Cover
Cover | 6 Months Ended |
Jun. 30, 2021 | |
Cover [Abstract] | |
Document Type | S-1 |
Amendment Flag | false |
Entity Registrant Name | TRAQIQ, INC. |
Entity Central Index Key | 0001514056 |
Entity Tax Identification Number | 30-0580318 |
Entity Incorporation, State or Country Code | CA |
Entity Address, Address Line One | 4205 SE 36th Street |
Entity Address, Address Line Two | Suite 100 |
Entity Address, City or Town | Bellevue |
Entity Address, State or Province | WA |
Entity Address, Postal Zip Code | 98006 |
City Area Code | (425) |
Local Phone Number | 818-0560 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | |||
Cash | $ 137,530 | $ 29,658 | $ 9,094 |
Accounts receivable, net | 677,302 | 521,618 | 602,155 |
Note receivable - related party | 227,877 | ||
Prepaid expenses and other current assets | 481,606 | 322,286 | 207,581 |
Total Current Assets | 1,296,438 | 1,101,439 | 818,830 |
Fixed assets, net | 36,819 | 36,373 | 48,681 |
Intangible assets, net | 563,632 | 444,584 | 477,824 |
Goodwill | 6,507,680 | ||
Restricted cash | 165,488 | 28,746 | 182,627 |
Long-term investment | 1,440 | 40,603 | 41,617 |
Right-of-use asset | 118,237 | 126,118 | 537,268 |
Other assets | 3,409 | 3,196 | 32,639 |
Total Non-current Assets | 7,396,705 | 679,620 | 1,320,656 |
TOTAL ASSETS | 8,693,143 | 1,781,059 | 2,139,486 |
Current Liabilities: | |||
Accounts payable and accrued expenses | 1,616,953 | 1,163,505 | 883,845 |
Cash overdraft | 233,729 | 188,721 | 427,890 |
Accrued payroll and related taxes | 447,569 | 327,084 | 291,586 |
Accrued taxes and duties payable | 157,152 | 46,577 | 50,623 |
Deferred revenue | 39,215 | ||
Derivative liability | 1,510,000 | ||
Contingent consideration - Rohuma | 1,383,954 | ||
Contingent consideration - Mimo | 656,179 | ||
Current portion - lease liability | 11,168 | 8,779 | 122,343 |
Current portion - long-term debt - related parties | 2,629,839 | 1,843,399 | 1,306,737 |
Current portion - long-term debt | 317,876 | 133,761 | 191,508 |
Current portion - convertible notes payable, net of discounts | 328,098 | ||
Current portion - convertible debt - long-term debt - related and unrelated parties | 85,084 | 241,334 | 241,334 |
Total Current Liabilities | 9,416,816 | 3,953,160 | 3,515,866 |
Long-term debt - related parties, net of current portion | 15,000 | 32,000 | |
Long-term debt, net of current portion | 55,292 | 59,856 | 19,202 |
Lease liability, net of current portion | 116,751 | 125,219 | 432,800 |
Total Non-current Liabilities | 187,043 | 185,075 | 484,002 |
Total Liabilities | 9,603,859 | 4,138,235 | 3,999,868 |
Commitments and contingencies | |||
STOCKHOLDERS’ EQUITY (DEFICIT) | |||
Preferred stock, par value, $0.0001, 10,000,000 shares authorized, Series A Convertible Preferred, 50,000 and 50,000 shares issued and outstanding, respectively | 5 | 5 | 5 |
Common stock, par value, $0.0001, 300,000,000 shares authorized, 31,430,575 and 27,297,960 issued and outstanding, respectively | 3,143 | 2,730 | 2,730 |
Additional paid in capital | 5,090,929 | 117,261 | 12,623 |
Accumulated deficit | (6,008,129) | (2,504,893) | (1,896,984) |
Accumulated other comprehensive income (loss) | 773 | 27,721 | 21,244 |
Total Stockholders’ Equity (Deficit) before Non-controlling Interest | (913,279) | (2,357,176) | |
Non-controlling interest | 2,563 | ||
Total Stockholders’ Equity (Deficit) | (910,716) | (2,357,176) | (1,860,382) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ 8,693,143 | $ 1,781,059 | $ 2,139,486 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 | 300,000,000 |
Common stock, shares issued | 31,430,575 | 27,297,960 | 27,297,960 |
Common stock, shares outstanding | 31,430,575 | 27,297,960 | 27,297,960 |
Series A Convertible Preferred Stock [Member] | |||
Preferred stock, shares issued | 50,000 | 50,000 | 50,000 |
Preferred stock, shares outstanding | 50,000 | 50,000 | 50,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||||||
REVENUE | $ 937,002 | $ 230,258 | $ 1,319,388 | $ 521,319 | $ 1,009,949 | $ 680,732 |
COST OF REVENUE | 788,196 | 129,545 | 1,012,028 | 268,683 | 546,569 | 431,363 |
GROSS PROFIT | 148,806 | 100,713 | 307,360 | 252,636 | 463,380 | 249,369 |
OPERATING EXPENSES | ||||||
Salaries and salary related costs | 160,582 | 48,214 | 309,013 | 94,639 | 284,258 | 114,615 |
Professional fees | 135,863 | 55,253 | 287,288 | 115,135 | 201,430 | 287,775 |
Rent expense | 7,725 | 30,886 | 15,511 | 63,895 | 101,845 | 88,863 |
Depreciation and amortization expense | 20,301 | 12,076 | 37,019 | 24,806 | 47,988 | 42,840 |
General and administrative expenses | 692,245 | 26,661 | 1,527,969 | 61,419 | 182,827 | 160,919 |
Total Operating Expenses | 1,016,716 | 173,090 | 2,176,800 | 359,894 | 818,348 | 695,012 |
OPERATING LOSS | (867,910) | (72,377) | (1,869,440) | (107,258) | (354,968) | (445,643) |
OTHER INCOME (EXPENSE) | ||||||
Change in fair value of derivative liability | (691,125) | (1,196,132) | ||||
Bargain purchase gain | 417,148 | |||||
PPP forgiveness and other income | 10,000 | 10,073 | 10,000 | 76,248 | 55,450 | |
Interest expense, net of interest income | (217,545) | (81,986) | (363,178) | (165,170) | (328,380) | (250,164) |
Total other income (expense) | (908,670) | (71,986) | (1,549,237) | (155,170) | (252,132) | 222,434 |
NET LOSS BEFORE PROVISION FOR INCOME TAXES | (1,776,580) | (144,363) | (3,418,677) | (262,428) | (607,100) | (223,209) |
Provision for income taxes | 33,722 | (3) | 81,996 | 806 | 809 | |
NET LOSS | (1,810,302) | (144,360) | (3,500,673) | (263,234) | (607,909) | (223,209) |
NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | (1,110) | (2,563) | ||||
NET LOSS ATTRIBUTABLE TO CONTROLLING INTEREST | (1,811,412) | (144,360) | (3,503,236) | (263,234) | (607,909) | (223,209) |
Other comprehensive loss | ||||||
Foreign currency translations adjustment | (20,809) | (11,447) | (26,948) | (37,607) | 6,477 | 21,244 |
Comprehensive income (loss) | $ (1,832,221) | $ (155,807) | $ (3,530,184) | $ (300,841) | $ (601,432) | $ (201,965) |
Net loss per share | $ (0.06) | $ (0.01) | $ (0.11) | $ (0.01) | $ (0.02) | $ (0.01) |
Weighted average common shares outstanding - basic and diluted | 31,168,641 | 27,297,960 | 30,478,877 | 27,297,960 | 27,297,960 | 27,297,960 |
Comprehensive loss | $ (1,832,221) | $ (155,807) | $ (3,530,184) | $ (300,841) | $ (601,432) | $ (201,965) |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit) - USD ($) | Preferred Stock Series A [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2018 | $ 5 | $ 2,730 | $ 12,355 | $ (1,673,775) | $ (1,658,685) | ||
Balance, shares at Dec. 31, 2018 | 50,000 | 27,297,960 | |||||
Acquisition of Mann-India | 268 | 5,116 | 5,384 | ||||
Net loss for the period | (223,209) | 16,128 | (207,081) | ||||
Balance at Dec. 31, 2019 | $ 5 | $ 2,730 | 12,623 | (1,896,984) | 21,244 | (1,860,382) | |
Balance, shares at Dec. 31, 2019 | 50,000 | 27,297,960 | |||||
Net loss for the period | (118,874) | (26,160) | (145,034) | ||||
Balance at Mar. 31, 2020 | $ 5 | $ 2,730 | 12,623 | (2,015,858) | (4,916) | (2,005,416) | |
Balance, shares at Mar. 31, 2020 | 50,000 | 27,297,960 | |||||
Balance at Dec. 31, 2019 | $ 5 | $ 2,730 | 12,623 | (1,896,984) | 21,244 | (1,860,382) | |
Balance, shares at Dec. 31, 2019 | 50,000 | 27,297,960 | |||||
Stock-based compensation on granting of options | 104,638 | 104,638 | |||||
Net loss for the period | (607,909) | 6,477 | (601,432) | ||||
Balance at Dec. 31, 2020 | $ 5 | $ 2,730 | 117,261 | (2,504,893) | 27,721 | (2,357,176) | |
Balance, shares at Dec. 31, 2020 | 50,000 | 27,297,960 | |||||
Balance at Mar. 31, 2020 | $ 5 | $ 2,730 | 12,623 | (2,015,858) | (4,916) | (2,005,416) | |
Balance, shares at Mar. 31, 2020 | 50,000 | 27,297,960 | |||||
Net loss for the period | (144,360) | (11,447) | (155,807) | ||||
Balance at Jun. 30, 2020 | $ 5 | $ 2,730 | 12,623 | (2,160,218) | (16,363) | (2,161,223) | |
Balance, shares at Jun. 30, 2020 | 50,000 | 27,297,960 | |||||
Balance at Dec. 31, 2020 | $ 5 | $ 2,730 | 117,261 | (2,504,893) | 27,721 | (2,357,176) | |
Balance, shares at Dec. 31, 2020 | 50,000 | 27,297,960 | |||||
Shares of stock issued for cash | $ 57 | 455,943 | 456,000 | ||||
Shares of stock issued for cash, shares | 570,000 | ||||||
Shares of stock issued for conversion of notes payable and accrued interest | $ 26 | 224,661 | 224,687 | ||||
Shares of stock issued for conversion of notes payable and accrued interest, shares | 264,338 | ||||||
Shares of stock issued for services rendered | $ 40 | 436,345 | 436,385 | ||||
Shares of stock issued for services rendered, shares | 400,000 | ||||||
Shares of stock issued for acquisition of Rohuma (first tranche) | $ 256 | 2,049,565 | 2,049,821 | ||||
Shares of stock issued for acquisition of Rohuma (first tranche), shares | 2,562,277 | ||||||
Stock-based compensation on granting of options | 108,341 | 108,341 | |||||
Stock-based compensation - warrants granted for consulting | 68,642 | 68,642 | |||||
Warrants earned for acquisition of Mimo | 984,268 | 984,268 | |||||
Net loss for the period | (1,691,824) | (6,139) | 1,453 | (1,696,510) | |||
Balance at Mar. 31, 2021 | $ 5 | $ 3,109 | 4,445,026 | (4,196,717) | 21,582 | 1,453 | 274,458 |
Balance, shares at Mar. 31, 2021 | 50,000 | 31,094,575 | |||||
Shares of stock issued for cash | $ 4 | 38,496 | 38,500 | ||||
Shares of stock issued for cash, shares | 35,000 | ||||||
Shares of stock issued for services rendered | 1,750 | 1,750 | |||||
Shares of stock issued for services rendered, shares | 1,000 | ||||||
Stock-based compensation on granting of options | 118,465 | 118,465 | |||||
Stock-based compensation for restricted stock grants (shares not issued) | 40,222 | 40,222 | |||||
Shares of stock issued for providing note payable | $ 30 | 446,970 | 447,000 | ||||
Shares of stock issued for providing note payable, shares | 300,000 | ||||||
Net loss for the period | (1,811,412) | (20,809) | 1,110 | (1,831,111) | |||
Balance at Jun. 30, 2021 | $ 5 | $ 3,143 | $ 5,090,929 | $ (6,008,129) | $ 773 | $ 2,563 | $ (910,716) |
Balance, shares at Jun. 30, 2021 | 50,000 | 31,430,575 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOW FROM OPERTING ACTIVIITES | ||||
Net loss | $ (3,503,236) | $ (263,234) | $ (607,909) | $ (223,209) |
Adjustments to reconcile net loss to net cash (used in) operating activities | ||||
Change in non-controlling interest | 2,563 | |||
Bargain purchase gain | (417,148) | |||
Bad debt expense | 223,673 | 60,460 | ||
Forgiveness of debt | (10,087) | (64,725) | (55,450) | |
Depreciation and amortization | 37,019 | 24,806 | 47,988 | 42,840 |
Lease cost, net of repayment | 1,936 | 5,724 | 6,297 | 13,226 |
Foreign currency (gain) loss | 2,164 | (10,401) | 29,587 | 18,882 |
Stock-based compensation | 295,448 | 104,638 | ||
Common stock issued for services rendered | 925,356 | |||
Change in fair value of derivative liability | 1,196,132 | |||
Amortization of discounts on debt | 146,966 | |||
Changes in assets and liabilities | ||||
Accounts receivable | (415,092) | 56,303 | 65,816 | (153,492) |
Prepaid expenses and other current assets | 90,730 | (84,563) | (144,600) | 12,019 |
Other assets | 28,647 | (4,823) | ||
Accounts payable and accrued expenses | (325,373) | 215,446 | 293,943 | 238,873 |
Accrued payroll and payroll taxes | 14,738 | 20,526 | 55,967 | (29,669) |
Accrued duties and taxes | 76,995 | 20,105 | (2,813) | (15,395) |
Deferred revenue | 30,974 | (3,623) | ||
Total adjustments | 2,294,142 | 247,946 | 420,745 | (293,300) |
Net cash (used in) operating activities | (1,209,094) | (15,288) | (187,164) | (516,509) |
CASH FLOWS FROM INVESTING ACTIVITES | ||||
Cash received in acquisition of Mimo | 42,905 | 234 | ||
Cash received in acquisition of Rohuma | 5,951 | |||
Acquisition of Mimo | (21,856) | |||
Restricted cash received in acquisition of Mann | 185,399 | |||
Advances of note receivable - related party | (173,802) | (227,877) | ||
Acquisition of fixed assets | (2,010) | (2,011) | (3,709) | (3,417) |
Net cash provided by (used in) investing activities | 24,990 | (175,813) | (231,586) | 182,216 |
CASH FLOWS FROM FINANCING ACTIVITES | ||||
Increase in cash overdraft | 45,258 | 37,277 | (228,745) | (36,691) |
Proceeds from the issuance of common stock | 494,500 | |||
Proceeds from convertible notes | 515,000 | |||
Repayment of convertible notes | (20,000) | |||
Proceeds from long-term debt - related parties | 1,122,096 | 144,759 | 554,940 | 593,201 |
Repayment of long-term debt - related parties | (681,968) | (25,000) | (42,100) | (104,841) |
Proceeds from long-term debt | 50,331 | 42,797 | 197,540 | 143,600 |
Repayments of long-term debt | (96,499) | (25,284) | (196,202) | (71,602) |
Net cash provided by financing activities | 1,428,718 | 174,549 | 285,433 | 523,667 |
NET INCREASE (DECREASE) IN CASH AND RESTRICTED CASH | 244,614 | (16,552) | (133,317) | 189,374 |
CASH AND RESTRICTED CASH - BEGINNING OF PERIOD | 58,404 | 191,721 | 191,721 | 2,347 |
CASH AND RESTRICTED CASH - END OF PERIOD | 303,018 | 175,169 | 58,404 | 191,721 |
CASH PAID DURING THE PERIOD FOR: | ||||
Interest expense | 21,908 | 55,484 | 84,830 | 11,782 |
Income taxes | 81,996 | 946 | 1,609 | |
Acquisition of Mann: | ||||
Accounts receivable | 506,951 | |||
Prepaid and other current assets | 216,956 | |||
Right-of-use asset | 576,566 | |||
Fixed assets | 68,260 | |||
Other assets | 37,950 | |||
Investment | 42,248 | |||
Customer relationships | 448,800 | |||
Tradename | 49,799 | |||
Accounts payable and accrued expenses | (173,197) | |||
Accrued payroll and related taxes | (325,629) | |||
Accrued duties and taxes | (66,765) | |||
Lease liability | (585,207) | |||
Deferred revenue | (3,618) | |||
Long-term debt | (90,314) | |||
Cash overdraft | (471,017) | |||
Cash | 234 | |||
Restricted cash | 185,399 | |||
Total net assets acquired | 417,416 | |||
Consideration per Share Exchange Agreement | 268 | |||
Goodwill/(Bargain Purchase Gain) | $ (417,148) | |||
Common stock issued for conversion of long-term debt, related and unrelated parties | 224,688 | |||
Rohuma, LLC [Member] | ||||
Acquisition of Mann: | ||||
Accounts receivable | 4,179 | |||
Prepaid and other current assets | 8,943 | |||
Fixed assets | 4,512 | |||
Investment | 1,440 | |||
Accounts payable and accrued expenses | (58,153) | |||
Accrued duties and taxes | (2,688) | |||
Long-term debt - related parties | (37,776) | |||
Long-term debt | (10,000) | |||
Cash overdraft | (2,980) | |||
Cash | 6,027 | |||
Total net assets acquired | (86,496) | |||
Consideration per Share Exchange Agreement | 3,433,776 | |||
Goodwill/(Bargain Purchase Gain) | 3,520,272 | |||
MIMO Technologies PVT Ltd [Member] | ||||
Acquisition of Mann: | ||||
Accounts receivable | 58,692 | |||
Prepaid and other current assets | 272,872 | |||
Fixed and intangible assets | 153,186 | |||
Accounts payable and accrued expenses | (708,833) | |||
Accrued payroll and related taxes | (104,750) | |||
Accrued duties and taxes | (28,213) | |||
Long-term debt - related parties | (343,118) | |||
Long-term debt | (236,712) | |||
Comprehensive income | (42,735) | |||
Cash | 43,851 | |||
Total net assets acquired | (935,760) | |||
Consideration per Share Exchange Agreement | 2,063,315 | |||
Goodwill/(Bargain Purchase Gain) | $ 2,999,075 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS TraQiQ, Inc. (along with its wholly owned subsidiaries, referred to herein as the “Company”) was incorporated in the State of California on September 9, 2009 as Thunderclap Entertainment, Inc. On July 14, 2017, Thunderclap Entertainment, Inc. changed its name to TraQiQ, Inc. On July 19, 2017, the Company entered into a Share Exchange Agreement (“Share Exchange”) with the stockholders of OmniM2M, Inc. (“OmniM2M”) and TraQiQ Solutions, Inc. dba Ci2i Services, Inc. (formerly Ci2i Services, Inc. – amended November 6, 2019) (“Ci2i”) whereby the stockholders of Omni and Ci2i exchanged all of their respective shares, representing 100 12,000,000 12,000,000 18,109 TraQiQ Solutions, Inc. This entity was formed about over 15 years ago and has most recently been providing technology solutions, predominantly in the business intelligence and data analytics arenas. The Company has been a vendor to Microsoft for over 10 Ci2i’s cloud solutions and analytics services comprise software development, program management, project management, and business analytics services. TraQiQ Solutions Private Limited On May 16, 2019, the Company entered into a Share Exchange Agreement with Mann-India Technologies Private Ltd., an Indian Corporation (“Mann”). On January 2, 2020, Mann changed its name to TraQiQ Solutions Private Limited (“TRAQ Pvt Ltd”). Pursuant to the Share Exchange Agreement with Mann, the Company acquired 100 % of the shares of Mann and assumed certain net liabilities in exchange for warrants exercisable over a five-years to purchase 1,329,272 shares of common stock of the Company valued at $ 268 . The warrants will be exercisable as follows: (i) 100,771 warrants immediately; (ii) 859,951 warrants exercisable one-year after the date of closing, which was extended to March 31, 2021; and (iii) 368,550 warrants exercisable two-years after the date of closing. This transaction is being recorded as a business combination under ASC 805. The warrants that are exercisable in one-year and two-years are conditioned upon TRAQ Pvt Ltd. achieving certain revenue figures and pre-tax profit percentages. TRAQ Pvt Ltd. must achieve target revenue of $ 1.1 25 Mann-India Private limited was renamed to TraQiQ Solutions Private Limited shortly after acquisition by TraQiQ Inc. TRAQ Pvt Ltd. was established in May 2000 and is headquartered in New Delhi, India. TRAQ Pvt Ltd. is a leading software development company which, with the advent of technology, has evolved as a mature and fast-growing company committed to provide reliable and cost-effective software solutions across industries all over the world. TRAQ Pvt Ltd. has its own experienced team of software developers dedicated towards developing various kinds of customized software. TraQ Pvt Ltd. has been doing business around the world for over 15 years, with particular emphasis on Latin America and India. The customer list includes large enterprise Finance and Insurance companies across Latin America. The company’s product portfolio has evolved rapidly and now includes enterprise ready solutions for payment processing, mobile wallets, micro lending solutions and digital transformation. The Company helps businesses in emerging economies leverage the gig/task economy with a three-prong approach: ● Target: ● Transact: ● Deliver: With operations concentrated in India, Southeast Asia and Latin America, the Company is capitalizing on such growing trends as customer analytics, digital payments taking the place of traditional banking transactions and last mile delivery using task associates. Through its TraQSuite product, the Company provides an integrated solution for businesses seeking to set up an e-commerce operation with customer identification and targeting, payment systems and delivery. With its Mimo subsidiary, the Company runs a delivery and task network of approximately 14,000 people across India. Target From its early uses for recommendations of on-line movie preferences and suggested products for on-line shopping, artificial intelligence has become a powerful tool for driving the transformation of business to digital platforms and facilitating business growth. The Company’s management believes the use and application of artificial intelligence solutions to the retail analytics market will grow rapidly as tech resources using it become more affordable and easily available. The Company uses artificial intelligence tools to provide business intelligence and data solutions. The Company capitalizes on the desire of customers to be rewarded by helping its B2B clients build loyalty and rewards programs. Many businesses have started offering discounts and rewards to customers each time they use their mobile wallets or buy their product or service as a way to incentivize customers to remain loyal to their brand. Once some retailers begin offering such a program, customers expect it with all of their transactions, and retailers that do not offer such an incentive risk a competitive disadvantage. The Company can help in building a more effective dashboards for AI-based decision-making tools or can build real-time systems that monitor data feeds from customer transactions. The Company’s clients can use insights from this data to improve customer experience, improve their business operations and provide the right target audience for marketing initiatives. The Company’s Kringle™ tool analyzes the behaviors and transactions of the customers of a business across multiple purchasing channels and delivers real-time intelligence to a business, enabling targeted marketing. Powered by an AI-based e-commerce Intelligence Engine developed over the past seven years by a team of machine learning engineers, data scientists and PHDs, Kringle™ is able to deliver real time, automated one-to-one recommendations and personalized content across all customer touch points. Transact Payment methods for goods and services have evolved over thousands of years from barter to precious metal coins to paper money to checks to credit cards and, most recently, to digital currency and payments. Digital payments convert traditional cash transactions to cashless ones using software and other modern technologies. Digital payments create efficiencies and save money, and they also leave a digital trail that protects the users. The business world has aggressively moved toward digital payments with ACH payments, wire transfers and EDI-based solutions. In the consumer world, where customers have access to digital payment tools such as mobile wallets through financial institutions, their use has evolved from being a niche payment method for consumers who are digitally-savvy to a payment method which is mainstream. The Company views this untapped market for digital payments as an opportunity, both for businesses and financial institutions that want to supply products and services to these customers and for the Company to help businesses satisfy that customer demand. The Company’s TraQSuite™ product offers an enterprise-ready suite of FinTech tools. TraQSuite enables payment processing, mobile wallets, micro lending solutions and digital transformation solutions. Users can virtually store and use financial assets including G2P, B2P, welfare, salary, cards and micro banking like loans and insurance. Both banked and unbanked end customers can buy products and services and pay with their mobile devices using TraQSuite. The system also allows businesses and their customers to settle their transactions across all wallets, vendors, currencies and geographies. Deliver In order to complete a sale, a business must actually deliver its products to its customers, which usually includes the “last mile” to the customer’s physical location. While this has always been significant, the global COVID-19 pandemic has dramatically increased demand for product delivery, turning a valuable additional service into a “must-have” capability for businesses. Last-mile delivery aims to transport or deliver an item to its recipient in the quickest way possible, and customers will often make purchase decisions based on the speed, cost and reliability of delivery of the product. The traditional approach to last-mile delivery is owning an operational fleet, which poses a high risk and potentially high costs, making it an unattractive solution for all by the largest retailers. Smaller companies often prefer to partner with delivery network carriers (DNCs) to handle the delivery, which allows the retailer to transfer a portion of the risk to one or more DNC providers. DNC providers often adopt a “gig” mindset using short-term independent contractors to make the actual delivery, which allows a DNC provider to transact and operate at a fraction of the cost of retaining and operating a delivery fleet. A “gig” business model uses a flexible work force of short-term, freelance independent contractors fulfilling targeted needs and paid on a per-task basis. This can benefit workers seeking lifestyle flexibility and businesses seeking a workforce sized to meet the needs of the moment. The Company facilitates last-mile delivery and utilization of the “gig” workforce trend in two important ways – by providing software that allows its business clients to set up and manage last-mile delivery and task-based systems and by actually providing task-worker-based last mile delivery and payment collection systems in a major emerging market where there is no realistic alternative. TraQSuite’s Last Mile software module provides a distribution platform that allows businesses to set up task-based networks rapidly – facilitating and validating transactions, and tracking and managing task associates. The Last-Mile software module enables a complete distribution engine for the new economy, designed to manage thousands of task associates across multiple geographies to deliver products and services to users while tracking the task associates and providing validation for the transactions. Mobile apps enable data sharing, validation and measurement of customer satisfaction. In addition, the Company provides actual delivery and task-based services for businesses in one emerging market to solve problems that cannot be conveniently addressed using traditional methods. The Company’s Mimo-Technologies subsidiary runs a network of approximately 14,000 task associates in India. This team was set up by and is managed with the TraQSuite product. In addition to its rapidly growing business making task-based food, alcohol and medicine deliveries, Mimo is now collecting payments on behalf of B2B customers in India. The area of payment collections is especially critical for financial services companies who need to collect money from people without credit cards or a bank accounts. Mimo associates collect monthly payments from entrepreneurs with small microfinance loans for equipment or working capital. Mimo associates also collect payments from subscribers to Railtel, one of the largest broadband infrastructure providers in India that operates a nationwide fiber network running alongside train tracks. Mimo collects a transaction fee for each transaction that is completed. All the task associates are independent contractors who get paid for every task that is completed. Rohuma, LLC On January 22, 2021, the Company entered into a Share Exchange Agreement with Rohuma, LLC, a Delaware limited liability company (“Rohuma”) and its members, whereby the Rohuna members agreed to exchange all of their respective membership interests in Rohuma in exchange for 4,292,220 2,562,277 3,433,776 0.80 99 1 1 1 Rohuma dba Kringle.ai is a California based software solutions company that enables digital and mobile commerce by providing enterprise class applications that cover loyalty and rewards products, payments, online ordering, distribution logistics for retail and more. Kringle analyzes customers’ omni-channel behaviors and transactions. Using AI for digital commerce, Kringle is able to deliver real time, automated 1:1 recommendations and personalized content across all customer touch points. Mimo Technologies Private Limited On February 17, 2021, the Company entered into a Share Exchange Agreement with Mimo Technologies Private Ltd., and Indian corporation (“Mimo”) and its shareholders, whereby the Mimo shareholders agreed to exchange all of their respective shares in Mimo in exchange for warrants to purchase 1,367,539 820,524 547,015 three years 0.001 1,640,447 984,268 656,179 258,736 123,778 40,354 22,338 99 1 Mimo provides delivery and task worker solutions across India. Mimo works with Banking, Financial, Logistics and Distribution companies, to take their products and services to semi-urban and rural India. Mimo trains the agents in each Product or Service through an online and classroom training platform. The company powers the gig economy task workers throughout the country and provides a very valuable source of employment for young people who may or may not have a high school diploma. | NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS TraQiQ, Inc. (along with its wholly owned subsidiaries, referred to herein as the “Company”) was incorporated in the State of California on September 9, 2009 as Thunderclap Entertainment, Inc. On July 14, 2017, Thunderclap Entertainment, Inc. changed its name to TraQiQ, Inc. On July 19, 2017, the Company entered into a Share Exchange Agreement (“Share Exchange”) with the stockholders of OmniM2M, Inc. (“OmniM2M”) and TraQiQ Solutions, Inc. dba Ci2i Services, Inc. (formerly Ci2i Services, Inc. – amended November 6, 2019) (“Ci2i”) whereby the stockholders of Omni and Ci2i exchanged all of their respective shares, representing 100% 12,000,000 12,000,000 18,109 TraQiQ Solutions, Inc. This entity was formed about over 15 years ago and has most recently been providing technology solutions, predominantly in the business intelligence and data analytics arenas. The Company has been a vendor to Microsoft for over 10 years and has done work with many Microsoft product and business groups, including Microsoft Azure and Microsoft Media planning. Ci2i has worked closely with customers where a wide variety of analytics solutions were built. Ci2i’s cloud solutions and analytics services comprise software development, program management, project management, and business analytics services. On May 16, 2019, the Company entered into a Share Exchange Agreement with Mann-India Technologies Private Ltd., an Indian Corporation (“Mann”). On January 2, 2020, Mann changed its name to TRAQIQ Solutions Private Limited (“TRAQ Pvt Ltd”). Pursuant to the Share Exchange Agreement with Mann, the Company acquired 100% five 1,329,272 268 100,771 859,951 368,550 The warrants that are exercisable in one-year and two-years are conditioned upon TRAQ Pvt Ltd. achieving certain revenue figures and pre-tax profit percentages. TRAQ Pvt Ltd. must achieve target revenue of $ 1.1 25% Mann-India Private limited was renamed to TraQiQ Solutions Private Limited shortly after acquisition by TraQiQ Inc. The warrants that are exercisable in one-year (which were extended to March 31, 2021) and two-years are conditioned upon TRAQ Pvt Ltd. achieving certain revenue figures and pre-tax profit percentages. TRAQ Pvt Ltd. must achieve target revenue of $ 1.1 25 TRAQ Pvt Ltd. was established in May 2000 and is headquartered in New Delhi, India. TRAQ Pvt Ltd. is a leading software development company which, with the advent of technology, has evolved as a mature and fast-growing company committed to provide reliable and cost-effective software solutions across industries all over the world. TRAQ Pvt Ltd. has its own experienced team of software developers dedicated towards developing various kinds of customized software. TraQ Pvt Ltd. has been doing business around the world for over 15 years, with particular emphasis on Latin America and India. The customer list includes large enterprise Finance and Insurance companies across Latin America. The company’s product portfolio has evolved rapidly and now includes enterprise ready solutions for payment processing, mobile wallets, micro lending solutions and digital transformation. TraQSuite is a distribution platform that allows users to setup task-based networks rapidly – target customers, facilitate/validate transactions, track/manage task workers, manage funds and run the entire distribution network. It includes the following functions: Targeting TraQSuite analyzes your customers’ omni-channel behaviors and transactions. Using artificial intelligence technology, the software analyzes online activity and delivers real-time, automated recommendations and personalized content, including such items as personalized, always-updated coupons, funds, tickets and loyalty cards. Transactions The digital transactions functions of the software enable users to manage and control finances and virtually store and use financial assets including G2P, B2P, welfare, salary, cards and micro banking like loans and insurance. The software includes back-end payment processing and a front-end digital wallet that allows users with and without bank accounts to buy products and services and pay with their mobile devices, settling transactions across multiple vendors, currencies and locations. Last mile The Last-Mile software module is designed to allow logistics and delivery operations to manage large numbers of workers in multiple locations that are delivering products and services to users. It both tracks the task workers and provides validation for the transactions. The mobile applications enable data sharing and validation and also measure customer satisfaction. Integration TraQSuite also includes software designed to integrate the TraQSuite tools with existing business software. Learning TraQLearn is eLearning software that includes modules and dashboards for students, teachers and administrators and tools to help with targeted learning. Effective December 31, 2020, Ci2i acquired the net assets of OmniM2M and TransportIQ, and then dissolved those entities in January 2021. The value of those transactions were for the assumed liabilities of Omni and TransportIQ, and no cash was exchanged. These acquisitions did not constitute accounting for discontinued operations under ASC 205 as the two entities were acquired by a subsidiary of the Company and were not disposed of. On January 22, 2021, the Company entered into a Share Exchange Agreement with Rohuma, LLC, a Delaware limited liability company (“Rohuma”) and its members, whereby the Rohuna members agreed to exchange all of their respective membership interests in Rohuma in exchange for 4,292,220 2,562,277 3,433,776 0.80 99 1 1 1 On February 17, 2021, the Company entered into a Share Exchange Agreement with Mimo Technologies Private Ltd., and Indian corporation (“Mimo”) and its shareholders, whereby the Mimo shareholders agreed to exchange all of their respective shares in Mimo in exchange for warrants to purchase 1,367,539 820,524 547,015 three years 0.001 1,640,447 984,268 656,179 258,736 123,778 40,354 22,338 99 1 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
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 22, 2021. Interim results of operations for the six months ended June 30, 2021 are not necessarily indicative of future results for the full year. Consolidation The condensed consolidated financial statements include the accounts of TraQiQ, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company applies the guidance of Topic 810 Consolidation Pursuant to ASC paragraph 810-10-15-8, the usual condition for a controlling financial interest is ownership of a majority voting interest, and, therefore, as a general rule ownership by one reporting entity, directly or indirectly, of more than 50 percent of the outstanding voting shares of another entity is a condition pointing toward consolidation. The power to control may also exist with a lesser percentage of ownership, for example, by contract, lease, agreement with other stockholders, or by court decree. Noncontrolling Interests In accordance with ASC 810-10-45 Noncontrolling Interests in Consolidated Financial Statements, 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. Foreign Currency Transactions The Company accounts for foreign currency transactions in accordance with ASC 830, “Foreign Currency Matters” (“ASC 830”), specifically the guidance in subsection ASC 830-20, “Foreign Currency Transactions”. The U.S. dollar is the functional and reporting currency for the Company and its subsidiaries other than TRAQ Pvt Ltd. whose functional currency is the Indian Rupee. Pursuant to ASC 830, monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting gains or losses upon settlement reported in foreign exchange gain (loss) in the computation of net income (loss). Gains or losses resulting from translation adjustments are reported under accumulated other comprehensive income (loss). 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 and Cash Equivalents 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 of $ 137,530 29,658 Restricted Cash The Company’s restricted cash balance consists of time deposits with financial institutions which are valued at cost and approximate fair value. Interest earned on these deposits in included in interest income. The carrying value of our restricted cash at June 30, 2021 and December 31, 2020 was $ 165,488 28,746 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 an allowance of $ 160,403 and $ 0 was required for the outstanding accounts receivable as of June 30, 2021 and December 31, 2020, respectively. Property and Equipment and Long-Lived Assets Fixed assets are stated at cost. Depreciation on fixed assets are computed using the straight-line method over the estimated useful lives of the assets, which range from three to ten 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. Intangible assets represent purchased intangible of TRAQ Pvt Ltd. which includes customer relationships and trademarks. The Company amortizes these intangible assets on a straight-line basis over their estimated useful lives of 15 The Company has adopted Accounting Standard Update (“ASU”) 2017-04 Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment 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 June 30, 2021 and December 31, 2020. Capitalized Software Costs In accordance with the relevant FASB accounting guidance regarding the development of software to be sold, leased, or marketed, the Company expenses such costs as they are incurred until technological feasibility has been established, at and after which time these costs are capitalized until the product is available for general release to customers. Once the technological feasibility is established per ASC 985-20, the Company capitalizes costs associated with the acquisition or development of major software for internal and external use in the balance sheet. Costs incurred to enhance the Company’s software products, after general market release of the services using the products, is expensed in the period they are incurred. The Company only capitalizes subsequent additions, modifications or upgrades to internally developed software to the extent that such changes allow the software to perform a task it previously did not perform. The Company expenses software maintenance and training costs as incurred. The Company acquired $ 146,065 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. Professional Service Revenue TRAQ Pvt Ltd. derives a large part of its revenues from professional and support services, which includes revenue generated from software development projects and associated fees for consulting, implementation, training, and project management provided to customers using their systems. 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 customization of software’s, selling of licenses, 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 consulting and technical support is delivered on as the work is being performed, which is satisfied prior to invoicing. The Company generally collects payment within 30 to 60 days of completion of the performance obligation and there are no agency relationships. Software development arrangements involving significant customization, modification or production are accounted for in accordance with the appropriate technical accounting guidance issued by the FASB using the percentage-of- completion method. The Company recognizes revenue using periodic reported actual hours worked as a percentage of total expected hours required to complete the project arrangement and applies the percentage to the total arrangement fee. Unbilled revenue represents earnings in excess of billings as at the end of the reporting period. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenues in the statements of operations. TRAQ Pvt Ltd. has deferred the revenue and costs attributable to certain process transition activities with respect to its customers where such activities do not represent the culmination of a separate earnings process. Such revenue and costs are subsequently recognized ratably over the period in which the related services are performed. Further, the deferred costs are limited to the amount of the deferred revenues. TRAQ Pvt Ltd. has now started offering an integrated solution for supply chain and last mile. This product called “TraQSuite” is now offered in multiple markets as a cloud-based subscription offering. This is a significant improvement from the earlier professional services business. 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 six months ended June 30, 2021 and 2020, disaggregated by type: SUMMARY OF DISAGGREGATION OF REVENUE 2021 2020 Professional Services Revenue $ 593,898 $ 463,385 Sale of goods 544,793 - Software Solution Revenue 180,697 57,934 $ 1,319,388 $ 521,319 Costs of Services Provided Costs of services provided consist of purchase of goods, data processing costs, customer support costs including personnel costs to maintain the Company’s proprietary databases, costs to provide customer call center support, hardware and software expense associated with transaction processing systems and exchanges, telecommunication and computer network expense, and occupancy costs associated with facilities where these functions are performed. Depreciation expense is not included in costs of services provided. Lease Obligations The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current portion of operating lease liabilities and operating lease liabilities, less current portion in the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For leases in which the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately. Income Taxes Income taxes are accounted under the asset and liability method. The current charge for income tax expense is calculated in accordance with the relevant tax regulations applicable to entity. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. 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. TraQiQ, Inc., TraQiQ Solutions, OmniM2M and TransportIQ file a consolidated income tax return in the U.S. federal tax jurisdiction and various state tax jurisdictions. TRAQ Pvt Ltd. files income tax returns in all India 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. The India tax returns of TRAQ Pvt Ltd. are subject to examination by the India Income Tax Department and India state taxing authority, generally for 12 months after the relevant tax year, 24 months after the relevant tax year in case transfer pricing provisions are applicable. Fair Value of Financial Instruments ASC 825, “ Financial Instruments Fair Value Measurements ASC 820 “ Fair Value Measurements The following provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which fair value is observable: Level 1- fair value measurements are those derived from quoted prices (unadjusted in active markets for identical assets or liabilities); Level 2- fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and Level 3- fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Financial instruments classified as Level 1 - quoted prices in active markets include cash. These consolidated financial instruments are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment to estimation. Valuations based on unobservable inputs are highly subjective and require significant judgments. Changes in such judgments could have a material impact on fair value estimates. In addition, since estimates are as of a specific point in time, they are susceptible to material near-term changes. Changes in economic conditions may also dramatically affect the estimated fair values. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management for the respective periods. The respective carrying value of certain financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include cash, investments, short-term notes payable, accounts payable and accrued expenses. Derivative Financial Instruments Derivatives are recorded on the consolidated balance sheet at fair value. The conversion features of the convertible instruments are embedded derivatives and are separately valued and accounted for on the consolidated balance sheet with changes in fair value recognized during the period of change as a separate component of other income/expense. Fair values for exchange-traded securities and derivatives are based on quoted market prices. The pricing model we use for determining the fair value of our derivatives are binomial pricing models. Valuations derived from this model are subject to ongoing internal and external verification and review. The model uses market-sourced inputs such as interest rates and stock price volatilities. Selection of these inputs involves management’s judgment and may impact net income (loss). With the issuance of the July 2017 FASB ASU 2017-11, “Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815),” The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, “ Debt—Debt with Conversion and Other Options The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. Under current GAAP, an equity-linked financial instrument with a down round feature that otherwise is not required to be classified as a liability under the guidance in Topic 480 is evaluated under the guidance in Topic 815, “ Derivatives and Hedging Generally, for warrants and conversion options embedded in financial instruments that are deemed to have a debt host (assuming the underlying shares are readily convertible to cash or the contract provides for net settlement such that the embedded conversion option meets the definition of a derivative), the existence of a down round feature results in an instrument not being considered indexed to an entity’s own stock. This results in a reporting entity being required to classify the freestanding financial instrument or the bifurcated conversion option as a liability, which the entity must measure at fair value initially and at each subsequent reporting date. The amendments in this Update revise the guidance for instruments with down round features in Subtopic 815-40, “ Derivatives and Hedging—Contracts in Entity’s Own Equity For entities that present EPS in accordance with Topic 260, and when the down round feature is included in an equity-classified freestanding financial instrument, the value of the effect of the down round feature is treated as a dividend when it is triggered and as a numerator adjustment in the basic EPS calculation. This reflects the occurrence of an economic transfer of value to the holder of the instrument, while alleviating the complexity and income statement volatility associated with fair value measurement on an ongoing basis. Convertible instruments are unaffected by the Topic 260 amendments in this Update. Those amendments in Part I of this Update are a cost savings relative to current GAAP. This is because, assuming the required criteria for equity classification in Subtopic 815-40 are met, an entity that issued such an instrument no longer measures the instrument at fair value at each reporting period (in the case of warrants) or separately accounts for a bifurcated derivative (in the case of convertible instruments) on the basis of the existence of a down round feature. For convertible instruments with embedded conversion options that have down round features, applying specialized guidance such as the model for contingent beneficial conversion features rather than bifurcating an embedded derivative also reduces cost and complexity. Under that specialized guidance, the issuer recognizes the intrinsic value of the feature only when the feature becomes beneficial instead of bifurcating the conversion option and measuring it at fair value each reporting period. The amendments in Part II of this Update replace the indefinite deferral of certain guidance in Topic 480 with a scope exception. This has the benefit of improving the readability of the Codification and reducing the complexity associated with navigating the guidance in Topic 480. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part 1 of this Update should be applied in either of the following ways: 1. retrospectively to outstanding financial instruments with a down round feature by means of a cumulative-effect adjustment to the statement of financial position as of the beginning of the first fiscal year and interim period(s) in which the pending content that links to this paragraph is effective; or 2. retrospectively to outstanding financial instruments with a down round feature for each prior reporting period presented in accordance with the guidance on accounting changes in paragraphs 250-10-45-5 through 45-10. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. 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. 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. Retirement Benefits to Employees Defined Contribution Plan In India, the employees receive benefits from a provident fund, where the employer and employees each make monthly contributions to the plan at a pre-determined rate to the Regional Provident Fund Commissioner. Employer’s contributions to the fund is charged as an expense in the Statements of Operations. Defined Benefit Plan In accordance with the Payment of Gratuity Act, 1972, applicable for Indian companies, TRAQ Pvt Ltd. provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by TRAQ Pvt Ltd. TRAQ Pvt Ltd. records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. TRAQ Pvt Ltd. reserves its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. TRAQ Pvt Ltd.’s obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation. Other Long-Term Employee Benefits TRAQ Pvt Ltd.’s net obligation in respect of leave encashment is the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is based on the prevailing market yields of Indian government securities at the reporting date that have maturity dates approximating the terms of TRAQ Pvt Ltd.’s obligations. The calculation is performed using the projected unit credit method. Any actuarial gains or losses are recognized. Investments The Company’s investments are in debt and equity instruments. These investments are accounted for in accordance with ASC 320 Investments – Debt Securities and ASC 321 Investments – Equity Securities. Interest earned under such investments are included in interest income. Segment Reporting For purposes of segment disclosures, two or more operating segments should be grouped only if the segments meet all the requirements of paragraph 280-10-50-11, including the requirements for similar economic characteristics. As a result, all operating units perform similar services, and approximately 99% of the Company’s revenue is generated from its Indian subsidiary. The Company believes that no segment reporting is required as all remaining operations outside of the Indian subsidiary is immaterial. Recently Issued Accounting Standards There were 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 $ 6,008,129 and a working capital deficit of $ 8,120,378 , as of June 30, 2021, and a working capital deficit of $ 2,851,721 as of December 31, 2020. 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 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. The 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 and the successful development of the Company’s contemplated plan of operations, ultimately, to profitable operations, are necessary for the Company to continue operations. | NOTE 2 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying 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. 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. Foreign Currency Transactions The Company accounts for foreign currency transactions in accordance with ASC 830, “Foreign Currency Matters” (“ASC 830”), specifically the guidance in subsection ASC 830-20, “Foreign Currency Transactions”. The U.S. dollar is the functional and reporting currency for the Company and its subsidiaries other than TRAQ Pvt Ltd. whose functional currency is the Indian Rupee. Pursuant to ASC 830, monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting gains or losses upon settlement reported in foreign exchange gain (loss) in the computation of net income (loss). Gains or losses resulting from translation adjustments are reported under accumulated other comprehensive income (loss). 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 and Cash Equivalents 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 of $ 29,658 9,094 Restricted Cash The Company’s restricted cash balance consists of time deposits with financial institutions which are valued at cost and approximate fair value. Interest earned on these deposits in included in interest income. The carrying value of our restricted cash at December 31, 2020 and December 31, 2019 was $ 28,746 182,627 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 Property and Equipment and Long-Lived Assets Fixed assets are stated at cost. Depreciation on fixed assets are computed using the straight-line method over the estimated useful lives of the assets, which range from three to ten 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. Intangible assets represent purchased intangible of TRAQ Pvt Ltd. which includes customer relationships and trademarks. The Company amortizes these intangible assets on a straight-line basis over their estimated useful lives of 15 The Company has adopted Accounting Standard Update (“ASU”) 2017-04 Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment 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 Capitalized Software Costs In accordance with the relevant FASB accounting guidance regarding the development of software to be sold, leased, or marketed, the Company expenses such costs as they are incurred until technological feasibility has been established, at and after which time these costs are capitalized until the product is available for general release to customers. Once the technological feasibility is established per ASC 985-20, the Company capitalizes costs associated with the acquisition or development of major software for internal and external use in the balance sheet. Costs incurred to enhance the Company’s software products, after general market release of the services using the products, is expensed in the period they are incurred. The Company only capitalizes subsequent additions, modifications or upgrades to internally developed software to the extent that such changes allow the software to perform a task it previously did not perform. The Company expenses software maintenance and training costs as incurred. The Company has not capitalized any cost for software development for the years ended December 31, 2020 and 2019, respectively. The Company only capitalizes subsequent additions, modifications or upgrades to internally developed software to the extent that such changes allow the software to perform a task it previously did not perform. The Company expenses software maintenance and training costs as incurred. The Company acquired $ 146,065 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. Professional Service Revenue TRAQ Pvt Ltd. derives a large part of its revenues from professional and support services, which includes revenue generated from software development projects and associated fees for consulting, implementation, training, and project management provided to customers using their systems. 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 customization of software’s, selling of licenses, 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 consulting and technical support is delivered on as the work is being performed, which is satisfied prior to invoicing. The Company generally collects payment within 30 to 60 days of completion of the performance obligation and there are no agency relationships. Software development arrangements involving significant customization, modification or production are accounted for in accordance with the appropriate technical accounting guidance issued by the FASB using the percentage-of- completion method. The Company recognizes revenue using periodic reported actual hours worked as a percentage of total expected hours required to complete the project arrangement and applies the percentage to the total arrangement fee. Unbilled revenue represents earnings in excess of billings as at the end of the reporting period. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenues in the statements of operations. TRAQ Pvt Ltd. has deferred the revenue and costs attributable to certain process transition activities with respect to its customers where such activities do not represent the culmination of a separate earnings process. Such revenue and costs are subsequently recognized ratably over the period in which the related services are performed. Further, the deferred costs are limited to the amount of the deferred revenues. TRAQ Pvt Ltd. has now started offering an integrated solution for supply chain and last mile. This product called “TraQSuite” is now offered in multiple markets as a cloud-based subscription offering. This is a significant improvement from the earlier professional services business. 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 years ended December 31, 2020 and 2019, disaggregated by type: SUMMARY OF DISAGGREGATION OF REVENUE 2020 2019 Professional Services Revenue $ 935,214 $ 654,374 Software Solution Revenue 74,735 26,358 $ 1,009,949 $ 680,732 Costs of Services Provided Costs of services provided consist of data processing costs, customer support costs including personnel costs to maintain the Company’s proprietary databases, costs to provide customer call center support, hardware and software expense associated with transaction processing systems and exchanges, telecommunication and computer network expense, and occupancy costs associated with facilities where these functions are performed. Depreciation expense is not included in costs of services provided. Lease Obligations The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current portion of operating lease liabilities and operating lease liabilities, less current portion in the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For leases in which the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately. Income Taxes Income taxes are accounted under the asset and liability method. The current charge for income tax expense is calculated in accordance with the relevant tax regulations applicable to entity. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. 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. TraQiQ, Inc., TraQiQ Solutions, OmniM2M and TransportIQ file a consolidated income tax return in the U.S. federal tax jurisdiction and various state tax jurisdictions. TRAQ Pvt Ltd. files income tax returns in all India 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. The India tax returns of TRAQ Pvt Ltd. are subject to examination by the India Income Tax Department and India state taxing authority, generally for 12 months after the relevant tax year, 24 months after the relevant tax year in case transfer pricing provisions are applicable. Fair Value of Financial Instruments ASC 825, “ Financial Instruments Fair Value Measurements ASC 820 “ Fair Value Measurements The following provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which fair value is observable: Level 1- fair value measurements are those derived from quoted prices (unadjusted in active markets for identical assets or liabilities); Level 2- fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and Level 3- fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Financial instruments classified as Level 1 - quoted prices in active markets include cash. These consolidated financial instruments are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment to estimation. Valuations based on unobservable inputs are highly subjective and require significant judgments. Changes in such judgments could have a material impact on fair value estimates. In addition, since estimates are as of a specific point in time, they are susceptible to material near-term changes. Changes in economic conditions may also dramatically affect the estimated fair values. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management for the respective periods. The respective carrying value of certain financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include cash, investments, short-term notes payable, accounts payable and accrued expenses. Derivative Financial Instruments Derivatives are recorded on the consolidated balance sheet at fair value. The conversion features of the convertible instruments are embedded derivatives and are separately valued and accounted for on the consolidated balance sheet with changes in fair value recognized during the period of change as a separate component of other income/expense. Fair values for exchange-traded securities and derivatives are based on quoted market prices. The pricing model we use for determining the fair value of our derivatives are binomial pricing models. Valuations derived from this model are subject to ongoing internal and external verification and review. The model uses market-sourced inputs such as interest rates and stock price volatilities. Selection of these inputs involves management’s judgment and may impact net income (loss). With the issuance of the July 2017 FASB ASU 2017-11, “Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815),” The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, “ Debt—Debt with Conversion and Other Options Under current GAAP, an equity-linked financial instrument with a down round feature that otherwise is not required to be classified as a liability under the guidance in Topic 480 is evaluated under the guidance in Topic 815, “ Derivatives and Hedging The amendments in this Update revise the guidance for instruments with down round features in Subtopic 815-40, “ Derivatives and Hedging—Contracts in Entity’s Own Equity For entities that present EPS in accordance with Topic 260, and when the down round feature is included in an equity-classified freestanding financial instrument, the value of the effect of the down round feature is treated as a dividend when it is triggered and as a numerator adjustment in the basic EPS calculation. This reflects the occurrence of an economic transfer of value to the holder of the instrument, while alleviating the complexity and income statement volatility associated with fair value measurement on an ongoing basis. Convertible instruments are unaffected by the Topic 260 amendments in this Update. Those amendments in Part I of this Update are a cost savings relative to current GAAP. This is because, assuming the required criteria for equity classification in Subtopic 815-40 are met, an entity that issued such an instrument no longer measures the instrument at fair value at each reporting period (in the case of warrants) or separately accounts for a bifurcated derivative (in the case of convertible instruments) on the basis of the existence of a down round feature. For convertible instruments with embedded conversion options that have down round features, applying specialized guidance such as the model for contingent beneficial conversion features rather than bifurcating an embedded derivative also reduces cost and complexity. Under that specialized guidance, the issuer recognizes the intrinsic value of the feature only when the feature becomes beneficial instead of bifurcating the conversion option and measuring it at fair value each reporting period. The amendments in Part II of this Update replace the indefinite deferral of certain guidance in Topic 480 with a scope exception. This has the benefit of improving the readability of the Codification and reducing the complexity associated with navigating the guidance in Topic 480. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part 1 of this Update should be applied in either of the following ways: 1. retrospectively to outstanding financial instruments with a down round feature by means of a cumulative-effect adjustment to the statement of financial position as of the beginning of the first fiscal year and interim period(s) in which the pending content that links to this paragraph is effective; or 2. retrospectively to outstanding financial instruments with a down round feature for each prior reporting period presented in accordance with the guidance on accounting changes in paragraphs 250-10-45-5 through 45-10. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. 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. 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. Retirement Benefits to Employees Defined Contribution Plan In India, the employees receive benefits from a provident fund, where the employer and employees each make monthly contributions to the plan at a pre-determined rate to the Regional Provident Fund Commissioner. Employer’s contributions to the fund is charged as an expense in the Statements of Operations. Defined Benefit Plan In accordance with the Payment of Gratuity Act, 1972, applicable for Indian companies, TRAQ Pvt Ltd. provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by TRAQ Pvt Ltd. TRAQ Pvt Ltd. records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. TRAQ Pvt Ltd. reserves its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. TRAQ Pvt Ltd.’s obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation. Other Long-Term Employee Benefits TRAQ Pvt Ltd.’s net obligation in respect of leave encashment is the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is based on the prevailing market yields of Indian government securities at the reporting date that have maturity dates approximating the terms of TRAQ Pvt Ltd.’s obligations. The calculation is performed using the projected unit credit method. Any actuarial gains or losses are recognized. Investments The Company’s investments are in debt and equity instruments. These investments are accounted for in accordance with ASC 320 Investments – Debt Securities and ASC 321 Investments – Equity Securities. Interest earned under such investments are included in interest income. Segment Reporting For purposes of segment disclosures, two or more operating segments should be grouped only if the segments meet all the requirements of paragraph 280-10-50-11, including the requirements for similar economic characteristics. As a result, all operating units perform similar services, and approximately 99% of the Company’s revenue is generated from its Indian subsidiary. The Company believes that no segment reporting is required as all remaining operations outside of the Indian subsidiary is immaterial. Recently Issued Accounting Standards There were 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 $ 2,504,893 2,851,721 2,697,036 These 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. The consolidated financial statements of the Company do not include any adjustments that may result from the outcome of the uncertainties. In May 2019, the Company acquired 100% five 1,329,272 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 and the successful development of the Company’s contemplated plan of operations, ultimately, to profitable operations, are necessary for the Company to continue operations. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Business Combination and Asset Acquisition [Abstract] | ||
ACQUISITIONS | NOTE 3: ACQUISITIONS TRAQ PVT LTD On May 16, 2019, the Company entered into a Share Exchange Agreement with Mann-India Technologies Private Ltd., an Indian Corporation. On January 2, 2020, the name of this company was changed to TRAQIQ Solutions Private Limited. Pursuant to the Share Exchange Agreement with TRAQ Pvt Ltd., the Company acquired 100 five 1,329,272 268 100,771 859,951 368,550 The warrants that are exercisable in one-year and two-years are conditioned upon TRAQ Pvt Ltd. achieving certain revenue figures and pre-tax profit percentages. TRAQ Pvt Ltd. must achieve target revenue of $ 1.1 25 419,127 The Company acquired the assets and liabilities noted below in exchange for the warrants noted herein and accounted for the acquisition in accordance with ASC 805. As a result, total consideration was equal to the value of the warrants of $ 268 417,148 ROHUMA On January 22, 2021, the Company entered into a Share Exchange Agreement with Rohuma, LLC, a Delaware limited liability company (“Rohuma”) and its members, whereby the Rohuna members agreed to exchange all of their respective membership interests in Rohuma in exchange for 4,292,220 2,562,277 3,433,776 0.80 99 1 The Company acquired the assets and liabilities noted below in exchange for the shares noted herein and accounted for the acquisition in accordance with ASC 805. SCHEDULE OF BUSINESS ACQUISITION Cash $ 6,027 Accounts receivables, net 4,179 Prepaid expenses and other current assets 8,943 Fixed assets 4,512 Investment 1,440 Accounts payable and accrued expenses (58,153 ) Accrued payroll and related taxes - Accrued duties and taxes (2,688 ) Comprehensive income - Cash overdraft (2,980 ) Debt – related parties (37,776 ) Debt (10,000 ) Net assets and liabilities acquired $ (86,496 ) The difference between the net liabilities acquired of $ 86,496 1,383,954 3,520,272 MIMO TECHNOLOGIES On February 17, 2021, the Company entered into a Share Exchange Agreement with Mimo Technologies Private Ltd., and Indian corporation (“Mimo”) and its shareholders, whereby the Mimo shareholders agreed to exchange all of their respective shares in Mimo in exchange for warrants to purchase 1,367,539 820,524 547,015 three years 0.001 1,640,447 984,268 656,179 258,736 123,778 40,354 22,338 99 1 The Company acquired the assets and liabilities noted below in exchange for the warrants noted herein and accounted for the acquisition in accordance with ASC 805. SCHEDULE OF BUSINESS ACQUISITION Cash $ 43,851 Accounts receivables, net 58,692 Prepaid expenses and other current assets 272,872 Fixed and intangible assets 153,186 Accounts payable and accrued expenses (708,833 ) Accrued payroll and related taxes (104,750 ) Accrued duties and taxes (28,213 ) Comprehensive income (42,735 ) Debt – related parties (343,118 ) Debt (236,712 ) Net assets and liabilities acquired $ (935,760 ) The difference between the net liabilities acquired of $ 935,760 2,085,653 3,021,413 The following table shows pro-forma results for the six months ended June 30, 2021 and 2020 as if the acquisition had occurred on January 1, 2020. These unaudited pro forma results of operations are based on the historical financial statements and related notes of Rohuma, Mimo and the Company. SCHEDULE OF PROFORMA FOR BUSINESS ACQUISITION For the six months ended June 30, 2021 For the six months ended June 30, 2020 Revenues $ 1,355,350 $ 732,415 Net income (loss) $ (3,555,172 ) $ (488,535 ) Net income (loss) per share $ (0.12 ) $ (0.02 ) | NOTE 3: ACQUISITION OF TRAQ PVT LTD. NOTE 3: ACQUISITIONS On May 16, 2019, the Company entered into a Share Exchange Agreement with Mann-India Technologies Private Ltd., an Indian Corporation. On January 2, 2020, the name of this company was changed to TRAQIQ Solutions Private Limited. Pursuant to the Share Exchange Agreement with TRAQ Pvt Ltd., the Company acquired 100% five 1,329,272 268 100,771 859,951 368,550 The warrants that are exercisable in one-year and two-years are conditioned upon TRAQ Pvt Ltd. achieving certain revenue figures and pre-tax profit percentages. TRAQ Pvt Ltd. must achieve target revenue of $ 1.1 25% The Company acquired the assets and liabilities noted below in exchange for the warrants noted herein and accounted for the acquisition in accordance with ASC 805. As a result, total consideration was equal to the value of the warrants of $268, as stated in the agreement, and the Company recognized a gain on bargain purchase in the amount of $ 417,148 SCHEDULE OF BUSINESS ACQUISITION Cash (including restricted cash of $ 185,399 $ 185,633 Accounts receivables, net 506,951 Prepaid expenses and other current assets 216,956 Right-of-use asset 576,566 Fixed assets 68,260 Customer relationships 448,800 Tradenames 49,799 Investment 42,248 Other assets 37,950 Accounts payable and accrued expenses (173,197 ) Accrued payroll and related taxes (325,629 ) Accrued duties and taxes (66,765 ) Lease liability (585,207 ) Deferred revenue (3,618 ) Cash overdraft (471,017 ) Debt – related parties (61,273 ) Debt (29,041 ) Purchase price $ 417,416 The customer relationships and tradenames are being amortized over fifteen years. The difference between the net liabilities acquired of $ 86,496 1,383,954 3,520,272 The difference between the net assets acquired of $ 417,416 268 417,148 The following table shows pro-forma results for the year December 31, 2019 as if the acquisition had occurred on January 1, 2019. These unaudited pro forma results of operations are based on the historical financial statements and related notes of TRAQ Pvt Ltd. and the Company. SCHEDULE OF PROFORMA FOR BUSINESS ACQUISITION For the year ended December 31, 2019 Revenues $ 1,143,606 Net income (loss) $ (166,533 ) Net income (loss) per share $ (0.01 ) The warrants that are exercisable in one-year and two-years are conditioned upon TRAQ Pvt Ltd. achieving certain revenue figures and pre-tax profit percentages. TRAQ Pvt Ltd. must achieve target revenue of $ 1.1 25 419,127 On January 22, 2021, the Company entered into a Share Exchange Agreement with Rohuma, LLC, a Delaware limited liability company (“Rohuma”) and its members, whereby the Rohuna members agreed to exchange all of their respective membership interests in Rohuma in exchange for 4,292,220 2,562,277 3,433,776 0.80 99 1 |
CASH AND RESTRICTED CASH
CASH AND RESTRICTED CASH | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | ||
CASH AND RESTRICTED CASH | NOTE 4: CASH AND RESTRICTED CASH Cash and restricted cash are as follows: SCHEDULE OF CASH AND RESTRICTED CASH June 30, 2021 December 31, 2020 Cash on hand $ 109 $ 141 Bank balances 137,421 29,517 Restricted cash 165,488 28,746 Total $ 303,018 $ 58,404 ASU 2016-18, “Statements of Cash Flows” (Topic 230) was adopted by the Company in 2017. In accordance with this standard, restricted cash and restricted cash equivalents is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Statements of Cash Flows. During the six months ended June 30, 2021 and the year ended December 31, 2020 there were no | NOTE 4: CASH AND RESTRICTED CASH Cash and restricted cash are as follows: SCHEDULE OF CASH AND RESTRICTED CASH December 31, 2020 December 31, 2019 Cash on hand $ 141 $ 252 Bank balances 29,517 8,842 Restricted cash 28,746 182,627 Total $ 58,404 $ 191,721 ASU 2016-18, “Statements of Cash Flows” (Topic 230) was adopted by the Company in 2017. In accordance with this standard, restricted cash and restricted cash equivalents is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Statements of Cash Flows. During the years ended December 31, 2020 and December 31, 2019, there were no |
FIXED ASSETS
FIXED ASSETS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
FIXED ASSETS | NOTE 5: FIXED ASSETS The Company’s property and equipment is as follows: SCHEDULE OF PROPERTY AND EQUIPMENT June 30, 2021 December 31, 2020 Estimated Life Property and equipment – TRAQ Pvt Ltd. $ 628,026 $ 638,587 3 10 Property and equipment – Rohuma US 1,100 - 3 10 Property and equipment – Rohuma India 4,117 - 3 10 Property and Equipment – Mimo Technologies 2,927 - 3 10 Less: accumulated depreciation (599,351 ) (602,214 ) Net $ 36,819 $ 36,373 Depreciation expense for the six months ended June 30, 2021 and 2020 was $ 11,615 8,186 | NOTE 5: FIXED ASSETS The Company’s property and equipment is as follows: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2020 December 31, 2019 Estimated Life Property and equipment – TRAQ Pvt Ltd. $ 638,587 $ 650,621 3 10 Less: accumulated depreciation (602,214 ) (601,940 ) Net $ 36,373 $ 48,681 Depreciation expense for the years ended December 31, 2020 and 2019 was $ 14,747 22,065 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Intangible Assets | ||
INTANGIBLE ASSETS | NOTE 6: INTANGIBLE ASSETS The Company’s intangible assets are as follows: SCHEDULE OF INTANGIBLE ASSETS June 30, 2021 December 31, 2020 Customer relationships $ 448,800 $ 448,800 Tradenames 49,799 49,799 Software 250,451 - Less: accumulated amortization (185,418 ) (54,015 ) Net $ 563,632 $ 444,584 Amortization expense for the six months ended June 30, 2021 and 2020 was $ 25,404 16,620 | NOTE 6: INTANGIBLE ASSETS The Company’s intangible assets are as follows: SCHEDULE OF INTANGIBLE ASSETS December 31, 2020 December 31, 2019 Customer relationships $ 448,800 $ 448,800 Tradenames 49,799 49,799 Software Less: accumulated amortization (54,015 ) (20,775 ) Net $ 444,584 $ 477,824 Amortization expense for the years ended December 31, 2020 and 2019 was $ 33,240 20,775 |
LONG-TERM INVESTMENT
LONG-TERM INVESTMENT | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Investments, All Other Investments [Abstract] | ||
LONG-TERM INVESTMENT | NOTE 8: LONG-TERM INVESTMENT The Company’s long-term investment is as follows: SCHEDULE OF LONG-TERM INVESTMENT June 30, 2021 December 31, 2020 Equity Security – Compulsorily Convertible Debenture $ - $ 40,603 The investment the Company had in a 1% Compulsorily Convertible Debenture for the period of seven years In addition there was an investment acquired in the acquisition of Rohuma US for $ 1,440 | NOTE 7: LONG-TERM INVESTMENT The Company’s long-term investment is as follows: SCHEDULE OF LONG-TERM INVESTMENT December 31, 2020 December 31, 2019 Equity Security – Compulsorily Convertible Debenture $ 40,603 $ 41,617 The investment the Company has in a 1% seven years |
NOTE RECEIVABLE
NOTE RECEIVABLE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
NOTE RECEIVABLE | NOTE 9: NOTE RECEIVABLE The Company’s notes receivable is as follows: SCHEDULE OF NOTE RECEIVABLE June 30, December 31, MIMO Technologies PVT Ltd $ - $ 227,877 The Company entered into a note receivable with a related party in the amount of 15,037,263 170,000 13 16,647,264 227,877 258,736 | NOTE 8: NOTE RECEIVABLE The Company’s notes receivable is as follows: SCHEDULE OF NOTE RECEIVABLE December 31, 2020 December 31, 2019 MIMO Technologies PVT Ltd $ 227,877 $ - The Company entered into a note receivable with a related party in the amount of 15,037,263 170,000 13% 16,647,264 227,877 |
LONG-TERM DEBT RELATED PARTIES
LONG-TERM DEBT RELATED PARTIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Long-term Debt Related Parties | ||
LONG-TERM DEBT RELATED PARTIES | NOTE 11: LONG-TERM DEBT RELATED PARTIES The following is a summary of the current portion - long-term debt - related parties as of June 30, 2021 and December 31, 2020: SCHEDULE OF LONG-TERM DEBT RELATED PARTIES June 30, 2021 December 31, 2020 Unsecured advances - CEO (a) $ 2,006,691 $ 1,718,277 Notes payable - Satinder Thiara (b) 32,000 57,000 Promissory note – Kunaal Sikka (c) 15,000 15,000 Notes payable – Swarn Singh (d) 45,000 45,000 Note payable - Chaudhary (e) 8,427 8,122 Note payable - Director (g) 400,000 - Advances – former CEO of Rohuma 15,141 - Advances – former CEO of Mimo Technologies (f) 122,580 - 2,644,839 1,843,399 Current portion of long-term debt related parties (2,629,839 ) (1,843,399 ) Long-term debt – related parties $ 15,000 $ - (a) This is an unsecured advance from the CEO originally entered into January 1, 2015. The note bears interest at 15 1.25 (b) Notes payable to Satinder Thiara entered into May 25, 2016 ($ 22,000 December 31, 2021 10,000 December 31, 2021 25,000 December 31, 2019 15 1.25 21 1.75 12,392 43,990 (c) Unsecured promissory note from Kunaal Sikka, the CEO’s son, dated September 13, 2018, in the amount of $ 15,000 12 December 31, 2019 18 1.50 (d) Note payable to Swarn Singh, father-in-law of the CEO, entered into January 3, 2017 ($ 25,000 20,000 15 1.25 21 1.75 (e) Note payable to Sushil Chaudhary dated April 27, 2020 in the amount of 1,100,000 14,500 13 8,179 (f) Note payable to Lathika Regunathan dated June 18, 2021 in the amount of 7,650,000 100,000 (g) Note payable to a director dated June 15, 2021 that matures December 12, 2021 in the amount of $ 400,000 The note does not bear interest however the director received two tranches of 150,000 shares each for lending this amount. If the note is repaid by the maturity date, one of the two tranches of 150,000 shares will be returned. Interest expense on these notes for the six months ended June 30, 2021 and 2020 are $ 158,537 107,869 | NOTE 9: LONG-TERM DEBT RELATED PARTIES The following is a summary of the current portion - long-term debt - related parties as of December 31, 2020 and December 31, 2019: SCHEDULE OF LONG-TERM DEBT RELATED PARTIES December 31, 2020 December 31, 2019 Unsecured advances - CEO (a) $ 1,718,277 $ 1,221,737 Notes payable - Satinder Thiara (b) 57,000 57,000 Promissory note – Kunaal Sikka (c) 15,000 15,000 Notes payable – Swarn Singh (d) 45,000 45,000 Note payable - Chaudhary (e) 8,122 - 1,843,399 1,338,737 Current portion of long-term debt related parties (1,843,399 ) (1,306,737 ) Long-term debt – related parties $ - $ 32,000 (a) This is an unsecured advance from the CEO originally entered into January 1, 2015. The note bears interest at 15% 1.25% (b) Notes payable to Satinder Thiara entered into May 25, 2016 ($ 22,000 December 31, 2021 10,000 25,000 December 31, 2019 15% 1.25% 21% 1.75% (c) Unsecured promissory note from Kunaal Sikka, the CEO’s son, dated September 13, 2018, in the amount of $ 15,000 December 31, 2019 12% 18% 1.50% (d) Note payable to Swarn Singh, father-in-law of the CEO, entered into January 3, 2017 ($ 25,000 20,000 15% 1.25% December 31, 2019 21% 1.75% (e) Note payable to Sushil Chaudhary dated April 27, 2020 in the amount of 1,100,000 14,500 13% 8,179 Interest expense on these notes for the years ended December 31, 2020 and 2019 are $ 228,748 170,688 |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
LONG-TERM DEBT | NOTE 12: LONG-TERM DEBT The following is a summary of the long-term debt as of June 30, 2021 and December 31, 2020: SCHEDULE OF LONG-TERM DEBT June 30, 2021 December 31, 2020 Other debt – in default (a) $ 6,000 $ 6,000 Yukti Securities Private Limited (b) - 4,547 Noor Qazi (c) - - Auto loan – ICICI Bank (d) 14,769 18,539 Baxter Credit Union (e) 99,975 99,911 UGECL (f) 53,960 54,563 USA Bank PPP (g) - 10,057 Loan Builder (h) 47,367 - Satin 141,097 - SBA - Rohuma 10,000 - Total $ 373,168 $ 193,617 Current portion (317,876 ) (133,761 ) Long-term debt, net of current portion $ 55,292 $ 59,856 (a) Note payable to an individual for $ 7,500 1,500 (b) Loan payable to Yukti Securities Private Limited is an unsecured loan which is due on demand. (c) Unsecured loan from Noor Qazi, individual, is due on demand. Was repaid in December 2020. (d) Loan payable with ICICI Bank, secured by the vehicle the loan was taken for. Payments are monthly at $ 752 7,374 7,395 (e) Revolving loan in the amount of $ 100,000 4 December 30, 2020 99,911 4 (f) COVID line of credit from UGECL up to 4,000,000 interest only at 7.5 6,063 47,897 (g) PPP loan from USA Bank, with interest accruing at 1 34,697 24,640 10,057 (h) $ 50,000 1,057.94 10 Interest expense on these notes for the six months ended June 30, 2021 and 2020 are $ 2,539 5,546 | NOTE 10: LONG-TERM DEBT The following is a summary of the long-term debt as of December 31, 2020 and December 31, 2019: SCHEDULE OF LONG-TERM DEBT December 31, 2020 December 31, 2019 Promissory notes - Kabbage (a) $ - $ 23,826 Promissory notes – Loan Builder (b) - - Other debt – in default (c) 6,000 6,000 Yukti Securities Private Limited (d) 4,547 4,660 Lathika Regunathan (e) - - Noor Qazi (f) - 50,562 Auto loan – ICICI Bank (g) 18,539 25,662 Baxter Credit Union (h) 99,911 100,000 UGECL (i) 54,563 - USA Bank PPP (j) 10,057 - Total $ 193,617 $ 210,710 Current portion (133,761 ) (191,508 ) Long-term debt, net of current portion $ 59,856 $ 19,202 (a) Multiple monthly loan agreements with Kabbage. Each of these loans has a six-month duration with interest and fees spread over the 6 months. (b) Business loan agreement with LoanBuilder in August 2018 in the amount of $ 18,000 409 (c) Note payable to an individual for $ 7,500 1,500 (d) Loan payable to Yukti Securities Private Limited is an unsecured loan which is due on demand. (e) Unsecured loan from Lathika Regunathan, individual, is due on demand. Was repaid in 2019. (f) Unsecured loan from Noor Qazi, individual, is due on demand. Was repaid in December 2020. (g) Loan payable with ICICI Bank, secured by the vehicle the loan was taken for. Payments are monthly at $ 752 7,183 7,837 3,519 (h) Revolving loan in the amount of $ 100,000 4% December 30, 2020 99,911 4% (i) COVID line of credit from UGECL up to 4,000,000 interest only at 7.5% 6,063 48,500 (j) PPP loan from USA Bank, with interest accruing at 1% 34,697 24,640 10,057 Interest expense on these notes for the years ended December 31, 2020 and 2019 are $ 6,932 12,110 |
CURRENT PORTION - CONVERTIBLE D
CURRENT PORTION - CONVERTIBLE DEBT – RELATED AND UNRELATED PARTIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Current Portion - Convertible Debt Related And Unrelated Parties | ||
CURRENT PORTION - CONVERTIBLE DEBT – RELATED AND UNRELATED PARTIES | NOTE 13: CURRENT PORTION - CONVERTIBLE DEBT – RELATED AND UNRELATED PARTIES The following is a summary of current portion - convertible debt - related and unrelated parties as of June 30, 2021 and December 31, 2020: SUMMARY OF CARRYING VALUE OF CONVERTIBLE DEBT June 30, December 31, Face value of notes – related party (a) $ - $ 95,000 Face value of notes – unrelated parties (a) 68,077 98,077 Excess of the fair value of shares issuable over the face value of the convertible notes (a) 17,007 48,257 $ 85,084 $ 241,334 (a) In connection with the reverse merger in July 2017, the Company and two stockholders, who had provided related party advances to the Company, agreed to exchange their related party advances for 6 January 15, 2018 68,077 100,000 70,000 the holders of the Notes agreed to extend the maturity to April 30, 2018, and in April 2018, agreed to further extend the maturity of certain notes to June or July 2018. During the year ended December 31, 2018, the maturity of the notes were further extended to March 31, 2019 and then again to periods ranging from June 30, 2019 to December 31, 2019. 6 10 80 5 December 31, 2019 156,250 31,046 187,296 During the year ended December 31, 2018, the Company received additional proceeds from a related party of $ 25,000 initially maturing on December 31, 2018, which has been extended to March 31, 2019 and then again to December 31, 2019. Interest expense on these notes for the six months ended June 30, 2021 and 2020 are $ 5,499 9,627 The Company has calculated the stock-settled liability in accordance with ASC 835-30 which establishes the monetary value at settlement of these instruments at fair value. | NOTE 11: CURRENT PORTION - CONVERTIBLE DEBT – RELATED AND UNRELATED PARTIES The following is a summary of current portion - convertible debt - related and unrelated parties as of December 31, 2020 and December 31, 2019: SUMMARY OF CARRYING VALUE OF CONVERTIBLE DEBT December 31, 2020 December 31, 2019 Face value of notes – related party (a) $ 95,000 $ 95,000 Face value of notes – unrelated parties (a) 98,077 98,077 Excess of the fair value of shares issuable over the face value of the convertible notes (a) 48,257 48,257 $ 241,334 $ 241,334 (a) In connection with the reverse merger in July 2017, the Company and two stockholders, who had provided related party advances to the Company, agreed to exchange their related party advances for 6% January 15, 2018 68,077 100,000 70,000 the holders of the Notes agreed to extend the maturity to April 30, 2018, and in April 2018, agreed to further extend the maturity of certain notes to June or July 2018. During the year ended December 31, 2018, the maturity of the notes were further extended to March 31, 2019 and then again to periods ranging from June 30, 2019 to December 31, 2019 6% 10% 80% 5 During the year ended December 31, 2018, the Company received additional proceeds from a related party of $ 25,000 initially maturing on December 31, 2018, which has been extended to March 31, 2019 and then again to December 31, 2019. Interest expense on these notes for the years ended December 31, 2020 and 2019 are $ 19,361 12,957 The Company has calculated the stock-settled liability in accordance with ASC 835-30 which establishes the monetary value at settlement of these instruments at fair value. |
STOCKHOLDERS_ EQUITY (DEFICIT)
STOCKHOLDERS’ EQUITY (DEFICIT) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
STOCKHOLDERS’ EQUITY (DEFICIT) | NOTE 14: STOCKHOLDERS’ EQUITY (DEFICIT) Series A Convertible Preferred Stock On July 19, 2017, the Company approved the issuance of 50,000 50,000 0.20 10,000 Each outstanding share of Series A Convertible Preferred Stock is convertible into the number of shares of the Company’s common stock (the “Common Stock”) determined by dividing the Stated Value by the Conversion Price as defined below, at the option of any Series A Convertible Preferred Stock shareholder in whole or in part, at any time commencing no earlier than six (6) months after the issuance date; provided that any conversion under this section must be made during the ten (10) day period immediately following the date on which the corporation files with the Securities and Exchange Commission any periodic report on form 10-Q, 10-K or the equivalent form; provided further that, any conversion under this Section IV: (a) shall be for a minimum Stated Value of $ 500 The Conversion Price for each share of Series A Convertible Preferred Stock in effect on any Conversion Date shall be (i) eighty five percent ( 85 20 Common Stock As of June 30, 2021, the Company has 31,430,575 shares issued and outstanding. During the three months ended June 30, 2021, the Company (a) issued 1,000 1,750 40,222 three-year term. None 350,000 300,000 director for agreeing to lend the Company $400,000 in a promissory note 150,000 300,000 447,000 35,000 38,500 During the three months ended March 31, 2021, the Company (a) issued 570,000 456,000 264,338 181,250 43,438 400,000 436,385 2,562,277 4,292,220 There were no 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. Common Stock Warrants The following schedule summarizes the changes in the Company’s common stock warrants: SCHEDULE OF COMMON STOCK WARRANTS Weighted Weighted Warrants Outstanding Average Average Number Exercise Remaining Aggregate Exercise Of Price Contractual Intrinsic Price Shares Per Share Life Value Per Share Balance at December 31, 2019 1,329,272 $ 0.001 4.87 $ - $ 0.001 Warrants granted - $ - - $ Warrants exercised - $ - - $ Warrants expired/cancelled - $ - - $ Balance at December 31, 2020 1,329,272 $ 0.001 3.87 $ 2,125,506 $ 0.001 Warrants granted 1,980,039 $ 0.001 2.00 - $ Warrants exercised/exchanged - $ - - $ Warrants expired/cancelled (419,127 ) $ - - $ Balance at June 30, 2021 2,880,184 $ 0.001 2.00 2.72 $ 3,414,248 $ 0.42 Exercisable at June 30, 2021 2,333,168 $ 0.001 2.00 2.73 $ 2,594,272 $ 0.52 Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each option/warrant is estimated using the Black-Scholes valuation model. The following assumptions were used for the three months ended March 31, 2021 and year ended December 31, 2020: SCHEDULE OF EACH OPTION WARRANT ESTIMATED USING THE BLACK-SCHOLES VALUATION MODEL Six Months Ended June 30, 2021 Year Ended December 31, 2020 Expected term 3 - Expected volatility 100 214 % - Expected dividend yield - - Risk-free interest rate 0.15 0.58 % - On May 16, 2019, the Company entered into a Share Exchange Agreement with Mann-India Technologies Private Ltd., an Indian Corporation. Pursuant to the Share Exchange Agreement, the Company acquired 100 five 1,329,272 268 100,771 859,951 368,550 268 419,127 On February 16, 2021, the Company entered into several stock purchase agreements for the issuance of 570,000 456,000 0.80 285,000 three years 2.00 On February 17, 2021, the Company entered into a Share Exchange Agreement with Mimo Technologies Private Ltd., and Indian corporation (“Mimo”) and its shareholders, whereby the Mimo shareholders agreed to exchange all of their respective shares in Mimo in exchange for warrants to purchase 1,367,539 820,524 547,015 three years 0.001 1,640,447 984,268 656,179 258,736 123,778 40,354 22,338 99 On March 8, 2021, the Company entered into a consulting agreement to provide advisory services regarding strategic planning. The agreement is for a term of one-year. The agreement calls for payments to be paid monthly in the amount of $ 3,000 25,000 three 100,000 2.00 Options On November 23, 2020, the Board of Directors of the Company approved the 2020 Equity Incentive Plan. On October 19, 2020, the Company granted 3,930,000 10 104,638 660,372 3,930,000 312,500 In the six months ended June 30, 2021, the Company recognized $ 226,807 The following represents a summary of options: SUMMARY OF STOCK OPTION Six Months Ended June 30, 2021 Year Ended December 31, 2020 Number Weighted Number Weighted Beginning balance 3,930,000 $ 0.0052 - $ - Granted - - 3,930,000 0.0052 Exercised - - - - Forfeited - - - - Expired - - - - Ending balance 3,930,000 $ 0.0052 3,930,000 $ 0.0052 Intrinsic value of options $ 5,874,475 $ 6,267,475 Weighted Average Remaining Contractual Life (Years) 9.31 9.81 | NOTE 12: STOCKHOLDERS’ DEFICIT NOTE 14: STOCKHOLDERS’ EQUITY (DEFICIT) Series A Convertible Preferred Stock On July 19, 2017, the Company approved the issuance of 50,000 50,000 0.20 10,000 Each outstanding share of Series A Convertible Preferred Stock is convertible into the number of shares of the Company’s common stock (the “Common Stock”) determined by dividing the Stated Value by the Conversion Price as defined below, at the option of any Series A Convertible Preferred Stock shareholder in whole or in part, at any time commencing no earlier than six (6) months after the issuance date; provided that any conversion under this section must be made during the ten (10) day period immediately following the date on which the corporation files with the Securities and Exchange Commission any periodic report on form 10-Q, 10-K or the equivalent form; provided further that, any conversion under this Section IV: (a) shall be for a minimum Stated Value of $ 500 The Conversion Price for each share of Series A Convertible Preferred Stock in effect on any Conversion Date shall be (i) eighty five percent ( 85% 20 Common Stock As of December 31, 2020, the Company has 27,297,960 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. During the three months ended June 30, 2021, the Company (a) issued 1,000 1,750 40,222 three-year term. None 350,000 300,000 director for agreeing to lend the Company $400,000 in a promissory note 150,000 300,000 447,000 35,000 38,500 Warrants On May 16, 2019, the Company entered into a Share Exchange Agreement with Mann-India Technologies Private Ltd., an Indian Corporation. Pursuant to the Share Exchange Agreement, the Company acquired 100% five 1,329,272 268 100,771 859,951 368,550 268 Options On November 23, 2020, the Board of Directors of the Company approved the 2020 Equity Incentive Plan. On October 19, 2020, the Company granted 3,930,000 10 104,638 660,372 3,930,000 312,500 On February 17, 2021, the Company entered into a Share Exchange Agreement with Mimo Technologies Private Ltd., and Indian corporation (“Mimo”) and its shareholders, whereby the Mimo shareholders agreed to exchange all of their respective shares in Mimo in exchange for warrants to purchase 1,367,539 820,524 547,015 three years 0.001 1,640,447 984,268 656,179 258,736 123,778 40,354 22,338 99 The following represents a summary of options as of December 31, 2020 and 2019: SUMMARY OF STOCK OPTIONS December 31, 2020 December 31, 2019 Number Weighted Number Weighted Beginning balance - $ - - $ - Granted 3,930,000 0.0052 - - Exercised - - - - Forfeited - - - - Expired - - - - Ending balance 3,930,000 $ 0.0052 - $ - Intrinsic value of options $ 6,267,475 $ - Weighted Average Remaining Contractual Life (Years) 9.81 |
OPERATING LEASE
OPERATING LEASE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Operating Lease | ||
OPERATING LEASE | NOTE 15: OPERATING LEASE The Company has adopted ASU No. 2016-02, Leases (Topic 842) 576,566 585,207 The Company has chosen to implement this standard using the modified retrospective model approach with a cumulative-effect adjustment, which does not require the Company to adjust the comparative periods presented when transitioning to the new guidance on January 1, 2019. The Company has also elected to utilize the transition related practical expedients permitted by the new standard. The modified retrospective approach provides a method for recording existing leases at adoption and in comparative periods that approximates the results of a modified retrospective approach. The lease right of use asset of in the original amount of $ 592,909 During the year ended December 31, 2020, the Company renegotiated their leases with the landlord for TRAQ Pvt Ltd. As a result of this renegotiation, the Company vacated one of their two leases, and as a result, impaired $ 333,571 349,428 As of June 30, 2021, the value of the unamortized lease right of use asset is $ 118,237 127,919 SCHEDULE OF REMAINING LEASE OBLIGATION Remaining Lease Obligation by calendar year (undiscounted cash flows) 2022 $ 13,209 2023 28,593 2024 28,593 2025 29,487 2026 32,882 2027 58,914 Total lease payments 191,678 Less: Imputed interest 63,759 Present value of lease liabilities $ 127,919 For the six months ended June 30, 2021 and 2020 the Company recorded rent expense of $ 15,511 and $ 63,895 . | NOTE 13: OPERATING LEASE The Company has adopted ASU No. 2016-02, Leases (Topic 842) 576,566 585,207 The Company has chosen to implement this standard using the modified retrospective model approach with a cumulative-effect adjustment, which does not require the Company to adjust the comparative periods presented when transitioning to the new guidance on January 1, 2019. The Company has also elected to utilize the transition related practical expedients permitted by the new standard. The modified retrospective approach provides a method for recording existing leases at adoption and in comparative periods that approximates the results of a modified retrospective approach. The lease right of use asset of in the original amount of $ 592,909 100,079 74,214 During the year ended December 31, 2020, the Company renegotiated their leases with the landlord for TRAQ Pvt Ltd. As a result of this renegotiation, the Company vacated one of their two leases, and as a result, impaired $ 333,571 349,428 As of December 31, 2020, the value of the unamortized lease right of use asset is $ 126,118 133,998 SCHEDULE OF REMAINING LEASE OBLIGATION Remaining Lease Obligation by calendar year (undiscounted cash flows) 2022 2021 $ 26,087 2022 29,091 2023 29,091 2024 30,000 2025 33,455 2026 and thereafter 59,940 Total lease payments 207,663 Less: Imputed interest 73,665 Present value of lease liabilities $ 133,998 |
CONCENTRATIONS
CONCENTRATIONS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | ||
CONCENTRATIONS | nOTE 17: CONCENTRATIONS During the six months ended June 30, 2021 and 2020, the Company had two major customers comprising 87 88 % of revenues, respectively. A major customer is defined as a customer that represents 10 % or greater of total revenues. There was 87 % and 85 % of accounts receivable representing two and two customers as of June 30, 2021 and December 31, 2020, respectively. The Company does not believe that the risk associated with these customers or vendors will have an adverse effect on the business. | nOTE 14: CONCENTRATIONS During the years ended December 31, 2020 and 2019, the Company had two major customers comprising 85% 82% 85% 67% The Company does not believe that the risk associated with these customers or vendors will have an adverse effect on the business. |
CONTINGENCY
CONTINGENCY | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
CONTINGENCY | nOTE 18: CONTINGENCY During the year ended December 31, 2018, the Company charged an independent truck driver approximately $ 190,000 800 | nOTE 15: CONTINGENCY During the year ended December 31, 2018, the Company charged an independent truck driver approximately $ 190,000 800 |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | NOTE 16: PROVISION FOR INCOME TAXES The provision (benefit) for income taxes for the years ended December 31, 2020 and 2019 differs from the amount which would be expected as a result of applying the statutory tax rates to the losses before income taxes due primarily to the valuation allowance to fully reserve net deferred tax assets. All United States based entities The following table summarizes the significant differences between the U.S. Federal statutory tax rate and the Company’s effective tax rate for financial statement purposes for the years ended December 31, 2020 and 2019: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION 2020 2019 Federal income taxes at statutory rate 21.00 % 21.00 % State income taxes at statutory rate 7.50 % 7.50 % Temporary differences 0.38 % (0.82 )% Permanent differences (0.98 )% (7.41 )% Change in valuation allowance (27.90 )% (20.27 )% Totals 0.00 % 0.00 % Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carry-forwards are expected to be available to reduce taxable income. As the achievement of required future taxable income is uncertain, the Company recorded a valuation allowance. SCHEDULE OF DEFERRED TAX ASSETS As of As of December 31, December 31, Deferred tax assets: Net operating losses before non-deductible items $ 747,748 $ 579,118 Stock-based compensation 28,174 - Depreciation (1,616 ) (1,616 ) Total deferred tax assets 774,306 577,502 Less: Valuation allowance (774,306 ) (577,502 ) Net deferred tax assets $ - $ - As of December 31, 2020, the Company has a net operating loss carry forward of $ 2,777,151 expiring through 2037. 196,804 The Company classifies income tax penalties and interest, if any, as part of other general and administrative expenses in the accompanying consolidated statements of operations. The Company did no no India based entity Significant components of deferred tax liabilities as at December 31, 2020 and 2019 (was acquired May 2019): SCHEDULE OF DEFERRED TAX ASSETS As of As of December 31, 2020 December 31, 2019 Deferred Tax Assets: Difference between book and tax base of fixed assets $ 43,868 $ 56,696 Provision for gratuity 27,189 22,253 Provision for leave encashment 11,030 8,598 Operating lease 5,170 2,339 NOL carryforward (based on last tax return filed per Indian Income Tax laws) 43,140 11,404 Timing difference on TDS under 40a(ia) 9,002 - MAT credit 8,644 8,860 Deferred Tax Assets 148,043 110,150 Net Deferred Tax Assets 148,043 110,150 Less: Valuation allowance (148,043 ) (110,150 ) Net Deferred Tax Asset $ - $ - Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of assets and liabilities and their respective tax bases. At December 31, 2020, the Company performed an analysis of the deferred tax asset valuation allowance due to management’s uncertainty about its realization. The Company when necessary will record a valuation allowance against this deferred tax asset. Based on the analysis, the Company has provided a valuation allowance against the full amount of said Deferred Tax Assets of $ 148,043 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | nOTE 17: EMPLOYEE BENEFIT PLANS TRAQ Pvt Ltd.’s Gratuity Plan provides for lump sum payment to vested employees on retirement or upon termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. Liabilities with regard to the Gratuity Plans are determined by actuarial valuation using the projected unit credit method. Current service costs for the Gratuity Plan are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees. The benefit obligation has been measured as of December 31, 2020. The gratuity plan is unfunded. The following table sets forth the activity of the Gratuity Plans and the amounts recognized in the Company’s financial statements for the year ended December 31, 2020: SCHEDULE OF EMPLOYEE GRATUITY PLANS Year Ended December 31, 2020 Change in projected benefit obligation: Projected benefit obligation as of January 1, 2020 $ 85,594 Service cost 10,746 Interest cost 5,595 Benefits paid (19,033 ) Actuarial gain (loss) on the Obligation 23,761 Effect of exchange rate changes (2,090 ) $ 104,573 Projected benefit obligation as of December 31, 2020 Unfunded amount – non-current $ 94,023 Unfunded amount - current 10,550 Total accrued liability $ 104,573 Components of net period benefit costs: Service cost $ 10,746 Interest cost 5,595 Actuarial gain (loss) on the Obligation 23,761 $ 40,102 The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: Discount rate 5.55% Rate of increase in compensation levels 10.00 % The benefit obligation has been measured as of December 31, 2019. The gratuity plan is unfunded. The following table sets forth the activity of the Gratuity Plans and the amounts recognized in the Company’s financial statements for the period May 16, 2019 through December 31, 2019: Period May 16, 2019 December 31, 2019 Change in projected benefit obligation: Projected benefit obligation as of May 16, 2019 $ 65,550 Service cost 6,982 Interest cost 3,106 Benefits paid (1,932 ) Actuarial gain (loss) on the Obligation 13,086 Effect of exchange rate changes (1,198 ) $ 85,594 Projected benefit obligation as of December 31, 2019 Unfunded amount – non-current $ 74,781 Unfunded amount - current 10,813 Total accrued liability $ 85,594 Components of net period benefit costs: Service cost $ 6,982 Interest cost 3,106 Actuarial gain (loss) on the Obligation 11,888 $ 21,976 The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: Discount rate 6.70% Rate of increase in compensation levels 10.00 % Leave Encashment The other long-term employee benefits has been measured as of December 31, 2020. The following table sets forth the activity of the leave encashment and the amounts recognized in TRAQ Pvt Ltd.’s financial statements at December 31, 2020: Year Ended December 31, 2020 Change in projected benefit obligation: Projected benefit obligation as of January 1, 2020 $ 33,070 Service cost 10,746 Interest cost 5,595 Benefits paid (2,212 ) Actuarial gain (loss) on the Obligation (3,969 ) Effect of exchange rate changes (806 ) $ 42,424 Projected benefit obligation as of December 31, 2020 Unfunded amount – non-current $ 37,306 Unfunded amount - current 5,118 Total accrued liability $ 42,424 Components of net period benefit costs: Service cost $ 10,746 Interest cost 5,595 Actuarial gain (loss) on the Obligation (3,969 ) $ 12,372 The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: Discount rate 5.55% Rate of increase in compensation levels 10.00 % The other long-term employee benefits has been measured as of December 31, 2019. The following table sets forth the activity of the leave encashment and the amounts recognized in TRAQ Pvt Ltd.’s financial statements at the end of the period May 16, 2019 through December 31, 2019: Period May 16, 2019 December 31, 2019 Change in projected benefit obligation: Projected benefit obligation as of May 16, 2019 $ 24,243 Service cost 3,646 Interest cost 940 Benefits paid (919 ) Actuarial gain (loss) on the Obligation 5,617 Effect of exchange rate changes (457 ) $ 33,070 Projected benefit obligation as of December 31, 2019 Unfunded amount – non-current $ 27,682 Unfunded amount - current 5,388 Total accrued liability $ 33,070 Components of net period benefit costs: Service cost $ 3,646 Interest cost 940 Actuarial gain (loss) on the Obligation 5,160 $ 9,746 The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: Discount rate 6.70% Rate of increase in compensation levels 10.00 % |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
COMMITMENTS AND CONTINGENCIES | nOTE 19: COMMITMENTS AND CONTINGENCIES Commitments and contingencies in respect of TRAQ Pvt Ltd; (i) TRAQ Pvt Ltd had applied for compounding of the TDS liability for the assessment year 2014-2015 and 2015-2016 in accordance with Indian Income Tax Laws. However, no (ii) TRAQ Pvt Ltd has outstanding Gratuity for $ 23,971 13,816 (iii) There are numerous interpretative issues relating to the Indian Supreme Court (SC) judgment dated February 28, 2019, on Provident Fund (PF) on the inclusion of allowances for the purpose of PF contribution as well as its applicability. Due to a pending decision on the subject review petition and directions from EPFO, the impact has been recorded in the six months ended June 30, 2021 Consolidated Financial Statements. (iv) TRAQ Pvt Ltd has delayed in complying with provisions related to Foreign Direct Investment and Transfer of Shares to Non-resident as per the Master Circulars and notification issued by Reserve Bank of India, therefore, is liable for imposition of penalty. Since the amount of the penalty for the same is not ascertainable, no effect was given in the Consolidated Financial Statements. (v) Prior to its acquisition in May 2019, TRAQ Pvt Ltd, had provided a guarantee in favor of State Bank of India for $ 165,813 | nOTE 18: COMMITMENTS AND CONTINGENCIES Commitments and contingencies in respect of TRAQ Pvt Ltd; (i) TRAQ Pvt Ltd had applied for compounding of the TDS liability for the assessment year 2014-2015 and 2015-2016 in accordance with Indian Income Tax Laws. However, no (ii) TRAQ Pvt Ltd has outstanding Gratuity for $ 23,971 13,816 (iii) There are numerous interpretative issues relating to the Indian Supreme Court (SC) judgment dated February 28, 2019, on Provident Fund (PF) on the inclusion of allowances for the purpose of PF contribution as well as its applicability. Due to a pending decision on the subject review petition and directions from EPFO, the impact for the past period, if any, was not ascertainable and consequently no effect was given in the Consolidated Financial Statements. (iv) TRAQ Pvt Ltd has delayed in complying with provisions related to Foreign Direct Investment and Transfer of Shares to Non-resident as per the Master Circulars and notification issued by Reserve Bank of India, therefore, is liable for imposition of penalty. Since the amount of the penalty for the same is not ascertainable, no effect was given in the Consolidated Financial Statements. (v) Prior to its acquisition in May 2019, TRAQ Pvt Ltd, had provided a guarantee in favor of State Bank of India for $ 165,813 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | nOTE 19: SUBSEQUENT EVENTS In January 2021, the Company issued 37,500 52,500 61,500 70,725 On January 19, 2021, the Company entered into a 12% 125,000 The GS Note has a maturity of one-year and is to be repaid commencing on the fifth month anniversary and every month thereafter in the amount of $ 20,000 66% 10,000 5,000 26,000 170,000 On January 22, 2021, the Company entered into a Share Exchange Agreement with Rohuma, LLC, a Delaware limited liability company (“Rohuma”) and its members, whereby the Rohuna members agreed to exchange all of their respective membership interests in Rohuma in exchange for 4,292,220 2,562,277 4,335,142 1.01 On February 12, 2021, the Company entered into a 10% 0.01 70% 200,000 three 2.00 60,000 On February 16, 2021, the Company entered into several stock purchase agreements for the issuance of 570,000 456,000 0.80 285,000 three years 2.00 On February 17, 2021, the Company entered into a Share Exchange Agreement with Mimo Technologies Private Ltd., and Indian corporation (“Mimo”) and its shareholders, whereby the Mimo shareholders agreed to exchange all of their respective shares in Mimo in exchange for warrants to purchase 1,367,539 three years 0.001 22,338 On March 6, the Company converted $ 181,250 43,438 264,338 On March 8, 2021, the Company entered into a consulting agreement to provide advisory services regarding strategic planning. The agreement is for a term of one-year. The agreement calls for payments to be paid monthly in the amount of $ 3,000 25,000 three 100,000 2.00 March 7, 2022 |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 7: GOODWILL The Company’s goodwill consists of the following: SCHEDULE OF GOODWILL June 30, 2021 December 31, 2020 Rohuma $ 3,519,869 $ - Mimo Technologies 2,987,811 - Net $ 6,507,680 $ - For the period ended June 30, 2021, there were no |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2021 | |
Convertible Notes Payable | |
CONVERTIBLE NOTES PAYABLE | NOTE 10: CONVERTIBLE NOTES PAYABLE As of June 30, 2021 and December 31, 2020, the Company had the following convertible notes outstanding: SCHEDULE OF CONVERTIBLE NOTES OUTSTANDING June 30, 2021 December 31, 2020 GS Capital (a) $ 105,000 $ Platinum Point Capital (b) 400,000 - Total Convertible Notes Payable $ 505,000 $ - Less: Discounts (176,902 ) - $ 328,098 $ - (a) On January 19, 2021, the Company entered into a 12 125,000 one-year 20,000 66 20 10,000 5,000 26,000 170,000 (b) On February 12, 2021, the Company entered into a 10 one-year 0.01 70 15 200,000 three 2.00 60,000 Interest expense on these notes for the six months ended June 30, 2021 and 2020 are $ 21,781 0 146,966 0 |
DERIVATIVE LIABILITIES
DERIVATIVE LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE LIABILITIES | NOTE 16: DERIVATIVE LIABILITIES On January 19, 2021, the Company entered into a 12% Convertible Promissory Note with GS Capital Partners, LLC (the “GS Note”) in the amount of $ 125,000 one-year 20,000 The conversion price of the GS Note is 66% of the lowest closing stock price over the previous 20 trading days 10,000 5,000 26,000 170,000 On February 12, 2021, the Company entered into a 10% Convertible Promissory Note with Platinum Point Capital, LLC (the “Platinum Note”). The Platinum Note has a maturity of one-year The conversion price of the Platinum Note is the greater of (a) $0.01 or (b) 70% of the lowest closing stock price over the previous 15 trading days 200,000 three 2.00 60,000 Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each warrant is estimated using the Black-Scholes valuation model. The following assumptions were used in June 30, 2021 and December 31, 2020: SCHEDULE OF VALUATION ASSUMPTIONS Six Months Ended Year Ended Expected term 1 - Expected volatility 164 214 % - Expected dividend yield - - Risk-free interest rate 0.15 % - The Company’s derivative liabilities are as follows: SCHEDULE OF DERIVATIVE LIABILITIES June 30, December 31, Fair value of the GS Capital conversion option $ 280,000 $ - Fair value of the Platinum Point conversion option 1,024,000 - Fair value of the Platinum Point warrants ( 200,000 206,000 $ 1,510,000 $ - Activity related to the derivative liabilities for the period ended June 30, 2021 is as follows: SCHEDULE OF ACTIVITY RELATED TO DERIVATIVE LIABILITIES Beginning balance as of December 31, 2020 $ - Issuances of warrants/conversion option – derivative liabilities 313,868 Warrants exchanged for common stock - Change in fair value of warrants/conversion option - derivative liabilities 1,196,132 Ending balance as of June 30, 2021 $ 1,510,000 There were no derivative liabilities prior to January 2021. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | 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 22, 2021. Interim results of operations for the six months ended June 30, 2021 are not necessarily indicative of future results for the full year. | Basis of Presentation The accompanying 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. |
Consolidation | Consolidation The condensed consolidated financial statements include the accounts of TraQiQ, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company applies the guidance of Topic 810 Consolidation Pursuant to ASC paragraph 810-10-15-8, the usual condition for a controlling financial interest is ownership of a majority voting interest, and, therefore, as a general rule ownership by one reporting entity, directly or indirectly, of more than 50 percent of the outstanding voting shares of another entity is a condition pointing toward consolidation. The power to control may also exist with a lesser percentage of ownership, for example, by contract, lease, agreement with other stockholders, or by court decree. | 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 | 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. | 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. |
Foreign Currency Transactions | Foreign Currency Transactions The Company accounts for foreign currency transactions in accordance with ASC 830, “Foreign Currency Matters” (“ASC 830”), specifically the guidance in subsection ASC 830-20, “Foreign Currency Transactions”. The U.S. dollar is the functional and reporting currency for the Company and its subsidiaries other than TRAQ Pvt Ltd. whose functional currency is the Indian Rupee. Pursuant to ASC 830, monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting gains or losses upon settlement reported in foreign exchange gain (loss) in the computation of net income (loss). Gains or losses resulting from translation adjustments are reported under accumulated other comprehensive income (loss). | Foreign Currency Transactions The Company accounts for foreign currency transactions in accordance with ASC 830, “Foreign Currency Matters” (“ASC 830”), specifically the guidance in subsection ASC 830-20, “Foreign Currency Transactions”. The U.S. dollar is the functional and reporting currency for the Company and its subsidiaries other than TRAQ Pvt Ltd. whose functional currency is the Indian Rupee. Pursuant to ASC 830, monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting gains or losses upon settlement reported in foreign exchange gain (loss) in the computation of net income (loss). Gains or losses resulting from translation adjustments are reported under accumulated other comprehensive income (loss). |
Reclassification | 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. | 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 and Cash Equivalents | Cash and Cash Equivalents 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 of $ 137,530 29,658 | Cash and Cash Equivalents 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 of $ 29,658 9,094 |
Restricted Cash | Restricted Cash The Company’s restricted cash balance consists of time deposits with financial institutions which are valued at cost and approximate fair value. Interest earned on these deposits in included in interest income. The carrying value of our restricted cash at June 30, 2021 and December 31, 2020 was $ 165,488 28,746 | Restricted Cash The Company’s restricted cash balance consists of time deposits with financial institutions which are valued at cost and approximate fair value. Interest earned on these deposits in included in interest income. The carrying value of our restricted cash at December 31, 2020 and December 31, 2019 was $ 28,746 182,627 |
Accounts Receivable and Concentration of Credit Risk | 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 an allowance of $ 160,403 and $ 0 was required for the outstanding accounts receivable as of June 30, 2021 and December 31, 2020, respectively. | 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 |
Property and Equipment and Long-Lived Assets | Property and Equipment and Long-Lived Assets Fixed assets are stated at cost. Depreciation on fixed assets are computed using the straight-line method over the estimated useful lives of the assets, which range from three to ten 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. Intangible assets represent purchased intangible of TRAQ Pvt Ltd. which includes customer relationships and trademarks. The Company amortizes these intangible assets on a straight-line basis over their estimated useful lives of 15 The Company has adopted Accounting Standard Update (“ASU”) 2017-04 Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment 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 June 30, 2021 and December 31, 2020. | Property and Equipment and Long-Lived Assets Fixed assets are stated at cost. Depreciation on fixed assets are computed using the straight-line method over the estimated useful lives of the assets, which range from three to ten 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. Intangible assets represent purchased intangible of TRAQ Pvt Ltd. which includes customer relationships and trademarks. The Company amortizes these intangible assets on a straight-line basis over their estimated useful lives of 15 The Company has adopted Accounting Standard Update (“ASU”) 2017-04 Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment 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 |
Capitalized Software Costs | Capitalized Software Costs In accordance with the relevant FASB accounting guidance regarding the development of software to be sold, leased, or marketed, the Company expenses such costs as they are incurred until technological feasibility has been established, at and after which time these costs are capitalized until the product is available for general release to customers. Once the technological feasibility is established per ASC 985-20, the Company capitalizes costs associated with the acquisition or development of major software for internal and external use in the balance sheet. Costs incurred to enhance the Company’s software products, after general market release of the services using the products, is expensed in the period they are incurred. The Company only capitalizes subsequent additions, modifications or upgrades to internally developed software to the extent that such changes allow the software to perform a task it previously did not perform. The Company expenses software maintenance and training costs as incurred. The Company acquired $ 146,065 | Capitalized Software Costs In accordance with the relevant FASB accounting guidance regarding the development of software to be sold, leased, or marketed, the Company expenses such costs as they are incurred until technological feasibility has been established, at and after which time these costs are capitalized until the product is available for general release to customers. Once the technological feasibility is established per ASC 985-20, the Company capitalizes costs associated with the acquisition or development of major software for internal and external use in the balance sheet. Costs incurred to enhance the Company’s software products, after general market release of the services using the products, is expensed in the period they are incurred. The Company only capitalizes subsequent additions, modifications or upgrades to internally developed software to the extent that such changes allow the software to perform a task it previously did not perform. The Company expenses software maintenance and training costs as incurred. The Company has not capitalized any cost for software development for the years ended December 31, 2020 and 2019, respectively. The Company only capitalizes subsequent additions, modifications or upgrades to internally developed software to the extent that such changes allow the software to perform a task it previously did not perform. The Company expenses software maintenance and training costs as incurred. The Company acquired $ 146,065 |
Revenue Recognition | 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. Professional Service Revenue TRAQ Pvt Ltd. derives a large part of its revenues from professional and support services, which includes revenue generated from software development projects and associated fees for consulting, implementation, training, and project management provided to customers using their systems. 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 customization of software’s, selling of licenses, 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 consulting and technical support is delivered on as the work is being performed, which is satisfied prior to invoicing. The Company generally collects payment within 30 to 60 days of completion of the performance obligation and there are no agency relationships. Software development arrangements involving significant customization, modification or production are accounted for in accordance with the appropriate technical accounting guidance issued by the FASB using the percentage-of- completion method. The Company recognizes revenue using periodic reported actual hours worked as a percentage of total expected hours required to complete the project arrangement and applies the percentage to the total arrangement fee. Unbilled revenue represents earnings in excess of billings as at the end of the reporting period. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenues in the statements of operations. TRAQ Pvt Ltd. has deferred the revenue and costs attributable to certain process transition activities with respect to its customers where such activities do not represent the culmination of a separate earnings process. Such revenue and costs are subsequently recognized ratably over the period in which the related services are performed. Further, the deferred costs are limited to the amount of the deferred revenues. TRAQ Pvt Ltd. has now started offering an integrated solution for supply chain and last mile. This product called “TraQSuite” is now offered in multiple markets as a cloud-based subscription offering. This is a significant improvement from the earlier professional services business. 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 six months ended June 30, 2021 and 2020, disaggregated by type: SUMMARY OF DISAGGREGATION OF REVENUE 2021 2020 Professional Services Revenue $ 593,898 $ 463,385 Sale of goods 544,793 - Software Solution Revenue 180,697 57,934 $ 1,319,388 $ 521,319 | 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. Professional Service Revenue TRAQ Pvt Ltd. derives a large part of its revenues from professional and support services, which includes revenue generated from software development projects and associated fees for consulting, implementation, training, and project management provided to customers using their systems. 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 customization of software’s, selling of licenses, 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 consulting and technical support is delivered on as the work is being performed, which is satisfied prior to invoicing. The Company generally collects payment within 30 to 60 days of completion of the performance obligation and there are no agency relationships. Software development arrangements involving significant customization, modification or production are accounted for in accordance with the appropriate technical accounting guidance issued by the FASB using the percentage-of- completion method. The Company recognizes revenue using periodic reported actual hours worked as a percentage of total expected hours required to complete the project arrangement and applies the percentage to the total arrangement fee. Unbilled revenue represents earnings in excess of billings as at the end of the reporting period. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenues in the statements of operations. TRAQ Pvt Ltd. has deferred the revenue and costs attributable to certain process transition activities with respect to its customers where such activities do not represent the culmination of a separate earnings process. Such revenue and costs are subsequently recognized ratably over the period in which the related services are performed. Further, the deferred costs are limited to the amount of the deferred revenues. TRAQ Pvt Ltd. has now started offering an integrated solution for supply chain and last mile. This product called “TraQSuite” is now offered in multiple markets as a cloud-based subscription offering. This is a significant improvement from the earlier professional services business. 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 years ended December 31, 2020 and 2019, disaggregated by type: SUMMARY OF DISAGGREGATION OF REVENUE 2020 2019 Professional Services Revenue $ 935,214 $ 654,374 Software Solution Revenue 74,735 26,358 $ 1,009,949 $ 680,732 |
Costs of Services Provided | Costs of Services Provided Costs of services provided consist of purchase of goods, data processing costs, customer support costs including personnel costs to maintain the Company’s proprietary databases, costs to provide customer call center support, hardware and software expense associated with transaction processing systems and exchanges, telecommunication and computer network expense, and occupancy costs associated with facilities where these functions are performed. Depreciation expense is not included in costs of services provided. | Costs of Services Provided Costs of services provided consist of data processing costs, customer support costs including personnel costs to maintain the Company’s proprietary databases, costs to provide customer call center support, hardware and software expense associated with transaction processing systems and exchanges, telecommunication and computer network expense, and occupancy costs associated with facilities where these functions are performed. Depreciation expense is not included in costs of services provided. |
Lease Obligations | Lease Obligations The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current portion of operating lease liabilities and operating lease liabilities, less current portion in the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For leases in which the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately. | Lease Obligations The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current portion of operating lease liabilities and operating lease liabilities, less current portion in the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For leases in which the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately. |
Income Taxes | Income Taxes Income taxes are accounted under the asset and liability method. The current charge for income tax expense is calculated in accordance with the relevant tax regulations applicable to entity. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | Income Taxes Income taxes are accounted under the asset and liability method. The current charge for income tax expense is calculated in accordance with the relevant tax regulations applicable to entity. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Uncertain Tax Positions | 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. TraQiQ, Inc., TraQiQ Solutions, OmniM2M and TransportIQ file a consolidated income tax return in the U.S. federal tax jurisdiction and various state tax jurisdictions. TRAQ Pvt Ltd. files income tax returns in all India 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. The India tax returns of TRAQ Pvt Ltd. are subject to examination by the India Income Tax Department and India state taxing authority, generally for 12 months after the relevant tax year, 24 months after the relevant tax year in case transfer pricing provisions are applicable. | 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. TraQiQ, Inc., TraQiQ Solutions, OmniM2M and TransportIQ file a consolidated income tax return in the U.S. federal tax jurisdiction and various state tax jurisdictions. TRAQ Pvt Ltd. files income tax returns in all India 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. The India tax returns of TRAQ Pvt Ltd. are subject to examination by the India Income Tax Department and India state taxing authority, generally for 12 months after the relevant tax year, 24 months after the relevant tax year in case transfer pricing provisions are applicable. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 825, “ Financial Instruments | Fair Value of Financial Instruments ASC 825, “ Financial Instruments |
Fair Value Measurements | Fair Value Measurements ASC 820 “ Fair Value Measurements The following provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which fair value is observable: Level 1- fair value measurements are those derived from quoted prices (unadjusted in active markets for identical assets or liabilities); Level 2- fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and Level 3- fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Financial instruments classified as Level 1 - quoted prices in active markets include cash. These consolidated financial instruments are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment to estimation. Valuations based on unobservable inputs are highly subjective and require significant judgments. Changes in such judgments could have a material impact on fair value estimates. In addition, since estimates are as of a specific point in time, they are susceptible to material near-term changes. Changes in economic conditions may also dramatically affect the estimated fair values. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management for the respective periods. The respective carrying value of certain financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include cash, investments, short-term notes payable, accounts payable and accrued expenses. | Fair Value Measurements ASC 820 “ Fair Value Measurements The following provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which fair value is observable: Level 1- fair value measurements are those derived from quoted prices (unadjusted in active markets for identical assets or liabilities); Level 2- fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and Level 3- fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Financial instruments classified as Level 1 - quoted prices in active markets include cash. These consolidated financial instruments are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment to estimation. Valuations based on unobservable inputs are highly subjective and require significant judgments. Changes in such judgments could have a material impact on fair value estimates. In addition, since estimates are as of a specific point in time, they are susceptible to material near-term changes. Changes in economic conditions may also dramatically affect the estimated fair values. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management for the respective periods. The respective carrying value of certain financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include cash, investments, short-term notes payable, accounts payable and accrued expenses. |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives are recorded on the consolidated balance sheet at fair value. The conversion features of the convertible instruments are embedded derivatives and are separately valued and accounted for on the consolidated balance sheet with changes in fair value recognized during the period of change as a separate component of other income/expense. Fair values for exchange-traded securities and derivatives are based on quoted market prices. The pricing model we use for determining the fair value of our derivatives are binomial pricing models. Valuations derived from this model are subject to ongoing internal and external verification and review. The model uses market-sourced inputs such as interest rates and stock price volatilities. Selection of these inputs involves management’s judgment and may impact net income (loss). With the issuance of the July 2017 FASB ASU 2017-11, “Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815),” The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, “ Debt—Debt with Conversion and Other Options The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. Under current GAAP, an equity-linked financial instrument with a down round feature that otherwise is not required to be classified as a liability under the guidance in Topic 480 is evaluated under the guidance in Topic 815, “ Derivatives and Hedging Generally, for warrants and conversion options embedded in financial instruments that are deemed to have a debt host (assuming the underlying shares are readily convertible to cash or the contract provides for net settlement such that the embedded conversion option meets the definition of a derivative), the existence of a down round feature results in an instrument not being considered indexed to an entity’s own stock. This results in a reporting entity being required to classify the freestanding financial instrument or the bifurcated conversion option as a liability, which the entity must measure at fair value initially and at each subsequent reporting date. The amendments in this Update revise the guidance for instruments with down round features in Subtopic 815-40, “ Derivatives and Hedging—Contracts in Entity’s Own Equity For entities that present EPS in accordance with Topic 260, and when the down round feature is included in an equity-classified freestanding financial instrument, the value of the effect of the down round feature is treated as a dividend when it is triggered and as a numerator adjustment in the basic EPS calculation. This reflects the occurrence of an economic transfer of value to the holder of the instrument, while alleviating the complexity and income statement volatility associated with fair value measurement on an ongoing basis. Convertible instruments are unaffected by the Topic 260 amendments in this Update. Those amendments in Part I of this Update are a cost savings relative to current GAAP. This is because, assuming the required criteria for equity classification in Subtopic 815-40 are met, an entity that issued such an instrument no longer measures the instrument at fair value at each reporting period (in the case of warrants) or separately accounts for a bifurcated derivative (in the case of convertible instruments) on the basis of the existence of a down round feature. For convertible instruments with embedded conversion options that have down round features, applying specialized guidance such as the model for contingent beneficial conversion features rather than bifurcating an embedded derivative also reduces cost and complexity. Under that specialized guidance, the issuer recognizes the intrinsic value of the feature only when the feature becomes beneficial instead of bifurcating the conversion option and measuring it at fair value each reporting period. The amendments in Part II of this Update replace the indefinite deferral of certain guidance in Topic 480 with a scope exception. This has the benefit of improving the readability of the Codification and reducing the complexity associated with navigating the guidance in Topic 480. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part 1 of this Update should be applied in either of the following ways: 1. retrospectively to outstanding financial instruments with a down round feature by means of a cumulative-effect adjustment to the statement of financial position as of the beginning of the first fiscal year and interim period(s) in which the pending content that links to this paragraph is effective; or 2. retrospectively to outstanding financial instruments with a down round feature for each prior reporting period presented in accordance with the guidance on accounting changes in paragraphs 250-10-45-5 through 45-10. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. | Derivative Financial Instruments Derivatives are recorded on the consolidated balance sheet at fair value. The conversion features of the convertible instruments are embedded derivatives and are separately valued and accounted for on the consolidated balance sheet with changes in fair value recognized during the period of change as a separate component of other income/expense. Fair values for exchange-traded securities and derivatives are based on quoted market prices. The pricing model we use for determining the fair value of our derivatives are binomial pricing models. Valuations derived from this model are subject to ongoing internal and external verification and review. The model uses market-sourced inputs such as interest rates and stock price volatilities. Selection of these inputs involves management’s judgment and may impact net income (loss). With the issuance of the July 2017 FASB ASU 2017-11, “Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815),” The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, “ Debt—Debt with Conversion and Other Options Under current GAAP, an equity-linked financial instrument with a down round feature that otherwise is not required to be classified as a liability under the guidance in Topic 480 is evaluated under the guidance in Topic 815, “ Derivatives and Hedging The amendments in this Update revise the guidance for instruments with down round features in Subtopic 815-40, “ Derivatives and Hedging—Contracts in Entity’s Own Equity For entities that present EPS in accordance with Topic 260, and when the down round feature is included in an equity-classified freestanding financial instrument, the value of the effect of the down round feature is treated as a dividend when it is triggered and as a numerator adjustment in the basic EPS calculation. This reflects the occurrence of an economic transfer of value to the holder of the instrument, while alleviating the complexity and income statement volatility associated with fair value measurement on an ongoing basis. Convertible instruments are unaffected by the Topic 260 amendments in this Update. Those amendments in Part I of this Update are a cost savings relative to current GAAP. This is because, assuming the required criteria for equity classification in Subtopic 815-40 are met, an entity that issued such an instrument no longer measures the instrument at fair value at each reporting period (in the case of warrants) or separately accounts for a bifurcated derivative (in the case of convertible instruments) on the basis of the existence of a down round feature. For convertible instruments with embedded conversion options that have down round features, applying specialized guidance such as the model for contingent beneficial conversion features rather than bifurcating an embedded derivative also reduces cost and complexity. Under that specialized guidance, the issuer recognizes the intrinsic value of the feature only when the feature becomes beneficial instead of bifurcating the conversion option and measuring it at fair value each reporting period. The amendments in Part II of this Update replace the indefinite deferral of certain guidance in Topic 480 with a scope exception. This has the benefit of improving the readability of the Codification and reducing the complexity associated with navigating the guidance in Topic 480. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part 1 of this Update should be applied in either of the following ways: 1. retrospectively to outstanding financial instruments with a down round feature by means of a cumulative-effect adjustment to the statement of financial position as of the beginning of the first fiscal year and interim period(s) in which the pending content that links to this paragraph is effective; or 2. retrospectively to outstanding financial instruments with a down round feature for each prior reporting period presented in accordance with the guidance on accounting changes in paragraphs 250-10-45-5 through 45-10. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. |
Earnings (Loss) Per Share of Common Stock | 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. | 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. |
Related Party Transactions | 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. | 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. |
Retirement Benefits to Employees | Retirement Benefits to Employees Defined Contribution Plan In India, the employees receive benefits from a provident fund, where the employer and employees each make monthly contributions to the plan at a pre-determined rate to the Regional Provident Fund Commissioner. Employer’s contributions to the fund is charged as an expense in the Statements of Operations. Defined Benefit Plan In accordance with the Payment of Gratuity Act, 1972, applicable for Indian companies, TRAQ Pvt Ltd. provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by TRAQ Pvt Ltd. TRAQ Pvt Ltd. records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. TRAQ Pvt Ltd. reserves its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. TRAQ Pvt Ltd.’s obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation. Other Long-Term Employee Benefits TRAQ Pvt Ltd.’s net obligation in respect of leave encashment is the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is based on the prevailing market yields of Indian government securities at the reporting date that have maturity dates approximating the terms of TRAQ Pvt Ltd.’s obligations. The calculation is performed using the projected unit credit method. Any actuarial gains or losses are recognized. | Retirement Benefits to Employees Defined Contribution Plan In India, the employees receive benefits from a provident fund, where the employer and employees each make monthly contributions to the plan at a pre-determined rate to the Regional Provident Fund Commissioner. Employer’s contributions to the fund is charged as an expense in the Statements of Operations. Defined Benefit Plan In accordance with the Payment of Gratuity Act, 1972, applicable for Indian companies, TRAQ Pvt Ltd. provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by TRAQ Pvt Ltd. TRAQ Pvt Ltd. records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. TRAQ Pvt Ltd. reserves its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. TRAQ Pvt Ltd.’s obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation. Other Long-Term Employee Benefits TRAQ Pvt Ltd.’s net obligation in respect of leave encashment is the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is based on the prevailing market yields of Indian government securities at the reporting date that have maturity dates approximating the terms of TRAQ Pvt Ltd.’s obligations. The calculation is performed using the projected unit credit method. Any actuarial gains or losses are recognized. |
Investments | Investments The Company’s investments are in debt and equity instruments. These investments are accounted for in accordance with ASC 320 Investments – Debt Securities and ASC 321 Investments – Equity Securities. Interest earned under such investments are included in interest income. | Investments The Company’s investments are in debt and equity instruments. These investments are accounted for in accordance with ASC 320 Investments – Debt Securities and ASC 321 Investments – Equity Securities. Interest earned under such investments are included in interest income. |
Segment Reporting | Segment Reporting For purposes of segment disclosures, two or more operating segments should be grouped only if the segments meet all the requirements of paragraph 280-10-50-11, including the requirements for similar economic characteristics. As a result, all operating units perform similar services, and approximately 99% of the Company’s revenue is generated from its Indian subsidiary. The Company believes that no segment reporting is required as all remaining operations outside of the Indian subsidiary is immaterial. | Segment Reporting For purposes of segment disclosures, two or more operating segments should be grouped only if the segments meet all the requirements of paragraph 280-10-50-11, including the requirements for similar economic characteristics. As a result, all operating units perform similar services, and approximately 99% of the Company’s revenue is generated from its Indian subsidiary. The Company believes that no segment reporting is required as all remaining operations outside of the Indian subsidiary is immaterial. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards There were 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. | Recently Issued Accounting Standards There were 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 | Going Concern The Company has an accumulated deficit of $ 6,008,129 and a working capital deficit of $ 8,120,378 , as of June 30, 2021, and a working capital deficit of $ 2,851,721 as of December 31, 2020. 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 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. The 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 and the successful development of the Company’s contemplated plan of operations, ultimately, to profitable operations, are necessary for the Company to continue operations. | Going Concern The Company has an accumulated deficit of $ 2,504,893 2,851,721 2,697,036 These 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. The consolidated financial statements of the Company do not include any adjustments that may result from the outcome of the uncertainties. In May 2019, the Company acquired 100% five 1,329,272 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 and the successful development of the Company’s contemplated plan of operations, ultimately, to profitable operations, are necessary for the Company to continue operations. |
Noncontrolling Interests | Noncontrolling Interests In accordance with ASC 810-10-45 Noncontrolling Interests in Consolidated Financial Statements, |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
SUMMARY OF DISAGGREGATION OF REVENUE | The following is a summary of revenue for the six months ended June 30, 2021 and 2020, disaggregated by type: SUMMARY OF DISAGGREGATION OF REVENUE 2021 2020 Professional Services Revenue $ 593,898 $ 463,385 Sale of goods 544,793 - Software Solution Revenue 180,697 57,934 $ 1,319,388 $ 521,319 | The following is a summary of revenue for the years ended December 31, 2020 and 2019, disaggregated by type: SUMMARY OF DISAGGREGATION OF REVENUE 2020 2019 Professional Services Revenue $ 935,214 $ 654,374 Software Solution Revenue 74,735 26,358 $ 1,009,949 $ 680,732 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
SCHEDULE OF BUSINESS ACQUISITION | SCHEDULE OF BUSINESS ACQUISITION Cash (including restricted cash of $ 185,399 $ 185,633 Accounts receivables, net 506,951 Prepaid expenses and other current assets 216,956 Right-of-use asset 576,566 Fixed assets 68,260 Customer relationships 448,800 Tradenames 49,799 Investment 42,248 Other assets 37,950 Accounts payable and accrued expenses (173,197 ) Accrued payroll and related taxes (325,629 ) Accrued duties and taxes (66,765 ) Lease liability (585,207 ) Deferred revenue (3,618 ) Cash overdraft (471,017 ) Debt – related parties (61,273 ) Debt (29,041 ) Purchase price $ 417,416 | |
SCHEDULE OF PROFORMA FOR BUSINESS ACQUISITION | SCHEDULE OF PROFORMA FOR BUSINESS ACQUISITION For the six months ended June 30, 2021 For the six months ended June 30, 2020 Revenues $ 1,355,350 $ 732,415 Net income (loss) $ (3,555,172 ) $ (488,535 ) Net income (loss) per share $ (0.12 ) $ (0.02 ) | The following table shows pro-forma results for the year December 31, 2019 as if the acquisition had occurred on January 1, 2019. These unaudited pro forma results of operations are based on the historical financial statements and related notes of TRAQ Pvt Ltd. and the Company. SCHEDULE OF PROFORMA FOR BUSINESS ACQUISITION For the year ended December 31, 2019 Revenues $ 1,143,606 Net income (loss) $ (166,533 ) Net income (loss) per share $ (0.01 ) The warrants that are exercisable in one-year and two-years are conditioned upon TRAQ Pvt Ltd. achieving certain revenue figures and pre-tax profit percentages. TRAQ Pvt Ltd. must achieve target revenue of $ 1.1 25 419,127 On January 22, 2021, the Company entered into a Share Exchange Agreement with Rohuma, LLC, a Delaware limited liability company (“Rohuma”) and its members, whereby the Rohuna members agreed to exchange all of their respective membership interests in Rohuma in exchange for 4,292,220 2,562,277 3,433,776 0.80 99 1 |
Rohuma, LLC [Member] | ||
Business Acquisition [Line Items] | ||
SCHEDULE OF BUSINESS ACQUISITION | SCHEDULE OF BUSINESS ACQUISITION Cash $ 6,027 Accounts receivables, net 4,179 Prepaid expenses and other current assets 8,943 Fixed assets 4,512 Investment 1,440 Accounts payable and accrued expenses (58,153 ) Accrued payroll and related taxes - Accrued duties and taxes (2,688 ) Comprehensive income - Cash overdraft (2,980 ) Debt – related parties (37,776 ) Debt (10,000 ) Net assets and liabilities acquired $ (86,496 ) | |
MIMO Technologies PVT Ltd [Member] | ||
Business Acquisition [Line Items] | ||
SCHEDULE OF BUSINESS ACQUISITION | SCHEDULE OF BUSINESS ACQUISITION Cash $ 43,851 Accounts receivables, net 58,692 Prepaid expenses and other current assets 272,872 Fixed and intangible assets 153,186 Accounts payable and accrued expenses (708,833 ) Accrued payroll and related taxes (104,750 ) Accrued duties and taxes (28,213 ) Comprehensive income (42,735 ) Debt – related parties (343,118 ) Debt (236,712 ) Net assets and liabilities acquired $ (935,760 ) |
CASH AND RESTRICTED CASH (Table
CASH AND RESTRICTED CASH (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | ||
SCHEDULE OF CASH AND RESTRICTED CASH | SCHEDULE OF CASH AND RESTRICTED CASH June 30, 2021 December 31, 2020 Cash on hand $ 109 $ 141 Bank balances 137,421 29,517 Restricted cash 165,488 28,746 Total $ 303,018 $ 58,404 | Cash and restricted cash are as follows: SCHEDULE OF CASH AND RESTRICTED CASH December 31, 2020 December 31, 2019 Cash on hand $ 141 $ 252 Bank balances 29,517 8,842 Restricted cash 28,746 182,627 Total $ 58,404 $ 191,721 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
SCHEDULE OF PROPERTY AND EQUIPMENT | SCHEDULE OF PROPERTY AND EQUIPMENT June 30, 2021 December 31, 2020 Estimated Life Property and equipment – TRAQ Pvt Ltd. $ 628,026 $ 638,587 3 10 Property and equipment – Rohuma US 1,100 - 3 10 Property and equipment – Rohuma India 4,117 - 3 10 Property and Equipment – Mimo Technologies 2,927 - 3 10 Less: accumulated depreciation (599,351 ) (602,214 ) Net $ 36,819 $ 36,373 | The Company’s property and equipment is as follows: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2020 December 31, 2019 Estimated Life Property and equipment – TRAQ Pvt Ltd. $ 638,587 $ 650,621 3 10 Less: accumulated depreciation (602,214 ) (601,940 ) Net $ 36,373 $ 48,681 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Intangible Assets | ||
SCHEDULE OF INTANGIBLE ASSETS | SCHEDULE OF INTANGIBLE ASSETS June 30, 2021 December 31, 2020 Customer relationships $ 448,800 $ 448,800 Tradenames 49,799 49,799 Software 250,451 - Less: accumulated amortization (185,418 ) (54,015 ) Net $ 563,632 $ 444,584 | The Company’s intangible assets are as follows: SCHEDULE OF INTANGIBLE ASSETS December 31, 2020 December 31, 2019 Customer relationships $ 448,800 $ 448,800 Tradenames 49,799 49,799 Software Less: accumulated amortization (54,015 ) (20,775 ) Net $ 444,584 $ 477,824 |
LONG-TERM INVESTMENT (Tables)
LONG-TERM INVESTMENT (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Investments, All Other Investments [Abstract] | ||
SCHEDULE OF LONG-TERM INVESTMENT | The Company’s long-term investment is as follows: SCHEDULE OF LONG-TERM INVESTMENT June 30, 2021 December 31, 2020 Equity Security – Compulsorily Convertible Debenture $ - $ 40,603 | The Company’s long-term investment is as follows: SCHEDULE OF LONG-TERM INVESTMENT December 31, 2020 December 31, 2019 Equity Security – Compulsorily Convertible Debenture $ 40,603 $ 41,617 |
NOTE RECEIVABLE (Tables)
NOTE RECEIVABLE (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
SCHEDULE OF NOTE RECEIVABLE | The Company’s notes receivable is as follows: SCHEDULE OF NOTE RECEIVABLE June 30, December 31, MIMO Technologies PVT Ltd $ - $ 227,877 | The Company’s notes receivable is as follows: SCHEDULE OF NOTE RECEIVABLE December 31, 2020 December 31, 2019 MIMO Technologies PVT Ltd $ 227,877 $ - |
LONG-TERM DEBT RELATED PARTIES
LONG-TERM DEBT RELATED PARTIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Long-term Debt Related Parties | ||
SCHEDULE OF LONG-TERM DEBT RELATED PARTIES | The following is a summary of the current portion - long-term debt - related parties as of June 30, 2021 and December 31, 2020: SCHEDULE OF LONG-TERM DEBT RELATED PARTIES June 30, 2021 December 31, 2020 Unsecured advances - CEO (a) $ 2,006,691 $ 1,718,277 Notes payable - Satinder Thiara (b) 32,000 57,000 Promissory note – Kunaal Sikka (c) 15,000 15,000 Notes payable – Swarn Singh (d) 45,000 45,000 Note payable - Chaudhary (e) 8,427 8,122 Note payable - Director (g) 400,000 - Advances – former CEO of Rohuma 15,141 - Advances – former CEO of Mimo Technologies (f) 122,580 - 2,644,839 1,843,399 Current portion of long-term debt related parties (2,629,839 ) (1,843,399 ) Long-term debt – related parties $ 15,000 $ - (a) This is an unsecured advance from the CEO originally entered into January 1, 2015. The note bears interest at 15 1.25 (b) Notes payable to Satinder Thiara entered into May 25, 2016 ($ 22,000 December 31, 2021 10,000 December 31, 2021 25,000 December 31, 2019 15 1.25 21 1.75 12,392 43,990 (c) Unsecured promissory note from Kunaal Sikka, the CEO’s son, dated September 13, 2018, in the amount of $ 15,000 12 December 31, 2019 18 1.50 (d) Note payable to Swarn Singh, father-in-law of the CEO, entered into January 3, 2017 ($ 25,000 20,000 15 1.25 21 1.75 (e) Note payable to Sushil Chaudhary dated April 27, 2020 in the amount of 1,100,000 14,500 13 8,179 (f) Note payable to Lathika Regunathan dated June 18, 2021 in the amount of 7,650,000 100,000 (g) Note payable to a director dated June 15, 2021 that matures December 12, 2021 in the amount of $ 400,000 The note does not bear interest however the director received two tranches of 150,000 shares each for lending this amount. If the note is repaid by the maturity date, one of the two tranches of 150,000 shares will be returned. | The following is a summary of the current portion - long-term debt - related parties as of December 31, 2020 and December 31, 2019: SCHEDULE OF LONG-TERM DEBT RELATED PARTIES December 31, 2020 December 31, 2019 Unsecured advances - CEO (a) $ 1,718,277 $ 1,221,737 Notes payable - Satinder Thiara (b) 57,000 57,000 Promissory note – Kunaal Sikka (c) 15,000 15,000 Notes payable – Swarn Singh (d) 45,000 45,000 Note payable - Chaudhary (e) 8,122 - 1,843,399 1,338,737 Current portion of long-term debt related parties (1,843,399 ) (1,306,737 ) Long-term debt – related parties $ - $ 32,000 (a) This is an unsecured advance from the CEO originally entered into January 1, 2015. The note bears interest at 15% 1.25% (b) Notes payable to Satinder Thiara entered into May 25, 2016 ($ 22,000 December 31, 2021 10,000 25,000 December 31, 2019 15% 1.25% 21% 1.75% (c) Unsecured promissory note from Kunaal Sikka, the CEO’s son, dated September 13, 2018, in the amount of $ 15,000 December 31, 2019 12% 18% 1.50% (d) Note payable to Swarn Singh, father-in-law of the CEO, entered into January 3, 2017 ($ 25,000 20,000 15% 1.25% December 31, 2019 21% 1.75% (e) Note payable to Sushil Chaudhary dated April 27, 2020 in the amount of 1,100,000 14,500 13% 8,179 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
SCHEDULE OF LONG-TERM DEBT | The following is a summary of the long-term debt as of June 30, 2021 and December 31, 2020: SCHEDULE OF LONG-TERM DEBT June 30, 2021 December 31, 2020 Other debt – in default (a) $ 6,000 $ 6,000 Yukti Securities Private Limited (b) - 4,547 Noor Qazi (c) - - Auto loan – ICICI Bank (d) 14,769 18,539 Baxter Credit Union (e) 99,975 99,911 UGECL (f) 53,960 54,563 USA Bank PPP (g) - 10,057 Loan Builder (h) 47,367 - Satin 141,097 - SBA - Rohuma 10,000 - Total $ 373,168 $ 193,617 Current portion (317,876 ) (133,761 ) Long-term debt, net of current portion $ 55,292 $ 59,856 (a) Note payable to an individual for $ 7,500 1,500 (b) Loan payable to Yukti Securities Private Limited is an unsecured loan which is due on demand. (c) Unsecured loan from Noor Qazi, individual, is due on demand. Was repaid in December 2020. (d) Loan payable with ICICI Bank, secured by the vehicle the loan was taken for. Payments are monthly at $ 752 7,374 7,395 (e) Revolving loan in the amount of $ 100,000 4 December 30, 2020 99,911 4 (f) COVID line of credit from UGECL up to 4,000,000 interest only at 7.5 6,063 47,897 (g) PPP loan from USA Bank, with interest accruing at 1 34,697 24,640 10,057 (h) $ 50,000 1,057.94 10 | The following is a summary of the long-term debt as of December 31, 2020 and December 31, 2019: SCHEDULE OF LONG-TERM DEBT December 31, 2020 December 31, 2019 Promissory notes - Kabbage (a) $ - $ 23,826 Promissory notes – Loan Builder (b) - - Other debt – in default (c) 6,000 6,000 Yukti Securities Private Limited (d) 4,547 4,660 Lathika Regunathan (e) - - Noor Qazi (f) - 50,562 Auto loan – ICICI Bank (g) 18,539 25,662 Baxter Credit Union (h) 99,911 100,000 UGECL (i) 54,563 - USA Bank PPP (j) 10,057 - Total $ 193,617 $ 210,710 Current portion (133,761 ) (191,508 ) Long-term debt, net of current portion $ 59,856 $ 19,202 (a) Multiple monthly loan agreements with Kabbage. Each of these loans has a six-month duration with interest and fees spread over the 6 months. (b) Business loan agreement with LoanBuilder in August 2018 in the amount of $ 18,000 409 (c) Note payable to an individual for $ 7,500 1,500 (d) Loan payable to Yukti Securities Private Limited is an unsecured loan which is due on demand. (e) Unsecured loan from Lathika Regunathan, individual, is due on demand. Was repaid in 2019. (f) Unsecured loan from Noor Qazi, individual, is due on demand. Was repaid in December 2020. (g) Loan payable with ICICI Bank, secured by the vehicle the loan was taken for. Payments are monthly at $ 752 7,183 7,837 3,519 (h) Revolving loan in the amount of $ 100,000 4% December 30, 2020 99,911 4% (i) COVID line of credit from UGECL up to 4,000,000 interest only at 7.5% 6,063 48,500 (j) PPP loan from USA Bank, with interest accruing at 1% 34,697 24,640 10,057 |
CURRENT PORTION - CONVERTIBLE_2
CURRENT PORTION - CONVERTIBLE DEBT – RELATED AND UNRELATED PARTIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Current Portion - Convertible Debt Related And Unrelated Parties | ||
SUMMARY OF CARRYING VALUE OF CONVERTIBLE DEBT | The following is a summary of current portion - convertible debt - related and unrelated parties as of June 30, 2021 and December 31, 2020: SUMMARY OF CARRYING VALUE OF CONVERTIBLE DEBT June 30, December 31, Face value of notes – related party (a) $ - $ 95,000 Face value of notes – unrelated parties (a) 68,077 98,077 Excess of the fair value of shares issuable over the face value of the convertible notes (a) 17,007 48,257 $ 85,084 $ 241,334 (a) In connection with the reverse merger in July 2017, the Company and two stockholders, who had provided related party advances to the Company, agreed to exchange their related party advances for 6 January 15, 2018 68,077 100,000 70,000 the holders of the Notes agreed to extend the maturity to April 30, 2018, and in April 2018, agreed to further extend the maturity of certain notes to June or July 2018. During the year ended December 31, 2018, the maturity of the notes were further extended to March 31, 2019 and then again to periods ranging from June 30, 2019 to December 31, 2019. 6 10 80 5 December 31, 2019 156,250 31,046 187,296 During the year ended December 31, 2018, the Company received additional proceeds from a related party of $ 25,000 initially maturing on December 31, 2018, which has been extended to March 31, 2019 and then again to December 31, 2019. | The following is a summary of current portion - convertible debt - related and unrelated parties as of December 31, 2020 and December 31, 2019: SUMMARY OF CARRYING VALUE OF CONVERTIBLE DEBT December 31, 2020 December 31, 2019 Face value of notes – related party (a) $ 95,000 $ 95,000 Face value of notes – unrelated parties (a) 98,077 98,077 Excess of the fair value of shares issuable over the face value of the convertible notes (a) 48,257 48,257 $ 241,334 $ 241,334 (a) In connection with the reverse merger in July 2017, the Company and two stockholders, who had provided related party advances to the Company, agreed to exchange their related party advances for 6% January 15, 2018 68,077 100,000 70,000 the holders of the Notes agreed to extend the maturity to April 30, 2018, and in April 2018, agreed to further extend the maturity of certain notes to June or July 2018. During the year ended December 31, 2018, the maturity of the notes were further extended to March 31, 2019 and then again to periods ranging from June 30, 2019 to December 31, 2019 6% 10% 80% 5 During the year ended December 31, 2018, the Company received additional proceeds from a related party of $ 25,000 initially maturing on December 31, 2018, which has been extended to March 31, 2019 and then again to December 31, 2019. |
STOCKHOLDERS_ EQUITY (DEFICIT)
STOCKHOLDERS’ EQUITY (DEFICIT) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
SUMMARY OF STOCK OPTION | The following represents a summary of options: SUMMARY OF STOCK OPTION Six Months Ended June 30, 2021 Year Ended December 31, 2020 Number Weighted Number Weighted Beginning balance 3,930,000 $ 0.0052 - $ - Granted - - 3,930,000 0.0052 Exercised - - - - Forfeited - - - - Expired - - - - Ending balance 3,930,000 $ 0.0052 3,930,000 $ 0.0052 Intrinsic value of options $ 5,874,475 $ 6,267,475 Weighted Average Remaining Contractual Life (Years) 9.31 9.81 | The following represents a summary of options as of December 31, 2020 and 2019: SUMMARY OF STOCK OPTIONS December 31, 2020 December 31, 2019 Number Weighted Number Weighted Beginning balance - $ - - $ - Granted 3,930,000 0.0052 - - Exercised - - - - Forfeited - - - - Expired - - - - Ending balance 3,930,000 $ 0.0052 - $ - Intrinsic value of options $ 6,267,475 $ - Weighted Average Remaining Contractual Life (Years) 9.81 |
SCHEDULE OF COMMON STOCK WARRANTS | The following schedule summarizes the changes in the Company’s common stock warrants: SCHEDULE OF COMMON STOCK WARRANTS Weighted Weighted Warrants Outstanding Average Average Number Exercise Remaining Aggregate Exercise Of Price Contractual Intrinsic Price Shares Per Share Life Value Per Share Balance at December 31, 2019 1,329,272 $ 0.001 4.87 $ - $ 0.001 Warrants granted - $ - - $ Warrants exercised - $ - - $ Warrants expired/cancelled - $ - - $ Balance at December 31, 2020 1,329,272 $ 0.001 3.87 $ 2,125,506 $ 0.001 Warrants granted 1,980,039 $ 0.001 2.00 - $ Warrants exercised/exchanged - $ - - $ Warrants expired/cancelled (419,127 ) $ - - $ Balance at June 30, 2021 2,880,184 $ 0.001 2.00 2.72 $ 3,414,248 $ 0.42 Exercisable at June 30, 2021 2,333,168 $ 0.001 2.00 2.73 $ 2,594,272 $ 0.52 | |
SCHEDULE OF EACH OPTION WARRANT ESTIMATED USING THE BLACK-SCHOLES VALUATION MODEL | Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each option/warrant is estimated using the Black-Scholes valuation model. The following assumptions were used for the three months ended March 31, 2021 and year ended December 31, 2020: SCHEDULE OF EACH OPTION WARRANT ESTIMATED USING THE BLACK-SCHOLES VALUATION MODEL Six Months Ended June 30, 2021 Year Ended December 31, 2020 Expected term 3 - Expected volatility 100 214 % - Expected dividend yield - - Risk-free interest rate 0.15 0.58 % - |
OPERATING LEASE (Tables)
OPERATING LEASE (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Operating Lease | ||
SCHEDULE OF REMAINING LEASE OBLIGATION | SCHEDULE OF REMAINING LEASE OBLIGATION Remaining Lease Obligation by calendar year (undiscounted cash flows) 2022 $ 13,209 2023 28,593 2024 28,593 2025 29,487 2026 32,882 2027 58,914 Total lease payments 191,678 Less: Imputed interest 63,759 Present value of lease liabilities $ 127,919 | SCHEDULE OF REMAINING LEASE OBLIGATION Remaining Lease Obligation by calendar year (undiscounted cash flows) 2022 2021 $ 26,087 2022 29,091 2023 29,091 2024 30,000 2025 33,455 2026 and thereafter 59,940 Total lease payments 207,663 Less: Imputed interest 73,665 Present value of lease liabilities $ 133,998 |
PROVISION FOR INCOME TAXES (Tab
PROVISION FOR INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION | The following table summarizes the significant differences between the U.S. Federal statutory tax rate and the Company’s effective tax rate for financial statement purposes for the years ended December 31, 2020 and 2019: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION 2020 2019 Federal income taxes at statutory rate 21.00 % 21.00 % State income taxes at statutory rate 7.50 % 7.50 % Temporary differences 0.38 % (0.82 )% Permanent differences (0.98 )% (7.41 )% Change in valuation allowance (27.90 )% (20.27 )% Totals 0.00 % 0.00 % |
SCHEDULE OF DEFERRED TAX ASSETS | SCHEDULE OF DEFERRED TAX ASSETS As of As of December 31, December 31, Deferred tax assets: Net operating losses before non-deductible items $ 747,748 $ 579,118 Stock-based compensation 28,174 - Depreciation (1,616 ) (1,616 ) Total deferred tax assets 774,306 577,502 Less: Valuation allowance (774,306 ) (577,502 ) Net deferred tax assets $ - $ - |
India Based Entity [Member] | |
Restructuring Cost and Reserve [Line Items] | |
SCHEDULE OF DEFERRED TAX ASSETS | Significant components of deferred tax liabilities as at December 31, 2020 and 2019 (was acquired May 2019): SCHEDULE OF DEFERRED TAX ASSETS As of As of December 31, 2020 December 31, 2019 Deferred Tax Assets: Difference between book and tax base of fixed assets $ 43,868 $ 56,696 Provision for gratuity 27,189 22,253 Provision for leave encashment 11,030 8,598 Operating lease 5,170 2,339 NOL carryforward (based on last tax return filed per Indian Income Tax laws) 43,140 11,404 Timing difference on TDS under 40a(ia) 9,002 - MAT credit 8,644 8,860 Deferred Tax Assets 148,043 110,150 Net Deferred Tax Assets 148,043 110,150 Less: Valuation allowance (148,043 ) (110,150 ) Net Deferred Tax Asset $ - $ - |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
SCHEDULE OF EMPLOYEE GRATUITY PLANS | The benefit obligation has been measured as of December 31, 2020. The gratuity plan is unfunded. The following table sets forth the activity of the Gratuity Plans and the amounts recognized in the Company’s financial statements for the year ended December 31, 2020: SCHEDULE OF EMPLOYEE GRATUITY PLANS Year Ended December 31, 2020 Change in projected benefit obligation: Projected benefit obligation as of January 1, 2020 $ 85,594 Service cost 10,746 Interest cost 5,595 Benefits paid (19,033 ) Actuarial gain (loss) on the Obligation 23,761 Effect of exchange rate changes (2,090 ) $ 104,573 Projected benefit obligation as of December 31, 2020 Unfunded amount – non-current $ 94,023 Unfunded amount - current 10,550 Total accrued liability $ 104,573 Components of net period benefit costs: Service cost $ 10,746 Interest cost 5,595 Actuarial gain (loss) on the Obligation 23,761 $ 40,102 The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: Discount rate 5.55% Rate of increase in compensation levels 10.00 % The benefit obligation has been measured as of December 31, 2019. The gratuity plan is unfunded. The following table sets forth the activity of the Gratuity Plans and the amounts recognized in the Company’s financial statements for the period May 16, 2019 through December 31, 2019: Period May 16, 2019 December 31, 2019 Change in projected benefit obligation: Projected benefit obligation as of May 16, 2019 $ 65,550 Service cost 6,982 Interest cost 3,106 Benefits paid (1,932 ) Actuarial gain (loss) on the Obligation 13,086 Effect of exchange rate changes (1,198 ) $ 85,594 Projected benefit obligation as of December 31, 2019 Unfunded amount – non-current $ 74,781 Unfunded amount - current 10,813 Total accrued liability $ 85,594 Components of net period benefit costs: Service cost $ 6,982 Interest cost 3,106 Actuarial gain (loss) on the Obligation 11,888 $ 21,976 The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: Discount rate 6.70% Rate of increase in compensation levels 10.00 % Leave Encashment The other long-term employee benefits has been measured as of December 31, 2020. The following table sets forth the activity of the leave encashment and the amounts recognized in TRAQ Pvt Ltd.’s financial statements at December 31, 2020: Year Ended December 31, 2020 Change in projected benefit obligation: Projected benefit obligation as of January 1, 2020 $ 33,070 Service cost 10,746 Interest cost 5,595 Benefits paid (2,212 ) Actuarial gain (loss) on the Obligation (3,969 ) Effect of exchange rate changes (806 ) $ 42,424 Projected benefit obligation as of December 31, 2020 Unfunded amount – non-current $ 37,306 Unfunded amount - current 5,118 Total accrued liability $ 42,424 Components of net period benefit costs: Service cost $ 10,746 Interest cost 5,595 Actuarial gain (loss) on the Obligation (3,969 ) $ 12,372 The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: Discount rate 5.55% Rate of increase in compensation levels 10.00 % The other long-term employee benefits has been measured as of December 31, 2019. The following table sets forth the activity of the leave encashment and the amounts recognized in TRAQ Pvt Ltd.’s financial statements at the end of the period May 16, 2019 through December 31, 2019: Period May 16, 2019 December 31, 2019 Change in projected benefit obligation: Projected benefit obligation as of May 16, 2019 $ 24,243 Service cost 3,646 Interest cost 940 Benefits paid (919 ) Actuarial gain (loss) on the Obligation 5,617 Effect of exchange rate changes (457 ) $ 33,070 Projected benefit obligation as of December 31, 2019 Unfunded amount – non-current $ 27,682 Unfunded amount - current 5,388 Total accrued liability $ 33,070 Components of net period benefit costs: Service cost $ 3,646 Interest cost 940 Actuarial gain (loss) on the Obligation 5,160 $ 9,746 The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are: Discount rate 6.70% Rate of increase in compensation levels 10.00 % |
GOODWILL (Tables)
GOODWILL (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF GOODWILL | The Company’s goodwill consists of the following: SCHEDULE OF GOODWILL June 30, 2021 December 31, 2020 Rohuma $ 3,519,869 $ - Mimo Technologies 2,987,811 - Net $ 6,507,680 $ - |
CONVERTIBLE NOTES PAYABLE (Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Convertible Notes Payable | |
SCHEDULE OF CONVERTIBLE NOTES OUTSTANDING | As of June 30, 2021 and December 31, 2020, the Company had the following convertible notes outstanding: SCHEDULE OF CONVERTIBLE NOTES OUTSTANDING June 30, 2021 December 31, 2020 GS Capital (a) $ 105,000 $ Platinum Point Capital (b) 400,000 - Total Convertible Notes Payable $ 505,000 $ - Less: Discounts (176,902 ) - $ 328,098 $ - (a) On January 19, 2021, the Company entered into a 12 125,000 one-year 20,000 66 20 10,000 5,000 26,000 170,000 (b) On February 12, 2021, the Company entered into a 10 one-year 0.01 70 15 200,000 three 2.00 60,000 |
DERIVATIVE LIABILITIES (Tables)
DERIVATIVE LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
SCHEDULE OF VALUATION ASSUMPTIONS | SCHEDULE OF VALUATION ASSUMPTIONS Six Months Ended Year Ended Expected term 1 - Expected volatility 164 214 % - Expected dividend yield - - Risk-free interest rate 0.15 % - |
SCHEDULE OF DERIVATIVE LIABILITIES | The Company’s derivative liabilities are as follows: SCHEDULE OF DERIVATIVE LIABILITIES June 30, December 31, Fair value of the GS Capital conversion option $ 280,000 $ - Fair value of the Platinum Point conversion option 1,024,000 - Fair value of the Platinum Point warrants ( 200,000 206,000 $ 1,510,000 $ - |
SCHEDULE OF ACTIVITY RELATED TO DERIVATIVE LIABILITIES | Activity related to the derivative liabilities for the period ended June 30, 2021 is as follows: SCHEDULE OF ACTIVITY RELATED TO DERIVATIVE LIABILITIES Beginning balance as of December 31, 2020 $ - Issuances of warrants/conversion option – derivative liabilities 313,868 Warrants exchanged for common stock - Change in fair value of warrants/conversion option - derivative liabilities 1,196,132 Ending balance as of June 30, 2021 $ 1,510,000 |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details Narrative) - USD ($) | Mar. 02, 2021 | Feb. 17, 2021 | Jan. 22, 2021 | May 16, 2019 | Dec. 01, 2017 | Jul. 19, 2017 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | May 31, 2019 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Target revenue | $ 937,002 | $ 230,258 | $ 1,319,388 | $ 521,319 | $ 1,009,949 | $ 680,732 | ||||||||
TRAQIQ Solutions Private Limited [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Equity interest owned by member | 100.00% | |||||||||||||
Warrants term | 5 years | |||||||||||||
Number of warrants issued | 1,329,272 | |||||||||||||
MIMO Technologies PVT Ltd [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Note receivable written off | $ 258,736 | |||||||||||||
Accounts receivable written off | 123,778 | |||||||||||||
Debenture written off | 40,354 | |||||||||||||
Cash payment to minority shareholders | $ 22,338 | |||||||||||||
Share Exchange Agreement [Member] | Rohuma, LLC [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Ownership interest percentage | 99.00% | |||||||||||||
Equity interest owned by member | 1.00% | |||||||||||||
Share Exchange Agreement [Member] | MIMO Technologies PVT Ltd [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Ownership interest percentage | 99.00% | |||||||||||||
Warrants term | 3 years | |||||||||||||
Number of warrants issued | 1,367,539 | |||||||||||||
Number of warrants earned | 820,524 | |||||||||||||
Remaining warrants expected to be earned | 547,015 | |||||||||||||
Warrants exercise price | $ 0.001 | |||||||||||||
Amount of warrants outstanding | $ 1,640,447 | |||||||||||||
Equity interest owned by member | 1.00% | |||||||||||||
Share Exchange Agreement [Member] | MIMO Technologies PVT Ltd [Member] | Contingent Consideration [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Amount of warrants outstanding | $ 656,179 | |||||||||||||
Share Exchange Agreement [Member] | TRAQIQ Solutions Private Limited [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Equity interest owned by member | 100.00% | |||||||||||||
Warrants term | 5 years | |||||||||||||
Number of warrants issued | 1,329,272 | |||||||||||||
Warrants to purchase common stock, value | $ 268 | |||||||||||||
Target revenue | $ 1,100,000 | |||||||||||||
Pre-tax profit percentage | 25.00% | |||||||||||||
Share Exchange Agreement [Member] | TRAQIQ Solutions Private Limited [Member] | Immediately Upon Closing [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Number of warrants issued | 100,771 | |||||||||||||
Share Exchange Agreement [Member] | TRAQIQ Solutions Private Limited [Member] | One Year After The Date Of Closing [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Number of warrants issued | 859,951 | 859,951 | ||||||||||||
Share Exchange Agreement [Member] | TRAQIQ Solutions Private Limited [Member] | Two Years After The Date Of Closing [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Number of warrants issued | 368,550 | |||||||||||||
Share Exchange Agreement [Member] | Rohuma, LLC [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Equity interest owned by member | 1.00% | |||||||||||||
Number ofcommon stock issued | 4,292,220 | |||||||||||||
Share Exchange Agreement [Member] | Rohuma, LLC [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Number ofcommon stock issued | 2,562,277 | |||||||||||||
Transaction value | $ 3,433,776 | |||||||||||||
Shares issued, price per share | $ 0.80 | |||||||||||||
Share Exchange Agreement [Member] | MIMO Technologies PVT Ltd [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Equity interest owned by member | 1.00% | |||||||||||||
Share Exchange Agreement [Member] | MIMO Technologies PVT Ltd [Member] | Contingent Consideration [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Amount of warrants outstanding | $ 656,179 | |||||||||||||
Share Exchange Agreement [Member] | Additional Paid-in Capital [Member] | MIMO Technologies PVT Ltd [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Amount of warrants outstanding | 984,268 | |||||||||||||
Share Exchange Agreement [Member] | Additional Paid-in Capital [Member] | MIMO Technologies PVT Ltd [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Amount of warrants outstanding | $ 984,268 | |||||||||||||
Share Exchange Agreement [Member] | OmniM2M and Ci2i [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Ownership interest percentage | 100.00% | |||||||||||||
Exchange shares of common stock | 12,000,000 | |||||||||||||
Share Exchange Agreement [Member] | OmniM2M and Ci2i [Member] | Pro Rata Basis [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Number shares issued during period | 12,000,000 | |||||||||||||
Share Exchange Agreement [Member] | TransportIQ, Inc [Member] | Ajay Sikka [Member] | ||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||
Exchange of cancellation debt | $ 18,109 |
SUMMARY OF DISAGGREGATION OF RE
SUMMARY OF DISAGGREGATION OF REVENUE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Product Information [Line Items] | ||||||
Revenue | $ 937,002 | $ 230,258 | $ 1,319,388 | $ 521,319 | $ 1,009,949 | $ 680,732 |
Professional Services Revenue [Member] | ||||||
Product Information [Line Items] | ||||||
Revenue | 593,898 | 463,385 | 935,214 | 654,374 | ||
Software Solution Revenue [Member] | ||||||
Product Information [Line Items] | ||||||
Revenue | 180,697 | 57,934 | $ 74,735 | $ 26,358 | ||
Sale of Goods [Member] | ||||||
Product Information [Line Items] | ||||||
Revenue | $ 544,793 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Cash | $ 137,530 | $ 29,658 | $ 9,094 | |
Restricted cash | 165,488 | 28,746 | 182,627 | |
Allowance for accounts receivable | $ 160,403 | $ 0 | 0 | |
Property, Plant and Equipment, Estimated Useful Lives | three to ten years. | three to ten years. | ||
Intangible assets estimated useful lives | 15 years | 15 years | ||
Impairment of long-lived assets | $ 0 | 0 | ||
Payments to acquire software | $ 146,065 | |||
Accumulated deficit | 6,008,129 | 2,504,893 | 1,896,984 | |
Working capital deficit | $ 8,120,378 | $ 2,851,721 | $ 2,697,036 | |
TRAQIQ Solutions Private Limited [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percentage of voting interest acquired | 100.00% | |||
Warrants term | 5 years | |||
Warrants to purchase common stock | 1,329,272 |
SCHEDULE OF BUSINESS ACQUISITIO
SCHEDULE OF BUSINESS ACQUISITION (Details) - USD ($) | Feb. 17, 2021 | Jan. 22, 2021 | May 16, 2019 |
Business Acquisition [Line Items] | |||
Cash | $ 185,633 | ||
Accounts receivables, net | 506,951 | ||
Prepaid expenses and other current assets | 216,956 | ||
Right-of-use asset | 576,566 | ||
Fixed and intangible assets | 68,260 | ||
Customer relationships | 448,800 | ||
Tradenames | 49,799 | ||
Investment | 42,248 | ||
Other assets | 37,950 | ||
Accounts payable and accrued expenses | (173,197) | ||
Accrued payroll and related taxes | (325,629) | ||
Accrued duties and taxes | (66,765) | ||
Lease liability | (585,207) | ||
Deferred revenue | (3,618) | ||
Cash overdraft | (471,017) | ||
Debt – related parties | (61,273) | ||
Debt | (29,041) | ||
Net assets and liabilities acquired | $ 417,416 | ||
Rohuma, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 6,027 | ||
Accounts receivables, net | 4,179 | ||
Prepaid expenses and other current assets | 8,943 | ||
Fixed and intangible assets | 4,512 | ||
Investment | 1,440 | ||
Accounts payable and accrued expenses | (58,153) | ||
Accrued payroll and related taxes | |||
Accrued duties and taxes | (2,688) | ||
Cash overdraft | (2,980) | ||
Debt – related parties | (37,776) | ||
Debt | (10,000) | ||
Net assets and liabilities acquired | (86,496) | ||
Comprehensive income | |||
MIMO Technologies PVT Ltd [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 43,851 | ||
Accounts receivables, net | 58,692 | ||
Prepaid expenses and other current assets | 272,872 | ||
Fixed and intangible assets | 153,186 | ||
Accounts payable and accrued expenses | (708,833) | ||
Accrued payroll and related taxes | (104,750) | ||
Accrued duties and taxes | (28,213) | ||
Debt – related parties | (343,118) | ||
Debt | (236,712) | ||
Net assets and liabilities acquired | (935,760) | ||
Comprehensive income | $ (42,735) |
SCHEDULE OF BUSINESS ACQUISIT_2
SCHEDULE OF BUSINESS ACQUISITION (Details) (Parenthetical) | May 16, 2019USD ($) |
TRAQIQ Solutions Private Limited [Member] | |
Business Acquisition [Line Items] | |
Restricted cash | $ 185,399 |
SCHEDULE OF PROFORMA FOR BUSINE
SCHEDULE OF PROFORMA FOR BUSINESS ACQUISITION (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Business Combination and Asset Acquisition [Abstract] | |||
Revenues | $ 1,355,350 | $ 732,415 | $ 1,143,606 |
Net income (loss) | $ (3,555,172) | $ (488,535) | $ (166,533) |
Net income (loss) per share | $ (0.12) | $ (0.02) | $ (0.01) |
ACQUISITIONS (Details Narrative
ACQUISITIONS (Details Narrative) - USD ($) | Mar. 02, 2021 | Jan. 22, 2021 | May 16, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Feb. 17, 2021 | May 31, 2019 |
Business Acquisition [Line Items] | ||||||||||||
Target revenue | $ 937,002 | $ 230,258 | $ 1,319,388 | $ 521,319 | $ 1,009,949 | $ 680,732 | ||||||
Gain (loss) on bargain purchase | $ 417,148 | |||||||||||
Net assets and liabilities acquired | $ 417,416 | |||||||||||
Goodwill | $ 6,507,680 | $ 6,507,680 | $ 2,085,653 | |||||||||
TRAQIQ Solutions Private Limited [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage of voting interest acquired | 100.00% | |||||||||||
Warrants term | 5 years | |||||||||||
Number of warrants issued | 1,329,272 | |||||||||||
Rohuma, LLC [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net assets and liabilities acquired | $ (86,496) | |||||||||||
Business acquisition contingent consideration | 1,383,954 | |||||||||||
Goodwill | $ 3,520,272 | |||||||||||
MIMO Technologies PVT Ltd [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net assets and liabilities acquired | (935,760) | |||||||||||
Goodwill | $ 3,021,413 | |||||||||||
Share Exchange Agreement [Member] | MIMO Technologies PVT Ltd [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Warrants term | 3 years | |||||||||||
Number of warrants issued | 1,367,539 | |||||||||||
Ownership interest percentage | 99.00% | |||||||||||
Share Exchange Agreement [Member] | Rohuma, LLC [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Ownership interest percentage | 99.00% | |||||||||||
Equity interest owned by member | 1.00% | |||||||||||
Share Exchange Agreement [Member] | MIMO Technologies PVT Ltd [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Warrants term | 3 years | |||||||||||
Number of warrants issued | 1,367,539 | |||||||||||
Net assets and liabilities acquired | $ 935,760 | |||||||||||
Ownership interest percentage | 99.00% | |||||||||||
Equity interest owned by member | 1.00% | |||||||||||
Share Exchange Agreement [Member] | TRAQIQ Solutions Private Limited [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage of voting interest acquired | 100.00% | |||||||||||
Warrants term | 5 years | |||||||||||
Number of warrants issued | 1,329,272 | |||||||||||
Warrants to purchase common stock, value | $ 268 | |||||||||||
Target revenue | $ 1,100,000 | |||||||||||
Pre-tax profit percentage | 25.00% | |||||||||||
Gain (loss) on bargain purchase | $ 417,148 | |||||||||||
Net assets and liabilities acquired | $ 417,416 | |||||||||||
Gain (loss) on bargain purchase | 419,127 | |||||||||||
Share Exchange Agreement [Member] | TRAQIQ Solutions Private Limited [Member] | Immediately Upon Closing [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of warrants issued | 100,771 | |||||||||||
Share Exchange Agreement [Member] | TRAQIQ Solutions Private Limited [Member] | One Year After The Date Of Closing [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of warrants issued | 859,951 | 859,951 | ||||||||||
Share Exchange Agreement [Member] | TRAQIQ Solutions Private Limited [Member] | Two Years After The Date Of Closing [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of warrants issued | 368,550 | |||||||||||
Share Exchange Agreement [Member] | Rohuma, LLC [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage of voting interest acquired | 1.00% | |||||||||||
Number ofcommon stock issued | 4,292,220 | |||||||||||
Share Exchange Agreement [Member] | Rohuma, LLC [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net assets and liabilities acquired | $ 86,496 | |||||||||||
Number ofcommon stock issued | 2,562,277 | |||||||||||
Transaction value | $ 3,433,776 | |||||||||||
Shares issued, price per share | $ 0.80 | |||||||||||
Share Exchange Agreement [Member] | MIMO Technologies PVT Ltd [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage of voting interest acquired | 1.00% |
SCHEDULE OF CASH AND RESTRICTED
SCHEDULE OF CASH AND RESTRICTED CASH (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Abstract] | |||
Cash on hand | $ 109 | $ 141 | $ 252 |
Bank balances | 137,421 | 29,517 | 8,842 |
Restricted cash | 165,488 | 28,746 | 182,627 |
Total | $ 303,018 | $ 58,404 | $ 191,721 |
CASH AND RESTRICTED CASH (Detai
CASH AND RESTRICTED CASH (Details Narrative) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Abstract] | |||
Cash equivalents | $ 0 | $ 0 | $ 0 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment - TRAQ Pvt Ltd. | $ 638,587 | $ 650,621 | |
Less: accumulated depreciation | $ (599,351) | (602,214) | (601,940) |
Property and equipment net | 36,819 | 36,373 | $ 48,681 |
TRAQIQ Solutions Private Limited [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment - TRAQ Pvt Ltd. | 628,026 | 638,587 | |
Rohuma US [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment - TRAQ Pvt Ltd. | 1,100 | ||
Rohuma India [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment - TRAQ Pvt Ltd. | 4,117 | ||
MIMO Technologies PVT Ltd [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment - TRAQ Pvt Ltd. | $ 2,927 | ||
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Life | 3 years | ||
Minimum [Member] | TRAQIQ Solutions Private Limited [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Life | 3 years | ||
Minimum [Member] | Rohuma US [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Life | 3 years | ||
Minimum [Member] | Rohuma India [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Life | 3 years | ||
Minimum [Member] | MIMO Technologies PVT Ltd [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Life | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Life | 10 years | ||
Maximum [Member] | TRAQIQ Solutions Private Limited [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Life | 10 years | ||
Maximum [Member] | Rohuma US [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Life | 10 years | ||
Maximum [Member] | Rohuma India [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Life | 10 years | ||
Maximum [Member] | MIMO Technologies PVT Ltd [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Life | 10 years |
FIXED ASSETS (Details Narrative
FIXED ASSETS (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 11,615 | $ 8,186 | $ 14,747 | $ 22,065 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Intangible Assets | |||
Customer relationships | $ 448,800 | $ 448,800 | $ 448,800 |
Tradenames | 49,799 | 49,799 | 49,799 |
Software | 250,451 | ||
Less: accumulated amortization | (185,418) | (54,015) | (20,775) |
Net | $ 563,632 | $ 444,584 | $ 477,824 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets | ||||
Amortization expense | $ 25,404 | $ 16,620 | $ 33,240 | $ 20,775 |
SCHEDULE OF LONG-TERM INVESTMEN
SCHEDULE OF LONG-TERM INVESTMENT (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Net Investment Income [Line Items] | |||
Long term investment | $ 1,440 | $ 40,603 | $ 41,617 |
Equity Security - Compulsorily Convertible Debenture [Member] | |||
Net Investment Income [Line Items] | |||
Long term investment | $ 40,603 | $ 41,617 |
LONG-TERM INVESTMENT (Details N
LONG-TERM INVESTMENT (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Jan. 22, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Investment percentage | 1.00% | 1.00% | |
Debt Instrument, Term | 7 years | 7 years | |
Rohuma, LLC [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Investment acquired in acquisition | $ 1,440 |
SCHEDULE OF NOTE RECEIVABLE (De
SCHEDULE OF NOTE RECEIVABLE (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
MIMO Technologies PVT Ltd [Member] | |||
Total notes receivable | $ 227,877 |
NOTE RECEIVABLE (Details Narrat
NOTE RECEIVABLE (Details Narrative) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020INR (₨) | Apr. 02, 2020USD ($) | Apr. 02, 2020INR (₨) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Notes receivable related party | $ 227,877 | ₨ 16,647,264 | $ 170,000 | ₨ 15,037,263 | |
Notes receivable interest rate percentage | 13.00% | 13.00% | |||
MIMO Technologies PVT Ltd [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Notes receivable related party | $ | $ 258,736 | ||||
INR [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Notes receivable related party | ₨ | ₨ 16,647,264 | ₨ 15,037,263 |
SCHEDULE OF LONG-TERM DEBT RELA
SCHEDULE OF LONG-TERM DEBT RELATED PARTIES (Details) | Feb. 01, 2017USD ($) | Jan. 03, 2017USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2021USD ($) | Jun. 18, 2021USD ($) | Jun. 18, 2021INR (₨) | Dec. 31, 2020USD ($) | ||||
Short-term Debt [Line Items] | |||||||||||
Long term debt current - related parties | $ 1,338,737 | $ 2,644,839 | $ 1,843,399 | ||||||||
Current portion of long-term debt related parties | (1,306,737) | (2,629,839) | (1,843,399) | ||||||||
Long-term debt - related parties | $ 32,000 | 15,000 | |||||||||
Swarn Singh [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 15.00% | 15.00% | 21.00% | ||||||||
Loan bears monthly interest rate | 1.25% | 1.25% | 1.75% | ||||||||
Notes Payable | $ 20,000 | $ 25,000 | |||||||||
Lathika Regunathan [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Notes Payable | ₨ | ₨ 7,650,000 | ||||||||||
Debt instrument Interest due on demand | $ 100,000 | ||||||||||
Unsecured advances - CEO [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Long term debt current - related parties | $ 1,221,737 | [1] | 2,006,691 | [2] | 1,718,277 | [1],[2] | |||||
Note Payable - Satinder Thiara [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Long term debt current - related parties | 57,000 | [3] | 32,000 | [4] | 57,000 | [3],[4] | |||||
Promissory Note - Kunaal Sikka [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Long term debt current - related parties | 15,000 | [5] | 15,000 | [6] | 15,000 | [5],[6] | |||||
Notes Payable - Swarn Singh [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Long term debt current - related parties | 45,000 | [7] | 45,000 | [8] | 45,000 | [7],[8] | |||||
Notes Payable-Chaudhary [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Long term debt current - related parties | [9] | 8,427 | [10] | 8,122 | [9],[10] | ||||||
Note Payable Director [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Long term debt current - related parties | [11] | 400,000 | |||||||||
Advancesformer C E Oof Rohuma [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Long term debt current - related parties | 15,141 | ||||||||||
Advances - Former CEO of Mimo Technologies [Member] | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Long term debt current - related parties | [12] | $ 122,580 | |||||||||
[1] | This is an unsecured advance from the CEO originally entered into January 1, 2015. The note bears interest at 15% 1.25% | ||||||||||
[2] | This is an unsecured advance from the CEO originally entered into January 1, 2015. The note bears interest at 15 1.25 | ||||||||||
[3] | Notes payable to Satinder Thiara entered into May 25, 2016 ($ 22,000 December 31, 2021 10,000 25,000 December 31, 2019 15% 1.25% 21% 1.75% | ||||||||||
[4] | Notes payable to Satinder Thiara entered into May 25, 2016 ($ 22,000 December 31, 2021 10,000 December 31, 2021 25,000 December 31, 2019 15 1.25 21 1.75 12,392 43,990 | ||||||||||
[5] | Unsecured promissory note from Kunaal Sikka, the CEO’s son, dated September 13, 2018, in the amount of $ 15,000 December 31, 2019 12% 18% 1.50% | ||||||||||
[6] | Unsecured promissory note from Kunaal Sikka, the CEO’s son, dated September 13, 2018, in the amount of $ 15,000 12 December 31, 2019 18 1.50 | ||||||||||
[7] | Note payable to Swarn Singh, father-in-law of the CEO, entered into January 3, 2017 ($ 25,000 20,000 15% 1.25% December 31, 2019 21% 1.75% | ||||||||||
[8] | Note payable to Swarn Singh, father-in-law of the CEO, entered into January 3, 2017 ($ 25,000 20,000 15 1.25 21 1.75 | ||||||||||
[9] | Note payable to Sushil Chaudhary dated April 27, 2020 in the amount of 1,100,000 14,500 13% 8,179 | ||||||||||
[10] | Note payable to Sushil Chaudhary dated April 27, 2020 in the amount of 1,100,000 14,500 13 8,179 | ||||||||||
[11] | Note payable to a director dated June 15, 2021 that matures December 12, 2021 in the amount of $ 400,000 The note does not bear interest however the director received two tranches of 150,000 shares each for lending this amount. If the note is repaid by the maturity date, one of the two tranches of 150,000 shares will be returned. | ||||||||||
[12] | Note payable to Lathika Regunathan dated June 18, 2021 in the amount of 7,650,000 100,000 |
SCHEDULE OF LONG-TERM DEBT RE_2
SCHEDULE OF LONG-TERM DEBT RELATED PARTIES (Details) (Parenthetical) | Mar. 05, 2021shares | Sep. 13, 2018USD ($) | May 01, 2018USD ($) | Feb. 28, 2017 | Feb. 01, 2017USD ($) | Jan. 31, 2017 | Jan. 03, 2017USD ($) | Dec. 13, 2016USD ($) | May 25, 2016USD ($) | Jan. 01, 2015 | Mar. 31, 2021shares | Jun. 15, 2021 | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Aug. 27, 2020USD ($) | Aug. 27, 2020INR (₨) | Jun. 15, 2020USD ($) |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Accrued Interest | $ 12,392 | ||||||||||||||||
Conversion of common stock | shares | 43,990 | 181,250 | |||||||||||||||
Kunaal Sikka [Member] | |||||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Debt instrument, interest rate, stated percentage | 12.00% | 18.00% | |||||||||||||||
Loan bears monthly interest rate | 1.50% | ||||||||||||||||
Debt instrument maturity date | Dec. 31, 2019 | ||||||||||||||||
Advance from related party debt | $ 15,000 | ||||||||||||||||
Swarn Singh [Member] | |||||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Debt instrument, interest rate, stated percentage | 15.00% | 15.00% | 21.00% | ||||||||||||||
Loan bears monthly interest rate | 1.25% | 1.25% | 1.75% | ||||||||||||||
Debt instrument maturity date | Dec. 31, 2019 | Dec. 31, 2019 | |||||||||||||||
Notes Payable | $ 20,000 | $ 25,000 | |||||||||||||||
Sushi lChaudhary [Member] | |||||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Debt instrument, interest rate, stated percentage | 13.00% | 13.00% | |||||||||||||||
Note payable to related parties | $ 8,179 | $ 14,500 | ₨ 1,100,000 | ||||||||||||||
Sushi lChaudhary [Member] | INR [Member] | |||||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Note payable to related parties | ₨ | ₨ 1,100,000 | ||||||||||||||||
Director [Member] | |||||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Note payable to related parties | $ 400,000 | ||||||||||||||||
Settlement description | The note does not bear interest however the director received two tranches of 150,000 shares each for lending this amount. If the note is repaid by the maturity date, one of the two tranches of 150,000 shares will be returned. | ||||||||||||||||
Notes Payable to Satinder Thiara [Member] | |||||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Debt instrument, interest rate, stated percentage | 15.00% | 15.00% | 15.00% | 21.00% | |||||||||||||
Loan bears monthly interest rate | 1.25% | 1.25% | 1.25% | 1.75% | |||||||||||||
Note payable to related parties | $ 25,000 | $ 10,000 | $ 22,000 | ||||||||||||||
Debt instrument maturity date | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2021 | ||||||||||||||
Chief Executive Officer [Member] | |||||||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||||||||||||||
Debt instrument, interest rate, stated percentage | 15.00% | ||||||||||||||||
Loan bears monthly interest rate | 1.25% |
LONG-TERM DEBT RELATED PARTIE_2
LONG-TERM DEBT RELATED PARTIES (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Long-term Debt Related Parties | ||||
Long-term debt related parties interest expense | $ 158,537 | $ 107,869 | $ 228,748 | $ 170,688 |
SCHEDULE OF LONG-TERM DEBT (Det
SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | ||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | $ 373,168 | $ 193,617 | $ 210,710 | |||||
Current portion | (317,876) | (133,761) | (191,508) | |||||
Long-term debt, net of current portion | 55,292 | 59,856 | 19,202 | |||||
Lathika Regunathan [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | [1] | |||||||
Noor Qazi [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | [2] | [3] | 50,562 | [3] | ||||
Loan Builder [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | [4] | 47,367 | ||||||
Satin [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | ||||||||
SBA - Rohuma [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | 10,000 | |||||||
Promissory Notes Kabbage [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | [5] | 23,826 | ||||||
Promissory Notes Loan Builder [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | [6] | |||||||
Other Debt [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | 6,000 | [7] | 6,000 | [7],[8] | 6,000 | [8] | ||
Yukti Securities Private Limited [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | [9] | 4,547 | [10] | 4,660 | [10] | |||
Auto Loan ICICI Bank [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | 14,769 | [11] | 18,539 | [11],[12] | 25,662 | [12] | ||
Baxter Credit Union [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | 99,975 | [13] | 99,911 | [13],[14] | 100,000 | [14] | ||
UGECL [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | 53,960 | [15] | 54,563 | [15],[16] | [16] | |||
USA Bank PPP [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | [17] | $ 10,057 | [17],[18] | [18] | ||||
Loan Builder [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | [4] | |||||||
Satin [Member] | ||||||||
Short-term Debt [Line Items] | ||||||||
Long term debt, total | $ 141,097 | |||||||
[1] | Unsecured loan from Lathika Regunathan, individual, is due on demand. Was repaid in 2019. | |||||||
[2] | Unsecured loan from Noor Qazi, individual, is due on demand. Was repaid in December 2020. | |||||||
[3] | Unsecured loan from Noor Qazi, individual, is due on demand. Was repaid in December 2020. | |||||||
[4] | $ 50,000 1,057.94 10 | |||||||
[5] | Multiple monthly loan agreements with Kabbage. Each of these loans has a six-month duration with interest and fees spread over the 6 months. | |||||||
[6] | Business loan agreement with LoanBuilder in August 2018 in the amount of $ 18,000 409 | |||||||
[7] | Note payable to an individual for $ 7,500 1,500 | |||||||
[8] | Note payable to an individual for $ 7,500 1,500 | |||||||
[9] | Loan payable to Yukti Securities Private Limited is an unsecured loan which is due on demand. | |||||||
[10] | Loan payable to Yukti Securities Private Limited is an unsecured loan which is due on demand. | |||||||
[11] | Loan payable with ICICI Bank, secured by the vehicle the loan was taken for. Payments are monthly at $ 752 7,374 7,395 | |||||||
[12] | Loan payable with ICICI Bank, secured by the vehicle the loan was taken for. Payments are monthly at $ 752 7,183 7,837 3,519 | |||||||
[13] | Revolving loan in the amount of $ 100,000 4 December 30, 2020 99,911 4 | |||||||
[14] | Revolving loan in the amount of $ 100,000 4% December 30, 2020 99,911 4% | |||||||
[15] | COVID line of credit from UGECL up to 4,000,000 interest only at 7.5 6,063 47,897 | |||||||
[16] | COVID line of credit from UGECL up to 4,000,000 interest only at 7.5% 6,063 48,500 | |||||||
[17] | PPP loan from USA Bank, with interest accruing at 1 34,697 24,640 10,057 | |||||||
[18] | PPP loan from USA Bank, with interest accruing at 1% 34,697 24,640 10,057 |
SCHEDULE OF LONG-TERM DEBT (D_2
SCHEDULE OF LONG-TERM DEBT (Details) (Parenthetical) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2021USD ($) | Aug. 31, 2018USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2021INR (₨) | Dec. 31, 2020INR (₨) | May 31, 2018USD ($) | |
Short-term Debt [Line Items] | ||||||||||
Payment of notes payable | $ 20,000 | |||||||||
Interest expense debt | $ 2,539 | $ 5,546 | $ 6,932 | $ 12,110 | ||||||
Promissory Notes Loan Builder [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Debt periodic payment description | Business loan agreement with LoanBuilder in August 2018 in the amount of $18,000, payable in 52 weekly payments of $409, including interest. | |||||||||
Business loan agreement, amount payable | $ 18,000 | |||||||||
Periodic payment of debt | $ 409 | |||||||||
Other Debt [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Note payable to related parties | $ 7,500 | |||||||||
Payment of notes payable | $ 1,500 | |||||||||
Auto Loan ICICI Bank [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Debt periodic payment description | Payments are monthly at $752, through maturity in May 2023. | Payments are monthly at $752, through maturity in May 2023. | ||||||||
Periodic payment of debt | $ 752 | $ 752 | ||||||||
Long-term debt, maturity, year 2021-2022 | 7,374 | 7,183 | ||||||||
Long-term debt, maturity, year 2022-2023 | 7,395 | 7,837 | ||||||||
Long-term debt, maturity, year 2022-2024 | 3,519 | |||||||||
Revolving Loan [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Debt instrument, face value | $ 100,000 | $ 100,000 | ||||||||
Debt instrument, interest rate, stated percentage | 4.00% | 4.00% | 4.00% | 4.00% | ||||||
Debt, maturity date | Dec. 30, 2020 | Dec. 30, 2020 | ||||||||
Revolving Loan [Member] | Renegotiated Balance [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Debt instrument, face value | $ 99,911 | $ 99,911 | ||||||||
Debt instrument, interest rate, stated percentage | 4.00% | 4.00% | 4.00% | 4.00% | ||||||
COVID UGECL [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Long-term debt, maturity, year 2021-2022 | $ 6,063 | $ 6,063 | ||||||||
Long-term debt, maturity, year 2022-2024 | $ 47,897 | |||||||||
Debt instrument, interest rate, stated percentage | 7.50% | 7.50% | 7.50% | 7.50% | ||||||
Line of credit term | COVID line of credit from UGECL up to 4,000,000 INR in India, term of 48 months | COVID line of credit from UGECL up to 4,000,000 INR in India | ||||||||
Line of credit | ₨ | ₨ 4,000,000 | |||||||||
Line of credit interest | interest only at 7.5% annual rate for first 12 months, then 36 equal instalments through maturity. | interest only at 7.5% annual rate for first 12 months | ||||||||
Long-term debt, maturity, year 2022-2024 | $ 48,500 | |||||||||
COVID UGECL [Member] | INR [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Line of credit | ₨ | ₨ 4,000,000 | |||||||||
Paycheck Protection Program Loan [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Debt instrument, face value | $ 34,697 | $ 34,697 | ||||||||
Debt instrument, interest rate, stated percentage | 1.00% | 1.00% | 1.00% | 1.00% | ||||||
Debt, forgiven | $ 10,057 | $ 24,640 | $ 24,640 | |||||||
Paycheck Protection Program Loan [Member] | Subsequent Event [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Debt, forgiven | $ 10,057 | |||||||||
Unsecured Loan [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Debt instrument, face value | $ 50,000 | |||||||||
Debt instrument, interest rate, stated percentage | 10.00% | 10.00% | ||||||||
Debt instrument description | 50,000 unsecured loan due in 52 weekly payments | |||||||||
Interest expense debt | $ 1,057.94 |
LONG-TERM DEBT (Details Narrati
LONG-TERM DEBT (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||||
Long-term debt interest expense | $ 2,539 | $ 5,546 | $ 6,932 | $ 12,110 |
SUMMARY OF CARRYING VALUE OF CO
SUMMARY OF CARRYING VALUE OF CONVERTIBLE DEBT (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [2] | ||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Excess of the fair value of shares issuable over the face value of the convertible notes | $ 17,007 | [1] | $ 48,257 | [1] | $ 48,257 | |
Convertible debt current - Related and unrelated parties | 85,084 | 241,334 | 241,334 | |||
Related Party [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Debt instrument, face value | [1] | 95,000 | [1] | 95,000 | ||
Unrelated Parties [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Debt instrument, face value | $ 68,077 | [1] | $ 98,077 | [1] | $ 98,077 | |
[1] | In connection with the reverse merger in July 2017, the Company and two stockholders, who had provided related party advances to the Company, agreed to exchange their related party advances for 6 January 15, 2018 68,077 100,000 70,000 the holders of the Notes agreed to extend the maturity to April 30, 2018, and in April 2018, agreed to further extend the maturity of certain notes to June or July 2018. During the year ended December 31, 2018, the maturity of the notes were further extended to March 31, 2019 and then again to periods ranging from June 30, 2019 to December 31, 2019. 6 10 80 5 December 31, 2019 156,250 31,046 187,296 | |||||
[2] | In connection with the reverse merger in July 2017, the Company and two stockholders, who had provided related party advances to the Company, agreed to exchange their related party advances for 6% January 15, 2018 68,077 100,000 70,000 the holders of the Notes agreed to extend the maturity to April 30, 2018, and in April 2018, agreed to further extend the maturity of certain notes to June or July 2018. During the year ended December 31, 2018, the maturity of the notes were further extended to March 31, 2019 and then again to periods ranging from June 30, 2019 to December 31, 2019 6% 10% 80% 5 |
SUMMARY OF CARRYING VALUE OF _2
SUMMARY OF CARRYING VALUE OF CONVERTIBLE DEBT (Details) (Parenthetical) | Mar. 05, 2021USD ($)shares | Jan. 31, 2018 | Jul. 31, 2017USD ($) | Mar. 31, 2021shares | Nov. 30, 2017USD ($) | Dec. 31, 2020Integer | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Accrued Interest | $ 12,392 | |||||||
Conversion of common stock | shares | 43,990 | 181,250 | ||||||
Two Stockholders [Member] | Convertible Promissory Notes [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 6.00% | 6.00% | ||||||
Debt due date | Jan. 15, 2018 | Dec. 31, 2019 | ||||||
Debt instrument, face value | $ 68,077 | |||||||
Debt maturity description | the holders of the Notes agreed to extend the maturity to April 30, 2018, and in April 2018, agreed to further extend the maturity of certain notes to June or July 2018. During the year ended December 31, 2018, the maturity of the notes were further extended to March 31, 2019 and then again to periods ranging from June 30, 2019 to December 31, 2019. | |||||||
Debt interest rate increases during the period | 10.00% | |||||||
Debt into shares of common stock at conversion rate | 80.00% | |||||||
Debt trading days | Integer | 5 | |||||||
Two Stockholders [Member] | 10% Convertible Promissory Note [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Debt maturity description | the holders of the Notes agreed to extend the maturity to April 30, 2018, and in April 2018, agreed to further extend the maturity of certain notes to June or July 2018. During the year ended December 31, 2018, the maturity of the notes were further extended to March 31, 2019 and then again to periods ranging from June 30, 2019 to December 31, 2019. | |||||||
Four Related Parties [Member] | Convertible Promissory Notes [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Proceeds from convertible debt - related parties | $ 100,000 | |||||||
Related Parties [Member] | Convertible Promissory Notes [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Proceeds from convertible debt - related parties | $ 70,000 | |||||||
Related Parties [Member] | Convertible Notes [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Issuance of conversion in excess of fair value | $ 156,250 | |||||||
Accrued Interest | $ 31,046 | |||||||
Conversion of common stock | shares | 187,296 | |||||||
Satinder Thiara And Dharam V Sikka [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Proceeds from convertible debt - related parties | $ 25,000 | |||||||
Debt maturity description | initially maturing on December 31, 2018, which has been extended to March 31, 2019 and then again to December 31, 2019. | |||||||
Satinder Thiara And Dharam Sikka [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Debt maturity description | initially maturing on December 31, 2018, which has been extended to March 31, 2019 and then again to December 31, 2019. |
CURRENT PORTION - CONVERTIBLE_3
CURRENT PORTION - CONVERTIBLE DEBT – RELATED AND UNRELATED PARTIES (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | ||||
Interest expense | $ 2,539 | $ 5,546 | $ 6,932 | $ 12,110 |
Convertible Promissory Notes [Member] | ||||
Short-term Debt [Line Items] | ||||
Interest expense | $ 5,499 | $ 9,627 | $ 19,361 | $ 12,957 |
SUMMARY OF STOCK OPTIONS (Detai
SUMMARY OF STOCK OPTIONS (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Number of Shares, Beginning balance | 3,930,000 | ||
Weighted Average Exercise Price, Beginning balance | $ 0.0052 | ||
Number of Shares, Granted | 3,930,000 | ||
Weighted Average Exercise Price, Granted | $ 0.0052 | ||
Number of Shares, Exercised | |||
Weighted Average Exercise Price, Exercised | |||
Number of Shares, Forfeited | |||
Weighted Average Exercise Price, Forfeited | |||
Number of Shares, Expired | |||
Weighted Average Exercise Price, Expired | |||
Number of Shares, Ending balance | 3,930,000 | 3,930,000 | |
Weighted Average Exercise Price, Ending balance | $ 0.0052 | $ 0.0052 | |
Intrinsic value of options | $ 5,874,475 | $ 6,267,475 | |
Weighted Average Remaining Contractual Life (Years) | 9 years 3 months 21 days | 9 years 9 months 21 days |
STOCKHOLDERS_ EQUITY (DEFICIT_2
STOCKHOLDERS’ EQUITY (DEFICIT) (Details Narrative) | May 16, 2021shares | Mar. 08, 2021USD ($)$ / sharesshares | Mar. 05, 2021USD ($)shares | Feb. 17, 2021USD ($)$ / sharesshares | Feb. 17, 2021USD ($)$ / sharesshares | Feb. 16, 2021USD ($)$ / sharesshares | Feb. 16, 2021USD ($)$ / sharesshares | Oct. 19, 2020shares | May 16, 2019USD ($)shares | Aug. 02, 2017USD ($)$ / sharesshares | Jul. 19, 2017shares | Mar. 31, 2021USD ($)shares | Jan. 31, 2021USD ($)shares | Jun. 30, 2021USD ($)$ / sharesshares | Mar. 31, 2021USD ($)shares | Jun. 30, 2021USD ($)Integer$ / sharesshares | Dec. 31, 2020USD ($)Integer$ / sharesshares | Dec. 31, 2019$ / sharesshares | Mar. 02, 2021 | Jun. 30, 2020shares | May 31, 2019shares |
Class of Stock [Line Items] | |||||||||||||||||||||
Number of common stock value issued during period | $ | $ 38,500 | $ 456,000 | |||||||||||||||||||
Preferred stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||||
Common stock, shares issued | 31,430,575 | 31,430,575 | 27,297,960 | 27,297,960 | 0 | ||||||||||||||||
Common stock, shares outstanding | 31,430,575 | 31,430,575 | 27,297,960 | 27,297,960 | 0 | ||||||||||||||||
Shares of stock issued for services rendered, shares | 61,500 | 37,500 | |||||||||||||||||||
Value of shares issued for service | $ | $ 70,725 | $ 52,500 | $ 1,750 | 436,385 | |||||||||||||||||
Stock based compensation | $ | $ 226,807 | $ 104,638 | |||||||||||||||||||
Increase in additional paid in capital | $ | $ 68,642 | ||||||||||||||||||||
Stock option granted | 3,930,000 | ||||||||||||||||||||
Stock based compensation unregognised | $ | $ 660,372 | ||||||||||||||||||||
Stock option granted vested | 312,500 | 312,500 | 312,500 | ||||||||||||||||||
Conversion of notes payable | 43,990 | 181,250 | |||||||||||||||||||
Accrued interest | $ | $ 43,438 | $ 43,438 | $ 43,438 | ||||||||||||||||||
TRAQIQ Solutions Private Limited [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Percentage of voting interest acquired | 100.00% | ||||||||||||||||||||
Warrants term | 5 years | ||||||||||||||||||||
Number of warrant issued | 1,329,272 | ||||||||||||||||||||
MIMO Technologies PVT Ltd [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Note receivable written off | $ | $ 258,736 | ||||||||||||||||||||
Accounts receivable written off | $ | 123,778 | ||||||||||||||||||||
Debenture written off | $ | 40,354 | ||||||||||||||||||||
Cash payment to minority shareholders | $ | $ 22,338 | ||||||||||||||||||||
Rohuma, LLC [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Shares of stock issued for acquisition of Rohuma (first tranche), shares | 4,292,220 | ||||||||||||||||||||
Share Exchange Agreement [Member] | MIMO Technologies PVT Ltd [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants term | 3 years | 3 years | |||||||||||||||||||
Number of warrant issued | 1,367,539 | 1,367,539 | |||||||||||||||||||
Number of warrants earned | 820,524 | 820,524 | |||||||||||||||||||
Remaining warrants expected to be earned | 547,015 | 547,015 | |||||||||||||||||||
Warrants exercise price | $ / shares | $ 0.001 | $ 0.001 | |||||||||||||||||||
Amount of warrants outstanding | $ | $ 1,640,447 | $ 1,640,447 | |||||||||||||||||||
Ownership interest percentage | 99.00% | ||||||||||||||||||||
Share Exchange Agreement [Member] | MIMO Technologies PVT Ltd [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Number of common stock value issued during period | $ | $ 22,338 | ||||||||||||||||||||
Warrants term | 3 years | 3 years | |||||||||||||||||||
Number of warrant issued | 1,367,539 | 1,367,539 | |||||||||||||||||||
Number of warrants earned | 820,524 | 820,524 | |||||||||||||||||||
Remaining warrants expected to be earned | 547,015 | 547,015 | |||||||||||||||||||
Warrants exercise price | $ / shares | $ 0.001 | $ 0.001 | |||||||||||||||||||
Amount of warrants outstanding | $ | $ 1,640,447 | $ 1,640,447 | |||||||||||||||||||
Ownership interest percentage | 99.00% | 99.00% | |||||||||||||||||||
Share Exchange Agreement [Member] | TRAQIQ Solutions Private Limited [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Percentage of voting interest acquired | 100.00% | ||||||||||||||||||||
Warrants term | 5 years | ||||||||||||||||||||
Number of warrant issued | 1,329,272 | ||||||||||||||||||||
Warrants to purchase common stock, value | $ | $ 268 | ||||||||||||||||||||
Increase in additional paid in capital | $ | $ 268 | ||||||||||||||||||||
Cancelled warrants | 419,127 | ||||||||||||||||||||
Share Exchange Agreement [Member] | TRAQIQ Solutions Private Limited [Member] | Immediately Upon Closing [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Number of warrant issued | 100,771 | ||||||||||||||||||||
Share Exchange Agreement [Member] | TRAQIQ Solutions Private Limited [Member] | One Year After The Date Of Closing [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Number of warrant issued | 859,951 | 859,951 | 859,951 | ||||||||||||||||||
Share Exchange Agreement [Member] | TRAQIQ Solutions Private Limited [Member] | Two Years After The Date Of Closing [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Number of warrant issued | 368,550 | ||||||||||||||||||||
Share Exchange Agreement [Member] | MIMO Technologies PVT Ltd [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Percentage of voting interest acquired | 1.00% | 1.00% | |||||||||||||||||||
Share Exchange Agreement [Member] | Rohuma, LLC [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Percentage of voting interest acquired | 1.00% | ||||||||||||||||||||
Stock Purchase Agreements [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Number shares issued during period | 570,000 | 570,000 | |||||||||||||||||||
Shares issued price per share | $ / shares | $ 0.80 | $ 0.80 | |||||||||||||||||||
Number of common stock value issued during period | $ | $ 456,000 | $ 456,000 | |||||||||||||||||||
Warrants term | 3 years | 3 years | |||||||||||||||||||
Number of warrant issued | 285,000 | 285,000 | |||||||||||||||||||
Warrants exercise price | $ / shares | $ 2 | $ 2 | |||||||||||||||||||
Consulting Agreement [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Number shares issued during period | 100,000 | ||||||||||||||||||||
Number of common stock value issued during period | $ | $ 25,000 | ||||||||||||||||||||
Warrants term | 3 years | ||||||||||||||||||||
Stock based compensation unregognised | $ | $ 3,000 | ||||||||||||||||||||
Warrants exercise price | $ / shares | $ 2 | ||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Number shares issued during period | 35,000 | 570,000 | |||||||||||||||||||
Number of common stock value issued during period | $ | $ 4 | $ 57 | |||||||||||||||||||
Shares of stock issued for services rendered, shares | 1,000 | 400,000 | |||||||||||||||||||
Value of shares issued for service | $ | $ 40 | ||||||||||||||||||||
Increase in additional paid in capital | $ | |||||||||||||||||||||
Shares of stock issued for conversion of notes payable and accrued interest, shares | 264,338 | ||||||||||||||||||||
Shares of stock issued for acquisition of Rohuma (first tranche), shares | 2,562,277 | ||||||||||||||||||||
Common Stock [Member] | Restricted Stock [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Share-based payment award authorized | 350,000 | 350,000 | |||||||||||||||||||
Additional Paid-in Capital [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Number of common stock value issued during period | $ | $ 38,496 | $ 455,943 | |||||||||||||||||||
Value of shares issued for service | $ | 1,750 | 436,345 | |||||||||||||||||||
Increase in additional paid in capital | $ | $ 68,642 | ||||||||||||||||||||
Additional Paid-in Capital [Member] | Share Exchange Agreement [Member] | MIMO Technologies PVT Ltd [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Amount of warrants outstanding | $ | $ 984,268 | $ 984,268 | |||||||||||||||||||
Additional Paid-in Capital [Member] | Share Exchange Agreement [Member] | MIMO Technologies PVT Ltd [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Amount of warrants outstanding | $ | $ 984,268 | $ 984,268 | |||||||||||||||||||
Advisor [Member] | Restricted Stock [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Stock based compensation | $ | $ 40,222 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | three-year term. | ||||||||||||||||||||
Advisor [Member] | Common Stock [Member] | Restricted Stock [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Share-based payment award issued in period | 0 | ||||||||||||||||||||
Director [Member] | Common Stock [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Short-term debt, lender | director for agreeing to lend the Company $400,000 in a promissory note | ||||||||||||||||||||
Director [Member] | Common Stock [Member] | Restricted Stock [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Shares award issued in period | 300,000 | ||||||||||||||||||||
Shares may be return in period | 150,000 | ||||||||||||||||||||
Shares value award issued in period | $ | $ 447,000 | ||||||||||||||||||||
Board Members, Advisory Board Members, Employees and Consultants [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Stock option granted | 3,930,000 | ||||||||||||||||||||
Stock option term | 10 years | ||||||||||||||||||||
Series A Convertible Preferred Stock [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Conversion price description | (i) eighty five percent (85%) of the average closing bid price of the Common Stock over the twenty (20) trading days immediately preceding the date of conversion, (ii) but no less than par value of the Common Stock. For purposes of determining the closing bid price on any day, reference shall be to the closing bid price for a share of Common Stock on such date on the OTC Markets, as reported on Bloomberg, L.P. (or similar organization or agency succeeding to its functions of reporting prices) (the “Per Share Market Value”). | (i) eighty five percent (85%) of the average closing bid price of the Common Stock over the twenty (20) trading days immediately preceding the date of conversion, (ii) but no less than par value of the Common Stock. For purposes of determining the closing bid price on any day, reference shall be to the closing bid price for a share of Common Stock on such date on the OTC Markets, as reported on Bloomberg, L.P. (or similar organization or agency succeeding to its functions of reporting prices) (the “Per Share Market Value”). | |||||||||||||||||||
Convertible debt percentage | 85.00% | 85.00% | |||||||||||||||||||
Debt trading days | Integer | 20 | 20 | |||||||||||||||||||
Series A Convertible Preferred Stock [Member] | Minimum [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Preferred stock, par value | $ / shares | $ 500 | ||||||||||||||||||||
Series A Convertible Preferred Stock [Member] | Chief Executive Officer [Member] | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Number shares issued during period | 50,000 | 50,000 | |||||||||||||||||||
Shares issued price per share | $ / shares | $ 0.20 | ||||||||||||||||||||
Number of common stock value issued during period | $ | $ 10,000 |
SCHEDULE OF REMAINING LEASE OBL
SCHEDULE OF REMAINING LEASE OBLIGATION (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Operating Lease | ||
2022 | $ 13,209 | |
2023 | 28,593 | $ 26,087 |
2024 | 28,593 | 29,091 |
2025 | 29,487 | 29,091 |
2026 | 32,882 | 30,000 |
2027 | 58,914 | 33,455 |
2026 and thereafter | 59,940 | |
Total lease payments | 191,678 | 207,663 |
Less: Imputed interest | 63,759 | 73,665 |
Present value of lease liabilities | $ 127,919 | $ 133,998 |
OPERATING LEASE (Details Narrat
OPERATING LEASE (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | May 17, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||
Lease right of use asset | $ 118,237 | $ 126,118 | $ 537,268 | ||
Lease liability | 127,919 | 133,998 | |||
Operating lease, right-of-use asset, amortization expense | 592,909 | 592,909 | |||
Rent expense | 100,079 | $ 74,214 | |||
Impaired right-of-use asset | 333,571 | ||||
Impaired lease liability | $ 349,428 | ||||
Operating Leases, Rent Expense | $ 15,511 | $ 63,895 | |||
TRAQIQ Solutions Private Limited [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Lease right of use asset | $ 576,566 | ||||
Lease liability | $ 585,207 |
CONCENTRATIONS (Details Narrati
CONCENTRATIONS (Details Narrative) - Customer Concentration Risk [Member] | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue Benchmark [Member] | Two Major Customers [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 87.00% | 88.00% | 85.00% | 82.00% |
Accounts Receivable [Member] | Two Customers [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 87.00% | 85.00% | 67.00% |
CONTINGENCY (Details Narrative)
CONTINGENCY (Details Narrative) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingency pursuant to agreement with driver | $ 190,000 |
Loss contingency, eligibility of company fees, per day | $ 800 |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal income taxes at statutory rate | 21.00% | 21.00% |
State income taxes at statutory rate | 7.50% | 7.50% |
Temporary differences | 0.38% | (0.82%) |
Permanent differences | (0.98%) | (7.41%) |
Change in valuation allowance | (27.90%) | (20.27%) |
Totals | 0.00% | 0.00% |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Restructuring Cost and Reserve [Line Items] | ||
NOL carryforward (based on last tax return filed per Indian Income Tax laws) | $ 747,748 | $ 579,118 |
Stock-based compensation | 28,174 | |
Depreciation | (1,616) | (1,616) |
Net Deferred Tax Assets | 774,306 | 577,502 |
Less: Valuation allowance | (774,306) | (577,502) |
Net Deferred Tax Asset | ||
India Based Entity [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
NOL carryforward (based on last tax return filed per Indian Income Tax laws) | 43,140 | 11,404 |
Net Deferred Tax Assets | 148,043 | 110,150 |
Less: Valuation allowance | (148,043) | (110,150) |
Net Deferred Tax Asset | ||
Difference between book and tax base of fixed assets | 43,868 | 56,696 |
Provision for gratuity | 27,189 | 22,253 |
Provision for leave encashment | 11,030 | 8,598 |
Operating lease | 5,170 | 2,339 |
Timing difference on TDS under 40a(ia) | 9,002 | |
MAT credit | $ 8,644 | $ 8,860 |
PROVISION FOR INCOME TAXES (Det
PROVISION FOR INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Net operating loss carry forward | $ 2,777,151 | |
Operating loss carry forward expiration, description | expiring through 2037. | |
Increased in valuation allowance | $ 196,804 | |
Penalties or interest expensed | 0 | $ 0 |
Penalties or interest accrued | 0 | 0 |
Deferred tax assets | 774,306 | 577,502 |
India Based Entity [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Deferred tax assets | $ 148,043 | $ 110,150 |
SCHEDULE OF EMPLOYEE GRATUITY P
SCHEDULE OF EMPLOYEE GRATUITY PLANS (Details) - USD ($) | 8 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Projected benefit obligation, beginning balance | $ 65,550 | $ 85,594 | |
Service cost | 6,982 | 10,746 | |
Interest cost | 3,106 | 5,595 | |
Benefits paid | (1,932) | (19,033) | |
Actuarial gain (loss) on the Obligation | 13,086 | 23,761 | |
Effect of exchange rate changes | (1,198) | (2,090) | |
Projected benefit obligation, ending balance | 85,594 | $ 85,594 | 104,573 |
Unfunded amount - non-current | 74,781 | 74,781 | 94,023 |
Unfunded amount - current | 10,813 | 10,813 | 10,550 |
Total accrued liability | $ 85,594 | 85,594 | $ 104,573 |
The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost : Discount rate | 6.70% | 5.55% | |
The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost : Rate of increase in compensation levels | 10.00% | 10.00% | |
Other Long-term Employee Benefits - Leave Encashment [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Projected benefit obligation, beginning balance | $ 24,243 | $ 33,070 | |
Service cost | 3,646 | 10,746 | |
Interest cost | 940 | 5,595 | |
Benefits paid | (919) | (2,212) | |
Actuarial gain (loss) on the Obligation | 5,617 | (3,969) | |
Effect of exchange rate changes | (457) | (806) | |
Projected benefit obligation, ending balance | 33,070 | 33,070 | 42,424 |
Unfunded amount - non-current | 27,682 | 27,682 | 37,306 |
Unfunded amount - current | 5,388 | 5,388 | 5,118 |
Total accrued liability | $ 33,070 | 33,070 | $ 42,424 |
The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost : Discount rate | 6.70% | 5.55% | |
The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost : Rate of increase in compensation levels | 10.00% | 10.00% | |
Components of net period benefit costs [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Service cost | $ 6,982 | $ 10,746 | |
Interest cost | 3,106 | 5,595 | |
Actuarial gain (loss) on the Obligation | 11,888 | 23,761 | |
Components of net period benefit costs | $ 21,976 | 40,102 | |
Components of net period benefit costs [Member] | Other Long-term Employee Benefits - Leave Encashment [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Service cost | 3,646 | 10,746 | |
Interest cost | 940 | 5,595 | |
Actuarial gain (loss) on the Obligation | 5,160 | (3,969) | |
Components of net period benefit costs | $ 9,746 | $ 12,372 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - Ministry of Finance, India [Member] - USD ($) | 1 Months Ended | ||
Jan. 31, 2021 | Dec. 31, 2020 | Mar. 22, 2014 | |
Operating Loss Carryforwards [Line Items] | |||
Tax and penalty amount payable | $ 0 | ||
Gratuity outstanding | $ 23,971 | ||
Payments to gratuity | $ 13,816 | ||
Guarantee provided prior to acquisition | $ 165,813 | ||
Subsequent Event [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Payments to gratuity | $ 13,816 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Mar. 08, 2021 | Mar. 05, 2021 | Mar. 02, 2021 | Feb. 17, 2021 | Feb. 16, 2021 | Feb. 16, 2021 | Feb. 12, 2021 | Jan. 22, 2021 | Jan. 19, 2021 | Mar. 31, 2021 | Jan. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Number of shares issued for services | 61,500 | 37,500 | ||||||||||||||||
Value of shares issued for services | $ 70,725 | $ 52,500 | $ 1,750 | $ 436,385 | ||||||||||||||
Debt instrument discount amount | 176,902 | $ 176,902 | ||||||||||||||||
Number of warrants granted for conversion | 264,338 | |||||||||||||||||
Value of shares issued for cash | 38,500 | 456,000 | ||||||||||||||||
Conversion of stock, amount converted | $ 181,250 | |||||||||||||||||
Accrued interest | $ 43,438 | $ 43,438 | $ 43,438 | |||||||||||||||
Revenue | $ 937,002 | $ 230,258 | $ 1,319,388 | $ 521,319 | $ 1,009,949 | $ 680,732 | ||||||||||||
Service [Member] | ||||||||||||||||||
Number of shares issued for services | 25,000 | |||||||||||||||||
Warrants term | 3 years | |||||||||||||||||
Warrants exercise price | $ 2 | |||||||||||||||||
Number of warrants issued | 100,000 | |||||||||||||||||
Revenue | $ 3,000 | |||||||||||||||||
Warrants vesting date | Mar. 7, 2022 | |||||||||||||||||
Stock Purchase Agreements [Member] | ||||||||||||||||||
Number of shares issued as commitment fee | 570,000 | 570,000 | ||||||||||||||||
Shares issued, price per share | $ 0.80 | $ 0.80 | ||||||||||||||||
Warrants term | 3 years | 3 years | ||||||||||||||||
Warrants exercise price | $ 2 | $ 2 | ||||||||||||||||
Value of shares issued for cash | $ 456,000 | $ 456,000 | ||||||||||||||||
Number of warrants issued | 285,000 | 285,000 | ||||||||||||||||
GS Capital Partners, LLC [Member] | ||||||||||||||||||
Number of shares issued for services | 26,000 | |||||||||||||||||
Rohuma, LLC [Member] | Share Exchange Agreement [Member] | ||||||||||||||||||
Number ofcommon stock issued | 4,292,220 | |||||||||||||||||
Rohuma, LLC [Member] | Share Exchange Agreement [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||||||||||
Number ofcommon stock issued | 2,562,277 | |||||||||||||||||
Transaction value | $ 4,335,142 | |||||||||||||||||
Shares issued, price per share | $ 1.01 | |||||||||||||||||
Platinum Point Capital, LLC [Member] | ||||||||||||||||||
Number of shares issued for services | 60,000 | |||||||||||||||||
Warrants term | 3 years | |||||||||||||||||
Warrants exercise price | $ 2 | |||||||||||||||||
Number of warrants issued | 200,000 | 200,000 | ||||||||||||||||
MIMO Technologies PVT Ltd [Member] | Share Exchange Agreement [Member] | ||||||||||||||||||
Warrants term | 3 years | |||||||||||||||||
Warrants exercise price | $ 0.001 | |||||||||||||||||
Value of shares issued for cash | $ 22,338 | |||||||||||||||||
Number of warrants issued | 1,367,539 | |||||||||||||||||
Convertible Promissory Notes [Member] | GS Capital Partners, LLC [Member] | ||||||||||||||||||
Convertible debt percentage | 12.00% | |||||||||||||||||
Debt instrument face amount | $ 125,000 | |||||||||||||||||
Debt instrument periodic payment, description | The GS Note has a maturity of one-year and is to be repaid commencing on the fifth month anniversary and every month thereafter in the amount of $20,000. | |||||||||||||||||
Debt instrument, periodic payment | $ 20,000 | |||||||||||||||||
Percentage of debt instrument conversion | 66.00% | |||||||||||||||||
Debt instrument discount amount | $ 10,000 | |||||||||||||||||
Proceeds for legal fees | $ 5,000 | |||||||||||||||||
Number of shares issued as commitment fee | 26,000 | |||||||||||||||||
Number of shares issued returnable upon achievement | 170,000 | |||||||||||||||||
Convertible Promissory Notes [Member] | Platinum Point Capital, LLC [Member] | ||||||||||||||||||
Convertible debt percentage | 10.00% | |||||||||||||||||
Percentage of debt instrument conversion | 70.00% | |||||||||||||||||
Number of shares issued as commitment fee | 60,000 | |||||||||||||||||
Debt instrument conversion price per share | $ 0.01 | |||||||||||||||||
Number of warrants granted for conversion | 200,000 | |||||||||||||||||
Warrants term | 3 years | |||||||||||||||||
Warrants exercise price | $ 2 | |||||||||||||||||
Number of warrants issued | 200,000 |
SCHEDULE OF GOODWILL (Details)
SCHEDULE OF GOODWILL (Details) - USD ($) | Jun. 30, 2021 | Feb. 17, 2021 | Dec. 31, 2020 |
Net | $ 6,507,680 | $ 2,085,653 | |
Rohuma US [Member] | |||
Net | 3,519,869 | ||
MIMO Technologies PVT Ltd [Member] | |||
Net | $ 2,987,811 |
GOODWILL (Details Narrative)
GOODWILL (Details Narrative) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of goodwill | $ 0 |
SCHEDULE OF CONVERTIBLE NOTES O
SCHEDULE OF CONVERTIBLE NOTES OUTSTANDING (Details) - USD ($) | Feb. 12, 2021 | Jan. 19, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Total Convertible Notes Payable | $ 505,000 | ||||
Less: Debt Discount | (176,902) | ||||
Convertible Notes Payable Current | 328,098 | ||||
GS Capital Partners, LLC [Member] | |||||
Total Convertible Notes Payable | 105,000 | [1] | |||
GS Capital Partners, LLC [Member] | Convertible Promissory Notes [Member] | |||||
Less: Debt Discount | $ (10,000) | ||||
Debt Instrument, Maturity Date, Description | one-year | ||||
Platinum Point Capital, LLC [Member] | |||||
Total Convertible Notes Payable | $ 400,000 | [2] | |||
Platinum Point Capital, LLC [Member] | Convertible Promissory Notes [Member] | |||||
Debt Instrument, Maturity Date, Description | one-year | ||||
[1] | On January 19, 2021, the Company entered into a 12 125,000 one-year 20,000 66 20 10,000 5,000 26,000 170,000 | ||||
[2] | On February 12, 2021, the Company entered into a 10 one-year 0.01 70 15 200,000 three 2.00 60,000 |
SCHEDULE OF CONVERTIBLE NOTES_2
SCHEDULE OF CONVERTIBLE NOTES OUTSTANDING (Details) (Parenthetical) | Feb. 12, 2021Integer$ / sharesshares | Jan. 19, 2021USD ($)Integershares | Jun. 30, 2021USD ($)shares | Dec. 31, 2020USD ($) |
Short-term Debt [Line Items] | ||||
Original issue discount | $ | $ 176,902 | |||
Platinum Point Capital, LLC [Member] | ||||
Short-term Debt [Line Items] | ||||
Number of warrants issued | shares | 200,000 | |||
Warrants term | 3 years | |||
Warrants exercise price | $ / shares | $ 2 | |||
Convertible Promissory Notes [Member] | GS Capital Partners, LLC [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 12.00% | |||
Debt instrument face amount | $ | $ 125,000 | |||
Periodic payment | $ | $ 20,000 | |||
Percentage of stock price trigger | 66.00% | |||
Trading days | Integer | 20 | |||
Original issue discount | $ | $ 10,000 | |||
Payments for legal fees | $ | $ 5,000 | |||
Shares of stock issued for conversion of notes payable and accrued interest, shares | shares | 26,000 | |||
Stock issued during period returnable shares | shares | 170,000 | |||
Convertible Promissory Notes [Member] | Platinum Point Capital, LLC [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 10.00% | |||
Percentage of stock price trigger | 70.00% | |||
Trading days | Integer | 15 | |||
Stock issued during period returnable shares | shares | 60,000 | |||
Conversion price | $ / shares | $ 0.01 | |||
Number of warrants issued | shares | 200,000 | |||
Warrants term | 3 years | |||
Warrants exercise price | $ / shares | $ 2 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | ||||
Interest expense | $ 158,537 | $ 107,869 | $ 228,748 | $ 170,688 |
Amortization of discounts on debt | 146,966 | |||
Convertible Notes Payable [Member] | ||||
Short-term Debt [Line Items] | ||||
Interest expense | $ 21,781 | $ 0 |
SCHEDULE OF COMMON STOCK WARRAN
SCHEDULE OF COMMON STOCK WARRANTS (Details) - Warrants [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 1,329,272 | 1,329,272 |
Exercise price, beginning balance | $ 0.001 | $ 0.001 |
Weighted-average remaining contractual life, outstanding beginning Balance | 2 years 8 months 19 days | 4 years 10 months 13 days |
Aggregate intrinsic value of vested warrants outstanding beginning | $ 2,125,506 | |
Weighted-average exercise price, outstanding beginning balance | $ 0.001 | $ 0.001 |
Warrants granted | 1,980,039 | |
Warrants exercised | ||
Warrants expired/cancelled | (419,127) | |
Weighted-average remaining contractual life, outstanding ending balance | 2 years 8 months 23 days | 3 years 10 months 13 days |
Ending balance | 2,880,184 | 1,329,272 |
Exercise price, ending balance | $ 0.001 | |
Aggregate intrinsic value of vested warrants outstanding ending | $ 3,414,248 | $ 2,125,506 |
Weighted-average exercise price, outstanding ending balance | $ 0.42 | $ 0.001 |
Exercisable at ending | 2,333,168 | |
Exercisable Aggregate Intrinsic Value | $ 2,594,272 | |
Exercisable weighted price per share | $ 0.52 | |
Minimum [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Exercise price, Warrants granted | 0.001 | |
Exercise price, ending balance | 0.001 | |
Exercisable price per share | 0.001 | |
Maximum [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Exercise price, Warrants granted | 2 | |
Exercise price, ending balance | 2 | |
Exercisable price per share | $ 2 |
SCHEDULE OF EACH OPTION WARRANT
SCHEDULE OF EACH OPTION WARRANT ESTIMATED USING THE BLACK-SCHOLES VALUATION MODEL (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Expected term | 3 years | |
Expected volatility | ||
Expected dividend yield | ||
Risk-free interest rate | ||
Minimum [Member] | ||
Expected volatility | 100.00% | |
Risk-free interest rate | 15.00% | |
Maximum [Member] | ||
Expected volatility | 214.00% | |
Risk-free interest rate | 0.58% |
SUMMARY OF STOCK OPTION (Detail
SUMMARY OF STOCK OPTION (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Number of Shares, Beginning balance | 3,930,000 | ||
Weighted Average Exercise Price, Beginning balance | $ 0.0052 | ||
Number of Shares, Granted | 3,930,000 | ||
Weighted Average Exercise Price, Granted | $ 0.0052 | ||
Number of Shares, Exercised | |||
Weighted Average Exercise Price, Exercised | |||
Number of Shares, Forfeited | |||
Weighted Average Exercise Price, Forfeited | |||
Number of Shares, Expired | |||
Weighted Average Exercise Price, Expired | |||
Number of Shares, Ending balance | 3,930,000 | 3,930,000 | |
Weighted Average Exercise Price, Ending balance | $ 0.0052 | $ 0.0052 | |
Intrinsic value of options | $ 5,874,475 | $ 6,267,475 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 9 years 3 months 21 days | 9 years 9 months 21 days |
SCHEDULE OF VALUATION ASSUMPTIO
SCHEDULE OF VALUATION ASSUMPTIONS (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Measurement Input, Expected Term [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities, fair value measurement input, term | 1 year | |
Expected Volatility [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities, fair value assumptions | ||
Expected Volatility [Member] | Minimum [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities, fair value assumptions | 164 | |
Expected Volatility [Member] | Maximum [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities, fair value assumptions | 214 | |
Measurement Input, Expected Dividend Rate [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities, fair value assumptions | ||
Measurement Input, Risk Free Interest Rate [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities, fair value assumptions | 0.15 |
SCHEDULE OF DERIVATIVE LIABILIT
SCHEDULE OF DERIVATIVE LIABILITIES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative liability | $ 1,510,000 | |
GS Capital Partners, LLC [Member] | ||
Derivative liability | 280,000 | |
Platinum Point Capital, LLC [Member] | ||
Derivative liability | 1,024,000 | |
Platinum Point Capital, LLC [Member] | Warrant [Member] | ||
Derivative liability | $ 206,000 |
SCHEDULE OF DERIVATIVE LIABIL_2
SCHEDULE OF DERIVATIVE LIABILITIES (Details) (Parenthetical) | Jun. 30, 2021shares |
Platinum Point Capital, LLC [Member] | |
Number of warrants issued | 200,000 |
SCHEDULE OF ACTIVITY RELATED TO
SCHEDULE OF ACTIVITY RELATED TO DERIVATIVE LIABILITIES (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Beginning balance as of December 31, 2020 | |
Issuances of warrants/conversion option – derivative liabilities | 313,868 |
Warrants exchanged for common stock | |
Change in fair value of warrants/conversion option - derivative liabilities | 1,196,132 |
Ending balance as of June 30, 2021 | $ 1,510,000 |
DERIVATIVE LIABILITIES (Details
DERIVATIVE LIABILITIES (Details Narrative) - USD ($) | Feb. 12, 2021 | Jan. 19, 2021 | Mar. 31, 2021 | Jan. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Convertible promissory note | $ 328,098 | |||||
Number of shares issued as commitment fee | 61,500 | 37,500 | ||||
GS Capital Partners, LLC [Member] | ||||||
Original issue discount | $ 10,000 | |||||
Legal fees | $ 5,000 | |||||
Number of shares issued as commitment fee | 26,000 | |||||
GS Capital Partners, LLC [Member] | Returnable Upon Achievement [Member] | ||||||
Shares of stock issued for cash, shares | 170,000 | |||||
Platinum Point Capital, LLC [Member] | ||||||
Number of shares issued as commitment fee | 60,000 | |||||
Number of warrants granted | 200,000 | |||||
Warrant term | 3 years | |||||
Warrant exercise price | $ 2 | |||||
10% Convertible Promissory Note [Member] | GS Capital Partners, LLC [Member] | ||||||
Convertible promissory note | $ 125,000 | |||||
Debt Instrument, Maturity Date, Description | one-year | |||||
10% Convertible Promissory Note [Member] | GS Capital Partners, LLC [Member] | Every Month Thereafter [Member] | ||||||
Monthly repayment | $ 20,000 | |||||
Conversion price,description | The conversion price of the GS Note is 66% of the lowest closing stock price over the previous 20 trading days | |||||
10% Convertible Promissory Note [Member] | Platinum Point Capital, LLC [Member] | ||||||
Debt Instrument, Maturity Date, Description | one-year | |||||
Conversion price,description | The conversion price of the Platinum Note is the greater of (a) $0.01 or (b) 70% of the lowest closing stock price over the previous 15 trading days |