Cover
Cover | 9 Months Ended |
Sep. 30, 2023 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2023 |
Document Fiscal Period Focus | Q3 |
Document Fiscal Year Focus | 2023 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 333-120120-01 |
Entity Registrant Name | KIDOZ inc. |
Entity Central Index Key | 0001318482 |
Entity Address, Address Line One | Suite 220 |
Entity Address, Address Line Two | 1685 West 4th Avenue |
Entity Address, City or Town | Vancouver |
Entity Address, State or Province | BC |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | V6J 1L8 |
Condensed Interim Consolidated
Condensed Interim Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash | $ 1,468,955 | $ 2,363,530 |
Accounts receivable, less allowance for doubtful accounts $107,061 (December 31, 2022 - $53,241) (Note 3) | 3,218,082 | 7,400,282 |
Prepaid expenses | 61,191 | 71,248 |
Total Current Assets | 4,748,228 | 9,835,060 |
Equipment (Note 4) | 32,744 | 33,522 |
Goodwill (Note 6) | 3,301,439 | 3,301,439 |
Intangible assets (Note 5) | 738,154 | 1,147,457 |
Long term cash equivalent | 23,271 | 22,310 |
Operating lease right-of-use assets (Note 12) | 13,562 | 36,529 |
Security deposit | 10,284 | 10,766 |
Total Assets | 8,867,682 | 14,387,083 |
Current liabilities: | ||
Accounts payable | 1,343,184 | 4,826,667 |
Accrued liabilities | 650,401 | 703,880 |
Derivative liability – warrants (Note 2e and 9) | 51 | |
Government CEBA current loan (Note 9) | 44,182 | 44,296 |
Operating lease liabilities – current portion (Note 12) | 14,842 | 32,116 |
Total Current Liabilities | 2,132,617 | 5,687,884 |
Operating lease liabilities – non-current portion (Note 12) | 7,440 | |
Total Liabilities | 2,132,617 | 5,695,324 |
Commitments (Note 11) | ||
Stockholders’ Equity (Note 9): | ||
Common stock, no par value, unlimited shares authorized, 131,304,499 shares issued and outstanding (December 31, 2022 - 131,347,999) | 51,036,765 | 50,664,887 |
Treasury shares, nil shares (December 31, 2022 – 41,500) | (11,793) | |
Accumulated deficit | (44,326,280) | (41,985,915) |
Accumulated other comprehensive income: Foreign currency translation adjustment | 24,580 | 24,580 |
Total Stockholders’ Equity | 6,735,065 | 8,691,759 |
Total Liabilities and Stockholders’ Equity | 8,867,682 | 14,387,083 |
Related Party [Member] | ||
Current liabilities: | ||
Accounts payable and accrued liabilities - related party (Note 13) | $ 80,008 | $ 80,874 |
Condensed Interim Consolidate_2
Condensed Interim Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 107,061 | $ 53,241 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | Unlimited | Unlimited |
Common stock, shares issued | 131,304,499 | 131,347,999 |
Common stock, shares outstanding | 131,304,499 | 131,347,999 |
Treasury stock, common shares | 41,500 |
Condensed Interim Consolidate_3
Condensed Interim Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue: | ||||
Total revenue | $ 2,808,354 | $ 3,514,149 | $ 7,296,278 | $ 8,319,757 |
Cost of sales: | 1,754,540 | 2,268,579 | 4,332,915 | 5,271,327 |
Total cost of sales | 1,754,540 | 2,268,579 | 4,332,915 | 5,271,327 |
Gross profit | 1,053,814 | 1,245,570 | 2,963,363 | 3,048,430 |
Operating expenses: | ||||
Amortization of operating lease right-of-use assets (Note 12) | 6,782 | 7,177 | 22,967 | 21,758 |
Depreciation and amortization (Notes 4 & 5) | 139,816 | 138,757 | 418,795 | 417,742 |
Directors’ fees (Note 13) | 1,999 | 2,000 | 5,999 | 5,998 |
General and administrative | 172,307 | 178,717 | 514,589 | 580,730 |
Provision for doubtful receivables | 83,525 | 83,525 | ||
Salaries, wages, consultants and benefits | 166,856 | 139,994 | 526,524 | 567,752 |
Selling and marketing (Note 13) | 312,791 | 222,379 | 946,874 | 654,181 |
Stock awareness program | 29,567 | 9,936 | 142,304 | 105,694 |
Stock-based compensation (Note 9 & 13) | 135,867 | 181,129 | 384,188 | 525,721 |
Content and software development (Note 7 & 13) | 720,075 | 613,196 | 2,219,806 | 1,773,889 |
Total operating expenses | 1,769,585 | 1,493,285 | 5,265,571 | 4,653,465 |
Loss before other income (expense) and income taxes | (715,771) | (247,715) | (2,302,208) | (1,605,035) |
Other income (expense): | ||||
Foreign exchange gain (loss) | (49,597) | (67,736) | (39,251) | (184,989) |
Gain on derivative liability – warrants (Note 2e) | 1,499 | 51 | 23,348 | |
Interest and other income | 1,031 | 178 | 1,043 | 178 |
Loss before income taxes | (764,337) | (313,774) | (2,340,365) | (1,766,498) |
Income tax recovery (expense) | 5 | |||
Loss after tax | (764,337) | (313,774) | (2,340,365) | (1,766,493) |
Other comprehensive income (loss) | ||||
Comprehensive loss | $ (764,337) | $ (313,774) | $ (2,340,365) | $ (1,766,493) |
Basic loss per common share | $ (0.01) | $ 0 | $ (0.02) | $ (0.01) |
Diluted loss per common share | $ (0.01) | $ 0 | $ (0.02) | $ (0.01) |
Weighted average common shares outstanding, basic | 131,304,499 | 131,581,499 | 131,305,508 | 131,464,438 |
Weighted average common shares outstanding, diluted | 131,304,499 | 131,581,499 | 131,305,508 | 131,464,438 |
Advertising [Member] | ||||
Revenue: | ||||
Total revenue | $ 2,492,058 | $ 3,410,874 | $ 6,525,572 | $ 8,024,079 |
Programmatic [Member] | ||||
Revenue: | ||||
Total revenue | 248,546 | 52,287 | 571,392 | 110,213 |
Content [Member] | ||||
Revenue: | ||||
Total revenue | $ 67,750 | $ 50,988 | $ 199,314 | $ 185,465 |
Condensed Interim Consolidate_4
Condensed Interim Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Treasury Stock, Common [Member] | Retained Earnings [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 49,964,919 | $ 40,638,802 | $ 24,580 | $ 9,350,697 | |
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) | |||
Balance at Mar. 31, 2022 | $ 50,124,917 | 41,369,844 | 24,580 | 8,779,653 | |
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 | |
Balance, shares at Dec. 31, 2021 | 131,424,989 | ||||
Net loss and comprehensive loss | (1,766,493) | ||||
Balance at Sep. 30, 2022 | $ 50,570,345 | 42,405,295 | 24,580 | 8,189,630 | |
Balance, shares at Sep. 30, 2022 | 131,581,499 | ||||
Beginning balance, value at Dec. 31, 2021 | $ 49,964,919 | 40,638,802 | 24,580 | 9,350,697 | |
Balance, shares at Dec. 31, 2021 | 131,424,989 | ||||
Balance at Dec. 31, 2022 | $ 50,664,887 | $ 11,793 | (41,985,915) | 24,580 | 8,691,759 |
Balance, shares at Dec. 31, 2022 | 131,347,999 | ||||
Beginning balance, value at Mar. 31, 2022 | $ 50,124,917 | 41,369,844 | 24,580 | 8,779,653 | |
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 | ||||
Balance at Jun. 30, 2022 | $ 50,389,216 | 42,091,521 | 24,580 | 8,322,275 | |
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) | |||
Balance at Sep. 30, 2022 | $ 50,570,345 | 42,405,295 | 24,580 | 8,189,630 | |
Balance, shares at Sep. 30, 2022 | 131,581,499 | ||||
Beginning balance, value at Dec. 31, 2022 | $ 50,664,887 | 11,793 | (41,985,915) | 24,580 | 8,691,759 |
Balance, shares at Dec. 31, 2022 | 131,347,999 | ||||
Stock-based compensation | $ 111,974 | 111,974 | |||
Repurchase of common shares | $ (12,310) | 11,793 | (517) | ||
Repurchase of common shares, (in shares) | (43,500) | ||||
Net loss and comprehensive loss | (1,066,612) | (1,066,612) | |||
Balance at Mar. 31, 2023 | $ 50,764,551 | (43,052,527) | 24,580 | 7,736,604 | |
Balance, shares at Mar. 31, 2023 | 131,304,499 | ||||
Beginning balance, value at Dec. 31, 2022 | $ 50,664,887 | 11,793 | (41,985,915) | 24,580 | 8,691,759 |
Balance, shares at Dec. 31, 2022 | 131,347,999 | ||||
Net loss and comprehensive loss | (2,340,365) | ||||
Balance at Sep. 30, 2023 | $ 51,036,765 | (44,326,280) | 24,580 | 6,735,065 | |
Balance, shares at Sep. 30, 2023 | 131,304,499 | ||||
Beginning balance, value at Mar. 31, 2023 | $ 50,764,551 | (43,052,527) | 24,580 | 7,736,604 | |
Balance, shares at Mar. 31, 2023 | 131,304,499 | ||||
Stock-based compensation | $ 136,347 | 136,347 | |||
Net loss and comprehensive loss | (509,416) | (509,416) | |||
Balance at Jun. 30, 2023 | $ 50,900,898 | (43,561,943) | 24,580 | 7,363,535 | |
Balance, shares at Jun. 30, 2023 | 131,304,499 | ||||
Stock-based compensation | $ 135,867 | 135,867 | |||
Net loss and comprehensive loss | (764,337) | (764,337) | |||
Balance at Sep. 30, 2023 | $ 51,036,765 | $ (44,326,280) | $ 24,580 | $ 6,735,065 | |
Balance, shares at Sep. 30, 2023 | 131,304,499 |
Condensed Interim Consolidate_5
Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Cash flows from operating activities: | |||||||
Net loss | $ (764,337) | $ (1,066,612) | $ (313,774) | $ (731,042) | $ (2,340,365) | $ (1,766,493) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 418,795 | 417,742 | |||||
Amortization of operating lease right-of-use assets | 6,782 | 7,177 | 22,967 | 21,758 | $ 28,935 | ||
Gain on derivative liability – warrants | (51) | (23,348) | |||||
Provision for doubtful receivables | 83,525 | 83,525 | |||||
Stock-based compensation | 384,188 | 525,721 | |||||
Unrealized foreign exchange gain (loss) | (593) | (5,100) | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 4,098,675 | 2,405,809 | |||||
Prepaid expenses | 10,057 | (823) | |||||
Accounts payable and accrued liabilities | (3,537,827) | (1,783,064) | |||||
Net cash used in operating activities | (860,629) | (207,798) | |||||
Cash flows from investing activities: | |||||||
Acquisition of equipment | (8,714) | (12,991) | |||||
Net cash used in investing activities | (8,714) | (12,991) | |||||
Cash flows from financing activities: | |||||||
Payments for repurchase of common shares | (517) | ||||||
Payments on operating lease liabilities | (24,715) | (27,556) | |||||
Net cash used in financing activities | (25,232) | (27,556) | |||||
Change in cash | (894,575) | (248,345) | |||||
Cash, beginning of period | $ 2,363,530 | $ 2,078,607 | 2,363,530 | 2,078,607 | 2,078,607 | ||
Cash, end of period | $ 1,468,955 | $ 1,830,262 | 1,468,955 | 1,830,262 | $ 2,363,530 | ||
Supplementary information: | |||||||
Interest paid | |||||||
Income taxes paid | 3,617 | 3,206 | |||||
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, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed 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 annual 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 condensed 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 filed April 19, 2023 for the year ended December 31, 2022, included in the Company’s Annual Financial Statements and Management’s Discussion and Analysis filed with the TSX Venture Exchange on SEDAR and the Annual Report on Form 20-F, filed with the Securities and Exchange Commission. 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 condensed 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 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. There have been many factors which have affected the world economies in recent years. These include global pandemics (i.e. coronavirus COVID-19), inflation, the current banking crisis (e.g. Silicon Valley Bank), the war in Ukraine, the war in Gaza and many more. These factors have adversely affected workforces, economies, and financial markets globally. It has also disrupted the normal operations of many businesses, including the Company’s. These factors have affected spending, thereby affecting demand for the Company’s product and the Company’s business and its results of operations. It is not possible for the Company to predict the duration or magnitude of these factors at this time and the full effects on the Company’s business, its future results of operations, or ability to raise funds. |
Summary of significant accounti
Summary of significant accounting policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of presentation These unaudited condensed 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 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 2. Summary of significant accounting policies: (Continued) (a) Basis of presentation: (Continued) States Securities and Exchange Commission and the TSX Venture Exchange. The financial statements include the accounts of the Company’s subsidiaries: Schedule of Consolidation of Subsidiaries Company Registered % Owned Shoal Media (Canada) Inc. British Columbia, Canada 100 % Kidoz Ltd. Israel 100 % Rooplay 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 March 31, 2023, Shoal Games (UK) Plc was discontinued. 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 condensed 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, the inputs used in assessing goodwill impairment, 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 Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (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 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 2. Summary of significant accounting policies (Continued): (c) Revenue recognition: (Continued) available information such as market conditions and internally approved pricing guidelines related to the performance obligations. 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 pricing and terms for all our in-game advertising arrangements are mostly governed by insertion order which generally stipulates the payment terms, the duration (usually short term in nature), the number of advertising units delivered (e.g. impressions, completed views, or cost per install) and the contractually agreed upon price per advertising unit. 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) Programmatic advertising revenue - The Company generally offers these services under a programmatic bid on a Cost-per-Impression (CPM) basis. Our customers upload their advertisements into a demand side platform which then connects to our SDK through an exchange platform and on a bid system agree on the CPM rate and the impressions to be served. The Company has concluded that the delivery of the Programmatic advertising is delivered at the earlier of month end or at a point in time and, as such, has concluded these deliveries are a single performance obligation. The Company is deemed to be the principal in the transaction and therefore recognizes the revenue on a gross basis and commissions are recognized as cost of sales. 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 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 2. Summary of significant accounting policies (Continued): (c) Revenue recognition: (Continued) 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. 3) 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. b) Rooplay - 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. 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, and Amazon, iOS 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, Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 2. Summary of significant accounting policies (Continued): (c) Revenue recognition: (Continued) 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 expenses all software development costs as incurred for the period ended September 30, 2023 and 2022. As at September 30, 2023, and December 31, 2022, all capitalized software development costs have been fully amortized and the Company has no capitalized software development costs. Total software development costs were $ 15,276,285 13,056,478 (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 The Company identified the following intangible assets in the acquisition of Kidoz Ltd. Finite life intangible assets are recorded at historical cost less accumulated amortization based on their estimated useful life and any impairment is determined in accordance with ASC 360. The Company does not have any indefinite life intangible assets. 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 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. (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 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 2. Summary of significant accounting policies (Continued): (g) Goodwill: (Continued) 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, 2022, the Company determined there was no (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: Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 2. Summary of significant accounting policies (Continued): (i) Financial instruments and fair value measurements: (Continued) 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. 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, accrued liabilities - related party and the government CEBA loan approximate their financial statement carrying amounts due to the short-term maturities of these instruments and are therefore carried at their historical cost basis. 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. Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 2. Summary of significant accounting policies (Continued): (i) Financial instruments and fair value measurements: (Continued) (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, 2023 | |
Receivables [Abstract] | |
Accounts receivable | 3. Accounts receivable Schedule of Accounts Receivable September 30, December 31, Accounts receivable $ 3,325,143 $ 7,453,523 Expected credit losses (107,061 ) (53,241 ) Net accounts receivable $ 3,218,082 $ 7,400,282 The Company has a doubtful debt provision of $ 107,061 |
Equipment
Equipment | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Equipment | 4. Equipment Schedule of Property, Plant and Equipment September 30, 2023 Cost Accumulated depreciation Net book Value Equipment and computers $ 184,487 $ 156,971 $ 27,954 Furniture and fixtures 16,517 11,289 5,228 Equipment total $ 198,322 $ 164,878 $ 32,744 December 31, 2022 Cost Accumulated depreciation Net book Equipment and computers $ 175,773 $ 148,266 $ 27,507 Furniture and fixtures 16,517 10,502 6,015 Equipment total $ 192,290 $ 158,768 $ 33,522 Depreciation expense was $ 3,382 2,323 |
Intangible assets
Intangible assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | 5. Intangible assets Schedule of Finite-Lived Intangible Assets September 30, 2023 Cost Accumulated depreciation Net book Ad Tech technology $ 1,877,415 $ 1,720,964 $ 156,451 Kidoz OS technology 31,006 31,006 - Customer relationship 1,362,035 780,332 581,704 Intangible assets total $ 3,270,456 $ 2,532,302 $ 738,154 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 5. Intangible assets: (Continued) December 31, 2022 Cost Accumulated amortization Net book Ad Tech technology $ 1,877,415 $ 1,439,351 $ 438,064 Kidoz OS technology 31,006 31,006 - Customer relationship 1,362,035 652,642 709,393 Intangible assets total $ 3,270,456 $ 2,122,999 $ 1,147,457 Amortization expense was $ 136,434 136,434 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 6. Goodwill The changes in the carrying amount of goodwill for the period ended September 30, 2023, and the year ended December 31, 2022 were as follows: Schedule of Changes in the Carrying Amount of Goodwill September 30, 2023 December 31, 2022 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 2022 included a quantitative analysis of Kidoz Ltd. reporting unit (consisting of intangible assets (Note 5) and goodwill). The reporting unit has a carrying amount of $ 4,039,593 4,448,896 |
Content and software developmen
Content and software development assets | 9 Months Ended |
Sep. 30, 2023 | |
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. Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 7. Content and software development assets: (Continued) During the period ended September 30, 2023, the Company has expensed the development costs of all its technology as incurred and has expensed the following software development costs. Schedule of Expense of Development Costs Nine Months Nine Months Three Months Three Months Opening total software development costs $ 13,056,478 $ 10,559,601 $ 14,556,209 $ 11,720,294 Software development during the period 2,219,806 1,773,889 720,076 613,196 Closing total Software development costs $ 15,276,284 $ 12,333,490 $ 15,276,284 $ 12,333,490 |
Government CEBA loan
Government CEBA loan | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Government CEBA loan | 8. Government CEBA loan During the year ended December 31, 2020, the Company was granted a loan of $ 44,182 60,000 14,727 20,000 29,455 40,000 If the loan cannot be repaid by December 31, 2023, it can be converted into a 3-year term loan charging an interest rate of 5% |
Stockholders_ equity
Stockholders’ equity | 9 Months Ended |
Sep. 30, 2023 | |
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: There were no stock issuances during the quarter ended September 30, 2023 and 2022. (b) Normal Course Issuer Bid: During the year ended December 31, 2022, the Company filed a Notice of Intention to Make a Normal Course Issuer Bid (the “Notice of Intention”) with the TSX Venture Exchange (“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 5 Purchases under the NCIB may commence as of September 16, 2022, and expired on September 14, 2023. Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 9. Stockholders’ equity: (Continued) (b) Normal Course Issuer Bid: (Continued) The normal course issuer bid was conducted through Kidoz Inc’s broker Research Capital Corporation. The purchase and payment of the common shares were 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 depended upon market conditions at the time and securities law requirements. All common shares acquired were returned to treasury and cancelled. The purchase of and payment for the shares were 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 depended upon market conditions at the time and securities law requirements. All shares acquired pursuant to the NCIB were returned to treasury and cancelled. During the year ended December 31, 2022, 275,000 87,778 233,500 During the quarter ended March 31, 2023, 43,500 12,310 (c) Warrants A summary of warrant activity for the quarter ended September 30, 2023 are as follows: Schedule of Share- based Payment Arrangement, Warrant Activity Number of warrants Exercise price Expiry date Outstanding, December 31, 2022 230,000 CAD$ 0.98 April 3, 2023 Granted - - Expired unexercised (230,000 ) CAD$ 0.98 Outstanding September 30, 2023 - - During the quarter ended June 30, 2023, the warrants expired unexercised and a gain on derivative liability - warrants of $ 51 23,314 nil 51 Schedule of Fair Value of Warrants Assumptions September 30, December 31, Exercise price CAD$ 0.98 CAD$ 0.98 Stock price CAD$ 0.25 CAD$ 0.35 Expected term 3 0.25 Expected dividend yield - - Expected stock price volatility 97.90 % 77.46 % Risk-free interest rate 3.12 % 3.55 % Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 9. Stockholders’ equity: (Continued) (d) 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 10 10 During the quarter ended March 31, 2023, the Company granted 2,550,000 0.50 0.40 1,988,000 330,000 During the quarter ended March 31, 2022, the Company granted 1,885,000 0.30 0.22 Schedule of Share-based Payment Arrangement, Option, Activity Number of options Weighted average exercise price Outstanding, December 31, 2021 6,870,150 $ 0.48 Granted 2,550,000 0.40 Expired (506,150 ) (0.40 ) Cancelled (285,600 ) (0.48 ) Outstanding, December 31, 2022 8,629,000 $ 0.43 Granted 1,885,000 0.30 Expired (1,988,000 ) (0.46 ) Cancelled (460,000 ) (0.43 ) Outstanding September 30, 2023 8,066,000 $ 0.38 The aggregate intrinsic value for options as of September 30, 2023 was $ nil nil Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 9. Stockholders’ equity: (Continued) (d) Stock option plans: (Continued) The following table summarizes information concerning outstanding and exercisable stock options at September 30, 2023: Schedule of Share-based Payment Arrangement, Option, Exercise Price Range Exercise prices per share Number outstanding Number exercisable Expiry date CAD$ 0.30 1,845,000 258,300 February 21, 2028 CAD$ 0.45 1,930,400 1,182,248 June 30, 2025 CAD$ 0.50 789,600 527,100 February 1, 2026 CAD$ 0.50 2,295,000 872,100 February 1, 2027 CAD$ 0.66 200,000 104,000 July 12, 2026 CAD$ 1.02 1,006,000 586,000 April 6, 2026 8,066,000 3,529,748 During the quarter ended September 30, 2023, the Company recorded stock-based compensation of $ 135,867 181,129 0.28 0.31 |
Fair value measurement
Fair value measurement | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 Assets Cash $ 1,468,955 $ - $ - $ 1,468,955 Long term cash equivalent 23,271 - - 23,271 Liabilities Derivative liability – warrants - - - - Total net assets measured and recorded at fair value $ 1,492,226 $ - $ - $ 1,492,226 Level 1 Level 2 Level 3 Total As at December 31, 2022 Assets Cash $ 2,363,530 $ - $ - $ 2,363,530 Long term cash equivalent 22,310 - - 22,310 Liabilities Derivative liability – warrants - (51 ) - (51 ) Total assets (liabilities) measured and recorded at fair value $ 2,385,840 $ (51 ) $ - $ 2,385,789 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | 11. Commitments The Company leases office facilities in Vancouver, British Columbia, Canada, and Netanya, Israel. These office facilities are leased under operating lease agreements. During the quarter ended March 31, 2023, the lease in The Valley, Anguilla was cancelled. 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 year ended December 31, 2022, the lease was extended for a further 12 months. This facility comprises approximately 190 The minimum lease payments under these operating leases are approximately as follows: Schedule of Lessee, Operating Lease, Liability, Maturity 2023 $ 36,798 2024 12,113 The Company paid rent expense totaling $ 28,535 30,653 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 H. W. Bromley CFO CAD$ 215,000 Farcast Operations Inc. T. H. Williams VP Product CAD$ 240,000 As at September 30, 2023, 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, 2023, there were no further minimum guarantee payments commitments. The Company expensed the minimum guarantee payments over the life of the agreement and recognized license expense of $ 7,132 3,363 15,540 19,716 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) |
Right of use assets
Right of use assets | 9 Months Ended |
Sep. 30, 2023 | |
Right Of Use Assets | |
Right of use assets | 12. Right of use assets 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 the package of practical expedients permitted under the transition guidance within Topic 842, which allowed us to carry forward prior conclusions about lease identification, classification and initial direct costs for leases entered into prior to adoption of Topic 842. Additionally, 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, 2023 December 31, 2022 Opening balance for the period $ 36,529 $ 65,464 Amortization of operating lease right-of use assets (22,967 ) (28,935 ) Closing balance for the period $ 13,562 $ 36,529 The operating lease as at September 30, 2023, is summarized as follows: Schedule of Lessee Operating Lease Liability Maturity As at September 30, 2023 Operating lease- Office lease 2023 $ 7,588 2024 7,588 Total lease payments $ 15,176 Less: Interest (334 ) Present value of lease liabilities $ 14,842 Amounts recognized on the balance sheet Current lease liabilities $ 14,842 Long-term lease liabilities - Total lease payments $ 14,842 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 12. Right of use assets: (Continued) Schedule of Operating Lease Liability September 30, 2023 December 31, 2022 Opening balance for the period $ 39,556 $ 74,067 Payments on operating lease liabilities (24,714 ) (34,511 ) Closing balance for the period 14,842 39,556 Less: current portion (14,842 ) (32,116 ) Operating lease liabilities – non-current portion as at end of period $ - $ 7,440 |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related party transactions | 13. Related party transactions For the quarter ended September 30, 2023, the Company has the following related party transactions: Schedule of Related Party Transactions Nine Months Nine Months Three Months Three Months Directors’ fees $ 5,999 $ 5,998 $ 1,999 $ 2,000 Salaries, wages, consultants and benefits 500,180 537,502 183,401 159,498 Selling and marketing 50,631 97,431 7,397 32,534 Stock-based compensation (Note 9) 119,864 208,435 48,944 71,080 Content and software development (Note 7) 173,733 187,114 38,858 62,849 Closing balance for the period $ 850,407 $ 1,036,480 $ 280,599 $ 327,961 The Company has liabilities of $ 80,008 80,874 During the quarter ended March 31, 2023, the Company granted 400,000 0.30 0.22 During the quarter ended March 31, 2022, the Company granted 900,000 0.50 0.39 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) |
Segmented information
Segmented information | 9 Months Ended |
Sep. 30, 2023 | |
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 Nine Months Three Months Three Months Ad tech advertising revenue Western Europe $ 2,545,701 $ 2,802,750 $ 974,177 $ 1,198,642 Central, Eastern and Southern Europe 207,326 205,048 76,570 71,871 North America 3,431,340 4,030,597 1,364,838 1,879,709 Other 341,205 985,684 76,473 260,652 Total ad tech advertising revenue $ 6,525,572 $ 8,024,079 $ 2,492,058 $ 3,410,874 Content revenue Western Europe $ 55,063 $ 58,958 $ 18,563 $ 19,622 Central, Eastern and Southern Europe 33 373 7 69 North America 7,453 33,884 4,336 3,282 Other 136,765 92,250 44,844 28,015 Total content revenue $ 199,314 $ 185,465 $ 67,750 $ 50,988 Programmatic advertising revenue North America $ 571,392 $ 110,213 $ 248,546 $ 52,287 Total Programmatic advertising revenue $ 571,392 $ 110,213 $ 248,546 $ 52,287 Total revenue Western Europe $ 2,600,764 $ 2,861,708 $ 992,740 $ 1,218,264 Central, Eastern and Southern Europe 207,359 205,421 76,577 71,940 North America 4,010,185 4,174,694 1,617,720 1,935,278 Other 477,970 1,077,934 121,317 288,667 Total revenue $ 7,296,278 $ 8,319,757 $ 2,808,354 $ 3,514,149 Equipment The Company’s equipment is located as follows: Schedule of Equipment Net Book Value September 30, December 31, Anguilla $ - $ 60 Canada 21,270 20,143 Israel 8,444 9,279 United Kingdom 3,030 4,040 Total equipment $ 32,744 $ 33,522 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentrations | 15. Concentrations Major customers During the quarter ended September 30, 2023 and 2022, the Company sold Ad tech revenue, Programmatic advertising 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, 2023, the Company had two Ad tech customers: $ 630,413 376,276 1,193,616 609,676 479,670 |
Concentrations of credit risk
Concentrations of credit risk | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023, the Company had total cash and cash equivalents balances of $ 1,468,955 2,363,530 1,182,854 2,150,761 The Company has concentrations of credit risk with respect to accounts receivable, the majority of its accounts receivable are concentrated geographically in the United States amongst a small number of customers. As of September 30, 2023, the Company had one customer, totaling $ 630,414 1,921,602 1,061,177 920,736 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, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation These unaudited condensed 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 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 2. Summary of significant accounting policies: (Continued) (a) Basis of presentation: (Continued) States Securities and Exchange Commission and the TSX Venture Exchange. The financial statements include the accounts of the Company’s subsidiaries: Schedule of Consolidation of Subsidiaries Company Registered % Owned Shoal Media (Canada) Inc. British Columbia, Canada 100 % Kidoz Ltd. Israel 100 % Rooplay 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 March 31, 2023, Shoal Games (UK) Plc was discontinued. 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 condensed 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, the inputs used in assessing goodwill impairment, 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 Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (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 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 2. Summary of significant accounting policies (Continued): (c) Revenue recognition: (Continued) available information such as market conditions and internally approved pricing guidelines related to the performance obligations. 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 pricing and terms for all our in-game advertising arrangements are mostly governed by insertion order which generally stipulates the payment terms, the duration (usually short term in nature), the number of advertising units delivered (e.g. impressions, completed views, or cost per install) and the contractually agreed upon price per advertising unit. 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) Programmatic advertising revenue - The Company generally offers these services under a programmatic bid on a Cost-per-Impression (CPM) basis. Our customers upload their advertisements into a demand side platform which then connects to our SDK through an exchange platform and on a bid system agree on the CPM rate and the impressions to be served. The Company has concluded that the delivery of the Programmatic advertising is delivered at the earlier of month end or at a point in time and, as such, has concluded these deliveries are a single performance obligation. The Company is deemed to be the principal in the transaction and therefore recognizes the revenue on a gross basis and commissions are recognized as cost of sales. 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 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 2. Summary of significant accounting policies (Continued): (c) Revenue recognition: (Continued) 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. 3) 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. b) Rooplay - 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. 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, and Amazon, iOS 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, Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 2. Summary of significant accounting policies (Continued): (c) Revenue recognition: (Continued) 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 expenses all software development costs as incurred for the period ended September 30, 2023 and 2022. As at September 30, 2023, and December 31, 2022, all capitalized software development costs have been fully amortized and the Company has no capitalized software development costs. Total software development costs were $ 15,276,285 13,056,478 |
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 The Company identified the following intangible assets in the acquisition of Kidoz Ltd. Finite life intangible assets are recorded at historical cost less accumulated amortization based on their estimated useful life and any impairment is determined in accordance with ASC 360. The Company does not have any indefinite life intangible assets. 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 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. |
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 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 2. Summary of significant accounting policies (Continued): (g) Goodwill: (Continued) 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, 2022, the Company determined there was no |
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: Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 2. Summary of significant accounting policies (Continued): (i) Financial instruments and fair value measurements: (Continued) 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. 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, accrued liabilities - related party and the government CEBA loan approximate their financial statement carrying amounts due to the short-term maturities of these instruments and are therefore carried at their historical cost basis. 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. Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 2. Summary of significant accounting policies (Continued): (i) Financial instruments and fair value measurements: (Continued) (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, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Consolidation of Subsidiaries | Schedule of Consolidation of Subsidiaries Company Registered % Owned Shoal Media (Canada) Inc. British Columbia, Canada 100 % Kidoz Ltd. Israel 100 % Rooplay 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 | The Company identified the following intangible assets in the acquisition of Kidoz Ltd. Finite life intangible assets are recorded at historical cost less accumulated amortization based on their estimated useful life and any impairment is determined in accordance with ASC 360. The Company does not have any indefinite life intangible assets. 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, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Schedule of Accounts Receivable September 30, December 31, Accounts receivable $ 3,325,143 $ 7,453,523 Expected credit losses (107,061 ) (53,241 ) Net accounts receivable $ 3,218,082 $ 7,400,282 |
Equipment (Tables)
Equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Schedule of Property, Plant and Equipment September 30, 2023 Cost Accumulated depreciation Net book Value Equipment and computers $ 184,487 $ 156,971 $ 27,954 Furniture and fixtures 16,517 11,289 5,228 Equipment total $ 198,322 $ 164,878 $ 32,744 December 31, 2022 Cost Accumulated depreciation Net book Equipment and computers $ 175,773 $ 148,266 $ 27,507 Furniture and fixtures 16,517 10,502 6,015 Equipment total $ 192,290 $ 158,768 $ 33,522 |
Intangible assets (Tables)
Intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Schedule of Finite-Lived Intangible Assets September 30, 2023 Cost Accumulated depreciation Net book Ad Tech technology $ 1,877,415 $ 1,720,964 $ 156,451 Kidoz OS technology 31,006 31,006 - Customer relationship 1,362,035 780,332 581,704 Intangible assets total $ 3,270,456 $ 2,532,302 $ 738,154 Kidoz Inc. and subsidiaries (Expressed in United States Dollars) Notes to Unaudited Condensed Interim Consolidated Financial Statements Three Months ended September 30, 2023 and 2022 (Unaudited) 5. Intangible assets: (Continued) December 31, 2022 Cost Accumulated amortization Net book Ad Tech technology $ 1,877,415 $ 1,439,351 $ 438,064 Kidoz OS technology 31,006 31,006 - Customer relationship 1,362,035 652,642 709,393 Intangible assets total $ 3,270,456 $ 2,122,999 $ 1,147,457 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the period ended September 30, 2023, and the year ended December 31, 2022 were as follows: Schedule of Changes in the Carrying Amount of Goodwill September 30, 2023 December 31, 2022 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, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Expense of Development Costs | During the period ended September 30, 2023, the Company has expensed the development costs of all its technology as incurred and has expensed the following software development costs. Schedule of Expense of Development Costs Nine Months Nine Months Three Months Three Months Opening total software development costs $ 13,056,478 $ 10,559,601 $ 14,556,209 $ 11,720,294 Software development during the period 2,219,806 1,773,889 720,076 613,196 Closing total Software development costs $ 15,276,284 $ 12,333,490 $ 15,276,284 $ 12,333,490 |
Stockholders_ equity (Tables)
Stockholders’ equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Share- based Payment Arrangement, Warrant Activity | A summary of warrant activity for the quarter ended September 30, 2023 are as follows: Schedule of Share- based Payment Arrangement, Warrant Activity Number of warrants Exercise price Expiry date Outstanding, December 31, 2022 230,000 CAD$ 0.98 April 3, 2023 Granted - - Expired unexercised (230,000 ) CAD$ 0.98 Outstanding September 30, 2023 - - |
Schedule of Fair Value of Warrants Assumptions | Schedule of Fair Value of Warrants Assumptions September 30, December 31, Exercise price CAD$ 0.98 CAD$ 0.98 Stock price CAD$ 0.25 CAD$ 0.35 Expected term 3 0.25 Expected dividend yield - - Expected stock price volatility 97.90 % 77.46 % Risk-free interest rate 3.12 % 3.55 % |
Schedule of Share-based Payment Arrangement, Option, Activity | Schedule of Share-based Payment Arrangement, Option, Activity Number of options Weighted average exercise price Outstanding, December 31, 2021 6,870,150 $ 0.48 Granted 2,550,000 0.40 Expired (506,150 ) (0.40 ) Cancelled (285,600 ) (0.48 ) Outstanding, December 31, 2022 8,629,000 $ 0.43 Granted 1,885,000 0.30 Expired (1,988,000 ) (0.46 ) Cancelled (460,000 ) (0.43 ) Outstanding September 30, 2023 8,066,000 $ 0.38 |
Schedule of Share-based Payment Arrangement, Option, Exercise Price Range | The following table summarizes information concerning outstanding and exercisable stock options at September 30, 2023: Schedule of Share-based Payment Arrangement, Option, Exercise Price Range Exercise prices per share Number outstanding Number exercisable Expiry date CAD$ 0.30 1,845,000 258,300 February 21, 2028 CAD$ 0.45 1,930,400 1,182,248 June 30, 2025 CAD$ 0.50 789,600 527,100 February 1, 2026 CAD$ 0.50 2,295,000 872,100 February 1, 2027 CAD$ 0.66 200,000 104,000 July 12, 2026 CAD$ 1.02 1,006,000 586,000 April 6, 2026 8,066,000 3,529,748 |
Fair value measurement (Tables)
Fair value measurement (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 Assets Cash $ 1,468,955 $ - $ - $ 1,468,955 Long term cash equivalent 23,271 - - 23,271 Liabilities Derivative liability – warrants - - - - Total net assets measured and recorded at fair value $ 1,492,226 $ - $ - $ 1,492,226 Level 1 Level 2 Level 3 Total As at December 31, 2022 Assets Cash $ 2,363,530 $ - $ - $ 2,363,530 Long term cash equivalent 22,310 - - 22,310 Liabilities Derivative liability – warrants - (51 ) - (51 ) Total assets (liabilities) measured and recorded at fair value $ 2,385,840 $ (51 ) $ - $ 2,385,789 |
Commitments (Tables)
Commitments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 2023 $ 36,798 2024 12,113 |
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 H. W. Bromley CFO CAD$ 215,000 Farcast Operations Inc. T. H. Williams VP Product CAD$ 240,000 |
Right of use assets (Tables)
Right of use assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Right Of Use Assets | |
Schedule of Right-of-use Assets | The right-of-use assets are summarized as follows: Schedule of Right-of-use Assets September 30, 2023 December 31, 2022 Opening balance for the period $ 36,529 $ 65,464 Amortization of operating lease right-of use assets (22,967 ) (28,935 ) Closing balance for the period $ 13,562 $ 36,529 |
Schedule of Lessee Operating Lease Liability Maturity | The operating lease as at September 30, 2023, is summarized as follows: Schedule of Lessee Operating Lease Liability Maturity As at September 30, 2023 Operating lease- Office lease 2023 $ 7,588 2024 7,588 Total lease payments $ 15,176 Less: Interest (334 ) Present value of lease liabilities $ 14,842 Amounts recognized on the balance sheet Current lease liabilities $ 14,842 Long-term lease liabilities - Total lease payments $ 14,842 |
Schedule of Operating Lease Liability | Schedule of Operating Lease Liability September 30, 2023 December 31, 2022 Opening balance for the period $ 39,556 $ 74,067 Payments on operating lease liabilities (24,714 ) (34,511 ) Closing balance for the period 14,842 39,556 Less: current portion (14,842 ) (32,116 ) Operating lease liabilities – non-current portion as at end of period $ - $ 7,440 |
Related party transactions (Tab
Related party transactions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | For the quarter ended September 30, 2023, the Company has the following related party transactions: Schedule of Related Party Transactions Nine Months Nine Months Three Months Three Months Directors’ fees $ 5,999 $ 5,998 $ 1,999 $ 2,000 Salaries, wages, consultants and benefits 500,180 537,502 183,401 159,498 Selling and marketing 50,631 97,431 7,397 32,534 Stock-based compensation (Note 9) 119,864 208,435 48,944 71,080 Content and software development (Note 7) 173,733 187,114 38,858 62,849 Closing balance for the period $ 850,407 $ 1,036,480 $ 280,599 $ 327,961 |
Segmented information (Tables)
Segmented information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 Nine Months Three Months Three Months Ad tech advertising revenue Western Europe $ 2,545,701 $ 2,802,750 $ 974,177 $ 1,198,642 Central, Eastern and Southern Europe 207,326 205,048 76,570 71,871 North America 3,431,340 4,030,597 1,364,838 1,879,709 Other 341,205 985,684 76,473 260,652 Total ad tech advertising revenue $ 6,525,572 $ 8,024,079 $ 2,492,058 $ 3,410,874 Content revenue Western Europe $ 55,063 $ 58,958 $ 18,563 $ 19,622 Central, Eastern and Southern Europe 33 373 7 69 North America 7,453 33,884 4,336 3,282 Other 136,765 92,250 44,844 28,015 Total content revenue $ 199,314 $ 185,465 $ 67,750 $ 50,988 Programmatic advertising revenue North America $ 571,392 $ 110,213 $ 248,546 $ 52,287 Total Programmatic advertising revenue $ 571,392 $ 110,213 $ 248,546 $ 52,287 Total revenue Western Europe $ 2,600,764 $ 2,861,708 $ 992,740 $ 1,218,264 Central, Eastern and Southern Europe 207,359 205,421 76,577 71,940 North America 4,010,185 4,174,694 1,617,720 1,935,278 Other 477,970 1,077,934 121,317 288,667 Total revenue $ 7,296,278 $ 8,319,757 $ 2,808,354 $ 3,514,149 |
Schedule of Equipment | The Company’s equipment is located as follows: Schedule of Equipment Net Book Value September 30, December 31, Anguilla $ - $ 60 Canada 21,270 20,143 Israel 8,444 9,279 United Kingdom 3,030 4,040 Total equipment $ 32,744 $ 33,522 |
Schedule of Consolidation of Su
Schedule of Consolidation of Subsidiaries (Details) | Sep. 30, 2023 |
Shoal Media Canada Inc [Member] | |
Ownership percentage | 100% |
Kidoz Ltd [Member] | |
Ownership percentage | 100% |
Rooplay Media Limited [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) | Sep. 30, 2023 |
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, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Software development cost | $ 15,276,285 | $ 13,056,478 |
Goodwill, impairment loss |
Schedule of Accounts Receivable
Schedule of Accounts Receivable (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Accounts receivable | $ 3,325,143 | $ 7,453,523 |
Expected credit losses | (107,061) | (53,241) |
Net accounts receivable | $ 3,218,082 | $ 7,400,282 |
Accounts receivable (Details Na
Accounts receivable (Details Narrative) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Doubtful debt provision | $ 107,061 | $ 53,241 |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 198,322 | $ 192,290 |
Accumulated depreciation | 164,878 | 158,768 |
Property, Plant and Equipment, Net | 32,744 | 33,522 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 184,487 | 175,773 |
Accumulated depreciation | 156,971 | 148,266 |
Property, Plant and Equipment, Net | 27,954 | 27,507 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 16,517 | 16,517 |
Accumulated depreciation | 11,289 | 10,502 |
Property, Plant and Equipment, Net | $ 5,228 | $ 6,015 |
Equipment (Details Narrative)
Equipment (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 3,382 | $ 2,323 |
Schedule of Finite-Lived Inta_2
Schedule of Finite-Lived Intangible Assets (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 3,270,456 | $ 3,270,456 |
Accumulated depreciation | 2,532,302 | 2,122,999 |
Finite-Lived Intangible Assets, Net | 738,154 | 1,147,457 |
Ad Tech Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,877,415 | 1,877,415 |
Accumulated depreciation | 1,720,964 | 1,439,351 |
Finite-Lived Intangible Assets, Net | 156,451 | 438,064 |
Kidoz Os Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 31,006 | 31,006 |
Accumulated depreciation | 31,006 | 31,006 |
Finite-Lived Intangible Assets, Net | ||
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,362,035 | 1,362,035 |
Accumulated depreciation | 780,332 | 652,642 |
Finite-Lived Intangible Assets, Net | $ 581,704 | $ 709,393 |
Schedule of Changes in the Carr
Schedule of Changes in the Carrying Amount of Goodwill (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
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 |
Intangible assets (Details Narr
Intangible assets (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 136,434 | $ 136,434 |
Goodwill (Details Narrative)
Goodwill (Details Narrative) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill carrying amount | $ 4,039,593 | $ 4,448,896 |
Schedule of Expense of Developm
Schedule of Expense of Development Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Opening total software development costs | $ 14,556,209 | $ 11,720,294 | $ 13,056,478 | $ 10,559,601 |
Software development during the period | 720,076 | 613,196 | 2,219,806 | 1,773,889 |
Closing total Software development costs | $ 15,276,284 | $ 12,333,490 | $ 15,276,284 | $ 12,333,490 |
Government CEBA loan (Details N
Government CEBA loan (Details Narrative) - Canada Emergency Business Account Loan Program [Member] | 12 Months Ended | |
Dec. 31, 2020 USD ($) | Dec. 31, 2020 CAD ($) | |
Short-Term Debt [Line Items] | ||
Proceeds from issuance of long-term debt | $ 44,182 | $ 60,000 |
Debt forgiveness | 14,727 | 20,000 |
Repayment of loan | $ 29,455 | $ 40,000 |
Loan description | If the loan cannot be repaid by December 31, 2023, it can be converted into a 3-year term loan charging an interest rate of 5% | If the loan cannot be repaid by December 31, 2023, it can be converted into a 3-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 |
Sep. 30, 2023 $ / shares shares | |
Subsidiary, Sale of Stock [Line Items] | |
Number of warrants, beginning balance | shares | 230,000 |
Warrant, weighted average exercise price, beginning balance | $ / shares | $ 0.98 |
Granted, expiry date | Apr. 03, 2023 |
Granted | shares | |
Granted, weighted average exercise price | $ / shares | |
Expired unexercised | shares | (230,000) |
Expired unexercised | $ / shares | $ 0.98 |
Number of warrants, ending balance | shares | |
Warrant, weighted average exercise price, ending balance | $ / shares |
Schedule of Fair Value of Warra
Schedule of Fair Value of Warrants Assumptions (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
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] | ||
Stock price | $ 0.25 | $ 0.35 |
Measurement Input, Expected Term [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected term | 3 days | 3 months |
Measurement Input, Expected Dividend Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected dividend yield | ||
Measurement Input, Price Volatility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected stock price volatility | 97.90% | 77.46% |
Measurement Input, Risk Free Interest Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Risk-free interest rate | 3.12% | 3.55% |
Schedule of Share-based Payment
Schedule of Share-based Payment Arrangement, Option, Activity (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||
Outstanding, number of options, beginning balance | 8,629,000 | 6,870,150 |
Outstanding, weighted average exercise price, beginning balance | $ 0.43 | $ 0.48 |
Granted, number of options | 1,885,000 | 2,550,000 |
Granted, Weighted average exercise price | $ 0.30 | $ 0.40 |
Expired, number of options | (1,988,000) | (506,150) |
Expired, weighted average exercise price | $ (0.46) | $ (0.40) |
Cancelled, number of options | (460,000) | (285,600) |
Cancelled, weighted average exercise price | $ (0.43) | $ (0.48) |
Outstanding, number of options, ending balance | 8,066,000 | 8,629,000 |
Outstanding, weighted average exercise price, ending balance | $ 0.38 | $ 0.43 |
Schedule of Share-based Payme_2
Schedule of Share-based Payment Arrangement, Option, Exercise Price Range (Details) | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number outstanding | 8,066,000 |
Number exercisable | 3,529,748 |
Range 1 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices per share | $ / shares | $ 0.30 |
Number outstanding | 1,845,000 |
Number exercisable | 258,300 |
Expiry date | Feb. 21, 2028 |
Range 2 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices per share | $ / shares | $ 0.45 |
Number outstanding | 1,930,400 |
Number exercisable | 1,182,248 |
Expiry date | Jun. 30, 2025 |
Range 3 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices per share | $ / shares | $ 0.50 |
Number outstanding | 789,600 |
Number exercisable | 527,100 |
Expiry date | Feb. 01, 2026 |
Range 4 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices per share | $ / shares | $ 0.50 |
Number outstanding | 2,295,000 |
Number exercisable | 872,100 |
Expiry date | Feb. 01, 2027 |
Range 5 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices per share | $ / shares | $ 0.66 |
Number outstanding | 200,000 |
Number exercisable | 104,000 |
Expiry date | Jul. 12, 2026 |
Range 6 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices per share | $ / shares | $ 1.02 |
Number outstanding | 1,006,000 |
Number exercisable | 586,000 |
Expiry date | Apr. 06, 2026 |
Stockholders_ equity (Details N
Stockholders’ equity (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2023 shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2023 $ / shares | Sep. 30, 2022 USD ($) $ / shares | Jun. 30, 2022 USD ($) | Mar. 31, 2022 $ / shares shares | Mar. 31, 2022 $ / shares shares | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2015 | |
Shares acquired pursuant value | $ | $ 79,705 | |||||||||||
Number of options cancelled | 460,000 | 285,600 | ||||||||||
Gain on derivative liability | $ | $ 51 | $ 23,314 | ||||||||||
Derivative liability | $ | $ 51 | |||||||||||
Share-based compensation arrangement, percentage of outstanding stock maximum | 10% | |||||||||||
Number of options granted | 1,885,000 | 2,550,000 | ||||||||||
Share-based compensation arrangement, grants in period, weighted average exercise price (in CAD per share) | $ / shares | $ 0.30 | $ 0.40 | ||||||||||
Number of options expired unexercised | 1,988,000 | 506,150 | ||||||||||
Aggregate intrinsic value for options | $ | ||||||||||||
Share-based payment arrangement, expense | $ | 135,867 | $ 181,129 | $ 384,188 | $ 525,721 | ||||||||
Maximum [Member] | ||||||||||||
Share-based compensation arrangement, expiration period (Year) | 10 years | |||||||||||
Stock Option Plan 2015 [Member] | ||||||||||||
Share-based compensation arrangement, percentage of outstanding stock maximum | 10% | |||||||||||
Share-based payment arrangement, expense | $ | $ 135,867 | $ 181,129 | ||||||||||
Share-based compensation arrangement, weighted average grant | $ / shares | $ 0.28 | $ 0.31 | ||||||||||
Stock Option Plan 2015 [Member] | Employee Stock Options [Member] | ||||||||||||
Number of options cancelled | 330,000 | |||||||||||
Number of options granted | 2,550,000 | 1,885,000 | 1,885,000 | |||||||||
Share-based compensation arrangement, grants in period, weighted average exercise price (in CAD per share) | (per share) | $ 0.40 | $ 0.50 | $ 0.22 | $ 0.30 | ||||||||
Number of options expired unexercised | 1,988,000 | |||||||||||
TSXV [Member] | ||||||||||||
Shares acquired pursuant | 6,579,074 | |||||||||||
Percentage of issued and outstanding shares | 5% | |||||||||||
NCIB [Member] | ||||||||||||
Shares acquired pursuant | 43,500 | 275,000 | ||||||||||
Shares acquired pursuant value | $ | $ 87,778 | |||||||||||
Number of options cancelled | 233,500 | |||||||||||
Shares cancelled value | $ | $ 12,310 |
Schedule of Fair Value, Assets
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability - warrants | $ (51) | |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability - warrants | (51) | |
Total assets measured and recorded at fair value | 1,492,226 | 2,385,789 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [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 | 1,492,226 | 2,385,840 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability - warrants | (51) | |
Total assets measured and recorded at fair value | (51) | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [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 | ||
Cash [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,468,955 | 2,363,530 |
Cash [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,468,955 | 2,363,530 |
Cash [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ||
Cash [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ||
Long Term Cash Equivalent [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 23,271 | 22,310 |
Long Term Cash Equivalent [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 23,271 | 22,310 |
Long Term Cash Equivalent [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | ||
Long Term Cash Equivalent [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [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, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 36,798 |
2024 | $ 12,113 |
Schedule of Consulting Agreemen
Schedule of Consulting Agreement with Related Parties (Details) - 9 months ended Sep. 30, 2023 | USD ($) | CAD ($) |
TM Williams Executive Chairman [Member] | TM 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 | |
HW 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 | |
TM Williams VP 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, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 ft² | Mar. 31, 2019 ft² | |
Lessee, Lease, Description [Line Items] | ||||||
Payments for rent | $ 28,535 | $ 30,653 | ||||
Royalty expense | $ 7,132 | $ 3,363 | $ 15,540 | $ 19,716 | ||
Facility In Vancouver Canada [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease, area of property | ft² | 190 | 1,459 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Right Of Use Assets | |||||
Opening balance for the period | $ 36,529 | $ 65,464 | $ 65,464 | ||
Amortization of operating lease right-of use assets | $ (6,782) | $ (7,177) | (22,967) | $ (21,758) | (28,935) |
Closing balance for the period | $ 13,562 | $ 13,562 | $ 36,529 |
Schedule of Lessee Operating Le
Schedule of Lessee Operating Lease Liability Maturity (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Right Of Use Assets | |||
2023 | $ 7,588 | ||
2024 | 7,588 | ||
Total lease payments | 15,176 | ||
Less: Interest | (334) | ||
Present value of lease liabilities | 14,842 | $ 39,556 | $ 74,067 |
Amounts recognized on the balance sheet | |||
Current lease liabilities | 14,842 | 32,116 | |
Long-term lease liabilities | 7,440 | ||
Total lease payments | $ 14,842 | $ 39,556 | $ 74,067 |
Schedule of Operating Lease Lia
Schedule of Operating Lease Liability (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Right Of Use Assets | ||
Opening balance for the period | $ 39,556 | $ 74,067 |
Payments on operating lease liabilities | (24,714) | (34,511) |
Closing balance for the period | 14,842 | 39,556 |
Less: current portion | (14,842) | (32,116) |
Operating lease liabilities - non-current portion as at end of period | $ 7,440 |
Right of use assets (Details Na
Right of use assets (Details Narrative) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2020 | Apr. 01, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | ||||||
Operating lease liability | $ 14,842 | $ 39,556 | $ 74,067 | |||
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Related Party Transaction [Line Items] | ||||
Directors’ fees | $ 1,999 | $ 2,000 | $ 5,999 | $ 5,998 |
Salaries, wages, consultants and benefits | 166,856 | 139,994 | 526,524 | 567,752 |
Stock-based compensation (Note 9) | 135,867 | 181,129 | 384,188 | 525,721 |
Content and software development (Note 7) | 720,075 | 613,196 | 2,219,806 | 1,773,889 |
Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Directors’ fees | 1,999 | 2,000 | 5,999 | 5,998 |
Salaries, wages, consultants and benefits | 183,401 | 159,498 | 500,180 | 537,502 |
Selling and marketing | 7,397 | 32,534 | 50,631 | 97,431 |
Stock-based compensation (Note 9) | 48,944 | 71,080 | 119,864 | 208,435 |
Content and software development (Note 7) | 38,858 | 62,849 | 173,733 | 187,114 |
Closing balance for the period | $ 280,599 | $ 327,961 | $ 850,407 | $ 1,036,480 |
Related party transactions (Det
Related party transactions (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 $ / shares shares | Mar. 31, 2022 $ / shares shares | Sep. 30, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Mar. 31, 2023 $ / shares | Mar. 31, 2022 $ / shares | |
Related Party Transaction [Line Items] | ||||||
Number of options granted | 1,885,000 | 2,550,000 | ||||
Director and Officer [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related parties | $ | $ 80,008 | $ 80,874 | ||||
Director and Officer [Member] | Share-Based Payment Arrangement, Option [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Number of options granted | 400,000 | 900,000 | ||||
Shares issued, price per share | (per share) | $ 0.22 | $ 0.39 | $ 0.30 | $ 0.50 |
Schedule of Revenue By Geograph
Schedule of Revenue By Geographical Region (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 2,808,354 | $ 3,514,149 | $ 7,296,278 | $ 8,319,757 |
Western Europe [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 992,740 | 1,218,264 | 2,600,764 | 2,861,708 |
Central Eastern and Southern Europe [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 76,577 | 71,940 | 207,359 | 205,421 |
North America [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 1,617,720 | 1,935,278 | 4,010,185 | 4,174,694 |
Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 121,317 | 288,667 | 477,970 | 1,077,934 |
Advertising [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 2,492,058 | 3,410,874 | 6,525,572 | 8,024,079 |
Advertising [Member] | Western Europe [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 974,177 | 1,198,642 | 2,545,701 | 2,802,750 |
Advertising [Member] | Central Eastern and Southern Europe [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 76,570 | 71,871 | 207,326 | 205,048 |
Advertising [Member] | North America [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 1,364,838 | 1,879,709 | 3,431,340 | 4,030,597 |
Advertising [Member] | Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 76,473 | 260,652 | 341,205 | 985,684 |
Content [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 67,750 | 50,988 | 199,314 | 185,465 |
Content [Member] | Western Europe [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 18,563 | 19,622 | 55,063 | 58,958 |
Content [Member] | Central Eastern and Southern Europe [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 7 | 69 | 33 | 373 |
Content [Member] | North America [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 4,336 | 3,282 | 7,453 | 33,884 |
Content [Member] | Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 44,844 | 28,015 | 136,765 | 92,250 |
Programmatic Advertising [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 248,546 | 52,287 | 571,392 | 110,213 |
Programmatic Advertising [Member] | North America [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 248,546 | $ 52,287 | $ 571,392 | $ 110,213 |
Schedule of Equipment (Details)
Schedule of Equipment (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total equipment | $ 32,744 | $ 33,522 |
ANGUILLA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total equipment | 60 | |
CANADA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total equipment | 21,270 | 20,143 |
ISRAEL | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total equipment | 8,444 | 9,279 |
UNITED KINGDOM | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total equipment | $ 3,030 | $ 4,040 |
Concentrations (Details Narrati
Concentrations (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Concentration Risk [Line Items] | ||||
Total revenue | $ 2,808,354 | $ 3,514,149 | $ 7,296,278 | $ 8,319,757 |
Customer One [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue | 630,413 | 1,193,616 | ||
Customer Two [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Total revenue | $ 376,276 | 609,676 | ||
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, 2023 | Dec. 31, 2022 |
Product Information [Line Items] | ||
Cash and cash equivalents | $ 1,468,955 | $ 2,363,530 |
Cash, insured amount | 1,182,854 | 2,150,761 |
Accounts receivable | 3,218,082 | 7,400,282 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||
Product Information [Line Items] | ||
Accounts receivable | $ 630,414 | 1,921,602 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||
Product Information [Line Items] | ||
Accounts receivable | 1,061,177 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | ||
Product Information [Line Items] | ||
Accounts receivable | $ 920,736 |