Duos Technologies (DUOT) 10-K 1 Apr 24 2023 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2023	Mar. 28, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2023
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	000-55497
Entity Registrant Name	DUOS TECHNOLOGIES GROUP, INC.
Entity Central Index Key	0001396536
Entity Tax Identification Number	65-0493217
Entity Incorporation, State or Country Code	FL
Entity Address, Address Line One	7660 Centurion Parkway
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Jacksonville
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32256
City Area Code	(904)
Local Phone Number	296-2807
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	DUOT
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 26,153,446
Entity Common Stock, Shares Outstanding		7,306,663
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Auditor Firm ID	106
Auditor Name	SALBERG & COMPANY, P.A.
Auditor Location	Boca Raton, Florida

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2023	Dec. 31, 2022
CURRENT ASSETS:
Cash	$ 2,441,842	$ 1,121,092
Accounts receivable, net	1,462,463	3,418,263
Contract assets	641,947	425,722
Inventory	1,526,165	1,428,360
Prepaid expenses and other current assets	184,478	441,320
Total Current Assets	6,256,895	6,834,757
Property and equipment, net	726,507	629,490
Operating lease right of use asset	4,373,155	4,689,931
Security deposit	550,000	600,000
OTHER ASSETS:
Note Receivable, net	153,750
Patents and trademarks, net	129,140	69,733
Software development costs, net	652,838	265,208
Total Other Assets	935,728	334,941
TOTAL ASSETS	12,842,285	13,089,119
CURRENT LIABILITIES:
Accounts payable	595,634	2,290,390
Notes payable - financing agreements	41,976	74,575
Accrued expenses	164,113	453,023
Equipment financing payable-current portion		22,851
Operating lease obligations-current portion	779,087	696,869
Contract liabilities	1,666,243	957,997
Total Current Liabilities	3,247,053	4,495,705
Operating lease obligations, less current portion	4,228,718	4,542,943
Total Liabilities	7,475,771	9,038,648
Commitments and Contingencies (Note 10)
STOCKHOLDERS' EQUITY:
Common stock: $0.001 par value; 500,000,000 shares authorized, 7,306,663 and 7,156,876 shares issued, 7,305,339 and 7,155,552  shares outstanding at December 31, 2023 and December 31, 2022, respectively	7,306	7,156
Additional paid-in-capital	69,120,199	56,562,600
Accumulated deficit	(63,603,552)	(52,361,834)
Sub-total	5,523,966	4,207,923
Less:  Treasury stock (1,324 shares of common stock at December 31, 2023 and December 31, 2022)	(157,452)	(157,452)
Total Stockholders' Equity	5,366,514	4,050,471
Total Liabilities and Stockholders' Equity	12,842,285	13,089,119
Convertible Series A Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred stock, value
Convertible Series B Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred stock, value
Convertible Series C Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred stock, value
Convertible Series D Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred stock, value	1	1
Convertible Series E Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred stock, value	12
Convertible Series F Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred stock, value

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares designated	9,441,000	9,441,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	7,306,663	7,156,876
Common stock, shares outstanding	7,305,339	7,155,552
Treasury stock, common shares	1,324	1,324
Convertible Series A Preferred Stock [Member]
Preferred stock, par value	$ 10	$ 10
Preferred stock, shares designated	500,000	500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Preferred stock, conversion price per share	$ 6.30	$ 6.30
Convertible Series B Preferred Stock [Member]
Preferred stock, par value	$ 1,000	$ 1,000
Preferred stock, shares authorized	15,000	15,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Preferred stock, conversion price per share	$ 7	$ 7
Convertible Series C Preferred Stock [Member]
Preferred stock, par value	$ 1,000	$ 1,000
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Preferred stock, conversion price per share	$ 5.50	$ 5.50
Convertible Series D Preferred Stock [Member]
Preferred stock, par value	$ 1,000	$ 1,000
Preferred stock, shares authorized	4,000	4,000
Preferred stock, shares issued	1,299	1,299
Preferred stock, shares outstanding	1,299	1,299
Preferred stock, conversion price per share	$ 3	$ 3
Convertible Series E Preferred Stock [Member]
Preferred stock, par value	$ 1,000	$ 1,000
Preferred stock, shares authorized	30,000	30,000
Preferred stock, shares issued	11,500	0
Preferred stock, shares outstanding	11,500	0
Preferred stock, conversion price per share	$ 3	$ 3
Convertible Series F Preferred Stock [Member]
Preferred stock, par value	$ 1,000	$ 1,000
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Preferred stock, conversion price per share	$ 6.20	$ 6.20

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
REVENUES:
Total Revenues	$ 7,471,198	$ 15,012,366
COST OF REVENUES:
Total Cost of Revenues	6,162,317	10,264,263
GROSS MARGIN	1,308,881	4,748,103
OPERATING EXPENSES:
Sales and marketing	1,493,309	1,337,186
Research and development	1,812,951	1,651,064
General and Administration	9,449,187	8,625,002
Total Operating Expenses	12,755,447	11,613,252
LOSS FROM OPERATIONS	(11,446,566)	(6,865,149)
OTHER INCOME (EXPENSES):
Interest expense	(7,159)	(9,191)
Other income, net	212,007	9,557
Total Other Income (Expenses)	204,848	366
NET LOSS	(11,241,718)	(6,864,783)
Product [Member]
REVENUES:
Total Revenues	3,618,022	11,190,292
COST OF REVENUES:
Total Cost of Revenues	4,352,247	8,376,649
Service, Other [Member]
REVENUES:
Total Revenues	3,853,176	3,822,074
COST OF REVENUES:
Total Cost of Revenues	$ 1,810,070	$ 1,887,614

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Net loss per share, Basic	$ (1.56)	$ (1.11)
Net loss per share, Diluted	$ (1.56)	$ (1.11)
Weighted average shares, Basic	7,204,177	6,175,193
Weighted average shares, Diluted	7,204,177	6,175,193

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Preferred Stock B [Member]	Preferred Stock C [Member]	Preferred Stock D [Member]	Preferred Stock E [Member]	Preferred Stock F [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	Total
Beginning balance, value at Dec. 31, 2021	$ 1	$ 2				$ 4,111	$ 46,431,874	$ (45,497,051)	$ (157,452)	$ 781,485
Beginning balance, shares at Dec. 31, 2021	851	2,500				4,111,047
Series C preferred stock converted to common stock		$ (2)				$ 455	(453)
Series C preferred stock converted to common stock, shares		(2,500)				454,546
Series B preferred stock converted to common stock	$ (1)					$ 122	(121)
Series B preferred stock converted to common stock, shares	(851)					121,572
Series D preferred stock converted to common stock			$ 1				1,298,999			1,299,000
Series D preferred stock converted to common stock, shares			1,299
Stock options compensation							819,191			819,191
Common stock issued for cash						$ 2,425	8,798,579			8,801,004
Common stock issued for cash, shares						2,425,752
Stock issuance cost							(942,926)			(942,926)
Stock issued for services						$ 43	157,457			157,500
Stock issued for services, shares						43,959
Net loss								(6,864,783)		(6,864,783)
Ending balance, value at Dec. 31, 2022			$ 1			$ 7,156	56,562,600	(52,361,834)	(157,452)	4,050,471
Ending balance, shares at Dec. 31, 2022			1,299			7,156,876
Series E preferred stock issued				$ 7			6,499,993			6,500,000
Series E preferred stock issued, shares				6,500
Series F preferred stock issued					$ 5		4,999,995			5,000,000
Series F preferred stock issued, shares					5,000
Series F preferred stock exchanged for Series E preferred				$ 5	$ (5)
Series F preferred stock converted to Series E preferred, shares				5,000	(5,000)
Stock options compensation							573,441			573,441
Stock issuance cost							(25,797)			(25,797)
Stock issued for services						$ 38	143,027			143,065
Stock issued for services, shares						38,249
Stock issued under the Employee Stock Purchase Plan for cash and compensation						$ 112	366,940			367,052
Stock issued under the Employee Stock Purchase Plan for cash and compensation, shares						111,538
Net loss								(11,241,718)		(11,241,718)
Ending balance, value at Dec. 31, 2023			$ 1	$ 12		$ 7,306	$ 69,120,199	$ (63,603,552)	$ (157,452)	$ 5,366,514
Ending balance, shares at Dec. 31, 2023			1,299	11,500		7,306,663

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash from operating activities:
Net loss	$ (11,241,718)	$ (6,864,783)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	550,201	350,192
Stock based compensation	710,047	819,191
Stock issued for services	143,065	157,500
Amortization of operating lease right of use asset	316,776	235,834
Changes in assets and liabilities:
Accounts receivable	1,955,800	(1,679,720)
Note receivable	(153,750)
Contract assets	(216,225)	(422,273)
Inventory	(97,804)	(1,130,022)
Security deposit	50,000
Prepaid expenses and other current assets	744,771	266,539
Accounts payable	(1,694,756)	1,245,890
Accrued expenses	(289,209)	(165,069)
Operating lease obligation	(232,007)	184,728
Contract liabilities	708,245	(871,314)
Net cash used in operating activities	(8,746,564)	(7,873,307)
Cash flows from investing activities:
Purchase of patents/trademarks	(69,327)	(18,190)
Purchase of software development	(527,896)	(281,783)
Purchase of fixed assets	(496,686)	(344,915)
Net cash used in investing activities	(1,093,909)	(644,888)
Cash flows from financing activities:
Repayments of insurance and equipment financing	(520,529)	(331,175)
Repayment of finance lease	(22,851)	(80,335)
Proceeds from common stock issued		8,801,003
Issuance cost	(25,797)	(942,926)
Proceeds from shares issued under Employee Stock Purchase Plan	230,400
Proceeds from preferred stock issued	11,500,000	1,299,000
Net cash provided by financing activities	11,161,223	8,745,567
Net increase in cash	1,320,750	227,372
Cash, beginning of year	1,121,092	893,720
Cash, end of year	2,441,842	1,121,092
Supplemental Disclosure of Cash Flow Information:
Interest paid	7,159	9,292
Taxes paid	29,085	1,264
Supplemental Non-Cash Investing and Financing Activities:
Notes issued for financing of insurance premiums	$ 487,929	$ 353,244

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure [Table]
Net Income (Loss) Attributable to Parent	$ (11,241,718)	$ (6,864,783)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2023
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

NATURE OF OPERATIONS AND SUMMAR

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Duos Technologies Group, Inc. (the “Company”), through its operating subsidiaries, Duos Technologies, Inc. (“Duos”) and TrueVue360, Inc. (“TrueVue360”) (collectively the “Company”), is a company that specializes in machine vision and artificial intelligence to analyze fast moving objects such as trains, trucks, automobiles, and aircraft. This technology can help improve safety, maintenance, and operating metrics. The Company is the inventor of the Railcar Inspection Portal (RIP) and is currently the rail industry leader for machine vision/camera wayside detection systems that include the use of Artificial Intelligence at speeds up to 125 mph. The RIP inspects a train at full speed from the top, sides, and bottom looking at FRA/AAR mandated safety inspection points. The system also detects illegal riders that assists law enforcement agencies. Each rail car is scanned with machine vision cameras and other sensors from the top, sides, and bottom and images are produced within seconds of passing that can be used by the customer to help prevent derailments, improve maintenance operations, and assist with security. The Company self-performs all aspects of hardware, software, IT, and Artificial Intelligence development and engineering and holds several patents and maintains significant intellectual property. The Company also has a proprietary portfolio of over 48 Artificial Intelligence “Use Cases” that automatically flag defects. The Company has deployed this system with several Class 1 and passenger customers and anticipates an increased demand in the future from rail operators, car owners, shippers, and law enforcement agencies. The Company has also developed the Automated Logistics Information System (ALIS) which automates gatehouse operations where trucks enter and exit large logistics and intermodal facilities. This solution also incorporates sensors and data points as necessary for each operation and directly interconnects with backend logistics databases and processes to streamline operations and significantly improve operations and security and, importantly, dramatically improves throughput on each lane on which the technology is deployed. The Company expects to deploy an upgraded Truck Inspection Portal (TIP) which uses the same technology and lessons learned from the ALIS and RIP systems. The Company’s strategy is to expand our existing customer base in the Class 1, short line, and passenger space in North America; expand our subscription offering to car owners and shippers; and expand operations to meet the demand from international customers. The Company has prepared to respond and scale if necessary to react to increased demand from potential regulations that may be imposed around wayside detection technology. In the future the Company may put more emphasis on the trucking and intermodal sector with an updated Truck Inspection Portal solution. The Company continues to focus on operational and technical excellence, customer satisfaction, and maintaining a highly skilled and performance-based work force. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Duos Technologies, Inc. and TrueVue360, Inc. All inter-company transactions and balances are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. The most significant estimates in the accompanying consolidated financial statements include the allowance on accounts receivable and notes receivable, valuation of common stock warrants received in exchange for an asset sale, valuation of deferred tax assets, valuation of intangible and other long-lived assets, estimates of net contract revenues and the total estimated costs to determine progress towards contract completion, valuation of inventory, estimates of the valuation of right of use assets and corresponding lease liabilities, valuation of warrants issued with debt and valuation of stock-based awards. We base our estimates on historical experience and on various other assumptions that we believe are reasonable 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. Actual results may differ from these estimates. Concentrations Cash Concentrations Cash is maintained at financial institutions and at times, balances may exceed federally insured limits. We have not experienced any losses related to these balances. As of December 31, 2023, the Company had balances in a financial institution which combined exceeded federally insured limits by approximately $ 1,948,794 Significant Customers and Concentration of Credit Risk The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: For the year ended December 31, 2023, three customers accounted for 48 30 11 42 18 14 14 30 At December 31, 2023, two customers accounted for 83 11 34 31 19 10 Geographic Concentration Approximately 44 41 Significant Vendors and Concentration of Credit Risk In some instances, the Company relies on a limited pool of vendors for key components related to the manufacturing of its subsystems. These vendors are primarily focused on camera, server and lighting technologies integral to the Company’s solution. Where possible, the Company seeks multiple vendors for key components to mitigate vendor concentration risk. Fair Value of Financial Instruments and Fair Value Measurements The Company follows Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures” (“ASC 820”), for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that requires the use of fair value measurements, establishes a framework for measuring fair value and expands disclosure about such fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions that the market participants would use in the valuation of the asset or liability based on the best available information. The Company analyzes all financial instruments with features of both liabilities and equity under the Financial Accounting Standard Board’s (“FASB”) accounting standard for such instruments. Under this standard, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The estimated fair value of certain financial instruments, including accounts receivable, prepaid expenses, accounts payable, accrued expenses and notes payable are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. Accounts Receivable On January 1, 2023, the Company adopted ASC 326, "Financial Instruments - Credit Losses". In accordance with ASC 326, an allowance is maintained for estimated forward-looking losses resulting from the possible inability of customers to make required payments (current expected losses). The amount of the allowance is determined principally on the basis of past collection experience and known financial factors regarding specific customers. Accounts receivable are stated at estimated net realizable value. Accounts receivable are comprised of balances due from customers net of estimated allowances for uncollectible accounts. In determining the collections on the account, historical trends are evaluated, and specific customer issues are reviewed to arrive at appropriate allowances. The Company reviews its accounts to estimate losses resulting from the inability of its customers to make required payments. Any required allowance is based on specific analysis of past due accounts and also considers historical trends of write-offs. Past due status is based on how recently payments have been received from customers. Inventory Inventory consists primarily of spare parts and consumables and long-lead time components to be used in the production of our technology systems or in connection with maintenance agreements with customers. Any inventory deemed to be obsolete is written off. Inventory is stated at the lower of cost or net realizable value. Inventory cost is primarily determined using the weighted average cost method. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is provided by the straight-line method over the estimated economic life of the property and equipment (three 3 5 Software Development Costs Software development costs incurred prior to establishing technological feasibility are charged to operations and included in research and development costs. The technological feasibility of a software product is established when the Company has completed all planning, designing, coding, and testing activities that are necessary to establish that the product meets its design specifications, including functionality, features, and technical performance requirements. Software development costs incurred after establishing technological feasibility for software sold as a perpetual license, as defined within ASC 985-20 (Software – Costs of Software to be Sold, Leased, or Marketed) are capitalized and amortized on a product-by-product basis when the product is available for general release to customers. Software development costs are evaluated for impairment annually by comparing the net realizable value to the unamortized capitalization costs and writing these costs down to net realizable value. Patents and Trademarks Patents and trademarks which are stated at amortized cost, relate to the development of video surveillance security system technology and are being amortized over 17 Long-Lived Assets The Company evaluates the recoverability of its property, equipment, and other long-lived assets in accordance with FASB ASC 360-10-35-15 “Impairment or Disposal of Long-Lived Assets”, which requires recognition of impairment of long-lived assets in the event the net book values of such assets exceed the estimated future undiscounted cash flows attributable to such assets or the business to which such intangible assets relate. This guidance requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Product Warranties The Company has a 90 12 36 Loan Costs Loan costs paid to lenders, or third parties are recorded as debt discounts to the related loans and amortized to interest expense over the loan term. Sales Returns Our systems are sold as integrated systems and there are no sales returns allowed. Revenue Recognition The Company follows Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”), that affects the timing of when certain types of revenues will be recognized. The basic principles in ASC 606 include the following: a contract with a customer creates distinct contract assets and performance obligations, satisfaction of a performance obligation creates revenue, and a performance obligation is satisfied upon transfer of control to a good or service to a customer. Revenue is recognized by evaluating our revenue contracts with customers based on the five-step model under ASC 606: 1. Identify the contract with the customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to separate performance obligations; and 5. Recognize revenue when (or as) each performance obligation is satisfied. The Company generates revenue from four sources: (1) Technology Systems; (2) AI Technologies; (3) Technical Support and (4) Consulting services. Technology Systems For revenues related to technology systems, the Company recognizes revenue over time using a cost-based input methodology in which significant judgment is required to estimate costs to complete projects. These estimated costs are then used to determine the progress towards contract completion and the corresponding amount of revenue to recognize. Accordingly, the Company now bases its revenue recognition on ASC 606-10-25-27, where control of a good or service transfers over time if the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date including a profit margin or reasonable return on capital. Control is deemed to pass to the customer instantaneously as the goods are manufactured and revenue is recognized accordingly. In addition, the Company has adopted ASC 606-10-55-21 such that if the cost incurred is not proportionate to the progress in satisfying the performance obligation, we adjust the input method to recognize revenue only to the extent of the cost incurred. Therefore, the Company will recognize revenue at an equal amount to the cost of the goods to satisfy the performance obligation. To accurately reflect revenue recognition based on the input method, the Company has adopted the implementation guidance as set out in ASC-606-10-55-187 through 192. Under this method, contract revenues are recognized over the performance period of the contract in direct proportion to the costs incurred. Costs include direct material, direct labor, subcontract labor and other allocable indirect costs. All un-allocable indirect costs and corporate general and administrative costs are also charged to the periods as incurred. Any recognized revenues that have not been billed to a customer are recorded as an asset in “contract assets”. Any billings of customers more than recognized revenues are recorded as a liability in “contract liabilities”. However, in the event a loss on a contract is foreseen, the Company will recognize the loss when such loss is determined to be both probable and reasonably estimable. AI Technologies The Company has revenue from applications that incorporate artificial intelligence (AI) in the form of predetermined algorithms which provide important operating information to the users of our systems. The revenue generated from these applications of AI consists of a fixed fee related to the design, development, testing and incorporation of new algorithms into the system, which is recognized as revenue at a point in time upon acceptance, as well as an annual application maintenance fee, which is recognized as revenue ratably over the contracted maintenance term. Technical Support Technical support services are provided on both an as-needed and extended-term basis and may include providing both parts and labor. Maintenance and technical support provided outside of a maintenance contract are on an “as-requested” basis, and revenue is recognized over time as the services are provided. Revenue for maintenance and technical support provided on an extended-term basis is recognized over time ratably over the term of the contract. Consulting Services The Company’s consulting services business generates revenues under contracts with customers from four sources: (1) Professional Services (consulting and auditing); (2) Software licensing with optional hardware sales; (3) Customer service training and (4) Maintenance support. (1) Revenues for professional services, which are of short-term duration, are recognized when services are completed; (2) For all periods reflected in this report, software license sales have been one-time sales of a perpetual license to use our software product and the customer also has the option to purchase third-party manufactured handheld devices from us if they purchase our software license. Accordingly, the revenue is recognized upon delivery of the software and delivery of the hardware, as applicable, to the customer; (3) Training sales are one-time upfront short-term training sessions and are recognized after the service has been performed; and (4) Maintenance/support is an optional product sold to our software license customers under one-year contracts. Accordingly, maintenance payments received upfront are deferred and recognized over the contract term. Multiple Performance Obligations and Allocation of Transaction Price Arrangements with customers may involve multiple performance obligations including project revenue and maintenance services in our Technology Systems business. Maintenance will occur after the project is completed and may be provided on an extended-term basis or on an as-needed basis. In our consulting services business, multiple performance obligations may include any of the above four sources. Training and maintenance on software products may occur after the software product sale while other services may occur before or after the software product sale and may not relate to the software product. Revenue recognition for a multiple performance obligations arrangement is as follows: Each performance obligation is accounted for separately when each has value to the customer on a standalone basis and there is Company specific objective evidence of the selling price of each deliverable. For revenue arrangements with multiple deliverables, the Company allocates the total customer arrangement to the separate units of accounting based on their relative selling prices as determined by the price of the items when sold separately. Once the selling price is allocated, the revenue for each performance obligation is recognized using the applicable criteria under GAAP as discussed above for performance obligations sold in single performance obligation arrangements. A delivered item or items that do not qualify as a separate unit of accounting within the arrangement are combined with the other applicable undelivered items within the arrangement. The allocation of arrangement consideration and the recognition of revenue is then determined for those combined deliverables as a single unit of accounting. The Company sells its various services and software and hardware products at established prices on a standalone basis which provides Company specific objective evidence of selling price for purposes of performance obligations relative selling price allocation. The Company only sells maintenance services or spare parts based on its established rates after it has completed a system integration project for a customer. The customer is not required to purchase maintenance services. All elements in multiple performance obligations arrangements with Company customers qualify as separate units of account for revenue recognition purposes. Advertising The Company expenses the cost of advertising. During the years ended December 31, 2023 and 2022, there were no Stock Based Compensation The Company accounts for employee and non-employee stock-based compensation in accordance with ASC 718-10, “ Share-Based Payment The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing formula. In accordance with ASC 718-10-35-8, the Company elected to recognize the fair value of the stock award using the graded vesting method as time of employment service is the criteria for vesting. The Company’s determination of fair value using an option-pricing model is affected by the stock price as well as assumptions regarding a number of highly subjective variables. The Company estimates volatility based upon the historical stock price of the Company and estimates the expected term for stock options using the simplified method for employees and directors and the contractual term for non-employees. The risk-free rate is determined based upon the prevailing rate of United States Treasury securities with similar maturities. Income Taxes The Company accounts for income taxes in accordance with the Financial Accounting Standards Board FASB Accounting Standards Codification (“ASC”) 740, Income Taxes, which requires the recognition of deferred income taxes for differences between the basis of assets and liabilities for financial statement and income tax purposes. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company evaluates all significant tax positions as required by ASC 740. As of December 31, 2023, the Company does not believe that it has taken any positions that would require the recording of any additional tax liability, nor does it believe that there are any unrealized tax benefits that would either increase or decrease within the next year. Any penalties and interest assessed by income taxing authorities are included in operating expenses. The federal and state income tax returns of the Company are subject to examination by the IRS and state taxing authorities, generally for three years after they were filed. Tax years 2020, 2021 and 2022 remain open for potential audit. Earnings (Loss) Per Share Basic earnings per share (EPS) are computed by dividing the net loss applicable to common stock by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss applicable to common stock by the weighted average number of common shares outstanding for the period and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise or conversion of stock options, stock warrants, convertible debt instruments, convertible preferred stock or other common stock equivalents. Potentially dilutive securities are excluded from the computation if their effect is anti-dilutive. At December 31, 2023, there were (i) an aggregate of 44,644 1,387,775 433,000 3,833,334 0 At December 31, 2022, there was an aggregate of 147,591 926,266 433,000 Leases The Company follows ASC 842 “Leases”. This guidance requires lessees to recognize right-of-use (“ROU”) assets and lease liabilities for most operating leases. In addition, this guidance requires that lessors separate lease and non-lease components in a contract in accordance with the revenue guidance in ASC 606. The Company made an accounting policy election to not recognize short-term leases with terms of twelve months or less on the balance sheet and instead recognize the lease payments in expense as incurred. The Company has also elected to account for real estate leases that contain both lease and non-lease components as a single lease component. At the inception of a contract the Company assesses whether the contract is, or contains, a lease. The Company’s assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether we have the right to direct the use of the asset. Operating ROU assets represent the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the lease commencement date to determine the present value of future payments. The lease term includes all periods covered by renewal and termination options where the Company is reasonably certain to exercise the renewal options or not to exercise the termination options. Operating lease expense is recognized on a straight-line basis over the lease term and is included in general and administration expenses in the consolidated statements of operations. Recent Accounting Pronouncements From time to time, the FASB or other standards setting bodies will issue new accounting pronouncements. Updates to the FASB ASC are communicated through issuance of an Accounting Standards Update (“ASU”). In August 2020, the FASB issued an accounting pronouncement (ASU 2020-06) related to the measurement and disclosure requirements for convertible instruments and contracts in an entity's own equity. The pronouncement simplifies and adds disclosure requirements for the accounting and measurement of convertible instruments and the settlement assessment for contracts in an entity's own equity. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2023. The Company early adopted this pronouncement for our fiscal year beginning January 1, 2022, and it did not have a material effect on our audited consolidated financial statements. In May 2021, the FASB issued an accounting pronouncement (ASU 2021-04) related to modifications or exchanges of freestanding equity-classified written call options (such as warrants) that remain equity classified after modification or exchange. The pronouncement states that an entity should treat the modification as an exchange of the original instrument for a new instrument, and the effect of the modification should be calculated as the difference between the fair value of the modified instrument and the fair value of that instrument immediately before modification. An entity should then recognize the effect of the modification on the basis of the substance of the transaction, in the same manner as if cash had been paid as consideration. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021. The pronouncement is applied prospectively to all modifications that occur after the initial date of adoption. We adopted this pronouncement for our fiscal year beginning January 1, 2022, and it did not have a material effect on our audited consolidated financial statements. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

LIQUIDITY

LIQUIDITY	12 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
LIQUIDITY	NOTE 2 – LIQUIDITY Under Accounting Codification ASC 205, Presentation of Financial Statements—Going Concern (Subtopic 205-40) (“ASC 205-40”), the Company has the responsibility to evaluate whether conditions and/or events raise substantial doubt about its ability to meet its future financial obligations as they become due within one year after the date that the financial statements are issued. As required by ASC 205-40, this evaluation shall initially not take into consideration the potential mitigating effects of plans that have not been fully implemented as of the date the financial statements are issued. Management has assessed the Company’s ability to continue as a going concern in accordance with the requirement of ASC 205-40. As reflected in the accompanying consolidated financial statements, the Company had a net loss of $ 11,241,718 3,009,842 63,603,552 As previously noted, the Company was successful during 2023 in raising gross proceeds of over $11,500,000 from the sale of Series E and F Preferred Stock. Additionally, late in the first quarter of 2024, the Company raised gross proceeds of $2,745,000 from the issuance of a combination of Series D and E Preferred Stock (See Note 17). As part of its strategy, the Company will endeavor to utilize the Preferred Series E and the remainder of the Series D as additional funding mechanisms. Additionally, during the second quarter of 2024, the Company will again have access to its S-3 “shelf registration” statement allowing the Company to sell additional common shares. At the time of this document, the Company estimates that it has available capacity on its shelf registration which it can utilize to bolster working capital and growth of the business in the event it did not have an uptake in the preferred classes of shares previously noted. Although additional investment is not assured, the Company is comfortable that it would be able to raise sufficient capital to support expanded operations based on an anticipated increase in business activity. In the long run, the continuation of the Company as a going concern is dependent upon the ability of the Company to continue executing its business plan, generate enough revenue, and attain consistently profitable operations. Although the lingering effects of the global pandemic related to the coronavirus (Covid-19) previously effected our operations, particularly in our supply chain, we now believe that the supply chain lags have largely been abated. We have analyzed our cash flow under “stress test” conditions and have determined that we have sufficient liquid assets on hand or available via the capital markets to maintain operations for at least twelve months from the issuance date of this report. In addition, management has taken and continues to take actions including, but not limited to, elimination of certain costs that do not contribute to short term revenue, and re-aligning both management and staffing with a focus on improving certain skill sets necessary to build growth and profitability and focusing product strategy on opportunities that are likely to bear results in the relatively short term. The Company believes that, with the combination of commercial sales success, Series E Preferred Stock offering coupled with an S-3 shelf registration availability starting in the second quarter of 2024, it will have sufficient working capital to meet its obligations over the following twelve months. In the last twelve months the Company has seen growth in its contracted backlog as well as significant, positive signs from new commercial projects that indicate improvements in future revenues. Management believes that, at this time, the conditions in our market space with ongoing contract delays and the additional time needed to execute on new contracts previously reported have put a strain on our cash reserves. However, recent private placements as well as the availability to raise capital via its shelf registration indicate there is no substantial doubt for the Company to continue as a going concern for a period of twelve months. We continue executing the plan to grow our business and achieve profitability. The Company may selectively look at opportunities for fund raising in the future. Management has extensively evaluated our requirements for the next 12 months and has determined that the Company currently has sufficient cash and access to capital to operate for at least that period. While no assurance can be provided, management believes that these actions provide the opportunity for the Company to continue as a going concern and to grow its business and achieve profitability with access to additional capital funding. Ultimately the continuation of the Company as a going concern is dependent upon the ability of the Company to continue executing the plan described above which was put in place in late 2022 and will continue in 2024 and beyond. As a result, we expect to generate sufficient revenue and to attain profitable operations with minimal cash use in the next 12-18 months. These consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2023
Receivables [Abstract]
ACCOUNTS RECEIVABLE	NOTE 3 – ACCOUNTS RECEIVABLE Accounts receivable were as follows at December 31, 2023 and 2022: Schedule of accounts receivable December 31, December 31, 2023 2022 Accounts receivable $ 1,462,463 $ 3,418,263 Allowance for doubtful accounts — — Accounts Receivable, Net $ 1,462,463 $ 3,418,263 There was no bad debt expense during the year ended December 31, 2023 and 2022.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 4 – PROPERTY AND EQUIPMENT The major classes of property and equipment are as follows at December 31, 2023 and 2022: Schedule of property and equipment December 31, December 31, 2023 2022 Furniture & Fixtures $ 132,018 $ 115,238 Tools and Equipment 1,291,673 1,162,568 Leasehold Improvements 298,004 228,404 Internal Use Software 381,441 100,241 Property, Plant and Equipment, Gross 2,103,136 1,606,451 Accumulated Depreciation (1,376,629 ) (976,961 ) Property, Equipment and Software, net $ 726,507 $ 629,490 December 31, December 31, 2023 2022 Internal Use Software consisted of the following: Internal Use Software $ 381,441 $ 100,241 Accumulated depreciation (133,149 ) (57,032 ) Internal Use Software, net $ 248,292 $ 43,209 December 31, December 31, 2023 2022 Depreciation Expense: Property and equipment, excluding internal use software $ 315,686 $ 262,895 Software amortization expense 84,328 57,033 The following is a schedule of estimated future depreciation expense of software at December 31, 2023: Schedule of estimated future depreciation expense of software 2024 $ 100,952 2025 103,716 2026 43,624 $ 248,292 Depreciation expense 315,686 267,959

PATENTS AND TRADEMARKS

PATENTS AND TRADEMARKS	12 Months Ended
	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
PATENTS AND TRADEMARKS	NOTE 5 – PATENTS AND TRADEMARKS Schedule of patents and trademarks December 31, December 31, 2023 2022 Patents $ 395,472 $ 326,145 Accumulated Amortization (266,332 ) (256,412 ) Patent, net $ 129,140 $ 69,733 Amortization expense in 2023 and 2022 was $ 9,920 13,688

SOFTWARE DEVELOPMENT COSTS

SOFTWARE DEVELOPMENT COSTS	12 Months Ended
	Dec. 31, 2023
Research and Development [Abstract]
SOFTWARE DEVELOPMENT COSTS	NOTE 6 – SOFTWARE DEVELOPMENT COSTS Schedule of software development costs December 31, December 31, 2023 2022 Software Development $ 721,309 $ 341,784 Construction in Progress 148,371 — Accumulated amortization (216,842 ) (76,576 ) Software Development, net $ 652,838 $ 265,208 Amortization of software development costs in 2023 and 2022 was $ 140,267 16,576 The following is a schedule of estimated future amortization expense of software at December 31, 2023: Schedule of estimated future amortization expense of software 2024 $ 269,893 2025 252,341 2026 130,604 $ 652,838 Depreciation of software cost in 2023 and 2022 was $ 84,328 57,033

DEBT

DEBT	12 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
DEBT	NOTE 7 – DEBT Notes Payable – Insurance Premium Financing Agreements The Company’s notes payable relating to financing agreements classified as current liabilities consist of the following as of: Schedule of notes payable December 31, 2023 December 31, 2022 Notes Payable Principal Interest Principal Interest Third Party - Insurance Note 1 $ — — $ — — % Third Party - Insurance Note 2 39,968 8.00 % 17,753 6.24 % Third Party - Insurance Note 3 2,008 — 16,094 — Third Party - Insurance Note 4 — — 40,728 — Total $ 41,976 $ 74,575 The Company entered into an agreement on December 23, 2022 with its insurance provider by issuing a $ 26,484 8.73 2,755 0 0 The Company entered into an agreement on April 15, 2022 with its insurance provider by issuing a note payable (Insurance Note 2) for the purchase of an insurance policy in the amount of $ 63,766 6.24 5,979 142,734 8.00 13,501 39,968 17,753 The Company entered into an agreement on September 15, 2022 with its insurance provider by issuing a note payable (Insurance Note 3) for the purchase of an insurance policy in the amount of $ 24,140 2,012 2,008 16,094 The Company entered into an agreement on February 3, 2022 with its insurance provider by issuing a note payable for the purchase of an insurance policy in the amount of $ 242,591 41,854 20,073 53,175 293,520 125,690 23,976 0 40,728 Equipment Financing The Company entered into an agreement on May 22, 2020 with an equipment financing company by issuing a $ 121,637 9.90 3,919 0 22,851

REVENUES AND CONTRACT ACCOUNTIN

REVENUES AND CONTRACT ACCOUNTING	12 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
REVENUES AND CONTRACT ACCOUNTING	NOTE 8 – REVENUES AND CONTRACT ACCOUNTING The Company generates revenue from four sources: (1) Technology Systems; (2) AI Technology which is included in the consolidated statements of operations line-item Technology Systems; (3) Technical Support; and (4) Consulting Services which is included in the consolidated statements of operations line-item Services and Consulting. Contract assets and contract liabilities on uncompleted contracts for revenues recognized over time are as follows: Contract Assets Contract assets on uncompleted contracts represent cumulative revenues recognized in excess of billings and/or cash received on uncompleted contracts accounted for under the cost-to-cost input method which recognizes revenue based on the ratio of costs incurred to total estimated costs. At December 31, 2023 and 2022, contract assets on uncompleted contracts consisted of the following: Schedule of contract assets on uncompleted contracts 2023 2022 Cumulative revenues recognized $ 8,820,256 $ 5,934,205 Less: Billings or cash received (8,178,309 ) (5,508,483 ) Contract Assets $ 641,947 $ 425,722 Contract Liabilities Contract liabilities on uncompleted contracts represent billings and/or cash received that exceed cumulative revenues recognized on uncompleted contracts accounted for under the cost-to-cost input method. Contract liabilities on services and consulting revenues represent billings and/or cash received in excess of revenue recognized on service agreements that are not accounted for under the cost-to-cost input method. The Company expects to recognize all contract liabilities within 12 months from the date of the consolidated balance sheet. At December 31, 2023 and 2022, contract liabilities on uncompleted contracts consisted of the following: Schedule of contract liabilities on uncompleted contracts 2023 2022 Billings and/or cash receipts on uncompleted contracts $ 1,264,658 $ 4,355,470 Less: Cumulative revenues (199,976 ) (4,144,018 ) Contract liabilities, technology systems $ 1,064,682 $ 211,452 Contract Liabilities, services and consulting 601,561 746,545 Total Contract Liabilities $ 1,666,243 $ 957,997 Contract liabilities at December 31, 2022 were $ 957,997 211,452 721,810 Disaggregation of Revenue The Company is following the guidance of ASC 606-10-55-296 and 297 for disaggregation of revenue. Accordingly, revenue has been disaggregated according to the nature, amount, timing and uncertainty of revenue and cash flows. We are providing qualitative and quantitative disclosures. Qualitative: 1. We have four distinct revenue sources: a. Technology Systems (Turnkey, engineered projects); b. AI Technology (Associated maintenance and support services); c. Technical Support (Licensing and professional services related to auditing of data center assets); and d. Consulting Services (Predetermined algorithms to provide important operating information to the users of our systems). 2. We currently operate in North America including the USA, Mexico and Canada. 3. Our customers include rail transportation, commercial, government, banking and IT suppliers. 4. Our technology systems and equipment projects fall into two types: a. Transfer of goods and services are over time. b. Goods delivered at point in time. 5. Our services & maintenance contracts are fixed price and fall into two duration types: a. Turnkey engineered projects and professional service contracts that are less than one year in duration and are typically one to two quarters in length; and b. Maintenance and support contracts ranging from one to five years in length. Quantitative: For the Year Ended December 31, 2023 Schedule of disaggregation of revenue Segments Rail Commercial Government Artificial Total Primary Geographical Markets North America $ 6,261,748 $ 78,575 $ 11,353 $ 1,119,522 $7,471,198 Major Goods and Service Lines Turnkey Projects $ 3,616,334 $ 1,694 $ — $ — $3,618,028 Maintenance & Support 2,645,414 76,881 11,353 — 2,733,648 Data Center Auditing Services — — — — — Software License — — — — — Algorithms — — — 1,119,522 1,119,522 $ 6,261,748 $ 78,575 $ 11,353 $ 1,119,522 $7,471,198 Timing of Revenue Recognition Goods transferred over time $ 3,616,334 $ 1,694 $ — $ — $3,218,028 Services transferred over time 2,645,414 76,881 11,353 1,119,522 3,853,170 $ 6,261,748 $ 78,575 $ 11,353 $ 1,119,522 $7,471,198 Quantitative: For the Year Ended December 31, 2022 Segments Rail Commercial Government Artificial Total Primary Geographical Markets North America $ 13,710,777 $ 115,443 $ 237,414 $ 948,732 $ 15,012,366 Major Goods and Service Lines Turnkey Projects $ 10,789,693 $ 9,297 $ 156,530 $ 234,772 $ 11,190,292 Maintenance & Support 2,921,084 106,146 80,884 — 3,108,114 Data Center Auditing Services — — — — — Software License — — — — — Algorithms — — — 713,960 713,960 $ 13,710,777 $ 115,443 $ 237,414 $ 948,732 $ 15,012,366 Timing of Revenue Recognition Goods transferred over time $ 10,789,693 $ 9,297 $ 156,530 $ 234,772 $ 11,190,292 Services transferred over time 2,921,084 106,146 80,884 713,960 3,822,074 $ 13,710,777 $ 115,443 $ 237,414 $ 948,732 $ 15,012,366 Segment Information The Company operates in one reportable segment.

DEFERRED COMPENSATION

DEFERRED COMPENSATION	12 Months Ended
	Dec. 31, 2023
Compensation Related Costs [Abstract]
DEFERRED COMPENSATION	NOTE 9 – DEFERRED COMPENSATION As of December 31, 2023, and 2022, the Company has accrued zero 0 297,620

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 10 – COMMITMENTS AND CONTINGENCIES Operating Lease Obligations On July 26, 2021, the Company entered a new operating lease agreement for office and warehouse combination space of 40,000 4,980,104 30,000 600,000 th 50,000 4,373,155 As of December 31, 2023, the office and warehouse lease is the Company’s only lease with a term greater than twelve months. The office and warehouse lease has a remaining term of approximately 8.5 years and includes an option to extend for two renewal terms of five years each. The renewal options are not reasonably certain to be exercised, and therefore, they are not included when determining the lease term used to establish the right-of use asset and lease liability. The Company also has several short-term leases, primarily related to equipment. The Company made an accounting policy election to not recognize short-term leases with terms of twelve months or less on the consolidated balance sheet and instead recognize the lease payments in expense as incurred. The Company has also elected to account for real estate leases that contain both lease and non-lease components (such as common area maintenance) as a single lease component. The following table shows supplemental information related to leases: Schedule of supplemental information related to leases Year Ended December 31, 2023 2022 Lease cost: Operating lease cost $ 781,638 $ 782,591 Short-term lease cost $ 63,770 $ 33,751 Other information: Operating cash outflow used for operating leases $ 696,869 $ 416,250 Weighted average discount rate 9.0 % 9.0 % Weighted average remaining lease term 8.5 9.5 At December 31, 2023, future minimum lease payments due under the operating lease are as follows: Schedule of future minimum lease payments due under the operating lease Amount Calendar year: 2024 $ 779,087 2025 798,556 2026 818,518 2027 838,984 2028 859,856 Thereafter 3,183,571 Total undiscounted future minimum lease payments 7,278,572 Less: Impact of discounting (2,270,767 ) Total present value of operating lease obligation 5,007,805 Current portion (779,087 ) Operating lease obligation, less current portion $ 4,228,718 Executive Severance Agreement Pursuant to a separation agreement with Gianni Arcaini, our former Chief Executive Officer and Chairman of the Board (the “Separation Agreement”), Mr. Arcaini’s employment with the Company ended on September 1, 2020 (“Separation Date”). The Separation Agreement provided that he would receive separation payments over a 36- month period equal to his base salary plus $75,000 as well as certain limited health and life insurance benefits. The Separation Agreement also contained confidentiality, non-disparagement and non-solicitation covenants and a release of claims by Mr. Arcaini. In accordance with the Separation Agreement, the Company paid to Mr. Arcaini the total sum of $747,788. On March 1, 2021, the Company paid to Mr. Arcaini a lump-sum amount equal to the first six months of payments, or $124,631, owed to Mr. Arcaini and the Company continued to pay him in semi-monthly installments for 30 months thereafter, as contemplated in Mr. Arcaini’s Separation Agreement. The remaining balance included in accrued expenses in the accompanying unaudited consolidated balance sheet is zero as of December 31, 2023.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 11 – INCOME TAXES The Company maintains deferred tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The deferred tax assets (liabilities) at December 31, 2023 and 2022 consist of net operating loss carryforwards and differences in the book basis and tax basis of intangible assets. The items accounting for the difference between income taxes at the effective statutory rate and the provision for income taxes for the years ended December 31, 2023 and 2022 were as follows: Schedule of difference between income taxes at effective statutory rate and provision for income taxes Years Ended December 31, 2023 2022 Income tax benefit at U.S. statutory rate of 21% $ (2,360,761 ) $ (1,441,624 ) State income taxes (404,702 ) (247,135 ) Non-deductible expenses 271,648 201,521 Change in valuation allowance 2,493,815 1,487,238 Total provision for income tax $ — $ — The Company’s approximate net deferred tax assets as of December 31, 2023 and 2022 were as follows: Schedule of net deferred tax assets December 31, 2023 2022 Deferred Tax Asset (Liability): Net operating loss carryforward $ 12,318,836 $ 9,772,854 Intangible assets (84,823 ) (32,656 ) 12,234,013 9,740,198 Valuation allowance (12,234,013 ) (9,740,198 ) Net deferred tax assets $ — $ — The gross operating loss carryforward was approximately $ 50,076,569 39,727,050 2,493,815 The potential tax benefit arising from the net operating loss carryforward of $ 4,357,876 7,876,137 Additionally, the future utilization of the net operating loss carryforward to offset future taxable income is subject to an annual limitation as a result of ownership or business changes that may occur in the future. The Company has not conducted a study to determine the limitations on the utilization of these net operating loss carryforwards. If necessary, the deferred tax assets will be reduced by any carryforward that may not be utilized or expires prior to utilization as a result of such limitations, with a corresponding reduction of the valuation allowance. The Company does not have any uncertain tax positions or events leading to uncertainty in a tax position. The Company’s 2022, 2021 and 2020 Corporate Income Tax Returns are subject to Internal Revenue Service examination.

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	12 Months Ended
	Dec. 31, 2023
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 12 – STOCKHOLDERS’ EQUITY 2016 Equity Plan We maintained the 2016 Equity Incentive Plan (the “2016 Plan”) for employees, officers, directors and other entities and individuals whose efforts contribute to our success. The 2016 Plan terminated pursuant to its terms on December 31, 2020, although all outstanding awards on such date continue in full force and effect. 2021 Equity Plan On May 12, 2021, the Board adopted, with shareholder approval as of July 15, 2021, the 2021 Equity Incentive Plan (the “2021 Plan”) providing for the issuance of up to 1,000,000 General Description of the 2021 Plan The following is a summary of the material provisions of the 2021 Plan and is qualified in its entirety by reference to the complete text of the 2021 Plan, which you are encouraged to read in full. Administration The 2021 Plan is administered by the Compensation Committee of the Board, which consists of three members of the Board, each of whom is a “non-employee director” within the meaning of Rule 16b-3 promulgated under the Exchange Act and an “outside director” within the meaning of Code Section 162(m). Among other things, the Compensation Committee has complete discretion, subject to the express limits of the 2021 Plan, to determine the directors, employees and nonemployee consultants to be granted an award, the type of award to be granted, the terms and conditions of the award, the form of payment to be made and/or the number of shares of Common Stock subject to each award, the exercise price of each option and base price of each stock appreciation right (“SAR”), the term of each award, the vesting schedule for an award, whether to accelerate vesting, the value of the Common Stock underlying the award, and the required withholding, if any. The Compensation Committee may amend, modify or terminate any outstanding award, provided that the participant’s consent to such action is required if the action would impair the participant’s rights or entitlements with respect to that award. The Compensation Committee is also authorized to construe the award agreements and may prescribe rules relating to the 2021 Plan. Notwithstanding the foregoing, the Compensation Committee does not have any authority to grant or modify an award under the 2021 Plan with terms or conditions that would cause the grant, vesting or exercise thereof to be considered nonqualified “deferred compensation” subject to Code Section 409A. Grant of Awards; Shares Available for Awards The 2021 Plan provides for the grant of stock options, SARs, performance share awards, performance unit awards, distribution equivalent right awards, restricted stock awards, restricted stock unit awards and unrestricted stock awards to non-employee directors, officers, employees and nonemployee consultants of the Company or its affiliates. We have reserved a total of 1,000,000 Stock Options The 2021 Plan provides for either “incentive stock options” (“ISOs”), which are intended to meet the requirements for special federal income tax treatment under the Code, or “nonqualified stock options” (“NQSOs”). On May 12, 2021, the 2021 Plan was approved by the board of directors and by the shareholders on July 15, 2021. Stock options may be granted on such terms and conditions as the Compensation Committee may determine; provided, however, that the per share exercise price under a stock option may not be less than the fair market value of a share of the Company’s Common Stock on the date of grant and the term of the stock option may not exceed 10 years more than 10% of the total combined voting power of all classes of capital stock 100,000 Stock Appreciation Rights An SAR entitles the participant, upon exercise, to receive an amount, in cash or stock or a combination thereof, equal to the increase in the fair market value of the underlying Common Stock between the date of grant and the date of exercise. SARs may be granted in tandem with, or independently of, stock options granted under the 2021 Plan. An SAR granted in tandem with a stock option (i) is exercisable only at such times, and to the extent, that the related stock option is exercisable in accordance with the procedure for exercise of the related stock option; (ii) terminates upon termination or exercise of the related stock option (likewise, the Common Stock option granted in tandem with a SAR terminates upon exercise of the SAR); (iii) is transferable only with the related stock option; and (iv) if the related stock option is an ISO, may be exercised only when the value of the stock subject to the stock option exceeds the exercise price of the stock option. An SAR that is not granted in tandem with a stock option is exercisable at such times as the Compensation Committee may specify. Performance Share and Performance Unit Awards Performance share and performance unit awards entitle the participant to receive cash or shares of our Common Stock upon the attainment of specified performance goals. In the case of performance units, the right to acquire the units is denominated in cash values. Restricted Stock Awards and Restricted Stock Unit Awards A restricted stock award is a grant or sale of Common Stock to the participant, subject to our right to repurchase all or part of the shares at their purchase price (or to require forfeiture of such shares if issued to the participant at no cost) in the event that conditions specified by the Compensation Committee in the award are not satisfied prior to the end of the time period during which the shares subject to the award may be repurchased by or forfeited to us. Our restricted stock unit entitles the participant to receive a cash payment equal to the fair market value of a share of Common Stock for each restricted stock unit subject to such restricted stock unit award, if the participant satisfies the applicable vesting requirement. Unrestricted Stock Awards An unrestricted stock award is a grant or sale of shares of our Common Stock to the participant that is not subject to transfer, forfeiture or other restrictions, in consideration for past services rendered to the Company or an affiliate or for other valid consideration. Amendment and Termination The Compensation Committee may adopt, amend and rescind rules relating to the administration of the 2021 Plan, and amend, suspend or terminate the 2021 Plan, but no such amendment, rescission, suspension or termination will be made that materially and adversely impairs the rights of any participant with respect to any award received thereby under the 2021 Plan without the participant’s consent, other than amendments that are necessary to permit the granting of awards in compliance with applicable laws. Series B Convertible Preferred Stock The following summary of certain terms and provisions of our Series B Convertible Preferred Stock (the “Series B Convertible Preferred Stock”) is subject to, and qualified in its entirety by reference to, the terms and provisions set forth in our certificate of designation of preferences, rights and limitations of Series B Convertible Preferred Stock (the “Series B Convertible Preferred Certificate of Designation”) as previously filed. Subject to the limitations prescribed by our articles of incorporation, our board of directors is authorized to establish the number of shares constituting each series of preferred stock and to fix the designations, powers, preferences, and rights of the shares of each of those series and the qualifications, limitations and restrictions of each of those series, all without any further vote or action by our stockholders. Our board of directors designated 15,000 10,000,000 1,000 Each share of Series B Convertible Preferred Stock was convertible at any time at the holder’s option into a number of shares of common stock equal to $ 1,000 7.00 0 0 Series C Convertible Preferred Stock The Company’s Board of Directors designated 5,000 1,000 Each share of Series C Convertible Preferred Stock had 172 votes (subject to adjustment); provided that in no event may a holder of Series C Convertible Preferred Stock be entitled to vote a number of shares in excess of such holder’s Beneficial Ownership Limitation (as defined in the Certificate of Designation and as described below). Each share of Series C Convertible Preferred Stock was convertible, at any time and from time to time, at the option of the holder, into that number of shares of common stock (subject to the Beneficial Ownership Limitation) determined by dividing the stated value of such share ($1,000) by the conversion price, which is $5.50 (subject to adjustment). The Company shall not effect any conversion of the Series C Convertible Preferred Stock, and a holder shall not have the right to convert any portion of the Series C Convertible Preferred Stock, to the extent that after giving effect to the conversion sought by the holder such holder (together with such holder’s Attribution Parties (as defined in the Certificate of Designation)) would beneficially own more than 4.99% (or upon election by a holder, 19.99%) of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock issuable upon such conversion (the “Beneficial Ownership Limitation”). All holders of the Series C Preferred Stock elected the 19.99% Beneficial Ownership Limitation. On February 26, 2021, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain existing investors in the Company (the “Purchasers”). Pursuant to the Purchase Agreement, the Purchasers purchased 4,500 shares of a newly authorized Series C Convertible Preferred Stock, and the Company received proceeds of $ 4,500,000 454,546 0 0 In connection with the Purchase Agreement, the Company also entered into a Registration Rights Agreement with the Purchasers. Pursuant to the Registration Rights Agreement, the Company filed with the SEC a registration statement covering the resale by the Purchasers of the shares of common stock into which the shares of Series C Convertible Preferred Stock were convertible. The Registration Rights Agreement contains customary representations, warranties, agreements and indemnification rights and obligations of the parties. Series D Convertible Preferred Stock On September 28, 2022, the Company amended its articles of incorporation to designate 4,000 1,000 Each share of Series D Convertible Preferred Stock has 333 votes 3.00 On September 30, 2022, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain existing investors in the Company (the “Purchasers”). Pursuant to the Purchase Agreement, the Purchasers purchased 999 999,000 On October 29, 2022, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with a certain existing investor in the Company (the “Purchaser”). Pursuant to the Purchase Agreement, the Purchaser purchased 300 300,000 In connection with such Purchase Agreements, the Company also entered into a Registration Rights Agreement with the Purchasers. Pursuant to the Registration Rights Agreement, the Company filed with the SEC a registration statement covering the resale by the Purchasers of the shares of common stock into which the shares of Series D Convertible Preferred Stock are convertible. The Registration Rights Agreement contains customary representations, warranties, agreements and indemnification rights and obligations of the parties. On May 16, 2023 the Series D Convertible Preferred Stock was approved for conversion to common shares during the Company’s annual shareholder meeting. As of December 31, 2023 and December 31, 2022, respectively, there were 1,299 1,299 Series E Convertible Preferred Stock The Company’s Board of Directors has designated 30,000 1,000 Each share of Series E Preferred Stock has 333 votes The Company on March 27, 2023 entered into a Securities Purchase Agreement (the “Purchase Agreement”) with an existing investor in the Company (the “Purchaser”). Pursuant to the Purchase Agreement, the Purchaser purchased 4,000 1,000 4,000,000 The existing investor’s Purchase Agreement also provides that the Company will not, with certain exceptions, sell or issue common stock or Common Stock Equivalents (as defined in the Purchase Agreement) on or prior to December 31, 2023 that entitles any person to acquire shares of common stock at an effective price per share less than the then conversion price of the Series E Convertible Preferred Stock without the consent of the Purchaser. On November 9, 2023, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with an existing investor in the Company (the “Purchaser”). Pursuant to the Purchase Agreement, the Purchaser purchased 2,500 1,000 2,500,000 5,000 1,000 3.00 5,000 6.20 The November Purchase Agreement also provides that the Company will not, with certain exceptions, sell or issue common stock or Common Stock Equivalents (as defined in the November Purchase Agreement) on or prior to June 30, 2024 that entitles any person to acquire shares of common stock at an effective price per share less than the then conversion price of the Series E Preferred Stock without the consent of the Purchasers. The conversion price of the Series E Preferred Stock currently is $3.00 per share (subject to adjustment). The Purchasers under the November Purchase Agreement also were the holders of the Company's Series F Preferred Stock issued on August 1, 2023. The purchase agreement relating to the shares of Series F Preferred Stock required the consent of the holders in the event the Company were to issue common stock or rights to acquire common stock prior to December 31, 2023 at an effective price per share less than the then conversion price of the Series F Preferred Stock, which was $ 6.20 5,000 7,500 5,000 The existing investor’s Purchase Agreement also provides that the Company would not, with certain exceptions, sell or issue common stock or Common Stock Equivalents (as defined in the Purchase Agreement) on or prior to December 31, 2023 that entitled any person to acquire shares of common stock at an effective price per share less than the then conversion price of the Series E Convertible Preferred Stock without the consent of the Purchaser. As of December 31, 2023 and December 31, 2022, respectively, there were 11,500 0 Series F Convertible Preferred Stock On August 2, 2023, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with an existing, accredited investor in the Company (the “Purchaser”). Pursuant to the Purchase Agreement, the Purchaser purchased 5,000 5,000,000 The Company's Board of Directors designated 5,000 1,000 6.20 The holders of the Series F Preferred Stock, the holders of the common stock and the holders of any other class or series of shares entitled to vote with the common stock shall vote together as one class on all matters submitted to a vote of shareholders of the Company. Each share of Series F Preferred Stock had 161 votes The Company also agreed that it would not, with certain exceptions, sell or issue common stock or Common Stock Equivalents (as defined in the Purchase Agreement relating to the Series F Preferred Stock) on or prior to December 31, 2023 that entitled any person to acquire shares of common stock at an effective price per share less than the then conversion price of the Series F Preferred Stock without the consent of the holders. As a result of that agreement, upon the issuance of 2,500 3.00 5,000 5,000 0 As of December 31, 2023 and December 31, 2022, respectively, there were 0 0 Common stock issued 2023 Transactions On March 31, 2023, the Company issued 12,463 32,500 2.61 On June 30, 2023, the Company issued 5,645 32,500 5.76 On June 30, 2023, the Company issued 65,561 117,048 1.79 66,217 The Company issued 7,910 40,565 5.13 For the three months ended September 30, 2023, the Company had an accrued liability of $ 72,801 The Company issued 12,231 37,500 3.06 On December 29, 2023, the Company issued 45,977 113,352 2.47 70,434 2022 Transactions On January 11, 2022, shareholders converted 710 1,790 5.50 On February 3, 2022, the Company closed an offering of 1,325,000 5,300,000 4 4,779,000 On February 21, 2022, the Company closed on an “over-allotment” offering of 198,750 795,000 4 739,350 50,000,000 On March 31, 2022, the Company issued 7,198 40,000 5.56 On June 30, 2022, the Company issued 10,668 40,000 3.75 On August 25, 2022, 121,572 851 On September 30, 2022, the Company issued 9,758 40,000 On September 30, 2022, we sold to certain existing investors in the Company in a private placement 818,335 3.00 999 1,000 3,454,003 260,816 257,240 On October 29, 2022, we sold to an existing investor in the Company and two accredited investors in a private placement 83,667 3.00 300 1,000 551,001 105,460 On December 30, 2022, the Company issued 16,335 37,500 2.30 Employee Stock Purchase Plan In the fourth quarter of 2022, the board of directors adopted an Employee Stock Purchase Plan (“ESPP”) which, was effective as of January 1, 2023 with a term of 10 The ESPP allows eligible employees to purchase shares of the Company's common stock at a discounted price, through payroll deductions from a minimum of 1% and up to 25% of their eligible compensation up to a maximum of $25,000 or the IRS allowable limit per calendar year. 1,000,000 Under ASC 718-50 “Employee Share Purchase Plans” the plan is considered a compensatory plan and the compensation for each six-month offering period is computed based upon the grant date fair value of the estimated shares to be purchased based on the estimated payroll deduction withholdings. The grant date fair value was computed as the sum of (a) 15% purchase discount off of the grant date quoted trading price of the Company’s common stock and (b) the fair value of the look-back feature of the Company’s common stock on the grant date which consists of a call option on 85% of a share of common stock and a put option on 15% of a share of common stock. In the year ended December 31, 2023, the Company issued 111,538 117,048 1.79 65,561 113,352 2.47 45,977 Stock-Based Compensation Stock-based compensation expense recognized under ASC 718-10 for the years ended December 31, 2023 and 2022, was $ 573,441 819,191 580,572 12 2.0 Treasury Stock In August 2016, the Company’s Board of Directors approved a new class of Preferred Stock, “Series A”. For shareholders who invested in previous private placements, the Company was offering on a case-by-case basis, the ability to convert the existing amount invested into an equivalent amount in the Series A on the condition that they invest an equivalent additional amount in the Series A. In December of 2017, the Company redeemed all of the Series A and continues to hold 235 148,000 84 7.00 140 6.30 115 10.08 753 9.09 1,324 157,452

COMMON STOCK OPTIONS AND WARRAN

COMMON STOCK OPTIONS AND WARRANTS	12 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
COMMON STOCK OPTIONS AND WARRANTS	NOTE 13 – COMMON STOCK OPTIONS AND WARRANTS Options 2023 During the second quarter of 2023, the Company’s Board of Directors granted 293,117 170,000 4.22 556,000 172,000 269,611 458,389 2.0 During the first quarter of 2023, two former staff members forfeited 1,608 2022 During the first quarter of 2022, the Company’s Board of Directors granted 665,000 20,000 6.41 1,596,804 33,096 819,191 458,389 2.0 During the second quarter of 2022, three former staff members forfeited 110,000 80,000 During the third quarter of 2021, the shareholders approved the issuance of up to one million shares or share equivalents in the form of stock options for the purposes of share issuance for compensation to Board Members and grants to certain staff members for recruiting and retention. On August 5, 2021, the Company filed an S-8 registration statement in concert with the 2021 Equity Incentive Plan. The plan covers a period of ten years. Schedule of options activity Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (Years) Value Outstanding at December 31, 2021 431,266 $ 4.98 3.4 $ 197,506 Granted 685,000 $ 6.41 4.0 — Forfeited (190,000 ) $ 6.41 — — Outstanding at December 31, 2022 926,266 $ 5.74 3.3 — Exercisable at December 31, 2022 404,599 $ 5.02 3.3 — Outstanding at December 31, 2022 926,266 $ 5.74 3.3 — Granted 463,117 $ 4.22 4.35 — Exercised/Forfeited (1,608 ) $ 14.00 — — Outstanding at December 31, 2023 1,387,775 $ 5.23 3.0 $ — Exercisable at December 31, 2023 581,324 $ 5.38 1.8 — The fair value of the incentive stock option grants for the years ended December 31, 2023 and 2022 were estimated using the following weighted- average assumptions: Schedule of weighted- average assumptions For the Years Ended 2023 2022 Risk free interest rate 3.73 0.97% 3.15 Expected term in years 3.50 3.25 3.50 Dividend yield — — Volatility of common stock 54% 118 72% 80 Weighted average grant date fair value per option $1.57 $ 2.33 Warrants 2023 During the first and fourth quarters of 2023, warrants held by 48 holders representing 102,947 2022 During the fourth quarter of 2022, warrants held by 63 holders representing 1,228,875 Schedule of warrants outstanding Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Warrants Price Term (Years) Value Outstanding at December 31, 2021 1,376,466 $ 8.18 1.9 — Warrants expired, forfeited, cancelled or exercised (1,228,875 ) $ — — — Warrants issued — $ — — — Outstanding at December 31, 2022 80,091 $ 8.63 0.98 — Exercisable at December 31, 2022 80,091 $ 8.63 0.8 — Outstanding at December 31, 2022 80,091 $ 8.63 0.8 — Warrants expired, forfeited, cancelled or exercised (102,947 ) $ — — — Warrants issued — $ — — — Outstanding at December 31, 2023 44,644 $ 7.70 0.7 — Exercisable at December 31, 2023 44,644 $ 7.70 0.7 —

DEFINED CONTRIBUTION PLAN

DEFINED CONTRIBUTION PLAN	12 Months Ended
	Dec. 31, 2023
Retirement Benefits [Abstract]
DEFINED CONTRIBUTION PLAN	NOTE 14 – DEFINED CONTRIBUTION PLAN The Company has a 401(k)-retirement savings plan (the “401(k) Plan”) covering all eligible employees. The 401(k) Plan allows employees to defer a portion of their annual compensation, and the Company may match a portion of the employees’ contributions generally after the first six months of service. During the year ended December 31, 2023, the Company matched 100% of the first 4% of eligible employee compensation that was contributed to the 401(k) Plan. For the year ended December 31, 2023, the Company recognized expense for matching cash contributions to the 401(k) Plan totaling $ 216,332

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 15 – RELATED PARTY TRANSACTIONS There were no related party transactions for the periods reflected in this report.

SALE OF ASSETS

SALE OF ASSETS	12 Months Ended
	Dec. 31, 2023
Sale Of Assets
SALE OF ASSETS	NOTE 16 – SALE OF ASSETS On June 29, 2023, the Company completed a transaction whereby it sold assets related to its Integrated Correctional Automation System (iCAS) business with a single customer. In the fourth quarter of 2022, the Company elected to not renew a support contract due to the limited nature of the business. The transaction was completed with a third-party buyer of which the Company’s former Chief Financial Officer is a director. Said former officer did not participate in the transaction on behalf of the Company. The assets of the iCAS business were sold for a convertible promissory note with a principal amount of $ 165,000 10 0.003 55,000,000 The common stock purchase warrants are for a total of 55,000,000 0.01 The Company recognized a gain on sale of assets of $ 150,000 The original issue discount is being accrued into interest income over the term of the note. The note receivable was recorded as follows on September 30, 2023: Schedule of note receivable December 31, 2023 Convertible note receivable $ 165,000 Unamortized discount (11,250 ) Convertible note receivable, net $ 153,750

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 17 – SUBSEQUENT EVENTS On March 22, 2024, the Company conducted a private placement offering, selling a combined total of 620 2,125 1,000 3.00 2,745,000 In connection with the Purchase Agreement, the Company also entered into a Registration Rights Agreement with the Purchasers. Pursuant to the Registration Rights Agreement, the Company shall file with the SEC a registration statement covering the resale by the Purchasers of the shares of common stock into which the shares of Series D and Series E Preferred Stock are convertible. Subject to certain conditions, the Company must cause the registration statement to be declared effective by 90 days after closing (or in the event of a full review by the SEC, by 120 days). The Registration Rights Agreement contains customary representations, warranties, agreements and indemnification rights and obligations of the parties. Under the Purchase Agreement, the Company is required to hold a meeting of shareholders at the earliest practical date, but in no event later than 120 days after closing (or 150 days in the event of a review of the proxy statement by the Securities and Exchange Commission (the “SEC”)). As described below, the terms of the Series E Preferred Stock limit its convertibility until the Company receives shareholder approval (the “Stockholder Approval”). If the Company does not obtain the Stockholder Approval at the first meeting, it is required to hold shareholder meetings every four months until the Stockholder Approval is obtained. The Purchase Agreement for Series E Preferred Stock also provides that the Company will not, with certain exceptions, sell or issue common stock or Common Stock Equivalents (as defined in the Purchase Agreement) on or prior to December 31, 2024 that entitles any person to acquire shares of common stock at an effective price per share less than the then conversion price of the Series E Preferred Stock without the consent of the Purchaser. The Registration Rights Agreement contains provisions for liquidated damages equal to 1% multiplied by the aggregate subscription amount paid, paid each month, in the event certain deadlines are missed.

NATURE OF OPERATIONS AND SUMM_2

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations Duos Technologies Group, Inc. (the “Company”), through its operating subsidiaries, Duos Technologies, Inc. (“Duos”) and TrueVue360, Inc. (“TrueVue360”) (collectively the “Company”), is a company that specializes in machine vision and artificial intelligence to analyze fast moving objects such as trains, trucks, automobiles, and aircraft. This technology can help improve safety, maintenance, and operating metrics. The Company is the inventor of the Railcar Inspection Portal (RIP) and is currently the rail industry leader for machine vision/camera wayside detection systems that include the use of Artificial Intelligence at speeds up to 125 mph. The RIP inspects a train at full speed from the top, sides, and bottom looking at FRA/AAR mandated safety inspection points. The system also detects illegal riders that assists law enforcement agencies. Each rail car is scanned with machine vision cameras and other sensors from the top, sides, and bottom and images are produced within seconds of passing that can be used by the customer to help prevent derailments, improve maintenance operations, and assist with security. The Company self-performs all aspects of hardware, software, IT, and Artificial Intelligence development and engineering and holds several patents and maintains significant intellectual property. The Company also has a proprietary portfolio of over 48 Artificial Intelligence “Use Cases” that automatically flag defects. The Company has deployed this system with several Class 1 and passenger customers and anticipates an increased demand in the future from rail operators, car owners, shippers, and law enforcement agencies. The Company has also developed the Automated Logistics Information System (ALIS) which automates gatehouse operations where trucks enter and exit large logistics and intermodal facilities. This solution also incorporates sensors and data points as necessary for each operation and directly interconnects with backend logistics databases and processes to streamline operations and significantly improve operations and security and, importantly, dramatically improves throughput on each lane on which the technology is deployed. The Company expects to deploy an upgraded Truck Inspection Portal (TIP) which uses the same technology and lessons learned from the ALIS and RIP systems. The Company’s strategy is to expand our existing customer base in the Class 1, short line, and passenger space in North America; expand our subscription offering to car owners and shippers; and expand operations to meet the demand from international customers. The Company has prepared to respond and scale if necessary to react to increased demand from potential regulations that may be imposed around wayside detection technology. In the future the Company may put more emphasis on the trucking and intermodal sector with an updated Truck Inspection Portal solution. The Company continues to focus on operational and technical excellence, customer satisfaction, and maintaining a highly skilled and performance-based work force.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Duos Technologies, Inc. and TrueVue360, Inc. All inter-company transactions and balances are eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. The most significant estimates in the accompanying consolidated financial statements include the allowance on accounts receivable and notes receivable, valuation of common stock warrants received in exchange for an asset sale, valuation of deferred tax assets, valuation of intangible and other long-lived assets, estimates of net contract revenues and the total estimated costs to determine progress towards contract completion, valuation of inventory, estimates of the valuation of right of use assets and corresponding lease liabilities, valuation of warrants issued with debt and valuation of stock-based awards. We base our estimates on historical experience and on various other assumptions that we believe are reasonable 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. Actual results may differ from these estimates.
Concentrations	Concentrations Cash Concentrations Cash is maintained at financial institutions and at times, balances may exceed federally insured limits. We have not experienced any losses related to these balances. As of December 31, 2023, the Company had balances in a financial institution which combined exceeded federally insured limits by approximately $ 1,948,794 Significant Customers and Concentration of Credit Risk The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: For the year ended December 31, 2023, three customers accounted for 48 30 11 42 18 14 14 30 At December 31, 2023, two customers accounted for 83 11 34 31 19 10 Geographic Concentration Approximately 44 41 Significant Vendors and Concentration of Credit Risk In some instances, the Company relies on a limited pool of vendors for key components related to the manufacturing of its subsystems. These vendors are primarily focused on camera, server and lighting technologies integral to the Company’s solution. Where possible, the Company seeks multiple vendors for key components to mitigate vendor concentration risk.
Fair Value of Financial Instruments and Fair Value Measurements	Fair Value of Financial Instruments and Fair Value Measurements The Company follows Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures” (“ASC 820”), for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that requires the use of fair value measurements, establishes a framework for measuring fair value and expands disclosure about such fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions that the market participants would use in the valuation of the asset or liability based on the best available information. The Company analyzes all financial instruments with features of both liabilities and equity under the Financial Accounting Standard Board’s (“FASB”) accounting standard for such instruments. Under this standard, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The estimated fair value of certain financial instruments, including accounts receivable, prepaid expenses, accounts payable, accrued expenses and notes payable are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments.
Accounts Receivable	Accounts Receivable On January 1, 2023, the Company adopted ASC 326, "Financial Instruments - Credit Losses". In accordance with ASC 326, an allowance is maintained for estimated forward-looking losses resulting from the possible inability of customers to make required payments (current expected losses). The amount of the allowance is determined principally on the basis of past collection experience and known financial factors regarding specific customers. Accounts receivable are stated at estimated net realizable value. Accounts receivable are comprised of balances due from customers net of estimated allowances for uncollectible accounts. In determining the collections on the account, historical trends are evaluated, and specific customer issues are reviewed to arrive at appropriate allowances. The Company reviews its accounts to estimate losses resulting from the inability of its customers to make required payments. Any required allowance is based on specific analysis of past due accounts and also considers historical trends of write-offs. Past due status is based on how recently payments have been received from customers.
Inventory	Inventory Inventory consists primarily of spare parts and consumables and long-lead time components to be used in the production of our technology systems or in connection with maintenance agreements with customers. Any inventory deemed to be obsolete is written off. Inventory is stated at the lower of cost or net realizable value. Inventory cost is primarily determined using the weighted average cost method.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is provided by the straight-line method over the estimated economic life of the property and equipment (three 3 5
Software Development Costs	Software Development Costs Software development costs incurred prior to establishing technological feasibility are charged to operations and included in research and development costs. The technological feasibility of a software product is established when the Company has completed all planning, designing, coding, and testing activities that are necessary to establish that the product meets its design specifications, including functionality, features, and technical performance requirements. Software development costs incurred after establishing technological feasibility for software sold as a perpetual license, as defined within ASC 985-20 (Software – Costs of Software to be Sold, Leased, or Marketed) are capitalized and amortized on a product-by-product basis when the product is available for general release to customers. Software development costs are evaluated for impairment annually by comparing the net realizable value to the unamortized capitalization costs and writing these costs down to net realizable value.
Patents and Trademarks	Patents and Trademarks Patents and trademarks which are stated at amortized cost, relate to the development of video surveillance security system technology and are being amortized over 17
Long-Lived Assets	Long-Lived Assets The Company evaluates the recoverability of its property, equipment, and other long-lived assets in accordance with FASB ASC 360-10-35-15 “Impairment or Disposal of Long-Lived Assets”, which requires recognition of impairment of long-lived assets in the event the net book values of such assets exceed the estimated future undiscounted cash flows attributable to such assets or the business to which such intangible assets relate. This guidance requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.
Product Warranties	Product Warranties The Company has a 90 12 36
Loan Costs	Loan Costs Loan costs paid to lenders, or third parties are recorded as debt discounts to the related loans and amortized to interest expense over the loan term.
Sales Returns	Sales Returns Our systems are sold as integrated systems and there are no sales returns allowed.
Revenue Recognition	Revenue Recognition The Company follows Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”), that affects the timing of when certain types of revenues will be recognized. The basic principles in ASC 606 include the following: a contract with a customer creates distinct contract assets and performance obligations, satisfaction of a performance obligation creates revenue, and a performance obligation is satisfied upon transfer of control to a good or service to a customer. Revenue is recognized by evaluating our revenue contracts with customers based on the five-step model under ASC 606: 1. Identify the contract with the customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to separate performance obligations; and 5. Recognize revenue when (or as) each performance obligation is satisfied. The Company generates revenue from four sources: (1) Technology Systems; (2) AI Technologies; (3) Technical Support and (4) Consulting services. Technology Systems For revenues related to technology systems, the Company recognizes revenue over time using a cost-based input methodology in which significant judgment is required to estimate costs to complete projects. These estimated costs are then used to determine the progress towards contract completion and the corresponding amount of revenue to recognize. Accordingly, the Company now bases its revenue recognition on ASC 606-10-25-27, where control of a good or service transfers over time if the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date including a profit margin or reasonable return on capital. Control is deemed to pass to the customer instantaneously as the goods are manufactured and revenue is recognized accordingly. In addition, the Company has adopted ASC 606-10-55-21 such that if the cost incurred is not proportionate to the progress in satisfying the performance obligation, we adjust the input method to recognize revenue only to the extent of the cost incurred. Therefore, the Company will recognize revenue at an equal amount to the cost of the goods to satisfy the performance obligation. To accurately reflect revenue recognition based on the input method, the Company has adopted the implementation guidance as set out in ASC-606-10-55-187 through 192. Under this method, contract revenues are recognized over the performance period of the contract in direct proportion to the costs incurred. Costs include direct material, direct labor, subcontract labor and other allocable indirect costs. All un-allocable indirect costs and corporate general and administrative costs are also charged to the periods as incurred. Any recognized revenues that have not been billed to a customer are recorded as an asset in “contract assets”. Any billings of customers more than recognized revenues are recorded as a liability in “contract liabilities”. However, in the event a loss on a contract is foreseen, the Company will recognize the loss when such loss is determined to be both probable and reasonably estimable. AI Technologies The Company has revenue from applications that incorporate artificial intelligence (AI) in the form of predetermined algorithms which provide important operating information to the users of our systems. The revenue generated from these applications of AI consists of a fixed fee related to the design, development, testing and incorporation of new algorithms into the system, which is recognized as revenue at a point in time upon acceptance, as well as an annual application maintenance fee, which is recognized as revenue ratably over the contracted maintenance term. Technical Support Technical support services are provided on both an as-needed and extended-term basis and may include providing both parts and labor. Maintenance and technical support provided outside of a maintenance contract are on an “as-requested” basis, and revenue is recognized over time as the services are provided. Revenue for maintenance and technical support provided on an extended-term basis is recognized over time ratably over the term of the contract. Consulting Services The Company’s consulting services business generates revenues under contracts with customers from four sources: (1) Professional Services (consulting and auditing); (2) Software licensing with optional hardware sales; (3) Customer service training and (4) Maintenance support. (1) Revenues for professional services, which are of short-term duration, are recognized when services are completed; (2) For all periods reflected in this report, software license sales have been one-time sales of a perpetual license to use our software product and the customer also has the option to purchase third-party manufactured handheld devices from us if they purchase our software license. Accordingly, the revenue is recognized upon delivery of the software and delivery of the hardware, as applicable, to the customer; (3) Training sales are one-time upfront short-term training sessions and are recognized after the service has been performed; and (4) Maintenance/support is an optional product sold to our software license customers under one-year contracts. Accordingly, maintenance payments received upfront are deferred and recognized over the contract term.
Multiple Performance Obligations and Allocation of Transaction Price	Multiple Performance Obligations and Allocation of Transaction Price Arrangements with customers may involve multiple performance obligations including project revenue and maintenance services in our Technology Systems business. Maintenance will occur after the project is completed and may be provided on an extended-term basis or on an as-needed basis. In our consulting services business, multiple performance obligations may include any of the above four sources. Training and maintenance on software products may occur after the software product sale while other services may occur before or after the software product sale and may not relate to the software product. Revenue recognition for a multiple performance obligations arrangement is as follows: Each performance obligation is accounted for separately when each has value to the customer on a standalone basis and there is Company specific objective evidence of the selling price of each deliverable. For revenue arrangements with multiple deliverables, the Company allocates the total customer arrangement to the separate units of accounting based on their relative selling prices as determined by the price of the items when sold separately. Once the selling price is allocated, the revenue for each performance obligation is recognized using the applicable criteria under GAAP as discussed above for performance obligations sold in single performance obligation arrangements. A delivered item or items that do not qualify as a separate unit of accounting within the arrangement are combined with the other applicable undelivered items within the arrangement. The allocation of arrangement consideration and the recognition of revenue is then determined for those combined deliverables as a single unit of accounting. The Company sells its various services and software and hardware products at established prices on a standalone basis which provides Company specific objective evidence of selling price for purposes of performance obligations relative selling price allocation. The Company only sells maintenance services or spare parts based on its established rates after it has completed a system integration project for a customer. The customer is not required to purchase maintenance services. All elements in multiple performance obligations arrangements with Company customers qualify as separate units of account for revenue recognition purposes.
Advertising	Advertising The Company expenses the cost of advertising. During the years ended December 31, 2023 and 2022, there were no
Stock Based Compensation	Stock Based Compensation The Company accounts for employee and non-employee stock-based compensation in accordance with ASC 718-10, “ Share-Based Payment The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing formula. In accordance with ASC 718-10-35-8, the Company elected to recognize the fair value of the stock award using the graded vesting method as time of employment service is the criteria for vesting. The Company’s determination of fair value using an option-pricing model is affected by the stock price as well as assumptions regarding a number of highly subjective variables. The Company estimates volatility based upon the historical stock price of the Company and estimates the expected term for stock options using the simplified method for employees and directors and the contractual term for non-employees. The risk-free rate is determined based upon the prevailing rate of United States Treasury securities with similar maturities.
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with the Financial Accounting Standards Board FASB Accounting Standards Codification (“ASC”) 740, Income Taxes, which requires the recognition of deferred income taxes for differences between the basis of assets and liabilities for financial statement and income tax purposes. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company evaluates all significant tax positions as required by ASC 740. As of December 31, 2023, the Company does not believe that it has taken any positions that would require the recording of any additional tax liability, nor does it believe that there are any unrealized tax benefits that would either increase or decrease within the next year. Any penalties and interest assessed by income taxing authorities are included in operating expenses. The federal and state income tax returns of the Company are subject to examination by the IRS and state taxing authorities, generally for three years after they were filed. Tax years 2020, 2021 and 2022 remain open for potential audit.
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic earnings per share (EPS) are computed by dividing the net loss applicable to common stock by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss applicable to common stock by the weighted average number of common shares outstanding for the period and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise or conversion of stock options, stock warrants, convertible debt instruments, convertible preferred stock or other common stock equivalents. Potentially dilutive securities are excluded from the computation if their effect is anti-dilutive. At December 31, 2023, there were (i) an aggregate of 44,644 1,387,775 433,000 3,833,334 0 At December 31, 2022, there was an aggregate of 147,591 926,266 433,000
Leases	Leases The Company follows ASC 842 “Leases”. This guidance requires lessees to recognize right-of-use (“ROU”) assets and lease liabilities for most operating leases. In addition, this guidance requires that lessors separate lease and non-lease components in a contract in accordance with the revenue guidance in ASC 606. The Company made an accounting policy election to not recognize short-term leases with terms of twelve months or less on the balance sheet and instead recognize the lease payments in expense as incurred. The Company has also elected to account for real estate leases that contain both lease and non-lease components as a single lease component. At the inception of a contract the Company assesses whether the contract is, or contains, a lease. The Company’s assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether we have the right to direct the use of the asset. Operating ROU assets represent the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the lease commencement date to determine the present value of future payments. The lease term includes all periods covered by renewal and termination options where the Company is reasonably certain to exercise the renewal options or not to exercise the termination options. Operating lease expense is recognized on a straight-line basis over the lease term and is included in general and administration expenses in the consolidated statements of operations.
Recent Accounting Pronouncements	Recent Accounting Pronouncements From time to time, the FASB or other standards setting bodies will issue new accounting pronouncements. Updates to the FASB ASC are communicated through issuance of an Accounting Standards Update (“ASU”). In August 2020, the FASB issued an accounting pronouncement (ASU 2020-06) related to the measurement and disclosure requirements for convertible instruments and contracts in an entity's own equity. The pronouncement simplifies and adds disclosure requirements for the accounting and measurement of convertible instruments and the settlement assessment for contracts in an entity's own equity. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2023. The Company early adopted this pronouncement for our fiscal year beginning January 1, 2022, and it did not have a material effect on our audited consolidated financial statements. In May 2021, the FASB issued an accounting pronouncement (ASU 2021-04) related to modifications or exchanges of freestanding equity-classified written call options (such as warrants) that remain equity classified after modification or exchange. The pronouncement states that an entity should treat the modification as an exchange of the original instrument for a new instrument, and the effect of the modification should be calculated as the difference between the fair value of the modified instrument and the fair value of that instrument immediately before modification. An entity should then recognize the effect of the modification on the basis of the substance of the transaction, in the same manner as if cash had been paid as consideration. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021. The pronouncement is applied prospectively to all modifications that occur after the initial date of adoption. We adopted this pronouncement for our fiscal year beginning January 1, 2022, and it did not have a material effect on our audited consolidated financial statements. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2023
Receivables [Abstract]
Schedule of accounts receivable	Schedule of accounts receivable December 31, December 31, 2023 2022 Accounts receivable $ 1,462,463 $ 3,418,263 Allowance for doubtful accounts — — Accounts Receivable, Net $ 1,462,463 $ 3,418,263

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Schedule of property and equipment	Schedule of property and equipment December 31, December 31, 2023 2022 Furniture & Fixtures $ 132,018 $ 115,238 Tools and Equipment 1,291,673 1,162,568 Leasehold Improvements 298,004 228,404 Internal Use Software 381,441 100,241 Property, Plant and Equipment, Gross 2,103,136 1,606,451 Accumulated Depreciation (1,376,629 ) (976,961 ) Property, Equipment and Software, net $ 726,507 $ 629,490 December 31, December 31, 2023 2022 Internal Use Software consisted of the following: Internal Use Software $ 381,441 $ 100,241 Accumulated depreciation (133,149 ) (57,032 ) Internal Use Software, net $ 248,292 $ 43,209 December 31, December 31, 2023 2022 Depreciation Expense: Property and equipment, excluding internal use software $ 315,686 $ 262,895 Software amortization expense 84,328 57,033
Property, Plant and Equipment, Other Types [Member]
Property, Plant and Equipment [Line Items]
Schedule of estimated future depreciation expense of software	Schedule of estimated future depreciation expense of software 2024 $ 100,952 2025 103,716 2026 43,624 $ 248,292

PATENTS AND TRADEMARKS (Tables)

PATENTS AND TRADEMARKS (Tables)	12 Months Ended
	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of patents and trademarks	Schedule of patents and trademarks December 31, December 31, 2023 2022 Patents $ 395,472 $ 326,145 Accumulated Amortization (266,332 ) (256,412 ) Patent, net $ 129,140 $ 69,733

SOFTWARE DEVELOPMENT COSTS (Tab

SOFTWARE DEVELOPMENT COSTS (Tables)	12 Months Ended
	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Schedule of software development costs	Schedule of software development costs December 31, December 31, 2023 2022 Software Development $ 721,309 $ 341,784 Construction in Progress 148,371 — Accumulated amortization (216,842 ) (76,576 ) Software Development, net $ 652,838 $ 265,208
Software and Software Development Costs [Member]
Property, Plant and Equipment [Line Items]
Schedule of estimated future amortization expense of software	Schedule of estimated future amortization expense of software 2024 $ 269,893 2025 252,341 2026 130,604 $ 652,838

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
Schedule of notes payable	Schedule of notes payable December 31, 2023 December 31, 2022 Notes Payable Principal Interest Principal Interest Third Party - Insurance Note 1 $ — — $ — — % Third Party - Insurance Note 2 39,968 8.00 % 17,753 6.24 % Third Party - Insurance Note 3 2,008 — 16,094 — Third Party - Insurance Note 4 — — 40,728 — Total $ 41,976 $ 74,575

REVENUES AND CONTRACT ACCOUNT_2

REVENUES AND CONTRACT ACCOUNTING (Tables)	12 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of contract assets on uncompleted contracts	Schedule of contract assets on uncompleted contracts 2023 2022 Cumulative revenues recognized $ 8,820,256 $ 5,934,205 Less: Billings or cash received (8,178,309 ) (5,508,483 ) Contract Assets $ 641,947 $ 425,722
Schedule of contract liabilities on uncompleted contracts	Schedule of contract liabilities on uncompleted contracts 2023 2022 Billings and/or cash receipts on uncompleted contracts $ 1,264,658 $ 4,355,470 Less: Cumulative revenues (199,976 ) (4,144,018 ) Contract liabilities, technology systems $ 1,064,682 $ 211,452 Contract Liabilities, services and consulting 601,561 746,545 Total Contract Liabilities $ 1,666,243 $ 957,997
Schedule of disaggregation of revenue	Schedule of disaggregation of revenue Segments Rail Commercial Government Artificial Total Primary Geographical Markets North America $ 6,261,748 $ 78,575 $ 11,353 $ 1,119,522 $7,471,198 Major Goods and Service Lines Turnkey Projects $ 3,616,334 $ 1,694 $ — $ — $3,618,028 Maintenance & Support 2,645,414 76,881 11,353 — 2,733,648 Data Center Auditing Services — — — — — Software License — — — — — Algorithms — — — 1,119,522 1,119,522 $ 6,261,748 $ 78,575 $ 11,353 $ 1,119,522 $7,471,198 Timing of Revenue Recognition Goods transferred over time $ 3,616,334 $ 1,694 $ — $ — $3,218,028 Services transferred over time 2,645,414 76,881 11,353 1,119,522 3,853,170 $ 6,261,748 $ 78,575 $ 11,353 $ 1,119,522 $7,471,198 Quantitative: For the Year Ended December 31, 2022 Segments Rail Commercial Government Artificial Total Primary Geographical Markets North America $ 13,710,777 $ 115,443 $ 237,414 $ 948,732 $ 15,012,366 Major Goods and Service Lines Turnkey Projects $ 10,789,693 $ 9,297 $ 156,530 $ 234,772 $ 11,190,292 Maintenance & Support 2,921,084 106,146 80,884 — 3,108,114 Data Center Auditing Services — — — — — Software License — — — — — Algorithms — — — 713,960 713,960 $ 13,710,777 $ 115,443 $ 237,414 $ 948,732 $ 15,012,366 Timing of Revenue Recognition Goods transferred over time $ 10,789,693 $ 9,297 $ 156,530 $ 234,772 $ 11,190,292 Services transferred over time 2,921,084 106,146 80,884 713,960 3,822,074 $ 13,710,777 $ 115,443 $ 237,414 $ 948,732 $ 15,012,366

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of supplemental information related to leases	Schedule of supplemental information related to leases Year Ended December 31, 2023 2022 Lease cost: Operating lease cost $ 781,638 $ 782,591 Short-term lease cost $ 63,770 $ 33,751 Other information: Operating cash outflow used for operating leases $ 696,869 $ 416,250 Weighted average discount rate 9.0 % 9.0 % Weighted average remaining lease term 8.5 9.5
Schedule of future minimum lease payments due under the operating lease	Schedule of future minimum lease payments due under the operating lease Amount Calendar year: 2024 $ 779,087 2025 798,556 2026 818,518 2027 838,984 2028 859,856 Thereafter 3,183,571 Total undiscounted future minimum lease payments 7,278,572 Less: Impact of discounting (2,270,767 ) Total present value of operating lease obligation 5,007,805 Current portion (779,087 ) Operating lease obligation, less current portion $ 4,228,718

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Schedule of difference between income taxes at effective statutory rate and provision for income taxes	Schedule of difference between income taxes at effective statutory rate and provision for income taxes Years Ended December 31, 2023 2022 Income tax benefit at U.S. statutory rate of 21% $ (2,360,761 ) $ (1,441,624 ) State income taxes (404,702 ) (247,135 ) Non-deductible expenses 271,648 201,521 Change in valuation allowance 2,493,815 1,487,238 Total provision for income tax $ — $ —
Schedule of net deferred tax assets	Schedule of net deferred tax assets December 31, 2023 2022 Deferred Tax Asset (Liability): Net operating loss carryforward $ 12,318,836 $ 9,772,854 Intangible assets (84,823 ) (32,656 ) 12,234,013 9,740,198 Valuation allowance (12,234,013 ) (9,740,198 ) Net deferred tax assets $ — $ —

COMMON STOCK OPTIONS AND WARR_2

COMMON STOCK OPTIONS AND WARRANTS (Tables)	12 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of options activity	Schedule of options activity Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (Years) Value Outstanding at December 31, 2021 431,266 $ 4.98 3.4 $ 197,506 Granted 685,000 $ 6.41 4.0 — Forfeited (190,000 ) $ 6.41 — — Outstanding at December 31, 2022 926,266 $ 5.74 3.3 — Exercisable at December 31, 2022 404,599 $ 5.02 3.3 — Outstanding at December 31, 2022 926,266 $ 5.74 3.3 — Granted 463,117 $ 4.22 4.35 — Exercised/Forfeited (1,608 ) $ 14.00 — — Outstanding at December 31, 2023 1,387,775 $ 5.23 3.0 $ — Exercisable at December 31, 2023 581,324 $ 5.38 1.8 —
Schedule of weighted- average assumptions	Schedule of weighted- average assumptions For the Years Ended 2023 2022 Risk free interest rate 3.73 0.97% 3.15 Expected term in years 3.50 3.25 3.50 Dividend yield — — Volatility of common stock 54% 118 72% 80 Weighted average grant date fair value per option $1.57 $ 2.33
Schedule of warrants outstanding	Schedule of warrants outstanding Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Warrants Price Term (Years) Value Outstanding at December 31, 2021 1,376,466 $ 8.18 1.9 — Warrants expired, forfeited, cancelled or exercised (1,228,875 ) $ — — — Warrants issued — $ — — — Outstanding at December 31, 2022 80,091 $ 8.63 0.98 — Exercisable at December 31, 2022 80,091 $ 8.63 0.8 — Outstanding at December 31, 2022 80,091 $ 8.63 0.8 — Warrants expired, forfeited, cancelled or exercised (102,947 ) $ — — — Warrants issued — $ — — — Outstanding at December 31, 2023 44,644 $ 7.70 0.7 — Exercisable at December 31, 2023 44,644 $ 7.70 0.7 —

SALE OF ASSETS (Tables)

SALE OF ASSETS (Tables)	12 Months Ended
	Dec. 31, 2023
Sale Of Assets
Schedule of note receivable	Schedule of note receivable December 31, 2023 Convertible note receivable $ 165,000 Unamortized discount (11,250 ) Convertible note receivable, net $ 153,750

NATURE OF OPERATIONS AND SUMM_3

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Product Information [Line Items]
Federally insured limits	$ 1,948,794
Product warranty Period	90 days
Advertising costs	$ 0	$ 0
Outstanding warrants		147,591
Share-Based Payment Arrangement, Option [Member]
Product Information [Line Items]
Number of incentive stock options	1,387,775	926,266
Common Stock [Member]
Product Information [Line Items]
Outstanding warrants	44,644
Series D Convertible Preferred Stock [Member]
Product Information [Line Items]
Common shares issuable conversion	433,000	433,000
Series E Convertible Preferred Stock [Member]
Product Information [Line Items]
Common shares issuable conversion	3,833,334
Series F Convertible Preferred Stock [Member]
Product Information [Line Items]
Common shares issuable conversion	0
Patents And Trademarks [Member]
Product Information [Line Items]
Estimated economic life of the property and equipment	17 years
Minimum [Member]
Product Information [Line Items]
Estimated economic life of the property and equipment	3 years
Product warranty Period	12 months
Maximum [Member]
Product Information [Line Items]
Estimated economic life of the property and equipment	5 years
Product warranty Period	36 months
Customer 1 [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk, percentage	48%	42%
Customer 1 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk, percentage	83%	34%
Customer 2 [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk, percentage	30%	18%
Customer 2 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk, percentage	11%	31%
Customer 3 [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk, percentage	11%	14%
Customer 3 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk, percentage		19%
Customer 4 [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk, percentage		14%
Customer 4 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk, percentage		10%
Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk, percentage	30%
Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | UNITED STATES
Product Information [Line Items]
Concentration risk, percentage	44%	41%

LIQUIDITY (Details Narrative)

LIQUIDITY (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ 11,241,718
Working capital surplus	3,009,842
Accumulated deficit	$ 63,603,552	$ 52,361,834

ACCOUNTS RECEIVABLE (Details- A

ACCOUNTS RECEIVABLE (Details- Accounts receivable) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Receivables [Abstract]
Accounts receivable	$ 1,462,463	$ 3,418,263
Allowance for doubtful accounts
Accounts Receivable, Net	$ 1,462,463	$ 3,418,263

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details - Major classes of property and equipment) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 2,103,136	$ 1,606,451
Accumulated Depreciation	(1,376,629)	(976,961)
Property, Equipment and Software, net	726,507	629,490
Depreciation Expense	315,686	267,959
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	132,018	115,238
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,291,673	1,162,568
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	298,004	228,404
Software Development [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	381,441	100,241
Accumulated Depreciation	(133,149)	(57,032)
Property, Equipment and Software, net	248,292	43,209
Depreciation Expense	84,328	57,033
Property, Plant and Equipment, Other Types [Member]
Property, Plant and Equipment [Line Items]
Depreciation Expense	$ 315,686	$ 262,895

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details - Estimated future depreciation expense of software) - Property, Plant and Equipment, Other Types [Member]	Dec. 31, 2023 USD ($)
Property, Plant and Equipment [Line Items]
2024	$ 100,952
2025	103,716
2026	43,624
Finite lived intangible assets	$ 248,292

PROPERTY AND EQUIPMENT (Detai_3

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 315,686	$ 267,959

PATENTS AND TRADEMARKS (Details

PATENTS AND TRADEMARKS (Details - Patents and trademarks) - Patents [Member] - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Patents	$ 395,472	$ 326,145
Accumulated Amortization	(266,332)	(256,412)
Patent, net	$ 129,140	$ 69,733

PATENTS AND TRADEMARKS (Detai_2

PATENTS AND TRADEMARKS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 9,920	$ 13,688

SOFTWARE AND SOFTWARE DEVELOPME

SOFTWARE AND SOFTWARE DEVELOPMENT COSTS (Details - Software development costs) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Research and Development [Abstract]
Software Development	$ 721,309	$ 341,784
Construction in Progress	148,371
Accumulated amortization	(216,842)	(76,576)
Software Development, net	$ 652,838	$ 265,208

SOFTWARE AND SOFTWARE DEVELOP_2

SOFTWARE AND SOFTWARE DEVELOPMENT COSTS (Details - Estimated future amortization) - Software and Software Development Costs [Member]	Dec. 31, 2023 USD ($)
Property, Plant and Equipment [Line Items]
2024	$ 269,893
2025	252,341
2026	130,604
Finite lived intangible assets	$ 652,838

SOFTWARE DEVELOPMENT COSTS (Det

SOFTWARE DEVELOPMENT COSTS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Research and Development [Abstract]
Amortization of software development costs	$ 140,267	$ 16,576
Depreciation of software cost	$ 84,328	$ 57,033

DEBT (Details - Notes payable -

DEBT (Details - Notes payable - financing agreements) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Notes payable, Principal	$ 41,976	$ 74,575
Third Party Insurance Note One [Member]
Short-Term Debt [Line Items]
Notes payable, Principal
Third Party Insurance Note Two [Member]
Short-Term Debt [Line Items]
Notes payable, Principal	$ 39,968	$ 17,753
Notes payable, Interest	8%	6.24%
Third Party Insurance Note Three [Member]
Short-Term Debt [Line Items]
Notes payable, Principal	$ 2,008	$ 16,094
Third Party Insurance Note Four [Member]
Short-Term Debt [Line Items]
Notes payable, Principal		$ 40,728

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($)							3 Months Ended	36 Months Ended
	Apr. 15, 2023	Feb. 03, 2023	Dec. 23, 2022	Sep. 30, 2022	Apr. 15, 2022	Feb. 03, 2022	Mar. 31, 2022	Jun. 01, 2023	Dec. 31, 2023	Dec. 31, 2022	Sep. 15, 2022	May 22, 2020
Short-Term Debt [Line Items]
Purchase of an insurance policy						$ 242,591
Down payment paid							$ 41,854
Insurance monthly installments							$ 20,073
Received refund				$ 53,175
Third Party Insurance Note One [Member]
Short-Term Debt [Line Items]
Notes payable outstanding balance			$ 26,484						$ 0	$ 0
Interest rate			8.73%
Monthly installments of principal and interest			$ 2,755
Third Party Insurance Note Two [Member]
Short-Term Debt [Line Items]
Notes payable outstanding balance	$ 142,734				$ 63,766				39,968	17,753
Interest rate	8%				6.24%
Monthly installments of principal and interest	$ 13,501				$ 5,979
Third Party Insurance Note Three [Member]
Short-Term Debt [Line Items]
Notes payable outstanding balance									2,008	16,094	$ 24,140
Monthly installments of principal and interest		$ 2,012
Third Party Insurance Note Four [Member]
Short-Term Debt [Line Items]
Notes payable outstanding balance		293,520							0	40,728
Monthly installments of principal and interest		23,976
Down payment paid		$ 125,690
Equipment Financing [Member]
Short-Term Debt [Line Items]
Notes payable outstanding balance									$ 0	$ 22,851		$ 121,637
Interest rate												9.90%
Monthly installments of principal and interest								$ 3,919

REVENUES AND CONTRACT ACCOUNT_3

REVENUES AND CONTRACT ACCOUNTING (Details - Contract assets) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Cumulative revenues recognized	$ 8,820,256	$ 5,934,205
Less: Billings or cash received	(8,178,309)	(5,508,483)
Contract Assets	$ 641,947	$ 425,722

REVENUES AND CONTRACT ACCOUNT_4

REVENUES AND CONTRACT ACCOUNTING (Details - Contract liabilities) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Billings and/or cash receipts on uncompleted contracts	$ 1,264,658	$ 4,355,470
Less: Cumulative revenues	(199,976)	(4,144,018)
Contract liabilities, technology systems	1,064,682	211,452
Contract Liabilities, services and consulting	601,561	746,545
Total Contract Liabilities	$ 1,666,243	$ 957,997

REVENUES AND CONTRACT ACCOUNT_5

REVENUES AND CONTRACT ACCOUNTING (Details -Disaggregated revenue) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 7,471,198	$ 15,012,366
Goods Transferred Over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue	3,218,028	11,190,292
Services Transferred Over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue	3,853,170	3,822,074
Turnkey Projects [Member]
Disaggregation of Revenue [Line Items]
Revenue	3,618,028	11,190,292
Maintenance And Support [Member]
Disaggregation of Revenue [Line Items]
Revenue	2,733,648	3,108,114
Data Center Auditing Services [Member]
Disaggregation of Revenue [Line Items]
Revenue
Software License [Member]
Disaggregation of Revenue [Line Items]
Revenue
Algorithms [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,119,522	713,960
Rail [Member]
Disaggregation of Revenue [Line Items]
Revenue	6,261,748	13,710,777
Rail [Member] | Goods Transferred Over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue	3,616,334	10,789,693
Rail [Member] | Services Transferred Over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue	2,645,414	2,921,084
Rail [Member] | Turnkey Projects [Member]
Disaggregation of Revenue [Line Items]
Revenue	3,616,334	10,789,693
Rail [Member] | Maintenance And Support [Member]
Disaggregation of Revenue [Line Items]
Revenue	2,645,414	2,921,084
Rail [Member] | Data Center Auditing Services [Member]
Disaggregation of Revenue [Line Items]
Revenue
Rail [Member] | Software License [Member]
Disaggregation of Revenue [Line Items]
Revenue
Rail [Member] | Algorithms [Member]
Disaggregation of Revenue [Line Items]
Revenue
Commercial [Member]
Disaggregation of Revenue [Line Items]
Revenue	78,575	115,443
Commercial [Member] | Goods Transferred Over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,694	9,297
Commercial [Member] | Services Transferred Over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue	76,881	106,146
Commercial [Member] | Turnkey Projects [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,694	9,297
Commercial [Member] | Maintenance And Support [Member]
Disaggregation of Revenue [Line Items]
Revenue	76,881	106,146
Commercial [Member] | Data Center Auditing Services [Member]
Disaggregation of Revenue [Line Items]
Revenue
Commercial [Member] | Software License [Member]
Disaggregation of Revenue [Line Items]
Revenue
Commercial [Member] | Algorithms [Member]
Disaggregation of Revenue [Line Items]
Revenue
Governments [Member]
Disaggregation of Revenue [Line Items]
Revenue	11,353	237,414
Governments [Member] | Goods Transferred Over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue		156,530
Governments [Member] | Services Transferred Over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue	11,353	80,884
Governments [Member] | Turnkey Projects [Member]
Disaggregation of Revenue [Line Items]
Revenue		156,530
Governments [Member] | Maintenance And Support [Member]
Disaggregation of Revenue [Line Items]
Revenue	11,353	80,884
Governments [Member] | Data Center Auditing Services [Member]
Disaggregation of Revenue [Line Items]
Revenue
Governments [Member] | Software License [Member]
Disaggregation of Revenue [Line Items]
Revenue
Governments [Member] | Algorithms [Member]
Disaggregation of Revenue [Line Items]
Revenue
Artificial Intelligence [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,119,522	948,732
Artificial Intelligence [Member] | Goods Transferred Over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue		234,772
Artificial Intelligence [Member] | Services Transferred Over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,119,522	713,960
Artificial Intelligence [Member] | Turnkey Projects [Member]
Disaggregation of Revenue [Line Items]
Revenue		234,772
Artificial Intelligence [Member] | Maintenance And Support [Member]
Disaggregation of Revenue [Line Items]
Revenue
Artificial Intelligence [Member] | Data Center Auditing Services [Member]
Disaggregation of Revenue [Line Items]
Revenue
Artificial Intelligence [Member] | Software License [Member]
Disaggregation of Revenue [Line Items]
Revenue
Artificial Intelligence [Member] | Algorithms [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,119,522	713,960
North America [Member]
Disaggregation of Revenue [Line Items]
Revenue	7,471,198	15,012,366
North America [Member] | Rail [Member]
Disaggregation of Revenue [Line Items]
Revenue	6,261,748	13,710,777
North America [Member] | Commercial [Member]
Disaggregation of Revenue [Line Items]
Revenue	78,575	115,443
North America [Member] | Governments [Member]
Disaggregation of Revenue [Line Items]
Revenue	11,353	237,414
North America [Member] | Artificial Intelligence [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 1,119,522	$ 948,732

REVENUES AND CONTRACT ACCOUNT_6

REVENUES AND CONTRACT ACCOUNTING (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Contract liabilities	$ 1,666,243	$ 957,997
Contract liabilities, technology systems	$ 1,064,682	211,452
Services and consulting recognized		$ 721,810

DEFERRED COMPENSATION (Details

DEFERRED COMPENSATION (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Compensation Related Costs [Abstract]
Accrued deferred compensation	$ 0	$ 297,620

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details - Supplemental information related to leases) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Operating lease cost	$ 781,638	$ 782,591
Short term lease Cost	63,770	33,751
Operating cash outflow used for operating leases	$ 696,869	$ 416,250
Weighted average discount rate	9%	9%
Weighted average remaining lease term	8 years 6 months	9 years 6 months

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details - Future minimum lease payments) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
2024	$ 779,087
2025	798,556
2026	818,518
2027	838,984
2028	859,856
Thereafter	3,183,571
Total undiscounted future minimum lease payments	7,278,572
Less: Impact of discounting	(2,270,767)
Total present value of operating lease obligation	5,007,805
Current portion	(779,087)	$ (696,869)
Operating lease obligation, less current portion	$ 4,228,718	$ 4,542,943

COMMITMENTS AND CONTINGENCIES_4

COMMITMENTS AND CONTINGENCIES (Details Narrative)	Jul. 26, 2021 USD ($) ft²	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Area of lease | ft²	40,000
Accumulated amortization	$ 4,980,104	$ 4,373,155	$ 4,689,931
Rentable space | ft²	30,000
Security deposit payment	$ 600,000
Security deposit value	$ 50,000	$ 550,000	$ 600,000

INCOME TAXES (Details - Provisi

INCOME TAXES (Details - Provision for income taxes) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income tax benefit at U.S. statutory rate of 21%	$ (2,360,761)	$ (1,441,624)
State income taxes	(404,702)	(247,135)
Non-deductible expenses	271,648	201,521
Change in valuation allowance	2,493,815	1,487,238
Total provision for income tax

INCOME TAXES (Details - Deferre

INCOME TAXES (Details - Deferred tax assets) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Net operating loss carryforward	$ 12,318,836	$ 9,772,854
Intangible assets	(84,823)	(32,656)
Gross deferred tax assets	12,234,013	9,740,198
Valuation allowance	(12,234,013)	(9,740,198)
Net deferred tax assets

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Gross operating loss carry forward	$ 50,076,569	$ 39,727,050
Increase in valuation allowance	2,493,815
Net operating loss carryforward	4,357,876
Potential tax benefit arising from net operating loss carryforward	$ 7,876,137

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)											1 Months Ended	3 Months Ended							6 Months Ended			12 Months Ended
	Nov. 09, 2023	Aug. 02, 2023	Mar. 27, 2023	Oct. 29, 2022	Aug. 25, 2022	Feb. 21, 2022	Feb. 03, 2022	Jan. 11, 2022	May 12, 2021	Feb. 26, 2021	Jan. 31, 2022	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 29, 2023	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2018	Nov. 10, 2023	Sep. 29, 2023	Sep. 28, 2022	Dec. 31, 2017
Class of Stock [Line Items]
Shares available for grant												1,000,000							1,000,000			1,000,000
Preferred stock, shares authorized												10,000,000							10,000,000			10,000,000	10,000,000
Preferred stock, par value												$ 0.001							$ 0.001			$ 0.001	$ 0.001
Conversion price												$ 0.003							$ 0.003			$ 0.003
Proceeds from convertible preferred stock		$ 5,000,000
Share price						$ 4	$ 4
Series F preferred convertible preferred stock, Shares		5,000
Stock issued for services , value																						$ 143,065	$ 157,500
Conversion of shares								710
Conversion price								$ 5.50
Number of shares issued, shares						198,750	1,325,000
Number of shares issued, value						$ 795,000	$ 5,300,000
Proceeds from offering cost						739,350	$ 4,779,000
Aggregate common stock						$ 50,000,000
Converted to common stock shares					121,572
Accrued offering costs																$ 260,816
Offering costs				$ 105,460												$ 257,240
Total compensation cost for stock options												$ 580,572							$ 580,572			$ 580,572
Treasury stock shares												1,324							1,324			1,324	1,324					235
Treasury stock												$ 157,452							$ 157,452			$ 157,452	$ 157,452					$ 148,000
Shareholders One [Member]
Class of Stock [Line Items]
Repurchase of common stock																						$ 115		$ 84
Market value of stock repurchased																						$ 10.08		$ 7
Shareholders Two [Member]
Class of Stock [Line Items]
Repurchase of common stock																							$ 753	$ 140
Market value of stock repurchased																							$ 9.09	$ 6.30
Minimum [Member]
Class of Stock [Line Items]
Vesting term																						12 months
Maximum [Member]
Class of Stock [Line Items]
Vesting term																						2 years
Private Placement [Member]
Class of Stock [Line Items]
Services per share				$ 3												$ 3
Private placement sold				83,667												818,335
Share-Based Payment Arrangement, Option [Member]
Class of Stock [Line Items]
Share price														$ 1.79						$ 2.47	$ 1.79
Stock issued for services , shares																				45,977	65,561
Total employee participation amount																				$ 113,352	$ 117,048
Stock-based compensation expense																				$ 70,434	$ 66,217
E S P P [Member]
Class of Stock [Line Items]
Accrued liability													$ 72,801
Common Stock [Member]
Class of Stock [Line Items]
Stock issued for services , shares																						38,249	43,959
Stock issued for services , value																						$ 38	$ 43
Number of shares issued																							2,425,752
Three Directors [Member] | Common Stock [Member]
Class of Stock [Line Items]
Stock issued for services , shares														5,645	12,463
Stock issued for services , value														$ 32,500	$ 32,500
Weighted average price per share														$ 5.76	$ 2.61						$ 5.76
Four Directors [Member] | Common Stock [Member]
Class of Stock [Line Items]
Stock issued for services , shares												12,231	7,910
Stock issued for services , value												$ 37,500	$ 40,565
Weighted average price per share												$ 3.06							$ 3.06			$ 3.06				$ 5.13
Director [Member]
Class of Stock [Line Items]
Stock issued for services , shares												16,335				9,758	10,668	7,198
Stock issued for services , value												$ 37,500				$ 40,000	$ 40,000	$ 40,000
Services per share												$ 2.30		3.75	$ 5.56				$ 2.30		3.75	$ 2.30
Employees And Directors [Member]
Class of Stock [Line Items]
Stock-based compensation expense																						$ 573,441	$ 819,191
Purchase Agreement [Member]
Class of Stock [Line Items]
Proceeds from convertible preferred stock										$ 4,500,000
Convertible Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized												15,000							15,000			15,000	15,000
Preferred stock, par value												$ 1,000							$ 1,000			$ 1,000	$ 1,000
Preferred stock, shares issued												0							0			0	0
Preferred stock, shares outstanding												0							0			0	0
Converted to common stock shares					851
Series B Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Conversion of stock, value																						$ 1,000
Conversion price												$ 7							$ 7			$ 7
Convertible Series C Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized												5,000							5,000			5,000	5,000
Preferred stock, par value												$ 1,000							$ 1,000			$ 1,000	$ 1,000
Preferred stock, shares issued												0							0			0	0
Preferred stock, shares outstanding												0							0			0	0
Preferred stock voting rights																						Each share of Series C Convertible Preferred Stock had 172 votes (subject to adjustment); provided that in no event may a holder of Series C Convertible Preferred Stock be entitled to vote a number of shares in excess of such holder’s Beneficial Ownership Limitation (as defined in the Certificate of Designation and as described below). Each share of Series C Convertible Preferred Stock was convertible, at any time and from time to time, at the option of the holder, into that number of shares of common stock (subject to the Beneficial Ownership Limitation) determined by dividing the stated value of such share ($1,000) by the conversion price, which is $5.50 (subject to adjustment). The Company shall not effect any conversion of the Series C Convertible Preferred Stock, and a holder shall not have the right to convert any portion of the Series C Convertible Preferred Stock, to the extent that after giving effect to the conversion sought by the holder such holder (together with such holder’s Attribution Parties (as defined in the Certificate of Designation)) would beneficially own more than 4.99% (or upon election by a holder, 19.99%) of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock issuable upon such conversion (the “Beneficial Ownership Limitation”). All holders of the Series C Preferred Stock elected the 19.99% Beneficial Ownership Limitation.
Series C preferred converted to common stock shares											454,546
Conversion of shares								1,790
Convertible Series D Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized												4,000							4,000			4,000	4,000				4,000
Preferred stock, par value												$ 1,000							$ 1,000			$ 1,000	$ 1,000				$ 1,000
Preferred stock, shares issued												1,299							1,299			1,299	1,299
Preferred stock, shares outstanding												1,299							1,299			1,299	1,299
Preferred stock voting rights																						Each share of Series D Convertible Preferred Stock has 333 votes
Conversion price												$ 3							$ 3			$ 3
Series D Convertible Preferred Stock [Member] | Purchase Agreement [Member]
Class of Stock [Line Items]
Preferred stock, shares issued																999
Proceeds from convertible preferred stock																$ 999,000
Series D Convertible Preferred Stock [Member] | Private Placement [Member]
Class of Stock [Line Items]
Preferred stock, shares issued				300
Proceeds from convertible preferred stock				$ 300,000
Convertible Series E Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized												30,000							30,000			30,000	30,000
Preferred stock, par value	$ 1,000		$ 1,000									$ 1,000							$ 1,000			$ 1,000	$ 1,000
Preferred stock, shares issued			4,000									11,500							11,500			11,500	0
Preferred stock, shares outstanding												11,500							11,500			11,500	0
Preferred stock voting rights																						Each share of Series E Preferred Stock has 333 votes
Proceeds from convertible preferred stock	$ 2,500,000
Series E preferred convertible preferred stock, Shares	2,500
Additional shares																									7,500
Series E Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued												11,500							11,500			11,500	0
Preferred stock, shares outstanding												11,500							11,500			11,500	0
Conversion price																									$ 3
Additional shares	5,000																								2,500
Share price	$ 1,000
Price per common share	3
Exchange of shares																									5,000
Series E Convertible Preferred Stock [Member] | Purchase Agreement [Member]
Class of Stock [Line Items]
Proceeds from convertible preferred stock			$ 4,000,000
Series F Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Price per common share	$ 6.20
Exchange of shares	5,000																								5,000
Shares outstanding																									0
Convertible Series F Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized												5,000							5,000			5,000	5,000
Preferred stock, par value												$ 1,000							$ 1,000			$ 1,000	$ 1,000		$ 6.20
Preferred stock, shares issued												0							0			0	0
Preferred stock, shares outstanding												0							0			0	0
Preferred stock voting rights																						Each share of Series F Preferred Stock had 161 votes
Conversion price												$ 6.20							$ 6.20			$ 6.20
Additional shares																									5,000
Series D Preferred Stock [Member]
Class of Stock [Line Items]
Share price				$ 1,000												$ 1,000
Number of shares issued				300												999
Gross proceeds private placement				$ 551,001												$ 3,454,003
Share-Based Payment Arrangement, Option [Member]
Class of Stock [Line Items]
Common stock on the date of grant, term of the stock option																						not exceed 10 years
Voting rights																						more than 10% of the total combined voting power of all classes of capital stock
Aggregate fair market value of common stock																						$ 100,000
Two Thousand Twenty One Equity Incentive Plan [Member]
Class of Stock [Line Items]
Issuance of Common stock under Awards									1,000,000
Employee Stock Purchase Plan [Member]
Class of Stock [Line Items]
Plan, term												10 years
Plan, description												The ESPP allows eligible employees to purchase shares of the Company's common stock at a discounted price, through payroll deductions from a minimum of 1% and up to 25% of their eligible compensation up to a maximum of $25,000 or the IRS allowable limit per calendar year.
Maximum aggregate number of shares of common stock												1,000,000							1,000,000			1,000,000
Issued shares																						111,538
Employee Stock Purchase Plan [Member] | Share-Based Payment Arrangement, Tranche One [Member]
Class of Stock [Line Items]
Share price														$ 1.79							$ 1.79
Issued shares																						65,561
Employee contributions																					$ 117,048
Employee Stock Purchase Plan [Member] | Share-Based Payment Arrangement, Tranche Two [Member]
Class of Stock [Line Items]
Share price												$ 2.47							$ 2.47			$ 2.47
Issued shares																			45,977
Employee contributions																			$ 113,352

COMMON STOCK OPTIONS AND WARR_3

COMMON STOCK OPTIONS AND WARRANTS (Details - Options activity) - Share-Based Payment Arrangement, Option [Member] - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares outstanding at beginning	926,266	431,266
Weighted average exercise price outstanding at beginning	$ 5.74	$ 4.98
Weighted average remaining contractual term (years) outstanding	3 years	3 years 3 months 18 days	3 years 4 months 24 days
Aggregate intrinsic value outstanding at beginning		$ 197,506
Shares, granted	463,117	685,000
Weighted average exercise price, granted	$ 4.22	$ 6.41
Weighted average remaining contractual term (years), granted	4 years 4 months 6 days	4 years
Shares, forfeited		(190,000)
Weighted average exercise price, forfeited		$ 6.41
Shares outstanding at end	1,387,775	926,266	431,266
Weighted average exercise price outstanding at end	$ 5.23	$ 5.74	$ 4.98
Aggregate intrinsic value outstanding at end			$ 197,506
Shares, exercisable	581,324	404,599
Weighted average exercise price, exercisable	$ 5.38	$ 5.02
Weighted average remaining contractual term (years) exercisable	1 year 9 months 18 days	3 years 3 months 18 days
Aggregate intrinsic value exercisable
Shares, exercised/forfeited	(1,608)
Weighted average exercise price, exercised/forfeited	$ 14

COMMON STOCK OPTIONS AND WARR_4

COMMON STOCK OPTIONS AND WARRANTS (Details - Fair value assumptions) - Share-Based Payment Arrangement, Option [Member] - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected term in years	3 years 6 months
Dividend yield
Weighted average grant date fair value per option	$ 1.57	$ 2.33
Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk free interest rate		0.97%
Expected term in years		3 years 3 months
Volatility of common stock	54%	72%
Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk free interest rate	3.73%	3.15%
Expected term in years		3 years 6 months
Volatility of common stock	118%	80%

COMMON STOCK OPTIONS AND WARR_5

COMMON STOCK OPTIONS AND WARRANTS (Details - Activity of warrants) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Number of warrants outstanding at beginning	147,591
Number of warrants outstanding at end		147,591
Warrant [Member]
Number of warrants outstanding at beginning	80,091	1,376,466
Weighted average exercise price outstanding at beginning	$ 8.63	$ 8.18
Weighted average remaining contractual term (years)	8 months 12 days	11 months 23 days	1 year 10 months 24 days
Aggregate intrinsic value outstanding at beginning
Warrants expired, forfeited, cancelled or exercised	(102,947)	(1,228,875)
Weighted average exercise price, warrants expired, forfeited, cancelled or exercised
Warrants issued
Weighted average exercise price, warrants issued
Number of warrants outstanding at end	44,644	80,091	1,376,466
Weighted average exercise price outstanding at end	$ 7.70	$ 8.63	$ 8.18
Aggregate intrinsic value outstanding at end
Number of warrants, exercisable	44,644	80,091
Weighted average exercise price, exercisable	$ 7.70	$ 8.63
Weighted average remaining contractual term (years), exercisable	8 months 12 days	9 months 18 days
Aggregate intrinsic value, exercisable

COMMON STOCK OPTIONS AND WARR_6

COMMON STOCK OPTIONS AND WARRANTS (Details Narrative) - USD ($)

3 Months Ended

Dec. 01, 2023

Apr. 02, 2023

Jul. 02, 2022

Jan. 02, 2022

Dec. 31, 2023

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Warrant [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Strike price

$ 7.70

$ 8.63

$ 8.18

Warrant [Member] | Fourty Eight Warrants Holders [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Shares expired

102,947

102,947

Warrant [Member] | Sixty Three Warrants Holders [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Shares expired

1,228,875

Options [Member] | Former Staff [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Non-qualified stock options, forfeited

1,608

110,000

Options [Member] | Two Employees [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Non-qualified stock options, forfeited

80,000

Management [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Stock option granted

170,000

293,117

20,000

665,000

Strike price

$ 4.22

$ 4.22

$ 6.41

$ 6.41

Stock option plan expense

$ 172,000

$ 556,000

$ 33,096

$ 1,596,804

Stock-based compensation expense

$ 269,611

$ 819,191

Unamortized expense

$ 458,389

$ 458,389

Total compensation cost for stock options not yet recognized, period

2 years

2 years

DEFINED CONTRIBUTION PLAN (Deta

DEFINED CONTRIBUTION PLAN (Details Narrative)	12 Months Ended
	Dec. 31, 2023 USD ($)
Retirement Benefits [Abstract]
Cash contributions	$ 216,332

SALE OF ASSETS (Details)

SALE OF ASSETS (Details)	Dec. 31, 2023 USD ($)
Sale Of Assets
Convertible note receivable	$ 165,000
Unamortized discount	(11,250)
Convertible note receivable, net	$ 153,750

SALE OF ASSETS (Details Narrati

SALE OF ASSETS (Details Narrative)	12 Months Ended
	Dec. 31, 2023 USD ($) $ / shares shares
Sale Of Assets
Principal amount | $	$ 165,000
Original issue discount	10%
Conversion price | $ / shares	$ 0.003
Common stock shares | shares	55,000,000
Purchase of common stock warrants | shares	55,000,000
Exercise price | $ / shares	$ 0.01
Sale of asset | $	$ 150,000

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Private Placement [Member] - USD ($)	Mar. 22, 2024	Oct. 29, 2022	Sep. 30, 2022
Subsequent Event [Line Items]
Sale of Stock, Price Per Share		$ 3	$ 3
New Accredited Investors [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Sale of Stock, Consideration Received on Transaction	$ 2,745,000
New Accredited Investors [Member] | Subsequent Event [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Sale of Stock, Price Per Share	$ 3
New Accredited Investors [Member] | Series D Convertible Preferred Stock [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Sale of Stock, Number of Shares Issued in Transaction	620
New Accredited Investors [Member] | Series E Convertible Preferred Stock [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Sale of Stock, Number of Shares Issued in Transaction	2,125
Sale of Stock, Price Per Share	$ 1,000