| Basis of Presentation and Summary of Significant Accounting Policies | NOTE 2 – BASIS OF PRESENTATION AND
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.
GAAP”) and the regulations of the United States Securities and Exchange Commission. The condensed consolidated financial
statements and accompanying notes are the representations of the Company’s management, who are responsible for their integrity
and objectivity. In their opinion, such financial information includes all adjustments considered necessary for a fair presentation
at such date and the operating results and cash flows for such periods. These condensed consolidated financial statements should
be read in conjunction with a reading of the Company’s consolidated financial statements and notes thereto included in Form
10-K filed with the SEC on March 25, 2019. Interim results of operations for the three months ended March 31, 2019 are not necessarily
indicative of future results for the full year. Forward Stock Split On April 12, 2018, the Company amended its
Articles of Incorporation to forward split all outstanding shares of common stock such that all issued and outstanding shares of
Common Stock shall be automatically combined and reclassified such that each share of Pre-Forward Split Stock shall be combined
and reclassified into four shares of Common Stock. The number of shares for all periods presented has been retroactively restated
to reflect the forward split. Consolidation The consolidated financial statements include
the accounts of TraqIQ, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated
in consolidation. Use of Estimates The preparation of financial statements in
conformity with 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 periods. These estimates include, but are not limited to, management’s estimate of provisions
required for non-collectible accounts receivable, depreciative lives of our assets, determination of technological feasibility,
and valuation allowances of our deferred tax assets. Actual results could differ from those estimates. Reclassification Certain prior period amounts have been reclassified
to conform with current period presentation with no effect on the Company’s net loss, total assets, liabilities equity or
cash flows. Cash Cash and cash equivalents include cash on hand
and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days
or less. The Company has no cash equivalents as of March 31, 2019 and December 31, 2018. Accounts Receivable and Concentration
of Credit Risk The Company considers accounts receivable,
net of allowance for returns and doubtful accounts, to be fully collectible. The allowance is based on management’s estimate
of the overall collectability of accounts receivable, considering historical losses and economic conditions. Based on these same
factors, individual accounts are charged off against the allowance when management determines those individual accounts are uncollectible.
Credit extended to customers is generally uncollateralized. Past-due status is based on contractual terms. Management has determined
that no allowance was required for the outstanding accounts receivable as of March 31, 2019 and December 31, 2018. Property and Equipment and Long-Lived
Assets Property and equipment is stated at cost. Depreciation
on property and equipment is computed using the straight-line method over the estimated useful lives of the assets, which range
from three to seven years. FASB Codification Topic 360 “Property,
Plant and Equipment” (ASC 360), requires that long-lived assets and certain identifiable intangibles held and used by an
entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may
not be recoverable. The application of ASC 360 has not materially affected the Company’s reported earnings, financial condition
or cash flows. Intangible assets with definite useful lives
are stated at cost less accumulated amortization. OmniM2M has had and currently does have computer software development underway,
however, has determined that the costs associated with this development, currently do not meet the requirements for capitalization
under ASC 985-20-25. OmniM2M will continue to monitor the development of such software in relationship to the requirements under
the ASC in the future to determine if capitalization is warranted. The Company will assess the impairment of identifiable
intangibles whenever events or changes in circumstances indicate that the carrying value may not be recoverable at the time they
do have intangible assets. Factors the Company considers to be important which could trigger an impairment review include the following: 1. Significant underperformance
relative to expected historical or projected future operating results; 2. Significant changes
in the manner of use of the acquired assets or the strategy for the overall business; and 3. Significant negative
industry or economic trends. When the Company determines that the carrying
value of intangibles may not be recoverable based upon the existence of one or more of the above indicators of impairment and the
carrying value of the asset cannot be recovered from projected undiscounted cash flows, the Company records an impairment charge.
The Company will measure any impairment based on a projected discounted cash flow method using a discount rate determined by management
to be commensurate with the risk inherent in the current business model. Significant management judgment is required in determining
whether an indicator of impairment exists and in projecting cash flows. Management has determined that no impairment of long-lived
assets is required for the periods ended March 31, 2019 and December 31, 2018. Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09,
Revenue from Contracts with Customers (Topic 606), specifically ASC 606-10-50-12. This standard provides a single set of guidelines
for revenue recognition to be used across all industries and requires additional disclosures. The updated guidance introduces a
five-step model to achieve its core principal of the entity recognizing revenue to depict the transfer of goods or services to
customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or
services. The Company adopted the updated guidance effective January 1, 2018 using the full retrospective method, however the new
standard did not have a material impact on its consolidated financial position and consolidated results of operations, as it did
not change the manner or timing of recognizing revenue. Trucking Revenue The Company’s contracts with customers
are generally on a purchase order basis and represent a single stand-alone performance obligation to transport property on behalf
of a customer at a pre-determined rate. The performance obligation is satisfied at the point in time in which the delivery of property
is complete and the Company generally collect payment within 30 days of delivery. Accordingly, revenue for each contract is recognized
when the Company’s performance obligation is complete. There are no agency relationships in any if the services related to
the trucking sector. Software Solution Revenue Revenue from arrangements with customers is
recognized based on the Company’s satisfaction of distinct performance obligations identified in each agreement, generally
at a point in time as discussed in ASC 606. In instances where multiple performance obligations are identified, the Company allocates
the transaction price to each performance obligation based on relative selling prices of each distinct product or service, and
recognizes revenue related to each performance obligation at the points in time that each performance obligation is satisfied.
The Company’s performance obligation includes providing connectivity to software, generally through a monthly subscription,
where the Company typically satisfies its performance obligations prior to the submission of invoices to the customer for such
services. The Company’s performance obligation for hardware components that are purchased by the customer in connection with
the solution is delivery of the purchased device, which is satisfied prior to invoicing. The Company provides a twelve-month warranty
on their hardware. All units deployed by the Company are past the twelve-month period, thus the Company has not accrued for a warranty
liability. The Company generally collects payment within 30 to 60 days of completion of the performance obligation and there are
no agency relationships. The following is a summary of revenue for the
three months ended March 31, 2019 and 2018, disaggregated by type:
2019 2018
Trucking Revenue $ - $ 79,078
Software Solution Revenue 5,565 10,708
$ 5,565 $ 89,786 Uncertain Tax Positions The Company follows ASC 740-10, “Accounting
for Uncertainty in Income Taxes”. This requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not”
approach. Management evaluates their tax positions on an annual basis. The Company files income tax returns in the
U.S. federal tax jurisdiction and various state tax jurisdictions. 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. Fair Value of Financial Instruments ASC 825, “ Financial Instruments Recoverability of Long-Lived Assets The Company reviews recoverability of long-lived
assets on a periodic basis whenever events and changes in circumstances have occurred which may indicate a possible impairment.
The assessment for potential impairment is based primarily on the Company’s ability to recover the carrying value of its
long-lived assets from expected future cash flows from its operations on an undiscounted basis. If such assets are determined to
be impaired, the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets.
Fixed assets to be disposed of by sale will be carried at the lower of the then current carrying value or fair value less estimated
costs to sell. Earnings
(Loss) Per Share of Common Stock Basic net income (loss) per common share is
computed using the weighted average number of common shares outstanding. Diluted earnings per share (EPS) include additional dilution
from common stock equivalents, such as convertible notes, preferred stock, stock issuable pursuant to the exercise of stock options
and warrants. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports
a loss because to do so would be anti-dilutive for periods presented. An uncertain number of shares underlying convertible debt
have been excluded from the computation of loss per share because their impact was anti-dilutive. Related Party Transactions Parties are considered to be related to the
Company if the parties directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common
control with the Company. Related parties also include principal stockholders of the Company, its management, members of the immediate
families of principal stockholders of the Company and its management and other parties with which the Company may deal where one
party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting
parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions.
All transactions shall be recorded at fair value of the goods or services exchanged. Property purchased from a related party is
recorded at the cost to the related party and any payment to or on behalf of the related party in excess of the cost is reflected
as compensation or distribution to related parties depending on the transaction. Recently Issued Accounting Standards In February 2016, the FASB issued ASU No. 2016-02,
“ Leases (Topic 842)”. In June 2016, the FASB issued ASU 2016-13,
Financial Instruments-Credit Losses There were other updates recently issued, most
of which represent technical corrections to the accounting literature or application to specific industries or transactions that
are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. Going Concern The Company has an accumulated deficit of $1,780,777
and a working capital deficit of $1,765,687, as of March 31, 2019, and a working capital deficit of $1,658,685 as of December 31,
2018. As a result of these factors, Management has determined that there is substantial doubt about the Company ability to continue
as a going concern. These condensed consolidated financial statements
of the Company have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things,
the realization of assets and the satisfaction of liabilities in the normal course of business over a reasonable period of time.
The condensed consolidated financial statements of the Company do not include any adjustments that may result from the outcome
of the uncertainties. The Company plans to raise additional capital
to carry out its business plan. The Company’s ability to raise additional capital through future equity and debt securities
issuances is unknown. Obtaining additional financing, the successful development of the Company’s contemplated plan of operations,
ultimately, to profitable operations are necessary for the Company to continue operations. |
