties thereunder, the occurrence of an event of default under certain material contracts of the Company, changes in control of the Company and the entering or filing of certain monetary judgments against the Company). Upon the occurrence of any such event of default, the outstanding principal amount of the Debenture for a premium, plus liquidated damages, interest and other amounts owing in respect thereof through the date of acceleration, shall become, at the holder’s election, immediately due and payable in cash. The Company is also subject to certain negative covenants under the Debenture, including but not limited to, the creation of certain debt obligations, liens on Company assets, amending its charter documents, repayment or repurchase of securities or certain debt of the Company, or the payment of dividends. The Series A Warrants are being issued as follows: (i) 333,335 issued pursuant to the Green Shoe and in connection with A-1 Debentures and (ii) 530,030 are being issued in connection with the A-2 Debentures. The Series A Warrants issued pursuant to the A-1 Debentures and A-2 Debentures have the same form. The Series A Warrants are initially exercisable at $3.00 per share and, are subject to cashless exercise after six months if the shares underlying the warrants are not subject to an effective resale registration statement. The Series A Warrants also contain anti-dilution protection for subsequent equity sales for a price lower than the then applicable exercise price, with a floor of $1.40. st Chardan Capital Markets, LLC (“Chardan Capital”) acted as lead placement agent and Aspenwood Capital acted as co-placement agent ("Aspenwood"), in connection with the sale of the securities pursuant to the Securities Purchase Agreement. Pursuant to their respective engagement agreements, we will pay Chardan Capital a cash commission of $149,021.25 and Aspenwood a cash commission of $70,000. Pursuant to the discussion above, we also issued an aggregate of 160,000 PA Warrants to Chardan Capital and an aggregate of 23,337 PA Warrants to Aspenwood. We will include the shares underlying the Placement Agent Warrants in the resale registration statement we expect to file.

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Uses and Sources of Liquidity	Uses and Sources of Liquidity Our primary need for liquidity is to fund working capital requirements of our business, development of internally used software and for general corporate purposes, including debt repayment. Our general, selling and administrative expenses decreased from $3,851,890 for the three months ended September 30, 2016 to $3,659,202 for the three months ended September 30, 2017. Our general, selling and administrative expenses increased from $11,082,581 for the nine months ended September 30, 2016 to $11,395,454 for the nine months ended September 30, 2017. We incurred a loss of $4,074,328 for the three months ended September 30, 2017 compared to a net loss of $2,375,846 for the three months ended September 30, 2016 and incurred losses of $6,836,958 and $2,904,299 for the nine months ended September 30, 2017 and 2016, respectively. At September 30, 2017, we had an accumulated deficit of $21,226,961. As of September 30, 2017, we had $216,409 in cash and cash equivalents and a deficit in working capital of $11,075,405 as compared to $1,048,762 in cash and cash equivalents and a deficit in working capital of $8,276,099 at December 31, 2016. We are currently experiencing a period of limited liquidity resulting from the complete repayment of senior secured notes associated with a financing agreement previously held by Victory Park Management, LLC and the repurchase of the Series B Warrants in April 2017. Additionally, we were notified in May 2017 that Victory Park Management, LLC had exercised its put right for the repurchase of the Financing Warrant which amounts to $1,500,000. See Note 8 for a further discussion of this obligation. During January 2017, we satisfied all outstanding obligations under the Victory Park Management, LLC financing agreement utilizing proceeds from the factoring of our receivables and sales of our securities. While the repayment of the amounts owed under this financing agreement is expected to result in overall savings to us through the elimination of both the associated interest expense as well as the internal costs related to the reporting obligations under its terms, the repayment of these notes have adversely impacted our current liquidity. To address the immediate impact of this decreased liquidity, we developed certain operating plans that focus on increased profitability growth through higher gross margin sales and cost reductions as further described herein. If our revenue increases throughout the next twelve months as anticipated, additional liquidity is expected to be readily available under our accounts receivable factoring agreement with FastPay Partners, LLC (“FastPay”). See Note 8 for a further discussion of this agreement. In March 2017, the Company initiated a restructuring program targeted to deliver cost savings in 2017 and beyond. Under the restructuring program, the Company made certain reductions in staffing and a restructuring of sales management compensation, delayed certain previously budgeted expenditures, eliminated certain operating expenses, simplified our organizational structure, including greater consolidation of our sales force and support functions, and extended payments to certain vendors. We recognized certain one-time costs amounting to $377,961 related to the restructuring. Although, we anticipate increasing our revenue streams, we believe our primary objective should evolve around profitability instead of revenue and market share each of which relate to, but do not necessarily drive profit. Accordingly, the Company has taken several actions to continue to support its operations and meet its obligations. The accompanying unaudited condensed consolidated financial statements have been prepared on the basis that the Company will continue to operate as a going concern. Our future success depends upon our ability to contain our operating expenses and generate profits. We do not have any long-term agreements with our customers. There are no assurances that we will be able to increase our revenue and cash flow to a level which supports profitable operations. It is uncertain whether the Company can attain profitability and positive cash flows from operations. In addition to increasing sales, lowering costs, and a more aggressive approach in managing our accounts payable, our plan to continue as a going concern also included raising additional capital through borrowing and/or additional sales of equity or equity linked securities. In April 2017, we entered a definitive securities purchase agreement which provided $5,000,000 in additional capital allowing us to satisfy certain warrant put obligations as further discussed in Note 10. In October 2017, we entered into an additional definitive securities purchase agreement which provided for an additional $5,180,158 of capital that allowed us to satisfy all amounts due under the Financing Warrant, as well as partially reduce our working capital deficit through payment of certain outstanding payables. We acknowledge that we continue to face a challenging competitive environment and while we continue to focus on our overall profitability, including managing expenses, we reported losses and were required to fund cash used in operating and investing activities with cash provided by financing activities. We expect that the actions initiated in 2017 will enhance our liquidity and financial flexibility toward the beginning of 2018. We also announced several new revenue initiatives that could provide additional revenue growth opportunities beginning in the second half of 2018. Our historical operating results indicate substantial doubt exists related to the Company's ability to continue as a going concern. We believe that the actions discussed above are probable of occurring and mitigating the substantial doubt raised by our historical operating results and satisfying our estimated liquidity needs 12 months from the issuance of the financial statements. However, we cannot predict, with certainty, the outcome of our actions to generate liquidity or whether such actions would generate the expected liquidity as currently planned. If we continue to experience operating losses, and we are not able to generate additional liquidity through the mechanisms described above or through some combination of other actions, while not expected, we may not be able to access additional funds and we might need to secure additional sources of funds, which may or may not be available to us under terms and conditions that are favorable to our success. Additionally, a failure to generate additional liquidity could negatively impact our access to services that are important to the operation of our business. The unaudited condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of the Company’s inability to continue as a going concern. The outcome of these plans cannot be predicted at this time.
Effect of Reverse Stock Split on Presentation	Effect of Reverse Stock Split on Presentation In September 2016, the Company completed a 1 for 5 reverse stock split of our Class A common stock. These unaudited condensed consolidated financial statements give retroactive effect to the reverse stock split for all periods presented, unless otherwise specified.
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All material intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates The unaudited condensed consolidated financial statements have been prepared in conformity with GAAP and requires management of the Company to make estimates and assumptions in the preparation of these unaudited condensed 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 expense during the reporting periods. 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, goodwill, other intangible assets, put rights and valuation of liabilities.
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 revenue transactions as the Company is the primary obligor in the transactions. As such, 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 either a revenue-generating event or 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-through, 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 unaudited condensed consolidated statements of operations.
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 does not require collateral. Allowance for doubtful accounts was $91,172 and $254,875 at September 30, 2017 and December 31, 2016, 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 with financial institutions within the United States. The Company has not experienced any loss on these accounts. The balances are maintained in demand accounts to minimize risk. At September 30, 2017, four customers accounted for more than 10% of the accounts receivable balance for a total of 84%. For the nine months ended September 30, 2017, five customers accounted for 52% of total revenue. At December 31, 2016, two customers accounted for more than 10% of the accounts receivable balance for a total of 61%. For the nine months ended September 30, 2016, one customer accounted for 49% 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 September 30, 2017 and December 31, 2016, 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, a non-complete agreement, and internally developed software 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 three to six years. The Company capitalizes the costs of developing internal-use computer software, including directly related payroll costs. The Company amortizes costs associated with its internally developed software over periods up to three years, beginning when the software is ready for its intended use.
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 and change to annual impairment testing period	Goodwill and change to annual impairment testing period 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 had historically performed its annual goodwill and impairment assessment on September 30 th st No impairment of goodwill has been recorded during the three or nine months ended September 30, 2017, respectively. During the three and nine months ended September 30, 2016, we recognized an impairment of goodwill that amounted to $670,000, respectively.
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 regarding its identifiable intangible assets or other long-lived assets during the three or nine months ended September 30, 2017 or 2016, respectively.
Loss Per Share	Loss Per Share We use Accounting Standards Codification (“ASC”) 260, " Earnings Per Share There were 6,254,705 common share equivalents at September 30, 2017 and 2,912,069 common share equivalents at September 30, 2016. For the nine months ended September 30, 2017 and 2016, respectively, these potential shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share.
Income Taxes	Income Taxes We utilize ASC 740 “ Income Taxes The Company recognizes the impact of a tax position in the consolidated 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 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.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consists of the following at September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Office equipment $ 216,378 $ 119,091 Accumulated depreciation (77,839 ) (63,599 ) Property and equipment, net $ 138,539 $ 55,492

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible assets	Intangible assets consist of the following: September 30, 2017 December 31, 2016 Non-compete agreement $ 781,249 $ 1,250,000 Intellectual property 756,000 756,000 Acquired software - Leapfrog 617,069 — Internally developed software 573,593 119,225 2,727,911 2,125,225 Accumulated amortization (1,118,683 ) (759,984 ) Carrying value $ 1,609,228 $ 1,365,241
Schedule of Estimated Future Amortization Expense	The estimated future amortization expense for the remainder of 2017 and the years ended December 31 thereafter, are as follows: Remainder of 2017 $ 137,883 2018 670,417 2019 548,890 2020 252,038 $ 1,609,228

ACCOUNTS PAYABLE AND ACCRUED 23

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	9 Months Ended
	Sep. 30, 2017
Accounts Payable and Accrued Liabilities [Abstract]
Schedule of Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses are comprised of the following: September 30, 2017 December 31, 2016 Accounts payable, trade $ 10,795,846 $ 11,745,026 Accrued expenses 1,286,428 260,818 Accrued compensation 116,667 319,246 Accrued commissions 235,869 830,993 Total $ 12,434,810 $ 13,156,083

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Payable [Abstract]
Schedule of Notes Payable	Notes payable consisted of the following at December 31, 2016: December 31, 2016 Current portion of notes payable and PIK interest $ 3,996,928 Non-current portion of notes payable — Total notes payable and PIK interest 3,996,928 Less deferred financing costs (578,140 ) Notes payable and PIK interest, net of deferred costs $ 3,418,788

PUT WARRANT LIABILITY (Tables)

PUT WARRANT LIABILITY (Tables)	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Put Warrant Liability	The put warrant liability is comprised of the following at September 30, 2017: September 30, 2017 Initial derivative liability on issuance of put warrants $ 3,038,344 Plus put warrant repricing adjustment 99,820 Less accretion of put warrants (1,934,663 ) Less repurchase of Series B warrants (446,025 ) Put warrant liability $ 757,476

SECURED CONVERTIBLE DEBENTURE26

SECURED CONVERTIBLE DEBENTURES, NET (Tables)	9 Months Ended
	Sep. 30, 2017
Convertible Debt [Abstract]
Schedule of Debenture Warrant Liability	The Debenture Warrant liability is comprised of the following at September 30, 2017: September 30, 2017 Initial derivative liability on issuance of debenture warrants $ 1,228,484 Less accretion of debenture warrants 387,360 Debenture warrant liability $ 1,615,844
Schedule of Debenture Conversion Liability	The debenture conversion liability is comprised of the following at September 30, 2017: September 30, 2017 Initial derivative liability for the convertible conversion $ 1,535,239 Less accretion of convertible conversion liability 401,513 Debenture conversion liability $ 1,936,752
Schedule of Secured Convertible Debentures	The secured convertible debentures are comprised of the following at September 30, 2017: September 30, 2017 Senior convertible debentures $ 5,000,000 Less unamortized discount on debentures (2,379,873 ) Total 2,620,127 Less deferred financing costs (527,329 ) Senior convertible debentures, net $ 2,092,798

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	1 Months Ended				3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 31, 2017USD ($)	May 31, 2017USD ($)	Apr. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)Itemshares	Sep. 30, 2016USD ($)shares	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
General, selling and administrative expense					$ 3,659,202	$ 3,851,890	$ 11,395,454	$ 11,082,581
Net loss					4,074,328	2,375,846	6,836,958	2,904,299
Restructuring costs				$ 377,961			377,961
Proceeds from debentures			$ 5,000,000				$ 2,136,629
Reverse stock split ratio							5
Allowance for doubtful accounts					91,172		$ 91,172		$ 254,875
Number of operating segments | Item							1
Antidilutive common share equivalents | shares							6,254,705	2,912,069
Goodwill impairment								$ 670,000
Impairment of long-lived assets
Accumulated deficit					21,226,961		21,226,961		14,390,003
Cash and cash equivalents					216,409	$ 4,241,230	216,409	$ 4,241,230	1,048,762	$ 1,091,186
Working capital deficit					$ 11,075,405		$ 11,075,405		$ 8,276,099
Minimum [Member]
Property and equipment estimated useful life							3 years
Intangible assets estimated useful life							3 years
Maximum [Member]
Property and equipment estimated useful life							7 years
Intangible assets estimated useful life							6 years
Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration risk percentage							84.00%		61.00%
Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
Concentration risk percentage							52.00%	49.00%
Subsequent Event [Member] | 12.5% secured convertible debentures [Member]
Proceeds from debentures	$ 5,180,158
Financing Agreement [Member] | Victory Park Management, LLC [Member]
Value of put right for the repurchase of the Financing Warrant exercised		$ 1,500,000

ACQUISITIONS (Details)

ACQUISITIONS (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Steel Media [Member]
Business Acquisition [Line Items]
Decrease in earnout consideration liability	$ 3,744,496	$ 3,744,496

PROPERTY AND EQUIPMENT, NET (Sc

PROPERTY AND EQUIPMENT, NET (Schedule of Property and equipment) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment	$ 216,378		$ 216,378		$ 119,091
Accumulated depreciation	(77,839)		(77,839)		(63,599)
Property and equipment, net	138,539		138,539		55,492
Depreciation expense	8,058	$ 3,975	14,240	$ 17,294
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	$ 216,378		$ 216,378		$ 119,091

INTANGIBLE ASSETS (Schedule of

INTANGIBLE ASSETS (Schedule of Intangible assets) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Intangible assets	$ 2,727,911	$ 2,125,225
Accumulated amortization	(1,118,683)	(759,984)
Carrying value	1,609,228	1,365,241
Non-compete agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	781,249	1,250,000
Intellectual property [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	756,000	756,000
Acquired software - Leapfrog [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	617,069
Internally developed software [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	$ 573,593	$ 119,225

INTANGIBLE ASSETS (Narrative) (

INTANGIBLE ASSETS (Narrative) (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 17, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Capitalization of costs associated with the development of internal use software				$ 454,368
Write-off of non-compete agreement				486,750
Remainder of 2017		137,883		137,883
2,018		670,417		670,417
2,019		548,890		548,890
2,020		252,038		252,038
Estimated future amortization expense, total		1,609,228		1,609,228
Leapfrog Media Trading [Member] | Warrant [Member]
Finite-Lived Intangible Assets [Line Items]
Number of warrants issued	350,000
Warrants term	5 years
Exercise price of warrants	$ 3
Leapfrog Media Trading [Member] | Common Class A [Member]
Finite-Lived Intangible Assets [Line Items]
Number of shares exchanged in asset purchase	200,000
Intellectual property [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense		37,800	37,800	113,400	113,400
Non-compete agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense		52,083	$ 52,083	156,249	$ 156,249
Internally developed software [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense		$ 42,610		$ 89,049

ACCOUNTS PAYABLE AND ACCRUED 32

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Accounts Payable and Accrued Liabilities [Abstract]
Accounts payable, trade	$ 10,795,846	$ 11,745,026
Accrued expenses	1,286,428	260,818
Accrued compensation	116,667	319,246
Accrued commissions	235,869	830,993
Total	$ 12,434,810	$ 13,156,083

NOTES PAYABLE (Financing Agreem

NOTES PAYABLE (Financing Agreement with Victory Park Management, LLC) (Details) - USD ($)	Aug. 22, 2016	Feb. 16, 2016	Jan. 26, 2016	Oct. 26, 2015	Jul. 06, 2015	Oct. 30, 2014	Oct. 31, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Present value of put liability								$ 1,500,000		$ 1,500,000		$ 1,500,000
Amortization of debt issue costs								281,352	$ 250,100	1,047,060	$ 816,705
Repayments of note payable										3,996,928	1,763,077
PIK interest expense accrued to principal								51,323		51,323	447,738
Accrued interest on put liability								51,323		51,323
Financing Agreement [Member] | Victory Park Management, LLC [Member]
Debt Instrument [Line Items]
Interest rate (as a percent)	10.00%					10.00%
Paid-in-kind interest rate (as a percent)	4.00%					4.00%
Exercise price of warrants						$ 5
Beneficially own shares as a percentage of shares outstanding						4.99%
Percentage of revenue used as base to calculate purchase price						50.00%
Amount used as base to calculate purchase price						$ 1,500,000
Amortization of debt issue costs								0	250,100	578,140	816,705
Costs related to agreement						$ 3,164,352
Maturity date	Dec. 31, 2016	Oct. 30, 2017	Oct. 30, 2017	Oct. 30, 2017	Oct. 30, 2017
Repayments of note payable							$ 2,000,000
PIK interest expense accrued to principal								$ 0	$ 206,287	$ 0	$ 447,736
Interest rate percentage on unpaid right						14.00%
Financing Agreement [Member] | Victory Park Management, LLC [Member] | Common Class A [Member]
Debt Instrument [Line Items]
Number of shares callable by warrant						580,000
Financing Agreement [Member] | Victory Park Management, LLC [Member] | Maximum [Member]
Debt Instrument [Line Items]
Paid-in-kind interest rate (as a percent)						4.00%
Financing Agreement [Member] | Victory Park Management, LLC [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)	Dec. 31, 2016USD ($)
Notes Payable [Abstract]
Current portion of notes payable and PIK interest	$ 3,996,928
Non-current portion of notes payable
Total notes payable and PIK interest	3,996,928
Less deferred financing costs	(578,140)
Notes payable and PIK interest, net of deferred costs	$ 3,418,788

NOTES PAYABLE (Financing Agre35

NOTES PAYABLE (Financing Agreement with Fast Pay Partners, LLC) (Details) - Financing Agreement [Member] - Fast Pay Partners, LLC [Member] - USD ($)	Sep. 19, 2016	Sep. 30, 2017	Apr. 30, 2017
Debt Instrument [Line Items]
Notes issued		$ 2,100,539
Percentage of accounts receivable pledged	80.00%
Maximum amount of advances pledged	$ 8,000,000		$ 4,000,000
Concentration limitation on percentage of debt from any single customer	25.00%
Concentration limitation on percentage of debt from larger customer	50.00%
Initial term	1 year

PUT WARRANT LIABILITY (Narrativ

PUT WARRANT LIABILITY (Narrative) (Details) - USD ($)	Jan. 04, 2017	Apr. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Class of Warrant or Right [Line Items]
Rick-free interest rate		1.525%			1.50%
Expected term		3 years			2 years 9 months 29 days
Expected volatility		90.00%			86.00%
Dividend yield		0.00%			0.00%
Repurchase of warrant					$ 2,500,000
Loss on repurchase of warrant					2,053,975
Gain on change in fair value of derivative liability			432,035		1,934,663
Loss on repricing of Series A warrants					99,820
Series A Warrants [Member]
Class of Warrant or Right [Line Items]
Fair value			$ 757,477		$ 757,477
Rick-free interest rate					1.75%
Expected term					5 years
Expected volatility					109.00%
Dividend yield					0.00%
Reset exercise price of Series A Warrants resulting from sale of Debentures					$ 2.245
Series B Warrants [Member]
Class of Warrant or Right [Line Items]
Repurchase of warrant		$ 2,500,000
Loss on repurchase of warrant		$ 2,053,975
Series A Warrants Embedded Derivative [Member]
Class of Warrant or Right [Line Items]
Rick-free interest rate	2.00%
Expected term	5 years 6 months
Expected volatility	110.00%
Dividend yield	0.00%
Series B Warrants Embeded Derivative [Member]
Class of Warrant or Right [Line Items]
Rick-free interest rate	2.00%
Expected term	5 years
Expected volatility	110.00%
Dividend yield	0.00%

PUT WARRANT LIABILITY (Details)

PUT WARRANT LIABILITY (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Initial derivative liability on issuance of put warrants	$ 3,038,344		$ 3,038,344
Plus put warrant repricing adjustment			99,820
Less accretion of put warrants	419,062		(1,934,663)
Less repurchase of Series B warrants			(446,025)
Put warrant liability	$ 757,476		$ 757,476

SECURED CONVERTIBLE DEBENTURE38

SECURED CONVERTIBLE DEBENTURES, NET (Narrative) (Details) - USD ($)	Jan. 04, 2017	Dec. 29, 2016	Apr. 30, 2017	Jan. 31, 2017	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Sale of common stock			$ 4,636,629	$ 3,830,000		$ 3,820,001	$ 3,550,815
Initial derivative liability on issuance of debenture warrants					$ 1,228,484	$ 1,228,484
Risk-free interest rate			1.525%			1.50%
Expected term			3 years			2 years 9 months 29 days
Expected volatility			90.00%			86.00%
Dividend yield			0.00%			0.00%
Fair value of debenture warrants					1,615,844	$ 1,615,844
Gain on change in fair value of derivative liability debentures warrants						(387,360)
Fair value of debenture embedded derivatives			$ 1,535,239		1,535,239	1,535,239
Fair value of Debenture conversion Liability					1,936,752	1,936,752
Gain on change in fair value of derivative liability					1,246,810	$ 401,513
Chardan Capital Markets, LLC [Member]
Debt Instrument [Line Items]
Fee percentage of proceeds		4.00%
Series A Warrants [Member]
Debt Instrument [Line Items]
Exercise price of warrants	$ 2.245
Risk-free interest rate						1.75%
Expected term						5 years
Expected volatility						109.00%
Dividend yield						0.00%
Warrant [Member]
Debt Instrument [Line Items]
Proceeds used to satisfy put obligation			2,500,000
Initial derivative liability on issuance of debenture warrants			$ 1,228,484
Risk-free interest rate			1.875%			1.75%
Expected term			5 years 6 months			5 years 3 months 29 days
Expected volatility			109.00%			109.00%
Dividend yield			0.00%			0.00%
Fair value of debenture warrants					1,615,844	$ 1,615,844
Gain on change in fair value of derivative liability debentures warrants					$ 892,808	$ 387,360
Common Class A [Member]
Debt Instrument [Line Items]
Sale of common stock	$ 3,980,001
Stock issued, shares	761,905
Threshhold of ownership	9.99%
Common Class A [Member] | Chardan Capital Markets, LLC [Member]
Debt Instrument [Line Items]
Exercise price of warrants		$ 6.50
Warrants to purchase shares of common stock, number of shares of common stock		76,190
Common Class A [Member] | Series A Warrants [Member]
Debt Instrument [Line Items]
Exercise price of warrants	$ 6.70
Warrants to purchase shares of common stock, number of shares of common stock	380,953
Common Class A [Member] | Series A Warrants [Member] | Minimum [Member]
Debt Instrument [Line Items]
Exercise price of warrants	$ 1.20
Common Class A [Member] | Series B Warrants [Member]
Debt Instrument [Line Items]
Exercise price of warrants	$ 7
Warrants to purchase shares of common stock, number of shares of common stock	380,953
Common Class A [Member] | Series B Warrants [Member] | Minimum [Member]
Debt Instrument [Line Items]
Exercise price of warrants	$ 1.20
Securities Purchase Agreements [Member]
Debt Instrument [Line Items]
Debenture principal amount			$ 5,000,000
Interest rate			12.50%
Securities Purchase Agreements [Member] | Affiliate of Noble [Member]
Debt Instrument [Line Items]
Debenture principal amount			$ 720,000
Warrants to purchase shares of common stock, number of shares of common stock			120,000
Securities Purchase Agreements [Member] | Three Broker-Dealers [Member]
Debt Instrument [Line Items]
Placement agent commissions			$ 276,700
Securities Purchase Agreements [Member] | Common Class A [Member]
Debt Instrument [Line Items]
Threshhold of ownership			20.00%
Securities Purchase Agreements [Member] | Common Class A [Member] | Colorado Financial Service Corporation [Member]
Debt Instrument [Line Items]
Exercise price of warrants			$ 3.75
Warrants to purchase shares of common stock, number of shares of common stock			7,700
Exercise period of warrants			5 years 6 months
Securities Purchase Agreements [Member] | Common Class A [Member] | Noble Capital Markets [Member]
Debt Instrument [Line Items]
Exercise price of warrants			$ 3
Warrants to purchase shares of common stock, number of shares of common stock			66,800
Exercise period of warrants			6 months
Securities Purchase Agreements [Member] | Common Class A [Member] | Chardan Capital Markets, LLC [Member]
Debt Instrument [Line Items]
Exercise price of warrants			$ 3.75
Warrants to purchase shares of common stock, number of shares of common stock			100,000
Exercise period of warrants			5 years 6 months
Securities Purchase Agreements [Member] | Common Class A [Member] | Series A Warrants [Member]
Debt Instrument [Line Items]
Exercise price of warrants			$ 3
Warrants to purchase shares of common stock, number of shares of common stock			833,337
Exercise period of warrants			3 years
Premium exercise percentage during first year			120.00%
Premium exercise percentage during the remainder of the term			110.00%
Threshhold of ownership			4.99%
Securities Purchase Agreements [Member] | Common Class A [Member] | Series A Warrants [Member] | Minimum [Member]
Debt Instrument [Line Items]
Exercise price of warrants			$ 1.40
Securities Purchase Agreements [Member] | Common Class A [Member] | Series A Warrants [Member] | Maximum [Member]
Debt Instrument [Line Items]
Threshhold of ownership			9.99%
Securities Purchase Agreements [Member] | Common Class A [Member] | Series B Warrants [Member]
Debt Instrument [Line Items]
Percentage of conversion shares issuable			50.00%
Fee percentage of proceeds			20.00%
Securities Purchase Agreements, Additional Debentures [Member]
Debt Instrument [Line Items]
Debenture principal amount			$ 3,000,000

SECURED CONVERTIBLE DEBENTURE39

SECURED CONVERTIBLE DEBENTURES, NET (Schedule of Debenture Warrant liability) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Convertible Debt [Abstract]
Initial derivative liability on issuance of debenture warrants	$ 1,228,484
Less accretion of debenture warrants	387,360
Debenture warrant liability	$ 1,615,844

SECURED CONVERTIBLE DEBENTURE40

SECURED CONVERTIBLE DEBENTURES, NET (Schedule of Debenture Conversion Liability) (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Apr. 30, 2017	Dec. 31, 2016
Convertible Debt [Abstract]
Initial derivative liability for the convertible conversion	$ 1,535,239	$ 1,535,239	$ 1,535,239
Less accretion of convertible conversion liability	1,246,810	401,513
Debenture conversion liability	$ 1,936,752	$ 1,936,752

SECURED CONVERTIBLE DEBENTURE41

SECURED CONVERTIBLE DEBENTURES, NET (Schedule of Secured Convertible Debentures) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Senior convertible debentures, net	$ 2,092,798
12.5% secured convertible debentures [Member]
Debt Instrument [Line Items]
Senior convertible debentures	5,000,000
Less unamortized discount on debentures	(2,379,873)
Total	2,620,127
Less deferred financing costs	(527,329)
Senior convertible debentures, net	$ 2,092,798

STOCKHOLDERS' EQUITY (Preferred

STOCKHOLDERS' EQUITY (Preferred and Common Stock) (Details)	Jan. 04, 2017USD ($)$ / sharesshares	Jan. 04, 2017USD ($)$ / sharesshares	Jan. 02, 2017USD ($)shares	Dec. 29, 2016USD ($)$ / sharesshares	Sep. 30, 2017$ / sharesshares	Sep. 15, 2017USD ($)shares	Aug. 17, 2017shares	Apr. 30, 2017USD ($)	Mar. 31, 2017USD ($)shares	Feb. 28, 2017USD ($)shares	Jan. 31, 2017USD ($)	Nov. 30, 2016USD ($)$ / sharesshares	Oct. 31, 2016USD ($)$ / sharesshares	Sep. 30, 2017USD ($)$ / sharesshares	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)$ / sharesshares	Sep. 30, 2016USD ($)	Dec. 31, 2016$ / sharesshares	Oct. 30, 2014$ / sharesshares
Class of Stock [Line Items]
Preferred Stock, shares authorized					50,000,000									50,000,000		50,000,000		50,000,000
Preferred Stock, par value per share | $ / shares					$ 0.001									$ 0.001		$ 0.001		$ 0.001
Proceeds from the sale of stock | $								$ 4,636,629			$ 3,830,000					$ 3,820,001	$ 3,550,815
Repayments of note payable | $																$ 3,996,928	1,763,077
Stock awards forfeited during the period																3,333
Stock options forfeited during period																157,000
Stock based compensation | $																$ 947,968	610,397
Reverse stock split ratio																5
Stock award expenses | $														$ 129,166	$ 40,834	$ 398,412	250,088
Repurchase of warrant | $																2,500,000
New Board Member [Member]
Class of Stock [Line Items]
Stock issued, shares					7,813
Financing Agreement [Member] | Victory Park Management, LLC [Member]
Class of Stock [Line Items]
Exercise price of warrants | $ / shares																			$ 5
Repayments of note payable | $													$ 2,000,000
Private Placement [Member]
Class of Stock [Line Items]
Proceeds from the sale of stock | $													$ 4,625,000
Stock issued, shares													920,000
Price per share of stock sold | $ / shares													$ 5
Series B Warrants [Member]
Class of Stock [Line Items]
Repurchase of warrant | $								$ 2,500,000
Series A Warrants [Member]
Class of Stock [Line Items]
Exercise price of warrants | $ / shares	$ 2.245	$ 2.245
Stock Option [Member]
Class of Stock [Line Items]
Stock based compensation | $														$ 90,038	$ 66,588	$ 308,908	$ 181,650
Common Class A [Member]
Class of Stock [Line Items]
Common Stock, shares authorized					250,000,000									250,000,000		250,000,000		250,000,000
Common Stock, par value per share | $ / shares					$ 0.001									$ 0.001		$ 0.001		$ 0.001
Common Stock, shares outstanding					8,232,830									8,232,830		8,232,830		6,951,077
Proceeds from the sale of stock | $		$ 3,980,001
Stock issued, shares		761,905
Threshhold of ownership		9.99%
Shares issued for stock awards that have vested									51,667
Common Class A [Member] | Leapfrog Media Trading [Member]
Class of Stock [Line Items]
Number of shares exchanged in asset purchase							200,000
Common Class A [Member] | Financing Agreement [Member] | Victory Park Management, LLC [Member]
Class of Stock [Line Items]
Number of shares callable by warrants																			580,000
Common Class A [Member] | Minimum [Member]
Class of Stock [Line Items]
Share price | $ / shares	$ 10	$ 10
Common Class A [Member] | Series B Warrants [Member]
Class of Stock [Line Items]
Number of shares callable by warrants	380,953	380,953
Exercise price of warrants | $ / shares	$ 7	$ 7
Award term		5 years
Repurchase of warrant | $	$ 2,500,000
Common Class A [Member] | Series B Warrants [Member] | Minimum [Member]
Class of Stock [Line Items]
Exercise price of warrants | $ / shares	$ 1.20	$ 1.20
Share price | $ / shares	$ 5.25	$ 5.25
Common Class A [Member] | Series B Warrants [Member] | Maximum [Member]
Class of Stock [Line Items]
Cashless payment amount | $	$ 2,500,000	$ 2,500,000
Common Class A [Member] | Series A Warrants [Member]
Class of Stock [Line Items]
Number of shares callable by warrants	380,953	380,953
Exercise price of warrants | $ / shares	$ 6.70	$ 6.70
Common Class A [Member] | Series A Warrants [Member] | Private Placement [Member]
Class of Stock [Line Items]
Number of shares callable by warrants, per warrant													0.5
Exercise price of warrants | $ / shares													$ 7.50
Award term													3 years
Common Class A [Member] | Series A Warrants [Member] | Minimum [Member]
Class of Stock [Line Items]
Exercise price of warrants | $ / shares	$ 1.20	$ 1.20
Al & J Media, Inc [Member] | Common Class A [Member]
Class of Stock [Line Items]
Stock issued for services, value | $						$ 97,500
Stock issued for services, shares						75,000
Chardan Capital Markets, LLC [Member]
Class of Stock [Line Items]
Cash fee amount | $				$ 160,000
Fee percentage of proceeds				4.00%
Reimbursement amount | $				$ 15,000
Chardan Capital Markets, LLC [Member] | Common Class A [Member]
Class of Stock [Line Items]
Number of shares callable by warrants				76,190
Exercise price of warrants | $ / shares				$ 6.50
Award term				5 years 6 months
T.R. Winston & Company, LLC [Member]
Class of Stock [Line Items]
Award term													3 years
Fee percentage of proceeds													4.00%
Placement agent fees | $													$ 266,000
Stock issued for services, value | $													$ 109,956
Stock issued for services, shares													22,392
Cash Commission | $													$ 2,000
T.R. Winston & Company, LLC [Member] | Common Class A [Member]
Class of Stock [Line Items]
Number of shares callable by warrants													68,400
Exercise price of warrants | $ / shares													$ 7.50
Kathy Ireland Worldwide LLC [Member] | Common Class A [Member]
Class of Stock [Line Items]
Stock issued for services, value | $			$ 678,000
Stock issued for services, shares			100,000
Mr. Derek J. Ferguson [Member] | Common Class A [Member]
Class of Stock [Line Items]
Stock issued for services, value | $			$ 12,500
Stock issued for services, shares			3,858
Mr. Steven Antebi [Member] | Common Class A [Member]
Class of Stock [Line Items]
Number of shares callable by warrants												200,000
Stock issued for services, value | $										$ 540,000
Stock issued for services, shares										150,000
Mr. Robert Jordan [Member] | Common Class A [Member]
Class of Stock [Line Items]
Stock issued for services, value | $									$ 12,500
Stock issued for services, shares									6,510
Consultant [Member] | Common Class A [Member]
Class of Stock [Line Items]
Number of shares callable by warrants												200,000
Market Street Investor Relations, LLC [Member] | Common Class A [Member]
Class of Stock [Line Items]
Number of shares callable by warrants												400,000
Fair value of warrants at date of grant												1,390,264
Exercise price of warrants | $ / shares												$ 7.50
Placement agent fees | $												$ 100,000				$ 50,000
Stock based compensation | $																$ 275,637

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	1 Months Ended	9 Months Ended
	Aug. 25, 2017	Sep. 30, 2017	Sep. 30, 2016
Tronc, Inc. [Member]
Related Party Transaction [Line Items]
Due from related party		$ 1,042,000
Mr. Steven Antebi [Member]
Related Party Transaction [Line Items]
Services purchased from related party		$ 540,000	$ 0
Tronc, Inc. and Tribune Content Agency, LLC [Member]
Related Party Transaction [Line Items]
Damages being sought by Company in litigation matter	$ 35,000,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 25, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Gain Contingencies [Line Items]
Lease expiration period				Jan. 31, 2018
Rent expense		$ 35,000	$ 81,069	$ 177,908	$ 221,569
Future minimum lease payments, 2017		11,700		11,700
Future minimum lease payments, 2018		$ 800		$ 800
Tronc, Inc. and Tribune Content Agency, LLC [Member]
Gain Contingencies [Line Items]
Damages being sought by Company in litigation matter	$ 35,000,000

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)	Oct. 31, 2017	Oct. 17, 2017	Jan. 04, 2017	Oct. 31, 2017	Oct. 26, 2017	Oct. 17, 2017	Apr. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Subsequent Event [Line Items]
Proceeds from debentures							$ 5,000,000	$ 2,136,629
Series A Warrants [Member]
Subsequent Event [Line Items]
Exercise price of warrants			$ 2.245
Common Stock purchase warrants value								$ 757,477
Common Class A [Member]
Subsequent Event [Line Items]
Common Stock issued								8,232,830		6,951,077
Common Stock outstanding								8,232,830		6,951,077
Stock issued, shares			761,905
Common Class A [Member] | Series A Warrants [Member]
Subsequent Event [Line Items]
Exercise price of warrants			$ 6.70
Number of shares callable by warrants			380,953
Common Class A [Member] | Series A Warrants [Member] | Minimum [Member]
Subsequent Event [Line Items]
Exercise price of warrants			$ 1.20
12.5% secured convertible debentures [Member]
Subsequent Event [Line Items]
Principal amount								$ 2,620,127
Subsequent Event [Member]
Subsequent Event [Line Items]
Exercise price of warrants	$ 7.50			$ 7.50
Percentage of purchase of common stock					50.00%
Percentage of proceeds to redeem portion of principal amount of debentures					20.00%
Percentage of own in excess number of shares of common stock					4.99%
Percentage ownership limitation increased					9.99%
Proceeds from offering					$ 1,570,000
Common Stock purchase warrants value					1,500,000
Accrued interest on the amount outstanding					$ 70,000
Percentage of investor subscription fees					2.00%
Warrants expired during period	567,096
Subsequent Event [Member] | Chardan Capital [Member]
Subsequent Event [Line Items]
Cash commissions paid to placement agents					$ 149,021
Subsequent Event [Member] | Aspenwood [Member]
Subsequent Event [Line Items]
Cash commissions paid to placement agents					$ 70,000
Subsequent Event [Member] | Chief Financial Officer [Member]
Subsequent Event [Line Items]
Stock issued, shares		70,409
Subsequent Event [Member] | First year [Member]
Subsequent Event [Line Items]
Redeem percentage of debentures					120.00%
Subsequent Event [Member] | Remaining term [Member]
Subsequent Event [Line Items]
Redeem percentage of debentures					110.00%
Subsequent Event [Member] | Series A Warrants [Member] | Minimum [Member]
Subsequent Event [Line Items]
Exercise price of warrants					$ 1.40
Subsequent Event [Member] | Series A Warrants [Member] | Maximum [Member]
Subsequent Event [Line Items]
Exercise price of warrants					$ 3
Subsequent Event [Member] | PA Warrants [Member]
Subsequent Event [Line Items]
Warrants term					5 years 6 months
Warrants issued					183,337
Subsequent Event [Member] | PA Warrants [Member] | Chardan Capital [Member]
Subsequent Event [Line Items]
Warrants issued					160,000
Subsequent Event [Member] | PA Warrants [Member] | Aspenwood [Member]
Subsequent Event [Line Items]
Warrants issued					23,337
Subsequent Event [Member] | PA Warrants [Member] | Transaction One [Member]
Subsequent Event [Line Items]
Exercise price of warrants					$ 3.75
Warrants issued					129,176
Subsequent Event [Member] | PA Warrants [Member] | Transaction Two [Member]
Subsequent Event [Line Items]
Exercise price of warrants					$ 4.49
Warrants issued					54,161
Subsequent Event [Member] | Common Class A [Member] | Series A Warrants [Member]
Subsequent Event [Line Items]
Warrants term					5 years
Number of shares callable by warrants					863,365
Subsequent Event [Member] | April 2017 debenture financing [Member] | Common Class A [Member]
Subsequent Event [Line Items]
Debt conversion shares issued						218,334
Debt conversion converted amount						$ 655,000
Warrants exercised						83,334
Exercise price of warrants		$ 3				$ 3
Proceeds from warrants exercised						$ 250,002
Subsequent Event [Member] | 12.5% secured convertible debentures [Member]
Subsequent Event [Line Items]
Proceeds from debentures				$ 5,180,158
Interest rate					12.50%
Maturity date of debentures				Apr. 21, 2020
Conversion price					$ 3
Subsequent Event [Member] | A-1 Debentures [Member]
Subsequent Event [Line Items]
Proceeds from debentures					$ 2,000,000
Conversion price					$ 1.40
Percentage of conversion price					120.00%
Subsequent Event [Member] | A-1 Debentures [Member] | Series A Warrants [Member]
Subsequent Event [Line Items]
Warrants issued					333,335
Subsequent Event [Member] | A-2 Debentures [Member]
Subsequent Event [Line Items]
Proceeds from debentures					$ 3,180,158
Conversion price					$ 3
Percentage of conversion price					120.00%
Subsequent Event [Member] | A-2 Debentures [Member] | Series A Warrants [Member]
Subsequent Event [Line Items]
Warrants issued					530,030
Common Stock issued					1,590,081
Subsequent Event [Member] | Securities Purchase Agreement [Member]
Subsequent Event [Line Items]
Common Stock issued					8,605,018
Common Stock outstanding					8,605,018
Percentage of issued and outstanding shares					19.99%
Number of shares Company is authorized to issued as a percentage of issued and outstanding shares					1,720,143