Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-30542 | |
Entity Registrant Name | DATA443 RISK MITIGATION, INC. | |
Entity Central Index Key | 0001068689 | |
Entity Tax Identification Number | 86-0914051 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 101 J Morris Commons Lane, | |
Entity Address, Address Line Two | Suite 105 | |
Entity Address, City or Town | Morrisville | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27560 | |
City Area Code | (919) | |
Local Phone Number | 858-6542 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 762,880 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash | $ 7,207 | $ 58,783 |
Accounts receivable, net | 114,270 | 136,503 |
Prepaid expense and other current assets | 24,425 | |
Total current assets | 145,902 | 195,286 |
Property and equipment, net | 331,856 | 324,349 |
Operating lease right-of-use assets, net | 212,258 | 248,237 |
Intellectual property, net of accumulated amortization | 1,827,863 | 2,310,907 |
Deposits | 31,440 | 31,440 |
Total Assets | 2,549,319 | 3,110,219 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 411,227 | 401,014 |
Deferred revenue | 1,065,120 | 1,478,430 |
Interest payable | 64,566 | 62,212 |
Notes payable | 1,587,552 | 585,310 |
Convertible notes payable, net of unamortized discount | 114,500 | 1,241,412 |
Due to a related party | 418,507 | 561,230 |
License fee payable | 1,094,691 | |
Operating lease liability | 106,125 | 100,170 |
Finance lease liability | 87,829 | 90,565 |
Total Current Liabilities | 3,855,426 | 5,615,034 |
Series B Preferred Stock, 80,000 shares designated; $0.001 par value; Stated value $10.00 26,650 and 5,300 shares issued and outstanding, net of discount, respectively | 252,702 | 50,203 |
Notes payable - non-current | 1,809,691 | 572,495 |
Convertible notes payable, net of unamortized discount - non-current | 12,273 | 2,356 |
Deferred revenues - non-current | 24,927 | 39,733 |
Operating lease liability - non-current | 182,920 | 237,961 |
Finance lease liability - non-current | 41,914 | 83,109 |
Total Liabilities | 6,179,853 | 6,600,891 |
Commitments and Contingenices | ||
Stockholders’ Deficit | ||
Preferred stock: 337,500 authorized; $0.001 par value Series A Preferred Stock, 150,000 shares designated; $0.001 par value; 150,000 shares issued and outstanding, respectively | 150 | 150 |
Common stock: 1,000,000,000 authorized; $0.001 par value 743,246 and 522,006 shares issued and outstanding, respectively | 743 | 522 |
Additional paid in capital | 35,618,250 | 32,027,240 |
Accumulated deficit | (39,249,677) | (35,518,584) |
Total Stockholders’ Deficit | (3,630,534) | (3,490,672) |
Total Liabilities and Stockholders’ Deficit | $ 2,549,319 | $ 3,110,219 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Temporary equity, shares authorized | 80,000 | 80,000 |
Temporary equity, par value | $ 0.001 | $ 0.001 |
Temporary equity, stated value | $ 10 | $ 10 |
Temporary equity, shares issued | 26,650 | 5,300 |
Temporary equity, shares outstanding | 26,650 | 5,300 |
Preferred stock, shares authorized | 337,500 | 337,500 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares, Issued | 743,246 | 522,006 |
Common Stock, Shares, Outstanding | 743,246 | 522,006 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares authorized | 150,000 | 150,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 150,000 | 150,000 |
Preferred stock, shares outstanding | 150,000 | 150,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 762,352 | $ 465,935 | $ 1,600,220 | $ 943,812 |
Cost of revenue | 96,830 | 9,097 | 263,824 | 53,386 |
Gross profit | 665,522 | 446,838 | 1,336,396 | 890,426 |
Operating expenses | ||||
General and administrative | 1,311,396 | 1,666,196 | 2,744,961 | 3,091,430 |
Sales and marketing | 49,220 | 27,393 | 144,644 | 148,211 |
Total operating expenses | 1,360,616 | 1,693,589 | 2,889,605 | 3,239,641 |
Net loss from operations | (695,094) | (1,246,751) | (1,553,209) | (2,349,215) |
Other income (expense) | ||||
Interest expense | (671,862) | (553,765) | (1,577,288) | (1,072,165) |
Loss on settlement of debt | (227,501) | (54,000) | ||
Change in fair value of derivative liability | (178,398) | (772,664) | (363,654) | (9,278,815) |
Total other income (expense) | (850,260) | (1,326,429) | (2,168,443) | (10,404,980) |
Loss before income taxes | (1,545,354) | (2,573,180) | (3,721,652) | (12,754,195) |
Provision for income taxes | ||||
Net loss | (1,545,354) | (2,573,180) | (3,721,652) | (12,754,195) |
Dividend on Series B Preferred Stock | (5,492) | (9,441) | ||
Net loss attributable to common stockholders | $ (1,550,846) | $ (2,573,180) | $ (3,731,093) | $ (12,754,195) |
Basic and diluted loss per Common Share | $ (2.11) | $ (78.93) | $ (5.54) | $ (639.72) |
Basic and diluted weighted average number of common shares outstanding | 731,440 | 32,602 | 671,586 | 19,937 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($) | Series A Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2019 | $ 1 | $ 9,692 | $ 15,204,771 | $ (21,610,915) | $ (6,396,451) |
Balance, shares at Dec. 31, 2019 | 1,334 | 9,692,065 | |||
Common stock issued for conversion of debt | $ 134,019 | 4,195,140 | 4,329,159 | ||
Common stock issued for conversion of debt, shares | 134,019,210 | ||||
Common stock issued in conjunction with convertible note | |||||
Settlement of stock subscriptions | $ 1,496 | (1,496) | |||
Settlement of stock subscriptions, shares | 1,496,516 | ||||
Stock-based compensation | $ 12,435 | 686,571 | 699,006 | ||
Stock-based compensation, shares | 12,435,000 | ||||
Stock issued for purchase of asset | $ 2,466 | (2,466) | |||
Stock issued for purchase of asset, shares | 2,465,754 | ||||
Net loss attributable to common stockholders | (12,754,195) | (12,754,195) | |||
Balance at Jun. 30, 2020 | $ 1 | $ 160,108 | 20,082,520 | (34,365,110) | (14,122,481) |
Balance, shares at Jun. 30, 2020 | 1,334 | 160,108,545 | |||
Balance at Mar. 31, 2020 | $ 1 | $ 19,482 | 16,725,143 | (31,791,930) | (15,047,304) |
Balance, shares at Mar. 31, 2020 | 1,334 | 19,482,091 | |||
Common stock issued for conversion of debt | $ 127,195 | 2,877,454 | 3,004,649 | ||
Common stock issued for conversion of debt, shares | 127,194,938 | ||||
Settlement of stock subscriptions | $ 1,496 | (1,496) | |||
Settlement of stock subscriptions, shares | 1,496,516 | ||||
Stock-based compensation | $ 11,935 | 481,419 | 493,354 | ||
Stock-based compensation, shares | 11,935,000 | ||||
Net loss attributable to common stockholders | (2,573,180) | (2,573,180) | |||
Balance at Jun. 30, 2020 | $ 1 | $ 160,108 | 20,082,520 | (34,365,110) | (14,122,481) |
Balance, shares at Jun. 30, 2020 | 1,334 | 160,108,545 | |||
Balance at Dec. 31, 2020 | $ 150 | $ 522 | 32,027,240 | (35,518,584) | (3,490,672) |
Balance, shares at Dec. 31, 2020 | 150,000 | 522,006 | |||
Common stock issued for cash | $ 83 | 846,718 | 846,801 | ||
Common stock issued for cash, shares | 83,336 | ||||
Common stock issued for conversion of preferred stock | $ 15 | 312,908 | 312,923 | ||
Common stock issued for conversion of preferred stock, shares | 14,533 | ||||
Common stock issued for conversion of debt | $ 102 | 1,523,156 | 1,523,258 | ||
Common stock issued for conversion of debt, shares | 101,748 | ||||
Common stock issued in conjunction with convertible note | $ 3 | 88,735 | 88,738 | ||
Common stock issued in conjunction with convertible note, shares | 2,863 | ||||
Common stock issued for exercised cashless warrant | $ 9 | (9) | |||
Common stock issued for exercised cashless warrant, shares | 8,923 | ||||
Resolution of derivative liability upon exercise of warrant | 139,067 | 139,067 | |||
Stock-based compensation | $ 9 | 680,435 | 680,444 | ||
Stock-based compensation, shares | 9,168 | ||||
Adjustment of reverse stock split | |||||
Adjustment of reverse stock split, shares | 669 | 669 | |||
Cash received for issued stock | |||||
Stock issued for purchase of asset | |||||
Stock issued for purchase of asset, shares | |||||
Net loss attributable to common stockholders | (3,731,093) | (3,731,093) | |||
Balance at Jun. 30, 2021 | $ 150 | $ 743 | 35,618,250 | (39,249,677) | (3,630,534) |
Balance, shares at Jun. 30, 2021 | 150,000 | 743,246 | |||
Balance at Mar. 31, 2021 | $ 150 | $ 721 | 34,864,967 | (37,698,831) | (2,832,993) |
Balance, shares at Mar. 31, 2021 | 150,000 | 721,032 | |||
Common stock issued for conversion of preferred stock | $ 9 | 144,707 | 144,716 | ||
Common stock issued for conversion of preferred stock, shares | 8,934 | ||||
Common stock issued for exercised cashless warrant | $ 9 | (9) | |||
Common stock issued for exercised cashless warrant, shares | 8,923 | ||||
Resolution of derivative liability upon exercise of warrant | 139,067 | 139,067 | |||
Stock-based compensation | $ 4 | 276,322 | 276,326 | ||
Stock-based compensation, shares | 3,688 | ||||
Adjustment of reverse stock split | |||||
Adjustment of reverse stock split, shares | 669 | ||||
Cash received for issued stock | 193,196 | 193,196 | |||
Net loss attributable to common stockholders | (1,550,846) | (1,550,846) | |||
Balance at Jun. 30, 2021 | $ 150 | $ 743 | $ 35,618,250 | $ (39,249,677) | $ (3,630,534) |
Balance, shares at Jun. 30, 2021 | 150,000 | 743,246 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (3,721,652) | $ (12,754,195) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Change in fair value of derivative liability | 363,654 | 9,278,815 |
Loss on settlement of debt | 227,501 | 54,000 |
Stock-based compensation expense | 680,444 | 699,006 |
Depreciation and amortization | 554,557 | 909,851 |
Amortization of debt discount | 1,448,308 | 816,949 |
Bad debt | 50,800 | |
Lease liability amortization | (13,107) | 22,218 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 22,233 | (20,856) |
Prepaid expenses and other assets | (24,425) | 484 |
Accounts payable and accrued liabilities | 13,057 | (161,961) |
Deferred revenue | (428,116) | 258,872 |
Payroll liability | 102,859 | |
Accrued interest | 63,912 | 171,639 |
Accrued Dividend | (9,441) | |
Deposit | (10,496) | |
Net Cash used in Operating Activities | (823,075) | (582,015) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (79,020) | (5,081) |
Net Cash used in Investing Activities | (79,020) | (5,081) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of convertible notes payable | 100,000 | 652,250 |
Proceeds from issuance of common stock | 846,801 | |
Proceeds from issuance of series B Preferred Stock | 250,000 | |
Finance lease payments | (43,931) | (31,943) |
Proceeds from issuance of notes payable | 2,574,647 | 1,077,843 |
Repayment of notes payable | (2,734,275) | (426,486) |
Proceeds from related parties | 271,464 | 132,656 |
Repayment to related parties | (414,187) | (287,104) |
Net Cash provided by Financing Activities | 850,519 | 1,117,216 |
Net change in cash | (51,576) | 530,120 |
Cash, beginning of period | 58,783 | 18,673 |
Cash, end of period | 7,207 | 548,793 |
Supplemental cash flow information | ||
Cash paid for interest | 24,770 | 43,453 |
Cash paid for taxes | ||
Non-cash Investing and Financing transactions: | ||
Settlement of stock subscriptions | 1,496 | |
Common stock issued for exercised cashless warrant | 9 | |
Settlement of series B preferred stock through issuance of common stock | 312,923 | |
Settlement of convertible notes payable through issuance of common stock | 1,523,258 | 1,153,596 |
Common stock issued in conjunction with convertible note | 88,738 | |
Resolution of derivative liability upon exercise of warrant | 139,067 | |
Resolution of derivative liability upon conversion of debt | 3,175,563 | |
Equipment paid by capital lease | 159,096 | |
Derivative liability recognized as debt discount | 150,000 | 570,675 |
Settlement of convertible notes payable through issuance of preferred common stock | 65,600 | |
Note payable issued for settlement of License fee payable | $ 1,404,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements as of June 30, 2021 include the accounts of the Company and its wholly-owned subsidiary, Data 443 Risk Mitigation, Inc., a North Carolina operating company, and the operations of Myriad Software Productions, LLC through September 2018 when it was liquidated. Prior to the acquisition of Data 443 Risk Mitigation, Inc. in North Carolina and the assets of Myriad Software Productions, LLC in 2018, these two entities were controlled by our sole director and officer, Jason Remillard. On November 17, 2017, Mr. Remillard acquired control of LandStar, Inc. through his purchase of all the outstanding Series A preferred shares of the Company, and as a result, these two entities became common controlled entities that require consolidation of results with the reporting company, LandStar, Inc., from the time common control occurred. All intercompany accounts and activities have been eliminated. These consolidated financial statements have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Interim Financial Statements These unaudited consolidated financial statements have been prepared in accordance U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. These consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2020 and notes thereto and other pertinent information contained in our Form 10-K the Company has filed with the Securities and Exchange Commission (the “SEC”) on March 23, 2021. The results of operations for the six months ended June 30, 2021, are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2021. Share-Based Compensation Employees Nonemployees Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting DATA443 RISK MITIGATION, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 The Company recorded approximately $ 680,000 699,000 Basic and Diluted Net Loss Per Common Share Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method and as if converted method. Dilutive potential common shares include outstanding stock options, warrant and convertible notes. For the six months ended June 30, 2021 and 2020, respectively, the following common stock equivalents were excluded from the computation of diluted net loss per share as the result of the computation was anti-dilutive: SCHEDULE OF ANTI-DILUTIVE BASIC AND DILUTED EARNINGS PER SHARE June 30, 2021 2020 (Shares) (Shares) Series A Preferred Stock 150,000,000 1,334,000 Stock Options 12,471 498 Warrants 105,467 137,595 Convertible Notes - 279,008 Total 150,117,938 1,751,101 Recently Issued Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with “Conversion and Other Options” and ASC subtopic 815-40 “Hedging—Contracts in Entity’s Own Equity”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements. The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its consolidated financial statements. |
LIQUIDITY AND GOING CONCERN
LIQUIDITY AND GOING CONCERN | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
LIQUIDITY AND GOING CONCERN | NOTE 2: LIQUIDITY AND GOING CONCERN The accompanying consolidated financial statements have been prepared (i) in accordance with accounting principles generally accepted in the United States, and (ii) assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has not generated significant income to date. The Company is subject to the risks and uncertainties associated with a business with no substantive revenue, as well as limitations on its operating capital resources. These matters, among others, raise substantial doubt about the ability of the Company to continue as a going concern. These consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. In light of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to raise capital and generate revenue and profits in the future. DATA443 RISK MITIGATION, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 During 2018, the Company made two product acquisitions, ClassiDocs™, and ARALOC ™ Data443 ™ We continue to monitor the effects COVID-19 could have on our operations and liquidity including our ability to collect account receivable timely from our customers due to the economic impacts COVID-19 could have on the general economy. COVID-19 has also impacted our ability to travel, meet distribution partners in their offices, present at tradeshows, and perform other enterprise-related sales functions. While most customers have returned to their pre-pandemic “normal” office working conditions, a number have yet to do so. These continued operating conditions have impacted our ability to execute and deploy some of our normal sales and marketing activities. While we are not unique in this position, these factors, among others, raise some doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 3: PROPERTY AND EQUIPMENT The following table summarizes the components of the Company’s property and equipment as of the dates presented: SUMMARY OF COMPONENTS OF PROPERTY AND EQUIPMENT June 30, December 31, 2021 2020 Furniture and Fixtures $ 2,991 $ 2,991 Computer Equipment 500,343 421,323 Property and equipment, gross 503,334 424,314 Accumulated depreciation (171,478 ) (99,965 ) Property and equipment, net of accumulated depreciation $ 331,856 $ 324,349 Depreciation expense for the six months ended June 30, 2021 and 2020, was $ 71,513 31,975 During the six months years ended June 30, 2021 and 2020, the Company purchased property and equipment of $ 79,020 5,081 |
INTELLECTUAL PROPERTY
INTELLECTUAL PROPERTY | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTELLECTUAL PROPERTY | NOTE 4: INTELLECTUAL PROPERTY The following table summarizes the components of the Company’s intellectual property as of the dates presented: SCHEDULE OF INTELLECTUAL PROPERTY June 30, December 31, 2021 2020 Intellectual property: Word press GDPR rights $ 46,800 $ 46,800 ARALOC™ 1,850,000 1,850,000 ArcMail License 1,445,000 1,445,000 DataExpress TM 1,388,051 1,388,051 FileFacets TM 135,000 135,000 IntellyWP™ 135,000 135,000 Resilient Network Systems 305,000 305,000 Intellectual property 5,304,851 5,304,851 Accumulated amortization (3,476,988 ) (2,993,944 ) Intellectual property, net of accumulated amortization $ 1,827,863 $ 2,310,907 DATA443 RISK MITIGATION, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 The Company recognized amortization expense of approximately $ 483,044 877,876 Based on the carrying value of definite-lived intangible assets as of June 30, 2021, we estimate our amortization expense for the next five years will be as follows: SCHEDULE OF FUTURE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS Amortization Year Ended December 31, Expense 2021 (excluding the six months ended June 30, 2021) $ 483,044 2022 860,484 2023 441,585 2024 27,000 Thereafter 15,750 Intellectual property, net of accumulated amortization 1,827,863 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | NOTE 5: ACCOUNTS PAYABLE AND ACCRUED LIABILITIES The following table summarizes the components of the Company’s accounts payable and accrued liabilities as of the dates presented: SUMMARY OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES June 30, December 31, 2021 2020 Accounts payable $ 216,947 $ 178,319 Payroll liabilities 100,361 102,793 Credit cards 47,505 31,918 Accrued dividend - preferred stock 6,414 484 Accrued liabilities 40,000 87,500 Accounts payable and accrued liabilities $ 411,227 $ 401,014 |
DEFERRED REVENUE
DEFERRED REVENUE | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
DEFERRED REVENUE | NOTE 6: DEFERRED REVENUE Changes in deferred revenue were as follows: SUMMARY OF CHANGES IN DEFERRED REVENUE June 30, 2021 Balance, beginning of period $ 1,518,163 Deferral of revenue 1,021,125 Recognition of deferred revenue (1,449,241 ) Balance, end of period $ 1,090,047 SCHEDULE OF DEFERRED REVENUE June 30, December 31, 2021 2020 Current $ 1,065,120 $ 1,478,430 Non-current 24,927 39,733 Deferred revenue $ 1,090,047 $ 1,518,163 DATA443 RISK MITIGATION, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
Leases | |
LEASES | NOTE 7: LEASES Operating lease We have a noncancelable operating lease for our office facility that expires in 2024. The operating lease has renewal options and rent escalation clauses. We recognized total lease expense of approximately $ 49,000 52,000 10,000 Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year at June 31, 2021 were as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER OPERATING LEASES Total Year Ended December 31, 2021 (excluding the six months ended June 30, 2021) $ 61,800 2022 127,300 2023 131,150 Thereafter - Total lease payment 320,250 Less: Imputed interest (31,205 ) Operating lease liabilities 289,045 Operating lease liability - current 106,125 Operating lease liability - non-current $ 182,920 The following summarizes other supplemental information about the Company’s operating lease as of June 30, 2021: SCHEDULE OF OTHER SUPPLEMENTAL INFORMATION UNDER OPERATING LEASE Weighted average discount rate 8 % Weighted average remaining lease term (years) 2.54 Finance lease The Company leases computer and hardware under non-cancellable capital lease arrangements. The term of those capital leases is 3 12 87,829 90,565 $41,914 $83,109 $10,944 At June 30, 2021, future minimum lease payments under the finance lease obligations, are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER FINANCE LEASES Total 2021 (excluding the six months ended June 30, 2021) $ 53,266 2022 78,379 2023 10,496 Thereafter - Total finance lease payment 142,141 Less: Imputed interest (12,398 ) Finance lease liabilities 129,743 Finance lease liability 87,829 Finance lease liability - non-current $ 41,914 DATA443 RISK MITIGATION, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 As of June 30, 2021 and December 31, finance lease assets are included in property and equipment as follows: SCHEDULE OF FINANCE LEASE ASSETS June 30, December 31, 2021 2020 Finance lease assets $ 267,284 $ 267,284 Accumulated depreciation (126,486 ) (87,337 ) Finance lease assets, net of accumulated depreciation $ 140,798 $ 179,947 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | NOTE 8: CONVERTIBLE NOTES PAYABLE Convertible notes payable consists of the following: SCHEDULE OF CONVERTIBLE NOTES PAYABLE June 30, December 31, 2021 2020 Convertible Notes - Issued in fiscal year 2020 100,000 1,526,000 Convertible Notes - Issued in fiscal year 2021 114,500 - Convertible notes payable, Gross 214,500 1,526,000 Less debt discount and debt issuance cost (87,727 ) (282,232 ) Convertible notes payable 126,773 1,243,768 Less current portion of convertible notes payable 114,500 1,243,768 Long-term convertible notes payable $ 12,273 $ - During the six months ended June 30, 2021 and 2020, the Company recognized interest expense of $ 14,556 169,760 $335,663 $718,909 Conversion During the six months ended June 30, 2021, the Company converted notes with principal amounts and accrued interest of $1,340,150 101,748 $183,108 Convertible notes payable consists of the following: Promissory Notes - Issued in fiscal year 2020 During the twelve months ended December 31, 2020, the Company issued a total of $2,466,500 ● Terms ranging from 5 60 ● Annual interest rates of 0 25 ● Convertible at the option of the holders at issuance date, after maturity date or 6 months after issuance date. ● Conversion prices are typically based on the discounted (25% to 50% discount) average closing prices or lowest trading prices of the Company’s shares during various periods prior to conversion. Certain note has a fixed conversion price ranging from $0.001 to $0.007. Certain note has a fixed conversion price of $0.5 for a first 5 months Certain note allows the principal amount will increase by $15,000 and the discount rate of conversion price will decrease by 18% if the conversion price is less than $$0.01. DATA443 RISK MITIGATION, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 Promissory Notes - Issued during first six months of fiscal year 2021 During the six months ended June 30, 2021, the Company issued convertible note of $ 114,500 $100,000 $14,500 ● Terms 90 ● Annual interest rates of 5 ● Convertible at the option of the holders after maturity date ● Conversion price is the lesser of (i) $0.01 or (ii) 61% multiplied by the average of two lowest trading prices during the 20 trading day period prior to the conversion date ● 2,863 $88,738 |
DERIVATIVE LIABILITIES
DERIVATIVE LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE LIABILITIES | NOTE 9: DERIVATIVE LIABILITIES The Company analyzed the conversion option for derivative accounting consideration under ASC 815, Derivatives and Hedging, and hedging, and determined that the instrument should be classified as a liability since the conversion option becomes effective at issuance resulting in there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options. ASC 815 requires we assess the fair market value of derivative liability at the end of each reporting period and recognize any change in the fair market value as other income or expense item. The Company determined our derivative liabilities to be a Level 3 fair value measurement during the year based on management’s estimate of the expected future cash flows required to settle the liabilities, and used the Binomial pricing model to calculate the fair value as of June 30, 2021. As of the six month period ended June 30, 2021, there were no derivative liabilities. The Binomial model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each convertible note and warrant is estimated using the Binomial valuation model. For the six months June 30, 2021 and 2020, the estimated fair values of the liabilities measured on a recurring basis are as follows: The Company valued the conversion feature using the Binomial pricing model. The fair value of the derivative liability for all the notes and convertible preferred stock that became convertible, including the notes and convertible preferred stock issued in prior years, during the six months ended June 30, 2021 amounted to $433,264 $150,000 $283,264 For the six months June 30, 2021 and year ended December 31, 2020, the estimated fair values of the liabilities measured on a recurring basis are as follows: SCHEDULE OF FAIR VALUE OF LIABILITIES MEASURED ON RECURRING BASIS Six months Ended Year Ended June 30, December 31, 2021 2020 Expected term 0.48 1.00 0.25 5.00 Expected average volatility 186 302 % 187 464 % Expected dividend yield - - Risk-free interest rate 0.04 0.16 % 0.01 1.57 % DATA443 RISK MITIGATION, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 The following table summarizes the changes in the derivative liabilities during the six months ended June 30, 2021 and 2020: SCHEDULE OF CHANGES IN DERIVATIVE LIABILITIES Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Derivative liability as of December 31, 2020 $ - Addition of new derivatives recognized as debt discounts 150,000 Addition of new derivatives recognized as day-one loss 283,264 Derivative liabilities settled upon conversion of convertible note (513,654 ) Change in derivative liabilities recognized as loss on derivative 80,390 Derivative liability as of June 30, 2021 $ - The aggregate loss on derivatives during the six months ended June 30, 2021 and 2020 was $363,654 $9,278,815 |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable | |
NOTES PAYABLE | NOTE 10: NOTES PAYABLE Notes payable consists of the following: SCHEDULE OF NOTES PAYABLE June 30, December 31, 2021 2020 Maturity Interest Rate 10% Promissory note - originated in October 2019 $ 25,060 $ 25,060 Due on demand 10.0 % Promissory note - originated in October 2019 25,060 25,060 Due on demand 10.0 % Promissory note - originated in April 2020 10,000 10,000 Due on demand No Paycheck Protection Program Promissory note - originated in April 2020 (1) 339,000 339,000 2 years 1.0 % Economic Injury Disaster Loan - originated in May 2020 (2) 150,000 150,000 30 years 1.0 % Promissory note - originated in June 2020 - 43,356 $ 3,942 16.0 % Promissory note - originated in September 2020 65,593 80,730 $ 2,873 36 months 14.0 % Promissory note - originated in October 2020 - 158,169 $ 2,293 25.0 % Promissory note - originated in November 2020 - 170,886 $4,497 25.0 % Promissory note - originated in November 2020 105,972 394,846 $ 6,999 25.0 % Promissory note - originated in December 2020 41,535 50,031 $ 1,854 36 months 8.0 % Promissory note - originated in January 2021 1,364,000 - 5 years 4.0 % Promissory note - originated in January 2021 61,753 - $ 2,675 36 months 18.0 % Promissory note - originated in January 2021 10,610 - $ 4,497 25.0 % Promissory note - originated in March 2021 21,750 - $ 870,00 15.0 % Promissory note - originated in April 2021 832,000 - 1 year 12 % Promissory note - originated in April 2021 394,146 - $ 8,284 24 % Promissory note - originated in June 2021 311,421 - $ 3,971 25 % Promissory notes payable, Gross 3,757,900 1,447,138 Less debt discount and debt issuance cost (360,657 ) (289,332 ) Promissory notes payable 3,397,243 1,157,806 Less current portion of promissory notes payable 1,587,552 585,310 Long-term promissory notes payable $ 1,809,691 $ 572,496 (1) In response to the Coronavirus (COVID-19) pandemic, the US Government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2020. The CARES Act provides fast and direct economic assistance for entrepreneurs and small businesses through the US Small Business Administration (“SBA”). During the period, the Company received a loan issued under the CARES Act program - Paycheck Protection Program (“PPP”). This loan program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. Under the PPP, the Company may apply to have certain amounts forgiven under the direction of the Administrator of the SBA providing that the Company satisfies certain criteria. Repayment of the PPP loan will commence earlier of when the SBA remits the forgiveness amount to the lender or the Maturity Date. (2) The Company received an advance under the Economic Injury Disaster Loan (EIDL) program. As the Company received an EIDL advance and a PPP loan, the EIDL advance portion will be applied against the PPP forgiveness amount as repayment to the SBA upon approval of the PPP forgiveness application. (3) On February 12, 2021, the Company issued notes payable of $ 1,404,000 1,094,691 309,309 During the six months ended June 30, 2021 and 2020, the Company recognized interest expense of $ 57,209 18,878 995,066 98,040 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11: COMMITMENTS AND CONTINGENCIES The Company accounts for contingent liabilities in accordance with Accounting Standards Codification (“ASC”) Topic 450, Contingencies DMB Note Collection Action DMB Group, LLC (“ DMB Subsidiary Complaint 940,000 DMB Note Employment Related Claims The Company views most legal proceedings involving claims of former employees as routine litigation incidental to the business, and therefore not material. The Company is currently involved in two such matters with former employees. One matter involves three former employees; the other matter involves one former employee. In each matter, the former employee is seeking additional compensation. In response, the Company believes that in each matter the former employee was terminated “for cause” and is owed no further consideration or compensation. The Company intends to vigorously dispute each such claim. Litigation In the ordinary course of business, we are involved in a number of lawsuits incidental to our business, including litigation related to intellectual property, employees, and commercial matters. Although it is difficult to predict the ultimate outcome of these cases, management believes that any ultimate liability would not have a material adverse effect on our consolidated financial condition or results of operations. However, an unforeseen unfavorable development in any of these cases could have a material adverse effect on our consolidated financial condition, results of operations, or cash flows in the period in which it is recorded. |
CAPITAL STOCK AND REVERSE STOCK
CAPITAL STOCK AND REVERSE STOCK SPLIT | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
CAPITAL STOCK AND REVERSE STOCK SPLIT | NOTE 12: CAPITAL STOCK AND REVERSE STOCK SPLIT Changes in Authorized Shares On February 19, 2021 the written consent of the holders of a majority of the voting power of the outstanding capital stock of the Company as of the Record Date (the “Consenting Stockholders”) approved the following corporate actions: (1) Amendment of our articles of incorporation (the “Articles of Incorporation”) to provide for a decrease in the authorized shares of the Company’s Common Stock from 1,800,000,000 10,000,000 1,000,000,000 (2) That the Board be authorized to implement through the amendment to our Articles of Incorporation a reverse stock split of the Company’s Common Stock by a ratio of not less than 1-for-10 and not more than 1-for-2,000 DATA443 RISK MITIGATION, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 On April 21, 2021, the Company increased the number of authorized shares of common stock from 1.8 3.8 On June 10, 2021, the Company filed a Certificate of Amendment to the Articles of Incorporation (the “ Certificate of Amendment 1,000,000,000 Reverse Stock Split common stock in a ratio of 1-for-2,000. The preferred stock of the Company was not changed. The 1-for-2,000 Reverse Stock split was processed by FINRA and became effective at the start of trading on July 1, 2021. As a result of the Reverse Stock Split, every 2,000 shares of the Company’s issued and outstanding common stock, par value $0.001 per share, were converted into one (1) share of common stock, par value $0.001 per share. No fractional shares will be issued in connection with the Reverse Stock Split. Stockholders who otherwise would be entitled to receive fractional shares because they hold a number of pre-Reverse Stock Split shares of the Company’s common stock not evenly divisible by 2,000 will have the number of post-Reverse Stock Split shares of the Company’s common stock to which they are entitled rounded up to the nearest whole number of shares of the Company’s common stock. All per share amounts and number of shares in the consolidated financial statements and related notes have been retroactively adjusted to reflect the reverse stock split Preferred Stock Series A Preferred Stock As of June 30, 2021 and December 31, 2020, 150,000 1,000 entitled to vote 15,000 shares of common stock on all matters submitted to a vote by shareholders voting common stock Series B Preferred Stock As of June 30, 2021 and December 31, 2020, 26,650 5,300 10.00 9 During the six months ended June 30, 2021, the Company issued a total of 33,210 ● 26,650 266,500 16,500 ● 6,560 65,600 During the six months ended June 30, 2021, shares of series B preferred stock was converted into 14,533 DATA443 RISK MITIGATION, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 Common Stock As of June 30, 2021, the Company is authorized to issue 1,000,000,000 shares of common stock with a par value of $ 0.001 . All shares have equal voting rights, are non-assessable, and have one vote per share . The total number of shares of Company common stock issued and outstanding as of June 30, 2021 and December 31, 2020, respectively, was 743,246 and 522,006 shares, respectively. During the six months ended June 30, 2021, the Company issued common stock as follows: ● 101,748 ● 83,336 1,000,000 10,000 143,199 ● ● 9,168 8,923 ● 14,533 ● 2,863 ● 669 Warrants During the six months ended June 30, the Company issued warrants (i) to acquire 55,467 15.00 55,467 15.00 832,000 A summary of activity during the period ended June 30, 2021 follows: SUMMARY OF WARRANTS ACTIVITY Warrants Outstanding Weighted Average Shares Exercise Price Outstanding, December 31, 2020 50,000 $ 20.00 Granted 55,467 15.00 Reset feature 9,030 5.80 Exercised (9,030 ) 5.80 Forfeited/canceled - - Outstanding, June 30, 2021 105,467 $ 17.37 The following table summarizes information relating to outstanding and exercisable warrants as of June 30, 2021: SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS Warrants Outstanding Warrants Exercisable Number of Weighted Average Remaining Weighted Average Number of Weighted Average Shares Contractual life Exercise Price Shares Exercise Price 50,000 4.45 $ 20.00 50,000 $ 20.00 55,467 4.81 $ 15.00 55,467 $ 15.00 DATA443 RISK MITIGATION, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 13: SHARE-BASED COMPENSATION Stock Options During the six months ended June 30, 2021, the Company granted options for the purchase of the Company’s common stock to certain employees, consultants and advisors as consideration for services rendered. The terms of the stock option grants are determined by the Company’s Board of Directors. The Company’s stock options generally vest upon the one ten The following summarizes the stock option activity for the six months ended June 30, 2021: SCHEULE OF STOCK OPTION ACTIVITY Weighted-Average Options Outstanding Exercise Price Balance as of December 31, 2020 5,875 $ 96.99 Grants 6,596 40.81 Exercised - - Cancelled - - Balance as of June 30, 2021 12,471 $ 67.28 The weighted average grant date fair value of stock options granted during the six months ended June 30, 2021 was $ 43.01 284,000 SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS FOR STOCK OPTIONS GRANTED Expected term (years) 5.74 Expected stock price volatility 296.17 % Weighted-average risk-free interest rate 0.64 % Expected dividend $ 0.00 Volatility is a measure of the amount by which a financial variable such as share price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. The Company estimates expected volatility giving primary consideration to the historical volatility of its common stock. The risk-free interest rate is based on the published yield available on U.S. Treasury issues with an equivalent term remaining equal to the expected life of the stock option. The expected lives of the stock options represent the estimated period of time until exercise or forfeiture and are based on the simplified method of using the mid-point between the vesting term and the original contractual term. The following summarizes certain information about stock options vested and expected to vest as of June 30, 2021: SCHEDULE OF STOCK OPTIONS VESTED AND EXPECTED TO VEST Number of Remaining Contractual Life Weighted- Average Options (In Years) Exercise Price Outstanding 12,471 9.33 $ 67.28 Exercisable 754 8.67 $ 490.70 Expected to vest 11,717 9.37 $ 40.07 DATA443 RISK MITIGATION, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 As of June 30, 2021 and December 31, 2020, there was $ 391,474 211,661 Restricted Stock Awards During the six months ended June 30, 2021, the Company issued restricted stock awards for shares of common stock which have been reserved for the holders of the awards. Restricted stock awards were issued to certain consultants and advisors as consideration for services rendered. The terms of the restricted stock units are determined by the Company’s Board of Directors. The Company’s restricted stock shares generally vest over a period of one year and have a maximum term of ten years. The following summarizes the restricted stock activity for the six months ended June 30, 2021: SCHEDULE OF RESTRICTED STOCK ACTIVITY Weighted-Average Shares Fair Value Balance as of December 31, 2020 7,356 93.61 Shares of restricted stock granted 4,501 51.40 Exercised - - Cancelled - - Balance as of Mach 31, 2021 11,857 77.591 SCHEDULE OF RESTRICTED STOCK AWARD June 30, December 31, Number of Restricted Stock Awards 2021 2020 Vested 3,350 226 Non-vested 8,507 7,130 As of June 30, 2021 and December 31, 2020, there was $ 85,993 144,964 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 14: RELATED PARTY TRANSACTIONS Jason Remillard is our Chief Executive Officer and sole director. Through his ownership of Series A Preferred Shares, Mr. Remillard has voting control over all matters to be submitted to a vote of our shareholders. On September 16, 2019, the Company entered into an Asset Purchase Agreement with DMBGroup, LLC. Amounts owed to DMBGroup, LLC including the note payable of $ 940,000 97,689 159,731 6,915 245,652 405,382 During the six months ended June 30, 2021, the Company borrowed $ 180,000 91,463 254,456 As of June 30, 2021 and December 31, 2020, the Company had due to related party of $ 418,507 561,230 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 15: SUBSEQUENT EVENTS Subsequent to June 30, 2021, the following transactions occurred: ● On July 01, 2021, the 1-for-2,000 Reverse Stock Split filed by the Company on June 10, 2021 was processed by FINRA and became effective at the start of trading on 01 July 2021. As a result of the Reverse Stock Split, every 2,000 0.001 ● On July 07, 2021, the Company issued 4,375 40,000 ● On July 12, 2021, the Company converted 1,800 6,280 ● On July 16, 2021, the Company converted 2,000 7,699 ● On July 30, 2021, the Company closed a financing transaction pursuant to the terms and conditions of a Securities Purchase Agreement (the “ Purchase Agreement Auctus Note 282,000.00 Principal Amount 250,000.00 Security Agreement Second Warrant 62,667 4.50 12 Repayment of all amounts due under the Note shall be tendered on the 12-month anniversary of the Note. 62,667 First Warrant 4.50 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements as of June 30, 2021 include the accounts of the Company and its wholly-owned subsidiary, Data 443 Risk Mitigation, Inc., a North Carolina operating company, and the operations of Myriad Software Productions, LLC through September 2018 when it was liquidated. Prior to the acquisition of Data 443 Risk Mitigation, Inc. in North Carolina and the assets of Myriad Software Productions, LLC in 2018, these two entities were controlled by our sole director and officer, Jason Remillard. On November 17, 2017, Mr. Remillard acquired control of LandStar, Inc. through his purchase of all the outstanding Series A preferred shares of the Company, and as a result, these two entities became common controlled entities that require consolidation of results with the reporting company, LandStar, Inc., from the time common control occurred. All intercompany accounts and activities have been eliminated. These consolidated financial statements have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). |
Interim Financial Statements | Interim Financial Statements These unaudited consolidated financial statements have been prepared in accordance U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. These consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2020 and notes thereto and other pertinent information contained in our Form 10-K the Company has filed with the Securities and Exchange Commission (the “SEC”) on March 23, 2021. The results of operations for the six months ended June 30, 2021, are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2021. |
Share-Based Compensation | Share-Based Compensation Employees Nonemployees Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting DATA443 RISK MITIGATION, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 The Company recorded approximately $ 680,000 699,000 |
Basic and Diluted Net Loss Per Common Share | Basic and Diluted Net Loss Per Common Share Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method and as if converted method. Dilutive potential common shares include outstanding stock options, warrant and convertible notes. For the six months ended June 30, 2021 and 2020, respectively, the following common stock equivalents were excluded from the computation of diluted net loss per share as the result of the computation was anti-dilutive: SCHEDULE OF ANTI-DILUTIVE BASIC AND DILUTED EARNINGS PER SHARE June 30, 2021 2020 (Shares) (Shares) Series A Preferred Stock 150,000,000 1,334,000 Stock Options 12,471 498 Warrants 105,467 137,595 Convertible Notes - 279,008 Total 150,117,938 1,751,101 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with “Conversion and Other Options” and ASC subtopic 815-40 “Hedging—Contracts in Entity’s Own Equity”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements. The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ANTI-DILUTIVE BASIC AND DILUTED EARNINGS PER SHARE | For the six months ended June 30, 2021 and 2020, respectively, the following common stock equivalents were excluded from the computation of diluted net loss per share as the result of the computation was anti-dilutive: SCHEDULE OF ANTI-DILUTIVE BASIC AND DILUTED EARNINGS PER SHARE June 30, 2021 2020 (Shares) (Shares) Series A Preferred Stock 150,000,000 1,334,000 Stock Options 12,471 498 Warrants 105,467 137,595 Convertible Notes - 279,008 Total 150,117,938 1,751,101 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
SUMMARY OF COMPONENTS OF PROPERTY AND EQUIPMENT | The following table summarizes the components of the Company’s property and equipment as of the dates presented: SUMMARY OF COMPONENTS OF PROPERTY AND EQUIPMENT June 30, December 31, 2021 2020 Furniture and Fixtures $ 2,991 $ 2,991 Computer Equipment 500,343 421,323 Property and equipment, gross 503,334 424,314 Accumulated depreciation (171,478 ) (99,965 ) Property and equipment, net of accumulated depreciation $ 331,856 $ 324,349 |
INTELLECTUAL PROPERTY (Tables)
INTELLECTUAL PROPERTY (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTELLECTUAL PROPERTY | The following table summarizes the components of the Company’s intellectual property as of the dates presented: SCHEDULE OF INTELLECTUAL PROPERTY June 30, December 31, 2021 2020 Intellectual property: Word press GDPR rights $ 46,800 $ 46,800 ARALOC™ 1,850,000 1,850,000 ArcMail License 1,445,000 1,445,000 DataExpress TM 1,388,051 1,388,051 FileFacets TM 135,000 135,000 IntellyWP™ 135,000 135,000 Resilient Network Systems 305,000 305,000 Intellectual property 5,304,851 5,304,851 Accumulated amortization (3,476,988 ) (2,993,944 ) Intellectual property, net of accumulated amortization $ 1,827,863 $ 2,310,907 |
SCHEDULE OF FUTURE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS | Based on the carrying value of definite-lived intangible assets as of June 30, 2021, we estimate our amortization expense for the next five years will be as follows: SCHEDULE OF FUTURE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS Amortization Year Ended December 31, Expense 2021 (excluding the six months ended June 30, 2021) $ 483,044 2022 860,484 2023 441,585 2024 27,000 Thereafter 15,750 Intellectual property, net of accumulated amortization 1,827,863 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
SUMMARY OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | The following table summarizes the components of the Company’s accounts payable and accrued liabilities as of the dates presented: SUMMARY OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES June 30, December 31, 2021 2020 Accounts payable $ 216,947 $ 178,319 Payroll liabilities 100,361 102,793 Credit cards 47,505 31,918 Accrued dividend - preferred stock 6,414 484 Accrued liabilities 40,000 87,500 Accounts payable and accrued liabilities $ 411,227 $ 401,014 |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
SUMMARY OF CHANGES IN DEFERRED REVENUE | Changes in deferred revenue were as follows: SUMMARY OF CHANGES IN DEFERRED REVENUE June 30, 2021 Balance, beginning of period $ 1,518,163 Deferral of revenue 1,021,125 Recognition of deferred revenue (1,449,241 ) Balance, end of period $ 1,090,047 |
SCHEDULE OF DEFERRED REVENUE | SCHEDULE OF DEFERRED REVENUE June 30, December 31, 2021 2020 Current $ 1,065,120 $ 1,478,430 Non-current 24,927 39,733 Deferred revenue $ 1,090,047 $ 1,518,163 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases | |
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER OPERATING LEASES | Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year at June 31, 2021 were as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER OPERATING LEASES Total Year Ended December 31, 2021 (excluding the six months ended June 30, 2021) $ 61,800 2022 127,300 2023 131,150 Thereafter - Total lease payment 320,250 Less: Imputed interest (31,205 ) Operating lease liabilities 289,045 Operating lease liability - current 106,125 Operating lease liability - non-current $ 182,920 |
SCHEDULE OF OTHER SUPPLEMENTAL INFORMATION UNDER OPERATING LEASE | The following summarizes other supplemental information about the Company’s operating lease as of June 30, 2021: SCHEDULE OF OTHER SUPPLEMENTAL INFORMATION UNDER OPERATING LEASE Weighted average discount rate 8 % Weighted average remaining lease term (years) 2.54 |
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER FINANCE LEASES | At June 30, 2021, future minimum lease payments under the finance lease obligations, are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER FINANCE LEASES Total 2021 (excluding the six months ended June 30, 2021) $ 53,266 2022 78,379 2023 10,496 Thereafter - Total finance lease payment 142,141 Less: Imputed interest (12,398 ) Finance lease liabilities 129,743 Finance lease liability 87,829 Finance lease liability - non-current $ 41,914 |
SCHEDULE OF FINANCE LEASE ASSETS | As of June 30, 2021 and December 31, finance lease assets are included in property and equipment as follows: SCHEDULE OF FINANCE LEASE ASSETS June 30, December 31, 2021 2020 Finance lease assets $ 267,284 $ 267,284 Accumulated depreciation (126,486 ) (87,337 ) Finance lease assets, net of accumulated depreciation $ 140,798 $ 179,947 |
CONVERTIBLE NOTES PAYABLE (Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF CONVERTIBLE NOTES PAYABLE | Convertible notes payable consists of the following: SCHEDULE OF CONVERTIBLE NOTES PAYABLE June 30, December 31, 2021 2020 Convertible Notes - Issued in fiscal year 2020 100,000 1,526,000 Convertible Notes - Issued in fiscal year 2021 114,500 - Convertible notes payable, Gross 214,500 1,526,000 Less debt discount and debt issuance cost (87,727 ) (282,232 ) Convertible notes payable 126,773 1,243,768 Less current portion of convertible notes payable 114,500 1,243,768 Long-term convertible notes payable $ 12,273 $ - |
DERIVATIVE LIABILITIES (Tables)
DERIVATIVE LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
SCHEDULE OF FAIR VALUE OF LIABILITIES MEASURED ON RECURRING BASIS | For the six months June 30, 2021 and year ended December 31, 2020, the estimated fair values of the liabilities measured on a recurring basis are as follows: SCHEDULE OF FAIR VALUE OF LIABILITIES MEASURED ON RECURRING BASIS Six months Ended Year Ended June 30, December 31, 2021 2020 Expected term 0.48 1.00 0.25 5.00 Expected average volatility 186 302 % 187 464 % Expected dividend yield - - Risk-free interest rate 0.04 0.16 % 0.01 1.57 % |
SCHEDULE OF CHANGES IN DERIVATIVE LIABILITIES | The following table summarizes the changes in the derivative liabilities during the six months ended June 30, 2021 and 2020: SCHEDULE OF CHANGES IN DERIVATIVE LIABILITIES Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Derivative liability as of December 31, 2020 $ - Addition of new derivatives recognized as debt discounts 150,000 Addition of new derivatives recognized as day-one loss 283,264 Derivative liabilities settled upon conversion of convertible note (513,654 ) Change in derivative liabilities recognized as loss on derivative 80,390 Derivative liability as of June 30, 2021 $ - |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable | |
SCHEDULE OF NOTES PAYABLE | Notes payable consists of the following: SCHEDULE OF NOTES PAYABLE June 30, December 31, 2021 2020 Maturity Interest Rate 10% Promissory note - originated in October 2019 $ 25,060 $ 25,060 Due on demand 10.0 % Promissory note - originated in October 2019 25,060 25,060 Due on demand 10.0 % Promissory note - originated in April 2020 10,000 10,000 Due on demand No Paycheck Protection Program Promissory note - originated in April 2020 (1) 339,000 339,000 2 years 1.0 % Economic Injury Disaster Loan - originated in May 2020 (2) 150,000 150,000 30 years 1.0 % Promissory note - originated in June 2020 - 43,356 $ 3,942 16.0 % Promissory note - originated in September 2020 65,593 80,730 $ 2,873 36 months 14.0 % Promissory note - originated in October 2020 - 158,169 $ 2,293 25.0 % Promissory note - originated in November 2020 - 170,886 $4,497 25.0 % Promissory note - originated in November 2020 105,972 394,846 $ 6,999 25.0 % Promissory note - originated in December 2020 41,535 50,031 $ 1,854 36 months 8.0 % Promissory note - originated in January 2021 1,364,000 - 5 years 4.0 % Promissory note - originated in January 2021 61,753 - $ 2,675 36 months 18.0 % Promissory note - originated in January 2021 10,610 - $ 4,497 25.0 % Promissory note - originated in March 2021 21,750 - $ 870,00 15.0 % Promissory note - originated in April 2021 832,000 - 1 year 12 % Promissory note - originated in April 2021 394,146 - $ 8,284 24 % Promissory note - originated in June 2021 311,421 - $ 3,971 25 % Promissory notes payable, Gross 3,757,900 1,447,138 Less debt discount and debt issuance cost (360,657 ) (289,332 ) Promissory notes payable 3,397,243 1,157,806 Less current portion of promissory notes payable 1,587,552 585,310 Long-term promissory notes payable $ 1,809,691 $ 572,496 (1) In response to the Coronavirus (COVID-19) pandemic, the US Government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2020. The CARES Act provides fast and direct economic assistance for entrepreneurs and small businesses through the US Small Business Administration (“SBA”). During the period, the Company received a loan issued under the CARES Act program - Paycheck Protection Program (“PPP”). This loan program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. Under the PPP, the Company may apply to have certain amounts forgiven under the direction of the Administrator of the SBA providing that the Company satisfies certain criteria. Repayment of the PPP loan will commence earlier of when the SBA remits the forgiveness amount to the lender or the Maturity Date. (2) The Company received an advance under the Economic Injury Disaster Loan (EIDL) program. As the Company received an EIDL advance and a PPP loan, the EIDL advance portion will be applied against the PPP forgiveness amount as repayment to the SBA upon approval of the PPP forgiveness application. (3) On February 12, 2021, the Company issued notes payable of $ 1,404,000 1,094,691 309,309 |
CAPITAL STOCK AND REVERSE STO_2
CAPITAL STOCK AND REVERSE STOCK SPLIT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
SUMMARY OF WARRANTS ACTIVITY | A summary of activity during the period ended June 30, 2021 follows: SUMMARY OF WARRANTS ACTIVITY Warrants Outstanding Weighted Average Shares Exercise Price Outstanding, December 31, 2020 50,000 $ 20.00 Granted 55,467 15.00 Reset feature 9,030 5.80 Exercised (9,030 ) 5.80 Forfeited/canceled - - Outstanding, June 30, 2021 105,467 $ 17.37 |
SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS | The following table summarizes information relating to outstanding and exercisable warrants as of June 30, 2021: SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS Warrants Outstanding Warrants Exercisable Number of Weighted Average Remaining Weighted Average Number of Weighted Average Shares Contractual life Exercise Price Shares Exercise Price 50,000 4.45 $ 20.00 50,000 $ 20.00 55,467 4.81 $ 15.00 55,467 $ 15.00 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
SCHEULE OF STOCK OPTION ACTIVITY | The following summarizes the stock option activity for the six months ended June 30, 2021: SCHEULE OF STOCK OPTION ACTIVITY Weighted-Average Options Outstanding Exercise Price Balance as of December 31, 2020 5,875 $ 96.99 Grants 6,596 40.81 Exercised - - Cancelled - - Balance as of June 30, 2021 12,471 $ 67.28 |
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS FOR STOCK OPTIONS GRANTED | SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS FOR STOCK OPTIONS GRANTED Expected term (years) 5.74 Expected stock price volatility 296.17 % Weighted-average risk-free interest rate 0.64 % Expected dividend $ 0.00 |
SCHEDULE OF STOCK OPTIONS VESTED AND EXPECTED TO VEST | The following summarizes certain information about stock options vested and expected to vest as of June 30, 2021: SCHEDULE OF STOCK OPTIONS VESTED AND EXPECTED TO VEST Number of Remaining Contractual Life Weighted- Average Options (In Years) Exercise Price Outstanding 12,471 9.33 $ 67.28 Exercisable 754 8.67 $ 490.70 Expected to vest 11,717 9.37 $ 40.07 |
SCHEDULE OF RESTRICTED STOCK ACTIVITY | The following summarizes the restricted stock activity for the six months ended June 30, 2021: SCHEDULE OF RESTRICTED STOCK ACTIVITY Weighted-Average Shares Fair Value Balance as of December 31, 2020 7,356 93.61 Shares of restricted stock granted 4,501 51.40 Exercised - - Cancelled - - Balance as of Mach 31, 2021 11,857 77.591 |
SCHEDULE OF RESTRICTED STOCK AWARD | SCHEDULE OF RESTRICTED STOCK AWARD June 30, December 31, Number of Restricted Stock Awards 2021 2020 Vested 3,350 226 Non-vested 8,507 7,130 |
SCHEDULE OF ANTI-DILUTIVE BASIC
SCHEDULE OF ANTI-DILUTIVE BASIC AND DILUTED EARNINGS PER SHARE (Details) - shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Affiliate, Collateralized Security [Line Items] | ||
Antidilutive earnings per share | 150,117,938 | 1,751,101 |
Stock Options [Member] | ||
Affiliate, Collateralized Security [Line Items] | ||
Antidilutive earnings per share | 12,471 | 498 |
Warrant [Member] | ||
Affiliate, Collateralized Security [Line Items] | ||
Antidilutive earnings per share | 105,467 | 137,595 |
Convertible Notes [Member] | ||
Affiliate, Collateralized Security [Line Items] | ||
Antidilutive earnings per share | 279,008 | |
Series A Preferred Stock [Member] | ||
Affiliate, Collateralized Security [Line Items] | ||
Antidilutive earnings per share | 150,000,000 | 1,334,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||
Share-based compensation expense | $ 680,000 | $ 699,000 |
SUMMARY OF COMPONENTS OF PROPER
SUMMARY OF COMPONENTS OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 503,334 | $ 424,314 |
Accumulated depreciation | (171,478) | (99,965) |
Property and equipment, net of accumulated depreciation | 331,856 | 324,349 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,991 | 2,991 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 500,343 | $ 421,323 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 71,513 | $ 31,975 |
Payments to purchase property and equipment | $ 79,020 | $ 5,081 |
SCHEDULE OF INTELLECTUAL PROPER
SCHEDULE OF INTELLECTUAL PROPERTY (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Intellectual property | $ 5,304,851 | $ 5,304,851 |
Accumulated amortization | (3,476,988) | (2,993,944) |
Intellectual property, net of accumulated amortization | 1,827,863 | 2,310,907 |
Word press GDPR Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intellectual property | 46,800 | 46,800 |
ARALOC [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intellectual property | 1,850,000 | 1,850,000 |
ArcMail License [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intellectual property | 1,445,000 | 1,445,000 |
Data Express [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intellectual property | 1,388,051 | 1,388,051 |
File Facets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intellectual property | 135,000 | 135,000 |
IntellyWP [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intellectual property | 135,000 | 135,000 |
Resilient Network Systems [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intellectual property | $ 305,000 | $ 305,000 |
SCHEDULE OF FUTURE AMORTIZATION
SCHEDULE OF FUTURE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 (excluding the six months ended June 30, 2021) | $ 483,044 | |
2022 | 860,484 | |
2023 | 441,585 | |
2024 | 27,000 | |
Thereafter | 15,750 | |
Intellectual property, net of accumulated amortization | $ 1,827,863 | $ 2,310,907 |
INTELLECTUAL PROPERTY (Details
INTELLECTUAL PROPERTY (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 483,044 | $ 877,876 |
SUMMARY OF ACCOUNTS PAYABLE AND
SUMMARY OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 216,947 | $ 178,319 |
Payroll liabilities | 100,361 | 102,793 |
Credit cards | 47,505 | 31,918 |
Accrued dividend - preferred stock | 6,414 | 484 |
Accrued liabilities | 40,000 | 87,500 |
Accounts payable and accrued liabilities | $ 411,227 | $ 401,014 |
SUMMARY OF CHANGES IN DEFERRED
SUMMARY OF CHANGES IN DEFERRED REVENUE (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance, beginning of period | $ 1,518,163 |
Deferral of revenue | 1,021,125 |
Recognition of deferred revenue | (1,449,241) |
Balance, end of period | $ 1,090,047 |
SCHEDULE OF DEFERRED REVENUE (D
SCHEDULE OF DEFERRED REVENUE (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Current | $ 1,065,120 | $ 1,478,430 |
Non-current | 24,927 | 39,733 |
Deferred revenue | $ 1,090,047 | $ 1,518,163 |
SCHEDULE OF FUTURE MINIMUM LEAS
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER OPERATING LEASES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Leases | ||
2021 (excluding the six months ended June 30, 2021) | $ 61,800 | |
2022 | 127,300 | |
2023 | 131,150 | |
Thereafter | ||
Total lease payment | 320,250 | |
Less: Imputed interest | (31,205) | |
Operating lease liabilities | 289,045 | |
Operating lease liability - current | 106,125 | $ 100,170 |
Operating lease liability - non-current | $ 182,920 | $ 237,961 |
SCHEDULE OF OTHER SUPPLEMENTAL
SCHEDULE OF OTHER SUPPLEMENTAL INFORMATION UNDER OPERATING LEASE (Details) | Jun. 30, 2021 |
Leases | |
Weighted average discount rate | 8.00% |
Weighted average remaining lease term (years) | 2 years 6 months 14 days |
SCHEDULE OF FUTURE MINIMUM LE_2
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER FINANCE LEASES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Leases | ||
2021 (excluding the six months ended June 30, 2021) | $ 53,266 | |
2022 | 78,379 | |
2023 | 10,496 | |
Thereafter | ||
Total finance lease payment | 142,141 | |
Less: Imputed interest | (12,398) | |
Finance lease liabilities | 129,743 | |
Finance lease liability | 87,829 | $ 90,565 |
Finance lease liability - non-current | $ 41,914 | $ 83,109 |
SCHEDULE OF FINANCE LEASE ASSET
SCHEDULE OF FINANCE LEASE ASSETS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Leases | ||
Finance lease assets | $ 267,284 | $ 267,284 |
Accumulated depreciation | (126,486) | (87,337) |
Finance lease assets, net of accumulated depreciation | $ 140,798 | $ 179,947 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Leases | |||
Lessee, Operating Lease, Description | We have a noncancelable operating lease for our office facility that expires in 2024. | ||
Lease expense | $ 49,000 | $ 52,000 | |
Security deposit | $ 10,000 | $ 10,000 | |
Capital lease term | 3 years | ||
Capital leases annual interest rate | 12.00% | ||
Capital lease obligations current | $ 87,829 | 90,565 | |
Capital lease obligations noncurrent | 41,914 | 83,109 | |
Capital lease security deposit | $ 10,944 | $ 10,944 |
SCHEDULE OF CONVERTIBLE NOTES P
SCHEDULE OF CONVERTIBLE NOTES PAYABLE (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Convertible notes payable, Gross | $ 214,500 | $ 1,526,000 |
Less debt discount and debt issuance cost | (87,727) | (282,232) |
Convertible notes payable | 126,773 | 1,243,768 |
Less current portion of convertible notes payable | 114,500 | 1,243,768 |
Long-term convertible notes payable | 12,273 | |
Issued in Fiscal Year 2020 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible notes payable, Gross | 100,000 | 1,526,000 |
Issued in Fiscal Year 2021 [Member] | ||
Short-term Debt [Line Items] | ||
Convertible notes payable, Gross | $ 114,500 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | ||||
Interest expense | $ 14,556 | $ 169,760 | ||
Amortization of debt discount | 1,448,308 | 816,949 | ||
Derivative liability | 150,000 | |||
Convertible outstanding amount | 126,773 | $ 1,243,768 | ||
Proceeds from convertible debt | 100,000 | 652,250 | ||
Common stock issued for conversion, value | $ 3,004,649 | 1,523,258 | 4,329,159 | |
Convertible Note [Member] | ||||
Short-term Debt [Line Items] | ||||
Amortization of debt discount | 335,663 | $ 718,909 | ||
Debt converted into common stock | $ 1,340,150 | |||
Debt converted into common stock, shares | 101,748 | |||
Derivative liability | $ 183,108 | |||
Common stock issued for conversion, shares | 2,863 | |||
Common stock issued for conversion, value | $ 88,738 | |||
Promissory Notes - Issued in Fiscal Year 2020 [Member] | ||||
Short-term Debt [Line Items] | ||||
Convertible outstanding amount | $ 2,466,500 | |||
Debt instrument maturity date, description | Convertible at the option of the holders at issuance date, after maturity date or 6 months after issuance date. | |||
Debt conversion, description | Conversion prices are typically based on the discounted (25% to 50% discount) average closing prices or lowest trading prices of the Company’s shares during various periods prior to conversion. Certain note has a fixed conversion price ranging from $0.001 to $0.007. Certain note has a fixed conversion price of $0.5 for a first 5 months Certain note allows the principal amount will increase by $15,000 and the discount rate of conversion price will decrease by 18% if the conversion price is less than $$0.01. | |||
Promissory Notes - Issued in Fiscal Year 2020 [Member] | Minimum [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument term | 5 months | |||
Debt interest rate | 0.00% | |||
Promissory Notes - Issued in Fiscal Year 2020 [Member] | Maximum [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument term | 60 months | |||
Debt interest rate | 25.00% | |||
Promissory Notes - Issued During First Six Months of Fiscal Year 2021 [Member] | ||||
Short-term Debt [Line Items] | ||||
Convertible outstanding amount | $ 114,500 | |||
Debt instrument term | 90 days | |||
Debt interest rate | 5.00% | |||
Debt instrument maturity date, description | Convertible at the option of the holders after maturity date | |||
Debt conversion, description | Conversion price is the lesser of (i) $0.01 or (ii) 61% multiplied by the average of two lowest trading prices during the 20 trading day period prior to the conversion date | |||
Proceeds from convertible debt | $ 100,000 | |||
Financing fee | $ 14,500 |
SCHEDULE OF FAIR VALUE OF LIABI
SCHEDULE OF FAIR VALUE OF LIABILITIES MEASURED ON RECURRING BASIS (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Measurement Input, Expected Term [Member] | Minimum [Member] | ||
Derivative [Line Items] | ||
Expected term | 5 months 23 days | 3 months |
Measurement Input, Expected Term [Member] | Maximum [Member] | ||
Derivative [Line Items] | ||
Expected term | 1 year | 5 years |
Measurement Input, Price Volatility [Member] | Minimum [Member] | ||
Derivative [Line Items] | ||
Derivative liability, measurement input, percentage | 186 | 187 |
Measurement Input, Price Volatility [Member] | Maximum [Member] | ||
Derivative [Line Items] | ||
Derivative liability, measurement input, percentage | 302 | 464 |
Measurement Input, Expected Dividend Rate [Member] | ||
Derivative [Line Items] | ||
Derivative liability, measurement input, percentage | ||
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | ||
Derivative [Line Items] | ||
Derivative liability, measurement input, percentage | 0.04 | 0.01 |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | ||
Derivative [Line Items] | ||
Derivative liability, measurement input, percentage | 0.16 | 1.57 |
SCHEDULE OF CHANGES IN DERIVATI
SCHEDULE OF CHANGES IN DERIVATIVE LIABILITIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Change in derivative liabilities recognized as loss on derivative | $ (178,398) | $ (772,664) | $ (363,654) | $ (9,278,815) |
Derivative liability ending | 150,000 | 150,000 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative liability beginning | ||||
Addition of new derivatives recognized as debt discounts | 150,000 | |||
Addition of new derivatives recognized as day-one loss | 283,264 | |||
Derivative liabilities settled upon conversion of convertible note | (513,654) | |||
Change in derivative liabilities recognized as loss on derivative | 80,390 | |||
Derivative liability ending |
DERIVATIVE LIABILITIES (Details
DERIVATIVE LIABILITIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Fair value of derivative liability | $ 433,264 | $ 433,264 | ||
Derivative liability | 150,000 | 150,000 | ||
Loss on derivative | 283,264 | |||
Aggregate loss on derivatives | $ 178,398 | $ 772,664 | $ 363,654 | $ 9,278,815 |
SCHEDULE OF NOTES PAYABLE (Deta
SCHEDULE OF NOTES PAYABLE (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | ||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 3,757,900 | $ 1,447,138 | |
Less debt discount and debt issuance cost | (360,657) | (289,332) | |
Promissory notes payable | 3,397,243 | 1,157,806 | |
Less current portion of promissory notes payable | 1,587,552 | 585,310 | |
Long-term promissory notes payable | 1,809,691 | 572,496 | |
10% Promissory Note Originated In October 2019 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 25,060 | $ 25,060 | |
Maturity | Due on demand | Due on demand | |
Interest Rate | 10.00% | 10.00% | |
Promissory Note - Originated In October 2019 One [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 25,060 | $ 25,060 | |
Maturity | Due on demand | Due on demand | |
Interest Rate | 10.00% | 10.00% | |
Promissory Note - Originated In April 2020 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 10,000 | $ 10,000 | |
Maturity | Due on demand | Due on demand | |
Interest Rate | 0.00% | 0.00% | |
Paycheck Protection Program Promissory Note - Originated In April 2020 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | [1] | $ 339,000 | $ 339,000 |
Maturity | [1] | 2 years | 2 years |
Interest Rate | [1] | 1.00% | 1.00% |
Economic Injury Disaster Loan - Originated In May 2020 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | [2] | $ 150,000 | $ 150,000 |
Maturity | [2] | 30 years | 30 years |
Interest Rate | [2] | 1.00% | 1.00% |
Promissory Note - Originated In June 2020 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 43,356 | ||
Interest Rate | 16.00% | 16.00% | |
Daily/monthly payment | $ 3,942 | ||
Promissory Note - Originated In September 2020 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 65,593 | $ 80,730 | |
Maturity | 36 months | 36 months | |
Interest Rate | 14.00% | 14.00% | |
Daily/monthly payment | $ 2,873 | $ 2,873 | |
Promissory Note - Originated In October 2020 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 158,169 | ||
Interest Rate | 25.00% | 25.00% | |
Daily/monthly payment | $ 2,293 | ||
Promissory Note - Originated In November 2020 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 170,886 | ||
Interest Rate | 25.00% | 25.00% | |
Daily/monthly payment | $ 4,497 | ||
Promissory Note - Originated In November 2020 One [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 105,972 | $ 394,846 | |
Interest Rate | 25.00% | 25.00% | |
Daily/monthly payment | $ 6,999 | $ 6,999 | |
Promissory Note - Originated In December 2020 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 41,535 | $ 50,031 | |
Maturity | 36 months | 36 months | |
Interest Rate | 8.00% | 8.00% | |
Daily/monthly payment | $ 1,854 | $ 1,854 | |
Promissory Note - Originated In January 2021 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 1,364,000 | ||
Maturity | 5 years | ||
Interest Rate | 4.00% | ||
Promissory Note - Originated In January 2021 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 61,753 | ||
Maturity | 36 months | ||
Interest Rate | 18.00% | ||
Daily/monthly payment | $ 2,675 | ||
Promissory note - originated in January 2021 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 10,610 | ||
Interest Rate | 25.00% | ||
Daily/monthly payment | $ 4,497 | ||
Promissory Note - Originated In March 2021 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 21,750 | ||
Interest Rate | 15.00% | ||
Daily/monthly payment | $ 870 | ||
Promissory note - originated in April 2021 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 832,000 | ||
Maturity | 1 year | ||
Interest Rate | 12.00% | ||
Promissory note - originated in April 2021 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 394,146 | ||
Interest Rate | 24.00% | ||
Daily/monthly payment | $ 8,284 | ||
Promissory note - originated in June 2021 [Member] | |||
Schedule of Capitalization, Long-term Debt [Line Items] | |||
Promissory notes payable, Gross | $ 311,421 | ||
Interest Rate | 25.00% | ||
Daily/monthly payment | $ 3,971 | ||
[1] | In response to the Coronavirus (COVID-19) pandemic, the US Government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2020. The CARES Act provides fast and direct economic assistance for entrepreneurs and small businesses through the US Small Business Administration (“SBA”). | ||
[2] | The Company received an advance under the Economic Injury Disaster Loan (EIDL) program. |
SCHEDULE OF NOTES PAYABLE (De_2
SCHEDULE OF NOTES PAYABLE (Details) (Parenthetical) - USD ($) | Feb. 12, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Notes Payable | ||||||
Note payable issued for settlement of License fee payable | $ 1,404,000 | $ 1,404,000 | ||||
License fee payable | 1,094,691 | $ 1,094,691 | ||||
Loss on loan settlement | $ 309,309 | $ (227,501) | $ (54,000) |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest expense | $ 14,556 | $ 169,760 |
Amortization of debt discount | 1,448,308 | 816,949 |
Notes Payable, Other Payables [Member] | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Interest expense | 57,209 | 18,878 |
Amortization of debt discount | $ 995,066 | $ 98,040 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Jun. 30, 2021 | Sep. 16, 2019 |
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Original principal amount | $ 832,000 | |
D M B Note [Member] | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Original principal amount | $ 940,000 |
SUMMARY OF WARRANTS ACTIVITY (D
SUMMARY OF WARRANTS ACTIVITY (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Equity [Abstract] | |
Warrants Outstanding Beginning balance, Shares | shares | 50,000 |
Warrants Outstanding Beginning balance, Weighted Average Exercise Price | $ / shares | $ 20 |
Warrants Granted, Shares | shares | 55,467 |
Warrants Granted, Weighted Average Exercise Price | $ / shares | $ 15 |
Warrants Reset feature, Shares | shares | 9,030 |
Warrants Reset feature, Weighted Average Exercise Price | $ / shares | $ 5.80 |
Warrants Exercised, Shares | shares | (9,030) |
Warrants Exercised, Weighted Average Exercise Price | $ / shares | $ 5.80 |
Warrants Forfeited/canceled, Shares | shares | |
Warrants Forfeited/canceled, Weighted Average Exercise Price | $ / shares | |
Warrants Outstanding Ending balance, Shares | shares | 105,467 |
Warrants Outstanding Ending balance, Weighted Average Exercise Price | $ / shares | $ 17.37 |
SCHEDULE OF OUTSTANDING AND EXE
SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of shares,Warrants Outstanding | 105,467 | 50,000 |
Number of Shares, Warrants Exercisable | 55,467 | |
Weighted Average Exercise Price, Warrants Exercisable | $ 15 | |
Warrant One [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of shares,Warrants Outstanding | 50,000 | |
Weighted Average Remaining Contractual life, Warrants Outstanding | 4 years 5 months 12 days | |
Weighted Average Exercise Price, Warrants Outstanding | $ 20 | |
Number of Shares, Warrants Exercisable | 50,000 | |
Weighted Average Exercise Price, Warrants Exercisable | $ 20 | |
Warrant Two [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of shares,Warrants Outstanding | 55,467 | |
Weighted Average Remaining Contractual life, Warrants Outstanding | 4 years 9 months 21 days | |
Weighted Average Exercise Price, Warrants Outstanding | $ 15 | |
Number of Shares, Warrants Exercisable | 55,467 | |
Weighted Average Exercise Price, Warrants Exercisable | $ 15 |
CAPITAL STOCK AND REVERSE STO_3
CAPITAL STOCK AND REVERSE STOCK SPLIT (Details Narrative) - USD ($) | Jun. 10, 2021 | Feb. 19, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Jul. 01, 2021 | Apr. 21, 2021 | Apr. 20, 2021 |
Class of Stock [Line Items] | ||||||||||
Common stock authorized | 1,800,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 380,000,000 | 180,000,000 | ||||
Common stock, authorized reduction | 1,000,000,000 | |||||||||
Reverse stock split | common stock in a ratio of 1-for-2,000. The preferred stock of the Company was not changed. The 1-for-2,000 Reverse Stock split was processed by FINRA and became effective at the start of trading on July 1, 2021. As a result of the Reverse Stock Split, every 2,000 shares of the Company’s issued and outstanding common stock, par value $0.001 per share, were converted into one (1) share of common stock, par value $0.001 per share. No fractional shares will be issued in connection with the Reverse Stock Split. Stockholders who otherwise would be entitled to receive fractional shares because they hold a number of pre-Reverse Stock Split shares of the Company’s common stock not evenly divisible by 2,000 will have the number of post-Reverse Stock Split shares of the Company’s common stock to which they are entitled rounded up to the nearest whole number of shares of the Company’s common stock. | not less than 1-for-10 and not more than 1-for-2,000 | ||||||||
Stock issued during period, value | $ 846,801 | |||||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Common Stock, Voting Rights | one vote per share | |||||||||
Common Stock, Shares, Outstanding | 743,246 | 743,246 | 522,006 | 2,000 | ||||||
Financing cost | $ 10,000 | $ 10,000 | ||||||||
Financing discount | $ 143,199 | $ 143,199 | ||||||||
Shares issued for service | 9,168 | |||||||||
Shares issued upon exercise of warrant | 8,923 | 8,923 | ||||||||
Number of reverse stock split shares issued | 669 | |||||||||
Number of warrants to acquire common stock | 55,467 | |||||||||
Warrants granted, weighted average exercise price | $ 15 | |||||||||
Number of warrants exercisable | 55,467 | 55,467 | ||||||||
Weighted average exercise price, warrants exercisable | $ 15 | $ 15 | ||||||||
Original principal amount | $ 832,000 | $ 832,000 | ||||||||
Commercial Paper [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Coversion of stock shares issued | 2,863 | |||||||||
Common Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares issued during the period | 83,336 | |||||||||
Stock issued during period, value | $ 83 | |||||||||
Stock issued for conversion of debt | 127,194,938 | 101,748 | 134,019,210 | |||||||
Number of reverse stock split shares issued | 669 | 669 | ||||||||
Shares Issued for Conversion of Debt [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock issued for conversion of debt | 101,748 | |||||||||
Shares Issuance for Cash [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares issued during the period | 83,336 | |||||||||
Shares Issuance for Cash [Member] | Common Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock issued during period, value | $ 1,000,000 | |||||||||
Series A Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares issued | 150,000 | 150,000 | 150,000 | |||||||
Preferred stock, shares outstanding | 150,000 | 150,000 | 150,000 | |||||||
Debt converted of common stock, shares | 1,000 | 1,000 | ||||||||
Preferred stock voting rights | entitled to vote 15,000 shares of common stock on all matters submitted to a vote by shareholders voting common stock | entitled to vote 15,000 shares of common stock on all matters submitted to a vote by shareholders voting common stock | ||||||||
Stock issued during period, value | ||||||||||
Series B Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares issued | 26,650 | 26,650 | 5,300 | |||||||
Preferred stock, shares outstanding | 26,650 | 26,650 | 5,300 | |||||||
Preferred stock, stated value | $ 10 | $ 10 | $ 10 | |||||||
Preferred stock, dividend rate | 9.00% | |||||||||
Shares issued during the period | 33,210 | |||||||||
Stock issued for conversion of debt | 6,560 | |||||||||
Accrued interest | $ 65,600 | |||||||||
Stock issued for conversion | 14,533 | |||||||||
Coversion of stock shares issued | 14,533 | |||||||||
Series B Preferred Stock [Member] | Issuance of Shares [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares issued during the period | 26,650 | |||||||||
Stock issued during period, value | $ 266,500 | |||||||||
Financing fee | $ 16,500 | $ 16,500 | ||||||||
Minimum [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, authorized reduction | 10,000,000 | |||||||||
Maximum [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, authorized reduction | 1,000,000,000 |
SCHEULE OF STOCK OPTION ACTIVIT
SCHEULE OF STOCK OPTION ACTIVITY (Details) - Employees Consultants and Advisors [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |
Options Outstanding, Balance Beginning | shares | 5,875 |
Weighted-Average Exercise Price, Balance Beginning | $ / shares | $ 96.99 |
Options Outstanding, Grants | shares | 6,596 |
Weighted-Average Exercise Price, Grants | $ / shares | $ 40.81 |
Options Outstanding, Exercised | shares | |
Weighted-Average Exercise Price, Exercised | $ / shares | |
Options Outstanding, Cancelled | shares | |
Weighted-Average Exercise Price, Cancelled | $ / shares | |
Options Outstanding, Balance Ending | shares | 12,471 |
Weighted-Average Exercise Price, Balance Ending | $ / shares | $ 67.28 |
SCHEDULE OF WEIGHTED AVERAGE AS
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS FOR STOCK OPTIONS GRANTED (Details) - Stock Options [Member] | 6 Months Ended |
Jun. 30, 2021 | |
Option Indexed to Issuer's Equity [Line Items] | |
Expected term (years) | 5 years 8 months 26 days |
Expected stock price volatility | 296.17% |
Weighted-average risk-free interest rate | 0.64% |
Expected dividend | 0.00% |
SCHEDULE OF STOCK OPTIONS VESTE
SCHEDULE OF STOCK OPTIONS VESTED AND EXPECTED TO VEST (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Equity [Abstract] | |
Number of Options, Outstanding | shares | 12,471 |
Weighted-Average Remaining Contractual Life (In Years), Outstanding | 9 years 3 months 29 days |
Weighted-Average Exercise Price, Outstanding | $ / shares | $ 67.28 |
Number of Options, Exercisable | shares | 754 |
Weighted-Average Remaining Contractual Life (In Years), Exercisable | 8 years 8 months 1 day |
Weighted-Average Exercise Price, Exercisable | $ / shares | $ 490.70 |
Number of Options, Expected to vest | shares | 11,717 |
Weighted-Average Remaining Contractual Life (In Years), Expected to vest | 9 years 4 months 13 days |
Weighted-Average Exercise Price, Expected to vest | $ / shares | $ 40.07 |
SCHEDULE OF RESTRICTED STOCK AC
SCHEDULE OF RESTRICTED STOCK ACTIVITY (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Restricted Stock, Exercised | 9,030 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Restricted Stock, Balance Beginning | 7,356 |
Weighted-Average Fair Value of Restricted Stock, Balance Beginning | $ / shares | $ 93.61 |
Number of Restricted Stock, Shares of restricted stock granted | 4,501 |
Weighted-Average Fair Value of Restricted Stock, Shares of restricted stock granted | $ / shares | $ 51.40 |
Number of Restricted Stock, Exercised | |
Weighted-Average Fair Value of Restricted Stock, Exercised | $ / shares | |
Number of Restricted Stock, Cancelled | |
Weighted-Average Fair Value of Restricted Stock, Cancelled | $ / shares | |
Number of Restricted Stock, Balance Ending | 11,857 |
Weighted-Average Fair Value of Restricted Stock, Balance Ending | $ / shares | $ 77.591 |
SCHEDULE OF RESTRICTED STOCK AW
SCHEDULE OF RESTRICTED STOCK AWARD (Details) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
Vested | 3,350 | 226 |
Non-vested | 8,507 | 7,130 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Restricted Stock [Member] | ||
Option Indexed to Issuer's Equity [Line Items] | ||
Unrecognized compensation and non-vested | $ 85,993 | $ 144,964 |
Stock Options [Member] | ||
Option Indexed to Issuer's Equity [Line Items] | ||
Share-based compensation, vesting period | 1 year | |
Weighted average granted date fair value stock options granted | $ 43.01 | |
Fair value of option vested | $ 284,000 | |
Unrecognized compensation and non-vested | $ 391,474 | $ 211,661 |
Stock Options [Member] | Maximum [Member] | ||
Option Indexed to Issuer's Equity [Line Items] | ||
Share-based compensation, expiration term | 10 years |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Sep. 16, 2019 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Notes payable | $ 3,397,243 | $ 3,397,243 | $ 1,157,806 | |||
Due to related party | 418,507 | 418,507 | 561,230 | |||
Repayment of notes payable | 2,734,275 | $ 426,486 | ||||
Borrowings | 271,464 | 132,656 | ||||
Operating expenses | 1,360,616 | $ 1,693,589 | 2,889,605 | $ 3,239,641 | ||
Chief Executive Officer [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Borrowings | 180,000 | |||||
Operating expenses | 91,463 | |||||
Repayment of debt | 254,456 | |||||
DMB Group LLC [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Due to related party | 418,507 | 418,507 | 561,230 | |||
Asset Purchase Agreement [Member] | DMB Group LLC [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Notes payable | $ 245,652 | 245,652 | $ 405,382 | $ 940,000 | ||
Due to related party | $ 97,689 | |||||
Repayment of notes payable | 159,731 | |||||
Interest expenses | $ 6,915 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Jul. 16, 2021 | Jul. 12, 2021 | Jul. 30, 2021 | Jul. 17, 2021 | Jul. 07, 2021 | Jul. 01, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | ||||||||
Common stock, shares issued | 2,000 | 743,246 | 522,006 | |||||
Common stock, shares outstanding | 2,000 | 743,246 | 522,006 | |||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Principal amount | $ 832,000 | |||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Value of exchange shares of preferred stock | $ 40,000 | |||||||
Subsequent Event [Member] | Purchase Agreement [Member] | Auctus Fund, LLC [Member] | Senior Secured Promissory Note [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Principal amount | $ 282,000 | |||||||
Gross proceeds from note | $ 250,000 | |||||||
Interest rate | 12.00% | |||||||
Debt repayment description | Repayment of all amounts due under the Note shall be tendered on the 12-month anniversary of the Note. | |||||||
Subsequent Event [Member] | Security Agreement [Member] | Auctus Fund, LLC [Member] | Second Warrant [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Warrant issued | 62,667 | |||||||
Exercise price | $ 4.50 | |||||||
Subsequent Event [Member] | Security Agreement [Member] | Auctus Fund, LLC [Member] | First Warrant [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Warrant issued | 62,667 | |||||||
Exercise price | $ 4.50 | |||||||
Subsequent Event [Member] | Common Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of conversion shares of common stock | 7,699 | 6,280 | ||||||
Subsequent Event [Member] | Series B Preferred Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of exchange shares of preferred stock | 4,375 | |||||||
Number of conversion shares of common stock | 2,000 | 1,800 |