SRAX (SRAX) 10-K 16 Apr 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Apr. 16, 2019	Jun. 29, 2018
Document And Entity Information
Entity Registrant Name	SOCIAL REALITY, Inc.
Entity Central Index Key	0001538217
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer	No
Is Entity a Voluntary Filer	No
Is Entity's Reporting Status Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Public Float			$ 40,406,989
Entity Common Stock, Shares Outstanding		11,714,092
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 2,784,865	$ 1,017,299	$ 1,048,762
Accounts receivable, net	1,828,940	4,348,305
Prepaid expenses	466,823	468,336
Other current assets	387,085	300,898
Total current assets	5,467,713	6,134,838
Property and equipment, net	192,065	154,546
Goodwill	15,644,957	15,644,957
Intangible assets, net	1,762,605	1,642,760
Other assets	51,153	28,598
Total assets	23,118,493	23,605,699
Current liabilities:
Accounts payable and accrued expenses	3,574,926	5,010,815
Debenture warrant liability	4,323,499	7,256,864
Leapfrog warrant liability	622,436	1,873,107
Derivative liability	496,260	2,026,031
Total current liabilities	9,017,121	16,166,817
Secured convertible debentures, net		1,524,592
Total liabilities	9,017,121	17,691,409
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock, authorized 50,000,000 shares, $0.001 par value, no shares issued or outstanding at December 31, 2018 and 2017, respectively
Common stock to be issued		879,500
Additional paid in capital	32,869,611	32,546,820
Accumulated deficit	(18,778,348)	(27,521,941)
Total stockholders' equity	14,101,372	5,914,290	$ 8,824,250
Total liabilities and stockholders' equity	23,118,493	23,605,699
Common Class A [Member]
Stockholders' equity:
Common stock	10,109	9,911
Common Class B [Member]
Stockholders' equity:
Common stock

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Preferred Stock, shares authorized	50,000,000	50,000,000
Preferred Stock, par value per share	$ 0.001	$ 0.001
Preferred Stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common Stock, shares authorized	259,000,000	259,000,000
Common Class A [Member]
Common Stock, shares authorized	250,000,000	250,000,000
Common Stock, par value per share	$ 0.001	$ 0.001
Common Stock, shares issued	10,109,530	9,910,565
Common Stock, shares outstanding	10,109,530	9,910,565
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

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Revenues	$ 9,880,608	$ 23,348,714
Cost of revenue	3,156,920	9,328,893
Gross profit	6,723,688	14,019,821
Operating expense
General, selling and administrative expense	18,442,839	17,016,789
Write-off of non-compete agreement		468,750
Restructuring costs		377,961
Total operating expense	18,442,839	17,863,500
Loss from operations	(11,719,151)	(3,843,679)
Other income (expense)
Interest income (expense)	(2,030,321)	(2,782,047)
Amortization of debt issuance costs	(1,026,220)	(1,082,829)
Total interest expense	(3,056,541)	(3,864,876)
Gain on sale of SRAXmd, net	22,108,028
Accretion of conversion feature	(3,085,822)	(925,748)
Accretion of debt discount and warrants	(1,208,524)	(263,648)
Gain (loss) on settlement	(3,240,126)
Other Income	(8,204)
Change in fair value of warrant liability	8,953,933	(4,134,166)
Total other income (expense)	20,462,744	(9,188,438)
Income (loss) before provision for income taxes	8,743,593	(13,032,117)
Provision for income taxes
Net income (loss)	$ 8,743,593	$ (13,032,117)
Net (loss) income per share, basic	$ 0.86	$ (1.58)
Net (loss) income per share, diluted	$ 0.86	$ (1.58)
Weighted average shares outstanding, basic	10,121,408	8,253,851
Weighted average shares outstanding, diluted	10,121,408	8,253,851

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Common stock to be issued [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2016		$ 6,951	$ 678,000	$ 22,529,303	$ (14,390,004)	$ 8,824,250
Balance, shares at Dec. 31, 2016		6,951,077	100,000
Sale of common stock and warrants for cash		$ 762		3,979,239		3,980,001
Sale of common stock and warrants for cash, shares		761,905
Fair value of put option				(3,038,344)		(3,038,344)
Cost of sale of common stock				(160,000)		(160,000)
Stock based compensation				444,051		444,051
Vested shares issued		$ 52		(52)
Vested shares issued, shares		51,667
Shares issued to consultant		$ 75		97,425		97,500
Shares issued to consultant, shares		75,000
Common stock issued for services		$ 300	$ (678,000)	1,197,700		520,000
Common stock issued for services, shares		300,000	(100,000)
Executive Bonus Shares		$ 20		99,980		100,000
Executive Bonus Shares, shares		20,409
Common stock issued for software asset		$ 200		279,800		280,000
Common stock issued for software asset, shares		200,000
Shares issued for services			$ 879,500			879,500
Shares issued for services, shares			150,000
Conversion of debentures		$ 1,112		3,333,888		3,335,000
Conversion of debentures, shares		1,111,670
Common stock issued to directors		$ 10		44,977		44,987
Common stock issued to directors, shares		10,368
Exercise of warrants		$ 429		1,284,975		1,285,404
Exercise of warrants, shares		428,469
October debenture BCF				1,405,540		1,405,540
Placement agent warrants				948,518		948,518
Repricing of warrants				99,800	(99,820)
Net income (loss)					(13,032,117)	(13,032,117)
Balance at Dec. 31, 2017		$ 9,911	$ 879,500	32,546,820	(27,521,941)	5,914,290
Balance, shares at Dec. 31, 2017		9,910,565	150,000
Proceeds from the sale of common stock units
Proceeds from the sale of common stock units, shares
Stock based compensation		$ 79		988,979		989,058
Stock based compensation, shares		79,534
Vested stock awards issued		$ 6		(6)
Vested stock awards issued, shares		6,667
Shares issued for services		$ 423	$ (859,500)	1,868,577		$ 1,009,500
Shares issued for services, shares		422,950	(150,000)			100,000
Conversion of debentures		$ 100		299,900		$ 300,000
Conversion of debentures, shares		100,002
Common stock issued to directors		$ 27	$ (20,000)	49,973		30,000
Common stock issued to directors, shares		26,330
Exercise of warrants		$ 78		99,922		100,000
Exercise of warrants, shares		78,149
Common stock repurchase with SRAX Md sale		$ (515)		(2,984,554)		(2,985,069)
Common stock repurchase with SRAX Md sale, shares		(514,667)
Net income (loss)					8,743,593	8,743,593
Balance at Dec. 31, 2018		$ 10,109		$ 32,869,611	$ (18,778,348)	$ 14,101,372
Balance, shares at Dec. 31, 2018		10,109,530

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net income (loss)	$ 8,743,593	$ (13,032,117)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation	1,878,611	2,085,988
Amortization of debt issuance costs	1,026,219	1,082,830
Gain on sale of SRAXmd	(22,108,028)
Gain/loss on valuation of warrant derivatives	(8,953,933)	4,134,166
Loss on settlement of debt	3,240,126
Non-cash financing costs		2,068,221
Amortization of debt discount	4,294,346	1,189,396
Write off of non-compete agreement		468,751
Digital currency assets impairment loss	31,861
Provision for bad debts	(11,611)	(195,172)
Depreciation expense	43,999	22,908
Amortization of intangibles	723,823	505,712
Changes in operating assets and liabilities:
Accounts receivable	959,848	4,261,574
Prepaid expenses	(214,968)	(135,834)
Other assets	(214,042)	(288,349)
Accounts payable and accrued expenses	(3,102,439)	(6,535,152)
Net cash used in operating activities	(13,662,595)	(4,367,078)
Cash flows from investing activities
Proceeds from sale of SRAXmd	22,980,824
Purchase of equipment	(81,518)	(121,962)
Digital currency assets	(63,000)
Development of software	(960,988)	(634,914)
Net cash provided by (used in) investing activities	21,875,318	(756,876)
Cash flows from financing activities
Proceeds from the issuance of common stock units		4,020,401
Proceeds from the issuance of common stock in conjunction with warrant exercised	100,000	1,085,004
Proceeds from secured convertible debentures, net		6,066,406
Repayments of notes payable	(6,545,157)	(3,996,928)
Payment of Financing Warrant		(1,500,000)
Debt issuance costs		(582,392)
Net cash (used in) provided by financing activities	(6,445,157)	5,092,491
Net increase / (decrease) in cash and cash equivalents	1,767,566	(31,463)
Cash and cash equivalents
Beginning of year	1,017,299	1,048,762
End of year	2,784,865	1,017,299
Supplemental schedule of cash flow information
Cash paid for interest	1,530,479	1,217,716
Cash paid for taxes
Supplemental schedule of noncash financing activities
Common stock issued for preferred stock conversion and vesting grants	150,000
Issuance of common stock to be issued	879,500
Shares issued for convertible note conversions	300,000	3,335,000
Repricing of warrants		99,820
Common stock and warrants issued for asset purchase arrangements		617,069
Debt and warrants discount on convertible debentures issuance		5,126,340
Repurchase of series B warrants and accounts payable balances directly paid by debenture holder on behalf of Company		$ 4,113,753

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Basis of Presentation Social Reality, Inc. ("Social Reality", "we", "us", “our” or the "Company") is a Delaware corporation formed on August 2, 2011. Effective January 1, 2012 we acquired 100% of the member interests and operations of Social Reality, LLC, a California limited liability company formed on August 14, 2009 which began business in May of 2010, in exchange for 2,465,753 shares of our Class A common stock. The former members of Social Reality, LLC owned 100% of our Class A common stock after the acquisition. At Social Reality, we sell digital advertising campaigns to advertising agencies and brands. We have developed technology that allows brands to launch and manage digital advertising campaigns, and we provide the platform that allows website publishers to sell their media inventory to many different digital advertising buyers. Our focus is to provide technology tools that enable both publishers and advertisers to maximize their digital advertising initiatives. We derive our revenues from: · sales of digital advertising campaigns to advertising agencies and brands; · sales of media inventory owned by our publishing partners through real-time bidding ( “ ” · sale and licensing of our SRAX Social · creation of custom platforms for buying media on SRAX The core elements of this business are: · Social Reality Ad Exchange or "SRAX" – Real Time Bidding sell side and buy side representation SRAX · SRAX Social · SRAXshopper · SRAXauto We are headquartered in Los Angeles, California. Presentation of Financial Statements – Going Concern Going Concern Evaluation In connection with preparing consolidated financial statements for the year ended December 31, 2018, management evaluated whether there were conditions and events, considered in the aggregate, that raised substantial doubt about the Company’s ability to continue as a going concern within one year from the date that the financial statements are issued. The Company considered the following: · Net Income of $8.7 million for the year-ended December 31, 2018 · Negative cash flow from operating activities for 2018 and 2017. · At December 31, 2018, the Company had an accumulated deficit of $18,778,348. · Revenue decline in 2018 of $13,468,106. Ordinarily, conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern relate to the entity’s ability to meet its obligations as they become due. The Company evaluated its ability to meet its obligations as they become due within one year from the date that the financial statements are issued by considering the following: · The Company has no debt as of December 31, 2018 · On April 10, 2019 the Company raised $6.2 million through the sale of common stock in a direct shelf offering. · The Company’s sale of the SRAXmd vertical for $33.5 million in cash consideration. · In 2018, the Company is in compliance with NASDAQ Capital Markets listing requirements. · In 2018, the Company redeemed $6.5 million of convertible debentures. · Revenue declines were largely the result of a sale of a lower margin sales the produced little to no positive cash flow benefit for the Company. The Company will take the following actions if it starts to trend unfavorably to its internal profitability and cash flow projections, in order to mitigate conditions or events that would raise substantial doubt about its ability to continue as a going concern: · Raise additional capital through short-term loans. · Implement restructuring and cost reductions. · Raise additional capital through a private placement of equity. · Secure a commercial bank line of credit. · Dispose of one or more product lines. · Sell or license intellectual property. At December 31, 2018, the Company had $2,784,865 in cash and cash equivalents. In April 2019 the Company concluded a private placement sale of its common stock for approximately $6.5 million. We believe we have sufficient working capital to pay our expenses for the next twelve months. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements include the accounts of the Company and its subsidiaries from the acquisition date of majority voting control of the subsidiary. Use of Estimates The consolidated financial statements have been prepared in conformity with generally accepted accounting principles accepted in the United States of America (“GAAP”) and requires management of the Company to make estimates and assumptions in the preparation of these consolidated financial statements that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates and assumptions. The most significant areas that require management judgment and which are susceptible to possible change in the near term include the Company's revenue recognition, allowance for doubtful accounts and sales credits, stock-based compensation, income taxes, purchase price for acquisition, goodwill, other intangible assets, put rights and valuation of other assets and 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 adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers ASC Topic 606 is a comprehensive revenue recognition model that requires revenue to be recognized when control of the promised goods or services are transferred to our customers at an amount that reflects the consideration that we expect to receive. Application of ASC Topic 606 requires us to use more judgment and make more estimates than under former guidance. Application of ASC Topic 606 requires a five-step model applicable to all product offereing revenue streams as follows: Identification of the contract, or contracts, with a customer A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance and, (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit or financial information pertaining to the customer. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. When a contract includes multiple promised goods or services, we apply judgment to determine whether the promised goods or services are capable of being distinct and are distinct within the context of the contract. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. Determination of the transaction price The transaction price is determined based on the consideration to which we will be entitled to receive in exchange for transferring goods or services to our customer. We estimate any variable consideration included in the transaction price using the expected value method that requires the use of significant estimates for discounts, cancellation periods, refunds and returns. Variable consideration is described in detail below. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative Stand-Alone Selling Price (“SSP,”) basis. We determine SSP based on the price at which the performance obligation would be sold separately. If the SSP is not observable, we estimate the SSP based on available information, including market conditions and any applicable internally approved pricing guidelines. Recognition of revenue when, or as, we satisfy a performance obligation We recognize revenue at the point in time that the related performance obligation is satisfied by transferring the promised goods or services to our customer. Principal versus Agent Considerations When another party is involved in providing goods or services to our customer, we apply the principal versus agent guidance in ASC Topic 606 to determine if we are the principal or an agent to the transaction. When we control the specified goods or services before they are transferred to our customer, we report revenue gross, as principal. If we do not control the goods or services before they are transferred to our customer, revenue is reported net of the fees paid to the other party, as agent. Our evaluation to determine if we control the goods or services within ASC Topic 606 includes the following indicators: We are primarily responsible for fulfilling the promise to provide the specified good or service. When we are primarily responsible for providing the goods and services, such as when the other party is acting on our behalf, we have indication that we are the principal to the transaction. We consider if we may terminate our relationship with the other party at any time without penalty or without permission from our customer. We have risk before the specified good or service have been transferred to a customer or after transfer of control to the customer. We may commit to obtaining the services of another party with or without an existing contract with our customer. In these situations, we have risk of loss as principal for any amount due to the other party regardless of the amount(s) we earn as revenue from our customer. The entity has discretion in establishing the price for the specified good or service. We have discretion in establishing the price our customer pays for the specified goods or services. Contract Liabilities Contract liabilities consist of customer advance payments and billings in excess of revenue recognized. We may receive payments from our customers in advance of completing our performance obligations. We record contract liabilities equal to the amount of payments received in excess of revenue recognized, including payments that are refundable if the customer cancels the contract according to the contract terms. Contract liabilities have been historically low historically recorded as current liabilities on our consolidated financial statements when the time to fulfill the performance obligations under terms of our contracts is less than one year. We have no Long-term contract liabilities which would represent the amount of payments received in excess of revenue earned, including those that are refundable, when the time to fulfill the performance obligation is greater than one year. Practical Expedients and Exemptions We have elected certain practical expedients and policy elections as permitted under ASC Topic 606 as follows: · We applied the transitional guidance to contracts that were not complete at the date of our initial application of ASC Topic 606 on January 1, 2018. · We adopted the practical expedient related to not adjusting the promised amount of consideration for the effects of a significant financing component if the period between transfer of product and customer payment is expected to be less than one year at the time of contract inception; · We made the accounting policy election to not assess promised goods or services as performance obligations if they are immaterial in the context of the contract with the customer; · We made the accounting policy election to exclude any sales and similar taxes from the transaction price; and · We adopted the practical expedient not to disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Cost of Revenue Cost of revenue consists of payments to media providers and website publishers that are directly related to a revenue-generating event and project and application design costs. The Company becomes obligated to make payments related to media providers and website publishers in the period the advertising impressions, click-throughs, actions or lead-based information are delivered or occur. Such expenses are classified as cost of revenue in the corresponding period in which the revenue is recognized in the accompanying 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 usually does not require collateral. Allowance for doubtful accounts was $48,741 and $59,703 at December 31, 2018 and 2017, 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 balances maintained at these financial institutions are generally more than the Federal Deposit Insurance Corporation insurance limits. The Company has not experienced any loss on these accounts. At December 31, 2018, two customers accounted for more than 10% of the accounts receivable balance, for a total of 75.1%. At December 31, 2017, four customers accounted for more than 10% of the accounts receivable balance, for a total of 59.5%. Fair Value of Financial Instruments The accounting standard for fair value measurements provides a framework for measuring fair value and requires disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on the Company’s principal or, in absence of a principal, most advantageous market for the specific asset or liability. The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined as follows: · Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets; · Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and · Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions. Although the Company believes that the recorded fair value of our financial instruments is appropriate, these fair values may not be indicative of net realizable value or reflective of future fair values. The Company's financial instruments, including cash and cash equivalents, net accounts receivable, accounts payable and accrued expenses, are carried at historical cost. At December 31, 2018 and 2017, the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments. The Company measures certain non-financial assets, liabilities, and equity issuances at fair value on a non-recurring basis. These non-recurring valuations include evaluating assets such as long-lived assets and goodwill for impairment; allocating value to assets in an acquired asset group; and applying accounting for business combinations. Derivative instruments are carried at fair value, generally estimated using the Black-Scholes Merton model. As of December 31, 2018 the Company included $2,723,264 of United States Treasury bills with maturities less than 90 days within cash and cash equivalents. 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 five to six years. Costs Incurred to Develop Software for Internal Use Costs incurred to develop computer software for internal use are capitalized once: (1) the preliminary project stage is completed, (2) management authorizes and commits to funding a specific software project, and (3) it is probable that the project will be completed and the software will be used to perform the function intended. Costs incurred prior to meeting the qualifications are expensed as incurred. Capitalization of costs ceases when the project is substantially complete and ready for its intended use. Post-implementation costs related to the internal use computer software, are expensed as incurred. Internal use software development costs are amortized using the straight-line method over its estimated useful life which ranges up to three years. Software development costs may become impaired in situations where development efforts are abandoned due to the viability of the planned project becoming doubtful or due to technological obsolescence of the planned software product. For the years ended December 31, 2018, and 2017 there has been no impairment associated with internal use software. For the years ended December 31, 2018, and 2017, the Company capitalized software development costs of $960,157 and $694,914 respectively. During 2016, the Company began capitalizing 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. The Company capitalizes costs incurred during the application development stage of internal-use software and amortize these costs over the estimated useful life. Upgrades and enhancements are capitalized if they result in added functionality which enable the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion, and business process reengineering costs are expensed in the period in which they are incurred. Business Combinations For all business combinations (whether partial, full or step acquisitions), the Company records 100% of all assets and liabilities of the acquired business, including goodwill, generally at their fair values; contingent consideration, if any, is recognized at its fair value on the acquisition date and, for certain arrangements, changes in fair value are recognized in earnings until settlement and acquisition-related transaction and restructuring costs are expensed rather than treated as part of the cost of the acquisition. Goodwill Goodwill is comprised of the purchase price of business combinations in excess of the fair value assigned at acquisition to the net tangible and identifiable intangible assets acquired. Goodwill is not amortized. The Company tests goodwill for impairment for its reporting units on an annual basis, or when events occur or circumstances indicate the fair value of a reporting unit is below its carrying value. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that implied fair value of the goodwill within the reporting unit is less than its carrying value. The Company performed its most recent annual goodwill impairment test as of December 31, 2018 using market data and discounted cash flow analysis. Based on this analysis, it was determined that the fair value exceeded the carrying value of its reporting units. The Company concluded the fair value of the goodwill exceed the carrying value accordingly there were no indicators of impairment for the years ended December 31, 2018 and 2017. The Company had historically performed its annual goodwill and impairment assessment on December 31 st When evaluating the potential impairment of goodwill, management first assess a range of qualitative factors, including but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company's products and services, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, and the overall financial performance for each of the Company's reporting units. If, after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then proceed to the impairment testing methodology primarily using the income approach (discounted cash flow method). We compare the carrying value of the reporting unit, including goodwill, with its fair value, as determined by its estimated discounted cash flows. If the carrying value of a reporting unit exceeds its fair value, then the amount of impairment to be recognized. When required, we arrive at our estimates of fair value using a discounted cash flow methodology which includes estimates of future cash flows to be generated by specifically identified assets, as well as selecting a discount rate to measure the present value of those anticipated cash flows. Estimating future cash flows requires significant judgment and includes making assumptions about projected growth rates, industry-specific factors, working capital requirements, weighted average cost of capital, and current and anticipated operating conditions. The use of different assumptions or estimates for future cash flows could produce different results. 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 years ended December 31, 2018 or 2017, respectively. Accounting for discontinued operations We regularly review underperforming assets (product offereings) to determine if a sale or disposal might be a better way to monetize the assets. When a product line or other asset group is considered for sale or disposal, we review the transaction to determine if or when the entity qualifies as a discontinued operation in accordance with the criteria of FASB ASC Topic 205-20 “Discontinued Operations.” The FASB has issued authoritative guidance that raises the threshold for disposals to qualify as discontinued operations. Under the this guidance, a discontinued operation is (1) a component of an entity or group of components that have been disposed of or are classified as held for sale and represent a strategic shift that has or will have a major effect on an entity's operations and financial results, or (2) an acquired business that is classified as held for sale on the acquisition date. We operate as a single reporting unit that has multiple product offerings. All our product offerings are in the same geographic market, sharing the same building, equipment, and managed by a single general manager. The product level is the lowest level for which discrete financial information related solely to revenue and related accounts recievalbe is available and the level reviewed by management to analyze operating results. Our senior management is compensated based on the results of all the product offerings as a whole, not the results of any individual product line We have determined that the sale of the SRAXmd prodcut line did not qualify for as a discontinued operation pursuant to guidance in ASC 205-20. During 2018, based on revenue results management and board decided to accept the offer for the sale of the SRAXmd product line. The Company decided to monetize the SRAXmd product line via a sale rather than continue to offer the SRAXmd product to its customers. We have retained an approximatley 30% interest in the purchaser of the SRAXmd product line, however, based on the operating agreement covering our ownerhisp we have no ongoing or further involvement in the operations of the purschaser of SRAXmd. The sale of the SRAXmd product line is not considered to be discontinued operations pursuant to the guidance in ASC 205-20. Derivatives The Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC Topic No. 480, Distinguishing Liabilities From Equity Derivatives and Hedging The Company has adopted ASU 2017-11, Earnings per share (Topic 260), provided that when determining whether certain financial instruments should be classified as liability or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. If a down round feature on the conversion option embedded in the note is triggered, the Company will evaluate whether a beneficial conversion feature exists, the Company will record the amount as a debt discount and will amortize it over the remaining term of the debt. If the down round feature in the warrants that are classified as equity is triggered, the Company will recognize the effect of the down round as a deemed dividend, which will reduce the income available to common stockholders. Warrant Liability The Company accounts for certain common stock warrants outstanding as a liability at fair value and adjusts the instruments to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company's consolidated statements of operations. The fair value of the warrants issued by the Company has been estimated using a Black-Scholes option pricing model, at each measurement date. Debt Discounts The Company accounts for debt discounts originating in connection with conversion features that remain embedded in the related notes in accordance with ASC 470-20, Debt with Conversion and Other Options Earnings Per Share We use ASC 260, " Earnings Per Share There were 4,853,085 common share equivalents at December 31, 2018 and 5,246,692 at December 31, 2017. For the year ended December 31, 2018 these potential shares were excluded from the shares used to calculate diluted. These securities were not included in the computation of diluted net earnings per share as their effect would have been antidilutive. Income Taxes We utilize ASC 740 “ Income Taxes The Company recognizes the impact of a tax position in the financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense. Stock-Based Compensation We account for our stock-based compensation under ASC 718 " Compensation – Stock Compensation 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. Common stock awards The Company grants common stock awards to non-employees in exchange for services provided. The Company measures the fair value of these awards using the fair value of the services provided or the fair value of the awards granted, whichever is more reliably measurable. The fair value measurement date of these awards is generally the date the performance of services is complete. The fair value of the awards is recognized on a straight-line basis as services are rendered. The share-based payments related to common stock awards for the settlement of services provided by non-employees is recorded in accordance with ASC 505-50 on the consolidated statement of comprehensive loss in the same manner and charged to the same account as if such settlements had been made in cash. Warrants In connection with certain financing, consulting and collaboration arrangements, the Company has issued warrants to purchase shares of its common stock. The outstanding warrants are standalone instruments that are not puttable or mandatorily redeemable by the holder and are classified as equity awards. The Company measures the fair value of the awards using the Black-Scholes option pricing model as of the measurement date. Warrants issued in conjunction with the issuance of common stock are initially recorded at fair value as a reduction in additional paid-in capital of the common stock issued. All other warrants are recorded at fair value as expense over the requisite service period or at the date of issuance, if there is not a service period. Warrants granted in connection with ongoing arrangements are more fully described in Note 4, Stockholders’ Equity . Registration Rights The Company accounts for registration rights agreements in accordance with the Accounting Standards Codification subtopic 825-20, Registration Payment Arraignments ("ASC 825-20"). Under ASC 825-20, the Company is required to disclose the nature and terms of the arraignment, the maximum potential amount and to assess each reporting period the probable liability under these arraignments and, if exists, to record or adjust the liability to current period operations. On November 29, 2018, the Company invoked the early r

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS AND DIVESTITURES	12 Months Ended
	Dec. 31, 2018
Business Combinations [Abstract]
ACQUISITIONS AND DIVESTITURES	NOTE 2 – ACQUISITIONS AND DIVESTITURES Sale of SRAXmd: On August 6, 2018, we completed the sale of substantially all of the assets related to our SRAXmd product line for aggregate consideration of up to $52,500,000. The purchase price consists of (i) $33,000,000 in cash, (ii) 30% interest in the purchaser of SRAXmd assets and (iii) an earn-out of up to $9,000,000 upon the SRAXmd product line achieving certain gross profit thresholds (the “Earn-Out”). A total of $762,500 of the purchase price was placed into escrow accounts subject to future release. Given the Company will retain an ongoing equity interest in the purchaser of SRAXmd, the Company evaluated the potential existence of variable interest entity accounting treatment under ASC 810. Given the Company had no input into the design of the purchasing entity, is not a primary beneficiary of the purchaser entity and has no ongoing role in management or governance other than that of a passive, minority investor, the Company determined that the presence of a variable interest entity was not present. Assets transferred to the purchaser in the transaction included $3,536,503 of accounts receivable and $216,479 of prepaid expense items. The purchaser also assumed $191,164 of accounts payable obligations and $333,014 of additional accrued expense items. The Company received a credit to the purchase price of $196,055 for over-delivery of working capital beyond a contractual $3 million working capital target. The Company has recorded a zero value for the interest retained in the purchaser of SRAXmd assets. The Company paid $1,709,500 of advisory fees and $351,089 of legal fees at closing. An additional $164,028 was also paid by the Company at closing for insurance premiums and escrow related fees. During the fourth quarter of 2018, the Company recognized an additional $1,870,361 in costs associated with the transaction. The Company recorded a gain on sale of assets totaling $22,108,028. Less escrow holdbacks and other reimbursements, the Company received net proceeds from the transaction totaling $22,980,824. Below are the major components of the gain we recorded on the sale of the SRAX md assets: GAIN ON SALE OF SRAXmd: Cash Proceeds $ 32,966,303 Fair Value of Interest Retained — Carrying amount of Assets Sold Fixed Assets (117,000 ) Working Capital (3,228,803 ) Transactions Fees & Sales Commissions (7,512,472 ) Gain on Sale $ 22,108,028 Components of operating results for the SRAXmd product group have not been classified as discontinued operations. Pursuant to guidance in ASC 205-20, Discontinued Operations, we noted that the SRAXmd product line was not a reportable segment or a separate operating segment and nor was it deemed to be a strategic shift. Under this guidance, an entity presents a disposal as a discontinued operation if it “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.” ASC Topic 205-20-45 does not clearly define on a quantitative basis as to how an entity would establish whether a component, business activity is individually significant. Additionally, the sale of the SRAXmd product line did not qualify under ASC Topic 360-10-35 to 45 for determination of the gain or loss. The sale of the SRAXmd product group does not constitute a shift in our corporate strategy or purpose as we continue to operate a diversified product group of digital advertising tools, as we have done since inception in 2010. The core technology and other key elements of the SRAX advertising platform will remain owned by us, with certain license agreements for use of our software granted to the purchaser as part of the transaction. SRAXmd was a product developed from our core technology. In addition to the assets, 12 of our existing employees also transferred. The Company have not assigned any goodwill upon disposal of a SRAXmd. SRAXmd, like each of the remaining SRAX product groups/offerings, has not historically operated as a discrete business entity or division within our company. As such, it along with the other product groups rely upon shared employees and a shared technology platform to operate. Furthermore, certain advertisers may also purchase advertising across multiple product lines, making individual product financial statements more difficult to segregate. Due to its in-house organic development, SRAXmd also has no separately capitalized assets that may be presented as held for sale on our balance sheet. Based on management’s best estimates, for the three and twelve month periods ended December 31, 2018 and 2017, the unaudited results for revenue and cost of sales attributable to the SRAXmd product group are estimated below: Three Months ended Full Year December 31, December 31, 2018 2017 2018 2017 Revenue $ — $ 4,603,366 $ 6,306,613 $ 11,077,503 Cost of Sales $ — $ 1,082,389 $ 1,101,080 $ 1,998,395 Gross Profit $ 0 $ 3,520,977 $ 5,205,533 $ 9,079,108 Gross Margin 0.00 % 76.49 % 82.54 % 81.96 % General, Sales & Administrative expense $ — $ 1,438,957 $ 2,896,193 $ 2,028,407 Operating Income $ — $ 2,082,020 $ 2,309,340 $ 7,050,702 There is no specific depreciation and amortization, or interest expense specifically attributable to the SRAXmd product line.

NOTES PAYABLE

NOTES PAYABLE	12 Months Ended
	Dec. 31, 2018
Notes Payable [Abstract]
NOTES PAYABLE	NOTE 3 – NOTES PAYABLE Financing Agreement with Victory Park Management, LLC as agent for the lenders On October 30, 2014, the Company entered a 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 initial and subsequent notes issued 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 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 transaction documents, the PIK interest rate declined on a sliding scale from 4% to 2%. The notes issued under the transaction documents were scheduled to mature on October 30, 2017. During the twelve months ended December 31, 2017, we completely repaid the notes and made principal and PIK interest repayments in the amount of $3,996,928. We incurred a total of $3,178,011 of costs related to the transaction. These costs were amortized to interest expense over the life of the debt. During the twelve months ended December 31, 2017 $2,101,377 of debt issuance costs were amortized as interest expense. As of December 31, 2017, all deferred debt issuance costs have been completely amortized. During the twelve months ended December 31, 2017 $67,612 were recorded as PIK interest expense. Pursuant to the transaction documents, 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. Pursuant to the warrant, the warrant holder had the right, at any time after the earlier of April 30, 2016 and the maturity date, but prior to October 30, 2019, to exercise its put right under the terms of the 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 warrant that had not been previously exercised. In connection with any exercise of this put right, the purchase price was equal to an amount based upon the percentage of the 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. On October 27, 2017, the Company paid the warrant holder $1,567,612, which was comprised of the $1,500,000 warrant value and an additional $67,612 of accrued interest. Financing and Security Agreement with FastPay In September 2016, we executed a Financing and Security Agreement, as amended (collectively, the "FastPay Agreement"). with FastPay Partners, LLC to create an accounts receivable-based credit facility. The FastPay Agreement was further amended in April 2018. Under the April 2018 amended terms of the FastPay Agreement, FastPay may, at its sole discretion, purchase our eligible accounts receivable. Upon any acquisition of accounts receivable, FastPay will advance us up to 80% of the gross value of the purchased accounts, up to a maximum of $4,000,000 in advances. 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. We are 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 an increase to 30% for one specific large customer. We are obligated to repurchase accounts remaining uncollected after a specified deadline, and FastPay will generally have full recourse against us in the event of nonpayment of any purchased accounts. Our 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. We are 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 our obligations. The FastPay Agreement contains provisions relating to events of default that are customary for agreements of this type. The current FastPay Agreement has a term of 18 months and automatically renews thereafter for successive one-year terms, subject to earlier termination by written notice by the Company, provided all obligations are paid, including the payment of an early termination fee. At December 31, 2018 $106,920 of accounts receivable purchased by FastPay remain outstanding and are subject to repurchase under the terms of the FastPay Agreement. The Series A 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 Series A 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 Series A warrants we will be subject to certain buy-in provisions. The debentures and Series A warrants, also contain certain beneficial ownership limitations. Chardan Capital Markets, LLC, Noble Capital Markets, Inc. and Aspenwood Capital (an independent branch of Colorado Financial Services Corporation), all broker-dealers and members of FINRA, acted as either our placement agent or a finder in connection with the sale of the securities. In addition, an affiliate of Noble purchased Debentures amounting to $720,000 and was issued a Series A warrant to purchase 120,000 shares of our Class A common stock in this offering. We paid aggregate cash commissions of $276,700 in connection with the sale of the securities. Additionally, we issued 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 nine months from the issuance date. We issued 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 nine months from the date of issuance. We also issued Colorado Financial Service Corporation and its designees 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 nine months from the issuance date. We included the shares underlying the placement agent warrants in a resale registration statement that was declared effective by the SEC in September 2017. The net proceeds to us from the offering, after deducting placement agent fees and estimated offering expenses, were approximately $4,566,405. We utilized $2,500,000 of the net proceeds to satisfy a put obligation under the Series B Warrants from our January 2017 offering. The balance of the net proceeds was used to pay down accounts payable and satisfy other working capital requirements. On October 26, 2017, we sold an aggregate of: (i) $5,180,157 in principal amount of 12.5% secured convertible debentures; and (ii) five year Series A common stock purchase warrants representing the right to acquire up to 863,365 shares of our Class A common stock. During the three months ended December 31, 2018, we completed redeemed the convertible debentures through repayment of $6,545,157 in principal, $764,089.53 in interest and prepayment penalties, and 1,090,862 Series B warrants. The Warrants have an initial exercise price of $3.00 per share (subject to adjustment pursuant to the terms therein). Of the Warrants: (i) 277,500 expire on April 21, 2022, and (ii) 813,362 expire on October 27, 2022. Chardan Capital Markets, LLC acted as lead placement agent and Aspenwood Capital acted as co-placement agent, in connection with the sale of the securities. Pursuant to their respective engagement agreements On November 29, 2018, the Company invoked the early redemption clause in certain of its convertible notes payable pursuant to which the Company redeemed early these convertible notes payable by cash and issuing warrant to purchase shares of common stock (the "Redemption Penalty Warrants"). In connection with the early retirement of these notes payable, the warrants issued to these investors included a registration rights agreement clauses, pursuant to which the Company agreed to provide certain registration rights with respect to the warrants issued. The registration rights agreements require the Company to file a registration statement within 90 calendar days from the final closing under the retirement transaction and to be effective 60 calendar days thereafter. The final closing under the retirement transaction of the debentures occurred on November 29, 2018. On February 11, 2019, the Company filed the required registration statement, as of this filing, it has yet to be declared effective. If the registration statement is not declared effective, the Company is subject to a 2% penalty of investors subscription amount. The Company has estimated the liability under the registration rights agreement at $0 as of December 31, 2018.

SECURED CONVERTIBLE DEBENTURES,

SECURED CONVERTIBLE DEBENTURES, NET	12 Months Ended
	Dec. 31, 2018
Convertible Debt [Abstract]
SECURED CONVERTIBLE DEBENTURES, NET	NOTE 4 – SECURED CONVERTIBLE DEBENTURES, NET In April 2017, the Company entered into definitive securities purchase agreements (the “Series A1 Securities Purchase Agreements”) with certain accredited investors (the “A1 Purchasers”) for the purchase and sale of an aggregate of : (i) $5,000,000 principal amount of 12.5% secured convertible debentures (the “Series A1 Debentures”); and (ii) five-year warrants (the “Series A1 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 Series A1 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 Series A1 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 A1 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 Series A1 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 Series A1 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 Series A1 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 Series A1 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 Series A1 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 Series A1 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 Series A1 Warrants are exercisable on a cashless basis. The conversion price of the Debentures and the exercise price of the Series A1 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 Series A1 Debentures or exercise of the Series A1 Warrants we will be subject to certain buy-in provisions. Pursuant to the terms of the Series A1 Debentures and Series A1 Warrants, a holder will not have the right to convert any portion of the Series A1 Debentures or exercise any portion of the Series A1 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 Series A1 Debentures and the Series A1 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 Series A1 Debentures and/or exercise of the Series A1 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 Series A1 Debentures and the Series A1 Warrants. Under the terms of the Securities Purchaser Agreements, we also granted the Purchasers of the Series A1Debentures the right to purchase an additional $3,000,000 of Series A1 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 Series A1 Debentures and Series 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 Series A1 Debentures amounting to $720,000 and was issued Series A1 Warrants (“Placement Agent 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 Series A1 Debentures. Additionally, we issued Chardan Capital 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 5.0 years commencing six months from the issuance date. We issued 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 Placement Agent 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 5.0 years commencing six months from the issuance date. We included the shares underlying the Placement Agent 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 Series A1 Warrants have been accounted for utilizing ASC 815 “Derivatives and Hedging”. The Company accounted for the Series A1 Debentures in accordance with ASC 470-20 Debt with Conversion and other options. The net proceeds of $4,639,629 from the issuance of the Series A1 Debentures was allocated between the Series A1 Debentures and the fair value of the Series A1 Warrants. The values allocated to the Series A1 Debentures and Series A1Warrant was $3,408,629 and $1,288,000 respectively. After the allocation between the Series A1 Debentures and Series A1 Warrants, the effective conversion feature was greater than the fair market value of the Company’s common stock on the date of issuance, so the adjusted proceeds were not allocated to the conversion feature. In October 2017, we entered into securities purchase agreements to sell an aggregate of $5,180,157.78 of our 12.5% secured convertible debentures (“Series A2 Debentures”) and issued 863,365 Series A2 Warrants. The Series A2 Debentures mature on 4/21/2020, bear interest at an annual rate of 12.5%, payable quarterly on January 1, April 1, July 1, and October 1, beginning on January 1, 2018. Pursuant to the greenshoe provision contained in our Series A1 Debentures, $2,000,000 of Series A2 Debentures were purchased pursuant to the greenshoe provision and the remaining $3,180,157.78 were purchased separately. Of the 863,365 Series A2 Warrants issued, a total of 333,335 were purchased pursuant to the greenshoe provision and 630,030 were purchased separately. The Series A2 Debentures are convertible into shares of our Class A common stock at $3.00 per share, subject to adjustment, and contain anti-dilution protection for subsequent financings and have a conversion price floor of $1.40 per share (pursuant to shareholder vote approving the offering that occurred on December 29, 2017). The Series A2 Warrants have an exercise price of $3.00 per share, subject to adjustment and contain anti-dilution protection for subsequent financings and have an exercise price floor of $1.40 per share. In connection with the offering we issued Chardan Capital Markets 160,000 Placement Agent Warrants, of which: (i) 129,176 have an exercise price of $3.75 and (ii) 54,161 have an exercise price of $4.49. We also issued Aspenwood Capital 23,337 Placement Agent Warrants with an exercise price of $3.75. All Placement Agent Warrants have a term of five and a half years (exercisable beginning 6 months after issuance). The Company identified embedded derivatives related to the Series A2 Warrants issued. These embedded derivatives included the right for the holders to request for the Company to purchase the Series A2 Warrant from the Holder by paying to the Holder an amount of cash equal to the black scholes value of the remaining unexercised portion of the Series A2 Warrant on the date of the consummation of a fundamental transaction. The Series A2 Warrants have been accounted for utilizing ASC 815 “Derivatives and Hedging”. The Company accounted for the Series A2 Debentures in accordance with ASC 470-20 Debt with Conversion and other options. The net proceeds of $4,261,684 from the issuance of the Series A2 Debentures was allocated between the Series A2 Debentures and the fair value of the Series A2 Warrants. The values allocated to the Series A2 Debentures and Series A2Warrant was $1,405,540 and $2,856,108 respectively. After the allocation between the Series A2 Debentures and the Series A2 Warrants, the adjusted value assigned to Series A2 Debenture created the effected conversion feature to be a rate lower than the current market price for the Company’s common stock on the date of the issuance. The value assigned to the conversion feature was $1,405,540. On November 29, 2018, the Company redeemed the outstanding principal balance of the Series A1 and A2 Debentures (collectively the “Debentures”) with the repayment of the Debentures face value or $6,545,157, a 10% prepayment penalty of $654,517 and the issuance of Series B warrants for a total of 50% of the of the 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.. Also, the Company issued warrants to purchase 1,090,862 shares of its Class A common stock (“Series B1 Warrants”). The Series B1 Warrants were issued pursuant to the redemption terms of the Company’s Debentures. The Company received no additional consideration for the issuance. The Series B Warrants were issued 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 Series B1 warrants have a term of five (5) years from the date in which each of the redeemed Debenture were issued. Accordingly, of the Series B Warrants: (i) 277,500 have an expiration date of April 21, 2022, and (ii) 813,362 have an expiration date of October 27, 2022. The Series B1 Warrants are initially exercisable at $3.00 per share and, are subject to cashless exercise after six (6) months from the issuance date if the shares underlying the warrants are not subject to an effective registration statement. The Series B 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. The exercise price of the Series B1 Warrants is subject to adjustment upon certain events, including stock splits, stock dividends, subsequent equity transactions (other than specified exempt issuances), subsequent rights offerings, and fundamental transactions, subject to the $1.40 floor described above. If we fail to timely deliver the shares of our Class A common stock (“Common Stock”) upon any exercise of the Series B Warrants, we will be subject to certain buy-in provisions. Additionally, the Series B Warrants contained certain beneficial ownership limitations. The Company identified embedded derivatives related to the Series B Warrants issued. These embedded derivatives included the right for the holders to request for the Company to purchase the Series B Warrant from the Holder by paying to the Holder an amount of cash equal to the black scholes value of the remaining unexercised portion of the Series A2 Warrant on the date of the consummation of a fundamental transaction. The Series B1 Warrants have been accounted for utilizing ASC 815 “Derivatives and Hedging”. The secured convertible debentures are comprised of the following at December 31: 2018 2017 Principal Balance $ — $ 6,845,157 Debt discount — (4,107,792 ) Debt issuance costs — (1,026,219 ) Convertible notes, net $ — $ 1,711,146

WARRANT LIABILITIES

WARRANT LIABILITIES	12 Months Ended
	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
WARRANT LIABILITIES	NOTE 5 – WARRANT LIABILITIES As more fully described in Notes 4 and 6, the Company issued Series A and B Warrants, Series A1 and A2 Debenture Warrants and Series B1 Warrants (collectively the “Derivative Warrant Instruments”). The Derivative Warrant Instruments have been accounted for utilizing ASC 815 “Derivatives and Hedging”. The Company identified embedded features in the warrants which caused the warrants to be classified as a liability. These embedded features included the right for the holders to request for the Company to cash settle the Warrant Instruments from the Holder by paying to the Holder an amount of cash equal to the black scholes value of the remaining unexercised portion of the Derivative Warrant Instruments on the date of the consummation of a fundamental transaction. The accounting treatment of derivative financial instruments requires that the Company treat the whole instrument as liability and record the fair value of the instrument as a derivatives as of the inception date of the instrument and to adjust the fair value of the instrument as of each subsequent balance sheet dates. On the date of inception, the fair value of the Series A and B Warrants of $3,038,344 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. The Series A Warrants fair value as of December 31, 2018 and 2017 was estimated to be $496,000 and $2,026,000, respectively, based on a risk-free interest rates of 2.46 and 2.20, respectively, an expected term of 3 and 4 years, respectively, an expected volatility of 167% and 164%, respectively and a 0% dividend yield. On January 4, 2017, the date of inception, the fair value of the Series A and B Warrants of $3,038,344 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. At the inception of the Series A1 Warrants, the Company determined a fair value of $1,228,000 of the Series A1 Warrants. On April 21 and April 28, 2017, the dates of inception, the fair value of the Series A1 Warrants 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 December 31, 2018 and 2017 of the Series A1 Warrants was estimated to be $868,000 and $2,641,000, respectively based on a risk-free interest rate ranging from 2.73 to 2.73, an expected term ranging from 3.375 to 4.375 years, an expected volatility ranging from 164% to 167% and a 0% dividend yield. During the years ended December 31, 2018 and 2017, we recorded a decrease and increase, respectively, in the fair value of the warrant derivative liability of $(1,774,000) and $1,419,000, respectively. This was recorded as a loss on change in fair value of derivative liability. At the inception of the Series A2 Warrants, the Company determined a fair value of $2,856,000 of the Series A2 Warrants. On the date of inception, the fair value of the Series A2 Warrants was determined using the Black-Scholes Model based on a risk-free interest rate of 2.03%, an expected term of 5.5 years, an expected volatility of 122% and a 0% dividend yield. Fair value at December 31, 2018 and 2017 of the Series A2 Warrants was estimated to be $1,446,000 and $4,615,000, respectively based on a risk-free interest rate ranging from 2.20 to 2.46, an expected term ranging from 3.875 to 4.875 years, an expected volatility ranging from 158% to 161% and a 0% dividend yield. During the years ended December 31, 2018 and 2017, we recorded the decrease and increase, respectively, in the fair value of the warrant derivative liability of $(3,170,000) and $1,759,000, respectively. This was recorded as a loss on change in fair value of derivative liability. At the inception of the Series B1 Warrant, the Company determined a fair value of $3,240,000 of the Series B1 Warrants. On the date of inception, the fair value of the Series B1 was determined using the Black-Scholes Model based on a risk-free interest rate of 2.9%, an expected term of 5.0 years, an expected volatility of 162% and a 0% dividend yield. Fair value at December 31, 2018 of the Series B Warrants was estimated to be $1,201,000 based on a risk-free interest rate of 2.5, an expected term of 3.92, an expected volatility of 155% and a 0% dividend yield. During the years ended December 31, 2018, we recorded a decrease, in the fair value of the warrant derivative liability of $1,529,771. This was recorded as a loss on change in fair value of derivative liability. The Warrant liabilities are comprised of the following at December 31: 2018 2017 Outstanding, beginning of the period $ 11,156,003 $ — Initial derivative liability on issuance of warrants 3,240,127 7,453,615 Change in fair value (8,953,933 ) 4,134,166 Less accretion and conversion of debenture warrants — (431,780 ) Warrant liabilities $ 5,442,195 $ 11,156,001

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2018
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	NOTE 6 – STOCKHOLDERS' EQUITY Preferred Stock We are authorized to issue 50,000,000 of preferred stock, par value $0.001, of which 200,000 shares were designated as Series 1 Preferred Stock. Our board of directors, without further stockholder approval, may issue preferred stock in one or more series from time to time and fix or alter the designations, relative rights, priorities, preferences, qualifications, limitations and restrictions of the shares of each series. The rights, preferences, limitations and restrictions of different series of preferred stock may differ with respect to dividend rates, amounts payable on liquidation, voting rights, conversion rights, redemption provisions, sinking fund provisions and other matters. Our board of directors may authorize the issuance of preferred stock, which ranks senior to our common stock for the payment of dividends and the distribution of assets on liquidation. In addition, our board of directors can fix limitations and restrictions, if any, upon the payment of dividends on both classes of our common stock to be effective while any shares of preferred stock are outstanding. Common Stock We are authorized to issue an aggregate of 259,000,000 shares of common stock. Our certificate of incorporation provides that we will have two classes of common stock: Class A common stock (authorized 250,000,000 shares, par value $0.001), which has one vote per share, and Class B common stock (authorized 9,000,000 shares, par value $0.001), which has ten votes per share. Any holder of Class B common stock may convert his or her shares at any time into shares of Class A common stock on a share-for-share basis. Otherwise the rights of the two classes of common stock are identical. There were no shares of Class B common stock outstanding at December 31, 2018 or 2017, respectively. On January 4, 2017, we sold an aggregate of: (i) 761,905 shares of Class A common stock; and (ii) five-year 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 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. 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 in April 2017, 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 an engagement letter dated December 29, 2016 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 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. The warrants have an exercise price of $6.50 per share and are exercisable for 5.5 years commencing nine months from the issuance date. The shares underlying the warrants were included in a resale registration statement that was declared effective by the SEC in September 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 prior to May 20, 2017. Victory Park Management, LLC exercised the put right on May 22, 2017. 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 January 2017, 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. 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. On September 15, 2017, the Company entered an Investor Relations and Consulting Agreement. The Company engaged the consultant to provide certain consulting services on behalf of the Company. Under the terms of this agreement, which expired on December 15, 2017, the Company engaged consultant 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 issued consultant 75,000 shares of its Class A common stock, valued at $97,500, on September 15, 2017. Between September 2017 and January 2018, we issued an aggregate of 225,000 shares of Class A common stock valued at $1,137,650 as consideration for media and marketing services. In October 2017, we issued 70,409 shares of our Class A common stock to Joseph P. Hannan, our former chief financial officer, pursuant to his October 2017 employment agreement. The shares were issued pursuant to our 2016 equity compensation plan. In October 2017, we entered into securities purchase agreements to sell an aggregate of $5,180,158 of our 12.5% secured convertible debentures and issued 863,365 Series A common stock purchase warrants. The debentures are convertible into shares of our Class A common stock at $3.00 per share, subject to adjustment, and contain anti-dilution protection for subsequent financings and have a conversion price floor of $1.40 per share (pursuant to shareholder vote approving the offering that occurred on December 29, 2017). The warrants have an exercise price of $3.00 per share, subject to adjustment and contain anti-dilution protection for subsequent financings and have an exercise price floor of $1.40 per share. In connection with the offering we issued Chardan Capital Markets 160,000 placement agent warrants, of which: (i) 129,176 have an exercise price of $3.75 and (ii) 54,161 have an exercise price of $4.49 (. We also issued Aspenwood Capital 23,337 placement agent warrants with an exercise price of $3.75. All placement agent warrants have a term of five and a half years (exercisable beginning 6 months after issuance). In October 2017, certain debenture holders converted an aggregate of $655,000 of debentures into 218,334 shares of Class A common stock. In October 2017, 83,334 Series A common stock purchase warrants were exercised at a price of $3.00 per share, resulting in gross proceeds to the Company of $250,002. In January 2018, we issued Colleen DiClaudio, a board member, 7,813 Class A common shares valued at $10,000 as payment for 2017 services on our board of directors. The shares were issued from our 2016 equity compensation plan. In January 2018, we issued Hardy Thomas, a former board member, 7,195 Class A common shares valued at $10,000 as payment for 2017 services on our board of directors. The shares were issued from our 2016 equity compensation plan. In January 2018, we issued Marc Savas and Malcolm CasSelle each 3,774 Class A common shares valued at $10,000 as payment for their respective 2017 service on our board of directors. The shares were issued from our 2016 equity compensation plan. In January 2018, we issued a consultant an additional 150,000 shares for media consulting services. In August 2018, we issued the consultant an additional 150,000 shares pursuant to this same agreement. In March 2018, we issued 6,667 shares of Class A common stock to one employee for vested stock awards. In March 2018, 122,950 shares of Class A common stock were awarded to one employee for sales performance achievement pursuant to our 2016 equity compensation plan. In July 2018, 16,667 Series A common stock purchase warrants were exercised at a price of $3.00 per share, resulting in gross proceeds to the Company of $50,000. In August 2018, we issued William Packer 3,774 shares of Class A common shares valued at $10,000 as payment for 2017 services on our board of directors. The shares were issued from our 2016 equity compensation plan. In June 2018, we issued 44,815 Series A common stock purchase warrants at an exercise price of $2.245 per share, on a cashless basis. In September 2018, one investor in the Company’s October 2017 debenture financing exercised 16,667 Series A common stock purchase warrants were exercised at a price of $3.00 per share, resulting in gross proceeds to the Company of $50,000. In September 2018, we issued 100,000 shares of our Class A common stock for legal services rendered. In September 2018, we issued 50,000 shares of our Class A common stock to Joseph P. Hannan, our former chief financial officer, pursuant to his October 2017 employment agreement. The shares were issued pursuant to our 2016 equity compensation plan, and subject to vesting at issue. In September 2018, we issued 3,334 shares of Class A common stock to one employee for vested stock awards. During September 30, 2018, certain debenture holders converted an aggregate of $300,000 in principal into 100,000 shares of the Company’s Class A common stock. On August 6, 2018, we repurchased 514,000 shares of our Class A common stock from Erin DeRuggiero as contracted under the terms of her separation agreement with the Company. In October 2018, 50,000 shares of our Class A common stock were retired in lieu of cash tax withholding from a vesting on shares previously issued to Joseph P. Hannan, our former chief financial officer. In October 2018, 23,800 shares of our Class A common stock were retired in lieu of cash tax withholding from a vesting on shares previously issued to Joseph P. Hannan, our former chief financial officer. Stock Awards During the years ended December 31, 2018 and December 31, 2017, respectively, there were no new grants of restricted stock awards made nor were any previously issued grants forfeited. Stock Options and Warrants During the years ended December 31, 2018 and December 31, 2017, respectively, there were no new grants of restricted stock awards made nor were any previously issued grants forfeited. Stock Options and Warrants In October 2016, we granted an aggregate of 146,000 stock options to three employees. The options will vest over three years. The options have an exercise price of $7.50 per share and a term of five years. These options had a grant date fair value of $4.98 per option, determined using the Black-Scholes method based on the following assumptions: (1) risk free interest rate of 1.125%; (2) dividend yield of 0%; (3) volatility factor of the expected market price of our common stock of 112%; and (4) an expected life of the options of 5 years. During the years ended December 31, 2018 and 2017, we recorded compensation expense of $667,749 and $992,732, respectively, related to stock based compensation. During the years ended December 31, 2018 and 2017, 72,498 and 161,500 options were forfeited, respectively. On September 19, 2016, the Company extended the expiration date of common stock purchase warrants issued and sold in 2013 to purchase an aggregate of 642,000 shares of its Class A common stock at an exercise price of $5.00 per share from between October 8, 2016 and November 6, 2016 to March 31, 2017, for which, the Company applied ASC 718-20-35-3 modification of equity-classified contracts and therefore the incremental fair value from the modification (the change in the fair value of the instrument before and after the modification) of $274,634 is recognized as an expense in the consolidated statements of operations to the extent the modified instrument has a higher fair value. On November 16, 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 is recognizing the value of the services rendered over the term of the Consulting Agreement. During the years ended December 31, 2018 and December 31, 2017, respectively, an aggregate of 226,402 and 1,223,874 common stock purchase warrants, having exercise prices of between $5.00 and $10.00, per share, expired. On January 24, 2018, 176,400 common stock purchase warrants, having exercise prices of $7.50, per share, expired. On September 11, 2018, 250,000 common stock purchase warrants, having an exercise price of $4.20 per share with an option value as of the grant date of $488,106 calculated using the black-scholes option pricing model were granted to Joseph P. Hannan, our former chief financial officer. The options vested one third annually and expire three years after the vesting date. Upon Mr. Hannan’s termination in December of 2018, 229,166 option terminated. On December 16, 2018, 100,000 common stock purchase warrants, having an exercise price of $2.56 per share with an option value as of the grant date of $220,832 calculated using the black-scholes option pricing model were granted to Michael Malone, our chief financial officer. This expense associated with this option award will be recognized in operating expenses ratably over the vesting period.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 7 – PROPERTY AND EQUIPMENT Property and equipment consists of the following at December 31: 2018 2017 Office equipment $ 332,932 251,415 Accumulated depreciation (140,867 ) (96,869 ) Property and equipment, net $ 192,065 154,546 Depreciation expense for the years ended December 31, 2018 and 2017 was $43,998 and $22,908, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 8 – INTANGIBLE ASSETS Intangible assets consist of the following at December 31: 2018 2017 Non-compete agreement $ 1,250,000 $ 1,250,000 Intellectual property 756,000 756,000 Acquired Software 617,069 617,069 Internally developed software 1,563,401 754,140 Total cost 4,186,170 3,377,209 Accumulated amortization (2,423,865 ) (1,734,449 ) Intangible assets, net $ 1,762,605 $ 1,642,760 Amortization expense was $51,422 for intellectual property, $121,527 for the non-compete agreement and $365,266 for internally developed software and 151,200 acquired software for the year ended December 31, 2018. Amortization expense was $151,200 for intellectual property, $677,083 for the non-compete agreement, and $146,181 for internally developed software for the year ended December 31, 2017. The estimated future amortization expense for the years ended December 31, are as follows: 2019 $ 858,041 2020 737,648 2021 166,916 $ 1,762,605

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 9 – RELATED PARTY TRANSACTIONS Malcolm CasSelle, a member of our board of directors, is the former Chief Technology Officer and President of New Ventures of Tronc, Inc., one of our major advertisers. On March 20, 2018, we entered into certain retention and bonus agreements with SRAXMD employees, including Erin DeRuggiero, our chief innovations officer. Pursuant to the terms of the agreements with Ms. DeRuggiero, her employment agreement was terminated, and she became a consultant to the Company. The term of the consultancy expired upon the sale of the assets comprising SRAXmd. Pursuant to the terms of the agreement, we paid Ms. DeRuggiero a total of $5.2 million at closing which also included repurchase of 514,000 shares of our Class A common stock. On April 2, 2018, we issued a common stock purchase warrant to Kristoffer Nelson, our Chief Operating Officer and a member of our board of directors. The option entitles Mr. Nelson to purchase 100,000 shares of Class A Common Stock at a price per share of $5.78, has a term of three years and vests quarterly over a three (3) year period. On September 11, 2018, we issued a common stock purchase warrant to Joseph P. Hannan, our former Chief Financial Officer. The option entitled Mr. Hannan to purchase 250,000 shares of Class A Common Stock at a price per share of $4.20, had a term of three years and vested quarterly over a three (3) year period. Upon Mr. Hannan’s termination in December 2018, 234,375 of these options expired. Our Chief Executive Officer joined the board of directors of one of our advertising customers which purchases advertising at market rates during the first quarter of 2018.

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2018
Accounts Payable and Accrued Liabilities [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	NOTE 10 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses at December 31, are comprised of the following: 2018 2017 Accounts payable, trade $ 2,517,749 $ 2,858,871 Accrued expenses 256,008 1,800,621 Accrued compensation 722,010 256,164 Accrued commissions 79,158 95,159 Accounts payable and accrued expenses $ 3,574,926 $ 5,010,815

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 11 – INCOME TAXES Income tax (benefit) expense from continuing operations for the year ended December 31, 2018 consisted of the following: Current Deferred Total Federal $ — $ (1,301,486 ) $ (1,301,486 ) State — (700,900 ) (700,900 ) Subtotal — (2,002,386 ) (2,002,386 ) Valuation allowance — 2,002,386 2,002,386 Total $ — $ — $ — Income tax (benefit) expense from continuing operations for the year ended December 31, 2017 consisted of the following: Current Deferred Total Federal $ — $ 543,682 543,682 State — (287,649 ) (287,649 ) Subtotal — 256,033 256,033 Valuation allowance — (256,033 ) (256,033 ) Total $ — $ — $ — A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows: 2018 2017 Taxes calculated at federal rate 21.0 % 34.0 % State income tax, net of federal benefit (1.9 )% 1.4 % Stock based compensation 1.4 % — % Permanent Differences 1.0 % (5.0 )% Change in Valuation Allowance 13.9 % 2.0 % Fair market adjustment derivatives (21.5 )% (10.8 )% Prior year True-ups (14.9 )% 1.3 % True-up to deferred tax rate — % (17.9 )% Other adjustments 1.0 % (5.0 )% Provision for income taxes — % — % The tax effects, rounded to thousands, of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2018 and 2017 are presented below: 2018 2017 Deferred Tax Assets Net operating loss carryforwards $ 2,914,731 $ 4,156,406 Fixed assets (37,801 ) Accrued interest — — Intangibles — — Stock based compensation 430,907 579,085 Other accruals 24,390 53,185 Total Deferred Tax Assets 3,332,227 4,788,677 Deferred Tax Liabilities Stock based compensation — Intangibles (249,530 ) (482,121 ) Prepaid expenses (12,620 ) (14,623 ) Total Deferred Tax Liabilities (262,150 ) (496,744 ) Net Deferred Tax Assets 3,070,707 4,291,933 Valuation Allowance (3,070,707 ) (4,291,933 ) Net deferred tax / (liabilities) $ — $ — Deferred tax assets and liabilities are computed by applying the federal and state income tax rates in effect to the gross amounts of temporary differences and other tax attributes, such as net operating loss carry-forwards. In assessing if the deferred tax assets will be realized, the Company considers whether it is more likely than not that some or all of these deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which these deductible temporary differences reverse. During the year ended December 31, 2018, the valuation allowance decreased by $1,221,226 to $3,070,707. All of this decrease attributable to the decrease in our net operating loss carryforwards. The total valuation allowance results from the Company’s estimate of its inability to recover its net deferred tax assets. At December 31, 2018, the Company has federal and state net operating loss carry forwards, which are available to offset future taxable income, of approximately $12,806,705 and $15,752,351, respectively, both of which begin to expire in 2032 and 2032 respectively. These carry forwards may be subject to an annual limitation under Section 382 and 383 of the Internal Revenue Code of 1986, and similar state provisions if the Company experienced one or more ownership changes which would limit the amount of NOL and tax credit carryforwards that can be utilized to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Section 382 and 383, results from transactions increasing ownership of certain stockholders or public groups in the stock of the corporation by more than 50 percentage points over a three-year period. The Company has not completed an IRC Section 382/383 analysis. If a change in ownership were to have occurred, NOL and tax credit carryforwards could be eliminated or restricted. If eliminated, the related asset would be removed from the deferred tax asset schedule with a corresponding reduction in the valuation allowance. Due to the existence of the valuation allowance, limitations created by future ownership changes, if any, will not impact the Company’s effective tax rate. The Company files income tax returns in the United States and various state jurisdictions. Due to the Company’s net operating loss posture all tax years are open and subject to income tax examination by tax authorities. The Company’s policy is to recognize interest expense and penalties related to income tax matters as tax expense. At December 31, 2018, there are no unrecognized tax benefits, and there are no significant accruals for interest related to unrecognized tax benefits or tax penalties.

STOCK OPTIONS, AWARDS AND WARRA

STOCK OPTIONS, AWARDS AND WARRANTS	12 Months Ended
	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK OPTIONS, AWARDS AND WARRANTS	NOTE 12 – STOCK OPTIONS, AWARDS AND WARRANTS 2012, 2014 and 2016 Equity Compensation Plans In January 2012, our board of directors and stockholders authorized the 2012 Equity Compensation Plan, which we refer to as the 2012 Plan, covering 600,000 shares of our Class A common stock. On November 5, 2014, our board of directors approved the adoption of our 2014 Equity Compensation Plan (the " 2014 Plan ") and reserved 600,000 shares of our Class A common stock for grants under this plan. On February 23, 2016, our board of directors approved the adoption of our 2016 Equity Compensation Plan (the “2016 Plan”) and reserved 600,000 shares of our Class A common stock for grants under this plan. The purpose of the 2012, 2014 and 2016 Plans is to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to our employees, directors and consultants and to promote the success of our company's business. The 2012, 2014 and 2016 Plans are administered by our board of directors. Plan options may either be: · incentive stock options (ISOs), · non-qualified options (NSOs), · awards of our common stock, · stock appreciation rights (SARs), · restricted stock units (RSUs), · performance units, · performance shares, and · other stock-based awards. Any option granted under the 2012, 2014 and 2016 Plans must provide for an exercise price of not less than 100% of the fair market value of the underlying shares on the date of grant, but the exercise price of any ISO granted to an eligible employee owning more than 10% of our outstanding common stock must not be less than 110% of fair market value on the date of the grant. The plans further provide that with respect to ISOs the aggregate fair market value of the common stock underlying the options which are exercisable by any option holder during any calendar year cannot exceed $100,000. The exercise price of any NSO granted under the 2012, 2014 or 2016 Plans is determined by the Board at the time of grant, but must be at least equal to fair market value on the date of grant. The term of each plan option and the manner in which it may be exercised is determined by the board of directors or the compensation committee, provided that no option may be exercisable more than 10 years after the date of its grant and, in the case of an incentive option granted to an eligible employee owning more than 10% of the common stock, no more than five years after the date of the grant. The terms of grants of any other type of award under the 2012, 2014 or 2016 Plans is determined by the Board at the time of grant. Subject to the limitation on the aggregate number of shares issuable under the plans, there is no maximum or minimum number of shares as to which a stock grant or plan option may be granted to any person. Transactions involving our stock options for the years ended December 31, 2018 and 2017, respectively, are summarized as follows: 2018 2017 Weighted Weighted Average Average Exercise Exercise Number Price Number Price Outstanding, beginning of the period 414,300 $ 6.65 575,800 $ 6.97 Granted during the period 480,236 3.57 — — Exercised during the period — — — — Forfeited during the period (366,874 ) 4.84 (161,500 ) 7.26 Outstanding, end of the period 537,662 $ 5.94 414,300 $ 6.97 Exercisable at the end of the period 331,993 6.8 288,630 6.65 At December 31, 2018 options outstanding totaled 532,662 with a weighted average exercise price of $5.94. Of these options, 331,993 are exercisable at December 31, 2018, with an intrinsic value of $74,425 and a remaining weighted average contractual term of 2.9 years. Compensation cost related to the unvested options not yet recognized is approximately $583,412 at December 31, 2017. We have estimated that approximately $356,852 will be recognized during 2018. The weighted average remaining life of the options is 2.8 years. Transactions involving our common stock awards for the years ended December 31, 2018 and 2017, respectively, are summarized as follows: 2018 2017 Number Number Outstanding, beginning of the period 54,669 116,666 Granted during the period — — Vested during the period (53,334 ) (55,998 ) Forfeited during the period (1,335 ) (6,000 ) Unvested at the end of the period — 54,669 Unrecognized compensation cost related to our common stock awards is approximately $0 and $162,741 at December 31, 2018 and 2017, respectively. We have estimated that we will recognize future compensation expense approximating $0 during the year ended December 31, 2018. Transactions involving our stock warrants for the years ended December 31, 2018 and 2017, respectively, are summarized as follows: 2018 2017 Weighted Weighted Average Average Exercise Exercise Number Price Number Price Outstanding, beginning of the period 2,485,005 $ 5.09 2,976,863 $ 6.45 Granted during the period 2,162,058 3.00 2,121,433 3.73 Exercised during the period (95,238 ) 2.25 (428,469 ) 3 Forfeited during the period (226,402 ) 6.95 (2,184,822 ) 6.04 Outstanding, end of the period 4,325,423 5.05 2,485,005 5.09 Exercisable at the end of the period 4,325,423 5.05 2,485,005 5.09 The weighted average remaining life of the warrants is 3.2 years.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 13 – COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases offices under operating leases that have now expired and now operate on a month-to-month basis, with certain notice of termination provisions. Future minimum lease payments required under the operating lease for the Mexico facility amounts to $786,168 as of December 31, 2018. Future minimum lease payments under this rental agreement are approximately as follows: For the year ended: 12/31/2019 $ 163,218 12/31/2020 $ 163,218 12/31/2021 $ 163,218 12/31/2022 $ 163,218 12/31/2023 $ 133,295 $ 786,167 Rent expense for office space amounted to $277,801 and $211,680 for the years ended December 31, 2018 and 2017, respectively. Other Commitments In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company's breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. In addition, the Company has entered 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. The Company is not currently a party to any material legal proceedings, nor is the Company aware of any pending or threatened litigation that would have a material adverse effect on the Company's business, operating results, cash flows or financial condition should such litigation be resolved unfavorably.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 14. – FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts of certain financial instruments, including cash and cash equivalents, restricted cash and accounts payable, approximate their respective fair values due to the short-term nature of such instruments. The fair value of the 2017 Senior Secured Convertible Notes was $6,845,147 as of December 31, 2017. All Convertible Notes fall within Level 3 of the fair value hierarchy as their value is based on the credit worthiness of the Company, which is an unobservable input. Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level in which to classify them for each reporting period. This determination requires significant judgments to be made. The Company had no financial assets or liabilities as of December 31, 2018 and 2017: Quoted Prices in Significant Other Significant Balance as of Active Markets for Observable Unobservable December 31, Identical Assets Inputs Inputs 2018 (Level 1) (Level 2) (Level 3) Debenture warrant liability $ 4,323,499 $ — — 4,323,499 Leapfrog warrant liability 622,436 — — 622,436 Derivative liability 496,260 — — 496,260 Put liability — — — — Total liabilities $ 5,442,195 $ — $ — $ 5,442,195 Securities: Certificates of deposit — — — — Money Market funds — — — — U.S. government-sponsored agency securities 2,723,264 2,723,264 — — Total assets $ 2,723,264 $ 2,723,264 $ — $ — The Company received an equity position representing approximately 30% in the LLC that purchased the assets in the SRAX Md transaction. As there is no readily available fair market value for the LLC we carry the investment on our books at our basis for the assets sold, which was $0. Additionally, the Company has no significant influence over the entity even though the Company has an approximately 30% ownership interest. Quoted Prices in Significant Other Significant Balance as of Active Markets for Observable Unobservable December 31, Identical Assets Inputs Inputs 2017 (Level 1) (Level 2) (Level 3) Debenture warrant liability $ 7,256,863 $ — — 7,256,863 Leapfrog warrant liability 1,873,107 — — 1,873,107 Derivative liability 2,026,031 — — 2,026,031 Put liability — — — — Total liabilities $ 11,156,001 $ — $ — $ 11,156,001 Securities: Certificates of deposit — — — — Money Market funds — — — — U.S. government-sponsored agency securities — — — — Total assets $ — $ — $ — $ — A reconciliation of the beginning and ending balances for the derivative and warrant liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is as follows): Outstanding, beginning of the period $ 11,156,003 $ — Initial derivative liability on issuance of warrants 3,240,127 7,453,615 Change in fair value (8,953,933 ) 4,134,166 Less accretion and conversion of debenture warrants — (431,780 ) Warrant liabilities $ 5,442,195 $ 11,156,001 The Company accounts for its investments in equity securities in accordance with ASC 321-10 Investments - Equity Securities. The equity securities may be classified into two categories and accounted for as follows: · Equity securities with a readily determinable fair value are reported at fair value, with unrealized gains and losses included in earnings. Any dividends received are recorded in interest income, the fair value of equity investments with fair values is primarily obtained from third-party pricing services. · Equity securities without a readily determinable fair value are reported at their cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer and their impact on fair value. Any dividends received are recorded in interest income. For equity investments without readily determinable fair values, when an orderly transaction for the identical or similar investment of the same issuer is identified, we use the valuation techniques permitted under ASC 820 Fair Value Measurement to evaluate the observed transaction(s) and adjust the fair value of the equity investment. Equity investments include the Company’s retention of an approximately 30% membership interest in the purchaser of SRAXmd group of assets (a limited liability company). The investment was valued initially at its cost basis which was nil. The Company has limited access to operating results and information and has no significant influence over the purchaser of SRAXmd. The operating agreement designates a different managing member for that entity. Accordingly, the value at December 31, 2018 is nil and is a level 3 asset.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 15 – SUBSEQUENT EVENTS On April 10, 2019 we completed a registered direct offering of 1,687,825 shares our Class A common stock. The offering resulted in gross proceeds to the company of approximately $6.75 million. On April 8, 2019, we accepted proposals from certain holders of outstanding Class A common stock purchase warrants. Pursuant to the proposal, the holders agreed to exercise their outstanding warrants to purchase an aggregate of 310,487 shares of our common stock, for cash, by April 10, 2019, in exchange for the Company reducing the exercise price of the Warrants from $7.50 to $3.56. As a result of the transaction, we expect to receive gross proceeds in the amount of $1,105,333. On April 1, 2019, we sold a non-performing receivable in the amount of $567,977, (such amount includes a mutually agreed upon gross-up with our customer of $150,000) for $417,977. In connection with the sale, we agreed to repurchase the receivable if the purchaser was not able to collect on the amounts owed by June 30, 2019. As security for our repurchase obligation, we issued and pledged 220,000 shares of our Class A common stock.

Restatement

Restatement	12 Months Ended
	Dec. 31, 2018
Accounting Changes and Error Corrections [Abstract]
Restatement	NOTE 16 – Restatement Financial Information (As Restated) · As further described in the Explanatory Note, in lieu of filing an amended Form 10-K the Company has presented restated 2017 financials attached here. · In addition to the restatement of the financial statements, certain information within the following notes to the financial statements and financial statement schedule has been restated to reflect the corrections of misstatements discussed previously. Impact of the Restatement Below we’ve presented the 2017 Financial Statements as previously reported with a reconciliation to the restated financials: Summary of Restatement Consolidated Balance Sheet 2017 Adjustments 2017 As Restated Assets Current assets: Cash and cash equivalents $ 1,017,299 $ — $ 1,017,299 Accounts receivable, net 4,348,305 — 4,348,305 Prepaid expenses 468,336 — 468,336 Other current assets 300,898 — 300,898 Total current assets 6,134,838 — 6,134,838 Property and equipment, net 154,546 — 154,546 Goodwill 15,644,957 — 15,644,957 Intangible assets, net 1,642,760 — 1,642,760 Other assets 28,598 — 28,598 Total assets $ 23,605,699 $ — $ 23,605,699 Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued expenses 5,010,815 — 5,010,815 Debenture warrant liability — 7,256,864 7,256,864 Leapfrog warrant liability — 1,873,107 1,873,107 Derivative liability — 2,026,031 2,026,031 Put liability — — — Total current liabilities 5,010,815 11,156,002 16,166,817 Secured convertible debentures, net 1,711,146 (186,554 ) 1,524,592 Total liabilities 6,721,961 10,969,448 17,691,409 Commitments and contingencies (Note 11) Stockholders' equity: Preferred stock, authorized 50,000,000 shares, $0.001 par value, no shares issued or outstanding at December 31, 2018 and 2017, respectively — — — Class A common stock, authorized 250,000,000 shares, $0.001 par value, 10,109,530 and 9,910,565 shares issued and outstanding at December 31, 2018 and 2017, respectively 9,911 — 9,911 Class B common stock, authorized 9,000,000 shares, $0.001 par value, no shares issued or outstanding at December 31, 2018 and 2017, respectively — — — Common stock to be issued 879,500 — 879,500 Additional paid in capital 37,143,033 (4,596,213 ) 32,546,820 Accumulated deficit (21,148,706 ) (6,373,235 ) (27,521,941 ) Total stockholders' equity 16,883,738 (10,969,448 ) 5,914,290 Total liabilities and stockholders' equity $ 23,605,699 $ — $ 23,605,699 The adjustments to the consolidated balance sheet reflect the effect of adjusting certain warrants from equity reporting to liability reporting. Summary of Restatement Consolidated Statement of Operations Adjustments 2017 Adjustments 2017 As Restated Revenue $ 23,348,714 $ — $ 23,348,714 Cost of revenue 9,328,893 — 9,328,893 Gross profit 14,019,821 — 14,019,821 Operating expense: General, selling and administrative expense 17,016,789 — 17,016,789 Impairment of goodwill Write off of non-compete agreement 468,750 — 468,750 Restructuring Costs 377,961 — 377,961 Operating expense 17,863,500 — 17,863,500 Loss from operations (3,843,679 ) — (3,843,679 ) Other income (expense): Interest expense (713,826 ) (2,068,221 ) (2,782,047 ) Amortization of debt issuance costs (2,101,377 ) 1,018,548 (1,082,829 ) Total Interest Expense (2,815,203 ) (1,049,673 ) (3,864,876 ) Gain on sale of Assets Accretion of beneficial conversion feature — (925,748) (925,748) Accretion of debenture discount and warrants — (263,648 ) (263,648 ) Change in Fair Value of Warrant Liability — (4,134,166 ) (4,134,166 ) Other non-operating income / (expense) — (5,323,562 ) (5,323,562 ) Total other income / (expense) (2,815,203 ) (6,373,235 ) (9,188,438 ) Income / (Loss) before provision for income taxes (6,658,882 ) (6,373,235 ) (13,032,117 ) Provision for income taxes — — — Net income / (loss) $ (6,658,882 ) $ (6,373,235 ) $ (13,032,117 ) Net income / (loss) per share, basic and diluted $ (0.81 ) (0.77 ) $ (1.58 ) Weighted average shares outstanding Basic 8,253,851 8,253,851 8,253,851 Diluted 8,253,851 8,253,851 8,253,851 The adjustments to the consolidated statement of operations reflect the changes in fair the value from the date of issuance or 1/1/17, whichever is later, through December 31, 2017 for certain warrants that had previously been reported as equity. Summary of Restatement Consolidated Statement of Cash Flows There was no net impact of the 2017 restatement adjustments on net cash provided by operating activities, net cash provided by investing activities or net cash used in financing activities in the Consolidated Statement of Cash Flows. The adjustments only had an impact on certain captions within cash from operating activities. Subsequent to the filing of the Annual Report on Form 10-K for the year ended December 31, 2017 (the “Annual Report”), the Company reviewed its accounting methodology relating to its warrant reclassification as equity in December 2017. The description has been revised on the face of the consolidated balance sheets to indicate that the warrant related liabilities. The foregoing restatement is being made in accordance with ASC 250, “Accounting Changes and Error Corrections.” The disclosure provision of ASC 250 requires a company that corrects an error to disclose that its previously issued financial statements have been restated, to provide a description of the nature of the error, the effect of the correction on each financial statement line item and any per share amount affected for each prior period presented, and the cumulative effect on retained earnings in the statement of financial position as of the beginning of each period presented. The restatement pertains to all the quarters for the year ended December 31, 2017 and first three quarters of 2018, and accordingly will have effect on these previously filed quarterly reports.

ORGANIZATION AND SUMMARY OF S_2

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	Organization and Basis of Presentation Social Reality, Inc. ("Social Reality", "we", "us", “our” or the "Company") is a Delaware corporation formed on August 2, 2011. Effective January 1, 2012 we acquired 100% of the member interests and operations of Social Reality, LLC, a California limited liability company formed on August 14, 2009 which began business in May of 2010, in exchange for 2,465,753 shares of our Class A common stock. The former members of Social Reality, LLC owned 100% of our Class A common stock after the acquisition. At Social Reality, we sell digital advertising campaigns to advertising agencies and brands. We have developed technology that allows brands to launch and manage digital advertising campaigns, and we provide the platform that allows website publishers to sell their media inventory to many different digital advertising buyers. Our focus is to provide technology tools that enable both publishers and advertisers to maximize their digital advertising initiatives. We derive our revenues from: · sales of digital advertising campaigns to advertising agencies and brands; · sales of media inventory owned by our publishing partners through real-time bidding ( “ ” · sale and licensing of our SRAX Social · creation of custom platforms for buying media on SRAX The core elements of this business are: · Social Reality Ad Exchange or "SRAX" – Real Time Bidding sell side and buy side representation SRAX · SRAX Social · SRAXshopper · SRAXauto We are headquartered in Los Angeles, California.
Presentation of Financial Statements - Going Concern	Presentation of Financial Statements – Going Concern Going Concern Evaluation In connection with preparing consolidated financial statements for the year ended December 31, 2018, management evaluated whether there were conditions and events, considered in the aggregate, that raised substantial doubt about the Company’s ability to continue as a going concern within one year from the date that the financial statements are issued. The Company considered the following: · Net Income of $8.7 million for the year-ended December 31, 2018 · Negative cash flow from operating activities for 2018 and 2017. · At December 31, 2018, the Company had an accumulated deficit of $18,778,348. · Revenue decline in 2018 of $13,468,106. Ordinarily, conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern relate to the entity’s ability to meet its obligations as they become due. The Company evaluated its ability to meet its obligations as they become due within one year from the date that the financial statements are issued by considering the following: · The Company has no debt as of December 31, 2018 · On April 10, 2019 the Company raised $6.2 million through the sale of common stock in a direct shelf offering. · The Company’s sale of the SRAXmd vertical for $33.5 million in cash consideration. · In 2018, the Company is in compliance with NASDAQ Capital Markets listing requirements. · In 2018, the Company redeemed $6.5 million of convertible debentures. · Revenue declines were largely the result of a sale of a lower margin sales the produced little to no positive cash flow benefit for the Company. The Company will take the following actions if it starts to trend unfavorably to its internal profitability and cash flow projections, in order to mitigate conditions or events that would raise substantial doubt about its ability to continue as a going concern: · Raise additional capital through short-term loans. · Implement restructuring and cost reductions. · Raise additional capital through a private placement of equity. · Secure a commercial bank line of credit. · Dispose of one or more product lines. · Sell or license intellectual property. At December 31, 2018, the Company had $2,784,865 in cash and cash equivalents. In April 2019 the Company concluded a private placement sale of its common stock for approximately $6.5 million. We believe we have sufficient working capital to pay our expenses for the next twelve months.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements include the accounts of the Company and its subsidiaries from the acquisition date of majority voting control of the subsidiary.
Use of Estimates	Use of Estimates The consolidated financial statements have been prepared in conformity with generally accepted accounting principles accepted in the United States of America (“GAAP”) and requires management of the Company to make estimates and assumptions in the preparation of these consolidated financial statements that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates and assumptions. The most significant areas that require management judgment and which are susceptible to possible change in the near term include the Company's revenue recognition, allowance for doubtful accounts and sales credits, stock-based compensation, income taxes, purchase price for acquisition, goodwill, other intangible assets, put rights and valuation of other assets and 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 adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers ASC Topic 606 is a comprehensive revenue recognition model that requires revenue to be recognized when control of the promised goods or services are transferred to our customers at an amount that reflects the consideration that we expect to receive. Application of ASC Topic 606 requires us to use more judgment and make more estimates than under former guidance. Application of ASC Topic 606 requires a five-step model applicable to all product offereing revenue streams as follows: Identification of the contract, or contracts, with a customer A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance and, (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit or financial information pertaining to the customer. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. When a contract includes multiple promised goods or services, we apply judgment to determine whether the promised goods or services are capable of being distinct and are distinct within the context of the contract. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. Determination of the transaction price The transaction price is determined based on the consideration to which we will be entitled to receive in exchange for transferring goods or services to our customer. We estimate any variable consideration included in the transaction price using the expected value method that requires the use of significant estimates for discounts, cancellation periods, refunds and returns. Variable consideration is described in detail below. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative Stand-Alone Selling Price (“SSP,”) basis. We determine SSP based on the price at which the performance obligation would be sold separately. If the SSP is not observable, we estimate the SSP based on available information, including market conditions and any applicable internally approved pricing guidelines. Recognition of revenue when, or as, we satisfy a performance obligation We recognize revenue at the point in time that the related performance obligation is satisfied by transferring the promised goods or services to our customer. Principal versus Agent Considerations When another party is involved in providing goods or services to our customer, we apply the principal versus agent guidance in ASC Topic 606 to determine if we are the principal or an agent to the transaction. When we control the specified goods or services before they are transferred to our customer, we report revenue gross, as principal. If we do not control the goods or services before they are transferred to our customer, revenue is reported net of the fees paid to the other party, as agent. Our evaluation to determine if we control the goods or services within ASC Topic 606 includes the following indicators: We are primarily responsible for fulfilling the promise to provide the specified good or service. When we are primarily responsible for providing the goods and services, such as when the other party is acting on our behalf, we have indication that we are the principal to the transaction. We consider if we may terminate our relationship with the other party at any time without penalty or without permission from our customer. We have risk before the specified good or service have been transferred to a customer or after transfer of control to the customer. We may commit to obtaining the services of another party with or without an existing contract with our customer. In these situations, we have risk of loss as principal for any amount due to the other party regardless of the amount(s) we earn as revenue from our customer. The entity has discretion in establishing the price for the specified good or service. We have discretion in establishing the price our customer pays for the specified goods or services. Contract Liabilities Contract liabilities consist of customer advance payments and billings in excess of revenue recognized. We may receive payments from our customers in advance of completing our performance obligations. We record contract liabilities equal to the amount of payments received in excess of revenue recognized, including payments that are refundable if the customer cancels the contract according to the contract terms. Contract liabilities have been historically low historically recorded as current liabilities on our consolidated financial statements when the time to fulfill the performance obligations under terms of our contracts is less than one year. We have no Long-term contract liabilities which would represent the amount of payments received in excess of revenue earned, including those that are refundable, when the time to fulfill the performance obligation is greater than one year. Practical Expedients and Exemptions We have elected certain practical expedients and policy elections as permitted under ASC Topic 606 as follows: · We applied the transitional guidance to contracts that were not complete at the date of our initial application of ASC Topic 606 on January 1, 2018. · We adopted the practical expedient related to not adjusting the promised amount of consideration for the effects of a significant financing component if the period between transfer of product and customer payment is expected to be less than one year at the time of contract inception; · We made the accounting policy election to not assess promised goods or services as performance obligations if they are immaterial in the context of the contract with the customer; · We made the accounting policy election to exclude any sales and similar taxes from the transaction price; and · We adopted the practical expedient not to disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.
Cost of Revenue	Cost of Revenue Cost of revenue consists of payments to media providers and website publishers that are directly related to a revenue-generating event and project and application design costs. The Company becomes obligated to make payments related to media providers and website publishers in the period the advertising impressions, click-throughs, actions or lead-based information are delivered or occur. Such expenses are classified as cost of revenue in the corresponding period in which the revenue is recognized in the accompanying 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 usually does not require collateral. Allowance for doubtful accounts was $48,741 and $59,703 at December 31, 2018 and 2017, 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 balances maintained at these financial institutions are generally more than the Federal Deposit Insurance Corporation insurance limits. The Company has not experienced any loss on these accounts. At December 31, 2018, two customers accounted for more than 10% of the accounts receivable balance, for a total of 75.1%. At December 31, 2017, four customers accounted for more than 10% of the accounts receivable balance, for a total of 59.5%.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The accounting standard for fair value measurements provides a framework for measuring fair value and requires disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on the Company’s principal or, in absence of a principal, most advantageous market for the specific asset or liability. The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined as follows: · Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets; · Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and · Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions. Although the Company believes that the recorded fair value of our financial instruments is appropriate, these fair values may not be indicative of net realizable value or reflective of future fair values. The Company's financial instruments, including cash and cash equivalents, net accounts receivable, accounts payable and accrued expenses, are carried at historical cost. At December 31, 2018 and 2017, the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments. The Company measures certain non-financial assets, liabilities, and equity issuances at fair value on a non-recurring basis. These non-recurring valuations include evaluating assets such as long-lived assets and goodwill for impairment; allocating value to assets in an acquired asset group; and applying accounting for business combinations. Derivative instruments are carried at fair value, generally estimated using the Black-Scholes Merton model. As of December 31, 2018 the Company included $2,723,264 of United States Treasury bills with maturities less than 90 days within cash and cash equivalents.
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 five to six years. Costs Incurred to Develop Software for Internal Use Costs incurred to develop computer software for internal use are capitalized once: (1) the preliminary project stage is completed, (2) management authorizes and commits to funding a specific software project, and (3) it is probable that the project will be completed and the software will be used to perform the function intended. Costs incurred prior to meeting the qualifications are expensed as incurred. Capitalization of costs ceases when the project is substantially complete and ready for its intended use. Post-implementation costs related to the internal use computer software, are expensed as incurred. Internal use software development costs are amortized using the straight-line method over its estimated useful life which ranges up to three years. Software development costs may become impaired in situations where development efforts are abandoned due to the viability of the planned project becoming doubtful or due to technological obsolescence of the planned software product. For the years ended December 31, 2018, and 2017 there has been no impairment associated with internal use software. For the years ended December 31, 2018, and 2017, the Company capitalized software development costs of $960,157 and $694,914 respectively. During 2016, the Company began capitalizing 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. The Company capitalizes costs incurred during the application development stage of internal-use software and amortize these costs over the estimated useful life. Upgrades and enhancements are capitalized if they result in added functionality which enable the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion, and business process reengineering costs are expensed in the period in which they are incurred.
Business Combinations	Business Combinations For all business combinations (whether partial, full or step acquisitions), the Company records 100% of all assets and liabilities of the acquired business, including goodwill, generally at their fair values; contingent consideration, if any, is recognized at its fair value on the acquisition date and, for certain arrangements, changes in fair value are recognized in earnings until settlement and acquisition-related transaction and restructuring costs are expensed rather than treated as part of the cost of the acquisition.
Goodwill	Goodwill Goodwill is comprised of the purchase price of business combinations in excess of the fair value assigned at acquisition to the net tangible and identifiable intangible assets acquired. Goodwill is not amortized. The Company tests goodwill for impairment for its reporting units on an annual basis, or when events occur or circumstances indicate the fair value of a reporting unit is below its carrying value. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that implied fair value of the goodwill within the reporting unit is less than its carrying value. The Company performed its most recent annual goodwill impairment test as of December 31, 2018 using market data and discounted cash flow analysis. Based on this analysis, it was determined that the fair value exceeded the carrying value of its reporting units. The Company concluded the fair value of the goodwill exceed the carrying value accordingly there were no indicators of impairment for the years ended December 31, 2018 and 2017. The Company had historically performed its annual goodwill and impairment assessment on December 31 st When evaluating the potential impairment of goodwill, management first assess a range of qualitative factors, including but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company's products and services, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, and the overall financial performance for each of the Company's reporting units. If, after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then proceed to the impairment testing methodology primarily using the income approach (discounted cash flow method). We compare the carrying value of the reporting unit, including goodwill, with its fair value, as determined by its estimated discounted cash flows. If the carrying value of a reporting unit exceeds its fair value, then the amount of impairment to be recognized. When required, we arrive at our estimates of fair value using a discounted cash flow methodology which includes estimates of future cash flows to be generated by specifically identified assets, as well as selecting a discount rate to measure the present value of those anticipated cash flows. Estimating future cash flows requires significant judgment and includes making assumptions about projected growth rates, industry-specific factors, working capital requirements, weighted average cost of capital, and current and anticipated operating conditions. The use of different assumptions or estimates for future cash flows could produce different results.
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 years ended December 31, 2018 or 2017, respectively.
Accounting for discontinued operations	Accounting for discontinued operations We regularly review underperforming assets (product offereings) to determine if a sale or disposal might be a better way to monetize the assets. When a product line or other asset group is considered for sale or disposal, we review the transaction to determine if or when the entity qualifies as a discontinued operation in accordance with the criteria of FASB ASC Topic 205-20 “Discontinued Operations.” The FASB has issued authoritative guidance that raises the threshold for disposals to qualify as discontinued operations. Under the this guidance, a discontinued operation is (1) a component of an entity or group of components that have been disposed of or are classified as held for sale and represent a strategic shift that has or will have a major effect on an entity's operations and financial results, or (2) an acquired business that is classified as held for sale on the acquisition date. We operate as a single reporting unit that has multiple product offerings. All our product offerings are in the same geographic market, sharing the same building, equipment, and managed by a single general manager. The product level is the lowest level for which discrete financial information related solely to revenue and related accounts recievalbe is available and the level reviewed by management to analyze operating results. Our senior management is compensated based on the results of all the product offerings as a whole, not the results of any individual product line We have determined that the sale of the SRAXmd prodcut line did not qualify for as a discontinued operation pursuant to guidance in ASC 205-20. During 2018, based on revenue results management and board decided to accept the offer for the sale of the SRAXmd product line. The Company decided to monetize the SRAXmd product line via a sale rather than continue to offer the SRAXmd product to its customers. We have retained an approximatley 30% interest in the purchaser of the SRAXmd product line, however, based on the operating agreement covering our ownerhisp we have no ongoing or further involvement in the operations of the purschaser of SRAXmd. The sale of the SRAXmd product line is not considered to be discontinued operations pursuant to the guidance in ASC 205-20.
Derivatives	Derivatives The Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC Topic No. 480, Distinguishing Liabilities From Equity Derivatives and Hedging The Company has adopted ASU 2017-11, Earnings per share (Topic 260), provided that when determining whether certain financial instruments should be classified as liability or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. If a down round feature on the conversion option embedded in the note is triggered, the Company will evaluate whether a beneficial conversion feature exists, the Company will record the amount as a debt discount and will amortize it over the remaining term of the debt. If the down round feature in the warrants that are classified as equity is triggered, the Company will recognize the effect of the down round as a deemed dividend, which will reduce the income available to common stockholders.
Warrant Liability	Warrant Liability The Company accounts for certain common stock warrants outstanding as a liability at fair value and adjusts the instruments to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company's consolidated statements of operations. The fair value of the warrants issued by the Company has been estimated using a Black-Scholes option pricing model, at each measurement date.
Debt Discounts	Debt Discounts The Company accounts for debt discounts originating in connection with conversion features that remain embedded in the related notes in accordance with ASC 470-20, Debt with Conversion and Other Options
Earnings Per Share	Earnings Per Share We use ASC 260, " Earnings Per Share There were 4,853,085 common share equivalents at December 31, 2018 and 5,246,692 at December 31, 2017. For the year ended December 31, 2018 these potential shares were excluded from the shares used to calculate diluted. These securities were not included in the computation of diluted net earnings per share as their effect would have been antidilutive.
Income Taxes	Income Taxes We utilize ASC 740 “ Income Taxes The Company recognizes the impact of a tax position in the financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense.
Stock-Based Compensation	Stock-Based Compensation We account for our stock-based compensation under ASC 718 " Compensation – Stock Compensation 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. Common stock awards The Company grants common stock awards to non-employees in exchange for services provided. The Company measures the fair value of these awards using the fair value of the services provided or the fair value of the awards granted, whichever is more reliably measurable. The fair value measurement date of these awards is generally the date the performance of services is complete. The fair value of the awards is recognized on a straight-line basis as services are rendered. The share-based payments related to common stock awards for the settlement of services provided by non-employees is recorded in accordance with ASC 505-50 on the consolidated statement of comprehensive loss in the same manner and charged to the same account as if such settlements had been made in cash. Warrants In connection with certain financing, consulting and collaboration arrangements, the Company has issued warrants to purchase shares of its common stock. The outstanding warrants are standalone instruments that are not puttable or mandatorily redeemable by the holder and are classified as equity awards. The Company measures the fair value of the awards using the Black-Scholes option pricing model as of the measurement date. Warrants issued in conjunction with the issuance of common stock are initially recorded at fair value as a reduction in additional paid-in capital of the common stock issued. All other warrants are recorded at fair value as expense over the requisite service period or at the date of issuance, if there is not a service period. Warrants granted in connection with ongoing arrangements are more fully described in Note 4, Stockholders’ Equity .
Registration Rights	Registration Rights The Company accounts for registration rights agreements in accordance with the Accounting Standards Codification subtopic 825-20, Registration Payment Arraignments ("ASC 825-20"). Under ASC 825-20, the Company is required to disclose the nature and terms of the arraignment, the maximum potential amount and to assess each reporting period the probable liability under these arraignments and, if exists, to record or adjust the liability to current period operations. On November 29, 2018, the Company invoked the early redemption clause in certain of its convertible notes payable pursuant to which the Company redeemed early these convertible notes payable by cash and issuing warrant to purchase shares of common stock (the "Redemption Penalty Warrants"). In connection with the early retirement of these notes payable, the warrants issued to these investors included a registration rights agreement clauses, pursuant to which the Company agreed to provide certain registration rights with respect to the warrants issued. The registration rights agreements require the Company to file a registration statement within 90 calendar days from the final closing under the retirement transaction and to be effective 60 calendar days thereafter. The final closing under the retirement transaction of the debentures occurred on November 29, 2018. On February 11, 2019, the Company filed the required registration statement, as of this filing, it has yet to be declared effective. If the registration statement is not declared effective, the Company is subject to a 2% penalty of investors’ subscription amount. The Company has estimated the liability under the registration rights agreement at $0 as of December 31, 2018.
Business Segments	Business Segments The Company uses the "management approach" to identify its reportable segments. The management approach designates the internal organization used by management for making operating decisions and assessing performance as the basis for identifying the Company's reportable segments. Using the management approach, the Company determined that it has one operating segment due to business similarities and similar economic characteristics.
Recently Issued Accounting Standards	Recently Issued Accounting Standards Changes to accounting principles are established by the FASB in the form of ASUs to the FASB’s Codification. We consider the applicability and impact of all ASUs on our financial position, results of operations, cash flows, or presentation thereof. Described below are ASUs that are not yet effective, but may be applicable to our financial position, results of operations, cash flows, or presentation thereof. ASUs not listed below were assessed and determined to not be applicable to our financial position, results of operations, cash flows, or presentation thereof. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842) Codification Improvements In November 2018, the FASB issued ASU 2018-18 , Collaborative Arrangements (Tope 818): Clarifying the Interaction Between Topic 808 and Topic 606 In October 2018, the FASB issued ASU 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases In July 2018, the FASB issued ASU 2018-09, Codification Improvements In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220)—Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) Land Easement Practical Expedient for Transition to Topic 842. In February 2016, the FASB issued ASU 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 financial statements.

ACQUISITIONS AND DIVESTITURES (

ACQUISITIONS AND DIVESTITURES (Tables)	12 Months Ended
	Dec. 31, 2018
Business Combinations [Abstract]
Schedule of Gain on Sale of Assets	GAIN ON SALE OF SRAXmd: Cash Proceeds $ 32,966,303 Fair Value of Interest Retained — Carrying amount of Assets Sold Fixed Assets (117,000 ) Working Capital (3,228,803 ) Transactions Fees & Sales Commissions (7,512,472 ) Gain on Sale $ 22,108,028
Schedule of Income from Discontinued Operations	Based on management’s best estimates, for the three and twelve month periods ended December 31, 2018 and 2017, the unaudited results for revenue and cost of sales attributable to the SRAXmd product group are estimated below: Three Months ended Full Year December 31, December 31, 2018 2017 2018 2017 Revenue $ — $ 4,603,366 $ 6,306,613 $ 11,077,503 Cost of Sales $ — $ 1,082,389 $ 1,101,080 $ 1,998,395 Gross Profit $ 0 $ 3,520,977 $ 5,205,533 $ 9,079,108 Gross Margin 0.00 % 76.49 % 82.54 % 81.96 % General, Sales & Administrative expense $ — $ 1,438,957 $ 2,896,193 $ 2,028,407 Operating Income $ — $ 2,082,020 $ 2,309,340 $ 7,050,702

SECURED CONVERTIBLE DEBENTURE_2

SECURED CONVERTIBLE DEBENTURES, NET (Tables)	12 Months Ended
	Dec. 31, 2018
Convertible Debt [Abstract]
Schedule of secured convertible debentures	The secured convertible debentures are comprised of the following at December 31: 2018 2017 Principal Balance $ — $ 6,845,157 Debt discount — (4,107,792 ) Debt issuance costs — (1,026,219 ) Convertible notes, net $ — $ 1,711,146

WARRANT LIABILITIES (Tables)

WARRANT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of Warrant Liabilities	The Warrant liabilities are comprised of the following at December 31: 2018 2017 Outstanding, beginning of the period $ 11,156,003 $ — Initial derivative liability on issuance of warrants 3,240,127 7,453,615 Change in fair value (8,953,933 ) 4,134,166 Less accretion and conversion of debenture warrants — (431,780 ) Warrant liabilities $ 5,442,195 $ 11,156,001

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consists of the following at December 31: 2018 2017 Office equipment $ 332,932 251,415 Accumulated depreciation (140,867 ) (96,869 ) Property and equipment, net $ 192,065 154,546

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible assets	Intangible assets consist of the following at December 31: 2018 2017 Non-compete agreement $ 1,250,000 $ 1,250,000 Intellectual property 756,000 756,000 Acquired Software 617,069 617,069 Internally developed software 1,563,401 754,140 Total cost 4,186,170 3,377,209 Accumulated amortization (2,423,865 ) (1,734,449 ) Intangible assets, net $ 1,762,605 $ 1,642,760
Schedule of estimated future amortization expense	The estimated future amortization expense for the years ended December 31, are as follows: 2019 $ 858,041 2020 737,648 2021 166,916 $ 1,762,605

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2018
Accounts Payable and Accrued Liabilities [Abstract]
Schedule of Accounts payable and accrued expenses	Accounts payable and accrued expenses at December 31, are comprised of the following: 2018 2017 Accounts payable, trade $ 2,517,749 $ 2,858,871 Accrued expenses 256,008 1,800,621 Accrued compensation 722,010 256,164 Accrued commissions 79,158 95,159 Accounts payable and accrued expenses $ 3,574,926 $ 5,010,815

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of Income Tax (Benefit) Expense	Income tax (benefit) expense from continuing operations for the year ended December 31, 2018 consisted of the following: Current Deferred Total Federal $ — $ (1,301,486 ) $ (1,301,486 ) State — (700,900 ) (700,900 ) Subtotal — (2,002,386 ) (2,002,386 ) Valuation allowance — 2,002,386 2,002,386 Total $ — $ — $ — Income tax (benefit) expense from continuing operations for the year ended December 31, 2017 consisted of the following: Current Deferred Total Federal $ — $ 543,682 543,682 State — (287,649 ) (287,649 ) Subtotal — 256,033 256,033 Valuation allowance — (256,033 ) (256,033 ) Total $ — $ — $ —
Schedule of Effective tax rate	A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows: 2018 2017 Taxes calculated at federal rate 21.0 % 34.0 % State income tax, net of federal benefit (1.9 )% 1.4 % Stock based compensation 1.4 % — % Permanent Differences 1.0 % (5.0 )% Change in Valuation Allowance 13.9 % 2.0 % Fair market adjustment derivatives (21.5 )% (10.8 )% Prior year True-ups (14.9 )% 1.3 % True-up to deferred tax rate — % (17.9 )% Other adjustments 1.0 % (5.0 )% Provision for income taxes — % — %
Schedule of Deferred Tax Assets and Liabilities	The tax effects, rounded to thousands, of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2018 and 2017 are presented below: 2018 2017 Deferred Tax Assets Net operating loss carryforwards $ 2,914,731 $ 4,156,406 Fixed assets (37,801 ) Accrued interest — — Intangibles — — Stock based compensation 430,907 579,085 Other accruals 24,390 53,185 Total Deferred Tax Assets 3,332,227 4,788,677 Deferred Tax Liabilities Stock based compensation — Intangibles (249,530 ) (482,121 ) Prepaid expenses (12,620 ) (14,623 ) Total Deferred Tax Liabilities (262,150 ) (496,744 ) Net Deferred Tax Assets 3,070,707 4,291,933 Valuation Allowance (3,070,707 ) (4,291,933 ) Net deferred tax / (liabilities) $ — $ —

STOCK OPTIONS, AWARDS AND WAR_2

STOCK OPTIONS, AWARDS AND WARRANTS (Tables)	12 Months Ended
	Dec. 31, 2018
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of stock options, common stock awards and stock warrants	Transactions involving our stock options for the years ended December 31, 2018 and 2017, respectively, are summarized as follows: 2018 2017 Weighted Weighted Average Average Exercise Exercise Number Price Number Price Outstanding, beginning of the period 414,300 $ 6.65 575,800 $ 6.97 Granted during the period 480,236 3.57 — — Exercised during the period — — — — Forfeited during the period (366,874 ) 4.84 (161,500 ) 7.26 Outstanding, end of the period 537,662 $ 5.94 414,300 $ 6.97 Exercisable at the end of the period 331,993 6.8 288,630 6.65
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of stock options, common stock awards and stock warrants	Transactions involving our stock warrants for the years ended December 31, 2018 and 2017, respectively, are summarized as follows: 2018 2017 Weighted Weighted Average Average Exercise Exercise Number Price Number Price Outstanding, beginning of the period 2,485,005 $ 5.09 2,976,863 $ 6.45 Granted during the period 2,162,058 3.00 2,121,433 3.73 Exercised during the period (95,238 ) 2.25 (428,469 ) 3 Forfeited during the period (226,402 ) 6.95 (2,184,822 ) 6.04 Outstanding, end of the period 4,325,423 5.05 2,485,005 5.09 Exercisable at the end of the period 4,325,423 5.05 2,485,005 5.09
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of stock options, common stock awards and stock warrants	Transactions involving our common stock awards for the years ended December 31, 2018 and 2017, respectively, are summarized as follows: 2018 2017 Number Number Outstanding, beginning of the period 54,669 116,666 Granted during the period — — Vested during the period (53,334 ) (55,998 ) Forfeited during the period (1,335 ) (6,000 ) Unvested at the end of the period — 54,669

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments	Future minimum lease payments under this rental agreement are approximately as follows: For the year ended: 12/31/2019 $ 163,218 12/31/2020 $ 163,218 12/31/2021 $ 163,218 12/31/2022 $ 163,218 12/31/2023 $ 133,295 $ 786,167

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities measured at fair value on a recurring basis	The Company had no financial assets or liabilities as of December 31, 2018 and 2017: Quoted Prices in Significant Other Significant Balance as of Active Markets for Observable Unobservable December 31, Identical Assets Inputs Inputs 2018 (Level 1) (Level 2) (Level 3) Debenture warrant liability $ 4,323,499 $ — — 4,323,499 Leapfrog warrant liability 622,436 — — 622,436 Derivative liability 496,260 — — 496,260 Put liability — — — — Total liabilities $ 5,442,195 $ — $ — $ 5,442,195 Securities: Certificates of deposit — — — — Money Market funds — — — — U.S. government-sponsored agency securities 2,723,264 2,723,264 — — Total assets $ 2,723,264 $ 2,723,264 $ — $ — Quoted Prices in Significant Other Significant Balance as of Active Markets for Observable Unobservable December 31, Identical Assets Inputs Inputs 2017 (Level 1) (Level 2) (Level 3) Debenture warrant liability $ 7,256,863 $ — — 7,256,863 Leapfrog warrant liability 1,873,107 — — 1,873,107 Derivative liability 2,026,031 — — 2,026,031 Put liability — — — — Total liabilities $ 11,156,001 $ — $ — $ 11,156,001 Securities: Certificates of deposit — — — — Money Market funds — — — — U.S. government-sponsored agency securities — — — — Total assets $ — $ — $ — $ —
Schedule of reconciliation of derivative and warrant liability measured at fair value	A reconciliation of the beginning and ending balances for the derivative and warrant liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is as follows): Outstanding, beginning of the period $ 11,156,003 $ — Initial derivative liability on issuance of warrants 3,240,127 7,453,615 Change in fair value (8,953,933 ) 4,134,166 Less accretion and conversion of debenture warrants — (431,780 ) Warrant liabilities $ 5,442,195 $ 11,156,001

Restatement (Tables)

Restatement (Tables)	12 Months Ended
	Dec. 31, 2018
Accounting Changes and Error Corrections [Abstract]
Schedule of Impact of Restatement	Below we’ve presented the 2017 Financial Statements as previously reported with a reconciliation to the restated financials: Summary of Restatement Consolidated Balance Sheet 2017 Adjustments 2017 As Restated Assets Current assets: Cash and cash equivalents $ 1,017,299 $ — $ 1,017,299 Accounts receivable, net 4,348,305 — 4,348,305 Prepaid expenses 468,336 — 468,336 Other current assets 300,898 — 300,898 Total current assets 6,134,838 — 6,134,838 Property and equipment, net 154,546 — 154,546 Goodwill 15,644,957 — 15,644,957 Intangible assets, net 1,642,760 — 1,642,760 Other assets 28,598 — 28,598 Total assets $ 23,605,699 $ — $ 23,605,699 Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued expenses 5,010,815 — 5,010,815 Debenture warrant liability — 7,256,864 7,256,864 Leapfrog warrant liability — 1,873,107 1,873,107 Derivative liability — 2,026,031 2,026,031 Put liability — — — Total current liabilities 5,010,815 11,156,002 16,166,817 Secured convertible debentures, net 1,711,146 (186,554 ) 1,524,592 Total liabilities 6,721,961 10,969,448 17,691,409 Commitments and contingencies (Note 11) Stockholders' equity: Preferred stock, authorized 50,000,000 shares, $0.001 par value, no shares issued or outstanding at December 31, 2018 and 2017, respectively — — — Class A common stock, authorized 250,000,000 shares, $0.001 par value, 10,109,530 and 9,910,565 shares issued and outstanding at December 31, 2018 and 2017, respectively 9,911 — 9,911 Class B common stock, authorized 9,000,000 shares, $0.001 par value, no shares issued or outstanding at December 31, 2018 and 2017, respectively — — — Common stock to be issued 879,500 — 879,500 Additional paid in capital 37,143,033 (4,596,213 ) 32,546,820 Accumulated deficit (21,148,706 ) (6,373,235 ) (27,521,941 ) Total stockholders' equity 16,883,738 (10,969,448 ) 5,914,290 Total liabilities and stockholders' equity $ 23,605,699 $ — $ 23,605,699 The adjustments to the consolidated balance sheet reflect the effect of adjusting certain warrants from equity reporting to liability reporting. Summary of Restatement Consolidated Statement of Operations Adjustments 2017 Adjustments 2017 As Restated Revenue $ 23,348,714 $ — $ 23,348,714 Cost of revenue 9,328,893 — 9,328,893 Gross profit 14,019,821 — 14,019,821 Operating expense: General, selling and administrative expense 17,016,789 — 17,016,789 Impairment of goodwill Write off of non-compete agreement 468,750 — 468,750 Restructuring Costs 377,961 — 377,961 Operating expense 17,863,500 — 17,863,500 Loss from operations (3,843,679 ) — (3,843,679 ) Other income (expense): Interest expense (713,826 ) (2,068,221 ) (2,782,047 ) Amortization of debt issuance costs (2,101,377 ) 1,018,548 (1,082,829 ) Total Interest Expense (2,815,203 ) (1,049,673 ) (3,864,876 ) Gain on sale of Assets Accretion of beneficial conversion feature — (925,748) (925,748) Accretion of debenture discount and warrants — (263,648 ) (263,648 ) Change in Fair Value of Warrant Liability — (4,134,166 ) (4,134,166 ) Other non-operating income / (expense) — (5,323,562 ) (5,323,562 ) Total other income / (expense) (2,815,203 ) (6,373,235 ) (9,188,438 ) Income / (Loss) before provision for income taxes (6,658,882 ) (6,373,235 ) (13,032,117 ) Provision for income taxes — — — Net income / (loss) $ (6,658,882 ) $ (6,373,235 ) $ (13,032,117 ) Net income / (loss) per share, basic and diluted $ (0.81 ) (0.77 ) $ (1.58 ) Weighted average shares outstanding Basic 8,253,851 8,253,851 8,253,851 Diluted 8,253,851 8,253,851 8,253,851

ORGANIZATION AND SUMMARY OF S_3

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Apr. 10, 2019USD ($)	Apr. 30, 2019USD ($)	Apr. 30, 2017USD ($)	Jan. 31, 2017USD ($)	Jan. 31, 2012shares	Dec. 31, 2018USD ($)Itemshares	Dec. 31, 2017USD ($)shares	Dec. 31, 2016USD ($)
Net loss (income)						$ 8,743,593	$ (13,032,117)
Accumulated deficit						18,778,348	27,521,941
Allowance for doubtful accounts						$ 48,741	$ 59,703
Number of operating segments | Item						1
Antidilutive common share equivalents | shares						4,853,085	5,246,692
Cash and cash equivalents						$ 2,784,865	$ 1,017,299	$ 1,048,762
Decline in revenue from preceding period						13,468,106
Equity debt financing
Convertible debentures redeemed						6,500,000
Capitalized software development costs						960,157	694,914
Proceeds from the sale of stock			$ 4,566,405	$ 3,830,000			$ 4,020,401
Subsequent Event [Member]
Proceeds from the sale of stock	$ 6,200,000	$ 6,500,000
United States Treasury bills [Member]
Cash and cash equivalents						$ 2,723,264
Internally Developed Software [Member]
Intangible assets estimated useful life						3 years
Minimum [Member]
Property and equipment estimated useful life						3 years
Intangible assets estimated useful life						5 years
Maximum [Member]
Property and equipment estimated useful life						7 years
Intangible assets estimated useful life						6 years
Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration risk percentage						75.10%	59.50%
Social Reality Llc [Member]
Effective date of business acquisition					Jan. 1, 2012
Social Reality Llc [Member] | Class A and Class B Common Stock [Member]
Percentage ownership					100.00%
Shares issued in business acquisition | shares					2,465,753
SRAXmd [Member]
Consideration						$ 33,500,000

ACQUISITIONS AND DIVESTITURES_2

ACQUISITIONS AND DIVESTITURES (Narrative) (Details) - USD ($)	Aug. 06, 2018	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Gain on sale of assets		$ 22,108,028
SRAXmd [Member]
Business Acquisition [Line Items]
Asset sale	$ 52,500,000
Cash consideration	33,000,000
Equity isssuance	10,000,000
Earn-out provision upon the SRAXmd product line achieving certain gross profit thresholds	9,000,000
Purchase price of future release	762,500
Accounts receivable	3,536,503
Prepaid expense	216,479
Accounts payable	191,164
Additional accrued expense	333,014
Over-delivery of working capital	196,055
Contractual working capital	3,000,000
Advisory fees	1,709,500
Legal fees	351,089
Insurance premiums and escrow related fees	164,028
Transaction costs		$ 1,870,361
Gain on sale of assets	22,108,028
Net proceeds on closing of escrow	$ 22,980,824

ACQUISITIONS AND DIVESTITURES_3

ACQUISITIONS AND DIVESTITURES (Schedule of Gain on Sale of Assets) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Carrying amount of Assets Sold
Gain on Sale	$ 22,108,028
SRAXmd [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash Proceeds	32,966,303
Fair Value of Interest Retained
Carrying amount of Assets Sold
Fixed Assets	(117,000)
Working Capital	(3,228,803)
Transactions Fees & Sales Commissions	(7,512,472)
Gain on Sale	$ 22,108,028

ACQUISITIONS AND DIVESTITURES_4

ACQUISITIONS AND DIVESTITURES (Schedule of Income from Discontinued Operations) (Details) - SRAXmd [Member] - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue		$ 4,603,366	$ 6,306,613	$ 11,077,503
Cost of Sales		1,082,389	1,101,080	1,998,395
Gross Profit		$ 3,520,977	$ 5,205,533	$ 9,079,108
Gross Margin	0.00%	76.49%	82.54%	81.96%
General, Sales & Administrative expense		$ 1,438,957	$ 2,896,193	$ 2,028,407
Operating Income		$ 2,082,020	$ 2,309,340	$ 7,050,702

NOTES PAYABLE (Financing Agreem

NOTES PAYABLE (Financing Agreement with Victory Park Management, LLC) (Details) - USD ($)

Oct. 27, 2017

Aug. 22, 2016

Feb. 16, 2016

Jan. 26, 2016

Oct. 26, 2015

Jul. 06, 2015

Oct. 30, 2014

Dec. 31, 2018

Dec. 31, 2017

Jan. 24, 2018

Oct. 31, 2017

Dec. 31, 2016

Debt Instrument [Line Items]

Exercise price of warrants

$ 5

$ 10

$ 7.50

Amortization of debt issue costs

$ 1,026,220

$ 1,082,829

Costs related to agreement

582,392

Repayments of note payable

$ 6,545,157

3,996,928

PIK interest expense accrued to principal

Common Class A [Member]

Debt Instrument [Line Items]

Exercise price of warrants

$ 1.40

Financing Agreement [Member] | Victory Park Management, LLC [Member]

Debt Instrument [Line Items]

Interest rate (as a percent)

10.00%

10.00%

10.00%

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

4.00%

4.00%

Exercise price of warrants

$ 5

Percentage of revenue used as base to calculate purchase price

50.00%

Amount used as base to calculate purchase price

$ 1,567,612

$ 1,500,000

Amortization of debt issue costs

2,101,377

Costs related to agreement

$ 3,178,011

Maturity date

Dec. 31, 2016

Oct. 30, 2017

Oct. 30, 2017

Oct. 30, 2017

Oct. 30, 2017

PIK interest expense accrued to principal

$ 67,612

$ 67,612

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 (Financing Agre_2

NOTES PAYABLE (Financing Agreement with Fast Pay Partners, LLC) (Details) - Financing Agreement [Member] - Fast Pay Partners, LLC [Member] - USD ($)	1 Months Ended
	Apr. 30, 2018	Dec. 31, 2018
Debt Instrument [Line Items]
Notes issued		$ 106,920
Percentage of accounts receivable pledged	80.00%
Maximum amount of advances pledged	$ 4,000,000
Concentration limitation on percentage of debt from any single customer	25.00%
Concentration limitation on percentage of debt from larger customer	30.00%

NOTES PAYABLE (Secured Converti

NOTES PAYABLE (Secured Convertible Debentures, Net) (Details) - USD ($)

Apr. 10, 2019

Apr. 08, 2019

Apr. 02, 2019

Feb. 11, 2019

Oct. 31, 2017

Jan. 04, 2017

Dec. 29, 2016

Apr. 30, 2019

Sep. 30, 2018

Oct. 26, 2017

Apr. 30, 2017

Apr. 28, 2017

Apr. 21, 2017

Jan. 31, 2017

Dec. 31, 2018

Jan. 31, 2018

Dec. 31, 2018

Dec. 31, 2017

Jan. 24, 2018

Nov. 16, 2016

Sep. 19, 2016

Debt Instrument [Line Items]

Sale of common stock

$ 4,566,405

$ 3,830,000

$ 4,020,401

Stock issued for reimbursement of expenses, shares

100,000

Exercise price of warrant

$ 5

$ 5

$ 10

$ 7.50

Repayments of note payable

$ 6,545,157

$ 3,996,928

Initial derivative liability on issuance of debenture warrants

$ 0

0

Fair value of debenture warrants

4,323,499

4,323,499

7,256,864

Conversion of debentures

$ 300,000

$ 3,335,000

Interest expense on convertible debenture

764,090

Subsequent Event [Member]

Debt Instrument [Line Items]

Sale of common stock

$ 6,200,000

$ 6,500,000

Chardan Capital Markets, LLC [Member]

Debt Instrument [Line Items]

Fee percentage of proceeds

4.00%

Series A1 Warrants [Member]

Debt Instrument [Line Items]

Exercise price of warrant

$ 2.245

Risk-free interest rate

1.875%

1.875%

Expected term

5 years 6 months

5 years 6 months

Expected volatility

109.00%

109.00%

Dividend yield

0.00%

0.00%

0.00%

0.00%

Fair value of debenture warrants

$ 1,228,000

868,000

$ 868,000

$ 2,641,000

Series A1 Warrants [Member] | Minimum [Member]

Debt Instrument [Line Items]

Risk-free interest rate

2.73%

2.73%

Expected term

3 years 4 months 18 days

3 years 4 months 18 days

Expected volatility

164.00%

164.00%

Series A1 Warrants [Member] | Maximum [Member]

Debt Instrument [Line Items]

Risk-free interest rate

2.73%

2.73%

Expected term

4 years 4 months 18 days

4 years 4 months 18 days

Expected volatility

167.00%

167.00%

Warrant [Member]

Debt Instrument [Line Items]

Proceeds used to satisfy put obligation

2,500,000

Warrant [Member] | Chardan Capital Markets, LLC [Member]

Debt Instrument [Line Items]

Warrants to purchase shares of common stock, number of shares of common stock

160,000

Warrant [Member] | Aspenwood Capital [Member]

Debt Instrument [Line Items]

Exercise price of warrant

$ 3.75

Warrants to purchase shares of common stock, number of shares of common stock

23,337

Series B Warrants [Member]

Debt Instrument [Line Items]

Proceeds used to satisfy put obligation

2,500,000

Risk-free interest rate

2.00%

2.50%

Expected term

5 years

3 years 11 months 1 day

Expected volatility

110.00%

155.00%

Dividend yield

0.00%

0.00%

Fair value of debenture warrants

$ 3,038,344

$ 1,201,000

$ 1,201,000

Conversion of debentures, shares

1,090,862

Series B Warrants [Member] | April 21, 2022 [Member]

Debt Instrument [Line Items]

Warrant expired

277,500

Series B Warrants [Member] | October 27, 2022 [Member]

Debt Instrument [Line Items]

Warrant expired

813,362

Redemption Penalty Warrants [Member] | Subsequent Event [Member]

Debt Instrument [Line Items]

Percentage of prepayment penalty

2.00%

Common Class A [Member]

Debt Instrument [Line Items]

Stock issued, shares

761,905

100,000

100,000

Stock issued for reimbursement of expenses, shares

225,000

Exercise price of warrant

$ 1.40

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

Debt Instrument [Line Items]

Stock issued, shares

220,000

Common Class A [Member] | Chardan Capital Markets, LLC [Member]

Debt Instrument [Line Items]

Exercise price of warrant

$ 6.50

Warrants to purchase shares of common stock, number of shares of common stock

76,190

Common Class A [Member] | Series A1 Warrants [Member]

Debt Instrument [Line Items]

Exercise price of warrant

$ 6.70

Warrants to purchase shares of common stock, number of shares of common stock

380,953

Common Class A [Member] | Warrant [Member]

Debt Instrument [Line Items]

Interest rate

12.50%

Stock issued, shares

863,365

Exercise price of warrant

$ 3

$ 7.50

$ 5

Warrants to purchase shares of common stock, number of shares of common stock

400,000

642,000

Common Class A [Member] | Series B Warrants [Member]

Debt Instrument [Line Items]

Exercise price of warrant

$ 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 warrant

$ 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] | Chardan Capital Markets, LLC [Member]

Debt Instrument [Line Items]

Placement agent commissions - cash

$ 149,021

Securities Purchase Agreements [Member] | Chardan Capital Markets, LLC [Member] | PA Warrants [Member]

Debt Instrument [Line Items]

Stock issued, shares

160,000

Securities Purchase Agreements [Member] | Aspenwood Capital [Member]

Debt Instrument [Line Items]

Placement agent commissions - cash

$ 70,000

Securities Purchase Agreements [Member] | Aspenwood Capital [Member] | PA Warrants [Member]

Debt Instrument [Line Items]

Stock issued, shares

23,337

Securities Purchase Agreements [Member] | Warrant [Member]

Debt Instrument [Line Items]

Debenture principal amount

$ 5,180,157

Interest rate

12.50%

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] | Subsequent Event [Member]

Debt Instrument [Line Items]

Sale of common stock

$ 6,750,000

$ 1,105,333

Stock issued, shares

1,687,825

Warrants to purchase shares of common stock, number of shares of common stock

310,487

Securities Purchase Agreements [Member] | Common Class A [Member] | Colorado Financial Service Corporation [Member]

Debt Instrument [Line Items]

Exercise price of warrant

$ 3.75

Warrants to purchase shares of common stock, number of shares of common stock

7,700

Exercise period of warrants

5 years

Securities Purchase Agreements [Member] | Common Class A [Member] | Noble Capital Markets [Member]

Debt Instrument [Line Items]

Exercise price of warrant

$ 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 warrant

$ 3.75

Warrants to purchase shares of common stock, number of shares of common stock

100,000

Exercise period of warrants

5 years

Securities Purchase Agreements [Member] | Common Class A [Member] | Minimum [Member] | Subsequent Event [Member]

Debt Instrument [Line Items]

Exercise price of warrant

$ 3.56

Securities Purchase Agreements [Member] | Common Class A [Member] | Maximum [Member] | Subsequent Event [Member]

Debt Instrument [Line Items]

Exercise price of warrant

$ 7.50

Securities Purchase Agreements [Member] | Common Class A [Member] | Series A1 Warrants [Member] | Minimum [Member]

Debt Instrument [Line Items]

Exercise price of warrant

$ 1.40

Securities Purchase Agreements [Member] | Common Class A [Member] | Warrant [Member]

Debt Instrument [Line Items]

Warrants to purchase shares of common stock, number of shares of common stock

863,365

Exercise period of warrants

5 years

Convertible Debt [Member]

Debt Instrument [Line Items]

Debenture principal amount

$ 6,545,157

$ 6,545,157

Exercise price of warrant

$ 3

$ 3

SECURED CONVERTIBLE DEBENTURE_3

SECURED CONVERTIBLE DEBENTURES, NET (Narrative) (Details) - USD ($)

Jan. 04, 2017

Dec. 29, 2016

Nov. 29, 2018

Sep. 30, 2018

Oct. 26, 2017

Apr. 30, 2017

Jan. 31, 2017

Jan. 31, 2018

Dec. 31, 2018

Dec. 31, 2017

Jan. 24, 2018

Oct. 31, 2017

Debt Instrument [Line Items]

Proceeds from the sale of stock

$ 4,566,405

$ 3,830,000

$ 4,020,401

Stock issued for reimbursement of expenses, shares

100,000

Exercise price of warrants

$ 5

$ 10

$ 7.50

Common Stock, shares authorized

259,000,000

259,000,000

Amortization of debt discount and deferred financing costs

$ 1,026,220

$ 1,082,829

Value assigned to conversion feature

1,405,540

Chardan Capital Markets, LLC [Member]

Debt Instrument [Line Items]

Fee percentage of proceeds

4.00%

Series A1 Debentures [Member]

Debt Instrument [Line Items]

Debenture principal amount

3,408,629

Proceeds from the sale of stock

4,639,629

Series A1 Warrants [Member]

Debt Instrument [Line Items]

Debenture principal amount

1,288,000

Series A2 Warrants [Member]

Debt Instrument [Line Items]

Debenture principal amount

2,856,108

Series A2 Debentures [Member]

Debt Instrument [Line Items]

Debenture principal amount

1,405,540

Proceeds from the sale of stock

4,261,684

Series B Warrants [Member]

Debt Instrument [Line Items]

Proceeds used to satisfy put obligation

2,500,000

Series A1 and A2 Debentures [Member]

Debt Instrument [Line Items]

Debenture principal amount

$ 6,545,157

Percentage of conversion shares issuable

50.00%

Percentage of prepayment penalty

10.00%

Series B1 Warrants [Member]

Debt Instrument [Line Items]

Exercise price of warrants

$ 3

Exercise period of warrants

5 years

5 years

Series B1 Warrants [Member] | Minimum [Member]

Debt Instrument [Line Items]

Exercise price of warrants

$ 1.40

Warrant One [Member]

Debt Instrument [Line Items]

Warrants to purchase shares of common stock, number of shares of common stock

277,500

Maturity date

Apr. 21, 2022

Warrant One [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

129,176

Warrant Two [Member]

Debt Instrument [Line Items]

Warrants to purchase shares of common stock, number of shares of common stock

813,362

Maturity date

Oct. 27, 2022

Warrant Two [Member] | Chardan Capital Markets, LLC [Member]

Debt Instrument [Line Items]

Exercise price of warrants

$ 4.49

Warrants to purchase shares of common stock, number of shares of common stock

54,161

Common Class A [Member]

Debt Instrument [Line Items]

Stock issued, shares

761,905

100,000

100,000

Stock issued for reimbursement of expenses, shares

225,000

Exercise price of warrants

$ 1.40

Conversion price

$ 1.40

Common Stock, shares authorized

250,000,000

250,000,000

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 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

Common Class A [Member] | Series B1 Warrants [Member]

Debt Instrument [Line Items]

Warrants to purchase shares of common stock, number of shares of common stock

1,090,862

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] | Chardan Capital Markets, LLC [Member]

Debt Instrument [Line Items]

Placement agent commissions - cash

$ 149,021

Securities Purchase Agreements [Member] | Aspenwood [Member]

Debt Instrument [Line Items]

Placement agent commissions - cash

70,000

Securities Purchase Agreements [Member] | Series A1 Debentures [Member] | Greenshoe [Member]

Debt Instrument [Line Items]

Debenture principal amount

$ 2,000,000

Securities Purchase Agreements [Member] | Series A2 Warrants [Member] | Greenshoe [Member]

Debt Instrument [Line Items]

Stock issued, shares

630,030

Exercise price of warrants

$ 3

Warrants to purchase shares of common stock, number of shares of common stock

333,335

Securities Purchase Agreements [Member] | Series A2 Warrants [Member] | Minimum [Member] | Greenshoe [Member]

Debt Instrument [Line Items]

Exercise price of warrants

$ 1.40

Securities Purchase Agreements [Member] | Series A2 Debentures [Member]

Debt Instrument [Line Items]

Debenture principal amount

$ 5,180,157

Interest rate

12.50%

Maturity date

Apr. 21, 2020

Securities Purchase Agreements [Member] | Series A2 Debentures [Member] | Greenshoe [Member]

Debt Instrument [Line Items]

Debenture principal amount

$ 3,180,157

Securities Purchase Agreements [Member] | PA Warrants [Member] | Chardan Capital Markets, LLC [Member]

Debt Instrument [Line Items]

Stock issued, shares

160,000

Exercise price of warrants

$ 3.75

Exercise period of warrants

5 years 6 months

Securities Purchase Agreements [Member] | PA Warrants [Member] | Aspenwood [Member]

Debt Instrument [Line Items]

Stock issued, shares

23,337

Exercise price of warrants

$ 4.49

Exercise period of warrants

5 years 6 months

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

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

Securities Purchase Agreements [Member] | Common Class A [Member] | Series A1 Debentures [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

Right to purchase an additional stock

$ 3,000,000

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%

Percentage of conversion shares issuable

50.00%

Securities Purchase Agreements [Member] | Common Class A [Member] | Series A1 Warrants [Member]

Debt Instrument [Line Items]

Exercise price of warrants

$ 3

Securities Purchase Agreements [Member] | Common Class A [Member] | Series A1 Warrants [Member] | Minimum [Member]

Debt Instrument [Line Items]

Exercise price of warrants

$ 1.40

Securities Purchase Agreements [Member] | Common Class A [Member] | Series A2 Warrants [Member]

Debt Instrument [Line Items]

Warrants to purchase shares of common stock, number of shares of common stock

863,365

SECURED CONVERTIBLE DEBENTURE_4

SECURED CONVERTIBLE DEBENTURES, NET (Schedule of Secured Convertible Debentures) (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Convertible Debt [Abstract]
Principal Balance		$ 6,845,157
Debt discount		(4,107,792)
Debt issuance costs		(1,026,219)
Convertible notes, net		$ 1,711,146

WARRANT LIABILITIES (Narrative)

WARRANT LIABILITIES (Narrative) (Details) - USD ($)	Jan. 04, 2017	Nov. 29, 2018	Apr. 30, 2017	Apr. 28, 2017	Apr. 21, 2017	Dec. 31, 2018	Dec. 31, 2017
Derivative [Line Items]
Fair value of warrants						$ 4,323,499	$ 7,256,864
Repurchase of warrant							$ 1,500,000
Series A Warrants [Member]
Derivative [Line Items]
Risk-free interest rate	2.00%					2.46%	2.20%
Expected term	5 years 6 months					3 years	4 years
Expected volatility	110.00%					167.00%	164.00%
Dividend yield	0.00%					0.00%	0.00%
Fair value of warrants	$ 3,038,344					$ 496,000	$ 2,026,000
Series B Warrants [Member]
Derivative [Line Items]
Risk-free interest rate	2.00%					2.50%
Expected term	5 years					3 years 11 months 1 day
Expected volatility	110.00%					155.00%
Dividend yield	0.00%					0.00%
Fair value of warrants	$ 3,038,344					$ 1,201,000
Repurchase of warrant			$ 2,500,000
Loss on repurchase of stock			$ 2,053,975
Change in fair value of derivative liability						$ 1,529,771
Series A1 Warrants [Member]
Derivative [Line Items]
Risk-free interest rate				1.875%	1.875%
Expected term				5 years 6 months	5 years 6 months
Expected volatility				109.00%	109.00%
Dividend yield				0.00%	0.00%	0.00%	0.00%
Fair value of warrants	$ 1,228,000					$ 868,000	$ 2,641,000
Change in fair value of derivative liability						$ (1,774,000)	$ 1,419,000
Series A1 Warrants [Member] | Minimum [Member]
Derivative [Line Items]
Risk-free interest rate						2.73%	2.73%
Expected term						3 years 4 months 18 days	3 years 4 months 18 days
Expected volatility						164.00%	164.00%
Series A1 Warrants [Member] | Maximum [Member]
Derivative [Line Items]
Risk-free interest rate						2.73%	2.73%
Expected term						4 years 4 months 18 days	4 years 4 months 18 days
Expected volatility						167.00%	167.00%
Series A2 Warrants [Member]
Derivative [Line Items]
Risk-free interest rate	2.03%
Expected term	5 years 6 months
Expected volatility	122.00%
Dividend yield	0.00%					0.00%	0.00%
Fair value of warrants	$ 2,856,000					$ 1,446,000	$ 4,615,000
Change in fair value of derivative liability						$ (3,170,000)	$ 1,759,000
Series A2 Warrants [Member] | Minimum [Member]
Derivative [Line Items]
Risk-free interest rate						2.20%	2.20%
Expected term						3 years 10 months 17 days	3 years 10 months 17 days
Expected volatility						158.00%	158.00%
Series A2 Warrants [Member] | Maximum [Member]
Derivative [Line Items]
Risk-free interest rate						2.46%	2.46%
Expected term						4 years 10 months 17 days	4 years 10 months 17 days
Expected volatility						161.00%	161.00%
Series B1 Warrants [Member]
Derivative [Line Items]
Exercise period of warrants		5 years				5 years
Risk-free interest rate	2.90%
Expected term	5 years
Expected volatility	162.00%
Dividend yield	0.00%
Fair value of warrants	$ 3,240,000

WARRANT LIABILITIES (Summary of

WARRANT LIABILITIES (Summary of Warrant Liabilities) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Outstanding, beginning of the period	$ 11,156,001
Initial derivative liability on issuance of warrants	3,240,127	7,453,615
Change in fair value	(8,953,933)	4,134,166
Less accretion and conversion of debenture warrants		(431,780)
Warrant liabilities	$ 5,442,195	$ 11,156,001

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details)

Dec. 16, 2018USD ($)$ / sharesshares

Sep. 11, 2018USD ($)$ / sharesshares

Jan. 24, 2018$ / sharesshares

Oct. 31, 2017USD ($)$ / sharesshares

Jan. 04, 2017USD ($)$ / sharesshares

Jan. 02, 2017USD ($)shares

Dec. 29, 2016USD ($)$ / sharesshares

Sep. 19, 2016USD ($)$ / sharesshares

Feb. 23, 2016shares

Oct. 31, 2018shares

Sep. 30, 2018USD ($)$ / sharesshares

Aug. 31, 2018USD ($)shares

Jul. 31, 2018USD ($)$ / sharesshares

Jun. 30, 2018$ / sharesshares

Mar. 31, 2018shares

Jan. 31, 2018USD ($)shares

Sep. 15, 2017USD ($)shares

Aug. 31, 2017shares

Apr. 30, 2017USD ($)

Apr. 28, 2017

Apr. 21, 2017

Mar. 31, 2017USD ($)shares

Feb. 28, 2017USD ($)shares

Jan. 31, 2017USD ($)

Oct. 31, 2016$ / sharesshares

Jan. 31, 2018USD ($)shares

Dec. 31, 2018USD ($)Item$ / sharesshares

Dec. 31, 2017USD ($)$ / sharesshares

Aug. 06, 2018shares

Nov. 16, 2016USD ($)$ / sharesshares

Class of Stock [Line Items]

Preferred Stock, shares authorized

50,000,000

50,000,000

Preferred Stock, par value per share | $ / shares

$ 0.001

$ 0.001

Common Stock, shares authorized

259,000,000

259,000,000

Proceeds from the sale of stock | $

Exercise price of warrant | $ / shares

$ 7.50

$ 5

$ 10

Common stock issued for services | $

$ 1,009,500

$ 879,500

Common stock issued for services, shares

100,000

Common stock to be issued | $

879,500

Repayments of note payable | $

6,545,157

3,996,928

Repurchase of warrant | $

1,500,000

Proceeds from the issuance of common stock units | $

$ 4,566,405

$ 3,830,000

$ 4,020,401

Debt conversion converted amount | $

$ 150,000

$ 150,000

Debenture financing exercised

100,000

226,402

1,223,874

Proceeds from warrants exercised | $

$ 100,000

$ 1,085,004

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

Employee Stock Option [Member]

Class of Stock [Line Items]

Awards forfeited

72,498

161,500

Stock-based compensation expense | $

$ 667,749

$ 992,732

Warrant [Member] | Chardan Capital Markets, LLC [Member]

Class of Stock [Line Items]

Award term

5 years 6 months

Warrants to purchase shares of common stock, number of shares total

160,000

Warrant [Member] | Aspenwood Capital [Member]

Class of Stock [Line Items]

Warrants to purchase shares of common stock, number of shares total

23,337

Exercise price of warrant | $ / shares

$ 3.75

Series B Warrants [Member]

Class of Stock [Line Items]

Share-based compensation, risk free interest rate

2.00%

2.50%

Share-based compensation, expected dividend yield

0.00%

0.00%

Share-based compensation, expected volatility rate

110.00%

155.00%

Share-based compensation, expected life in years

5 years

3 years 11 months 1 day

Repurchase of warrant | $

$ 2,500,000

Series A1 Warrants [Member]

Class of Stock [Line Items]

Share-based compensation, risk free interest rate

1.875%

1.875%

Share-based compensation, expected dividend yield

0.00%

0.00%

0.00%

0.00%

Share-based compensation, expected volatility rate

109.00%

109.00%

Share-based compensation, expected life in years

5 years 6 months

5 years 6 months

Exercise price of warrant | $ / shares

$ 2.245

Series A1 Warrants [Member] | Minimum [Member]

Class of Stock [Line Items]

Share-based compensation, risk free interest rate

2.73%

2.73%

Share-based compensation, expected volatility rate

164.00%

164.00%

Share-based compensation, expected life in years

3 years 4 months 18 days

3 years 4 months 18 days

Series A1 Warrants [Member] | Maximum [Member]

Class of Stock [Line Items]

Share-based compensation, risk free interest rate

2.73%

2.73%

Share-based compensation, expected volatility rate

167.00%

167.00%

Share-based compensation, expected life in years

4 years 4 months 18 days

4 years 4 months 18 days

Warrant One [Member]

Class of Stock [Line Items]

Warrants to purchase shares of common stock, number of shares total

277,500

Warrant One [Member] | Chardan Capital Markets, LLC [Member]

Class of Stock [Line Items]

Warrants to purchase shares of common stock, number of shares total

129,176

Exercise price of warrant | $ / shares

$ 3.75

Warrant Two [Member]

Class of Stock [Line Items]

Warrants to purchase shares of common stock, number of shares total

813,362

Warrant Two [Member] | Chardan Capital Markets, LLC [Member]

Class of Stock [Line Items]

Warrants to purchase shares of common stock, number of shares total

54,161

Exercise price of warrant | $ / shares

$ 4.49

Three Employees [Member] | Employee Stock Option [Member]

Class of Stock [Line Items]

Granted during the period

146,000

Share-based compensation, vesting period

3 years

Granted during the period, exercise price | $ / shares

$ 7.50

Award term

5 years

Stock options granted, grant date fair value per option | $ / shares

$ 4.98

Share-based compensation, risk free interest rate

1.125%

Share-based compensation, expected dividend yield

0.00%

Share-based compensation, expected volatility rate

112.00%

Share-based compensation, expected life in years

5 years

Chief Financial Officer [Member]

Class of Stock [Line Items]

Value of warrants at date of grant | $

$ 220,832

Exercise price of warrant | $ / shares

$ 2.56

Debenture financing exercised

176,400

Joseph P. Hannan [Member]

Class of Stock [Line Items]

Award term

3 years

Value of warrants at date of grant | $

$ 488,106

Exercise price of warrant | $ / shares

$ 4.20

Debenture financing exercised

250,000

Share cancelled

229,166

Series 1 Preferred Stock [Member]

Class of Stock [Line Items]

Preferred Stock, shares authorized

200,000

Common Class A [Member]

Class of Stock [Line Items]

Common Stock, shares authorized

250,000,000

250,000,000

Common Stock, par value per share | $ / shares

$ 0.001

$ 0.001

Voting rights per share | Item

1

Proceeds from the sale of stock | $

$ 3,980,001

Proceeds from the sale of stock, shares

761,905

100,000

100,000

Exercise price of warrant | $ / shares

1.40

Common stock issued for services | $

$ 1,137,650

Common stock issued for services, shares

225,000

Share price | $ / shares

3

Shares issued for stock awards that have vested

51,667

Conversion price | $ / shares

$ 1.40

Debt conversion shares issued

655,000

Debt conversion converted amount | $

$ 218,334

Debenture financing exercised

100,000

Proceeds from warrants exercised | $

$ 300,000

Common Class A [Member] | Erin DeRuggiero [Member]

Class of Stock [Line Items]

Repurchas of shares

514,000

Common Class A [Member] | Compensation 2016 Plan [Member]

Class of Stock [Line Items]

Number of shares authorized

600,000

Threshhold of ownership

10.00%

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] | Chardan Capital Markets, LLC [Member]

Class of Stock [Line Items]

Award term

5 years 6 months

Warrants to purchase shares of common stock, number of shares total

76,190

Exercise price of warrant | $ / shares

$ 6.50

Common Class A [Member] | Kathy Ireland Worldwide LLC [Member]

Class of Stock [Line Items]

Common stock issued for services | $

$ 678,000

Common stock issued for services, shares

100,000

Common Class A [Member] | Mr. Derek J. Ferguson [Member]

Class of Stock [Line Items]

Common stock issued for services | $

$ 12,500

Common stock issued for services, shares

3,858

Common Class A [Member] | Mr. Steven Antebi [Member]

Class of Stock [Line Items]

Common stock issued for services | $

$ 540,000

Common stock issued for services, shares

150,000

Common Class A [Member] | Mr. Robert Jordan [Member]

Class of Stock [Line Items]

Common stock issued for services | $

$ 12,500

Common stock issued for services, shares

6,510

Common Class A [Member] | Al & J Media, Inc [Member]

Class of Stock [Line Items]

Common stock issued for services | $

$ 97,500

Common stock issued for services, shares

75,000

Common Class A [Member] | Minimum [Member]

Class of Stock [Line Items]

Share price | $ / shares

$ 10

Common Class A [Member] | Warrant [Member]

Class of Stock [Line Items]

Proceeds from the sale of stock | $

$ 5,180,158

Proceeds from the sale of stock, shares

863,365

Value of warrants at date of grant | $

$ 1,390,264

Warrants to purchase shares of common stock, number of shares total

642,000

400,000

Exercise price of warrant | $ / shares

$ 3

$ 5

$ 7.50

Stock-based compensation expense | $

$ 274,634

Interest rate

12.50%

Common Class A [Member] | Series B Warrants [Member]

Class of Stock [Line Items]

Award term

5 years

Warrants to purchase shares of common stock, number of shares total

380,953

Exercise price of warrant | $ / shares

$ 7

Repurchase of warrant | $

$ 2,500,000

Common Class A [Member] | Series B Warrants [Member] | Minimum [Member]

Class of Stock [Line Items]

Exercise price of warrant | $ / shares

$ 1.20

Share price | $ / shares

$ 5.25

Common Class A [Member] | Series B Warrants [Member] | Maximum [Member]

Class of Stock [Line Items]

Cashless payment amount | $

$ 2,500,000

Common Class A [Member] | Series A1 Warrants [Member]

Class of Stock [Line Items]

Award term

5 years

Warrants to purchase shares of common stock, number of shares total

380,953

Exercise price of warrant | $ / shares

$ 6.70

Common Class A [Member] | Steve Antebi [Member] | Warrant [Member]

Class of Stock [Line Items]

Warrants to purchase shares of common stock, number of shares total

200,000

Common Class A [Member] | Consultant [Member] | Warrant [Member]

Class of Stock [Line Items]

Warrants to purchase shares of common stock, number of shares total

200,000

Advances to consultants | $

$ 100,000

Common Class A [Member] | Chief Financial Officer [Member] | Compensation 2016 Plan [Member]

Class of Stock [Line Items]

Stock based compensation, shares

70,409

Common Class A [Member] | Colleen DiClaudio [Member] | Compensation 2016 Plan [Member]

Class of Stock [Line Items]

Debt conversion shares issued

7,813

Debt conversion converted amount | $

$ 10,000

Common Class A [Member] | Hardy Thomas [Member] | Compensation 2016 Plan [Member]

Class of Stock [Line Items]

Debt conversion shares issued

7,195

Debt conversion converted amount | $

$ 10,000

Common Class A [Member] | William Packer [Member] | Compensation 2016 Plan [Member]

Class of Stock [Line Items]

Debt conversion shares issued

3,774

Debt conversion converted amount | $

$ 10,000

Common Class A [Member] | Marc Savas and Malcolm CasSelle [Member] | Compensation 2016 Plan [Member]

Class of Stock [Line Items]

Debt conversion shares issued

3,774

Debt conversion converted amount | $

$ 10,000

Common Class A [Member] | Employee [Member]

Class of Stock [Line Items]

Proceeds from the sale of stock, shares

3,334

6,667

Common Class A [Member] | Employee [Member] | Compensation 2016 Plan [Member]

Class of Stock [Line Items]

Proceeds from the sale of stock, shares

122,950

Common Class A [Member] | Joseph P. Hannan [Member]

Class of Stock [Line Items]

Share cancelled

50,000

Common Class A [Member] | Joseph P. Hannan [Member] | Compensation 2016 Plan [Member]

Class of Stock [Line Items]

Proceeds from the sale of stock, shares

50,000

Common Class A [Member] | Joseph P. Hannan [Member]

Class of Stock [Line Items]

Share cancelled

23,800

Common Class B [Member]

Class of Stock [Line Items]

Common Stock, shares authorized

9,000,000

9,000,000

Common Stock, par value per share | $ / shares

$ 0.001

$ 0.001

Voting rights per share | Item

10

Series A common stock purchase warrants [Member]

Class of Stock [Line Items]

Exercise price of warrant | $ / shares

$ 3

Debenture financing exercised

83,334

Proceeds from warrants exercised | $

$ 250,002

Series A common stock purchase warrants [Member] | Investor One [Member]

Class of Stock [Line Items]

Exercise price of warrant | $ / shares

$ 3

$ 3

$ 2.245

Debenture financing exercised

16,667

16,667

44,815

Proceeds from warrants exercised | $

$ 50,000

$ 50,000

PROPERTY AND EQUIPMENT (Schedul

PROPERTY AND EQUIPMENT (Schedule of Property and equipment) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Office equipment	$ 332,932	$ 251,415
Accumulated depreciation	(140,867)	(96,869)
Property and equipment, net	192,065	154,546
Depreciation expense	$ 43,999	$ 22,908

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 723,823	$ 505,712
2019	858,041
2020	737,648
2021	166,916
Total	1,762,605
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense	51,422	151,200
Non-compete agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense	121,527	677,083
Internally Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense	365,266	$ 146,181
Acquired Software [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 151,200

INTANGIBLE ASSETS (Schedule of

INTANGIBLE ASSETS (Schedule of Intangible assets) (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Intangible assets	$ 4,186,170	$ 3,377,209
Accumulated amortization	(2,423,865)	(1,734,449)
Carrying value	1,762,605	1,642,760
Non-compete agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	1,250,000	1,250,000
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	756,000	756,000
Acquired Software [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	617,069	617,069
Internally Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	$ 1,563,401	$ 754,140

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($)	Sep. 11, 2018	Apr. 02, 2018	Mar. 20, 2018	Dec. 31, 2018
Erin DeRuggiero [Member]
Related Party Transaction [Line Items]
Amount paid to related party			$ 5,200,000
Erin DeRuggiero [Member] | Common Class A [Member]
Related Party Transaction [Line Items]
Shares repurchased			514,000
Kristoffer Nelson, Chief Operating Officer [Member] | Common Stock Purchase Warrant [Member]
Related Party Transaction [Line Items]
Options granted		100,000
Price per share		$ 5.78
Vesting term		3 years
Expected term		3 years
Joseph P. Hannan, Chief Financial Officer [Member] | Common Stock Purchase Warrant [Member]
Related Party Transaction [Line Items]
Options granted	250,000
Price per share	$ 4.20
Vesting term	3 years
Expected term	3 years
Mr. Hannan's, Chief Financial Officer [Member] | Common Stock Purchase Warrant [Member]
Related Party Transaction [Line Items]
Option Expired				234,375

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Accounts Payable and Accrued Liabilities [Abstract]
Accounts payable, trade	$ 2,517,749	$ 2,858,871
Accrued expenses	256,008	1,800,621
Accrued compensation	722,010	256,164
Accrued commissions	79,158	95,159
Accounts payable and accrued expenses	$ 3,574,926	$ 5,010,815

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details)	12 Months Ended
	Dec. 31, 2018USD ($)
Income Tax Disclosure [Abstract]
Increase (decrease) in valuation allowance	$ 1,221,226
Federal net operating losses carryforwards	12,806,705
State net operating losses carryforwards	$ 15,752,351
Operating loss carry-forward expiration dates, Federal	Dec. 31, 2032
Operating loss carry-forward expiration dates, State and Local	Dec. 31, 2032
Unrecognized tax benefits	$ 0
Accruals for interest and penalties related to unrecognized tax benefits	$ 0

INCOME TAXES (Schedule of Incom

INCOME TAXES (Schedule of Income Tax Expense (Benefit)) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Current
Federal
State
Subtotal
Valuation allowance
Total
Deferred
Federal	(1,301,486)	543,682
State	(700,900)	(287,649)
Subtotal	(2,002,386)	256,033
Valuation allowance	2,002,386	(256,033)
Total
Total
Federal	(1,301,486)	543,682
State	(700,900)	(287,649)
Subtotal	(2,002,386)	256,033
Valuation allowance	2,002,386	(256,033)
Total

INCOME TAXES (Schedule of Effec

INCOME TAXES (Schedule of Effective tax rate) (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Taxes calculated at federal rate	21.00%	34.00%
State income tax, net of federal benefit	(1.90%)	1.40%
Stock based compensation	1.40%
Permanent Differences	1.00%	(5.00%)
Change in Valuation Allowance	13.90%	2.00%
Fair market adjustment derivatives	(21.50%)	(10.80%)
Prior year True-ups	(14.90%)	1.30%
True-up to deferred tax rate		(17.90%)
Other adjustments	1.00%	(5.00%)
Provision for income taxes

INCOME TAXES (Schedule of Defer

INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Deferred Tax Assets
Net operating loss carryforwards	$ 2,914,731	$ 4,156,406
Fixed assets	(37,801)
Accrued interest
Intangibles
Stock based compensation	430,907	579,085
Other accruals	24,390	53,185
Total Deferred Tax Assets	3,332,227	4,788,677
Deferred Tax Liabilities
Stock based compensation
Intangibles	(249,530)	(482,121)
Prepaid expenses	(12,620)	(14,623)
Total Deferred Tax Liabilities	(262,150)	(496,744)
Net Deferred Tax Assets
Net Deferred Tax Assets	3,070,707	4,291,933
Valuation Allowance	(3,070,707)	(4,291,933)
Net deferred tax / (liabilities)

STOCK OPTIONS, AWARDS AND WAR_3

STOCK OPTIONS, AWARDS AND WARRANTS (Narrative) (Details) - USD ($)	Feb. 23, 2016	Dec. 31, 2018	Dec. 31, 2017	Nov. 05, 2014	Jan. 31, 2012
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining life, outstanding		3 years 2 months 12 days
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value, exercisable		$ 74,425
Average remaining contractual life outstanding		2 years 9 months 18 days
Average remaining contractual life exercisable		2 years 10 months 25 days
Compensation cost related to unvested employee options not yet recognized		$ 356,852	$ 583,412
Unrecognized compensation cost		0	$ 162,741
Options expected to recognize		$ 0
Equity Compensation 2012 Plan [Member] | Common Class A [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized					600,000
Equity Compensation 2014 Plan [Member] | Common Class A [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized				600,000
Equity Compensation 2016 Plan [Member] | Common Class A [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	600,000
Minimum percentage of fair market value	100.00%
Threshhold of employee ownership for increase in fair market value and decrease in maximum life	10.00%
Minimum percentage of fair market value for eligible employee	110.00%
Maximum fair market value underlying options exercisable by any option holder during any calendar year	$ 100,000
Maximum option life	10 years
Maximum option life for 10% holder	5 years

STOCK OPTIONS, AWARDS AND WAR_4

STOCK OPTIONS, AWARDS AND WARRANTS (Summary of Stock Options Activity) (Details) - Employee Stock Option [Member] - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Options
Outstanding at beginning of the period	414,300	575,800
Granted during the period	480,236
Exercised during the period
Forfeited during the period	(366,874)	(161,500)
Outstanding at end of the period	537,662	414,300
Exercisable at end of the period	331,993	288,630
Weighted Average Exercise Price
Outstanding at beginning of the period	$ 6.97	$ 6.97
Granted during the period	3.57
Exercised during the period
Forfeited during the period	4.84	7.26
Outstanding at end of the period	5.94	6.97
Exercisable at end of the period	$ 6.8	$ 6.65

STOCK OPTIONS, AWARDS AND WAR_5

STOCK OPTIONS, AWARDS AND WARRANTS (Summary of Common Stock Award Activity) (Details) - Common Stock Awards [Member] - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Activity, number of shares:
Outstanding, beginning of the period	54,669	116,666
Granted during the period
Vested during the period	(53,334)	(55,998)
Forfeited during the period	(1,335)	(6,000)
Unvested at the end of the period		54,669
Unrecognized compensation cost	$ 0	$ 162,741

STOCK OPTIONS, AWARDS AND WAR_6

STOCK OPTIONS, AWARDS AND WARRANTS (Summary of Stock Warrants Activity) (Details) - Warrant [Member] - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Warrant activity, number of shares:
Outstanding at beginning of the period	2,485,005	2,976,863
Granted during the period	2,162,058	2,121,433
Exercised during the period	(95,238)	(428,469)
Forfeited during the period	(226,402)	(2,184,822)
Outstanding at the end of period	4,325,423	2,485,005
Exercisable at end of the period	4,325,423	2,485,005
Warrant activity, weighted average exercise price:
Outstanding at beginning of the period	$ 5.09	$ 6.45
Granted during the period	3	3.73
Exercised during the period	2.25	3
Forfeited during the period	6.95	6.04
Outstanding at end of the period	5.05	5.09
Exercisable at end of the period	$ 5.05	$ 5.09

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 277,801	$ 211,680
For the year ended:
12/31/2019	163,218
12/31/2020	163,218
12/31/2021	163,218
12/31/2022	163,218
12/31/2023	133,295
Total	$ 786,167

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Social Reality Llc [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity method investment	30.00%
Fair value of entity	$ 0
Senior Secured Convertible Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value		$ 6,845,147

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debenture warrant liability	$ 4,323,499	$ 7,256,864
Leapfrog warrant liability	622,436	1,873,107
Derivative liability	496,260	2,026,031
Put liability
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debenture warrant liability	4,323,499	7,256,863
Leapfrog warrant liability	622,436	1,873,107
Derivative liability	496,260	2,026,031
Put liability
Total liabilities	5,442,195	11,156,001
Total assets	2,723,264
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets
Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	2,723,264
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debenture warrant liability
Leapfrog warrant liability
Derivative liability
Put liability
Total liabilities
Total assets	2,723,264
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	2,723,264
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debenture warrant liability
Leapfrog warrant liability
Derivative liability
Put liability
Total liabilities
Total assets
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debenture warrant liability	4,323,499	7,256,863
Leapfrog warrant liability	622,436	1,873,107
Derivative liability	496,260	2,026,031
Put liability
Total liabilities	5,442,195	11,156,001
Total assets
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets

FAIR VALUE OF FINANCIAL INSTR_5

FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Derivative and Warrant Liability Measured on Recurring Basis) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Outstanding, beginning of the period	$ 11,156,001
Initial derivative liability on issuance of warrants	3,240,127	7,453,615
Change in fair value	(8,953,933)	4,134,166
Less accretion and conversion of debenture warrants		(431,780)
Warrant liabilities	$ 5,442,195	$ 11,156,001

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)

Apr. 10, 2019

Apr. 08, 2019

Apr. 02, 2019

Jan. 04, 2017

Apr. 30, 2019

Sep. 30, 2018

Apr. 30, 2017

Jan. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

Jan. 24, 2018

Oct. 31, 2017

Subsequent Event [Line Items]

Proceeds from the sale of stock

$ 4,566,405

$ 3,830,000

$ 4,020,401

Exercise price of warrants

$ 5

$ 10

$ 7.50

Subsequent Event [Member]

Subsequent Event [Line Items]

Proceeds from the sale of stock

$ 6,200,000

$ 6,500,000

Sale of non-performing receivable

$ 567,977

Subsequent Event [Member] | Customer [Member]

Subsequent Event [Line Items]

Sale of non-performing receivable

150,000

Subsequent Event [Member] | Gross [Member]

Subsequent Event [Line Items]

Sale of non-performing receivable

$ 417,977

Common Class A [Member]

Subsequent Event [Line Items]

Stock issued

761,905

100,000

100,000

Exercise price of warrants

$ 1.40

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

Subsequent Event [Line Items]

Stock issued

220,000

Securities Purchase Agreements [Member] | Common Class A [Member] | Subsequent Event [Member]

Subsequent Event [Line Items]

Stock issued

1,687,825

Proceeds from the sale of stock

$ 6,750,000

$ 1,105,333

Warrants to purchase shares of common stock, number of shares of common stock

310,487

Securities Purchase Agreements [Member] | Common Class A [Member] | Subsequent Event [Member] | Maximum [Member]

Subsequent Event [Line Items]

Exercise price of warrants

$ 7.50

Securities Purchase Agreements [Member] | Common Class A [Member] | Subsequent Event [Member] | Minimum [Member]

Subsequent Event [Line Items]

Exercise price of warrants

$ 3.56

Restatement (Summary of Restate

Restatement (Summary of Restatement Consolidated Balance Sheet) (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 2,784,865	$ 1,017,299	$ 1,048,762
Accounts receivable, net	1,828,940	4,348,305
Prepaid expenses	466,823	468,336
Other current assets	387,085	300,898
Total current assets	5,467,713	6,134,838
Property and equipment, net	192,065	154,546
Goodwill	15,644,957	15,644,957
Intangible assets, net	1,762,605	1,642,760
Other assets	51,153	28,598
Total assets	23,118,493	23,605,699
Current liabilities:
Accounts payable and accrued expenses	3,574,926	5,010,815
Debenture warrant liability	4,323,499	7,256,864
Leapfrog warrant liability	622,436	1,873,107
Derivative liability	496,260	2,026,031
Put liability
Total current liabilities	9,017,121	16,166,817
Secured convertible debentures, net		1,524,592
Total liabilities	9,017,121	17,691,409
Commitments and contingencies (Note 11)
Stockholders' equity:
Preferred stock, authorized 50,000,000 shares, $0.001 par value, no shares issued or outstanding at December 31, 2018 and 2017, respectively
Common stock to be issued		879,500
Additional paid in capital	32,869,611	32,546,820
Accumulated deficit	(18,778,348)	(27,521,941)
Total stockholders' equity	14,101,372	5,914,290	$ 8,824,250
Total liabilities and stockholders' equity	23,118,493	23,605,699
Common Class A [Member]
Stockholders' equity:
Common stock	10,109	9,911
Common Class B [Member]
Stockholders' equity:
Common stock
Previously Reported [Member]
Current assets:
Cash and cash equivalents		1,017,299
Accounts receivable, net		4,348,305
Prepaid expenses		468,336
Other current assets		300,898
Total current assets		6,134,838
Property and equipment, net		154,546
Goodwill		15,644,957
Intangible assets, net		1,642,760
Other assets		28,598
Total assets		23,605,699
Current liabilities:
Accounts payable and accrued expenses		5,010,815
Debenture warrant liability
Leapfrog warrant liability
Derivative liability
Put liability
Total current liabilities		5,010,815
Secured convertible debentures, net		1,711,146
Total liabilities		6,721,961
Commitments and contingencies (Note 11)
Stockholders' equity:
Preferred stock, authorized 50,000,000 shares, $0.001 par value, no shares issued or outstanding at December 31, 2018 and 2017, respectively
Common stock to be issued		879,500
Additional paid in capital		37,143,033
Accumulated deficit		(21,148,706)
Total stockholders' equity		16,883,738
Total liabilities and stockholders' equity		23,605,699
Previously Reported [Member] | Common Class A [Member]
Stockholders' equity:
Common stock		9,911
Previously Reported [Member] | Common Class B [Member]
Stockholders' equity:
Common stock
Adjustment [Member]
Current assets:
Cash and cash equivalents
Accounts receivable, net
Prepaid expenses
Other current assets
Total current assets
Property and equipment, net
Goodwill
Intangible assets, net
Other assets
Total assets
Current liabilities:
Accounts payable and accrued expenses
Debenture warrant liability		7,256,864
Leapfrog warrant liability		1,873,107
Derivative liability		2,026,031
Put liability
Total current liabilities		11,156,002
Secured convertible debentures, net		(186,554)
Total liabilities		10,969,448
Commitments and contingencies (Note 11)
Stockholders' equity:
Preferred stock, authorized 50,000,000 shares, $0.001 par value, no shares issued or outstanding at December 31, 2018 and 2017, respectively
Common stock to be issued
Additional paid in capital		(4,596,213)
Accumulated deficit		(6,373,235)
Total stockholders' equity		(10,969,448)
Total liabilities and stockholders' equity
Adjustment [Member] | Common Class A [Member]
Stockholders' equity:
Common stock
Adjustment [Member] | Common Class B [Member]
Stockholders' equity:
Common stock

Restatement (Summary of Resta_2

Restatement (Summary of Restatement Consolidated Statement of Operations Adjustments) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenues	$ 9,880,608	$ 23,348,714
Cost of revenue	3,156,920	9,328,893
Gross profit	6,723,688	14,019,821
Operating expense:
General, selling and administrative expense	18,442,839	17,016,789
Impairment of goodwill
Write off of non-compete agreement		468,750
Restructuring costs		377,961
Total operating expense	18,442,839	17,863,500
Loss from operations	(11,719,151)	(3,843,679)
Other income (expense)
Interest income (expense)	(2,030,321)	(2,782,047)
Amortization of debt issuance costs	(1,026,220)	(1,082,829)
Total interest expense	(3,056,541)	(3,864,876)
Gain on sale of assets	(22,108,028)
Accretion of beneficial conversion feature	(3,085,822)	(925,748)
Accretion of debenture discount and warrants	1,208,524	263,648
Change in Fair Value of Warrant Liability	8,953,933	(4,134,166)
Other non operating income / (expense)		(5,323,562)
Total other income (expense)	20,462,744	(9,188,438)
Income (loss) before provision for income taxes	8,743,593	(13,032,117)
Provision for income taxes
Net income (loss)	$ 8,743,593	$ (13,032,117)
Net income / (loss) per share, basic and diluted		$ (1.58)
Weighted average shares outstanding, basic	10,121,408	8,253,851
Weighted average shares outstanding, diluted	10,121,408	8,253,851
Previously Reported [Member]
Revenues		$ 23,348,714
Cost of revenue		9,328,893
Gross profit		14,019,821
Operating expense:
General, selling and administrative expense		17,016,789
Impairment of goodwill
Write off of non-compete agreement		468,750
Restructuring costs		377,961
Total operating expense		17,863,500
Loss from operations		(3,843,679)
Other income (expense)
Interest income (expense)		(713,826)
Amortization of debt issuance costs		(2,101,377)
Total interest expense		(2,815,203)
Gain on sale of assets
Accretion of beneficial conversion feature
Accretion of debenture discount and warrants
Change in Fair Value of Warrant Liability
Other non operating income / (expense)
Total other income (expense)		(2,815,203)
Income (loss) before provision for income taxes		(6,658,882)
Provision for income taxes
Net income (loss)		$ (6,658,882)
Net income / (loss) per share, basic and diluted		$ (0.81)
Weighted average shares outstanding, basic		8,253,851
Weighted average shares outstanding, diluted		8,253,851
Adjustment [Member]
Revenues
Cost of revenue
Gross profit
Operating expense:
General, selling and administrative expense
Impairment of goodwill
Write off of non-compete agreement
Restructuring costs
Total operating expense
Loss from operations
Other income (expense)
Interest income (expense)		(2,068,221)
Amortization of debt issuance costs		1,018,548
Total interest expense		(1,049,673)
Gain on sale of assets
Accretion of beneficial conversion feature		(925,748)
Accretion of debenture discount and warrants		(263,648)
Change in Fair Value of Warrant Liability		(4,134,166)
Other non operating income / (expense)		(5,323,562)
Total other income (expense)		(6,373,235)
Income (loss) before provision for income taxes		(6,373,235)
Provision for income taxes
Net income (loss)		$ (6,373,235)
Net income / (loss) per share, basic and diluted		$ (0.77)
Weighted average shares outstanding, basic		8,253,851
Weighted average shares outstanding, diluted		8,253,851