Ryvyl (RVYL) 10-Q 13 May 21 2021 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 12, 2021
Document Information Line Items
Entity Registrant Name	GreenBox POS, LLC
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		41,905,571
Amendment Flag	false
Entity Central Index Key	0001419275
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Entity Interactive Data Current	Yes

CONENSED CONSOLIDATED BALANCE S

CONENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Current Assets:
Cash and cash equivalents	$ 35,696,589	$ 0
Restricted cash	0	1,832,735
Accounts receivable, net	10,000	10,000
Accounts receivables from fines and fees from merchant, net of allowance for bad debt of $6,665,031 and $6,665,031, respectively.	2,789,230	2,789,230
Cash due from gateways, net	11,848,709	7,303,949
Prepaid and other current assets	2,452,753	70,130
Total current assets	52,797,281	12,006,044
Non-current Assets:
Property and equipment, net	62,362	57,264
Operating lease right-of-use assets, net	87,837	117,795
Other assets	81,636	81,636
Total non-current assets	231,835	256,695
Total assets	53,029,116	12,262,739
Current Liabilities:
Accounts payable	178,038	210,094
Other current liabilities	98,995	68,138
Payment processing liabilities, net	5,355,115	10,199,956
Note payable, payroll protection plan loan	272,713	272,713
Convertible debt, net of debt discount of $0 and $2,993,408, respectively	0	856,592
Current portion of operating lease liabilities	89,017	120,110
Total current liabilities	5,993,878	11,727,603
Long-term debt	149,900	149,900
Total liabilities	6,143,778	11,877,503
Commitments and contingencies
Stockholders' Equity:
Common stock, par value $0.001, 82,500,000 shares authorized, shares issued and outstanding of 40,917,331 and 30,710,646, respectively	40,918	30,711
Additional paid-in capital	71,898,401	12,079,074
Accumulated deficit	(25,053,981)	(11,724,549)
Total stockholders' equity	46,885,338	385,236
Total liabilities and stockholder's equity	$ 53,029,116	$ 12,262,739

CONENSED CONSOLIDATED BALANCE_2

CONENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Accounts receivables from fines and fees from merchant, allowance for bad debt (in Dollars)	$ 6,665,031	$ 6,665,031
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	82,500,000	82,500,000
Common stock shares issued	40,917,331	30,710,646
Common stock, shares outstanding	40,917,331	30,710,646

CONENSED CONSOLIDATED STATEMENT

CONENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenue	$ 4,749,441	$ 187,205
Cost of Goods Sold	1,593,771	247,305
Gross Profit	3,155,670	(60,100)
Operating expenses:
Advertising and marketing	24,725	11,885
Research and development	653,381	286,548
Payroll and payroll taxes	559,201	402,462
Professional fees	457,752	212,298
General and administrative	566,195	142,050
Stock compensation for employees	797,613	4,130
Stock compensation for services	9,453,825	0
Depreciation and amortization	6,009	5,376
Total operating expenses	12,518,701	1,064,749
Loss from operations	(9,363,031)	(1,124,849)
Other income (expense):
Interest expense - debt discount	(2,993,408)	(30,076)
Interest expense	(594,258)	(288,590)
Changes in fair value of derivative liability	0	(3,822,385)
Merchant liability settlement	(364,124)	0
Merchant fines and penalty income	0	24,060
Other income or expense	(14,611)	0
Total other expense, net	(3,966,401)	(4,116,991)
Loss before provision for income taxes	(13,329,432)	(5,241,840)
Income tax provision	0	0
Net Income (loss)	$ (13,329,432)	$ (5,241,840)
Earnings (loss) per share:
Basic and diluted (in Dollars per share)	$ (0.38)	$ (0.18)
Weighted average number of common shares outstanding:
Basic and diluted (in Shares)	34,917,106	28,993,402

CONENSED CONSOLIDATED STATEME_2

CONENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($)	Settlement of Note Payable [Member]Common Stock [Member]	Settlement of Note Payable [Member]Additional Paid-in Capital [Member]	Settlement of Note Payable [Member]	Issuance of Common Stock [Member]Common Stock [Member]	Issuance of Common Stock [Member]Additional Paid-in Capital [Member]	Issuance of Common Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Common Stock to be Issued [Member]	Total
Balance at Dec. 31, 2019							$ 28,310	$ 1,321,404	$ (6,717,169)	$ 116	$ (5,367,339)
Balance (in Shares) at Dec. 31, 2019							28,310,489			115,854
Other adjustments								116		$ (116)
Other adjustments (in Shares)										(115,854)
Common stocks issued for convertible notes	$ 1,000	$ 114,550	$ 115,550
Common stocks issued for convertible notes (in Shares)	1,000,000
Issuances of common stock				$ 10	$ 4,120	$ 4,130
Issuances of common stock (in Shares)				9,833
Net loss									(5,241,840)		(5,241,840)
Balance at Mar. 31, 2020							$ 29,320	1,440,190	(11,959,009)		(10,489,499)
Balance (in Shares) at Mar. 31, 2020							29,320,322
Balance at Dec. 31, 2020							$ 30,711	12,079,074	(11,724,549)		$ 385,236
Balance (in Shares) at Dec. 31, 2020							30,710,645				30,710,646
Common stock and warrants issuable forfeited							$ 1,778	3,518,222			$ 3,520,000
Common stock and warrants issuable forfeited (in Shares)							1,777,778
Issuable under convertible debt							$ 1,944	3,848,056			3,850,000
Issuable under convertible debt (in Shares)							1,944,444
Common shares issued for restricted shares to executive							$ 83	(83)
Common shares issued for restricted shares to executive (in Shares)							83,333
Common stock issued for services							$ 784	9,453,041			9,453,825
Common stock issued for services (in Shares)							783,859
Common stocks issued for convertible notes							$ 97	594,258			594,355
Common stocks issued for convertible notes (in Shares)							96,664
Common stock issued for non-cash stock option exercise							$ 39	(39)
Common stock issued for non-cash stock option exercise (in Shares)							39,332
Common stock issued for stock options exercised							$ 6	2,244			$ 2,250
Common stock issued for stock options exercised (in Shares)							5,500				44,832
Issuances of common stock, net of issuance costs of $4,305,758							$ 4,773	45,800,718			$ 45,805,491
Issuances of common stock, net of issuance costs of $4,305,758 (in Shares)							4,772,500
Payment for previous common stock repurchased under treasury method								(4,194,000)			(4,194,000)
Issuances of common stock							$ 703	(703)
Issuances of common stock (in Shares)							703,276
Stock compensation expense								797,613			797,613
Net loss									(13,329,432)		(13,329,432)
Balance at Mar. 31, 2021							$ 40,918	$ 71,898,401	$ (25,053,981)		$ 46,885,338
Balance (in Shares) at Mar. 31, 2021							40,917,331				40,917,331

CONENSED CONSOLIDATED STATEME_3

CONENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parentheticals)	3 Months Ended
	Mar. 31, 2021USD ($)
Statement of Stockholders' Equity [Abstract]
Issuances of common stock, issuance costs	$ 4,305,758

CONENSED CONSOLIDATED STATEME_4

CONENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net loss	$ (13,329,432)	$ (5,241,840)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation expense	6,010	5,376
Interest expense - debt discount	2,993,408	30,076
Stock compensation expense for employees	797,613	4,130
Stock compensation expense for services	9,453,825	0
Shares issued for interest	594,355	0
Changes in fair value of derivative liability	0	3,822,385
Noncash lease expense	(1,135)	4,406
Changes in assets and liabilities:
Accounts receivable	0	37,205
Prepaid and other current assets	(2,382,623)	(42,614)
Cash due from gateways, net	(4,544,760)	5,024,520
Accounts payable	(32,056)	(6,271)
Other current liabilities	30,857	(15,100)
Accrued interest	0	7,135
Payment processing liabilities, net	(4,844,841)	(3,361,564)
Net cash provided by (used in) operating activities	(11,258,779)	267,844
Cash flows from investing activities:
Purchases of property and equipment	(11,108)	(12,564)
Net cash used in investing activities	(11,108)	(12,564)
Cash flows from financing activities:
Repayments on convertible debt	0	(270,000)
Borrowings from short-term notes payable	0	(441,911)
Proceeds from stock option exercises	2,250	0
Proceeds from exercise of warrant	3,520,000	0
Repurchase of common stock from stockholder	(4,194,000)	0
Proceeds from issuances of common stock	45,805,491	0
Net cash provided by financing activities	45,133,741	(711,911)
Net increase (decrease) in cash, cash equivalents, and restricted cash	33,863,854	(456,631)
Cash, cash equivalents, and restricted cash – beginning of period	1,832,735	763,110
Cash, cash equivalents, and restricted cash – end of period	35,696,589	306,479
Cash paid during the period for:
Interest	0	339,505
Income taxes	0	800
Disclosures of non-cash activities under investing activities:
Convertible debt converted to common stock	3,850,000	57,500
Interest accrual from convertible debt converted to common stock	$ 0	$ 58,050

DESCRIPTION OF BUSINESS AND BAS

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Organization GreenBox POS (the “Company” or “PubCo”) is a tech company formed with the intent of developing, marketing and selling innovative blockchain-based payment solutions, which the Company believes will cause favorable disruption in the payment solutions marketplace. The Company’s core focus is to develop and monetize disruptive blockchain-based applications, integrated within an end-to-end suite of financial products, capable of supporting a multitude of industries. The Company’s proprietary, blockchain-based systems are designed to facilitate, record and store a virtually limitless volume of tokenized assets, representing cash or data, on a secured, immutable blockchain-based ledger. The Company was formerly known as ASAP Expo, Inc (“ASAP”), which was incorporated April 10, 2007 under the laws of the State of Nevada. On January 4, 2020, PubCo and GreenBox POS LLC, a Washington limited liability company (“PrivCo”), entered into an Asset Purchase Agreement (the “Agreement”), to memorialize a verbal agreement (the “Verbal Agreement”) entered into on April 12, 2018, by and among PubCo (the buyer) and PrivCo, which was formed on August 10, 2017 (the seller). On April 12, 2018, pursuant to the Verbal Agreement, PubCo acquired PrivCo’s blockchain gateway and payment system business, point of sale system business, delivery business and kiosk business, bank and merchant accounts, as well as all intellectual property related thereto (the “GreenBox Business”). As consideration for the GreenBox Business, on April 12, 2018, PubCo assumed PrivCo’s liabilities that had been incurred in the normal course of the GreenBox Business (the “GreenBox Acquisition”). For accounting and reporting purposes, PubCo deemed the GreenBox Acquisition a “Reverse Acquisition” with PrivCo designated the “accounting acquirer” and PubCo designated the “accounting acquiree.” Name Change On May 3, 2018, PubCo formally changed its name to GreenBox POS LLC, then subsequently changed its name to GreenBox POS on December 13, 2018. Unless the context otherwise requires, all references to “the Company,” “we,” “our”, “us” and “PubCo” refer to GreenBox POS. Unless the context otherwise requires, all references to “PrivCo” or the “Private Company” refer to GreenBox POS LLC, a limited liability company, formed in the state of Washington. Basis of Presentation and Consolidation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The financial statements include the combined accounts of PubCo and PrivCo. All amounts are presented in U.S. Dollars unless otherwise stated. The accompanying financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”). Unaudited Interim Financial Information These unaudited interim financial statements have been prepared in accordance with GAAP for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that permit reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been made. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2021. The balance sheets and certain comparative information as of December 31, 2020 are derived from the audited financial statements and related notes for the year ended December 31, 2020 (“2020 Annual Financial Statements”), included in the Company’s 2020 Annual Report on Form 10-K. These unaudited interim financial statements should be read in conjunction with the 2020 Annual Financial Statements. Use of Estimates The preparation of financial statements in conformity with the GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash, Cash Equivalents and Restricted Cash The Company’s cash, cash equivalent and Restricted cash represents the following: ● Cash and cash equivalents ● Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows. March 31, 2021 December 31, 2020 Cash and cash equivalents $ 35,696,589 $ - Restricted cash - 1,832,735 Total cash, cash equivalents, and restricted cash $ 35,696,589 $ 1,832,735 Cash Due from Gateways and Payment Processing Liabilities The Company’s primary source of revenues continues to be payment processing services for its merchant clients. When such merchant makes a sale, the process of receiving the payment card information, engaging the banks for transferring the proceeds to the merchant’s account via digital gateways, and recording the transaction on a blockchain ledger are the activities for which the Company gets to collect fees. In 2021 and 2020 the Company utilized several gateways. The gateways have strict guidelines pertaining to scheduling of the release of funds to merchants based on several criteria, such as return and chargeback history, associated risk for the specific business vertical, average transaction amount and so on. In order to mitigate processing risks, these policies determine reserve requirements and payment in arear strategy. While reserve and payment in arear restrictions are in effect for a merchant payout, the Company records gateway debt against these amounts until released. Therefore, the total gateway balances reflected in the Company’s books represent the amount owed to the Company for processing – these are funds from transactions processed and not yet distributed. Advertising and Marketing Costs Advertising and marketing costs are recorded as general and administrative expenses when they are incurred. Advertising and marketing expenses were $24,725 and $11,885 for the three months ended March 31, 2021 and 2020, respectively. Research and Development Costs Research and development costs, which are expensed as incurred, are primarily comprised of costs and expenses for salaries and benefits for research and development personnel, outsourced contract services, and supplies and materials costs. Research and development expenses were $653,381 and $286,548 for the three months ended March 31, 2021 and 2020, respectively.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	Revenue Recognition Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers outlines the basic criteria that must be met to recognize revenue and provide guidance for presentation of revenue and for disclosure related to revenue recognition policies in financial statements filed with the Securities and Exchange Commission. Management believes the Company’s revenue recognition policies conform to ASC 606. The Company recognizes revenue when 1) it is realized or realizable and earned, 2) there is persuasive evidence of an arrangement, 3) delivery and performance has occurred, 4) there is a fixed or determinable sales price, and 5) collection is reasonably assured. The Company generates revenue from payment processing services, licensing fees and equipment sales. ● Payment processing revenue is based on a percentage of each transaction’s value and/or upon fixed amounts specified per each transaction or service and is recognized as such transactions or services are performed. ● Licensing revenue is paid in advance and is recorded as unearned income, which is amortized monthly over the period of the licensing agreement. ● Equipment revenue is generated from the sale of POS products, which is recognized when goods are shipped. Accounts Receivable and Allowance for Bad Debt The Company maintains an allowance for doubtful accounts for estimated losses from the inability of customers to make required payments. The allowance for doubtful accounts is evaluated periodically based on the aging of accounts receivable, the financial condition of customers and their payment history, historical write-off experience and other assumptions, such as current assessment of economic conditions. Property and Equipment Property and equipment are stated at cost. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the assets, which range from three to eight years. Leasehold improvements are amortized over the shorter of the useful life of the related assets or the lease term. Expenditures for repairs and maintenance are charged to expense as incurred. For assets sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any related gain or loss is reflected in income for the period. Fair Value of Financial Instruments The Company utilizes ASC 820-10, Fair Value Measurement and Disclosure, for valuing financial assets and liabilities measured on a recurring basis. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value: Level 1. Observable inputs such as quoted prices in active markets; Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The Company’s financial instruments consisted of cash, accounts payable and accrued liabilities, advances to due to or from affiliated companies, notes payable to officers. The estimated fair value of cash, accounts payable and accrued liabilities, due to or from affiliated companies, and notes payable approximates its carrying amount due to the short maturity of these instruments. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net of operating loss carry forwards and credits, by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is not more likely than not that some portion or all of the deferred tax assets will be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. Long-Lived Asset Impairments The Company reviews long-lived assets, including property and equipment and intangible assets, for impairment when events or changes in business conditions indicate that their carrying value may not be recovered, and at least annually. The Company considers assets to be impaired and writes them down to estimated fair value if expected associated undiscounted cash flows are less than the carrying amounts. Fair value is the present value of the associated cash flows. Earnings Per Share A basic earnings per share is computed by dividing net income to common stockholders by the weighted average number of shares outstanding for the year. Dilutive earnings per share include the effect of any potentially dilutive debt or equity under the treasury stock method, if including such instruments is dilutive. The Company’s diluted earnings/loss per share is the same as the basic earnings/loss per share for the three months ended March 31, 2021 and 2020, as there are no potential shares outstanding that would have a dilutive effect. Reverse Common Stock Split (1 for 6) On February 17, 2021, the Company effected a reverse stock split of the Company’s shares of common stock outstanding and a proportional decrease of the Company’s authorized shares of common stock at a ratio of one-for-six (the “Stock Split”). Following the Stock Split, the Company has 82,500,000 shares of common stock authorized (the number of authorized shares of Preferred Stock remains 5,000,000). As a result, common shares information has been retrospectively restated accordingly in the financial statements as of and for the three months ended March 31, 2020. Recently Adopted Accounting Updates In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. This standard removes, modifies, and adds certain disclosure requirements for fair value measurements, and is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU No. 2018-13 in the first quarter of fiscal 2020, coinciding with the standard’s effective date, and the adoption did not have any impact to the Company’s financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company’s accounting for the service element of a hosting arrangement that is a service contract is not affected by the proposed amendments and will continue to be expensed as incurred in accordance with existing guidance. This standard does not expand on existing disclosure requirements except to require a description of the nature of hosting arrangements that are service contracts. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, and can be adopted either prospectively or retrospectively. Accordingly, the Company adopted the updated disclosure requirements of ASU No. 2018-15 prospectively in the first quarter of fiscal 2020, coinciding with the standard’s effective date, and the adoption did not have any impact to the Company’s financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740, Income Taxes, while also clarifying and amending existing guidance, including interim-period accounting for enacted changes in tax law. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU No. 2019-12 in the first quarter of fiscal 2020 and the adoption did not have any impact to the Company’s financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This standard provides optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this standard apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in this standard are elective and are effective upon issuance for all entities. The Company is evaluating the expedients and exceptions provided by the amendments in this standard to determine their impact. Other recently issued accounting updates are not expected to have a material impact on the Company’s Interim Financial Statements.

SETTLEMENT PROCESSING

SETTLEMENT PROCESSING	3 Months Ended
	Mar. 31, 2021
Settlement Processing [Abstract]
Settlement Processing [Text Block]	3. SETTLEMENT PROCESSING The Company’s proprietary blockchain-based technology serves as the settlement engine for all transactions within the Company’s ecosystem. The blockchain ledger provides a robust and secure platform to log immense volumes of immutable transactional records in real time. Generally speaking, blockchain is a distributed ledger that uses digitally encrypted keys to verify, secure and record details of each transaction conducted within an ecosystem. Unlike general blockchain-based systems, GreenBox uses proprietary, private ledger technology to verify every transaction conducted within the GreenBox ecosystem. The verification of transaction data comes from trusted partners, all of whom have been extensively vetted by us. GreenBox facilitates all financial elements of our closed-loop ecosystem and we act as the administrator for all related accounts. Using our TrustGateway technology, we seek authorization and settlement for each transaction from Gateways to the issuing bank responsible for the credit/debit card used in the transaction. When the Gateway settles the transaction, our TrustGateway technology composes a chain of blockchain instructions to our ledger manager system. When consumers use credit/debit cards to pay for transactions with merchants who use our ecosystem, the transaction starts with the consumer purchasing tokens from us. The issuance of tokens is accomplished when we load a virtual wallet with a token, which then transfers credits to the merchant’s wallet on a dollar for dollar basis, after which the merchant releases its goods or services to the consumer. These transfers take place instantaneously and seamlessly, allowing the transaction experience to seem like any other ordinary credit/debit card transaction to the consumer and merchant. While our blockchain ledger records transaction details instantaneously, the final cash settlement of each transaction can take days to weeks, depending upon contract terms between us and the gateways we use, between us and our ISOs, and between us and/or our ISOs and merchants who use our services. In the case where we have received transaction funds, but not yet paid a merchant or an ISO, we hold funds in either a trust account or as cash deemed restricted within our operating accounts. We record the total of such funds as Cash held for Settlements – a Current Asset. Of these funds, we record the sum balance due to Merchants and ISOs as Settlement Liabilities to Merchants and Settlement Liabilities to ISOs, respectively. The table below shows the status of transaction settlements: March 31, 2021 December 31, 2020 Settlement Processing Assets: Cash held for settlements $ 100,532 $ 1,832,735 Cash due from gateways 7,532,137 1,922,669 Amounts due from gateways and merchants – hold and fees 6,493,594 1,063,272 Reserves (1) 4,316,572 5,381,281 Total before allowance for uncollectable 18,442,835 10,199,957 Allowance for uncollectable – hold and fees (6,594,126 ) (2,896,008 ) Total settlement processing assets cash due from gateways $ 11,848,709 $ 7,303,949 Settlement Processing Liabilities: Settlement liabilities to merchants $ 5,355,115 $ 10,199,956 Settlement liabilities to independent sales organizations (ISO) - - Refund allowances - - Total settlement processing liabilities $ 5,355,115 $ 10,199,956 (1) Reserves are essentially an escrow fund that protects a gateway/card issuer from financial losses. In the Reserve, funds are held until chargeback time limits expire.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	4. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: March 31, 2021 December 31, 2020 Computers $ 59,991 $ 48,883 Furniture and fixtures 40,320 40,320 Kiosks 6,472 6,473 Vehicles 4,578 4,578 Total property and equipment 111,361 100,254 Less accumulated depreciation (48,999 ) (42,990 ) Total property and equipment, net $ 62,362 $ 57,264 Depreciation expense was $6,010 and $5,376 for the three months ended March 31, 2021 and 2020, respectively.

CONVERTIBLE NOTES PAYABLE

CONVERTIBLE NOTES PAYABLE	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	5. CONVERTIBLE NOTES PAYABLE Convertible notes payable consisted of the following: March 31, 2021 December 31, 2020 October 27, 2020 ($3,850,000) $ - $ 3,850,000 Total convertible notes payable - 3,850,000 Debt discount - (2,993,408 ) Total convertible notes payable, net of debt discount $ - $ 856,592 Kingswood Capital (Syndicate Convertible Note) - $3,850,000 On October 27, 2020, the Company issued a convertible promissory note for $3,850,000 to various lenders through its placement agent, Kingswood Capital (“Kingswood Note”), due July 27, 2021 (the “Maturity Date”) with conversion price to common stock of $1.98 per share. The Kingswood Note included an original issue discount of $350,000, netting the balance received by the Company from Kingswood Note at $3,500,000. The Company also provided warrant of 1,944,444 with a fixed exercise price to common stock of $1.98 per share under the Kingswood Note. The Company valued its warrant of 1,944,444 with fixed exercise price of $1.98 using Black-Scholes valuation method which amounted to $3,498,667 and recorded as a debt discount at the time of issuance of warrant. The convertible debt was converted in February 2021.

NOTE PAYABLE, PAYROLL PROTECTIO

NOTE PAYABLE, PAYROLL PROTECTION PLAN LOAN	3 Months Ended
	Mar. 31, 2021
Note Payable [Abstract]
Note Payable [Text Block]	6. NOTE PAYABLE, PAYROLL PROTECTION PLAN LOAN On April 29, 2020, the Company entered into a loan agreement with Preferred Bank under Paycheck Protection Program administered by SBA in the amount of $272,713. Under this loan program, the loan may be forgiven if utilized for specific purpose specified under the CARES Act and PPP guideline. The loan bears interest of 1.00% per annum and matures on April 29, 2022.

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Long-term Debt [Text Block]	7. LONG-TERM DEBT On June 9, 2020, the Company entered into a loan agreement with SBA under CARES Act in the amount of $150,000. The loan requires monthly payment of $731 after 12 months with maturity date of June 1, 2050 with interest rate at 3.75% per annum. Both Nisan and Errez, individually, signed personal guarantees for this Purchase Agreement.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	8. INCOME TAXES The Company did not have income tax provision (benefit) due to net loss and deferred tax assets having a full valuation allowances as of and for the three months ended March 31, 2021 and 2020. The provision for income taxes differs from the amounts computed by applying the federal statutory tax rate of 21% to earnings before income taxes, as follows: Three Months Ended March 31, 2021 2020 Book income at statutory rate 21.00 % 21.00 % Others - - Change in valuation allowance -21.00 % -21.00 % Effective income tax rate 0.00 % 0.00 % Deferred tax assets and liabilities consist of the following tax-effected temporary differences: March 31, 2021 December 31, 2020 Deferred tax assets (liabilities): Net operating loss carryforward $ 2,135,000 $ 1,066,726 Depreciation - - Others - - Total deferred tax assets, net 2,135,000 1,066,726 Valuation allowance (2,135,000 ) (1,066,726 ) Net deferred tax assets (liabilities) $ - $ - The Company uses the liability method of accounting for income taxes as set forth in ASC 740. Under the liability method, deferred taxes are determined based on differences between the financial statement and tax bases of assets and liabilities using enacted tax rates. As of March 31, 2021, the Company had federal and California net operating loss carryforwards of approximately $6.2 million. The federal and California net operating loss carryforwards will expire at various dates from 2027 through 2029; however, $6.2 million of the Federal operating loss does not expire and will be carried forward indefinitely. As of March 31, 2021 and December 31, 2020, the Company maintained full valuation allowance for net operating loss carryforward deferred tax asset. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. The amount of the deferred tax asset considered realizable, however, could be reduced if estimates of future taxable income are reduced. The Company files a consolidated federal income tax return and files tax returns in various state and local jurisdictions. The statutes of limitations for its consolidated federal income tax returns are open for years 2017 and after, and state and local income tax returns are open for years 2016 and after.

STOCK OPTION AWARDS

STOCK OPTION AWARDS	3 Months Ended
	Mar. 31, 2021
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	9. STOCK OPTION AWARDS The Company adopted the 2020 Incentive and Non-statutory Stock Option Plan (“2020 Plan”) in June 2020, which provided for the grant of incentive stock options and nonqualified stock options to our employees and directors. The 2020 Plan provides for up to 3.3 million shares of Common Stock. Options granted under the 2020 Plan generally have a term of ten years and generally vest and become exercisable at various times from the option grant dates. The 2020 Plan provide for the grant of incentive stock options, non-qualified stock options and restricted stock to our employees, directors and independent contractors. These options will have such vesting or other provisions as may be established by the Board of Directors at the time of each grant. The Company applies the provisions of ASC 718, “Compensation - Stock Compensation,” using a modified prospective application, and the Black-Scholes model to value stock options. Under this application, the Company records compensation expense for all awards granted. Compensation costs will be recognized over the period that an employee provides service in exchange for the award. The fair value of each share option award on the date of grant was estimated using the Black-Scholes method based on the following weighted-average assumptions: March 31, 2021 December 31, 2020 Risk-free interest rate 0.29 % 0.29 % Expected term 5 years 5 years Expected volatility 229.49 % 289.33% to 279.18 % Expected dividend yield - - The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option award; the expected term represents the weighted-average period of time that option awards granted are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; and the expected dividend yield is based upon the Company’s dividend rate at the time fair value is measured and future expectations. The Company recorded $797,613 and $4,130 compensation expenses recorded under this method for the three months ended March 31, 2021 and 2020, respectively. A summary of the status of our stock options is presented below as of March 31, 2021: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2020 514,607 $ 2.30 0.00 3,365,527 Granted 100,000 7.63 Exercised (44,832 ) 2.50 Forfeited or expired (68,428 ) 2.50 Outstanding at March 31, 2021 496,782 4.80 0.00 7,018,853 Exercisable as of March 31, 2021 496,782 4.81 0.00 6,954,941 Vested and Expected to Vest as of March 31, 2021 496,782 4.81 0.00 6,954,941 The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based upon the Company’s closing stock price of $14.00 as of March 31, 2021, which would have been received by the option holders had all option holders exercised their options as of that date. As of March 31, 2021, there was unrecognized compensation cost related to non-vested stock options granted in the amount of $25,717.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	10. RELATED PARTY TRANSACTIONS The Company had the following related party transactions: ● Pop N Pay, LLC ● Kenneth Haller and the Haller Companies Kenneth Haller (“Haller”) became the Company’s Senior Vice President of Payment Systems in November 2018. The Company began working indirectly with Haller earlier in 2018, both individually and through our relationship with MTrac Tech Corporation (“MTrac”), which in turn has business relationships with Haller. Haller brings considerable advantages to the Company’s platform development and business development efforts and capabilities, including transactional business relations and a large network of agents, which the Company believes, are capable of processing $1 billion transactions annually (the “Haller Network”). The Haller Network is an amalgamation of the collective networks of Haller and three companies owned or majority-owned by Haller, which are Sky Financial & Intelligence, LLC (“Sky”), Charge Savvy, LLC, Cultivate, LLC (collectively, the “Haller Companies”), each of which has formalized business relationships with the Company, as well as with some of the Company’s partners, which the Company believes allows the Company to maximize and diversity the Company’s market penetration capabilities. Haller, through Sky, owns controlling interests in Charge Savvy, LLC and Cultivate, LLC, with whom we do business indirectly, through their respective business relationship with MTrac. The following are certain transactions between the Company and the Haller Companies: o Sky Financial & Intelligence, LLC ■ Charge Savvy, LLC ■ Sky Mid The Company did not pay any commissions to the related parties mentioned above for the three months ended March 31, 2021 and 2020.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	11. COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company has the following legal proceedings: ● America 2030 Capital Limited and Bentley Rothschild Capital Limited ● DCSM et al v. Greenbox POS ● The Good People Farms, LLC (TGPF) Operating Leases The Company entered into the following operating facility lases: ● Hyundai Rio Vista – On October 4, 2018, the Company entered into an operating facility lease for its corporate office located in San Diego with 38 months term and with option to renew. The lease started on October 4, 2018 and expires on October 3, 2021 The Company entered into an operating lease for corporate location on October 4, 2018. Rent expense paid under the lease agreements for the three months ended March 31, 2021 and 2020 was $33,104 and $22,390, respectively. For operating leases, we calculated right of use assets and lease liabilities based on the present value of the remaining lease payments as of the date of adoption using the incremental borrowing rate. The adoption of ASC 842 resulted in recording an adjustment to operating lease right of use asset and operating lease liabilities of $87,837 and $89,017 respectively, as of March 31, 2021. The difference between the operating lease ROU asset and operating lease liabilities at transition represented existing deferred rent expenses and tenant improvements, and indirect costs that was derecognized. The adoption of ASC 842 did not materially impact our results of operations, cash flows, or presentation thereof.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events [Text Block]	12. SUBSEQUENT EVENTS The Company follows the guidance in FASB ASC Topic 855, Subsequent Events (“ASC 855”), which provides guidance to establish general standards of accounting for and disclosures of events that occur after the balance sheet date but before the consolidated financial statements are issued or are available to be issued. ASC 855 sets forth (i) the period after the balance sheet date during which management of a reporting entity evaluates events or transactions that may occur for potential recognition or disclosure in the consolidated financial statements, (ii) the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its consolidated financial statements, and (iii) the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. Accordingly, the Company did not have any subsequent events that require disclosure other than the following: ● April 2021 (Facility Lease)

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Revenue [Policy Text Block]	Revenue Recognition Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers outlines the basic criteria that must be met to recognize revenue and provide guidance for presentation of revenue and for disclosure related to revenue recognition policies in financial statements filed with the Securities and Exchange Commission. Management believes the Company’s revenue recognition policies conform to ASC 606. The Company recognizes revenue when 1) it is realized or realizable and earned, 2) there is persuasive evidence of an arrangement, 3) delivery and performance has occurred, 4) there is a fixed or determinable sales price, and 5) collection is reasonably assured. The Company generates revenue from payment processing services, licensing fees and equipment sales. ● Payment processing revenue is based on a percentage of each transaction’s value and/or upon fixed amounts specified per each transaction or service and is recognized as such transactions or services are performed. ● Licensing revenue is paid in advance and is recorded as unearned income, which is amortized monthly over the period of the licensing agreement. ● Equipment revenue is generated from the sale of POS products, which is recognized when goods are shipped.
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]	Accounts Receivable and Allowance for Bad Debt The Company maintains an allowance for doubtful accounts for estimated losses from the inability of customers to make required payments. The allowance for doubtful accounts is evaluated periodically based on the aging of accounts receivable, the financial condition of customers and their payment history, historical write-off experience and other assumptions, such as current assessment of economic conditions.
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Equipment Property and equipment are stated at cost. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the assets, which range from three to eight years. Leasehold improvements are amortized over the shorter of the useful life of the related assets or the lease term. Expenditures for repairs and maintenance are charged to expense as incurred. For assets sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any related gain or loss is reflected in income for the period.
Fair Value Measurement, Policy [Policy Text Block]	Fair Value of Financial Instruments The Company utilizes ASC 820-10, Fair Value Measurement and Disclosure, for valuing financial assets and liabilities measured on a recurring basis. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value: Level 1. Observable inputs such as quoted prices in active markets; Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The Company’s financial instruments consisted of cash, accounts payable and accrued liabilities, advances to due to or from affiliated companies, notes payable to officers. The estimated fair value of cash, accounts payable and accrued liabilities, due to or from affiliated companies, and notes payable approximates its carrying amount due to the short maturity of these instruments.
Income Tax, Policy [Policy Text Block]	Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net of operating loss carry forwards and credits, by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is not more likely than not that some portion or all of the deferred tax assets will be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]	Long-Lived Asset Impairments The Company reviews long-lived assets, including property and equipment and intangible assets, for impairment when events or changes in business conditions indicate that their carrying value may not be recovered, and at least annually. The Company considers assets to be impaired and writes them down to estimated fair value if expected associated undiscounted cash flows are less than the carrying amounts. Fair value is the present value of the associated cash flows.
Earnings Per Share, Policy [Policy Text Block]	Earnings Per Share A basic earnings per share is computed by dividing net income to common stockholders by the weighted average number of shares outstanding for the year. Dilutive earnings per share include the effect of any potentially dilutive debt or equity under the treasury stock method, if including such instruments is dilutive. The Company’s diluted earnings/loss per share is the same as the basic earnings/loss per share for the three months ended March 31, 2021 and 2020, as there are no potential shares outstanding that would have a dilutive effect.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Adopted Accounting Updates In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. This standard removes, modifies, and adds certain disclosure requirements for fair value measurements, and is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU No. 2018-13 in the first quarter of fiscal 2020, coinciding with the standard’s effective date, and the adoption did not have any impact to the Company’s financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company’s accounting for the service element of a hosting arrangement that is a service contract is not affected by the proposed amendments and will continue to be expensed as incurred in accordance with existing guidance. This standard does not expand on existing disclosure requirements except to require a description of the nature of hosting arrangements that are service contracts. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, and can be adopted either prospectively or retrospectively. Accordingly, the Company adopted the updated disclosure requirements of ASU No. 2018-15 prospectively in the first quarter of fiscal 2020, coinciding with the standard’s effective date, and the adoption did not have any impact to the Company’s financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740, Income Taxes, while also clarifying and amending existing guidance, including interim-period accounting for enacted changes in tax law. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU No. 2019-12 in the first quarter of fiscal 2020 and the adoption did not have any impact to the Company’s financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This standard provides optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this standard apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in this standard are elective and are effective upon issuance for all entities. The Company is evaluating the expedients and exceptions provided by the amendments in this standard to determine their impact. Other recently issued accounting updates are not expected to have a material impact on the Company’s Interim Financial Statements.
Stockholders' Equity, Policy [Policy Text Block]	Reverse Common Stock Split (1 for 6) On February 17, 2021, the Company effected a reverse stock split of the Company’s shares of common stock outstanding and a proportional decrease of the Company’s authorized shares of common stock at a ratio of one-for-six (the “Stock Split”). Following the Stock Split, the Company has 82,500,000 shares of common stock authorized (the number of authorized shares of Preferred Stock remains 5,000,000). As a result, common shares information has been retrospectively restated accordingly in the financial statements as of and for the three months ended March 31, 2020.

DESCRIPTION OF BUSINESS AND B_2

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Tables)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Restrictions on Cash and Cash Equivalents [Table Text Block]	The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows. March 31, 2021 December 31, 2020 Cash and cash equivalents $ 35,696,589 $ - Restricted cash - 1,832,735 Total cash, cash equivalents, and restricted cash $ 35,696,589 $ 1,832,735

SETTLEMENT PROCESSING (Tables)

SETTLEMENT PROCESSING (Tables)	3 Months Ended
	Mar. 31, 2021
Settlement Processing [Abstract]
Schedule of Settlement Processing [Table Text Block]	The table below shows the status of transaction settlements: March 31, 2021 December 31, 2020 Settlement Processing Assets: Cash held for settlements $ 100,532 $ 1,832,735 Cash due from gateways 7,532,137 1,922,669 Amounts due from gateways and merchants – hold and fees 6,493,594 1,063,272 Reserves (1) 4,316,572 5,381,281 Total before allowance for uncollectable 18,442,835 10,199,957 Allowance for uncollectable – hold and fees (6,594,126 ) (2,896,008 ) Total settlement processing assets cash due from gateways $ 11,848,709 $ 7,303,949 Settlement Processing Liabilities: Settlement liabilities to merchants $ 5,355,115 $ 10,199,956 Settlement liabilities to independent sales organizations (ISO) - - Refund allowances - - Total settlement processing liabilities $ 5,355,115 $ 10,199,956 (1) Reserves are essentially an escrow fund that protects a gateway/card issuer from financial losses. In the Reserve, funds are held until chargeback time limits expire.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	Property and equipment consisted of the following: March 31, 2021 December 31, 2020 Computers $ 59,991 $ 48,883 Furniture and fixtures 40,320 40,320 Kiosks 6,472 6,473 Vehicles 4,578 4,578 Total property and equipment 111,361 100,254 Less accumulated depreciation (48,999 ) (42,990 ) Total property and equipment, net $ 62,362 $ 57,264

CONVERTIBLE NOTES PAYABLE (Tabl

CONVERTIBLE NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Convertible Debt [Table Text Block]	Convertible notes payable consisted of the following: March 31, 2021 December 31, 2020 October 27, 2020 ($3,850,000) $ - $ 3,850,000 Total convertible notes payable - 3,850,000 Debt discount - (2,993,408 ) Total convertible notes payable, net of debt discount $ - $ 856,592

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	The provision for income taxes differs from the amounts computed by applying the federal statutory tax rate of 21% to earnings before income taxes, as follows: Three Months Ended March 31, 2021 2020 Book income at statutory rate 21.00 % 21.00 % Others - - Change in valuation allowance -21.00 % -21.00 % Effective income tax rate 0.00 % 0.00 %
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	Deferred tax assets and liabilities consist of the following tax-effected temporary differences: March 31, 2021 December 31, 2020 Deferred tax assets (liabilities): Net operating loss carryforward $ 2,135,000 $ 1,066,726 Depreciation - - Others - - Total deferred tax assets, net 2,135,000 1,066,726 Valuation allowance (2,135,000 ) (1,066,726 ) Net deferred tax assets (liabilities) $ - $ -

STOCK OPTION AWARDS (Tables)

STOCK OPTION AWARDS (Tables)	3 Months Ended
	Mar. 31, 2021
Stockholders' Equity Note [Abstract]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	The fair value of each share option award on the date of grant was estimated using the Black-Scholes method based on the following weighted-average assumptions: March 31, 2021 December 31, 2020 Risk-free interest rate 0.29 % 0.29 % Expected term 5 years 5 years Expected volatility 229.49 % 289.33% to 279.18 % Expected dividend yield - -
Share-based Payment Arrangement, Option, Activity [Table Text Block]	A summary of the status of our stock options is presented below as of March 31, 2021: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 31, 2020 514,607 $ 2.30 0.00 3,365,527 Granted 100,000 7.63 Exercised (44,832 ) 2.50 Forfeited or expired (68,428 ) 2.50 Outstanding at March 31, 2021 496,782 4.80 0.00 7,018,853 Exercisable as of March 31, 2021 496,782 4.81 0.00 6,954,941 Vested and Expected to Vest as of March 31, 2021 496,782 4.81 0.00 6,954,941

DESCRIPTION OF BUSINESS AND B_3

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Accounting Policies [Abstract]
Restricted Cash and Cash Equivalents	$ 0
Cash and Cash Equivalents, at Carrying Value	35,696,589		$ 0
Advertising Expense	24,725	$ 11,885
Research and Development Expense	$ 653,381	$ 286,548

DESCRIPTION OF BUSINESS AND B_4

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) - Schedule of Cash and Cash Equivalents - USD ($)	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Schedule of Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 35,696,589	$ 0
Restricted cash	0	1,832,735
Total cash, cash equivalents, and restricted cash	$ 35,696,589	$ 1,832,735	$ 306,479	$ 763,110

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - shares	3 Months Ended
	Mar. 31, 2021	Feb. 17, 2021	Dec. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Common Stock, Shares Authorized	82,500,000	82,500,000	82,500,000
Preferred Stock, Shares Authorized	5,000,000
Maximum [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Property, Plant and Equipment, Useful Life	8 years

SETTLEMENT PROCESSING (Details)

SETTLEMENT PROCESSING (Details) - Schedule of Settlement Processing - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Settlement Processing Assets:
Cash held for settlements	$ 100,532	$ 1,832,735
Cash due from gateways	7,532,137	1,922,669
Amounts due from gateways and merchants – hold and fees	6,493,594	1,063,272
Reserves (1)	4,316,572	5,381,281
Total before allowance for uncollectable	18,442,835	10,199,957
Allowance for uncollectable – hold and fees	(6,594,126)	(2,896,008)
Total settlement processing assets – cash due from gateways	11,848,709	7,303,949
Settlement Processing Liabilities:
Total settlement processing liabilities	5,355,115	10,199,956
Settlement liabilities to merchants [Member]
Settlement Processing Liabilities:
Settlement liabilities	5,355,115	10,199,956
Settlement liabilities to ISOs [Member]
Settlement Processing Liabilities:
Settlement liabilities	$ 0	$ 0

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation	$ 6,010	$ 5,376

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details) - Schedule of Equipment - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, gross	$ 111,361	$ 100,254
Less: Accumulated Depreciation	(48,999)	(42,990)
Total property and equipment, net	62,362	57,264
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, gross	59,991	48,883
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, gross	40,320	40,320
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, gross	6,472	6,473
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, gross	$ 4,578	$ 4,578

CONVERTIBLE NOTES PAYABLE (Deta

CONVERTIBLE NOTES PAYABLE (Details) - Kingswood Capital Markets [Member] - USD ($)	Oct. 27, 2020	Mar. 31, 2021
CONVERTIBLE NOTES PAYABLE (Details) [Line Items]
Debt Instrument, Face Amount	$ 3,850,000	$ 3,850,000
Debt Instrument, Maturity Date	Jul. 27, 2021	Jul. 27, 2021
Debt Instrument, Convertible, Conversion Price (in Dollars per share)	$ 1.98
Debt Instrument, Unamortized Discount	$ 350,000
Proceeds from Convertible Debt	$ 3,500,000
Class of Warrant or Rights, Granted (in Shares)	1,944,444
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)	$ 1.98
Adjustments to Additional Paid in Capital, Warrant Issued	$ 3,498,667

CONVERTIBLE NOTES PAYABLE (De_2

CONVERTIBLE NOTES PAYABLE (Details) - Convertible Debt - USD ($)	Mar. 31, 2021	Dec. 31, 2020	Oct. 27, 2020
Kingswood Capital Markets [Member]
CONVERTIBLE NOTES PAYABLE (Details) - Convertible Debt [Line Items]
Convertible notes payable	$ 0	$ 3,850,000
Debt discount			$ (350,000)
Convertible Debt [Member]
CONVERTIBLE NOTES PAYABLE (Details) - Convertible Debt [Line Items]
Debt discount	0	(2,993,408)
Convertible Debt [Member]
CONVERTIBLE NOTES PAYABLE (Details) - Convertible Debt [Line Items]
Convertible notes payable	0	856,592
Convertible Debt [Member] | Debt Date March 15, 2018 [Member]
CONVERTIBLE NOTES PAYABLE (Details) - Convertible Debt [Line Items]
Convertible notes payable	$ 0	$ 3,850,000

CONVERTIBLE NOTES PAYABLE (De_3

CONVERTIBLE NOTES PAYABLE (Details) - Convertible Debt (Parentheticals) - Kingswood Capital Markets [Member] - USD ($)	Oct. 27, 2020	Mar. 31, 2021
CONVERTIBLE NOTES PAYABLE (Details) - Convertible Debt (Parentheticals) [Line Items]
Due	Jul. 27, 2021	Jul. 27, 2021
Interest		10.00%
Principal	$ 3,850,000	$ 3,850,000
Date		Oct. 27, 2020

NOTE PAYABLE, PAYROLL PROTECT_2

NOTE PAYABLE, PAYROLL PROTECTION PLAN LOAN (Details) - Preferred Bank PPP Loan [Member]	Apr. 29, 2020USD ($)
NOTE PAYABLE, PAYROLL PROTECTION PLAN LOAN (Details) [Line Items]
Debt Instrument, Face Amount	$ 272,713
Short-term Debt, Percentage Bearing Fixed Interest Rate	1.00%
Debt Instrument, Maturity Date	Apr. 29, 2022

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - SBA CARES Act Loan [Member]	Jun. 09, 2020USD ($)
LONG-TERM DEBT (Details) [Line Items]
Debt Instrument, Face Amount	$ 150,000
Debt Instrument, Periodic Payment	$ 731
Debt Instrument, Maturity Date	Jun. 1, 2050
Debt Instrument, Interest Rate, Stated Percentage	3.75%

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	$ 6.2
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration	$ 6.2

INCOME TAXES (Details) - Sched

INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Schedule of Effective Income Tax Rate Reconciliation [Abstract]
Book income at statutory rate	21.00%	21.00%
Others	0.00%	0.00%
Change in Valuation Allowance	(21.00%)	(21.00%)
Effective income tax rate	0.00%	0.00%

INCOME TAXES (Details) - Sch_2

INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Deferred tax assets (liabilities):
Net Operating Loss Carryforward	$ 2,135,000	$ 1,066,726
Others	0	0
Net deferred tax assets before valuation allowance	2,135,000	1,066,726
Valuation Allowance	(2,135,000)	(1,066,726)
Net deferred tax assets (liabilities)	$ 0	$ 0

STOCK OPTION AWARDS (Details)

STOCK OPTION AWARDS (Details) - Share-based Payment Arrangement, Option [Member] - USD ($)	1 Months Ended	3 Months Ended
	Jun. 30, 2020	Mar. 31, 2021	Mar. 31, 2020
STOCK OPTION AWARDS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	3,300,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Payment Arrangement, Noncash Expense		$ 797,613	$ 4,130
Share Price		$ 14
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number		25,717

STOCK OPTION AWARDS (Details) -

STOCK OPTION AWARDS (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
STOCK OPTION AWARDS (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Line Items]
Risk-free interest rate	0.29%	0.29%
Expected term	5 years	5 years
Expected volatility	229.49%
Expected dividend yield	0.00%	0.00%
Minimum [Member]
STOCK OPTION AWARDS (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Line Items]
Expected volatility	289.33%
Maximum [Member]
STOCK OPTION AWARDS (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Line Items]
Expected volatility		279.18%

STOCK OPTION AWARDS (Details)_2

STOCK OPTION AWARDS (Details) - Share-based Payment Arrangement, Option, Activity - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement, Option, Activity [Abstract]
Outstanding, Shares		514,607
Outstanding, Weighted- Average Exercise Price		$ 2.30
Outstanding, Weighted- Average Remaining Contractual Life	0 years	0 years
Outstanding, Aggregate Intrinsic Value	$ 7,018,853	$ 3,365,527
Granted, Shares	100,000
Granted, Weighted- Average Exercise Price	$ 7.63
Exercise, Shares	(44,832)
Exercised, Weighted- Average Exercise Price	$ 2.50
Forfeited or Expired, Shares	(68,428)
Forfeited or Expired, Weighted- Average Exercise Price	$ 2.50
Outstanding, Shares	496,782
Outstanding, Weighted- Average Exercise Price	$ 4.80
Outstanding, Aggregate Intrinsic Value	$ 7,018,853	$ 3,365,527
Exercisable, Shares	496,782
Exercisable, Weighted- Average Exercise Price	$ 4.81
Exercisable, Weighted- Average Remaining Contractual Life	0 years
Exercisable at December 31, 2020	$ 6,954,941
Vested and Expected to Vest, Shares	496,782
Vested and Expected to Vest, Weighted- Average Exercise Price	$ 4.81
Vested and Expected to Vest, Weighted- Average Remaining Contractual Life	0 years
Vested and Expected to Vest, Aggregate Intrinsic Value	$ 6,954,941

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Nov. 30, 2018	Mar. 31, 2021	Dec. 31, 2018
Monthly Consulting Fee [Member]
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Related Party Transaction, Amounts of Transaction	$ 10,000
Pop N Pay, LLC [Member]
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Equity Method Investment, Ownership Percentage		100.00%
Related Party Transaction, Amounts of Transaction		$ 3,000
Charge Savvy [Member]
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Equity Method Investment, Ownership Percentage	100.00%
Related Party Transaction, Description of Transaction			Sky owns 68.4% of Charge Savvy, LLC (“Charge Savvy”), an Illinois limited liability company. Haller serves as one of three Managing Members of Charge Savvy, along with Higher Ground Capital, LLC (owns 14%), and Jeff Nickel (owns 17.4%). The three managing members of Charge Savvy own the same percentages of Cultivate, as they do Charge Savvy. On January 25, 2021, the Company issued a press release announcing it had entered into a non-binding Memorandum of Understanding to acquire Charge Savvy, for total consideration of up to $52 million in restricted shares of the Company’s common stock with $31 million of that all-shares amount due upon closing. Charge Savvy was, until August 2020, one of the largest ISOs that we utilized in our ecosystem. The transaction assumes a per share price of $12.00.

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Nov. 05, 2019	Oct. 31, 2018	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency, Damages Sought	On November 25, 2019, four companies (the “Plaintiffs”) filed a complaint against GreenBox POS, LLC, GreenBox POS, Global Payout, Inc., MTrac Tech Corporation and Cultivate Technologies, LLC (collectively the “Defendants”) in the Superior Court of the State of California. Plaintiffs filed suit to recover processed funds and processing fees alleged to be withheld illegally (collectively, the “Withholding Suit”). The parties discussed arbitration and Plaintiffs later dismissed the case with prejudice. Plaintiffs refiled on February 28, 2020. The parties attended mediation on November 12, 2020, came to an agreement, and subsequently executed a Settlement Agreement and Release on or around November 23, 2020, whereby GreenBox is to pay $3.8M by March 15, 2021. On December 14, 2020 Plaintiffs filed a Request for Dismissal with prejudice. The Company settled in the amount of $3.8M and was paid in February 2021. The Company had payment processing liability in the amount of $3.4M which was off-set against $3.8M payment and recorded loss on merchant liability settlement in the amount of approximately $360,000 which was recorded in other expense in the unaudited condensed consolidated statements of operations for the three months ended March 31, 2021.	On or about October 31, 2018, Nisan and Errez received constitutive notice, regarding arbitration against Nisan, Errez, PrivCo and possibly PubCo, from Bentley Rothschild Capital Limited ("Bentley") and America 2030 Capital Limited (“America 2030”), both located in Nevis, West Indies, and both claiming breach of contract by Nisan and Errez of Nisan and Errez’s respective individual Master Loan Agreements and seeking forfeiture of 266,667 PubCo shares that PrivCo had transferred, on or about August 1, 2018, from PrivCo’s Control Shares under the terms of the MLAs.
Litigation Settlement, Amount Awarded to Other Party	$ 360,000
Operating Leases, Rent Expense			$ 33,104	$ 22,390
Operating Lease, Right-of-Use Asset			87,837		$ 117,795
Operating Lease, Liability			$ 89,017

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details)	1 Months Ended
	Apr. 30, 2021USD ($)
Building [Member] | Subsequent Event [Member]
SUBSEQUENT EVENTS (Details) [Line Items]
Operating Leases, Rent Expense, Minimum Rentals	$ 33,000