Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 13, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | Creatd, Inc. | |
Trading Symbol | CRTD | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 13,848,057 | |
Amendment Flag | false | |
Entity Central Index Key | 0001357671 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-39500 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 87-0645394 | |
Entity Address, Address Line One | 2050 Center Avenue | |
Entity Address, Address Line Two | Suite 640 | |
Entity Address, City or Town | Fort Lee | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07024 | |
City Area Code | (201) | |
Local Phone Number | 258-3770 | |
Title of 12(b) Security | Common Stock, par value $0.001 | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash | $ 2,124,656 | $ 7,906,782 |
Accounts receivable, net | 284,419 | 90,355 |
Prepaid expenses and other current assets | 888,788 | 23,856 |
Total Current Assets | 3,297,863 | 8,020,993 |
Property and equipment, net | 60,412 | 56,258 |
Intangible assets | 1,493,864 | 960,611 |
Goodwill | 1,037,992 | 1,035,795 |
Deposits and other assets | 148,450 | 191,836 |
Marketable securities | 62,733 | |
Minority investment in business | 367,096 | 217,096 |
Operating lease right of use asset | 199,441 | 239,158 |
Total Assets | 6,605,118 | 10,784,480 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 2,952,353 | 2,638,688 |
Derivative liabilities | 436,295 | 42,231 |
Convertible Notes, net of debt discount and issuance costs | 67,048 | 897,516 |
Current portion of operating lease payable | 95,579 | 79,816 |
Note payable - related party, net of debt discount | 7,890 | |
Note payable, net of debt discount and issuance costs | 1,054,600 | 1,221,539 |
Deferred revenue | 208,517 | 88,637 |
Total Current Liabilities | 4,822,282 | 4,968,427 |
Non-current Liabilities: | ||
Note payable | 34,036 | 213,037 |
Convertible Notes | 2,099,400 | |
Operating lease payable | 102,231 | 157,820 |
Total Non-current Liabilities | 2,235,667 | 370,857 |
Total Liabilities | 7,057,949 | 5,339,284 |
Commitments and contingencies | ||
Stockholders’ Equity | ||
Series E Preferred stock, $0.001 par value, 1,048 and 7,738 shares issued and outstanding, respectively | 1 | 8 |
Common stock par value $0.001: 100,000,000 shares authorized; 11,857,675 issued and 11,852,018 outstanding as of June 30, 2021 and 8,736,378 issued and 8,727,028 outstanding as of December 31, 2020 | 11,858 | 8,737 |
Additional paid in capital | 87,131,333 | 77,505,013 |
Subscription receivable | (40,000) | |
Less: Treasury stock, 5,540 and 5,657 shares, respectively | (62,406) | (62,406) |
Accumulated deficit | (87,544,953) | (71,928,922) |
Accumulated other comprehensive income | (45,097) | (37,234) |
Total Creatd, Inc. Stockholders’ Equity | (509,264) | 5,445,196 |
Non-controlling interest in consolidated subsidiary | 56,433 | |
Total Stockholders' Deficit | (452,831) | 5,445,196 |
Total Liabilities and Stockholders’ Equity | $ 6,605,118 | $ 10,784,480 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 11,857,675 | 8,736,378 |
Common stock, shares outstanding | 11,852,018 | 8,727,028 |
Treasury stock, shares | 5,657 | 5,657 |
Series E Preferred Stock | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 1,048 | 7,738 |
Preferred stock, shares outstanding | 1,048 | 7,738 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Net revenue | $ 970,857 | $ 322,540 | $ 1,714,770 | $ 615,682 |
Research and development | 56,598 | 35,705 | 385,450 | 171,275 |
Marketing | 4,194,524 | 422,733 | 6,237,179 | 855,564 |
Stock based compensation | 1,940,250 | 1,602,649 | 3,510,489 | 1,994,792 |
General and administrative | 3,160,280 | 1,796,705 | 5,908,444 | 2,955,252 |
Total operating expenses | 9,351,652 | 3,857,792 | 16,041,562 | 5,976,883 |
Loss from operations | (8,380,795) | (3,535,252) | (14,326,792) | (5,361,201) |
Other income | 14,229 | 77,785 | ||
Interest expense | (60,760) | (491,206) | (259,431) | (866,736) |
Accretion of debt discount and issuance cost | (354,199) | (140,274) | (851,364) | (327,221) |
Derivative expense | (100,502) | |||
Change In derivative liability | (65,442) | (262,831) | ||
Impairment of investment | (62,733) | (62,733) | ||
Gain (loss) on settlement of vendor liabilities | 92,909 | (126,087) | ||
Gain on marketable securities | 10,042 | 10,042 | ||
Gain (loss) on extinguishment of debt | 82,431 | 470 | 286,009 | (534,570) |
Gain on Forgiveness of debt | 279,022 | 279,022 | ||
Other expenses, net | (181,681) | (606,739) | (878,921) | (1,766,787) |
Loss before income tax provision | (8,562,476) | (4,141,991) | (15,205,713) | (7,127,988) |
Income tax provision | ||||
Net loss | (8,562,476) | (4,141,991) | (15,205,713) | (7,127,988) |
Non-controlling interest in net loss | 432 | 432 | ||
Net Loss attributable to Creatd, Inc. | (8,562,044) | (4,141,991) | (15,205,281) | (7,127,988) |
Deemed dividend | (410,750) | (410,750) | ||
Net loss attributable to common shareholders | (8,972,794) | (4,141,991) | (15,616,031) | (7,127,988) |
Net loss | (8,562,476) | (4,141,991) | (15,205,713) | (7,127,988) |
Currency translation gain (loss) | (552) | (19,291) | (7,863) | (28,530) |
Comprehensive loss | $ (8,563,028) | $ (4,161,282) | $ (15,213,576) | $ (7,156,518) |
Basic and diluted loss per share (in Dollars per share) | $ (0.81) | $ (1.30) | $ (1.49) | $ (2.28) |
Weighted average number of common shares outstanding (in Shares) | 11,081,354 | 3,194,321 | 10,465,815 | 3,122,926 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Stockholders’ Equity (Deficit) (Unaudited) - USD ($) | Series EPreferred Stock | Common Stock | Treasury stock | Additional Paid In Capital | Subscription Receivable | Other Comprehensive Income | Non-Controlling Interest | Accumulated Deficit | Total |
Balance at Dec. 31, 2019 | $ 3,060 | $ (367,174) | $ 36,391,818 | $ (5,995) | $ (44,580,437) | $ (8,558,728) | |||
Balance (in Shares) at Dec. 31, 2019 | 3,059,646 | 159,850 | |||||||
Shares Issued with note payable | $ 8 | 58,928 | 58,936 | ||||||
Shares Issued with note payable (in Shares) | 8,107 | ||||||||
Shares issued for services | $ 50 | 584,948 | 584,998 | ||||||
Shares issued for services (in Shares) | 50,000 | ||||||||
Coversion of warrants to stock | $ 7 | (4,235) | (4,228) | ||||||
Coversion of warrants to stock (in Shares) | 7,239 | ||||||||
Conversion of options to stock | $ 229 | 1,405,435 | 1,405,664 | ||||||
Conversion of options to stock (in Shares) | 229,491 | ||||||||
Stock warrants issued with note payable | 752,138 | 752,138 | |||||||
Cancellation of Treasury stock | $ (51) | $ 349,030 | (348,979) | ||||||
Cancellation of Treasury stock (in Shares) | (50,650) | (151,951) | |||||||
Purchase of treasury stock | $ (42,018) | (42,018) | |||||||
Purchase of treasury stock (in Shares) | 14,484 | ||||||||
Shares issued to settle vendor liabilities | $ 24 | 235,611 | 235,635 | ||||||
Shares issued to settle vendor liabilities (in Shares) | 23,565 | ||||||||
Foreign currency translation adjustments | (28,530) | (28,530) | |||||||
Net loss | (7,127,988) | (7,127,988) | |||||||
Balance at Jun. 30, 2020 | $ 3,327 | $ (60,162) | 39,075,664 | (34,525) | (51,708,425) | (12,724,121) | |||
Balance (in Shares) at Jun. 30, 2020 | 3,327,398 | 22,383 | |||||||
Balance at Mar. 31, 2020 | $ 3,141 | $ (367,174) | 37,754,638 | (15,234) | (47,566,434) | (10,191,063) | |||
Balance (in Shares) at Mar. 31, 2020 | 3,140,894 | 159,850 | |||||||
Shares Issued with note payable | $ 5 | 27,292 | 27,297 | ||||||
Shares Issued with note payable (in Shares) | 5,424 | ||||||||
Coversion of warrants to stock | $ 2 | (10,002) | (10,000) | ||||||
Coversion of warrants to stock (in Shares) | 2,239 | ||||||||
Conversion of options to stock | $ 229 | 1,405,435 | 1,405,664 | ||||||
Conversion of options to stock (in Shares) | 229,491 | ||||||||
Stock warrants issued with note payable | 247,281 | 247,281 | |||||||
Cancellation of Treasury stock | $ (51) | $ 349,030 | (348,979) | ||||||
Cancellation of Treasury stock (in Shares) | (50,650) | (151,951) | |||||||
Purchase of treasury stock | $ (42,018) | (42,018) | |||||||
Purchase of treasury stock (in Shares) | 14,484 | ||||||||
Foreign currency translation adjustments | (19,291) | (19,291) | |||||||
Net loss | (4,141,991) | (4,141,991) | |||||||
Balance at Jun. 30, 2020 | $ 3,327 | $ (60,162) | 39,075,664 | (34,525) | (51,708,425) | (12,724,121) | |||
Balance (in Shares) at Jun. 30, 2020 | 3,327,398 | 22,383 | |||||||
Balance at Dec. 31, 2020 | $ 8 | $ 8,737 | $ (62,406) | 77,505,013 | $ (40,000) | (37,234) | (71,928,922) | 5,445,196 | |
Balance (in Shares) at Dec. 31, 2020 | 7,738 | 8,736,378 | 5,657 | ||||||
Stock based compensation | $ 201 | 3,410,380 | 3,410,581 | ||||||
Stock based compensation (in Shares) | 201,311 | ||||||||
Stock warrants issued with note payable | 1,601,451 | 1,601,451 | |||||||
Cash received for common | $ 750 | 2,212,750 | 2,213,500 | ||||||
Cash received for common (in Shares) | 750,000 | ||||||||
Cash received for preferred series E and warrants | (4,225) | 40,000 | 35,775 | ||||||
Cash received for preferred series E and warrants (in Shares) | 40 | ||||||||
Shares issued for prepaid services | $ 50 | 226,450 | 226,500 | ||||||
Shares issued for prepaid services (in Shares) | 50,000 | ||||||||
Shares issued to settle vendor liabilities | $ 45 | 181,341 | 181,386 | ||||||
Shares issued to settle vendor liabilities (in Shares) | 44,895 | ||||||||
Common stock issued upon conversion of notes payable | $ 121 | 316,699 | 316,820 | ||||||
Common stock issued upon conversion of notes payable (in Shares) | 120,959 | ||||||||
Exercise of warrants to stock | $ 321 | 1,272,350 | 1,272,671 | ||||||
Exercise of warrants to stock (in Shares) | 320,693 | ||||||||
Conversion of preferred series E to stock | $ (7) | $ 1,633 | (1,626) | ||||||
Conversion of preferred series E to stock (in Shares) | (6,730) | 1,633,439 | |||||||
Foreign currency translation adjustments | (7,863) | (7,863) | |||||||
Non-controlling interest in consolidated subsidiary from acquisition | 56,865 | 56,865 | |||||||
Dividends | 410,750 | (410,750) | |||||||
Net loss | (432) | (15,205,281) | (15,205,713) | ||||||
Balance at Jun. 30, 2021 | $ 1 | $ 11,858 | $ (62,406) | 87,131,333 | (45,097) | 56,433 | (87,544,953) | (452,831) | |
Balance (in Shares) at Jun. 30, 2021 | 1,048 | 11,857,675 | 5,657 | ||||||
Balance at Mar. 31, 2021 | $ 1 | $ 10,925 | $ (62,406) | 80,633,380 | (78,572,159) | (44,545) | 1,965,196 | ||
Balance (in Shares) at Mar. 31, 2021 | 1,088 | 10,925,026 | 5,657 | ||||||
Stock based compensation | $ 89 | 2,064,575 | 2,064,664 | ||||||
Stock based compensation (in Shares) | 89,050 | ||||||||
Coversion of warrants to stock | $ 18 | (18) | |||||||
Coversion of warrants to stock (in Shares) | 18,259 | ||||||||
Stock warrants issued with note payable | 1,601,452 | 1,601,452 | |||||||
Cash received for common | $ 750 | 2,212,750 | 2,213,500 | ||||||
Cash received for common (in Shares) | 750,000 | ||||||||
Shares issued for prepaid services | $ 10 | 34,490 | 34,500 | ||||||
Shares issued for prepaid services (in Shares) | 10,000 | ||||||||
Common stock issued upon conversion of notes payable | $ 56 | 173,964 | 174,020 | ||||||
Common stock issued upon conversion of notes payable (in Shares) | 55,631 | ||||||||
Conversion of preferred series E to stock | $ 10 | (10) | |||||||
Conversion of preferred series E to stock (in Shares) | (40) | 9,709 | |||||||
Foreign currency translation adjustments | (552) | (552) | |||||||
Non-controlling interest in consolidated subsidiary from acquisition | 56,865 | 56,865 | |||||||
Dividends | 410,750 | (410,750) | |||||||
Net loss | (8,562,044) | (432) | (8,562,476) | ||||||
Balance at Jun. 30, 2021 | $ 1 | $ 11,858 | $ (62,406) | $ 87,131,333 | $ (45,097) | $ 56,433 | $ (87,544,953) | $ (452,831) | |
Balance (in Shares) at Jun. 30, 2021 | 1,048 | 11,857,675 | 5,657 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (15,205,713) | $ (7,127,988) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 91,042 | 76,939 |
Impairment of investment | 62,733 | |
Accretion of debt discount and issuance cost | 851,364 | 327,221 |
Share-based compensation | 3,510,489 | 1,994,792 |
Bad debt expense | 34,737 | |
Gain on marketable securities | (10,042) | |
Gain on Forgiveness of debt | (279,022) | |
(Gain) loss on settlement of vendor liabilities | (92,909) | 126,087 |
Change in fair value of derivative liability | 262,831 | |
Derivative Expense | 100,502 | |
(Gain) loss on extinguishment of debt | (286,009) | 534,570 |
Non cash lease expense | 39,717 | 34,969 |
Changes in operating assets and liabilities: | ||
Prepaid expenses | (742,565) | |
Accounts receivable | (186,420) | (60,350) |
Deposits and other assets | 63,356 | (2,137) |
Deferred revenue | 119,209 | 5,268 |
Accounts payable and accrued expenses | 734,643 | 1,213,615 |
Operating lease liability | (39,826) | (33,064) |
Net Cash Used In Operating Activities | (10,996,578) | (2,885,383) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Cash paid for property and equipment | (25,650) | (6,339) |
Deposits | (100,000) | (166,283) |
Cash paid for minority investment in business | (150,000) | (30,000) |
Cash consideration for acquisition, net | (469,768) | |
Net Cash Used In Investing Activities | (745,418) | (202,622) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from the exercise of warrant | 1,312,672 | |
Net proceeds from issuance of notes | 199,788 | 1,349,094 |
Repayment of notes | (276,838) | (58,226) |
Proceeds from issuance of demand loan | 250,000 | |
Proceeds from issuance of convertible note | 3,460,491 | 1,920,460 |
Repayment of convertible notes | (941,880) | (75,000) |
Proceeds from issuance of note payable - related party | 152,989 | |
Repayment of note payable - related party | (327,773) | |
Proceeds from issuance of common stock and warrants | 2,213,500 | |
Purchase of treasury stock and warrants | (62,018) | |
Net Cash Provided By Financing Activities | 5,967,733 | 3,149,526 |
Effect of exchange rate changes on cash | (7,863) | (28,530) |
Net Change in Cash | (5,782,126) | 32,991 |
Cash - Beginning of Period | 7,906,782 | 11,637 |
Cash - End of period | 2,124,656 | 44,628 |
Cash Paid During the Period for: | ||
Income taxes | ||
Interest | 55,276 | 55,859 |
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Settlement of vendor liabilities | 168,667 | 109,548 |
Warrants issued with debt | 1,601,452 | 752,136 |
Shares issued with debt | 58,935 | |
Issuance of common stock for prepaid services | 226,500 | 585,000 |
Cancellation of Treasury stock | 349,030 | |
Conversion of note payable and interest into convertible notes | 385,000 | |
Conversion of Demand loan into notes payable | 150,000 | |
Deferred offering costs | 4,225 | |
Common stock and warrants issued upon conversion of notes payable | $ 316,820 |
Organization and Operations
Organization and Operations | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization and Operations | Note 1 – Organization and Operations Creatd, Inc., formerly Jerrick Media Holdings, Inc. (“we,” “us,” the “Company,” or “Creatd”), is a technology company focused on the development of digital communities, marketing branded digital content, and e-commerce opportunities. Creatd’s content distribution platform, Vocal, delivers a robust long-form, digital publishing platform organized into highly engaged niche-communities capable of hosting all forms of rich media content. Through Creatd’s proprietary algorithm dynamics, Vocal enhances the visibility of content and maximizes viewership, providing advertisers access to target markets that most closely match their interests. The Company was originally incorporated under the laws of the State of Nevada on December 30, 1999 under the name LILM, Inc. The Company changed its name on December 3, 2013 to Great Plains Holdings, Inc. as part of its plan to diversify its business. On February 5, 2016 (the “Closing Date”), GTPH, GPH Merger Sub, Inc., a Nevada corporation and wholly-owned subsidiary of GTPH (“Merger Sub”), and Jerrick Ventures, Inc., a privately-held Nevada corporation headquartered in New Jersey (“Jerrick”), entered into an Agreement and Plan of Merger (the “Merger”) pursuant to which the Merger Sub was merged with and into Jerrick, with Jerrick surviving as a wholly-owned subsidiary of GTPH (the “Merger”). GTPH acquired, pursuant to the Merger, all of the outstanding capital stock of Jerrick in exchange for issuing Jerrick’s shareholders (the “Jerrick Shareholders”), pro-rata, a total of 475,000 shares of GTPH’s common stock. In connection therewith, GTPH acquired 33,415 shares of Jerrick’s Series A Convertible Preferred Stock (the “Jerrick Series A Preferred”) and 8,064 shares of Series B Convertible Preferred Stock (the “Jerrick Series B Preferred”). In connection with the Merger, on the Closing Date, GTPH and Kent Campbell entered into a Spin-Off Agreement (the “Spin-Off Agreement”), pursuant to which Mr. Campbell purchased from GTPH (i) all of GTPH’s interest in Ashland Holdings, LLC, a Florida limited liability company, and (ii) all of GTPH’s interest in Lil Marc, Inc., a Utah corporation, in exchange for the cancellation of 39,091 shares of GTPH’s Common Stock held by Mr. Campbell. In addition, Mr. Campbell assumed all debts, obligations and liabilities of GTPH, including any existing prior to the Merger, pursuant to the terms and conditions of the Spin-Off Agreement. Upon closing of the Merger on February 5, 2016, the Company changed its business plan to that of Jerrick. Effective February 28, 2016, GTPH entered into an Agreement and Plan of Merger (the “Statutory Merger Agreement”) with Jerrick, pursuant to which GTPH became the parent company of Jerrick Ventures, LLC, a wholly-owned operating subsidiary of Jerrick (the “Statutory Merger”) and GTPH changed its name to Jerrick Media Holdings, Inc. to better reflect its new business strategy. On September 11, 2019, the Company acquired 100% of the membership interests of Seller’s Choice, LLC, a New Jersey limited liability company (“Seller’s Choice”). Seller’s Choice is a digital e-commerce agency based in New Jersey (see Note 4). On September 9, 2020, the Company filed a certificate of amendment with the Secretary of State of the State of Nevada to change our name to “Creatd, Inc.”, which became effective on September 10, 2020. On June 4, 2021, the Company acquired 89% of the membership interests of Plant Camp, LLC, a Delaware limited liability company (“Plant Camp”). Plant Camp is a CPG company that creates healthy upgrades to kid-friendly foods. |
Significant Accounting Policies
Significant Accounting Policies and Practices | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Practices | Note 2 – Significant Accounting Policies and Practices Management of the Company is responsible for the selection and use of appropriate accounting policies and the appropriateness of accounting policies and their application. Critical accounting policies and practices are those that are both most important to the portrayal of the Company’s financial condition and results and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. The Company’s significant and critical accounting policies and practices are disclosed below as required by the accounting principles generally accepted in the United States of America. Basis of Presentation The Company’s condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and following the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These interim financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or any other interim period or for any other future year. These unaudited condensed financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2020, included in the Company’s 2020 Annual Report on Form 10-K filed with the SEC. The balance sheet as of December 31, 2020 has been derived from audited financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. Use of Estimates and Critical Accounting Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Principles of consolidation The Company consolidates all majority-owned subsidiaries, if any, in which the parent’s power to control exists. As of June 30, 2021, the Company’s consolidated subsidiaries and/or entities are as follows: Name of combined affiliate State or other Company Jerrick Ventures LLC Delaware 100 % Abacus Tech Pty Ltd Australia 100 % Seller’s Choice, LLC New Jersey 100 % Recreatd, LLC Delaware 100 % Give, LLC Delaware 100 % Creatd Partners LLC Delaware 100 % Plant Camp LLC Delaware 89 % Sci-Fi Shop, LLC Delaware 100 % OG Collection LLC Delaware 100 % VMENA LLC Delaware 100 % Vocal For Brands, LLC Delaware 100 % Vocal Ventures LLC Delaware 100 % What to Buy, LLC Delaware 100 % All inter-company balances and transactions have been eliminated. Fair Value of Financial Instruments The fair value measurement disclosures are grouped into three levels based on valuation factors: ● Level 1 – quoted prices in active markets for identical investments ● Level 2 – other significant observable inputs (including quoted prices for similar investments and market corroborated inputs) ● Level 3 – significant unobservable inputs (including our own assumptions in determining the fair value of investments) The Company’s Level 1 assets/liabilities include cash, accounts receivable, marketable trading securities, accounts payable, prepaid and other current assets, line of credit and due to related parties. Management believes the estimated fair value of these accounts at June 30, 2021 approximate their carrying value as reflected in the balance sheets due to the short-term nature of these instruments or the use of market interest rates for debt instruments. The Company’s Level 2 assets/liabilities include certain of the Company’s notes payable and capital lease obligations. Their carrying value approximates their fair values based upon a comparison of the interest rate and terms of such debt given the level of risk to the rates and terms of similar debt currently available to the Company in the marketplace. The Company’s Level 3 assets/liabilities include goodwill, intangible assets, marketable debt securities, equity investments at cost, and derivative liabilities, when they are recorded at fair value due to an impairment charge. Inputs to determine fair value are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Unobservable inputs used in the models are significant to the fair values of the assets and liabilities. The following table provides a summary of the relevant assets and liabilities that are measured at fair value on recurring basis: Fair Value Measurements as of June 30, 2021 Total Quoted Quoted Significant Assets: Marketable securities - debt securities $ - $ - $ - $ - Total assets $ - $ - $ - $ - Liabilities: Derivative liabilities $ 436,295 $ - $ - $ 436,295 Total Liabilities 436,295 $ - $ - $ 436,295 The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on recurring basis as of June 30, 2021: Fair Value Valuation Methodology Unobservable Inputs Marketable securities - debt securities $ - Discounted cash flow analysis Expected cash flows from the investment Derivative liabilities $ 436,295 Monte Carlo simulations and Binomial model Risk free rate Expected volatility; Drift rate The following table provides a summary of the relevant assets that are measured at fair value on non-recurring basis: Fair Value Measurements as of June 30, 2021 Total Quoted Quoted Significant Assets: Equity investments, at cost $ 367,096 $ - $ - $ 367,096 Total assets $ 367,096 $ - $ - $ 367,096 The following table shows the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on non-recurring basis as of June 30, 2021: Fair Value Valuation Methodology Unobservable Inputs Equity investments, at cost $ 367,096 Qualitative assessment per ASC 321-10-35 Qualitative factors The Company valued the initial value of debt securities, which are investments in convertible notes receivable, by assessing the separate values of the debt and equity components for similar instruments convertible into private company equity (Level 3). The investment was initially measured at cost, which was determined to approximate fair value due to the lack of marketability of the conversion shares underlying these convertible instruments and the expected recoverability of the note principal. The key assumption affecting the level 3 fair values would be collectability of the notes. The Company monitors for impairment indicators at each balance sheet date. Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. At times, cash balances may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurable limits. The Company has never experienced any losses related to these balances. As of June 30, 2021, and December 31, 2020, cash amounts in excess of $250,000 were not fully insured. The uninsured cash balance as of June 30, 2021 was approximately $1.9 million. The Company does not believe it is exposed to significant credit risk on cash and cash equivalents. Long-lived Assets Including Goodwill and Other Acquired Intangibles Assets We evaluate the recoverability of property and equipment and acquired finite-lived intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate from the use and eventual disposition. If such review indicates that the carrying amount of property and equipment and intangible assets is not recoverable, the carrying amount of such assets is reduced to fair value. We have not recorded any impairment charges for these type of assets during the six months ended June 30, 2021. Acquired finite-lived intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets. We routinely review the remaining estimated useful lives of property and equipment and finite-lived intangible assets. If we change the estimated useful life assumption for any asset, the remaining unamortized balance is amortized or depreciated over the revised estimated useful life. During the year ended December 31, 2020 the Company completed its annual impairment test of goodwill. The Company performed the qualitative assessment as permitted by ASC 350-20 and determined that the fair value of the reporting unit was more likely than not equal or greater than the carrying value, including Goodwill. Based on completion of this annual impairment test, no impairment was indicated. Investments Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Debt securities not classified as held-to-maturity or as trading are classified as available-for-sale, and are carried at fair market value, with the unrealized gains and losses, net of tax, included in the determination of comprehensive income and reported in stockholders’ equity. The Company accounts for its investments in available-for-sale debt securities, in accordance with sub-topic 320-10 of the FASB ASC (“Sub-Topic 320-10”). Accrued interest on these securities is included in fair value and amortized cost. Pursuant to Paragraph 320-10-35, investments in debt securities that are classified as available for sale shall be measured subsequently at fair value in the statement of financial position. Unrealized holding gains and losses for available-for-sale securities (including those classified as current assets) shall be excluded from earnings and reported in other comprehensive income until realized. The Company follows FASB ASC 320-10-35 to assess whether an investment in debt securities is impaired in each reporting period. An investment in debt securities is impaired if the fair value of the investment is less than its amortized cost. If the Company intends to sell the debt security (that is, it has decided to sell the security), an other-than-temporary impairment shall be considered to have occurred. If the Company more likely than not will be required to sell the security before recovery of its amortized cost basis or it otherwise does not expect to recover the entire amortized cost basis of the security, an other-than-temporary impairment shall be considered to have occurred. The Company considers the expected cash flows from the investment based on reasonable and supportable forecasts as well as several other factors to estimate whether a credit loss exists. If the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the other-than-temporary impairment shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. The following table sets forth a summary of the changes in marketable securities - available-for-sale debt securities that are measured at fair value on a recurring basis: For the Total Beginning of period $ 62,733 Purchase of marketable securities - Interest due at maturity - Other than temporary impairment (62,733 ) Conversion of marketable securities - June 30, 2021 $ - We invest in debt securities. Our investments in debt securities are subject to interest rate risk. To minimize the exposure due to an adverse shift in interest rates, we invest in securities with maturities of two years or less and maintain a weighted average maturity of one year or less. As of June 30, 2021, all of our investments had maturities between one and three years. The marketable debt security investments are evaluated for impairment if events or circumstances arise that indicate that the carrying amount of such assets may not be recoverable. During the three and six months ended June 30, 2021 the Company recognized a $62,733 impairment of the debt security. The following table sets forth a summary of the changes in equity investments, at cost that are measured at fair value on a non-recurring basis: For the For the Total Total Beginning of period $ 317,096 $ 217,096 Purchase of equity investments 50,000 150,000 June 30, 2021 $ 367,096 $ 367,096 The Company has elected to measure its equity securities without a readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. An election to measure an equity security in accordance with this paragraph shall be made for each investment separately. The Company performed a qualitative assessment considering impairment indicators to evaluate whether these investments were impaired. Impairment indicators that the Company considered included the following: a) a significant deterioration in the earnings performance, credit rating, asset quality or business prospects of the investee; b) a significant adverse change in the regulatory, economic or technology environment of the investee; c) a significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates; d) a bona fide offer to purchase or an offer by the investee to sell the investment; e) factors that raise significant concerns about the investee’s ability to continue as a going concern. Commitments and Contingencies The Company follows subtopic 450-20 of the FASB ASC to report accounting for contingencies. Certain conditions may exist as of the date the condensed consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s condensed consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Foreign Currency Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at our Consolidated Balance Sheet dates. Results of operations and cash flows are translated using the average exchange rates throughout the periods. The effect of exchange rate fluctuations on the translation of assets and liabilities is included as a component of stockholders’ equity in accumulated other comprehensive income. Gains and losses from foreign currency transactions, which are included in operating expenses, have not been significant in any period presented. Derivative Liability The Company evaluates its debt and equity issuances to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with paragraph 815-10-05-4 and Section 815-40-25 of the FASB Accounting Standards Codification. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as either an asset or a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the consolidated statement of operations as other income or expense. Upon conversion, exercise or cancellation of a derivative instrument, the instrument is marked to fair value at the date of conversion, exercise or cancellation and then the related fair value is reclassified to equity. In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Equity instruments that are initially classified as equity that become subject to reclassification are reclassified to liability at the fair value of the instrument on the reclassification date. Derivative instrument liabilities will be classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument is expected within 12 months of the balance sheet date. The Company adopted Section 815-40-15 of the FASB Accounting Standards Codification (“Section 815-40-15”) to determine whether an instrument (or an embedded feature) is indexed to the Company’s own stock. Section 815-40-15 provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instrument’s contingent exercise and settlement provisions. The Company changed its method of accounting for the debt and warrants through the early adoption of ASU 2017-11 during the three months ended December 31, 2017, on a retrospective basis. The Company utilizes a Monte Carlo simulation model for the make whole feature and a binomial option model for convertible notes that have an option to convert at a variable number of shares to compute the fair value of the derivative and to mark to market the fair value of the derivative at each balance sheet date. The inputs utilized in the application of the Monte Carlo model included a starting stock price, an expected term of each debenture remaining from the valuation date to maturity, an estimated volatility, drift, and a risk-free rate. The inputs utilized in the application of the Binomial model included a stock price on valuation date, an expected term of each debenture remaining from the valuation date to maturity, an estimated volatility, and a risk-free rate. The Company records the change in the fair value of the derivative as other income or expense in the consolidated statements of operations. Revenue Recognition Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We determine revenue recognition through the following steps: ● identification of the contract, or contracts, with a customer; ● identification of the performance obligations in the contract; ● determination of the transaction price. The transaction price for any given subscriber could decrease based on any payments made to that subscriber. A subscriber may be eligible for payment through one or more of the monetization features offered to Vocal creators, including earnings through reads (on a cost per mile basis) and cash prizes offered to Challenge winners; ● allocation of the transaction price to the performance obligations in the contract; and ● recognition of revenue when, or as, we satisfy a performance obligation. Revenue disaggregated by revenue source for the three and six months ended June 30, 2021 and 2020 consists of the following: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Agency (Managed Services + Branded Content) $ 488,836 $ 258,834 $ 917,136 $ 507,085 Platform (Creator Subscriptions) 451,965 54,972 758,867 90,934 Ecommerce 5,526 - 5,526 - Affiliate Sales 7,798 8,195 15,806 16,344 Other Revenue 16,732 539 17,435 1,319 $ 970,857 $ 322,540 $ 1,714,770 $ 615,682 Timing of revenue recognition for the three and six months ended June 30, 2021 and 2020 consists of the following: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Products and services transferred over time $ 940,801 $ 313,806 $ 1,676,003 $ 598,019 Products transferred at a point in time 30,056 8,734 38,767 17,663 $ 970,857 $ 322,540 $ 1,714,770 $ 615,682 Agency Revenue Managed Services The Company provides Studio/Agency Service offerings to business-to-business (B2B) and business-to-consumer (B2C) product and service brands which encompasses a full range of digital marketing and e-commerce solutions. The Company’s services include the setup and ongoing management of clients’ websites, Amazon and Shopify storefronts and listings, social media pages, search engine marketing, and other various tools and sales channels utilized by e-commerce sellers for sales and growth optimization. Contracts are broken into three categories: Partners, Monthly Services, and Projects. Contract amounts for Partner and Monthly Services clients range from approximately $500-$7,500 per month while Project amounts vary depending on the scope of work. Partner and Monthly clients are billed monthly for the work completed within that month. Partner Clients may or may not have an additional billing component referred to as Sales Performance Fee, which is a fee based upon a previously agreed upon percentage point of the client’s total sales for the month. Some Partners may also have projects within their contracts that get billed and recognized as agreed upon project milestones are achieved. Revenue is recognized over time as service obligations and milestones in the contract are met. Branded Content Branded content represents the revenue recognized from the Company’s obligation to create and publish branded articles for clients on the Vocal platform and promote said stories, tracking engagement for the client. The performance obligation is satisfied when the Company successfully publishes the articles on its platform and meets any required promotional milestones as per the contract. The revenue is recognized over time as the services are performed and any required milestones are met. Below are the significant components of a typical agreement pertaining to branded content revenue: ● The Company collects fixed fees ranging from $10,000 to $110,000. ● The articles are created and published within three months of the signed agreement, or as previously negotiated with the client. ● The articles are promoted per the contract and engagement reports are provided to the client. ● Most billing for contracts occurs 50% at signing and 50% upon completion of the services, with net payment terms varying per client. ● Most contracts include provisions for clients to acquire content rights at the end of the campaign for a flat fee. Platform Revenue Creator Subscriptions Vocal+ is a premium subscription offering for Vocal creators. In addition to joining for free, Vocal creators now have the option to sign up for a Vocal+ membership for either $9.99 monthly or $99 annually, though these amounts are occasionally subject to promotional discounts. Vocal+ subscribers receive access to value-added features such as increased rate of cost per mille (thousand) (“CPM”) monetization, a decreased minimum withdrawal threshold, a discount on platform processing fees, member badges for their profiles, access to exclusive Vocal+ Challenges, and early access to new Vocal features. Subscription revenues stem from both monthly and annual subscriptions, the latter of which is amortized over a twelve-month period. Any customer payments received are recognized over the subscription period, with any payments received in advance being deferred until they are earned. The transaction price for any given subscriber could decrease based on any payments made to that subscriber. A subscriber may be eligible for payment through one or more of the monetization features offered to Vocal creators, including earnings through reads (on a cost per mille basis) and cash prizes offered to Challenge winners. Estimates are utilized for payments made for earnings through reads, by establishing the lifetime a subscriber has had a Vocal account, determining the percentage of that lifetime that the subscriber has been a paying customer, and applying that percentage to payments for earnings through reads in the relevant reporting period. Affiliate Sales Revenue Affiliate sales represents the commission the Company receives when a purchase is made through affiliate links placed within content hosted on the Vocal platform. Affiliate revenue is earned on a “click through” basis, upon referring visitors, via said links, to an affiliate’s site and having them complete a specific outcome, most commonly a product purchase. The Company uses multiple affiliate platforms, such as Skimlinks, Amazon, and Tune, to form and maintain thousands of vendor relationships. Each vendor establishes their own commission percentage, which typically range from 2-20%. The revenue is recognized upon receipt as reliable estimates could not be made. E-Commerce Revenue The Company generates revenue through the sale of consumer products through its e-commerce distribution channels. The Company satisfies its performance obligation upon receipt of product by its customers. Deferred Revenue Deferred revenue consists of billings and payments from clients in advance of revenue recognition. As of June 30, 2021, and December 31, 2020, the Company had deferred revenue of $208,517 and $88,637, respectively. Accounts Receivable and Allowances Accounts receivable are recorded and carried when the Company has performed the work in accordance with managed services, project, partner, consulting and branded content agreements. For example, we bill a managed service client monthly when we have updated their Amazon store, modified SEO or completed the other services listed in the agreement. For projects and branded content, we will bill the client and record the receivable once milestones are reached that are set in the agreement. We make estimates for the allowance for doubtful accounts and allowance for unbilled receivables based upon our assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, and other factors that may affect our ability to collect from customers. During the six months ended June 30, 2021, the Company recorded $0 as a bad debt expense. As of June 30, 2021, and December 31, 2020, the Company has an allowance for doubtful accounts of $76,340 and $80,509, respectively. Stock-Based Compensation The Company recognizes compensation expense for all equity–based payments granted in accordance with Accounting Standards Codification (“ASC”) 718 “Compensation – Stock Compensation”. Restricted stock awards are granted at the discretion of the Company. These awards are restricted as to the transfer of ownership and generally vest over the requisite service periods. The fair value of an option award is estimated on the date of grant using the Black–Scholes option valuation model. The Black–Scholes option valuation model requires the development of assumptions that are inputs into the model. These assumptions are the value of the underlying share, the expected stock volatility, the risk–free interest rate, the expected life of the option, the dividend yield on the underlying stock and the expected forfeiture rate. Expected volatility is benchmarked against similar companies in a similar industry over the expected option life and other appropriate factors. Risk–free interest rates are calculated based on continuously compounded risk–free rates for the appropriate term. The dividend yield is assumed to be zero as the Company has never paid or declared any cash dividends on its Common stock and does not intend to pay dividends on its Common stock in the foreseeable future. The expected forfeiture rate is estimated based on management’s best estimate. Determining the appropriate fair value model and calculating the fair value of equity–based payment awards requires the input of the subjective assumptions described above. The assumptions used in calculating the fair value of equity–based payment awards represent management’s best estimates, which involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and the Company uses different assumptions, our equity–based compensation could be materially different in the future. The Company issues awards of equity instruments, such as stock options and restricted stock units, to employees and certain non-employee directors. Compensation expense related to these awards is based on the fair value of the underlying stock on the award date and is amortized over the service period, defined as the vesting period, using the cliff straight-line method. The vesting period is generally one to three years. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock units. Compensation expense is reduced for actual forfeitures as they occur. Loss Per Share Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods when losses are reported, which is the case for the three and six months ended June 30, 2021 and 2020 presented in these condensed consolidated financial statements, the weighted-average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. |
Going Concern
Going Concern | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | Note 3 – Going Concern The Company’s condensed consolidated financial statements have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the condensed consolidated financial statements, as of June 30, 2021, the Company had an accumulated deficit of $87.5 million, a net loss of $15.2 million and net cash used in operating activities of $11 million for the reporting period then ended. The Company is in default on debentures as of the date of this filing. These factors raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. On January 30, 2020, the World Health Organization declared the COVID-19 novel coronavirus outbreak a “Public Health Emergency of International Concern” and on March 10, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread of the coronavirus include restrictions on travel, and quarantines in certain areas, and forced closures for certain types of public places and businesses. The COVID-19 coronavirus and actions taken to mitigate it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, including the geographical area in which the Company operates. While it is unknown how long these conditions will last and what the complete financial impact will be to the Company, capital raising efforts and our operations may be negatively affected. The Company is attempting to further implement its business plan and generate sufficient revenues; however, its cash position may not be sufficient to support its daily operations. While the Company believes in the viability of its strategy to further implement its business plan and generate sufficient revenues and in its ability to raise additional funds by way of a public or private offering of its debt or equity securities, there can be no assurance that it will be able to do so on reasonable terms, or at all. The ability of the Company to continue as a going concern is dependent upon its ability to further implement its business plan and generate sufficient revenues and its ability to raise additional funds by way of a public or private offering. The condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Equity Investments, at Cost
Equity Investments, at Cost | 6 Months Ended |
Jun. 30, 2021 | |
Investment Holdings [Abstract] | |
Equity investments, at cost | Note 4 – Equity investments, at cost The Company has elected to measure its equity securities without a readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. An election to measure an equity security in accordance with this paragraph shall be made for each investment separately. The Company performed a qualitative assessment considering impairment indicators to evaluate whether these investments were impaired. Impairment indicators that the Company considered included the following: a) a significant deterioration in the earnings performance, credit rating, asset quality or business prospects of the investee; b) a significant adverse change in the regulatory, economic or technology environment of the investee; c) a significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates; d) a bona fide offer to purchase or an offer by the investee to sell the investment; e) factors that raise significant concerns about the investee’s ability to continue as a going concern. On October 2, 2020, the Company converted $102,096 of its marketable debt security into 119,355 shares of preferred stock or a 1.3% equity investment in a private company. On October 23, 2020, the Company entered into an equity interest purchase agreement whereas the Company purchased 3.8% ownership of a private company for $115,000. On February 17, 2021, the Company entered into a membership interest purchase agreement whereas the Company purchased another 3.3% ownership of a private company for $100,000. On May 21, 2021, the Company entered into a common stock purchase agreement whereas the Company purchased 10.0% ownership of a private company for $50,000. On May 27, 2021, the Company made a deposit of $110,000 towards future ownership in a private company. As of June 30, 2021, had no voting control nor equity in the private company related to this deposit. |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 5 – Notes Payable Notes payable as of June 30, 2021 and December 31, 2020 is as follows: Outstanding Principal as of June 30, December 31, Interest Maturity Seller’s Choice Note $ 660,000 $ 660,000 30 % September 2020 The May 2020 PPP Loan Agreement 252,432 412,500 1 % April 2022 The April 2020 PPP Loan Agreement - 282,432 1 % May 2022 The October 2020 Loan Agreement 56,796 55,928 14 % July 21 The November 2020 Loan Agreement - 23,716 14 % May 2021 The February 2021 Loan Agreement 85,372 - 14 % July 21 The April 2021 Loan Agreement 41,585 - 10 % October 22 1,096,185 1,434,576 Less: Debt Discount (7,549 ) - Less: Debt Issuance Costs - - 1,088,636 1,434,576 Less: Current Debt (1,054,600 ) (1,221,539 ) Total Long-Term Debt $ 34,036 $ 213,037 Seller’s Choice Note On September 11, 2019, the Company entered into Seller’s Choice Purchase Agreement with Home Revolution LLC (see Note 4). As a part of the consideration provided pursuant to the Seller’s Choice Acquisition, the Company issued the Seller’s Choice Note to the Seller in the principal amount of $660,000. The Seller’s Choice Note bears interest at a rate of 9.5% per annum and is payable on March 11, 2020 (the “Seller’s Choice Maturity Date”) at which time all outstanding principal, accrued and unpaid interest and other amounts become due. Upon maturity the Company utilized an automatic extension up to 6 months. This resulted in a 5% increase in the interest rate every month the Seller’s Choice Note is outstanding. As of June 30, 2021, the Company is in default on the Seller’s Choice note. During the six months ended June 30, 2021, the Company accrued interest of $98,186. The April 2020 PPP Loan Agreement On April 30, 2020, the Company was granted a loan with a principal amount of $282,432 (the “Loan”), pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted on March 27, 2020. The Loan, which was in the form of a Note dated April 30, 2020, matures on April 30, 2022, and bears interest at a fixed rate of 1.00% per annum, payable monthly commencing on October 30, 2020. The Note may be prepaid by the Company at any time prior to maturity without payment of any premium. Funds from the Loan may only be used to retain workers and maintain payroll or make mortgage payments, lease payments and utility payments. During the six months ended June 30, 2021, the Company accrued interest of $1,145. During the six months ended June 30, 2021, the Company repaid $30,000 in principal. The Company is in the process of returning the funds received from the Loan. When the applications for PPP first opened up, there was limited available funding and much confusion surrounding the application process. The Company initially submitted its application for the May 2020 PPP Loan in early April but received no response in the aftermath of submitting the application. After consulting multiple advisors, the Company made the decision to apply elsewhere, due to the rampant media coverage of institutions running out of funding and the Company’s need for the capital and belief that if 2 separate loans were approved, the remaining application could simply be withdrawn. Therefore, in late April, the company proceeded with applying for the April 2020 PPP Loan. After some conflicting communications regarding acceptance, the Company attempted to contact the lender to clarify but got no response. After continued attempts to follow up with both lenders, the Company received approval for the May 2020 PPP Loan and funding for the April 2020 PPP Loan on the same day, followed the next day by the funding of the May 2020 PPP Loan. The Company immediately separated the funds for the April 2020 PPP Loan into a separate reserved bank account with the intention of returning the funds. However, after several attempts to contact the lender with no response, the Company was faced with difficulty raising funds in the early-Covid economy and made the decision to utilize the funds for operations and pursue an installment repayment plan when they were able to reach the lender. As of the date of this filing, the Company has begun making repayments on the loan, absent a formal installment agreement due to difficulties reaching the lender. The Company intends to complete repayment before the end of 2021. As each company is only permitted one loan under the CARES Act, there is a possibility the loan may be called by the SBA and the Company would have to repay the loan in full at such time. The May 2020 PPP Loan Agreement On May 4, 2020, Jerrick Ventures, LLC (“Jerrick Ventures”), the Company’s wholly-owned subsidiary, was granted a loan from PNC Bank, N.A. with a principal amount of $412,500, pursuant to the Paycheck Protection Program (the “PPP”). The Loan, which was in the form of a Note dated May 4, 2020, matures on May 4, 2022, and bears interest at a fixed rate of 1.00% per annum, payable monthly commencing on November 4, 2020. The Note may be prepaid by Jerrick Ventures at any time prior to maturity without payment of any premium. Funds from the Loan may only be used to retain workers and maintain payroll or make mortgage payments, lease payments and utility payments. Jerrick Ventures intends to use the entire Loan amount for qualifying expenses. Under the terms of the PPP, certain amounts of the Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. During the six months ended June 30, 2021, the Company accrued interest of $1,017. During the six months ended June 30, 2021, the Company repaid $136,597 in principal and was forgiven $275,903 of principal and $3,119 of accrued interest. The October 2020 Loan Agreement On October 6, 2020, the Company entered into a secured loan agreement (the “October 2020 Loan Agreement”) with a lender (the “October 2020 Lender”), whereby the October 2020 Lender issued the Company a secured promissory note of A$74,300 AUD or $56,796 United States Dollars (the “October 2020 Note”). Pursuant to the October 2020 Loan Agreement, the October 2020 Note has an effective interest rate of 14%. The maturity date of the October 2020 Note is September 30, 2021 (the “October 2020 Maturity Date”) at which time all outstanding principal, accrued and unpaid interest and other amounts due under the October 2020 Loan Agreement are due. The loan is secured by the Australian research & development credit. During the six months ended June 30, 2021, the Company accrued A$5,158 in interest. The November 2020 Loan Agreement On November 24, 2020, the Company entered into a loan agreement (the “November 2020 Loan Agreement”) with a lender (the “November 2020 Lender”) whereby the November 2020 Lender issued the Company a promissory note of $34,000 (the “November 2020 Note”). Pursuant to the November 2020 Loan Agreement, the November 2020 Note has an effective interest rate of 14%. The maturity date of the November 2020 Note is May 25, 2021 (the “November 2020 Maturity Date”), at which time all outstanding principal, accrued and unpaid interest and other amounts due under the November 2020 Note are due. During the six months ended June 30, 2021, the Company repaid $23,716 in principal and $4,736 of accrued interest. The February 2021 Loan Agreement On February 24, 2021, the Company entered into a secured loan agreement (the “February 2021 Loan Agreement”) with a lender (the “February 2021 Lender”), whereby the February 2021 Lender issued the Company a secured promissory note of A$111,683 AUD or $85,372 United States Dollars (the “February 2021 Note”). Pursuant to the February 2021 Loan Agreement, the February 2021 Note has an effective interest rate of 14%. The maturity date of the February 2021 Note is July 31, 2021 (the “February 2021 Maturity Date”) at which time all outstanding principal, accrued and unpaid interest and other amounts due under the February 2021 Loan Agreement are due. The loan is secured by the Australian research & development credit. During the six months ended June 30, 2021, the Company accrued A$ 5,398 in interest. The April 2021 Loan Agreement On April 9, 2021, the Company entered into a loan agreement (the “April 2021 Loan Agreement”) with a lender (the “April 2021 Lender”) whereby the April 2021 Lender issued the Company a promissory note of $128,110 (the “April 2021 Note”). Pursuant to the April 2021 Loan Agreement, the April 2021 Note has an effective interest rate of 11%. The maturity date of the April 2021 Note is October 8, 2022 (the “April 2021 Maturity Date”), at which time all outstanding principal, accrued and unpaid interest and other amounts due under the April 2021 Note are due. During the six months ended June 30, 2021, the Company repaid $86,525 in principal. |
Convertible Note Payable
Convertible Note Payable | 6 Months Ended |
Jun. 30, 2021 | |
Convertible Note Payable [Abstract] | |
Convertible Note Payable | Note 6 – Convertible Note Payable Convertible notes payable as of June 30, 2021, and December 31, 2020 is as follows: Outstanding Principal as of Warrants granted June 30, 2021 December 31, 2020 Interest Rate Conversion Price Maturity Date Quantity Exercise Price The September 2020 convertible Loan Agreement $ - $ 341,880 12 % - (*) September-21 85,555 5 The First December 2020 convertible Loan Agreement - 600,000 12 % - (*) December-21 - - The October 2020 convertible Loan Agreement - 169,400 6 % - (*) October-21 - - The Second December 2020 convertible Loan Agreement 169,400 169,400 6 % - (*) December-21 - - The May 2021 Loan 4,666,669 - - % 5.00 (*) November-22 1,090,908 4.50- 4,836,069 1,280,680 Less: Debt Discount (2,174,294 ) (309,637 ) Less: Debt Issuance Costs (495,327 ) (73,527 ) 2,166,448 897,516 Less: Current Debt (67,048 ) (897,516 ) Total Long-Term Debt $ 2,099,400 $ - (*) As subject to adjustment as further outlined in the notes The First July 2020 Convertible Loan Agreement On July 01, 2020, the Company entered into a loan agreement (the “First July 2020 Loan Agreement”) with an individual (the “First July 2020 Lender”), whereby the First July 2020 Lender issued the Company a promissory note of $68,000 (the “First July 2020 Note”). Pursuant to the First July 2020 Loan Agreement, the First July 2020 Note has interest of ten percent (10%). The First July 2020 Note matures on June 29, 2021. Upon default or 180 days after issuance the First July 2020 Note is convertible into shares of the Company’s common stock, par value $.001 per share (“Conversion Shares”) equal to 61% multiplied by the lowest trade of the common stock during the twenty (15) consecutive trading day period immediately preceding the date of the respective conversion.t During the six months ended June 30, 2021, the First July 2020 Note became convertible. Due to the fact that these convertible notes have an option to convert at a variable amount, they are subject to derivative liability treatment. The Company has applied ASC 815, due to the potential for settlement in a variable quantity of shares. The conversion feature has been measured at fair value using a Binomial model at the conversion date and the period end. The conversion feature of First July 2020 Note gave rise to a derivative liability of $112,743. The Company recorded $68,000 as a debt discount and $44,743 was recorded to derivative expense. The debt discount is charged to accretion of debt discount over the remaining term of the convertible note. During the six months ended June 30, 2021 the Company converted $68,000 in principal and $3,400 in interest into 35,469 shares of the Company’s common stock. The August 2020 Convertible Loan Agreement On August 17, 2020, the Company entered into a loan agreement (the “August 2020 Loan Agreement”) with an individual (the “August 2020 Lender”), whereby the August 2020 Lender issued the Company a promissory note of $68,000 (the “August 2020 Note”). Pursuant to the August 2020 Loan Agreement, the August 2020 Note has interest of twelve percent (12%). The August 2020 Note matures on August 17, 2021. Upon default or 180 days after issuance the August 2020 Convertible Note is convertible into shares of the Company’s common stock, par value $.001 per share (“Conversion Shares”) equal to 61% multiplied by the lowest trade of the common stock during the twenty (15) consecutive trading day period immediately preceding the date of the respective conversion. The Company recorded a $3,000 debt discount relating to original issue discount associated with this note. The debt discount is being accreted over the life of the note to accretion of debt discount and issuance cost.t During the six months ended June 30, 2021, the August 2020 Note became convertible. Due to the fact that these convertible notes have an option to convert at a variable amount, they are subject to derivative liability treatment. The Company has applied ASC 815, due to the potential for settlement in a variable quantity of shares. The conversion feature has been measured at fair value using a Binomial model at the conversion date and the period end. The conversion feature of August 2020 Note gave rise to a derivative liability of $120,759. The Company recorded $65,000 was recorded as a debt discount and $55,759 was recorded to derivative expense. The debt discount is charged to accretion of debt discount over the remaining term of the convertible note. During the six months ended June 30, 2021 the Company converted $68,000 in principal and $3,400 in interest into 29,859 shares of the Company’s common stock. The September 2020 Convertible Loan Agreement On September 23, 2020, the Company entered into a loan agreement (the “September 2020 Loan Agreement”) with an individual (the “September 2020 Lender”), whereby the September 2020 Lender issued the Company a promissory note of $385,000 (the “September 2020 Note”). Pursuant to the September 2020 Loan Agreement, the September 2020 Note has interest of twelve percent (12%). The September 2020 Note matures on September 23, 2021. Upon default or 180 days after issuance the Second July 2020 Note is convertible into shares of the Company’s common stock, par value $.001 per share equal to the closing bid price of the Company’s common stock on the trading day immediately preceding the date of the respective conversion. The Company recorded a $68,255 debt discount relating to original issue discount associated with this note. The Company recorded a $146,393 debt discount relating to 85,555 warrants issued to investors based on the relative fair value of each equity instrument on the dates of issuance. The debt discount is being accreted over the life of the note to accretion of debt discount and issuance cost. During the six months ended June 30, 2021 the Company repaid $341,880 in principal and $46,200 in interest. The October 2020 Convertible Loan Agreement On October 2, 2020, the Company entered into a loan agreement (the “October 2020 Loan Agreement”) with an individual (the “October 2020 Lender”), whereby the October 2020 Lender issued the Company a promissory note of $169,400 (the “October 2020 Note”). Pursuant to the October 2020 Loan Agreement, the October 2020 Note has interest of six percent (6%). The October 2020 Note matures on the first (12 th Upon default or 180 days after issuance the October 2020 Note is convertible into shares of the Company’s common stock, par value $0.001 per share (“Conversion Shares”) equal to 75% of average the lowest three trading prices of the Company’s common stock on the fifteen-trading day immediately preceding the date of the respective conversion. The Company recorded a $19,400 debt discount relating to original issue discount associated with this note. The debt discount is being accreted over the life of the note to accretion of debt discount and issuance cost. During the six months ended June 30, 2021 the Second July 2020 Note became convertible. Due to the fact that these convertible notes have an option to convert at a variable amount, they are subject to derivative liability treatment. The Company has applied ASC 815, due to the potential for settlement in a variable quantity of shares. The conversion feature has been measured at fair value using a Binomial model at the conversion date and the period end. The conversion feature of Second July 2020 Note gave rise to a derivative liability of $74,860. The Company recorded this as a debt discount. The debt discount is charged to accretion of debt discount over the remaining term of the convertible note. During the six months ended June 30, 2021 the Company converted $169,400 in principal and $4,620 in interest into 55,631 shares of the Company’s common stock. The First December 2020 convertible Loan Agreement On December 9, 2020, the Company entered into a loan agreement (the “First December 2020 Loan Agreement”) with an individual (the “First December 2020 Lender”), whereby the First December 2020 Lender issued the Company a promissory note of $600,000 (the “First December 2020 Note”). Pursuant to the First December 2020 Loan Agreement, the First December 2020 Note has interest of twelve percent (12%). As additional consideration for entering in the First December 2020 convertible Loan Agreement, the Company issued 45,000 shares of the Company’s common stock. The First December 2020 Note matures on the first (12 th Upon default the First December 2020 Note is convertible into shares of the Company’s common stock, par value $.001 per share (“Conversion Shares”) equal to the closing bid price of the Company’s common stock on the trading day immediately preceding the date of the respective conversion. The Company recorded a $110,300 debt discount relating to original issue discount associated with this note. The Company recorded a $113,481 debt discount relating to 45,000 shares issued to investors based on the relative fair value of each equity instrument on the dates of issuance. The debt discount is being accreted over the life of the note to accretion of debt discount and issuance cost. During the six months ended June 30, 2021 the Company repaid $600,000 in principal and $4,340 in interest. The Second December 2020 Convertible Loan Agreement On December 30, 2020, the Company entered into a loan agreement (the “Second December 2020 Loan Agreement”) with an individual (the “Second December 2020 Lender”), whereby the Second December 2020 Lender issued the Company a promissory note of $169,400 (the “Second December 2020 Note”). Pursuant to the Second December 2020 Loan Agreement, the Second December 2020 Note has interest of six percent (6%). The Second December 2020 Note matures on the first (12 th Upon default the Second December 2020 Note is convertible into shares of the Company’s common stock, par value $0.001 per share (“Conversion Shares”) equal to 75% of average the lowest three trading prices of the Company’s common stock on the fifteen-trading day immediately preceding the date of the respective conversion. The Company recorded a $18,900 debt discount relating to original issue discount associated with this note. The debt discount is being accreted over the life of the note to accretion of debt discount and issuance cost. During the six months ended June 30, 2021 the Second December 2020 Note became convertible. Due to the fact that these convertible notes have an option to convert at a variable amount, they are subject to derivative liability treatment. The Company has applied ASC 815, due to the potential for settlement in a variable quantity of shares. The conversion feature has been measured at fair value using a Binomial model at the conversion date and the period end. The conversion feature of Second December 2020 Note gave rise to a derivative liability of $108,880. The Company recorded this as a debt discount. The debt discount is charged to accretion of debt discount over the remaining term of the convertible note. The May 2021 Convertible Note Offering On May 14, 2021, the Company conducted multiple closings of a private placement offering to accredited investors (the “May 2021 Convertible Note Offering”) of units of the Company’s securities by entering into subscription agreements with “accredited investors” (the “May 2021 Investors”) for aggregate gross proceeds of $3,690,491. The May 2021 convertible notes are convertible into shares of the Company’s common stock, par value $.001 per share at a conversion price of $5.00 per share. As additional consideration for entering in the May 2021 Convertible Note Offering, the Company issued 1,090,908 warrants of the Company’s common stock. The May 2021 Convertible Note matures on November 14, 2022. The Company recorded a $1,601,452 debt discount relating to 1,090,908 warrants issued to investors based on the relative fair value of each equity instrument on the dates of issuance. The debt discount is being accreted over the life of these notes to accretion of debt discount and issuance cost. The Company recorded a $666,669 debt discount relating to an original issue discount and $539,509 of debt issuance costs related to fees paid to vendors relating to the offering. The debt discount and debt issuance costs are being accreted over the life of the note to accretion of debt discount and issuance cost. |
Related Party
Related Party | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party | Note 7 – Related Party Notes payable Notes payable – related party as of June 30, 2021 and December 31, 2020 is as follows: Outstanding Principal as of Warrants granted June 30, December 31, Interest Maturity Quantity Exercise The September 2020 Goldberg Loan Agreement 16,705 16,705 7 % September 2022 - - The September 2020 Rosen Loan Agreement 3,295 3,295 7 % September 2022 - - 20,000 20,000 Less: Debt Discount (12,110 ) (17,068 ) Less: Debt Issuance Costs - - 7,890 2,932 Less: Current Debt (7,890 ) (2,932 ) $ - $ - The September 2020 Goldberg Loan Agreement On September 15, 2020, the Company entered into a loan agreement (the “September 2020 Goldberg Loan Agreement”) with Goldberg whereby the Company issued a promissory note of $16,705 (the “September 2020 Goldberg Note”). Pursuant to the September 2020 Goldberg Loan Agreement, the September 2020 Goldberg Note has an interest rate of 7%. The maturity date of the September 2020 Goldberg Note is September 15, 2022 (the “September 2020 Goldberg Maturity Date”), at which time all outstanding principal, accrued and unpaid interest and other amounts due under note are due. The September 2020 Goldberg Loan is secured by the tangible and intangible property of the Company. Since the September 2020 Goldberg Note has a make-whole provision if the shares of the Company’s common stock issued to the lender in accordance with the Lender’s Exchange Agreement (see note 11) have a value equal to or less than $6,463,363 determined by using the lowest VWAP of the last 30 days prior to September 14, 2021. The principal amount of the September 2020 Goldberg Note shall increase by 200% of the difference between the initial consideration and the September 14, 2021 value. The Company has applied ASC 815, due to the potential for settlement in a variable quantity of shares. The make-whole feature gave rise to a derivative liability of $2,557,275, of which $2,540,570 was recorded as a loss on extinguishment of debt and $16,705 as a debt discount. The debt discount is being accreted over the life of the note to accretion of debt discount and issuance cost. The derivative liability is marked to market as of June 30, 2021, and the change in derivative liability is recorded on Condensed Consolidated Statements of Comprehensive Loss. See note 8. During the six months ended June 30, 2021 the Company accrued interest of $580. The September 2020 Rosen Loan Agreement On September 15, 2020, the Company entered into a loan agreement (the “September 2020 Rosen Loan Agreement”) with Rosen whereby the Company issued a promissory note of $3,295 (the “September 2020 Rosen Note”). Pursuant to the September 2020 Rosen Loan Agreement, the September 2020 Rosen Note has an interest rate of 7%. The maturity date of the September 2020 Rosen Note is September 15, 2022 (the “September 2020 Rosen Maturity Date”), at which time all outstanding principal, accrued and unpaid interest and other amounts due under the note are due. The September 2020 Rosen Loan is secured by the tangible and intangible property of the Company. Since the September 2020 Rosen Note has a make-whole provision if the shares of the Company’s common stock issued to the lender in accordance with the Lender’s Exchange Agreement (see note 11) have a value equal to or less than $1,274,553 determined by using the lowest VWAP of the last 30 days prior to September 14, 2021. The principal amount of the September 2020 Rosen Note shall increase by 200% of the difference the initial consideration and the September 14, 2021 value. The Company has applied ASC 815, due to the potential for settlement in a variable quantity of shares. The make-whole feature of gave rise to a derivative liability of $504,413, of which $501,118 was recorded as a loss on extinguishment of debt and $3,295 as a debt discount. The debt discount is being accreted over the life of the note to accretion of debt discount and issuance cost. The derivative liability is marked to market as of June 30, 2021, and the change in derivative liability is recorded on Condensed Consolidated Statements of Comprehensive Loss. See note 8. During the six months ended June 30, 2021 the Company accrued interest of $114. Officer compensation During the six months ended June 30, 2021 the Company paid $72,328 for living expenses for officers of the Company. |
Derivative Liabilities
Derivative Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Liabilities | Note 8 – Derivative Liabilities The Company has identified derivative instruments arising from a make-whole feature in the Company’s notes payable at June 30, 2021. For the terms of the make-whole features see the September 2020 Rosen Loan Agreement and the September 2020 Goldberg Loan Agreement in Note 7. The Company has also identified derivative instruments arising from convertible notes that have an option to convert at a variable number of shares in the Company’s convertible notes payable at June 30, 2021. For the terms of the conversion features see Note 7. The Company had no derivative assets measured at fair value on a recurring basis as of June 30, 2021. The Company utilizes a Monte Carlo simulation model for the make whole feature and a binomial option model for convertible notes that have an option to convert at a variable number of shares to compute the fair value of the derivative and to mark to market the fair value of the derivative at each balance sheet date. The inputs utilized in the application of the Monte Carlo model included a starting stock price, an expected term of each debenture remaining from the valuation date to maturity, an estimated volatility, drift, and a risk-free rate. The inputs utilized in the application of the Binomial model included a stock price on valuation date, an expected term of each debenture remaining from the valuation date to maturity, an estimated volatility, and a risk-free rate. The Company records the change in the fair value of the derivative as other income or expense in the consolidated statements of operations. Risk-free interest rate: The Company uses the risk-free interest rate of a U.S. Treasury Note adjusted to be on a continuous return basis to align with the Monte Carlo simulation model and binomial model. Dividend yield: The Company uses a 0% expected dividend yield as the Company has not paid dividends to date and does not anticipate declaring dividends in the near future. Volatility: The Company calculates the expected volatility based on the company’s historical stock prices with a look back period commensurate with the period to maturity. Expected term: The Company’s remaining term is based on the remaining contractual maturity of the convertible notes. The following are the changes in the derivative liabilities during the three and six months ended June 30, 2021. Three Months Ended June 30, 2021 Level 1 Level 2 Level 3 Derivative liabilities as April 1, 2021 $ - $ - $ 344,404 Addition - - 108,880 Extinguishment (82,431 ) Changes in fair value - - 65,442 Derivative liabilities as June 30, 2021 $ - $ - $ 436,295 Six Months Ended June 30, 2021 Level 1 Level 2 Level 3 Derivative liabilities as January 1, 2021 $ - $ - $ 42,231 Addition - - 417,241 Extinguishment (286,009 ) Changes in fair value - - 262,831 Derivative liabilities as June 30, 2021 $ - $ - $ 436,295 |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity | Note 9 – Stockholders’ Equity Shares Authorized Prior to July 13, 2020, the Company was authorized to issue up to thirty-five million (35,000,000) shares of capital stock, of which fifteen million (15,000,000) shares are designated as common stock, par value $0.001 per share, and twenty million (20,000,000) are designated as “blank check” preferred stock, par value $0.001 per share. The designations, rights, and preferences of such preferred stock are to be determined by the Company’s board of directors. On July 13, 2020, the Company filed the Second Amended and Restated Articles of Incorporation with the Secretary of State of the State of Nevada, which authorize the issuance of 100,000,000 shares of common stock, and 20,000,000 shares of preferred stock. On August 17, 2020, following board of directors approval, the Company filed a Certificate of Change to its Articles of Incorporation (the “Amendment”), with the Secretary of State of the State of Nevada to effectuate a one-for-twenty (1:3) reverse stock split (the “Reverse Stock Split”) of its common stock, par value $0.001 per share, without any change to its par value. The Amendment became effective on August 17, 2020. No fractional shares were issued in connection with the Reverse Stock Split as all fractional shares were “rounded up” to the next whole share. As a result, all share information in the accompanying condensed consolidated financial statements has been adjusted as if the reverse stock split happened on the earliest date presented. Preferred Stock Series E Convertible Preferred Stock On December 29, 2020 the Company entered into securities purchase agreements with thirty-three accredited investors whereby the Investors have agreed to purchase from the Company an aggregate of 7,778 shares of the Company’s Series E Convertible Preferred Stock, par value $0.001 per share and 2,831,715 warrants to purchase shares of the Company’s common stock, par value $0.001 per share. The Series E Preferred Stock is convertible into a total of 1,887,810 shares of Common Stock. The combined purchase price of one Conversion Share and one and a half warrant was $4.12. The aggregate purchase price for the Series E Preferred Stock and warrants was $7,777,777. The Company has recorded $817,353 to stock issuance costs, which are part of Additional Paid-in Capital. The warrants are exercisable for a term of five-years from the date of issuance, at an exercise price of $4.50 per share. The warrants provide for cashless exercise to the extent that there is no registration statement available for the underlying shares of Common Stock. The placement agent for the transaction and received cash compensation equal to 10% of the aggregate purchase price and warrants to purchase 471,953 shares of the Company’s common stock, at an exercise price of $5.15 per share (the “PA Warrants”). The PA Warrants are exercisable for a term of five-years from the date of issuance. During the six months ended June 30, 2021, the Company received the $40,000 of the subscription receivable for the Series E Convertible Preferred Stock. The Company has recorded $4,225 to stock issuance costs, which are part of Additional Paid-in Capital. During the six months ended June 30, 2021, investors converted 6,730 shares of the Company’s Series E Convertible Preferred Stock into 1,633,439 shares of the Company’s common stock. Common Stock On January 14, 2021, the Company issued 30,000 shares of its restricted common stock to consultants in exchange for services at a fair value of $133,200. On January 20, 2021, the Company issued 40,000 shares of its restricted common stock to consultants in exchange for a year of services at a fair value of $192,000. On May 24, 2021, the Company amended the contract and issued and additional 10,000 shares of its restricted common stock. these shares had a fair value of $34,500. The shares issued to the consultant were recorded as common stock issued for prepaid services and will be expensed over the life of the consulting contract to share based payments. During the six months ended June 30, 2021 the Company recorded $99,908 to stock-based compensation expense related to these shares. On February 1, 2021, the Company issued 50,000 shares of its restricted common stock to consultants in exchange for services at a fair value of $196,000. On February 3, 2021, the Company issued 1,929 shares of its restricted common stock to consultants in exchange for services at a fair value of $8,198. On February 8, 2021, the Company entered into a consulting agreement whereas the Company issued a total of 2,092 shares of common stock in exchange for services at a fair value of $7,502. On February 18, 2021, the Company issued 10,000 shares of its restricted common stock to consultants in exchange for services at a fair value of $48,000. On February 18, 2021, the Company issued 10,417 shares of its restricted common stock to consultants in exchange for services at a fair value of $50,002. On February 26, 2021, the Company issued 291 shares of its restricted common stock to consultants in exchange for services at a fair value of $1,499. On March 17, 2021, the Company issued 9,624 shares of its restricted common stock to consultants in exchange for services at a fair value of $49,371. On March 28, 2021, the Company issued 31,782 shares of its restricted common stock to settle outstanding vendor liabilities of $125,000. On March 31, 2021, the Company issued 13,113 shares of its restricted common stock to settle outstanding vendor liabilities of $43,667. In connection with this transaction the Company also recorded a loss on settlement of vendor liabilities of $12,719. On April 10, 2021, the Company issued 16,275 shares of its restricted common stock to consultants in exchange for services at a fair value of $69,332. On April 21, 2021, the Company entered into a consulting agreement whereas the Company issued a total of 1,048 shares of common stock in exchange for services at a fair value of $3,587. On June 17, 2021, the Company entered into an underwriting agreement with The Benchmark Company LLC, pursuant to which we agreed to sell to the Underwriter in a firm commitment underwritten public offering an aggregate of 750,000 shares of the Company’s common stock, at a public offering price of $3.40 per share. The Company also granted the Underwriter a 30-day option to purchase up to an additional 112,500 shares of Common Stock to cover over-allotments, if any. The Offering closed on June 21, 2021. The net proceeds to the Company from the equity raise was $2,213,500. As part of the underwriting agreement the Company issued 46,667 warrants of the Company’s common stock to Benchmark. The warrants have an exercise price $5.40 and a term of five years. Stock Options The Company applied fair value accounting for all share-based payments awards. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model. The assumptions used for options granted during the six months ended June 30, 2021, are as follows: June 30, Exercise price $ 2.55 – 14.10 Expected dividends 0 Expected volatility 223.15 – 242.98% Risk free interest rate 0.46 – 0.98% Expected life of option 5 - 7 years The following is a summary of the Company’s stock option activity: Options Weighted Weighted Balance – December 31, 2020 – outstanding 541,021 12.75 3.27 Granted 1,825,500 6.37 6.21 Exercised - - - Forfeited/Cancelled (3,334 ) 15.00 - Balance – June 30, 2021 – outstanding and exercisable 2,363,187 7.82 5.13 Option Outstanding Option Exercisable Exercise price Number Weighted Weighted Number Weighted $ 7.82 2,363,187 5.13 12.73 537,687 3.82 During the ended December 31, 2018 the Company granted options of 11,667 to consultants that has a fair value of $57,123. As of the date of this filing the company has not issued these options and they are recorded as an accrued liability on the Consolidated Balance Sheet. Stock-based compensation for stock options has been recorded in the consolidated statements of operations and totaled $2,552,855, for the six months ended June 30, 2021. As of June 30, 2021, there was $ 6,122,329 of total unrecognized compensation expense related to unvested employee options granted under the Company’s share-based compensation plans that is expected to be recognized over a weighted average period of approximately 1.23 year. Warrants The Company applied fair value accounting for all share-based payments awards. The fair value of each warrant granted is estimated on the date of grant using the Black-Scholes option-pricing model. The assumptions used for warrants granted during the six months ended June 30, 2020 are as follows: June 30, Exercise price $ 4.50 Expected dividends 0 % Expected volatility 237.14 % Risk free interest rate 0.82 % Expected life of warrant 5 years Warrant Activities The following is a summary of the Company’s warrant activity: Warrant Weighted Balance – December 31, 2020 – outstanding 6,130,948 4.96 Granted 1,751,892 5.68 Exercised (376,214 ) 4.67 Forfeited/Cancelled (10,556 ) 24.00 Balance – June 30, 2021 – outstanding 7,496,070 4.88 Balance – June 30, 2021 – exercisable 7,496,070 $ 4.88 Warrants Outstanding Warrants Exercisable Exercise price Number Weighted Weighted Number Weighted $ 4.88 7,496,070 4.33 4.88 7,496,070 4.33 During the six months ended June 30, 2021, the Company issued 320,693 shares of common stock to a certain warrant holder upon the cashless exercise of a warrant to purchase 376,214 shares of common stock. The Company received $1,272,672 in connection with the exercise of the warrant. During the six months ended June 30, 2021, a total of 486,516 warrants were issued in connection with the Series E Convertible Preferred Stock raise. During the six months ended June 30, 2021, a total of 1,090,908 warrants were issued with convertible notes (See Note 6 above). The warrants have a grant date fair value of $3,067,617 using a Black-Scholes option-pricing model and the above assumptions. During the six months ended June 30, 2021, some of the Company’s warrants had a reset provision triggered that also resulted in an additional 127,801 warrants to be issued. A deemed dividend of $410,750 was recorded to the Statements of Comprehensive Loss. On June 17, 2021, the Company issued 46,667 warrants in connection with the underwriting agreement. Share-based awards, restricted stock award (“RSAs”) On February 4, 2021 the Board resolved that, the Company shall pay each member of the Board, for each calendar quarter during which such member continues to serve on the Board, compensation as a group amounts to $62,500 per quarter. The shares vest one year after issuance. A summary of the activity related to RSUs for the six months ended June 30, 2021 is presented below: Restricted stock units (RSUs) Total Grant date RSAs non-vested at January 1, 2021 - $ - RSAs granted 69,635 $ 3.75 – 4.32 RSAs vested - $ - RSAs forfeited - $ - RSAs non-vested June 30, 2021 69,635 $ 375 – 4.32 Stock-based compensation for RSA’s has been recorded in the consolidated statements of operations and totaled $291,035, for the six months ended June 30, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10 – Commitments and Contingencies The CARES Act lifts certain deduction limitations originally imposed by the Tax Cuts and Jobs Act of 2017 (“2017 Tax Act”). Corporate taxpayers may carry back net operating losses (NOLs) originating between 2018 and 2020 for up to five years, which was not previously allowed under the 2017 Tax Act. The CARES Act also eliminates the 80% of taxable income limitations by allowing corporate entities to fully utilize NOL carryforwards to offset taxable income in 2018, 2019 or 2020. Taxpayers may generally deduct interest up to the sum of 50% of adjusted taxable income plus business interest income (30% limit under the 2017 Tax Act) for 2019 and 2020. The CARES Act allows taxpayers with alternative minimum tax credits to claim a refund in 2020 for the entire amount of the credits instead of recovering the credits through refunds over a period of years, as originally enacted by the 2017 Tax Act. In addition, the CARES Act raises the corporate charitable deduction limit to 25% of taxable income and makes qualified improvement property generally eligible for 15-year cost-recovery and 100% bonus depreciation. The enactment of the CARES Act did not result in any material adjustments to our income tax provision for the year ended December 31, 2020. On March 26, 2020 and April 30, 2020, the Company received 2 separate loans pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act. When the applications for PPP first opened up, there was limited available funding and much confusion surrounding the application process. The Company initially submitted its application for the May 2020 PPP Loan in early April but received no response in the aftermath of submitting the application. After consulting multiple advisors, the Company made the decision to apply elsewhere, due to the rampant media coverage of institutions running out of funding and the Company’s need for the capital and belief that if 2 separate loans were approved, the remaining application could simply be withdrawn. Therefore, in late April, the company proceeded with applying for the April 2020 PPP Loan. After some conflicting communications regarding acceptance, the Company attempted to contact the lender to clarify but got no response. After continued attempts to follow up with both lenders, the Company received approval for the May 2020 PPP Loan and funding for the April 2020 PPP Loan on the same day, followed the next day by the funding of the May 2020 PPP Loan. The Company immediately separated the funds for the April 2020 PPP Loan into a separate reserved bank account with the intention of returning the funds. However, after several attempts to contact the lender with no response, the Company was faced with difficulty raising funds in the early-Covid economy and made the decision to utilize the funds for operations and pursue an installment repayment plan when they were able to reach the lender. As of the date of this filing, the Company has begun making repayments on the loan, absent a formal installment agreement due to difficulties reaching the lender. The Company intends to complete repayment before the end of 2021. As each company is only permitted one loan under the CARES Act, there is a possibility the loan may be called by the SBA and the Company would have to repay the loan in full at such time. As of June 30, 2021, the May 2020 PPP Loan is no longer outstanding, as during the six months ended June 30, 2021, the Company repaid $136,597 in principal and was forgiven $275,903 of principal and $3,119 of accrued interest. As of June 30, 2021 there was $255,426 in principal outstanding on the April 2020 PPP Loan. Litigation On or about June 25, 2020, Home Revolution, LLC (“Home Revolution”) filed a lawsuit in the United States District Court for the District of New Jersey, Home Revolution, LLC, et al et al We submitted an opposition, and after oral arguments on August 13, 2020, the Court denied the receiver request in its entirety. We then filed a Motion to Dismiss on August 14, 2020 on a number of grounds, the most significant of which is that this is a simple (alleged) breach of Promissory Note case. Creatd is current on all payments under the Note, and because both parties are New Jersey entities a mere breach of contract and/or collection-based case is not appropriately venued in federal court. Upon receipt of our Motion to Dismiss, Home Revolution submitted an Amended Complaint, presumably in an effort to cure the problems with the Complaint which we identified in the Motion to Dismiss. Home Revolution has subsequently initiated a series of atypical procedures and, as a result, has (without following the Federal Rules of Civil Procedure) moved for both default and to submit yet another newly Amended Complaint (the one precludes the other and vice versa). After we submitted a motion to clear up the above, the Court reinstated the matter to the docket and permitted Plaintiff to file the Second Amended Complaint (we had no objection). We have filed a motion to dismiss the Second Amended Complaint. That will take some time to be decided. We expect no major event to occur for the next 12 months. Finally, we believe the lawsuit lacks merit and will vigorously challenge the action. Lease Agreements On May 5, 2018, the Company signed a 5-year lease for approximately 2,300 square feet of office space at 2050 Center Avenue Suite 640, Fort Lee, New Jersey 07024. Commencement date of the lease is June 1, 2018. The total amount due under this lease is $411,150. On April 1, 2019, the Company signed a 4-year lease for approximately 796 square feet of office space at 2050 Center Avenue Suite 660, Fort Lee, New Jersey 07024. Commencement date of the lease is April 1, 2019. The total amount due under this lease is $108,229. The components of lease expense were as follows: Three Months Ended Operating lease cost $ 20,117 Short term lease cost 3,714 Total net lease cost $ 23,831 Six Months Ended Operating lease cost $ 39,826 Short term lease cost 7,428 Total net lease cost $ 47,254 Supplemental cash flow and other information related to leases was as follows: Six Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating lease payments 53,977 Weighted average remaining lease term (in years): 2.0 Weighted average discount rate: 13 % Total future minimum payments required under the lease as of December 31, 2020 are as follows: Twelve Months Ending December 31, 2021 $ 55,348 2022 114,627 2023 53,094 Total $ 223,069 Rent expense for the six months ended June 30, 2021 and 2020 was $53,869 and $59,168, respectively. |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2021 | |
Asset Acquisition [Abstract] | |
Acquisition | Note 11 – Acquisition On June 1, 2021, the Company, entered into a Membership Interest Purchase Agreement (the “MIPA”) with Angela Hein (“Hein”) and Heidi Brown (“Brown”, and together with Hein, the “ Sellers On June 4, 2021, the Company, entered into a MIPA with Sellers, pursuant to which the Purchaser acquired 841,005 common units of Plant Camp from the Sellers, resulting in the Purchaser owning a total of 89% of the issued and outstanding equity of Plant Camp. The additional Membership Interests were purchased for $300,000. The following sets forth the components of the purchase price: Purchase price: Cash paid to seller $ 300,000 Fair value of equity investment purchased on June 1, 2021 175,000 Total purchase price 475,000 Assets acquired: Cash 5,232 Accounts Receivable 7,645 Inventory 19,970 Total assets acquired 32,847 Liabilities assumed: Accounts payable and accrued expenses 5,309 Deferred Revenue 671 Loan Payable 100,000 Total liabilities assumed 105,980 Net assets acquired (73,133 ) Non-controlling interest in consolidated subsidiary 56,865 Excess purchase price $ 604,998 The excess purchase price amounts are provisional and may be adjusted during the one-year measurement period as required by U.S. GAAP. The following table provides a summary of the preliminary allocation of the excess purchase price. Goodwill $ 2,198 Trade Names & Trademarks 105,500 Know-How and Intellectual Property 422,000 Website 51,300 Customer Relationships 24,000 Excess purchase price $ 604,998 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12 – Subsequent Events On July 20, 2021, the Company entered into a Stock Purchase Agreement to purchase 44% ownership and 55% of voting power of the issued and outstanding shares of WHE Agency, Inc., (“WHE”). The aggregate closing consideration was $935,000, which consists of a combination of $144,750 in cash and $790,250 in the form of 224,503 shares of the Company’s restricted common stock at a price of $3.52 per share. Based on the purchase price of $935,000 for 44% ownership, the fair value of the non-controlling interest would be approximately $1,190,000. WHE is a talent management and public relations agency dedicated to the representation and management of family- and lifestyle-focused influencers and digital creators. The transaction leverages the existing synergies between Creatd and WHE, specifically enabling WHE to utilize the Vocal platform and technology to further expand its creator network, introduce new verticals, and deepen existing brand ties. At the same time, the addition of WHE enables Creatd to expand its existing agency offerings, specifically within the scope of influencer marketing. With WHE in its portfolio, Creatd has expanded the pool of talent available to partner with its brand clients. Additionally, the transaction created immense opportunity for Creatd in terms of both human capital and market expansion. First, the transaction enables Creatd to enhance its own talent pool; gaining access to WHE’s highly skilled talent managers and brand liaisons fuels new capacity for innovation and growth. Second, WHE’s influencers work with a large set of brand partners, all of whom stand to benefit by working with Creatd Partners on Vocal for Brands marketing campaigns. Integrating WHE and its influencer network into Creatd provides Creatd the benefit of a significantly expanded customer base. The required separate audited financials and pro forma condensed interim statements will be completed and filed as soon as practicable, and in any event not later than October 3, 2021. Subsequent to June 30, 2021, a total of 1,062,574 warrants were exercised, resulting in the cancellation of 1,062,574 warrants, the issuance of 954,568 shares of common stock, and gross proceeds of $4,199,396 to the Company. Subsequent to June 30, 2021, a total of $3,525,000 in principal of convertible notes converted into shares of common stock, resulting in the issuance of 705,000 shares of common stock. Subsequent to June 30, 2021, 438 shares of Series E Preferred Stock converted into common stock, resulting in the issuance of 106,311 shares of common stock. On July 8, 2021, the Company made a deposit of $100,000 towards future ownership in a private company related to the Memorandum of Understanding announced on August 2, 2021, below. At this time, the Company has no voting control nor equity in the private company related to this deposit. On July 28, 2021, the Company entered into a non-binding Memorandum of Understanding to purchase a majority stake in direct-to-consumer company, Wobble Wedge®. Wobble Wedges®, sold through both direct-to-consumer (DTC) and wholesale avenues, are an interlocking modular system of tapered shims that are adaptable to hundreds of uses. Pursuant to the MOU, Creatd intends to acquire a 55% equity stake in Wobble Wedge, in exchange for a combination of cash and stock consideration totaling $500,000. The Company expects to execute definitive agreements in early fourth quarter 2021 and to close shortly thereafter, subject to the completion of due diligence and other closing conditions. On August 2, 2021, the Company entered into a Memorandum of Understanding to acquire a majority equity stake in Dune, Inc., a direct-to-consumer brand focused on promoting wellness through its range of health-oriented beverages. Pursuant to the MOU, Creatd intends to acquire a 50.4% equity stake in Dune in exchange for a combination of cash and stock. The Company expects to execute definitive agreements early in the fourth quarter 2021 and to close shortly thereafter, subject to the completion of due diligence and other closing conditions. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and following the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These interim financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or any other interim period or for any other future year. These unaudited condensed financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2020, included in the Company’s 2020 Annual Report on Form 10-K filed with the SEC. The balance sheet as of December 31, 2020 has been derived from audited financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. |
Use of Estimates and Critical Accounting Estimates and Assumptions | Use of Estimates and Critical Accounting Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. |
Principles of consolidation | Principles of consolidation The Company consolidates all majority-owned subsidiaries, if any, in which the parent’s power to control exists. As of June 30, 2021, the Company’s consolidated subsidiaries and/or entities are as follows: Name of combined affiliate State or other Company Jerrick Ventures LLC Delaware 100 % Abacus Tech Pty Ltd Australia 100 % Seller’s Choice, LLC New Jersey 100 % Recreatd, LLC Delaware 100 % Give, LLC Delaware 100 % Creatd Partners LLC Delaware 100 % Plant Camp LLC Delaware 89 % Sci-Fi Shop, LLC Delaware 100 % OG Collection LLC Delaware 100 % VMENA LLC Delaware 100 % Vocal For Brands, LLC Delaware 100 % Vocal Ventures LLC Delaware 100 % What to Buy, LLC Delaware 100 % All inter-company balances and transactions have been eliminated. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value measurement disclosures are grouped into three levels based on valuation factors: ● Level 1 – quoted prices in active markets for identical investments ● Level 2 – other significant observable inputs (including quoted prices for similar investments and market corroborated inputs) ● Level 3 – significant unobservable inputs (including our own assumptions in determining the fair value of investments) The Company’s Level 1 assets/liabilities include cash, accounts receivable, marketable trading securities, accounts payable, prepaid and other current assets, line of credit and due to related parties. Management believes the estimated fair value of these accounts at June 30, 2021 approximate their carrying value as reflected in the balance sheets due to the short-term nature of these instruments or the use of market interest rates for debt instruments. The Company’s Level 2 assets/liabilities include certain of the Company’s notes payable and capital lease obligations. Their carrying value approximates their fair values based upon a comparison of the interest rate and terms of such debt given the level of risk to the rates and terms of similar debt currently available to the Company in the marketplace. The Company’s Level 3 assets/liabilities include goodwill, intangible assets, marketable debt securities, equity investments at cost, and derivative liabilities, when they are recorded at fair value due to an impairment charge. Inputs to determine fair value are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Unobservable inputs used in the models are significant to the fair values of the assets and liabilities. The following table provides a summary of the relevant assets and liabilities that are measured at fair value on recurring basis: Fair Value Measurements as of June 30, 2021 Total Quoted Quoted Significant Assets: Marketable securities - debt securities $ - $ - $ - $ - Total assets $ - $ - $ - $ - Liabilities: Derivative liabilities $ 436,295 $ - $ - $ 436,295 Total Liabilities 436,295 $ - $ - $ 436,295 The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on recurring basis as of June 30, 2021: Fair Value Valuation Methodology Unobservable Inputs Marketable securities - debt securities $ - Discounted cash flow analysis Expected cash flows from the investment Derivative liabilities $ 436,295 Monte Carlo simulations and Binomial model Risk free rate Expected volatility; Drift rate The following table provides a summary of the relevant assets that are measured at fair value on non-recurring basis: Fair Value Measurements as of June 30, 2021 Total Quoted Quoted Significant Assets: Equity investments, at cost $ 367,096 $ - $ - $ 367,096 Total assets $ 367,096 $ - $ - $ 367,096 The following table shows the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on non-recurring basis as of June 30, 2021: Fair Value Valuation Methodology Unobservable Inputs Equity investments, at cost $ 367,096 Qualitative assessment per ASC 321-10-35 Qualitative factors The Company valued the initial value of debt securities, which are investments in convertible notes receivable, by assessing the separate values of the debt and equity components for similar instruments convertible into private company equity (Level 3). The investment was initially measured at cost, which was determined to approximate fair value due to the lack of marketability of the conversion shares underlying these convertible instruments and the expected recoverability of the note principal. The key assumption affecting the level 3 fair values would be collectability of the notes. The Company monitors for impairment indicators at each balance sheet date. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. At times, cash balances may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurable limits. The Company has never experienced any losses related to these balances. As of June 30, 2021, and December 31, 2020, cash amounts in excess of $250,000 were not fully insured. The uninsured cash balance as of June 30, 2021 was approximately $1.9 million. The Company does not believe it is exposed to significant credit risk on cash and cash equivalents. |
Long-lived Assets Including Goodwill and Other Acquired Intangibles Assets | Long-lived Assets Including Goodwill and Other Acquired Intangibles Assets We evaluate the recoverability of property and equipment and acquired finite-lived intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate from the use and eventual disposition. If such review indicates that the carrying amount of property and equipment and intangible assets is not recoverable, the carrying amount of such assets is reduced to fair value. We have not recorded any impairment charges for these type of assets during the six months ended June 30, 2021. Acquired finite-lived intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets. We routinely review the remaining estimated useful lives of property and equipment and finite-lived intangible assets. If we change the estimated useful life assumption for any asset, the remaining unamortized balance is amortized or depreciated over the revised estimated useful life. During the year ended December 31, 2020 the Company completed its annual impairment test of goodwill. The Company performed the qualitative assessment as permitted by ASC 350-20 and determined that the fair value of the reporting unit was more likely than not equal or greater than the carrying value, including Goodwill. Based on completion of this annual impairment test, no impairment was indicated. |
Investments | Investments Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Debt securities not classified as held-to-maturity or as trading are classified as available-for-sale, and are carried at fair market value, with the unrealized gains and losses, net of tax, included in the determination of comprehensive income and reported in stockholders’ equity. The Company accounts for its investments in available-for-sale debt securities, in accordance with sub-topic 320-10 of the FASB ASC (“Sub-Topic 320-10”). Accrued interest on these securities is included in fair value and amortized cost. Pursuant to Paragraph 320-10-35, investments in debt securities that are classified as available for sale shall be measured subsequently at fair value in the statement of financial position. Unrealized holding gains and losses for available-for-sale securities (including those classified as current assets) shall be excluded from earnings and reported in other comprehensive income until realized. The Company follows FASB ASC 320-10-35 to assess whether an investment in debt securities is impaired in each reporting period. An investment in debt securities is impaired if the fair value of the investment is less than its amortized cost. If the Company intends to sell the debt security (that is, it has decided to sell the security), an other-than-temporary impairment shall be considered to have occurred. If the Company more likely than not will be required to sell the security before recovery of its amortized cost basis or it otherwise does not expect to recover the entire amortized cost basis of the security, an other-than-temporary impairment shall be considered to have occurred. The Company considers the expected cash flows from the investment based on reasonable and supportable forecasts as well as several other factors to estimate whether a credit loss exists. If the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the other-than-temporary impairment shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. The following table sets forth a summary of the changes in marketable securities - available-for-sale debt securities that are measured at fair value on a recurring basis: For the Total Beginning of period $ 62,733 Purchase of marketable securities - Interest due at maturity - Other than temporary impairment (62,733 ) Conversion of marketable securities - June 30, 2021 $ - We invest in debt securities. Our investments in debt securities are subject to interest rate risk. To minimize the exposure due to an adverse shift in interest rates, we invest in securities with maturities of two years or less and maintain a weighted average maturity of one year or less. As of June 30, 2021, all of our investments had maturities between one and three years. The marketable debt security investments are evaluated for impairment if events or circumstances arise that indicate that the carrying amount of such assets may not be recoverable. During the three and six months ended June 30, 2021 the Company recognized a $62,733 impairment of the debt security. The following table sets forth a summary of the changes in equity investments, at cost that are measured at fair value on a non-recurring basis: For the For the Total Total Beginning of period $ 317,096 $ 217,096 Purchase of equity investments 50,000 150,000 June 30, 2021 $ 367,096 $ 367,096 The Company has elected to measure its equity securities without a readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. An election to measure an equity security in accordance with this paragraph shall be made for each investment separately. The Company performed a qualitative assessment considering impairment indicators to evaluate whether these investments were impaired. Impairment indicators that the Company considered included the following: a) a significant deterioration in the earnings performance, credit rating, asset quality or business prospects of the investee; b) a significant adverse change in the regulatory, economic or technology environment of the investee; c) a significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates; d) a bona fide offer to purchase or an offer by the investee to sell the investment; e) factors that raise significant concerns about the investee’s ability to continue as a going concern. |
Commitments and Contingencies | Commitments and Contingencies The Company follows subtopic 450-20 of the FASB ASC to report accounting for contingencies. Certain conditions may exist as of the date the condensed consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s condensed consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. |
Foreign Currency | Foreign Currency Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at our Consolidated Balance Sheet dates. Results of operations and cash flows are translated using the average exchange rates throughout the periods. The effect of exchange rate fluctuations on the translation of assets and liabilities is included as a component of stockholders’ equity in accumulated other comprehensive income. Gains and losses from foreign currency transactions, which are included in operating expenses, have not been significant in any period presented. |
Derivative Liability | Derivative Liability The Company evaluates its debt and equity issuances to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with paragraph 815-10-05-4 and Section 815-40-25 of the FASB Accounting Standards Codification. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as either an asset or a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the consolidated statement of operations as other income or expense. Upon conversion, exercise or cancellation of a derivative instrument, the instrument is marked to fair value at the date of conversion, exercise or cancellation and then the related fair value is reclassified to equity. In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Equity instruments that are initially classified as equity that become subject to reclassification are reclassified to liability at the fair value of the instrument on the reclassification date. Derivative instrument liabilities will be classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument is expected within 12 months of the balance sheet date. The Company adopted Section 815-40-15 of the FASB Accounting Standards Codification (“Section 815-40-15”) to determine whether an instrument (or an embedded feature) is indexed to the Company’s own stock. Section 815-40-15 provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instrument’s contingent exercise and settlement provisions. The Company changed its method of accounting for the debt and warrants through the early adoption of ASU 2017-11 during the three months ended December 31, 2017, on a retrospective basis. The Company utilizes a Monte Carlo simulation model for the make whole feature and a binomial option model for convertible notes that have an option to convert at a variable number of shares to compute the fair value of the derivative and to mark to market the fair value of the derivative at each balance sheet date. The inputs utilized in the application of the Monte Carlo model included a starting stock price, an expected term of each debenture remaining from the valuation date to maturity, an estimated volatility, drift, and a risk-free rate. The inputs utilized in the application of the Binomial model included a stock price on valuation date, an expected term of each debenture remaining from the valuation date to maturity, an estimated volatility, and a risk-free rate. The Company records the change in the fair value of the derivative as other income or expense in the consolidated statements of operations. |
Revenue Recognition | Revenue Recognition Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We determine revenue recognition through the following steps: ● identification of the contract, or contracts, with a customer; ● identification of the performance obligations in the contract; ● determination of the transaction price. The transaction price for any given subscriber could decrease based on any payments made to that subscriber. A subscriber may be eligible for payment through one or more of the monetization features offered to Vocal creators, including earnings through reads (on a cost per mile basis) and cash prizes offered to Challenge winners; ● allocation of the transaction price to the performance obligations in the contract; and ● recognition of revenue when, or as, we satisfy a performance obligation. Revenue disaggregated by revenue source for the three and six months ended June 30, 2021 and 2020 consists of the following: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Agency (Managed Services + Branded Content) $ 488,836 $ 258,834 $ 917,136 $ 507,085 Platform (Creator Subscriptions) 451,965 54,972 758,867 90,934 Ecommerce 5,526 - 5,526 - Affiliate Sales 7,798 8,195 15,806 16,344 Other Revenue 16,732 539 17,435 1,319 $ 970,857 $ 322,540 $ 1,714,770 $ 615,682 Timing of revenue recognition for the three and six months ended June 30, 2021 and 2020 consists of the following: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Products and services transferred over time $ 940,801 $ 313,806 $ 1,676,003 $ 598,019 Products transferred at a point in time 30,056 8,734 38,767 17,663 $ 970,857 $ 322,540 $ 1,714,770 $ 615,682 Agency Revenue Managed Services The Company provides Studio/Agency Service offerings to business-to-business (B2B) and business-to-consumer (B2C) product and service brands which encompasses a full range of digital marketing and e-commerce solutions. The Company’s services include the setup and ongoing management of clients’ websites, Amazon and Shopify storefronts and listings, social media pages, search engine marketing, and other various tools and sales channels utilized by e-commerce sellers for sales and growth optimization. Contracts are broken into three categories: Partners, Monthly Services, and Projects. Contract amounts for Partner and Monthly Services clients range from approximately $500-$7,500 per month while Project amounts vary depending on the scope of work. Partner and Monthly clients are billed monthly for the work completed within that month. Partner Clients may or may not have an additional billing component referred to as Sales Performance Fee, which is a fee based upon a previously agreed upon percentage point of the client’s total sales for the month. Some Partners may also have projects within their contracts that get billed and recognized as agreed upon project milestones are achieved. Revenue is recognized over time as service obligations and milestones in the contract are met. Branded Content Branded content represents the revenue recognized from the Company’s obligation to create and publish branded articles for clients on the Vocal platform and promote said stories, tracking engagement for the client. The performance obligation is satisfied when the Company successfully publishes the articles on its platform and meets any required promotional milestones as per the contract. The revenue is recognized over time as the services are performed and any required milestones are met. Below are the significant components of a typical agreement pertaining to branded content revenue: ● The Company collects fixed fees ranging from $10,000 to $110,000. ● The articles are created and published within three months of the signed agreement, or as previously negotiated with the client. ● The articles are promoted per the contract and engagement reports are provided to the client. ● Most billing for contracts occurs 50% at signing and 50% upon completion of the services, with net payment terms varying per client. ● Most contracts include provisions for clients to acquire content rights at the end of the campaign for a flat fee. Platform Revenue Creator Subscriptions Vocal+ is a premium subscription offering for Vocal creators. In addition to joining for free, Vocal creators now have the option to sign up for a Vocal+ membership for either $9.99 monthly or $99 annually, though these amounts are occasionally subject to promotional discounts. Vocal+ subscribers receive access to value-added features such as increased rate of cost per mille (thousand) (“CPM”) monetization, a decreased minimum withdrawal threshold, a discount on platform processing fees, member badges for their profiles, access to exclusive Vocal+ Challenges, and early access to new Vocal features. Subscription revenues stem from both monthly and annual subscriptions, the latter of which is amortized over a twelve-month period. Any customer payments received are recognized over the subscription period, with any payments received in advance being deferred until they are earned. The transaction price for any given subscriber could decrease based on any payments made to that subscriber. A subscriber may be eligible for payment through one or more of the monetization features offered to Vocal creators, including earnings through reads (on a cost per mille basis) and cash prizes offered to Challenge winners. Estimates are utilized for payments made for earnings through reads, by establishing the lifetime a subscriber has had a Vocal account, determining the percentage of that lifetime that the subscriber has been a paying customer, and applying that percentage to payments for earnings through reads in the relevant reporting period. Affiliate Sales Revenue Affiliate sales represents the commission the Company receives when a purchase is made through affiliate links placed within content hosted on the Vocal platform. Affiliate revenue is earned on a “click through” basis, upon referring visitors, via said links, to an affiliate’s site and having them complete a specific outcome, most commonly a product purchase. The Company uses multiple affiliate platforms, such as Skimlinks, Amazon, and Tune, to form and maintain thousands of vendor relationships. Each vendor establishes their own commission percentage, which typically range from 2-20%. The revenue is recognized upon receipt as reliable estimates could not be made. |
E-Commerce Revenue | E-Commerce Revenue The Company generates revenue through the sale of consumer products through its e-commerce distribution channels. The Company satisfies its performance obligation upon receipt of product by its customers. |
Deferred Revenue | Deferred Revenue Deferred revenue consists of billings and payments from clients in advance of revenue recognition. As of June 30, 2021, and December 31, 2020, the Company had deferred revenue of $208,517 and $88,637, respectively. |
Accounts Receivable and Allowances | Accounts Receivable and Allowances Accounts receivable are recorded and carried when the Company has performed the work in accordance with managed services, project, partner, consulting and branded content agreements. For example, we bill a managed service client monthly when we have updated their Amazon store, modified SEO or completed the other services listed in the agreement. For projects and branded content, we will bill the client and record the receivable once milestones are reached that are set in the agreement. We make estimates for the allowance for doubtful accounts and allowance for unbilled receivables based upon our assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, and other factors that may affect our ability to collect from customers. During the six months ended June 30, 2021, the Company recorded $0 as a bad debt expense. As of June 30, 2021, and December 31, 2020, the Company has an allowance for doubtful accounts of $76,340 and $80,509, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense for all equity–based payments granted in accordance with Accounting Standards Codification (“ASC”) 718 “Compensation – Stock Compensation”. Restricted stock awards are granted at the discretion of the Company. These awards are restricted as to the transfer of ownership and generally vest over the requisite service periods. The fair value of an option award is estimated on the date of grant using the Black–Scholes option valuation model. The Black–Scholes option valuation model requires the development of assumptions that are inputs into the model. These assumptions are the value of the underlying share, the expected stock volatility, the risk–free interest rate, the expected life of the option, the dividend yield on the underlying stock and the expected forfeiture rate. Expected volatility is benchmarked against similar companies in a similar industry over the expected option life and other appropriate factors. Risk–free interest rates are calculated based on continuously compounded risk–free rates for the appropriate term. The dividend yield is assumed to be zero as the Company has never paid or declared any cash dividends on its Common stock and does not intend to pay dividends on its Common stock in the foreseeable future. The expected forfeiture rate is estimated based on management’s best estimate. Determining the appropriate fair value model and calculating the fair value of equity–based payment awards requires the input of the subjective assumptions described above. The assumptions used in calculating the fair value of equity–based payment awards represent management’s best estimates, which involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and the Company uses different assumptions, our equity–based compensation could be materially different in the future. The Company issues awards of equity instruments, such as stock options and restricted stock units, to employees and certain non-employee directors. Compensation expense related to these awards is based on the fair value of the underlying stock on the award date and is amortized over the service period, defined as the vesting period, using the cliff straight-line method. The vesting period is generally one to three years. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock units. Compensation expense is reduced for actual forfeitures as they occur. |
Loss Per Share | Loss Per Share Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods when losses are reported, which is the case for the three and six months ended June 30, 2021 and 2020 presented in these condensed consolidated financial statements, the weighted-average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. The Company had the following common stock equivalents at June 30, 2021 and 2020: June 30, 2021 2020 Options 2,363,187 452,523 Warrants 7,496,070 936,240 Convertible notes - related party - 5,574 Convertible notes 1,008,798 1,562,138 Totals 10,868,055 2,956,475 |
Reclassifications | Reclassifications Certain prior year amounts in the consolidated financial statements and the notes thereto have been reclassified where necessary to conform to the current year's presentation. These reclassifications did not affect the prior period's total assets, total liabilities, stockholders’ deficit, net loss or net cash used in operating activities. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance In December 2019, the FASB issued authoritative guidance intended to simplify the accounting for income taxes (ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”). This guidance eliminates certain exceptions to the general approach to the income tax accounting model and adds new guidance to reduce the complexity in accounting for income taxes. This guidance is effective for annual periods after December 15, 2020, including interim periods within those annual periods. The updated guidance, which became effective for fiscal years beginning after December 15, 2020, did not have a material impact on the Company’s condensed consolidated financial statements. |
Recent Accounting Guidance Not Yet Adopted | Recent Accounting Guidance Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU-2016-13”). ASU 2016-13 affects loans, debt securities, trade receivables, and any other financial assets that have the contractual right to receive cash. The ASU requires an entity to recognize expected credit losses rather than incurred losses for financial assets. ASU 2016-13 is effective for the fiscal year beginning after December 15, 2022, including interim periods within that fiscal year. The Company is currently evaluating the impact of the new guidance on its condensed consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU amends the guidance on convertible instruments and the derivatives scope exception for contracts in an entity’s own equity, and also improves and amends the related EPS guidance for both Subtopics. The ASU will be effective for annual reporting periods after December 15, 2021, and interim periods within those annual periods and early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its condensed consolidated financial statements. In May 2021, the FASB issued authoritative guidance intended to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after modification or exchange. (ASU 2021-04), “Derivatives and Hedging Contracts in Entity’s Own Equity (Topic 815). This guidance amendments provide measurement, recognition, and disclosure guidance for an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after modification or exchange. This guidance is effective for annual periods after December 15, 2021, including interim periods within those annual periods. The Company is currently evaluating the impact of the new guidance on its condensed consolidated financial statements. Management does not believe that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying condensed consolidated financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies and Practices (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of consolidated subsidiaries and/or entities | Name of combined affiliate State or other Company Jerrick Ventures LLC Delaware 100 % Abacus Tech Pty Ltd Australia 100 % Seller’s Choice, LLC New Jersey 100 % Recreatd, LLC Delaware 100 % Give, LLC Delaware 100 % Creatd Partners LLC Delaware 100 % Plant Camp LLC Delaware 89 % Sci-Fi Shop, LLC Delaware 100 % OG Collection LLC Delaware 100 % VMENA LLC Delaware 100 % Vocal For Brands, LLC Delaware 100 % Vocal Ventures LLC Delaware 100 % What to Buy, LLC Delaware 100 % |
Schedule of relevant assets and liabilities that are measured at fair value on a recurring basis | Total Quoted Quoted Significant Assets: Marketable securities - debt securities $ - $ - $ - $ - Total assets $ - $ - $ - $ - Liabilities: Derivative liabilities $ 436,295 $ - $ - $ 436,295 Total Liabilities 436,295 $ - $ - $ 436,295 Total Quoted Quoted Significant Assets: Equity investments, at cost $ 367,096 $ - $ - $ 367,096 Total assets $ 367,096 $ - $ - $ 367,096 |
Schedule of fair value measurement inputs and valuation techniques | Fair Value Valuation Methodology Unobservable Inputs Marketable securities - debt securities $ - Discounted cash flow analysis Expected cash flows from the investment Derivative liabilities $ 436,295 Monte Carlo simulations and Binomial model Risk free rate Expected volatility; Drift rate Fair Value Valuation Methodology Unobservable Inputs Equity investments, at cost $ 367,096 Qualitative assessment per ASC 321-10-35 Qualitative factors |
Schedule of changes in marketable securities | For the Total Beginning of period $ 62,733 Purchase of marketable securities - Interest due at maturity - Other than temporary impairment (62,733 ) Conversion of marketable securities - June 30, 2021 $ - For the For the Total Total Beginning of period $ 317,096 $ 217,096 Purchase of equity investments 50,000 150,000 June 30, 2021 $ 367,096 $ 367,096 |
Schedule of revenue disaggregated by revenue | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Agency (Managed Services + Branded Content) $ 488,836 $ 258,834 $ 917,136 $ 507,085 Platform (Creator Subscriptions) 451,965 54,972 758,867 90,934 Ecommerce 5,526 - 5,526 - Affiliate Sales 7,798 8,195 15,806 16,344 Other Revenue 16,732 539 17,435 1,319 $ 970,857 $ 322,540 $ 1,714,770 $ 615,682 |
Schedule of revenue recognition | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Products and services transferred over time $ 940,801 $ 313,806 $ 1,676,003 $ 598,019 Products transferred at a point in time 30,056 8,734 38,767 17,663 $ 970,857 $ 322,540 $ 1,714,770 $ 615,682 |
Schedule of common stock equivalents | June 30, 2021 2020 Options 2,363,187 452,523 Warrants 7,496,070 936,240 Convertible notes - related party - 5,574 Convertible notes 1,008,798 1,562,138 Totals 10,868,055 2,956,475 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of notes payable | Outstanding Principal as of June 30, December 31, Interest Maturity Seller’s Choice Note $ 660,000 $ 660,000 30 % September 2020 The May 2020 PPP Loan Agreement 252,432 412,500 1 % April 2022 The April 2020 PPP Loan Agreement - 282,432 1 % May 2022 The October 2020 Loan Agreement 56,796 55,928 14 % July 21 The November 2020 Loan Agreement - 23,716 14 % May 2021 The February 2021 Loan Agreement 85,372 - 14 % July 21 The April 2021 Loan Agreement 41,585 - 10 % October 22 1,096,185 1,434,576 Less: Debt Discount (7,549 ) - Less: Debt Issuance Costs - - 1,088,636 1,434,576 Less: Current Debt (1,054,600 ) (1,221,539 ) Total Long-Term Debt $ 34,036 $ 213,037 |
Convertible Note Payable (Table
Convertible Note Payable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Convertible Note Payable [Abstract] | |
Schedule of convertible notes payable | Outstanding Principal as of Warrants granted June 30, 2021 December 31, 2020 Interest Rate Conversion Price Maturity Date Quantity Exercise Price The September 2020 convertible Loan Agreement $ - $ 341,880 12 % - (*) September-21 85,555 5 The First December 2020 convertible Loan Agreement - 600,000 12 % - (*) December-21 - - The October 2020 convertible Loan Agreement - 169,400 6 % - (*) October-21 - - The Second December 2020 convertible Loan Agreement 169,400 169,400 6 % - (*) December-21 - - The May 2021 Loan 4,666,669 - - % 5.00 (*) November-22 1,090,908 4.50- 4,836,069 1,280,680 Less: Debt Discount (2,174,294 ) (309,637 ) Less: Debt Issuance Costs (495,327 ) (73,527 ) 2,166,448 897,516 Less: Current Debt (67,048 ) (897,516 ) Total Long-Term Debt $ 2,099,400 $ - |
Related Party (Tables)
Related Party (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of convertible notes payable - related party | Outstanding Principal as of Warrants granted June 30, December 31, Interest Maturity Quantity Exercise The September 2020 Goldberg Loan Agreement 16,705 16,705 7 % September 2022 - - The September 2020 Rosen Loan Agreement 3,295 3,295 7 % September 2022 - - 20,000 20,000 Less: Debt Discount (12,110 ) (17,068 ) Less: Debt Issuance Costs - - 7,890 2,932 Less: Current Debt (7,890 ) (2,932 ) $ - $ - |
Derivative Liabilities (Tables)
Derivative Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of changes in the derivative liabilities | Three Months Ended June 30, 2021 Level 1 Level 2 Level 3 Derivative liabilities as April 1, 2021 $ - $ - $ 344,404 Addition - - 108,880 Extinguishment (82,431 ) Changes in fair value - - 65,442 Derivative liabilities as June 30, 2021 $ - $ - $ 436,295 Six Months Ended June 30, 2021 Level 1 Level 2 Level 3 Derivative liabilities as January 1, 2021 $ - $ - $ 42,231 Addition - - 417,241 Extinguishment (286,009 ) Changes in fair value - - 262,831 Derivative liabilities as June 30, 2021 $ - $ - $ 436,295 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders’ Equity (Tables) [Line Items] | |
Schedule of warrant activity | Options Weighted Weighted Balance – December 31, 2020 – outstanding 541,021 12.75 3.27 Granted 1,825,500 6.37 6.21 Exercised - - - Forfeited/Cancelled (3,334 ) 15.00 - Balance – June 30, 2021 – outstanding and exercisable 2,363,187 7.82 5.13 |
Schedule of outstanding and exercisable | Option Outstanding Option Exercisable Exercise price Number Weighted Weighted Number Weighted $ 7.82 2,363,187 5.13 12.73 537,687 3.82 |
Schedule of outstanding and exercisable | Warrants Outstanding Warrants Exercisable Exercise price Number Weighted Weighted Number Weighted $ 4.88 7,496,070 4.33 4.88 7,496,070 4.33 |
Schedule of activity related to RSUs | Restricted stock units (RSUs) Total Grant date RSAs non-vested at January 1, 2021 - $ - RSAs granted 69,635 $ 3.75 – 4.32 RSAs vested - $ - RSAs forfeited - $ - RSAs non-vested June 30, 2021 69,635 $ 375 – 4.32 |
Options [Member] | |
Stockholders’ Equity (Tables) [Line Items] | |
Schedule of assumptions warrant granted | June 30, Exercise price $ 2.55 – 14.10 Expected dividends 0 Expected volatility 223.15 – 242.98% Risk free interest rate 0.46 – 0.98% Expected life of option 5 - 7 years |
Warrant [Member] | |
Stockholders’ Equity (Tables) [Line Items] | |
Schedule of assumptions warrant granted | June 30, Exercise price $ 4.50 Expected dividends 0 % Expected volatility 237.14 % Risk free interest rate 0.82 % Expected life of warrant 5 years |
Schedule of warrant activity | Warrant Weighted Balance – December 31, 2020 – outstanding 6,130,948 4.96 Granted 1,751,892 5.68 Exercised (376,214 ) 4.67 Forfeited/Cancelled (10,556 ) 24.00 Balance – June 30, 2021 – outstanding 7,496,070 4.88 Balance – June 30, 2021 – exercisable 7,496,070 $ 4.88 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of components of lease expense | Three Months Ended Operating lease cost $ 20,117 Short term lease cost 3,714 Total net lease cost $ 23,831 Six Months Ended Operating lease cost $ 39,826 Short term lease cost 7,428 Total net lease cost $ 47,254 |
Schedule supplemental cash flow and other information related to leases | Six Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating lease payments 53,977 Weighted average remaining lease term (in years): 2.0 Weighted average discount rate: 13 % |
Schedule of future minimum payments required under the lease | Twelve Months Ending December 31, 2021 $ 55,348 2022 114,627 2023 53,094 Total $ 223,069 |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Asset Acquisition [Abstract] | |
Schedule of components of the purchase price | Purchase price: Cash paid to seller $ 300,000 Fair value of equity investment purchased on June 1, 2021 175,000 Total purchase price 475,000 Assets acquired: Cash 5,232 Accounts Receivable 7,645 Inventory 19,970 Total assets acquired 32,847 Liabilities assumed: Accounts payable and accrued expenses 5,309 Deferred Revenue 671 Loan Payable 100,000 Total liabilities assumed 105,980 Net assets acquired (73,133 ) Non-controlling interest in consolidated subsidiary 56,865 Excess purchase price $ 604,998 Goodwill $ 2,198 Trade Names & Trademarks 105,500 Know-How and Intellectual Property 422,000 Website 51,300 Customer Relationships 24,000 Excess purchase price $ 604,998 |
Organization and Operations (De
Organization and Operations (Details) - shares | Feb. 05, 2016 | Jun. 04, 2021 | Sep. 11, 2019 |
Series of Individually Immaterial Business Acquisitions [Member] | |||
Organization and Operations (Details) [Line Items] | |||
Acquired percentage | 89.00% | 100.00% | |
Kent Campbell [Member] | |||
Organization and Operations (Details) [Line Items] | |||
Cancelled of common stock | 39,091 | ||
Great Plains Holdings Inc [Member] | |||
Organization and Operations (Details) [Line Items] | |||
Issuance of common shares for cash | 475,000 | ||
Series A Convertible Preferred Stock [Member] | |||
Organization and Operations (Details) [Line Items] | |||
Issuance of common shares for cash | 33,415 | ||
Series B Convertible Preferred Stock [Member] | |||
Organization and Operations (Details) [Line Items] | |||
Issuance of common shares for cash | 8,064 |
Significant Accounting Polici_3
Significant Accounting Policies and Practices (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies and Practices (Details) [Line Items] | |||
Cash excess amounts | $ 250,000 | ||
Uninsured cash balance | $ 1,900,000 | $ 1,900,000 | |
Description of investments | Our investments in debt securities are subject to interest rate risk. To minimize the exposure due to an adverse shift in interest rates, we invest in securities with maturities of two years or less and maintain a weighted average maturity of one year or less. | ||
Debt security | 62,733 | $ 62,733 | |
Billing description | A subscriber may be eligible for payment through one or more of the monetization features offered to Vocal creators, including earnings through reads (on a cost per mile basis) and cash prizes offered to Challenge winners; | ||
Deferred revenue | $ 208,517 | $ 208,517 | $ 88,637 |
Bad debt expense | 0 | ||
Allowance for doubtful accounts | 76,340 | $ 80,509 | |
Minimum [Member] | |||
Significant Accounting Policies and Practices (Details) [Line Items] | |||
Contract amounts for partner and monthly services clients | 500 | ||
Fixed fees | $ 10,000 | ||
Affiliate sales percentage | 2.00% | ||
Maximum [Member] | |||
Significant Accounting Policies and Practices (Details) [Line Items] | |||
Contract amounts for partner and monthly services clients | $ 7,500 | ||
Fixed fees | $ 110,000 | ||
Affiliate sales percentage | 20.00% | ||
Subscription Arrangement [Member] | |||
Significant Accounting Policies and Practices (Details) [Line Items] | |||
Payment related percentage, description | Vocal+ is a premium subscription offering for Vocal creators. In addition to joining for free, Vocal creators now have the option to sign up for a Vocal+ membership for either $9.99 monthly or $99 annually, though these amounts are occasionally subject to promotional discounts. Vocal+ subscribers receive access to value-added features such as increased rate of cost per mille (thousand) (“CPM”) monetization, a decreased minimum withdrawal threshold, a discount on platform processing fees, member badges for their profiles, access to exclusive Vocal+ Challenges, and early access to new Vocal features. Subscription revenues stem from both monthly and annual subscriptions, the latter of which is amortized over a twelve-month period. Any customer payments received are recognized over the subscription period, with any payments received in advance being deferred until they are earned. |
Significant Accounting Polici_4
Significant Accounting Policies and Practices (Details) - Schedule of consolidated subsidiaries and/or entities | 6 Months Ended |
Jun. 30, 2021 | |
Jerrick Ventures LLC [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of combined affiliate | Delaware |
State or other jurisdiction of incorporation or organization | 100% |
Abacus Tech Pty Ltd [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of combined affiliate | Australia |
State or other jurisdiction of incorporation or organization | 100% |
Seller’s Choice, LLC [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of combined affiliate | New Jersey |
State or other jurisdiction of incorporation or organization | 100% |
Recreatd, LLC [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of combined affiliate | Delaware |
State or other jurisdiction of incorporation or organization | 100% |
Give, LLC [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of combined affiliate | Delaware |
State or other jurisdiction of incorporation or organization | 100% |
Creatd Partners LLC [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of combined affiliate | Delaware |
State or other jurisdiction of incorporation or organization | 100% |
Plant Camp LLC [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of combined affiliate | Delaware |
State or other jurisdiction of incorporation or organization | 89% |
Sci-Fi Shop, LLC [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of combined affiliate | Delaware |
State or other jurisdiction of incorporation or organization | 100% |
OG Collection LLC [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of combined affiliate | Delaware |
State or other jurisdiction of incorporation or organization | 100% |
VMENA LLC [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of combined affiliate | Delaware |
State or other jurisdiction of incorporation or organization | 100% |
Vocal For Brands, LLC [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of combined affiliate | Delaware |
State or other jurisdiction of incorporation or organization | 100% |
Vocal Ventures LLC [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of combined affiliate | Delaware |
State or other jurisdiction of incorporation or organization | 100% |
What to Buy, LLC [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Name of combined affiliate | Delaware |
State or other jurisdiction of incorporation or organization | 100% |
Significant Accounting Polici_5
Significant Accounting Policies and Practices (Details) - Schedule of relevant assets and liabilities that are measured at fair value on a recurring basis | Jun. 30, 2021USD ($) |
Fair value on recurring basis [Member] | |
Significant Accounting Policies and Practices (Details) - Schedule of relevant assets and liabilities that are measured at fair value on a recurring basis [Line Items] | |
Marketable securities - debt securities | |
Total assets | |
Derivative liabilities | 436,295 |
Total Liabilities | 436,295 |
Fair value on recurring basis [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) [Member] | |
Significant Accounting Policies and Practices (Details) - Schedule of relevant assets and liabilities that are measured at fair value on a recurring basis [Line Items] | |
Marketable securities - debt securities | |
Total assets | |
Derivative liabilities | |
Total Liabilities | |
Fair value on recurring basis [Member] | Quoted Prices for Similar Assets or Liabilities in Active Markets (Level 2) [Member] | |
Significant Accounting Policies and Practices (Details) - Schedule of relevant assets and liabilities that are measured at fair value on a recurring basis [Line Items] | |
Marketable securities - debt securities | |
Total assets | |
Derivative liabilities | |
Total Liabilities | |
Fair value on recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |
Significant Accounting Policies and Practices (Details) - Schedule of relevant assets and liabilities that are measured at fair value on a recurring basis [Line Items] | |
Marketable securities - debt securities | |
Total assets | |
Derivative liabilities | 436,295 |
Total Liabilities | 436,295 |
Fair value on non-recurring basis [Member] | |
Significant Accounting Policies and Practices (Details) - Schedule of relevant assets and liabilities that are measured at fair value on a recurring basis [Line Items] | |
Total assets | 367,096 |
Equity investments, at cost | 367,096 |
Fair value on non-recurring basis [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) [Member] | |
Significant Accounting Policies and Practices (Details) - Schedule of relevant assets and liabilities that are measured at fair value on a recurring basis [Line Items] | |
Total assets | |
Equity investments, at cost | |
Fair value on non-recurring basis [Member] | Quoted Prices for Similar Assets or Liabilities in Active Markets (Level 2) [Member] | |
Significant Accounting Policies and Practices (Details) - Schedule of relevant assets and liabilities that are measured at fair value on a recurring basis [Line Items] | |
Total assets | |
Equity investments, at cost | |
Fair value on non-recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |
Significant Accounting Policies and Practices (Details) - Schedule of relevant assets and liabilities that are measured at fair value on a recurring basis [Line Items] | |
Total assets | 367,096 |
Equity investments, at cost | $ 367,096 |
Significant Accounting Polici_6
Significant Accounting Policies and Practices (Details) - Schedule of fair value measurement inputs and valuation techniques | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Marketable securities - debt securities [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | |
Valuation Methodology | Discounted cash flow analysis |
Unobservable Inputs | Expected cash flows from the investment |
Derivative liabilities [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 436,295 |
Valuation Methodology | Monte Carlo simulations and Binomial model |
Unobservable Inputs | Risk free rate Expected volatility; Drift rate |
Equity investments, at cost [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 367,096 |
Valuation Methodology | Qualitative assessment per ASC 321-10-35 |
Unobservable Inputs | Qualitative factors |
Significant Accounting Polici_7
Significant Accounting Policies and Practices (Details) - Schedule of changes in marketable securities - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Significant Accounting Policies and Practices (Details) - Schedule of changes in marketable securities [Line Items] | ||
Beginning of period | $ 317,096 | $ 217,096 |
Purchase of equity investments | 50,000 | 150,000 |
Ending of period | 367,096 | 367,096 |
Marketable securities - debt securities [Member] | ||
Significant Accounting Policies and Practices (Details) - Schedule of changes in marketable securities [Line Items] | ||
Beginning of period | 62,733 | 62,733 |
Purchase of marketable securities | ||
Interest due at maturity | ||
Other than temporary impairment | (62,733) | (62,733) |
Conversion of marketable securities | ||
Ending of period |
Significant Accounting Polici_8
Significant Accounting Policies and Practices (Details) - Schedule of revenue disaggregated by revenue - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Significant Accounting Policies and Practices (Details) - Schedule of revenue disaggregated by revenue [Line Items] | ||||
Net revenue | $ 970,857 | $ 322,540 | $ 1,714,770 | $ 615,682 |
Agency (Managed Services + Branded Content) [Member] | ||||
Significant Accounting Policies and Practices (Details) - Schedule of revenue disaggregated by revenue [Line Items] | ||||
Net revenue | 488,836 | 258,834 | 917,136 | 507,085 |
Platform (Creator Subscriptions) [Member] | ||||
Significant Accounting Policies and Practices (Details) - Schedule of revenue disaggregated by revenue [Line Items] | ||||
Net revenue | 451,965 | 54,972 | 758,867 | 90,934 |
Ecommerce [Member] | ||||
Significant Accounting Policies and Practices (Details) - Schedule of revenue disaggregated by revenue [Line Items] | ||||
Net revenue | 5,526 | 5,526 | ||
Affiliate Sales [Member] | ||||
Significant Accounting Policies and Practices (Details) - Schedule of revenue disaggregated by revenue [Line Items] | ||||
Net revenue | 7,798 | 8,195 | 15,806 | 16,344 |
Other revenue [Member] | ||||
Significant Accounting Policies and Practices (Details) - Schedule of revenue disaggregated by revenue [Line Items] | ||||
Net revenue | $ 16,732 | $ 539 | $ 17,435 | $ 1,319 |
Significant Accounting Polici_9
Significant Accounting Policies and Practices (Details) - Schedule of revenue recognition - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of revenue recognition [Abstract] | ||||
Products and services transferred over time | $ 940,801 | $ 313,806 | $ 1,676,003 | $ 598,019 |
Products transferred at a point in time | 30,056 | 8,734 | 38,767 | 17,663 |
Revenue recognition | $ 970,857 | $ 322,540 | $ 1,714,770 | $ 615,682 |
Significant Accounting Polic_10
Significant Accounting Policies and Practices (Details) - Schedule of common stock equivalents - shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Significant Accounting Policies and Practices (Details) - Schedule of common stock equivalents [Line Items] | ||
Common stock equivalents, total | 10,868,055 | 2,956,475 |
Warrants [Member] | ||
Significant Accounting Policies and Practices (Details) - Schedule of common stock equivalents [Line Items] | ||
Common stock equivalents, total | 7,496,070 | 936,240 |
Options [Member] | ||
Significant Accounting Policies and Practices (Details) - Schedule of common stock equivalents [Line Items] | ||
Common stock equivalents, total | 2,363,187 | 452,523 |
Convertible notes - related party [Member] | ||
Significant Accounting Policies and Practices (Details) - Schedule of common stock equivalents [Line Items] | ||
Common stock equivalents, total | 5,574 | |
Convertible notes [Member] | ||
Significant Accounting Policies and Practices (Details) - Schedule of common stock equivalents [Line Items] | ||
Common stock equivalents, total | 1,008,798 | 1,562,138 |
Going Concern (Details)
Going Concern (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accumulated deficit | $ 87.5 |
Net loss | 15.2 |
Net cash used in operating activities | $ 11 |
Equity Investments, at Cost (De
Equity Investments, at Cost (Details) - USD ($) | May 27, 2021 | May 21, 2021 | Feb. 17, 2021 | Oct. 23, 2020 | Oct. 02, 2020 |
Investment Holdings [Abstract] | |||||
Marketable debt security | $ 102,096 | ||||
Converted into shares of preferred stock (in Shares) | 119,355 | ||||
Equity investment ownership percentage | 10.00% | 3.30% | 3.80% | 1.30% | |
Purchase of ownership amount | $ 110,000 | $ 50,000 | $ 100,000 | $ 115,000 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | Apr. 09, 2021 | Oct. 06, 2020 | Sep. 11, 2019 | Jun. 30, 2021 | Mar. 11, 2020 | Nov. 24, 2020 | May 04, 2020 | Apr. 30, 2020 |
Notes Payable (Details) [Line Items] | ||||||||
Interest rate | 9.50% | |||||||
Accrued Interest | $ 114 | |||||||
Principal repaid | $ 86,525 | |||||||
Principal repaid, description | During the six months ended June 30, 2021, the Company repaid $136,597 in principal and was forgiven $275,903 of principal and $3,119 of accrued interest. | |||||||
Loan agreement, description | the Company entered into a secured loan agreement (the “October 2020 Loan Agreement”) with a lender (the “October 2020 Lender”), whereby the October 2020 Lender issued the Company a secured promissory note of A$74,300 AUD or $56,796 United States Dollars (the “October 2020 Note”). Pursuant to the October 2020 Loan Agreement, the October 2020 Note has an effective interest rate of 14%. The maturity date of the October 2020 Note is September 30, 2021 (the “October 2020 Maturity Date”) at which time all outstanding principal, accrued and unpaid interest and other amounts due under the October 2020 Loan Agreement are due. The loan is secured by the Australian research & development credit.During the six months ended June 30, 2021, the Company accrued A$5,158 in interest. The November 2020 Loan Agreement On November 24, 2020, the Company entered into a loan agreement (the “November 2020 Loan Agreement”) with a lender (the “November 2020 Lender”) whereby the November 2020 Lender issued the Company a promissory note of $34,000 (the “November 2020 Note”). Pursuant to the November 2020 Loan Agreement, the November 2020 Note has an effective interest rate of 14%. The maturity date of the November 2020 Note is May 25, 2021 (the “November 2020 Maturity Date”), at which time all outstanding principal, accrued and unpaid interest and other amounts due under the November 2020 Note are due. During the six months ended June 30, 2021, the Company repaid $23,716 in principal and $4,736 of accrued interest. The February 2021 Loan Agreement On February 24, 2021, the Company entered into a secured loan agreement (the “February 2021 Loan Agreement”) with a lender (the “February 2021 Lender”), whereby the February 2021 Lender issued the Company a secured promissory note of A$111,683 AUD or $85,372 United States Dollars (the “February 2021 Note”). Pursuant to the February 2021 Loan Agreement, the February 2021 Note has an effective interest rate of 14%. The maturity date of the February 2021 Note is July 31, 2021 (the “February 2021 Maturity Date”) at which time all outstanding principal, accrued and unpaid interest and other amounts due under the February 2021 Loan Agreement are due. The loan is secured by the Australian research & development credit | |||||||
Promissory note issue | $ 128,110 | |||||||
The april 2021 loan agreement | The maturity date of the April 2021 Note is October 8, 2022 (the “April 2021 Maturity Date”), at which time all outstanding principal, accrued and unpaid interest and other amounts due under the April 2021 Note are due. | |||||||
Seller’s Choice Note [Member] | ||||||||
Notes Payable (Details) [Line Items] | ||||||||
Principal amount | $ 660,000 | |||||||
Increase in interest rate due to automatic extension | 5.00% | |||||||
Accrued Interest | $ 98,186 | |||||||
Interest Rate | 30.00% | |||||||
The April 2020 PPP Loan Agreement [Member] | ||||||||
Notes Payable (Details) [Line Items] | ||||||||
Principal amount | $ 282,432 | |||||||
Interest Rate | 1.00% | |||||||
Accrued interest | $ 1,145 | |||||||
Principal repaid | 30,000 | |||||||
The May 2020 PPP Loan Agreement [Member] | ||||||||
Notes Payable (Details) [Line Items] | ||||||||
Accrued Interest | 1,017 | |||||||
Principal amount | $ 412,500 | |||||||
Interest Rate | 1.00% | |||||||
The October 2020 Loan Agreement [Member] | ||||||||
Notes Payable (Details) [Line Items] | ||||||||
Accrued interest | 5,158 | |||||||
The November 2020 Loan Agreement [Member] | ||||||||
Notes Payable (Details) [Line Items] | ||||||||
Accrued Interest | 4,736 | |||||||
Interest Rate | 14.00% | |||||||
Principal repaid | 23,716 | |||||||
Promissory note | $ 34,000 | |||||||
The February 2021 Loan Agreement [Member] | ||||||||
Notes Payable (Details) [Line Items] | ||||||||
Accrued interest | $ 5,398 |
Notes Payable (Details) - Sched
Notes Payable (Details) - Schedule of notes payable - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Outstanding Principal, Total | $ 1,096,185 | $ 1,434,576 |
Outstanding Principal, Less: Debt Discount | (7,549) | |
Outstanding Principal,Less: Debt Issuance Costs | ||
Outstanding Principal, Less: Debt Total | 1,088,636 | 1,434,576 |
Outstanding Principal, Less: Current Debt | (1,054,600) | (1,221,539) |
Outstanding Principal, Total Long-Term Debt | 34,036 | 213,037 |
The May 2020 PPP Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Principal, Total | $ 252,432 | 412,500 |
Interest Rate | 1.00% | |
Maturity Date, description | April 2022 | |
The April 2020 PPP Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Principal, Total | 282,432 | |
Interest Rate | 1.00% | |
Maturity Date, description | May 2022 | |
The October 2020 Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Principal, Total | $ 56,796 | 55,928 |
Interest Rate | 14.00% | |
Maturity Date, description | July 21 | |
The November 2020 Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Principal, Total | 23,716 | |
Interest Rate | 14.00% | |
Maturity Date, description | May 2021 | |
The February 2021 Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Principal, Total | $ 85,372 | |
Interest Rate | 14.00% | |
Maturity Date, description | July 21 | |
The April 2021 Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Principal, Total | $ 41,585 | |
Interest Rate | 10.00% | |
Maturity Date, description | October 22 | |
Seller’s Choice Note [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Principal, Total | $ 660,000 | $ 660,000 |
Interest Rate | 30.00% | |
Maturity Date, description | September 2020 |
Convertible Note Payable (Detai
Convertible Note Payable (Details) - USD ($) | Dec. 09, 2020 | Jul. 01, 2020 | May 31, 2021 | Dec. 30, 2020 | Sep. 23, 2020 | Jul. 29, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 02, 2020 | Oct. 02, 2020 | Sep. 15, 2020 | Aug. 31, 2020 | Jul. 02, 2020 |
Convertible Note Payable (Details) [Line Items] | ||||||||||||||
Note accrues interest rate | 7.00% | |||||||||||||
Derivative liability | $ 112,743 | |||||||||||||
Debt discount | 68,000 | |||||||||||||
Derivative liability | $ 44,743 | |||||||||||||
Principal amount of convertible notes | $ 68,000 | |||||||||||||
Repaid of interest | 3,400 | |||||||||||||
Debt Instrument, Unamortized Discount, Current | 2,174,294 | $ 309,637 | ||||||||||||
Derivative liability | $ 108,880 | |||||||||||||
Debt issuance costs | ||||||||||||||
Converted shares principal (in Shares) | 169,400 | |||||||||||||
Interest on conversion shares | $ 4,620 | |||||||||||||
Common stock shares (in Shares) | 55,631 | |||||||||||||
Gross proceeds | $ 3,690,491 | |||||||||||||
Price per share (in Dollars per share) | $ 1 | |||||||||||||
Conversion Price Per Share (in Dollars per share) | $ 5 | |||||||||||||
Warrants issued (in Shares) | 1,090,908 | |||||||||||||
Debt discount | $ (12,110) | $ (17,068) | ||||||||||||
Warrants issued | $ 1,090,908 | $ 1,601,452 | $ 752,136 | |||||||||||
Debt discount related to original issue | 666,669 | |||||||||||||
The First July 2020 convertible Loan Agreement [Member] | ||||||||||||||
Convertible Note Payable (Details) [Line Items] | ||||||||||||||
Principal amount of convertible notes (in Shares) | 68,000 | |||||||||||||
Note accrues interest rate | 10.00% | |||||||||||||
Interest and principal both due date | Jun. 29, 2021 | |||||||||||||
Maturity date, description | Upon default or 180 days after issuance the First July 2020 Note is convertible into shares of the Company’s common stock, par value $.001 per share (“Conversion Shares”) equal to 61% multiplied by the lowest trade of the common stock during the twenty (15) consecutive trading day period immediately preceding the date of the respective conversion | |||||||||||||
The August 2020 convertible Loan Agreement [Member] | ||||||||||||||
Convertible Note Payable (Details) [Line Items] | ||||||||||||||
Note accrues interest rate | 12.00% | |||||||||||||
Debt discount | $ 65,000 | |||||||||||||
Derivative liability | 55,759 | |||||||||||||
Repaid of interest | 3,400 | |||||||||||||
Common stock issued | 29,859 | |||||||||||||
Promissory note | $ 68,000 | |||||||||||||
Debt Instrument, Unamortized Discount, Current | 3,000 | |||||||||||||
Derivative liability | $ 120,759 | |||||||||||||
Converted principal amount | 68,000 | |||||||||||||
The September 2020 convertible Loan Agreement [Member] | ||||||||||||||
Convertible Note Payable (Details) [Line Items] | ||||||||||||||
Note accrues interest rate | 12.00% | |||||||||||||
Maturity date, description | Upon default or 180 days after issuance the Second July 2020 Note is convertible into shares of the Company’s common stock, par value $.001 per share equal to the closing bid price of the Company’s common stock on the trading day immediately preceding the date of the respective conversion. | |||||||||||||
Debt discount | 146,393 | |||||||||||||
Promissory note | $ 385,000 | |||||||||||||
Debt issuance costs | $ 68,255 | |||||||||||||
Warrants purchase of common stock (in Shares) | 85,555 | |||||||||||||
Repaid | $ 341,880 | |||||||||||||
Debt interest payable | 46,200 | |||||||||||||
The October 2020 convertible Loan Agreement [Member] | ||||||||||||||
Convertible Note Payable (Details) [Line Items] | ||||||||||||||
Note accrues interest rate | 6.00% | |||||||||||||
Debt discount | $ 19,400 | |||||||||||||
Promissory note | $ 169,400 | |||||||||||||
Derivative liability | $ 74,860 | |||||||||||||
The First December 2020 convertible Loan Agreement [Member] | ||||||||||||||
Convertible Note Payable (Details) [Line Items] | ||||||||||||||
Note accrues interest rate | 12.00% | |||||||||||||
Maturity date, description | Upon default the First December 2020 Note is convertible into shares of the Company’s common stock, par value $.001 per share (“Conversion Shares”) equal to the closing bid price of the Company’s common stock on the trading day immediately preceding the date of the respective conversion. | |||||||||||||
Debt discount | $ 113,481 | |||||||||||||
Debt issuance costs | $ 110,300 | |||||||||||||
Repaid | 600,000 | |||||||||||||
Debt interest payable | 4,340 | |||||||||||||
Common stock shares (in Shares) | 600,000 | |||||||||||||
Issuance of warrants (in Shares) | 45,000 | |||||||||||||
The Second December 2020 convertible Loan Agreement [Member] | ||||||||||||||
Convertible Note Payable (Details) [Line Items] | ||||||||||||||
Note accrues interest rate | 6.00% | |||||||||||||
Maturity date, description | Upon default the Second December 2020 Note is convertible into shares of the Company’s common stock, par value $0.001 per share (“Conversion Shares”) equal to 75% of average the lowest three trading prices of the Company’s common stock on the fifteen-trading day immediately preceding the date of the respective conversion. | |||||||||||||
Debt discount | $ 18,900 | |||||||||||||
Promissory note | $ 169,400 | |||||||||||||
The May 2021 Convertible Note [Member] | ||||||||||||||
Convertible Note Payable (Details) [Line Items] | ||||||||||||||
Debt issuance costs | 539,509 | |||||||||||||
Debt discount | $ 1,601,452 | |||||||||||||
Convertible Common Stock [Member] | ||||||||||||||
Convertible Note Payable (Details) [Line Items] | ||||||||||||||
Common stock issued | $ 35,469 | |||||||||||||
Convertible Common Stock [Member] | The First December 2020 convertible Loan Agreement [Member] | ||||||||||||||
Convertible Note Payable (Details) [Line Items] | ||||||||||||||
Common stock issued | $ 45,000 |
Convertible Note Payable (Det_2
Convertible Note Payable (Details) - Schedule of convertible notes payable - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | ||
Convertible Note Payable (Details) - Schedule of convertible notes payable [Line Items] | |||
Outstanding Principal | $ 4,836,069 | $ 1,280,680 | |
Less: Debt Discount | (2,174,294) | (309,637) | |
Less: Debt Issuance Costs | (495,327) | (73,527) | |
Total | 2,166,448 | 897,516 | |
Less: Current Debt | (67,048) | (897,516) | |
Total Long-Term Debt | 2,099,400 | ||
The September 2020 convertible Loan Agreement [Member] | |||
Convertible Note Payable (Details) - Schedule of convertible notes payable [Line Items] | |||
Outstanding Principal | 341,880 | ||
Interest Rate | 12.00% | ||
Conversion Price (in Dollars per share) | [1] | ||
Maturity Date | September-21 | ||
Warrants granted, Quantity (in Shares) | 85,555 | ||
Warrants granted, Exercise Price (in Shares) | 5 | ||
The First December 2020 convertible Loan Agreement [Member] | |||
Convertible Note Payable (Details) - Schedule of convertible notes payable [Line Items] | |||
Outstanding Principal | 600,000 | ||
Interest Rate | 12.00% | ||
Conversion Price (in Dollars per share) | [1] | ||
Maturity Date | December-21 | ||
Warrants granted, Quantity (in Shares) | |||
Warrants granted, Exercise Price (in Shares) | |||
The October 2020 convertible Loan Agreement [Member] | |||
Convertible Note Payable (Details) - Schedule of convertible notes payable [Line Items] | |||
Outstanding Principal | 169,400 | ||
Interest Rate | 6.00% | ||
Conversion Price (in Dollars per share) | [1] | ||
Maturity Date | October-21 | ||
Warrants granted, Quantity (in Shares) | |||
Warrants granted, Exercise Price (in Shares) | |||
The Second December 2020 convertible Loan Agreement [Member] | |||
Convertible Note Payable (Details) - Schedule of convertible notes payable [Line Items] | |||
Outstanding Principal | $ 169,400 | 169,400 | |
Interest Rate | 6.00% | ||
Conversion Price (in Dollars per share) | [1] | ||
Maturity Date | December-21 | ||
Warrants granted, Quantity (in Shares) | |||
Warrants granted, Exercise Price (in Shares) | |||
May 2021 Loan [Member] | |||
Convertible Note Payable (Details) - Schedule of convertible notes payable [Line Items] | |||
Outstanding Principal | $ 4,666,669 | ||
Interest Rate | |||
Conversion Price (in Dollars per share) | [1] | $ 5 | |
Maturity Date | November-22 | ||
Warrants granted, Quantity (in Shares) | 1,090,908 | ||
Warrants granted, Exercise Price (in Shares) | 0 | ||
[1] | As subject to adjustment as further outlined in the notes |
Related Party (Details)
Related Party (Details) - USD ($) | Sep. 14, 2020 | Sep. 30, 2020 | Sep. 15, 2020 | Jun. 30, 2021 | Dec. 02, 2020 |
Related Party (Details) [Line Items] | |||||
Whole derivative laibility | $ 108,880 | ||||
Accrued interest | $ 114 | ||||
Interest rate | 7.00% | ||||
Living expenses | 72,328 | ||||
Loan agreement, description | the Company’s common stock issued to the lender in accordance with the Lender’s Exchange Agreement (see note 11) have a value equal to or less than $6,463,363 determined by using the lowest VWAP of the last 30 days prior to September 14, 2021. The principal amount of the September 2020 Goldberg Note shall increase by 200% of the difference between the initial consideration and the September 14, 2021 value. | the Company’s common stock issued to the lender in accordance with the Lender’s Exchange Agreement (see note 11) have a value equal to or less than $1,274,553 determined by using the lowest VWAP of the last 30 days prior to September 14, 2021. The principal amount of the September 2020 Rosen Note shall increase by 200% of the difference the initial consideration and the September 14, 2021 value. | |||
The September 2020 Goldberg Loan Agreement [Member] | |||||
Related Party (Details) [Line Items] | |||||
Promissory note | $ 16,705 | ||||
Interest rate | 7.00% | ||||
Maturity date | The maturity date of the September 2020 Goldberg Note is September 15, 2022 (the “September 2020 Goldberg Maturity Date”), at which time all outstanding principal, accrued and unpaid interest and other amounts due under note are due. | ||||
Whole derivative laibility | $ 2,557,275 | ||||
Loss on extinguishment of debt | 2,540,570 | ||||
Debt discount | 16,705 | ||||
Accrued interest | $ 580 | ||||
The September 2020 Rosen Loan Agreement [Member] | |||||
Related Party (Details) [Line Items] | |||||
Promissory note | $ 3,295 | ||||
Whole derivative laibility | $ 504,413 | ||||
Loss on extinguishment of debt | 501,118 | ||||
Debt discount | $ 3,295 |
Related Party (Details) - Sched
Related Party (Details) - Schedule of convertible notes payable - related party - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party (Details) - Schedule of convertible notes payable - related party [Line Items] | ||
Notes payable - related party, gross | $ 20,000 | $ 20,000 |
Less: Debt Discount | (12,110) | (17,068) |
Less: Debt Issuance Costs | ||
Notes payable | 7,890 | 2,932 |
Less: Current Debt | (7,890) | (2,932) |
Notes payable - related party, net | ||
The September 2020 Goldberg Loan Agreement [Member] | ||
Related Party (Details) - Schedule of convertible notes payable - related party [Line Items] | ||
Notes payable - related party, gross | $ 16,705 | 16,705 |
Interest Rate | 7.00% | |
Maturity Date | September 2022 | |
Warrants granted, Quantity (in Shares) | ||
Warrants granted, Exercise Price (in Dollars per share) | ||
The September 2020 Rosen Loan Agreement [Member] | ||
Related Party (Details) - Schedule of convertible notes payable - related party [Line Items] | ||
Notes payable - related party, gross | $ 3,295 | $ 3,295 |
Interest Rate | 7.00% | |
Maturity Date | September 2022 | |
Warrants granted, Quantity (in Shares) | ||
Warrants granted, Exercise Price (in Dollars per share) |
Derivative Liabilities (Details
Derivative Liabilities (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Expected dividend yield, percentage | 0.00% |
Derivative Liabilities (Detai_2
Derivative Liabilities (Details) - Schedule of changes in the derivative liabilities - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Level 1 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative liabilities at starting | ||
Addition | ||
Changes in fair value | ||
Derivative liabilities at ending | ||
Level 2 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative liabilities at starting | ||
Addition | ||
Changes in fair value | ||
Derivative liabilities at ending | ||
Level 3 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative liabilities at starting | 344,404 | 42,231 |
Addition | 108,880 | 417,241 |
Extinguishment | (82,431) | (286,009) |
Changes in fair value | 65,442 | 262,831 |
Derivative liabilities at ending | $ 436,295 | $ 436,295 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) | Feb. 04, 2021 | Jul. 17, 2021 | Jun. 17, 2021 | Dec. 29, 2020 | Aug. 17, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2018 | Jul. 20, 2021 | May 24, 2021 | Apr. 21, 2021 | Apr. 10, 2021 | Mar. 31, 2021 | Mar. 28, 2021 | Mar. 17, 2021 | Feb. 26, 2021 | Feb. 18, 2021 | Feb. 08, 2021 | Feb. 03, 2021 | Feb. 01, 2021 | Jan. 20, 2021 | Jan. 14, 2021 | Jul. 13, 2020 |
Stockholders’ Equity (Details) [Line Items] | |||||||||||||||||||||||||
Shares of capital stock | (35,000,000) | ||||||||||||||||||||||||
Designated of common stock shares | (15,000,000) | ||||||||||||||||||||||||
Common stock, par value (in Dollars per share) | $ 0.001 | ||||||||||||||||||||||||
Designated of preferred stock | (20,000,000) | ||||||||||||||||||||||||
Preferred stock, par value (in Dollars per share) | $ 0.001 | ||||||||||||||||||||||||
Issuance shares of common stock | 100,000,000 | ||||||||||||||||||||||||
Issuance of preferred stock | 20,000,000 | ||||||||||||||||||||||||
Reverse stock split, description | On August 17, 2020, following board of directors approval, the Company filed a Certificate of Change to its Articles of Incorporation (the “Amendment”), with the Secretary of State of the State of Nevada to effectuate a one-for-twenty (1:3) reverse stock split (the “Reverse Stock Split”) of its common stock, par value $0.001 per share, without any change to its par value. | ||||||||||||||||||||||||
Exercise price (in Dollars per share) | $ 4.50 | ||||||||||||||||||||||||
Subscription receivable (in Dollars) | $ 40,000 | $ 40,000 | |||||||||||||||||||||||
Issuance cost (in Dollars) | $ 4,225 | ||||||||||||||||||||||||
Converted shares | 169,400 | ||||||||||||||||||||||||
Restricted common stock | 16,275 | 13,113 | 31,782 | 9,624 | 291 | 10,000 | 1,929 | 50,000 | 40,000 | 30,000 | |||||||||||||||
Fair value (in Dollars) | $ 57,123 | $ 34,500 | $ 3,587 | $ 69,332 | $ 43,667 | $ 125,000 | $ 49,371 | $ 1,499 | $ 48,000 | $ 7,502 | $ 8,198 | $ 196,000 | $ 192,000 | $ 133,200 | |||||||||||
Additional common stock | 112,500 | 10,000 | |||||||||||||||||||||||
Share based payments (in Dollars) | 99,908 | $ 99,908 | |||||||||||||||||||||||
Total common stock shares | 1,048 | 2,092 | |||||||||||||||||||||||
Loss on settlement of vendors liabilities (in Dollars) | $ 12,719 | ||||||||||||||||||||||||
Aggregate common stock shares | 750,000 | ||||||||||||||||||||||||
Common stock per share (in Dollars per share) | $ 3.40 | $ 3.52 | |||||||||||||||||||||||
Net proceeds (in Dollars) | $ 2,213,500 | ||||||||||||||||||||||||
Warrants issued | 46,667 | 46,667 | 1,090,908 | ||||||||||||||||||||||
Warrant exercise price (in Dollars per share) | $ 5.40 | ||||||||||||||||||||||||
Grant options | 11,667 | ||||||||||||||||||||||||
Share based payments (in Dollars) | 1,940,250 | $ 1,602,649 | $ 3,510,489 | $ 1,994,792 | |||||||||||||||||||||
Unrecognized compensation expense, total (in Dollars) | 6,122,329 | $ 6,122,329 | |||||||||||||||||||||||
Weighted average remaining life | 1 year 2 months 23 days | ||||||||||||||||||||||||
Warrant to purchase of common stock | 320,693 | ||||||||||||||||||||||||
Issued common stock | 376,214 | ||||||||||||||||||||||||
Received exercise of warrants (in Dollars) | $ 1,272,672 | ||||||||||||||||||||||||
Fair value of Warrants (in Dollars) | $ 3,067,617 | ||||||||||||||||||||||||
Additional warrent issue | 127,801 | ||||||||||||||||||||||||
Deemed dividend (in Dollars) | 410,750 | $ 410,750 | |||||||||||||||||||||||
Share-based awards, restricted stock award, description | the Company shall pay each member of the Board, for each calendar quarter during which such member continues to serve on the Board, compensation as a group amounts to $62,500 per quarter. The shares vest one year after issuance. | ||||||||||||||||||||||||
Stock-based compensation for RSA’ amount (in Dollars) | $ 291,035 | 291,035 | |||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||||
Stockholders’ Equity (Details) [Line Items] | |||||||||||||||||||||||||
Restricted common stock | 10,417 | ||||||||||||||||||||||||
Fair value (in Dollars) | $ 50,002 | ||||||||||||||||||||||||
Stock option [Member] | |||||||||||||||||||||||||
Stockholders’ Equity (Details) [Line Items] | |||||||||||||||||||||||||
Share based payments (in Dollars) | $ 2,552,855 | ||||||||||||||||||||||||
Series E Convertible Preferred Stock [Member] | |||||||||||||||||||||||||
Stockholders’ Equity (Details) [Line Items] | |||||||||||||||||||||||||
Preferred stock, description | the Company entered into securities purchase agreements with thirty-three accredited investors whereby the Investors have agreed to purchase from the Company an aggregate of 7,778 shares of the Company’s Series E Convertible Preferred Stock, par value $0.001 per share and 2,831,715 warrants to purchase shares of the Company’s common stock, par value $0.001 per share. The Series E Preferred Stock is convertible into a total of 1,887,810 shares of Common Stock. The combined purchase price of one Conversion Share and one and a half warrant was $4.12. The aggregate purchase price for the Series E Preferred Stock and warrants was $7,777,777. The Company has recorded $817,353 to stock issuance costs, which are part of Additional Paid-in Capital. | ||||||||||||||||||||||||
Warrants, description | The placement agent for the transaction and received cash compensation equal to 10% of the aggregate purchase price and warrants to purchase 471,953 shares of the Company’s common stock, at an exercise price of $5.15 per share (the “PA Warrants”). The PA Warrants are exercisable for a term of five-years from the date of issuance. | ||||||||||||||||||||||||
Converted shares | 6,730 | ||||||||||||||||||||||||
Common stock shares | 1,633,439 | ||||||||||||||||||||||||
Warrants issued | 486,516 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - Schedule of assumptions options granted - Options [Member] | 6 Months Ended |
Jun. 30, 2021$ / shares | |
Stockholders’ Equity (Details) - Schedule of assumptions options granted [Line Items] | |
Expected dividends | 0.00% |
Minimum [Member] | |
Stockholders’ Equity (Details) - Schedule of assumptions options granted [Line Items] | |
Exercise price (in Dollars per share) | $ 2.55 |
Expected volatility | 223.15% |
Risk free interest rate | 0.46% |
Expected life of option | 5 years |
Maximum [Member] | |
Stockholders’ Equity (Details) - Schedule of assumptions options granted [Line Items] | |
Exercise price (in Dollars per share) | $ 14.10 |
Expected volatility | 242.98% |
Risk free interest rate | 0.98% |
Expected life of option | 7 years |
Stockholders_ Equity (Details_2
Stockholders’ Equity (Details) - Schedule of the stock option activity - Stock Option [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Stockholders’ Equity (Details) - Schedule of the stock option activity [Line Items] | |
Options beginning balance | 541,021 |
Weighted Average Exercise Price beginning balance (in Dollars per share) | $ / shares | $ 12.75 |
Weighted Average Remaining Contractual Life (in years) beginning balance | 3 years 3 months 7 days |
Options Granted | 1,825,500 |
Weighted Average Exercise Price Granted | 6.37 |
Weighted Average Remaining Contractual Life (in years) Granted | 6 years 2 months 15 days |
Options Exercised | |
Weighted Average Exercise Price Exercised (in Dollars per share) | $ / shares | |
Weighted Average Remaining Contractual Life (in years) Exercised | |
Options Forfeited/Cancelled | (3,334) |
Weighted Average Exercise Price Forfeited/Cancelled (in Dollars per share) | $ / shares | $ 15 |
Weighted Average Remaining Contractual Life (in years) Forfeited/Cancelled | |
Options outstanding ending balance | 2,363,187 |
Weighted Average Exercise Price outstanding ending balance (in Dollars per share) | $ / shares | $ 7.82 |
Weighted Average Remaining Contractual Life (in years) outstanding ending balance | 5 years 1 month 17 days |
Stockholders_ Equity (Details_3
Stockholders’ Equity (Details) - Schedule of outstanding and exercisable | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Schedule of outstanding and exercisable [Abstract] | |
Option Outstanding Exercise price | $ / shares | $ 7.82 |
Option Outstanding Number Outstanding | shares | 2,363,187 |
Option Outstanding Weighted Average Remaining Contractual Life (in years) | 5 years 1 month 17 days |
Option Exercisable Weighted Average Exercise Price | $ / shares | $ 12.73 |
Option Exercisable Number Exercisable | shares | 537,687 |
Option Exercisable Weighted Average Remaining Contractual Life (in years) | 3 years 9 months 25 days |
Stockholders_ Equity (Details_4
Stockholders’ Equity (Details) - Schedule of assumptions warrant granted - Warrants [Member] | 6 Months Ended |
Jun. 30, 2021$ / shares | |
Stockholders’ Equity (Details) - Schedule of assumptions warrant granted [Line Items] | |
Exercise price (in Dollars per share) | $ 4.50 |
Expected dividends | 0.00% |
Expected volatility | 237.14% |
Risk free interest rate | 0.82% |
Expected life of warrant | 5 years |
Stockholders_ Equity (Details_5
Stockholders’ Equity (Details) - Schedule of warrant activity - Warrant [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Stockholders’ Equity (Details) - Schedule of warrant activity [Line Items] | |
Warrant, outstanding beginning balance | shares | 6,130,948 |
Weighted Average Exercise Price, outstanding beginning balance | $ / shares | $ 4.96 |
Warrant, Granted | shares | 1,751,892 |
Weighted Average Exercise Price, Granted | $ / shares | $ 5.68 |
Warrant, Exercised | shares | (376,214) |
Weighted Average Exercise, Exercised | $ / shares | $ 4.67 |
Warrant, Forfeited/Cancelled | shares | (10,556) |
Weighted Average Exercise Price, Forfeited/Cancelled | $ / shares | $ 24 |
Warrant, outstanding ending balance | shares | 7,496,070 |
Weighted Average Exercise Price, outstanding ending balance | $ / shares | $ 4.88 |
Warrant, exercisable | shares | 7,496,070 |
Weighted Average Exercise Price, exercisable | $ / shares | $ 4.88 |
Stockholders_ Equity (Details_6
Stockholders’ Equity (Details) - Schedule of outstanding and exercisable - Warrant [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Class of Warrant or Right [Line Items] | |
Warrants Outstanding, Exercise price | $ 4.88 |
Warrants Outstanding, Number Outstanding (in Shares) | shares | 7,496,070 |
Warrants Outstanding, Weighted Average Remaining Contractual Life (in years) | 4 years 3 months 29 days |
Warrants Outstanding, Weighted Average Exercise Price | $ 4.88 |
Warrants Exercisable, Number Exercisable (in Shares) | shares | 7,496,070 |
Warrants Exercisable, Weighted Average Exercise Price | $ 4.33 |
Stockholders_ Equity (Details_7
Stockholders’ Equity (Details) - Schedule of activity related to RSUs | 6 Months Ended |
Jun. 30, 2021USD ($)$ / shares | |
RSAs non-vested at January 1, 2021 [Member] | |
Stockholders’ Equity (Details) - Schedule of activity related to RSUs [Line Items] | |
Total shares (in Dollars) | $ | |
Grant date fair value | |
RSAs granted [Member] | |
Stockholders’ Equity (Details) - Schedule of activity related to RSUs [Line Items] | |
Total shares (in Dollars) | $ | $ 69,635 |
RSAs granted [Member] | Minimum [Member] | |
Stockholders’ Equity (Details) - Schedule of activity related to RSUs [Line Items] | |
Grant date fair value | $ 3.75 |
RSAs granted [Member] | Maximum [Member] | |
Stockholders’ Equity (Details) - Schedule of activity related to RSUs [Line Items] | |
Grant date fair value | $ 4.32 |
RSAs vested [Member] | |
Stockholders’ Equity (Details) - Schedule of activity related to RSUs [Line Items] | |
Total shares (in Dollars) | $ | |
Grant date fair value | |
RSAs forfeited [Member] | |
Stockholders’ Equity (Details) - Schedule of activity related to RSUs [Line Items] | |
Total shares (in Dollars) | $ | |
Grant date fair value | |
RSAs non-vested June 30, 2021 [Member] | |
Stockholders’ Equity (Details) - Schedule of activity related to RSUs [Line Items] | |
Total shares (in Dollars) | $ | $ 69,635 |
RSAs non-vested June 30, 2021 [Member] | Minimum [Member] | |
Stockholders’ Equity (Details) - Schedule of activity related to RSUs [Line Items] | |
Grant date fair value | $ 375 |
RSAs non-vested June 30, 2021 [Member] | Maximum [Member] | |
Stockholders’ Equity (Details) - Schedule of activity related to RSUs [Line Items] | |
Grant date fair value | $ 4.32 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | May 05, 2018USD ($)m² | Apr. 01, 2019USD ($)m² | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) |
Commitments and Contingencies (Details) [Line Items] | ||||
Commitments and contingencies, description | The CARES Act lifts certain deduction limitations originally imposed by the Tax Cuts and Jobs Act of 2017 (“2017 Tax Act”). Corporate taxpayers may carry back net operating losses (NOLs) originating between 2018 and 2020 for up to five years, which was not previously allowed under the 2017 Tax Act. The CARES Act also eliminates the 80% of taxable income limitations by allowing corporate entities to fully utilize NOL carryforwards to offset taxable income in 2018, 2019 or 2020. Taxpayers may generally deduct interest up to the sum of 50% of adjusted taxable income plus business interest income (30% limit under the 2017 Tax Act) for 2019 and 2020. The CARES Act allows taxpayers with alternative minimum tax credits to claim a refund in 2020 for the entire amount of the credits instead of recovering the credits through refunds over a period of years, as originally enacted by the 2017 Tax Act. | |||
Taxable income percentage | 25.00% | |||
Property generally eligible term | 15 years | |||
Bonus depreciation rate | 100.00% | |||
Lease term | 5 years | 4 years | ||
Office space (in Square Meters) | m² | 2,300 | 796 | ||
Operating lease due amount | $ 411,150 | $ 108,229 | ||
Leases and rental expenses | $ 53,869 | $ 59,168 | ||
The May 2020 PPP Loan Agreement [Member] | ||||
Commitments and Contingencies (Details) [Line Items] | ||||
Repaid principal | 136,597 | |||
Forgiven principal | 275,903 | |||
Accrued interest | 3,119 | |||
Principle outstanding | $ 255,426 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of components of lease expense - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Schedule of components of lease expense [Abstract] | ||
Operating lease cost | $ 20,117 | $ 39,826 |
Short term lease cost | 3,714 | 7,428 |
Total net lease cost | $ 23,831 | $ 47,254 |
Commitments and Contingencies_4
Commitments and Contingencies (Details) - Schedule supplemental cash flow and other information related to leases | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Schedule supplemental cash flow and other information related to leases [Abstract] | |
Operating lease payments | $ 53,977 |
Weighted average remaining lease term (in years): | 2 years |
Weighted average discount rate: | 13.00% |
Commitments and Contingencies_5
Commitments and Contingencies (Details) - Schedule of future minimum payments required under the lease | Jun. 30, 2021USD ($) |
Schedule of future minimum payments required under the lease [Abstract] | |
2021 | $ 55,348 |
2022 | 114,627 |
2023 | 53,094 |
Total | $ 223,069 |
Acquisition (Details)
Acquisition (Details) - USD ($) | Jun. 04, 2021 | Jun. 01, 2021 |
Acquisition (Details) [Line Items] | ||
Membership interests purchased | $ 300,000 | $ 175,000 |
Membership Interest Purchase Agreement [Member] | ||
Acquisition (Details) [Line Items] | ||
Purchase of acquired common shares | 841,005 | 490,863 |
Plant Camp LLC [Member] | ||
Acquisition (Details) [Line Items] | ||
Issued and outstanding equity, percentage | 89.00% | 33.00% |
Acquisition (Details) - Schedul
Acquisition (Details) - Schedule of components of the purchase price | Jun. 30, 2021USD ($) |
Asset Acquisition [Line Items] | |
Cash paid to seller | $ 300,000 |
Fair value of equity investment purchased on June 1, 2021 | 175,000 |
Total purchase price | 475,000 |
Cash | 5,232 |
Accounts Receivable | 7,645 |
Inventory | 19,970 |
Total assets acquired | 32,847 |
Accounts payable and accrued expenses | 5,309 |
Deferred Revenue | 671 |
Loan Payable | 100,000 |
Total liabilities assumed | 105,980 |
Net assets acquired | (73,133) |
Non-controlling interest in consolidated subsidiary | 56,865 |
Excess purchase price | 604,998 |
Know-How and Intellectual Property [Member] | |
Asset Acquisition [Line Items] | |
Excess purchase price | 422,000 |
Website [Member] | |
Asset Acquisition [Line Items] | |
Excess purchase price | 51,300 |
Customer Relationships [Member] | |
Asset Acquisition [Line Items] | |
Excess purchase price | 24,000 |
Goodwill [Member] | |
Asset Acquisition [Line Items] | |
Excess purchase price | 2,198 |
Trade Names & Trademarks [Member] | |
Asset Acquisition [Line Items] | |
Excess purchase price | $ 105,500 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Sep. 02, 2021 | Jul. 28, 2021 | Jul. 20, 2021 | Jun. 30, 2021 | Jul. 17, 2021 | Jul. 08, 2021 | May 27, 2021 | May 21, 2021 | Feb. 17, 2021 | Oct. 23, 2020 |
Subsequent Events (Details) [Line Items] | ||||||||||
Common stock at a price (in Dollars per share) | $ 3.52 | $ 3.40 | ||||||||
Purchase price | $ 935,000 | |||||||||
Purchase price percentage | 44.00% | |||||||||
Fair value of the non-controlling interest | $ 1,190,000 | |||||||||
Issuance of common stock (in Shares) | 55,631 | |||||||||
Converted outstanding debt | $ 3,525,000 | |||||||||
Issuance of common stock (in Shares) | 705,000 | |||||||||
Deposit value | $ 110,000 | $ 50,000 | $ 100,000 | $ 115,000 | ||||||
Subsequent Event [Member] | ||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||
Aggregate closing consideration | 935,000 | |||||||||
Consideration in cash | 144,750 | |||||||||
Consideration in form of shares, value | $ 790,250 | |||||||||
Consideration in form of shares, shares (in Shares) | 224,503 | |||||||||
Deposit value | $ 100,000 | |||||||||
Subsequent event description | the Company entered into a Memorandum of Understanding to acquire a majority equity stake in Dune, Inc., a direct-to-consumer brand focused on promoting wellness through its range of health-oriented beverages. Pursuant to the MOU, Creatd intends to acquire a 50.4% equity stake in Dune in exchange for a combination of cash and stock. The Company expects to execute definitive agreements early in the fourth quarter 2021 and to close shortly thereafter, subject to the completion of due diligence and other closing conditions. | the Company entered into a non-binding Memorandum of Understanding to purchase a majority stake in direct-to-consumer company, Wobble Wedge®. Wobble Wedges®, sold through both direct-to-consumer (DTC) and wholesale avenues, are an interlocking modular system of tapered shims that are adaptable to hundreds of uses. Pursuant to the MOU, Creatd intends to acquire a 55% equity stake in Wobble Wedge, in exchange for a combination of cash and stock consideration totaling $500,000. The Company expects to execute definitive agreements in early fourth quarter 2021 and to close shortly thereafter, subject to the completion of due diligence and other closing conditions. | ||||||||
Stock Purchase Agreement [Member] | ||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||
Purchase ownership | 44.00% | |||||||||
Vendor issued credit amount | $ 0.55 | |||||||||
Warrant [Member] | ||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||
Number of warrants exercised (in Shares) | 1,062,574 | |||||||||
Cancellation of warrants shares (in Shares) | 1,062,574 | |||||||||
Issuance of common stock (in Shares) | 954,568 | |||||||||
Gross proceeds | $ 4,199,396 | |||||||||
Series E Preferred Stock [Member] | ||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||
Issuance of common stock (in Shares) | 106,311 | |||||||||
Total warrants shares (in Shares) | 438 |