Zerify (ZRFY) 10-Q 20 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 15, 2019
Document And Entity Information
Entity Registrant Name	StrikeForce Technologies Inc.
Entity Central Index Key	0001285543
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		2,483,701,436
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019
Entity Emerging Growth Company	false
Entity Small Business	true

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current Assets:
Cash	$ 100,869	$ 86,160
Accounts receivable, net	20,629	20,649
Prepaid expenses	2,589	4,530
Total current assets	124,087	111,339
Property and equipment, net	7,923	9,259
Operating lease right-of-use asset	208,487
Other assets	17,917	18,430
Total Assets	358,414	139,028
Current Liabilities:
Accounts payable and accrued expenses	939,588	945,669
Convertible notes payable (net of discount of $570,340 and $521,763, respectively; $1,438,100 in default at March 31, 2019 and December 31, 2018)	1,656,760	1,611,337
Convertible notes payable - related parties	355,500	355,500
Notes payable (net of discount of $75,629 and $195,653, respectively; $1,988,824 and $1,638,824 in default at March 31, 2019 and December 31, 2018, respectively)	2,078,195	2,218,670
Notes payable - related parties	742,513	742,513
Accrued interest (including $1,298,978 and $1,267,749 due to related parties, respectively)	4,520,788	4,428,439
Contingent payment obligation	1,500,000	1,500,000
Financing obligation	1,210,070	825,500
Operating lease iabilites, current portion	33,598
Derivative liabilities	1,682,259	1,313,904
Total current liabilities	14,719,271	13,941,532
Operating lease liabilities, long term portion	175,435
Total Liabilities	14,894,706	13,941,532
Stockholders' Deficit
Preferred stock
Common stock par value $0.0001: 5,000,000,000 shares authorized; 2,447,199,702 and 2,373,749,597 shares issued and outstanding, respectively	244,719	237,374
Additional paid-in capital	26,923,246	26,349,805
Accumulated deficit	(42,027,033)	(40,824,610)
Total StrikeForce Technologies, Inc. stockholders' deficit	(13,868,401)	(13,246,764)
Noncontrolling interest in consolidated subsidiary	(667,891)	(555,740)
Total Stockholders' Deficit	(14,536,292)	(13,802,504)
Total Liabilities and Stockholders' Deficit	358,414	139,028
Series A Preferred Stock [Member]
Stockholders' Deficit
Preferred stock	987,000	987,000
Series B Preferred stock [Member]
Stockholders' Deficit
Preferred stock	$ 3,667	$ 3,667

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current Liabilities:
Convertible notes payable, net of discount	$ 570,340	$ 521,763
Convertible notes payable, default	1,438,100	1,438,100
Notes payable, net of discount	75,629	195,653
Notes payable, default	1,988,824	1,638,824
Accrued interest due to related parties	$ 1,298,978	$ 1,267,749
Stockholders' Deficit
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Preferred Stock series not designated, par value	$ 0.10	$ 0.10
Common Stock, par or stated value	$ 0.0001	$ 0.0001
Common Stock, shares authorized	5,000,000,000	5,000,000,000
Common Stock, shares issued	2,447,199,702	2,373,749,597
Common Stock, shares outstanding	2,447,199,702	2,373,749,597
Series A Preferred Stock [Member]
Stockholders' Deficit
Preferred Stock, no par value
Preferred Stock, shares authorized	100	100
Preferred Stock, shares issued	3	3
Preferred Stock, shares outstanding	3	3
Series B Preferred stock [Member]
Stockholders' Deficit
Preferred Stock, no par value	$ 0.10	$ 0.10
Preferred Stock, shares authorized	100,000,000	100,000,000
Preferred Stock, shares issued	36,667	36,667
Preferred Stock, shares outstanding	36,667	36,667

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Condensed Consolidated Statements Of Operations
Revenue	$ 131,688	$ 64,693
Cost of revenue	3,871	6,754
Gross margin	127,817	57,939
Operating expenses:
Compensation	173,519	157,934
Professional fees	170,553	190,531
Selling, general and administrative expenses	103,369	264,216
Research and development	126,462	123,750
Total operating expenses	573,903	736,431
Loss from operations	(446,086)	(678,492)
Other income (expense):
Interest expense	(125,030)	(166,236)
Debt discount amortization	(299,466)	(4,274)
Private placement costs	(197,047)	(194,016)
Change in fair value of derivative liabilities	(160,376)
Extinguishment of derivative liabilities	343,068
Loss on extinguishment of debt	(429,637)
Other income		237
Other income (expense), net	(868,488)	(59,279)
Net loss	(1,314,574)	(737,771)
Net loss attributable to noncontrolling interest	112,151	118,303
Net loss attributable to common shareholders of StrikeForce Technologies, Inc.	$ (1,202,423)	$ (619,468)
Net loss per share attributable to common shareholders
- Basic and diluted
Weighted average common shares outstanding
- Basic and diluted	2,399,708,956	2,335,845,741

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (Unaudited) - USD ($)	Series A Preferred Stock [Member]	Series B Preferred stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Noncontrolling Interest [Member]	Total
Beginning balance, Shares at Dec. 31, 2017	3	70,001	2,335,843,241
Beginning balance, Amount at Dec. 31, 2017	$ 987,000	$ 7,000	$ 233,584	$ 25,522,331	$ (37,543,101)		$ (10,793,186)
Fair value of common stock issued for services, Shares			7,500
Fair value of common stock issued for services, Amount			$ 1	81
Fair value of vested options				185,903
Net loss					(619,468)	(118,303)
Ending balance, Shares at Mar. 31, 2018	3	70,001	2,335,850,741
Ending balance, Amount at Mar. 31, 2018	$ 987,000	$ 7,000	$ 233,585	25,708,315	(38,162,569)	(118,303)	(11,344,972)
Beginning balance, Shares at Dec. 31, 2017	3	70,001	2,335,843,241
Beginning balance, Amount at Dec. 31, 2017	$ 987,000	$ 7,000	$ 233,584	25,522,331	(37,543,101)		(10,793,186)
Fair value of common stock issued for services, Amount							82
Fair value of vested options							185,903
Net loss							(737,771)
Ending balance, Shares at Dec. 31, 2018	3	36,667	2,373,749,597
Ending balance, Amount at Dec. 31, 2018	$ 987,000	$ 3,667	$ 237,374	26,349,805	(40,824,610)	(555,740)	(13,802,504)
Fair value of common stock issued for services, Shares			7,500
Fair value of common stock issued for services, Amount			$ 1	68			69
Fair value of vested options				951			951
Common stock issued upon conversion of notes and interest, Shares			73,442,605
Common stock issued upon conversion of notes and interest, Amount			$ 7,344	572,422			579,766
Net loss					(1,202,423)	(112,151)	(1,314,574)
Ending balance, Shares at Mar. 31, 2019	3	36,667	2,447,199,702
Ending balance, Amount at Mar. 31, 2019	$ 987,000	$ 3,667	$ 244,719	$ 26,923,246	$ (42,027,033)	$ (667,891)	$ (14,536,292)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net loss	$ (1,314,574)	$ (737,771)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,849	1,542
Amortization of discount on notes payable	299,466	75,400
Amortization of right-of-use asset	5,785
Fair value of common stock issued for services	69	82
Fair value of vested options	951	185,903
Change in fair value of derivative liabilities	160,376
Private placement costs	197,047	194,016
Loss on extinguishment of debt	429,637
Extinguishment of derivative liabilities	(343,068)
Changes in operating assets and liabilities:
Accounts receivable	20	18,637
Prepaid expenses	1,941	(2,332)
Accounts payable and accrued expenses	(6,081)	(79,874)
Accrued interest	125,030
Operating lease liabilities	(5,239)	89,891
Net cash used in operating activities	(446,791)	(559,516)
Cash flows from financing activities:
Proceeds from convertible note payable	354,000	130,000
Proceeds from notes payable		437,000
Repayment of notes payable	(5,000)	(75,000)
Proceeds from finance obligation	112,500
Repayment of convertible notes payable
Net cash provided by financing activities	461,500	492,000
Net increase (decrease) in cash	14,709	(67,516)
Cash at beginning of the period	86,160	455,484
Cash at end of the period	100,869	86,160
Supplemental disclosure of cash flow information:
Interest paid	5,000	5,000
Income tax paid
Supplemental disclosure of non-cash investing and financing transactions
Fair value of derivative upon issuance of convertible debt recorded as debt discount	354,000	130,000
Right-of-use assets obtained in exchange for operating lease obligations	214,272
Common stock issued for conversion of debt	563,655
Common stock issued for conversion of accrued interest	16,111
Fair value of financing obligation recorded as debt discount		437,000
Notes Payable exchanged for financing obligation	255,500
Accrued interest exchanged for financing obligation	$ 16,570

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 1 - Organization and Summary of Significant Accounting Policies	StrikeForce Technologies, Inc. (the “Company”) is a software development and services company that offers a suite of integrated computer network security products using proprietary technology. The Company’s ongoing strategy is developing and marketing its suite of network security products to the corporate, financial, healthcare, legal, government, technology, insurance, e-commerce and consumer sectors. The Company’s operations are based in Edison, New Jersey. Basis of Presentation-Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods have been included. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2019. These financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2018 and notes thereto contained in the Annual Report on Form 10-K of the Company as filed with the SEC on April 15, 2019. The consolidated financial statements include the accounts of the Company and its controlled subsidiary, BlockSafe Technologies, Inc. (“BlockSafe”). BlockSafe is owned 49% by the Company and 31% by three executive officers of the Company, which combined represents an 80% controlling interest in BlockSafe. Accordingly, BlockSafe is consolidated by the Company. Intercompany balances and transactions have been eliminated in consolidation. At March 31, 2019, noncontrolling interests represents 51% of BlockSafe that the Company does not directly own. Going Concern The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, for the three months ended March 31, 2019, the Company incurred a net loss of $1,314,574 and used cash in operating activities of $446,791 and at March 31, 2019, the Company had a working capital deficiency of $14,595,184 and a stockholders’ deficit of $14,536,292. In addition, the Company is in default on notes payable and convertible notes payable in the aggregate amount of $3,076,924. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. At March 31, 2019, the Company had cash on hand in the amount of $100,869. Subsequent to March 31, 2019, the Company issued one unsecured convertible promissory note for $73,000. Management estimates that the current funds on hand will be sufficient to continue operations through the next six months. The Company’s ability to continue as a going concern is dependent upon its ability to continue to implement its business plan. Currently, management is attempting to increase revenues by selling through a channel of distributors, value added resellers, strategic partners and original equipment manufacturers. While the Company believes in the viability of its strategy to increase revenues, there can be no assurances to that effect. The Company’s ability to continue as a going concern is dependent upon its ability to increase its customer base and realize increased revenues. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stock holders, in the case of equity financing. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include those related to accounting for financing obligations, assumptions used in valuing stock instruments issued for services, assumptions used in valuing derivative liabilities, the valuation allowance for deferred income taxes, and accrual of potential liabilities. Actual results could differ from those estimates. Revenue Recognition The Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients. The Company’s revenue consists of revenue from sales and support of our software products. Revenue primarily consists of sales of software licenses of our ProtectID®, GuardedID® and MobileTrust® products. We recognize revenue from these arrangements ratably over the contractual service period. For service contracts, the Company’s performance obligations are satisfied, and the related revenue is recognized, as services are rendered. The Company offers no discounts, rebates, rights of return, or other allowances to clients which would result in the establishment of reserves against service revenue. Additionally, to date, the Company has not incurred incremental costs in obtaining a client contract. Cost of revenue includes direct costs and fees related to the sale of our products. The following tables present our revenue disaggregated by major product and service lines: Three Months Ended March 31, 2019 March 31, 2018 Software $ 117,790 $ 56,889 Service 13,898 7,804 Total revenue $ 131,688 $ 64,693 Leases Prior to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases Leases, Fair Value of Financial Instruments The Company follows the authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) for fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels as follows: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. Level 3—Unobservable inputs based on the Company's assumptions. The Company is required to use of observable market data if such data is available without undue cost and effort. The Company believes the carrying amount reported in the balance sheet for accounts receivable, accounts payable, accrued expenses, convertible notes, and notes payables approximate fair values because of the short-term nature of these financial instruments. As of March 31, 2019 and December 31, 2018, the Company’s balance sheet includes Level 3 liabilities comprised of the fair value of embedded derivative liabilities of $1,682,259 and $1,313,904, respectively (see Note 5). These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. The following table sets forth a summary of the changes in the estimated fair value of our embedded derivative during the three-month periods ended March 31, 2019 and 2018: Three months ended March 31, 2019 Three months ended March 31, 2018 Fair value at beginning of period $ 1,313,904 $ 623,195 Recognition of derivative liabilities upon initial valuation 551,047 324,016 Extinguishment of derivative liabilities (343,068 ) - Net change in the fair value of derivative liabilities 160,376 (305,010 ) Fair value at end of period $ 1,682,259 $ 624,201 Loss per Share Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted loss per share reflects the potential dilution, using the treasury stock method that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the loss of the Company. In computing diluted loss per share, the treasury stock method assumes that outstanding options, warrants, and convertible preferred stock are exercised and the proceeds are used to purchase common stock at the average market price during the period. Options, warrants, and convertible preferred stock may have a dilutive effect under the treasury stock method only when the average market price of the common stock during the period exceeds the exercise price of the options and warrants. For the three months ended March 31, 2019 and 2018, the dilutive impact of stock options exercisable into 259,500,002 and 259,000,001 shares of common stock, respectively, convertible Series B Preferred stock that can convert into 10,915,572 and 6,045,987 shares of common stock, respectively, and notes payable that can convert into 103,056,452 and 19,714,918 shares of common stock, respectively, have been excluded because their impact on the loss per share is anti-dilutive. Concentrations For the three months ended March 31, 2019, sales to three customers comprised 45%, 29% and 17% of revenues, respectively. For the three months ended March 31, 2018, sales to three customers comprised 61%, 22% and 11% of revenues, respectively. At March 31, 2019, one customer comprised 78% of accounts receivable. At December 31, 2018, two customers comprised 68% and 12% of accounts receivable, respectively. The Company maintains the majority of its cash balances with one financial institution, in the form of demand deposits. At March 31, 2019, the Company did not have cash deposits that exceeded the federally insured limit of $250,000. The Company believes that no significant concentration of credit risk exists with respect to its cash balances because of its assessment of the creditworthiness and financial viability of the financial institution. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments ("ASC 326"). The standard significantly changes how entities will measure credit losses for most financial assets , including accounts and notes receivables. The standard will replace today’s “incurred loss” approach with an “expected loss” model , under which companies will recognize allowances based on expected rather than incurred losses. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is effective for interim and annual reporting periods beginning after December 15, 2019. The Company is currently assessing the impact of adopting this standard on the Company’s financial statements and related disclosures. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

Convertible Notes Payable

Convertible Notes Payable	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 2 - Convertible Notes Payable	Convertible notes payable consisted of the following: March 31, 2019 December 31, 2018 Secured (a) DART, in default $ 542,588 $ 542,588 Unsecured (b) Convertible notes with fixed conversion features, in default 895,512 895,512 (c) Convertible notes with adjustable conversion features 789,000 695,000 Total convertible notes principal outstanding 2,227,100 2,133,100 Debt discount (570,340 ) (521,763 ) Convertible notes, net of discount $ 1,656,760 $ 1,611,337 (a) At March 31, 2019 and December 31, 2018, $542,588 of notes payables are due to DART/Citco Global. The notes are convertible into shares of the Company’s common stock based on adjustable conversion prices, are secured by all of the Company’s assets, were due in 2010, and are currently in default. Beginning in 2009, the note holder agreed to the forbearance of any further interest on the notes payable to DART/Citco Global. (b) At March 31, 2019 and December 31, 2018, convertible notes payable with fixed conversion features (“fixed convertible notes”) consisted of 13 unsecured convertible notes convertible. The notes are unsecured, bear interest at 8% to 18% per annum, were due on various dates from March 2008 to March 2015, and are currently in default. At December 31, 2018, the balance of the accrued interest on the fixed convertible notes was $1,079,764. During the three months ended March 31, 2019, interest of $18,526 was accrued. At March 31, 2019, the balance of accrued interest on the fixed convertible notes was $1,098,290. (c) At December 31, 2018, there were $695,000 of convertible notes with adjustable conversion features outstanding. During the three months ended March 31, 2019, convertible notes for $354,000 were issued, and convertible notes for $260,000 were converted into shares of the Company’s common stock. At March 31, 2019, the balance of the convertible notes with adjustable conversion features was $789,000. During the three months ended March 31, 2019, the Company issued four convertible notes payable with adjustable conversion features to one lender for aggregate proceeds of $354,000, bearing interest at 10% per annum, and maturing through March 2020. At the option of the holder, each of the notes is convertible into shares of common stock of the Company at a price per share discount of 58% of the lowest closing market price of the Company’s common stock during the twenty days preceding a conversion notice. The variable conversion price is not considered predominately based on a fixed monetary amount settleable with a variable number of shares due to the volatility and trading volume of the Company’s common stock. As a result, the Company determined that the conversion features of the convertible notes were not considered indexed to the Company’s own stock and characterized the fair value of the conversion features as derivative liabilities upon issuance. The Company determined that upon issuance of the convertible notes between January 2019 and March 2019, the initial fair value of the embedded conversion feature totaled $551,047 (see Note 5), of which $354,000 was recorded as debt discount offsetting the face amount of the convertible notes, and the remainder of $197,047 was recorded as private placement costs. During the three months ended March 31, 2019, the note holder elected to convert three notes totaling $260,000 plus interest of $16,111 (total of $276,111) into 73,442,605 shares of the Company’s common stock at conversion prices ranging from $0.0025 to $0.0087 per share. On the dates of conversion, the closing price of the Company’s common stock ranged from $0.0052 to $0.0178 per share, or total fair value of shares of $579,166. The Company followed the general extinguishment model to record the settlement of the debt. The debt and accrued interest totaled $276,111, the related unamortized discount totaled ($125,982), and the shares issued were measured at their fair value of $579,166. The difference of $429,037 was recorded as loss on settlement of debt. In addition, the bifurcated conversion option derivatives, after a final mark-up to $343,068, were removed and recorded as a gain on extinguishment. At December 31, 2018, the balance of unamortized discount on convertible notes with adjustable conversion features was $521,763. During the three months ended March 31, 2019, debt discount of $354,000 was recorded, debt discount amortization of $179,441 was recorded, $125,982 of debt discount was removed related to debt that was converted. At March 31, 2019, the balance of the unamortized discount was $570,340. At March 31, 2019 and December 31, 2018, accrued interest due for all convertible notes was $1,120,442 and $1,099,005, respectively, and is included in accrued interest in the accompanying balance sheets. Interest expense for all convertible notes payable for the three months ended March 31, 2019 and 2018 was $37,550 and $18,954, respectively.

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 3 - Notes Payable	Notes payable consisted of the following: March 31, 2019 December 31, 2018 Unsecured (a) Promissory notes-in default $ 413,824 $ 413,824 (b) Promissory notes – StrikeForce Investor Group-in default 1,225,000 1,225,000 (c) Promissory notes issued by BlockSafe ($350,000 and zero in default at March 31, 2019 and December 31, 2018, respectively) 515,000 775,500 Total notes payable principal outstanding 2,153,824 2,414,324 Debt discount (75,629 ) (195,654 ) Notes payable, net of discount $ 2,078,195 $ 2,218,670 (a) Notes payable, with interest from 8% to 14% per annum, due on various dates from December 2011 to July 2017 and are currently in default. At December 31, 2018, the balance of the accrued interest on the notes payable-various was $505,454. During the three months ended March 31, 2019, $11,232 of interest was accrued. At March 31, 2019, accrued interest on the notes payable-various was $516,686. (b) Notes payable to StrikeForce Investor Group (SIG), made up of various investors with unsecured notes, interest at 10% per annum, originally due in 2011, and currently in default. At December 31, 2018, the balance of the accrued interest on the notes payable-SIG was $1,509,844. During the three months ended March 31, 2019, $30,205 of interest was accrued. At March 31, 2019, accrued interest on the notes payable-SIG was $1,540,049. (c) At December 31, 2018, BlockSafe (see Note 1) had $775,500 of outstanding unsecured promissory notes, bearing interest at 8% per annum, and maturing through September 2019. During the three months ended March 31, 2019, $5,000 of unsecured promissory notes were paid, and note holders agreed to exchange $255,500 of principal into a financing obligation (see Note 4). At March 31, 2019, the balance of the unsecured promissory notes was $515,000. At March 31, 2019, $350,000 of the unsecured promissory notes were in default. At December 31, 2018, the balance of the unamortized discount on the unsecured promissory notes was $195,653. During the three months ended March 31, 2019, debt discount amortization of $120,025 was recorded and the balance of the unamortized discount at March 31, 2019 was $75,629. At December 31, 2018, the balance of the accrued interest on the unsecured promissory notes was $46,388. During the three months ended March 31, 2019, $14,818 of interest was accrued and $16,570 of accrued interest was converted into a financing obligation (See Note 4). At March 31, 2019, accrued interest on the unsecured promissory notes was $44,636. At March 31, 2019 and December 31, 2018, accrued interest due for all notes payable above was $2,101,371 and $2,061,686, respectively, and is included in accrued interest in the accompanying balance sheets. Interest expense for notes payable for the three months ended March 31, 2019 and 2018 was $39,685 and $46,500, respectively.

Financing Obligation

Financing Obligation	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 4 - Financing Obligation	In 2018, BlockSafe issued promissory notes to nineteen unrelated parties aggregating $775,500. As part of each promissory note agreement BlockSafe agreed to pay a financing obligation to the note holders equal to the note principal in cryptocurrency tokens to be issued by BlockSafe. In addition, in December 2018, BlockSafe agreed to issue cryptocurrency tokens to an unrelated party for receipt of $50,000. At December 31, 2018, the total of the financing obligation for BlockSafe was $825,500. During the three months ended March 31, 2019, BlockSafe agreed to issue cryptocurrency tokens to four unrelated parties for receipt of $112,500. In addition, holders of unsecured promissory notes issued by BlockSafe agreed to exchange $255,500 principal and $16,570 of accrued interest into the financing obligation to be paid by cryptocurrency tokens to be issued by BlockSafe. At March 31, 2019, the financing obligation was $1,210,070. At March 31, 2019 and through the date of filing, BlockSafe has not developed or issued any cryptocurrency tokens and there is no assurance as to whether, or at what amount, or on what terms, tokens will be available to be issued, if ever. At March 31, 2019, as the tokens do not exist yet, and were not considered equity, management determined that 100% of the obligation of $1,210,070 is probable of being a liability to be settled by BlockSafe, through the issuance of tokens, or through other means if tokens are never issued, and therefore recorded the financing obligation.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 5 - Derivative Financial Instruments	At March 31, 2019, the Company had convertible promissory notes outstanding that are convertible into shares of common stock of the Company at the option of the holder at price per share discounts ranging from 20% to 58% of the Company’s common stock market price, as defined in the note agreements. As the ultimate determination of shares to be issued upon conversion of these notes could exceed the current number of available authorized shares, the Company determined that the conversion features of the convertible notes were not considered indexed to the Company’s own stock and characterized the fair value of the conversion features as derivative liabilities. Accordingly, the conversion features of the notes were separated from the host contracts (i.e. the notes) and characterized as derivative liabilities to be re-measured at the end of every reporting period with the change in value reported in the statement of operations. At December 31, 2018, the balance of the derivative liabilities was $1,313,904. During the three months ended March 31, 2019, the Company recorded additions of $551,047 related to the conversion features of notes issued during the period (see Note 2), and an increase in fair value of derivatives of $160,376. In addition, the Company recorded a decrease in derivative liability of $343,068 related to derivative liabilities that were extinguished. At March 31, 2019, the balance of the derivative liabilities was $1,682,259. The derivative liability was valued at the following dates using a probability weighted Black-Scholes-Merton model with the following assumptions: March 31, 2019 January 2019 to March 2019 (dates of inception) December 31, 2018 Conversion feature: Risk-free interest rate 0.23 % 0.23%-0.25 % 0.25 % Expected volatility 120 % 91%-144 % 129 % Expected life (in years) 1 year 1 year 1 year Expected dividend yield - - - Fair Value: Conversion feature $ 1,682,259 $ 551,074 $ 1,313,904 The risk-free interest rate was based on rates established by the Federal Reserve Bank. The expected volatility is based on the historical volatility of the Company’s stock. The expected life of the conversion feature of the notes was based on the remaining terms of the related notes. The expected dividend yield was based on the fact that the Company has not customarily paid dividends to its common stockholders in the past and does not expect to pay dividends to its common stockholders in the future.

Operating Lease

Operating Lease	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 6 - Operating Lease	In January 2019, the Company entered into a noncancelable operating lease for its headquarters office requiring payments of $4,409 per month, payments increasing 3% each year, and ending on January 31, 2024. At March 31, 2019, the remaining lease term was 4.85 years. The Company does not have any other leases. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The operating lease ROU asset includes any lease payments made and excludes lease incentives. The components of lease expense and supplemental cash flow information related to leases for the period are as follows: Three Months Ended March 31, 2019 Lease Cost Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations) $ 13,680 Other Information Cash paid for amounts included in the measurement of lease liabilities for the first quarter 2019 $ 13,134 Weighted average remaining lease term – operating leases (in years) 4.8 Average discount rate – operating leases 10.0 % The supplemental balance sheet information related to leases for the period is as follows: At March 31, 2019 Operating leases Long-term right-of-use assets 208,487 Short-term operating lease liabilities $ 33,598 Long-term operating lease liabilities 175,435 Total operating lease liabilities $ 209,033 Maturities of the Company’s lease liabilities are as follows: Year Ending Operating Leases 2019 (remaining 9 months) $ 39,614 2020 54,371 2021 56,000 2022 57,676 2023 59,411 2024 4,963 Total lease payments 272,035 Less: Imputed interest/present value discount (63,002 ) Present value of lease liabilities $ 209,033 Lease expenses were $13,680 and $12,822 during the three months ended March 31, 2019 and 2018, respectively.

Stockholders' Deficit

Stockholders' Deficit	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 7 - Stockholders' Deficit	Common Stock During the three months ended March 31, 2019, the Company issued an aggregate of 37,906,356 shares of its common stock as follows: · The Company issued 7,500 shares of its common stock for services, valued at $69. · A convertible note holder converted $260,000 of principal and $16,111 of accrued interest into 74,442,605 shares of common stock at conversion prices ranging from $0.0025 to $0.0087 per share.

Options

Options	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 8 - Options	In September 2016 and December 2017, the Company issued options to purchase an aggregate of 259,000,000 shares of its common stock to management and employees. In July 2018, the Company issued options to purchase an aggregate of 500,001 shares of its common stock to a consulting firm. The options are exercisable at $0.016 to $0.00625 per share, vested in 6 to 12 months, and expire through December 2027. During the three months ended March 31, 2019 and 2018, the Company recognized compensation costs of $951 and $185,903, respectively, related to the amortization of the fair value of options that vested. The table below summarizes the Company’s stock option activities for the period January 1, 2019 to March 31, 2019: Number of Options Shares ExercisePrice Range PerShare Weighted Average Exercise Price Balance, January 1, 2019 259,500,002 $ 0.0057-2,242,500 $ 0.0062 Granted - $ - $ - Exercised - $ - $ - Expired - $ - $ - Balance outstanding, March 31, 2019 259,500,002 $ 0.0057-2,242,500 $ 0.0062 Balance exercisable, March 31, 2019 259,361,646 $ 0.0057-2,242,500 $ 0.0062 At March 31, 2019, the intrinsic value of outstanding options was zero. The following table summarizes information concerning the Company’s stock options as of March 31, 2019: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Average Remaining Contractual Life (in years) Weighted Average Exercise Price $ 975,000,000 1 1.00 $ 975,000,000 1 1.00 $ 975,000,000 $ 0.0057 63,000,000 10.00 $ 0.0057 63,000,000 10.00 $ 0.0057 $ 0.016 500,001 1.00 $ 0.016 361,645 1.00 $ 0.016 $ 0.00625 196,000,000 10.00 $ 0.0062 196,000,000 10.00 $ 0.0062 $ 0.00625 - 975,000,000 259,500,002 10.00 $ 0.0062 259,361,646 10.00 $ 0.0062

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 9 - Commitments and Contingencies	Legal Proceedings On June 20, 2016, the Company initiated additional patent litigation against three major competitors in the U.S. District Court for the District of New Jersey, for infringement of United States Patent No. 8,484,698. This litigation is ongoing. On March 14, 2017, one of the parties initiated an inter partes review (IPR) (a procedure for challenging the validity of a United States patent before the United States Patent and Trademark Office) against the Company’s second Patent No. 8,484,698. On March 14, 2017, the Company initiated additional patent litigation against two major competitors in the U.S. District Court for the District of Massachusetts, for infringement of United States Patent Nos. 7,870,599, 8,484,698 and 8,713,701. This litigation is ongoing. On March 14, 2017, the Company initiated additional patent litigation against two major competitors in the U.S. District Court for the Eastern District of Virginia, for infringement of United States Patent Nos. 7,870,599, 8,484,698 and 8,713,701. This litigation is ongoing. On June 13, 2017, one of the competitors initiated a lawsuit against the Company in the U.S. District Court for the District of New Jersey for patent infringement (which the Company believes is without merit and will defend vigorously). This litigation is ongoing. On December 1, 2017, The United States District Court for the Central District of California issued an opinion in the StrikeForce Technologies, Inc. v. SecureAuth Corp On December 4, 2017, StrikeForce Technologies, Inc. v. Trustwave Holdings, Inc., StrikeForce Technologies, Inc v. Duo Security Incorporated Contingent Payment Obligation On September 6, 2017, the Company entered into a litigation funding agreement with Therium Inc. and VGL Capital, LLC (collectively the “Funders”). Under the agreement, the Company received $1,500,000 from the Funders to allow the Company to pursue patent enforcement actions against infringements of its patents. In exchange, the Funders are entitled to receive, after the payment of legal fees, the first $1,500,000 from the gross proceeds of any claims awarded, 10% of any additional claim proceeds until the Funders have received an additional $7,500,000, and 2.5% of any claim proceeds thereafter. The Funders shall be paid only in the event that the Company achieves recoveries of claim proceeds Asset Sale and Licensing Agreement On August 24, 2015, the Company entered into an agreement with Cyber Safety, Inc., a New York corporation (“Cyber Safety”) for Cyber Safety to license, and retain an option to purchase, the patents and intellectual property related to the GuardedID® and MobileTrust® software. Cyber Safety had the option to buy the Company’s GuardedID® patent for $9,000,000 that expired on September 30, 2020. In March 2019, the option to purchase agreement was modified to increase the purchase price to $10,000,000 and extend the expiration date to September 30, 2021. If the purchase price is not paid by September 30, 2021, it will increase to $11,000,000 and be due September 30, 2022. The Company anticipates, but cannot guarantee, Cyber Safety will complete the purchase by September 30, 2021. Cyber Safety will also resell the Company’s GuardedID® and MobileTrust® products, for which the Company will receive a royalty, while the Company retains an unlimited license to resell those products. Cyber Safety also licensed the Malware Suite until September 30, 2020 and agreed to pay the Company 15% to 20% of the net amount Cyber Safety receives from this product. During the three months ended March 31, 2019 and 2018, the Company recorded $70,000 and $0 from Cyber Safety. Contingent Management Fee The Company and BlockSafe have a management agreement pursuant to which BlockSafe shall remit a management fee of $36,000 per month to the Company, and when BlockSafe reaches a milestone of $1,000,000 in financing, an additional management fee of $5,000,000 shall be owed to the Company, payable monthly over three years. The management fee is currently eliminated in consolidation.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Note 10 - Subsequent Events	In May 2019, the Company issued one unsecured convertible promissory note aggregating $73,000, bearing interest at 10% per annum, and maturing in one year through May 2020. The notes are convertible at a 58% discount to the price of the Company’s common stock, as defined. Subsequent to March 31, 2019, a convertible note holder converted $90,000 of principal and $5,175 of accrued interest into 36,501,734 shares of common stock at conversion prices ranging from $0.0024 to $0.0026 per share.

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Organization And Summary Of Significant Accounting Policies
Basis of Presentation-Unaudited Interim Financial Information	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods have been included. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2019. These financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2018 and notes thereto contained in the Annual Report on Form 10-K of the Company as filed with the SEC on April 15, 2019. The consolidated financial statements include the accounts of the Company and its controlled subsidiary, BlockSafe Technologies, Inc. (“BlockSafe”). BlockSafe is owned 49% by the Company and 31% by three executive officers of the Company, which combined represents an 80% controlling interest in BlockSafe. Accordingly, BlockSafe is consolidated by the Company. Intercompany balances and transactions have been eliminated in consolidation. At March 31, 2019, noncontrolling interests represents 51% of BlockSafe that the Company does not directly own.
Going Concern	The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, for the three months ended March 31, 2019, the Company incurred a net loss of $1,314,574 and used cash in operating activities of $446,791 and at March 31, 2019, the Company had a working capital deficiency of $14,595,184 and a stockholders’ deficit of $14,536,292. In addition, the Company is in default on notes payable and convertible notes payable in the aggregate amount of $3,076,924. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. At March 31, 2019, the Company had cash on hand in the amount of $100,869. Subsequent to March 31, 2019, the Company issued one unsecured convertible promissory note for $73,000. Management estimates that the current funds on hand will be sufficient to continue operations through the next six months. The Company’s ability to continue as a going concern is dependent upon its ability to continue to implement its business plan. Currently, management is attempting to increase revenues by selling through a channel of distributors, value added resellers, strategic partners and original equipment manufacturers. While the Company believes in the viability of its strategy to increase revenues, there can be no assurances to that effect. The Company’s ability to continue as a going concern is dependent upon its ability to increase its customer base and realize increased revenues. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stock holders, in the case of equity financing.
Estimates	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include those related to accounting for financing obligations, assumptions used in valuing stock instruments issued for services, assumptions used in valuing derivative liabilities, the valuation allowance for deferred income taxes, and accrual of potential liabilities. Actual results could differ from those estimates.
Revenue Recognition	The Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients. The Company’s revenue consists of revenue from sales and support of our software products. Revenue primarily consists of sales of software licenses of our ProtectID®, GuardedID® and MobileTrust® products. We recognize revenue from these arrangements ratably over the contractual service period. For service contracts, the Company’s performance obligations are satisfied, and the related revenue is recognized, as services are rendered. The Company offers no discounts, rebates, rights of return, or other allowances to clients which would result in the establishment of reserves against service revenue. Additionally, to date, the Company has not incurred incremental costs in obtaining a client contract. Cost of revenue includes direct costs and fees related to the sale of our products. The following tables present our revenue disaggregated by major product and service lines: Three Months Ended March 31, 2019 March 31, 2018 Software $ 117,790 $ 56,889 Service 13,898 7,804 Total revenue $ 131,688 $ 64,693
Leases	Prior to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases Leases,
Fair Value of Financial Instruments	The Company follows the authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) for fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels as follows: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. Level 3—Unobservable inputs based on the Company's assumptions. The Company is required to use of observable market data if such data is available without undue cost and effort. The Company believes the carrying amount reported in the balance sheet for accounts receivable, accounts payable, accrued expenses, convertible notes, and notes payables approximate fair values because of the short-term nature of these financial instruments. As of March 31, 2019 and December 31, 2018, the Company’s balance sheet includes Level 3 liabilities comprised of the fair value of embedded derivative liabilities of $1,682,259 and $1,313,904, respectively (see Note 5). These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. The following table sets forth a summary of the changes in the estimated fair value of our embedded derivative during the three-month periods ended March 31, 2019 and 2018: Three months ended March 31, 2019 Three months ended March 31, 2018 Fair value at beginning of period $ 1,313,904 $ 623,195 Recognition of derivative liabilities upon initial valuation 551,047 324,016 Extinguishment of derivative liabilities (343,068 ) - Net change in the fair value of derivative liabilities 160,376 (305,010 ) Fair value at end of period $ 1,682,259 $ 624,201
Loss per Share	Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted loss per share reflects the potential dilution, using the treasury stock method that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the loss of the Company. In computing diluted loss per share, the treasury stock method assumes that outstanding options, warrants, and convertible preferred stock are exercised and the proceeds are used to purchase common stock at the average market price during the period. Options, warrants, and convertible preferred stock may have a dilutive effect under the treasury stock method only when the average market price of the common stock during the period exceeds the exercise price of the options and warrants. For the three months ended March 31, 2019 and 2018, the dilutive impact of stock options exercisable into 259,500,002 and 259,000,001 shares of common stock, respectively, convertible Series B Preferred stock that can convert into 10,915,572 and 6,045,987 shares of common stock, respectively, and notes payable that can convert into 103,056,452 and 19,714,918 shares of common stock, respectively, have been excluded because their impact on the loss per share is anti-dilutive.
Concentrations	For the three months ended March 31, 2019, sales to three customers comprised 45%, 29% and 17% of revenues, respectively. For the three months ended March 31, 2018, sales to three customers comprised 61%, 22% and 11% of revenues, respectively. At March 31, 2019, one customer comprised 78% of accounts receivable. At December 31, 2018, two customers comprised 68% and 12% of accounts receivable, respectively. The Company maintains the majority of its cash balances with one financial institution, in the form of demand deposits. At March 31, 2019, the Company did not have cash deposits that exceeded the federally insured limit of $250,000. The Company believes that no significant concentration of credit risk exists with respect to its cash balances because of its assessment of the creditworthiness and financial viability of the financial institution.
Recent Accounting Pronouncements	In June 2016, the FASB issued ASU No. 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments ("ASC 326"). The standard significantly changes how entities will measure credit losses for most financial assets , including accounts and notes receivables. The standard will replace today’s “incurred loss” approach with an “expected loss” model , under which companies will recognize allowances based on expected rather than incurred losses. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is effective for interim and annual reporting periods beginning after December 15, 2019. The Company is currently assessing the impact of adopting this standard on the Company’s financial statements and related disclosures. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

Organization and Summary of S_3

Organization and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2019
Organization And Summary Of Significant Accounting Policies Tables Abstract
Schedule of Revenue Recognition	Three Months Ended March 2019 March 2018 Software $ 117,790 $ 56,889 Service 13,898 7,804 Total revenue $ 131,688 $ 64,693
Schedule of changes in estimated fair value	Three months ended March Three months ended March Fair value at beginning of period $ 1,313,904 $ 623,195 Recognition of derivative liabilities upon initial valuation 551,047 324,016 Extinguishment of derivative liabilities (343,068 ) - Net change in the fair value of derivative liabilities 160,376 (305,010 ) Fair value at end of period $ 1,682,259 $ 624,201

Convertible Notes Payable (Tabl

Convertible Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2019
Convertible Notes Payable
Schedule of convertible notes payable	March 2019 December 2018 Secured (a) DART, in default $ 542,588 $ 542,588 Unsecured (b) Convertible notes with fixed conversion features, in default 895,512 895,512 (c) Convertible notes with adjustable conversion features 789,000 695,000 Total convertible notes principal outstanding 2,227,100 2,133,100 Debt discount (570,340 ) (521,763 ) Convertible notes, net of discount $ 1,656,760 $ 1,611,337

Notes Payable (Tables)

Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Payable
Schedule of notes payable	March 2019 December 2018 Unsecured (a) Promissory notes-in default $ 413,824 $ 413,824 (b) Promissory notes – StrikeForce Investor Group-in default 1,225,000 1,225,000 (c) Promissory notes issued by BlockSafe ($350,000 and zero in default at March 31, 2019 and December 31, 2018, respectively) 515,000 775,500 Total notes payable principal outstanding 2,153,824 2,414,324 Debt discount (75,629 ) (195,654 ) Notes payable, net of discount $ 2,078,195 $ 2,218,670

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2019
Derivative Financial Instruments
Summary of derivative liability	March 31, 2019 January 2019 to March (dates of inception) December 31, 2018 Conversion feature: Risk-free interest rate 0.23 % 0.23%-0.25 % 0.25 % Expected volatility 120 % 91%-144 % 129 % Expected life (in years) 1 year 1 year 1 year Expected dividend yield - - - Fair Value: Conversion feature $ 1,682,259 $ 551,074 $ 1,313,904

Operating Lease (Tables)

Operating Lease (Tables)	3 Months Ended
	Mar. 31, 2019
Operating Lease
Schedule of lease expense and supplemental cash flow information	Three Months Ended March 31, 2019 Lease Cost Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations) $ 13,680 Other Information Cash paid for amounts included in the measurement of lease liabilities for the first quarter 2019 $ 13,134 Weighted average remaining lease term – operating leases (in years) 4.8 Average discount rate – operating leases 10.0 %
Schedule of supplemental balance sheet information	At March 31, 2019 Operating leases Long-term right-of-use assets 208,487 Short-term operating lease liabilities $ 33,598 Long-term operating lease liabilities 175,435 Total operating lease liabilities $ 209,033
Schedule of maturities	Year Ending Operating Leases 2019 (remaining 9 months) $ 39,614 2020 54,371 2021 56,000 2022 57,676 2023 59,411 2024 4,963 Total lease payments 272,035 Less: Imputed interest/present value discount (63,002 ) Present value of lease liabilities $ 209,033

Options (Tables)

Options (Tables) - Stock Options [Member]	3 Months Ended
	Mar. 31, 2019
Summary of stock option	Number Options Exercise Weighted Average Exercise Price Balance, January 1, 2019 259,500,002 $ 0.0057-2,242,500 $ 0.0062 Granted - $ - $ - Exercised - $ - $ - Expired - $ - $ - Balance outstanding, March 31, 2019 259,500,002 $ 0.0057-2,242,500 $ 0.0062 Balance exercisable, March 31, 2019 259,361,646 $ 0.0057-2,242,500 $ 0.0062
Summary of stock option outstanding and exercisable	Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Average Remaining Contractual Life (in years) Weighted Average Exercise Price $ 975,000,000 1 1.00 $ 975,000,000 1 1.00 $ 975,000,000 $ 0.0057 63,000,000 10.00 $ 0.0057 63,000,000 10.00 $ 0.0057 $ 0.016 500,001 1.00 $ 0.016 361,645 1.00 $ 0.016 $ 0.00625 196,000,000 10.00 $ 0.0062 196,000,000 10.00 $ 0.0062 $ 0.00625 - 975,000,000 259,500,002 10.00 $ 0.0062 259,361,646 10.00 $ 0.0062

Organization and Summary of S_4

Organization and Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Disclosure Organization And Summary Of Significant Accounting Policies Details Abstract
Software	$ 117,790	$ 56,889
Service	13,898	7,804
Total revenue	$ 131,688	$ 64,693

Organization and Summary of S_5

Organization and Summary of Significant Accounting Policies (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Organization And Summary Of Significant Accounting Policies Details Abstract
Fair value at beginning of period	$ 1,313,904	$ 623,195
Recognition of derivative liabilities upon initial valuation	551,047	324,016
Extinguishment of derivative liabilities	(343,068)
Net change in the fair value of derivative liabilities	(160,376)	305,010
Fair value at end of period	$ 1,682,259	$ 624,201

Organization and Summary of S_6

Organization and Summary of Significant Accounting Policies (Details Narrative)	3 Months Ended		12 Months Ended
	Mar. 31, 2019USD ($)Integershares	Mar. 31, 2018USD ($)shares	Dec. 31, 2018USD ($)shares	Jan. 31, 2019USD ($)	Dec. 31, 2017USD ($)
Net loss	$ 1,314,574
Net cash provided by (used in) operating activities	(446,791)		$ (559,516)
working capital deficit	14,595,184
Stockholders' Deficit	(14,536,292)	$ (11,344,972)	(13,802,504)		$ (10,793,186)
Cash	100,869	$ 387,968	86,160		$ 455,484
Operating lease right-of-use asset	208,487			$ 214,272
Liabilities for operating leases	209,033			$ 214,272
Derivative liabilities	$ 1,682,259		$ 1,313,904
Stock option exercisable shares | shares	259,500,002		259,000,001
Notes payable aggregate amount	$ 3,076,924
FDIC insured limit	250,000
Unsecured convertible promissory notes	$ 73,000
Number of unsecured convertible promissory notes | Integer	1
Proceeds from private placement	$ 197,047		$ 194,016
One customer [Member]
Percentage of sales revenues	45.00%	61.00%
Percentage of accounts receivable	55.00%		68.00%
Two customer [Member]
Percentage of sales revenues	29.00%	22.00%
Percentage of accounts receivable			12.00%
Three customer [Member]
Percentage of sales revenues	17.00%	11.00%
BlockSafe [Member]
Ownership interest held by officers			31.00%
Ownership interest held by company			49.00%
Ownership interest held by company and officers			80.00%
Noncontrolling interests percentage	51.00%
Series B Preferred stock [Member]
Conversion of common stock shares | shares	10,915,572	6,045,987
Notes Payable [Member]
Conversion of common stock shares | shares	103,056,452	19,714,918

Convertible Notes Payable (Deta

Convertible Notes Payable (Details) - USD ($)		Mar. 31, 2019	Dec. 31, 2018
Secured
(a) DART in default	[1]	$ 542,588	$ 542,588
Unsecured
(b) Convertible notes with fixed conversion features, in default	[2]	895,512	895,512
(c) Convertible notes with adjustable conversion features	[3]	789,000	695,000
Total convertible notes principal outstanding		2,227,100	2,133,100
Debt discount		(570,340)	(521,763)
Convertible notes, net of discount		$ 1,656,760	$ 1,611,337
[1]	At March 31, 2019 and December 31, 2018, $542,588 of notes payables are due to DART/Citco Global. The notes are convertible into shares of the Company?s common stock based on adjustable conversion prices, are secured by all of the Company?s assets, were due in 2010, and are currently in default. Beginning in 2009, the note holder agreed to the forbearance of any further interest on the notes payable to DART/Citco Global.
[2]	At March 31, 2019 and December 31, 2018, convertible notes payable with fixed conversion features (?fixed convertible notes?) consisted of 13 unsecured convertible notes convertible. The notes are unsecured, bear interest at 8% to 18% per annum, were due on various dates from March 2008 to March 2015, and are currently in default. At December 31, 2018, the balance of the accrued interest on the fixed convertible notes was $1,079,764. During the three months ended March 31, 2019, interest of $18,526 was accrued. At March 31, 2019, the balance of accrued interest on the fixed convertible notes was $1,098,290.
[3]	At December 31, 2018, there were $695,000 of convertible notes with adjustable conversion features outstanding. During the three months ended March 31, 2019, convertible notes for $354,000 were issued, and convertible notes for $260,000 were converted into shares of the Company?s common stock. At March 31, 2019, the balance of the convertible notes with adjustable conversion features was $789,000. During the three months ended March 31, 2019, the Company issued four convertible notes payable with adjustable conversion features to one lender for aggregate proceeds of $354,000, bearing interest at 10% per annum, and maturing through March 2020. At the option of the holder, each of the notes is convertible into shares of common stock of the Company at a price per share discount of 58% of the lowest closing market price of the Company?s common stock during the twenty days preceding a conversion notice. The variable conversion price is not considered predominately based on a fixed monetary amount settleable with a variable number of shares due to the volatility and trading volume of the Company?s common stock. As a result, the Company determined that the conversion features of the convertible notes were not considered indexed to the Company?s own stock and characterized the fair value of the conversion features as derivative liabilities upon issuance. The Company determined that upon issuance of the convertible notes between January 2019 and March 2019, the initial fair value of the embedded conversion feature totaled $551,047 (see Note 5), of which $354,000 was recorded as debt discount offsetting the face amount of the convertible notes, and the remainder of $197,047 was recorded as private placement costs. During the three months ended March 31, 2019, the note holder elected to convert three notes totaling $260,000 plus interest of $16,111 (total of $276,111) into 73,442,605 shares of the Company?s common stock at conversion prices ranging from $0.0025 to $0.0087 per share. On the dates of conversion, the closing price of the Company?s common stock ranged from $0.0052 to $0.0178 per share, or total fair value of shares of $579,166. The Company followed the general extinguishment model to record the settlement of the debt. The debt and accrued interest totaled $276,111, the related unamortized discount totaled ($125,982), and the shares issued were measured at their fair value of $579,166. The difference of $429,037 was recorded as loss on settlement of debt. In addition, the bifurcated conversion option derivatives, after a final mark-up to $343,068, were removed and recorded as a gain on extinguishment. At December 31, 2018, the balance of unamortized discount on convertible notes with adjustable conversion features was $521,763. During the three months ended March 31, 2019, debt discount of $354,000 was recorded, debt discount amortization of $179,441 was recorded, $125,982 of debt discount was removed related to debt that was converted. At March 31, 2019, the balance of the unamortized discount was $570,340.

Convertible Notes Payable (De_2

Convertible Notes Payable (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Disclosure Convertible Notes Payable Details Narrative Abstract
Acrrued interest of convertible notes	$ 1,120,442	$ 1,099,005
Accrued interest expense	$ 37,550	$ 18,954

Notes Payable (Details)

Notes Payable (Details) - USD ($)		Mar. 31, 2019	Dec. 31, 2018
Unsecured
(a) Promissory notes-in default	[1]	$ 413,824	$ 413,824
(b) Promissory notes - StrikeForce Investor Group-in default	[2]	1,225,000	1,225,000
(c) Promissory notes issued by BlockSafe ($350,000 and zero in default at March 31, 2019 and December 31, 2018, respectively)	[3]	515,000	775,500
Total notes payable principal outstanding		2,153,824	2,414,324
Debt discount		(75,629)	(195,654)
Notes payable, net of discount		$ 2,078,195	$ 2,218,670
[1]	Notes payable, with interest from 8% to 14% per annum, due on various dates from December 2011 to July 2017 and are currently in default. At December 31, 2018, the balance of the accrued interest on the notes payable-various was $505,454. During the three months ended March 31, 2019, $11,232 of interest was accrued. At March 31, 2019, accrued interest on the notes payable-various was $516,686.
[2]	Notes payable to StrikeForce Investor Group (SIG), made up of various investors with unsecured notes, interest at 10% per annum, originally due in 2011, and currently in default. At December 31, 2018, the balance of the accrued interest on the notes payable-SIG was $1,509,844. During the three months ended March 31, 2019, $30,205 of interest was accrued. At March 31, 2019, accrued interest on the notes payable-SIG was $1,540,049.
[3]	At December 31, 2018, BlockSafe (see Note 1) had $775,500 of outstanding unsecured promissory notes, bearing interest at 8% per annum, and maturing through September 2019. During the three months ended March 31, 2019, $5,000 of unsecured promissory notes were paid, and note holders agreed to exchange $255,500 of principal into a financing obligation (see Note 4). At March 31, 2019, the balance of the unsecured promissory notes was $515,000. At March 31, 2019, $350,000 of the unsecured promissory notes were in default. At December 31, 2018, the balance of the unamortized discount on the unsecured promissory notes was $195,653. During the three months ended March 31, 2019, debt discount amortization of $120,025 was recorded and the balance of the unamortized discount at March 31, 2019 was $75,629. At December 31, 2018, the balance of the accrued interest on the unsecured promissory notes was $46,388. During the three months ended March 31, 2019, $14,818 of interest was accrued and $16,570 of accrued interest was converted into a financing obligation (See Note 4). At March 31, 2019, accrued interest on the unsecured promissory notes was $44,636.

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - Notes Payable [Member] - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Accrued interest	$ 2,101,371		$ 2,061,686
Interest expense	$ 39,685	$ 46,500

Financing Obligation (Details N

Financing Obligation (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Financing obligation	$ 1,210,070	$ 825,500
Promissory note - various parties [Member] | Related Party [Member]
Financing obligation	$ 1,210,070	775,500
Promissory note - various parties [Member] | Related Party [Member] | Cryptocurrency Tokens [Member]
Financing obligation description	At March 31, 2019, as the tokens do not exist yet, and were not considered equity, management determined that 100% of the obligation of $1,210,070 is probable of being a liability to be settled by BlockSafe, through the issuance of tokens, or through other means if tokens are never issued, and therefore recorded the financing obligation.
Promissory note - various parties [Member] | Unrelated Party [Member] | Cryptocurrency Tokens [Member]
Cryptocurrency token, amount		50,000
Promissory note - various parties [Member] | BlockSafe [Member]
Financing obligation		$ 825,500
Promissory note - various parties [Member] | Four unrelated Party [Member] | Cryptocurrency Tokens [Member]
Cryptocurrency token, amount	$ 112,500
Unsecured notes payable [Member] | Cryptocurrency Tokens [Member]
Cryptocurrency token, amount	255,500
Financing obligation, accrued interest	$ 16,570

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - USD ($)	3 Months Ended	12 Months Ended	13 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2019
Conversion feature:
Risk-free interest rate	0.23%	0.25%
Expected volatility	120.00%	129.00%
Expected life (in years)	1 year	1 year	1 year
Expected dividend yield
Fair Value:
Conversion feature	$ 1,682,259	$ 1,313,904	$ 551,074
Minimum [Member]
Conversion feature:
Risk-free interest rate			0.23%
Expected volatility			91.00%
Maximum [Member]
Conversion feature:
Risk-free interest rate			0.25%
Expected volatility			144.00%

Derivative Financial Instrume_4

Derivative Financial Instruments (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Disclosure Derivativefinancial Instruments Details Narrative Abstract
Conversion price description of convertible promissory notes	Convertible promissory notes outstanding that are convertible into shares of common stock of the Company at the option of the holder at price per share discounts ranging from 20% to 58% of the Company's common stock market price, as defined in the note agreements.
Change in fair value of derivative liabilities	$ 160,376	$ (305,010)
Derivative liabilities	1,682,259		$ 1,313,904
Beneficial conversion feature	551,047
Extinguishment of derivative liabilities	$ (343,068)

Operating Lease (Details)

Operating Lease (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
Lease Cost
Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations)	$ 13,680
Other Information
Cash paid for amounts included in the measurement of lease liabilities for the first quarter 2019	$ 13,134
Weighted average remaining lease term operating leases (in years)	4 years 9 months 18 days
Average discount rate operating leases	10.00%

Operating Lease (Details 1)

Operating Lease (Details 1) - USD ($)	Mar. 31, 2019	Jan. 31, 2019	Dec. 31, 2018
Operating leases
Long-term right-of-use assets	$ 208,487	$ 214,272
Short-term operating lease liabilities	33,598
Long-term operating lease liabilities	175,435
Total operating lease liabilities	$ 209,033	$ 214,272

Operating Lease (Details 2)

Operating Lease (Details 2) - USD ($)	Mar. 31, 2019	Jan. 31, 2019
Disclosure Operating Lease Details 2Abstract
2019 (remaining 9 months)	$ 39,614
2020	54,371
2021	56,000
2022	57,676
2023	59,411
2024	4,963
Total lease payments	272,035
Less: Imputed interest/present value discount	(63,002)
Present value of lease liabilities	$ 209,033	$ 214,272

Operating Lease (Details Narrat

Operating Lease (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Disclosure Operating Lease Details Narrative Abstract
Operating lease payments	$ 4,409
Operating lease term	4 years 10 months 6 days
Lease expenses	$ 13,680	$ 12,822
Operating lease description	payments increasing 3% each year, and ending on January 31, 2024.

Stockholders Deficit (Details N

Stockholders Deficit (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Common Stock, shares issued	2,447,199,702		2,373,749,597
Common Stock [Member]
Common Stock, shares issued	37,906,356
Fair value of common stock issued for services, Shares	7,500	7,500
Common stock for servies [Member]
Fair value of common stock issued for services, Shares		7,500
Convertible Notes Payable [Member]
Debt conversion converted/convertible amount, principal	$ 260,000
Debt conversion converted amount, accrued interest	$ 16,111
Debt conversion converted instrument shares issued	74,442,605
Convertible Notes Payable [Member] | Minimum [Member]
Conversion price	$ 0.0025
Convertible Notes Payable [Member] | Maximum [Member]
Conversion price	$ 0.0087

Options (Details)

Options (Details) - Stock Options [Member]	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Outstanding, beginning balance | shares	259,500,002
Granted | shares
Exercised | shares
Expired | shares
Outstanding, ending balance | shares	259,500,002
Exercisable | shares	259,361,646
Exercise Price Range Per Share
Granted
Exercised
Expired
Outstanding, beginning balance	0.0062
Granted
Exercised
Expired
Outstanding, ending balance	0.0062
Exercisable	$ 0.0062
Minimum [Member]
Exercise Price Range Per Share
Outstanding, beginning balance | shares	0.0057
Outstanding, ending balance	$ 0.0057
Exercisable	$ 0.0057
Maximum [Member]
Exercise Price Range Per Share
Outstanding, beginning balance | shares	2,242,500
Outstanding, ending balance	$ 2,242,500
Exercisable	$ 2,242,500

Options (Details 1)

Options (Details 1) - Stock Options [Member]	3 Months Ended
	Mar. 31, 2019$ / sharesshares
$975,000,000 [Member]
Options Outstanding
Number of warrants outstanding | shares	1
Weighted average remaining contractual life (years)	1 year
Weighted average exercise price | $ / shares	$ 975,000,000
Options Exercisable
Number of warrants exercisable | shares	1
Weighted average remaining contractual life (years)	1 year
Weighted average exercise price | $ / shares	$ 975,000,000
0.0057 [Member]
Options Outstanding
Number of warrants outstanding | shares	63,000,000
Weighted average remaining contractual life (years)	10 years
Weighted average exercise price | $ / shares	$ 0.0057
Options Exercisable
Number of warrants exercisable | shares	63,000,000
Weighted average remaining contractual life (years)	10 years
Weighted average exercise price | $ / shares	$ 0.0057
0.0016 [Member]
Options Outstanding
Number of warrants outstanding | shares	500,001
Weighted average remaining contractual life (years)	1 year
Weighted average exercise price | $ / shares	$ 0.016
Options Exercisable
Number of warrants exercisable | shares	361,645
Weighted average remaining contractual life (years)	1 year
Weighted average exercise price | $ / shares	$ 0.016
$0.00625 [Member]
Options Outstanding
Number of warrants outstanding | shares	196,000,000
Weighted average remaining contractual life (years)	10 years
Weighted average exercise price | $ / shares	$ 0.0062
Options Exercisable
Number of warrants exercisable | shares	196,000,000
Weighted average remaining contractual life (years)	10 years
Weighted average exercise price | $ / shares	$ 0.0062
0.00625 - 975,000,000 [Member]
Options Outstanding
Number of warrants outstanding | shares	259,500,002
Weighted average remaining contractual life (years)	10 years
Weighted average exercise price | $ / shares	$ 0.0062
Options Exercisable
Number of warrants exercisable | shares	259,361,646
Weighted average remaining contractual life (years)	10 years
Weighted average exercise price | $ / shares	$ 0.0062

Options (Details Narrative)

Options (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Jul. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Stock Options [Member]
Option issued to purchase common shares	500,001
Expiry year	December 2027
Compensation cost of vested option		$ 951	$ 185,903
Stock Options [Member] | Minimum [Member]
Exercise price	$ 0.016
Vesting period	6 months
Stock Options [Member] | Maximum[Member]
Exercise price	$ 0.00625
Vesting period	12 months
September 2016 And December 2017 [Member]
Option issued to purchase common shares		259,000,000

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	Sep. 06, 2017	Mar. 31, 2019	Aug. 24, 2015	Mar. 31, 2019	Mar. 31, 2018
Litigation funding agreement [Member] | Therium Inc. and VGL Capital, LLC [Member]
Amount received from funders to fund litigations	$ 1,500,000
Description for the amount payable to funders against funding	In exchange, the Funders are entitled to receive, after the payment of legal fees, the first $1,500,000 from the gross proceeds of any claims awarded, 10% of any additional claim proceeds until the Funders have received an additional $7,500,000, and 2.5% of any claim proceeds thereafter
Management agreement [Member] | BlockSafe [Member]
Management fee periodic payment				$ 36,000
Frequency of periodic payment				Monthly
Amount of milestone to enable the payment of additional fees		$ 1,000,000		$ 1,000,000
Management fees payable upon achievement of first milestone		$ 5,000,000		$ 5,000,000
Management fees payable, term				Payable monthly over three years
Cyber Safety, Inc [Member]
Patent expiry year		Sept. 30, 2021	Sept. 30, 2020
Option to buy patent price		$ 10,000,000	$ 9,000,000
Amount payable to related party				$ 70,000	$ 0
Event of default, purchase price		$ 11,000,000
Event of default, maturity date		Sept. 30, 2022
Cyber Safety, Inc [Member] | Minimum [Member]
Amount receivable from product percentage			15.00%
Cyber Safety, Inc [Member] | Maximum [Member]
Amount receivable from product percentage			20.00%

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member] - Convertible Promissory Note [Member] - USD ($)	1 Months Ended	3 Months Ended
	May 31, 2019	Mar. 31, 2019
Convertible promissory note	$ 73,000
Debt conversion converted/convertible amount, principal		$ 90,000
Debt conversion converted/covertible amount, accrued interest		$ 5,175
Debt conversion converted instrument, shares issued		36,501,734
Interest rate	10.00%
Convertible promissory note conversion description	The notes are convertible at a 58% discount to the price of the Company’s common stock, as defined
Discount on price of company common stock	58.00%
Maturity period	May 2020
Minimum [Member]
Conversion price		$ 0.0024
Maximum[Member]
Conversion price		$ 0.0026