Intellicheck (IDN) 10-Q/A 9 Jun 22 2021 Q3 Quarterly report (amended) Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2021	Nov. 12, 2021
Cover [Abstract]
Document Type	10-Q/A
Amendment Flag	true
Amendment Description	We are filing this Amendment No. 1 (“Form 10-Q/A”) to our Form 10-Q for the fiscal quarters ended September 30, 2021 and 2020, which were originally filed (“Original Filing”) on November 12, 2021 and 2020, respectively, to restate our financial statements as of and for the three and nine months ended September 30, 2021 and 2020, and to amend related disclosures, including controls and procedures.
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	001-15465
Entity Registrant Name	Intellicheck, Inc.
Entity Central Index Key	0001040896
Entity Tax Identification Number	11-3234779
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	200 Broadhollow Road
Entity Address, Address Line Two	Suite 207
Entity Address, City or Town	Melville
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11747
City Area Code	516
Local Phone Number	992-1900
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		18,652,134

Balance Sheets

Balance Sheets - USD ($)	Sep. 30, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash	$ 13,266,031	$ 13,121,392
Accounts receivable, net of allowance of $0 and $42,974 at September 30, 2021 and December 31, 2020, respectively	2,777,222	2,119,861
Other current assets	869,583	340,718
Total current assets	16,912,836	15,581,971
PROPERTY AND EQUIPMENT, net	430,341	138,870
GOODWILL	8,101,661	8,101,661
INTANGIBLE ASSETS, net	403,856	482,591
OPERATING LEASE RIGHT-OF-USE ASSET		31,131
OTHER ASSETS	8,500	4,250
Total assets	25,857,194	24,340,474
CURRENT LIABILITIES:
Accounts payable	231,780	46,171
Accrued expenses	2,445,534	1,638,798
Operating lease liability, current portion		32,620
Equity awards liability	782,834
Liability for shares withheld	1,244,458
Deferred revenue, current portion	1,372,311	402,782
Total current liabilities	6,076,917	2,120,371
NONCURRENT LIABILITIES:
Deferred revenue, long-term portion	9,737	8,662
Total liabilities	6,086,654	2,129,033
COMMITMENTS AND CONTINGENCIES (Note 10)
STOCKHOLDERS’ EQUITY:
Common stock - $.001 par value; 40,000,000 shares authorized; 18,643,281 and 18,410,458 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively	18,644	18,410
Additional paid-in capital	145,657,327	141,612,140
Accumulated deficit	(125,905,431)	(119,419,109)
Total stockholders’ equity	19,770,540	22,211,441
Total liabilities and stockholders’ equity	$ 25,857,194	$ 24,340,474

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for accounts receivable	$ 0	$ 42,974
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	18,643,281	18,410,458
Common stock, shares outstanding	18,643,281	18,410,458

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
REVENUES	$ 4,831,229	$ 2,698,975	$ 12,490,911	$ 7,656,442
COST OF REVENUES	(1,510,590)	(293,699)	(3,199,834)	(1,196,528)
Gross profit	3,320,639	2,405,276	9,291,077	6,459,914
OPERATING EXPENSES
Selling, general and administrative	2,930,273	4,514,488	11,688,208	7,384,379
Research and development	1,415,666	907,763	4,104,531	2,837,374
Total operating expenses	4,345,939	5,422,251	15,792,739	10,221,753
Loss from operations	(1,025,300)	(3,016,975)	(6,501,662)	(3,761,839)
OTHER INCOME (EXPENSE)
Gain on forgiveness of unsecured promissory note			10,000
Interest and other income (expense), net	(412)	6,993	5,340	18,186
Total other income (expense)	(412)	6,993	15,340	18,186
Net loss	$ (1,025,712)	$ (3,009,982)	$ (6,486,322)	$ (3,743,653)
Loss per common share -
Basic	$ (0.06)	$ (0.16)	$ (0.35)	$ (0.22)
Diluted	$ (0.06)	$ (0.16)	$ (0.35)	$ (0.22)
Weighted average common shares used in computing per share amounts
Basic	18,642,463	18,336,107	18,580,012	16,960,770
Diluted	18,642,463	18,336,107	18,580,012	16,960,770

Statements of Stockholders' Equ

Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2019	$ 16,042	$ 128,668,583	$ (116,935,112)	$ 11,749,513
Balance, shares at Dec. 31, 2019	16,041,650
Equity compensation		286,909		286,909
Issuance of common stock, net of costs	$ 1,769	10,567,698		10,569,467
Issuance of common stock, net of costs. shares	1,769,230
Exercise of stock options, net of cashless exercise of shares	$ 674	167,934		168,608
Exercise of stock options, net of cashless exercise of shares, shares	674,171
Exercise of warrants	$ 51	111,599		111,650
Exercise of warrants, shares	50,750
Issuance of shares for restricted stock grants	$ 20	(20)
Issuance of shares for restricted stock grants, shares	20,279
Shares withheld for withholding taxes	$ (181)	(1,475,750)		(1,475,931)
Shares withheld for withholding taxes, shares	(180,844)
Settlement of executive bonuses with issuance of restricted stock units	$ 15	84,696		84,711
Settlement of executive bonuses with issuance of restricted stock units, shares	14,993
Exercise of liability awards		3,042,394		3,042,394
Net loss			(3,743,653)	(3,743,653)
Ending balance, value at Sep. 30, 2020	$ 18,390	141,454,043	(120,678,765)	20,793,668
Balance, shares at Sep. 30, 2020	18,390,229
Beginning balance, value at Jun. 30, 2020	$ 18,028	139,715,197	(117,668,783)	22,064,442
Balance, shares at Jun. 30, 2020	18,028,282
Equity compensation		97,157		97,157
Exercise of stock options, net of cashless exercise of shares	$ 527	28,823		29,350
Exercise of stock options, net of cashless exercise of shares, shares	527,214
Exercise of warrants	$ 1	1,649		1,650
Exercise of warrants, shares	750
Issuance of shares for restricted stock grants	$ 7	(7)
Issuance of shares for restricted stock grants, shares	7,284
Shares withheld for withholding taxes	$ (179)	(1,462,415)		(1,462,594)
Shares withheld for withholding taxes, shares	(178,832)
Settlement of executive bonuses with issuance of restricted stock units	$ 6	31,245		31,251
Settlement of executive bonuses with issuance of restricted stock units, shares	5,531
Exercise of liability awards		3,042,394		3,042,394
Net loss			(3,009,982)	(3,009,982)
Ending balance, value at Sep. 30, 2020	$ 18,390	141,454,043	(120,678,765)	20,793,668
Balance, shares at Sep. 30, 2020	18,390,229
Beginning balance, value at Dec. 31, 2020	$ 18,410	141,612,140	(119,419,109)	22,211,441
Balance, shares at Dec. 31, 2020	18,410,458
Equity compensation		2,270,205		2,270,205
Exercise of stock options, net of cashless exercise of shares	$ 207	1,755,209		1,755,416
Exercise of stock options, net of cashless exercise of shares, shares	206,545
Exercise of warrants	$ 9	19,791		19,800
Exercise of warrants, shares	9,000
Issuance of shares for restricted stock grants	$ 18	(18)
Issuance of shares for restricted stock grants, shares	17,278
Net loss			(6,486,322)	(6,486,322)
Ending balance, value at Sep. 30, 2021	$ 18,644	145,657,327	(125,905,431)	19,770,540
Balance, shares at Sep. 30, 2021	18,643,281
Beginning balance, value at Jun. 30, 2021	$ 18,636	145,018,746	(124,879,719)	20,157,663
Balance, shares at Jun. 30, 2021	18,634,918
Equity compensation		638,589		638,589
Issuance of shares for restricted stock grants	$ 8	(8)
Issuance of shares for restricted stock grants, shares	8,363
Net loss			(1,025,712)	(1,025,712)
Ending balance, value at Sep. 30, 2021	$ 18,644	$ 145,657,327	$ (125,905,431)	$ 19,770,540
Balance, shares at Sep. 30, 2021	18,643,281

Statements of Stockholders' E_2

Statements of Stockholders' Equity (Unaudited) (Parenthetical) - shares	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2021
Statement of Stockholders' Equity [Abstract]
Exercise of stock options, net of cashless exercise of shares	82,161	58,122	93,570	58,122
Exercise of stock options, net of cashless exercise shares withheld		92,634		92,634

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (6,486,322)	$ (3,743,653)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	126,226	127,143
Equity compensation	6,006,443	3,329,303
Forgiveness of unsecured promissory note	(10,000)
Changes in assets and liabilities:
(Increase) in accounts receivable	(657,361)	(64,228)
(Increase) in other current assets	(528,865)	(192,103)
(Increase) in other assets	(4,250)
Increase in accounts payable and accrued expenses	990,856	361,395
Increase (decrease) in deferred revenue	970,604	(128,779)
Net cash provided by (used in) operating activities	407,331	(310,922)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of software license		(400,000)
Capital expenditures	(338,962)	(36,520)
Collection of note receivable		29,017
Net cash used in investing activities	(338,962)	(407,503)
CASH FLOWS FROM FINANCING ACTIVITIES:
Return of repayment on unsecured promissory note	10,000
Net proceeds from issuance of common stock		10,569,467
Loan proceeds on unsecured promissory note		806,100
Net proceeds from issuance of common stock from exercise of stock options	46,470	168,608
Proceeds from issuance of common stock from exercise of warrants	19,800	111,650
Withholding taxes paid on exercise of stock options and vesting of restricted stock units		(1,475,931)
Net cash provided by financing activities	76,270	10,179,894
Net increase in cash	144,639	9,461,469
CASH, beginning of period	13,121,392	3,350,853
CASH, end of period	13,266,031	12,812,322
Supplemental disclosure of noncash investing and financing activities:
Reclassification of stock option awards	1,411,108
Settlement of executive bonuses with restricted stock units		$ 84,710

NATURE OF BUSINESS

NATURE OF BUSINESS	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS	1. NATURE OF BUSINESS Business Intellicheck, Inc. (the “Company” or “Intellicheck”) is a prominent technology company that is engaged in developing, integrating and marketing identity verification solutions to address challenges that include commercial retail and banking fraud prevention. Intellicheck’s products include ID Check®, a solution for preventing identity fraud across any industry delivered via smartphone, tablet, POS integration or other electronic devices. Intellicheck continues to develop and release innovative products based upon its rich patent portfolio consisting of nineteen issued patents and four pending patents. Liquidity For the nine months ended September 30, 2021, the Company incurred a net loss of $ (6,486,322) 407,331 13,266,031 10,835,919 125,905,431 As of the filing of this Form 10-Q, the COVID-19 pandemic, which first began affecting the Company in the first quarter of 2020, has impacted the Company’s business by a temporary decline in revenues from its customers. Though the Company has had an increase in SaaS revenues for the three and nine months ended September 30, 2021 over the respective periods in 2020, the COVID-19 pandemic may continue to impact its business directly and/or indirectly for the foreseeable future. The Company is further unable to accurately predict the full impact that the COVID-19 pandemic will have on its results of operations or financial condition due to numerous factors that are not within its control, including the duration and severity of the outbreak together with any potential statewide closures if cases increase, the spread of COVID-19 variants, including the Delta variant, and the widespread adoption of vaccination measures including recently approved booster regimens. See Part II, Item 1A for more information.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	2. SIGNIFICANT ACCOUNTING POLICIES Restatement of Previously Issued Financial Statements On May 16, 2022, management in concurrence with the Company’s Audit Committee of our Board of Directors (the “Audit Committee”), concluded that that the financial statements previously issued as of and for the three and nine months ended September 30, 2021 and 2020, should no longer be relied upon due to errors in accounting for certain option awards. Accordingly, we are restating our Balance Sheets, Statements of Operations, Statements of Stockholders’ Equity, Statements of Cash Flows and the related notes as of and for the three and nine months ended September 30, 2021 and 2020. Specifically, the Company determined that a cashless withholding to satisfy personal income tax obligations from certain option awards exercised commencing in the third quarter of 2020 and the first quarter of 2021, caused the underlying options to no longer qualify as equity awards and should have instead been classified as liability awards commencing on the date of exercise. The change in the classification of the awards to liability classified awards requires the Company to remeasure the fair value of the awards at the end of each reporting period they remain outstanding, with the increase or decrease in fair value correspondingly charged or credited to selling, general and administrative expenses in arriving at net income (loss). Furthermore, the Company, due to an administrative error, failed to sell the shares surrendered in 2021 and did not remit the equivalent amount of funds to the tax authorities. To date, the Company has not returned the shares or otherwise reimbursed the effected individuals for the shares withheld. The Company is currently in the process of arranging payment to the individuals, which is expected to be completed during the quarter ending June 30, 2022. These errors resulted in misstatements to our Balance Sheets, Statements of Operations, Statements of Stockholders’ Equity, and Statements of Cash Flows as of and for the three and nine months ended September 30, 2021 and 2020, as follows: SCHEDULE OF ERRORS RESULTED IN MISSTATEMENTS As of September 30, 2021 As Previously Restatement As Reported Adjustment Restated BALANCE SHEET Equity awards liability $ - 782,834 $ 782,834 Liability for shares withheld $ - 1,244,458 $ 1,244,458 Total current liabilities $ 4,049,625 2,027,292 $ 6,076,917 Total liabilities $ 4,059,362 2,027,292 $ 6,086,654 Common stock (dollars) $ 18,736 (92 ) $ 18,644 Additional paid-in capital $ 140,905,895 4,751,432 $ 145,657,327 Accumulated deficit $ (119,126,799 ) (6,778,632 ) $ (125,905,431 ) Total stockholders’ equity $ 21,797,832 (2,027,292 ) $ 19,770,540 Common stock (shares) 18,735,915 (92,634 ) 18,643,281 For the three months ended September 30, 2021 As Previously Restatement As Reported Adjustment Restated STATEMENT OF OPERATIONS Selling, general and administrative expenses $ 2,856,794 73,479 $ 2,930,273 Total operating expenses $ 4,272,460 73,479 $ 4,345,939 Loss from operations $ (951,821 ) (73,479 ) $ (1,025,300 ) Net loss $ (952,233 ) (73,479 ) $ (1,025,712 ) PER SHARE INFORMATION Loss per common share Basic and Diluted $ (0.05 ) (0.01 ) $ (0.06 ) Weighted average common shares used in computing per share amounts -Basic and Diluted 18,735,097 (92,634 ) 18,642,463 For the nine months ended September 30, 2021 As Previously Restatement As Reported Adjustment Restated STATEMENT OF OPERATIONS Selling, general and administrative expenses $ 7,951,970 3,736,238 $ 11,688,208 Total operating expenses $ 12,056,501 3,736,238 $ 15,792,739 Loss from operations $ (2,765,424 ) (3,736,238 ) $ (6,501,662 ) Net loss $ (2,750,084 ) (3,736,238 ) $ (6,486,322 ) PER SHARE INFORMATION Loss per common share Basic and Diluted $ (0.15 ) (0.20 ) $ (0.35 ) Weighted average common shares used in computing per share amounts - Basic and Diluted 18,653,823 (73,811 ) 18,580,012 For the three months ended September 30, 2020 As Previously Restatement As Reported Adjustment Restated STATEMENT OF OPERATIONS Selling, general and administrative expenses $ 1,472,094 3,042,394 $ 4,514,488 Total operating expenses $ 2,379,857 3,042,394 $ 5,422,251 Income (loss) from operations $ 25,419 (3,042,394 ) $ (3,016,975 ) Net income (loss) $ 32,412 (3,042,394 ) $ (3,009,982 ) PER SHARE INFORMATION Income (loss) per common share Basic and Diluted $ 0.00 (0.16 ) $ (0.16 ) Weighted average common shares used in computing per share amounts - Basic 18,336,107 - 18,336,107 Diluted 18,764,994 (428,887 ) 18,336,107 For the nine months ended September 30, 2020 As Previously Restatement As Reported Adjustment /Restated STATEMENT OF OPERATIONS Selling, general and administrative expenses $ 4,341,985 3,042,394 $ 7,384,379 Total operating expenses $ 7,179,359 3,042,394 $ 10,221,753 Loss from operations $ (719,445 ) (3,042,394 ) $ (3,761,839 ) Net loss $ (701,259 ) (3,042,394 ) $ (3,743,653 ) PER SHARE INFORMATION Loss per common share Basic and Diluted $ (0.04 ) (0.18 ) $ (0.22 ) Weighted average common shares used in computing per share amounts - Basic and Diluted 16,960,770 - 16,960,770 For the three months ended September 30, 2021 As Previously Restatement As Reported Adjustment Restated STATEMENT OF STOCKHOLDERS’ EQUITY Net loss $ (952,233 ) (73,479 ) $ (1,025,712 ) Common stock (shares) 18,735,915 (92,634 ) 18,643,281 Common stock (dollars) $ 18,736 (92 ) $ 18,644 Additional paid-in capital $ 140,905,895 4,751,432 $ 145,657,327 Accumulated deficit $ (119,126,799 ) (6,778,632 ) $ (125,905,431 ) Total stockholders’ equity $ 21,797,832 (2,027,292 ) $ 19,770,540 For the nine months ended September 30, 2021 As Previously Restatement As Reported Adjustment Restated STATEMENT OF STOCKHOLDERS’ EQUITY Exercise of stock options, net of cashless exercise of 58,122 92,634 $ 46,470 1,708,946 $ 1,755,416 Net loss $ (2,750,084 ) (3,736,238 ) $ (6,486,322 ) Common stock (shares) 18,735,915 (92,634 ) 18,643,281 Common stock (dollars) $ 18,736 (92 ) $ 18,644 Additional paid-in capital $ 140,905,895 4,751,432 $ 145,657,327 Accumulated deficit $ (119,126,799 ) (6,778,632 ) $ (125,905,431 ) Total stockholders’ equity $ 21,797,832 (2,027,292 ) $ 19,770,540 Three months ended September 30, 2020 As Previously Restatement As Reported Adjustment Restated STATEMENT OF STOCKHOLDERS’ EQUITY Exercise of liability awards $ - 3,042,394 $ 3,042,394 Net income (loss) $ 32,412 (3,042,394 ) $ (3,009,982 ) Accumulated deficit $ (117,636,371 ) (3,042,394 ) $ (120,678,765 ) Additional paid-in capital $ 138,411,649 3,042,394 $ 141,454,043 Total stockholders’ equity $ 20,793,668 - $ 20,793,668 Nine months ended September 30, 2020 As Previously Restatement As Reported Adjustment Restated STATEMENT OF STOCKHOLDERS’ EQUITY Exercise of liability awards $ - 3,042,394 $ 3,042,394 Net loss $ (701,259 ) (3,042,394 ) $ (3,743,653 ) Accumulated deficit $ (117,636,371 ) (3,042,394 ) $ (120,678,765 ) Additional paid-in capital $ 138,411,649 3,042,394 $ 141,454,043 Total stockholders’ equity $ 20,793,668 - $ 20,793,668 For the nine months ended September 30, 2021 As Previously Restatement As Reported Adjustment Restated STATEMENT OF CASH FLOWS Net loss $ (2,750,084 ) (3,736,238 ) $ (6,486,322 ) Equity compensation $ 2,270,205 3,736,238 $ 6,006,443 Supplemental disclosure of noncash investing and financing activities: Reclassification of stock option awards $ - 1,411,108 $ 1,411,108 For the nine months ended September 30, 2020 As Previously Restatement As Reported Adjustment Restated STATEMENT OF CASH FLOWS Net loss $ (701,259 ) (3,042,394 ) $ (3,743,653 ) Equity compensation $ 286,909 3,042,394 $ 3,329,303 The correction of the errors had no effect on net cash used in operating activities for either period. Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles in the United States of America for complete financial statements. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments necessary for a fair presentation of the Company’s financial position at September 30, 2021 and the results of operations, stockholders’ equity and cash flows for the nine months ended September 30, 2021 and 2020. All such adjustments are of a normal and recurring nature. Interim financial statements are prepared on a basis consistent with the Company’s annual financial statements. Results of operations for the nine-month period ended September 30, 2021, are not necessarily indicative of the operating results that may be expected for the year ending December 31, 2021. As noted in the Explanatory Note, the Company has filed this Form 10-Q/A to amend our Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2021, originally filed with the SEC on November 11, 2021 (the “Original Form 10-Q”), to restate our Financial Statements and related footnote disclosures as of and for the three and nine months ended September 30, 2021 and 2020. The balance sheet as of December 31, 2020 has been derived from the audited financial statements at that date, as restated, but does not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. References in this Quarterly Report on Form 10-Q to “authoritative guidance” is to the Accounting Standards Codification issued by the Financial Accounting Standards Board (“FASB”). For further information, refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Use of Estimates The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the Company’s financial statements and accompanying notes. Significant estimates and assumptions that affect amounts reported in the financial statements include impairment consideration and valuation of goodwill and intangible assets, deferred tax valuation allowances, and the fair value of stock options granted under the Company’s equity compensation plan. Due to the inherent uncertainties involved in making estimates, actual results reported in future periods may be different from those estimates.As discussed above, certain option awards no longer qualify as equity awards and instead are being classified as liability awards. ASC 718 establishes fair value as the measurement objective in accounting for equity payment arrangements and requires all companies to apply a fair value based measurement method in accounting for all equity payment transactions with employees. The company determined the fair value of these awards utilizing a Black-Scholes option pricing model. Financial Accounting Standards Board (“FASB”) guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: ● Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities. ● Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active). Level 2 includes financial instruments that are valued using models or other valuation methodologies. The Company had $ 782,834 ● Level 3—Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when the fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable. The Company had no Allowance for Doubtful Accounts The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, credit quality of the Company’s customers, current economic conditions and other factors that may affect customers’ ability to pay. Goodwill Goodwill represents the excess of acquisition cost over the fair value of net assets acquired in business combinations. Pursuant to ASC Topic 350, the Company tests goodwill for impairment on an annual basis in the fourth quarter (December 31, 2021), or between annual tests, in certain circumstances. Under authoritative guidance, the Company first assessed qualitative factors to determine whether it was necessary to perform the two-step quantitative goodwill impairment test. An entity is not required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. Events or changes in circumstances which could trigger an impairment review include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, other entity specific events and sustained decrease in share price. There were no Intangible Assets Intangible assets include patents, copyrights, intellectual property rights and licensed software. The Company uses the straight-line method to amortize these assets over their estimated useful lives, as it represents the pattern of economic benefits consumed. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable in accordance with ASC Topic 360. To determine recoverability of its long-lived assets, the Company evaluates the probability that future undiscounted net cash flows, without interest charges, will be less than the carrying amount of the assets. There were no Income Taxes The Company accounts for income taxes under in accordance with ASC Topic 740, “Accounting for Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using expected tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The Company has recorded a full valuation allowance for its net deferred tax assets as of September 30, 2021 and December 31, 2020, due to the uncertainty of the realizability of those assets. Fair Value of Financial Instruments The Company adheres to the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”. This pronouncement requires that the Company calculate the fair value of financial instruments and include this additional information in the notes to financial statements when the fair value is different than the book value of those financial instruments. The Company’s financial instruments include cash, accounts receivable, accounts payable and accrued expenses. As of September 30, 2021 and December 31, 2020, the carrying value of the Company’s financial instruments approximated fair value, due to their short-term nature. Revenue Recognition and Deferred Revenue General Most license fees and services revenue are generated from a combination of fixed-price and per-scan contracts. Under the per-scan revenue model, customers are charged a fee each time the customer scans an identity document, such as a driver’s license, with the Company’s software. Under the fixed-price revenue model customers are charged a fixed monthly fee either per device or physical business location to access the Company’s software. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration expected to be received in exchange for those goods or services. The Company measures revenue based on the consideration specified in a customer arrangement, and revenue is recognized when the performance obligations in an arrangement are satisfied. A performance obligation is a promise in a contract to transfer a distinct service to the customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as, the customer receives the benefit of the performance obligation. Customers typically receive the benefit of the Company’s services as they are performed. Substantially all customer contracts provide that the Company is compensated for services performed to date. Invoicing is based on schedules established in customer contracts. Payment terms are generally established from 30 to 60 days from the invoice date. Product returns are recorded as a reduction to revenue. Nature of goods and services The following is a description of the products and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each: Software as a Service (SaaS) Software as a service (SaaS) for hosted subscription services and licensed software allows customers to access a set of data for a predetermined period of time. As the customer obtains access at a point in time but continues to have access for the remainder of the subscription period, the customer is considered to simultaneously receive and consume the benefits provided by the entity’s performance as the entity performs. Accordingly, the revenue should be recognized over time based on the usage of the hosted subscription services and licensed software, which can vary from month to month. The revenue is typically based either on a formula such as number of locations using the service in a given month multiplied by a fee per location or the number of actual scans in a given month multiplied by a set price per scan based on the contract with the customer. Other Subscription and Support Services The Company also recognizes revenues from other subscription and support services, which includes jurisdictional updates to certain commercial customers and support services particularly to its Defense ID® customers. These subscriptions require continuing service or post contractual customer support and performance. As the customer obtains access at a point in time but continues to have access for the remainder of the subscription period, the customer is considered to simultaneously receive and consume the benefits provided by the entity’s performance as the entity performs. Accordingly, the revenue should be recognized over time based on usage, which can vary from month to month. The revenue is typically based on a formula such as number of locations in a given month multiplied by a fee per location. Equipment Revenue Revenue from the sale of equipment is recognized at a point in time. The point in time that the revenue is recognized is when the customer has control of the equipment which is when the customer receives the benefit and the Company’s performance obligation has been satisfied. Depending on the contract terms, that could either be at the time the equipment is shipped or at the time the equipment is received. Non-Recurring Services Revenue The non-recurring services include items such as training, installation, customization, and configuration. The Company recognizes revenue from non-recurring services contracts ratably over the service contract period as the customer consumes the benefit as it is provided and the Company’s performance obligation has been satisfied. Extended Warranty Extended warranty revenues are generated when a warranty is provided to the customer separately of other performance obligations when the equipment is sold. As the customer obtains access at a point in time and continues to have access for the remainder of the warranty term, the customer is considered to simultaneously receive and consume the benefits provided by the Company’s performance as the Company performs. The related revenue is recognized ratably over the specified term of the warranty period. The extended warranty is separate to the Company’s standard warranty of usually one year that it receives from its vendor. Disaggregation of revenue In the following tables, revenue is disaggregated by product and service and the timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue. SCHEDULE OF DISAGGREGATION OF REVENUE For the Three Months Ended 2021 2020 Products and services Software as a Service (SaaS) $ 3,245,274 $ 2,451,381 Other subscription and support services 3,282 36,346 Equipment 1,470,333 176,061 Non-recurring services 12,000 29,000 Extended warranties on equipment 1,405 5,058 Other 98,935 1,129 Revenues $ 4,831,229 $ 2,698,975 Timing of revenue recognition Products transferred at a point in time $ 1,569,268 $ 177,190 Services transferred over time 3,261,961 2,521,785 Revenues $ 4,831,229 $ 2,698,975 For the Nine Months Ended 2021 2020 Products and services Software as a Service (SaaS) $ 9,254,591 $ 6,361,150 Other subscription and support services 22,588 186,280 Equipment 2,931,980 1,011,608 Non-recurring services 65,200 70,450 Extended warranties on equipment 7,009 17,232 Other 209,543 9,722 $ 12,490,911 $ 7,656,442 Timing of revenue recognition Products transferred at a point in time $ 3,141,523 $ 1,021,330 Services transferred over time 9,349,388 6,635,112 Revenues $ 12,490,911 $ 7,656,442 Contract balances The current portion of deferred revenue at September 30, 2021 and December 31, 2020 was $ 1,372,311 402,782 48,378 383,162 9,737 8,662 The Company did not recognize any material revenue in the current reporting period for performance obligations that were fully satisfied in previous periods. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period: SCHEDULE OF REVENUE PERFORMANCE OBLIGATION Remainder 2021 2022 2023 Total Software as a Service (SaaS) $ 550,647 $ 812,288 $ 3,136 $ 1,366,071 Other subscription and support services 3,086 5,649 2,602 11,337 Extended warranties on equipment 1,097 2,324 1,219 4,640 $ 554,830 $ 820,261 $ 6,957 $ 1,382,048 All consideration from contracts with customers is included in the amounts presented above. Business Concentrations and Credit Risk During the three and nine-month periods ended September 30, 2021, the Company made sales to two customers that accounted for approximately 60 58 28 46 37 Net Loss Per Share Basic net loss per share is computed by dividing the net loss for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss for the period by the weighted average number of shares of common stock and potentially dilutive common stock equivalents outstanding during the period. The dilutive effect of outstanding options, warrants and restricted stock is reflected in diluted earnings per share by application of the treasury stock method. The calculation of diluted net loss per share excludes all anti-dilutive shares. In the periods of a net loss, all common stock equivalents are considered anti-dilutive. SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Numerator: Net loss $ (1,025,712 ) $ (3,009,982 ) $ (6,486,322 ) $ (3,743,653 ) Denominator: Weighted average common shares – Basic and Diluted 18,642,463 18,336,107 18,580,012 16,960,770 Net loss per share – Basic and Diluted $ (0.06 ) $ (0.16 ) $ (0.35 ) $ (0.22 ) The following table summarizes the common stock equivalents excluded from loss per diluted share because their effect would be anti-dilutive to the net loss: SUMMARY OF COMMON STOCK EQUIVALENTS EXCLUDED FROM LOSS PER DILUTED SHARE Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Stock options 502,424 653,882 502,424 653,882 Warrants - 12,680 - 12,680 Restricted stock 408,657 4,499 408,657 4,499 Performance stock units 228,498 265,942 228,498 265,942 1,139,579 937,003 1,139,579 937,003

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	3. INTANGIBLE ASSETS The changes in the carrying amount of intangible assets for the nine months ended September 30, 2021 were as follows: SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS Net balance at December 31, 2020 $ 482,591 Deduction: Amortization expense (78,735 ) Net balance at September 30, 2021 $ 403,856 The following summarizes amortization of intangible assets included in the accompanying statements of operations: SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS AMORTIZATION EXPENSE Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Cost of sales $ 23,676 $ 23,677 $ 71,029 $ 57,696 General and administrative 2,569 2,568 7,706 7,705 Amortization of intangible assets $ 26,245 $ 26,245 $ 78,735 $ 65,401

DEBT

DEBT	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
DEBT	4. DEBT Promissory Note On April 15, 2020, the Company received an advance of $ 10,000 from the U.S. Small Business Administration (“SBA”) as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company repaid this EIDL advance on December 7, 2020. The Company had not imputed interest on this advance as the rate was determined to be a below-market rate due to the scope exception in ASC 835-30-15-3(e) for government-mandated interest rates. On December 27, 2020, Congress passed the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (“the Economic Aid Act”) which relieves companies of their obligations to repay EIDL advances. As a result of this ruling, the SBA returned this advance, plus interest to the Loan Servicer on February 18, 2021, which was immediately returned to the Company and included in Other Income on the Statements of Operations. Revolving Line of Credit On February 6, 2019, the Company entered into a revolving credit facility with Citibank that allows for borrowings up to the lesser of (i) $ 2,000,000 The facility bears interest at a rate consistent of Citibank’s Base Rate (4.75% at September 30, 2021) minus 2%. 2,000,000

ACCRUED EXPENSES

ACCRUED EXPENSES	9 Months Ended
	Sep. 30, 2021
Payables and Accruals [Abstract]
ACCRUED EXPENSES	5. ACCRUED EXPENSES Accrued expenses are comprised of the following: SCHEDULE OF ACCRUED EXPENSES September 30, 2021 December 31, 2020 Professional fees $ 144,050 $ 123,787 Payroll and related 1,131,424 604,302 Incentive bonuses 1,100,808 834,910 Other 69,252 75,799 Accrued expenses $ 2,445,534 $ 1,638,798

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	6. INCOME TAXES The Company’s available net operating loss (“NOL”) at December 31, 2020 was approximately $ 17 The federal and state NOLs are available to offset future taxable income and begin to expire in 2021.

EQUITY COMPENSATION

EQUITY COMPENSATION	9 Months Ended
	Sep. 30, 2021
Share-Based Payment Arrangement [Abstract]
EQUITY COMPENSATION	7. EQUITY COMPENSATION The Company accounts for the issuance of equity awards to employees in accordance with ASC Topic 718, which requires that the cost resulting from all equity payment transactions be recognized in the financial statements. This pronouncement establishes fair value as the measurement objective in accounting for equity payment arrangements and requires all companies to apply a fair value based measurement method in accounting for all equity payment transactions with employees. All equity compensation is included in operating expenses for the periods as follows: SCHEDULE OF STOCK BASED COMPENSATION Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Compensation cost recognized: Selling, general & administrative $ 613,667 $ 3,130,905 $ 5,536,418 $ 3,307,152 Research & development 98,401 8,646 470,025 22,151 Share-based compensation expenses $ 712,068 $ 3,139,551 $ 6,006,443 $ 3,329,303 Stock Options The Company uses the Black-Scholes option pricing model to value the options on the grant date. For the awards which were modified and are no longer classified as equity awards, the Company uses the share price as of each reporting period to calculate the fair value of the options. The table below presents the weighted average expected life of the options in years. The expected life computation is based on the time to option expiration. Volatility is determined using changes in historical stock prices. The interest rate for periods within the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. As discussed above, certain option awards no longer qualify as equity awards and instead are classified as liability awards. The fair values of these awards are determined at each reporting period utilizing a Black Scholes option pricing model, and the associated compensation expense for the reporting period is recorded. The Company recorded $ 3,736,238 Stock option activity under the 2015 Stock Option Plan (the “Plan”) during the period indicated below were as follows: SCHEDULE OF STOCK OPTION ACTIVITY Number of Shares Subject to Issuance Weighted-average Exercise Price Weighted-average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2020 637,882 $ 2.50 2.55 $ 5,686,421 Granted 221,843 10.38 Exercised (357,301 ) 2.34 Outstanding at September 30, 2021 502,424 $ 6.09 3.25 $ 1,548,558 Exercisable at September 30, 2021 135,859 $ 2.72 2.14 $ 743,173 The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on September 30, 2021. This amount changes based upon the fair market value of the Company’s stock. Restricted Stock Units The Company issues Restricted Stock Units (“RSUs”) which are equity-based instruments that may be settled in shares of common stock of the Company. During the nine months ended September 30, 2021, the Company issued RSUs to its officers and certain employees and to certain directors as compensation. RSU agreements can vest immediately or with the passage of time. The vesting of all RSUs is contingent on continued board and employment services. The compensation expense incurred by the Company for RSUs is based on the closing market price of the Company’s common stock on the date of grant and is amortized ratably on a straight-line basis over the requisite service period and charged to general and administrative expense with a corresponding increase to additional paid-in capital. SCHEDULE OF RESTRICTED STOCK UNITS OUTSTANDING Number of Weighted Aggregate Outstanding at December 31, 2020 1,754 $ 11.40 $ - Granted 428,831 10.49 Vested and settled in shares (17,278 ) 8.68 Forfeited (4,650 ) 11.50 Outstanding at September 30, 2021 408,657 $ 10.56 $ 7,905 Performance Stock Units On August 7, 2020, the Company issued 265,942 50 50 For the market condition, compensation expense is based on a Geometric Brownian Motion valuation model based on the closing market price of the Company’s common stock on the date of grant and is amortized ratably on a straight-line basis over the requisite period. For the performance condition, the Company reviews the probability of achieving this goal on a periodic basis. If the Company determines that it is probable that the performance criteria will be achieved, the amount of compensation cost derived for this performance metric is amortized over the anticipated service period. If these criteria are not met, no compensation cost is recognized and any previously recognized compensation cost would be reversed. For both conditions, compensation expense is charged to selling, general and administrative and research and development expense with a corresponding increase to additional paid-in capital. SCHEDULE OF PERFORMANCE STOCK UNITS Number of Weighted Aggregate Outstanding at December 31, 2020 265,942 $ 7.91 $ - Forfeited (37,444 ) 7.91 Outstanding at September 30, 2021 228,498 $ 7.91 $ - As of September 30, 2021, there was $ 4,712,464 2.25 The Company had 1,467,554 Warrants All previously granted warrants were issued with an exercise price that was equal to or above the fair market value of the Company’s common stock on the date of grant. As of September 30, 2021, the Company had no remaining warrants available to exercise. During the nine months ended September 30, 2021, there were 9,000 2.20

COMMON STOCK

COMMON STOCK	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
COMMON STOCK	8. COMMON STOCK On June 23, 2020, the Company completed a public offering of 1,769,230 6.50 10,710,000 141,000

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is not aware of any infringement by the Company’s products or technology on the proprietary rights of others. The Company is not currently involved in any legal or regulatory proceeding, or arbitration, the outcome of which is expected to have a material effect on its business.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Restatement of Previously Issued Financial Statements	Restatement of Previously Issued Financial Statements On May 16, 2022, management in concurrence with the Company’s Audit Committee of our Board of Directors (the “Audit Committee”), concluded that that the financial statements previously issued as of and for the three and nine months ended September 30, 2021 and 2020, should no longer be relied upon due to errors in accounting for certain option awards. Accordingly, we are restating our Balance Sheets, Statements of Operations, Statements of Stockholders’ Equity, Statements of Cash Flows and the related notes as of and for the three and nine months ended September 30, 2021 and 2020. Specifically, the Company determined that a cashless withholding to satisfy personal income tax obligations from certain option awards exercised commencing in the third quarter of 2020 and the first quarter of 2021, caused the underlying options to no longer qualify as equity awards and should have instead been classified as liability awards commencing on the date of exercise. The change in the classification of the awards to liability classified awards requires the Company to remeasure the fair value of the awards at the end of each reporting period they remain outstanding, with the increase or decrease in fair value correspondingly charged or credited to selling, general and administrative expenses in arriving at net income (loss). Furthermore, the Company, due to an administrative error, failed to sell the shares surrendered in 2021 and did not remit the equivalent amount of funds to the tax authorities. To date, the Company has not returned the shares or otherwise reimbursed the effected individuals for the shares withheld. The Company is currently in the process of arranging payment to the individuals, which is expected to be completed during the quarter ending June 30, 2022. These errors resulted in misstatements to our Balance Sheets, Statements of Operations, Statements of Stockholders’ Equity, and Statements of Cash Flows as of and for the three and nine months ended September 30, 2021 and 2020, as follows: SCHEDULE OF ERRORS RESULTED IN MISSTATEMENTS As of September 30, 2021 As Previously Restatement As Reported Adjustment Restated BALANCE SHEET Equity awards liability $ - 782,834 $ 782,834 Liability for shares withheld $ - 1,244,458 $ 1,244,458 Total current liabilities $ 4,049,625 2,027,292 $ 6,076,917 Total liabilities $ 4,059,362 2,027,292 $ 6,086,654 Common stock (dollars) $ 18,736 (92 ) $ 18,644 Additional paid-in capital $ 140,905,895 4,751,432 $ 145,657,327 Accumulated deficit $ (119,126,799 ) (6,778,632 ) $ (125,905,431 ) Total stockholders’ equity $ 21,797,832 (2,027,292 ) $ 19,770,540 Common stock (shares) 18,735,915 (92,634 ) 18,643,281 For the three months ended September 30, 2021 As Previously Restatement As Reported Adjustment Restated STATEMENT OF OPERATIONS Selling, general and administrative expenses $ 2,856,794 73,479 $ 2,930,273 Total operating expenses $ 4,272,460 73,479 $ 4,345,939 Loss from operations $ (951,821 ) (73,479 ) $ (1,025,300 ) Net loss $ (952,233 ) (73,479 ) $ (1,025,712 ) PER SHARE INFORMATION Loss per common share Basic and Diluted $ (0.05 ) (0.01 ) $ (0.06 ) Weighted average common shares used in computing per share amounts -Basic and Diluted 18,735,097 (92,634 ) 18,642,463 For the nine months ended September 30, 2021 As Previously Restatement As Reported Adjustment Restated STATEMENT OF OPERATIONS Selling, general and administrative expenses $ 7,951,970 3,736,238 $ 11,688,208 Total operating expenses $ 12,056,501 3,736,238 $ 15,792,739 Loss from operations $ (2,765,424 ) (3,736,238 ) $ (6,501,662 ) Net loss $ (2,750,084 ) (3,736,238 ) $ (6,486,322 ) PER SHARE INFORMATION Loss per common share Basic and Diluted $ (0.15 ) (0.20 ) $ (0.35 ) Weighted average common shares used in computing per share amounts - Basic and Diluted 18,653,823 (73,811 ) 18,580,012 For the three months ended September 30, 2020 As Previously Restatement As Reported Adjustment Restated STATEMENT OF OPERATIONS Selling, general and administrative expenses $ 1,472,094 3,042,394 $ 4,514,488 Total operating expenses $ 2,379,857 3,042,394 $ 5,422,251 Income (loss) from operations $ 25,419 (3,042,394 ) $ (3,016,975 ) Net income (loss) $ 32,412 (3,042,394 ) $ (3,009,982 ) PER SHARE INFORMATION Income (loss) per common share Basic and Diluted $ 0.00 (0.16 ) $ (0.16 ) Weighted average common shares used in computing per share amounts - Basic 18,336,107 - 18,336,107 Diluted 18,764,994 (428,887 ) 18,336,107 For the nine months ended September 30, 2020 As Previously Restatement As Reported Adjustment /Restated STATEMENT OF OPERATIONS Selling, general and administrative expenses $ 4,341,985 3,042,394 $ 7,384,379 Total operating expenses $ 7,179,359 3,042,394 $ 10,221,753 Loss from operations $ (719,445 ) (3,042,394 ) $ (3,761,839 ) Net loss $ (701,259 ) (3,042,394 ) $ (3,743,653 ) PER SHARE INFORMATION Loss per common share Basic and Diluted $ (0.04 ) (0.18 ) $ (0.22 ) Weighted average common shares used in computing per share amounts - Basic and Diluted 16,960,770 - 16,960,770 For the three months ended September 30, 2021 As Previously Restatement As Reported Adjustment Restated STATEMENT OF STOCKHOLDERS’ EQUITY Net loss $ (952,233 ) (73,479 ) $ (1,025,712 ) Common stock (shares) 18,735,915 (92,634 ) 18,643,281 Common stock (dollars) $ 18,736 (92 ) $ 18,644 Additional paid-in capital $ 140,905,895 4,751,432 $ 145,657,327 Accumulated deficit $ (119,126,799 ) (6,778,632 ) $ (125,905,431 ) Total stockholders’ equity $ 21,797,832 (2,027,292 ) $ 19,770,540 For the nine months ended September 30, 2021 As Previously Restatement As Reported Adjustment Restated STATEMENT OF STOCKHOLDERS’ EQUITY Exercise of stock options, net of cashless exercise of 58,122 92,634 $ 46,470 1,708,946 $ 1,755,416 Net loss $ (2,750,084 ) (3,736,238 ) $ (6,486,322 ) Common stock (shares) 18,735,915 (92,634 ) 18,643,281 Common stock (dollars) $ 18,736 (92 ) $ 18,644 Additional paid-in capital $ 140,905,895 4,751,432 $ 145,657,327 Accumulated deficit $ (119,126,799 ) (6,778,632 ) $ (125,905,431 ) Total stockholders’ equity $ 21,797,832 (2,027,292 ) $ 19,770,540 Three months ended September 30, 2020 As Previously Restatement As Reported Adjustment Restated STATEMENT OF STOCKHOLDERS’ EQUITY Exercise of liability awards $ - 3,042,394 $ 3,042,394 Net income (loss) $ 32,412 (3,042,394 ) $ (3,009,982 ) Accumulated deficit $ (117,636,371 ) (3,042,394 ) $ (120,678,765 ) Additional paid-in capital $ 138,411,649 3,042,394 $ 141,454,043 Total stockholders’ equity $ 20,793,668 - $ 20,793,668 Nine months ended September 30, 2020 As Previously Restatement As Reported Adjustment Restated STATEMENT OF STOCKHOLDERS’ EQUITY Exercise of liability awards $ - 3,042,394 $ 3,042,394 Net loss $ (701,259 ) (3,042,394 ) $ (3,743,653 ) Accumulated deficit $ (117,636,371 ) (3,042,394 ) $ (120,678,765 ) Additional paid-in capital $ 138,411,649 3,042,394 $ 141,454,043 Total stockholders’ equity $ 20,793,668 - $ 20,793,668 For the nine months ended September 30, 2021 As Previously Restatement As Reported Adjustment Restated STATEMENT OF CASH FLOWS Net loss $ (2,750,084 ) (3,736,238 ) $ (6,486,322 ) Equity compensation $ 2,270,205 3,736,238 $ 6,006,443 Supplemental disclosure of noncash investing and financing activities: Reclassification of stock option awards $ - 1,411,108 $ 1,411,108 For the nine months ended September 30, 2020 As Previously Restatement As Reported Adjustment Restated STATEMENT OF CASH FLOWS Net loss $ (701,259 ) (3,042,394 ) $ (3,743,653 ) Equity compensation $ 286,909 3,042,394 $ 3,329,303 The correction of the errors had no effect on net cash used in operating activities for either period.
Basis of Presentation	Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles in the United States of America for complete financial statements. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments necessary for a fair presentation of the Company’s financial position at September 30, 2021 and the results of operations, stockholders’ equity and cash flows for the nine months ended September 30, 2021 and 2020. All such adjustments are of a normal and recurring nature. Interim financial statements are prepared on a basis consistent with the Company’s annual financial statements. Results of operations for the nine-month period ended September 30, 2021, are not necessarily indicative of the operating results that may be expected for the year ending December 31, 2021. As noted in the Explanatory Note, the Company has filed this Form 10-Q/A to amend our Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2021, originally filed with the SEC on November 11, 2021 (the “Original Form 10-Q”), to restate our Financial Statements and related footnote disclosures as of and for the three and nine months ended September 30, 2021 and 2020. The balance sheet as of December 31, 2020 has been derived from the audited financial statements at that date, as restated, but does not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. References in this Quarterly Report on Form 10-Q to “authoritative guidance” is to the Accounting Standards Codification issued by the Financial Accounting Standards Board (“FASB”). For further information, refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
Use of Estimates	Use of Estimates The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the Company’s financial statements and accompanying notes. Significant estimates and assumptions that affect amounts reported in the financial statements include impairment consideration and valuation of goodwill and intangible assets, deferred tax valuation allowances, and the fair value of stock options granted under the Company’s equity compensation plan. Due to the inherent uncertainties involved in making estimates, actual results reported in future periods may be different from those estimates.As discussed above, certain option awards no longer qualify as equity awards and instead are being classified as liability awards. ASC 718 establishes fair value as the measurement objective in accounting for equity payment arrangements and requires all companies to apply a fair value based measurement method in accounting for all equity payment transactions with employees. The company determined the fair value of these awards utilizing a Black-Scholes option pricing model. Financial Accounting Standards Board (“FASB”) guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: ● Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities. ● Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active). Level 2 includes financial instruments that are valued using models or other valuation methodologies. The Company had $ 782,834 ● Level 3—Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when the fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable. The Company had no
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, credit quality of the Company’s customers, current economic conditions and other factors that may affect customers’ ability to pay.
Goodwill	Goodwill Goodwill represents the excess of acquisition cost over the fair value of net assets acquired in business combinations. Pursuant to ASC Topic 350, the Company tests goodwill for impairment on an annual basis in the fourth quarter (December 31, 2021), or between annual tests, in certain circumstances. Under authoritative guidance, the Company first assessed qualitative factors to determine whether it was necessary to perform the two-step quantitative goodwill impairment test. An entity is not required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. Events or changes in circumstances which could trigger an impairment review include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, other entity specific events and sustained decrease in share price. There were no
Intangible Assets	Intangible Assets Intangible assets include patents, copyrights, intellectual property rights and licensed software. The Company uses the straight-line method to amortize these assets over their estimated useful lives, as it represents the pattern of economic benefits consumed. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable in accordance with ASC Topic 360. To determine recoverability of its long-lived assets, the Company evaluates the probability that future undiscounted net cash flows, without interest charges, will be less than the carrying amount of the assets. There were no
Income Taxes	Income Taxes The Company accounts for income taxes under in accordance with ASC Topic 740, “Accounting for Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using expected tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The Company has recorded a full valuation allowance for its net deferred tax assets as of September 30, 2021 and December 31, 2020, due to the uncertainty of the realizability of those assets.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company adheres to the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”. This pronouncement requires that the Company calculate the fair value of financial instruments and include this additional information in the notes to financial statements when the fair value is different than the book value of those financial instruments. The Company’s financial instruments include cash, accounts receivable, accounts payable and accrued expenses. As of September 30, 2021 and December 31, 2020, the carrying value of the Company’s financial instruments approximated fair value, due to their short-term nature.
Revenue Recognition and Deferred Revenue	Revenue Recognition and Deferred Revenue General Most license fees and services revenue are generated from a combination of fixed-price and per-scan contracts. Under the per-scan revenue model, customers are charged a fee each time the customer scans an identity document, such as a driver’s license, with the Company’s software. Under the fixed-price revenue model customers are charged a fixed monthly fee either per device or physical business location to access the Company’s software. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration expected to be received in exchange for those goods or services. The Company measures revenue based on the consideration specified in a customer arrangement, and revenue is recognized when the performance obligations in an arrangement are satisfied. A performance obligation is a promise in a contract to transfer a distinct service to the customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as, the customer receives the benefit of the performance obligation. Customers typically receive the benefit of the Company’s services as they are performed. Substantially all customer contracts provide that the Company is compensated for services performed to date. Invoicing is based on schedules established in customer contracts. Payment terms are generally established from 30 to 60 days from the invoice date. Product returns are recorded as a reduction to revenue. Nature of goods and services The following is a description of the products and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each: Software as a Service (SaaS) Software as a service (SaaS) for hosted subscription services and licensed software allows customers to access a set of data for a predetermined period of time. As the customer obtains access at a point in time but continues to have access for the remainder of the subscription period, the customer is considered to simultaneously receive and consume the benefits provided by the entity’s performance as the entity performs. Accordingly, the revenue should be recognized over time based on the usage of the hosted subscription services and licensed software, which can vary from month to month. The revenue is typically based either on a formula such as number of locations using the service in a given month multiplied by a fee per location or the number of actual scans in a given month multiplied by a set price per scan based on the contract with the customer. Other Subscription and Support Services The Company also recognizes revenues from other subscription and support services, which includes jurisdictional updates to certain commercial customers and support services particularly to its Defense ID® customers. These subscriptions require continuing service or post contractual customer support and performance. As the customer obtains access at a point in time but continues to have access for the remainder of the subscription period, the customer is considered to simultaneously receive and consume the benefits provided by the entity’s performance as the entity performs. Accordingly, the revenue should be recognized over time based on usage, which can vary from month to month. The revenue is typically based on a formula such as number of locations in a given month multiplied by a fee per location. Equipment Revenue Revenue from the sale of equipment is recognized at a point in time. The point in time that the revenue is recognized is when the customer has control of the equipment which is when the customer receives the benefit and the Company’s performance obligation has been satisfied. Depending on the contract terms, that could either be at the time the equipment is shipped or at the time the equipment is received. Non-Recurring Services Revenue The non-recurring services include items such as training, installation, customization, and configuration. The Company recognizes revenue from non-recurring services contracts ratably over the service contract period as the customer consumes the benefit as it is provided and the Company’s performance obligation has been satisfied. Extended Warranty Extended warranty revenues are generated when a warranty is provided to the customer separately of other performance obligations when the equipment is sold. As the customer obtains access at a point in time and continues to have access for the remainder of the warranty term, the customer is considered to simultaneously receive and consume the benefits provided by the Company’s performance as the Company performs. The related revenue is recognized ratably over the specified term of the warranty period. The extended warranty is separate to the Company’s standard warranty of usually one year that it receives from its vendor. Disaggregation of revenue In the following tables, revenue is disaggregated by product and service and the timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue. SCHEDULE OF DISAGGREGATION OF REVENUE For the Three Months Ended 2021 2020 Products and services Software as a Service (SaaS) $ 3,245,274 $ 2,451,381 Other subscription and support services 3,282 36,346 Equipment 1,470,333 176,061 Non-recurring services 12,000 29,000 Extended warranties on equipment 1,405 5,058 Other 98,935 1,129 Revenues $ 4,831,229 $ 2,698,975 Timing of revenue recognition Products transferred at a point in time $ 1,569,268 $ 177,190 Services transferred over time 3,261,961 2,521,785 Revenues $ 4,831,229 $ 2,698,975 For the Nine Months Ended 2021 2020 Products and services Software as a Service (SaaS) $ 9,254,591 $ 6,361,150 Other subscription and support services 22,588 186,280 Equipment 2,931,980 1,011,608 Non-recurring services 65,200 70,450 Extended warranties on equipment 7,009 17,232 Other 209,543 9,722 $ 12,490,911 $ 7,656,442 Timing of revenue recognition Products transferred at a point in time $ 3,141,523 $ 1,021,330 Services transferred over time 9,349,388 6,635,112 Revenues $ 12,490,911 $ 7,656,442 Contract balances The current portion of deferred revenue at September 30, 2021 and December 31, 2020 was $ 1,372,311 402,782 48,378 383,162 9,737 8,662 The Company did not recognize any material revenue in the current reporting period for performance obligations that were fully satisfied in previous periods. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period: SCHEDULE OF REVENUE PERFORMANCE OBLIGATION Remainder 2021 2022 2023 Total Software as a Service (SaaS) $ 550,647 $ 812,288 $ 3,136 $ 1,366,071 Other subscription and support services 3,086 5,649 2,602 11,337 Extended warranties on equipment 1,097 2,324 1,219 4,640 $ 554,830 $ 820,261 $ 6,957 $ 1,382,048 All consideration from contracts with customers is included in the amounts presented above.
Business Concentrations and Credit Risk	Business Concentrations and Credit Risk During the three and nine-month periods ended September 30, 2021, the Company made sales to two customers that accounted for approximately 60 58 28 46 37
Net Loss Per Share	Net Loss Per Share Basic net loss per share is computed by dividing the net loss for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss for the period by the weighted average number of shares of common stock and potentially dilutive common stock equivalents outstanding during the period. The dilutive effect of outstanding options, warrants and restricted stock is reflected in diluted earnings per share by application of the treasury stock method. The calculation of diluted net loss per share excludes all anti-dilutive shares. In the periods of a net loss, all common stock equivalents are considered anti-dilutive. SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Numerator: Net loss $ (1,025,712 ) $ (3,009,982 ) $ (6,486,322 ) $ (3,743,653 ) Denominator: Weighted average common shares – Basic and Diluted 18,642,463 18,336,107 18,580,012 16,960,770 Net loss per share – Basic and Diluted $ (0.06 ) $ (0.16 ) $ (0.35 ) $ (0.22 ) The following table summarizes the common stock equivalents excluded from loss per diluted share because their effect would be anti-dilutive to the net loss: SUMMARY OF COMMON STOCK EQUIVALENTS EXCLUDED FROM LOSS PER DILUTED SHARE Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Stock options 502,424 653,882 502,424 653,882 Warrants - 12,680 - 12,680 Restricted stock 408,657 4,499 408,657 4,499 Performance stock units 228,498 265,942 228,498 265,942 1,139,579 937,003 1,139,579 937,003

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
SCHEDULE OF ERRORS RESULTED IN MISSTATEMENTS	These errors resulted in misstatements to our Balance Sheets, Statements of Operations, Statements of Stockholders’ Equity, and Statements of Cash Flows as of and for the three and nine months ended September 30, 2021 and 2020, as follows: SCHEDULE OF ERRORS RESULTED IN MISSTATEMENTS As of September 30, 2021 As Previously Restatement As Reported Adjustment Restated BALANCE SHEET Equity awards liability $ - 782,834 $ 782,834 Liability for shares withheld $ - 1,244,458 $ 1,244,458 Total current liabilities $ 4,049,625 2,027,292 $ 6,076,917 Total liabilities $ 4,059,362 2,027,292 $ 6,086,654 Common stock (dollars) $ 18,736 (92 ) $ 18,644 Additional paid-in capital $ 140,905,895 4,751,432 $ 145,657,327 Accumulated deficit $ (119,126,799 ) (6,778,632 ) $ (125,905,431 ) Total stockholders’ equity $ 21,797,832 (2,027,292 ) $ 19,770,540 Common stock (shares) 18,735,915 (92,634 ) 18,643,281 For the three months ended September 30, 2021 As Previously Restatement As Reported Adjustment Restated STATEMENT OF OPERATIONS Selling, general and administrative expenses $ 2,856,794 73,479 $ 2,930,273 Total operating expenses $ 4,272,460 73,479 $ 4,345,939 Loss from operations $ (951,821 ) (73,479 ) $ (1,025,300 ) Net loss $ (952,233 ) (73,479 ) $ (1,025,712 ) PER SHARE INFORMATION Loss per common share Basic and Diluted $ (0.05 ) (0.01 ) $ (0.06 ) Weighted average common shares used in computing per share amounts -Basic and Diluted 18,735,097 (92,634 ) 18,642,463 For the nine months ended September 30, 2021 As Previously Restatement As Reported Adjustment Restated STATEMENT OF OPERATIONS Selling, general and administrative expenses $ 7,951,970 3,736,238 $ 11,688,208 Total operating expenses $ 12,056,501 3,736,238 $ 15,792,739 Loss from operations $ (2,765,424 ) (3,736,238 ) $ (6,501,662 ) Net loss $ (2,750,084 ) (3,736,238 ) $ (6,486,322 ) PER SHARE INFORMATION Loss per common share Basic and Diluted $ (0.15 ) (0.20 ) $ (0.35 ) Weighted average common shares used in computing per share amounts - Basic and Diluted 18,653,823 (73,811 ) 18,580,012 For the three months ended September 30, 2020 As Previously Restatement As Reported Adjustment Restated STATEMENT OF OPERATIONS Selling, general and administrative expenses $ 1,472,094 3,042,394 $ 4,514,488 Total operating expenses $ 2,379,857 3,042,394 $ 5,422,251 Income (loss) from operations $ 25,419 (3,042,394 ) $ (3,016,975 ) Net income (loss) $ 32,412 (3,042,394 ) $ (3,009,982 ) PER SHARE INFORMATION Income (loss) per common share Basic and Diluted $ 0.00 (0.16 ) $ (0.16 ) Weighted average common shares used in computing per share amounts - Basic 18,336,107 - 18,336,107 Diluted 18,764,994 (428,887 ) 18,336,107 For the nine months ended September 30, 2020 As Previously Restatement As Reported Adjustment /Restated STATEMENT OF OPERATIONS Selling, general and administrative expenses $ 4,341,985 3,042,394 $ 7,384,379 Total operating expenses $ 7,179,359 3,042,394 $ 10,221,753 Loss from operations $ (719,445 ) (3,042,394 ) $ (3,761,839 ) Net loss $ (701,259 ) (3,042,394 ) $ (3,743,653 ) PER SHARE INFORMATION Loss per common share Basic and Diluted $ (0.04 ) (0.18 ) $ (0.22 ) Weighted average common shares used in computing per share amounts - Basic and Diluted 16,960,770 - 16,960,770 For the three months ended September 30, 2021 As Previously Restatement As Reported Adjustment Restated STATEMENT OF STOCKHOLDERS’ EQUITY Net loss $ (952,233 ) (73,479 ) $ (1,025,712 ) Common stock (shares) 18,735,915 (92,634 ) 18,643,281 Common stock (dollars) $ 18,736 (92 ) $ 18,644 Additional paid-in capital $ 140,905,895 4,751,432 $ 145,657,327 Accumulated deficit $ (119,126,799 ) (6,778,632 ) $ (125,905,431 ) Total stockholders’ equity $ 21,797,832 (2,027,292 ) $ 19,770,540 For the nine months ended September 30, 2021 As Previously Restatement As Reported Adjustment Restated STATEMENT OF STOCKHOLDERS’ EQUITY Exercise of stock options, net of cashless exercise of 58,122 92,634 $ 46,470 1,708,946 $ 1,755,416 Net loss $ (2,750,084 ) (3,736,238 ) $ (6,486,322 ) Common stock (shares) 18,735,915 (92,634 ) 18,643,281 Common stock (dollars) $ 18,736 (92 ) $ 18,644 Additional paid-in capital $ 140,905,895 4,751,432 $ 145,657,327 Accumulated deficit $ (119,126,799 ) (6,778,632 ) $ (125,905,431 ) Total stockholders’ equity $ 21,797,832 (2,027,292 ) $ 19,770,540 Three months ended September 30, 2020 As Previously Restatement As Reported Adjustment Restated STATEMENT OF STOCKHOLDERS’ EQUITY Exercise of liability awards $ - 3,042,394 $ 3,042,394 Net income (loss) $ 32,412 (3,042,394 ) $ (3,009,982 ) Accumulated deficit $ (117,636,371 ) (3,042,394 ) $ (120,678,765 ) Additional paid-in capital $ 138,411,649 3,042,394 $ 141,454,043 Total stockholders’ equity $ 20,793,668 - $ 20,793,668 Nine months ended September 30, 2020 As Previously Restatement As Reported Adjustment Restated STATEMENT OF STOCKHOLDERS’ EQUITY Exercise of liability awards $ - 3,042,394 $ 3,042,394 Net loss $ (701,259 ) (3,042,394 ) $ (3,743,653 ) Accumulated deficit $ (117,636,371 ) (3,042,394 ) $ (120,678,765 ) Additional paid-in capital $ 138,411,649 3,042,394 $ 141,454,043 Total stockholders’ equity $ 20,793,668 - $ 20,793,668 For the nine months ended September 30, 2021 As Previously Restatement As Reported Adjustment Restated STATEMENT OF CASH FLOWS Net loss $ (2,750,084 ) (3,736,238 ) $ (6,486,322 ) Equity compensation $ 2,270,205 3,736,238 $ 6,006,443 Supplemental disclosure of noncash investing and financing activities: Reclassification of stock option awards $ - 1,411,108 $ 1,411,108 For the nine months ended September 30, 2020 As Previously Restatement As Reported Adjustment Restated STATEMENT OF CASH FLOWS Net loss $ (701,259 ) (3,042,394 ) $ (3,743,653 ) Equity compensation $ 286,909 3,042,394 $ 3,329,303
SCHEDULE OF DISAGGREGATION OF REVENUE	In the following tables, revenue is disaggregated by product and service and the timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue. SCHEDULE OF DISAGGREGATION OF REVENUE For the Three Months Ended 2021 2020 Products and services Software as a Service (SaaS) $ 3,245,274 $ 2,451,381 Other subscription and support services 3,282 36,346 Equipment 1,470,333 176,061 Non-recurring services 12,000 29,000 Extended warranties on equipment 1,405 5,058 Other 98,935 1,129 Revenues $ 4,831,229 $ 2,698,975 Timing of revenue recognition Products transferred at a point in time $ 1,569,268 $ 177,190 Services transferred over time 3,261,961 2,521,785 Revenues $ 4,831,229 $ 2,698,975 For the Nine Months Ended 2021 2020 Products and services Software as a Service (SaaS) $ 9,254,591 $ 6,361,150 Other subscription and support services 22,588 186,280 Equipment 2,931,980 1,011,608 Non-recurring services 65,200 70,450 Extended warranties on equipment 7,009 17,232 Other 209,543 9,722 $ 12,490,911 $ 7,656,442 Timing of revenue recognition Products transferred at a point in time $ 3,141,523 $ 1,021,330 Services transferred over time 9,349,388 6,635,112 Revenues $ 12,490,911 $ 7,656,442
SCHEDULE OF REVENUE PERFORMANCE OBLIGATION	The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period: SCHEDULE OF REVENUE PERFORMANCE OBLIGATION Remainder 2021 2022 2023 Total Software as a Service (SaaS) $ 550,647 $ 812,288 $ 3,136 $ 1,366,071 Other subscription and support services 3,086 5,649 2,602 11,337 Extended warranties on equipment 1,097 2,324 1,219 4,640 $ 554,830 $ 820,261 $ 6,957 $ 1,382,048
SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED	SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Numerator: Net loss $ (1,025,712 ) $ (3,009,982 ) $ (6,486,322 ) $ (3,743,653 ) Denominator: Weighted average common shares – Basic and Diluted 18,642,463 18,336,107 18,580,012 16,960,770 Net loss per share – Basic and Diluted $ (0.06 ) $ (0.16 ) $ (0.35 ) $ (0.22 )
SUMMARY OF COMMON STOCK EQUIVALENTS EXCLUDED FROM LOSS PER DILUTED SHARE	The following table summarizes the common stock equivalents excluded from loss per diluted share because their effect would be anti-dilutive to the net loss: SUMMARY OF COMMON STOCK EQUIVALENTS EXCLUDED FROM LOSS PER DILUTED SHARE Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Stock options 502,424 653,882 502,424 653,882 Warrants - 12,680 - 12,680 Restricted stock 408,657 4,499 408,657 4,499 Performance stock units 228,498 265,942 228,498 265,942 1,139,579 937,003 1,139,579 937,003

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS	The changes in the carrying amount of intangible assets for the nine months ended September 30, 2021 were as follows: SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS Net balance at December 31, 2020 $ 482,591 Deduction: Amortization expense (78,735 ) Net balance at September 30, 2021 $ 403,856
SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS AMORTIZATION EXPENSE	The following summarizes amortization of intangible assets included in the accompanying statements of operations: SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS AMORTIZATION EXPENSE Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Cost of sales $ 23,676 $ 23,677 $ 71,029 $ 57,696 General and administrative 2,569 2,568 7,706 7,705 Amortization of intangible assets $ 26,245 $ 26,245 $ 78,735 $ 65,401

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	9 Months Ended
	Sep. 30, 2021
Payables and Accruals [Abstract]
SCHEDULE OF ACCRUED EXPENSES	Accrued expenses are comprised of the following: SCHEDULE OF ACCRUED EXPENSES September 30, 2021 December 31, 2020 Professional fees $ 144,050 $ 123,787 Payroll and related 1,131,424 604,302 Incentive bonuses 1,100,808 834,910 Other 69,252 75,799 Accrued expenses $ 2,445,534 $ 1,638,798

EQUITY COMPENSATION (Tables)

EQUITY COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2021
Share-Based Payment Arrangement [Abstract]
SCHEDULE OF STOCK BASED COMPENSATION	SCHEDULE OF STOCK BASED COMPENSATION Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Compensation cost recognized: Selling, general & administrative $ 613,667 $ 3,130,905 $ 5,536,418 $ 3,307,152 Research & development 98,401 8,646 470,025 22,151 Share-based compensation expenses $ 712,068 $ 3,139,551 $ 6,006,443 $ 3,329,303
SCHEDULE OF STOCK OPTION ACTIVITY	Stock option activity under the 2015 Stock Option Plan (the “Plan”) during the period indicated below were as follows: SCHEDULE OF STOCK OPTION ACTIVITY Number of Shares Subject to Issuance Weighted-average Exercise Price Weighted-average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2020 637,882 $ 2.50 2.55 $ 5,686,421 Granted 221,843 10.38 Exercised (357,301 ) 2.34 Outstanding at September 30, 2021 502,424 $ 6.09 3.25 $ 1,548,558 Exercisable at September 30, 2021 135,859 $ 2.72 2.14 $ 743,173
SCHEDULE OF RESTRICTED STOCK UNITS OUTSTANDING	The compensation expense incurred by the Company for RSUs is based on the closing market price of the Company’s common stock on the date of grant and is amortized ratably on a straight-line basis over the requisite service period and charged to general and administrative expense with a corresponding increase to additional paid-in capital. SCHEDULE OF RESTRICTED STOCK UNITS OUTSTANDING Number of Weighted Aggregate Outstanding at December 31, 2020 1,754 $ 11.40 $ - Granted 428,831 10.49 Vested and settled in shares (17,278 ) 8.68 Forfeited (4,650 ) 11.50 Outstanding at September 30, 2021 408,657 $ 10.56 $ 7,905
SCHEDULE OF PERFORMANCE STOCK UNITS	SCHEDULE OF PERFORMANCE STOCK UNITS Number of Weighted Aggregate Outstanding at December 31, 2020 265,942 $ 7.91 $ - Forfeited (37,444 ) 7.91 Outstanding at September 30, 2021 228,498 $ 7.91 $ -

NATURE OF BUSINESS (Details Nar

NATURE OF BUSINESS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of patents, description			Intellicheck continues to develop and release innovative products based upon its rich patent portfolio consisting of nineteen issued patents and four pending patents.
Net loss	$ (1,025,712)	$ (3,009,982)	$ (6,486,322)	$ (3,743,653)
Net cash provided by operating activities			407,331	$ (310,922)
Cash	13,266,031		13,266,031		$ 13,121,392
Working capital	10,835,919		10,835,919
Accumulated deficit	$ 125,905,431		$ 125,905,431		$ 119,419,109

SCHEDULE OF ERRORS RESULTED IN

SCHEDULE OF ERRORS RESULTED IN MISSTATEMENTS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Equity awards liability	$ 782,834		$ 782,834
Liability for shares withheld	1,244,458		1,244,458
Total current liabilities	6,076,917		6,076,917			2,120,371
Total liabilities	6,086,654		6,086,654			2,129,033
Common stock (dollars)	18,644		18,644			18,410
Additional paid-in capital	145,657,327		145,657,327			141,612,140
Accumulated deficit	(125,905,431)		(125,905,431)			(119,419,109)
Total stockholders’ equity	$ 19,770,540	$ 20,793,668	$ 19,770,540	$ 20,793,668	$ 20,157,663	$ 22,211,441	$ 22,064,442	$ 11,749,513
Common stock (shares)	18,643,281		18,643,281			18,410,458
Selling, general and administrative expenses	$ 2,930,273	4,514,488	$ 11,688,208	7,384,379
Total operating expenses	4,345,939	5,422,251	15,792,739	10,221,753
Loss from operations	(1,025,300)	(3,016,975)	(6,501,662)	(3,761,839)
Net loss	$ (1,025,712)	$ (3,009,982)	$ (6,486,322)	$ (3,743,653)
Basic and Diluted	$ (0.06)	$ (0.16)	$ (0.35)	$ (0.22)
Basic and Diluted	18,642,463	18,336,107	18,580,012	16,960,770
Diluted	18,642,463	18,336,107	18,580,012	16,960,770
Ending balance, value	$ 19,770,540	$ 20,793,668	$ 19,770,540	$ 20,793,668
Exercise of stock options, net of cashless exercise of 58,122 shares and 92,634 shares withheld		29,350	1,755,416	168,608
Exercise of liability awards		3,042,394		3,042,394
Equity compensation	712,068	3,139,551	6,006,443	3,329,303
Supplemental disclosure of noncash investing and financing activities:
Reclassification of stock option awards			1,411,108
Common Stock [Member]
Total stockholders’ equity	18,644	18,390	18,644	18,390	18,636	$ 18,410	18,028	16,042
Net loss
Balance, shares	18,643,281	18,390,229	18,643,281	18,390,229
Ending balance, value	$ 18,644	$ 18,390	$ 18,644	$ 18,390
Exercise of stock options, net of cashless exercise of 58,122 shares and 92,634 shares withheld		527	207	674
Exercise of liability awards
Additional Paid-in Capital [Member]
Total stockholders’ equity	145,657,327	141,454,043	145,657,327	141,454,043	145,018,746	141,612,140	139,715,197	128,668,583
Net loss
Ending balance, value	145,657,327	141,454,043	145,657,327	141,454,043
Exercise of stock options, net of cashless exercise of 58,122 shares and 92,634 shares withheld		28,823	1,755,209	167,934
Exercise of liability awards		3,042,394		3,042,394
Retained Earnings [Member]
Total stockholders’ equity	(125,905,431)	(120,678,765)	(125,905,431)	(120,678,765)	$ (124,879,719)	$ (119,419,109)	$ (117,668,783)	$ (116,935,112)
Net loss	(1,025,712)	(3,009,982)	(6,486,322)	(3,743,653)
Ending balance, value	(125,905,431)	(120,678,765)	(125,905,431)	(120,678,765)
Exercise of stock options, net of cashless exercise of 58,122 shares and 92,634 shares withheld
Exercise of liability awards
Previously Reported [Member]
Equity awards liability
Liability for shares withheld
Total current liabilities	4,049,625		4,049,625
Total liabilities	4,059,362		4,059,362
Common stock (dollars)	18,736		18,736
Additional paid-in capital	140,905,895		140,905,895
Accumulated deficit	(119,126,799)		(119,126,799)
Total stockholders’ equity	$ 21,797,832	20,793,668	$ 21,797,832	20,793,668
Common stock (shares)	18,735,915		18,735,915
Selling, general and administrative expenses	$ 2,856,794	1,472,094	$ 7,951,970	4,341,985
Total operating expenses	4,272,460	2,379,857	12,056,501	7,179,359
Loss from operations	(951,821)	25,419	(2,765,424)	(719,445)
Net loss	$ (952,233)	$ 32,412	$ (2,750,084)	$ (701,259)
Basic and Diluted	$ (0.05)	$ 0	$ (0.15)	$ (0.04)
Basic and Diluted	18,735,097	18,336,107	18,653,823	16,960,770
Diluted		18,764,994
Ending balance, value	$ 21,797,832	$ 20,793,668	$ 21,797,832	$ 20,793,668
Exercise of stock options, net of cashless exercise of 58,122 shares and 92,634 shares withheld			46,470
Exercise of liability awards
Equity compensation			2,270,205	286,909
Supplemental disclosure of noncash investing and financing activities:
Reclassification of stock option awards
Previously Reported [Member] | Common Stock [Member]
Total stockholders’ equity	$ 18,736		$ 18,736
Balance, shares	18,735,915		18,735,915
Ending balance, value	$ 18,736		$ 18,736
Previously Reported [Member] | Additional Paid-in Capital [Member]
Total stockholders’ equity	140,905,895	138,411,649	140,905,895	138,411,649
Ending balance, value	140,905,895	138,411,649	140,905,895	138,411,649
Previously Reported [Member] | Retained Earnings [Member]
Total stockholders’ equity	(119,126,799)	(117,636,371)	(119,126,799)	(117,636,371)
Ending balance, value	(119,126,799)	(117,636,371)	(119,126,799)	(117,636,371)
Revision of Prior Period, Adjustment [Member]
Equity awards liability	782,834		782,834
Liability for shares withheld	1,244,458		1,244,458
Total current liabilities	2,027,292		2,027,292
Total liabilities	2,027,292		2,027,292
Common stock (dollars)	(92)		(92)
Additional paid-in capital	4,751,432		4,751,432
Accumulated deficit	(6,778,632)		(6,778,632)
Total stockholders’ equity	$ (2,027,292)		$ (2,027,292)
Common stock (shares)	(92,634)		(92,634)
Selling, general and administrative expenses	$ 73,479	3,042,394	$ 3,736,238	3,042,394
Total operating expenses	73,479	3,042,394	3,736,238	3,042,394
Loss from operations	(73,479)	(3,042,394)	(3,736,238)	(3,042,394)
Net loss	$ (73,479)	$ (3,042,394)	$ (3,736,238)	$ (3,042,394)
Basic and Diluted	$ (0.01)	$ (0.16)	$ (0.20)	$ (0.18)
Basic and Diluted	(92,634)		(73,811)
Diluted		(428,887)
Ending balance, value	$ (2,027,292)		$ (2,027,292)
Exercise of stock options, net of cashless exercise of 58,122 shares and 92,634 shares withheld			1,708,946
Exercise of liability awards		3,042,394		3,042,394
Equity compensation			3,736,238	3,042,394
Supplemental disclosure of noncash investing and financing activities:
Reclassification of stock option awards			1,411,108
Revision of Prior Period, Adjustment [Member] | Common Stock [Member]
Total stockholders’ equity	$ (92)		$ (92)
Balance, shares	(92,634)		(92,634)
Ending balance, value	$ (92)		$ (92)
Revision of Prior Period, Adjustment [Member] | Additional Paid-in Capital [Member]
Total stockholders’ equity	4,751,432	3,042,394	4,751,432	3,042,394
Ending balance, value	4,751,432	3,042,394	4,751,432	3,042,394
Revision of Prior Period, Adjustment [Member] | Retained Earnings [Member]
Total stockholders’ equity	(6,778,632)	(3,042,394)	(6,778,632)	(3,042,394)
Ending balance, value	$ (6,778,632)	$ (3,042,394)	$ (6,778,632)	$ (3,042,394)

SCHEDULE OF ERRORS RESULTED I_2

SCHEDULE OF ERRORS RESULTED IN MISSTATEMENTS (Details) (Parenthetical) - shares	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2021
Accounting Policies [Abstract]
Exercise of stock options, net of cashless exercise shares	82,161	58,122	93,570	58,122
Exercise of stock options, net of cashless exercise shares withheld		92,634		92,634

SCHEDULE OF DISAGGREGATION OF R

SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Product Information [Line Items]
Revenues	$ 4,831,229	$ 2,698,975	$ 12,490,911	$ 7,656,442
Transferred at Point in Time [Member]
Product Information [Line Items]
Revenues	1,569,268	177,190	3,141,523	1,021,330
Transferred over Time [Member]
Product Information [Line Items]
Revenues	3,261,961	2,521,785	9,349,388	6,635,112
Software as a Service (SaaS) [Member]
Product Information [Line Items]
Revenues	3,245,274	2,451,381	9,254,591	6,361,150
Other Subscription and Support Services [Member]
Product Information [Line Items]
Revenues	3,282	36,346	22,588	186,280
Equipment [Member]
Product Information [Line Items]
Revenues	1,470,333	176,061	2,931,980	1,011,608
Non Recurring Services [Member]
Product Information [Line Items]
Revenues	12,000	29,000	65,200	70,450
Extended Warranties on Equipment [Member]
Product Information [Line Items]
Revenues	1,405	5,058	7,009	17,232
Other [Member]
Product Information [Line Items]
Revenues	$ 98,935	$ 1,129	$ 209,543	$ 9,722

SCHEDULE OF REVENUE PERFORMANCE

SCHEDULE OF REVENUE PERFORMANCE OBLIGATION (Details)	Sep. 30, 2021USD ($)
Product Information [Line Items]
Revenue remaining performance obligations	$ 1,382,048
Software as a Service (SaaS) [Member]
Product Information [Line Items]
Revenue remaining performance obligations	1,366,071
Other Subscription and Support Services [Member]
Product Information [Line Items]
Revenue remaining performance obligations	11,337
Extended Warranties on Equipment [Member]
Product Information [Line Items]
Revenue remaining performance obligations	4,640
Remainder 2021 [Member]
Product Information [Line Items]
Revenue remaining performance obligations	554,830
Remainder 2021 [Member] | Software as a Service (SaaS) [Member]
Product Information [Line Items]
Revenue remaining performance obligations	550,647
Remainder 2021 [Member] | Other Subscription and Support Services [Member]
Product Information [Line Items]
Revenue remaining performance obligations	3,086
Remainder 2021 [Member] | Extended Warranties on Equipment [Member]
Product Information [Line Items]
Revenue remaining performance obligations	1,097
2022 [Member]
Product Information [Line Items]
Revenue remaining performance obligations	820,261
2022 [Member] | Software as a Service (SaaS) [Member]
Product Information [Line Items]
Revenue remaining performance obligations	812,288
2022 [Member] | Other Subscription and Support Services [Member]
Product Information [Line Items]
Revenue remaining performance obligations	5,649
2022 [Member] | Extended Warranties on Equipment [Member]
Product Information [Line Items]
Revenue remaining performance obligations	2,324
2023 [Member]
Product Information [Line Items]
Revenue remaining performance obligations	6,957
2023 [Member] | Software as a Service (SaaS) [Member]
Product Information [Line Items]
Revenue remaining performance obligations	3,136
2023 [Member] | Other Subscription and Support Services [Member]
Product Information [Line Items]
Revenue remaining performance obligations	2,602
2023 [Member] | Extended Warranties on Equipment [Member]
Product Information [Line Items]
Revenue remaining performance obligations	$ 1,219

SCHEDULE OF EARNINGS PER SHARE

SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
Net loss	$ (1,025,712)	$ (3,009,982)	$ (6,486,322)	$ (3,743,653)
Weighted average common shares – Basic and Diluted	18,642,463	18,336,107	18,580,012	16,960,770
Net loss per share –
Basic and Diluted	$ (0.06)	$ (0.16)	$ (0.35)	$ (0.22)

SUMMARY OF COMMON STOCK EQUIVAL

SUMMARY OF COMMON STOCK EQUIVALENTS EXCLUDED FROM LOSS PER DILUTED SHARE (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
	1,139,579	937,003	1,139,579	937,003
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
	502,424	653,882	502,424	653,882
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
		12,680		12,680
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
	408,657	4,499	408,657	4,499
Performance Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
	228,498	265,942	228,498	265,942

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Product Information [Line Items]
Goodwill impairment charges			$ 0	$ 0
Impairment charges of intangible assets			0	$ 0
Deferred revenue, current portion	$ 1,372,311		1,372,311		$ 402,782
Recognized deferred revenue	48,378		383,162
Long-term portion of deferred revenue	$ 9,737		$ 9,737		$ 8,662
Two Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk percentage	60.00%		58.00%
Two Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk percentage		46.00%	28.00%	37.00%
Fair Value, Inputs, Level 2 [Member]
Product Information [Line Items]
Fair value net asset liability	$ 782,834		$ 782,834
Fair Value, Inputs, Level 3 [Member]
Product Information [Line Items]
Fair value net asset liability	$ 0	$ 0	$ 0	$ 0

SCHEDULE OF FINITE-LIVED INTANG

SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Balance at beginning of period			$ 482,591
Deduction: Amortization expense	$ (26,245)	$ (26,245)	(78,735)	$ (65,401)
Balance at end of period	$ 403,856		$ 403,856

SCHEDULE OF FINITE-LIVED INTA_2

SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS AMORTIZATION EXPENSE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Goodwill [Line Items]
Amortization of intangible assets	$ 26,245	$ 26,245	$ 78,735	$ 65,401
Cost of Sales [Member]
Goodwill [Line Items]
Amortization of intangible assets	23,676	23,677	71,029	57,696
General and Administrative Expense [Member]
Goodwill [Line Items]
Amortization of intangible assets	$ 2,569	$ 2,568	$ 7,706	$ 7,705

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($)	Apr. 15, 2020	Sep. 30, 2021	Feb. 06, 2019
Revolving Credit Facility [Member] | Citi Bank [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 2,000,000
Line of credit facility, interest rate description		The facility bears interest at a rate consistent of Citibank’s Base Rate (4.75% at September 30, 2021) minus 2%.
Line of credit facility, unused availability		$ 2,000,000
U.S. Small Business Administration [Member] | CARES Act [Member]
Line of Credit Facility [Line Items]
Proceeds from Notes Payable	$ 10,000

SCHEDULE OF ACCRUED EXPENSES (D

SCHEDULE OF ACCRUED EXPENSES (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Professional fees	$ 144,050	$ 123,787
Payroll and related	1,131,424	604,302
Incentive bonuses	1,100,808	834,910
Other	69,252	75,799
Accrued expenses	$ 2,445,534	$ 1,638,798

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Net operating loss carryforwards		$ 17
Operating loss carryforwards expiration term description	The federal and state NOLs are available to offset future taxable income and begin to expire in 2021.

SCHEDULE OF STOCK BASED COMPENS

SCHEDULE OF STOCK BASED COMPENSATION (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expenses	$ 712,068	$ 3,139,551	$ 6,006,443	$ 3,329,303
Selling, General and Administrative Expenses [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expenses	613,667	3,130,905	5,536,418	3,307,152
Research and Development Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expenses	$ 98,401	$ 8,646	$ 470,025	$ 22,151

SCHEDULE OF STOCK OPTION ACTIVI

SCHEDULE OF STOCK OPTION ACTIVITY (Details) - Stock Option Plans [Member]	9 Months Ended
	Sep. 30, 2021USD ($)$ / sharesshares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Shares Subject to Issuance, Outstanding, Beinning Balance | shares	637,882
Weighted-average Exercise Price, Outstanding, Beinning Balance | $ / shares	$ 2.50
Weighted-average Remaining Contractual Term, Outstanding Beginning Balance	2 years 6 months 18 days
Aggregate Intrinsic Value, Outstanding, Beginning Balance | $	$ 5,686,421
Number of Shares Subject to Issuance, Granted | shares	221,843
Weighted-average Exercise Price, Granted | $ / shares	$ 10.38
Number of Shares Subject to Issuance, Exercised | shares	(357,301)
Weighted-average Exercise Price, Exercised | $ / shares	$ 2.34
Number of Shares Subject to Issuance, Outstanding, Ending Balance | shares	502,424
Weighted-average Exercise Price, Outstanding, Ending Balance | $ / shares	$ 6.09
Weighted-average Remaining Contractual Term, Outstanding Ending Balance	3 years 3 months
Aggregate Intrinsic Value, Outstanding, Ending Balance | $	$ 1,548,558
Number of Shares Subject to Issuance, Exercisable | shares	135,859
Weighted-average Exercise Price, Exercisable | $ / shares	$ 2.72
Weighted-average Remaining Contractual Term, Exercisable	2 years 1 month 20 days
Aggregate Intrinsic Value, Outstanding, Exercisable | $	$ 743,173

SCHEDULE OF RESTRICTED STOCK UN

SCHEDULE OF RESTRICTED STOCK UNITS OUTSTANDING (Details) - Restricted Stock Units (RSUs) [Member]	9 Months Ended
	Sep. 30, 2021USD ($)$ / sharesshares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Shares, Outstanding, Beginning Balance | shares	1,754
Weighted Average Grant Date Fair Value, Outstanding, Beginning Balance | $ / shares	$ 11.40
Aggregate Intrinsic Value Outstanding, Beginning Balance | $
Number of Shares, Granted | shares	428,831
Weighted Average Grant Date Fair Value, Granted | $ / shares	$ 10.49
Number of Shares, Vested and Settled in Shares | shares	(17,278)
Weighted Average Grant Date Fair Value, Vested and Settled in Shares | $ / shares	$ 8.68
Number of Shares, Forfeited in Shares | shares	(4,650)
Weighted Average Grant Date Fair Value, Forfeited in Shares | $ / shares	$ 11.50
Number of Shares, Outstanding, Ending Balance | shares	408,657
Weighted Average Grant Date Fair Value, Outstanding, Ending Balance | $ / shares	$ 10.56
Aggregate Intrinsic Value Outstanding, Ending Balance | $	$ 7,905

SCHEDULE OF PERFORMANCE STOCK U

SCHEDULE OF PERFORMANCE STOCK UNITS (Details) - Performance Shares [Member]	9 Months Ended
	Sep. 30, 2021USD ($)$ / sharesshares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Shares, Outstanding, Beginning Balance | shares	265,942
Weighted Average Grant Date Fair Value, Outstanding, Beginning Balance	$ 7.91
Aggregate Intrinsic Value Outstanding, Beginning Balance
Number of Shares Forfeited | shares	(37,444)
Weighted Average Grant Date Fair Value Forfeited	$ 7.91
Number of Shares, Outstanding, Ending Balance | shares	228,498
Weighted Average Grant Date Fair Value, Outstanding, Ending Balance	$ 7.91
Aggregate Intrinsic Value Outstanding, Ending Balance | $

EQUITY COMPENSATION (Details Na

EQUITY COMPENSATION (Details Narrative) - USD ($)	Aug. 07, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation		$ 712,068	$ 3,139,551	$ 6,006,443	$ 3,329,303
Number of warrants exercised		9,000		9,000
Class of warrants exercise price		$ 2.20		$ 2.20
Performance Shares [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares issued to officers and certain employees	265,942
Vest based on company's market price percentage	50.00%
Vest based on its Adjusted EBITDA percentage	50.00%
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested share-based compensation		$ 4,712,464		$ 4,712,464
Recognized over weight average period				2 years 3 months
Number of shares available for future grants		1,467,554		1,467,554
Revision of Prior Period, Adjustment [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation				$ 3,736,238	$ 3,042,394

COMMON STOCK (Details Narrative

COMMON STOCK (Details Narrative) - IPO [Member]	Jun. 23, 2020USD ($)$ / sharesshares
Subsidiary, Sale of Stock [Line Items]
Number of common stock shares issued | shares	1,769,230
Shares issued price per share | $ / shares	$ 6.50
Proceeds from offering	$ 10,710,000
Direct offering costs	$ 141,000