Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 14, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 333-120120-01 | |
Entity Registrant Name | KIDOZ INC. | |
Entity Central Index Key | 0001318482 | |
Entity Tax Identification Number | 98-0206369 | |
Entity Incorporation, State or Country Code | 1A | |
Entity Address, Address Line One | Hansa Bank Building | |
Entity Address, Address Line Two | Ground Floor | |
Entity Address, Address Line Three | Landsome Road | |
Entity Address, City or Town | The Valley | |
Entity Address, Country | AI | |
Entity Address, Postal Zip Code | AI 2640 | |
City Area Code | (888) | |
Local Phone Number | 374-2163 | |
Title of 12(b) Security | Common Shares | |
Trading Symbol | KIDZ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 131,536,499 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash | $ 1,830,262 | $ 2,078,607 |
Accounts receivable, less allowance for doubtful accounts $53,068 (December 31, 2021 - $56,605) (Note 3) | 4,222,055 | 6,627,864 |
Prepaid expenses | 106,291 | 105,468 |
Total Current Assets | 6,158,608 | 8,811,939 |
Equipment (Note 4) | 26,798 | 20,523 |
Goodwill (Note 6) | 3,301,439 | 3,301,439 |
Intangible assets (Note 5) | 1,283,891 | 1,694,917 |
Long term cash equivalent | 21,994 | 23,624 |
Operating lease right-of-use assets (Note 12) | 43,706 | 65,464 |
Security deposit | 10,775 | 7,625 |
Total Assets | 10,847,211 | 13,925,531 |
Current liabilities: | ||
Accounts payable | 1,854,734 | 3,693,944 |
Accrued liabilities | 403,697 | 471,882 |
Accounts payable and accrued liabilities - related party (Note 13) | 98,455 | 53,829 |
Derivative liability – warrants (Note 2e and 9) | 17 | 23,365 |
Operating lease liabilities – current portion (Note 12) | 31,112 | 32,068 |
Total Current Liabilities | 2,388,015 | 4,275,088 |
Deferred tax liability | 210,499 | 210,499 |
Government CEBA loan (Note 8) | 43,668 | 47,248 |
Operating lease liabilities – non-current portion (Note 12) | 15,399 | 41,999 |
Total Liabilities | 2,657,581 | 4,574,834 |
Commitments (Note 11) | ||
Stockholders’ Equity (Note 9): | ||
Common stock, no par value, unlimited shares authorized, 131,581,499 shares issued and outstanding (December 31, 2021 - 131,424,989) | 50,570,345 | 49,964,919 |
Accumulated deficit | (42,405,295) | (40,638,802) |
Accumulated other comprehensive income: | ||
Foreign currency translation adjustment | 24,580 | 24,580 |
Total Stockholders’ Equity | 8,189,630 | 9,350,697 |
Total Liabilities and Stockholders’ Equity | $ 10,847,211 | $ 13,925,531 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 53,068 | $ 56,605 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | Unlimited | Unlimited |
Common stock, shares issued (in shares) | 131,581,499 | 131,424,989 |
Common stock, shares outstanding (in shares) | 131,581,499 | 131,424,989 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue: | ||||
Total revenue | $ 3,505,812 | $ 2,814,642 | $ 8,303,399 | $ 6,550,089 |
Cost of sales: | 2,260,242 | 1,588,108 | 5,254,969 | 3,614,181 |
Total cost of sales | 2,260,242 | 1,588,108 | 5,254,969 | 3,614,181 |
Gross profit | 1,245,570 | 1,226,534 | 3,048,430 | 2,935,908 |
Operating expenses: | ||||
Amortization of operating lease right-of-use assets (Note 12) | 7,177 | 7,369 | 21,758 | 33,481 |
Depreciation and amortization (Notes 4 & 5) | 138,757 | 141,326 | 417,742 | 424,255 |
Directors fees (Note 13) | 2,000 | 2,022 | 5,998 | 6,022 |
General and administrative | 178,717 | 145,765 | 580,730 | 469,821 |
Salaries, wages, consultants and benefits | 139,994 | 123,381 | 567,752 | 511,959 |
Selling and marketing (Note 13) | 222,379 | 156,122 | 654,181 | 465,954 |
Stock awareness program | 9,936 | 65,392 | 105,694 | 351,249 |
Stock-based compensation (Note 9 & 13) | 181,129 | 178,763 | 525,721 | 448,369 |
Content and software development (Note 7 & 13) | 613,196 | 477,559 | 1,773,889 | 1,180,898 |
Total operating expenses | 1,493,285 | 1,297,699 | 4,653,465 | 3,892,008 |
Loss before other income (expense) and income taxes | (247,715) | (71,165) | (1,605,035) | (956,100) |
Other income (expense): | ||||
Foreign exchange loss | (67,736) | (16,479) | (184,989) | (58,651) |
Gain on derivative liability – warrants (Note 2e) | 1,499 | 12,329 | 23,348 | 50,313 |
Interest and other income | 178 | 266 | 178 | 266 |
Loss before income taxes | (313,774) | (75,049) | (1,766,498) | (964,172) |
Income tax recovery (expense) | 9 | 5 | (2,989) | |
Loss after tax | (313,774) | (75,040) | (1,766,493) | (967,161) |
Other comprehensive income (loss) | ||||
Comprehensive loss | $ (313,774) | $ (75,040) | $ (1,766,493) | $ (967,161) |
Basic and diluted loss per common share | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Weighted average common shares outstanding, basic | 131,581,499 | 131,424,989 | 131,464,438 | 131,312,681 |
Weighted average common shares outstanding, diluted | 131,581,499 | 131,424,989 | 131,464,438 | 131,312,681 |
Advertising [Member] | ||||
Revenue: | ||||
Total revenue | $ 3,454,824 | $ 2,759,508 | $ 8,117,934 | $ 6,384,308 |
Content [Member] | ||||
Revenue: | ||||
Total revenue | $ 50,988 | $ 55,134 | $ 185,465 | $ 165,781 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Retained Earnings [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 49,094,096 | $ (40,448,481) | $ 24,580 | $ 8,670,195 |
Beginning balance, shares at Dec. 31, 2020 | 131,124,989 | |||
Stock-based compensation | $ 77,021 | 77,021 | ||
Net loss and comprehensive loss | (347,044) | (347,044) | ||
Ending balance, value at Mar. 31, 2021 | $ 49,171,117 | (40,795,525) | 24,580 | 8,400,172 |
Ending balance, shares at Mar. 31, 2021 | 131,124,989 | |||
Beginning balance, value at Dec. 31, 2020 | $ 49,094,096 | (40,448,481) | 24,580 | 8,670,195 |
Beginning balance, shares at Dec. 31, 2020 | 131,124,989 | |||
Net loss and comprehensive loss | (967,161) | |||
Ending balance, value at Sep. 30, 2021 | $ 49,753,022 | (41,415,642) | 24,580 | 8,361,960 |
Ending balance, shares at Sep. 30, 2021 | 131,424,989 | |||
Beginning balance, value at Dec. 31, 2020 | $ 49,094,096 | (40,448,481) | 24,580 | $ 8,670,195 |
Beginning balance, shares at Dec. 31, 2020 | 131,124,989 | |||
Options exercised, shares | 70,000 | |||
Ending balance, value at Dec. 31, 2021 | $ 49,964,919 | (40,638,802) | 24,580 | $ 9,350,697 |
Ending balance, shares at Dec. 31, 2021 | 131,424,989 | |||
Beginning balance, value at Mar. 31, 2021 | $ 49,171,117 | (40,795,525) | 24,580 | 8,400,172 |
Beginning balance, shares at Mar. 31, 2021 | 131,124,989 | |||
Stock-based compensation | $ 192,585 | 192,585 | ||
Net loss and comprehensive loss | (545,077) | (545,077) | ||
Shares issued | $ 179,293 | 179,293 | ||
Shares issued, shares | 230,000 | |||
Options exercised | $ 31,264 | $ 31,264 | ||
Options exercised, shares | 70,000 | 70,000 | ||
Ending balance, value at Jun. 30, 2021 | $ 49,574,259 | (41,340,602) | 24,580 | $ 8,258,237 |
Ending balance, shares at Jun. 30, 2021 | 131,424,989 | |||
Stock-based compensation | $ 178,763 | 178,763 | ||
Net loss and comprehensive loss | (75,040) | (75,040) | ||
Ending balance, value at Sep. 30, 2021 | $ 49,753,022 | (41,415,642) | 24,580 | 8,361,960 |
Ending balance, shares at Sep. 30, 2021 | 131,424,989 | |||
Beginning balance, value at Dec. 31, 2021 | $ 49,964,919 | (40,638,802) | 24,580 | 9,350,697 |
Beginning balance, shares at Dec. 31, 2021 | 131,424,989 | |||
Stock-based compensation | $ 159,998 | 159,998 | ||
Net loss and comprehensive loss | (731,042) | (731,042) | ||
Ending balance, value at Mar. 31, 2022 | $ 50,124,917 | (41,369,844) | 24,580 | 8,779,653 |
Ending balance, shares at Mar. 31, 2022 | 131,424,989 | |||
Beginning balance, value at Dec. 31, 2021 | $ 49,964,919 | (40,638,802) | 24,580 | 9,350,697 |
Beginning balance, shares at Dec. 31, 2021 | 131,424,989 | |||
Net loss and comprehensive loss | (1,766,493) | |||
Ending balance, value at Sep. 30, 2022 | $ 50,570,345 | (42,405,295) | 24,580 | 8,189,630 |
Ending balance, shares at Sep. 30, 2022 | 131,581,499 | |||
Beginning balance, value at Mar. 31, 2022 | $ 50,124,917 | (41,369,844) | 24,580 | 8,779,653 |
Beginning balance, shares at Mar. 31, 2022 | 131,424,989 | |||
Stock-based compensation | $ 184,594 | 184,594 | ||
Net loss and comprehensive loss | (721,677) | (721,677) | ||
Shares issued | $ 79,705 | 79,705 | ||
Shares issued, shares | 156,510 | |||
Ending balance, value at Jun. 30, 2022 | $ 50,389,216 | (42,091,521) | 24,580 | 8,322,275 |
Ending balance, shares at Jun. 30, 2022 | 131,581,499 | |||
Stock-based compensation | $ 181,129 | 181,129 | ||
Net loss and comprehensive loss | (313,774) | (313,774) | ||
Ending balance, value at Sep. 30, 2022 | $ 50,570,345 | $ (42,405,295) | $ 24,580 | $ 8,189,630 |
Ending balance, shares at Sep. 30, 2022 | 131,581,499 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||||||
Net loss | $ (313,774) | $ (731,042) | $ (75,040) | $ (347,044) | $ (1,766,493) | $ (967,161) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 417,742 | 424,255 | |||||
Amortization of operating lease right-of-use assets | 7,177 | 7,369 | 21,758 | 33,481 | $ 40,851 | ||
Gain on derivative liability – warrants | (23,348) | (50,313) | |||||
Shares issued for services | 179,293 | ||||||
Stock awareness program – warrants granted for services | 83,572 | ||||||
Stock-based compensation | 525,721 | 448,369 | |||||
Unrealized foreign exchange | (5,100) | 97 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 2,405,809 | 393,856 | |||||
Prepaid expenses | (823) | (36,777) | |||||
Accounts payable and accrued liabilities | (1,783,064) | (553,919) | |||||
Net cash used in operating activities | (207,798) | (45,247) | |||||
Cash flows from investing activities: | |||||||
Acquisition of equipment | (12,991) | (7,868) | |||||
Long-term cash equivalent | 7,790 | ||||||
Net cash used in investing activities | (12,991) | (78) | |||||
Cash flows from financing activities: | |||||||
Options exercised | 31,264 | ||||||
Proceeds of short-term loan | 200,000 | ||||||
Repayment of short-term loan | (200,000) | ||||||
Payments on operating lease liabilities | (27,556) | (21,976) | |||||
Net cash (used in) provided by financing activities | (27,556) | 9,288 | |||||
Change in cash | (248,345) | (36,037) | |||||
Cash, beginning of period | $ 2,078,607 | $ 1,226,045 | 2,078,607 | 1,226,045 | 1,226,045 | ||
Cash, end of period | $ 1,830,262 | $ 1,190,008 | 1,830,262 | 1,190,008 | $ 2,078,607 | ||
Supplementary information: | |||||||
Interest paid | 987 | ||||||
Income taxes paid | 3,206 | 2,989 | |||||
Non-cash transaction | |||||||
Shares issued to settle accounts payable and accrued liabilities | $ 79,705 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared by Kidoz Inc. (“the Company”) in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) applicable to interim financial information and with the rules and regulations of the United States Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed, or omitted, pursuant to such rules and regulations. In the opinion of management, the unaudited interim consolidated financial statements include all adjustments necessary for the fair presentation of the results of the interim periods presented. All adjustments are of a normal recurring nature, except as otherwise noted below. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K, filed March 30, 2022, with the Securities and Exchange Commission and the TSX Venture Exchange. The results of operations for the interim periods are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year. Continuing operations These unaudited interim consolidated financial statements have been prepared assuming the realization of assets and the settlement of liabilities in the normal course of operations. The Company expects to continue to achieve profitable operations to generate sufficient cash flows to fund continued operations for the next 12 months, or, in the absence of adequate cash flows from operations, obtaining additional financing. Management continues to review operations in order to identify additional strategies designed to generate cash flow, improve the Company’s financial position, and enable the timely discharge of the Company’s obligations. In March 2020 the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, has led to an economic downturn. It has also disrupted the normal operations of many businesses, including the Company’s. In early March 2020, the Company’s employees commenced working from home and commenced social distancing. This outbreak has affected spending, thereby affecting demand for the Company’s product and the Company’s business and results of operations. It is not possible for the Company to predict the duration or magnitude of the outbreak and while the pandemic appears to have slowed at this time its full continuing effects on the Company’s business, its future results of operations, or ability to raise funds remain impossible to predict. Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) |
Summary of significant accounti
Summary of significant accounting policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of presentation These unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) applicable to annual financial information and with the rules and regulations of the United States Securities and Exchange Commission. The financial statements include the accounts of the Company’s subsidiaries: Schedule of Consolidation, Wholly Owned and Less than Wholly Owned Subsidiary, Parent Ownership Interest Company Registered % Owned Shoal Media (Canada) Inc. British Columbia, Canada 100 % Coral Reef Marketing Inc. Anguilla 100 % Kidoz Ltd. Israel 100 % Prado Media Ltd. British Columbia, Canada 100 % Rooplay Media Kenya Limited Kenya 100 % Shoal Media Inc. Anguilla 100 % Shoal Games (UK) Plc United Kingdom 99 % Shoal Media (UK) Ltd. United Kingdom 100 % During the quarter ended September 30, 2022, Rooplay Media Ltd. was renamed Prado Media Ltd., a company focused on advertising to parents and teens. In addition, there are the following dormant subsidiaries: Bingo.com (Antigua) Inc., Bingo.com (Wyoming) Inc., and Bingo Acquisition Corp. All inter-company balances and transactions have been eliminated in the unaudited interim consolidated financial statements. (b) Use of estimates The preparation of unaudited interim consolidated financial statements in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and recognized revenues and expenses for the reporting periods. Significant areas requiring the use of estimates include the collectability of accounts receivable, the valuation of stock-based compensation, the valuation of deferred tax assets and liabilities, the useful lives of intangible assets, and the derivative liability – warrants valuation. Actual results may differ significantly from these estimates. (c) Revenue recognition In accordance with ASC 606, Revenue from Contracts with Customers, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services. We derive substantially all of our revenue from the sale of Ad tech advertising revenue. Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 2. Summary of significant accounting policies (Continued): (c) Revenue recognition: (Continued) To achieve this core principle, the Company applied the following five steps: 1) Identify the contract with a customer A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the services to be transferred, whose impression count will form the basis of the revenue and identifies the payment terms related to these services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services, the Company must apply judgment to determine whether promised services are capable of being distinct and distinct in the context of the contract. If these criteria are not met the promised services are accounted for as a combined performance obligation. 3) Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services to the customer. None of the Company’s contracts contain financing or variable consideration components. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 2. Summary of significant accounting policies (Continued): (c) Revenue recognition: (Continued) 5) Recognize revenue when or as the Company satisfies a performance obligation The Company satisfies performance obligations at a point in time as discussed in further detail under “Disaggregation of Revenue” below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised service to a customer. Disaggregation of Revenue All of the Company’s performance obligations, and associated revenue, are generally transferred to customers at a point in time. The Company has the following revenue streams: 1) Ad tech advertising revenue - The Company generally offers these services under a customer contract Cost-per-Impression (CPM), Cost-Per-Install or CPI arrangements, Cost per completed video view or CPC and/or Cost-Per-Action or CPA arrangements with third-party advertisers and developers, as well as advertising aggregators, generally in the form of insertion orders that specify the type of arrangement (as detailed above) at particular set budget amounts/restraints. These advertiser customer contracts are generally short term in nature at less than one year as the budget amounts are typically spent in full within this time period. These agreements typically include the delivery of Ad tech advertising through partner networks, defined as publishers / developers, to home screens of devices and agree on whose results will be relied on from a revenue point of view. The Company has concluded that the delivery of the Ad tech advertising is delivered at a point in time and, as such, has concluded these deliveries are a single performance obligation. The Company invoices fees which are generally variable based on the arrangement, which would typically include the number of impressions delivered at a specified price per application. For impressions delivered, revenue is recognized in the month in which the Company delivers the application to the end consumer or the month when the campaign ends. 2) Content revenue – The Company recognizes content revenue on the following forms of revenue: a) Carriers and OEMs - The Company generally offers these services under a customer contract per tablet device license fee model with OEMs. Monthly or quarterly license fees are based on the OEM agreement with the number of devices the Kidoz Kid Mode is installed upon. Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 2. Summary of significant accounting policies (Continued): (c) Revenue recognition: (Continued) b) The Company generates revenue through subscriptions or premium sales of Rooplay, (www.rooplay.com) the cloud-based EduGame system for kids to learn and play within its games on smartphones and tablet devices, such as Apple’s iPhone and iPad, and mobile devices utilizing Google’s Android operating system. Users can download the Company’s games through Digital Storefronts and decide to subscribe to the multiple of educational and fun games in the Rooplay, cloud-based EduGame system or make a premium per purchase of particular games. The revenue is recognized net of platform fees. c) Rooplay licensing - The Company licenses its branded educational games under a monthly cost per game agreement license fee model. Monthly license fees are based on the number of games licensed. d) In App purchases - The Company generates revenue through in-application purchases (“in-app purchases”) within its games; (i.e. Trophy Bingo (www.trophybingo.com)) on smartphones and tablet devices, such as Apple’s iPhone and iPad, and mobile devices utilizing Google’s Android operating system. Users can download the Company’s free-to-play games through Android, Amazon, iOS and Facebook Messenger (this was discontinued in fiscal 2021) and pay to acquire virtual currency which can be redeemed in the game for power plays. The initial download of the mobile game from the Digital Storefront does not create a contract under ASC 606 because of the lack of commercial substance; however, the separate election by the player to make an in-application purchase satisfies the criterion thus creating a contract under ASC 606. The Company has identified the following performance obligations in these contracts: i. Ongoing game related services such as hosting of game play, storage of customer content, when and if available content updates, maintaining the virtual currency management engine, tracking gameplay statistics, matchmaking as it relates to multiple player gameplay, etc. ii. Obligation to the paying player to continue displaying and providing access to the virtual items within the game. Neither of these obligations are considered distinct since the actual mobile game and the related ongoing services are both required to purchase and benefit from the related virtual items. As such, the Company’s performance obligations represent a single combined performance obligation which is to make the game and the ongoing game related services available to the players. The revenue is recognized net of platform fees. (d) Software development costs The Company expensed all software development costs as incurred for the period ended September 30, 2022 and 2021. As at September 30, 2022 and December 31, 2021, all capitalized software development costs have been fully amortized and the Company has no capitalized software development costs. Total software development costs were $ 12,333,490 10,559,601 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 2. Summary of significant accounting policies (Continued): (e) Derivative liability – warrants The Company’s warrants have an exercise price in Canadian dollars whilst the Company’s functional currency is US Dollars. Therefore, in accordance with ASU 815 – Derivatives and Hedging, the warrants have a derivative liability value. This liability value has no effect on the cashflow of the Company and does not represent a cash payment of any kind. (f) Impairment of long-lived assets and long-lived assets to be disposed of If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell. Intangible assets are recorded at cost less accumulated amortization. Amortization is provided for annually on the straight-line method over the following periods: Schedule of Finite-Lived Intangible Assets, Amortization Period Amortization period Ad Tech technology 5 Kidoz OS technology 3 Customer relationship 8 (g) Goodwill The Company accounts for goodwill in accordance with the provisions of ASC 350, Intangibles-Goodwill and Others. Goodwill is the excess of the purchase price over the fair value of identifiable assets acquired, less liabilities assumed, in a business combination. The Company reviews goodwill for impairment. Goodwill is not amortized but is evaluated for impairment at least annually or whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount may not be recoverable. The goodwill impairment test is used to identify both the existence of impairment and the amount of impairment loss, and compares the fair value of a reporting unit with its carrying amount and is based on discounted future cash flows, based on market multiples applied to free cash flow. The determination of the fair value of our reporting units requires management to make significant estimates and assumptions including the selection of control premiums, discount rates, terminal growth rates, forecasts of revenue and expense growth rates, income tax rates, changes in working capital, depreciation, amortization and capital expenditures. Changes in assumptions concerning future financial results, exogenous market conditions, or other underlying assumptions could have a significant impact on either the fair value of the reporting unit or the amount of the goodwill impairment charge. If the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. During the year ended December 31, 2021, the Company determined there was no Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 2. Summary of significant accounting policies (Continued): (h) New accounting pronouncements and changes in accounting policy The Company has evaluated all of the recently issued, but not yet effective, accounting standards that have been issued or proposed by the Financial Accounting Standards Board or other standards-setting bodies through the filing date of these unaudited consolidated financial statements and does not believe the future adoption of any such pronouncements will have a material impact on its consolidated financial statements. (i) Financial instruments and fair value measurements (i) Fair values: Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on measurement date. The Company classifies assets and liabilities recorded at fair value under the fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. The fair value measurements are classified under the following hierarchy: Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets; Level 2—Observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities; and Level 3—Unobservable inputs that are supported by little or no market activity that are significant to the fair value of assets or liabilities. Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 2. Summary of significant accounting policies (Continued): (i) Financial instruments and fair value measurements: (Continued) When available, we use quoted market prices to determine fair value, and we classify such measurements within Level 1. In some cases where market prices are not available, we make use of observable market-based inputs to calculate fair value, in which case the measurements are classified within Level 2. If quoted or observable market prices are not available, fair value is based upon valuations in which one or more significant inputs are unobservable, including internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates. These measurements are classified within Level 3. Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. A measurement may therefore be classified within Level 3 even though there may be significant inputs that are readily observable. Fair value measurement includes the consideration of nonperformance risk. Nonperformance risk refers to the risk that an obligation (either by a counterparty) will not be fulfilled. For financial assets traded in an active market (Level 1 and certain Level 2), the nonperformance risk is included in the market price. For certain other financial assets and liabilities (certain Level 2 and Level 3), our fair value calculations have been adjusted accordingly. The fair value of accounts receivable, accounts payable, accrued liabilities, and accounts payable and accrued liabilities - related party approximate their financial statement carrying amounts due to the short-term maturities of these instruments and are therefore carried at their historical cost basis. The government CEBA loan is classified as a financial liability and its fair value was determined using the effective interest rate method, and is carried at amortized cost. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset. The Company’s cash and long-term cash equivalents were measured using Level 1 inputs. Stock-based compensation and derivative liability – warrants were measured using Level 2 inputs. Goodwill impairment was measured using Level 3 inputs. (ii) Foreign currency risk: The Company operates internationally, which gives rise to the risk that cash flows may be adversely impacted by exchange rate fluctuations. The Company has not entered into any forward exchange contracts or other derivative instrument to hedge against foreign exchange risk. |
Accounts receivable
Accounts receivable | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Accounts receivable | 3. Accounts receivable Schedule of Accounts, Notes, Loans and Financing Receivable September 30, 2022 December 31, 2021 Accounts receivable $ 4,275,123 $ 6,684,469 Expected credit losses (53,068 ) (56,605 ) Net accounts receivable $ 4,222,055 $ 6,627,864 The Company had bank accounts with the National Bank of Anguilla. During the year ended December 31, 2016, the National Bank of Anguilla filed for chapter 11 protection. The Company expensed the balance on account of $ 27,666 25,402 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) |
Equipment
Equipment | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Equipment | 4. Equipment Schedule of Property, Plant and Equipment September 30, 2022 Cost Accumulated depreciation Net book Equipment and computers $ 165,958 $ 145,458 $ 20,500 Furniture and fixtures 16,517 10,219 6,298 Total $ 182,475 $ 155,677 $ 26,798 December 31, 2021 Cost Accumulated depreciation Net book Equipment and computers $ 152,967 $ 139,590 $ 13,377 Furniture and fixtures 16,517 9,371 7,146 Total $ 169,484 $ 148,961 $ 20,523 Depreciation expense was $ 2,323 2,308 |
Intangible assets
Intangible assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | 5. Intangible assets Schedule of Finite-Lived Intangible Assets September 30, 2022 Cost Accumulated depreciation Net book Ad Tech technology $ 1,877,415 $ 1,345,481 $ 531,934 Kidoz OS technology 31,006 31,006 - Customer relationship 1,362,035 610,078 751,957 Total $ 3,270,456 $ 1,850,130 $ 1,283,891 December 31, 2021 Cost Accumulated amortization Net book Ad Tech technology $ 1,877,415 $ 1,063,869 $ 813,546 Kidoz OS technology 31,006 29,283 1,723 Customer relationship 1,362,035 482,387 879,648 Total $ 3,270,456 $ 1,575,539 $ 1,694,917 Amortization expense was $ 136,434 139,018 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill | |
Goodwill | 6. Goodwill The changes in the carrying amount of goodwill for the period ended September 30, 2022, and the year ended December 31, 2021 were as follows: Schedule of Goodwill September 30, 2022 December 31, 2021 Goodwill, balance at beginning of period $ 3,301,439 $ 3,301,439 Impairment of goodwill - - Goodwill, balance at end of period $ 3,301,439 $ 3,301,439 The Company’s annual goodwill impairment analysis performed during the fourth quarter of fiscal 2021 included a quantitative analysis of Kidoz Ltd. reporting unit (consisting of intangible assets (Note 5), deferred tax liability and goodwill). The reporting unit has a carrying amount of $ 4,374,831 4,785,857 |
Content and software developmen
Content and software development assets | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Content and software development assets | 7. Content and software development assets Since the year ended December 31, 2014, the Company has been developing software technology and content for our business. This software technology and content includes the continued development of the KIDOZ Safe Ad Network, the KIDOZ Kid-Mode Operating System, and the KIDOZ publisher SDK, development of Trophy Bingo, a social bingo game, the license, the development of the Rooplay platform and the development of the Rooplay Originals games. During the period ended September 30, 2022, the Company has expensed the development costs of all its technology as incurred and has expensed the following software development costs. Expense of Development Costs Nine Months ended Nine Months ended Three Months ended Three Months ended Opening total software development costs $ 10,559,601 $ 8,880,753 $ 11,720,294 $ 9,584,092 Software development during the period 1,773,889 1,180,898 613,196 477,559 Closing total Software development costs $ 12,333,490 $ 10,061,651 $ 12,333,490 $ 10,061,651 |
Government CEBA loan
Government CEBA loan | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Government CEBA loan | 8. Government CEBA loan During the year ended December 31, 2020, the Company was granted a loan of $ 43,668 60,000 14,556 20,000 29,112 40,000 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 8. Government CEBA loan: (Continued) If the loan cannot be repaid by December 31, 2023, it can be converted into a 2 year term loan charging an interest rate of 5%. During the quarter ended March 31, 2021, the Company drew $ 200,000 987 |
Stockholders_ equity
Stockholders’ equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Stockholders’ equity | 9. Stockholders’ equity The holders of common stock are entitled to one vote for each share held. There are no restrictions that limit the Company’s ability to pay dividends on its common stock. The Company has not declared any dividends since incorporation. The Company’s common stock has no par value per common stock. (a) Common stock issuances: During the quarter ended June 30, 2021, the Company engaged with Agora Internet Relations Corp. for an online marketing campaign on the AGORACOM platform. The agreement was for 12 months for a fee of $ 79,705 100,000 156,510 During the quarter ended June 30, 2021, the Company engaged Research Capital Corporation (“RCC”) as a financial and capital markets advisor. As part of the compensation for its services, RCC will receive a monthly fee of $ 5,200 6,500 230,000 179,293 230,000 0.77 0.98 24 months During the quarter ended June 30, 2021, the holder of 70,000 70,000 31,264 0.45 0.54 During the quarter ended September 30, 2022, the Company filed a Notice of Intention to Make a Normal Course Issuer Bid (the “Notice of Intention”) with the TSX-V on September 15, 2022. Upon receiving approval from the TSX-V, effective September 16, 2022, the Company commenced a normal course issuer bid (“NCIB”), whereby the Company may purchase for cancellation up to 6,579,074 Purchases under the NCIB may commence as of September 16, 2022, and will end on the earlier of: (i) September 14, 2023; or (ii) the date on which the Company has purchased the maximum number of shares to be acquired under the NCIB. The Company may terminate the NCIB earlier if it feels it is appropriate to do so. Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 9. Stockholders’ equity: (Continued) (a) Common stock issuances: (continued) The normal course issuer bid will be conducted through Kidoz Inc’s broker Research Capital Corporation. The purchase and payment of the Common Shares will be made in accordance with the requirements of the TSX-V and applicable securities laws. The actual number of Common Shares purchased, timing of purchases and share price will depend upon market conditions at the time and securities law requirements. All Common Shares acquired will be returned to treasury and cancelled. The purchase of and payment for the shares will be made in accordance with the requirements of the TSX-V and applicable securities laws. The actual number of shares purchased, timing of purchases and share price will depend upon market conditions at the time and securities law requirements. All shares acquired pursuant to the NCIB will be returned to treasury and cancelled. Subsequent to the quarter ended September 30, 2022, 45,000 (b) Warrants A summary of warrant activity for the quarter ended September 30, 2022 are as follows: Schedule of Share- based Payment Arrangement, Warrant Activity Number of warrants Exercise price Expiry date Outstanding, December 31, 2020 - $ - Granted 230,000 CAD$ 0.98 April 3, 2023 Outstanding December 31, 2021 230,000 CAD$ 0.98 Granted - - - Outstanding September 30, 2022 230,000 CAD$ 0.98 A fair value of the derivative liability of $ 83,572 83,555 60,207 17 Schedule of Fair Value of Warrants Assumptions September 30, 2022 September 30, 2021 Exercise price CAD$ 0.98 CAD$ 0.98 Stock price CAD$ 0.405 CAD$ 0.65 Expected term 0.5 1.5 Expected dividend yield - - Expected stock price volatility 55.09 % 90.87 % Risk-free interest rate 3.44 % 0.98 % Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 9. Stockholders’ equity: (Continued) (c) Stock option plans: 2015 stock option plan In the year ended December 31, 2015, the shareholders approved the 2015 stock option plan and the 1999, 2001 and the 2005 plans were discontinued. The 2015 stock option plan is intended to provide incentive to employees, directors, advisors and consultants of the Company to encourage proprietary interest in the Company, to encourage such employees to remain in the employ of the Company or such directors, advisors and consultants to remain in the service of the Company, and to attract new employees, directors, advisors and consultants with outstanding qualifications. The maximum number of shares issuable under the Plan shall not exceed 10% of the number of Shares of the Company issued and outstanding as of each Award Date unless shareholder approval is obtained in advance. The Board of Directors determines the terms of the options granted, including the number of options granted, the exercise price and their vesting schedule. The maximum term possible is 10 years. Under the amended 2015 plan we have reserved 10% of the number of Shares of the Company issued and outstanding as of each Award Date. During the quarter ended March 31, 2022, the Company granted 2,550,000 0.50 0.40 During the quarter ended September 30, 2021, the Company granted 300,000 0.66 0.52 1,300,000 1.02 0.80 1,075,000 0.50 0.39 Schedule of Share-based Payment Arrangement, Option, Activity Number of Weighted average Outstanding December 31, 2020 5,875,750 $ 0.39 Granted 2,675,000 0.60 Exercised (70,000 ) (0.45 ) Expired (570,000 ) (0.43 ) Cancelled (1,040,600 ) (0.42 ) Outstanding, December 31, 2021 6,870,150 $ 0.48 Granted 2,550,000 0.40 Cancelled (285,000 ) (0.47 ) Outstanding September 30, 2022 9,135,150 $ 0.43 The aggregate intrinsic value for options as of September 30, 2022 was $ nil 334,897 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 9. Stockholders’ equity: (Continued) (c) Stock option plans: The following table summarizes information concerning outstanding and exercisable stock options at September 30, 2022: Schedule of Share-based Payment Arrangement, Option, Exercise Price Range Exercise Number outstanding Number exercisable Expiry date CAD$ 0.45 2,030,400 776,736 June 30, 2025 CAD$ 0.50 859,600 375,800 February 1, 2026 CAD$ 0.50 2,445,000 391,200 February 1, 2027 CAD$ 0.54 506,150 506,150 November 8, 2022 CAD$ 0.54 713,000 713,000 June 4, 2023 CAD$ 0.66 200,000 56,000 July 12, 2026 US$ 0.50 1,275,000 1,275,000 June 4, 2023 CAD$ 1.02 1,106,000 380,000 April 6, 2026 9,135,150 4,473,886 During the quarter ended September 30, 2022, the Company recorded stock-based compensation of $ 181,129 178,763 0.31 0.36 Subsequent to the quarter ended September 30, 2022, 506,150 0.54 |
Fair value measurement
Fair value measurement | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement | 10. Fair value measurement The following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy. Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis Level 1 Level 2 Level 3 Total As at September 30, 2022 Assets Cash $ 1,830,262 $ - $ - $ 1,830,262 Long term cash equivalent 21,994 - - 21,994 Liabilities Derivative liability – warrants - (17 ) (17 ) Total net assets measured and recorded at fair value $ 1,852,256 $ (17 ) $ - $ 1,852,239 Level 1 Level 2 Level 3 Total As at December 31, 2021 Assets Cash $ 2,078,607 $ - $ - $ 2,078,607 Long term cash equivalent 23,624 - - 23,624 Cash and cash equivalents 23,624 - - 23,624 Liabilities Derivative liability – warrants - (23,365 ) - (23,365 ) Total assets measured and recorded at fair value $ 2,102,231 $ (23,365 ) $ - $ 2,078,866 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | 11. Commitments The Company leases office facilities in Vancouver, British Columbia, Canada, The Valley, Anguilla, British West Indies and Netanya, Israel. These office facilities are leased under operating lease agreements. During the quarter ended March 31, 2019, the Company signed a five year lease for a facility in Vancouver, Canada, commencing April 1, 2019 and ending March 2024. This facility comprises approximately 1,459 The Netanya, Israel operating lease expired on July 14, 2017 but unless 3 month’s notice is given it automatically renews for a future 12 months until notice is given. During the quarter ended September 30, 2022, the lease was extended for a further 12 months. This facility comprises approximately 190 The Anguillan operating lease expired on April 1, 2011 but unless 3 month’s notice is given it automatically renews for a further 3 months. The Company expects this lease to continue, therefore the Company will account for the lease in accordance with ASU 2016-02 (Topic 842) and will recognize a right-of-use asset and operating lease liability. The minimum lease payments under these operating leases are approximately as follows: Schedule of Lessee, Operating Lease, Liability, Maturity 2022 $ 22,298 2023 69,384 2024 11,620 The Company paid rent expense totaling $ 30,653 32,516 The Company has the following management consulting agreements with related parties. Schedule of Consulting Agreement with Related Parties Company Person Role Annual amount T.M. Williams (ROW), Inc. T. M. Williams Chairman $ 160,000 Bromley Accounting Services Ltd. H. W. Bromley CFO CAD$ 215,000 Farcast Operations Inc. T. H. Williams VP Product CAD$ 240,000 During the quarter ended June 30, 2022, Mr. J. M. Williams, the Company’s CEO, became an employee of Shoal Media (Canada) Inc. As at September 30, 2022, the Company had a number of renewable license commitments with large brands, including, Mr. Men and Little Miss and Mr. Bean. These agreements have commitments to pay royalties on the revenue from the licenses subject to the minimum guarantee payments. As at September 30, 2022, there were no further minimum guarantee payments commitments. Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 11. Commitments: (Continued) The Company expensed the minimum guarantee payments over the life of the agreement and recognized license expense of $ 3,363 1,683 19,716 13,247 |
Right-of-use assets and lease l
Right-of-use assets and lease liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Right-of-use Assets And Lease Liabilities | |
Right-of-use assets and lease liabilities | 12. Right-of-use assets and lease liabilities There is no discount rate implicit in the Anguilla office operating lease agreement, so the Company estimated a 5 12 Effective April 1, 2019, we recognized lease assets and liabilities of $ 125,474 4.12 We elected to not separate lease and non-lease components for all of our leases. For leases with a term of 12 months or less, our current offices, we elected the short-term lease exemption, which allowed us to not recognize right-of-use assets or lease liabilities for qualifying leases existing at transition and new leases we may enter into in the future, as there is significant uncertainty on whether the leases will be renewed. The right-of-use assets are summarized as follows: Schedule of Right-of-use Assets September 30, 2022 December 31, 2021 Opening balance for the period $ 65,464 $ 106,315 Amortization of operating lease right-of use assets (21,758 ) (40,851 ) Closing balance for the period $ 43,706 $ 65,464 The operating lease as at September 30, 2022, is summarized as follows: Lessee, Operating Lease, Liability, Maturity As at September 30, 2022 Operating lease- 2022 $ 7,984 2023 32,732 2024 7,499 Total lease payments $ 48,215 Less: Interest (1,704 ) Present value of lease liabilities $ 46,511 Amounts recognized on the balance sheet Current lease liabilities $ 31,112 Long-term lease liabilities 15,399 Total lease payments $ 46,511 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 12. Right-of-use assets and lease liabilities: (Continued) Schedule of Operating Lease Liability September 30, 2022 December 31, 2021 Opening balance for the period $ 74,067 $ 103,918 Payments on operating lease liabilities (27,556 ) (29,851 ) Closing balance for the period 46,511 74,067 Less: current portion (31,112 ) (32,068 ) Operating lease liabilities – non-current portion as at end of period $ 15,399 $ 41,999 |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related party transactions | 13. Related party transactions For the period ended September 30, 2022, the Company has the following related party transactions: Schedule of Related Party Transactions Nine Months ended Nine Months ended Three Months ended Three Months ended Directors fees $ 5,998 $ 6,022 $ 2,000 $ 2,022 Salaries, wages, consultants and benefits 537,502 473,492 159,498 127,092 Selling and marketing 97,431 56,136 32,534 17,730 Stock-based compensation (Note 9) 208,435 170,297 71,080 61,682 Content and software development (Note 7) 187,114 161,628 62,849 54,801 Related party transaction $ 1,036,480 $ 867,575 $ 327,961 $ 263,327 The Company has liabilities of $ 98,455 53,829 During the quarter ended March 31, 2022, the Company granted 900,000 0.50 0.39 During the quarter ended March 31, 2021, the Company granted 400,000 0.50 0.39 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) |
Segmented information
Segmented information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segmented information | 14. Segmented information Revenue The Company operates in reportable business segments, the sale of Ad tech advertising and content revenue. The Company had the following revenue by geographical region. Schedule of Revenue By Geographical Region Nine Months ended Nine Months ended Three Months ended Three Months ended Ad tech advertising revenue Western Europe $ 2,802,750 $ 1,345,358 $ 1,198,642 $ 686,877 Central, Eastern and Southern Europe 205,048 - 71,871 - North America 4,124,452 4,833,815 1,923,659 2,013,708 Other 985,684 205,135 260,652 58,923 Total ad tech advertising revenue $ 8,117,934 $ 6,384,308 $ 3,454,824 $ 2,759,508 Content revenue Western Europe $ 58,958 $ 64,683 $ 19,622 $ 20,679 Central, Eastern and Southern Europe 373 1,226 69 271 North America 33,884 54,882 3,282 25,339 Other 92,250 44,990 28,015 8,845 Total content revenue $ 185,465 $ 165,781 $ 50,988 $ 55,134 Total revenue Western Europe $ 2,861,708 $ 1,410,041 $ 1,218,264 $ 707,556 Central, Eastern and Southern Europe 205,421 1,226 71,940 271 North America 4,158,336 4,888,697 1,926,941 2,039,047 Other 1,077,934 250,125 288,667 67,768 Total revenue $ 8,303,399 $ 6,550,089 $ 3,505,812 $ 2,814,642 Equipment The Company’s equipment is located as follows: Schedule of Company Equipment Net Book Value September 30, 2022 December 31, 2021 Anguilla $ 68 $ 91 Canada 11,336 8,542 Israel 10,243 11,055 United Kingdom 5,151 835 Total $ 26,798 $ 20,523 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentrations | 15. Concentrations Major customers During the quarter ended September 30, 2022 and 2021, the Company sold Ad tech revenue and content revenue including subscriptions on its site Rooplay, in-app purchases on its social bingo sites, Trophy Bingo and Garfield’s Bingo and Rooplay Originals. During the quarter ended September 30, 2022, the Company had three Ad tech customers: $ 1,193,616 609,676 479,670 1,033,971 586,043 |
Concentrations of credit risk
Concentrations of credit risk | 9 Months Ended |
Sep. 30, 2022 | |
Concentrations Of Credit Risk | |
Concentrations of credit risk | 16. Concentrations of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company places its cash with high quality financial institutions and limits the amount of credit exposure with any one institution. The Company currently maintains a substantial portion of its day-to-day operating cash balances at financial institutions. At September 30, 2022, the Company had total cash and cash equivalents balances of $ 1,852,256 2,102,231 1,543,735 1,793,265 The Company has concentrations of credit risk with respect to accounts receivable, the majority of its account’s receivable are concentrated geographically in the United States amongst a small number of customers. As of September 30, 2022, the Company had three customers, totaling $ 1,750,244 609,676 479,670 1,952,040 1,165,807 1,054,625 The Company controls credit risk through monitoring procedures and receiving prepayments of cash for services rendered. The Company performs credit evaluations of its customers but generally does not require collateral to secure accounts receivable. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation These unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) applicable to annual financial information and with the rules and regulations of the United States Securities and Exchange Commission. The financial statements include the accounts of the Company’s subsidiaries: Schedule of Consolidation, Wholly Owned and Less than Wholly Owned Subsidiary, Parent Ownership Interest Company Registered % Owned Shoal Media (Canada) Inc. British Columbia, Canada 100 % Coral Reef Marketing Inc. Anguilla 100 % Kidoz Ltd. Israel 100 % Prado Media Ltd. British Columbia, Canada 100 % Rooplay Media Kenya Limited Kenya 100 % Shoal Media Inc. Anguilla 100 % Shoal Games (UK) Plc United Kingdom 99 % Shoal Media (UK) Ltd. United Kingdom 100 % During the quarter ended September 30, 2022, Rooplay Media Ltd. was renamed Prado Media Ltd., a company focused on advertising to parents and teens. In addition, there are the following dormant subsidiaries: Bingo.com (Antigua) Inc., Bingo.com (Wyoming) Inc., and Bingo Acquisition Corp. All inter-company balances and transactions have been eliminated in the unaudited interim consolidated financial statements. |
Use of estimates | (b) Use of estimates The preparation of unaudited interim consolidated financial statements in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and recognized revenues and expenses for the reporting periods. Significant areas requiring the use of estimates include the collectability of accounts receivable, the valuation of stock-based compensation, the valuation of deferred tax assets and liabilities, the useful lives of intangible assets, and the derivative liability – warrants valuation. Actual results may differ significantly from these estimates. |
Revenue recognition | (c) Revenue recognition In accordance with ASC 606, Revenue from Contracts with Customers, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services. We derive substantially all of our revenue from the sale of Ad tech advertising revenue. Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 2. Summary of significant accounting policies (Continued): (c) Revenue recognition: (Continued) To achieve this core principle, the Company applied the following five steps: 1) Identify the contract with a customer A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the services to be transferred, whose impression count will form the basis of the revenue and identifies the payment terms related to these services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services, the Company must apply judgment to determine whether promised services are capable of being distinct and distinct in the context of the contract. If these criteria are not met the promised services are accounted for as a combined performance obligation. 3) Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services to the customer. None of the Company’s contracts contain financing or variable consideration components. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 2. Summary of significant accounting policies (Continued): (c) Revenue recognition: (Continued) 5) Recognize revenue when or as the Company satisfies a performance obligation The Company satisfies performance obligations at a point in time as discussed in further detail under “Disaggregation of Revenue” below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised service to a customer. Disaggregation of Revenue All of the Company’s performance obligations, and associated revenue, are generally transferred to customers at a point in time. The Company has the following revenue streams: 1) Ad tech advertising revenue - The Company generally offers these services under a customer contract Cost-per-Impression (CPM), Cost-Per-Install or CPI arrangements, Cost per completed video view or CPC and/or Cost-Per-Action or CPA arrangements with third-party advertisers and developers, as well as advertising aggregators, generally in the form of insertion orders that specify the type of arrangement (as detailed above) at particular set budget amounts/restraints. These advertiser customer contracts are generally short term in nature at less than one year as the budget amounts are typically spent in full within this time period. These agreements typically include the delivery of Ad tech advertising through partner networks, defined as publishers / developers, to home screens of devices and agree on whose results will be relied on from a revenue point of view. The Company has concluded that the delivery of the Ad tech advertising is delivered at a point in time and, as such, has concluded these deliveries are a single performance obligation. The Company invoices fees which are generally variable based on the arrangement, which would typically include the number of impressions delivered at a specified price per application. For impressions delivered, revenue is recognized in the month in which the Company delivers the application to the end consumer or the month when the campaign ends. 2) Content revenue – The Company recognizes content revenue on the following forms of revenue: a) Carriers and OEMs - The Company generally offers these services under a customer contract per tablet device license fee model with OEMs. Monthly or quarterly license fees are based on the OEM agreement with the number of devices the Kidoz Kid Mode is installed upon. Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 2. Summary of significant accounting policies (Continued): (c) Revenue recognition: (Continued) b) The Company generates revenue through subscriptions or premium sales of Rooplay, (www.rooplay.com) the cloud-based EduGame system for kids to learn and play within its games on smartphones and tablet devices, such as Apple’s iPhone and iPad, and mobile devices utilizing Google’s Android operating system. Users can download the Company’s games through Digital Storefronts and decide to subscribe to the multiple of educational and fun games in the Rooplay, cloud-based EduGame system or make a premium per purchase of particular games. The revenue is recognized net of platform fees. c) Rooplay licensing - The Company licenses its branded educational games under a monthly cost per game agreement license fee model. Monthly license fees are based on the number of games licensed. d) In App purchases - The Company generates revenue through in-application purchases (“in-app purchases”) within its games; (i.e. Trophy Bingo (www.trophybingo.com)) on smartphones and tablet devices, such as Apple’s iPhone and iPad, and mobile devices utilizing Google’s Android operating system. Users can download the Company’s free-to-play games through Android, Amazon, iOS and Facebook Messenger (this was discontinued in fiscal 2021) and pay to acquire virtual currency which can be redeemed in the game for power plays. The initial download of the mobile game from the Digital Storefront does not create a contract under ASC 606 because of the lack of commercial substance; however, the separate election by the player to make an in-application purchase satisfies the criterion thus creating a contract under ASC 606. The Company has identified the following performance obligations in these contracts: i. Ongoing game related services such as hosting of game play, storage of customer content, when and if available content updates, maintaining the virtual currency management engine, tracking gameplay statistics, matchmaking as it relates to multiple player gameplay, etc. ii. Obligation to the paying player to continue displaying and providing access to the virtual items within the game. Neither of these obligations are considered distinct since the actual mobile game and the related ongoing services are both required to purchase and benefit from the related virtual items. As such, the Company’s performance obligations represent a single combined performance obligation which is to make the game and the ongoing game related services available to the players. The revenue is recognized net of platform fees. |
Software development costs | (d) Software development costs The Company expensed all software development costs as incurred for the period ended September 30, 2022 and 2021. As at September 30, 2022 and December 31, 2021, all capitalized software development costs have been fully amortized and the Company has no capitalized software development costs. Total software development costs were $ 12,333,490 10,559,601 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 2. Summary of significant accounting policies (Continued): |
Derivative liability – warrants | (e) Derivative liability – warrants The Company’s warrants have an exercise price in Canadian dollars whilst the Company’s functional currency is US Dollars. Therefore, in accordance with ASU 815 – Derivatives and Hedging, the warrants have a derivative liability value. This liability value has no effect on the cashflow of the Company and does not represent a cash payment of any kind. |
Impairment of long-lived assets and long-lived assets to be disposed of | (f) Impairment of long-lived assets and long-lived assets to be disposed of If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell. Intangible assets are recorded at cost less accumulated amortization. Amortization is provided for annually on the straight-line method over the following periods: Schedule of Finite-Lived Intangible Assets, Amortization Period Amortization period Ad Tech technology 5 Kidoz OS technology 3 Customer relationship 8 |
Goodwill | (g) Goodwill The Company accounts for goodwill in accordance with the provisions of ASC 350, Intangibles-Goodwill and Others. Goodwill is the excess of the purchase price over the fair value of identifiable assets acquired, less liabilities assumed, in a business combination. The Company reviews goodwill for impairment. Goodwill is not amortized but is evaluated for impairment at least annually or whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount may not be recoverable. The goodwill impairment test is used to identify both the existence of impairment and the amount of impairment loss, and compares the fair value of a reporting unit with its carrying amount and is based on discounted future cash flows, based on market multiples applied to free cash flow. The determination of the fair value of our reporting units requires management to make significant estimates and assumptions including the selection of control premiums, discount rates, terminal growth rates, forecasts of revenue and expense growth rates, income tax rates, changes in working capital, depreciation, amortization and capital expenditures. Changes in assumptions concerning future financial results, exogenous market conditions, or other underlying assumptions could have a significant impact on either the fair value of the reporting unit or the amount of the goodwill impairment charge. If the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. During the year ended December 31, 2021, the Company determined there was no Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 2. Summary of significant accounting policies (Continued): |
New accounting pronouncements and changes in accounting policy | (h) New accounting pronouncements and changes in accounting policy The Company has evaluated all of the recently issued, but not yet effective, accounting standards that have been issued or proposed by the Financial Accounting Standards Board or other standards-setting bodies through the filing date of these unaudited consolidated financial statements and does not believe the future adoption of any such pronouncements will have a material impact on its consolidated financial statements. |
Financial instruments and fair value measurements | (i) Financial instruments and fair value measurements (i) Fair values: Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on measurement date. The Company classifies assets and liabilities recorded at fair value under the fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. The fair value measurements are classified under the following hierarchy: Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets; Level 2—Observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities; and Level 3—Unobservable inputs that are supported by little or no market activity that are significant to the fair value of assets or liabilities. Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Consolidated Financial Statements Nine Months ended September 30, 2022 and 2021 (Unaudited) 2. Summary of significant accounting policies (Continued): (i) Financial instruments and fair value measurements: (Continued) When available, we use quoted market prices to determine fair value, and we classify such measurements within Level 1. In some cases where market prices are not available, we make use of observable market-based inputs to calculate fair value, in which case the measurements are classified within Level 2. If quoted or observable market prices are not available, fair value is based upon valuations in which one or more significant inputs are unobservable, including internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates. These measurements are classified within Level 3. Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. A measurement may therefore be classified within Level 3 even though there may be significant inputs that are readily observable. Fair value measurement includes the consideration of nonperformance risk. Nonperformance risk refers to the risk that an obligation (either by a counterparty) will not be fulfilled. For financial assets traded in an active market (Level 1 and certain Level 2), the nonperformance risk is included in the market price. For certain other financial assets and liabilities (certain Level 2 and Level 3), our fair value calculations have been adjusted accordingly. The fair value of accounts receivable, accounts payable, accrued liabilities, and accounts payable and accrued liabilities - related party approximate their financial statement carrying amounts due to the short-term maturities of these instruments and are therefore carried at their historical cost basis. The government CEBA loan is classified as a financial liability and its fair value was determined using the effective interest rate method, and is carried at amortized cost. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset. The Company’s cash and long-term cash equivalents were measured using Level 1 inputs. Stock-based compensation and derivative liability – warrants were measured using Level 2 inputs. Goodwill impairment was measured using Level 3 inputs. (ii) Foreign currency risk: The Company operates internationally, which gives rise to the risk that cash flows may be adversely impacted by exchange rate fluctuations. The Company has not entered into any forward exchange contracts or other derivative instrument to hedge against foreign exchange risk. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Consolidation, Wholly Owned and Less than Wholly Owned Subsidiary, Parent Ownership Interest | Schedule of Consolidation, Wholly Owned and Less than Wholly Owned Subsidiary, Parent Ownership Interest Company Registered % Owned Shoal Media (Canada) Inc. British Columbia, Canada 100 % Coral Reef Marketing Inc. Anguilla 100 % Kidoz Ltd. Israel 100 % Prado Media Ltd. British Columbia, Canada 100 % Rooplay Media Kenya Limited Kenya 100 % Shoal Media Inc. Anguilla 100 % Shoal Games (UK) Plc United Kingdom 99 % Shoal Media (UK) Ltd. United Kingdom 100 % |
Schedule of Finite-Lived Intangible Assets, Amortization Period | Intangible assets are recorded at cost less accumulated amortization. Amortization is provided for annually on the straight-line method over the following periods: Schedule of Finite-Lived Intangible Assets, Amortization Period Amortization period Ad Tech technology 5 Kidoz OS technology 3 Customer relationship 8 |
Accounts receivable (Tables)
Accounts receivable (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Schedule of Accounts, Notes, Loans and Financing Receivable September 30, 2022 December 31, 2021 Accounts receivable $ 4,275,123 $ 6,684,469 Expected credit losses (53,068 ) (56,605 ) Net accounts receivable $ 4,222,055 $ 6,627,864 |
Equipment (Tables)
Equipment (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Schedule of Property, Plant and Equipment September 30, 2022 Cost Accumulated depreciation Net book Equipment and computers $ 165,958 $ 145,458 $ 20,500 Furniture and fixtures 16,517 10,219 6,298 Total $ 182,475 $ 155,677 $ 26,798 December 31, 2021 Cost Accumulated depreciation Net book Equipment and computers $ 152,967 $ 139,590 $ 13,377 Furniture and fixtures 16,517 9,371 7,146 Total $ 169,484 $ 148,961 $ 20,523 |
Intangible assets (Tables)
Intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Schedule of Finite-Lived Intangible Assets September 30, 2022 Cost Accumulated depreciation Net book Ad Tech technology $ 1,877,415 $ 1,345,481 $ 531,934 Kidoz OS technology 31,006 31,006 - Customer relationship 1,362,035 610,078 751,957 Total $ 3,270,456 $ 1,850,130 $ 1,283,891 December 31, 2021 Cost Accumulated amortization Net book Ad Tech technology $ 1,877,415 $ 1,063,869 $ 813,546 Kidoz OS technology 31,006 29,283 1,723 Customer relationship 1,362,035 482,387 879,648 Total $ 3,270,456 $ 1,575,539 $ 1,694,917 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the period ended September 30, 2022, and the year ended December 31, 2021 were as follows: Schedule of Goodwill September 30, 2022 December 31, 2021 Goodwill, balance at beginning of period $ 3,301,439 $ 3,301,439 Impairment of goodwill - - Goodwill, balance at end of period $ 3,301,439 $ 3,301,439 |
Content and software developm_2
Content and software development assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Expense of Development Costs | During the period ended September 30, 2022, the Company has expensed the development costs of all its technology as incurred and has expensed the following software development costs. Expense of Development Costs Nine Months ended Nine Months ended Three Months ended Three Months ended Opening total software development costs $ 10,559,601 $ 8,880,753 $ 11,720,294 $ 9,584,092 Software development during the period 1,773,889 1,180,898 613,196 477,559 Closing total Software development costs $ 12,333,490 $ 10,061,651 $ 12,333,490 $ 10,061,651 |
Stockholders_ equity (Tables)
Stockholders’ equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Share- based Payment Arrangement, Warrant Activity | A summary of warrant activity for the quarter ended September 30, 2022 are as follows: Schedule of Share- based Payment Arrangement, Warrant Activity Number of warrants Exercise price Expiry date Outstanding, December 31, 2020 - $ - Granted 230,000 CAD$ 0.98 April 3, 2023 Outstanding December 31, 2021 230,000 CAD$ 0.98 Granted - - - Outstanding September 30, 2022 230,000 CAD$ 0.98 |
Schedule of Fair Value of Warrants Assumptions | Schedule of Fair Value of Warrants Assumptions September 30, 2022 September 30, 2021 Exercise price CAD$ 0.98 CAD$ 0.98 Stock price CAD$ 0.405 CAD$ 0.65 Expected term 0.5 1.5 Expected dividend yield - - Expected stock price volatility 55.09 % 90.87 % Risk-free interest rate 3.44 % 0.98 % |
Schedule of Share-based Payment Arrangement, Option, Activity | Schedule of Share-based Payment Arrangement, Option, Activity Number of Weighted average Outstanding December 31, 2020 5,875,750 $ 0.39 Granted 2,675,000 0.60 Exercised (70,000 ) (0.45 ) Expired (570,000 ) (0.43 ) Cancelled (1,040,600 ) (0.42 ) Outstanding, December 31, 2021 6,870,150 $ 0.48 Granted 2,550,000 0.40 Cancelled (285,000 ) (0.47 ) Outstanding September 30, 2022 9,135,150 $ 0.43 |
Schedule of Share-based Payment Arrangement, Option, Exercise Price Range | The following table summarizes information concerning outstanding and exercisable stock options at September 30, 2022: Schedule of Share-based Payment Arrangement, Option, Exercise Price Range Exercise Number outstanding Number exercisable Expiry date CAD$ 0.45 2,030,400 776,736 June 30, 2025 CAD$ 0.50 859,600 375,800 February 1, 2026 CAD$ 0.50 2,445,000 391,200 February 1, 2027 CAD$ 0.54 506,150 506,150 November 8, 2022 CAD$ 0.54 713,000 713,000 June 4, 2023 CAD$ 0.66 200,000 56,000 July 12, 2026 US$ 0.50 1,275,000 1,275,000 June 4, 2023 CAD$ 1.02 1,106,000 380,000 April 6, 2026 9,135,150 4,473,886 |
Fair value measurement (Tables)
Fair value measurement (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy. Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis Level 1 Level 2 Level 3 Total As at September 30, 2022 Assets Cash $ 1,830,262 $ - $ - $ 1,830,262 Long term cash equivalent 21,994 - - 21,994 Liabilities Derivative liability – warrants - (17 ) (17 ) Total net assets measured and recorded at fair value $ 1,852,256 $ (17 ) $ - $ 1,852,239 Level 1 Level 2 Level 3 Total As at December 31, 2021 Assets Cash $ 2,078,607 $ - $ - $ 2,078,607 Long term cash equivalent 23,624 - - 23,624 Cash and cash equivalents 23,624 - - 23,624 Liabilities Derivative liability – warrants - (23,365 ) - (23,365 ) Total assets measured and recorded at fair value $ 2,102,231 $ (23,365 ) $ - $ 2,078,866 |
Commitments (Tables)
Commitments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lessee, Operating Lease, Liability, Maturity | The minimum lease payments under these operating leases are approximately as follows: Schedule of Lessee, Operating Lease, Liability, Maturity 2022 $ 22,298 2023 69,384 2024 11,620 |
Schedule of Consulting Agreement with Related Parties | The Company has the following management consulting agreements with related parties. Schedule of Consulting Agreement with Related Parties Company Person Role Annual amount T.M. Williams (ROW), Inc. T. M. Williams Chairman $ 160,000 Bromley Accounting Services Ltd. H. W. Bromley CFO CAD$ 215,000 Farcast Operations Inc. T. H. Williams VP Product CAD$ 240,000 |
Right-of-use assets and lease_2
Right-of-use assets and lease liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Lessee, Lease, Description [Line Items] | |
Schedule of Right-of-use Assets | The right-of-use assets are summarized as follows: Schedule of Right-of-use Assets September 30, 2022 December 31, 2021 Opening balance for the period $ 65,464 $ 106,315 Amortization of operating lease right-of use assets (21,758 ) (40,851 ) Closing balance for the period $ 43,706 $ 65,464 |
Lessee, Operating Lease, Liability, Maturity | The minimum lease payments under these operating leases are approximately as follows: Schedule of Lessee, Operating Lease, Liability, Maturity 2022 $ 22,298 2023 69,384 2024 11,620 |
Schedule of Operating Lease Liability | Schedule of Operating Lease Liability September 30, 2022 December 31, 2021 Opening balance for the period $ 74,067 $ 103,918 Payments on operating lease liabilities (27,556 ) (29,851 ) Closing balance for the period 46,511 74,067 Less: current portion (31,112 ) (32,068 ) Operating lease liabilities – non-current portion as at end of period $ 15,399 $ 41,999 |
Operating Lease Office Lease [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Liability, Maturity | The operating lease as at September 30, 2022, is summarized as follows: Lessee, Operating Lease, Liability, Maturity As at September 30, 2022 Operating lease- 2022 $ 7,984 2023 32,732 2024 7,499 Total lease payments $ 48,215 Less: Interest (1,704 ) Present value of lease liabilities $ 46,511 Amounts recognized on the balance sheet Current lease liabilities $ 31,112 Long-term lease liabilities 15,399 Total lease payments $ 46,511 |
Related party transactions (Tab
Related party transactions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | For the period ended September 30, 2022, the Company has the following related party transactions: Schedule of Related Party Transactions Nine Months ended Nine Months ended Three Months ended Three Months ended Directors fees $ 5,998 $ 6,022 $ 2,000 $ 2,022 Salaries, wages, consultants and benefits 537,502 473,492 159,498 127,092 Selling and marketing 97,431 56,136 32,534 17,730 Stock-based compensation (Note 9) 208,435 170,297 71,080 61,682 Content and software development (Note 7) 187,114 161,628 62,849 54,801 Related party transaction $ 1,036,480 $ 867,575 $ 327,961 $ 263,327 |
Segmented information (Tables)
Segmented information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue By Geographical Region | The Company had the following revenue by geographical region. Schedule of Revenue By Geographical Region Nine Months ended Nine Months ended Three Months ended Three Months ended Ad tech advertising revenue Western Europe $ 2,802,750 $ 1,345,358 $ 1,198,642 $ 686,877 Central, Eastern and Southern Europe 205,048 - 71,871 - North America 4,124,452 4,833,815 1,923,659 2,013,708 Other 985,684 205,135 260,652 58,923 Total ad tech advertising revenue $ 8,117,934 $ 6,384,308 $ 3,454,824 $ 2,759,508 Content revenue Western Europe $ 58,958 $ 64,683 $ 19,622 $ 20,679 Central, Eastern and Southern Europe 373 1,226 69 271 North America 33,884 54,882 3,282 25,339 Other 92,250 44,990 28,015 8,845 Total content revenue $ 185,465 $ 165,781 $ 50,988 $ 55,134 Total revenue Western Europe $ 2,861,708 $ 1,410,041 $ 1,218,264 $ 707,556 Central, Eastern and Southern Europe 205,421 1,226 71,940 271 North America 4,158,336 4,888,697 1,926,941 2,039,047 Other 1,077,934 250,125 288,667 67,768 Total revenue $ 8,303,399 $ 6,550,089 $ 3,505,812 $ 2,814,642 |
Schedule of Company Equipment | The Company’s equipment is located as follows: Schedule of Company Equipment Net Book Value September 30, 2022 December 31, 2021 Anguilla $ 68 $ 91 Canada 11,336 8,542 Israel 10,243 11,055 United Kingdom 5,151 835 Total $ 26,798 $ 20,523 |
Schedule of Consolidation, Whol
Schedule of Consolidation, Wholly Owned and Less than Wholly Owned Subsidiary, Parent Ownership Interest (Details) | Sep. 30, 2022 |
Shoal Media (Canada) Inc. [Member] | |
Ownership percentage | 100% |
Coral Reef Marketing Inc. [Member] | |
Ownership percentage | 100% |
Kidoz Ltd [Member] | |
Ownership percentage | 100% |
Prado Media Ltd [Member] | |
Ownership percentage | 100% |
Rooplay Media Kenya Limited [Member] | |
Ownership percentage | 100% |
Shoal Media Inc. [Member] | |
Ownership percentage | 100% |
Shoal Games (UK) PLC [Member] | |
Ownership percentage | 99% |
Shoal Media (UK) Ltd. [Member] | |
Ownership percentage | 100% |
Schedule of Finite-Lived Intang
Schedule of Finite-Lived Intangible Assets, Amortization Period (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Ad Tech Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period (Year) | 5 years |
Kidoz OS Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period (Year) | 3 years |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period (Year) | 8 years |
Summary of significant accoun_4
Summary of significant accounting policies (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Software development cost | $ 12,333,490 | $ 10,559,601 |
Goodwill, impairment loss |
Schedule of Accounts, Notes, Lo
Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Accounts receivable | $ 4,275,123 | $ 6,684,469 |
Expected credit losses | (53,068) | (56,605) |
Net accounts receivable | $ 4,222,055 | $ 6,627,864 |
Accounts receivable (Details Na
Accounts receivable (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2016 | |
Receivables [Abstract] | ||
Accounts receivable | $ 25,402 | $ 27,666 |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 182,475 | $ 169,484 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 155,677 | 148,961 |
Property, Plant and Equipment, Net | 26,798 | 20,523 |
Equipment and Computers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 165,958 | 152,967 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 145,458 | 139,590 |
Property, Plant and Equipment, Net | 20,500 | 13,377 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 16,517 | 16,517 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 10,219 | 9,371 |
Property, Plant and Equipment, Net | $ 6,298 | $ 7,146 |
Equipment (Details Narrative)
Equipment (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 2,323 | $ 2,308 |
Schedule of Finite-Lived Inta_2
Schedule of Finite-Lived Intangible Assets (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 3,270,456 | $ 3,270,456 |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,850,130 | 1,575,539 |
Finite-Lived Intangible Assets, Net | 1,283,891 | 1,694,917 |
Ad Tech Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,877,415 | 1,877,415 |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,345,481 | 1,063,869 |
Finite-Lived Intangible Assets, Net | 531,934 | 813,546 |
Kidoz OS Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 31,006 | 31,006 |
Finite-Lived Intangible Assets, Accumulated Amortization | 31,006 | 29,283 |
Finite-Lived Intangible Assets, Net | 1,723 | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,362,035 | 1,362,035 |
Finite-Lived Intangible Assets, Accumulated Amortization | 610,078 | 482,387 |
Finite-Lived Intangible Assets, Net | $ 751,957 | $ 879,648 |
Intangible assets (Details Narr
Intangible assets (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets, total | $ 136,434 | $ 139,018 |
Schedule of Goodwill (Details)
Schedule of Goodwill (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Goodwill | ||
Goodwill, balance at beginning of period | $ 3,301,439 | $ 3,301,439 |
Impairment of goodwill | ||
Goodwill, balance at end of period | $ 3,301,439 | $ 3,301,439 |
Goodwill (Details Narrative)
Goodwill (Details Narrative) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill | ||
Goodwill carrying amount | $ 4,374,831 | $ 4,785,857 |
Expense of Development Costs (D
Expense of Development Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Opening total software development costs | $ 11,720,294 | $ 9,584,092 | $ 10,559,601 | $ 8,880,753 |
Software development during the period | 613,196 | 477,559 | 1,773,889 | 1,180,898 |
Closing total Software development costs | $ 12,333,490 | $ 10,061,651 | $ 12,333,490 | $ 10,061,651 |
Government CEBA loan (Details N
Government CEBA loan (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CAD ($) | Sep. 30, 2022 CAD ($) | |
Leumi Bank [Member] | |||||
Short-Term Debt [Line Items] | |||||
Proceeds from lines of credit | $ 200,000 | ||||
Interest paid | $ 987 | ||||
Canada Emergency Business Account Loan Program [Member] | |||||
Short-Term Debt [Line Items] | |||||
Proceeds from issuance of long-term debt | $ 43,668 | $ 60,000 | |||
Debt instrument for forgiveness | $ 14,556 | $ 20,000 | |||
Repaid for loan forgiveness eligibility | $ 29,112 | $ 40,000 | |||
Loan description | If the loan cannot be repaid by December 31, 2023, it can be converted into a 2 year term loan charging an interest rate of 5%. |
Schedule of Share- based Paymen
Schedule of Share- based Payment Arrangement, Warrant Activity (Details) - Warrant [Member] | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2021 $ / shares shares | |
Subsidiary, Sale of Stock [Line Items] | |||
Number of warrants, beginning balance | 230,000 | ||
Warrant, weighted average exercise price, beginning balance | (per share) | $ 0.98 | ||
Granted | 230,000 | 230,000 | |
Granted, weighted average exercise price | $ / shares | $ 0.98 | ||
Granted, expiry date | Apr. 03, 2023 | Apr. 03, 2023 | |
Number of warrants, ending balance | 230,000 | 230,000 | 230,000 |
Warrant, weighted average exercise price, ending balance | $ / shares | $ 0.98 | $ 0.98 |
Schedule of Fair Value of Warra
Schedule of Fair Value of Warrants Assumptions (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Measurement Input, Exercise Price [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Exercise price | $ 0.98 | $ 0.98 |
Measurement Input, Share Price [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Share price | $ 0.405 | $ 0.65 |
Measurement Input, Expected Term [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected term | 6 months | 1 year 6 months |
Measurement Input, Expected Dividend Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected dividend rate | ||
Measurement Input, Price Volatility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected volatility rate | 55.09% | 90.87% |
Measurement Input, Risk Free Interest Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Risk free interest rate | 3.44% | 0.98% |
Schedule of Share-based Payment
Schedule of Share-based Payment Arrangement, Option, Activity (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2021 $ / shares shares | Jun. 30, 2021 $ / shares shares | Sep. 30, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | |
Equity [Abstract] | ||||
Outstanding, number of options, beginning balance | 6,870,150 | 5,875,750 | ||
Outstanding, weighted average exercise price, beginning balance | $ / shares | $ 0.48 | $ 0.39 | ||
Granted, number of options | 2,550,000 | 2,675,000 | ||
Granted, Weighted average exercise price | (per share) | $ 0.45 | $ 0.54 | $ 0.40 | $ 0.60 |
Exercised, number of options | (70,000) | (70,000) | (70,000) | |
Exercised, weighted average exercise price | $ / shares | $ (0.45) | |||
Expired, number of options | (570,000) | |||
Expired, weighted average exercise price | $ / shares | $ (0.43) | |||
Cancelled, number of options | (285,000) | (1,040,600) | ||
Cancelled, weighted average exercise price | $ / shares | $ (0.47) | $ (0.42) | ||
Outstanding, number of options, ending balance | 9,135,150 | 6,870,150 | ||
Outstanding, weighted average exercise price, ending balance | $ / shares | $ 0.43 | $ 0.48 |
Schedule of Share-based Payme_2
Schedule of Share-based Payment Arrangement, Option, Exercise Price Range (Details) | 9 Months Ended | |
Sep. 30, 2022 $ / shares shares | Sep. 30, 2022 $ / shares shares | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number outstanding | 9,135,150 | 9,135,150 |
Number exercisable | 4,473,886 | 4,473,886 |
Range 1 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices per share | $ / shares | $ 0.45 | |
Number outstanding | 2,030,400 | 2,030,400 |
Number exercisable | 776,736 | 776,736 |
Expiry date | Jun. 30, 2025 | |
Range 2 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices per share | $ / shares | $ 0.50 | |
Number outstanding | 859,600 | 859,600 |
Number exercisable | 375,800 | 375,800 |
Expiry date | Feb. 01, 2026 | |
Range 3 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices per share | $ / shares | $ 0.50 | |
Number outstanding | 2,445,000 | 2,445,000 |
Number exercisable | 391,200 | 391,200 |
Expiry date | Feb. 01, 2027 | |
Range 4 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices per share | $ / shares | $ 0.54 | |
Number outstanding | 506,150 | 506,150 |
Number exercisable | 506,150 | 506,150 |
Expiry date | Nov. 08, 2022 | |
Range 5 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices per share | $ / shares | $ 0.54 | |
Number outstanding | 713,000 | 713,000 |
Number exercisable | 713,000 | 713,000 |
Expiry date | Jun. 04, 2023 | |
Range 6 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices per share | $ / shares | $ 0.66 | |
Number outstanding | 200,000 | 200,000 |
Number exercisable | 56,000 | 56,000 |
Expiry date | Jul. 12, 2026 | |
Range 7 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices per share | $ / shares | $ 0.50 | |
Number outstanding | 1,275,000 | 1,275,000 |
Number exercisable | 1,275,000 | 1,275,000 |
Expiry date | Jun. 04, 2023 | |
Range 8 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise prices per share | $ / shares | $ 1.02 | |
Number outstanding | 1,106,000 | 1,106,000 |
Number exercisable | 380,000 | 380,000 |
Expiry date | Apr. 06, 2026 |
Stockholders_ equity (Details N
Stockholders’ equity (Details Narrative) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Nov. 14, 2022 $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) shares | Mar. 31, 2022 $ / shares shares | Mar. 31, 2022 $ / shares shares | Sep. 30, 2021 USD ($) $ / shares shares | Sep. 30, 2021 $ / shares | Jun. 30, 2021 USD ($) $ / shares shares | Jun. 30, 2021 CAD ($) $ / shares shares | Mar. 31, 2021 $ / shares shares | Mar. 31, 2021 $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) $ / shares shares | Jun. 30, 2021 $ / shares shares | Dec. 31, 2020 shares | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Shares issued | $ | $ 79,705 | $ 179,293 | ||||||||||||||
Stock option exercised | 70,000 | 70,000 | 70,000 | |||||||||||||
Share-based compensation arrangement, grants in period, gross (in shares) | $ | $ 31,264 | |||||||||||||||
Exercise price | (per share) | $ 0.45 | $ 0.54 | $ 0.40 | $ 0.60 | ||||||||||||
Fair value of derivative liability | $ | $ 83,572 | $ 83,572 | ||||||||||||||
Gain on derivative liability | $ | 83,555 | $ 60,207 | ||||||||||||||
Warrants value | $ | $ 17 | |||||||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 2,550,000 | 2,675,000 | ||||||||||||||
Aggregate intrinsic value for options | $ | $ 334,897 | |||||||||||||||
Share-based payment arrangement, expense | $ | $ 181,129 | $ 178,763 | $ 525,721 | $ 448,369 | ||||||||||||
Share based payment award options outstanding number | 9,135,150 | 9,135,150 | 6,870,150 | 5,875,750 | ||||||||||||
2015 Stock Option Plan [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Share-based payment arrangement, expense | $ | $ 181,129 | $ 178,763 | ||||||||||||||
Share-based compensation arrangement, weighted average grant | $ / shares | $ 0.31 | $ 0.36 | ||||||||||||||
2015 Stock Option Plan [Member] | Employee Stock Options [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Exercise price | (per share) | $ 0.40 | $ 0.50 | $ 0.52 | $ 0.66 | $ 0.80 | $ 1.02 | $ 0.39 | $ 0.50 | ||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 2,550,000 | 2,550,000 | 300,000 | 1,300,000 | 1,300,000 | 1,075,000 | 1,075,000 | |||||||||
Subsequent Event [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Share based payment award options outstanding number | 506,150 | |||||||||||||||
Weighed average non exercise price, expired | $ / shares | $ 0.54 | |||||||||||||||
Common Stock [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Shares issued, shares | 156,510 | 230,000 | 230,000 | |||||||||||||
Shares issued | $ | $ 79,705 | $ 179,293 | ||||||||||||||
Stock option exercised | 70,000 | 70,000 | ||||||||||||||
Share-based compensation arrangement, grants in period, gross (in shares) | $ | $ 31,264 | |||||||||||||||
Agora Internet Relations Corp [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Trading advisory services monthly fee | 79,705 | $ 100,000 | ||||||||||||||
Shares issued, shares | 156,510 | |||||||||||||||
Research Capital Corporation [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Trading advisory services monthly fee | $ 5,200 | $ 6,500 | ||||||||||||||
Research Capital Corporation [Member] | Warrants Issued To RCC [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Number of securities called by warrants | 230,000 | 230,000 | ||||||||||||||
Class of warrant or right, exercise price of warrants or rights | (per share) | $ 0.77 | $ 0.98 | ||||||||||||||
Warrants and rights outstanding, term | 24 months | 24 months | ||||||||||||||
TSXV [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Shares issued, shares | 6,579,074 | |||||||||||||||
NCIB [Member] | Subsequent Event [Member] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||||
Stock issued during period shares, acquistions | 45,000 |
Schedule of Fair Value, Assets
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability – warrants | $ (17) | $ (23,365) |
Total assets measured and recorded at fair value | 1,852,239 | 2,078,866 |
Cash [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,830,262 | 2,078,607 |
Long Term Cash [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 21,994 | 23,624 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability – warrants | ||
Total assets measured and recorded at fair value | 1,852,256 | 2,102,231 |
Fair Value, Inputs, Level 1 [Member] | Cash [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,830,262 | 2,078,607 |
Fair Value, Inputs, Level 1 [Member] | Long Term Cash [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 21,994 | 23,624 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability – warrants | (17) | (23,365) |
Total assets measured and recorded at fair value | (17) | (23,365) |
Fair Value, Inputs, Level 2 [Member] | Cash [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ||
Fair Value, Inputs, Level 2 [Member] | Long Term Cash [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability – warrants | ||
Total assets measured and recorded at fair value | ||
Fair Value, Inputs, Level 3 [Member] | Cash [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ||
Fair Value, Inputs, Level 3 [Member] | Long Term Cash [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents |
Schedule of Lessee, Operating L
Schedule of Lessee, Operating Lease, Liability, Maturity (Details) | Sep. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 22,298 |
2023 | 69,384 |
2024 | $ 11,620 |
Schedule of Consulting Agreemen
Schedule of Consulting Agreement with Related Parties (Details) - 9 months ended Sep. 30, 2022 | USD ($) | CAD ($) |
T. M. Williams Executive Chairman [Member] | T.M. Williams (ROW), Inc. [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Management consulting agreements, monthly amount | $ 160,000 | |
H. W. Bromley Chief Financial Officer [Member] | Bromley Accounting Services Ltd. [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Management consulting agreements, monthly amount | $ 215,000 | |
T. H. Williams Vice President Product [Member] | Farcast Operations Inc. [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Management consulting agreements, monthly amount | $ 240,000 |
Commitments (Details Narrative)
Commitments (Details Narrative) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) m² | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) m² | Sep. 30, 2021 USD ($) | Mar. 31, 2019 ft² | |
Lessee, Lease, Description [Line Items] | |||||
Payments for rent | $ 30,653 | $ 32,516 | |||
Royalty expense | $ 3,363 | $ 1,683 | $ 19,716 | $ 13,247 | |
Facility in Vancouver, Canada [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease, area of property | ft² | 1,459 | ||||
Netanya, Israel Lease [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease, area of property | m² | 190 | 190 |
Schedule of Right-of-use Assets
Schedule of Right-of-use Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Right-of-use Assets And Lease Liabilities | |||||
Opening balance for the period | $ 65,464 | $ 106,315 | $ 106,315 | ||
Amortization of operating lease right-of use assets | $ (7,177) | $ (7,369) | (21,758) | $ (33,481) | (40,851) |
Closing balance for the period | $ 43,706 | $ 43,706 | $ 65,464 |
Lessee, Operating Lease, Liabil
Lessee, Operating Lease, Liability, Maturity (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | |||
2022 | $ 22,298 | ||
2023 | 69,384 | ||
2024 | 11,620 | ||
Total lease payments | 46,511 | $ 74,067 | $ 103,918 |
Current lease liabilities | 31,112 | 32,068 | |
Long-term lease liabilities | 15,399 | $ 41,999 | |
Operating Lease Office Lease [Member] | |||
Lessee, Lease, Description [Line Items] | |||
2022 | 7,984 | ||
2023 | 32,732 | ||
2024 | 7,499 | ||
Total lease payments | 48,215 | ||
Less: Interest | (1,704) | ||
Total lease payments | 46,511 | ||
Current lease liabilities | 31,112 | ||
Long-term lease liabilities | $ 15,399 |
Schedule of Operating Lease Lia
Schedule of Operating Lease Liability (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Right-of-use Assets And Lease Liabilities | ||
Opening balance for the period | $ 74,067 | $ 103,918 |
Payments on operating lease liabilities | (27,556) | (29,851) |
Closing balance for the period | 46,511 | 74,067 |
Less: current portion | (31,112) | (32,068) |
Operating lease liabilities, non-current portion as at end of year | $ 15,399 | $ 41,999 |
Right-of-use assets and lease_3
Right-of-use assets and lease liabilities (Details Narrative) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 01, 2019 | Jan. 02, 2019 |
Lessee, Lease, Description [Line Items] | |||||
Operating lease liability | $ 46,511 | $ 74,067 | $ 103,918 | ||
Anguilla Office Operating Lease Agreement [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Discount rate | 5% | ||||
Operating Lease, License Agreement [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Discount rate | 12% | ||||
Facility in Vancouver, Canada [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Discount rate | 4.12% | ||||
Operating lease liability | $ 125,474 |
Schedule of Related Party Trans
Schedule of Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Related Party Transaction [Line Items] | ||||
Directors fees | $ 2,000 | $ 2,022 | $ 5,998 | $ 6,022 |
Salaries, wages, consultants and benefits | 139,994 | 123,381 | 567,752 | 511,959 |
Selling and marketing | 222,379 | 156,122 | 654,181 | 465,954 |
Stock-based compensation (Note 9) | 181,129 | 178,763 | 525,721 | 448,369 |
Content and software development (Note 7) | 613,196 | 477,559 | 1,773,889 | 1,180,898 |
Related party transaction | 327,961 | 263,327 | 1,036,480 | 867,575 |
Directors Fees Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Directors fees | 2,000 | 2,022 | 5,998 | 6,022 |
Salaries Wages Consultants And Benefits Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Salaries, wages, consultants and benefits | 159,498 | 127,092 | 537,502 | 473,492 |
Selling And Marketing Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Selling and marketing | 32,534 | 17,730 | 97,431 | 56,136 |
Stock Based Compensation Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Stock-based compensation (Note 9) | 71,080 | 61,682 | 208,435 | 170,297 |
Content And Software Development Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Content and software development (Note 7) | $ 62,849 | $ 54,801 | $ 187,114 | $ 161,628 |
Related party transactions (Det
Related party transactions (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 $ / shares shares | Mar. 31, 2021 $ / shares shares | Sep. 30, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Mar. 31, 2022 $ / shares | Mar. 31, 2021 $ / shares | |
Related Party Transaction [Line Items] | ||||||
Due to related parties | $ | $ 98,455 | $ 53,829 | ||||
Number of options granted | shares | 2,550,000 | 2,675,000 | ||||
Director and Officer [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related parties | $ | $ 98,455 | $ 53,829 | ||||
Director and Officer [Member] | Stock Option [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Number of options granted | shares | 900,000 | 400,000 | ||||
Shares issued, price per share | (per share) | $ 0.39 | $ 0.39 | $ 0.50 | $ 0.50 |
Schedule of Revenue By Geograph
Schedule of Revenue By Geographical Region (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 3,505,812 | $ 2,814,642 | $ 8,303,399 | $ 6,550,089 |
Central Eastern And Southern Europe [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 71,940 | 271 | 205,421 | 1,226 |
North America [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 1,926,941 | 2,039,047 | 4,158,336 | 4,888,697 |
Others [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 288,667 | 67,768 | 1,077,934 | 250,125 |
Advertising [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 3,454,824 | 2,759,508 | 8,117,934 | 6,384,308 |
Advertising [Member] | Western Europe [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 1,198,642 | 686,877 | 2,802,750 | 1,345,358 |
Advertising [Member] | Central Eastern And Southern Europe [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 71,871 | 205,048 | ||
Advertising [Member] | North America [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 1,923,659 | 2,013,708 | 4,124,452 | 4,833,815 |
Advertising [Member] | Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 260,652 | 58,923 | 985,684 | 205,135 |
Content [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 50,988 | 55,134 | 185,465 | 165,781 |
Content [Member] | Western Europe [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 19,622 | 20,679 | 58,958 | 64,683 |
Content [Member] | Central Eastern And Southern Europe [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 69 | 271 | 373 | 1,226 |
Content [Member] | North America [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 3,282 | 25,339 | 33,884 | 54,882 |
Content [Member] | Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 28,015 | 8,845 | 92,250 | 44,990 |
Central Eastern And Southern Europe [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 1,218,264 | $ 707,556 | $ 2,861,708 | $ 1,410,041 |
Schedule of Company Equipment (
Schedule of Company Equipment (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 26,798 | $ 20,523 |
ANGUILLA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 68 | 91 |
CANADA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 11,336 | 8,542 |
ISRAEL | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 10,243 | 11,055 |
UNITED KINGDOM | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 5,151 | $ 835 |
Concentrations (Details Narrati
Concentrations (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Concentration Risk [Line Items] | ||||
Total revenue | $ 3,505,812 | $ 2,814,642 | $ 8,303,399 | $ 6,550,089 |
Customer One [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue | 1,193,616 | 1,033,971 | ||
Customer Two [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue | 609,676 | $ 586,043 | ||
Customer Three [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue | $ 479,670 |
Concentrations of credit risk (
Concentrations of credit risk (Details Narrative) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Product Information [Line Items] | ||
Cash and cash equivalents | $ 1,852,256 | $ 2,102,231 |
Cash, uninsured amount | 1,543,735 | 1,793,265 |
Accounts receivable | 4,222,055 | 6,627,864 |
Customer One [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Product Information [Line Items] | ||
Accounts receivable | 1,750,244 | 1,952,040 |
Customer Two [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Product Information [Line Items] | ||
Accounts receivable | 609,676 | 1,165,807 |
Customer Three [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Product Information [Line Items] | ||
Accounts receivable | $ 479,670 | $ 1,054,625 |