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Quarterly Financial Information for Fiscal 2019 and Fiscal 2018

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information for Fiscal 2019 and Fiscal 2018

27. Quarterly Financial Information for Fiscal 2019 and Fiscal 2018

The following tables summarize the quarterly and annual financial information for fiscal 2019 and fiscal 2018, as applicable.

Condensed Consolidated Balance Sheets

			As of
	Table		March 31, 2019 (unaudited)			June 30, 2019 (unaudited)			September 30, 2019 (unaudited)			December 31, 2018
Assets
Current assets:
Cash and cash equivalents			$	2,138,593		$	13,149,604		$	1,973,435		$	2,406,596
Restricted cash (see Note 2)				120,718			120,749			620,779			120,693
Accounts receivable, net		A		2,718,004			2,006,938			3,319,124			-
Factor receivables		A		-			-			-			6,130,674
Subscription acquisition costs		A		17,056			-			-			17,056
Royalty fees (see Note 5)				-			15,000,000			15,000,000			-
Convertible preferred stock subscription receivable				-			8,100,000			-			-
Prepayments and other current assets		B		842,393			718,232			2,893,870			858,323
Total current assets				5,836,764			39,095,523			23,807,208			9,533,342
Advance relating to acquisition of TheStreet (see Note 3)				-			16,500,000			-			-
Operating lease right-of-use assets (see Note 7)				829,155			724,758			1,912,932			-
Property and equipment, net				61,506			73,053			739,339			68,830
Platform development, net		C		4,723,236			5,049,194			5,556,978			4,707,956
Royalty fees, net of current portion (see Note 5)				-			30,000,000			30,000,000			-
Acquired and other intangible assets, net		D		14,568,858			13,733,958			25,032,710			15,403,758
Other long-term assets				182,238			92,002			959,469			119,630
Goodwill		E		7,324,287			7,324,287			16,139,377			7,324,287
Total assets			$	33,526,044		$	112,592,775		$	104,148,013		$	37,157,803
Liabilities, mezzanine equity and stockholders’ (deficiency)
Current liabilities:
Accounts payable			$	2,527,428		$	2,271,503		$	3,990,958		$	4,943,767
Accrued expenses and other		F		3,279,517			5,228,542			7,247,859			2,382,047
Line of credit (see Note 13)				897,653			1,463,598			1,025,494			1,048,194
Liquidated damages payable		G		3,744,285			5,689,738			5,689,738			3,647,598
Unearned revenue		A		98,229			96,350			6,819,242			396,407
Warrant derivative liabilities		H		1,739,930			1,906,005			1,836,894			1,364,235
Embedded derivative liabilities		I		10,780,000			12,240,000			17,861,000			7,387,000
Officer promissory notes, including accrued interest (see Note 16)				315,065			316,801			318,459			680,399
Total current liabilities				23,382,107			29,212,537			44,789,644			21,849,647
Unearned revenues, net of current portion		A		252,500			252,500			710,119			252,500
Operating lease liabilities, net of current portion		J		439,599			336,289			745,075			-
Other long-term liability				242,310			242,310			242,310			242,310
Investor liability				-			-			875,000			-
Deferred rent				-			-			-			46,335
Convertible debt		L		9,160,861			10,492,770			11,865,866			7,270,939
Long-term debt (see Note 18)				-			59,870,303			48,272,995			-
Total liabilities				33,477,377			100,406,709			107,501,009			29,661,731
Commitments and contingencies (see Note 26)
Mezzanine equity:
Series G redeemable and convertible preferred stock, $0.01 par value, $1,000 per share liquidation value; aggregate liquidation value $168,496; Series G shares designated: 1,800 for each respective period presented; Series G shares issued and outstanding: 168,496; common shares issuable upon conversion: 188,791 shares for each respective period presented				168,496			168,496			168,496			168,496
Series H convertible preferred stock, $0.01 par value, $1,000 per share liquidation value; aggregate liquidation value $19,399,250; Series H shares designated: 23,000; Series H shares issued and outstanding: 19,400 for each respective period presented; common shares issuable upon conversion: 58,787,879 shares for each respective period presented				18,045,496			18,045,496			18,045,496			18,045,496
Series I convertible preferred stock, $0.01 par value, $1,000 per share liquidation value; aggregate liquidation value $25,800,000; Series I shares designated: 25,800; Series I shares issued and outstanding: 23,100 for each respective period presented; common shares issuable upon conversion: 46,200,000 shares for each respective period presented				-			19,753,600			19,753,600			-
Total mezzanine equity				18,213,992			37,967,592			37,967,592			18,213,992
Stockholders’ (deficiency):
Common stock, $0.01 par value, authorized 1,000,000,000 shares: issued and outstanding (1)				376,861			369,389			373,532			357,685
Common stock to be issued				39,383			39,383			39,383			51,272
Additional paid-in capital				24,893,365			27,870,197			32,006,113			23,413,077
Accumulated deficit				(43,474,934	)		(54,060,495	)		(73,739,616	)		(34,539,954	)
Total stockholders’ (deficiency)				(18,165,325	)		(25,781,526	)		(41,320,588	)		(10,717,920	)
Total liabilities, mezzanine equity and stockholders’ (deficiency)			$	33,526,044		$	112,592,775		$	104,148,013		$	37,157,803
(1) Common stock issued and outstanding				37,686,173			36,938,927			37,353,258			35,768,619

The Company’s results of operations vary and may continue to fluctuate significantly from quarter to quarter. The results of operations in any period should not necessarily be considered indicative of the results to be expected from any future period.

Condensed Consolidated Statements of Operations (unaudited)

			Three Months Ended March 31,
	Table		2019			2018
Revenue		M	$	6,273,963		$	86,685
Cost of revenue (1)		K		5,652,565			1,035,708
Gross profit (loss)				621,398			(949,023	)
Operating expenses:
Selling and marketing		K		1,149,292			153,505
General and administrative		K		4,225,253			2,463,771
Depreciation and amortization				108,340			5,630
Total operating expenses				5,482,885			2,622,906
Loss from operations				(4,861,487	)		(3,571,929	)
Other (expense) income:
Change in valuation of warrant derivative liabilities (see Note 15)				(375,695	)		-
Change in valuation of embedded derivative liabilities (see Note 15)				(2,383,000	)		-
Interest expense		N		(1,301,208	)		-
Interest income				3,171			-
Liquidated damages (see Note 23)				(16,887	)		-
Other Income				126			-
Total other expense				(4,073,493	)		-
Loss before income taxes				(8,934,980	)		(3,571,929	)
Benefit for income taxes				-			-
Net loss attributable to common shareholders			$	(8,934,980	)	$	(3,571,929	)
Basic and diluted net loss per common share			$	(0.26	)	$	(0.16	)
Weighted average number of shares outstanding – basic and diluted				34,837,518			22,934,369
(1) Amortization included in cost of revenues			$	1,324,970		$	349,512

			Three Months Ended June 30,						Six Months Ended June 30,
	Table		2019			2018			2019			2018
Revenue		M	$	5,770,283		$	216,356		$	12,044,246		$	303,041
Cost of revenue (1)		K		5,487,172			1,102,813			11,139,737			2,138,521
Gross profit (loss)				283,111			(886,457	)		904,509			(1,835,480	)
Operating expenses:
Selling and marketing		K		1,451,101			761,135			2,600,393			914,640
General and administrative		K		5,871,015			2,222,187			10,096,268			4,685,958
Depreciation and amortization				107,637			6,615			215,977			12,245
Total operating expenses				7,429,753			2,989,937			12,912,638			5,612,843
Loss from operations				(7,146,642	)		(3,876,394	)		(12,008,129	)		(7,448,323	)
Other (expense) income:
Change in valuation of warrant derivative liabilities (see Note 15)				(166,075	)		-			(541,770	)		-
Change in valuation of embedded derivative liabilities (see Note 15)				(1,396,000	)		128,544			(3,779,000	)		128,544
True-up termination fee				-			(1,344,648	)		-			(1,344,648	)
Interest expense		N		(1,876,054	)		(123,543	)		(3,177,262	)		(123,543	)
Interest income				63			14,384			3,234			14,384
Liquidated damages (see Note 23)				(853	)		(15,001	)		(17,740	)		(15,001	)
Other Income				-			-			126			-
Total other expense				(3,438,919	)		(1,340,264	)		(7,512,412	)		(1,340,264	)
Loss before income taxes				(10,585,561	)		(5,216,658	)		(19,520,541	)		(8,788,587	)
Benefit for income taxes				-			-			-			-
Net loss attributable to common shareholders			$	(10,585,561	)	$	(5,216,658	)	$	(19,520,541	)	$	(8,788,587	)
Basic and diluted net loss per common share			$	(0.30	)	$	(0.21	)	$	(0.55	)	$	(0.36	)
Weighted average number of shares outstanding – basic and diluted				35,556,188			25,290,190			35,208,771			24,258,944
(1) Amortization included in cost of revenues			$	1,361,319		$	433,204		$	2,686,289		$	782,716

			Three Months Ended September 30,						Nine Months Ended September 30,
	Table		2019			2018			2019			2018
Revenue		M	$	7,586,020		$	1,157,917		$	19,630,266		$	1,460,958
Cost of revenue (1)		K		7,612,585			1,784,073			18,752,322			3,922,594
Gross profit (loss)				(26,565	)		(626,156	)		877,944			(2,461,636	)
Operating expenses:
Selling and marketing		K		2,059,820			425,326			4,660,213			1,339,966
General and administrative		K		7,262,496			2,546,369			17,358,764			7,232,328
Depreciation and amortization				349,604			12,715			565,581			24,960
Total operating expenses				9,671,920			2,984,410			22,584,558			8,597,254
Loss from operations				(9,698,485	)		(3,610,566	)		(21,706,614	)		(11,058,890	)
Other (expense) income:
Change in valuation of warrant derivative liabilities (see Note 15)				(666,075	)		(324,485	)		(1,207,845	)		(324,485	)
Change in valuation of embedded derivative liabilities (see Note 15)				(5,621,000	)		459,472			(9,400,000	)		588,016
True-up termination fee				-			-			-			(1,344,648	)
Settlement of promissory notes receivable				-			(1,166,556	)		-			(1,166,556	)
Interest expense		N		(3,701,310	)		(1,428,463	)		(6,878,572	)		(1,552,006	)
Interest income				7,749			2,199			10,983			16,583
Liquidated damages (see Note 23)				-			(2,652,798	)		(17,740	)		(2,667,798	)
Other Income				-			-			126			-
Total other expense				(9,980,636	)		(5,110,631	)		(17,493,048	)		(6,450,894	)
Loss before income taxes				(19,679,121	)		(8,721,197	)		(39,199,662	)		(17,509,784	)
Benefit for income taxes				-			91,633			-			91,633
Net loss				(19,679,121	)		(8,629,564	)		(39,199,662	)		(17,418,151	)
Deemed dividend on Series H convertible preferred stock				-			(18,045,496	)		-			(18,045,496	)
Net loss attributable to common shareholders			$	(19,679,121	)	$	(26,675,060	)	$	(39,199,662	)	$	(35,463,647	)
Basic and diluted net loss per common share			$	(0.54	)	$	(0.96	)	$	(1.10	)	$	(1.40	)
Weighted average number of shares outstanding – basic and diluted				36,240,837			27,835,555			35,562,878			25,382,551
(1) Amortization included in cost of revenues			$	1,623,783		$	629,888		$	4,310,072		$	1,412,604

Condensed Consolidated Statements of Cash Flows (unaudited)

	Three Months Ended						Six Months Ended						Nine Months Ended
	March 30,						June 30,						September 30,
	2019			2018			2019			2018			2019			2018
Cash flows from operating activities
Net loss	$	(8,934,980	)	$	(3,571,929	)	$	(19,520,541	)	$	(8,788,587	)	$	(39,199,662	)	$	(17,418,151	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property and equipment		10,940			355,142			21,177			12,243			125,188			19,341
Amortization of platform development and intangible assets		1,422,370			-			2,881,089			782,717			4,750,465			1,418,223
Amortization of debt discounts		686,044			-			1,580,796			86,121			3,060,772			373,663
Change in valuation of warrant derivative liabilities		375,695			-			541,770			(128,544	)		1,207,845			(263,531	)
Change in valuation of embedded derivative liabilities		2,383,000			-			3,779,000			-			9,400,000			-
True-up termination fee		-			-			-			1,344,648			-			1,344,648
Settlement of promissory notes receivable		-			-			-			-			-			1,166,556
Loss on extinguishment of debt		-			-			-			-			-			1,099,165
Accrued interest		405,186			-			907,582			26,841			2,439,798			-
Liquidated damages		16,887			-			17,740			15,001			17,740			2,667,798
Stock-based compensation		1,319,627			1,350,892			3,959,925			2,191,132			6,951,074			3,416,110
Deferred income taxes		-			-			-			-			-			(91,633	)
Other		(29,911	)		-			(6,812	)		10,159			14,793			-
Change in operating assets and liabilities net of effect of business combinations:
Accounts receivable		9,573,255			(20,469	)		10,261,222			(154,938	)		10,513,462			(491,644	)
Factor receivables		(6,130,674	)		-			(6,130,674	)		-			(6,130,674	)		-
Subscription acquisition costs		-			(3,808	)		17,056			-			17,056			(5,191	)
Prepaid royalty fees		-			-			(45,000,000	)		-			(45,000,000	)		-
Prepayments and other current assets		15,930			(378,506	)		140,091			(115,935	)		(285,199	)		(101,603	)
Other long-term assets		(62,608	)		-			27,628			-			(150,327	)		-
Accounts payable		(2,416,339	)		310,018			(2,672,264	)		383,024			(2,266,032	)		467,083
Accrued expenses		460,775			163,891			2,414,501			253,209			1,314,037			81,689
Unearned revenue		(298,178	)		5,711			(300,057	)		(7,674	)		638,119			11,537
Operating lease liabilities		804			-			(2,810	)		-			(164,420	)		-
Deferred rent		-			-			-			(14,384	)		-			17,245
Net cash used in operating activities		(1,202,177	)		(1,789,058	)		(47,083,581	)		(4,104,967	)		(52,745,965	)		(6,288,695	)
Cash flows from investing activities
Purchases of property and equipment		(3,616	)		(7,848	)		(25,400	)		(25,292	)		(77,222	)		(29,259	)
Capitalized platform development		(434,802	)		(553,161	)		(980,257	)		(1,132,339	)		(1,744,340	)		(1,660,331	)
Payments of promissory notes receivable, net of advances for acquisition of business		-			(1,000,000	)		-			(1,000,000	)		-			(3,695,054	)
Advance related to pending acquisition of TheStreet, Inc.		-			-			(16,500,000	)		-			-			-
Payments for acquisition of businesses, net of cash		-			-			-			(5,000,000	)		(16,000,000	)		(9,032,596	)
Net cash used in investing activities		(438,418	)		(1,561,009	)		(17,505,657	)		(7,157,631	)		(17,821,562	)		(14,417,240	)
Cash flows from financing activities
Proceeds from issuance of Series H convertible preferred stock		-			-			-			-			-			12,474,704
Proceeds from issuance of debt		-			-			68,000,000			-			71,000,000			-
Repayments of long-term debt		-			-			(4,640,000	)		-			(17,307,364	)		-
Payment of debt issuance costs		(10,000	)		-			(3,595,000	)		-			(7,162,382	)		-
Proceeds from 8% promissory notes		-			-			-			1,000,000			-			1,000,000
Payment of 8% promissory notes		-			-			-			-			-			(1,351,334	)
Proceeds from 10% convertible debentures		-			-			-			4,775,000			-			4,775,000
Proceeds from 12% convertible debentures		1,900,000			-			2,000,000			-			2,000,000			-
Proceeds from issuance of Series I convertible preferred stock		-			-			15,000,000			-			23,100,000			-
Investor liability related to proceeds received in advance of issuance of Series J convertible preferred stock		-			-			-			-			875,000			-
Proceeds from private placement of common stock		-			1,250,000			-			1,250,000			-			1,250,000
Payment of issuance costs of Series I convertible preferred stock		-			-			(1,406,000	)		-			(1,406,000	)		-
Payment of issuance costs of Series H convertible preferred stock		-			-			-			-			-			(159,208	)
Borrowings (repayments) under line of credit		(150,541	)		-			415,404			-			(22,700	)		-
Payment for taxes related to repurchase of restricted common stock		-			-			(75,260	)		-			(75,260	)		-
Proceeds from officer promissory notes		-			-			-			797,982			-			1,009,447
Repayment of officer promissory notes		(366,842	)		-			(366,842	)		(63,446	)		(366,842	)		(49,911	)
Net cash provided by financing activities		1,372,617			1,250,000			75,332,302			7,759,536			70,634,452			18,948,698
Net (decrease) increase in cash, cash equivalents, and restricted cash		(267,978	)		(2,100,067	)		10,743,064			(3,503,062	)		66,925			(1,757,237	)
Cash, cash equivalents, and restricted cash — beginning of period		2,527,289			3,619,249			2,527,289			3,619,249			2,527,289			3,619,249
Cash, cash equivalents, and restricted cash — end of period	$	2,259,311		$	1,519,182		$	13,270,353		$	116,187		$	2,594,214		$	1,862,012
Supplemental disclosure of cash flow information
Cash paid for interest	$	209,978		$	-		$	731,126		$	449		$	1,383,644		$	23,575
Cash paid for income taxes		-			-			-			-
Noncash investing and financing activities
Reclassification of stock-based compensation to platform development	$	167,948		$	907,978		$	572,270		$	1,146,396		$	985,994		$	1,508,889
Discount on 8% promissory notes allocated to warrant derivative liabilities		-			-			-			760,499			-			760,499
Discount on 10% original issue discount senior convertible debentures allocated to warrant derivative liabilities		-			-			-			2,088,380			-			471,002
Discount on 12% senior convertible debentures allocated to embedded derivative liabilities		1,010,000			-			1,074,000			-			1,074,000			-
Exercise of warrants for issuance common shares		-			-			-			-			735,186			-
Liquidated damages liability recorded against cash proceeds for 12% senior convertible debentures		79,800			-			84,000			-			84,000			-
Liquidated damages liability recorded against cash proceeds for Series I convertible preferred stock		-			-			1,940,400			-			1,940,400			-
Series I convertible preferred stock subscription receivable		-			-			8,100,000			-			-			-
Aggregate exercise price of common stock options exercised on cashless basis		-			-			-			21,250			-			21,250
Aggregate exercise price of common stock warrants exercised on cashless basis		-			-			-			168,423			-			168,423
Reclassification of investor demand payable to stockholders’ equity		-			3,000,000			-			3,000,000			-			3,000,000
Fair value of common stock issued for private placement fees		-			-			-			150,000			-			150,000
Deemed dividend on Series H convertible preferred stock		-			-			-			-			-			18,045,496
Assumption of liabilities and debt in connection with merger of Say Media		-			-			-			-			-			851,114
Issuance of Series H convertible preferred stock for private placement fees		-			-			-			-			-			669,250
Accrual of stock issuance costs		-			381,895			-			-			-			-

Table A – The following table sets forth information about contract balances:

	As of
	March 31, 2019 (unaudited)		June 30, 2019 (unaudited)		September 30, 2019 (unaudited)		December 31, 2018
Accounts receivable:
Advertising	$	2,683,958	$	1,961,793	$	2,736,060	$	-
Other		34,046		45,145		583,064		-
	$	2,718,004	$	2,006,938	$	3,319,124	$	-
Factor receivables:
Advertising	$	-	$	-	$	-	$	6,130,674
Subscription acquisition costs (short-term):
Digital subscriptions	$	17,056	$	-	$	-	$	17,056
Unearned revenues (short-term contract liabilities):
Advertising	$	-	$	-	$	-	$	325,863
Digital subscriptions		98,229		96,350		6.819,242		70,544
	$	98,229	$	96,350	$	6,819,242	$	396,407
Unearned revenues (long-term contract liabilities):
Advertising	$	252,500	$	252,500	$	252,500	$	252,500
Digital subscriptions		-		-		457,619		-
	$	252,500	$	252,500	$	710,119	$	252,500

Table B – The following table sets forth prepayments and other current assets:

	As of
	March 31, 2019 (unaudited)		June 30, 2019 (unaudited)		September 30, 2019 (unaudited)		December 31, 2018
Prepaid expense	$	742,165	$	670,959	$	2,078,487	$	637,281
Prepaid software license		51,930		-		2,722		85,936
Prepaid taxes		-		-		733,553		-
Security deposits		48,298		47,273		74,418		25,812
Other receivables		-		-		4,690		109,294
	$	842,393	$	718,232	$	2,893,870	$	858,323

Table C – The following table sets forth capitalized costs for platform development:

	As of
	March 31, 2019 (unaudited)			June 30, 2019 (unaudited)			September 30, 2019 (unaudited)			December 31, 2018
Platform development beginning of period	$	6,833,900		$	6,833,900		$	6,833,900		$	3,145,308
Other costs		-			-			-			69,052
Payroll, employee benefits and related expenses		434,802			980,257			1,744,340			2,086,963
Stock-based compensation		167,948			572,270			985,994			1,850,384
Disposition		-			-			-			(317,807	)
Platform development end of period		7,436,650			8,386,427			9,564,234			6,833,900
Less accumulated amortization		(2,713,414	)		(3,337,233	)		(4,007,256	)		(2,125,944	)
Net platform development	$	4,723,236		$	5,049,194		$	5,556,978		$	4,707,956

Table D – The following table sets forth acquired and other intangible assets:

	As of
	March 31, 2019 (unaudited)			June 30, 2019 (unaudited)			September 30, 2019 (unaudited)			December 31, 2018
Developed technology	$	14,750,000		$	14,750,00		$	19,138,104		$	14,750,000
Noncompete agreement		480,000			480,000			480,000			480,000
Trade name		748,000			748,000			3,328,000			748,000
Subscriber relationships		-			-			2,150,000			-
Advertiser relationships		-			-			2,240,000			-
Database		-			-			1,140,000			-
Website domain name		20,000			20,000			20,000			20,000
		15,998,000			15,998,000			28,496,104			15,998,000
Less accumulated amortization		(1,429,142	)		(2,264,042	)		(3,463,394	)		(594,242	)
Net intangible assets	$	14,568,858		$	13,733,958		$	25,032,710		$	15,403,758

Table E – The following table sets forth goodwill:

	As of
	March 31, 2019 (unaudited)		June 30, 2019 (unaudited)		September 30, 2019 (unaudited)		December 31, 2018
Goodwill acquired in acquisition of HubPages	$	1,857,663	$	1,857,663	$	1,857,663	$	1,857,663
Goodwill acquired in acquisition of Say Media		5,466,624		5,466,624		5,466,624		5,466,624
Goodwill acquired in acquisition of TheStreet		-		-		8,815,090		-
Carrying value	$	7,324,287	$	7,324,287	$	16,139,377	$	7,324,287

Table F – The following table sets forth accrued expenses and other:

	As of
	March 31, 2019 (unaudited)		June 30, 2019 (unaudited)		September 30, 2019 (unaudited)		December 31, 2018
General accrued expenses	$	216,618	$	2,029,076	$	1,959,800	$	451,530
Accrued payroll and related taxes		728,211		839,664		556,531		584,550
Accrued publisher expenses		1,320,890		1,330,102		1,544,114		644,299
Sales tax liability		-		-		479,204		-
Customer rebate		489,466		489,466		489,466		489,466
Operating lease liabilities		456,884		452,183		2,069,118		-
Other accrued expense		67,448		88,051		149,626		212,202
	$	3,279,517	$	5,228,542	$	7,247,859	$	2,382,047

Table G – The following table sets forth liquidated damages payable:

	As of
	March 31, 2019 (unaudited)		June 30, 2019 (unaudited)		September 30, 2019 (unaudited)		December 31, 2018
Registration Rights Damages:
MDB common stock to be issued	$	15,001	$	15,001	$	15,001	$	15,001
Series H Preferred Stock		1,163,955		1,163,955		1,163,955		1,163,955
Series I Preferred Stock		-		970,200		970,200		-
		1,178,956		2,149,156		2,149,156		1,178,956
Public Information Failure Damages:
Series H Preferred Stock		1,163,955		1,163,955		1,163,955		1,163,955
12% Convertible Debentures		786,744		790,944		790,944		706,944
Series I Preferred Stock		-		970,200		970,200		-
		1,950,699		2,925,099		2,925,099		1,870,899
Accrued interest:
Series H Preferred Stock		481,017		481,017		481,017		481,017
12% Convertible Debentures		133,613		134,466		134,466		116,726
		614,630		615,483		615,483		597,743
	$	3,744,285	$	5,689,738	$	5,689,738	$	3,647,598

Table H – The following table sets forth the carrying value and roll-forward of activity for the Company’s warrants accounted for as a derivative liability (see Note 15) and classified within Level 3 of the fair-value hierarchy:

	As of
	March 31, 2019 (unaudited)			June 30, 2019 (unaudited)			September 30, 2019 (unaudited)			December 31, 2018
L2 Warrants issued on June 11, 2018	$	312,837		$	312,837		$	312,837		$	312,837
L2 Warrants issued on June 15, 2018		288,149			288,149			288,149			288,149
Strome Warrants issued on June 15, 2018		1,344,648			1,344,648			1,344,648			1,344,648
B. Riley Warrant issued on October 18, 2018		382,725			382,725			382,725			382,725
Exercise of L2 Warrants on September 10, 2019		-			-			(735,186	)		-
Change in valuation of warrant derivative liabilities:
L2 Warrants		(61,746	)		(9,591	)		134,200			(182,772	)
Strome Warrants		(586,533	)		(513,213	)		(184,129	)		(756,677	)
B. Riley Warrants		59,850			100,450			293,650			(24,675	)
Carrying value	$	1,739,930		$	1,906,005		$	1,836,894		$	1,364,235

Table I – The following table sets forth the carrying amount, valuation and a roll-forward of activity for the conversion option features, buy-in features, and default remedy features for the 12% Convertible Debentures (see Note 17) accounted for as embedded derivative liabilities and classified within Level 3 of the fair-value hierarchy:

	As of
	March 31, 2019 (unaudited)		June 30, 2019 (unaudited)		September 30, 2019 (unaudited)		December 31, 2018
Recognition of embedded derivative liabilities (conversion feature, buy-in feature, and default remedy feature):
Issuance date of December 12,2018		4,760,000		4,760,000		4,760,000		4,760,000
Issuance date of March 18, 2019		822,000		822,000		822,000		-
Issuance date of March 27, 2019		188,000		188,000		188,000		-
Issuance date of April 8, 2019		-		64,000		64,000		-
Change in fair value of embedded derivative liabilities		5,010,000		6,406,000		12,027,000		2,627,000
Carrying amount	$	10,780,000	$	12,240,000	$	17,861,000	$	7,387,000

Table J – The following table sets forth the operating lease liabilities:

	As of
	March 31, 2019 (unaudited)			June 30, 2019 (unaudited)			September 30, 2019 (unaudited)			December 31, 2018
Minimum lease payments	$	1,003,118		$	873,060		$	3,017,595		$	-
Less imputed interest		(106,635	)		(84,588	)		(203,402	)		-
Present value of operating lease liabilities	$	896,483		$	788,472		$	2,814,193		$	-
Current portion included in accrued expenses and other (lease liabilities)	$	456,884		$	452,183		$	2,069,118		$	-
Long-term portion of operating lease liabilities		439,599			336,289			745,075			-
Total operating lease liabilities	$	896,483		$	788,472		$	2,814,193		$	-

Table K – The following sets forth stock-based compensation expense that is included in the line items presented on the consolidated statements of operations and capitalized platform development:

	As of
	March 31, 2019 (unaudited)		June 30, 2019 (unaudited)		September 30, 2019 (unaudited)		December 31, 2018
Cost of revenues	$	69,072	$	171,258	$	285,253	$	159,205
Selling and marketing		108,284		171,336		221,843		76,451
General and administrative		1,142,272		2,297,704		2,484,053		3,908,301
		1,319.627		2,640,298		2,991,149		4,143,957
Capitalized platform development		167,948		404,322		413,724		1,850,384
	$	1,487,575	$	3,044,620	$	3,404,873	$	5,994,341

Table L – The following table sets forth the carrying value and related debt components of the 12% Convertible Debentures:

	As of
	March 31, 2019 (unaudited)			June 30, 2019 (unaudited)			September 30, 2019 (unaudited)			December 31, 2018
Principal amount of debt	$	11,554,000		$	11,654,000		$	11,654,000		$	9,540,000
Less issuance costs		(704,000	)		(704,000	)		(704,000	)		(590,000	)
Net cash proceeds received		10,850,000			10,950,000			10,950,000			8,950,000
Principal amount of debt (excluding original issue discount)		11,554,000			11,654,000			11,654,000			9,540,000
Add conversion of debt from 10% OID Convertible Debentures		3,551,528			3,551,528			3,551,528			3,551,528
Add accrued interest		486,591			945,011			1,429,527			82,913
Principal amount of debt including accrued interest		15,592,119			16,150,539			16,635,055			13,174,441
Debt discount:
Allocated embedded derivative liabilities		(5,770,000	)		(5,834,000	)		(5,834,000	)		(4,760,000	)
Liquidated damages recognized upon issuance		(786,744	)		(790,944	)		(790,944	)		(706,944	)
Issuance cost		(714,000	)		(714,000	)		(714,000	)		(590,000	)
Subtotal debt discount		(7,270,744	)		(7,338,944	)		(7,338,944	)		(6,056,944	)
Less amortization of debt discount		839,486			1,681,175			2,569,755			153,442
Unamortized debt discount		(6,431,258	)		(5,657,769	)		(4,769,189	)		(5,903,502	)
Carrying value	$	9,160,861		$	10,492,770		$	11,865,866		$	7,270,939

Table M – The following table sets forth information about revenue by product line, geographical market and timing of revenue recognition:

	For the Three Months Ended
	March 31, 2019 (unaudited)		June 30, 2019 (unaudited)		September 30, 2019 (unaudited)		Year Ended December 31, 2018
Revenue by product line:
Advertising	$	6,137,354	$	5,670,712	$	5,456,555	$	5,614,953
Digital subscriptions		51,913		56,021		1,891,702		85,246
Other		84,696		43,550		237,763		-
Total	$	6,273,963	$	5,770,283	$	7,586,020	$	5,700,199
Revenue by geographical market:
United States	$	6,273,963	$	5,770,283	$	7,386,753	$	5,700,199
Other		-		-		199,267		-
Total	$	6,273,963	$	5,770,283	$	7,586,020	$	5,700,199
Revenue by timing of recognition:
At point in time	$	6,222,050	$	5,714,262	$	5,694,318	$	5,614,953
Over time		51,913		56,021		1,891,702		85,246
Total	$	6,273,963	$	5,770,283	$	7,586,020	$	5,700,199

Table N – The following table sets forth information about interest expense:

	For the Three Months Ended
	March 31, 2019 (unaudited)		June 30, 2019 (unaudited)		September 30, 2019 (unaudited)		Year Ended December 31, 2018
Amortization of debt discounts related to the 8% Promissory Notes, 10% Convertible Debentures and 10% OID Convertible Debentures	$	-	$	-	$	-	$	448,398
Accrued interest related to the 10% Convertible Debentures and 10% OID Convertible Debentures		-		-		-		97,929
Accretion of original issue discount related to the 8% Promissory Notes and 10% OID Convertible Debentures		-		-		-		69,596
Loss on extinguishment of debt related to the 8% Promissory Notes, 10% Convertible Debentures and 10% OID Convertible Debentures		-		-		-		1,350,337
Gain on extinguishment of embedded derivatives liabilities upon extinguishment of host instrument related to the 8% Promissory Notes, 10% Convertible Debentures and 10% OID Convertible Debentures		-		-		-		(1,096,860	)
Write off of unamortized discount upon extinguishment of debt related to the 8% Promissory Notes, 10% Convertible Debentures and 10% OID Convertible Debentures		-		-		-		1,269,916
Amortization of debt discounts related to the 12% Convertible Debentures		686,044		841,689		888,580		153,442
Accrued interest related to the 12% Convertible Debentures		403,678		458,420		484,516		82,913
Amortization of debt discounts related to the 12% Amended Senior Secured Notes		-		53,063		591,398		-
Accrued interest related to the 12% Amended Senior Secured Notes		-		360,000		1,676,747		-
		1,089,722		1,713,172		3,641,241		2,375,671
Officer Promissory Notes		2,491		1,736		1,658		12,574
Other interest		208,995		161,146		58,411		120,629
	$	1,301,208	$	1,876,054	$	3,701,310	$	2,508,874