UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September 30,~~ ~~2021~~March 31, 2022

☐	TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________

Commission File Number: 000-56148

TRAQIQ, INC.

(Exact Name of Registrant as Specified in Its Charter)

California		30-0580318
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

14205 SE 36th Street, Suite 100, Bellevue, WA		98006
(Address of Principal Executive Office)		(Zip Code)

(425) 818-0560

(Registrant’s Telephone Number, Including Area Code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act: None.

Title of Each Class		Trading Symbol		Name of Each Exchange on which registered

Securities registered pursuant to Section 12(g) of the Exchange Act:

Common Stock, $.0001 par value per share

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act ☐ Yes ☒ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ☐ Yes ☒ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☐ Yes ☒ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non- accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer”, “non-accelerated filer”, “smaller reporting company” and “emerging growth” in Rule 12b-2 of the Exchange Act.

Large Accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

The number of shares of the Registrant’s common stock, $0.0001 par value per share, outstanding as of ~~November~~May 11, ~~2021,~~2022, was ~~33,372,819~~4,173,008.

Documents incorporated by reference:

None

TRAQIQ, INC

INDEX

		Page
PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements	4

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3335

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3940

Item 4.	Controls and Procedures	4041

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	4142

Item 1A.	Risk Factors	4142

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	4142

Item 3.	Defaults Upon Senior Securities	4142

Item 4.	Mine Safety Disclosures	4142

Item 5.	Other Information	4142

Item 6.	Exhibits	4142

Signatures		4243

FORWARD-LOOKING STATEMENTS

Except for any historical information contained herein, the matters discussed in this quarterly report on Form 10-Q contain certain “forward-looking statements’’ within the meaning of the federal securities laws. This includes statements regarding our future financial position, economic performance, results of operations, business strategy, budgets, projected costs, plans and objectives of management for future operations, and the information referred to under “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

These forward-looking statements generally can be identified by the use of forward-looking terminology, such as “may,’’ “will,’’ “expect,’’ “intend,’’ “estimate,’’ “anticipate,’’ “believe,’’ “continue’’ or similar terminology, although not all forward-looking statements contain these words. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, you are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Although we believe that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. Important factors that may cause actual results to differ from projections include, for example:

	●	the success or failure of management’s efforts to implement our business plan;

	●	our ability to fund our operating expenses;

	●	our ability to compete with other companies that have a similar business plan;

	●	the effect of changing economic conditions impacting our plan of operation; and

	●	our ability to meet the other risks as may be described in future filings with the Securities and Exchange Commission (the “SEC”).

Unless otherwise required by law, we also disclaim any obligation to update our view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made in this quarterly report on Form 10-Q.

When considering these forward-looking statements, you should keep in mind the cautionary statements in this quarterly report on Form 10-Q and in our other filings with the SEC. We cannot assure you that the forward-looking statements in this quarterly report on Form 10-Q will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may prove to be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time-frame, or at all.

Item 1. Financial Statements

	Page No.

Condensed Consolidated Balance Sheets as of ~~September 30, 2021~~March 31, 2022 (unaudited) and December 31, ~~2020~~2021	5

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the ~~Nine and~~ Three Months Ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ (unaudited)	6

Condensed Consolidated Statement of Changes in Stockholders’ Equity (Deficit) for the ~~Nine and~~ Three Months Ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ (unaudited)	7

Condensed Consolidated Statements of Cash Flows for the ~~Nine~~Three Months Ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ (unaudited)	8

Notes to Condensed Consolidated Financial Statements (unaudited)	9

TRAQIQ, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

~~SEPTEMBER 30, 2021~~MARCH 31, 2022 (UNAUDITED) AND DECEMBER 31, ~~2020~~2021

IN US$

	MARCH 31,			DECEMBER 31,
	2022			2021
	(UNAUDITED)

ASSETS
Current Assets:
Cash	$	109,877		$	56,329
Accounts receivable, net		741,379			774,146
Prepaid expenses and other current assets		206,405			150,272

Total Current Assets		1,057,661			980,747

Fixed assets, net		55,570			34,165
Intangible assets, net		1,179,297			1,206,966
Goodwill		5,863,058			5,863,058
Restricted cash		111,989			114,199
Deferred tax asset		109,138			116,111
Right-of-use asset		327,436			112,076
Long-term taxes receivable		134,115			122,136
Other assets		3,076			3,137

Total Non-current Assets		7,783,679			7,571,848

TOTAL ASSETS	$	8,841,340		$	8,552,595

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

LIABILITIES
Current Liabilities:
Accounts payable and accrued expenses	$	2,231,994		$	2,146,015
Cash overdraft		262,913			218,747
Accrued payroll and related taxes		408,836			412,144
Accrued taxes and duties payable		80,614			72,169
Deferred revenue		1,501			3,831
Derivative liability		1,144,430			1,152,620
Obligation to issue common stock		858,445			-
Contingent consideration - Rohuma		525,509			1,383,954
Contingent consideration - Mimo		246,067			656,179
Current portion - lease liability		16,896			13,071
Current portion - long-term debt - related parties		4,032,567			3,892,463
Current portion - long-term debt		466,307			218,972
Current portion - convertible notes payable, net of discounts		944,362			654,851

Total Current Liabilities		11,220,441			10,825,016

Long-term debt, net of current portion		79,010			36,052
Lease liability, net of current portion		314,004			109,830

Total Non-current Liabilities		393,014			145,882

Total Liabilities		11,613,455			10,970,898

Commitments and contingencies		-			-

STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock, par value, $0.0001, 10,000,000 shares authorized, Series A Convertible Preferred, 0 shares issued and outstanding, respectively		-			-
Common stock, par value, $0.0001, 300,000,000 shares authorized, 4,173,008 and 4,171,638 issued and outstanding, respectively		417			417
Additional paid in capital		6,970,474			6,508,931
Accumulated deficit		(9,871,116	)		(8,953,768	)
Accumulated other comprehensive income (loss)		133,903			30,605

Total Stockholders’ Equity (Deficit) before Non-controlling Interest		(2,766,322	)		(2,413,815	)
Non-controlling interest		(5,793	)		(4,488	)

Total Stockholders’ Equity (Deficit)		(2,772,115	)		(2,418,303	)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	8,841,340		$	8,552,595

TRAQIQ, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021 (UNAUDITED)

IN US$

SEPTEMBER 30, DECEMBER 31,
2021 2020
(UNAUDITED)
ASSETS
Current Assets:
Cash $ 400,410 $ 29,658
Accounts receivable, net 843,923 521,618
Note receivable - related party - 227,877
Prepaid expenses and other current assets 540,928 322,286

Total Current Assets 1,785,261 1,101,439

Fixed assets, net 35,823 36,373
Intangible assets, net
1,226,810
444,584
Goodwill
5,863,058
-
Restricted cash 114,575 28,746
Long-term investment 1,440 40,603
Right-of-use asset 115,492 126,118
Other assets 3,147 3,196

Total Non-current Assets
7,360,345
679,620

TOTAL ASSETS $
9,145,606
$ 1,781,059

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

LIABILITIES
Current Liabilities:
Accounts payable and accrued expenses $ 1,938,412 $ 1,163,505
Cash overdraft 264,881 188,721
Accrued payroll and related taxes 442,536 327,084
Accrued taxes and duties payable 132,653 46,577
Deferred revenue 19,237 -
Derivative liability 1,889,055 -
Contingent consideration - Rohuma 1,383,954 -
Contingent consideration - Mimo 656,179 -
Current portion - lease liability 12,526 8,779
Current portion - long-term debt - related parties 2,852,966 1,843,399
Current portion - long-term debt 279,601 133,761
Current portion - convertible notes payable, net of discounts 374,546 -
Current portion - convertible debt - long-term debt - related and unrelated parties 85,084 241,334

Total Current Liabilities 10,331,630 3,953,160

Long-term debt, net of current portion 36,954 59,856
Long-term debt - related parties, net of current portion 15,000 -
Lease liability, net of current portion 113,636 125,219

Total Non-current Liabilities 165,590 185,075

Total Liabilities 10,497,220 4,138,235

Commitments and contingencies - -

STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock, par value, $0.0001, 10,000,000 shares authorized, Series A Convertible Preferred, 0 and 50,000 shares issued and outstanding, respectively - 5
Common stock, par value, $0.0001, 300,000,000 shares authorized, 33,136,975 and 27,297,960 issued and outstanding, respectively 3,314 2,730
Additional paid in capital 6,402,244 117,261
Accumulated deficit (7,784,336 ) (2,504,893 )
Subscription receivable (45 ) -
Accumulated other comprehensive income (loss) 31,179 27,721

Total Stockholders’ Equity (Deficit) before Non-controlling Interest (1,347,644 ) (2,357,176 )
Non-controlling interest (3,970 ) -

Total Stockholders’ Equity (Deficit) (1,351,614 ) (2,357,176 )

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $ 9,145,606 $ 1,781,059

	2022			2021
	THREE MONTHS ENDED
	MARCH 31,
	2022			2021

REVENUE	$	347,400		$	382,386
COST OF REVENUE		372,129			223,832
GROSS (LOSS) PROFIT		(24,729	)		158,554

OPERATING EXPENSES
Salaries and salary related costs		163,698			148,431
Professional fees		114,478			151,425
Rent expense		1,807			7,786
Depreciation and amortization expense		24,914			16,718
General and administrative expenses		103,067			835,724

Total Operating Expenses		407,964			1,160,084

OPERATING LOSS		(432,693	)		(1,001,530	)

OTHER INCOME (EXPENSE)
Change in fair value of derivative liability		8,190			(505,007	)
PPP forgiveness and other income		48			10,073
Interest expense, net of interest income		(488,519	)		(145,633	)
Total other income (expense)		(480,281	)		(640,567	)

NET LOSS BEFORE PROVISION FOR INCOME TAXES		(912,974	)		(1,642,097	)

Provision for income taxes		5,679			48,274

NET LOSS		(918,653	)		(1,690,371	)
NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST		1,305			(1,453	)
NET LOSS ATTRIBUTABLE TO CONTROLLING INTEREST	$	(917,348	)	$	(1,691,824	)

Other comprehensive income (loss)
Foreign currency translations adjustment		103,298			(6,139	)
Comprehensive loss	$	(814,050	)	$	(1,697,963	)

Net loss per share	$	(0.22	)	$	(0.45	)

Weighted average common shares outstanding - basic and diluted		4,173,008			3,722,681

TRAQIQ, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021 (UNAUDITED)

IN US $


									Additional							Accumulated
	Series A Preferred				Common Stock				Paid-In Capital -		Accumulated			Subscription		Other Comprehensive			Non-controlling
	Shares		Amount		Shares		Amount		Common		Deficit			Receivable		Income (Loss)			Interest			Total

Balance - January 1, 2021		50,000	$	5		3,412,245	$	341	$	119,650	$	(2,504,893	)	$	-	$	27,721		$	-		$	(2,357,176	)

Shares of stock issued for cash		-		-		71,250		7		455,993		-			-		-			-			456,000

Shares of stock issued for conversion of notes payable and accrued interest		-		-		33,042		3		224,684		-			-		-			-			224,687

Shares of stock issued for services rendered		-		-		50,000		5		436,380		-			-		-			-			436,385

Shares of stock issued for acquisition of Rohuma (first tranche)		-		-		320,285		32		2,049,789		-			-		-			-			2,049,821

Warrants earned for acquisition of Mimo		-		-		-		-		984,268		-			-		-			-			984,268

Stock-based compensation - warrants granted for consulting		-		-		-		-		68,642		-			-		-			-			68,642

Stock-based compensation on granting of options		-		-		-		-		108,341		-			-		-			-			108,341

Net loss for the period		-		-		-		-		-		(1,691,824	)		-		(6,139	)		1,453			(1,696,510	)

Balance - March 31, 2021		50,000	$	5		3,886,822	$	388	$	4,447,747	$	(4,196,717	)	$	-	$	21,582		$	1,453		$	274,458

Balance - January 1, 2022		-	$	-		4,171,638	$	417	$	6,508,931	$	(8,953,768	)	$	-	$	30,605		$	(4,488	)	$	(2,418,303	)
Balance		-	$	-		4,171,638	$	417	$	6,508,931	$	(8,953,768	)	$	-	$	30,605		$	(4,488	)	$	(2,418,303	)

Fractional share adjustment		-		-		1,370		-		-		-			-		-			-			-

Stock-based compensation on granting of options		-		-		-		-		18,223		-			-		-			-			18,223

Stock-based compensatuon for restricted stock grants (shares not issued)		-		-		-		-		33,208		-			-		-			-			33,208

Warrants earned for acquisition of Mimo		-		-		-		-		410,112		-			-		-			-			410,112

Net loss for the period		-		-		-		-		-		(917,348	)		-		103,298			(1,305	)		(815,355	)

Balance - March 31, 2022		-	$	-		4,173,008	$	417	$	6,970,474	$	(9,871,116	)	$	-	$	133,903		$	(5,793	)	$	(2,772,115	)
Balance		-	$	-		4,173,008	$	417	$	6,970,474	$	(9,871,116	)	$	-	$	133,903		$	(5,793	)	$	(2,772,115	)

The accompanying notes are an integral part of these ~~condensed~~ consolidated financial statements.

~~TRAQIQ, INC. AND SUBSIDIARIES~~

~~CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)~~

~~FOR THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020~~

~~IN US$~~

NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2021 2020 2021 2020

REVENUE $
2,109,087
$ 739,177 $
789,699
$ 217,858
COST OF REVENUE
1,664,570
399,720 652,542 131,037
GROSS PROFIT 444,517 339,457 137,157 86,821

OPERATING EXPENSES
Salaries and salary related costs 492,362 180,123 183,349 85,484
Professional fees 585,422 138,817 298,134 23,682
Rent expense 23,521 95,151 8,010 31,256
Depreciation and amortization expense
54,490
36,284
17,471
11,478
General and administrative expenses 2,893,036 89,373 1,365,067 27,954

Total Operating Expenses
4,048,831
539,748 1,872,031 179,854

OPERATING LOSS (3,604,314 ) (200,291 ) (1,734,874 ) (93,033 )

OTHER INCOME (EXPENSE)
Change in fair value of derivative liability (850,221 ) - 345,911 -
Derivative expense (124,966 ) - (124,966 ) -
Gain on sale of assets 146 - 146 -
PPP forgiveness and other income 10,073 10,000 - -
Interest expense, net of interest income (627,720 ) (247,162 ) (264,542 ) (81,992 )
Total other income (expense) (1,592,688 ) (237,162 ) (43,451 ) (81,992 )

NET LOSS BEFORE PROVISION FOR INCOME TAXES (5,197,002 ) (437,453 ) (1,778,325 ) (175,025 )

Provision for income taxes 86,411 1,609 4,415 803

NET LOSS (5,283,413 ) (439,062 ) (1,782,740 ) (175,828 )
NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST 3,970 - 1,407 -
NET LOSS ATTRIBUTABLE TO CONTROLLING INTEREST $ (5,279,443 ) $ (439,062 ) $ (1,781,333 ) $ (175,828 )

Other comprehensive loss
Foreign currency translations adjustment 3,458 (35,959 ) 30,406 1,648
Comprehensive loss $ (5,276,865 ) $ (475,021 ) $ (1,751,807 ) $ (174,180 )

Net loss per share $ (0.17 ) $ (0.02 ) $ (0.06 ) $ (0.01 )

Weighted average common shares outstanding - basic and diluted 30,801,213 27,297,960 31,435,375 27,297,960

~~The accompanying notes are an integral part of these condensed consolidated financial statements.~~

TRAQIQ, INC. AND SUBSIDIARIES

~~CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) (UNAUDITED)~~

~~FOR THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020~~

~~IN US $~~

Additional Accumulated
Series A Preferred Common Stock Paid-In Capital - Accumulated Subscription Other Comprehensive Non-controlling
Shares Amount Shares Amount Common Deficit Receivable Income (Loss) Interest Total

Balance - January 1, 2020 50,000 $ 5 27,297,960 $ 2,730 $ 12,623 $ (1,896,984 ) $ - $ 21,244 $ - $ (1,860,382 )

Conversion of Series A Preferred Stock to Common Stock
Conversion of Series A Preferred Stock to Common Stock, shares
Shares issued for exercise of warrants
Shares issued for exercise of warrants, shares
Shares of stock issued for cash
Shares of stock issued for cash , shares
Shares of stock issued for conversion of notes payable and accrued interest
Shares of stock issued for conversion of notes payable and accrued interest, shares
Shares of stock issued for services rendered
Shares of stock issued for services rendered, shares
Shares of stock issued for providing note payable
Shares of stock issued for providing note payable, shares
Shares of stock issued for acquisition of Rohuma (first tranche)
Shares of stock issued for acquisition of Rohuma (first tranche), shares
Stock-based compensation on granting of options
Stock-based compensatuon for restricted stock grants (shares not issued)
Stock-based compensation - warrants granted for consulting
Warrants earned for acquisition of Mimo
Net loss for the period - - - - - (118,874 ) - (26,160 ) - (145,034 )

Balance - March 31, 2020 50,000 5 27,297,960 2,730 12,623 (2,015,858 ) - (4,916 ) - (2,005,416 )

Net loss for the period - - - - - (144,360 ) - (11,447 ) - (155,807 )

Balance - June 30, 2020 50,000 5 27,297,960 2,730 12,623 (2,160,218 ) - (16,363 ) - (2,161,223 )

Net loss for the period - - - - - (175,828 ) - 1,648 - (174,180 )

Balance - September 30, 2020 50,000 $ 5 27,297,960 $ 2,730 $ 12,623 $ (2,336,046 ) $ - $ (14,715 ) $ - $ (2,335,403 )

Balance - January 1, 2021 50,000 $ 5 27,297,960 $ 2,730 $ 117,261 $ (2,504,893 ) $ - $ 27,721 $ - $ (2,357,176 )

Shares of stock issued for cash - - 570,000 57 455,943 - - - - 456,000

Shares of stock issued for conversion of notes payable and accrued interest - - 264,338 26 224,661 - - - - 224,687

Shares of stock issued for services rendered - - 400,000 40 436,345 - - - - 436,385

Shares of stock issued for acquisition of Rohuma (first tranche) - - 2,562,277 256 2,049,565 - - - - 2,049,821

Stock-based compensation on granting of options - - - - 108,341 - - - - 108,341

Stock-based compensation - warrants granted for consulting - - - - 68,642 - - - - 68,642

Warrants earned for acquisition of Mimo - - - - 984,268 - - - - 984,268

Net loss for the period - - - - - (1,688,918 ) - (6,139 ) (1,453 ) (1,696,510 )

Balance - March 31, 2021 50,000 5 31,094,575 3,109 4,445,026 (4,193,811 ) - 21,582 (1,453 ) 274,458

Shares of stock issued for cash - - 35,000 4 38,496 - - - - 38,500

Shares of stock issued for services rendered - - 1,000 - 1,750 - - - - 1,750

Shares of stock issued for providing note payable - - 300,000 30 446,970 - - - - 447,000

Stock-based compensation on granting of options - - - - 118,465 - - - - 118,465

Stock-based compensatuon for restricted stock grants (shares not issued) - - - - 40,222 - - - - 40,222

Net loss for the period - - - - - (1,809,192 ) - (20,809 ) (1,110 ) (1,831,111 )

Balance - June 30, 2021 50,000 5 31,430,575 3,143 5,090,929 (6,003,003 ) - 773 (2,563 ) (910,716 )
Balance 50,000 5 31,430,575 3,143 5,090,929 (6,003,003 ) - 773 (2,563 ) (910,716 )

Conversion of Series A Preferred Stock to Common Stock (50,000 ) (5 ) 55,195 6 (1 ) - - - - -

Shares issued for exercise of warrants - - 451,205 45 - - (45 ) - - -

Shares of stock issued for services rendered - - 1,200,000 120 1,078,440 - - - - 1,078,560

Stock-based compensation - warrants granted for consulting - - - - 37,977 - - - - 37,977

Stock-based compensation on granting of options - - - - 161,691 - - - - 161,691

Stock-based compensatuon for restricted stock grants (shares not issued) - - - - 33,208 - - - - 33,208

Net loss for the period - - - - - (1,781,333 ) - (30,406 ) (1,407 ) (1,752,334 )

Balance - September 30, 2021 - $ - 33,136,975 $ 3,314 $ 6,402,244 $ (7,784,336 ) $ (45 ) $ 31,179 $ (3,970 ) $ (1,351,614 )
Balance - $ - 33,136,975 $ 3,314 $ 6,402,244 $ (7,784,336 ) $ (45 ) $ 31,179 $ (3,970 ) $ (1,351,614 )

~~The accompanying notes are an integral part of these condensed consolidated financial statements.~~

~~TRAQIQ, INC. AND SUBSIDIARIES~~

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE ~~NINE~~THREE MONTHS ENDED ~~SEPTEMBER 30,~~MARCH 31, 2022 AND 2021 ~~AND 2020~~

IN US$

2021 2020
CASH FLOW FROM OPERATING ACTIVITIES
Net loss $ (5,279,443 ) $ (439,062 )
Adjustments to reconcile net loss to net cash (used in) operating activities
Change in non-controlling interest (3,970 ) -
Bad debt expense 261,187 -
Forgiveness of debt (10,057 ) -
Depreciation and amortization 54,490 36,284
Lease cost, net of repayment 2,910 8,321
Foreign currency (gain) loss 2,658 (7,721 )
Stock-based compensation 495,116 -
Common stock issued for services rendered 2,037,126 -
Change in fair value of derivative liability and derivative expense 975,187 -
Amortization of discounts on debt 253,414 -
Gain on sale of assets (146 ) -
Changes in assets and liabilities
Accounts receivable (618,164 ) 49,074
Prepaid expenses and other current assets 31,309 (107,714 )
Other assets - -
Accounts payable and accrued expenses (393 ) 300,851
Accrued payroll and payroll taxes 8,899 17,395
Accrued duties and taxes 52,346 37,190
Total adjustments 3,541,912 333,680
Net cash (used in) operating activities (1,737,531 ) (105,382 )

CASH FLOWS FROM INVESTING ACTIVITIES
Cash received in acquisition of Mimo 42,905 -
Cash received in acquisition of Rohuma 5,951 -
Acquisition of Mimo (21,856 ) -
Advances of note receivable - related party - (202,146 )
Acquisition of fixed assets (3,145 ) (2,083 )
Net cash provided by (used in) investing activities 23,855 (204,229 )

CASH FLOWS FROM FINANCING ACTIVITIES
Increase in cash overdraft 76,064 (138,163 )
Proceeds from the issuance of common stock 494,500 -
Proceeds from convertible notes 1,115,000 -
Repayment of convertible notes (80,000 ) -
Proceeds from long-term debt - related parties 1,449,394 254,145
Repayment of long-term debt - related parties (781,326 ) (25,000 )
Proceeds from long-term debt 50,331 94,607
Repayments of long-term debt (153,706 ) (36,638 )
Net cash provided by financing activities 2,170,257 148,951

NET INCREASE (DECREASE) IN CASH AND RESTRICTED CASH 456,581 (160,660 )

CASH AND RESTRICTED CASH - BEGINNING OF PERIOD 58,404 191,721

CASH AND RESTRICTED CASH - END OF PERIOD $ 514,985 $ 31,061

CASH PAID DURING THE PERIOD FOR:
Interest expense $ 51,304 $ 81,798
Income taxes $ 86,411 $ 1,609

SUMMARY OF NON-CASH ACTIVITIES:
Acquisition of Rohuma: ��
Accounts receivable $ 4,179 $ -
Prepaid and other current assets 8,943 -
Fixed assets 4,512 -
Intellectual property
Tradenames
Investment 1,440 -
Accounts payable and accrued expenses (58,153 ) -
Accrued payroll and related taxes
Accrued duties and taxes (2,688 ) -
Long-term debt - related parties (37,776 ) -
Long-term debt (10,000 ) -
Cash overdraft (2,980 ) -
Comprehensive income
Cash 6,027 -

Total net liabilities acquired (86,496 ) -

Consideration per Share Exchange Agreement 3,433,776 -

Goodwill/(Bargain Purchase Gain) $ 3,520,272 $ -

Acquisition of Mimo Technologies:
Accounts receivable $ 58,692 $ -
Prepaid and other current assets 272,872 -
Fixed assets 153,186 -
Intellectual property
508,669
-
Tradenames 169,556 -
Accounts payable and accrued expenses (708,833 ) -
Accrued payroll and related taxes (104,750 ) -
Accrued duties and taxes (28,213 ) -
Long-term debt - related parties (343,118 ) -
Long-term debt (236,712 ) -
Comprehensive income (42,735 ) -
Cash 43,851 -

Total net liabilities acquired
(257,535
) -

Consideration per Share Exchange Agreement 2,085,653 -

Goodwill/(Bargain Purchase Gain) $
2,343,188
$ -

Common stock issued for conversion of long-term debt, related and unrelated parties $ 224,688 $ -

~~The accompanying notes are an integral part of these condensed consolidated financial statements.~~

	2022			2021
CASH FLOW FROM OPERTING ACTIVIITES
Net loss	$	(917,348	)	$	(1,691,824	)
Adjustments to reconcile net loss to net cash (used in) operating activities
Change in non-controlling interest		(1,305	)		1,453
Bad debt expense		-			104,863
Forgiveness of debt		(15,401	)		(10,087	)
Depreciation and amortization		24,914			16,718
Lease cost, net of repayment		1,807			979
Foreign currency (gain) loss		(11,092	)		1,142
Stock-based compensation		51,431			176,983
Common stock issued for services rendered		-			436,385
Change in fair value of derivative liability and derivative expense		(8,190	)		505,007
Fees paid in debt financing		3,250			-
Amortization of discounts on debt		292,777			55,534
Gain on sale of assets		(8	)		-
Changes in assets and liabilities
Accounts receivable		45,052			35,274
Prepaid expenses and other current assets		21,712			(151,992	)
Other assets		-			-
Accounts payable, accrued expenses and deferred taxes		84,422			(128,959	)
Accrued payroll and payroll taxes		6,557			18,803
Accrued duties and taxes		22,034			686
Total adjustments		517,960			1,062,789
Net cash (used in) operating activities		(399,388	)		(629,035	)

CASH FLOWS FROM INVESTING ACTIVITES
Cash received in acquisition of Mimo		-			43,384
Cash received in acquisition of Rohuma		-			5,997
Acquisition of fixed assets		(25,574	)		-
Net cash (used in) provided by investing activities		(25,574	)		49,381

CASH FLOWS FROM FINANCING ACTIVITES
Increase in cash overdraft		48,400			62,605
Proceeds from the issuance of common stock		-			456,000
Proceeds from convertible notes		-			515,000
Proceeds from long-term debt - related parties		205,836			24,101
Repayment of long-term debt - related parties		(63,973	)		(366,943	)
Proceeds from long-term debt		344,652			-
Repayments of long-term debt		(58,615	)		(93,244	)
Net cash provided by financing activities		476,300			597,519

NET INCREASE IN CASH AND RESTRICTED CASH		51,338			17,865

CASH AND RESTRICTED CASH - BEGINNING OF PERIOD		170,528			58,404

CASH AND RESTRICTED CASH - END OF PERIOD	$	221,866		$	76,269

CASH PAID DURING THE PERIOD FOR:
Interest expense	$	7,991		$	12,379
Income taxes	$	5,679		$	43,697

SUMMARY OF NON-CASH ACTIVITIES:
Acquisition of Rohuma:
Accounts receivable	$	-		$	4,179
Prepaid and other current assets		-			8,943
Fixed assets		-			4,512
Intellectual property
Tradenames
Accrued payroll and related taxes
Investment		-			1,440
Accounts payable and accrued expenses		-			(58,153	)
Accrued duties and taxes		-			(2,688	)
Long-term debt - related parties		-			(37,776	)
Long-term debt		-			(10,000	)
Cash overdraft		-			(2,980	)
Comprehensive income
Cash		-			6,027

Total net assets acquired		-			(86,496	)

Consideration per Share Exchange Agreement		-			3,433,776

Goodwill/(Bargain Purchase Gain)	$	-		$	3,520,272

Acquisition of Mimo Technologies:
Accounts receivable	$	-		$	58,692
Prepaid and other current assets		-			272,872
Fixed assets		-			153,186
Intellectual property		-			508,669
Tradenames		-			169,556
Accounts payable and accrued expenses		-			(708,833	)
Accrued payroll and related taxes		-			(104,750	)
Accrued duties and taxes		-			(28,213	)
Long-term debt - related parties		-			(343,118	)
Long-term debt		-			(236,712	)
Comprehensive income		-			(42,735	)
Cash		-			43,851

Total net assets acquired		-			(257,535	)

Consideration per Share Exchange Agreement		-			2,085,653

Goodwill/(Bargain Purchase Gain)	$	-		$	2,343,188

Common stock issued for conversion of long-term debt, related and unrelated parties	$	-		$	224,688

Right of use asset for lease liability	$	331,154		$	-

TRAQIQ, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN US$)

(UNAUDITED)

NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS

TraQiQ, Inc. (along with its wholly owned subsidiaries, referred to herein as the “Company”) was incorporated in the State of California on September 9, 2009 as Thunderclap Entertainment, Inc. On July 14, 2017, Thunderclap Entertainment, Inc. changed its name to TraQiQ, Inc. On July 19, 2017, the Company entered into a Share Exchange Agreement (“Share Exchange”) with the stockholders of OmniM2M, Inc. (“OmniM2M”) and TraQiQ Solutions, Inc. dba Ci2i Services, Inc. (formerly Ci2i Services, Inc. – amended November 6, 2019) (“Ci2i”) whereby the stockholders of Omni and Ci2i exchanged all of their respective shares, representing 100% ownership in OmniM2M and Ci2i in exchange for ~~12,000,000~~1,500,000 shares of the Company’s common stock, respectively. The OmniM2M Shareholders and the Ci2i Shareholders have each been issued their respective ~~12,000,000~~1,500,000 shares on a pro rata basis based on their respective holdings in OmniM2M and Ci2i in the Share Exchange Agreement. The Share Exchange was accounted for as a reverse merger whereas Ci2i is considered the accounting acquirer and TraQiQ,Inc. is considered the accounting acquiree. For accounting purposes, the acquisition of Omni is recorded at historical cost in accordance with Accounting Standard Codification (“ASC”) 805-50-25-2 as this is considered an acquisition of entities under common control as the management of the Company and Omni control the activities of the respective companies. Prior to the merger with Ci2i and acquisition of Omni, the Company was considered a shell company under Rule 12b-2 of the Exchange Act. On December 1, 2017, The Company entered into a Share Purchase Agreement (the “Share Exchange Agreement”) with Ajay Sikka (“Sikka”), the sole shareholder of Transport IQ, Inc. whereby Sikka agreed to sell all of the shares in TransportIQ, Inc. (“TransportIQ”) in exchange for $18,109, in the form of cancellation of all of the debt of TransportIQ that is owed to the Company. The transaction became effective upon the execution of the Share Exchange Agreement by Sikka and the Company; and Transport IQ, Inc, is now a wholly-owned subsidiary of the Company. Because TransportIQ was commonly controlled and owned, the transaction was recorded at the historical carrying value of TransportIQ’s assets and liabilities.

The Financial Industry Regulatory Authority on March 18, 2022, approved a reverse 1 for 8 stock split of the Company’s common shares. The reverse split was effective on March 21, 2022. The common shares and common share equivalents as well as the per-share amounts have been retroactively restated in accordance with ASC 855-10-25 and the loss per share figures have been retroactively restated in accordance with ASC 260-10-55-12.

Overview of the Company

With operations concentrated in India, Southeast Asia and Latin America, the Company helps businesses in emerging markets leverage the “gig” or task economy by providing both technology solutions and a network of workers required to fulfill those tasks. The Company provides software as a service that enables clients to build and manage a network of contract task workers. This platform can also be used by business clients to manage their employees who are performing services, such as PC repair or food delivery. In addition, with the recent acquisition of Mimo Technologies Private Limited (“Mimo”), Mimo operates a network of over 14,000 task workers in India who make deliveries, collect payments, do background verifications, and fulfill tasks across the supply chain, as needed by business clients to deliver their products and services to their respective markets and customers.

TraQSuite is a cloud based software platform with a revenue model based on initial and transaction-based licensing fees as well as consulting fees. Licensees pay an initial per-module fee that varies depending on the number of modules that are licensed. This fee is typically $10,000 per module. Customers are also billed on a per-user or per-transaction basis every month. User fees range from a $75 per month fee for the administrator to $5 per month for regular users. Transaction fees averages about $1 per transaction, with discounts for higher volumes. Most customers also pay initial consulting fees upfront for integration of TraQSuite with their legacy software and training of their employees in the use of TraQSuite.

The Company’s TraQSuite software platform powers the last mile distribution network, allowing business users to target customers, facilitate and validate transactions, track and manage task workers, manage funds and run a distribution network. Key features of the TraQSuite software include:

	●	Last Mile delivery: TraQSuite’s Last-Mile software module enables a business to manage thousands of task workers across multiple geographies to deliver products and services to the users. The software platform, operating through mobile apps, allows for data sharing, delivery validation, geo-tagging and know-your-customer (KYC) requirements and can even measure customer satisfaction.

	●	Transact: TraQSuite enables task workers to facilitate transactions by meeting the end customers. They can collect payments via credit cards, smart-phone swipes, SMS messages or cash. Both banked and unbanked users can buy products and services and pay with their mobile devices.

	●	Target: TraQSuite enables customer transactions to be rewarded with loyalty credits, tokens or points that can be redeemed by the customer for free products, discounts and benefits. The software analyzes these transactions and purchase behaviors by using leading AI models and can deliver real time, automated and targeted offers and recommendations for additional purchases and customer retention.

The Mimo delivery and task service in India runs on the TraQSuite platform and performs deliveries and fulfills tasks for some of the largest businesses in India. Mimo provides delivery and pickup services for the banking and insurance industry, performing verifications, field investigations for loan requests, business verification, employment verification, collection of documents and customer data and assistance in filling out forms for banks. Mimo works with microfinance institutions to collect cash, such as loan payments, convert cash to digital forms such as debit cards, and conduct data collection and surveys. For consumer goods companies, Mimo does promotional marketing, last mile (hyper-local) delivery, merchant onboarding or activation, store audits, and route optimization for delivery.

The Company’s strategy is to grow the business through a combination of organic growth and strategic investments that bring new functionality and revenue streams to the Company. The plan is to enhance the functionality of our existing products, increase sales in the Indian market and entry into new emerging markets. The Company has a presence in India, Southeast Asia and Latin America, and recently added new customers in Australia, New Zealand and parts of Africa.

TraQiQ Solutions, Inc.

Ci2i is a services company founded in 1998 that develops and deploys intelligent technologies and products in order to meet the demand for sustainable, integrated solutions. Ci2i’s primary focus has been in the analytics and intelligence segments. The Company is investing significantly in building products in the area of supply chain and last mile delivery.

Ci2i’s cloud solutions and analytics services comprise software development, program management, project management, and business analytics services.

TraQiQ Solutions Private Limited

On May 16, 2019, the Company entered into a Share Exchange Agreement with Mann-India Technologies Private Ltd., an Indian Corporation (“Mann”). On January 2, 2020, Mann changed its name to TraQiQ Solutions Private Limited (“TRAQ Pvt Ltd”). Pursuant to the Share Exchange Agreement with Mann, the Company acquired 100% of the shares of Mann and assumed certain net liabilities in exchange for warrants exercisable over a ~~five~~five-years~~-years~~ to purchase ~~1,329,272~~166,159 shares of common stock of the Company valued at $268. The warrants will be exercisable as follows: (i) ~~100,771~~12,596 warrants immediately; (ii) ~~859,951~~107,494 warrants exercisable one-year after the date of closing, which was extended to March 31, 2021; and (iii) ~~368,550~~46,069 warrants exercisable two-years after the date of closing. This transaction is being recorded as a business combination under ASC 805. There were 56,400 of these warrants exercised during 2021 and 57,368 warrants remain outstanding as of March 31, 2022.

The warrants that are exercisable in one-year and two-years are conditioned upon TRAQ Pvt Ltd. achieving certain revenue figures and pre-tax profit percentages. TRAQ Pvt Ltd. must achieve target revenue of $1.1 million (US$) and pre-tax profit of 25% (US$). Should TRAQ Pvt Ltd. be unable to achieve these criteria, the warrants will be reduced proportionately. A total of ~~419,127~~52,391 of these warrants were cancelled effective May 16, 2021 as a result of these criteria not being achieved.

Mann-India Private limited was renamed to TraQiQ Solutions Private Limited shortly after acquisition by TraQiQ Inc.

TRAQ Pvt Ltd. was established in May 2000 and is headquartered in New Delhi, India. TRAQ Pvt Ltd. is a leading software development company which, with the advent of technology, has evolved as a mature and fast-growing company committed to provide reliable and cost-effective software solutions across industries all over the world.

TRAQ Pvt Ltd. has its own experienced team of software developers dedicated towards developing various kinds of customized software.

TraQ Pvt Ltd. has been doing business around the world for over 15 years, with particular emphasis on Latin America and India. The customer list includes large enterprise Finance and Insurance companies across Latin America. The company’s product portfolio has evolved rapidly and now includes enterprise ready solutions for payment processing, mobile wallets, micro lending solutions and digital transformation.

Rohuma, LLC

On January 22, 2021, the Company entered into a Share Exchange Agreement with Rohuma, LLC, a Delaware limited liability company (“Rohuma”) and its members, whereby the ~~Rohuna~~Rohuma members agreed to exchange all of their respective membership interests in Rohuma in exchange for ~~4,292,220~~536,528 shares of common stock, of which the first tranche of shares were issued on March 1, 2021 totaling ~~2,562,277~~320,285 shares, with the remaining value reflected as contingent consideration until the shares vest at which time they will be issued. The transaction was valued at $3,433,776 ($~~0.80~~6.40 per share). The Company as of March 31, 2022, determined that the second tranche of shares (134,132) met the criteria to be issued, and the value of $858,445 was reclassified from contingent consideration to Obligation to Issue Common Stock. Rohuma has an Indian affiliate that is owned 99% by Rohuma and 1%1% by its founding member. Rohuma controls this entity and the 1%1% ownership by the member is now less than 1%1% upon acquisition by the Company. This amount is reflected as a non-controlling interest.

Rohuma dba Kringle.ai is a California based software solutions company that enables digital and mobile commerce by providing enterprise class applications that cover loyalty and rewards products, payments, online ordering, distribution logistics for retail and more. Kringle analyzes customers’ omni-channel behaviors and transactions. Using AI for digital commerce, Kringle is able to deliver real time, automated 1:1 recommendations and personalized content across all customer touch points.

Mimo Technologies Private Limited

On February 17, 2021, the Company entered into a Share Exchange Agreement with Mimo Technologies Private Ltd., and Indian corporation (“Mimo”) and its shareholders, whereby the Mimo shareholders agreed to exchange all of their respective shares in Mimo in exchange for warrants to purchase ~~1,367,539~~170,942 shares of the Company’s common stock. Of these warrants, ~~820,524~~102,565 were earned at the date of acquisition, with the remaining ~~547,015~~68,377 expected to be earned over the next two years from grant based on revenue goals for Mimo. The warrants have a term of three years and an exercise price of $~~0.001~~0.008 and value in the amount of $1,640,447, of which $984,268 is reflected in additional paid in capital, with the remaining $656,179 reflected as contingent consideration. The Company as of March 31, 2022, determined that the criteria for vesting of the second tranche of warrants was satisfied and reclassified $410,112 from contingent consideration to additional paid in capital. In addition to the issuance of the warrants, TRAQ Pvt Ltd, wrote off $258,736 in amounts due from a note receivable, $123,778 in accounts receivable and $40,354 in a debenture from Mimo. In addition, a cash payment was made to one of the minority shareholders of Mimo in the amount of $22,338. The Company acquired over 99% of Mimo with the remaining percentage of less than 11%% reflected as a non-controlling interest.

TraQiQ operates the Mimo delivery and task service in India. This service runs on the TraQSuite platform. Mimo has 14,000+ independent contractors across India performing deliveries and fulfilling tasks for the largest corporations in the country. Our team at Mimo uses a sophisticated technology platform and a smartphone app to get their tasks completed. This is coupled with a verification and billing system that allows customers of all sizes to leverage this distribution infrastructure.

Mimo offers a broad set of services. These offerings can be classified into three broad categories:

	●	Data collection and client verification (surveys, verification, on-boarding),

	●	Cash management & handling services, and

	●	Distribution and demand generation (order fulfilment, demand generation, delivery services for e-commerce companies)

Mimo assists the delivery and pickup segment of the banking and insurance industry by performing verifications, field investigations for loan requests, business verifications and employment verification, and also collects documents, assists in filling forms for banks, and completes data collection from customers.

Mimo works with microfinance institutions to collect cash, such as loan payments, convert cash to digital means like debit cards, and conduct data collection and surveys.

For consumer goods companies, Mimo does promotional marketing, Last mile (hyper-local) delivery, merchant onboarding or activation, store audits, and route optimization for delivery. Mimo provides efficient end-to-end transshipment logistics. The framework manages and optimizes last-mile delivery & e-commerce logistics across the entire distribution chain with transparency and seamless integration.

Mimo is currently in the planning stages to provide food, alcohol & medicine deliveries as well.

During the COVID-19 pandemic, Mimo leveraged video as a platform for verification and document delivery. Now, the task workers include people who are in the field on bikes and trucks, people on a video screen, as well as people on the phone.

There are also data digitization tasks being done by Mimo task workers across the country. In a country like India where there are over 20 languages and multiple dialects, the task workers convert paper documents into electronic form in the same language or translate them into another language.

Mimo provides delivery and task worker solutions across India. Mimo works with Banking, Financial, Logistics and Distribution companies, to take their products and services to semi-urban and rural India. Mimo trains the agents in each Product or Service through an online and classroom training platform. The company powers the gig economy task workers throughout the country and provides a very valuable source of employment for young people who may or may not have a high school diploma.

NOTE 2 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the regulations of the United States Securities and Exchange Commission. The condensed consolidated financial statements and accompanying notes are the representations of the Company’s management, who are responsible for their integrity and objectivity. In their opinion, such financial information includes all adjustments considered necessary for a fair presentation at such date and the operating results and cash flows for such periods.

These condensed consolidated financial statements should be read in conjunction with a reading of the Company’s consolidated financial statements and notes thereto included in Form 10-K filed with the SEC on March ~~22, 2021.~~31, 2022. Interim results of operations for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 are not necessarily indicative of future results for the full year.

Consolidation

The ~~condensed~~ consolidated financial statements include the accounts of TraQiQ, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

The Company applies the guidance of Topic 810 Consolidation of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) to determine whether and how to consolidate another entity. Pursuant to ASC paragraph 810-10-15-10, all majority-owned subsidiaries—all entities in which a parent has a controlling financial interest—are consolidated except when control does not rest with the parent.

Pursuant to ASC paragraph 810-10-15-8, the usual condition for a controlling financial interest is ownership of a majority voting interest, and, therefore, as a general rule ownership by one reporting entity, directly or indirectly, of more than 50 percent of the outstanding voting shares of another entity is a condition pointing toward consolidation. The power to control may also exist with a lesser percentage of ownership, for example, by contract, lease, agreement with other stockholders, or by court decree.

Noncontrolling Interests

In accordance with ASC 810-10-45 Noncontrolling Interests in Consolidated Financial Statements, the Company classifies noncontrolling interests as a component of equity within the consolidated balance sheet. In January 2021, the acquisition of Rohuma resulted in a less than 1% non-controlling interest of the Indian affiliate of that company. In February 2021, the acquisition of Mimo resulted in a less than 1% non-controlling interest of that company.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. These estimates include, but are not limited to, management’s estimate of provisions required for non-collectible accounts receivable, depreciative lives of our assets, determination of technological feasibility, and valuation allowances of our deferred tax assets. Actual results could differ from those estimates.

Foreign Currency Transactions

The Company accounts for foreign currency transactions in accordance with ASC 830, “Foreign Currency Matters” (“ASC 830”), specifically the guidance in subsection ASC 830-20, “Foreign Currency Transactions”. The U.S. dollar is the functional and reporting currency for the Company and its subsidiaries other than TRAQ Pvt Ltd. whose functional currency is the Indian Rupee. Pursuant to ASC 830, monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting gains or losses upon settlement reported in foreign exchange gain (loss) in the computation of net income (loss). Gains or losses resulting from translation adjustments are reported under accumulated other comprehensive income (loss).

Reclassification

Certain prior period amounts have been reclassified to conform with current period presentation with no effect on the Company’s net loss, total assets, liabilities equity or cash flows.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days or less of $~~400,410~~109,877 and $~~29,658~~56,329 as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

Restricted Cash

The Company’s restricted cash balance consists of time deposits with financial institutions which are valued at cost and approximate fair value. Interest earned on these deposits in included in interest income. The carrying value of our restricted cash at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 was $~~114,575~~111,989 and $~~28,746~~114,199, respectively. The balances consist of time deposits pledged with financial institutions for a Line of Credit facility taken from Andhra Bank, issuance of overdraft limit.

Accounts Receivable and Concentration of Credit Risk

The Company considers accounts receivable, net of allowance for returns and doubtful accounts, to be fully collectible. The allowance is based on management’s estimate of the overall collectability of accounts receivable, considering historical losses and economic conditions. Based on these same factors, individual accounts are charged off against the allowance when management determines those individual accounts are uncollectible.

Credit extended to customers is generally uncollateralized. Past-due status is based on contractual terms. Management has determined that an allowance of $~~229,034~~182,454 and $0193,535 was required for the outstanding accounts receivable as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

Property and Equipment and Long-Lived Assets

Fixed assets are stated at cost. Depreciation on fixed assets are computed using the straight-line method over the estimated useful lives of the assets, which range from threeto ten years.

FASB Codification Topic 360 “Property, Plant and Equipment” (ASC 360), requires that long-lived assets and certain identifiable intangibles held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The application of ASC 360 has not materially affected the Company’s reported earnings, financial condition or cash flows.

Intangible assets with definite useful lives are stated at cost less accumulated amortization. Intangible assets represent purchased intangible assets of TRAQ Pvt Ltd., and Mimo which includes customer relationships and trademarks. The Company amortizes these intangible assets on a straight-line basis over their estimated useful lives of up to 15 years. OmniM2M has had and currently does have computer software development underway, however, has determined that the costs associated with this development, currently do not meet the requirements for capitalization under ASC 985-20-25. OmniM2M will continue to monitor the development of such software in relationship to the requirements under the ASC in the future to determine if capitalization is warranted.

The Company has adopted Accounting Standard Update (“ASU”) 2017-04 Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment. The adoption of this ASU did not have a material impact on our consolidated financial statements. The Company reviews recoverability of long-lived assets on a periodic basis whenever events and changes in circumstances have occurred which may indicate a possible impairment. The assessment for potential impairment is based primarily on the Company’s ability to recover the carrying value of its long-lived assets from expected future cash flows from its operations on an undiscounted basis. If such assets are determined to be impaired, the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets.

The Company will assess the impairment of identifiable intangibles whenever events or changes in circumstances indicate that the carrying value may not be recoverable at the time they do have intangible assets. Factors the Company considers to be important which could trigger an impairment review include the following:

1. Significant underperformance relative to expected historical or projected future operating results;

2. Significant changes in the manner of use of the acquired assets or the strategy for the overall business; and

3. Significant negative industry or economic trends.

When the Company determines that the carrying value of intangibles may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flows, the Company records an impairment charge. The Company will measure any impairment based on a projected discounted cash flow method using a discount rate determined by management to be commensurate with the risk inherent in the current business model. Significant management judgment is required in determining whether an indicator of impairment exists and in projecting cash flows. Management has determined that 0 impairment of long-lived assets is required for the periods ended ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020.~~2021.

Capitalized Software Costs

In accordance with the relevant FASB accounting guidance regarding the development of software to be sold, leased, or marketed, the Company expenses such costs as they are incurred until technological feasibility has been established, at and after which time these costs are capitalized until the product is available for general release to customers. Once the technological feasibility is established per ASC 985-20, the Company capitalizes costs associated with the acquisition or development of major software for internal and external use in the balance sheet.

Costs incurred to enhance the Company’s software products, after general market release of the services using the products, is expensed in the period they are incurred.

The Company only capitalizes subsequent additions, modifications or upgrades to internally developed software to the extent that such changes allow the software to perform a task it previously did not perform. The Company expenses software maintenance and training costs as incurred. ~~The Company acquired $146,065~~ ~~in software costs in the Mimo transaction.~~

Revenue Recognition

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), specifically ASC 606-10-50-12. This standard provides a single set of guidelines for revenue recognition to be used across all industries and requires additional disclosures. The updated guidance introduces a five-step model to achieve its core principal of the entity recognizing revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted the updated guidance effective January 1, 2018 using the full retrospective method, however the new standard did not have a material impact on its consolidated financial position and consolidated results of operations, as it did not change the manner or timing of recognizing revenue.

Professional Service Revenue

TRAQ Pvt Ltd. derives a large part of its revenues from professional and support services, which includes revenue generated from software development projects and associated fees for consulting, implementation, training, and project management provided to customers using their systems. Revenue from arrangements with customers is recognized based on the Company’s satisfaction of distinct performance obligations identified in each agreement, generally at a point in time as discussed in ASC 606. In instances where multiple performance obligations are identified, the Company allocates the transaction price to each performance obligation based on relative selling prices of each distinct product or service, and recognizes revenue related to each performance obligation at the points in time that each performance obligation is satisfied. The Company’s performance obligation includes providing customization of software’s, selling of licenses, where the Company typically satisfies its performance obligations prior to the submission of invoices to the customer for such services. The Company’s performance obligation for consulting and technical support is delivered on as the work is being performed, which is satisfied prior to invoicing.

The Company generally collects payment within 30 to 60 days of completion of the performance obligation and there are no agency relationships.

Software development arrangements involving significant customization, modification or production are accounted for in accordance with the appropriate technical accounting guidance issued by the FASB using the percentage-of- completion method. The Company recognizes revenue using periodic reported actual hours worked as a percentage of total expected hours required to complete the project arrangement and applies the percentage to the total arrangement fee.

Unbilled revenue represents earnings in excess of billings as at the end of the reporting period. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenues in the statements of operations.

TRAQ Pvt Ltd. has deferred the revenue and costs attributable to certain process transition activities with respect to its customers where such activities do not represent the culmination of a separate earnings process. Such revenue and costs are subsequently recognized ratably over the period in which the related services are performed. Further, the deferred costs are limited to the amount of the deferred revenues.

TRAQ Pvt Ltd. has now started offering an integrated solution for supply chain and last mile. This product called “TraQSuite” is now offered in multiple markets as a cloud-based subscription offering. This is a significant improvement from the earlier professional services business.

Software Solution Revenue

Revenue from arrangements with customers is recognized based on the Company’s satisfaction of distinct performance obligations identified in each agreement, generally at a point in time as discussed in ASC 606. In instances where multiple performance obligations are identified, the Company allocates the transaction price to each performance obligation based on relative selling prices of each distinct product or service, and recognizes revenue related to each performance obligation at the points in time that each performance obligation is satisfied. The Company’s performance obligation includes providing connectivity to software, generally through a monthly subscription, where the Company typically satisfies its performance obligations prior to the submission of invoices to the customer for such services. The Company’s performance obligation for hardware components that are purchased by the customer in connection with the solution is delivery of the purchased device, which is satisfied prior to invoicing. The Company provides a twelve-month warranty on their hardware. All units deployed by the Company are past the twelve-month period, thus the Company has not accrued for a warranty liability. The Company generally collects payment within 30 to 60 days of completion of the performance obligation and there are no agency relationships.

Revenue From Sales of Goods

The following is a summary of revenue for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ disaggregated by type:

SUMMARY OF DISAGGREGATION OF REVENUE

	2021		2020		2022		2021
Professional Services Revenue	$	921,343	$	670,019	$	296,744	$	365,548
Sale of goods		787,150		-		-		-
Software Solution Revenue		400,594		69,158		50,656		16,838
	$	2,109,087	$	739,177	$	347,400	$	382,386

Costs of Services Provided

Costs of services provided consist of purchase of goods, data processing costs, customer support costs including personnel costs to maintain the Company’s proprietary databases, costs to provide customer call center support, hardware and software expense associated with transaction processing systems and exchanges, telecommunication and computer network expense, and occupancy costs associated with facilities where these functions are performed. Depreciation expense is not included in costs of services provided.

Lease Obligations

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current portion of operating lease liabilities and operating lease liabilities, less current portion in the Company’s consolidated balance sheets.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For leases in which the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately.

Income Taxes

Income taxes are accounted under the asset and liability method. The current charge for income tax expense is calculated in accordance with the relevant tax regulations applicable to entity. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Uncertain Tax Positions

The Company follows ASC 740-10, “Accounting for Uncertainty in Income Taxes”. This requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. Management evaluates their tax positions on an annual basis.

TraQiQ, Inc.and TraQiQ Solutions, Inc, file a consolidated income tax return and Rohuma US files a separate tax return in the U.S. federal tax jurisdiction and various state tax jurisdictions. TRAQ Pvt Ltd. as well as Mimo and Rohuma India file separate individual income tax returns in the India tax jurisdictions. The U.S. federal and state income tax returns of the Company are subject to examination by the IRS and state taxing authorities, generally for three years after they were filed. The India tax returns of are subject to examination by the India Income Tax Department and India state taxing authority, generally for 12 months after the relevant tax year, 24 months after the relevant tax year in case transfer pricing provisions are applicable.

Fair Value of Financial Instruments

ASC 825, “Financial Instruments,” requires the Company to disclose estimated fair values for its financial instruments. The carrying amount of cash, accounts receivable, prepaid and other current assets, accounts payable and accrued expenses, stockholder advances, short term financing and convertible debt approximate fair value because of the short-term maturity of those instruments. The Company does not utilize derivative instruments.

Fair Value Measurements

ASC 820 “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosure about fair value measurements.

The following provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which fair value is observable:

Level 1- fair value measurements are those derived from quoted prices (unadjusted in active markets for identical assets or liabilities);

Level 2- fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

Level 3- fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Financial instruments classified as Level 1 - quoted prices in active markets include cash.

These consolidated financial instruments are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment to estimation. Valuations based on unobservable inputs are highly subjective and require significant judgments. Changes in such judgments could have a material impact on fair value estimates.

In addition, since estimates are as of a specific point in time, they are susceptible to material near-term changes. Changes in economic conditions may also dramatically affect the estimated fair values.

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management for the respective periods. The respective carrying value of certain financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include cash, investments, short-term notes payable, accounts payable and accrued expenses.

Derivative Financial Instruments

Derivatives are recorded on the consolidated balance sheet at fair value. The conversion features of the convertible instruments are embedded derivatives and are separately valued and accounted for on the consolidated balance sheet with changes in fair value recognized during the period of change as a separate component of other income/expense. Fair values for exchange-traded securities and derivatives are based on quoted market prices. Valuations derived from various models are subject to ongoing internal and external verification and review. Model used incorporate market-sourced inputs such as interest rates and stock price volatilities. Selection of these inputs involves management’s judgment and may impact net income (loss).

With the issuance of the July 2017 FASB ASU 2017-11, “Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815),” which addresses the complexity of accounting for certain financial instruments with down round features, the Company has chosen the early adopt retroactively the amendments in Part I of the standard whereby fair value derivative liabilities previously recognized were derecognized in the current and comparative periods. Under the amendments included in this update, the Company is no longer required to record changes in fair value during the period of change as a separate component of other income (expense) in the consolidated Statements of Operations.

The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, “Debt—Debt with Conversion and Other Options”), including related EPS guidance (in Topic 260).

The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect.

Under current GAAP, an equity-linked financial instrument with a down round feature that otherwise is not required to be classified as a liability under the guidance in Topic 480 is evaluated under the guidance in Topic 815, “Derivatives and Hedging,” to determine whether it meets the definition of a derivative. If it meets that definition, the instrument (or embedded feature) is evaluated to determine whether it is indexed to an entity’s own stock as part of the analysis of whether it qualifies for a scope exception from derivative accounting.

Generally, for warrants and conversion options embedded in financial instruments that are deemed to have a debt host (assuming the underlying shares are readily convertible to cash or the contract provides for net settlement such that the embedded conversion option meets the definition of a derivative), the existence of a down round feature results in an instrument not being considered indexed to an entity’s own stock. This results in a reporting entity being required to classify the freestanding financial instrument or the bifurcated conversion option as a liability, which the entity must measure at fair value initially and at each subsequent reporting date.

The amendments in this Update revise the guidance for instruments with down round features in Subtopic 815-40, “Derivatives and Hedging—Contracts in Entity’s Own Equity,” which is considered in determining whether an equity-linked financial instrument qualifies for a scope exception from derivative accounting. An entity still is required to determine whether instruments would be classified in equity under the guidance in Subtopic 815-40 in determining whether they qualify for that scope exception. If they do qualify, freestanding instruments with down round features are no longer classified as liabilities and embedded conversion options with down round features are no longer bifurcated.

For entities that present EPS in accordance with Topic 260, and when the down round feature is included in an equity-classified freestanding financial instrument, the value of the effect of the down round feature is treated as a dividend when it is triggered and as a numerator adjustment in the basic EPS calculation. This reflects the occurrence of an economic transfer of value to the holder of the instrument, while alleviating the complexity and income statement volatility associated with fair value measurement on an ongoing basis. Convertible instruments are unaffected by the Topic 260 amendments in this Update.

Those amendments in Part I of this Update are a cost savings relative to current GAAP. This is because, assuming the required criteria for equity classification in Subtopic 815-40 are met, an entity that issued such an instrument no longer measures the instrument at fair value at each reporting period (in the case of warrants) or separately accounts for a bifurcated derivative (in the case of convertible instruments) on the basis of the existence of a down round feature. For convertible instruments with embedded conversion options that have down round features, applying specialized guidance such as the model for contingent beneficial conversion features rather than bifurcating an embedded derivative also reduces cost and complexity. Under that specialized guidance, the issuer recognizes the intrinsic value of the feature only when the feature becomes beneficial instead of bifurcating the conversion option and measuring it at fair value each reporting period.

The amendments in Part II of this Update replace the indefinite deferral of certain guidance in Topic 480 with a scope exception. This has the benefit of improving the readability of the Codification and reducing the complexity associated with navigating the guidance in Topic 480.

For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part 1 of this Update should be applied in either of the following ways:

	1.	retrospectively to outstanding financial instruments with a down round feature by means of a cumulative-effect adjustment to the statement of financial position as of the beginning of the first fiscal year and interim period(s) in which the pending content that links to this paragraph is effective; or

	2.	retrospectively to outstanding financial instruments with a down round feature for each prior reporting period presented in accordance with the guidance on accounting changes in paragraphs 250-10-45-5 through 45-10.

The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect.

Earnings (Loss) Per Share of Common Stock

Basic net income (loss) per common share is computed using the weighted average number of common shares outstanding. Diluted earnings per share (EPS) include additional dilution from common stock equivalents, such as convertible notes, preferred stock, stock issuable pursuant to the exercise of stock options and warrants. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports a loss because to do so would be anti-dilutive for periods presented.

Related Party Transactions

Parties are considered to be related to the Company if the parties directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal stockholders of the Company, its management, members of the immediate families of principal stockholders of the Company and its management and other parties with which the Company may deal where one-party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. All transactions shall be recorded at fair value of the goods or services exchanged. Property purchased from a related party is recorded at the cost to the related party and any payment to or on behalf of the related party in excess of the cost is reflected as compensation or distribution to related parties depending on the transaction.

Retirement Benefits to Employees

Defined Contribution Plan

In India, the employees receive benefits from a provident fund, where the employer and employees each make monthly contributions to the plan at a pre-determined rate to the Regional Provident Fund Commissioner. Employer’s contributions to the fund is charged as an expense in the Statements of Operations.

Defined Benefit Plan

In accordance with the Payment of Gratuity Act, 1972, applicable for Indian companies, ~~TRAQ Pvt Ltd. provides~~our Indian entities provide for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by ~~TRAQ Pvt Ltd. TRAQ Pvt Ltd. records~~the Indian entities. The Indian entities record annual amounts relating to ~~its~~their defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. ~~TRAQ Pvt Ltd.~~The Indian entities reserves its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. ~~TRAQ Pvt Ltd.’s~~The Indian entities obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation.

Other Long-Term Employee Benefits

~~TRAQ Pvt Ltd.’s~~The Indian entities net obligation in respect of leave encashment is the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is based on the prevailing market yields of Indian government securities at the reporting date that have maturity dates approximating the terms of ~~TRAQ Pvt Ltd.’s~~the Indian entities obligations. The calculation is performed using the projected unit credit method. Any actuarial gains or losses are recognized.

Investments

The Company’s investments are in debt and equity instruments. These investments are accounted for in accordance with ASC 320 Investments – Debt Securities and ASC 321 Investments – Equity Securities. Interest earned under such investments are included in interest income.

Segment Reporting

For purposes of segment disclosures, two or more operating segments should be grouped only if the segments meet all the requirements of paragraph 280-10-50-11, including the requirements for similar economic characteristics.

As a result, all operating units perform similar services, and approximately 99% of the Company’s revenue is generated from its Indian subsidiary. The Company believes that no segment reporting is required as all remaining operations outside of the Indian subsidiary is immaterial.

Recently Issued Accounting Standards

There were updates recently issued, most of which represent technical corrections to the accounting literature or application to specific industries or transactions that are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

Going Concern

The Company has an accumulated deficit of $~~7,784,336~~9,871,116 as of March 31, 2022 and a working capital deficit of $~~8,546,369~~10,162,780, as of ~~September 30, 2021,~~March 31, 2022, and a working capital deficit of $~~2,851,721~~9,844,269 as of December 31, ~~2020.~~2021. As a result of these factors, management has determined that there is substantial doubt about the Company ability to continue as a going concern.

These consolidated financial statements of the Company have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and the satisfaction of liabilities in the normal course of business over a reasonable period. The consolidated financial statements of the Company do not include any adjustments that may result from the outcome of the uncertainties.

The Company has recently filed a Registration Statement on Form S-1 and engaged an investment banker to undertake an offering of approximately $15,000,000. The investment banker has assisted the Company in raising a bridge round of debt financing ~~through October 15, 2021~~ in the amount of $1,200,000, which is net of original issue discount of $240,000. Management intends to use the funds received from the capital raise to grow both organically and inorganically by pursuing potential synergistic companies as well as invest in technology and human capital for their existing operations. The Company’s ability to close on this potential offering to raise additional capital is unknown. Obtaining additional financing, including approximately $550,000 in the three months ended March 31, 2022, and the successful development of the Company’s contemplated plan of operations, ultimately, to profitable operations, are necessary for the Company to continue operations.

NOTE 3: ACQUISITIONS

~~TRAQ PVT LTD~~

On May 16, 2019, the Company entered into a Share Exchange Agreement with Mann-India Technologies Private Ltd., an Indian Corporation. On January 2, 2020, the name of this company was changed to TRAQIQ Solutions Private Limited. Pursuant to the Share Exchange Agreement with TRAQ Pvt Ltd., the Company acquired ~~100%~~ ~~of the shares of TRAQ Pvt Ltd. and assumed certain net liabilities) in exchange for warrants exercisable over a~~ ~~five-years to purchase~~ ~~1,329,272~~ ~~shares of common stock of the Company valued at $268. The warrants will be exercisable as follows: (i)~~ ~~100,771~~ ~~warrants immediately upon closing; (ii)~~ ~~859,951~~ ~~warrants exercisable one-year after the date of closing, which was extended to March 31, 2021; and (iii)~~ ~~368,550~~ ~~warrants exercisable two-years after the date of closing.~~

The warrants that are exercisable in one-year and two-years are conditioned upon TRAQ Pvt Ltd. achieving certain revenue figures and pre-tax profit percentages. TRAQ Pvt Ltd. must achieve target revenue of $~~1.1~~ ~~million (US$) and pre-tax profit of~~ ~~25%~~ ~~(US$). Should TRAQ Pvt Ltd. be unable to achieve these criteria, the warrants will be reduced proportionately. A total of~~ ~~419,127~~ ~~of these warrants were cancelled effective May 16, 2021 as a result of these criteria not being achieved.~~

The Company acquired the assets and liabilities noted below in exchange for the warrants noted herein and accounted for the acquisition in accordance with ASC 805. As a result, total consideration was equal to the value of the warrants of $~~268, as stated in the agreement, and the Company recognized a gain on bargain purchase in the amount of $417,148~~.

ROHUMA

On January 22, 2021, the Company entered into a Share Exchange Agreement with Rohuma, LLC, a Delaware limited liability company (“Rohuma”) and its members, whereby the ~~Rohuna~~Rohuma members agreed to exchange all of their respective membership interests in Rohuma in exchange for ~~4,292,220~~536,528 shares of common stock, of which the first tranche of shares were issued on March 1, 2021 totaling ~~2,562,277~~320,285 shares, with the remaining value reflected as contingent consideration until the shares vest at which time they will be issued. The transaction was valued at $3,433,776 ($~~0.80~~6.40 per share). The Company as of March 31, 2022, determined that the second tranche of shares (134,132) met the criteria to be issued, and the value of $858,445 was reclassified from contingent consideration to obligation to issue common stock. Rohuma has an Indian affiliate that is owned 99% by Rohuma and 11%% by its founding member. Rohuma controls this entity and the 11%% ownership by the member is now less than 1%1% upon acquisition by the Company. This amount is reflected as a non-controlling interest.

The Company acquired the assets and liabilities noted below in exchange for the shares noted herein and accounted for the acquisition in accordance with ASC 805.

SCHEDULE OF BUSINESS ACQUISITION


Cash	$	6,027		$	6,027
Accounts receivables, net		4,179			4,179
Prepaid expenses and other current assets		8,943			8,943
Fixed assets		4,512			4,512
Tradenames					-
Intellectual property		-			-
Tradenames		-
Investment		1,440			1,440
Accounts payable and accrued expenses					(58,153	)
Accrued payroll and related taxes		-			-
Accounts payable and accrued expenses		(58,153	)
Accrued duties and taxes		(2,688	)		(2,688	)
Cash overdraft		(2,980	)		(2,980	)
Comprehensive income		-			-
Debt- related parties		(37,776	)		(37,776	)
Debt		(10,000	)		(10,000	)
Net assets and liabilities acquired	$	(86,496	)	$	(86,496	)

The difference between the net liabilities acquired of $86,496, and the consideration paid (in the form of shares, inclusive of contingent consideration of $1,383,954) of $3,520,272represents goodwill. The Company had an independent valuation consultant perform an impairment test and it was determined that 0no impairment exists on the ~~goodwill as of September 30, 2021.~~goodwill.

MIMO TECHNOLOGIES

The Company acquired the assets and liabilities noted below in exchange for the warrants noted herein and accounted for the acquisition in accordance with ASC 805.

SCHEDULE OF BUSINESS ACQUISITION


Cash	$	43,851
Accounts receivables, net		58,692
Prepaid expenses and other current assets		272,872
Fixed assets		153,186
Intellectual property		508,669
Tradenames		169,556
Accounts payable and accrued expenses		(708,833	)
Accrued payroll and related taxes		(104,750	)
Accrued duties and taxes		(28,213	)
Comprehensive income		(42,735	)
Debt – related parties		(343,118	)
Debt		(236,712	)
Net assets and liabilities acquired	$	(257,535	)

The difference between the net liabilities acquired of $$(~~(257,535)~~257,535), and the consideration paid (in the form of cash and warrants, net of adjustments for the note payable and accounts payable of Mimo with TRAQ Pvt Ltd) of $2,085,653represents goodwill in the amount of $2,343,188.The ~~Company’s has~~Company had an independent valuation consultant perform an impairment test and it was determined 0that no impairment ofexists on the ~~goodwill exists as of September 30, 2021.~~goodwill.

The following table shows pro-forma results for the ~~nine~~three months ended ~~September 30,~~March 31, 2021 ~~and 2020~~ as if the acquisition had occurred on January 1, ~~2020.~~2021. These unaudited pro forma results of operations are based on the historical financial statements and related notes of Rohuma, Mimo and the Company.

SCHEDULE OF PROFORMA FOR BUSINESS ACQUISITION

	For the nine months ended September 30, 2021			For the nine months ended September 30, 2020			For the three months ended March 31, 2021
Revenues	$	2,145,049		$	1,075,450		$	469,404
Net income (loss)	$	(5,335,349	)	$	(711,754	)	$	(1,408,446	)
Net income (loss) per share	$	(0.17	)	$	(0.03	)	$	(0.40	)

NOTE 4: CASH AND RESTRICTED CASH

Cash and restricted cash are as follows:

SCHEDULE OF CASH AND RESTRICTED CASH

	September 30, 2021		December 31, 2020		March 31, 2022		December 31, 2021
Cash on hand	$	109	$	141	$	165	$	646
Bank balances		400,301		29,517		109,712		55,683
Restricted cash		114,575		28,746		111,989		114,199
Total	$	514,985	$	58,404	$	221,866	$	170,528

ASU 2016-18, “Statements of Cash Flows” (Topic 230) was adopted by the Company in 2017. In accordance with this standard, restricted cash and restricted cash equivalents is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Statements of Cash Flows. During the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021 ~~and the year ended December 31, 2020~~ there were 0 cash equivalents.

NOTE 5: FIXED ASSETS

The Company’s property and equipment is as follows:

SCHEDULE OF PROPERTY AND EQUIPMENT

	September 30, 2021			December 31, 2020			Estimated Life	March 31, 2022			December 31, 2021			Estimated Life

Property and equipment – TRAQ Pvt Ltd.	$	629,644		$	638,587		3 - 10 years	$	639,221		$	627,188		3 - 10 years
Property and equipment – Rohuma US		1,100			-		3 - 10 years		1,100			1,100		3 - 10 years
Property and equipment – Rohuma India		7,501			-		3 – 10 years		10,678			9,916		3 – 10 years
Property and Equipment – Mimo Technologies		6,886			-		3 – 10 years		7,646			7,342		3 – 10 years
Less: accumulated depreciation		(609,308	)		(602,214	)			(603,075	)		(611,381	)

Net	$	35,823		$	36,373			$	55,570		$	34,165

Depreciation expense for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ was $~~13,787~~3,549 and $~~11,354~~4,046, respectively.

NOTE 6: INTANGIBLE ASSETS

The Company’s intangible assets are as follows:

SCHEDULE OF INTANGIBLE ASSETS

	September 30, 2021			December 31, 2020			March 31, 2022			December 31, 2021

Customer relationships	$	448,800		$	448,800		$	448,800		$	448,800
Intellectual property		508,669			-			508,669			508,669
Tradenames		219,355			49,799			215,528			218,799
Software		250,916			-			245,254			250,095
Less: accumulated amortization		(200,930	)		(54,015	)		(238,954	)		(219,397	)

Net	$	1,226,810		$	444,584		$	1,179,297		$	1,206,966

Amortization expense for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ was $~~40,703~~21,365 and $~~24,930~~12,672, respectively.

NOTE 7: GOODWILL

The Company’s goodwill consists of the following:

SCHEDULE OF GOODWILL

	September 30, 2021		December 31, 2020		March 31, 2022		December 31, 2021

Rohuma	$	3,519,870	$	-	$	3,519,870	$	3,519,870
Mimo Technologies		2,343,188		-		2,343,188		2,343,188

Net	$	5,863,058	$	-	$	5,863,058	$	5,863,058

For the ~~period~~three months ended ~~September 30,~~March 31, 2022 and 2021, there were 0no indicators of impairment noted.

~~NOTE 8:~~ ~~LONG-TERM INVESTMENT~~

~~The Company’s long-term investment is as follows:~~

~~SCHEDULE OF LONG-TERM INVESTMENT~~

September 30,
2021

December 31,
2020

Equity Security – Compulsorily Convertible Debenture $ - $ 40,603

~~The investment the Company had in a~~ 1~~% Compulsorily Convertible Debenture for the period of~~ ~~seven years~~ were neither to be redeemed by the issuing entity nor are redeemable at the option of the investor, therefore this has been considered an equity security. The Company had elected to measure the equity security at its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The debenture was between TRAQ Pvt Ltd. and Mimo and was forgiven/written-off prior to the acquisition of Mimo on February 16, 2021.

~~In addition, there was an investment acquired in the acquisition of Rohuma US for $1,440~~.

~~NOTE 9:~~ ~~NOTE RECEIVABLE~~

~~The Company’s notes receivable is as follows:~~

~~SCHEDULE OF NOTE RECEIVABLE~~

September 30,
2021 December 31,
2020

MIMO Technologies PVT Ltd $ - $ 227,877

~~The Company entered into a note receivable with a related party in the amount of~~ ~~15,037,263~~ ~~INR (approximately $170,000~~ ~~US$) dated April 1, 2020 with no stated maturity date. The note bears interest at~~ 13~~% per annum. Further, the Company provided additional amounts on October 5, 2020, to bring the total outstanding to~~ ~~16,647,264~~ ~~INR ($227,877~~ ~~US$) as of December 31, 2020. Upon the acquisition of Mimo by the Company, the balance of $258,736~~ ~~in the note receivable was reduced to zero and applied towards the purchase of Mimo.~~

NOTE ~~10:~~8: CONVERTIBLE NOTES PAYABLE

As of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, the Company had the following convertible notes outstanding, all are current ~~liabilities:~~liabilities. Any convertible notes payable that were repaid or converted in 2021, are not listed, and details of which can be found in our Form 10-K filed March 31, 2022:

SCHEDULE OF CONVERTIBLE NOTES OUTSTANDING

		September 30, 2021			December 31, 2020			March 31, 2022			December 31, 2021
GS Capital	(a)	$	45,000		$	-
Platinum Point Capital	(b)		400,000			-
Evergreen Capital Management LLC	(c)		720,000			-	(a)	$	1,440,000		$	1,440,000

Total Convertible Notes Payable		$	1,165,000		$	-		$	1,440,000		$	1,440,000
Less: Discounts			(790,454	)		-			(495,638	)		(785,149	)
		$	374,546		$	-
Convertible Notes Payable Current								$	944,362		$	654,851

	(a)	~~On January 19, 2021, the Company entered into a~~ 12~~% Convertible Promissory Note with GS Capital Partners, LLC (the “GS Note”) in the amount of $125,000. The GS Note has a maturity of~~ ~~one-year~~ ~~and is to be repaid commencing on the fifth month anniversary and every month thereafter in the amount of $20,000. The conversion price of the GS Note is~~ 66~~% of the lowest closing stock price over the previous~~ 20 trading days. There are certain price protections for GS Capital Partners, LLC under the terms of the GS Note, which make the conversion option a derivative liability. The Company recorded an original issue discount in the amount of $~~10,000~~ ~~and $5,000~~ ~~was paid out of the proceeds for legal fees. In accordance with the terms of the GS Note, the Company issued~~ ~~26,000~~ ~~shares of common stock as a commitment fee and issued~~ ~~170,000~~ ~~shares of common stock that are returnable upon achievement of the terms of the GS Note. Through September 30, 2021, the Company has repaid $80,000~~ ~~of the GS Note.~~

	~~(b)~~	~~On February 12, 2021, the Company entered into a~~ 10~~% Convertible Promissory Note with Platinum Point Capital, LLC (the “Platinum Note”). The Platinum Note has a maturity of~~ ~~one-year. The conversion price of the Platinum Note is the greater of (a) $0.01~~ ~~or (b)~~ 70~~% of the lowest closing stock price over the previous~~ 15 ~~trading days. There are certain price protections for Platinum Point Capital, LLC under the terms of the Platinum Note, which make the conversion option a derivative liability. The Company granted~~ ~~200,000~~ ~~warrants that have a term of~~ ~~three-years~~ ~~and an exercise price of $2.00~~ per share with the Platinum Note. The warrants granted with the Platinum Note also contain certain price protections, that make the value of the warrants a derivative liability. The Company and Platinum Point Capital, LLC entered into an amendment to exclude the Mimo warrants granted on February 17, 2021 from the price protections. In accordance with the terms of the Platinum Note, the Company issued ~~60,000~~ ~~shares as a commitment fee. On October 6, 2021, Platinum converted $75,000~~ ~~of their outstanding balance into~~ ~~405,844~~ ~~shares of common stock, and then on October 8, 2021, the Company paid the remaining principal balance of $325,000~~ ~~along with the accrued interest payable of $25,644~~ ~~and a prepayment penalty of $70,129, for a total of $420,773~~.

	~~(c)~~	On September 17, 2021, the Company entered into a 2020%% OID Senior Secured Promissory Note with Evergreen Capital Management LLC (the “Evergreen 1”) in the amount of $720,000 (includes $120,000 of Original Issue Discount). The Evergreen 1 has a maturity of nine months to June 17, ~~2022.~~2022. The Evergreen 1 accrues interest at a rate of 1010%% per year. The conversion price of Evergreen 1 is the lower of (a) $~~1.45~~11.60 (“Fixed Conversion Price”) or (b) upon the occurrence and during the continuation of any Event of Default, if lower, 9090%% of the average of the two lowest VWAPs for the five (5) consecutive Trading Day that is immediately prior to the applicable Conversion Date (the “Default Conversion Price”). There are certain price protections for Evergreen Capital Management LLC under the terms of Evergreen 1, which make the conversion option a derivative liability. The Company granted ~~496,552~~62,069 warrants that have a term of five-years and an exercise price of $~~1.45~~11.60 per share with Evergreen 1. The warrants granted with Evergreen 1 also contain certain price protections, that make the value of the warrants a derivative liability.

As a commission on this note, the Company granted to the investment bankers, 4,966 warrants with the same terms as the Evergreen Capital Management warrants. The Company recognized a commission expense for $37,977 on these warrants.

On October 8, 2021, the Company entered into a 20% OID Senior Secured Promissory Note in the amount of $480,000 (includes $80,000 of Original Issue Discount) with Evergreen Capital Management LLC (the “Evergreen 2”). The Evergreen 2 has a maturity of nine months to July 8, 2022. The Evergreen 2 accrues interest at a rate of 10% per year. The conversion price of Evergreen 2 is the lower of (a) $11.60 (“Fixed Conversion Price”) or (b) upon the occurrence and during the continuation of any Event of Default, if lower, 90% of the average of the two lowest VWAPs for the five (5) consecutive Trading Day that is immediately prior to the applicable Conversion Date (the “Default Conversion Price”). There are certain price protections for Evergreen Capital Management LLC under the terms of Evergreen 2, which make the conversion option a derivative liability. The Company granted 41,379 warrants that have a term of five-years and an exercise price of $11.60 per share with Evergreen 2. The warrants granted with Evergreen 2 also contain certain price protections, that make the value of the warrants a derivative liability.

As a commission on this note, the Company granted to the investment bankers, 3,310 warrants with the same terms as the Evergreen Capital Management warrants. The Company recognized a commission expense for $9,695 on these warrants.

On October 15, 2021, the Company entered into a 20% OID Senior Secured Promissory Note in the amount of $240,000 (includes $40,000 of Original Issue Discount) with Evergreen Capital Management LLC (the “Evergreen 3”). The Evergreen 3 has a maturity of nine months to July 15, 2022. The Evergreen 3 accrues interest at a rate of 10% per year. The conversion price of Evergreen 3 is the lower of (a) $11.60 (“Fixed Conversion Price”) or (b) upon the occurrence and during the continuation of any Event of Default, if lower, 90% of the average of the two lowest VWAPs for the five (5) consecutive Trading Day that is immediately prior to the applicable Conversion Date (the “Default Conversion Price”). There are certain price protections for Evergreen Capital Management LLC under the terms of Evergreen 3, which make the conversion option a derivative liability. The Company granted 20,690 warrants that have a term of five-years and an exercise price of $11.60 per share with Evergreen 3. The warrants granted with Evergreen 3 also contain certain price protections, that make the value of the warrants a derivative liability.

As a commission on this note, the Company granted to the investment bankers, 1,655 warrants with the same terms as the Evergreen Capital Management warrants. The Company recognized a commission expense for $5,756 on these warrants.

Interest expense on these notes for the ~~nine~~three months ended ~~September 30, 2021 and 2020 are~~March 31, 2022 is $~~38,208~~35,507 ~~and $~~0~~, respectively.~~. Amortization of debt and original issue discounts was $~~253,414~~ ~~and $~~0289,511 for the ~~nine~~three months ended ~~September 30, 2021 and 2020, respectively.~~March 31, 2022.

NOTE ~~11:~~9: LONG-TERM DEBT RELATED PARTIES

The following is a summary of the current portion - long-term debt - related parties as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020:~~2021:

SCHEDULE OF LONG-TERM DEBT RELATED PARTIES

									March 31, 2022			December 31, 2021
		September 30, 2021			December 31, 2020
Unsecured advances - CEO	(a)	$	2,244,508		$	1,718,277		(a)	$	3,048,034		$	2,908,562
Notes payable - Satinder Thiara	(b)		32,000			57,000		(b)		32,000			32,000
Promissory note – Kunaal Sikka	(c)		15,000			15,000
Promissory notes – Kunaal Sikka								(c)		265,000			265,000
Notes payable – Swarn Singh	(d)		45,000			45,000		(d)		195,000			195,000
Note payable - Chaudhary	(e)		8,650			8,122		(e)		8,860			8,828
Note payable - Director	(g)		400,000			-		(g)		400,000			400,000
Advances – former CEO of Mimo Technologies	(f)		122,808			-
Advances –officers								(f)		83,673			83,073

			2,867,966			1,843,399
Long term debt current - related parties										4,032,567			3,892,463
Current portion of long-term debt related parties			(2,852,966	)		(1,843,399	)			(4,032,567	)		(3,892,463	)
Long-term debt – related parties		$	15,000		$	-			$	-		$	-

	(a)	This is an unsecured advance from the CEO originally entered into January 1, 2015. The note bears interest at 1515%% annually (~~1.25~~1.25%% monthly) and are due on demand.

	(b)	Notes payable to Satinder Thiara entered into May 25, 2016 ($22,000) which is due December 31, 2021, December 13, 2016 ($10,000) which is due December 31, 2021, and May 1, 2018 ($25,000) which matured December 31, 2019 at interest rate of 1515%% annually (~~1.25~~1.25%% monthly). These are unsecured loans. The May 1, 2018 note is in default as of December 31, 2019. As a result the interest rate was changed to 2121%% annually (~~1.75~~1.75%% monthly). The May 1, 2018 note that matured December 31, 2019 was converted along with $12,392 in accrued interest into ~~43,990~~5,499 shares of common stock on March 5, 2021.

	(c)	Unsecured promissory note from Kunaal Sikka, the CEO’s son, dated September 13, 2018, in the amount of $15,000, maturing on December 31, 2019, and accruing interest at an annual rate of 1212%%. The note was in default as of December 31, 2019 through June 25, 2021 when the note was extended until December 31, 2022. As a result the interest rate was changed to 1818%% annually (~~1.50~~1.50%% monthly) through June 25, 2021 and then changed to 6% annually.

	Unsecured promissory note from Kunaal Sikka, the CEO’s son, dated December 15, 2021, in the amount of $250,000, maturing on December 31, 2022, and accruing interest at an annual rate of 15%.

(d)	Note payable to Swarn Singh, father-in-law of the CEO, entered into January 3, 2017 ($25,000) and February 1, 2017 ($20,000) at interest rate of 1515%% annually (~~1.25~~1.25%% monthly). These are unsecured notes. Both notes were due December 31, ~~2019.~~2019. The notes are in default as of December 31, 2019. As a result the interest rate was changed to 2121%% annually (~~1.75~~1.75%% monthly).

	Unsecured promissory note to Swarn Singh, father-in-law of the CEO, dated December 15, 2021, in the amount of $150,000, maturing on December 31, 2022, and accruing interest at an annual rate of 15%.

(e)	Note payable to Sushil Chaudhary dated April 27, 2020 in the amount of 1,100,000 INR (approximately $14,500 US$) due on demand at 1313% % per annum. This amount was offset by an amount due from the company that Sushil Chaudhary owns in the amount of $~~8,179~~8,860.

	(f)	Note payable to ~~Lathika Regunathan~~officer dated June 18, 2020 in the amount of 7,650,000 INR (approximately $1$~~00,000~~100,000 US$) interest free and due on ~~demand.~~demand with a balance of $83,673 as of March 31, 2022.

	(g)	Note payable to a director dated June 15, 2021 that ~~matures~~ matured December 12, 2021 in the amount of $400,000. The note does not bear interest however the director received two tranches of ~~150,000~~18,750 shares each for lending this amount. If the note is repaid by the maturity date, one of the two tranches of ~~150,000~~18,750 shares will be returned. The Company and the director extended the maturity date of this note to June 14, 2022.

Interest expense on these notes for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ are $~~264,906~~130,536 and $~~165,218~~65,438, respectively.

NOTE ~~12:~~10: LONG-TERM DEBT

The following is a summary of the long-term debt as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020:~~2021. Any long-term debt that were repaid or converted in 2021, are not listed, and details of which can be found in our Form 10-K filed March 31, 2022:

SCHEDULE OF LONG-TERM DEBT

		September 30, 2021			December 31, 2020				March 31, 2022			December 31, 2021
Other debt – in default	(a)	$	6,000		$	6,000		(a)	$	6,000		$	6,000
Yukti Securities Private Limited	(b)		-			4,547
Noor Qazi	(c)		-			-
Auto loan – ICICI Bank	(d)		13,009			18,539		(d)		9,089			11,062
Baxter Credit Union	(e)		99,975			99,911		(e)		99,975			99,975
UGECL	(f)		53,729			54,563		(f)		45,485			49,776
USA Bank PPP	(g)		-			10,057
Sixth Street Lending								(b)		93,680			-
Loan Builder	(h)		35,616			-		(g)		106,687			22,321
Loan Builder #2								(g)		66,587			-
Satin			98,226			-		(c)		54,808			55,890
Union Bank								(h)		53,006			-
SBA - Rohuma			10,000			-				10,000			10,000
Total		$	316,555		$	193,617			$	545,317		$	255,024
Current portion			(279,601	)		(133,761	)			(466,307	)		(218,972	)
Long-term debt, net of current portion		$	36,954		$	59,856			$	79,010		$	36,052

(a)	Note payable to an individual for $7,500, issued in May 2018 as consideration for services, due in June 2018, and bearing no interest. During the year ended December 31, 2018, the Company made a payment of $1,500 against the note and the Company has withheld payment of the remaining amount pending receipt of amounts due from the service provider.

(b)	~~Loan payable~~On February 11, 2022, the Company entered into a $115,640 promissory note with Sixth Street Lending LLC. The promissory note contains an original issue discount of $12,390. Interest on the promissory note is eleven percent per annum (11%) and the promissory note matures February 11, 2023. The interest rate increases to ~~Yukti Securities Private Limited~~22% if an event of default occurs. The Company is to make mandatory monthly payments of $12,836 per month in ten installments beginning March 30, 2022 Should an ~~unsecured loan which is due~~event of default occur, the holder of the promissory note will have the right to convert any portion of the outstanding principal and interest at the lowest price on ~~demand.~~the preceding trading day. The Company has reserved 180,688 shares of common stock with the transfer agent to account for any potential conversions.

(c)	Unsecured ~~loan~~amount due from ~~Noor Qazi, individual, is due on demand. Was repaid in December 2020.~~a customer.

(d)	Loan payable with ICICI Bank, secured by the vehicle the loan was taken for. Payments are monthly at $~~752~~,$752, through maturity in May 2023. Of the amount outstanding, the following represents the maturity: Current ~~(2021-2022)~~(2022) $~~7,551~~4,877; ~~(2022-2023)~~long-term (2023) $~~5,458~~6,186.

(e)	Revolving loan in the amount of $100,000 at 4%4% interest per annum due December 30, 2020. The loan was renegotiated for a balance of $~~99,911~~99,975 with similar terms at 4%4% interest per annum and is guaranteed by the CEO of the Company.

(f)	COVID line of credit from UGECL up to 4,000,000 INR in India, term of 48 months, interest only at ~~7.5~~%7.5% annual rate for first 12 months, then 36 equal instalments through ~~maturity.~~maturity. Current ~~(2021)~~(2022) $~~22,233~~19,910; long-term ~~(2022-2024)~~(2023) $~~31,496~~19,910 and (2024) $9,956.

(g)	~~PPP loan from USA Bank, with interest accruing at~~ 1~~% per annum. Original amount of $34,697~~ ~~had $24,640~~ ~~forgiven in December 2020, with the remaining $10,057~~ ~~due in five years~~ In ~~February 2021,~~January 2022, the Company ~~was notified that the entire balance of the PPP loan has been forgiven.~~

~~(h)~~	borrowed $~~50,000~~ 125,000unsecured loan due in 52 weekly payments of $~~1,057~~2,805~~.94~~ inclusive of interest at approximately 1010%%. A portion of these proceeds were used to pay off the prior advance from Loanbuilder from 2021. In February 2022 the Company’s subsidiary Rohuma, borrowed $75,000 from Loanbuilder, both to be repaid in 52 weekly installments of $1,683.

Interest expense on these notes for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ are $~~5,550~~9,761 and $~~8,867~~1,000, respectively.

NOTE ~~13:~~11: CURRENT PORTION - CONVERTIBLE DEBT – RELATED AND UNRELATED PARTIES

~~The following is a summary of current portion -~~All convertible debt ~~- related~~was repaid or converted in 2021. These are not listed, and ~~unrelated parties as of September 30, 2021 and December~~details can be found in our Form 10-K filed March 31, ~~2020:~~2022.

~~SUMMARY OF CARRYING VALUE OF CONVERTIBLE DEBT~~

September 30,
2021 December 31,
2020
Face value of notes – related party (a) $ - $ 95,000

Face value of notes – unrelated parties (a) 68,077 98,077

Excess of the fair value of shares issuable over the face value of the convertible notes (a) 17,007 48,257

$ 85,084 $ 241,334

~~(a)~~

~~In connection with the reverse merger in July 2017, the Company and two stockholders, who had provided related party advances to the Company, agreed to exchange their related party advances for~~ 6~~% Convertible Promissory Notes that were originally due on~~ ~~January 15, 2018~~ ~~(the “Notes”) in the amount of $68,077. From August 2017 through November 2017, the Company issued additional notes to four different parties (two of which were related parties) in the principal amount of $100,000~~ ($~~70,000~~ to related parties). In January 2018, the holders of the Notes agreed to extend the maturity to April 30, 2018, and in April 2018, agreed to further extend the maturity of certain notes to June or July 2018. During the year ended December 31, 2018, the maturity of the notes were further extended to March 31, 2019 and then again to periods ranging from June 30, 2019 to December 31, 2019. ~~The Notes bear simple interest at~~ 6~~% unless the Company defaults, which increases the interest rate to~~ 10~~%. The Holders, at their option, can elect to convert the principal plus any accrued interest, into shares of the Company’s common stock at a conversion rate equal to eighty percent (80%)~~ ~~of the average closing share price as quoted on the OTC Markets for the five (~~5~~) trading days prior to the date of conversion. There are two notes that had a maturity date of June 30, 2019, with the remaining notes having a maturity date of~~ ~~December 31, 2019~~. These notes had not been extended and were in default until June 30, 2021, when the note holders agreed to extend the debt until October 31, 2021, with no other changes to the notes. The Company has classified these notes as current liabilities. The Company had accrued the default interest on the two notes from July 1, 2019 through March 4, 2021. On March 5, 2021, the Company converted $~~156,250~~ ~~in convertible notes which includes the excess of the fair value of shares issuable over the face value of the convertible notes along with $31,046~~ ~~in accrued interest into~~ ~~187,296~~ ~~shares of common stock.~~

~~During the year ended December 31, 2018, the Company received additional proceeds from a related party of $25,000~~ ~~(from Dharam V. Sikka, father of CEO) pursuant to a convertible note payable issued in May 2018, with the same interest rate and conversion terms as the Notes described above,~~ ~~initially maturing on December 31, 2018, which has been extended to March 31, 2019 and then again to December 31, 2019.~~ Because the Notes are convertible into a variable number of shares of common stock based on a fixed dollar amount, in accordance with ASC Topic 480-10-50-2, the notes are recorded at the fair value of the shares issuable upon conversion. The excess of the fair value of shares issuable over the face value of the Notes is recorded as a discount to the note to be amortized into interest expense over the term of the note.

~~The remaining notes and all accrued interest were paid in October 2021. As the notes were settled in cash, no additional conversion premium is due.~~

~~Interest expense on these notes for the nine months ended September 30, 2021 and 2020 are $7,215~~ ~~and $14,369, respectively.~~

~~The Company has calculated the stock-settled liability in accordance with ASC 835-30 which establishes the monetary value at settlement of these instruments at fair value.~~

NOTE ~~14:~~12: STOCKHOLDERS’ EQUITY (DEFICIT)

Series A Convertible Preferred Stock

On July 19, 2017, the Company approved the issuance of 50,000 shares of its Series A Convertible Preferred Stock to its CEO and, on August 1, 2017, the Company sold and issued the 50,000 shares of its Series A Convertible Preferred Stock to its CEO at a price of $0.20 per share for $10,000.

Each outstanding share of Series A Convertible Preferred Stock is convertible into the number of shares of the Company’s common stock (the “Common Stock”) determined by dividing the Stated Value by the Conversion Price as defined below, at the option of any Series A Convertible Preferred Stock shareholder in whole or in part, at any time commencing no earlier than six (6) months after the issuance date; provided that any conversion under this section must be made during the ten (10) day period immediately following the date on which the corporation files with the Securities and Exchange Commission any periodic report on form 10-Q, 10-K or the equivalent form; provided further that, any conversion under this Section IV: (a) shall be for a minimum Stated Value of $500 of Series A Convertible Preferred Stock.

The Conversion Price for each share of Series A Convertible Preferred Stock in effect on any Conversion Date shall be (i) eighty five percent (85%) of the average closing bid price of the Common Stock over the twenty (20) trading days immediately preceding the date of conversion, (ii) but no less than par value of the Common Stock. For purposes of determining the closing bid price on any day, reference shall be to the closing bid price for a share of Common Stock on such date on the OTC Markets, as reported on Bloomberg, L.P. (or similar organization or agency succeeding to its functions of reporting prices) (the “Per Share Market Value”).

On September 22, 2021, the CEO converted all 50,000 shares of Series A Convertible Preferred Stock at the conversion price of $~~0.9059~~7.2472 per share into ~~55,195~~6,899 common shares. As a result, as of ~~September 30,~~March 31, 2022 and December 31, 2021, there are 0 Series A Convertible Preferred shares issued and outstanding.

Common Stock

As of ~~September 30, 2021,~~March 31, 2022, the Company has ~~33,136,975~~4,173,008 shares issued and outstanding.

During the three months ended March 31, 2022, the Company did not issue any shares however 1,370 shares were added as a fractional adjustment when the reverse stock split occurred.

During the three months ended December 31, 2021, the Company (a) issued 50,730 common shares in conversion of a convertible note payable; and (b) had 21,250 common shares returned upon repayment of a convertible note.

During the three months ended September 30, 2021, the Company (a) issued ~~55,195~~6,899 common shares in conversion of 50,000 Series A Convertible Preferred Stock; (b) issued ~~451,205~~56,400 common shares in the exercise of ~~451,205~~56,400 warrants that were exercised for $45; and (c) issued ~~1,200,000~~150,000 common shares to the CEO as bonus compensation valued at $1,078,560.

During the three months ended June 30, 2021, the Company (a) issued ~~1,000~~125 shares of common stock for services valued at $1,750. In addition, the Company recognized $40,222 in stock-based compensation for restricted stock grants to an advisor that vest over a ~~three~~three-year~~-year~~ term. ~~NaN~~None of the ~~350,000~~43,750 shares to this advisor have been issued as of ~~June 30,~~December 31, 2021.; (b) issued ~~300,000~~37,500 shares of common stock to a director for agreeing to lend the Company $400,000 in a promissory ~~note~~.note. ~~150,000~~18,750 of these shares may be returned to the Company should the note be repaid by the maturity date of December 12, 2021. These ~~300,000~~37,500 shares have a value of $447,000; and (c) issued ~~35,000~~4,375 shares for $38,500.

During the three months ended March 31, 2021, the Company (a) issued ~~570,000~~71,250 shares of common stock for $456,000; (b) ~~264,338~~33,042 shares of common stock for the conversion for $181,250 in convertible notes and $43,438 in accrued interest; (c) ~~400,000~~50,000 shares of common stock for services rendered in the amount of $436,385; and (d) ~~2,562,277~~320,285 shares (of a total of ~~4,292,220~~536,528 to be issued) for the purchase of Rohuma.

~~There were~~ 0 ~~shares issued in the nine months ended September 30, 2020.~~

On April 12, 2018, the Company amended its Articles of Incorporation to forward split all outstanding shares of common stock such that all issued and outstanding shares of Common Stock shall be automatically combined and reclassified such that each share of Pre-Forward Split Stock shall be combined and reclassified into four shares of Common Stock. The number of shares for all periods presented has been retroactively restated to reflect the forward split.

Common Stock Warrants

The following schedule summarizes the changes in the Company’s common stock warrants:

SCHEDULE OF COMMON STOCK WARRANTS

						Weighted				Weighted							Weighted				Weighted
	Warrants Outstanding					Average				Average		Warrants Outstanding					Average				Average
	Number			Exercise		Remaining		Aggregate		Exercise		Number			Exercise		Remaining		Aggregate		Exercise
	Of			Price		Contractual		Intrinsic		Price		Of			Price		Contractual		Intrinsic		Price
	Shares			Per Share		Life		Value		Per Share		Shares			Per Share		Life		Value		Per Share

Balance at December 31, 2019		1,329,272		$	0.001		4.87 years	$	-	$	0.001
Balance at December 31, 2021													437,691		$	0.008 - $16.00		2.69 years	$	1,185,798	$	5.36

Warrants granted		-		$	-		-				$		-		$	-		-			$
Warrants exercised		-		$	-		-				$		-		$	-		-			$
Warrants expired/cancelled		-		$	-		-				$		-		$	-		-			$

Balance at March 31, 2022													437,691		$	0.008 - $16.00		2.45 years	$	1,151,551	$	5.38
Exercisable at March 31, 2022													412,050		$	0.008 - $16.00		2.49 years	$	1,022,268	$	5.71

Balance at December 31, 2020		1,329,272		$	0.001		3.87 years	$	2,125,506	$	0.001		166,159		$	0.008		3.87 years	$	2,125,506	$	0.008

Warrants granted		2,506,315			$ 0.001-2.00		-				$		380,323		$	0.008-16.00		-			$
Warrants exercised/exchanged		(451,205	)	$	-		-				$		(56,400	)	$	-		-			$
Warrants expired/cancelled		(419,127	)	$	-		-				$		(52,391	)	$	-		-			$

Balance at September 30, 2021		2,965,255			$ 0.001-2.00		2.89 years	$	1,640,226	$	0.63
Balance at December 31, 2021													437,691		$	0.008-16.00		2.69 years	$	1,185,798	$	5.36

Exercisable at September 30, 2021		2,418,239			$ 0.001-2.00		3.01 years	$	1,149,115	$	0.77
Exercisable at December 31, 2021													369,189		$	0.008-16.00		2.79 years	$	830,785	$	6.40

Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each option/warrant is estimated using the Black-Scholes valuation model. The following assumptions were used for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 and year ended December 31, ~~2020:~~2021:

SCHEDULE OF EACH OPTION WARRANT ESTIMATED USING THE BLACK-SCHOLES VALUATION MODEL

	~~Nine~~ Three Months Ended ~~September 30, 2021~~ March 31, 2022			Year Ended December 31, ~~2020~~2021
Expected term		~~3 years~~-			-3 years
Expected volatility		~~170~~-~~240~~	%		164-269%
Expected dividend yield		-			-
Risk-free interest rate		~~2.00~~-	%		-2.00	%

On May 16, 2019, the Company entered into a Share Exchange Agreement with Mann-India Technologies Private Ltd., an Indian Corporation. Pursuant to the Share Exchange Agreement, the Company acquired ~~100~~100%% of the shares of TRAQ Pvt Ltd. and assumed certain net liabilities in exchange for warrants exercisable over a ~~five~~five-years~~-years~~ to purchase ~~1,329,272~~166,159 shares of common stock of the Company valued at $268. The warrants will be exercisable as follows: (i) ~~100,771~~12,596 warrants immediately upon closing; (ii) ~~859,951~~107,494 warrants exercisable one-year after the date of closing, which was extended to March 31, 2021; and (iii) ~~368,550~~46,069 warrants exercisable two-years after the date of closing. The value of the transaction totaled $268 and is reflected as an increase to additional paid in capital. A total of ~~419,127~~52,391 of these warrants were cancelled effective May 16, 2021 as a result of these criteria not being achieved.

On February 16, 2021, the Company entered into several stock purchase agreements for the issuance of ~~570,000~~71,250 shares for cash in the amount of $456,000 (value of $~~0.80~~6.40 per share). The individuals also received ~~285,000~~35,625 warrants that have a term of three years at an exercise price of $~~2.00~~16.00 per share.

On February 17, 2021, the Company entered into a Share Exchange Agreement with Mimo Technologies Private Ltd., and Indian corporation (“Mimo”) and its shareholders, whereby the Mimo shareholders agreed to exchange all of their respective shares in Mimo in exchange for warrants to purchase ~~1,367,539~~170,942 shares of the Company’s common stock. Of these warrants, ~~820,524~~102,565 were earned at the date of acquisition, with the remaining ~~547,015~~68,377 expected to be earned over the next two years from grant based on revenue goals for Mimo. The warrants have a term of three years and an exercise price of $~~0.001~~0.008 and value in the amount of $1,640,447, of which $984,268 is reflected in additional paid in capital, with the remaining $656,179 reflected as contingent consideration. The Company as of March 31, 2022, determined that the criteria for vesting of the second tranche of warrants was satisfied and reclassified $410,112 from contingent consideration to additional paid in capital. In addition to the issuance of the warrants, TRAQ Pvt Ltd, wrote off $258,736 in amounts due from a note receivable, $123,778 in accounts receivable and $40,354 in a debenture from Mimo. In addition, a cash payment was made to one of the minority shareholders of Mimo in the amount of $22,338. The Company acquired over 9999%% of Mimo with the remaining percentage of less than 11%% reflected as a non-controlling interest.

On March 8, 2021, the Company entered into a consulting agreement to provide advisory services regarding strategic planning. The agreement is for a term of one-year. The agreement calls for payments to be paid monthly in the amount of $3,000 and the issuance of stock at the commencement of the agreement for ~~25,000~~3,125 shares, and a ~~three~~three-year~~-year~~ warrant for ~~100,000~~12,500 warrants with a strike price of $~~2.00~~16.00 per share that vest March 7, 2022.

On February 12, 2021, in connection with the Platinum Point Capital note, the Company granted ~~200,000~~25,000 warrants with a term of three years,, at an exercise price of $~~2.00~~16.00. The warrants have price protections, and as a result of the granting of warrants in the Evergreen Capital Management transaction on September 17, 2021, the exercise price was reduced to $~~1.45~~11.60.

On September 17, 2021, the Company granted ~~496,552~~62,069 warrants with a term of five years,, at an exercise price of $~~1.45~~11.60 to Evergreen Capital Management LLC with the $720,000 convertible promissory note. As a commission on this note, the Company granted to the investment bankers, ~~39,724~~4,966 warrants with the same terms as the Evergreen Capital Management warrants. The Company recognized a commission expense for $37,977 on these warrants. These issuances triggered a price protection clause in the Platinum Point Capital warrants and reduced their exercise price to $~~1.45~~11.60.

On October 8, 2021, the Company granted 41,379 warrants with a term of five years, at an exercise price of $11.60 to Evergreen Capital Management LLC with the $480,000 convertible promissory note. As a commission on this note, the Company granted to the investment bankers, 3,310 warrants with the same terms as the Evergreen Capital Management warrants. The Company recognized a commission expense for $9,695 on these warrants. These issuances triggered a price protection clause in the Platinum Point Capital warrants and reduced their exercise price to $11.60.

On October 15, 2021, the Company granted 20,690 warrants with a term of five years, at an exercise price of $11.60 to Evergreen Capital Management LLC with the $240,000 convertible promissory note. As a commission on this note, the Company granted to the investment bankers, 1,655 warrants with the same terms as the Evergreen Capital Management warrants. The Company recognized a commission expense for $5,756 on these warrants. These issuances triggered a price protection clause in the Platinum Point Capital warrants and reduced their exercise price to $11.60.

Options

On November 23, 2020, the Board of Directors of the Company approved the 2020 Equity Incentive Plan.

On October 19, 2020, the Company granted ~~3,930,000~~491,250 stock options to board members, advisory board members, employees and consultants. The options have a 10-year term, and are both service based grants, as well as performance-based grants. ~~Stock-based~~Through March 31, 2022 a total of 342,879 options have vested. Stock based compensation expense for the ~~year ended December 31, 2020 was $104,638, and the unrecognized stock-based compensation for these grants as of December 31, 2020 is $660,372. Of the~~ ~~3,930,000~~ ~~options granted, only~~ ~~312,500~~ ~~have been vested through December 31, 2020.~~

~~In the nine~~three months ended ~~September 30,~~March 31, 2022 and 2021 ~~an additional~~ were $~~1,791,020~~18,223 ~~options vested for a total vested amount~~and $108,341, respectively. As of March 31, 2022, there remains $~~2,103,520~~230,626 ~~at September 30, 2021.~~

~~In the nine months ended September 30, 2021, the Company recognized $388,498~~ ~~in stock-based~~of unrecognized stock based compensation.

The following represents a summary of options:

SUMMARY OF STOCK OPTION

	Nine Months Ended September 30, 2021				Year Ended December 31, 2020				Three Months Ended March 31, 2022				Year Ended December 31, 2021
	Number		Weighted Average Exercise Price		Number		Weighted Average Exercise Price		Number		Weighted Average Exercise Price		Number		Weighted Average Exercise Price
Beginning balance		3,930,000	$	0.0052		-	$	-		491,250	$	0.0416		491,250	$	0.0416

Granted		-		-		3,930,000		0.0052		-		-		-		-
Exercised		-		-		-		-		-		-		-		-
Forfeited		-		-		-		-		-		-		-		-
Expired		-		-		-		-		-		-		-		-
Ending balance		3,930,000	$	0.0052		3,930,000	$	0.0052		491,250	$	0.0416		491,250	$	0.0416
Intrinsic value of options	$	3,511,759			$	6,267,475			$	2,478,247			$	2,533,975

Weighted Average Remaining Contractual Life (Years)		9.06				9.81				8.56				8.81

NOTE ~~15:~~13: OPERATING LEASE

The Company has adopted ASU No. 2016-02, Leases (Topic 842), as of January 1, 2019 and will account for their lease in terms of the right of use assets and offsetting lease liability obligations for this new lease under this pronouncement. In accordance with ASC 842 - Leases, effective January 1, 2019, the Company up until May 16, 2019 did not have any long-term lease commitments. On May 17, 2019 with the Company’s acquisition of TRAQ Pvt Ltd., recorded a lease right of use asset and a lease liability at present value of $576,566 and $585,207, respectively. The Company is recording this amount at present value, in accordance with the standard, using an incremental borrowing rate by adjusting the benchmark reference rates with appropriate financing spreads and lease specific adjustments for the effects of collateral. The right of use asset will be composed of the sum of all lease payments plus any initial direct cost and will be straight line amortized over the life of the expected lease term. For the expected term of the lease the Company will use the term of the nine-year lease. This lease will be treated as an operating lease under the ~~new~~ standard.

The Company has chosen to implement this standard using the modified retrospective model approach with a cumulative-effect adjustment, which does not require the Company to adjust the comparative periods presented when transitioning to the new guidance on January 1, 2019. The Company has also elected to utilize the transition related practical expedients permitted by the new standard. The modified retrospective approach provides a method for recording existing leases at adoption and in comparative periods that approximates the results of a modified retrospective approach.

~~The~~In February 2022, the Company entered into a new lease with a right of use asset ~~of in the original amount~~and lease liability value of $~~592,909~~331,154 ~~was to be amortized on a straight-line basis over the term of the lease.~~

During the year ended December 31, 2020, the Company renegotiated their leases with the landlord for TRAQ Pvt Ltd. As a result of this renegotiation, the Company vacated one of their two leases, and as a result, impaired $~~333,571~~ ~~in right-of-use asset and $349,428~~ ~~in lease liability.~~.

As of ~~September 30, 2021,~~March 31, 2022, the value of the unamortized lease right of use asset is $~~115,492~~327,436. As of ~~September 30, 2021,~~March 31, 2022, the Company’s lease liability was $~~126,162~~330,900.

SCHEDULE OF REMAINING LEASE OBLIGATION


Remaining Lease Obligation by calendar year (undiscounted cash flows)
2022	$	12,526	$	42,541
2023		28,593		56,721
2024		28,593		56,721
2025		29,487		62,677
2026		32,882		63,528
2027		53,726
Thereafter				270,099
Total lease payments		185,807		552,288
Less: Imputed interest		59,645		221,388
Present value of lease liabilities	$	126,162	$	330,900

For the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ the Company recorded rent expense of $~~23,521~~1,807 and $~~95,151~~6,285.

NOTE ~~16:~~14: DERIVATIVE LIABILITIES

On January 19, 2021, the Company entered into a 12% Convertible Promissory Note with GS Capital Partners, LLC (the “GS Note”) in the amount of $125,000. The GS Note has a maturity of ~~one~~one-year~~-year~~ and is to be repaid commencing on the fifth month anniversary and every month thereafter in the amount of $20,000. The conversion price of the GS Note is 66% of the lowest closing stock price over the previous 20 trading days. There are certain price protections for GS Capital Partners, LLC under the terms of the GS Note, which make the conversion option a derivative liability. The Company recorded an original issue discount in the amount of $10,000 and $5,000 was paid out of the proceeds for legal fees. In accordance with the terms of the GS Note, the Company issued ~~26,000~~3,250 shares of common stock as a commitment fee and issued ~~170,000~~21,250 shares of common stock that are returnable upon achievement of the terms of the GS ~~Note.~~Note (which were returned upon repayment of this note in October 2021). The note was repaid in October 2021.

On February 12, 2021, the Company entered into a 10% Convertible Promissory Note with Platinum Point Capital, LLC (the “Platinum Note”). The Platinum Note has a maturity of ~~one~~one-year~~-year.~~. The conversion price of the Platinum Note is the greater of (a) ~~$0.01~~$0.08 or (b) 70% of the lowest closing stock price over the previous 15 trading days. There are certain price protections for Platinum Point Capital, LLC under the terms of the Platinum Note, which make the conversion option a derivative liability. The Company granted ~~200,000~~25,000 warrants that have a term of ~~three-years~~three-years and an exercise price of $~~2.00~~16.00 per share with the Platinum Note. The warrants granted with the Platinum Note also contain certain price protections, that make the value of the warrants a derivative liability. The Company and Platinum Point Capital, LLC entered into an amendment to exclude the Mimo warrants granted on February 17, 2021 from the price protections. In accordance with the terms of the Platinum Note, the Company issued ~~60,000~~7,500 shares as a commitment fee. The note was repaid/converted in 2021.

On September 17, 2021, the Company entered into a 20% OID Senior Secured Promissory Note with Evergreen Capital Management LLC (the “Evergreen 1”) in the amount of $720,000 (includes $120,000 of Original Issue Discount). The Evergreen 1 has a maturity of nine months to June 17, 2022. The Evergreen 1 accrues interest at a rate of 10% per year. The conversion price of Evergreen 1 is the lower of (a) ~~$1.45~~$11.60 (“Fixed Conversion Price”) or (b) upon the occurrence and during the continuation of any Event of Default, if lower, 90% of the average of the two lowest VWAPs for the five ~~(5)~~(5) consecutive Trading Day that is immediately prior to the applicable Conversion Date (the “Default Conversion Price”). There are certain price protections for Evergreen Capital Management LLC under the terms of Evergreen 1, which make the conversion option a derivative liability. The Company granted ~~496,552~~62,069 warrants that have a term of ~~five~~five-years~~-years~~ and an exercise price of $~~1.45~~11.60 per share with Evergreen 1. The warrants granted with Evergreen 1 also contain certain price protections, that make the value of the warrants a derivative liability.

Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each warrant is estimated using the Black-Scholes valuation model. The following assumptions were used in ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020:~~2021:

SCHEDULE OF VALUATION ASSUMPTIONS

	Three Months Ended March 31, 2022			Year Ended December 31, 2021

Expected term		1 year			1 year
Expected volatility		260	%		164 – 269%
Expected dividend yield		-			-
Risk-free interest rate		1.65	%		0.15	%

	Nine Months Ended September 30, 2021			Year Ended December 31, 2020

~~Expected term~~		1 ~~year~~			-
~~Expected volatility~~		~~164~~ - ~~240~~	%		-
~~Expected dividend yield~~		-			-
~~Risk-free interest rate~~		~~0.15~~	%		-

The Company’s derivative liabilities are as follows:

SCHEDULE OF DERIVATIVE LIABILITIES

September 30,
2021 December 31,
2020
Fair value of the GS Capital conversion option $ 186,818 $ -
Fair value of the Platinum Point conversion option 902,857 -
Fair value of the Platinum Point warrants (200,000 warrants) 134,000 -
Fair value of the Evergreen 1 conversion option 332,690 -
Fair value of the Evergreen 1 warrants (496,552 warrants 332,690 -
$ 1,889,055 $ -

	March 31, 2022			December 31, 2021

Fair value of the Platinum Point warrants (25,000 warrants)	$	90,500		$	90,000
Fair value of the Evergreen 1 conversion option		224,690			223,448
Fair value of the Evergreen 1 warrants (62,069 warrants)		302,276	��		307,862
Fair value of the Evergreen 2 conversion option		149,793			148,965
Fair value of the Evergreen 2 warrants (41,379 warrants)		201,517			205,241
Fair value of the Evergreen 3 conversion option		74,896			74,483
Fair value of the Evergreen 3 warrants (20,690 warrants)		100,758			102,621
Derivative liability	$	1,144,430		$	1,152,620

Activity related to the derivative liabilities for the ~~period~~three months ended ~~September 30, 2021~~March 31, 2022 is as follows:

SCHEDULE OF ACTIVITY RELATED TO DERIVATIVE LIABILITIES

Beginning balance as of December 31, 2020	$	-

Beginning balance as of December 31, 2021			$	1,152,620
Issuances of warrants/conversion option – derivative liabilities		1,038,834		-
Extinguishment of derivative liability upon conversion/repayment of convertible notes				(-	)
Change in fair value of warrants/conversion option - derivative liabilities		850,221		(8,190	)
Ending balance as of September 30, 2021	$	1,889,055
Ending balance as of March 31, 2022			$	1,144,430

There were no derivative liabilities prior to January 2021.

nOTE ~~17:~~15: CONCENTRATIONS

During the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ the Company had two major customers comprising 5753%% of revenues and two major customers comprising 8589%% of revenues, respectively. A major customer is defined as a customer that represents 10% or greater of total revenues. There was 7179%% and 8593%% of accounts receivable representing ~~two~~four and ~~two~~five customers as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

The Company does not believe that the risk associated with these customers or vendors will have an adverse effect on the business.

nOTE ~~18:~~16: CONTINGENCY

During the year ended December 31, 2018, the Company charged an independent truck driver approximately $190,000 pursuant to its agreement with the driver, which entitled the Company to fees equal to $800 per day for the driver’s failure to return a trailer owned by the Company with the period prescribed by the agreement. The Company has not recognized this as income due to uncertainty of payment and will record as other income during the period in which amounts are collected.

nOTE ~~19:~~17: COMMITMENTS AND CONTINGENCIES

Commitments and contingencies in respect of TRAQ Pvt Ltd;

(i)

TRAQ Pvt Ltd had applied for compounding of the TDS liability for the assessment year 2014-2015 and 2015-2016 in accordance with Indian Income Tax Laws. However, 0no amount payable for tax and penalty was confirmed by the Income Tax Department. Further, TRAQ Pvt Ltd has also defaulted for TDS deducted but not paid in time during assessment years 2016-2017 to 2020-2021. Accordingly, there may be a contingent liability in respect of TDS regarding compounding charges, interest, and penalty which is not quantifiable at present, hence not provided in the Consolidated Financial Statements.


	(ii)	TRAQ Pvt Ltd has outstanding Gratuity for $~~23,971~~9,462 as of December 31, ~~2020,~~2021, towards ex-employees of TRAQ Pvt Ltd; therefore, TRAQ Pvt Ltd is liable for penalty under The Gratuity Act under the Indian Laws and other relevant laws. Since the amount of penalty for default in payment of gratuity is not ascertainable, therefore it is not provided for in the Consolidated Financial Statements. ~~Gratuity of $13,816~~ ~~has been paid in the month of January 2021.~~


	(iii)	There are numerous interpretative issues relating to the Indian Supreme Court (SC) judgment dated February 28, 2019, on Provident Fund (PF) on the inclusion of allowances for the purpose of PF contribution as well as its applicability. The impact has been recorded in the nine months ended September 30, 2021 Consolidated Financial Statements.

	~~(iv)~~	TRAQ Pvt Ltd has delayed in complying with provisions related to Foreign Direct Investment and Transfer of Shares to Non-resident as per the Master Circulars and notification issued by Reserve Bank of India, therefore, is liable for imposition of penalty. Since the amount of the penalty for the same is not ascertainable, no effect was given in the Consolidated Financial Statements.

	~~(v)~~(iv)	Prior to its acquisition in May 2019, TRAQ Pvt Ltd, had provided a guarantee in favor of State Bank of India for $165,813 on March 22, 2014, for Mira Green Tech Private Limited. The State Bank of India is in process of satisfying whether there is any obligation due by TRAQ Pvt Ltd at this time.

(v)	TRAQ Pvt Ltd has contingent liability of $246,398 towards income tax department for Assessment year 2018-19, However an appeal is already filed against such demand in the income tax department and proceeding is still pending; Accordingly, there may be a contingent liability in respect of Income Tax of such demand amount, interest, and penalty which is not quantifiable at present, hence not provided in the Consolidated Financial Statements.

Commitments and contingencies in respect of Mimo Technologies Pvt Ltd;

(i)	During the year, Mimo Technologies Pvt. Ltd. has received funds from TraQiQ Inc, a US company amounting to approximately $478,674 which is outstanding as at March 31, 2022, RBI regulates the foreign funds and based on the purpose of the transactions, compliances as per the RBI regulation needs to be complied with, Mimo was delayed in their reporting with the Master Circulars and received notification by the Reserve Bank of India, and therefore, is liable for the imposition of penalties. Since the amount of the penalty for the same is not ascertainable, no effect was given in the Consolidated Financial Statements.

(ii)	Mimo Technologies Pvt Ltd has delayed in complying with provisions related to Foreign Direct Investment and Transfer of Shares to Non-resident as per the Master Circulars and notification issued by Reserve Bank of India, therefore, is liable for imposition of penalty. Since the amount of the penalty for the same is not ascertainable, no effect was given in the Consolidated Financial Statements.

~~nOTE 20:~~ ~~SUBSEQUENT EVENTS~~

~~On October 6, 2021, Platinum converted $75,000~~ ~~of their outstanding balance into~~ ~~405,844~~ ~~shares of common stock, and then on October 8, 2021, the Company paid the remaining principal balance of $325,000~~ ~~along with the accrued interest payable of $25,644~~ ~~and a prepayment penalty of $70,129, for a total of $420,773~~.

~~On October 8, 2021, the Company entered into a~~ 20~~% OID Senior Secured Promissory Note in the amount of $480,000~~ ~~(includes $80,000~~ ~~of Original Issue Discount) with Evergreen Capital Management LLC (the “Evergreen 2”). The Evergreen 2 has a maturity of nine months to July 8, 2022. The Evergreen 2 accrues interest at a rate of~~ 10~~% per year. The conversion price of Evergreen 2 is the lower of (a) $1.45~~ ~~(“Fixed Conversion Price”) or (b) upon the occurrence and during the continuation of any Event of Default, if lower,~~ 90~~% of the average of the two lowest VWAPs for the five (~~5) consecutive Trading Day that is immediately prior to the applicable Conversion Date (the “Default Conversion Price”). There are certain price protections for Evergreen Capital Management LLC under the terms of Evergreen 2, which make the conversion option a derivative liability. The Company granted ~~331,034~~ ~~warrants that have a term of~~ ~~five-years~~ ~~and an exercise price of $1.45~~ ~~per share with Evergreen 2. The warrants granted with Evergreen 2 also contain certain price protections, that make the value of the warrants a derivative liability.~~

~~As a commission on this note, the Company granted to the investment bankers,~~ ~~26,483~~ ~~warrants with the same terms as the Evergreen Capital Management warrants. The Company recognized a commission expense for $9,695~~ ~~on these warrants.~~

~~On October 15, 2021, the Company entered into a~~ 20~~% OID Senior Secured Promissory Note in the amount of $240,000~~ ~~(includes $40,000~~ ~~of Original Issue Discount) with Evergreen Capital Management LLC (the “Evergreen 3”). The Evergreen 3 has a maturity of nine months to July 15, 2022. The Evergreen 3 accrues interest at a rate of~~ 10~~% per year. The conversion price of Evergreen 3 is the lower of (a) $1.45~~ ~~(“Fixed Conversion Price”) or (b) upon the occurrence and during the continuation of any Event of Default, if lower,~~ 90~~% of the average of the two lowest VWAPs for the five (~~5) consecutive Trading Day that is immediately prior to the applicable Conversion Date (the “Default Conversion Price”). There are certain price protections for Evergreen Capital Management LLC under the terms of Evergreen 3, which make the conversion option a derivative liability. The Company granted ~~165,517~~ ~~warrants that have a term of~~ ~~five-years~~ ~~and an exercise price of $1.45~~ ~~per share with Evergreen 3. The warrants granted with Evergreen 3 also contain certain price protections, that make the value of the warrants a derivative liability.~~

~~As a commission on this note, the Company granted to the investment bankers,~~ ~~13,241~~ ~~warrants with the same terms as the Evergreen Capital Management warrants. The Company recognized a commission expense for $5,756~~ ~~on these warrants.~~

~~On October 18, 2021, the Company made their final payment to GS Capital for their convertible note. With that final payment made, GS Capital returned~~ ~~170,000~~ ~~shares of common stock they held as collateral for the convertible note and the share were placed back in treasury.~~

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The discussion and analysis of our financial condition and results of operations are based on our condensed consolidated financial statements, which we have prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported revenues and expenses during the reporting periods. On an ongoing basis, we evaluate estimates and judgments, including those described in greater detail below. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

As used in this “Management’s Discussion and Analysis of Financial Condition and Results of Operation,” except where the context otherwise requires, the term “we,” “us,” “our,” or “the Company,” refers to the business of TraqIQ Inc.

The following presentation of management’s discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements, the accompanying notes thereto and other financial information appearing elsewhere in this quarterly report on Form 10-Q. This section and other parts of this quarterly report on Form 10-Q contain forward-looking statements that involve risks and uncertainties. See “Forward-Looking Statements.”

Overview

Overview of the Company

	●	Last Mile delivery: TraQSuite’s Last-Mile software module enables a business to manage thousands of task workers across multiple geographies to deliver products and services to the users. The software platform, operating through mobile apps, allows for data sharing, delivery validation, geo-tagging and know-your-customer (KYC) requirements and can even measure customer satisfaction.

	●	Transact: TraQSuite enables task workers to facilitate transactions by meeting the end customers. They can collect payments via credit cards, smart-phone swipes, SMS messages or cash. Both banked and unbanked users can buy products and services and pay with their mobile devices.

	●	Target: TraQSuite enables customer transactions to be rewarded with loyalty credits, tokens or points that can be redeemed by the customer for free products, discounts and benefits. The software analyzes these transactions and purchase behaviors by using leading AI models and can deliver real time, automated and targeted offers and recommendations for additional purchases and customer retention.

TraQiQ Solutions, Inc.

Ci2i’s cloud solutions and analytics services comprise software development, program management, project management, and business analytics services.

TraQiQ Solutions Private Limited

On May 16, 2019, the Company entered into a Share Exchange Agreement with Mann-India Technologies Private Ltd., an Indian Corporation (“Mann”). On January 2, 2020, Mann changed its name to TraQiQ Solutions Private Limited (“TRAQ Pvt Ltd”). Pursuant to the Share Exchange Agreement with Mann, the Company acquired 100% of the shares of Mann and assumed certain net liabilities in exchange for warrants exercisable over a five-years to purchase ~~1,329,272~~166,159 shares of common stock of the Company valued at $268. The warrants will be exercisable as follows: (i) ~~100,771~~12,596 warrants immediately; (ii) ~~859,951~~107,494 warrants exercisable one-year after the date of closing, which was extended to March 31, 2021; and (iii) ~~368,550~~46,069 warrants exercisable two-years after the date of closing. This transaction is being recorded as a business combination under ASC 805. There were 56,400 of these warrants exercised during 2021 and 57,368 warrants remain outstanding as of March 31, 2022.

Mann-India Private limited was renamed to TraQiQ Solutions Private Limited shortly after acquisition by TraQiQ Inc.

TRAQ Pvt Ltd. has its own experienced team of software developers dedicated towards developing various kinds of customized software.

Rohuma, LLC

On January 22, 2021, the Company entered into a Share Exchange Agreement with Rohuma, LLC, a Delaware limited liability company (“Rohuma”) and its members, whereby the ~~Rohuna~~Rohuma members agreed to exchange all of their respective membership interests in Rohuma in exchange for ~~4,292,220~~536,528 shares of common stock, of which the first tranche of shares were issued on March 1, 2021 totaling ~~2,562,277~~320,285 shares, with the remaining value reflected as contingent consideration until the shares vest at which time they will be issued. The transaction was valued at $3,433,776 ($~~0.80~~6.40 per share). The Company as of March 31, 2022, determined that the second tranche of shares (134,132) met the criteria to be issued, and the value of $858,445 was reclassified from contingent consideration to obligation to issue common stock. Rohuma has an Indian affiliate that is owned 99% by Rohuma and 1% by its founding member. Rohuma controls this entity and the 1% ownership by the member is now less than 1% upon acquisition by the Company. This amount is reflected as a non-controlling interest.

Mimo Technologies Private Limited

On February 17, 2021, the Company entered into a Share Exchange Agreement with Mimo Technologies Private Ltd., and Indian corporation (“Mimo”) and its shareholders, whereby the Mimo shareholders agreed to exchange all of their respective shares in Mimo in exchange for warrants to purchase ~~1,367,539~~170,942 shares of the Company’s common stock. Of these warrants, ~~820,524~~102,565 were earned at the date of acquisition, with the remaining ~~547,015~~68,377 expected to be earned over the next two years from grant based on revenue goals for Mimo. The warrants have a term of three years and an exercise price of ~~$0.001~~$0.008 and value in the amount of $1,640,447, of which $984,268 is reflected in additional paid in capital, with the remaining $656,179 reflected as contingent consideration. The Company as of March 31, 2022, determined that the criteria for vesting of the second tranche of warrants was satisfied and reclassified $410,112 from contingent consideration to additional paid in capital. In addition to the issuance of the warrants, TRAQ Pvt Ltd, wrote off $258,736 in amounts due from a note receivable, $123,778 in accounts receivable and $40,354 in a debenture from Mimo. In addition, a cash payment was made to one of the minority shareholders of Mimo in the amount of $22,338. The Company acquired over 99% of Mimo with the remaining percentage of less than 1% reflected as a non-controlling interest.

Mimo offers a broad set of services. These offerings can be classified into three broad categories:

	●	Data collection and client verification (surveys, verification, on-boarding),

	●	Cash management & handling services, and

	●	Distribution and demand generation (order fulfilment, demand generation, delivery services for e-commerce companies)

Mimo works with microfinance institutions to collect cash, such as loan payments, convert cash to digital means like debit cards, and conduct data collection and surveys.

Mimo is currently in the planning stages to provide food, alcohol & medicine deliveries as well.

Going Concern

The Company has an accumulated deficit of ~~$7,784,336~~$9,876,116 as of March 31, 2022 and a working capital deficit of ~~$8,546,369,~~$10,167,780, as of ~~September 30, 2021,~~March 31, 2022, and a working capital deficit of ~~$2,851,721~~$9,844,269 as of December 31, ~~2020.~~2021. As a result of these factors, management has determined that there is substantial doubt about the Company ability to continue as a going concern.

The Company has recently filed a Registration Statement on Form S-1 and engaged an investment banker to undertake an offering of approximately $15,000,000. The investment banker has assisted the Company in raising a bridge round of debt financing in the amount of $1,200,000, which is net of original issue discount of ~~$240,000 through October 15, 2021.~~$240,000. Management intends to use the funds received from the capital raise to grow both organically and inorganically by pursuing potential synergistic companies as well as invest in technology and human capital for their existing operations. The Company’s ability to close on this potential offering to raise additional capital is unknown. Obtaining additional financing, including approximately $550,000 in the three months ended March 31, 2022, and the successful development of the Company’s contemplated plan of operations, ultimately, to profitable operations, are necessary for the Company to continue operations.

The Company raised $1,115,000 in the nine months ended September 30, 2021 from the issuance of convertible notes, $1,449,394 from related parties, $50,331 from long-term debt and raised $494,500 through sales of common stock and warrants. The Company repaid $80,000 in convertible notes, $153,706 of long-term debt and $781,326 of related party notes. In addition, the Company acquired two businesses that enhance the Company’s services in both India and the United States.

Results of Operations

Results of Operations and Financial Condition for the ~~Nine~~Three Months Ended ~~September 30, 2021~~March 31, 2022 as Compared to the ~~Nine~~Three Months Ended ~~September 30, 2020~~March 31, 2021

Revenues

For the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 compared to ~~September 30, 2020,~~March 31, 2021, the Company’s revenues ~~increased~~decreased by ~~$1,369,910,~~$34,986, or ~~185%~~9%, from ~~$739,177~~$382,386 in ~~2020~~2021 to ~~$2,109,087~~$347,400 in ~~2021.~~2022. The ~~increase~~decrease is the result of the ~~acquisitions~~reduction of contracts in Rohuma and Mimo as well as improvement in revenues as TRAQ Pvt Ltd. has started to emerge from the effects of COVID which contributed higher revenue and higher profitability and the addition of new customers in TRAQ Solutions, Inc.Mimo.

Cost of Revenues

For the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 compared to ~~September 30, 2020,~~March 31, 2021, the Company’s cost of revenues increased by ~~$1,264,850,~~$148,297, or ~~316%~~66%, from ~~$399,720~~$223,832 in ~~2020~~2021 to ~~$1,664,570~~$372,129 in ~~2021.~~2022. The increase is the result of increased direct costs on some of the ~~acquisitions of~~Mimo and Rohuma ~~and Mimo as well as added direct labor for TRAQ Pvt Ltd. The company experienced~~contracts which lead to lower profitability in these new ~~engagements, as they ramped up personnel post-COVID, which they hope to normalize in the next quarter or two.~~engagements.

Operating Expenses

For the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 compared to ~~September 30, 2020,~~March 31, 2021, the Company’s salary and salary related costs increased by ~~$312,239,~~$15,267, or ~~173%~~10%, from ~~$180,123~~$148,431 in ~~2020~~2021 to ~~$492,362~~$163,698 in 2022 due to 2022 having a full quarter with Rohuma and Mimo as compared to 2021 when there was not a full quarter as those entities were acquired in 2021.

For the three months ended March 31, 2022 compared to March 31, 2021, the Company’s professional fees decreased by $36,947, or 24%, from $151,425 in 2021 to $114,478 in 2022. Our professional fees decreased in 2022 compared to 2021 due to the acquisitions of Rohuma and Mimo ~~as well as increases to management salaries.~~where the Company incurred legal and auditing costs for these companies for SEC reporting purposes.

For the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 compared to ~~September 30, 2020,~~March 31, 2021, the Company’s ~~professional fees increased~~rent expense decreased by ~~$446,605,~~$5,979, or ~~322%~~77%, from ~~$138,817 in 2020 to $585,422 in 2021. Our professional fees increased~~$7,786 in 2021 ~~compared~~ to ~~2020~~$1,807 in 2022 due to the ~~acquisitions~~renewal of Rohuma and Mimo as well as fees related to the acquisitions of those companies and the preparation of the annual report as well as fees related to the filing of the registration statement which includes the investment banker fees related to the raising of bridge financing.a lease in 2022.

For the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 compared to ~~September 30, 2020, the Company’s rent expense decreased by $71,630, or 75%, from $95,151 in 2020 to $23,521 in~~March 31, 2021, ~~due to TRAQ Pvt Ltd, renegotiating their leases in December 2020 reducing their space due to COVID.~~

~~For the nine months ended September 30, 2021 compared to September 30, 2020,~~ the Company’s depreciation and amortization expense increased ~~$18,206,~~$8,196, or ~~50%~~49%, from ~~$36,284~~$16,718 in ~~2020~~2021 to ~~$54,490~~$24,914 in ~~2021.~~2022. The increase was the result of the depreciation and amortization expense on the fixed and intangible assets acquired in the Rohuma and Mimo acquisitions.

For the nine months ended September 30, 2021 compared to September 30, 2020, the Company’s general and administrative expenses increased by $2,803,663, or 3137%, from $89,373 in 2020 to $2,893,036 in 2021 primarily due to the acquisitions of Rohuma and Mimo as well as expenses related to stock-based compensation.

~~Interest Expense~~

For the nine months ended September 30, 2021 compared to September 30, 2020, the Company’s interest expense increased by $380,558, or 154%, from $247,162 in 2020 to $627,720 in 2021 due to higher levels of debt in 2021 as well as the amortization of discounts on the debt instruments.

~~Changes in Fair Value of Derivative Liabilities~~

For the nine months ended September 30, 2021 compared to September 30, 2020, the Company’s change in the fair value of the derivative liability increased by $850,221, from $0 in 2020 to $850,221 in 2021 due to the classification of the convertible promissory notes and related warrants being classified as derivative liabilities and the changes in the share price over the period September 30, 2021.

~~Net Loss~~

For the nine months ended September 30, 2021 compared to September 30, 2020, the Company’s net loss increased by $4,844,351, from $(439,062) in 2020 to $(5,283,413) in 2021 due to the changes noted herein.

~~Results of Operations and Financial Condition for the Three Months Ended September 30, 2021 as Compared to the Three Months Ended September 30, 2020~~

~~Revenues~~

For the three months ended ~~September 30, 2021~~March 31, 2022 compared to September 30, 2020, the Company’s revenues increased by $571,841, or 262%, from $217,858 in 2020 to $789,699 in 2021. The increase is the result of the acquisitions of Rohuma and Mimo as well as improvement in revenues as TRAQ Pvt Ltd. has started to emerge from the effects of COVID which contributed higher revenue and higher profitability and the addition of new customers in TRAQ Solutions, Inc. for some equipment purchases for non-core business activities.

~~Cost of Revenues~~

~~For the three months ended September 30,~~March 31, 2021, compared to September 30, 2020, the Company’s cost of revenues increased by $521,505, or 398%, from $131,037 in 2020 to $652,542 in 2021. The increase is the result of the acquisitions of Rohuma and Mimo as well as added direct labor for TRAQ Pvt Ltd. The Company experienced lower profitability in these new engagements, as they ramped up personnel post-COVID, which they hope to normalize in the next quarter or two. In addition, the Company in 2021 has added cost of sales for the equipment sold for their non-core business activities.

~~Operating Expenses~~

For the three months ended September 30, 2021 compared to September 30, 2020, the Company’s salary and salary related costs increased by $97,865, or 114%, from $85,484 in 2020 to $183,349 in 2021 due to the acquisitions of Rohuma and Mimo as well as increases to management salaries.

For the three months ended September 30, 2021 compared to September 30, 2020, the Company’s professional fees increased by $274,452, or 1159%, from $23,682 in 2020 to $298,134 in 2021. Our professional fees increased in 2021 compared to 2020 due to the acquisitions of Rohuma and Mimo as well as fees related to the acquisitions of those companies as well as fees related to the filing of the registration statement which includes the investment banker fees related to the raising of bridge financing.

For the three months ended September 30, 2021 compared to September 30, 2020, the Company’s rent expense decreased by $23,246, or 74%, from $31,256 in 2020 to $8,010 in 2021 due to TRAQ Pvt Ltd, renegotiating their leases in December 2020 reducing their space due to COVID.

For the three months ended September 30, 2021 compared to September 30, 2020, the Company’s depreciation and amortization expense increased $5,993, or 52%, from $11,478 in 2020 to $17,471 in 2021. The increase was the result of the depreciation and amortization expense on the fixed and intangible assets acquired in the Rohuma and Mimo acquisitions.

~~For the three months ended September 30, 2021 compared to September 30, 2020,~~ the Company’s general and administrative expenses ~~increased~~decreased by ~~$1,337,113,~~$732,657, or ~~4783%~~88%, from ~~$27,954~~$835,724 in ~~2020~~2021 to ~~$1,365,067~~$103,067 in ~~2021~~2022 primarily due to the ~~acquisitions of Rohuma~~cutbacks in travel and ~~Mimo as well as expenses related to stock-based compensation.~~stock based compensation expenses.

Interest Expense

For the three months ended ~~September 30, 2021~~March 31, 2022 compared to ~~September 30, 2020,~~March 31, 2021, the Company’s interest expense increased by ~~$182,550,~~$342,886, or ~~223%~~235%, from ~~$81,992~~$145,633 in ~~2020~~2021 to ~~$264,542~~$488,519 in ~~2021~~2022 due to higher levels of debt in ~~2021~~2022 mostly related to related-party debt, as well as the amortization of discounts on the debt instruments.

Changes in Fair Value of Derivative Liabilities

For the three months ended ~~September 30, 2021~~March 31, 2022 compared to ~~September 30, 2020,~~March 31, 2021, the Company’s change in the fair value of the derivative liability decreased by ~~$345,911,~~$513,197, or 102%, from $0$505,007 in ~~2020~~2021 to ~~$345,911~~income of $8,190 in ~~2021~~2022 due to the classification of ~~the convertible promissory notes and related warrants being classified as derivative liabilities and~~ the changes in the share price over the period ~~September 30,~~March 31, 2022 compared to March 31, 2021.

Net Loss

For the three months ended ~~September 30, 2021~~March 31, 2022 compared to ~~September 30, 2020,~~March 31, 2021, the Company’s net loss ~~increased~~decreased by ~~$1,606,912,~~$766,718, from ~~$(175,828)~~$(1,690,371) in ~~2020~~2021 to ~~$(1,782,740)~~$(923,653) in ~~2021~~2022 due to the changes noted herein.

Liquidity and Capital Resources

As of ~~September 30, 2021,~~March 31, 2022, current assets were ~~$1,785,261~~$975,239 and current liabilities outstanding amounted to ~~$10,331,630~~$11,143,019 which resulted in a working capital deficit of ~~$8,546,369.~~$10,167,780. As of December 31, ~~2020,~~2021, current assets were ~~$1,101,439~~$980,747 and current liabilities outstanding amounted to ~~$3,953,160~~$10,825,016 which resulted in a working capital deficit of ~~$2,851,721.~~$9,844,269.

Net cash used in operating activities was ~~$105,382~~$629,035 for the ~~nine~~three months ended ~~September 30, 2020~~March 31, 2021 compared to ~~$1,737,531~~$399,388 in ~~2021.~~2022. Cash used in operations for ~~2021~~2022 and ~~2020~~2021 was the primarily related to the loss in operations offset by increases and decreases in accounts payable and accrued expenses and the changes in accounts receivable due to the lack of adequate cash flow of the Company as well as non-cash charges related to ~~stock based~~stock-based compensation and the changes in the derivative liabilities.

The only investing activities for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ related to the acquisitions of fixed assets related to ~~TRAQ Pvt Ltd. And~~the Company’s Indian subsidiaries, as well as in 2021 the amount of cash received (paid) in the acquisitions of Rohuma and Mimo Technologies.

Net cash provided by financing activities for the ~~nine~~three months ended ~~September 30,~~March 31, 2021 consisted of proceeds from the issuance of common stock of ~~$494,500~~$456,000 and convertible notes of ~~$1,115,000,~~$515,000, along with proceeds received from related party notes of ~~$1,449,394 and $50,331 in proceeds from long-term debt.~~$24,101 The Company repaid ~~$781,326~~$366,943 in related party notes ~~$80,000 in convertible notes~~ and ~~$153,706~~$93,244 in long-term debt during the ~~nine~~three months ended ~~September 30,~~March 31, 2021. During the ~~nine~~three months ended ~~September 30, 2020~~March 31, 2022 the financing activities consisted of proceeds from ~~related party~~long-term debt of $344,652, and ~~unrelated~~related party notes of ~~$348,752 as well as repayments of~~$205,836, off set by payments on long-term debt ~~to both~~of $58,615 and payments of related party notes of $63,973. In addition, for the three months ended March 31, 2022 and ~~unrelated parties~~2021 there were increases in the cash overdraft of ~~$61,638.~~$48,400 and $62,605, respectively.

Off-Balance Sheet Arrangements

We have no off-balance sheet financing arrangements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

None.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Based on an evaluation as of the date of the end of the period covered by this report, the Company’s Certifying Officers conducted an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, as required by Exchange Act Rule 13a-15. Based on that evaluation, the Company’s Certifying Officers concluded that, because of the disclosed material weaknesses in the Company’s internal control over financial reporting, the Company’s disclosure controls and procedures were ineffective as of the end of the period covered by this report to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in the Company’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the Company’s reports filed under the Exchange Act is accumulated and communicated to management, including the Company’s Certifying Officers, to allow timely decisions regarding required disclosure. Based upon the evaluation of the disclosure controls and procedures at the end of the period covered by this report, our Certifying Officers concluded that our disclosure controls and procedures were not effective as a result of continuing weaknesses in our internal control over financial reporting principally due to the following:

	-	We have not established adequate financial reporting processes or monitoring activities to ensure adequate financial reporting and to mitigate the risk of management override, specifically because there are few employees and only two officers with management functions and therefore there is lack of segregation of duties.

	-	An outside consultant assists in the preparation of the annual and quarterly financial statements and partners with us to ensure compliance with US GAAP and SEC disclosure requirements.

	-	Outside counsel assists us to review and editing of the annual and quarterly filings and to ensure compliance with SEC disclosure requirements.

Changes in Internal Control over Financial Reporting

There have been no changes in the Company’s internal control over financial reporting that occurred during the period ended ~~September 30, 2021~~March 31, 2022 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

The term “internal control over financial reporting” is defined as a process designed by, or under the supervision of, the registrant’s principal executive and principal financial officers, or persons performing similar functions, and effected by the registrant’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

(a)	Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the registrant;

(b)	Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the registrant are being made only in accordance with authorizations of management and directors of the registrant; and

(c)	Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the registrant’s assets that could have a material effect on the financial statements.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We are not a party to any material litigation, nor, to the knowledge of management, is any litigation threatened against us that may materially affect us.

Item 1A. Risk Factors

None.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

(a) Not applicable.

(b) During the quarter ended ~~September 30, 2021,~~March 31, 2022, there have not been any material changes to the procedures by which security holders may recommend nominees to the Board of Directors.

Item 6. Exhibits

Exhibit Number		Description of Exhibit

31.1		Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		Inline XBRL Instance

101.SCH		Inline XBRL Taxonomy Extension Schema

101.CAL		Inline XBRL Taxonomy Extension Calculation

101.DEF		Inline XBRL Taxonomy Extension Definition

101.LAB		Inline XBRL Taxonomy Extension Labels

101.PRE		Inline XBRL Taxonomy Extension Presentation

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	TraQiQ, Inc.

Date: ~~November 12, 2021~~May 11, 2022	By:	/s/ Ajay Sikka
		Ajay Sikka
		Chief Executive Officer ~~and~~(principal executive officer)

Date: May 11, 2022	By:	/s/ Michael Pollack
		Michael Pollack
		Interim Chief Financial Officer (principal ~~executive officer, principal~~financial and accounting ~~officer and principal financial~~ officer)

	SEPTEMBER 30,			DECEMBER 31,
	2021			2020
	(UNAUDITED)
ASSETS
Current Assets:
Cash	$	400,410		$	29,658
Accounts receivable, net		843,923			521,618
Note receivable - related party		-			227,877
Prepaid expenses and other current assets		540,928			322,286

Total Current Assets		1,785,261			1,101,439

Fixed assets, net		35,823			36,373
Intangible assets, net		1,226,810			444,584
Goodwill		5,863,058			-
Restricted cash		114,575			28,746
Long-term investment		1,440			40,603
Right-of-use asset		115,492			126,118
Other assets		3,147			3,196

Total Non-current Assets		7,360,345			679,620

TOTAL ASSETS	$	9,145,606		$	1,781,059

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

LIABILITIES
Current Liabilities:
Accounts payable and accrued expenses	$	1,938,412		$	1,163,505
Cash overdraft		264,881			188,721
Accrued payroll and related taxes		442,536			327,084
Accrued taxes and duties payable		132,653			46,577
Deferred revenue		19,237			-
Derivative liability		1,889,055			-
Contingent consideration - Rohuma		1,383,954			-
Contingent consideration - Mimo		656,179			-
Current portion - lease liability		12,526			8,779
Current portion - long-term debt - related parties		2,852,966			1,843,399
Current portion - long-term debt		279,601			133,761
Current portion - convertible notes payable, net of discounts		374,546			-
Current portion - convertible debt - long-term debt - related and unrelated parties		85,084			241,334

Total Current Liabilities		10,331,630			3,953,160

Long-term debt, net of current portion		36,954			59,856
Long-term debt - related parties, net of current portion		15,000			-
Lease liability, net of current portion		113,636			125,219

Total Non-current Liabilities		165,590			185,075


Total Liabilities		10,497,220			4,138,235

Commitments and contingencies		-			-

STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock, par value, $0.0001, 10,000,000 shares authorized, Series A Convertible Preferred, 0 and 50,000 shares issued and outstanding, respectively		-			5
Common stock, par value, $0.0001, 300,000,000 shares authorized, 33,136,975 and 27,297,960 issued and outstanding, respectively		3,314			2,730
Additional paid in capital		6,402,244			117,261
Accumulated deficit		(7,784,336	)		(2,504,893	)
Subscription receivable		(45	)		-
Accumulated other comprehensive income (loss)		31,179			27,721

Total Stockholders’ Equity (Deficit) before Non-controlling Interest		(1,347,644	)		(2,357,176	)
Non-controlling interest		(3,970	)		-

Total Stockholders’ Equity (Deficit)		(1,351,614	)		(2,357,176	)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	9,145,606		$	1,781,059


	NINE MONTHS ENDED						THREE MONTHS ENDED
	SEPTEMBER 30,						SEPTEMBER 30,
	2021			2020			2021			2020

REVENUE	$	2,109,087		$	739,177		$	789,699		$	217,858
COST OF REVENUE		1,664,570			399,720			652,542			131,037
GROSS PROFIT		444,517			339,457			137,157			86,821

OPERATING EXPENSES
Salaries and salary related costs		492,362			180,123			183,349			85,484
Professional fees		585,422			138,817			298,134			23,682
Rent expense		23,521			95,151			8,010			31,256
Depreciation and amortization expense		54,490			36,284			17,471			11,478
General and administrative expenses		2,893,036			89,373			1,365,067			27,954

Total Operating Expenses		4,048,831			539,748			1,872,031			179,854

OPERATING LOSS		(3,604,314	)		(200,291	)		(1,734,874	)		(93,033	)

OTHER INCOME (EXPENSE)
Change in fair value of derivative liability		(850,221	)		-			345,911			-
Derivative expense		(124,966	)		-			(124,966	)		-
Gain on sale of assets		146			-			146			-
PPP forgiveness and other income		10,073			10,000			-			-
Interest expense, net of interest income		(627,720	)		(247,162	)		(264,542	)		(81,992	)
Total other income (expense)		(1,592,688	)		(237,162	)		(43,451	)		(81,992	)

NET LOSS BEFORE PROVISION FOR INCOME TAXES		(5,197,002	)		(437,453	)		(1,778,325	)		(175,025	)

Provision for income taxes		86,411			1,609			4,415			803

NET LOSS		(5,283,413	)		(439,062	)		(1,782,740	)		(175,828	)
NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST		3,970			-			1,407			-
NET LOSS ATTRIBUTABLE TO CONTROLLING INTEREST	$	(5,279,443	)	$	(439,062	)	$	(1,781,333	)	$	(175,828	)

Other comprehensive loss
Foreign currency translations adjustment		3,458			(35,959	)		30,406			1,648
Comprehensive loss	$	(5,276,865	)	$	(475,021	)	$	(1,751,807	)	$	(174,180	)

Net loss per share	$	(0.17	)	$	(0.02	)	$	(0.06	)	$	(0.01	)

Weighted average common shares outstanding - basic and diluted		30,801,213			27,297,960			31,435,375			27,297,960

	2021			2020
CASH FLOW FROM OPERATING ACTIVITIES
Net loss	$	(5,279,443	)	$	(439,062	)
Adjustments to reconcile net loss to net cash (used in) operating activities
Change in non-controlling interest		(3,970	)		-
Bad debt expense		261,187			-
Forgiveness of debt		(10,057	)		-
Depreciation and amortization		54,490			36,284
Lease cost, net of repayment		2,910			8,321
Foreign currency (gain) loss		2,658			(7,721	)
Stock-based compensation		495,116			-
Common stock issued for services rendered		2,037,126			-
Change in fair value of derivative liability and derivative expense		975,187			-
Amortization of discounts on debt		253,414			-
Gain on sale of assets		(146	)		-
Changes in assets and liabilities
Accounts receivable		(618,164	)		49,074
Prepaid expenses and other current assets		31,309			(107,714	)
Other assets		-			-
Accounts payable and accrued expenses		(393	)		300,851
Accrued payroll and payroll taxes		8,899			17,395
Accrued duties and taxes		52,346			37,190
Total adjustments		3,541,912			333,680
Net cash (used in) operating activities		(1,737,531	)		(105,382	)

CASH FLOWS FROM INVESTING ACTIVITIES
Cash received in acquisition of Mimo		42,905			-
Cash received in acquisition of Rohuma		5,951			-
Acquisition of Mimo		(21,856	)		-
Advances of note receivable - related party		-			(202,146	)
Acquisition of fixed assets		(3,145	)		(2,083	)
Net cash provided by (used in) investing activities		23,855			(204,229	)

CASH FLOWS FROM FINANCING ACTIVITIES
Increase in cash overdraft		76,064			(138,163	)
Proceeds from the issuance of common stock		494,500			-
Proceeds from convertible notes		1,115,000			-
Repayment of convertible notes		(80,000	)		-
Proceeds from long-term debt - related parties		1,449,394			254,145
Repayment of long-term debt - related parties		(781,326	)		(25,000	)
Proceeds from long-term debt		50,331			94,607
Repayments of long-term debt		(153,706	)		(36,638	)
Net cash provided by financing activities		2,170,257			148,951

NET INCREASE (DECREASE) IN CASH AND RESTRICTED CASH		456,581			(160,660	)

CASH AND RESTRICTED CASH - BEGINNING OF PERIOD		58,404			191,721

CASH AND RESTRICTED CASH - END OF PERIOD	$	514,985		$	31,061

CASH PAID DURING THE PERIOD FOR:
Interest expense	$	51,304		$	81,798
Income taxes	$	86,411		$	1,609

SUMMARY OF NON-CASH ACTIVITIES:
Acquisition of Rohuma:			��
Accounts receivable	$	4,179		$	-
Prepaid and other current assets		8,943			-
Fixed assets		4,512			-
Intellectual property
Tradenames
Investment		1,440			-
Accounts payable and accrued expenses		(58,153	)		-
Accrued payroll and related taxes
Accrued duties and taxes		(2,688	)		-
Long-term debt - related parties		(37,776	)		-
Long-term debt		(10,000	)		-
Cash overdraft		(2,980	)		-
Comprehensive income
Cash		6,027			-

Total net liabilities acquired		(86,496	)		-

Consideration per Share Exchange Agreement		3,433,776			-

Goodwill/(Bargain Purchase Gain)	$	3,520,272		$	-

Acquisition of Mimo Technologies:
Accounts receivable	$	58,692		$	-
Prepaid and other current assets		272,872			-
Fixed assets		153,186			-
Intellectual property		508,669			-
Tradenames		169,556			-
Accounts payable and accrued expenses		(708,833	)		-
Accrued payroll and related taxes		(104,750	)		-
Accrued duties and taxes		(28,213	)		-
Long-term debt - related parties		(343,118	)		-
Long-term debt		(236,712	)		-
Comprehensive income		(42,735	)		-
Cash		43,851			-

Total net liabilities acquired		(257,535	)		-

Consideration per Share Exchange Agreement		2,085,653			-

Goodwill/(Bargain Purchase Gain)	$	2,343,188		$	-

Common stock issued for conversion of long-term debt, related and unrelated parties	$	224,688		$	-

	September 30, 2021		December 31, 2020

MIMO Technologies PVT Ltd	$	-	$	227,877

		September 30, 2021		December 31, 2020
Face value of notes – related party	(a)	$	-	$	95,000

Face value of notes – unrelated parties	(a)		68,077		98,077

Excess of the fair value of shares issuable over the face value of the convertible notes	(a)		17,007		48,257

		$	85,084	$	241,334

	September 30, 2021		December 31, 2020
Fair value of the GS Capital conversion option	$	186,818	$	-
Fair value of the Platinum Point conversion option		902,857		-
Fair value of the Platinum Point warrants (200,000 warrants)		134,000		-
Fair value of the Evergreen 1 conversion option		332,690		-
Fair value of the Evergreen 1 warrants (496,552 warrants		332,690		-
	$	1,889,055	$	-