Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF OPERATIONS

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
CONSOLIDATED STATEMENTS OF OPERATIONS    
Revenues $ 36,629,276 $ 18,977,794
Expenses    
Cost of revenues 19,064,473 16,603,792
Amortization of patents and website 7,453,004 10,825,164
Compensation and related taxes 5,483,031 5,419,252
Consulting fees 1,279,092 2,324,248
Professional fees 1,797,922 2,548,492
General and administrative 840,179 1,143,869
Goodwill impairment 4,336,307 0
Patent impairment 11,958,882 5,793,409
Total operating expenses 52,212,890 44,658,226
Operating loss from continuing operations (15,583,614) (25,680,432)
Other income (expenses)    
Other income (expense) (57,454) 170,706
Foreign exchange gain (loss) (367,847) (61,868)
Change in fair value adjustment of Clouding IP earn out 1,832,872 6,137,116
Interest income 4,353 1,068
Interest expense (3,140,375) (4,245,982)
Loss on debt extinguishment   (1,416,915)
Total other income (expenses) (1,728,451) 584,125
Loss before benefit for income taxes (17,312,065) (25,096,307)
Income tax benefit (expense) (11,516,807) 8,156,448
Net loss (28,828,872) (16,939,859)
Net loss attributable to non-controlling interests 163,848  
Net loss attributable to common shareholders $ (28,665,024) $ (16,939,859)
Loss per common share:    
Basic and fully diluted (in dollars per share) $ (1.89) $ (1.19)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:    
Basic and diluted (in shares) 15,178,056 14,208,787