Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 04, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | QuoteMedia, Inc. | |
Entity Central Index Key | 0001101433 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Entity Common Stock Shares Outstanding | 90,477,798 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-28599 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 91-2008633 | |
Entity Interactive Data Current | Yes | |
Entity Address Address Line 1 | 17100 East Shea Boulevard | |
Entity Address Address Line 2 | Suite 230 | |
Entity Address City Or Town | Fountain Hills | |
Entity Address State Or Province | AZ | |
Entity Address Postal Zip Code | 85268 | |
City Area Code | 602 | |
Local Phone Number | 830-1443 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 740,100 | $ 477,987 |
Accounts receivable, net | 875,130 | 910,277 |
Prepaid expenses | 227,831 | 231,694 |
Other current assets | 106,864 | 29,092 |
Total current assets | 1,949,925 | 1,649,050 |
Deposits | 15,353 | 15,002 |
Property and equipment, net | 4,553,001 | 4,208,250 |
Goodwill | 110,000 | 110,000 |
Intangible assets | 69,604 | 73,572 |
Operating lease right-of-use assets (see note 6) | 411,830 | 506,219 |
Total assets | 7,109,713 | 6,562,093 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 2,175,519 | 2,512,837 |
Current portion of deferred revenue (see note 4) | 1,530,329 | 1,166,848 |
Current portion of operating lease liabilities (see note 6) | 173,180 | 174,166 |
Total current liabilities | 3,879,028 | 3,853,851 |
Long-term portion of deferred revenue | 278,969 | 0 |
Long-term portion of operating lease liabilities (see note 6) | 243,020 | 323,685 |
Preferred stock warrant liability (see note 7) | 767,188 | 629,375 |
Mezzanine equity: | ||
Preferred stock, 10,000,000 shares authorized:Series A Redeemable Convertible Preferred stock, $0.001 par value,550,000 shares designated; shares issued and outstanding:123,685 at June 30, 2023 and December 31, 2022 (see note 7) | 2,983,857 | 2,983,857 |
Stockholders' deficit: | ||
Common stock, $0.001 par value, 150,000,000 shares authorized, shares issued and outstanding: 90,477,798 at June 30, 2023 and December 31, 2022 | 90,479 | 90,479 |
Additional paid-in capital | 18,903,272 | 18,903,272 |
Accumulated deficit | (20,036,100) | (20,222,426) |
Total stockholders' deficit | (1,042,349) | (1,228,675) |
Total liabilities, mezzanine equity and stockholders' deficit | $ 7,109,713 | $ 6,562,093 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Shares Issued | 90,477,798 | 90,477,798 |
Common Stock, Shares Outstanding | 90,477,798 | 90,477,798 |
Preferred Stock, Par Value | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Issued | 123,685 | 123,685 |
Preferred Stock, Outstanding | 123,685 | 123,685 |
Convertible Preferred Stock Designated | 550,000 | 550,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||
REVENUE (see note 4) | $ 4,712,977 | $ 4,298,957 | $ 9,463,025 | $ 8,562,753 |
COST OF REVENUE | 2,324,798 | 2,262,507 | 4,644,733 | 4,502,623 |
GROSS PROFIT | 2,388,179 | 2,036,450 | 4,818,292 | 4,060,130 |
OPERATING EXPENSES | ||||
Sales and marketing | 829,712 | 744,164 | 1,653,765 | 1,492,432 |
General and administrative | 770,187 | 783,980 | 1,622,701 | 1,455,871 |
Software development | 684,015 | 534,873 | 1,314,088 | 1,004,929 |
Total operating expenses | 2,283,914 | 2,063,017 | 4,590,554 | 3,953,232 |
OPERATING INCOME (LOSS) | 104,265 | (26,567) | 227,738 | 106,898 |
OTHER EXPENSES | ||||
Foreign exchange loss | (30,073) | (135,226) | (38,074) | (117,636) |
Interest expense | (404) | (507) | (1,856) | (1,731) |
Total other income expense | (30,477) | (135,733) | (39,930) | (119,367) |
NET INCOME (LOSS) BEFORE INCOME TAXES | 73,788 | (162,300) | 187,808 | (12,469) |
Income tax expense | (752) | (780) | (1,482) | (1,570) |
NET INCOME (LOSS) | $ 73,036 | $ (163,080) | $ 186,326 | $ (14,039) |
EARNINGS PER SHARE (see note 8) | ||||
Basic earnings (loss) per share | $ 0 | $ 0 | $ 0 | $ 0 |
Diluted earnings (loss) per share | $ 0 | $ 0 | $ 0 | $ 0 |
WEIGHTED AVERAGE SHARES OUTSTANDING (see note 8) | ||||
Basic | 90,477,798 | 90,477,798 | 90,477,798 | 90,477,798 |
Diluted | 121,000,418 | 90,477,798 | 120,876,073 | 90,477,798 |
CONDENSED STATEMENTS OF CHANGES
CONDENSED STATEMENTS OF CHANGES IN SERIES A REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (UNAUDITED) - USD ($) | Total | Series A Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Balance, shares at Dec. 31, 2021 | 123,685 | 90,477,798 | |||
Balance, amount at Dec. 31, 2021 | $ (1,688,658) | $ 2,983,857 | $ 90,479 | $ 18,887,759 | $ (20,666,896) |
Stock-based compensation | 8,478 | 0 | 0 | 8,478 | 0 |
Net loss | (14,039) | $ 0 | $ 0 | 0 | (14,039) |
Balance, shares at Jun. 30, 2022 | 123,685 | 90,477,798 | |||
Balance, amount at Jun. 30, 2022 | (1,694,219) | $ 2,983,857 | $ 90,479 | 18,896,237 | (20,680,935) |
Balance, shares at Mar. 31, 2022 | 123,685 | 90,477,798 | |||
Balance, amount at Mar. 31, 2022 | (1,535,378) | $ 2,983,857 | $ 90,479 | 18,891,998 | (20,517,855) |
Stock-based compensation | 4,239 | 0 | 0 | 4,239 | 0 |
Net loss | (163,080) | $ 0 | $ 0 | 0 | (163,080) |
Balance, shares at Jun. 30, 2022 | 123,685 | 90,477,798 | |||
Balance, amount at Jun. 30, 2022 | (1,694,219) | $ 2,983,857 | $ 90,479 | 18,896,237 | (20,680,935) |
Balance, shares at Dec. 31, 2022 | 123,685 | 90,477,798 | |||
Balance, amount at Dec. 31, 2022 | (1,228,675) | $ 2,983,857 | $ 90,479 | 18,903,272 | (20,222,426) |
Net loss | 186,326 | $ 0 | $ 0 | 0 | 186,326 |
Balance, shares at Jun. 30, 2023 | 123,685 | 90,477,798 | |||
Balance, amount at Jun. 30, 2023 | (1,042,349) | $ 2,983,857 | $ 90,479 | 18,903,272 | (20,036,100) |
Balance, shares at Mar. 31, 2023 | 123,685 | 90,477,798 | |||
Balance, amount at Mar. 31, 2023 | (1,115,385) | $ 2,983,857 | $ 90,479 | 18,903,272 | (20,109,136) |
Net loss | 73,036 | $ 0 | $ 0 | 0 | 73,036 |
Balance, shares at Jun. 30, 2023 | 123,685 | 90,477,798 | |||
Balance, amount at Jun. 30, 2023 | $ (1,042,349) | $ 2,983,857 | $ 90,479 | $ 18,903,272 | $ (20,036,100) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||
Net income (loss) | $ 186,326 | $ (14,039) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,271,683 | 999,734 |
Stock-based compensation expense - common stock warrants | 0 | 8,478 |
Stock-based compensation expense - preferred stock warrants | 137,813 | 73,690 |
Changes in assets and liabilities: | ||
Accounts receivable | 35,147 | (186,787) |
Prepaid expenses | 3,863 | 69,148 |
Other current assets | (77,772) | 22,721 |
Deposits | (351) | (39,482) |
Accounts payable, accrued and other liabilities | (324,580) | 223,844 |
Deferred revenue | 642,450 | 860,043 |
Net cash provided by operating activities | 1,874,579 | 2,017,350 |
INVESTING ACTIVITIES: | ||
Purchase of fixed assets | (37,120) | (80,350) |
Purchase of intangible assets | 0 | (16,313) |
Capitalized application software | (1,575,346) | (1,287,716) |
Net cash used in investing activities | (1,612,466) | (1,384,379) |
FINANCING ACTIVITIES: | ||
Repayment of finance lease obligations | 0 | (1,384) |
Net cash used in financing activities | 0 | (1,384) |
Net increase in cash | 262,113 | 631,587 |
Cash and equivalents, beginning of period | 477,987 | 258,705 |
Cash and equivalents, end of period | $ 740,100 | $ 890,292 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2023 | |
BASIS OF PRESENTATION | |
Basis Of Presentation | 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the generally accepted accounting principles for interim financial statements and instructions for Form 10-Q. Accordingly, they 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, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for a full year. In connection with the preparation of the condensed consolidated financial statements, management evaluated subsequent events after the balance sheet date of June 30, 2023 through the filing of this report. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto for the fiscal year ended December 31, 2022 contained in the Form 10-K filed with the Securities and Exchange Commission dated March 31, 2023. Risks and Uncertainties Adverse macroeconomic conditions, including inflation, slower growth or recession, and higher interest rates could materially adversely affect demand for the Company’s services. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES a) Nature of operations Quotemedia, Inc. (the “Company”) is a software developer and distributor of financial market data and related services to a global marketplace. The Company specializes in the collection, aggregation, and delivery of both delayed and real-time financial data content via the Internet. The Company develops and license software components that deliver dynamic content to banks, brokerage firms, financial institutions, mutual fund companies, online information and financial portals, media outlets, public companies, and corporate intranets. b) Basis of consolidation These consolidated financial statements include the operations of QuoteMedia, Ltd., a wholly owned subsidiary of QuoteMedia, Inc. All intercompany transactions and balances have been eliminated. c) Foreign currency translation and transactions The U.S. dollar is the functional currency of all of the Company’s operations. Foreign currency asset and liability amounts are remeasured into U.S. dollars at end-of-period exchange rates, except for equipment and intangible assets, which are remeasured at historical rates. Foreign currency income and expenses are remeasured at average exchange rates in effect during the year, except for expenses related to balance sheet amounts remeasured at historical exchange rates. Because the U.S. dollar is the functional currency, exchange gains and losses arising from remeasurement of foreign currency-denominated monetary assets and liabilities are included in income in the period in which they occur. d) Allowances for doubtful accounts The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. The Company determines the allowance by reviewing the age of the receivables and assessing the anticipated ability of customers to pay. No collateral is required for any of the receivables and the Company does not usually apply financing charges to outstanding accounts receivable balances. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. The allowance for doubtful accounts was $125,000 and $200,000 as of June 30, 2023 and December 31, 2022, respectively. Bad debt expense was $25,852 and $30,633 for the three-months ended June 30, 2023 and 2022, respectively. Bad debt expense (recovery) was ($38,241) and $36,191 for the six-months ended June 30, 2023 and 2022, respectively. e) Revenue The Company generates substantially all of its revenue from subscriptions for access to its software products and related support. The Company licenses financial market data information on a monthly, quarterly, or annual basis. The Company’s products and services are divided into two main categories: Interactive Content and Data Applications · Proprietary financial software applications and streaming market data feeds · Subscriptions are typically sold for a fixed fee and revenue is recognized ratably over the term of the subscription. Portfolio Management and Real-Time Quote Systems 1. Corporate Quotestream (Business-to-Business) o Web-delivered, embedded applications providing real-time, streaming market quotes and research information targeted to both professionals and non-professional users. o Revenue is typically earned based on customer usage. 2. Individual Quotestream (Business-to-Consumer) o Web-delivered, embedded applications providing real-time, streaming market quotes and research information targeted to non-professional users. o Subscriptions are typically sold for a fixed fee and revenue is recognized ratably over the term of the subscription. The Company does not provide its customers with the right to take possession of its software products at any time. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation The Company executes a signed contract with the customer that specifies services to be provided, the payment amounts and terms, and the period of service, among other terms. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. Upfront set-up or development fees are deferred and recognized over the service term of the contract, as set-up and development fees are not distinct from the market data service contracts to which they relate. The Company considers the following factors when determining if collection of a fee is reasonably assured: customer creditworthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. If these factors do not indicate collection is reasonably assured, revenue is deferred until collection becomes reasonably assured, which is generally upon receipt of cash. Cost of revenue Cost of revenue primarily consists of customer support personnel-related compensation expenses, including salaries, bonuses, benefits, payroll taxes, and stock-based compensation expense, as well as expenses related to third-party hosting costs, software license fees, amortization of capitalized software development costs, amortization of acquired technology intangible assets, and allocated overhead. f) Accounting Pronouncements Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
PRIOR PERIOD RESTATEMENTS
PRIOR PERIOD RESTATEMENTS | 6 Months Ended |
Jun. 30, 2023 | |
PRIOR PERIOD RESTATEMENTS | |
Prior Period Restatements | 3. PRIOR PERIOD RESTATEMENTS Subsequent to the filing of its Quarterly Report for the quarterly period ended March 31, 2022, the Company reassessed its classification of warrants to purchase shares of Series A Redeemable Convertible Preferred Stock (“Compensation Preferred Stock Warrants” – see Financial Statement Note 9 “ Redeemable Convertible Preferred Stock and Stockholders’ Deficit” Distinguishing Liabilities From Equity Statement of Changes in Series A Redeemable Convertible Preferred Stock and Stockholders’ Deficit as of December 31, 2021: · Additional Paid-in Capital was reduced by $750,000. · Accumulated Deficit was reduced by $236,250. |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2023 | |
REVENUE | |
Revenue | 4. REVENUE Disaggregated Revenue The Company provides market data, financial web content solutions and cloud-based applications. Revenue by type of service consists of the following: Three-months ended June 30, Six-months ended June 30, 2023 2022 2023 2022 Portfolio Management Systems Corporate Quotestream $ 1,876,898 $ 1,721,574 $ 3,704,151 $ 3,437,671 Individual Quotestream 474,143 540,530 961,710 1,093,991 Interactive Content and Data APIs 2,361,936 2,036,853 4,797,164 4,031,091 Total revenue $ 4,712,977 $ 4,298,957 $ 9,463,025 $ 8,562,753 Deferred Revenue Changes in deferred revenue for the six-months ended June 30, 2023 and 2022 were as follows: June 30, 2023 June 30, 2022 Deferred revenue at beginning of period $ 1,166,848 $ 622,497 Revenue recognized in the current period from the amounts in the beginning balance (868,395 ) (417,390 ) New deferrals, net of amounts recognized in the current period 1,507,660 1,277,022 Effects of foreign currency translation 3,185 411 Deferred revenue at end of period $ 1,809,298 $ 1,482,540 Current portion of deferred revenue $ 1,530,329 $ 1,482,540 Long-term portion of deferred revenue 278,969 - Total deferred revenue $ 1,809,298 $ 1,482,540 Practical Expedients We apply a practical expedient and do not disclose the value of the remaining performance obligations for contracts that are less than one year in duration, which represent a substantial majority of our revenue. |
RELATED PARTIES
RELATED PARTIES | 6 Months Ended |
Jun. 30, 2023 | |
RELATED PARTIES | |
Related Parties | 5. RELATED PARTIES The Company entered into a five-year office lease with 410734 B.C. Ltd. effective May 1, 2021 for approximately $6,500 per month. David M. Shworan, CEO of Quotemedia Ltd., is a control person of 410734 B.C. Ltd. At June 30, 2023, there were no amounts due to 410734 B.C. Ltd. At December 31, 2022, there was $13,343 due to 410734 B.C. Ltd. The Company entered into a marketing agreement with Bravenet Web Services, Inc. (“Bravenet”) effective November 28, 2019. The Company agreed to pay Bravenet an upfront setup fee of $7,000 upon signing the agreement and a monthly service fee of $2,500 starting February 2020. At June 30, 2023 and December 31, 2022, there was $5,000 and $12,500 due to Bravenet related to this agreement, respectively. David M. Shworan is a control person of Bravenet. At June 30, 2023 and December 31, 2022, there were $220,517 and $70,100 in unreimbursed expenses owed to Keith Randall, CEO of Quotemedia, Inc., respectively. As a matter of policy all significant related party transactions are subject to review and approval by the Company’s Board of Directors. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2023 | |
LEASES | |
Leases | 6. LEASES The Company has operating leases for corporate offices and finance leases for certain equipment. The leases have remaining lease terms of 1 year to 5 years. Management determines if an arrangement is a lease at inception. Operating lease assets and liabilities are included in operating lease right-of-use assets and operating lease liabilities, respectively, on the consolidated balance sheets. Finance lease assets and liabilities are included in property and equipment and finance lease liabilities, respectively, on the consolidated balance sheets. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the leases do not provide an implicit rate, an incremental borrowing rate based on the information available at commencement date in determining the present value of future payments is used. Management elected the short-term lease exception and therefore only recognize right-of-use assets and lease liabilities for leases with a term greater than one year. When determining lease terms, management factors in options to extend or terminate leases when it is reasonably certain that the Company will exercise that option. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases the Company accounts for the lease and non-lease components as a single lease component. Supplemental balance sheet information related to leases was as follows: June 30, 2023 December 31, 2022 Operating Leases Operating lease right-of-use assets $ 411,830 $ 506,219 Current portion of operating lease liability $ 173,180 $ 174,166 Long-term portion of operating lease liability 243,020 323,685 Total operating lease liability $ 416,200 $ 497,851 June 30, 2023 December 31, 2022 Weighted Average Remaining Lease Term Operating leases 2.3 years 2.7 years Weighted Average Discount Rate Operating leases 9.9 % 9.9 % Maturities of lease liabilities were as follows: Year ending December 31 Operating Leases 2023 (excluding the six-months ended June 30, 2023) $ 103,247 2024 206,518 2025 138,357 2026 and thereafter 19,593 Total lease payments 467,715 Less imputed interest (51,515 ) Total $ 416,200 The components of lease expense for the three and six-months ended June 30, 2023 and 2022 were as follows: Three-months ended June 30, Six-months ended June 30, 2023 2022 2023 2022 Operating lease costs: Operating lease costs $ 59,165 $ 58,582 $ 117,592 $ 121,609 Short-term lease costs 26,993 22,399 53,980 44,802 Total operating lease costs $ 86,158 $ 80,981 $ 171,572 $ 166,411 Finance lease costs: Interest $ - $ 22 $ - $ 57 Total finance lease costs $ - $ 22 $ - $ 57 Supplemental cash flow information for the six-months ended June 30, 2023 and 2022 related to leases was as follows: 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 116,784 $ 119,946 Operating cash flows from finance leases - 57 Financing cash flows from finance leases - 1,377 There was no additional right of use assets obtained in exchange for lease obligations for the six-months ended June 30, 2023 and 2022. |
REDEEMABLE CONVERTIBLE PREFERRE
REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' deficit: | |
Redeemable Convertible Preferred Stock And Stockholders' Deficit | 7. REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT a) Redeemable Convertible Preferred Stock The Company is authorized to issue up to 10,000,000 non-designated preferred shares at the Board of Directors’ discretion. A total of 550,000 shares of the Company’s Preferred Stock are designated as “Series A Redeemable Convertible Preferred Stock.” The Series A Redeemable Convertible Preferred Stock has no dividend or voting rights. At June 30, 2023, 123,685 shares of Series A Redeemable Convertible Preferred Stock were outstanding. No shares of Series A Redeemable Convertible Preferred Stock were issued or redeemed during the three and six-months ended June 30, 2023 and 2022. Redemption Rights Holders of Series A Redeemable Convertible Preferred Stock shall have the right to convert their shares into shares of common stock at the rate of 83.33 shares of common stock for one share of Series A Redeemable Convertible Preferred Stock, at any time following the date the closing price of a share of common stock on a securities exchange or actively traded over-the-counter market has exceeded $0.30 for ninety (90) consecutive trading days. The conversion rights are subject to the availability of authorized but unissued shares of common stock. In addition, 1,000 Series A Redeemable Convertible Preferred Stock may be redeemed at the holder’s option at the liquidation value of $25 per share if the cash balance of the Company as reported at the end of each fiscal quarter exceeds $400,000. In accordance with Accounting Standards Update (“ASU”) 480-10-S99, because a limited number of Series A Redeemable Convertible Preferred Stock may be redeemed at the holder’s option if the above criteria are met, it was classified as mezzanine equity and not permanent equity. In the event of any liquidation, dissolution, or winding up of the Company, whether voluntary or involuntary, before any distribution or payment is made to any holders of any shares of common stock, the holders of shares of Series A Redeemable Convertible Preferred Stock shall be entitled to be paid first out of the assets of the Corporation available for distribution to holders of the Company’s capital stock whether such assets are capital, surplus, or earnings, an amount equal to $25.00 per share of Series A Redeemable Convertible Preferred Stock. b) Common stock No shares of common stock were issued during the three and six-months ended June 30, 2023 and 2022. c) Stock Options and Warrants FASB ASC 718, Stock Compensation Total stock-based compensation expense, related to all of the Company’s stock-based awards, recognized for the three and six-months ended June 30, 2023 and 2022 was comprised as follows: Three-months ended June 30, Six-months ended June 30, 2023 2022 2023 2022 Sales and marketing $ - $ 22,304 $ - $ 82,168 Total stock-based compensation expense $ - $ 22,304 $ - $ 82,168 Common Stock Options and Warrants There were 25,772,803 fully vested common stock warrants and options outstanding at June 30, 2023 and December 31, 2022 at a weighted-average grant date exercise price of $0.06. No stock options or warrants to purchase common stock were granted or exercised during the three and six-months ended June 30, 2023 and 2022. The following table summarizes the weighted average remaining contractual life and exercise price of common stock options and warrants outstanding and exercisable at June 30, 2023: Weighted Average Weighted Remaining Average Number Contractual Exercise Outstanding Life (Years) Price $0.03-0.11 25,772,803 6.06 $ 0.06 At June 30, 2023, there was no unrecognized compensation cost related to non-vested options and warrants granted to purchase common stock. All stock options and warrants to purchase common stock have been granted with exercise prices equal to or greater than the market value of the underlying common shares on the date of grant. Preferred Stock Warrants Pursuant to the December 28, 2017 Compensation Agreement with David M. Shworan, the President and Chief Executive Officer of QuoteMedia, Ltd., a wholly owned subsidiary of Quotemedia, Inc., the Company issued Mr. Shworan warrants to purchase shares of Series A Redeemable Convertible Preferred Stock (“Compensation Preferred Stock Warrants”) in lieu of a cash salary. From the period December 28, 2017 to December 31, 2019 the Company issued a total of 31,250 Compensation Preferred Stock Warrants at an exercise price equal to $1.00 per share. Also pursuant to the Compensation Agreement with Mr. Shworan, on December 28, 2017 the Company issued Mr. Shworan warrants to purchase up to 382,243 shares of Series A Redeemable Convertible Preferred Stock at an exercise price equal to $1.00 per share (“Liquidity Preferred Stock Warrant”). The Liquidity Preferred Stock Warrants only vest and become exercisable on the consummation of a Liquidity Event as defined in the Company’s Certificate of Designation of Series A Redeemable Convertible Preferred Stock. The probability of the liquidity event performance condition is not currently determinable or probable; therefore, no compensation expense has been recognized as of June 30, 2023. The probability is re-evaluated each reporting period. As of June 30, 2023, there was $7,185,430 in unrecognized stock-based compensation expense related to these Liquidity Preferred Stock Warrants. Since the Liquidity Preferred Stock Warrants only vest and become exercisable on the consummation of a Liquidity Event which is currently determined not to be probable, management is also unable to determine the weighted-average period over which the unrecognized compensation cost will be recognized. As of June 30, 2023, there were a total of 413,493 preferred stock warrants outstanding with a weighted average remaining contractual life of 24.5 years. As of June 30, 2023, 31,250 preferred stock warrants were exercisable. No preferred stock warrants were granted or exercised for the three and six-months ended June 30, 2023 and 2022. Fair Value Measurement of Compensation Preferred Stock Warrants The Company adheres to ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances. ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). · Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company could access. · Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. · Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The estimated fair value of the Preferred Stock Warrant liability is determined using Level 3 inputs. As of June 30, 2023 and December 31, 2022, the fair value of the Preferred Stock Warrant Liability was $767,188 and $629,375, respectively. The Preferred Stock Warrants were valued using a bond plus option framework reflecting the cash flow of the Preferred Stock Warrants and used a probability weighted sum of the value in each potential year before expiration to estimate the fair value of the Preferred Stock Warrants. Volatility was based on public peer companies, adjusted for size and leverage. Risk-free rate was selected based on term matched Treasury securities. Bond repayment depends on the Company’s timely access to the required cash and as such, is discounted at the Company’s assumed borrowing rate. This model was run based on the Management’s expected term and probabilities of a liquidity event. The key inputs for the framework were as follows as of June 30, 2023 and December 31, 2022: Valuation Inputs June 30, 2023 December 31, 2022 Expected Time to Expiration (years) 24.55 25.05 Stock Price on Valuation Date $ 0.30 $ 0.21 Peer Volatility 47.67 % 52.31 % Cash Flow Discount Rate 14.19 % 12.93 % The following table sets forth a summary of the changes in the fair value of the Level 3 Preferred Stock Warrant Liability for the three and six-months ended June 30, 2023: Preferred Stock Warrant Liability Fair value as of December 31, 2022 $ 629,375 Change in fair value 78,125 Fair value as of March 31, 2023 707,500 Change in fair value 59,688 Fair value as of June 30, 2023 $ 767,188 The changes in fair value attributable to the Preferred Stock Warrants are recorded as an adjustment to stock compensation expense and reported in Sales and Marketing expense on the Statements of Operations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
EARNINGS PER SHARE (see note 8) | |
EARNINGS PER SHARE | 8. EARNINGS PER SHARE Basic net income per share is computed by dividing net income during the period by the weighted-average number of common shares outstanding, excluding the dilutive effects of common stock equivalents. Common stock equivalents include redeemable convertible preferred stock, stock options and warrants. Diluted net income per share is computed by dividing net income by the weighted-average number of dilutive common shares outstanding during the period. Diluted shares outstanding is calculated using the treasury stock method by adding to the weighted shares outstanding any potential shares of common stock from outstanding redeemable convertible preferred stock, stock options and warrants that are in-the-money. In periods when a net loss is reported, all common stock equivalents are excluded from the calculation because they would have an anti-dilutive effect, meaning the loss per share would be reduced. Therefore, in periods when a loss is reported, the calculation of basic and dilutive loss per share results in the same value. The calculations for basic and diluted net income per share for the three and six-months ended June 30, 2023 and 2022 are as follows: Three-months ended June 30, Six-months ended June 30, 2023 2022 2023 2022 Net income (loss) $ 73,036 $ (163,080 ) $ 186,326 $ (14,039 ) Weighted average common shares used to calculate net income per share 90,477,798 90,477,798 90,477,798 90,477,798 Warrants to purchase redeemable convertible preferred stock 2,499,900 - 2,499,900 - Redeemable convertible preferred stock 10,306,671 - 10,306,671 - Stock options and warrants to purchase common stock 17,716,049 - 17,591,704 - Weighted average common shares used to calculate diluted net income per share 121,000,418 90,477,798 120,876,073 90,477,798 Net income (loss) per share – basic $ 0.00 $ (0.00 ) $ 0.00 $ (0.00 ) Net income (loss) per share – diluted $ 0.00 $ (0.00 ) $ 0.00 $ (0.00 ) |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Nature Of Operations | Quotemedia, Inc. (the “Company”) is a software developer and distributor of financial market data and related services to a global marketplace. The Company specializes in the collection, aggregation, and delivery of both delayed and real-time financial data content via the Internet. The Company develops and license software components that deliver dynamic content to banks, brokerage firms, financial institutions, mutual fund companies, online information and financial portals, media outlets, public companies, and corporate intranets. |
Basis Of Consolidation | These consolidated financial statements include the operations of QuoteMedia, Ltd., a wholly owned subsidiary of QuoteMedia, Inc. All intercompany transactions and balances have been eliminated. |
Foreign Currency Translation And Transactions | The U.S. dollar is the functional currency of all of the Company’s operations. Foreign currency asset and liability amounts are remeasured into U.S. dollars at end-of-period exchange rates, except for equipment and intangible assets, which are remeasured at historical rates. Foreign currency income and expenses are remeasured at average exchange rates in effect during the year, except for expenses related to balance sheet amounts remeasured at historical exchange rates. Because the U.S. dollar is the functional currency, exchange gains and losses arising from remeasurement of foreign currency-denominated monetary assets and liabilities are included in income in the period in which they occur. |
Allowances For Doubtful Accounts | The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. The Company determines the allowance by reviewing the age of the receivables and assessing the anticipated ability of customers to pay. No collateral is required for any of the receivables and the Company does not usually apply financing charges to outstanding accounts receivable balances. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. The allowance for doubtful accounts was $125,000 and $200,000 as of June 30, 2023 and December 31, 2022, respectively. Bad debt expense was $25,852 and $30,633 for the three-months ended June 30, 2023 and 2022, respectively. Bad debt expense (recovery) was ($38,241) and $36,191 for the six-months ended June 30, 2023 and 2022, respectively. |
Revenue | The Company generates substantially all of its revenue from subscriptions for access to its software products and related support. The Company licenses financial market data information on a monthly, quarterly, or annual basis. The Company’s products and services are divided into two main categories: Interactive Content and Data Applications · Proprietary financial software applications and streaming market data feeds · Subscriptions are typically sold for a fixed fee and revenue is recognized ratably over the term of the subscription. Portfolio Management and Real-Time Quote Systems 1. Corporate Quotestream (Business-to-Business) o Web-delivered, embedded applications providing real-time, streaming market quotes and research information targeted to both professionals and non-professional users. o Revenue is typically earned based on customer usage. 2. Individual Quotestream (Business-to-Consumer) o Web-delivered, embedded applications providing real-time, streaming market quotes and research information targeted to non-professional users. o Subscriptions are typically sold for a fixed fee and revenue is recognized ratably over the term of the subscription. The Company does not provide its customers with the right to take possession of its software products at any time. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation The Company executes a signed contract with the customer that specifies services to be provided, the payment amounts and terms, and the period of service, among other terms. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. Upfront set-up or development fees are deferred and recognized over the service term of the contract, as set-up and development fees are not distinct from the market data service contracts to which they relate. The Company considers the following factors when determining if collection of a fee is reasonably assured: customer creditworthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. If these factors do not indicate collection is reasonably assured, revenue is deferred until collection becomes reasonably assured, which is generally upon receipt of cash. Cost of revenue Cost of revenue primarily consists of customer support personnel-related compensation expenses, including salaries, bonuses, benefits, payroll taxes, and stock-based compensation expense, as well as expenses related to third-party hosting costs, software license fees, amortization of capitalized software development costs, amortization of acquired technology intangible assets, and allocated overhead. |
Accounting Pronouncements | Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
REVENUE | |
Schedule of Disaggregated Revenue | Three-months ended June 30, Six-months ended June 30, 2023 2022 2023 2022 Portfolio Management Systems Corporate Quotestream $ 1,876,898 $ 1,721,574 $ 3,704,151 $ 3,437,671 Individual Quotestream 474,143 540,530 961,710 1,093,991 Interactive Content and Data APIs 2,361,936 2,036,853 4,797,164 4,031,091 Total revenue $ 4,712,977 $ 4,298,957 $ 9,463,025 $ 8,562,753 |
Schedule of Deferred Revenue | June 30, 2023 June 30, 2022 Deferred revenue at beginning of period $ 1,166,848 $ 622,497 Revenue recognized in the current period from the amounts in the beginning balance (868,395 ) (417,390 ) New deferrals, net of amounts recognized in the current period 1,507,660 1,277,022 Effects of foreign currency translation 3,185 411 Deferred revenue at end of period $ 1,809,298 $ 1,482,540 Current portion of deferred revenue $ 1,530,329 $ 1,482,540 Long-term portion of deferred revenue 278,969 - Total deferred revenue $ 1,809,298 $ 1,482,540 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
LEASES | |
Supplemental Balance Sheet Information | June 30, 2023 December 31, 2022 Operating Leases Operating lease right-of-use assets $ 411,830 $ 506,219 Current portion of operating lease liability $ 173,180 $ 174,166 Long-term portion of operating lease liability 243,020 323,685 Total operating lease liability $ 416,200 $ 497,851 |
Schdule Of Weighted Average Remaining Lease Term | June 30, 2023 December 31, 2022 Weighted Average Remaining Lease Term Operating leases 2.3 years 2.7 years Weighted Average Discount Rate Operating leases 9.9 % 9.9 % |
Maturities Of Lease Liabilities | Year ending December 31 Operating Leases 2023 (excluding the six-months ended June 30, 2023) $ 103,247 2024 206,518 2025 138,357 2026 and thereafter 19,593 Total lease payments 467,715 Less imputed interest (51,515 ) Total $ 416,200 |
Summary of components Of Lease Expense | Three-months ended June 30, Six-months ended June 30, 2023 2022 2023 2022 Operating lease costs: Operating lease costs $ 59,165 $ 58,582 $ 117,592 $ 121,609 Short-term lease costs 26,993 22,399 53,980 44,802 Total operating lease costs $ 86,158 $ 80,981 $ 171,572 $ 166,411 Finance lease costs: Interest $ - $ 22 $ - $ 57 Total finance lease costs $ - $ 22 $ - $ 57 |
Schedule of supplemental Cash Flow Information | 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 116,784 $ 119,946 Operating cash flows from finance leases - 57 Financing cash flows from finance leases - 1,377 |
REDEEMABLE CONVERTIBLE PREFER_2
REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' deficit: | |
Summary Of Stock Based Compensation Expense | Three-months ended June 30, Six-months ended June 30, 2023 2022 2023 2022 Sales and marketing $ - $ 22,304 $ - $ 82,168 Total stock-based compensation expense $ - $ 22,304 $ - $ 82,168 |
Summary Of Weighted Average Remaining Contractual Life And Exercise Price Of Common Stock Options And Warrants Outstanding | Weighted Average Weighted Remaining Average Number Contractual Exercise Outstanding Life (Years) Price $0.03-0.11 25,772,803 6.06 $ 0.06 |
Fair Value Measurement of Compensation Preferred Stock Warrants | Valuation Inputs June 30, 2023 December 31, 2022 Expected Time to Expiration (years) 24.55 25.05 Stock Price on Valuation Date $ 0.30 $ 0.21 Peer Volatility 47.67 % 52.31 % Cash Flow Discount Rate 14.19 % 12.93 % |
Summary of the changes in the fair value of the Level 3 Preferred Stock Warrant Liability | Preferred Stock Warrant Liability Fair value as of December 31, 2022 $ 629,375 Change in fair value 78,125 Fair value as of March 31, 2023 707,500 Change in fair value 59,688 Fair value as of June 30, 2023 $ 767,188 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
EARNINGS PER SHARE (see note 8) | |
Schedule Of Earnings Per Share, Basic And Diluted | Three-months ended June 30, Six-months ended June 30, 2023 2022 2023 2022 Net income (loss) $ 73,036 $ (163,080 ) $ 186,326 $ (14,039 ) Weighted average common shares used to calculate net income per share 90,477,798 90,477,798 90,477,798 90,477,798 Warrants to purchase redeemable convertible preferred stock 2,499,900 - 2,499,900 - Redeemable convertible preferred stock 10,306,671 - 10,306,671 - Stock options and warrants to purchase common stock 17,716,049 - 17,591,704 - Weighted average common shares used to calculate diluted net income per share 121,000,418 90,477,798 120,876,073 90,477,798 Net income (loss) per share – basic $ 0.00 $ (0.00 ) $ 0.00 $ (0.00 ) Net income (loss) per share – diluted $ 0.00 $ (0.00 ) $ 0.00 $ (0.00 ) |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES | |||||
Allowance for doubtful accounts | $ 125,000 | $ 125,000 | $ 200,000 | ||
Bad debt expense | $ (25,852) | $ (30,633) | $ 38,241 | $ (36,191) |
PRIOR PERIOD RESTATEMENTS (Deta
PRIOR PERIOD RESTATEMENTS (Details Narrative) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Additional paid-in capital reduced | $ 18,903,272 | $ 18,903,272 | |
Accumulated deficit reduced | $ (20,036,100) | $ (20,222,426) | |
Restatement Adjustment [Member] | |||
Additional paid-in capital reduced | $ 750,000 | ||
Accumulated deficit reduced | $ 236,250 |
REVENUE (Details)
REVENUE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Total revenue | $ 4,712,977 | $ 4,298,957 | $ 9,463,025 | $ 8,562,753 |
Interactive Content and Data APIs | ||||
Total revenue | 2,361,936 | 2,036,853 | 4,797,164 | 4,031,091 |
Corporate Quotestream | ||||
Total revenue | 1,876,898 | 1,721,574 | 3,704,151 | 3,437,671 |
Individual Quotestream | ||||
Total revenue | $ 474,143 | $ 540,530 | $ 961,710 | $ 1,093,991 |
REVENUE (Details 1)
REVENUE (Details 1) - USD ($) | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Deferred Revenue, Beginning Balance | $ 1,166,848 | $ 622,497 | |
Revenue Recognized In The Current Period From The Amounts In The Beginning Balance | (868,395) | (417,390) | |
New Deferrals, Net Of Amounts Recognized In The Current Period | 1,507,660 | 1,277,022 | |
Effects Of Foreign Currency Translation | 3,185 | 411 | |
Deferred Revenue, Ending Balance | 1,809,298 | $ 1,482,540 | |
Current portion of deferred revenue | 1,530,329 | $ 1,166,848 | |
Long-term portion of deferred revenue | 278,969 | 0 | |
Total deferred revenue | 1,809,298 | 1,482,540 | |
Deferred Revenue Member | |||
Current portion of deferred revenue | $ 1,530,329 | $ 1,482,540 |
RELATED PARTIES (Details Narrat
RELATED PARTIES (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Bravenet Web Services, Inc. | ||
Due To Related Party | $ 5,000 | $ 12,500 |
Expenses on related party | 2,500 | |
Lease Per Month | 7,000 | |
Unreimbursed expenses | 220,517 | 70,100 |
410734 B.C. Ltd | ||
Due To Related Party | $ 13,343 | |
Lease Per Month | $ 6,500 |
LEASES (Details)
LEASES (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
LEASES | ||
Operating lease right-of-use assets | $ 411,830 | $ 506,219 |
Current portion of operating lease liability | 173,180 | 174,166 |
Long-term portion of operating lease liability | 243,020 | 323,685 |
Total operating lease liability | $ 416,200 | $ 497,851 |
Weighted Average Remaining Lease Term | ||
Operating Leases | 2 years 3 months 18 days | 2 years 8 months 12 days |
Weighted Average Discount Rate | ||
Operating Leases | 9.90% | 9.90% |
LEASES (Details 1)
LEASES (Details 1) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Operating Lease Obligations | ||
2023 (excluding the six-months ended June 30, 2023) | $ 103,247 | |
2024 | 206,518 | |
2025 | 138,357 | |
2026 and thereafter | 19,593 | |
Total Lease Payments | 467,715 | |
Less Imputed Interest | (51,515) | |
Total | $ 416,200 | $ 497,851 |
LEASES (Details 2)
LEASES (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating lease costs: | ||||
Operating lease costs | $ 59,165 | $ 58,582 | $ 117,592 | $ 121,609 |
Short-term lease costs | 26,993 | 22,399 | 53,980 | 44,802 |
Total operating lease costs | 86,158 | 80,981 | 171,572 | 166,411 |
Finance lease costs: | ||||
Interest | 0 | 22 | 0 | 57 |
Total finance lease costs | $ 0 | $ 22 | $ 0 | $ 57 |
LEASES (Details 3)
LEASES (Details 3) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 116,784 | $ 119,946 |
Operating cash flows from finance leases | 0 | 57 |
Financing cash flows from finance leases | $ 0 | $ 1,377 |
LEASES (Details Narrative)
LEASES (Details Narrative) | 6 Months Ended |
Jun. 30, 2023 | |
LEASES | |
Lessee, Operating Lease, Description | 1 year to 5 years |
REDEEMABLE CONVERTIBLE PREFER_3
REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock-based compensation expense | $ 0 | $ 22,304 | $ 0 | $ 82,168 |
Sales and Marketing | ||||
Stock-based compensation expense | $ 0 | $ 22,304 | $ 0 | $ 82,168 |
REDEEMABLE CONVERTIBLE PREFER_4
REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (Details 1) - $ 0.03-0.11 [Member] | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Number of Outstanding | shares | 25,772,803 |
Weighted Average Remaining Contractual Life | 6 years 21 days |
Weighted-average Exercise Price Outstanding | $ / shares | $ 0.06 |
REDEEMABLE CONVERTIBLE PREFER_5
REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (Details 2) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Stockholders' deficit: | ||
Expected Time to Expiration | 24 years 6 months 18 days | 25 years 18 days |
Stock Price on Valuation Date | $ 0.30 | $ 0.21 |
Peer Volatility | 47.67% | 52.31% |
Cash Flow Discount Rate | 14.19% | 12.93% |
REDEEMABLE CONVERTIBLE PREFER_6
REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (Details 3) - Preferred Stock Warrant Liability - USD ($) | 3 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | |
Beginning balance | $ 707,500 | $ 629,375 |
Change in fair value | 59,688 | 78,125 |
Ending balance | $ 767,188 | $ 707,500 |
REDEEMABLE CONVERTIBLE PREFER_7
REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS DEFICIT (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 28, 2017 | |
Preferred stock warrant liability | $ 767,188 | $ 629,375 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Series A Redeemable Convertible Preferred | |||
Preferred stock, shares designated | 550,000 | ||
Convertible Preferred Stock redeemed | $ 123,685 | ||
Redeemable convertible preferred stock, amount | 400,000 | ||
Preferred stock liquidation value | $ 25 | ||
Conversion price per share | $ 83.33 | ||
Closing price of share of common stock on securities exchange exceed price per share | $ 0.30 | ||
Convertible Preferred Stock Redeemed, share | 1,000 | ||
Warrant to purchase of common stock | 382,243 | ||
Warrant to purchase of common stock exercise price per share | $ 1 | ||
Preferred Stock Warrant | |||
Warrant to purchase of common stock exercise price per share | $ 1 | ||
Preferred stock warrants exercisable | 31,250 | ||
Stock Warrants Exercisable | 31,250 | ||
Common stock warrants and options outstanding | 413,493 | ||
Unrecognized share-based compensation | $ 7,185,430 | ||
Weighted average remaining contractual life | 24 years 6 months | ||
Common Stock Options and Warrants | |||
Outstanding option | 25,772,803 | 25,772,803 | |
Weighted-average Exercise Price Outstanding | $ 0.06 | ||
Aggregate intrinsic value, outstanding and exercisable | $ 6,240,574 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
EARNINGS PER SHARE (see note 8) | ||||
Net income (loss) | $ 73,036 | $ (163,080) | $ 186,326 | $ (14,039) |
Weighted average common shares used to calculate net income (loss) per share | 90,477,798 | 90,477,798 | 90,477,798 | 90,477,798 |
Warrants to purchase redeemable convertible preferred stock | $ 2,499,900 | $ 0 | $ 2,499,900 | $ 0 |
Redeemable convertible preferred stock | $ 10,306,671 | $ 0 | $ 10,306,671 | $ 0 |
Stock options and warrants to purchase common stock | 17,716,049 | 17,591,704 | ||
Weighted average common shares used to calculate diluted net income per share | 121,000,418 | 90,477,798 | 120,876,073 | 90,477,798 |
Net income (loss) per share - basic | $ 0 | $ 0 | $ 0 | $ 0 |
Net income (loss) per share - diluted | $ 0 | $ 0 | $ 0 | $ 0 |