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SUBSEQUENT EVENTS | 6 Months Ended
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Jun. 30, 2017
Subsequent Events [Abstract] |
Subsequent Events [Text Block] | NOTE 17. SUBSEQUENT EVENTS On July 5, 2017, the Company entered into a common stock purchase agreement (the “Cobblestone Purchase Agreement”) with Cobblestone Capital Partners LLC (“Cobblestone Capital”) which provides that, upon the terms and subject to the conditions and limitations set forth therein, Cobblestone Capital is committed to purchase up to an aggregate of $10 million of shares of our common stock over the 30-month term of the Cobblestone Purchase Agreement. In consideration for entering into the Cobblestone Purchase Agreement, the Company was obligated, upon the earlier of (i) on or one business day after the Commission declares effective the registration statement referred to the Cobblestone Purchase Agreement or (ii) six months after the date of the Cobblestone Purchase Agreement, to issue to Cobblestone Capital such number of shares of common stock that would have a value equivalent to $200,000 calculated using the average of volume weighted average price for the common stock during the 3 trading days period immediately preceding the date of issuance of such shares. Accordingly, on August 3, 2017, the Company issued to Cobblestone Capital 456,761 shares of common stock based on a price of $0.44 per share. On July 19, 2017, we borrowed $92,000 from our $2,500,000 Priority Payments multi – draw loan. On July 19, 2017, we issued 307,589 shares of our common stock in partial settlement of the $1.43 million reserve liability in connection with the PayOnline acquisition. On July 20, 2017, we paid the PayOnline Sellers $200,000 in accordance with the payment plan set forth in the amendment to the PayOnline settlement agreement. On July 27, 2017, we exchanged 267,718 shares of our common stock for $105,969 of the original $3,315,000 RBL promissory note partially purchased by Crede, based on an average per share exchange price of $0.40. The exchange included a non-cash exchange premium of $19,865. On July 27, 2017, the $4,544,055 term note with RBL entered into on June 1, 2017 was revised to reflect the $105,969 exchange transaction mentioned above. As a result, the note was updated to reflect a principal payment and interest payment of $105,969 on July 28, 2017. The monthly principal and interest payment was adjusted to $121,810. In August 2017, we continued our program to improve cash flow from our Russian operations by streamlining operations at Digital Provider and eliminating overhead at Net Element Russia. We expect to maintain a smaller staff at Digital Provider, cancel our existing office lease for Digital Provider and consolidate its physical operations into PayOnline. We also are looking to develop a new business plan for Digital Provider that includes, but is not limited to, a model that requires less working capital than the current pre-pay model. The redundancies of our corporate staff at Net Element Russia were eliminated, with responsibilities being absorbed by existing PayOnline staff. In addition, Net Element Russia’s Moscow corporate office lease was cancelled with the consolidation into PayOnline (Also see Note 11. Commitments and Contingencies). On August 1, 2017, we entered into a $106,000 term note with RBL based on our draw down on our line of credit. The term note provided for an interest only payments of $822 on August, 20, 2017 and $1,316 at 14.9% interest rate per annum afterwards through September 20, 2017. From October 20, 2017 through September 20, 2021 (maturity date), we are obligated to make interest and principal payments of $2,945. We paid $2,120 in costs related to this loan at its inception and another $4,240 of costs is due at the maturity of the note. On August 9, 2017, we executed a new five year lease for our office space in North Miami Beach, Florida through July 2022, which supersedes our previous lease for the premises. The lease provides for a monthly rent of $14,354 ($172,248 annually). See Part II, Item 5 of the Company’s Quarterly Report on Form 10-Q for quarterly period ended June 30, 2017 for additional information . On August 10, 2017, we presented our appeal to the Nasdaq delisting at a hearing with Nasdaq. We are currently awaiting the decision of the Nasdaq appeals board, which we expect to receive in August 2017.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 855 -URI http://asc.fasb.org/topic&trid=2122774 + Details
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