Duos Technologies (DUOT) 10-K 31 Mar 22 2021 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2021	Mar. 28, 2022	Jun. 30, 2021
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2021
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2021
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			$ 36,835,577
Entity Common Stock, Shares Outstanding		6,088,019
Auditor Firm ID	106
Auditor Name	SALBERG & COMPANY, P.A.
Auditor Location	Boca Raton, Florida

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash	$ 893,720	$ 3,969,100
Accounts receivable, net	1,738,543	1,244,876
Contract assets	3,449	102,458
Inventory	298,338	112,423
Prepaid expenses and other current assets	354,613	374,203
Total Current Assets	3,288,663	5,803,060
Property and equipment, net	603,253	342,180
Operating lease right of use asset	4,925,765	196,144
Security deposit	600,000
OTHER ASSETS:
Patents and trademarks, net	66,482	64,415
Total Other Assets	66,482	64,415
TOTAL ASSETS	9,484,163	6,405,799
CURRENT LIABILITIES:
Accounts payable	1,044,500	599,317
Accounts payable - related parties		7,700
Notes payable - financing agreements	52,503	42,942
Payroll taxes payable	0	3,146
Accrued expenses	618,093	1,038,092
Equipment financing agreements-current portion	80,335	89,620
Operating lease obligations-current portion	315,302	202,797
PPP loan-current portion		627,465
Contract liabilities	1,232,638	709,553
Deferred revenue	596,673	315,370
Total Current Liabilities	3,940,044	3,636,002
Equipment financing payable, less current portion	22,851	103,184
Lease obligations, less current portion	4,739,783
PPP loan, less current portion		782,805
Total Liabilities	8,702,678	4,521,991
STOCKHOLDERS' EQUITY:
Preferred Stock, Value, Issued
Common stock: $0.001 par value; 500,000,000 shares authorized, 4,111,047 and 3,535,339 shares issued, 4,109,723 and 3,534,015 shares outstanding at December 31, 2021 and December 31, 2020, respectively	4,111	3,536
Additional paid-in-capital	43,080,877	39,820,874
Total stock & paid-in-capital	46,435,988	41,529,410
Accumulated deficit	(45,497,051)	(39,488,150)
Sub-total	938,937	2,041,260
Less: Treasury stock (1,324 shares of common stock at December 31, 2021 and December 31, 2020)	(157,452)	(157,452)
Total Stockholders' Equity	781,485	1,883,808
Total Liabilities and Stockholders' Equity	9,484,163	6,405,799
Convertible Series A Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred Stock, Value, Issued
Convertible Series B Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred Stock, Value, Issued	851,000	1,705,000
Convertible Series C Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred Stock, Value, Issued	$ 2,500,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Designated	9,480,000	9,480,000
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Shares, Issued	4,111,047	3,535,339
Common Stock, Shares, Outstanding	4,109,723	3,534,015
Treasury Stock, Common, Shares	1,324	1,324
Convertible Series A Preferred Stock [Member]
Temporary Equity, Par or Stated Value Per Share	$ 10	$ 10
Temporary Equity, Shares Authorized	500,000	500,000
Temporary Equity, Shares Issued	0	0
Temporary Equity, Shares Outstanding	0	0
Preferred stock, conversion price per share	$ 6.30	$ 6.30
Convertible Series B Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 1,000	$ 1,000
Preferred Stock, Shares Authorized	15,000	15,000
Preferred stock, conversion price per share	$ 7	$ 7
Preferred Stock, Shares Issued	851	1,705
Preferred Stock, Shares Outstanding	851	1,705
Convertible Series C Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 1,000	$ 1,000
Preferred Stock, Shares Authorized	5,000	5,000
Preferred stock, conversion price per share	$ 5.50	$ 5.50
Preferred Stock, Shares Issued	2,500	0
Preferred Stock, Shares Outstanding	2,500	0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
REVENUES:
Total Revenues	$ 8,259,917	$ 8,039,448
COST OF REVENUES:
Total Cost of Revenues	10,819,087	7,803,612
GROSS MARGIN	(2,559,170)	235,836
OPERATING EXPENSES:
Sales & marketing	1,233,851	717,809
Research & development	251,563	102,219
Administration	3,412,367	6,050,236
Total Operating Expenses	4,897,781	6,870,264
LOSS FROM OPERATIONS	(7,456,951)	(6,634,428)
OTHER INCOME (EXPENSES):
Interest expense	(20,268)	(150,137)
Other income, net	1,468,318	37,130
Total Other Income (Expenses)	1,448,050	(113,007)
NET LOSS	$ (6,008,901)	$ (6,747,435)
Basic & Diluted Net Loss Per Share	$ (1.63)	$ (2.03)
Weighted Average Shares-Basic & Diluted	3,694,293	3,320,193
Product [Member]
REVENUES:
Total Revenues	$ 5,871,666	$ 5,964,801
COST OF REVENUES:
Total Cost of Revenues	7,151,276	5,642,880
Service, Other [Member]
REVENUES:
Total Revenues	2,388,251	2,074,647
COST OF REVENUES:
Total Cost of Revenues	1,369,985	1,139,357
Overhead [Member]
COST OF REVENUES:
Total Cost of Revenues	$ 2,297,826	$ 1,021,375

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Preferred Stock B [Member]	Preferred Stock C [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Total
Beginning balance, value at Dec. 31, 2019	$ 1,705,000		$ 1,982	$ 31,063,915	$ (32,740,715)	$ (157,452)	$ (127,270)
Beginning balance, Shares at Dec. 31, 2019	1,705		1,982,039
Stock options granted to employees				351,970			351,970
Common stock issued for services			$ 12	52,488			52,500
Common stock issued, shares			1,542,188
Modification of employee stock options				102,800			102,800
Stock issuance cost				(1,001,885)			(1,001,885)
Common stock issued			$ 1,542	9,251,586			9,253,128
Common stock issued, shares			11,112
Net loss					(6,747,435)		(6,747,435)
Ending balance, value at Dec. 31, 2020	$ 1,705,000		$ 3,536	39,820,874	(39,488,150)	(157,452)	1,883,808
End balance, Shares at Dec. 31, 2020	1,705		3,535,339
Stock options granted to employees				262,411			262,411
Series C preferred stock issued		$ 4,500,000					4,500,000
Series C preferred stock issued, Shares		4,500
Series B preferred converted to common stock	$ (854,000)		$ 122	853,878
Series B convertible preferred converted to common stock, Shares	(854)		122,000
Series C preferred converted to common stock		$ (2,000,000)	$ 364	1,999,636
Series C preferred converted to common stock, shares	(2,000)	363,636
Common stock issued for cashless warrants exercised			$ 50	(50)
Common stock issued for cashless warrants exercised, shares			50,588
Common stock issued for services			$ 25	144,142			144,166
Common stock issued, shares			24,541
Common stock issued for cashless employee stock options exercised			$ 15	(15)
Common stock issued for cashless employee stock options exercised ,shares			14,576
Rounding-split in 2020			$ 0	0			0
Rounding-split in 2020 (367 shares) ,shares			367
Net loss					(6,008,901)		(6,008,901)
Ending balance, value at Dec. 31, 2021	$ 851,000	$ 2,500,000	$ 4,111	$ 43,080,877	$ (45,497,051)	$ (157,452)	$ 781,485
End balance, Shares at Dec. 31, 2021	851	2,500	4,111,047

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash from operating activities:
Net loss	$ (6,008,901)	$ (6,747,435)
Adjustments to reconcile net loss to net cash used in operating activities:
Bad debt expense (recovery)	76,046	(3,217)
Depreciation and amortization	275,346	222,514
Loss on disposal of assets	14,454
Stock based compensation	262,411	351,970
Modification of employee stock options		102,800
Stock issued for services	144,167
PPP loan forgiveness including accrued interest	(1,421,577)
Interest expense related to debt discounts		94,627
Amortization of operating lease right of use asset	250,482	234,001
Changes in assets and liabilities:
Accounts receivable	(611,023)	1,369,949
Contract assets	99,009	1,273,462
Inventory	(185,915)	112,423
Prepaid expenses and other current assets	423,905	379,175
Security deposit	(600,000)
Accounts payable	445,184	(2,042,118)
Accounts payable-related party	(7,700)	(5,091)
Payroll taxes payable	(3,146)	(111,965)
Accrued expenses	(408,692)	697,320
Operating lease obligation	(127,816)	(239,688)
Contract liabilities	523,085	700,892
Deferred revenue	281,303	(621,058)
Net cash used in operating activities	(6,579,378)	(4,231,439)
Cash flows from investing activities:
Purchase of patents/trademarks	(7,435)	(8,185)
Purchase of fixed assets	(545,505)	(279,146)
Net cash used in investing activities	(552,940)	(287,331)
Cash flows from financing activities:
Repayments of line of credit		(27,615)
Repayments of insurance and equipment financing	(353,444)	(260,983)
Repayment of finance lease	(89,618)	(62,931)
Repayment of notes payable		(1,000,000)
Proceeds from PPP loan		1,410,270
Proceeds from equipment financing		121,637
Proceeds from common stock issued		9,253,128
Issuance cost		(1,001,885)
Proceeds from preferred stock issued	4,500,000
Net cash provided by financing activities	4,056,938	8,431,621
Net (decrease) increase in cash	(3,075,380)	3,912,851
Cash, beginning of period	3,969,100	56,249
Cash, end of period	893,720	3,969,100
Supplemental Disclosure of Cash Flow Information:
Interest paid	30,817	33,698
Supplemental Non-Cash Investing and Financing Activities:
Common stock issued for accrued BOD fees		52,500
Lease right of use asset and liability	4,980,104
Notes issued for financing of insurance premiums	$ 363,005	$ 261,626

NATURE OF OPERATIONS AND SUMMAR

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2021
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”), develops and deploys vision based analytical technology solutions that will help to transform precision railroading, logistics and inter-modal transportation operations. Additionally, these unique patented solutions can be employed into many other industries. The Company has developed the Railcar Inspection Portal (RIP) that provides both freight and transit railroad customers and select government agencies the ability to conduct fully automated inspections of trains while they are in transit. The system, which incorporates a variety of sophisticated optical technologies, illumination and other sensors, scans each passing railcar to create an extremely high-resolution image set from a variety of angles including the undercarriage. These images are then processed through various methods of artificial intelligence (“AI”) algorithms to identify specific defects and/or areas of interest on each railcar. This is all accomplished within minutes of a railcar passing through our portal. This solution has the potential to transform the railroad industry by increasing safety, improving efficiency and reducing costs. The Company has successfully deployed this system with several Class 1 railroad customers and anticipates an increased demand in the future. Government agencies can conduct digital inspections combined with the incorporated AI to improve rail traffic flow across borders which also directly benefits the Class 1 railroads through increasing their velocity. The Company has also developed the Automated Logistics Information System (ALIS) which automates and reduces/removes personnel from gatehouses 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 the vehicle throughput on each lane on which the technology is deployed. The Company has built a portfolio of IP and patented solutions that creates “actionable intelligence” using two core native platforms called Centraco® and Praesidium™. All solutions provided include a variant of both applications. Centraco is designed primarily as the user interface to all our systems as well as the backend connection to third-party applications and databases through both Application Programming Interfaces (APIs) and Software Development Kits (SDKs). This interface is browser based and hosted within each one of our systems and solutions. It is typically also customized for each unique customer and application. Praesidium typically resides as middleware in our systems and manages the various image capture devices and some sensors for input into the Centraco software. The Company also developed a proprietary Artificial Intelligence (AI) software platform, Truevue360™ with the objective of focusing the Company’s advanced intelligent technologies in the areas of AI, deep machine learning and advanced multi-layered algorithms to further support our solutions. Through September 30, 2021, the Company also provided professional and consulting services for large data centers and had developed a system for the automation of asset information marketed as DcVue™. The Company had deployed its DcVue software at one beta site. This software was used by Duos’ consulting auditing teams. DcVue was based upon the Company’s OSPI patent which was awarded in 2010. The Company offered DcVue available for license to our customers as a licensed software product. The Company’s strategy is to deliver operational and technical excellence to our customers, expand our RIP and ALIS solutions into current and new customers focused in the Rail, Logistics and U.S. Government Sectors, offer both CAPEX and OPEX pricing models to customers that increases recurring revenue, grows backlog and improves profitability, responsibly grow the business both organically and through selective acquisitions, and promote a performance-based work force where employees enjoy their work and are incentivized to excel and remain with the Company. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Reverse Stock Split All share and per share amounts have been presented to give retroactive effect to a 1-for-14 Reclassifications The Company reclassified certain operating expenses for the year ended December 31, 2020 to conform to 2021 classification. There was no net effect on the total expenses of such reclassification. The following table reflects the reclassification adjustment effect for the year ended December 31, 2020: Schedule of Reclassifications Before Reclassification After Reclassification For the Year Ended For the Year Ended December 31, December 31, 2020 2020 REVENUES: REVENUES: Technology systems $ 4,956,130 Technology systems $ 5,964,801 Technical support 1,801,043 Services and consulting 2,074,647 Consulting services 273,604 — — AI technologies 1,008,671 — — Total Revenue 8,039,448 Total Revenue 8,039,448 COST OF REVENUES: COST OF REVENUES: Technology systems 3,665,493 Technology systems 5,642,880 Technical support 1,109,741 Services and consulting 1,139,357 Consulting services 117,004 Overhead 1,021,375 AI technologies 360,817 — — Total Cost of Revenues 5,253,055 Total Cost of Revenues 7,803,612 GROSS MARGIN 2,786,393 GROSS MARGIN 235,836 OPERATING EXPENSES: OPERATING EXPENSES: Sales and marketing 717,809 Sales and marketing 717,809 Engineering 1,358,925 Research and development 102,219 Research and development 1,022,188 Administration 6,050,236 Administration 5,011,913 — — AI technologies 1,309,986 — — Total Operating Expenses 9,420,821 Total Operating Expenses 6,870,264 LOSS FROM OPERATIONS $ (6,634,428 ) LOSS FROM OPERATIONS $ (6,634,428 ) The Company reclassified inventory on the consolidated balance sheet for the year ended December 31, 2020 to conform to 2021 classification. During the year ended December 31, 2020, inventory had been presented on the consolidated balance sheet within “Prepaid expenses and other current assets.” There was no net effect on total current assets. 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 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, 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, 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, 2021, balance in one financial institution exceeded federally insured limits by approximately $ 656,000 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, 2021 one customer accounted for 83 45 23 · For Customer 1, termination can be made, prior to delivery of products or services, in the case where either party breach any of its obligations under the agreement with the Company. The other party may terminate the agreement effective fifteen (15) Business Days following notice from the non-defaulting party, if the non-performance has not been cured within such period, and without prejudice to damages that could be claimed by the non-defaulting party. Either party may terminate the agreement if the other party becomes unable to pay its debts in the ordinary course of business; goes into liquidation (other than for the purpose of a genuine amalgamation or restructuring); has a receiver appointed over all or part of its assets; enters into a composition or voluntary arrangement with its creditors; or any similar event occurs in any jurisdiction, all to the extent permitted by law. · For Customer 2, prior to delivery of products or services, either party may terminate the agreement with the Company upon the other party’s material breach of a representation, warranty, term, covenant or undertaking in the agreement if, within thirty (30) days following the delivery of a written notice to the defaulting party setting forth in reasonable detail the basis of such default, the defaulting party has not rectified such default to the reasonable satisfaction of the non-defaulting party. Failure to perform due to a force majeure condition shall not be considered a material default under the agreement. At December 31, 2021, two customers accounted for 81 10 56 30 Geographic Concentration Approximately 86 51 Significant Vendors and Concentration of Credit Risk At December 31, 2021, one vendor accounted for 14 36 Two suppliers accounted for approximately 21 11 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 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 expense, 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 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 accounts, 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 to be used in the production of our technology systems or in connection with maintenance agreements with customers. 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 ( 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. 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 value 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 Technology Systems As of January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-89, 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 unrecognized 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. 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 estimated 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. 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. (see Note 9) 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. Technical Support Maintenance and 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 as the services are provided. Revenue for maintenance and technical support provided on an extended-term basis is recognized ratably over the term of the contract. For sales arrangements that do not involve multiple elements such as professional services, which are of short-term duration, revenues are recognized when services are completed. Consulting Services The Company recognizes revenue from its IT asset management business in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 985-605-25 which addresses revenue recognition for the software industry. The general criteria for revenue recognition under ASC 985-605 for our Company, which sells software licenses, which do not require any significant modification or customization, is that revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable. The Company’s IT asset management business generates revenues from three sources: (1) Professional Services (consulting and auditing), (2) Software licensing with optional hardware sales and (3) Customer Service (training and maintenance support). For sales arrangements that do not involve multiple elements: (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 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. AI Technologies The Company has begun to derive revenue from applications that incorporate artificial intelligence (AI) in the form of predetermined algorithms to provide important operating information to the users of our systems. The revenue generated from these applications of AI consists of an annual application maintenance fee which will be recognized ratably over the year, plus fees for the design, development, testing and incorporation of new algorithms into the system which will be recognized upon completion of each deliverable. Multiple Elements Arrangements with customers may involve multiple elements including project revenue and maintenance services in our Intelligent 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 elements 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 element arrangement is as follows: Each element is accounted for separately when each element has value to the customer on a standalone basis and there is Company specific objective evidence of 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 element is recognized using the applicable criteria under GAAP as discussed above for elements sold in non-multiple element 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 multiple element 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 element arrangements with Company customers qualify as separate units of account for revenue recognition purposes. Deferred Revenue Deferred revenues represent billings or cash received in excess of revenue recognizable on service agreements that are not accounted for under the percentage of completion method. At December 31, 2021 and 2020, the balance of deferred revenue was $ 596,673 315,370 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. Turnkey, engineered projects; b. Associated maintenance and support services; c. Licensing and professional services related to auditing of data center assets; d. Predetermined algorithms to provide important operating information to the users of our systems. 2. We currently operate in North America including the United States, Mexico and Canada. 3. Our customers include rail transportation, commercial, petrochemical, government, banking and IT suppliers. 4. Our 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 two to three months in length; and b. Maintenance and support contracts ranging from one to five years in length. 5. Our goods and services are transferred over time. Quantitative: For the Year Ended December 31, 2021 Schedule of Disaggregation of Revenue Quantitative Segments Rail Commercial Petrochemical Government Banking/Other IT Artificial Total Primary Geographical Markets North America $ 6,883,670 $ 213,517 $ (867 ) $ 314,030 $ 23,340 $ 134,717 $ 691,510 $ 8,259,917 Major Goods and Service Lines Turnkey Projects $ 5,255,491 $ 27,831 $ — $ 233,145 $ 1,537 $ — $ — $ 5,518,004 Maintenance & Support 1,628,179 185,686 (867 ) 80,885 21,803 — 341,915 2,257,601 Data Center Auditing Services — — — — — 131,537 — 131,537 Software License — — — — — 3,180 — 3,180 Algorithms — — — — — — 349,595 349,595 $ 6,883,670 $ 213,517 $ (867 ) $ 314,030 $ 23,340 $ 134,717 $ 691,510 $ 8,259,917 Timing of Revenue Recognition Goods transferred over time $ 5,255,491 $ 27,831 $ — $ 233,145 $ 1,537 $ 131,537 $ 349,595 $ 5,999,136 Services transferred over time 1,628,179 185,686 (867 ) 80,885 21,803 3,180 341,915 2,260,781 $ 6,883,670 $ 213,517 $ (867 ) $ 314,030 $ 23,340 $ 134,717 $ 691,510 $ 8,259,917 Quantitative: For the Year Ended December 31, 2020 Segments Rail Commercial Petrochemical Government Banking IT Artificial Total Primary Geographical Markets North America $ 5,558,405 $ 298,705 $ 23,951 $ 687,293 $ 188,819 $ 273,604 $ 1,008,671 $ 8,039,448 Major Goods and Service Lines Turnkey Projects $ 4,131,155 $ 59,616 $ 33,363 $ 599,481 $ 132,515 $ — $ — $ 4,956,130 Maintenance & Support 1,427,250 239,089 (9,412 ) 87,812 56,304 — — 1,801,043 Data Center Auditing Services — — — — — 266,449 — 266,449 Software License — — — — — 7,155 — 7,155 Algorithms — — — — — — 1,008,671 1,008,671 $ 5,558,405 $ 298,705 $ 23,951 $ 687,293 $ 188,819 $ 273,604 $ 1,008,671 $ 8,039,448 Timing of Revenue Recognition Goods transferred over time $ 4,131,155 $ 59,616 $ 33,363 $ 599,481 $ 132,515 $ 273,604 $ 1,008,671 $ 6,238,405 Services transferred over time 1,427,250 239,089 (9,412 ) 87,812 56,304 — — 1,801,043 $ 5,558,405 $ 298,705 $ 23,951 $ 687,293 $ 188,819 $ 273,604 $ 1,008,671 $ 8,039,448 Advertising The Company expenses the cost of advertising. During the years ended December 31, 2021 and 2020, there were no Stock Based Compensation The Company accounts for employee stock-based compensation in accordance with ASC 718-10, “ Share-Based Payment Determining Fair Value Under ASC 718-10 The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing formula. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. The Company’s determination of fair value using an option-pricing model is affected by the stock price as well as assumptions regarding the number of highly subjective variables. The Company estimates volatility based upon the historical stock price of the Company and estimates the expected term for employee 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. 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 2018, 2019 and 2020 remain open for potential audit. Earnings (Loss) Per Share Basic earnings per share (EPS) are computed by dividing 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 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, 2021, there was an aggregate of 1,376,466 431,266 121,571 454,546 Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842). The updated guidance requires lessees to recognize right-of-use (“ROU”) assets and lease liabilities for most operating leases. In addition, the updated guidance requires that lessors separate lease and non-lease components in a contract in accordance with the new revenue guidance in ASC 606. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018. The Company adopted this guidance effective January 1, 2019, using the modified retrospective method, whereby a cumulative effect adjustment was made as of the date of initial application. The Company also applied the package of practical expedients to leases that commenced before the effective date whereby the Company elected to not reassess the following: (i) whether any expired or existing contracts contain leases and (ii) initial direct costs for any existing leases. 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. The adoption of ASU 2016-02 did not materially affect our consolidated statement of operations or our consolidated statement of cash flows. For contracts entered into on or after the effective date, 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 it has 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 p

LIQUIDITY

LIQUIDITY	12 Months Ended
	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
LIQUIDITY	NOTE 2 – LIQUIDITY As reflected in the accompanying consolidated financial statements, the Company had a net loss of $ 6,008,901 6,579,378 651,381 45,497,051 As previously noted, the Company raised $4,500,000 from existing shareholders through the issuance of Series C Convertible Preferred Stock. 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 the plan described above, generate enough revenue, and attain consistently profitable operations. Although the current global pandemic related to the coronavirus (Covid-19) has affected our operations, particularly in supply chain, we now believe that this is expected to be an ongoing issue and our working capital assumptions reflect this new reality. The Company cannot currently quantify the uncertainty related to the pandemic and its effects on our customers in the coming quarters. We have analyzed our cash flow under “stress test” conditions and have determined that we have sufficient liquid assets on hand to maintain operations for at least twelve months from the date of this report. A notable recent success is the approval of the Company for “bonding” in the amount of approximately $8 million for an upcoming major project. The Company was successful in securing a loan of $ 1,410,270 5,500,000 Management believes that, at this time, the conditions in our market space with ongoing contract delays, the consequent need to procure certain materials in advance of a binding contract and the additional time needed to execute on new contracts previously reported have put a strain on our cash reserves. However, recent events including a $5.5M injection of funds from a sale of securities, significant recent orders and the overall stabilization of the business indicate that there is no longer substantial doubt for the Company to continue as a going concern for a period of twelve months from the issuance of this report. We continue executing the plan to grow our business and achieve profitability without the requirement to raise additional capital for existing operations for 2022 although we may do so to fund selective opportunities that may arise. Management has extensively evaluated our requirements for the next 12 months and has determined that the Company currently has sufficient cash to operate for at least that period.

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
ACCOUNTS RECEIVABLE	NOTE 3 – ACCOUNTS RECEIVABLE Accounts receivable were as follows at December 31, 2021 and 2020: Schedule of Accounts Receivable December 31, December 31, 2021 2020 Accounts receivable $ 1,738,543 $ 1,244,876 Allowance for doubtful accounts — — Accounts Receivable, Net $ 1,738,543 $ 1,244,876 There was bad debt expense related to accounts receivable of $ 76,046 3,217

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 4 – PROPERTY AND EQUIPMENT The major classes of property and equipment are as follow at December 31, 2021 and 2020: Major classes of property and equipment December 31, December 31, 2021 2020 Furniture, fixtures and equipment $ 1,264,001 $ 1,569,328 Less: Accumulated depreciation (660,748 ) (1,227,148 ) Furniture, fixtures and equipment, Net $ 603,253 $ 342,180 Depreciation expense 269,978 197,146

PATENTS AND TRADEMARKS

PATENTS AND TRADEMARKS	12 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
PATENTS AND TRADEMARKS	NOTE 5 – PATENTS AND TRADEMARKS Patents and trademarks 2021 2020 Patents and trademarks $ 309,205 $ 301,770 Less: Accumulated amortization (242,723 ) (237,355 ) Patents and trademarks, Net $ 66,482 $ 64,415 Amortization expense in 2021 and 2020 was $ 5,368 5,368

SOFTWARE DEVELOPMENT COSTS

SOFTWARE DEVELOPMENT COSTS	12 Months Ended
	Dec. 31, 2021
Research and Development [Abstract]
SOFTWARE DEVELOPMENT COSTS	NOTE 6 – SOFTWARE DEVELOPMENT COSTS In 2018, the Company capitalized $ 60,000 Schedule of Software Development Costs December 31, December 31, 2021 2020 Software development costs $ 60,000 $ 60,000 Less: Accumulated amortization (60,000 ) (60,000 ) Software Development Costs, net $ — $ — Amortization of software development costs in 2021 and 2020 was zero and $ 20,000

DEBT

DEBT	12 Months Ended
	Dec. 31, 2021
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: Notes Payable - Financing Agreements December 31, 2021 December 31, 2020 Notes Payable Principal Interest Principal Interest Third Party - Insurance Note 1 $ 22,266 7.75 % $ 23,327 7.75 % Third Party - Insurance Note 2 12,667 6.24 % 10,457 5.26 % Third Party - Insurance Note 3 17,570 — 9,158 — Third Party - Insurance Note 4 — — — — Total $ 52,503 $ 42,942 The Company entered into an agreement on December 23, 2020 with its insurance provider by issuing a $ 23,327 7.75 2,416 22,266 7.75 2,104 22,266 23,327 The Company entered into an agreement on April 15, 2020 with its insurance provider by issuing a $ 51,379 5.26 5,263 62,041 6.24 6,383 12,667 10,457 The Company entered into an agreement on September 15, 2020 with its insurance provider by issuing a $ 13,796 19,965 1,997 17,570 9,158 The Company entered into an agreement on February 3, 2020 with its insurance provider by issuing a $ 165,375 13,726 215,654 17,899 0 0 Equipment Financing The Company entered into an agreement on August 26, 2019 with an equipment financing company by issuing a $ 147,810 12.72 4,963 121,637 9.90 3,919 103,186 192,804 At December 31, 2021, future minimum note payments due under the equipment financing agreements are as follows: Schedule of Future Minimum Lease Payments Under Finance Lease As of December 31, Amount 2022 86,735 2023 23,515 Total minimum equipment financing payments $ 110,250 Less: interest (7,064 ) Total equipment financing at December 31, 2021 $ 103,186 Less: current portion of equipment financing (80,335 ) Long-term portion of equipment financing $ 22,851 Notes Payable – PPP Loan Schedule of Notes Payable -PPP Loan December 31, 2021 December 31, 2020 Payable To Principal Interest Principal Interest PPP loan $ — $ 1,410,270 1 % Total — 1,410,270 Less current portion — (627,465 ) Long-term portion $ — $ 782,805 On April 23, 2020, the Company entered into a promissory note (the “Note”) with BBVA USA, which provides for a loan in the amount of $ 1,410,270 1.00 0 1,410,270

LINE OF CREDIT

LINE OF CREDIT	12 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
LINE OF CREDIT	NOTE 8 – LINE OF CREDIT The Company assumed a line of credit with Wells Fargo Bank upon the merger with ISA on April 1, 2015. The line of credit provided for borrowings up to $ 40,000 0 0

CONTRACT ACCOUNTING

CONTRACT ACCOUNTING	12 Months Ended
	Dec. 31, 2021
Contractors [Abstract]
CONTRACT ACCOUNTING	NOTE 9 – CONTRACT ACCOUNTING Contract Assets Contract assets on uncompleted contracts represent costs and estimated earnings in excess of billings and/or cash received on uncompleted contracts accounted for under the percentage of completion contract method. At December 31, 2021 and 2020, contract assets on uncompleted contracts consisted of the following: Schedule of contract billings 2021 2020 Costs and estimated earnings recognized $ 5,266,930 $ 4,152,850 Less: Billings or cash received (5,263,481 ) (4,050,392 ) Contract Assets $ 3,449 $ 102,458 Contract Liabilities Contract liabilities on uncompleted contracts represent billings and/or cash received that exceed accumulated revenues recognized on uncompleted contracts accounted for under the percentage of completion contract method. At December 31, 2021 and 2020, contract liabilities on uncompleted contracts consisted of the following: 2021 2020 Billings and/or cash receipts on uncompleted contracts $ 4,473,726 $ 2,978,007 Less: Costs and estimated earnings recognized (3,041,088 ) (2,268,454 ) Contract Liabilities $ 1,232,638 $ 709,553

DEFERRED COMPENSATION

DEFERRED COMPENSATION	12 Months Ended
	Dec. 31, 2021
Compensation Related Costs [Abstract]
DEFERRED COMPENSATION	NOTE 10 – DEFERRED COMPENSATION As of December 31, 2021, and 2020, the Company has accrued $ 505,896 797,042

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11 – COMMITMENTS AND CONTINGENCIES Delinquent Payroll Taxes Payable The Company has paid its delinquent IRS payroll taxes, late fees and outstanding state of California payroll taxes in full. At December 31, 2021 and December 31, 2020, the state payroll taxes payable balance was 0 3,146 Operating Lease Obligations The Company had an operating lease agreement for office space of approximately 8,308 10,203 The Company entered a separate operating lease agreement of office and warehouse combination space of 4,400 The Company had approximately 14,603 On July 26, 2021, the Company entered a new operating lease agreement of office and warehouse combination space of 40,000 4,980,104 30,000 600,000 On November 1, 2021, the Company extended the leases of office space and warehouse space at its two prior facilities for a period of 30 days to accommodate delays moving to its new headquarters. The move was completed during 2021. The Company had approximately 40,000 As of December 31, 2021, 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 10.4 The following table shows supplemental information related to leases: Schedule of supplemental information related to leases Year Ended December 31, 2021 2020 Lease cost: Operating lease cost $ 414,085 $ 279,975 Short-term lease cost 21,628 21,341 Other information: Operating cash outflow used for operating leases 285,959 344,307 Weighted average discount rate 9.0 % 12.0 % Weighted average remaining lease term 10.4 0.8 At December 31, 2021, future minimum lease payments due under operating leases are as follows: Future minimum lease payments for non-cancelable operating leases As of December 31, 2021 Fiscal year: 2022 $ 315,302 2023 696,869 2024 779,087 2025 798,556 2026 818,518 Thereafter 4,803,472 Total undiscounted future minimum lease payments 8,211,804 Less: Impact of discounting (3,156,719 ) Total present value of operating lease liabilities 5,055,085 Current portion (315,302 ) Operating lease liability, less current portion $ 4,739,783 Executive Severance Agreement On April 1, 2018, the Company entered into an employment agreement (the “Arcaini Employment Agreement”) with Gianni B. Arcaini, pursuant to which Mr. Arcaini served as Chief Executive Officer and Chairman of the Board of Directors of the Company. Under the Arcaini Employment Agreement, Mr. Arcaini was paid an annual salary of $ 249,260 18,000 1 As previously disclosed, on July 10, 2020, the Company announced that Mr. Arcaini would retire from these positions, effective as of September 1, 2020 (the “CEO Transition”). In order to facilitate a transition of his duties, the Company and Mr. Arcaini entered into a separation agreement which became effective as of July 10, 2020 (the “Separation Agreement”). Pursuant to the Separation Agreement, Mr. Arcaini’s employment with the Company ended on September 1, 2020 and he will receive separation payments over a 36-month period equal to his base salary plus $ 75,000 747,788 124,631 479,000 1,200 50,358 95,127 17,000

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 12 – 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 at December 31, 2021 and 2020 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, 2021 and 2020 were as follows: Difference between income taxes at effective statutory rate and provision for income taxes Years Ended December 31, 2021 2020 Income tax benefit at U.S. statutory rate of 21% $ (1,261,869 ) $ (1,416,961 ) State income taxes (216,321 ) (242,908 ) Non-deductible expenses 64,553 135,152 Change in valuation allowance 1,413,637 1,524,717 Total provision for income tax $ — $ — The Company’s approximate net deferred tax assets as of December 31, 2021 and 2020 were as follows: Net deferred tax assets December 31, 2021 2020 Deferred Tax Assets: Net operating loss carryforward $ 8,247,427 $ 6,807,482 Intangible assets 5,553 31,841 Allowance for bad debt — — 8,252,960 6,839,323 Valuation allowance (8,252,960 ) (6,839,323 ) Net deferred tax assets $ — $ — The gross operating loss carryforward was approximately $ 33,522,769 27,672,692 1,413,637 The potential tax benefit arising from the net operating loss carryforward of $ 4,357,876 3,848,467 The Company does not have any uncertain tax positions or events leading to uncertainty in a tax position. The Company’s 2020, 2019 and 2018 Corporate Income Tax Returns are subject to Internal Revenue Service examination.

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	12 Months Ended
	Dec. 31, 2021
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 13 – 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 Currently, there are 52 identified employees (including three executive officers, of which one is a director), four non-employee directors, and up to 50 other current or future staff members who would be eligible to receive stock options and/or shares of restricted stock under the 2021 Plan. Future new hires and additional non-employee directors and/or consultants would be eligible to participate in the 2021 Plan as well. 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”); provided, however, that ISOs may only be issued if our shareholders approve the 2021 Plan at the Annual Meeting. 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. Certain Federal Income Tax Consequences of the 2021 Plan The following is a general summary of the federal income tax consequences under current U.S. tax law to the Company and to participants in the 2021 Plan who are individual citizens or residents of the United States for federal income tax purposes (“U.S. Participants”) of stock options, stock appreciation rights, restricted stock, performance shares, performance units, restricted stock units, distribution equivalent rights and unrestricted stock. It does not purport to cover all of the special rules including special rules relating to limitations on the ability of the Company to deduct the amounts for federal income tax purposes of certain compensation, special rules relating to deferred compensation, golden parachutes, participants subject to Section 16(b) of the Exchange Act or the exercise of a stock option with previously acquired shares of the Company’s Common Stock. For purposes of this summary, it is assumed that U.S. Participants will hold their shares of the Company’s Common Stock received under the 2021 Plan as capital assets within the meaning of Section 1221 of the Code. In addition, this summary does not address the non-U.S. state or local income or other tax consequences, or any U.S. federal non-income tax consequences, inherent in the acquisition, ownership, vesting, exercise, termination or disposition of an award under the 2021 Plan or shares of the Company’s Common Stock issued pursuant thereto. All participants are urged to consult with their own tax advisors concerning the tax consequences to them of an award under the 2021 Plan or shares of the Company’s Common Stock issued thereto pursuant to the 2021 Plan. A U.S. Participant does not recognize taxable income upon the grant of a NQSO or an ISO. Upon the exercise of a NQSO, the U.S. Participant recognizes ordinary income in an amount equal to the excess, if any, of the fair market value of the shares acquired on the date of exercise over the exercise price paid therefor under the NQSO, and the Company will generally be entitled to a deduction for such amount at that time. If the U.S. Participant later sells shares acquired pursuant to the exercise of a NQSO, the U.S. Participant recognizes long-term or short-term capital gain or loss, depending on the period for which the shares were held. Long-term capital gain is generally subject to more favorable tax treatment than ordinary income or short-term capital gain. Upon the exercise of an ISO, the U.S. Participant does not recognize taxable income. If the U.S. Participant disposes of the shares acquired pursuant to the exercise of an ISO more than two years after the date of grant and more than one year after the transfer of the shares to the U.S. Participant, the U.S. Participant recognizes long-term capital gain or loss, and the Company will not be entitled to a deduction. However, if the U.S. Participant disposes of such shares prior to the end of the required holding period, all or a portion of the gain is treated as ordinary income and the Company is generally entitled to deduct such amount. In addition to the tax consequences described above, a U.S. Participant may be subject to the alternative minimum tax, which is payable to the extent it exceeds the U.S. Participant’s regular tax. For this purpose, upon the exercise of an ISO, the excess of the fair market value of the shares over the exercise price paid therefor under the ISO is a preference item for alternative minimum taxable income determination purposes. In addition, the U.S. Participant’s basis in such shares is increased by such excess for purposes of computing the gain or loss on the disposition of the shares for alternative minimum tax purposes. A U.S. Participant does not recognize taxable income upon the grant of an SAR. The U.S. Participant has ordinary compensation income upon exercise of the SAR equal to the increase in the value of the underlying shares, and the Company will generally be entitled to a deduction for such amount. A U.S. Participant does not recognize taxable income upon the receipt of a performance share award until the shares are received. At such time, the U.S. Participant recognizes ordinary compensation income equal to the excess, if any, of the fair market value of the shares over any amount thereby paid for the shares, and the Company will generally be entitled to deduct such amount at such time. A U.S. Participant does not recognize taxable income upon the receipt of a performance unit award, restricted stock unit award or dividend equivalent right award until a cash payment is received. At such time, the U.S. Participant recognizes ordinary compensation income equal to the amount of cash received, and the Company will generally be entitled to deduct such amount at such time. A U.S. Participant who receives a grant of restricted stock generally recognizes ordinary compensation income equal to the excess, if any, of the fair market value of such shares of stock at the time the restriction lapses over any amount paid timely for the shares. Alternatively, the U.S. Participant may elect to be taxed on the fair market value of such shares at the time of grant. The Company thereby will generally be entitled to a deduction at the same time and in the same amount as the income required to be included by the U.S. Participant. A U.S. Participant recognizes ordinary compensation income upon receipt of the shares under an unrestricted stock award equal to the excess, if any, of the fair market value of the shares over any amount paid thereby for the shares, and the Company will generally be entitled to deduct such amount at such time. 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 has designated 15,000 10,000,000 Each share of Series B Convertible Preferred Stock is convertible at any time at the holder’s option into a number of shares of common stock equal to $ 1,000 7.00 2,830 2,830,000 1,000 851 1,705 Series C Convertible Preferred Stock 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 (the “Series C Convertible Preferred Stock”), and the Company received proceeds of $ 4,500,000 2,500 Under the Purchase Agreement, the Company was required to hold a meeting of shareholders at the earliest practical date, and such meeting occurred on July 15, 2021. Nasdaq Marketplace Rule 5635(d) limits the number of shares of common stock (or securities that are convertible into common stock) without shareholder approval and the terms of the Series C Convertible Preferred Stock limit its convertibility to a number of shares less than the 20% limit, until the Stockholder Approval is obtained. The Company obtained shareholder approval (the “Stockholder Approval”) in order to issue shares of common stock underlying the Series C Convertible Preferred Stock at a price less than the greater of book or market value which equal 20% or more of the number of shares of common stock outstanding before the issuance. As described below, the terms of the Series C Convertible Preferred Stock limited its convertibility to a number of shares less than the 20% limit, until the Stockholder Approval was obtained. 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 are convertible. The Company caused the registration statement to be declared effective on June 3, 2021. The Registration Rights Agreement contains customary representations, warranties, agreements and indemnification rights and obligations of the parties. The Company’s Board of Directors has designated 5,000 shares as the Series C Convertible Preferred Stock. Each share of the Series C Convertible Preferred Stock has a stated value of $1,000. The holders of the Series C Convertible 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 C Convertible Preferred Stock has 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 is 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 have elected the 19.99% Beneficial Ownership Limitation. Common stock issued for warrants During the third quarter of 2020, 67,500 1,197 9,450 During the second quarter of 2021, warrants representing 205,574 shares were exercised by seven holders. All the exercises were cashless exercises with exercise prices of $7.70 and stock prices ranging from $9.25 to $11.14 resulting in a total of 50,588 common shares. No new warrants were issued during the third and fourth quarter of 2021. Common stock issued for services and settlements The Company issued 1,611 7,500 The Company issued 1,632 7,500 The Company issued 7,869 37,500 The Company issued 4,032 30,000 The Company issued 7,223 45,000 The Company issued 3,726 19,167 The Company issued 9,560 50,000 Stock-Based Compensation 262,411 454,770 95,166 1.5 Series B Convertible Preferred Stock A holder of Series B Convertible Preferred Stock converted 854 122,000 854,000 Series C Convertible Preferred Stock A holder of Series C Convertible Preferred Stock converted 1,500 272,727 1,500,000 A holder of Series C Convertible Preferred Stock converted 500 90,909 500,000 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, 2021
Share-based Payment Arrangement [Abstract]
COMMON STOCK OPTIONS AND WARRANTS	NOTE 14 – COMMON STOCK OPTIONS AND WARRANTS Options 2021 During the first quarter of 2021, the Company’s Board of Directors granted 20,000 4.32 52,758 7,685 45,073 2.75 During the second quarter of 2021, five former staff members and one contractor exercised 31,710 and forfeited 8,922 63,860 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 July 14, 2021, the Company filed an S-8 registration statement in concert with the 2021 Equity Incentive Plan which was deemed effective on August 5, 2021. The plan covers a period of ten years. 2020 During the second quarter of 2020, 160,866 100 102,800 149,424 50 50 370,312 During the third quarter of 2020, 100,000 50 50 193,388 50,358 95,127 During the fourth quarter of 2020, 40,000 For 20,000 of those options, 50% of the options will vest on October 12, 2021 and the other 50% will vest on October 12, 2022. For the other 20,000 options, one-third will vest on November 23, 2021, the next third will vest on November 23, 2022 and the final third will vest on November 23, 2023. 91,574 Schedule of Options Activity Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (Years) Value Outstanding at December 31, 2019 163,010 $ 14.00 3.4 — Granted 450,290 $ 5.06 4.4 — Forfeited (161,402 ) $ 14.00 — — Outstanding at December 31, 2020 451,898 $ 5.06 4.4 7,200 Exercisable at December 31, 2020 212,832 $ 5.76 4.2 — Outstanding at December 31, 2020 451,898 $ 5.06 4.2 — Granted 20,000 $ 4.32 4.0 — Exercised/Forfeited (40,632 ) $ 14.00 — — Outstanding at December 31, 2021 431,266 $ 4.98 3.4 $197,506 312,310 $ 5.25 3.4 — Schedule of Fair Value Assumptions For the Years Ended 2021 2020 Risk free interest rate 0.18 0.18 0.26 Expected term in years 3.50 2.50 3.50 Dividend yield — — Volatility of common stock 91.6 68.00 86.24 Estimated annual forfeitures — — Warrants 2021 During the second quarter of 2021, warrants representing 205,574 7.70 9.25 11.14 50,588 2020 During the first quarter of 2020, 67,500 9.00 During the second quarter of 2020, 9,450 1,197 During the third quarter of 2020, 67,500 During the fourth quarter of 2020, 12,469 Schedule of Warrants Outstanding Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Warrants Price Term (Years) Value Outstanding at December 31, 2019 1,521,250 $ 8.78 3.9 — Warrants expired, forfeited, cancelled or exercised (23,116 ) Warrants issued 89,419 $ 9.02 2.2 — Outstanding at December 31, 2020 1,587,553 $ 8.62 2.0 — Exercisable at December 31, 2020 1,587,553 $ 8.69 2.0 — Outstanding at December 31, 2020 1,587,553 $ 8.62 2.0 — Warrants expired, forfeited, cancelled or exercised (232,517 ) Warrants issued 21,430 $ 7.70 1.9 — Outstanding at December 31, 2021 1,376,466 $ 8.18 1.9 — Exercisable at December 31, 2021 1,376,466 $ 8.18 1.9 —

DEFINED CONTRIBUTION PLAN

DEFINED CONTRIBUTION PLAN	12 Months Ended
	Dec. 31, 2021
Retirement Benefits [Abstract]
DEFINED CONTRIBUTION PLAN	NOTE 15 – 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 twelve months ended December 31, 2021, the Company matched 100% of the first 4% of eligible employee compensation that was contributed to the 401(k) Plan. For the twelve months ended December 31, 2021, the Company recognized expense for matching cash contributions to the 401(k) Plan totaling $ 111,759

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2021
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 16 – RELATED PARTY TRANSACTIONS On August 1, 2012, the Company entered into an independent contractor master services agreement (the “Services Agreement”) with Luceon, LLC, a Florida limited liability company, owned by our former Chief Technology Officer, David Ponevac. The Services Agreement provided that Luceon would provide support services including management, coordination or software development services and related services to duos. In January 2019, additional services were contracted with Luceon for TrueVue360™ primarily for software development through the provision of 7 additional full-time contractors located in Slovakia at a cost of $ 16,250 25,583 7,480 8,231 20,986 93,422 335,334

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 17 – SUBSEQUENT EVENTS On January 1, 2022, the Company awarded certain senior management and key employees non-qualified stock options under the 2021 Equity Incentive Plan previously approved by the shareholders. A total of 665,000 6.41 5 3 On January 11, 2022, a shareholder exercised a conversion of 710 1,790 2.5 5.50 129,091 325,455 On February 3, 2022, the Company closed an offering of 1,325,000 5,300,000 4,779,000 On February 21, 2022, the Company closed a “over-allotment” offering of 198,750 shares of common stock in the amount of $795,000 before certain underwriting fees and offering expenses with net proceeds of $739,350. Both this and the previous offering were “takedowns” from a previously filed S3 “shelf” registration statement for the offer of up to $50,000,000 in the aggregate of Common Stock, Preferred Stock, Debt Securities, Warrants, Rights or Units from time to time in one or more offerings.

NATURE OF OPERATIONS AND SUMM_2

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2021
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”), develops and deploys vision based analytical technology solutions that will help to transform precision railroading, logistics and inter-modal transportation operations. Additionally, these unique patented solutions can be employed into many other industries. The Company has developed the Railcar Inspection Portal (RIP) that provides both freight and transit railroad customers and select government agencies the ability to conduct fully automated inspections of trains while they are in transit. The system, which incorporates a variety of sophisticated optical technologies, illumination and other sensors, scans each passing railcar to create an extremely high-resolution image set from a variety of angles including the undercarriage. These images are then processed through various methods of artificial intelligence (“AI”) algorithms to identify specific defects and/or areas of interest on each railcar. This is all accomplished within minutes of a railcar passing through our portal. This solution has the potential to transform the railroad industry by increasing safety, improving efficiency and reducing costs. The Company has successfully deployed this system with several Class 1 railroad customers and anticipates an increased demand in the future. Government agencies can conduct digital inspections combined with the incorporated AI to improve rail traffic flow across borders which also directly benefits the Class 1 railroads through increasing their velocity. The Company has also developed the Automated Logistics Information System (ALIS) which automates and reduces/removes personnel from gatehouses 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 the vehicle throughput on each lane on which the technology is deployed. The Company has built a portfolio of IP and patented solutions that creates “actionable intelligence” using two core native platforms called Centraco® and Praesidium™. All solutions provided include a variant of both applications. Centraco is designed primarily as the user interface to all our systems as well as the backend connection to third-party applications and databases through both Application Programming Interfaces (APIs) and Software Development Kits (SDKs). This interface is browser based and hosted within each one of our systems and solutions. It is typically also customized for each unique customer and application. Praesidium typically resides as middleware in our systems and manages the various image capture devices and some sensors for input into the Centraco software. The Company also developed a proprietary Artificial Intelligence (AI) software platform, Truevue360™ with the objective of focusing the Company’s advanced intelligent technologies in the areas of AI, deep machine learning and advanced multi-layered algorithms to further support our solutions. Through September 30, 2021, the Company also provided professional and consulting services for large data centers and had developed a system for the automation of asset information marketed as DcVue™. The Company had deployed its DcVue software at one beta site. This software was used by Duos’ consulting auditing teams. DcVue was based upon the Company’s OSPI patent which was awarded in 2010. The Company offered DcVue available for license to our customers as a licensed software product. The Company’s strategy is to deliver operational and technical excellence to our customers, expand our RIP and ALIS solutions into current and new customers focused in the Rail, Logistics and U.S. Government Sectors, offer both CAPEX and OPEX pricing models to customers that increases recurring revenue, grows backlog and improves profitability, responsibly grow the business both organically and through selective acquisitions, and promote a performance-based work force where employees enjoy their work and are incentivized to excel and remain with the Company.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
Reverse Stock Split	Reverse Stock Split All share and per share amounts have been presented to give retroactive effect to a 1-for-14
Reclassifications	Reclassifications The Company reclassified certain operating expenses for the year ended December 31, 2020 to conform to 2021 classification. There was no net effect on the total expenses of such reclassification. The following table reflects the reclassification adjustment effect for the year ended December 31, 2020: Schedule of Reclassifications Before Reclassification After Reclassification For the Year Ended For the Year Ended December 31, December 31, 2020 2020 REVENUES: REVENUES: Technology systems $ 4,956,130 Technology systems $ 5,964,801 Technical support 1,801,043 Services and consulting 2,074,647 Consulting services 273,604 — — AI technologies 1,008,671 — — Total Revenue 8,039,448 Total Revenue 8,039,448 COST OF REVENUES: COST OF REVENUES: Technology systems 3,665,493 Technology systems 5,642,880 Technical support 1,109,741 Services and consulting 1,139,357 Consulting services 117,004 Overhead 1,021,375 AI technologies 360,817 — — Total Cost of Revenues 5,253,055 Total Cost of Revenues 7,803,612 GROSS MARGIN 2,786,393 GROSS MARGIN 235,836 OPERATING EXPENSES: OPERATING EXPENSES: Sales and marketing 717,809 Sales and marketing 717,809 Engineering 1,358,925 Research and development 102,219 Research and development 1,022,188 Administration 6,050,236 Administration 5,011,913 — — AI technologies 1,309,986 — — Total Operating Expenses 9,420,821 Total Operating Expenses 6,870,264 LOSS FROM OPERATIONS $ (6,634,428 ) LOSS FROM OPERATIONS $ (6,634,428 ) The Company reclassified inventory on the consolidated balance sheet for the year ended December 31, 2020 to conform to 2021 classification. During the year ended December 31, 2020, inventory had been presented on the consolidated balance sheet within “Prepaid expenses and other current assets.” There was no net effect on total current assets.
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 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, 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, 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, 2021, balance in one financial institution exceeded federally insured limits by approximately $ 656,000 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, 2021 one customer accounted for 83 45 23 · For Customer 1, termination can be made, prior to delivery of products or services, in the case where either party breach any of its obligations under the agreement with the Company. The other party may terminate the agreement effective fifteen (15) Business Days following notice from the non-defaulting party, if the non-performance has not been cured within such period, and without prejudice to damages that could be claimed by the non-defaulting party. Either party may terminate the agreement if the other party becomes unable to pay its debts in the ordinary course of business; goes into liquidation (other than for the purpose of a genuine amalgamation or restructuring); has a receiver appointed over all or part of its assets; enters into a composition or voluntary arrangement with its creditors; or any similar event occurs in any jurisdiction, all to the extent permitted by law. · For Customer 2, prior to delivery of products or services, either party may terminate the agreement with the Company upon the other party’s material breach of a representation, warranty, term, covenant or undertaking in the agreement if, within thirty (30) days following the delivery of a written notice to the defaulting party setting forth in reasonable detail the basis of such default, the defaulting party has not rectified such default to the reasonable satisfaction of the non-defaulting party. Failure to perform due to a force majeure condition shall not be considered a material default under the agreement. At December 31, 2021, two customers accounted for 81 10 56 30 Geographic Concentration Approximately 86 51 Significant Vendors and Concentration of Credit Risk At December 31, 2021, one vendor accounted for 14 36 Two suppliers accounted for approximately 21 11
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 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 expense, 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 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 accounts, 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 to be used in the production of our technology systems or in connection with maintenance agreements with customers. 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 ( 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.
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 value 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 Technology Systems As of January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-89, 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 unrecognized 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. 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 estimated 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. 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. (see Note 9) 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. Technical Support Maintenance and 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 as the services are provided. Revenue for maintenance and technical support provided on an extended-term basis is recognized ratably over the term of the contract. For sales arrangements that do not involve multiple elements such as professional services, which are of short-term duration, revenues are recognized when services are completed. Consulting Services The Company recognizes revenue from its IT asset management business in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 985-605-25 which addresses revenue recognition for the software industry. The general criteria for revenue recognition under ASC 985-605 for our Company, which sells software licenses, which do not require any significant modification or customization, is that revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable. The Company’s IT asset management business generates revenues from three sources: (1) Professional Services (consulting and auditing), (2) Software licensing with optional hardware sales and (3) Customer Service (training and maintenance support). For sales arrangements that do not involve multiple elements: (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 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. AI Technologies The Company has begun to derive revenue from applications that incorporate artificial intelligence (AI) in the form of predetermined algorithms to provide important operating information to the users of our systems. The revenue generated from these applications of AI consists of an annual application maintenance fee which will be recognized ratably over the year, plus fees for the design, development, testing and incorporation of new algorithms into the system which will be recognized upon completion of each deliverable. Multiple Elements Arrangements with customers may involve multiple elements including project revenue and maintenance services in our Intelligent 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 elements 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 element arrangement is as follows: Each element is accounted for separately when each element has value to the customer on a standalone basis and there is Company specific objective evidence of 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 element is recognized using the applicable criteria under GAAP as discussed above for elements sold in non-multiple element 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 multiple element 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 element arrangements with Company customers qualify as separate units of account for revenue recognition purposes.
Deferred Revenue	Deferred Revenue Deferred revenues represent billings or cash received in excess of revenue recognizable on service agreements that are not accounted for under the percentage of completion method. At December 31, 2021 and 2020, the balance of deferred revenue was $ 596,673 315,370 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. Turnkey, engineered projects; b. Associated maintenance and support services; c. Licensing and professional services related to auditing of data center assets; d. Predetermined algorithms to provide important operating information to the users of our systems. 2. We currently operate in North America including the United States, Mexico and Canada. 3. Our customers include rail transportation, commercial, petrochemical, government, banking and IT suppliers. 4. Our 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 two to three months in length; and b. Maintenance and support contracts ranging from one to five years in length. 5. Our goods and services are transferred over time. Quantitative: For the Year Ended December 31, 2021 Schedule of Disaggregation of Revenue Quantitative Segments Rail Commercial Petrochemical Government Banking/Other IT Artificial Total Primary Geographical Markets North America $ 6,883,670 $ 213,517 $ (867 ) $ 314,030 $ 23,340 $ 134,717 $ 691,510 $ 8,259,917 Major Goods and Service Lines Turnkey Projects $ 5,255,491 $ 27,831 $ — $ 233,145 $ 1,537 $ — $ — $ 5,518,004 Maintenance & Support 1,628,179 185,686 (867 ) 80,885 21,803 — 341,915 2,257,601 Data Center Auditing Services — — — — — 131,537 — 131,537 Software License — — — — — 3,180 — 3,180 Algorithms — — — — — — 349,595 349,595 $ 6,883,670 $ 213,517 $ (867 ) $ 314,030 $ 23,340 $ 134,717 $ 691,510 $ 8,259,917 Timing of Revenue Recognition Goods transferred over time $ 5,255,491 $ 27,831 $ — $ 233,145 $ 1,537 $ 131,537 $ 349,595 $ 5,999,136 Services transferred over time 1,628,179 185,686 (867 ) 80,885 21,803 3,180 341,915 2,260,781 $ 6,883,670 $ 213,517 $ (867 ) $ 314,030 $ 23,340 $ 134,717 $ 691,510 $ 8,259,917 Quantitative: For the Year Ended December 31, 2020 Segments Rail Commercial Petrochemical Government Banking IT Artificial Total Primary Geographical Markets North America $ 5,558,405 $ 298,705 $ 23,951 $ 687,293 $ 188,819 $ 273,604 $ 1,008,671 $ 8,039,448 Major Goods and Service Lines Turnkey Projects $ 4,131,155 $ 59,616 $ 33,363 $ 599,481 $ 132,515 $ — $ — $ 4,956,130 Maintenance & Support 1,427,250 239,089 (9,412 ) 87,812 56,304 — — 1,801,043 Data Center Auditing Services — — — — — 266,449 — 266,449 Software License — — — — — 7,155 — 7,155 Algorithms — — — — — — 1,008,671 1,008,671 $ 5,558,405 $ 298,705 $ 23,951 $ 687,293 $ 188,819 $ 273,604 $ 1,008,671 $ 8,039,448 Timing of Revenue Recognition Goods transferred over time $ 4,131,155 $ 59,616 $ 33,363 $ 599,481 $ 132,515 $ 273,604 $ 1,008,671 $ 6,238,405 Services transferred over time 1,427,250 239,089 (9,412 ) 87,812 56,304 — — 1,801,043 $ 5,558,405 $ 298,705 $ 23,951 $ 687,293 $ 188,819 $ 273,604 $ 1,008,671 $ 8,039,448
Advertising	Advertising The Company expenses the cost of advertising. During the years ended December 31, 2021 and 2020, there were no
Stock Based Compensation	Stock Based Compensation The Company accounts for employee stock-based compensation in accordance with ASC 718-10, “ Share-Based Payment Determining Fair Value Under ASC 718-10 The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing formula. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. The Company’s determination of fair value using an option-pricing model is affected by the stock price as well as assumptions regarding the number of highly subjective variables. The Company estimates volatility based upon the historical stock price of the Company and estimates the expected term for employee 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. 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 2018, 2019 and 2020 remain open for potential audit.
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic earnings per share (EPS) are computed by dividing 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 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, 2021, there was an aggregate of 1,376,466 431,266 121,571 454,546
Leases	Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842). The updated guidance requires lessees to recognize right-of-use (“ROU”) assets and lease liabilities for most operating leases. In addition, the updated guidance requires that lessors separate lease and non-lease components in a contract in accordance with the new revenue guidance in ASC 606. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018. The Company adopted this guidance effective January 1, 2019, using the modified retrospective method, whereby a cumulative effect adjustment was made as of the date of initial application. The Company also applied the package of practical expedients to leases that commenced before the effective date whereby the Company elected to not reassess the following: (i) whether any expired or existing contracts contain leases and (ii) initial direct costs for any existing leases. 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. The adoption of ASU 2016-02 did not materially affect our consolidated statement of operations or our consolidated statement of cash flows. For contracts entered into on or after the effective date, 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 it has 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 administrative 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. We plan to adopt this pronouncement for our fiscal year beginning January 1, 2022, and we do not expect it to have a material effect on our 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 will be applied prospectively to all modifications that occur after the initial date of adoption. We plan to adopt this pronouncement for our fiscal year beginning January 1, 2022, and we do not expect it to have a material effect on our consolidated financial statements. 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.

NATURE OF OPERATIONS AND SUMM_3

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Schedule of Reclassifications	Schedule of Reclassifications Before Reclassification After Reclassification For the Year Ended For the Year Ended December 31, December 31, 2020 2020 REVENUES: REVENUES: Technology systems $ 4,956,130 Technology systems $ 5,964,801 Technical support 1,801,043 Services and consulting 2,074,647 Consulting services 273,604 — — AI technologies 1,008,671 — — Total Revenue 8,039,448 Total Revenue 8,039,448 COST OF REVENUES: COST OF REVENUES: Technology systems 3,665,493 Technology systems 5,642,880 Technical support 1,109,741 Services and consulting 1,139,357 Consulting services 117,004 Overhead 1,021,375 AI technologies 360,817 — — Total Cost of Revenues 5,253,055 Total Cost of Revenues 7,803,612 GROSS MARGIN 2,786,393 GROSS MARGIN 235,836 OPERATING EXPENSES: OPERATING EXPENSES: Sales and marketing 717,809 Sales and marketing 717,809 Engineering 1,358,925 Research and development 102,219 Research and development 1,022,188 Administration 6,050,236 Administration 5,011,913 — — AI technologies 1,309,986 — — Total Operating Expenses 9,420,821 Total Operating Expenses 6,870,264 LOSS FROM OPERATIONS $ (6,634,428 ) LOSS FROM OPERATIONS $ (6,634,428 )
Schedule of Disaggregation of Revenue Quantitative	Schedule of Disaggregation of Revenue Quantitative Segments Rail Commercial Petrochemical Government Banking/Other IT Artificial Total Primary Geographical Markets North America $ 6,883,670 $ 213,517 $ (867 ) $ 314,030 $ 23,340 $ 134,717 $ 691,510 $ 8,259,917 Major Goods and Service Lines Turnkey Projects $ 5,255,491 $ 27,831 $ — $ 233,145 $ 1,537 $ — $ — $ 5,518,004 Maintenance & Support 1,628,179 185,686 (867 ) 80,885 21,803 — 341,915 2,257,601 Data Center Auditing Services — — — — — 131,537 — 131,537 Software License — — — — — 3,180 — 3,180 Algorithms — — — — — — 349,595 349,595 $ 6,883,670 $ 213,517 $ (867 ) $ 314,030 $ 23,340 $ 134,717 $ 691,510 $ 8,259,917 Timing of Revenue Recognition Goods transferred over time $ 5,255,491 $ 27,831 $ — $ 233,145 $ 1,537 $ 131,537 $ 349,595 $ 5,999,136 Services transferred over time 1,628,179 185,686 (867 ) 80,885 21,803 3,180 341,915 2,260,781 $ 6,883,670 $ 213,517 $ (867 ) $ 314,030 $ 23,340 $ 134,717 $ 691,510 $ 8,259,917 Quantitative: For the Year Ended December 31, 2020 Segments Rail Commercial Petrochemical Government Banking IT Artificial Total Primary Geographical Markets North America $ 5,558,405 $ 298,705 $ 23,951 $ 687,293 $ 188,819 $ 273,604 $ 1,008,671 $ 8,039,448 Major Goods and Service Lines Turnkey Projects $ 4,131,155 $ 59,616 $ 33,363 $ 599,481 $ 132,515 $ — $ — $ 4,956,130 Maintenance & Support 1,427,250 239,089 (9,412 ) 87,812 56,304 — — 1,801,043 Data Center Auditing Services — — — — — 266,449 — 266,449 Software License — — — — — 7,155 — 7,155 Algorithms — — — — — — 1,008,671 1,008,671 $ 5,558,405 $ 298,705 $ 23,951 $ 687,293 $ 188,819 $ 273,604 $ 1,008,671 $ 8,039,448 Timing of Revenue Recognition Goods transferred over time $ 4,131,155 $ 59,616 $ 33,363 $ 599,481 $ 132,515 $ 273,604 $ 1,008,671 $ 6,238,405 Services transferred over time 1,427,250 239,089 (9,412 ) 87,812 56,304 — — 1,801,043 $ 5,558,405 $ 298,705 $ 23,951 $ 687,293 $ 188,819 $ 273,604 $ 1,008,671 $ 8,039,448

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
Schedule of Accounts Receivable	Schedule of Accounts Receivable December 31, December 31, 2021 2020 Accounts receivable $ 1,738,543 $ 1,244,876 Allowance for doubtful accounts — — Accounts Receivable, Net $ 1,738,543 $ 1,244,876

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Major classes of property and equipment	Major classes of property and equipment December 31, December 31, 2021 2020 Furniture, fixtures and equipment $ 1,264,001 $ 1,569,328 Less: Accumulated depreciation (660,748 ) (1,227,148 ) Furniture, fixtures and equipment, Net $ 603,253 $ 342,180

PATENTS AND TRADEMARKS (Tables)

PATENTS AND TRADEMARKS (Tables)	12 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Patents and trademarks	Patents and trademarks 2021 2020 Patents and trademarks $ 309,205 $ 301,770 Less: Accumulated amortization (242,723 ) (237,355 ) Patents and trademarks, Net $ 66,482 $ 64,415

SOFTWARE DEVELOPMENT COSTS (Tab

SOFTWARE DEVELOPMENT COSTS (Tables)	12 Months Ended
	Dec. 31, 2021
Research and Development [Abstract]
Schedule of Software Development Costs	Schedule of Software Development Costs December 31, December 31, 2021 2020 Software development costs $ 60,000 $ 60,000 Less: Accumulated amortization (60,000 ) (60,000 ) Software Development Costs, net $ — $ —

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
Notes Payable - Financing Agreements	Notes Payable - Financing Agreements December 31, 2021 December 31, 2020 Notes Payable Principal Interest Principal Interest Third Party - Insurance Note 1 $ 22,266 7.75 % $ 23,327 7.75 % Third Party - Insurance Note 2 12,667 6.24 % 10,457 5.26 % Third Party - Insurance Note 3 17,570 — 9,158 — Third Party - Insurance Note 4 — — — — Total $ 52,503 $ 42,942
Schedule of Future Minimum Lease Payments Under Finance Lease	Schedule of Future Minimum Lease Payments Under Finance Lease As of December 31, Amount 2022 86,735 2023 23,515 Total minimum equipment financing payments $ 110,250 Less: interest (7,064 ) Total equipment financing at December 31, 2021 $ 103,186 Less: current portion of equipment financing (80,335 ) Long-term portion of equipment financing $ 22,851
Schedule of Notes Payable -PPP Loan	Schedule of Notes Payable -PPP Loan December 31, 2021 December 31, 2020 Payable To Principal Interest Principal Interest PPP loan $ — $ 1,410,270 1 % Total — 1,410,270 Less current portion — (627,465 ) Long-term portion $ — $ 782,805

CONTRACT ACCOUNTING (Tables)

CONTRACT ACCOUNTING (Tables)	12 Months Ended
	Dec. 31, 2021
Contractors [Abstract]
Schedule of contract billings	Schedule of contract billings 2021 2020 Costs and estimated earnings recognized $ 5,266,930 $ 4,152,850 Less: Billings or cash received (5,263,481 ) (4,050,392 ) Contract Assets $ 3,449 $ 102,458 Contract Liabilities Contract liabilities on uncompleted contracts represent billings and/or cash received that exceed accumulated revenues recognized on uncompleted contracts accounted for under the percentage of completion contract method. At December 31, 2021 and 2020, contract liabilities on uncompleted contracts consisted of the following: 2021 2020 Billings and/or cash receipts on uncompleted contracts $ 4,473,726 $ 2,978,007 Less: Costs and estimated earnings recognized (3,041,088 ) (2,268,454 ) Contract Liabilities $ 1,232,638 $ 709,553

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Schedule of supplemental information related to leases	Schedule of supplemental information related to leases Year Ended December 31, 2021 2020 Lease cost: Operating lease cost $ 414,085 $ 279,975 Short-term lease cost 21,628 21,341 Other information: Operating cash outflow used for operating leases 285,959 344,307 Weighted average discount rate 9.0 % 12.0 % Weighted average remaining lease term 10.4 0.8
Future minimum lease payments for non-cancelable operating leases	Future minimum lease payments for non-cancelable operating leases As of December 31, 2021 Fiscal year: 2022 $ 315,302 2023 696,869 2024 779,087 2025 798,556 2026 818,518 Thereafter 4,803,472 Total undiscounted future minimum lease payments 8,211,804 Less: Impact of discounting (3,156,719 ) Total present value of operating lease liabilities 5,055,085 Current portion (315,302 ) Operating lease liability, less current portion $ 4,739,783

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Difference between income taxes at effective statutory rate and provision for income taxes	Difference between income taxes at effective statutory rate and provision for income taxes Years Ended December 31, 2021 2020 Income tax benefit at U.S. statutory rate of 21% $ (1,261,869 ) $ (1,416,961 ) State income taxes (216,321 ) (242,908 ) Non-deductible expenses 64,553 135,152 Change in valuation allowance 1,413,637 1,524,717 Total provision for income tax $ — $ —
Net deferred tax assets	Net deferred tax assets December 31, 2021 2020 Deferred Tax Assets: Net operating loss carryforward $ 8,247,427 $ 6,807,482 Intangible assets 5,553 31,841 Allowance for bad debt — — 8,252,960 6,839,323 Valuation allowance (8,252,960 ) (6,839,323 ) Net deferred tax assets $ — $ —

COMMON STOCK OPTIONS AND WARR_2

COMMON STOCK OPTIONS AND WARRANTS (Tables)	12 Months Ended
	Dec. 31, 2021
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, 2019 163,010 $ 14.00 3.4 — Granted 450,290 $ 5.06 4.4 — Forfeited (161,402 ) $ 14.00 — — Outstanding at December 31, 2020 451,898 $ 5.06 4.4 7,200 Exercisable at December 31, 2020 212,832 $ 5.76 4.2 — Outstanding at December 31, 2020 451,898 $ 5.06 4.2 — Granted 20,000 $ 4.32 4.0 — Exercised/Forfeited (40,632 ) $ 14.00 — — Outstanding at December 31, 2021 431,266 $ 4.98 3.4 $197,506 312,310 $ 5.25 3.4 —
Schedule of Fair Value Assumptions	Schedule of Fair Value Assumptions For the Years Ended 2021 2020 Risk free interest rate 0.18 0.18 0.26 Expected term in years 3.50 2.50 3.50 Dividend yield — — Volatility of common stock 91.6 68.00 86.24 Estimated annual forfeitures — —
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, 2019 1,521,250 $ 8.78 3.9 — Warrants expired, forfeited, cancelled or exercised (23,116 ) Warrants issued 89,419 $ 9.02 2.2 — Outstanding at December 31, 2020 1,587,553 $ 8.62 2.0 — Exercisable at December 31, 2020 1,587,553 $ 8.69 2.0 — Outstanding at December 31, 2020 1,587,553 $ 8.62 2.0 — Warrants expired, forfeited, cancelled or exercised (232,517 ) Warrants issued 21,430 $ 7.70 1.9 — Outstanding at December 31, 2021 1,376,466 $ 8.18 1.9 — Exercisable at December 31, 2021 1,376,466 $ 8.18 1.9 —

NATURE OF OPERATIONS AND SUMM_4

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Schedule of Reclassifications) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Product Information [Line Items]
Total Revenues	$ 8,259,917	$ 8,039,448
Total Cost of Revenues	10,819,087	7,803,612
GROSS PROFIT	(2,559,170)	235,836
Research and development	251,563	102,219
Total Operating Expenses	4,897,781	6,870,264
LOSS FROM OPERATIONS	(7,456,951)	(6,634,428)
Product [Member]
Product Information [Line Items]
Total Revenues	5,871,666	5,964,801
Total Cost of Revenues	7,151,276	5,642,880
Service, Other [Member]
Product Information [Line Items]
Total Revenues	2,388,251	2,074,647
Total Cost of Revenues	1,369,985	1,139,357
Overhead [Member]
Product Information [Line Items]
Total Cost of Revenues	$ 2,297,826	1,021,375
Previously Reported [Member]
Product Information [Line Items]
Total Revenues		8,039,448
Total Cost of Revenues		5,253,055
GROSS PROFIT		2,786,393
Sales and marketing		717,809
Engineering		1,358,925
Research and development		1,022,188
Administration		5,011,913
AI technologies		1,309,986
Total Operating Expenses		9,420,821
LOSS FROM OPERATIONS		(6,634,428)
Previously Reported [Member] | Product [Member]
Product Information [Line Items]
Total Revenues		4,956,130
Total Cost of Revenues		3,665,493
Previously Reported [Member] | Technology Service [Member]
Product Information [Line Items]
Total Revenues		1,801,043
Total Cost of Revenues		1,109,741
Previously Reported [Member] | Service, Other [Member]
Product Information [Line Items]
Total Revenues		273,604
Total Cost of Revenues		117,004
Previously Reported [Member] | A I Technologies [Member]
Product Information [Line Items]
Total Revenues		1,008,671
Total Cost of Revenues		360,817
Revision of Prior Period, Adjustment [Member]
Product Information [Line Items]
Total Revenues		8,039,448
Total Cost of Revenues		7,803,612
GROSS PROFIT		235,836
Sales and marketing		717,809
Research and development		102,219
Administration		6,050,236
Total Operating Expenses		6,870,264
LOSS FROM OPERATIONS		(6,634,428)
Revision of Prior Period, Adjustment [Member] | Product [Member]
Product Information [Line Items]
Total Revenues		5,964,801
Total Cost of Revenues		5,642,880
Revision of Prior Period, Adjustment [Member] | Technology Service [Member]
Product Information [Line Items]
Total Revenues		2,074,647
Revision of Prior Period, Adjustment [Member] | Service, Other [Member]
Product Information [Line Items]
Total Cost of Revenues		1,139,357
Revision of Prior Period, Adjustment [Member] | Overhead [Member]
Product Information [Line Items]
Total Cost of Revenues		$ 1,021,375

NATURE OF OPERATIONS AND SUMM_5

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Disaggregation of Revenue) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Product Information [Line Items]
Revenue	$ 8,259,917	$ 8,039,448
Goods Transferred Over Time [Member]
Product Information [Line Items]
Revenue	5,999,136	6,238,405
Services Transferred Over Time [Member]
Product Information [Line Items]
Revenue	2,260,781	1,801,043
Turnkey Projects [Member]
Product Information [Line Items]
Revenue	5,518,004	4,956,130
Maintenance And Support [Member]
Product Information [Line Items]
Revenue	2,257,601	1,801,043
Data Center Auditing Services [Member]
Product Information [Line Items]
Revenue	131,537	266,449
Software License [Member]
Product Information [Line Items]
Revenue	3,180	7,155
Algorithms [Member]
Product Information [Line Items]
Revenue	349,595	1,008,671
Rail [Member]
Product Information [Line Items]
Revenue	6,883,670	5,558,405
Rail [Member] | Goods Transferred Over Time [Member]
Product Information [Line Items]
Revenue	5,255,491	4,131,155
Rail [Member] | Services Transferred Over Time [Member]
Product Information [Line Items]
Revenue	1,628,179	1,427,250
Rail [Member] | Turnkey Projects [Member]
Product Information [Line Items]
Revenue	5,255,491	4,131,155
Rail [Member] | Maintenance And Support [Member]
Product Information [Line Items]
Revenue	1,628,179	1,427,250
Rail [Member] | Data Center Auditing Services [Member]
Product Information [Line Items]
Revenue
Rail [Member] | Software License [Member]
Product Information [Line Items]
Revenue
Rail [Member] | Algorithms [Member]
Product Information [Line Items]
Revenue
Commercial [Member]
Product Information [Line Items]
Revenue	213,517	298,705
Commercial [Member] | Goods Transferred Over Time [Member]
Product Information [Line Items]
Revenue	27,831	59,616
Commercial [Member] | Services Transferred Over Time [Member]
Product Information [Line Items]
Revenue	185,686	239,089
Commercial [Member] | Turnkey Projects [Member]
Product Information [Line Items]
Revenue	27,831	59,616
Commercial [Member] | Maintenance And Support [Member]
Product Information [Line Items]
Revenue	185,686	239,089
Commercial [Member] | Data Center Auditing Services [Member]
Product Information [Line Items]
Revenue
Commercial [Member] | Software License [Member]
Product Information [Line Items]
Revenue
Commercial [Member] | Algorithms [Member]
Product Information [Line Items]
Revenue
Petrochemical [Member]
Product Information [Line Items]
Revenue	(867)	23,951
Petrochemical [Member] | Goods Transferred Over Time [Member]
Product Information [Line Items]
Revenue		33,363
Petrochemical [Member] | Services Transferred Over Time [Member]
Product Information [Line Items]
Revenue	(867)	(9,412)
Petrochemical [Member] | Turnkey Projects [Member]
Product Information [Line Items]
Revenue		33,363
Petrochemical [Member] | Maintenance And Support [Member]
Product Information [Line Items]
Revenue	(867)	(9,412)
Petrochemical [Member] | Data Center Auditing Services [Member]
Product Information [Line Items]
Revenue
Petrochemical [Member] | Software License [Member]
Product Information [Line Items]
Revenue
Petrochemical [Member] | Algorithms [Member]
Product Information [Line Items]
Revenue
Government [Member]
Product Information [Line Items]
Revenue	314,030	687,293
Government [Member] | Goods Transferred Over Time [Member]
Product Information [Line Items]
Revenue	233,145	599,481
Government [Member] | Services Transferred Over Time [Member]
Product Information [Line Items]
Revenue	80,885	87,812
Government [Member] | Turnkey Projects [Member]
Product Information [Line Items]
Revenue	233,145	599,481
Government [Member] | Maintenance And Support [Member]
Product Information [Line Items]
Revenue	80,885	87,812
Government [Member] | Data Center Auditing Services [Member]
Product Information [Line Items]
Revenue
Government [Member] | Software License [Member]
Product Information [Line Items]
Revenue
Government [Member] | Algorithms [Member]
Product Information [Line Items]
Revenue
Banking/Other [Member]
Product Information [Line Items]
Revenue	23,340	188,819
Banking/Other [Member] | Goods Transferred Over Time [Member]
Product Information [Line Items]
Revenue	1,537	132,515
Banking/Other [Member] | Services Transferred Over Time [Member]
Product Information [Line Items]
Revenue	21,803	56,304
Banking/Other [Member] | Turnkey Projects [Member]
Product Information [Line Items]
Revenue	1,537	132,515
Banking/Other [Member] | Maintenance And Support [Member]
Product Information [Line Items]
Revenue	21,803	56,304
Banking/Other [Member] | Data Center Auditing Services [Member]
Product Information [Line Items]
Revenue
Banking/Other [Member] | Software License [Member]
Product Information [Line Items]
Revenue
Banking/Other [Member] | Algorithms [Member]
Product Information [Line Items]
Revenue
It Suppliers [Member]
Product Information [Line Items]
Revenue	134,717	273,604
It Suppliers [Member] | Goods Transferred Over Time [Member]
Product Information [Line Items]
Revenue	131,537	273,604
It Suppliers [Member] | Services Transferred Over Time [Member]
Product Information [Line Items]
Revenue	3,180
It Suppliers [Member] | Turnkey Projects [Member]
Product Information [Line Items]
Revenue
It Suppliers [Member] | Maintenance And Support [Member]
Product Information [Line Items]
Revenue
It Suppliers [Member] | Data Center Auditing Services [Member]
Product Information [Line Items]
Revenue	131,537	266,449
It Suppliers [Member] | Software License [Member]
Product Information [Line Items]
Revenue	3,180	7,155
It Suppliers [Member] | Algorithms [Member]
Product Information [Line Items]
Revenue
Artificial Intelligence [Member]
Product Information [Line Items]
Revenue	691,510	1,008,671
Artificial Intelligence [Member] | Goods Transferred Over Time [Member]
Product Information [Line Items]
Revenue	349,595	1,008,671
Artificial Intelligence [Member] | Services Transferred Over Time [Member]
Product Information [Line Items]
Revenue	341,915
Artificial Intelligence [Member] | Turnkey Projects [Member]
Product Information [Line Items]
Revenue
Artificial Intelligence [Member] | Maintenance And Support [Member]
Product Information [Line Items]
Revenue	341,915
Artificial Intelligence [Member] | Data Center Auditing Services [Member]
Product Information [Line Items]
Revenue
Artificial Intelligence [Member] | Software License [Member]
Product Information [Line Items]
Revenue
Artificial Intelligence [Member] | Algorithms [Member]
Product Information [Line Items]
Revenue	349,595	1,008,671
North America [Member]
Product Information [Line Items]
Revenue	8,259,917	8,039,448
North America [Member] | Rail [Member]
Product Information [Line Items]
Revenue	6,883,670	5,558,405
North America [Member] | Commercial [Member]
Product Information [Line Items]
Revenue	213,517	298,705
North America [Member] | Petrochemical [Member]
Product Information [Line Items]
Revenue	(867)	23,951
North America [Member] | Government [Member]
Product Information [Line Items]
Revenue	314,030	687,293
North America [Member] | Banking/Other [Member]
Product Information [Line Items]
Revenue	23,340	188,819
North America [Member] | It Suppliers [Member]
Product Information [Line Items]
Revenue	134,717	273,604
North America [Member] | Artificial Intelligence [Member]
Product Information [Line Items]
Revenue	$ 691,510	$ 1,008,671

NATURE OF OPERATIONS AND SUMM_6

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
	Jan. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Product Information [Line Items]
Reverse split	1-for-14
Cash, Uninsured Amount		$ 656,000
Concentration of Credit Risk		21.00%
Product warranty Period		90 days
Deferred Revenue		$ 596,673	$ 315,370
Advertising cost		$ 0	$ 0
Number of Warrants Outstanding		1,376,466
Series B Convertible Preferred Stock [Member]
Product Information [Line Items]
Number of Shares upon Conversion		121,571
Series C Convertible Preferred Stock [Member]
Product Information [Line Items]
Number of Shares upon Conversion		454,546
Share-based Payment Arrangement, Option [Member]
Product Information [Line Items]
Number of incentive stock options		431,266	451,898	163,010
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
UNITED STATES
Product Information [Line Items]
Concentration of Credit Risk		86.00%	51.00%
Customer 1 [Member] | Revenue Benchmark [Member]
Product Information [Line Items]
Concentration of Credit Risk		83.00%	45.00%
Customer 1 [Member] | Accounts Receivable [Member]
Product Information [Line Items]
Concentration of Credit Risk		81.00%	56.00%
Customer 2 [Member] | Revenue Benchmark [Member]
Product Information [Line Items]
Concentration of Credit Risk			23.00%
Customer 2 [Member] | Accounts Receivable [Member]
Product Information [Line Items]
Concentration of Credit Risk		10.00%	30.00%
Vendor One [Member] | Accounts Payable [Member]
Product Information [Line Items]
Concentration of Credit Risk		14.00%	36.00%
Supplier Concentration Risk One [Member]
Product Information [Line Items]
Concentration of Credit Risk			11.00%

LIQUIDITY (Details Narrative)

LIQUIDITY (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income	$ 6,008,901	$ 6,747,435
Net cash used in operations	6,579,378	4,231,439
Working capital deficit	651,381
Accumulated deficit	45,497,051	$ 39,488,150
Secured loan	1,410,270
Net proceeds bebt	$ 5,500,000

ACCOUNTS RECEIVABLE (Details- S

ACCOUNTS RECEIVABLE (Details- Schedule of Accounts Receivable) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Accounts receivable	$ 1,738,543	$ 1,244,876
Allowance for doubtful accounts
Accounts Receivable, Net	$ 1,738,543	$ 1,244,876

ACCOUNTS RECEIVABLE (Details Na

ACCOUNTS RECEIVABLE (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Recovery of bad debt expense		$ 76,046
Bad debt expense	$ (76,046)	$ 3,217

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details-Schedule of major classes of property and equipment) Details - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Furniture, fixtures and equipment	$ 1,264,001	$ 1,569,328
Less: Accumulated depreciation	(660,748)	(1,227,148)
Furniture, fixtures and equipment, Net	$ 603,253	$ 342,180

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation	$ 269,978	$ 197,146

PATENTS AND TRADEMARKS (Details

PATENTS AND TRADEMARKS (Details - Schedule of patents and trademarks) (Details - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Patents and trademarks	$ 309,205	$ 301,770
Less: Accumulated amortization	(242,723)	(237,355)
Patents and trademarks, Net	$ 66,482	$ 64,415

PATENTS AND TRADEMARKS (Detai_2

PATENTS AND TRADEMARKS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of patents	$ 5,368	$ 5,368

SOFTWARE DEVELOPMENT COSTS (Det

SOFTWARE DEVELOPMENT COSTS (Details - Schedule of Software Development Costs) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Research and Development [Abstract]
Software development costs	$ 60,000	$ 60,000
Less: Accumulated amortization	(60,000)	(60,000)
Software Development Costs, net

SOFTWARE DEVELOPMENT COSTS (D_2

SOFTWARE DEVELOPMENT COSTS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2018
Research and Development [Abstract]
Capitalized development of new software products			$ 60,000
Amortization expense of software development costs	$ 20,000	$ 20,000

DEBT (Details - Schedule of Not

DEBT (Details - Schedule of Notes Payable - Financing Agreements) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Notes Payable, Principal	$ 52,503	$ 42,942
Third Party Insurance Note One [Member]
Short-term Debt [Line Items]
Notes Payable, Principal	$ 22,266	$ 23,327
Notes Payable, Interest	7.75%	7.75%
Third Party Insurance Note Two [Member]
Short-term Debt [Line Items]
Notes Payable, Principal	$ 12,667	$ 10,457
Notes Payable, Interest	6.24%	5.26%
Third Party Insurance Note Three [Member]
Short-term Debt [Line Items]
Notes Payable, Principal	$ 17,570	$ 9,158
Third Party Insurance Note Four [Member]
Short-term Debt [Line Items]
Notes Payable, Principal	$ 0	$ 0

DEBT (Details - Schedule of N_2

DEBT (Details - Schedule of Notes Payable - Related Parties) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
2022	$ 86,735
2023	23,515
Total minimum equipment financing payments	110,250
Less:  interest	(7,064)
Total equipment financing at December 31, 2021	103,186
Less: current portion of equipment financing	(80,335)	$ (89,620)
Long-term portion of equipment financing	$ 22,851	$ 103,184

DEBT (Details - Schedule of N_3

DEBT (Details - Schedule of Notes Payable - PPP Loan) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Total		$ 1,410,270
Less current portion		(627,465)
Long term portion		782,805
P P P Loan [Member] | Related Party One [Member]
Short-term Debt [Line Items]
Total		$ 1,410,270
Interest Rate		1.00%

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($)	Apr. 15, 2021	Apr. 15, 2020	Feb. 03, 2020	Sep. 15, 2021	Dec. 23, 2020	May 22, 2020	Apr. 23, 2020	Aug. 26, 2019	Dec. 31, 2021	Feb. 03, 2021	Dec. 31, 2020	Sep. 15, 2020
Short-term Debt [Line Items]
Notes payable outstanding balance										$ 215,654
Promissory Note [Member] | Paycheck Protection Program [Member]
Short-term Debt [Line Items]
Debt Instrument, Face Amount							$ 1,410,270
Debt Instrument, Interest Rate During Period							1.00%
Third Party Insurance Note One [Member]
Short-term Debt [Line Items]
Notes payable outstanding balance					$ 23,327				$ 22,266		$ 23,327
Interest rate					7.75%
Monthly installments of principal and interest					$ 2,416
Third Party Insurance Note Two [Member]
Short-term Debt [Line Items]
Notes payable outstanding balance	$ 62,041	$ 51,379			22,266				12,667		10,457
Interest rate	6.24%	5.26%
Monthly installments of principal and interest	$ 6,383	$ 5,263			$ 2,104
Third Party Insurance Note Three [Member]
Short-term Debt [Line Items]
Notes payable outstanding balance				$ 19,965					17,570		9,158	$ 13,796
Third Party Insurance Note Four [Member]
Short-term Debt [Line Items]
Notes payable outstanding balance			$ 165,375						0		0
Monthly installments of principal and interest			$ 13,726	$ 1,997					17,899
Equipment Financing [Member]
Short-term Debt [Line Items]
Notes payable outstanding balance						$ 121,637		$ 147,810	103,186		192,804
Interest rate						9.90%		12.72%
Monthly installments of principal and interest						$ 3,919		$ 4,963
Notes Payable [Member]
Short-term Debt [Line Items]
Notes payable outstanding balance									$ 0		$ 1,410,270

LINE OF CREDIT (Details Narrati

LINE OF CREDIT (Details Narrative) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Apr. 02, 2015
Line Of Credit Wells Fargo Bank [Member]
Short-term Debt [Line Items]
Line of credit	$ 0	$ 0	$ 40,000

CONTRACT ACCOUNTING (Details -

CONTRACT ACCOUNTING (Details - Schedule of costs and estimated earnings) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Contractors [Abstract]
Costs and estimated earnings recognized	$ 5,266,930	$ 4,152,850
Less: Billings or cash received	(5,263,481)	(4,050,392)
Contract Assets	3,449	102,458
Billings and/or cash receipts on uncompleted contracts	4,473,726	2,978,007
Less: Costs and estimated earnings recognized	(3,041,088)	(2,268,454)
Contract Liabilities	$ 1,232,638	$ 709,553

DEFERRED COMPENSATION (Details

DEFERRED COMPENSATION (Details Narrative) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Compensation Related Costs [Abstract]
Accrued deferred compensation	$ 505,896	$ 797,042

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details - Schedule of Supplemental Information Related Leases) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Operating lease cost	$ 414,085	$ 279,975
Short term lease Cost	21,628	21,341
Operating cash outflow used for operating leases	$ 285,959	$ 344,307
Weighted average discount rate	9.00%	12.00%
Weighted average remaining lease term	10 years 4 months 24 days	9 months 18 days

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details - Schedule of Future Minimum Lease Payments) - USD ($)	Dec. 31, 2021	Nov. 24, 2021
Commitments and Contingencies Disclosure [Abstract]
2022	$ 315,302
2023	696,869
2024	779,087
2025	798,556
2026	818,518
Thereafter	4,803,472
Total undiscounted future minimum lease payments	8,211,804
Less: Impact of discounting	(3,156,719)
Total present value of operating lease liabilities	5,055,085	$ 4,980,104
Current portion	(315,302)
Operating lease liability, less current portion	$ 4,739,783

COMMITMENTS AND CONTINGENCIES_4

COMMITMENTS AND CONTINGENCIES (Details Narrative)	Jul. 10, 2020USD ($)shares	Apr. 03, 2019ft²	Jun. 01, 2018ft²	Jul. 26, 2021USD ($)ft²	Apr. 30, 2018USD ($)	Dec. 31, 2021USD ($)ft²	Dec. 31, 2020USD ($)ft²	Nov. 24, 2021USD ($)	Mar. 02, 2021USD ($)
Loss Contingencies [Line Items]
Payroll taxes payable						$ 0	$ 3,146
Area of Lease | ft²				40,000		40,000	14,603
Operating lease liability						$ 5,055,085		$ 4,980,104
Rentable Space | ft²				30,000
Security Deposit payment				$ 600,000
Remaining lease term						10 years 4 months 24 days
Accrued Liabilities, Current						$ 618,093	$ 1,038,092
Chief Executive Officer [Member]
Loss Contingencies [Line Items]
Annual salary					$ 249,260
Annual Car allowance					$ 18,000
Percentage of gross revenue					1.00%
Compensation to be paid in addition to base salary in separation payments	$ 75,000
One-time charge which will be amortized in equal amounts over the 36-month term of the separation agreement	747,788
Lump sum payment owed under separation agreement									$ 124,631
Accrued Liabilities, Current						$ 479,000
Current life insurance	$ 1,200
Unvested options amount | shares	50,358
Value of unvested options exercisable	$ 95,127
Legal Fees	$ 17,000
Minimum [Member]
Loss Contingencies [Line Items]
Area of Lease | ft²		8,308
Minimum [Member] | FLORIDA
Loss Contingencies [Line Items]
Area of Lease | ft²			4,400
Maximum [Member]
Loss Contingencies [Line Items]
Area of Lease | ft²		10,203

INCOME TAXES (Details - Schedul

INCOME TAXES (Details - Schedule of provision for income taxes) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income tax benefit at U.S. statutory rate of 21%	$ (1,261,869)	$ (1,416,961)
State income taxes	(216,321)	(242,908)
Non-deductible expenses	64,553	135,152
Change in valuation allowance	1,413,637	1,524,717
Total provision for income tax	$ 0	$ 0

INCOME TAXES (Details - Sched_2

INCOME TAXES (Details - Schedule of deferred tax assets) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Net operating loss carryforward	$ 8,247,427	$ 6,807,482
Intangible assets	5,553	31,841
Allowance for bad debt
Gross deferred tax assets	8,252,960	6,839,323
Valuation allowance	(8,252,960)	(6,839,323)
Net deferred tax assets

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Gross operating loss carry forward	$ 33,522,769	$ 27,672,692
Increase in tax asset valuation allowance	1,413,637
Potential tax benefit arising from net operating loss carryforward	4,357,876
Potential tax benefit arising from net operating loss carryforward within annual usage limitations	$ 3,848,467

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)	Nov. 05, 2021	Aug. 05, 2021	Nov. 24, 2017	Feb. 26, 2021	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2018	Dec. 31, 2017
Class of Stock [Line Items]
Shares available for grant										1,000,000
Preferred stock authorized										10,000,000	10,000,000
Common stock issued for services										$ 144,166	$ 52,500
Total compensation cost for stock options										$ 95,166
Vesting term										1 year 6 months
Treasury stock shares										1,324	1,324		235
Treasury stock										$ 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
Series B Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Conversion of stock converted value										$ 854,000
Conversion of stock shares converted										122,000
Common Stock [Member]
Class of Stock [Line Items]
Conversion of stock converted value										$ 1,500,000
Common stock issued for services, shares											11,112
Common stock issued for services										$ 25	$ 12
Conversion of stock shares converted										272,727
Series C Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Conversion of stock converted value										$ 500,000
Conversion of stock shares converted										90,909
Board of Directors Chairman [Member]
Class of Stock [Line Items]
Exercise price						$ 4.32
Number of options issued						20,000
Common stock issued for services, shares	3,726	4,032			7,223		7,869	1,632	1,611	9,560
Common stock issued for services	$ 19,167	$ 30,000			$ 45,000		$ 37,500	$ 7,500	$ 7,500	$ 50,000
Stock-based compensation expense						$ 7,685
Employees And Directors [Member]
Class of Stock [Line Items]
Stock-based compensation expense										$ 262,411	$ 454,770
Purchase Agreement [Member]
Class of Stock [Line Items]
Proceeds from issuance of preffeed stock				$ 4,500,000
Series B Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued										15,000
Preferred stock authorized										10,000,000
Conversion of stock converted value										$ 1,000
Conversion price										$ 7
Series B Convertible Preferred Stock [Member] | Equity Unit Purchase Agreements [Member]
Class of Stock [Line Items]
Preferred stock, shares issued			2,830
Conversion of stock converted value			$ 2,830,000
Exercise price			$ 1,000
Convertible Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued										851	1,705
Preferred stock authorized										15,000	15,000
Preferred stock, shares outstanding										851	1,705
Convertible Series C Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued										2,500	0
Preferred stock authorized										5,000	5,000
Preferred stock, shares outstanding										2,500	0
Warrant [Member]
Class of Stock [Line Items]
Number of options issued							67,500
Number of options expired							1,197
Number of forfeited options							9,450
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Conversion of stock shares converted										854
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Conversion of stock shares converted										1,500
Series C Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Conversion of stock shares converted										500
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 Thousands Twenty One Equity Incentive Plan [Member]
Class of Stock [Line Items]
Issuance of Common stock under Awards										1,000,000

COMMON STOCK OPTIONS AND WARR_3

COMMON STOCK OPTIONS AND WARRANTS (Details - Schedule of Options Activity) - Share-based Payment Arrangement, Option [Member] - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at the beginning of the year	451,898	163,010
Outstanding at the beginning of the year	$ 5.06	$ 14
Outstanding	4 years 2 months 12 days	4 years 4 months 24 days	3 years 4 months 24 days
Granted	20,000	450,290
Granted	$ 4.32	$ 5.06
Granted	4 years	4 years 4 months 24 days
Forfeited		(161,402)
Forfeited		$ 14
Outstanding at end of period	431,266	451,898	163,010
Outstanding at end of period	$ 4.98	$ 5.06	$ 14
Outstanding	$ 197,506	$ 7,200
Exercisable at end of period	312,310	212,832
Exercisable at end of period	$ 5.25	$ 5.76
Exercisable	3 years 4 months 24 days	4 years 2 months 12 days
Exercisable
Cancelled/Forfeited	(40,632)
Cancelled/Forfeited	$ 14
Outstanding	3 years 4 months 24 days

COMMON STOCK OPTIONS AND WARR_4

COMMON STOCK OPTIONS AND WARRANTS (Details - Schedule of Fair Value Assumptions) - Share-based Payment Arrangement, Option [Member]	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate	0.18%
Expected term in years	3 years 6 months
Dividend yield
Volatility of common stock	91.60%
Estimated annual forfeitures
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate		0.18%
Expected term in years		2 years 6 months
Volatility of common stock		68.00%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate		0.26%
Expected term in years		3 years 6 months
Volatility of common stock		86.24%

COMMON STOCK OPTIONS AND WARR_5

COMMON STOCK OPTIONS AND WARRANTS (Details - Schedule of activity of warrants) - Warrant [Member] - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Outstanding at the beginning of the year	1,587,553	1,521,250
Outstanding at the beginning of the year	$ 8.62	$ 8.78
Outstanding at end of period	1 year 10 months 24 days	2 years	3 years 10 months 24 days
Outstanding
Warrants expired, forfeited, cancelled or exercised	(232,517)	(23,116)
Warrants issued	21,430	89,419
Warrants issued	$ 7.70	$ 9.02
Warrant issued	1 year 10 months 24 days	2 years 2 months 12 days
Outstanding at end of period	1,376,466	1,587,553	1,521,250
Outstanding at end of period	$ 8.18	$ 8.62	$ 8.78
Exercisable at end of period	1,376,466	1,587,553
Exercisable at end of period	$ 8.18	$ 8.69
Exercisable at end of period	1 year 10 months 24 days	2 years
Exercisable
Outstanding at the beginning of the year	2 years

COMMON STOCK OPTIONS AND WARR_6

COMMON STOCK OPTIONS AND WARRANTS (Details Narrative) - USD ($)	3 Months Ended					12 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from Issuance or Sale of Equity						$ 4,500,000
Options [Member] | Former Staff [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	8,922
Proceeds from Issuance or Sale of Equity	$ 63,860
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted						20,000	450,290
Options forfeited							161,402
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Strike price								$ 9
Warrant issued				67,500	9,450			67,500
Warrants expired			12,469		1,197
Warrant [Member] | Seven Holder [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant exercised	205,574
Warrant exercise price	$ 7.70
Total common stock	50,588
Warrant [Member] | Seven Holder [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share price	$ 9.25
Warrant [Member] | Seven Holder [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share price	$ 11.14
Board of Directors Chairman [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted		20,000
Strike price		$ 4.32
Stock option plan expense		$ 52,758
Stock-based compensation expense		7,685
Unamortized expense		$ 45,073
Total compensation cost for stock options not yet recognized, period		2 years 9 months
Key Staff Members Officers And Directors [Member] | Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options forfeited					160,866
Options granted, value					$ 102,800
Key Staff Members Officers And Directors [Member] | Share-based Payment Arrangement, Option [Member] | Transaction One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted					149,424
Options granted, value					$ 370,312
Key Staff Members Officers And Directors [Member] | Share-based Payment Arrangement, Option [Member] | Share-based Payment Arrangement, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					100.00%
Key Staff Members Officers And Directors [Member] | Share-based Payment Arrangement, Option [Member] | Vested On 1 January 2021 [Member] | Transaction One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					50.00%
Key Staff Members Officers And Directors [Member] | Share-based Payment Arrangement, Option [Member] | Vested On 1 January 2022 [Member] | Transaction One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					50.00%
Chief Executive Officer [Member] | Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted				100,000
Options granted, value				$ 193,388
Chief Executive Officer [Member] | Share-based Payment Arrangement, Option [Member] | Vest On 1 September 2021 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				50.00%
Chief Executive Officer [Member] | Share-based Payment Arrangement, Option [Member] | Vest On 1 September 2022 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				50.00%
Former Chief Executive Officer [Member] | Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vested				50,358
Unamortized portion of option charged in amount				$ 95,127
Two New Key Employees [Member] | Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted			40,000
Options granted, value			$ 91,574
Vesting description			For 20,000 of those options, 50% of the options will vest on October 12, 2021 and the other 50% will vest on October 12, 2022. For the other 20,000 options, one-third will vest on November 23, 2021, the next third will vest on November 23, 2022 and the final third will vest on November 23, 2023.

DEFINED CONTRIBUTION PLAN (Deta

DEFINED CONTRIBUTION PLAN (Details Narrative)	12 Months Ended
	Dec. 31, 2021USD ($)
Retirement Benefits [Abstract]
Cash contributions	$ 111,759

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	1 Months Ended			12 Months Ended
	Jun. 30, 2019	Feb. 28, 2019	Jan. 31, 2019	Dec. 31, 2021	Dec. 31, 2020	Jan. 02, 2021
Related party cost	$ 8,231	$ 25,583	$ 16,250	$ 93,422	$ 335,334
Accounts payable						$ 20,986
Contractors [Member]
Related party cost	$ 7,480

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Feb. 03, 2022	Jan. 11, 2022	Jan. 02, 2022	Feb. 21, 2022	Dec. 31, 2021	Dec. 31, 2020
Subsequent Event [Line Items]
Option vesting term					1 year 6 months
Issuance of stock value						$ 9,253,128
Series C Convertible Preferred Stock [Member]
Subsequent Event [Line Items]
Conversion of converted shares					500
Subsequent Event [Member]
Subsequent Event [Line Items]
Conversion of converted shares		710
Issuance of common stock		129,091
Issuance of shares	1,325,000
Issuance of stock value	$ 5,300,000
Net proceeds	$ 4,779,000
Subsequent event, description				Company closed a “over-allotment” offering of 198,750 shares of common stock in the amount of $795,000 before certain underwriting fees and offering expenses with net proceeds of $739,350. Both this and the previous offering were “takedowns” from a previously filed S3 “shelf” registration statement for the offer of up to $50,000,000 in the aggregate of Common Stock, Preferred Stock, Debt Securities, Warrants, Rights or Units from time to time in one or more offerings.
Subsequent Event [Member] | Series C Convertible Preferred Stock [Member]
Subsequent Event [Line Items]
Conversion of converted shares		1,790
Conversion of stock, amount converted		$ 2,500,000
Conversion price		$ 5.50
Subsequent Event [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Issuance of common stock		325,455
Non Qualified Stock Options [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Options granted			665,000
Strike Price			$ 6.41
Options term			5 years
Option vesting term			3 years