Staffing (TSGL) 10-Q 19 Dec 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Dec. 15, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	Staffing Group, Ltd.
Entity Central Index Key	1,561,622
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	Yes
Entity Current Reporting Status	No
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Trading Symbol	TSGL
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		1,269,436

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash	$ 209,048	$ 0
Cash - restricted	11,953	0
Accounts receivable	1,060,328	0
Deferred finance costs	0	0
Prepaid expenses and other current assets	3,964	0
Total Current Assets	1,285,293	0
Property and equipment, net	1,364	0
Identifiable intangible assets, net of accumulated amortization of $120,000 and $0,respectively	1,080,000	0
Goodwill	1,466,000	0
TOTAL ASSETS	3,832,657	0
CURRENT LIABILITIES
Accounts payable	66,830	0
Accounts payable - related party	805,970	0
Accrued liabilities	87,088	0
Accrued liabilities - related party	118,640	55,815
Loan payable to factor	0	0
Convertible note payable - related party, including accrued interest of $31,091 and $1,408, net of debt discount of $16,925 and $77,143, respectively	94,166	4,265
Convertible notes payable - including accrued interest of $313,411 and $0, net of debt discount of $303,608 and $0, respectively	1,341,891	0
Notes payable - related parties	107,000	107,000
Convertible promissory note derivative liability- related party	1,649,602	178,959
Due to stockholder	28,500	0
60 shares of Preferred Stock, par value $0.001, designated as Series B Convertible Preferred Stock, 30 and 0 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively. Liquidation preference of $750,000. (Note 12)	750,000	0
Total Current Liabilities	5,049,687	346,039
Note payable - related parties, net of debt discount of $192,255 and $0, respectively	562,745	0
TOTAL LIABILITIES	5,612,432	346,039
STOCKHOLDERS' DEFICIT
Common stock par value $0.001: 150,000,000 shares authorized; 1,269,436 and 602,436 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively	1,269	602
Additional paid-in capital	3,630,282	2,434,749
Accumulated deficit	(5,424,048)	(2,781,390)
TOTAL THE STAFFING GROUP LTD. STOCKHOLDERS' DEFICIT	(1,792,497)	(346,039)
Non-controlling interest	12,722	0
TOTAL STOCKHOLDERS' DEFICIT	(1,779,775)	(346,039)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	3,832,657	0
Predecessor [Member]
CURRENT ASSETS
Cash		0
Cash - restricted		0
Accounts receivable		456,296
Deferred finance costs		7,547
Prepaid expenses and other current assets		0
Total Current Assets		463,843
Property and equipment, net		4,963
Identifiable intangible assets, net of accumulated amortization of $120,000 and $0,respectively		0
Goodwill		0
TOTAL ASSETS		468,806
CURRENT LIABILITIES
Accounts payable		467,280
Accounts payable - related party		0
Accrued liabilities		0
Accrued liabilities - related party		0
Loan payable to factor		238,051
Convertible notes payable - including accrued interest of $313,411 and $0, net of debt discount of $303,608 and $0, respectively		0
Notes payable - related parties		0
Convertible promissory note derivative liability- related party		0
Due to stockholder		0
60 shares of Preferred Stock, par value $0.001, designated as Series B Convertible Preferred Stock, 30 and 0 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively. Liquidation preference of $750,000. (Note 12)		0
Total Current Liabilities		705,331
Note payable - related parties, net of debt discount of $192,255 and $0, respectively		0
TOTAL LIABILITIES		705,331
STOCKHOLDERS' DEFICIT
Common stock par value $0.001: 150,000,000 shares authorized; 1,269,436 and 602,436 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively		0
Additional paid-in capital		0
Accumulated deficit		(236,525)
TOTAL THE STAFFING GROUP LTD. STOCKHOLDERS' DEFICIT		(236,525)
Non-controlling interest		0
TOTAL STOCKHOLDERS' DEFICIT		(236,525)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT		468,806
Series A Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Preferred stock, no par value: 5,000,000 shares authorized 5 shares of Preferred Stock, par value $0.001, designated as Series A Preferred Stock, 1 and 1 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively	0	0
Series A Preferred Stock [Member] | Predecessor [Member]
STOCKHOLDERS' DEFICIT
Preferred stock, no par value: 5,000,000 shares authorized 5 shares of Preferred Stock, par value $0.001, designated as Series A Preferred Stock, 1 and 1 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively		0
Series B Preferred Stock [Member]
CURRENT LIABILITIES
60 shares of Preferred Stock, par value $0.001, designated as Series B Convertible Preferred Stock, 30 and 0 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively. Liquidation preference of $750,000. (Note 12)	$ 0	0
STOCKHOLDERS' DEFICIT
Preferred stock, no par value: 5,000,000 shares authorized 5 shares of Preferred Stock, par value $0.001, designated as Series A Preferred Stock, 1 and 1 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively
Series B Preferred Stock [Member] | Predecessor [Member]
CURRENT LIABILITIES
60 shares of Preferred Stock, par value $0.001, designated as Series B Convertible Preferred Stock, 30 and 0 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively. Liquidation preference of $750,000. (Note 12)		$ 0

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Preferred stock, no par value	$ 0	$ 0
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares, issued	1,269,436	602,436
Common stock, shares outstanding	1,269,436	602,436
Predecessor [Member]
Preferred stock, no par value		$ 0
Preferred stock, shares authorized		5,000,000
Common stock, par value (in dollars per share)		$ 0.001
Common stock, shares authorized		150,000,000
Common stock, shares, issued		0
Common stock, shares outstanding		0
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5	5
Preferred stock, shares issued	1	1
Preferred stock, shares outstanding	1	1
Series A Preferred Stock [Member] | Predecessor [Member]
Preferred stock, par value		$ 0.001
Preferred stock, shares authorized		5
Preferred stock, shares issued		1
Preferred stock, shares outstanding		1
Series B Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	60	60
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B Preferred Stock [Member] | Predecessor [Member]
Preferred stock, par value		$ 0.001
Preferred stock, shares authorized		60
Preferred stock, shares issued		0
Preferred stock, shares outstanding		0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
NET REVENUES
Contract staffing services	$ 1,433,073		$ 0	$ 3,051,564	$ 0
COST OF SERVICES	896,448		0	2,009,958	0
GROSS PROFIT	536,625		0	1,041,606	0
SELLING, GENERAL AND ADMINSTRATIVE
Amortization of intangible assets	60,000		0	120,000	0
Payroll and related expenses	145,941		0	288,258	0
Selling, general and administrative expenses	129,768		9,931	537,730	166,221
TOTAL SELLING, GENERAL AND ADMINISTRATIVE	335,709		9,931	945,988	166,221
INCOME (LOSS) FROM OPERATIONS	200,916		(9,931)	95,618	(166,221)
OTHER (EXPENSES) INCOME
Interest expense	(985,637)		0	(2,321,523)	0
Other expense	0		(22,821)	0	(29,025)
Change in fair value of derivative liabilities	(1,073,425)		0	(418,031)	0
TOTAL OTHER EXPENSE	(2,059,062)		(22,821)	(2,739,554)	(29,025)
LOSS FROM CONTINUING OPERATONS BEFORE PROVISION FOR INCOME TAXES	(1,858,146)		(32,752)	(2,643,936)	(195,246)
Provision for income taxes	0		0	0	0
LOSS FROM CONTINUING OPERATIONS	(1,858,146)		(32,752)	(2,643,936)	(195,246)
INCOME (LOSS) FROM DISCONTINUED OPERATIONS (including income taxes of $0 and $0 for 2016 and 2015, respectively (Note 5)	0		0	0	0
NET LOSS	(1,858,146)		(35,556)	(2,643,936)	(155,811)
NET INCOME (LOSS) ATTRIBUTED TO NON-CONTROLLING INTEREST	282		0	(1,278)	0
NET LOSS ATTRIBUTED TO THE STAFFING GROUP LTD.	$ (1,858,428)		$ (35,556)	$ (2,642,658)	$ (155,811)
BASIC AND DILUTED NET (LOSS) PER COMMON SHARE FROM CONTINUING OPERATIONS	$ (1.46)		$ (0.04)	$ (2.55)	$ (0.26)
BASIC NET INCOME PER COMMON SHARE FROM DISCONTINUED OPERATIONS	0		0	0	0.05
BASIC AND DILUTED NET (LOSS) PER COMMON SHARE	$ (1.46)		$ (0.04)	$ (2.55)	$ (0.21)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - Basic and diluted	1,268,599		744,400	1,037,644	744,400
Predecessor [Member]
NET REVENUES
Contract staffing services		$ 1,339,669	$ 1,602,663		$ 4,580,628
COST OF SERVICES		992,493	1,217,618		3,448,617
GROSS PROFIT		347,176	385,045		1,132,011
SELLING, GENERAL AND ADMINSTRATIVE
Amortization of intangible assets		0	0		0
Payroll and related expenses		117,623	130,333		331,863
Selling, general and administrative expenses		343,535	253,924		748,602
TOTAL SELLING, GENERAL AND ADMINISTRATIVE		461,158	384,257		1,080,465
INCOME (LOSS) FROM OPERATIONS		(113,982)	788		51,546
OTHER (EXPENSES) INCOME
Interest expense		(11,489)	(31,205)		(93,616)
Other expense		0	0		0
Change in fair value of derivative liabilities		0	0		0
TOTAL OTHER EXPENSE		(11,489)	(31,205)		(93,616)
LOSS FROM CONTINUING OPERATONS BEFORE PROVISION FOR INCOME TAXES		(125,471)	(30,417)		(42,070)
Provision for income taxes		0	0		0
LOSS FROM CONTINUING OPERATIONS		(125,471)	(30,417)		(42,070)
INCOME (LOSS) FROM DISCONTINUED OPERATIONS (including income taxes of $0 and $0 for 2016 and 2015, respectively (Note 5)		0	0		0
NET LOSS		(125,471)	(30,417)		(42,070)
NET INCOME (LOSS) ATTRIBUTED TO NON-CONTROLLING INTEREST		0	0		0
NET LOSS ATTRIBUTED TO THE STAFFING GROUP LTD.		$ (125,471)	$ (30,417)		$ (42,070)

CONSOLIDATED STATEMENTS OF OPE5

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Income Taxes, Discontinued Operations	$ 0	$ 0	$ 0	$ 0

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income		$ (2,642,658)	$ (155,811)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Accrued interest		0	0
Amortization of intangible assets		120,000	0
Amortization of debt discount		2,164,678	0
Stock-based compensation		109,200	0
Change in fair value of derivative liabilities		418,031	0
Changes in operating assets and liabilities:
Cash - restricted		(11,953)	0
Accounts receivable		(1,060,328)	0
Prepaid expenses and other current assets		3,964	(120,548)
Accounts payable		66,830	29,025
Accounts payable - related party		805,970	0
Accured liabilities		87,088	0
Accrued liabilities - related party		62,825	0
Net cash provided by discontinued operations		0	184,519
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		114,441	178,281
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment		(1,364)	0
Business acquisition - purchase of four branches		(1,080,000)	0
NET CASH PROVIDED BY INVESTING ACTIVITIES		(1,081,364)	0
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from common stock		7,000	0
Net cash received from loan payable to factor		0	0
Proceeds from convertible notes payable		1,430,710	0
Repayment of convertible notes payable		(304,239)	0
Advance from stockholder		28,500	0
Non-controlling interest		14,000	0
Net distribution to Labor Smart, Inc.		0	0
Net cash (used in) discontinued operations		0	(178,281)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		1,175,971	(178,281)
NET INCREASE IN CASH		209,048	0
CASH, BEGINNING OF PERIOD	$ 0	0	0
CASH, END OF PERIOD		209,048	0
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for taxes		0	0
Cash paid for interest		104,689	0
NON-CASH ACTIVITIES
Series B Preffered Stock issued in connection with issuance of convertible notes payable		750,000	0
Note payable issued in connection with business acquisition		506,000	0
Common Stock issued in connection with business acquisition		1,080,000	0
Predecessor [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	(125,471)		(42,070)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Accrued interest	11,489		93,616
Amortization of intangible assets	0		0
Amortization of debt discount	0		0
Stock-based compensation	0		0
Change in fair value of derivative liabilities	0		0
Changes in operating assets and liabilities:
Cash - restricted	0		0
Accounts receivable	(22,569)		(47,656)
Prepaid expenses and other current assets	0		933
Accounts payable	129,895		146,649
Accounts payable - related party	0		0
Accured liabilities	0		0
Accrued liabilities - related party	0		0
Net cash provided by discontinued operations	0		0
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	(5,663)		154,450
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment	0		0
Business acquisition - purchase of four branches	0		0
NET CASH PROVIDED BY INVESTING ACTIVITIES	0		0
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from common stock	0		0
Net cash received from loan payable to factor	(220,105)		18,300
Proceeds from convertible notes payable	0		0
Repayment of convertible notes payable	0		0
Advance from stockholder	0		0
Non-controlling interest	0		0
Net distribution to Labor Smart, Inc.	225,768		(172,750)
Net cash (used in) discontinued operations	0		0
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	5,663		(154,450)
NET INCREASE IN CASH	0		0
CASH, BEGINNING OF PERIOD	0	$ 0	0
CASH, END OF PERIOD	0		0
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for taxes	0		0
Cash paid for interest	$ 0		$ 0

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	Note 1 - Description of Business On December 22, 2015, the Company entered into a Licensing Agreement with Labor Smart, Inc., a stockholder of the Company, whereby Labor Smart, Inc. has granted the Company an exclusive license to use their trademarked name in connection with general advertising materials, point of sale displays and other promotional materials. As consideration for the use of the trademarked name, the Company agreed to pay to Labor Smart, Inc. a one-time fee of $5,000 for each newly opened branch location that is opened under the name of Labor Smart, Inc. On December 28, 2015, the Company incorporated a subsidiary, Staff Fund I, LLC, a Nevada Limited Liability Company. On December 31, 2015, the Company entered into a Stock Purchase Agreement (“SPA”) with Pour Les Enfant, LLC, a Louisiana limited liability company (“Pour Les Enfant”). Pursuant to the SPA, the Company, as sole shareholder of EmployUS, Ltd. completed the split-off by transferring to Pour Les Enfant all outstanding shares and tangible assets of EmployUS, Ltd. (the “split-off transaction”). In consideration thereof, Pour Les Enfant assumed all liabilities of EmployUS, Ltd. associated with monies owed to the Internal Revenue Service for late payroll taxes; and all corporate, personal, and validity guarantees associated the Crestmark Bank Loan and Security Agreement. Pursuant to the SPA, Brent Callais and Brian McLoone, directors, executives and controlling shareholders of the Company, each agreed to transfer to the Company 91,000 shares of the Company’s common stock and one share of the Company’s preferred stock, for immediate cancellation. As a result of the cancellation of the two (2) preferred shares by Brent Callais and Brian McLoone, there was a change in control of the Company as Labor Smart, Inc. holds the one (1) remaining outstanding preferred share of the Company. The financial results of EmployUS, Ltd. qualifies for reporting as a discontinued operations. A substantial portion of the Company’s 2015 financial statements have been reclassified to conform to the reporting of discontinued operations adopted in 2015. See Note 5. In January 2016, the Company commenced operations of one (1) staffing location Montgomery, Alabama through the subsidiary, Staff Fund I, LLC. This subsidiary operates under a licensing agreement with Labor Smart, Inc. Staff Fund I, LLC recruits, hires, employs and manages skilled and unskilled workers that it places with its client companies. During the nine months ended September 30, 2016. Staff Fund I, LLC issued membership interests for cash proceeds of $14,000. At September 30, 2016, 7% of Staff Fund I, LLC’s membership interest are held by non-controlling interest. On April 1, 2016, the Company purchased the operating assets of four (4) branch locations in Charlotte, NC, Indianapolis, IN, Nashville, TN and Raleigh, NC from Labor Smart, Inc. for consideration with a fair value of $2,666,000. The one-time fee of $5,000 for the (4) newly opened branches which were opened under the Labor Smart, Inc. name totaling $20,000 was waived. As a requirement of the purchase of the operating assets, the one (1) issued and outstanding share of Series A Preferred Stock owed by Labor Smart, Inc. was transferred to Kimberly Thompson, the Chief Executive Officer of the Company in addition the CEO stepped down from any former position she held with Labor Smart, Inc. Each share of Series A Preferred Stock gives the holder voting rights equal to 2 votes for every one share of common stock outstanding at the time of a vote of shareholders and does not have any additional rights or preferences. As such, at September 30, 2016, Kimberly Thompson controlled the majority of shareholder votes. (See Note 3).

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Note 2 - Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for any subsequent quarter of for the year ending December 31, 2016. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K filed on April 13, 2016 for the year ended December 31, 2015. principles of consolidation The condensed consolidated financial statements include the accounts of the Company’s one operating subsidiary. All significant inter-company transactions and balances are eliminated in consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Significant matters requiring the use of estimates and assumptions include, but may not be limited to, accounts receivable allowances, goodwill, intangible assets, valuation allowance for deferred tax assets and valuation of derivative liabilities. Management believes that its estimates and assumptions are reasonable, based on information that is available at the time they are made. Revenue Recognition Contract staffing service revenues are recognized when services are rendered. The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 605 “Revenue Recognition”, which requires that four basic criteria be met before revenue can be recognized: (i) persuasive evidence that an arrangement exists; (ii) the price is fixed or determinable; (iii) collectability is reasonably assured; and (iv) services have been rendered. Cash and Cash Equivalents The Company considers highly liquid investments with original maturities of three months or less when purchased as cash equivalents. At times throughout the year, the Company might maintain bank balances that may exceed Federal Deposit Insurance Corporation (FDIC) insured limits. Periodically, the Company evaluates the credit worthiness of the financial institutions, and has not experienced any losses in such accounts. As of September 30, 2016 and December 31, 2015, the Company did not have any cash equivalents. Cash - Restricted Restricted cash represents cash in a lockbox account by held by TCA Global Credit Master Fund, LP in accordance with the Senior Secured Revolving Credit Facility Agreement. The Company considered $11,953, as restricted cash at September 30, 2016. No cash was considered restricted at December 31, 2015. (See Note 8) Accounts Receivable The Company extends credit to its customers based on an evaluation of the customer’s financial condition and ability to pay the Company in accordance with the payment terms. An allowance for doubtful accounts is recorded as a charge to bad debt expense where collection is considered doubtful due to credit issues. This allowance reflects management’s estimate of the potential losses inherent in the accounts receivable balance, based on historical loss statistics and known factors impacting its customers. The nature of the contract service business, where companies are dependent on employees for their production cycle, generally results in a nominal provision for doubtful accounts. Based on management’s review of accounts receivable, an allowance for doubtful accounts was not material for any of the periods presented. The Company charges uncollectible accounts against the allowance once the invoices are deemed unlikely to be collectible. The Company does not accrue interest on past due receivables. Net (Loss) Income per Common Share Net (loss) income per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of shares of common stock outstanding during the period. Diluted net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of shares of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent share arrangements, stock options and warrants. At September 30, 2016 and December 31, 2015, the Company excluded 3,686,245 and 151,963 shares of common stock issuable upon conversion of convertible notes payable and Series B Stock, respectively, as their effect would have been anti-dilutive. Identifiable Intangible Assets Identifiable intangible assets consist primarily of customer relationships and non-compete contracts. These assets are tested for impairment using discounted cash flow methodology annually and whenever there is an impairment indicator. Estimating future cash flows requires significant judgment and projections may vary from cash flows eventually realized. Several impairment indicators are beyond the Company’s control, and determining whether or not they will occur cannot be predicted with any certainty. Customer relationships and non-compete contracts are amortized on a straight-line basis over an estimated life of five years. Goodwill Goodwill represents the premium paid over the fair value of the net tangible and identifiable intangible assets acquired in the Company’s business combinations. The Company performs a goodwill impairment test on at least an annual basis at the reporting unit level. Application of the goodwill impairment test requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the businesses, the useful life over which cash flows will occur and determination of our weighted average cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for each reporting unit. The Company will conduct its annual goodwill impairment test as of December 31 of each year or more frequently if indicators of impairment exist. The Company periodically analyzes whether any such indicators of impairment exist. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include a sustained significant decline in our stock price and market capitalization, a significant adverse change in legal factors or in the business climate, unanticipated competition and/or slower expected growth rates, adverse actions or assessments by a regulator, among others. The Company compares the fair value of its reporting unit to its respective carrying value, including related goodwill. Future changes in the industry could impact the results of future annual impairment tests. There can be no assurance that future tests of goodwill impairment will not result in impairment charges. Fair Value Measurement As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC (“ASC 820-10”), fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Convertible promissory notes payable and convertible promissory note derivative liability – related party is measured at fair value on a recurring basis using Level 3 inputs. The carrying amounts reported in the Company’s condensed consolidated financial statements for accounts receivable, prepaid expenses, accounts payable and accrued expenses approximate their fair value because of the immediate or short-term nature of these consolidated financial instruments. The carrying amounts reported in the condensed consolidated balance sheets for its line of credit and convertible notes payable approximates fair value as the contractual interest rate and features are consistent with similar instruments of similar risk in the market place. Convertible Promissory Notes i) Beneficial Conversion Feature If the conversion features of conventional convertible debt provides for a rate of conversion that is below market value, this feature is characterized as a beneficial conversion feature (“BCF”). A BCF is recorded by the Company as a debt discount pursuant to ASC Topic 470-20 “Debt with Conversion and Other Options.” In those circumstances, the convertible debt is recorded net of the discount related to the BCF and the Company amortizes the discount to interest expense over the life of the debt using the effective interest method. ii) Debt Discount The Company determines if the convertible debenture should be accounted for as a liability or equity under ASC 480, Liabilities — Distinguishing Liabilities from Equity. ASC 480, applies to certain contracts involving a Company's own equity, and requires that issuers classify the following freestanding financial instruments as liabilities. Mandatorily redeemable financial instruments, obligations that require or may require repurchase of the issuer's equity shares by transferring assets (e.g., written put options and forward purchase contracts), and certain obligations where at inception the monetary value of the obligation is based solely or predominantly on: – A fixed monetary amount known at inception, for example, a payable settleable with a variable number of the issuer's equity shares with an issuance date fair value equal to a fixed dollar amount, – Variations in something other than the fair value of the issuer's equity shares, for example, a financial instrument indexed to the S&P 500 and settleable with a variable number of the issuer's equity shares, or – Variations inversely related to changes in the fair value of the issuer's equity shares, for example, a written put that could be net share settled. If the entity determined the instrument meets the guidance under ASC 480 the instrument is accounted for as a liability with a respective debt discount. The Company records debt discounts in connection with raising funds through the issuance of convertible debt. These costs are amortized to non-cash interest expense over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed. iii) Derivative Financial Instruments Derivative financial instruments, as defined in ASC 815, “Accounting for Derivative Financial Instruments and Hedging Activities”, consist of financial instruments or other contracts that contain a notional amount and one or more underlying (e.g. interest rate, security price or other variable), require no initial net investment and permit net settlement. Derivative financial instruments may be free-standing or embedded in other financial instruments. Further, derivative financial instruments are initially, and subsequently, measured at fair value and recorded as liabilities or, in rare instances, assets. The Company does not use derivative financial instruments to hedge exposures to cash-flow, market or foreign-currency risks. However, the Company has issued financial instruments including senior convertible promissory notes payable and freestanding stock purchase warrants with features that are either (i) not afforded equity classification, (ii) embody risks not clearly and closely related to host contracts, or (iii) may be net-cash settled by the counterparty. As required by ASC 815, in certain instances, these instruments are required to be carried as derivative liabilities, at fair value, in our consolidated financial statements. Recent Accounting Pronouncements In April 2015, the FASB issued a new accounting standard which changes the presentation of debt issuance costs in financial statements. Under the new standard, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. The accounting standard is effective for annual reporting periods beginning after December 15, 2015 and was adopted in the first quarter of 2016. In March 2016, the FASB issued a new accounting standard which is intended to simplify the accounting for share-based compensation. This standard simplifies the accounting for income taxes in relation to share-based compensation, modifies the accounting for forfeitures, and modifies the statutory tax withholding requirements. This standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the new accounting standard will have on its consolidated financial position, results of operations or cash flows. In April 2016, the FASB issued ASU No. 2016-10 (“ASU 2016-10”), “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” ASU 2016-10 will affect all entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments in this update affect the guidance in ASU 2014-09 which is not yet effective, the amendments in this update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The effective date and transition requirements for the amendments in this update are effective in the annual period ending December 31, 2017, including interim periods within that annual period. The Company is currently evaluating the effect that ASU 2016-10 will have on the Company’s consolidated financial position and results of operations. In May 2016, the FASB issued ASU No. 2016-12 (“ASU 2016-12”), “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” ASU 2016-12 will affect all entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments in this update affect the guidance in ASU 2014-09 which is not yet effective, the amendments in this update affect narrow aspects of Topic 606 including among others: assessing collectability criterion, noncash consideration, and presentation of sales taxes and other similar taxes collected from customers. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements for ASU 2016-10. The Company is currently evaluating the effect that ASU 2016-12 will have on the Company’s consolidated financial position and results of operations. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 is intended to address how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the effect that ASU 2016-15 will have on the Company’s consolidated financial position and results of operations.

BUSINESS ACQUISITION

BUSINESS ACQUISITION	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
BUSINESS ACQUISITION	Note 3 –business acquisition On April 1, 2016, the Company entered into an Agreement for Purchase and Sale of Assets (the “Agreement”) with Labor Smart, Inc. (the “Seller”), related party and shareholder of the Company. Pursuant to the Agreement, the Company purchased from the Seller the operating assets of four (4) branch locations, which includes customer lists, title to certain leases for real or personal property, contracts, fixed assets, and business records (collectively the “Four Branches”). The Seller retained all open accounts receivable related to the prior operations of the branch locations and was responsible for all operating liabilities. In consideration for the Four Branches, the Company paid the Seller total consideration with a fair value of $2,666,000, paid as follows: (i) $890,890 in cash, (ii) 600,000 shares of the Company’s common stock at a fair value of $1,080,000 ($1.80 per share based on the closing price of the Company common stock on March 31, 2016), (iii) a non-interest bearing promissory note due on April 1, 2018 with a face amount of $755,000 and a fair value of $506,000. The Company assumed no liabilities in the business acquisition. In accordance with FASB ASC 835-30 "Imputation of Interest", interest has been imputed on the promissory note at an annual market interest rate of 20% per annum. (iv) payoff of certain of the Seller’s outstanding debt totaling $29,110, and (v) direct payment to the IRS on behalf of the Seller in the amount of $160,000 (the “Purchase Price”). On April 1, 2016, a the purchase of the operating assets, the one (1) issued and outstanding share of Series A Preferred Stock owed by Labor Smart, Inc. was transferred to Kimberly Thompson, the Chief Executive Officer of the Company. Each share of Series A Preferred Stock gives the holder voting rights equal to 2 votes for every one share of common stock outstanding at the time of a vote of shareholders and does not have any additional rights or preferences. As such, at September 30, 2016, Kimberly Thompson controlled the majority of shareholder votes. Assets acquired and liabilities assumed in the Agreement were recorded on the Company’s Consolidated Balance Sheet as of the acquisition date of April 1, 2016 based upon their estimated fair values. The results of operations of businesses acquired by the Company have been included in the statements of operations since the date of acquisition. The excess of the purchase price over the estimated fair values of the underlying identifiable assets acquired and liabilities assumed were allocated to goodwill. The preliminary allocation of the purchase price and the estimated fair market values of the assets acquired and liabilities assumed are shown below: Customer Relationships $ 1,130,000 Non-complete Agreements 70,000 Goodwill 1,466,000 Purchase Price $ 2,666,000 Unaudited pro forma results of operations information for the three and nine months ended September 30, 2015 as if the Company and the entities described above had been combined on January 1, 2015 are as follows. The pro forma results include estimates and assumptions which management believes are reasonable. The pro forma results do not include any anticipated cost savings or other effects of the planned integration of these entities, and are not necessarily indicative of the results that would have occurred if the business combinations had been in effect on the dates indicated, or which may result in the future. Nine months Ended September 30, 2016 Three Months Ended September 30, 2015 Nine months Ended September 30, 2015 Net revenues $ 4,391,233 $ 1,602,663 $ 4,580,628 Income (loss) from operations $ (18,364) $ (8,603) $ (114,675) Net loss $ (2,769,407) $ (63,973) $ (237,3161) Net loss per share $ (2.67) $ (0.09) $ (0.32) Revenue and costs are generally allocated using specific identification and include corporate administrative expenses, finance, legal, tax, treasury and other general corporate services. The carve-out financial information include revenue and expenses of Labor Smart, Inc., allocated to the Four Branches (“Predecessor”) for certain functions provided by Labor Smart, including compensation and benefits, occupancy, information technology costs,finance and interest costs, legal, tax, treasury and other general corporate services. These expenses have been allocated to the results of the Four Branches based on one of four allocation cost drivers: 1) Revenues attributable to the Four Branches, 2) The headcount of employees within the Four Branches and Labor Smart 3) The identification of costs specific to the Four Branches; and 4) Allocation of finance and interest costs based on proceeds from the sales of the Four Branches by Labor Smart. Management considers the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to, or the benefit received by, the Four Branches, The allocations may not; however, reflect the expenses the Four Branches would have incurred as an independent entity for the periods presented. Unaudited predecessor financial information has been provided in these condensed consolidated financial statements as the Company acquired the Four Branches and the operations of the Company before the acquisition of the Four Branches were insignificant relative to the operations acquired.

LIQUIDITY AND CAPITAL RESOURCES

LIQUIDITY AND CAPITAL RESOURCES	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
LIQUIDITY AND CAPITAL RESOURCES	Note 4 - Liquidity and Capital Resources The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of September 30, 2016, the Company had a stockholders’ deficit of $1,779,775 and a working capital deficit of $3,764,394. For the nine months ended September 30, 2016 the Company had a net loss of $2,643,936. The Company’s stockholders’ deficiency is primarily due to, among other reasons, funding its historical net losses. The Company’s principal sources of liquidity include cash from operations and proceeds from debt and equity financings. As of September 30, 2016, the Company had $209,048 in cash. The Company is funding its operations primarily through the sale of equity, convertible notes payable and shareholder loans. In the event the Company experiences liquidity and capital resources constraints because of greater than anticipated sales growth or acquisition needs, the Company may need to raise additional capital in the form of equity and/or debt financing including refinancing its current debt. Issuances of additional shares will result in dilution to its existing shareholders. There is no assurance that the Company will achieve any additional sales of its equity securities or arrange for debt or other financing to fund any potential acquisition needs or increased growth. If such additional capital is not available on terms acceptable to the Company, or at all, then the Company may need to curtail its operations and/or take additional measures to conserve and manage its liquidity and capital resources, any of which would have a material adverse effect on its business, results of operations and financial condition. The ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties. In order to mitigate the risk related with this uncertainty, the Company plans to issue additional shares of common stock for cash and services during the next 12 months.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	9 Months Ended
	Sep. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	Note 5 – DISCONTINUED OPERATIONS On December 31, 2015, the Company entered into a Stock Purchase Agreement (“SPA”) with Pour Les Enfant, LLC, a Louisiana limited liability company (“Pour Les Enfant”). Pursuant to the SPA, the Company, as sole shareholder of EmployUS, Ltd. Completed the split-off by transferring to Pour Les Enfant all outstanding shares and tangible assets of EmployUS, Ltd.. In consideration thereof, Pour Les Enfant assumed all liabilities of EmployUS, Ltd. Associated with monies owed to the Internal Revenue Service for late payroll taxes; and all corporate, personal, and validity guarantees associated with the Crestmark Bank Loan and Security Agreement. Pursuant to the SPA, Brent Callais and Brian McLoone, directors, executives and controlling shareholders of the Company, each agreed to transfer to the Company 91,000 shares of the Company’s common stock and one share of the Company’s preferred stock, for immediate cancellation. The following table summarizes the results from discontinued operations: Three Months Ended September 30, 2015 Nine months Ended September 30, 2015 NET REVENUES Contract staffing services $ 3,393,046 $ 10,832,933 COST OF SERVICES 2,777,902 8,855,709 GROSS PROFIT 615,144 1,977,224 SELLING, GENERAL AND ADMINISTRATIVE 572,495 1,791,524 INCOME FROM OPERATIONS 42,649 185,700 OTHER EXPENSE (45,453) (146,265) INCOME (LOSS) FROM OPERATIONS BEFORE PROVISION FOR INCOME TAXES (2,804) 39,435 (Provision) benefit for income taxes - - NET INCOME (LOSS) OF EMPLOYUS, LTD. $ (2,804) $ 39,435

IDENTIFIABLE INTANGIBLE ASSETS

IDENTIFIABLE INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
IDENTIFIABLE INTANGIBLE ASSETS	Note 6 – Identifiable Intangible Assets Intangible assets comprise customer relationships and non-compete agreements which are recorded at cost. September 30, 2016 December 31, 2015 Customer relationships $ 1,130,000 $ - Non-compete agreements 70,000 - 1,200,000 - Accumulated amortization (120,000 ) - Identifiable Intangible Assets $ 1,080,000 $ - On April 1, 2016, the Company acquired and commenced amortization of identifiable intangible assets upon closing of the business acquisition for the Four Branches. During the three and nine months ended September 30, 2016 and 2015, $60,000 and $120,000, respectively, was recorded as amortization. The Company estimates amortization over the next five years to be as follows: 2016 (remaining) $60,000 and the following four years $240,000 per annum.

ACCOUNTS PAYABLE - RELATED PART

ACCOUNTS PAYABLE - RELATED PARTY	9 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE - RELATED PARTY	Note 7 – accounts payable – related party At September 30, 2016 and December 31, 2015, $805,970 and $0, respectively, is due to Labor Smart Inc for trade payables related to payroll costs.

NOTES PAYABLE - RELATED PARTY

NOTES PAYABLE - RELATED PARTY	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
NOTES PAYABLE - RELATED PARTY	Note 8– notes payable – related party On May 20, 2014, the Company issued a promissory note for $94,500 for cash to a shareholder of the Company that is to be repaid in full by May 20, 2015. The note accrues interest expense at 10% per annum and in accordance with the promissory note, there is a late fee of $100 per day for each day the note remains unpaid beyond the maturity date. Interest and late fee expense for the three months ended September 30, 2016 and 2015 was $11,563 and $11,563, respectively and for the nine months ended September 30, 2016 and 2015 was $34,488 and $20,388, respectively. The Company recorded late fees payable of $49,800 and $22,400 and accrued interest payable of $21,769 and $14,681, as of September 30, 2016 and December 31, 2015, respectively, and is included in accounts payable and accrued expenses – related party as of September 30, 2016 and December 31, 2015. On July 14, 2014, the Company issued a promissory note for $12,500 for cash to a shareholder of the Company that is to be repaid in full by July 14, 2015. The note accrues interest expense at 10% per annum and in accordance with the promissory note, there is a late fee of $100 per day for each day the note remains unpaid beyond the maturity date. Interest and late fee expense for the three months ended September 30, 2016 and 2015 was $9,513 and $8,012, respectively and for the nine months ended September 30, 2016 and 2015 was $28,338 and $8,638, respectively. The Company recorded late fees payable of $44,300 and $16,900 and accrued interest payable of $2,771 and $1,833, as of September 30, 2016 and December 31, 2015, respectively, and is included in accounts payable and accrued expenses – related party as of September 30, 2016 and December 31, 2015. On April 1, 2016, in conjunction with Agreement for Purchase and Sale of Assets (Note 3), the Company issued an unsecured non-interest bearing promissory note to Labor Smart, Inc., due on April 1, 2018 with a face amount of $755,000 and a fair value of $506,000. In accordance with FASB ASC 835-30 "Imputation of Interest", interest has been imputed on the promissory note at a market interest rate of 20% per annum. At September 30, 2016, the promissory note has been recorded net of debt discount of $192,255. Amortization of debt discount of $29,430 and $56,745 has been included in interest expense in the consolidated statements of loss for the three and nine months ended September 30, 2016, respectively. The debt discount is being amortized on the effective interest method.

CONVERTIBLE PROMISSORY NOTE - R

CONVERTIBLE PROMISSORY NOTE - RELATED PARTY	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
CONVERTIBLE PROMISSORY NOTE - RELATED PARTY	Note 9– convertible promissory note – related party On December 18, 2015, the Company entered into a Convertible Promissory Note (“Note”) with Labor Smart Inc. (“Holder”) in the original principal amount of $80,000 bearing a 12% annual interest rate and maturing on December 16, 2016. In conjunction with the issuance of the Note, as further consideration, the Company issued the Holder one (1) share of Series A Preferred Stock of the Company. Each share of Series A Preferred Stock gives the holder voting rights equal to 2 votes for every one share of common stock outstanding at the time of a vote of shareholders and does not have any additional rights or preferences. This Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 75% of the market price which means the lowest trading price during the thirty trading day period ending on the latest complete trading day prior to the conversion date. The Company may repay the Note if repaid within 120 days of date of issue at 125% of the original principal amount plus interest, between 121 days and 150 days at 130% of the original principal amount plus interest and between 151 days and 180 days at 135% of the original principal amount plus interest. Thereafter, the Company does not have the right of prepayment. At September 30, 2016, the Note includes principal of $80,000 and accrued interest of $31,091 less unamortized debt discount of $16,925. See Note 10 – Convertible Promissory Note Derivative Liability – Related Party.

CONVERTIBLE PROMISSORY NOTES

CONVERTIBLE PROMISSORY NOTES	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
CONVERTIBLE PROMISSORY NOTES	Note 10– convertible promissory notes On March 29, 2016, with an effective date of April 5, 2016, in conjunction with the Agreement for Purchase and Sale of Assets (Note 3), the Company entered into a Senior Secured Revolving Credit Facility Agreement (the “Credit Agreement”) with TCA Global Credit Master Fund, LP, a Cayman Islands limited partnership (“TCA”), pursuant to which TCA agreed to loan up to a maximum of three million dollars ($3,000,000) to us for working capital purposes. A total of $1,300,000 was funded by TCA in connection with the closing of the Agreement. The amounts borrowed pursuant to the Credit Agreement are evidenced by a Senior Secured Revolving Convertible Promissory Note (the “Revolving Note”), the repayment of which is secured by Security Agreements executed by us and our subsidiary, The Staff Fund I, LLC. Pursuant to the Security Agreements, the repayment of the Revolving Note is secured by a security interest in substantially all of our assets in favor of TCA. The initial Revolving Note in the amount of $1,300,000 is due and payable along with interest thereon on October 5, 2016, and bears interest at the minimum rate of 12% per annum, increasing to 22% per annum upon the occurrence of an Event of Default, as defined in the Credit Agreement. Upon an Event of Default, TCA shall have the right to convert all or any portion of the Revolving Note into shares of the Company’s common stock. The conversion rate shall be 85% of the lowest VWAP of the Company’s stock for the five days preceding the conversion date. The Credit Agreement provides for certain contractual rights to TCA. TCA has influence and veto power over key decisions which effect operating, investing and financing activities of the Company including the right to approve the transfer agent, maintenance of insurance, approve the selection of management after performing background investigations, approve all capital expenditures, approve issuance of stock, approve opening new bank accounts and approve change in control of the Company. The Credit Agreement also provides that all cash receipts from customers are required to be deposited in a lock box account. Distributions from the lock box account are made to the Company only after obligations to TCA are satisfied. TCA with absolute discretion may withhold cash in the lock box in order to protect collateral. During the period ended September 30, 2016, the Company paid $304,239 in cash for principal and $84,522 for interest and fees. At September 30, 2016, the Note includes principal of $995,763 and accrued interest of $256,846 less unamortized debt discount of $28,572. See Note 10 – Convertible Promissory Note Derivative Liability. See Note 16 – Subsequent Events. On May 26, 2016, the Company entered into a Convertible Promissory Note (“Note”) with Group 10 Holdings, LLC (“Holder”) in the original principal amount of $100,000 bearing a 10% annual interest rate and maturing December 26, 2016. This Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 55% of the lowest trading price of any day during the 25 consecutive trading days prior to the date on which the Holder elects to convert all or part of the Note. The Company may prepay the Note at any time while outstanding for no prepayment penalty. At September 30, 2016, the Note includes principal of $100,000 and accrued interest of $54,881 less unamortized debt discount of $40,654. See Note 10 – Convertible Promissory Note Derivative Liability. On September 27, 2016, the Company entered into a Convertible Promissory Note (“Note”) with Carebourn Capital, L.P. (“Holder”) in the original principal amount of $236,325 less transaction costs of $36,325 bearing a 12% annual interest rate and maturing September 27, 2017. This Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 60% of the average of the three lowest trading prices of any day during the 20 consecutive trading days prior to the date on which the Holder elects to convert all or part of the Note. The Company may repay the Note if repaid within 180 days of date of issue at 130% of the original principal amount plus interest and between 181 days and 364 days at 150% of the original principal amount plus interest. Thereafter, the Company does not have the right of prepayment. At September 30, 2016, the Note includes principal of $236,325 and accrued interest of $1,683 less unamortized debt discount of $234,382. See Note 10 – Convertible Promissory Note Derivative Liability.

CONVERTIBLE PROMISSORY NOTE DER

CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY - RELATED PARTY	9 Months Ended
	Sep. 30, 2016
Line of Credit Facility [Abstract]
CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY - RELATED PARTY	Note 11– Convertible Promissory Note Derivative Liability The Convertible Promissory Notes with Labor Smart, Inc. with an issue date of December 18, 2015,TCA Global Credit Master Fund, LP with an issue date of April 5, 2016, Group 10 Holdings, LLC with an issue date of May 26, 2016 and Carebourn Capital, L.P. with and issue date of September 27, 2016 were accounted for under ASC 815. The variable conversion price is not considered predominately based on a fixed monetary amount settleable with a variable number of shares due to the volatility and trading volume of the Company’s common stock. The Company’s convertible promissory note derivative liability has been measured at fair value at September 30, 2016 using the binominal lattice model. The inputs into the binominal lattice model are as follows: Conversion price $0.17 - $1.07 per share Risk free rate 0.64% Expected volatility 177 – 219% Dividend yield 0% Expected life 0.01 - 0.99 years Changes in convertible promissory note derivative liability during the nine months ended September 30, 2016 were as follows: Opening balance at December 31, 2015 $ 178,959 Initial valuation of derivatives 1,052,612 Change in fair value of derivative Liability 418,031 Closing balance at September 30, 2016 $1,649,602 Changes in convertible promissory note derivative liability party during the three months ended September 30, 2016 were as follows: Opening balance at June 30, 2016 $ 376,176 Initial valuation of derivatives 200,000 Change in fair value of derivative Liability 1,073,426 Closing balance at September 30, 2016 $ 1,649,602

DUE TO STOCKHOLDER

DUE TO STOCKHOLDER	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
DUE TO STOCKHOLDER	Note 12– due to stockholder Amounts due to stockholder of $28,500 is non-interest bearing, unsecured and have no specific terms of repayment.

SERIES B PREFERRED STOCK

SERIES B PREFERRED STOCK	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
SERIES B PREFERRED STOCK	Note 13– Series B Preferred Stock On March 29, 2016, the Board of Directors Board designated sixty (60) shares of preferred stock, par value $0.001 per share as Series B Preferred Stock (“Series B Stock”). The Series B Stock is being issued to the owner of the Series B Preferred Stock (“Holder”) in connection with the Senior Secured Revolving Credit Facility Agreement between the Company and TCA, effective as of April 5, 2016 (Note 3). The Series B Stock is non-voting and not entitled to dividends. Upon liquidation, dissolution or winding up of the Company, the Holder is entitled to a liquidation preference of $25,000 per share of Series B Stock. The Holder may convert Series B Stock into shares of authorized but unissued common stock equal to $25,000 divided by the average VWAP for five business days immediately prior to the conversion date. The Company has classified Series B Stock as a liability in these consolidated financial statements in accordance with ASC 480, Liabilities – Distinguishing Liabilities from Equity, as the Series B Stock has a fixed monetary amount known at inception and is settable in a variable amount shares based on the fair value of the shares of the Company’s common stock. On April 1, 2016, the Company issued thirty (30) shares of the Company’s Series B Stock to TCA an advisory fee with a fair value of $750,000. The Series B Stock was issued in conjunction with the convertible note payable issued to TCA and was recorded as debt discount. The amount was classified as a current liability as the shares are expected to be redeemed within one year.

STOCKHOLDERS' DEFICIT

STOCKHOLDERS' DEFICIT	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
STOCKHOLDERS EQUITY	Note 14– Stockholders’ Deficit On March 8, 2016, the Company approved and effected a 1-for 50 reverse stock split of issued and outstanding common shares. All share information has been revised to reflect the reverse stock split from the Company’s inception. On April 1, 2016, the Company issued 600,000 shares of common stock with a fair value of $1,080,000 ($1.80 per share based on the closing price of the Company common stock on March 31, 2016) in conjunction with the Agreement for Purchase and Sale of Assets (Note 3). On April 1, 2016, a the purchase of the operating assets, the one (1) issued and outstanding share of Series A Preferred Stock owed by Labor Smart, Inc. was transferred to Kimberly Thompson, the Chief Executive Officer of the Company. On April 25, 2016, the Board of Directors authorized the issuance of 60,000 shares of common stock of the Company to Kimberly Thompson, the Chief Executive Officer of the Company, for compensation valued at $109,200 ($1.82 per share) is expensed immediately and is included in selling, general and administrative expense in the consolidated statement of operations. On July 11, 2016, the Company issued 7,000 shares of common stock for $7,000 in cash ($1.00 per share). Non-controlling interest During the nine months ended September 30, 2016, the subsidiary of the Company, Staff Fund I, LLC, issued membership interests for cash proceeds of $14,000. Opening balance at December 31, 2015 $ 0 Issue of membership interest 14,000 Net loss attributed to non-controlling interest (1,278) Closing balance at September 30, 2016 $ 12,722 Opening balance at June 30, 2016 $ 12,440 Net income (loss) attributed to non-controlling interest 282 Closing balance at September 30, 2016 $ 12,722

CONTINGENCIES AND COMMITMENTS

CONTINGENCIES AND COMMITMENTS	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES AND COMMITMENTS	Note 15- Contingencies and Commitments Litigation The Company may be subject to various claims relating to matters arising in the ordinary course of business that are typically covered by insurance. The amount of liability, if any, from these claims cannot be determined with certainty; however, management is of the opinion that the outcomes will not have a material adverse impact on the Company’s financial position or results of operations. Leases The Company leases space for five of its branch offices and for its corporate headquarters, located in Kennesaw, Georgia. For the three and nine months ended September 30, 2016 rent expense was $19,316 and $50,744, respectively. As of September 30, 2016, future minimum lease payments due under non-cancelable lease agreements having initial terms in excess of one year, including certain closed offices, are as follows: Years Amount 2016 (remaining) $ 26,062 2017 87,514 2018 48,133 2019 16,511 Total $ 178,220

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	Note 16- Subsequent Events In a letter dated December 13, 2016, the Company received from TCA Global Credit Master Fund, LP, a Notice of Default (“Notice”), concerning the Senior Secured Revolving Credit Facility Agreement (the “Credit Agreement”) with an effective date of April 5, 2016, for not filing a timely Form 10-Q for the quarter ended September 30, 2016 with the Securities Exchange Commission. The Company has ten (10) days from the date of the letter to remedy and cure this default or the default will constitute an “Event of Default” under the Credit Agreement. The Company believes this default is fully remedied and cured with the filing of this Form 10-Q.

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
BASIS OF PRESENTATION	Basis of presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for any subsequent quarter of for the year ending December 31, 2016. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K filed on April 13, 2016 for the year ended December 31, 2015.
PRINCIPLES OF CONSOLIDATION	principles of consolidation The condensed consolidated financial statements include the accounts of the Company’s one operating subsidiary. All significant inter-company transactions and balances are eliminated in consolidation.
USE OF ESTIMATES	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Significant matters requiring the use of estimates and assumptions include, but may not be limited to, accounts receivable allowances, goodwill, intangible assets, valuation allowance for deferred tax assets and valuation of derivative liabilities. Management believes that its estimates and assumptions are reasonable, based on information that is available at the time they are made.
REVENUE RECOGNITION	Revenue Recognition Contract staffing service revenues are recognized when services are rendered. The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 605 “Revenue Recognition”, which requires that four basic criteria be met before revenue can be recognized: (i) persuasive evidence that an arrangement exists; (ii) the price is fixed or determinable; (iii) collectability is reasonably assured; and (iv) services have been rendered.
CASH AND CASH EQUIVALENTS	Cash and Cash Equivalents The Company considers highly liquid investments with original maturities of three months or less when purchased as cash equivalents. At times throughout the year, the Company might maintain bank balances that may exceed Federal Deposit Insurance Corporation (FDIC) insured limits. Periodically, the Company evaluates the credit worthiness of the financial institutions, and has not experienced any losses in such accounts. As of September 30, 2016 and December 31, 2015, the Company did not have any cash equivalents.
CASH - RESTRICTED	Cash - Restricted Restricted cash represents cash in a lockbox account by held by TCA Global Credit Master Fund, LP in accordance with the Senior Secured Revolving Credit Facility Agreement. The Company considered $11,953, as restricted cash at September 30, 2016. No cash was considered restricted at December 31, 2015. (See Note 8)
ACCOUNTS RECEIVABLE	Accounts Receivable The Company extends credit to its customers based on an evaluation of the customer’s financial condition and ability to pay the Company in accordance with the payment terms. An allowance for doubtful accounts is recorded as a charge to bad debt expense where collection is considered doubtful due to credit issues. This allowance reflects management’s estimate of the potential losses inherent in the accounts receivable balance, based on historical loss statistics and known factors impacting its customers. The nature of the contract service business, where companies are dependent on employees for their production cycle, generally results in a nominal provision for doubtful accounts. Based on management’s review of accounts receivable, an allowance for doubtful accounts was not material for any of the periods presented. The Company charges uncollectible accounts against the allowance once the invoices are deemed unlikely to be collectible. The Company does not accrue interest on past due receivables.
NET (LOSS) INCOME PER COMMON SHARE	Net (Loss) Income per Common Share Net (loss) income per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of shares of common stock outstanding during the period. Diluted net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of shares of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent share arrangements, stock options and warrants. At September 30, 2016 and December 31, 2015, the Company excluded 3,686,245 and 151,963 shares of common stock issuable upon conversion of convertible notes payable and Series B Stock, respectively, as their effect would have been anti-dilutive.
IDENTIFIABLE INTANGIBLE ASSETS	Identifiable Intangible Assets Identifiable intangible assets consist primarily of customer relationships and non-compete contracts. These assets are tested for impairment using discounted cash flow methodology annually and whenever there is an impairment indicator. Estimating future cash flows requires significant judgment and projections may vary from cash flows eventually realized. Several impairment indicators are beyond the Company’s control, and determining whether or not they will occur cannot be predicted with any certainty. Customer relationships and non-compete contracts are amortized on a straight-line basis over an estimated life of five years.
GOODWILL	Goodwill Goodwill represents the premium paid over the fair value of the net tangible and identifiable intangible assets acquired in the Company’s business combinations. The Company performs a goodwill impairment test on at least an annual basis at the reporting unit level. Application of the goodwill impairment test requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the businesses, the useful life over which cash flows will occur and determination of our weighted average cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for each reporting unit. The Company will conduct its annual goodwill impairment test as of December 31 of each year or more frequently if indicators of impairment exist. The Company periodically analyzes whether any such indicators of impairment exist. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include a sustained significant decline in our stock price and market capitalization, a significant adverse change in legal factors or in the business climate, unanticipated competition and/or slower expected growth rates, adverse actions or assessments by a regulator, among others. The Company compares the fair value of its reporting unit to its respective carrying value, including related goodwill. Future changes in the industry could impact the results of future annual impairment tests. There can be no assurance that future tests of goodwill impairment will not result in impairment charges.
FAIR VALUE MEASUREMENT	Fair Value Measurement As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC (“ASC 820-10”), fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Convertible promissory notes payable and convertible promissory note derivative liability – related party is measured at fair value on a recurring basis using Level 3 inputs. The carrying amounts reported in the Company’s condensed consolidated financial statements for accounts receivable, prepaid expenses, accounts payable and accrued expenses approximate their fair value because of the immediate or short-term nature of these consolidated financial instruments. The carrying amounts reported in the condensed consolidated balance sheets for its line of credit and convertible notes payable approximates fair value as the contractual interest rate and features are consistent with similar instruments of similar risk in the market place.
CONVERTIBLE PROMISSORY NOTES	Convertible Promissory Notes i) Beneficial Conversion Feature If the conversion features of conventional convertible debt provides for a rate of conversion that is below market value, this feature is characterized as a beneficial conversion feature (“BCF”). A BCF is recorded by the Company as a debt discount pursuant to ASC Topic 470-20 “Debt with Conversion and Other Options.” In those circumstances, the convertible debt is recorded net of the discount related to the BCF and the Company amortizes the discount to interest expense over the life of the debt using the effective interest method. ii) Debt Discount The Company determines if the convertible debenture should be accounted for as a liability or equity under ASC 480, Liabilities — Distinguishing Liabilities from Equity. ASC 480, applies to certain contracts involving a Company's own equity, and requires that issuers classify the following freestanding financial instruments as liabilities. Mandatorily redeemable financial instruments, obligations that require or may require repurchase of the issuer's equity shares by transferring assets (e.g., written put options and forward purchase contracts), and certain obligations where at inception the monetary value of the obligation is based solely or predominantly on: – A fixed monetary amount known at inception, for example, a payable settleable with a variable number of the issuer's equity shares with an issuance date fair value equal to a fixed dollar amount, – Variations in something other than the fair value of the issuer's equity shares, for example, a financial instrument indexed to the S&P 500 and settleable with a variable number of the issuer's equity shares, or – Variations inversely related to changes in the fair value of the issuer's equity shares, for example, a written put that could be net share settled. If the entity determined the instrument meets the guidance under ASC 480 the instrument is accounted for as a liability with a respective debt discount. The Company records debt discounts in connection with raising funds through the issuance of convertible debt. These costs are amortized to non-cash interest expense over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed. iii) Derivative Financial Instruments Derivative financial instruments, as defined in ASC 815, “Accounting for Derivative Financial Instruments and Hedging Activities”, consist of financial instruments or other contracts that contain a notional amount and one or more underlying (e.g. interest rate, security price or other variable), require no initial net investment and permit net settlement. Derivative financial instruments may be free-standing or embedded in other financial instruments. Further, derivative financial instruments are initially, and subsequently, measured at fair value and recorded as liabilities or, in rare instances, assets. The Company does not use derivative financial instruments to hedge exposures to cash-flow, market or foreign-currency risks. However, the Company has issued financial instruments including senior convertible promissory notes payable and freestanding stock purchase warrants with features that are either (i) not afforded equity classification, (ii) embody risks not clearly and closely related to host contracts, or (iii) may be net-cash settled by the counterparty. As required by ASC 815, in certain instances, these instruments are required to be carried as derivative liabilities, at fair value, in our consolidated financial statements.
RECENT ACCOUNTING PRONOUNCEMENTS	Recent Accounting Pronouncements In April 2015, the FASB issued a new accounting standard which changes the presentation of debt issuance costs in financial statements. Under the new standard, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. The accounting standard is effective for annual reporting periods beginning after December 15, 2015 and was adopted in the first quarter of 2016. In March 2016, the FASB issued a new accounting standard which is intended to simplify the accounting for share-based compensation. This standard simplifies the accounting for income taxes in relation to share-based compensation, modifies the accounting for forfeitures, and modifies the statutory tax withholding requirements. This standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the new accounting standard will have on its consolidated financial position, results of operations or cash flows. In April 2016, the FASB issued ASU No. 2016-10 (“ASU 2016-10”), “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” ASU 2016-10 will affect all entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments in this update affect the guidance in ASU 2014-09 which is not yet effective, the amendments in this update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The effective date and transition requirements for the amendments in this update are effective in the annual period ending December 31, 2017, including interim periods within that annual period. The Company is currently evaluating the effect that ASU 2016-10 will have on the Company’s consolidated financial position and results of operations. In May 2016, the FASB issued ASU No. 2016-12 (“ASU 2016-12”), “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” ASU 2016-12 will affect all entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments in this update affect the guidance in ASU 2014-09 which is not yet effective, the amendments in this update affect narrow aspects of Topic 606 including among others: assessing collectability criterion, noncash consideration, and presentation of sales taxes and other similar taxes collected from customers. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements for ASU 2016-10. The Company is currently evaluating the effect that ASU 2016-12 will have on the Company’s consolidated financial position and results of operations. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 is intended to address how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the effect that ASU 2016-15 will have on the Company’s consolidated financial position and results of operations.

BUSINESS ACQUISITION (Tables)

BUSINESS ACQUISITION (Tables)	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Schedule of Assets Acquired and Liabilities Assumed at Fair Value, Business Acquisitions	The preliminary allocation of the purchase price and the estimated fair market values of the assets acquired and liabilities assumed are shown below: Customer Relationships $ 1,130,000 Non-complete Agreements 70,000 Goodwill 1,466,000 Purchase Price $ 2,666,000
Schedule of Unaudited pro Forma Results Of Operations	The pro forma results do not include any anticipated cost savings or other effects of the planned integration of these entities, and are not necessarily indicative of the results that would have occurred if the business combinations had been in effect on the dates indicated, or which may result in the future. Nine months Ended September 30, 2016 Three Months Ended September 30, 2015 Nine months Ended September 30, 2015 Net revenues $ 4,391,233 $ 1,602,663 $ 4,580,628 Income (loss) from operations $ (18,364) $ (8,603) $ (114,675) Net loss $ (2,769,407) $ (63,973) $ (237,3161) Net loss per share $ (2.67) $ (0.09) $ (0.32)

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Discontinued Operations	The following table summarizes the results from discontinued operations: Three Months Ended September 30, 2015 Nine months Ended September 30, 2015 NET REVENUES Contract staffing services $ 3,393,046 $ 10,832,933 COST OF SERVICES 2,777,902 8,855,709 GROSS PROFIT 615,144 1,977,224 SELLING, GENERAL AND ADMINISTRATIVE 572,495 1,791,524 INCOME FROM OPERATIONS 42,649 185,700 OTHER EXPENSE (45,453) (146,265) INCOME (LOSS) FROM OPERATIONS BEFORE PROVISION FOR INCOME TAXES (2,804) 39,435 (Provision) benefit for income taxes - - NET INCOME (LOSS) OF EMPLOYUS, LTD. $ (2,804) $ 39,435

IDENTIFIABLE INTANGIBLE ASSETS

IDENTIFIABLE INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets comprise customer relationships and non-compete agreements which are recorded at cost. September 30, 2016 December 31, 2015 Customer relationships $ 1,130,000 $ - Non-compete agreements 70,000 - 1,200,000 - Accumulated amortization (120,000 ) - Identifiable Intangible Assets $ 1,080,000 $ -

CONVERTIBLE PROMISSORY NOTE D27

CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY - RELATED PARTY (Tables)	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Inputs of binominal lattice model	The inputs into the binominal lattice model are as follows: Conversion price $0.17 - $1.07 per share Risk free rate 0.64% Expected volatility 177 – 219% Dividend yield 0% Expected life 0.01 - 0.99 years
Schedule of Change in convertible promissory note derivative liability - related party [Table Text Block]	Changes in convertible promissory note derivative liability during the nine months ended September 30, 2016 were as follows: Opening balance at December 31, 2015 $ 178,959 Initial valuation of derivatives 1,052,612 Change in fair value of derivative Liability 418,031 Closing balance at September 30, 2016 $1,649,602 Changes in convertible promissory note derivative liability party during the three months ended September 30, 2016 were as follows: Opening balance at June 30, 2016 $ 376,176 Initial valuation of derivatives 200,000 Change in fair value of derivative Liability 1,073,426 Closing balance at September 30, 2016 $ 1,649,602

STOCKHOLDERS' DEFICIT (Tables)

STOCKHOLDERS' DEFICIT (Tables)	9 Months Ended
	Sep. 30, 2016
Stockholders Deficit Tables
Schedule of Non Controlling Interest	During the nine months ended September 30, 2016, the subsidiary of the Company, Staff Fund I, LLC, issued membership interests for cash proceeds of $14,000. Opening balance at December 31, 2015 $ 0 Issue of membership interest 14,000 Net loss attributed to non-controlling interest (1,278) Closing balance at September 30, 2016 $ 12,722 Opening balance at June 30, 2016 $ 12,440 Net income (loss) attributed to non-controlling interest 282 Closing balance at September 30, 2016 $ 12,722

CONTINGENCIES AND COMMITMENTS (

CONTINGENCIES AND COMMITMENTS (Tables)	9 Months Ended
	Sep. 30, 2016
Contingencies And Commitments Tables
Schedule of future minimum lease payments due	As of September 30, 2016, future minimum lease payments due under non-cancelable lease agreements having initial terms in excess of one year, including certain closed offices, are as follows: Years Amount 2016 (remaining) $ 26,062 2017 87,514 2018 48,133 2019 16,511 Total $ 178,220

SUMMARY OF SIGNIFICANT ACCOUN30

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Cash - restricted	$ 11,953	$ 0
Cash equivalents	$ 0	$ 0

BUSINESS ACQUISITION (Details)

BUSINESS ACQUISITION (Details) - USD ($)	Apr. 02, 2016	Sep. 30, 2016	Dec. 31, 2015
Customer Relationships		$ 1,130,000	$ 0
Non-complete Agreements		70,000	0
Goodwill		$ 1,466,000	$ 0
Labor Smart Inc [Member]
Customer Relationships	$ 1,130,000
Non-complete Agreements	70,000
Goodwill	1,466,000
Purchase Price	$ 2,666,000

BUSINESS ACQUISITION (Details 2

BUSINESS ACQUISITION (Details 2) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income (loss) from operations	$ 200,916		$ (9,931)	$ 95,618	$ (166,221)
Net loss	$ (1,858,428)		$ (35,556)	$ (2,642,658)	$ (155,811)
Net loss per share	$ (1.46)		$ (0.04)	$ (2.55)	$ (0.21)
Predecessor [Member]
Income (loss) from operations		$ (113,982)	$ 788		$ 51,546
Net loss		$ (125,471)	(30,417)		(42,070)
Labor Smart Inc [Member] | Pro Forma [Member]
Net revenues			1,602,663	$ 4,391,233	4,580,628
Income (loss) from operations			(8,603)	(18,364)	(114,675)
Net loss			$ (63,973)	$ (2,769,407)	$ (2,373,161)
Net loss per share			$ (0.09)	$ (2.67)	$ (0.32)

BUSINESS ACQUISITION (Details N

BUSINESS ACQUISITION (Details Narrative) - USD ($)	Apr. 02, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Cash Paid		$ 1,080,000	$ 0
Shares Issued for Business Acquisition		1,269,436		602,436
Common Stock at Fair Value		$ 1,269		$ 602
Labor Smart Inc [Member]
Total Consideration Paid, Fair Value	$ 2,666,000
Cash Paid	$ 890,890
Shares Issued for Business Acquisition	600,000
Common Stock at Fair Value	$ 1,080,000
Promissory Note, Face Value	755,000
Promissory Note, Fair Value	506,000
Outstanding Debt	29,110
Payment to IRS on behalf of Labor Smart, Inc.	$ 160,000

LIQUIDITY AND CAPITAL RESOURC34

LIQUIDITY AND CAPITAL RESOURCES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Notes to Financial Statements
Stockholders' deficit	$ (1,779,775)		$ (1,779,775)		$ (346,039)
Working capital deficit	(3,764,394)		(3,764,394)
Net loss	(1,858,146)	$ (35,556)	(2,643,936)	$ (155,811)
Cash	$ 209,048		$ 209,048

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
NET REVENUES
Contract staffing services	$ 1,433,073	$ 0	$ 3,051,564	$ 0
COST OF SERVICES	896,448	0	2,009,958	0
GROSS PROFIT	536,625	0	1,041,606	0
SELLING, GENERAL AND ADMINISTRATIVE	129,768	9,931	537,730	166,221
INCOME FROM OPERATIONS	200,916	(9,931)	95,618	(166,221)
OTHER EXPENSE	(2,059,062)	(22,821)	(2,739,554)	(29,025)
(Provision) benefit for income taxes	0	0	0	0
NET INCOME OF EMPLOYUS, LTD.	0	$ 0	0	$ 0
Discontinued Operations [Member]
NET REVENUES
Contract staffing services	3,393,046		10,832,933
COST OF SERVICES	2,777,902		8,855,709
GROSS PROFIT	615,144		1,977,224
SELLING, GENERAL AND ADMINISTRATIVE	572,495		1,791,524
INCOME FROM OPERATIONS	42,649		185,700
OTHER EXPENSE	(45,453)		(146,265)
INCOME FROM OPERATIONS BEFORE PROVISION FOR INCOME TAXES	(2,804)		39,435
(Provision) benefit for income taxes	0		0
NET INCOME OF EMPLOYUS, LTD.	$ (2,804)		$ 39,435

IDENTIFIABLE INTANGIBLE ASSET36

IDENTIFIABLE INTANGIBLE ASSETS (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Customer Relationships	$ 1,130,000	$ 0
Non-complete Agreements	70,000	0
Identifiable Intangible Assets, Gross	1,200,000	0
Accumulated amortization	(120,000)	0
Identifiable Intangible Assets	$ 1,080,000	$ 0

IDENTIFIABLE INTANGIBLE ASSET37

IDENTIFIABLE INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization	$ 60,000	$ 0	$ 120,000	$ 0
2016 (remaining)	60,000		60,000
2,017	240,000		240,000
2,018	240,000		240,000
2,019	240,000		240,000
2,020	$ 240,000		$ 240,000

ACCOUNTS PAYABLE - RELATED PA38

ACCOUNTS PAYABLE - RELATED PARTY (Details Narrative) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accounts payable - related party	$ 805,970	$ 0

CONVERTIBLE PROMISSORY NOTE -39

CONVERTIBLE PROMISSORY NOTE - RELATED PARTY (Details Narrative)	Dec. 31, 2015USD ($)
Convertible Promissory Note - Related Party Details Narrative
Convertible Promissory Note, Original Principal Amount	$ 80,000
Convertible Promissory Note, at a fully accreted value	31,091
Unamortized debt discount	$ 16,925

CONVERTIBLE PROMISSORY NOTE D40

CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY - RELATED PARTY (Details)	9 Months Ended
	Sep. 30, 2016$ / shares
Risk free rate	0.64%
Dividend yield	0.00%
Minimum [Member]
Conversion price	$ 0.17
Expected volatility	177.00%
Expected life	4 days
Maximum [Member]
Conversion price	$ 1.07
Expected volatility	219.00%
Expected life	11 months 27 days

CONVERTIBLE PROMISSORY NOTE D41

CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY - RELATED PARTY (Details 2) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Convertible Promissory Note Derivative Liability - Related Party Details 2
Opening balance	$ 376,176		$ 178,959
Initial valuation of derivatives	200,000		1,052,612
Change in fair value of derivative liability	1,073,425	$ 0	418,031	$ 0
Closing balance	$ 1,649,602		$ 1,649,602

STOCKHOLDERS' DEFICIT (Details)

STOCKHOLDERS' DEFICIT (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stockholders Deficit Details
Opening Balance	$ 12,440		$ 0
Issue of membership interest			14,000	$ 0
Net loss attributed to non-controlling interest	282	$ 0	(1,278)	$ 0
Ending Balance	$ 12,722		$ 12,722

STOCKHOLDERS' DEFICIT (Details

STOCKHOLDERS' DEFICIT (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Apr. 29, 2015	Jul. 01, 2014
Class of Stock [Line Items]
Common Stock, Par or Stated Value Per Share	$ 0.001		$ 0.001
Proceeds from Issuance of Common Stock	$ 80,000	$ 150,000
Preferred Stock, Shares Authorized	5,000,000		5,000,000
Common Stock, Shares, Issued	1,269,436		602,436
Share-based Compensation	$ 109,200	0
Debt Conversion, Converted Instrument, Shares Issued	293,334
Stock Issued During Period, Value, Issued for Services	$ 0	$ (500,000)
Additional Paid-in Capital [Member]
Class of Stock [Line Items]
Stock Issued During Period, Value, Issued for Services	$ (2,700)
Common Stock [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues	40,000
Stock Issued During Period, Shares, Issued for Services	26,668
Stock Issued During Period, Value, Issued for Services	$ (27)
Parent [Member]
Class of Stock [Line Items]
Common Stock, Par or Stated Value Per Share					$ 0.001
Convertible Notes Payable [Member]
Class of Stock [Line Items]
Debt Conversion, Converted Instrument, Amount	$ 60,000
Debt Conversion, Converted Instrument, Shares Issued	5,867
Debt Instrument, Convertible, Conversion Price			$ 0.225
Debt Instrument, Increase, Accrued Interest	$ 6,000
TwoInvestor [Member] | StockPurchaseAgreement [Member]
Class of Stock [Line Items]
Common Stock, Par or Stated Value Per Share			$ 0.30	$ 0.15
Proceeds from Issuance of Common Stock	$ 60,000
Common Stock, Shares, Issued			200,000	26,668
Consultant [Member] | ConsultingAgreement [Member]
Class of Stock [Line Items]
Common Stock, Par or Stated Value Per Share			$ 0.50
Stock Issued During Period, Shares, Issued for Services	1,000,000
Share-based Compensation	$ 379,452
Stock Issued During Period, Value, Issued for Services	$ (500,000)
InvestorOne [Member]
Class of Stock [Line Items]
Common Stock, Par or Stated Value Per Share			$ 0.15
Stock Issued During Period, Shares, New Issues	600,000
Proceeds from Issuance of Common Stock	$ 90,000

CONTINGENCIES AND COMMITMENTS44

CONTINGENCIES AND COMMITMENTS (Details)	Sep. 30, 2016USD ($)
Contingencies And Commitments Details
2016 (remaining)	$ 26,062
2,017	87,514
2,018	48,133
2,019	16,511
Total	$ 178,220

CONTINGENCIES AND COMMITMENTS45

CONTINGENCIES AND COMMITMENTS (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Contingencies And Commitments Details Narrative
Operating Leases, Rent Expense	$ 19,316	$ 50,744