Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | Ipsidy Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 604,308,061 | |
Amendment Flag | false | |
Entity Central Index Key | 0001534154 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Entity File Number | 000-54545 | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash | $ 2,618,078 | $ 3,765,277 |
Accounts receivable, net | 618,586 | 72,986 |
Current portion of net investment in direct financing lease | 74,645 | 72,682 |
Inventory, net | 123,495 | 254,951 |
Other current assets | 301,351 | 237,769 |
Total current assets | 3,736,155 | 4,403,665 |
Property and Equipment, net | 88,135 | 97,829 |
Other Assets | 221,378 | 240,223 |
Intangible Assets, net | 4,233,805 | 4,527,476 |
Goodwill | 4,183,232 | 4,183,232 |
Net investment in direct financing lease, net of current portion | 402,608 | 422,021 |
Total assets | 12,865,313 | 13,874,446 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 2,537,461 | 2,665,132 |
Notes payable, current portion | 6,098 | 5,947 |
Convertible debt, net of discounts | 5,812,650 | |
Finance lease obligation, current portion | 40,421 | 39,232 |
Contract liabilities | 556,882 | 237,690 |
Total current liabilities | 8,953,512 | 2,948,001 |
Finance lease obligation, net of current portion | 10,562 | |
Notes payable, net of current portion | 971,520 | 487,339 |
Convertible debt, net of discounts | 5,800,976 | |
Other liabilities | 59,506 | 47,809 |
Total liabilities | 9,984,538 | 9,294,687 |
Commitments and Contingencies (Note 12) | ||
Stockholders’ Equity: | ||
Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 603,486,888 and 589,272,023 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 60,348 | 58,927 |
Additional paid in capital | 103,343,579 | 102,594,341 |
Accumulated deficit | (100,724,150) | (98,234,151) |
Accumulated comprehensive income | 200,998 | 160,642 |
Total stockholders’ equity | 2,880,775 | 4,579,759 |
Total liabilities and stockholders’ equity | $ 12,865,313 | $ 13,874,446 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 603,486,888 | 589,272,023 |
Common stock, shares outstanding | 603,486,888 | 589,272,023 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Products and services | $ 575,913 | $ 778,938 |
Lease income | 13,086 | 14,851 |
Total revenues, net | 588,999 | 793,789 |
Operating Expenses: | ||
Cost of sales | 216,144 | 355,723 |
General and administrative | 1,927,926 | 1,504,255 |
Research and development | 322,010 | 430,401 |
Impairment loss | 871,807 | |
Depreciation and amortization | 309,829 | 304,211 |
Total operating expenses | 2,775,909 | 3,466,397 |
Loss from operations | (2,186,910) | (2,672,608) |
Other Expense: | ||
Other income, net | 1,537 | 9,953 |
Debt extinguishment | (985,842) | |
Interest expense, net | (297,438) | (179,050) |
Other expense, net | (295,901) | (1,154,939) |
Loss before income taxes | (2,482,811) | (3,827,547) |
Income Tax Expense | (7,188) | (8,874) |
Net loss | $ (2,489,999) | $ (3,836,421) |
Net Loss Per Share - Basic and Diluted (in Dollars per share) | $ 0 | $ (0.01) |
Weighted Average Shares Outstanding - Basic and Diluted (in Shares) | 592,768,709 | 519,436,402 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net Loss | $ (2,489,999) | $ (3,836,421) |
Foreign currency translation gain (loss) | 40,356 | (116,264) |
Comprehensive loss | $ (2,449,643) | $ (3,952,685) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total |
Balances at Dec. 31, 2019 | $ 51,812 | $ 94,982,167 | $ (86,935,593) | $ 177,385 | $ 8,275,771 |
Balances (in Shares) at Dec. 31, 2019 | 518,125,454 | ||||
Modification of warrants issued with debt | 95,223 | 95,223 | |||
Stock-based compensation | $ 450 | 168,660 | 169,110 | ||
Stock-based compensation (in Shares) | 4,500,000 | ||||
Issuance of common stock to settle accounts payable | $ 11 | 8,259 | 8,270 | ||
Issuance of common stock to settle accounts payable (in Shares) | 106,192 | ||||
Net loss | (3,836,421) | (3,836,421) | |||
Foreign currency translation | (116,264) | (116,264) | |||
Balances at Mar. 31, 2020 | $ 52,273 | 95,254,309 | (90,772,014) | 61,121 | 4,595,689 |
Balances (in Shares) at Mar. 31, 2020 | 522,731,646 | ||||
Balances at Dec. 31, 2020 | $ 58,927 | 102,594,341 | (98,234,151) | 160,642 | 4,579,759 |
Balances (in Shares) at Dec. 31, 2020 | 589,272,023 | ||||
Stock-based compensation | 626,579 | 626,579 | |||
Convertible note and accrued interest converted to common stock | $ 99 | 123,981 | 124,080 | ||
Convertible note and accrued interest converted to common stock (in Shares) | 988,500 | ||||
Cashless stock option exercises | $ 534 | (534) | |||
Cashless stock option exercises (in Shares) | 5,343,599 | ||||
Cashless warrant exercise | $ 788 | (788) | |||
Cashless warrant exercise (in Shares) | 7,882,766 | ||||
Net loss | (2,489,999) | (2,489,999) | |||
Foreign currency translation | 40,356 | 40,356 | |||
Balances at Mar. 31, 2021 | $ 60,348 | $ 103,343,579 | $ (100,724,150) | $ 200,998 | $ 2,880,775 |
Balances (in Shares) at Mar. 31, 2021 | 603,486,888 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (2,489,999) | $ (3,836,421) |
Adjustments to reconcile net loss with cash flows from operations: | ||
Depreciation and amortization expense | 309,829 | 304,211 |
Stock-based compensation | 626,579 | 169,110 |
Extinguishment of note payable | 985,842 | |
Amortization of debt discounts and issuance costs | 131,674 | 95,948 |
Impairment losses | 871,807 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (543,955) | (450,291) |
Net investment in direct financing lease | 17,450 | 15,686 |
Other current assets | (63,582) | 355,880 |
Inventory | 129,863 | 37,714 |
Accounts payable and accrued expenses | (124,665) | 156,085 |
Contract liabilities | 319,192 | 121,719 |
Other liabilities | 11,697 | |
Net cash flows from operating activities | (1,675,917) | (1,172,710) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (2,394) | |
Purchase of intangible assets | (4,424) | |
Decrease (increase) in other assets | 18,845 | (128,676) |
Net cash flows from investing activities | 14,421 | (131,070) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of convertible note payable | 1,510,000 | |
Payment of debt issuance costs | (104,800) | |
Proceeds from Paycheck Protection Program Loan | 485,760 | |
Principal payments on finance lease obligation and notes payable | (10,801) | (9,600) |
Net cash flows from financing activities | 474,959 | 1,395,600 |
Effect of Foreign Currencies | 39,338 | (96,653) |
Net Change in Cash | (1,147,199) | (4,833) |
Cash, Beginning of the Period | 3,765,277 | 567,081 |
Cash, End of the Period | 2,618,078 | 562,248 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for interest | 8,779 | 2,792 |
Cash paid for income taxes | 7,188 | 8,874 |
Modification of warrants issued with convertible debt | 95,223 | |
Exchange of notes payable and accrued interest for convertible notes payable | 2,662,000 | |
Settlement of accounts payable with issuance of common stock | 8,270 | |
Conversion of convertible note payable and accrued interest to common stock | 124,080 | |
Equity reclassification due to cashless option and warrant exercises | $ 1,322 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION In the opinion of Management, the accompanying unaudited condensed consolidated financial statements are prepared in accordance with instructions for Form 10-Q, include all adjustments (consisting only of normal recurring accruals) which we considered as necessary for a fair presentation of the results for the periods presented. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for future periods or the full year. The condensed consolidated financial statements include the accounts of Ipsidy Inc. and its wholly-owned subsidiaries MultiPay S.A.S., ID Global LATAM, IDGS S.A.S., ID Solutions, Inc., FIN Holdings Inc., Ipsidy Enterprises Limited, Cards Plus Pty Ltd. and Ipsidy Peru S.A.C. (collectively the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. Going Concern As of March 31, 2021, the Company had an accumulated deficit of approximately $100.7 million. For the three months ended March 31, 2021 the Company earned revenue of approximately $0.6 million and incurred a loss from operations of approximately $2.2 million. The reports of our independent registered public accounting firm on our consolidated financial statements for the years ended December 31, 2020 and 2019 contained an explanatory paragraph regarding our ability to continue as a going concern based upon our net losses. These unaudited condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to meet its obligations and continue its operations for the next fiscal year. The continuation of the Company as a going concern is dependent upon financial support from the Company’s current shareholders, the ability of the Company to obtain additional financing to continue operations, the Company’s ability to generate sufficient cash flows from operations, successfully locating and negotiating with other business entities for potential acquisition and /or acquiring new clients to generate revenues and cash flows. On October 30, 2020 and on November 6, 2020, the Company entered into Securities Purchase Agreements with several accredited investors (the “October 2020 Accredited Investors”) pursuant to which the October 2020 Accredited Investors agreed to purchase an aggregate of 52,435,000 shares of the Company’s common stock together with Warrants to acquire 26,217,500 shares of common stock for a term of five years at an exercise price of $0.15 per share for an aggregate purchase price of approximately $5.24 million. In January 2021, the Company received a second loan of approximately $486,000 under the Paycheck Protection Program (“PPP”) of the U.S. Small Business Association (“USSBA”) related to its U.S. operations. There is no assurance that the Company will ever be profitable or be able to secure funding or generate sufficient revenues to sustain operations. As such, there is substantial doubt about the Company’s ability to continue as a going concern. These unaudited condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. Covid-19 A novel strain of coronavirus (“Covid-19”) emerged globally in December 2019 and has been declared a pandemic. The extent to which Covid-19 will impact our customers, business, results and financial condition will depend on current and future developments, which are highly uncertain and cannot be predicted at this time. The Company’s day-to-day operations beginning March 2020 have been impacted differently depending on geographic location and services that are being performed. The Cards Plus business located in South Africa did not have any operations in April 2020 and has had limitations on its operations thereafter as the Company is following the guidance and requirements of the South African government. Our operations in the United States and Colombia have suffered less immediate impact as most staff can work remotely and can continue to develop our product offerings. That said we have seen our business opportunities develop more slowly as business partners and potential customers are dealing with Covid-19 issues, working remotely and these issues are causing delays in decision making and finalization of negotiations and agreements. Net Loss per Common Share The Company computes net loss per share in accordance with FASB ASC 260, “Earnings per Share”. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the statement of operations. Basic EPS is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including stock options, using the treasury stock method, and convertible notes and stock warrants, using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options, warrants and conversion of convertible notes. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive. The following potentially dilutive securities were excluded from the calculation of diluted loss per share for the three months ended March 31, 2021 and 2020 because their effect was antidilutive: Security 2021 2020 Convertible notes payable 34,047,500 35,476,705 Warrants 42,339,235 47,453,227 Stock options 162,305,394 109,823,340 238,692,129 192,753,272 Inventories Inventory of plastic/ID cards, digital printing material, which are held by Cards Plus Pty Ltd., are at the lower of cost (using the average method) or market. The Plastic/ID cards and digital printing material are used to provide plastic loyal ID and other types of cards. Inventories of kiosks held by IDGS S.A.S are stated at the lower of cost (using the first-in, first-out method) or net realizable value Inventories at March 31, 2021 and December 31, 2020 consist of cards inventory. As of March 31, 2021 and December 31, 2020, the Company recorded an inventory valuation allowance of approximately $18,000 to reflect net realizable value of the cards inventory. Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. Revenue Recognition Cards Plus – The Company recognizes revenue for the design and production of cards at the point in time when products are shipped, or services have been performed due to the short term nature of the contracts. Additionally, the cards produced by the Company have no alternative use and the Company has an enforceable right to payment for work performed should the contract be cancelled. As of March 31, 2021 and December 31, 2020, Cards Plus had approximately $24,000 and $88,000, respectively, of contract liability from payments received in advance that will be earned in future periods. Payment Processing – The Company recognizes revenue for variable fees generated for payment processing solutions that are earned on a usage fee over time based on monthly transaction volumes or on a monthly flat fee rate. Additionally, the Company also sells certain equipment from time to time for which revenue is recognized upon delivery to the customer. Identity Solutions Software – The Company recognizes revenue based on the identified performance obligations over the performance period for fixed consideration and for variable fees generated that are earned on a usage fee based over time based on monthly transaction volumes or on a monthly flat fee rate. The Company had a contract liability of approximately $530,000 and $150,000 as of March 31, 2021 and December 31, 2020 certain revenue that will be earned in future periods. The majority of the $150,000 of deferred revenue contract liability as of December 31, 2020 was earned in the first quarter of fiscal year 2021. As of March 31, 2021, the majority of the deferred revenue contract liability of $533,000 will be recognized in the ensuing four quarters. We have allocated the selling price in the contract to one customer; the contract has multiple performance obligations based on the contract selling price that we believe represents a standalone selling price for the service rendered. All contracts are reviewed for their respective performance obligations and related revenue and expense recognition implications. Certain of the revenues are derived from identity services that could include multiple performance obligations. A performance obligation is defined as a promise to provide a “distinct” good or service to a customer. The Company has determined that one possible treatment under U.S. GAAP is that these services will represent a stand-ready series of distinct daily services that are substantially the same, with the same pattern of transfer to the customer. Further, the Company has determined that the performance obligation to provide account access and facilitate transactions should meet the criteria for the “as invoiced” practical expedient, in that the Company has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date. As a result, the Company anticipates it may recognize revenue in the amount to which the Company has a right to invoice, based on completed performance at the relevant date. Additionally, the contracts could include implementation services, or support on an “as needed” basis and we will review each contract and determine whether such performance obligations are separate and distinct and apply the new standard accordingly to the revenue and expense derived from or related to each such service. Revenue related to direct financing leases is outside the scope of Topic 606 and is recognized over the term of the lease using the effective interest method. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 2 – PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following as of March 31, 2021 and December 31, 2020: March 31, December 31, Property and equipment $ 297,839 $ 297,839 Equipment under finance lease (see Note 10) 163,407 163,407 461,246 461,246 Less Accumulated depreciation (373,111 ) (363,417 ) Property and equipment, net $ 88,135 $ 97,829 Depreciation expense totaled $11,734 and $14,525 for the three months ended March 31, 2021 and 2020, respectively. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2021 | |
Other Assets [Abstract] | |
OTHER ASSETS | NOTE 3 – OTHER ASSETS Other assets consisted of the following at March 31, 2021 and December 31, 2020: March 31, December 31, Operating lease right of use assets $ 44,489 $ 49,856 Other 176,889 190,367 $ 221,378 $ 240,223 |
Intangible Assets, Net (Other T
Intangible Assets, Net (Other Than Goodwill) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL) | NOTE 4 – INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL) The Company’s intangible assets consist of intellectual property acquired from MultiPay and FIN and are amortized over their estimated useful lives as indicated below. The following is a summary of activity related to intangible assets for the three months ended March 31, 2021: Customer Acquired and Intellectual Patents Total Useful Lives 10 Years 5 Years 10 Years N/A Carrying Value at December 31, 2020 $ 811,303 $ 3,171,394 $ 416,471 $ 128,308 $ 4,527,476 Additions - - - 4,424 4,424 Amortization (41,196 ) (233,220 ) (20,351 ) (3,328 ) (298,095 ) Carrying Value at March 31, 2021 $ 770,107 $ 2,938,174 $ 396,120 $ 129,404 $ 4,233,805 The following is a summary of intangible assets as of March 31, 2021 Customer Acquired and Intellectual Patents Total Cost $ 1,587,159 $ 4,476,271 $ 828,580 $ 136,022 $ 7,028,032 Accumulated amortization (817,052 ) (1,538,097 ) (432,460 ) (6,618 ) (2,794,227 ) Carrying Value at March 31, 2021 $ 770,107 $ 2,938,174 $ 396,120 $ 129,404 $ 4,233,805 Amortization expense totaled $298,095 and $289,686 for the three months ended March 31, 2021 and 2020, respectively. Future expected amortization of intangible assets is as follows: Fiscal Year Ending December 31, Remainder of 2021 $ 1,162,977 2022 1,092,977 2023 1,007,995 2024 662,007 2025 246,454 Thereafter 61,395 $ 4,233,805 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 5 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consisted of the following as of March 31, 2021 and December 31, 2020: March 31, December 31, Trade payables $ 183,450 $ 311,024 Accrued interest 704,624 554,755 Accrued payroll and related obligations 799,377 891,790 Current portion of operating lease liabilities 52,858 117,414 Other* 797,152 790,149 Total $ 2,537,461 $ 2,665,132 * Included in Other expenses is accrued non-employee Directors’ Compensation of approximately $392,000 and $349,000 as of March 31, 2021 and December 31, 2020, respectively. In May 2021, the Non-employee Directors were compensated for their service through a grant of stock options. See Note 9. |
Notes Payable, Net
Notes Payable, Net | 3 Months Ended |
Mar. 31, 2021 | |
Notes Payable [Abstract] | |
NOTES PAYABLE, NET | NOTE 6 - NOTES PAYABLE, NET The following is a summary of notes payable as of March 31, 2021 and December 31, 2020: March 31, December 31, Paycheck Protection Program Loans $ 971,520 485,760 Installment loan payable related to a vehicle acquisition payable in monthly payments of $539 per month at an interest rate of 10.8% per annum payable for 36 months 6,098 7,526 Notes Payable, Net $ 977,618 $ 493,286 Notes Payable, current portion, $ 6,098 $ 5,947 Notes Payable, net of current portion 971,520 487,339 $ 977,618 $ 493,286 Paycheck Protection Program Loans In May 2020, the Company received a loan of approximately $486,000 under the Paycheck Protection Program (“PPP”) as part of the CARES Act which is administered by the U.S. Small Business Association (“USSBA”) related to its U.S. Operations. The Company anticipates subject to approval by the Small Business Administration, if certain requirements are met, the loan proceeds may be forgiven. Any amounts not forgiven will be required to be repaid. The loan bears interest at an annual rate 1% per annum and matures on May 5, 2022. In January 2021, the Company received a second loan of approximately $486,000 under the PPP related to its U.S. Operations. The Company anticipates subject to approval by USSBA, if certain requirements are met the second loan will be forgiven. Any amounts not forgiven will be required to be repaid. The loan bears interest at an annual rate 1% per annum and matures on January 31, 2023. If the USSBA determines that either PPP loan was not properly obtained and/or expenditures supporting forgiveness were not appropriate, the Company would need to repay some or all of the PPP loans and record additional expense which could have a material adverse effect on the Company’s financial condition and results of operations in a future period. |
Convertible Notes Payable
Convertible Notes Payable | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | NOTE 7 – CONVERTIBLE NOTES PAYABLE On December 13, 2019, the Company entered into Securities Purchase Agreements with several accredited investors (the “8% Note Investors”) providing for the sale by the Company to the 8% Note Investors of 8% Convertible Notes in the aggregate amount of $428,000 (the “8% Notes”). The 8% Notes were to mature on November 30, 2021 and were a general unsecured obligation of the Company. The Company can prepay all or a portion of the 8% Notes at any time. The Company shall pay any interest on the 8% Notes at the rate of 8.0% per annum payable at the earlier of the maturity date or conversion date, in cash or, at the holder’s option, shares of common stock of the Company. At the option of the 8% Note investors, all or a portion of the 8% Notes may be converted into shares of common stock of the Company at a conversion price of $0.08 per share. If the holders of the 8% Notes owning outstanding 8.0% Notes representing in excess of half of the aggregate outstanding principal amount of all 8% Notes provide notice to the Company of their intent to convert their 8% Notes, then all 8% Notes plus unpaid interest and other amounts owing to each of the holders shall be automatically converted. In February 2020, the Company and the holders of the 8% Notes entered into an amendment agreement pursuant to which the principal and interest due under the 8% Notes will remain due and payable on the same terms as exist in the 8% Notes prior to modification, that the maturity shall be extended to the same maturity date as the 2020 Notes, namely February 28, 2022, and the 8% Notes became a secured obligation of the Company. On February 14, 2020 the Company, entered into Securities Purchase Agreements with several accredited investors (the “2020 Note Investors”) providing for the sale by the Company to the 2020 Note Investors of 15% Senior Secured Convertible Notes in the aggregate amount of $1,510,000 (the “2020 Notes”). Philip D. Beck, Chief Executive Officer and Chairman of the Board, invested $50,000 in consideration of a 2020 Note in the principal amount of $50,000 paid by a deduction from his salary. Theodore Stern, a director of the Company, invested $50,000 in consideration of a 2020 Note in the principal amount of $50,000. Herbert Selzer, a director of the Company invested $100,000 in consideration of a 2020 Note in the principal amount of $100,000. Mr. Selzer provided $50,000 on the closing date and provided the balance of the funding in April 2020. The 2020 Notes mature February 28, 2022 and are a secured obligation of the Company. The Company can prepay all or a portion of the 2020 Notes at any time provided that such amount prepaid shall be equal to 150% of the principal due. The Company shall pay interest on the 2020 Notes at the rate of 15% per annum payable at the earlier of the maturity date or conversion date, in cash or, at the investor’s option, shares of common stock of the Company. At the option of the 2020 Note Investors, they may at any time convert the 2020 Notes. The number of shares delivered shall be equal to 150% of the amount of the principal converted divided by the conversion price of $0.20 per share. The Company may require that the 2020 Note Investors convert all or a portion of the 2020 Notes, if the Company’s volume weighted average price for any preceding 20-day period is equal to or greater than $0.30. The 2020 Note Investors are entitled to nominate, and the Company will not unreasonably reject the appointment of a new member to the Company’s Board of Directors. The Company and the holders of the 8% Notes and the Promissory Note in the principal amount of $2,000,000 the principal and accrued but unpaid interest under the 2020 Notes, 8% Notes and Stern Note is paid in full or converted pursuant to their terms, the Company’s obligations under the 2020 Notes, 8% Notes and Stern Note will be secured by a lien on all assets of the Company. The security interest granted to the holders of the 2020 Notes, 8% Notes and Stern Note ranks pari passu Further, the Company and the Stern Trust entered an Amended and Restated Promissory Note (the “Restated Stern Note”) providing that the $2,000,000 principal of the Stern Note will be due and payable on the same terms (bearing interest at 15% per annum) and on the same maturity date as the 2020 Notes. The interest due under the Stern Note as of January 31, 2020 in the amount of $662,000 has been capitalized and will earn interest at 10% per annum, which at the election of the Stern Trust can be paid in shares of common stock at a conversion price of $0.20 and the maturity of such interest shall be extended to the same maturity date as the 2020 Notes. In connection with this private offering, the Company paid Network 1 Financial Securities, Inc., a registered broker-dealer, a cash fee of approximately $104,800. During the quarter ended March 31, 2021, convertible notes totaling $120,000 and a portion of their accrued interest at the option of the noteholders were converted into approximately 989,000 shares of common stock of the Company. The following is a summary of the convertible notes payable outstanding at March 31, 2021: 8% convertible notes payable issued December 2019 $ 383,000 15% convertible notes payable issued February 2020 5,190,000 10% convertible notes payable issued February 2020 662,000 Unamortized discount on convertible notes (376,876 ) Unamortized debt issuance costs (45,474 ) $ 5,812,650 Future maturities of convertible notes payable are as follows: 2021 $ - 2022 6,235,000 $ 6,235,000 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 8 – RELATED PARTY TRANSACTIONS Convertible Notes Payable Theodore Stern and Philip Beck, members of the board of directors of the Company at that time, invested $50,000 each in consideration of the 2020 Notes. Another director, Herbert Selzer invested $100,000 in consideration of a 2020 Note in the principal amount of $100,000. See Note 7 Further, the Company and the Stern Trust entered the Restated Stern Note providing that the $2,000,000 principal of the Stern Note will be due and payable on the same terms (bearing interest at 15% per annum) and on the same maturity date as the 2020 Notes and subject to the same Security Agreement and that the interest due under the Stern Note as of January 31, 2020 in the amount of $662,000 will remain due and payable on the same terms as exist in the Stern Note prior to modification provided that the maturity of such interest shall be extended to the same maturity date as the 2020 Notes. The Restated Stern Note includes a 50% repayment premium. Mr. Stern, the Trustee of the Stern Trust also entered into the Security Agreement as one of the joint collateral agents. Issuance of Common Stock During the quarter ended March 31, 2020, the Company granted 1,500,000 shares of Restricted Common Stock to each of Phillip Kumnick and Philip Broenniman, new members of our Board of Directors, in connection with their compensation for service as Board Members. The restricted stock vests upon the achievement of certain performance criteria. The performance criteria have not been met as of March 31, 2020. Other In connection with the offering of the 2020 Notes, the Company paid Network 1 Financial Securities, Inc., a registered broker-dealer (“Network 1”), a cash fee of approximately $104,800. A former member of the Company’s Board of Directors maintains a partnership with a principal of Network 1. |
Stockholder's Equity
Stockholder's Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDER'S EQUITY | NOTE 9 STOCKHOLDER’S EQUITY Common Stock During the quarter ended March 31, 2021, shares of common stock were issued as a result of the following non-cash transactions: ● Convertible notes totaling $120,000 and a portion of their accrued interest at the option of the noteholders were converted into approximately 989,000 shares of common stock of the Company. ● Certain warrant and stock option holders exercised their respective warrants and stock options by means of the cashless exercise feature and were issued approximately 13,226,000 common shares of the Company. During the quarter ended March 31, 2020, shares of common stock were issued as a result of the following transactions: ● The Company granted 4,500,000 shares of Restricted Common Stock of which 3,000,000 shares were granted to two new members of our Board of Directors in connection with their compensation for service as Board Members and 1,500,000 shares to an employee in connection with his employment compensation. The shares were valued at the fair market value at the date of grant. The restricted stock vests upon the achievement of certain performance criteria. ● The Company issued approximately 106,000 shares of common stock to a third-party provider of services in lieu of cash compensation. Warrants The following is a summary of the Company’s warrant activity for the three months ended March 31, 2021: Number of Weighted Weighted Outstanding at December 31, 2020 54,697,021 $ 0.14 3.4 Years Exercised/cancelled (12,357,786 ) 0.10 - Outstanding at March 31, 2021 42,339,235 $ 0.15 4.0 Years Stock Options The Company did not grant any stock options in the first quarter of 2021. Activity related to stock options for the three months ended March 31, 2021 is summarized as follows: Weighted Weighted Aggregate Number of Exercise Contractual Intrinsic Shares Price Term (Yrs.) Value Outstanding as of December 31, 2020 169,374,061 $ 0.15 7.5 $ 8,283,639 Granted - - - - Exercised/cancelled (7,068,667 ) 0.05 Outstanding as of March 31, 2021 162,305,394 0.15 7.2 $ 29,442,247 Exercisable as of March 31, 2021 123,108,727 $ 0.18 6.7 $ 20,362,319 The following table summarizes stock option information as of March 31, 2021: Exercise Price Outstanding Weighted Average Exercisable $ 0.0001 3,500,000 5.3 3,500,000 0.05 26,700,006 6.2 23,950,006 0.06 1,042,054 9.2 1,042,054 0.07 50,000,000 9.2 26,000,000 0.09 11,630,000 9.5 - 0.10 27,200,000 6.3 27,200,000 0.12 933,334 8.5 616,667 0.13 250,000 7.4 250,000 0.15 2,800,000 5.4 2,800,000 0.22 2,583,333 7.6 2,083,333 0.25 2,500,000 7.4 2,500,000 0.26 166,667 7.9 166,667 0.29 1,000,000 6.9 1,000,000 0.40 1,000,000 5.7 1,000,000 0.45 31,000,000 5.4 31,000,000 162,305,394 7.2 123,108,727 During the three months ended March 31, 2021, the Company recognized approximately $614,000 of stock option based compensation expense of which approximately $452,000 relates to performance-based awards of director/officers. As of March 31, 2021, there was approximately $1,154,000 of unrecognized compensation costs related to stock options outstanding that will be expensed through 2023. Additionally, the Company recorded approximately $13,000 for restricted stock expense. At the Annual Meeting of Stockholders held on March 22, 2021, the stockholders approved and ratified an increase of 75,000,000 shares of common stock allocated to the Company’s 2017 Incentive Stock Plan. Subsequent event On May 5, 2021, the Company granted options to acquire shares of common stock (“Stock Options”) at an exercise price equivalent to fair market value on the date of grant with an exercise period of ten years, as follows: ● 17,500,000 Stock Options to each of Mr. Kumnick and Mr. Broenniman subject to tranche vesting upon achieving certain corporate performance measures. ● 11,500,000 Stock Options to certain officers and employees that vest over a three-year period, subject to continued service. ● Approximately 2,700,000 fully vested Stock Options for present and former non-employees Directors compensation for services from 2019 through April 30, 2021. ● Approximately 1,300,000 Stock Options to two present non-employee Director that vest over a twelve-month period. See Note 5 for additional information regarding accrued Directors’ compensation. |
Direct Financing Lease
Direct Financing Lease | 3 Months Ended |
Mar. 31, 2021 | |
Direct Financing Lease [Abstract] | |
DIRECT FINANCING LEASE | NOTE 10 – DIRECT FINANCING LEASE The Company and an entity in Colombia entered into a rental contract for the rental of 78 kiosks to provide cash collection and fare services at transportation stations. The lease term began in May 2016 when the kiosk was installed and operational and when the lease commenced. The term of the rental contract is ten years at an approximate monthly rental of $11,900. The lease has the option at the end of the lease term to purchase each unit for approximately $40. The term of the lease approximates the expected economic life of the kiosks. The lease was accounted for as a direct financing lease. The Company has recorded the transaction as its net investment in the lease and will receive monthly payments of $11,856 before estimated executory costs, or $142,272, annually, to reduce investment in the lease and record income associated with the related amount due. Executory costs are estimated to be $1,677 per month and initial direct costs are not considered significant. The transaction resulted in incremental revenue in the quarter ended March 31, 2021 of approximately $13,000. The equipment is subject to a direct lease valued at approximately $748,000. At the inception of the lease term, the aggregate minimum future lease payments to be received is approximately $1,422,000 before executory cost. Unearned income recorded at the inception of this lease was approximately $474,000 and will be recorded over the term of the lease using the effective income rate method. Future minimum lease payments to be received under the lease for the next five years and thereafter are as follows: Year ending December 31 Remainder of 2021 91,611 2022 122,148 2023 122,148 2024 122,148 2025 122,148 Thereafter 40,716 Sub-total 620,919 Less deferred revenue (143,666 ) Net investment in lease $ 477,253 |
Lease Obligation Payable
Lease Obligation Payable | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
LEASE OBLIGATION PAYABLE | NOTE 11 – LEASE OBLIGATION PAYABLE The Company entered into a lease in March 2017 for the rental of its printer for its secured plastic and credential card products business under an arrangement that is classified as a finance lease. The leased equipment is amortized on a straight-line basis over its lease term including the last payment (61 payments) which would transfer ownership to the Company. The cost basis of the lease equipment is $163,407 and the accumulated amortization as of March 31, 2021 is $131,261. The following is a schedule showing the future minimum lease payments under finance lease by year and the present value of the minimum lease payments as of March 31, 2021. The interest rate related to the lease obligation is 12% and the maturity date is March 31, 2022. Year ending December 31 2021 $ 32,322 2022 10,774 Total minimum lease payments 43,096 Less: Amount representing interest (2,675 ) Present value of minimum lease payments $ 40,421 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 12 – COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, the Company is a party to various legal or administrative proceedings arising in the ordinary course of our business. While any litigation contains an element of uncertainty, we have no reason to believe the outcome of such proceedings will have a material adverse effect on the financial condition or results of operations of the Company. Leases For the three months ended March 31, 2021, lease expense was approximately $63,000 inclusive of short-term leases. The lease related balances included in the Condensed Consolidated Balance Sheet as of March 31, 2021 were as follows: Assets: Current portion of operating lease ROU assets - included in other current assets $ 63,325 Operating lease ROU assets – included in Other Assets $ 44,489 Total operating lease assets $ 107,814 Liabilities: Current portion of ROU liabilities – included in Accounts payable and accrued expenses $ 52,858 Long-term portion of ROU liabilities – included in Other liabilities 59,506 Total operating lease liabilities $ 112,364 The weighted average lease term is 1.8 years and weighted average discount rate used in the calculations were 13.55%. The following table presents the maturity of the Company’s operating lease liabilities as of March 31, 2021: Remainder of 2021 $ 72,455 2022 49,716 Total operating lease payments 122,171 Less: Imputed interest (9,807 ) Total operating lease liabilities $ 112,364 The Company rents office space in Long Beach, New York at a monthly cost of $2,500. The agreement is month to month and can be terminated on 30 days’ notice. The agreement is between the Company and Bridgeworks LLC, an entity principally owned by Mr. Beck, our former CEO and Board Member along with his family. The Company leases an office location in Bogota, Colombia. In April 2017, MultiPay S.A.S. entered an office lease beginning April 22, 2017. The lease cost is approximately $8,500 per month with an inflation adjustment after one year. The lease is automatically extended for one additional year unless written notice to the contrary is provided at least six months in advance. Multipay extended the lease through April 2021. In April 2021, Multipay entered into a six-month lease for a monthly rental of approximately $1,375. The Company also leases space for its operation in South Africa. The current lease is through June 30, 2022 and the approximate monthly rent is $8,000. |
Impairment Loss
Impairment Loss | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
IMPAIRMENT LOSS | NOTE 13 – IMPAIRMENT LOSS Goodwill is recorded when the purchase price paid for an acquisition exceeds the fair value of net identified tangible and intangible assets acquired. The Company performs an annual impairment test of goodwill and further periodic tests to the extent indicators of impairment develop between annual impairment tests. The Company’s impairment review process compares the fair value of the reporting unit to its carrying value, including the goodwill related to the reporting unit utilizing qualitative considerations. To determine the fair value of the reporting unit, the Company may use various approaches including an asset or cost approach, market approach or income approach or any combination thereof. These approaches may require the Company to make certain estimates and assumptions including future cash flows, revenue and expenses. These estimates and assumptions are reviewed each time the Company tests goodwill for impairment and are typically developed as part of the Company’s routine business planning and forecasting process. While the Company believes its estimates and assumptions are reasonable, variations from those estimates could produce materially different results. During the quarter ended March 31, 2020, the Company recorded an impairment loss of approximately $0.9 million, associated with goodwill at Cards Plus as the carrying value may not be recovered as revenue assumptions and related profitability were revised downward. The Company reviews its projections as a result of the current pandemic and its potential impact on future results. The fair value of the reporting unit was determined using a discounted cash flow analysis. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 14 – SEGMENT INFORMATION General information The segment and geographic information provided in the table below is being reported consistent with the Company’s method of internal reporting. Operating segments are defined as components of an enterprise for which separate financial information is available and which is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The CODM regularly reviews net revenue and gross profit by geographic regions. The Company’s products and services operate in two reportable segments; identity management and payment processing. Information about revenue, profit/loss and assets The CODM evaluates performance and allocates resources based on net revenue and operating results of the geographic region as the current operations of each geography are either primarily identity management or payment processing. Identity management revenue is generated in North America and Africa and payment processing revenue is earned in South America which are the three geographic regions of the Company. We have included the lease income in payment processing as the leases are related to unattended ticketing kiosks. Long lived assets are in North America, South America and Africa. Most assets are intangible assets recorded from the acquisition of MultiPay (South America) in 2015 and FIN Holdings (North America and Africa) in 2016. Assets for North America, South America and Africa amounted to approximately $7.3 million, $0.7 million and $1.3 million. Analysis of revenue by segment and geographic region and reconciliation to consolidated revenue, gross profit, and net loss are provided below. The Company has included in the schedule below an allocation of corporate overhead based on management’s estimate of resource requirements. (unaudited) March 31, March 31, Net Revenues: North America $ 148,060 $ 133,554 South America 96,183 113,624 Africa 344,756 546,611 588,999 793,789 Identity Management 492,816 680,165 Payment Processing 96,183 113,624 588,999 793,789 Loss From Operations: North America (1,270,403 ) (407,392 ) South America (731,688 ) (1,212,152 ) Africa (184,819 ) (1,053,064 ) (2,186,910 ) (2,672,608 ) Identity Management (1,455,222 ) (1,460,456 ) Payment Processing (731,688 ) (1,212,152 ) (2,186,910 ) (2,672,608 ) Interest Expense (297,438 ) (179,050 ) Other income/(expense) 1,537 (975,889 ) Loss before income taxes (2,482,811 ) (3,827,547 ) Income tax expense (7,188 ) (8,874 ) Net loss $ (2,489,999 ) $ (3,836,421 ) |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of potentially dilutive securities | Security 2021 2020 Convertible notes payable 34,047,500 35,476,705 Warrants 42,339,235 47,453,227 Stock options 162,305,394 109,823,340 238,692,129 192,753,272 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | March 31, December 31, Property and equipment $ 297,839 $ 297,839 Equipment under finance lease (see Note 10) 163,407 163,407 461,246 461,246 Less Accumulated depreciation (373,111 ) (363,417 ) Property and equipment, net $ 88,135 $ 97,829 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Assets [Abstract] | |
Schedule of other assets | March 31, December 31, Operating lease right of use assets $ 44,489 $ 49,856 Other 176,889 190,367 $ 221,378 $ 240,223 |
Intangible Assets, Net (Other_2
Intangible Assets, Net (Other Than Goodwill) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets, net (other than goodwill) | Customer Acquired and Intellectual Patents Total Useful Lives 10 Years 5 Years 10 Years N/A Carrying Value at December 31, 2020 $ 811,303 $ 3,171,394 $ 416,471 $ 128,308 $ 4,527,476 Additions - - - 4,424 4,424 Amortization (41,196 ) (233,220 ) (20,351 ) (3,328 ) (298,095 ) Carrying Value at March 31, 2021 $ 770,107 $ 2,938,174 $ 396,120 $ 129,404 $ 4,233,805 Customer Acquired and Intellectual Patents Total Cost $ 1,587,159 $ 4,476,271 $ 828,580 $ 136,022 $ 7,028,032 Accumulated amortization (817,052 ) (1,538,097 ) (432,460 ) (6,618 ) (2,794,227 ) Carrying Value at March 31, 2021 $ 770,107 $ 2,938,174 $ 396,120 $ 129,404 $ 4,233,805 |
Schedule of future amortization expense of intangible assets | Fiscal Year Ending December 31, Remainder of 2021 $ 1,162,977 2022 1,092,977 2023 1,007,995 2024 662,007 2025 246,454 Thereafter 61,395 $ 4,233,805 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable and accrued expenses | March 31, December 31, Trade payables $ 183,450 $ 311,024 Accrued interest 704,624 554,755 Accrued payroll and related obligations 799,377 891,790 Current portion of operating lease liabilities 52,858 117,414 Other* 797,152 790,149 Total $ 2,537,461 $ 2,665,132 * Included in Other expenses is accrued non-employee Directors’ Compensation of approximately $392,000 and $349,000 as of March 31, 2021 and December 31, 2020, respectively. In May 2021, the Non-employee Directors were compensated for their service through a grant of stock options. See Note 9. |
Notes Payable, Net (Tables)
Notes Payable, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Payable [Abstract] | |
Schedule of notes payable | March 31, December 31, Paycheck Protection Program Loans $ 971,520 485,760 Installment loan payable related to a vehicle acquisition payable in monthly payments of $539 per month at an interest rate of 10.8% per annum payable for 36 months 6,098 7,526 Notes Payable, Net $ 977,618 $ 493,286 Notes Payable, current portion, $ 6,098 $ 5,947 Notes Payable, net of current portion 971,520 487,339 $ 977,618 $ 493,286 |
Convertible Notes Payable (Tabl
Convertible Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of convertible notes payable outstanding | 8% convertible notes payable issued December 2019 $ 383,000 15% convertible notes payable issued February 2020 5,190,000 10% convertible notes payable issued February 2020 662,000 Unamortized discount on convertible notes (376,876 ) Unamortized debt issuance costs (45,474 ) $ 5,812,650 |
Schedule of future maturities of convertible debt | 2021 $ - 2022 6,235,000 $ 6,235,000 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of warrant activity | Number of Weighted Weighted Outstanding at December 31, 2020 54,697,021 $ 0.14 3.4 Years Exercised/cancelled (12,357,786 ) 0.10 - Outstanding at March 31, 2021 42,339,235 $ 0.15 4.0 Years |
Schedule of outstanding stock options | Weighted Weighted Aggregate Number of Exercise Contractual Intrinsic Shares Price Term (Yrs.) Value Outstanding as of December 31, 2020 169,374,061 $ 0.15 7.5 $ 8,283,639 Granted - - - - Exercised/cancelled (7,068,667 ) 0.05 Outstanding as of March 31, 2021 162,305,394 0.15 7.2 $ 29,442,247 Exercisable as of March 31, 2021 123,108,727 $ 0.18 6.7 $ 20,362,319 |
Schedule of stock option | Exercise Price Outstanding Weighted Average Exercisable $ 0.0001 3,500,000 5.3 3,500,000 0.05 26,700,006 6.2 23,950,006 0.06 1,042,054 9.2 1,042,054 0.07 50,000,000 9.2 26,000,000 0.09 11,630,000 9.5 - 0.10 27,200,000 6.3 27,200,000 0.12 933,334 8.5 616,667 0.13 250,000 7.4 250,000 0.15 2,800,000 5.4 2,800,000 0.22 2,583,333 7.6 2,083,333 0.25 2,500,000 7.4 2,500,000 0.26 166,667 7.9 166,667 0.29 1,000,000 6.9 1,000,000 0.40 1,000,000 5.7 1,000,000 0.45 31,000,000 5.4 31,000,000 162,305,394 7.2 123,108,727 |
Direct Financing Lease (Tables)
Direct Financing Lease (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Direct Financing Lease [Abstract] | |
Schedule of future minimum lease payments to be received | Year ending December 31 Remainder of 2021 91,611 2022 122,148 2023 122,148 2024 122,148 2025 122,148 Thereafter 40,716 Sub-total 620,919 Less deferred revenue (143,666 ) Net investment in lease $ 477,253 |
Lease Obligation Payable (Table
Lease Obligation Payable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of lease obligation payable | Year ending December 31 2021 $ 32,322 2022 10,774 Total minimum lease payments 43,096 Less: Amount representing interest (2,675 ) Present value of minimum lease payments $ 40,421 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of related lease balance | Assets: Current portion of operating lease ROU assets - included in other current assets $ 63,325 Operating lease ROU assets – included in Other Assets $ 44,489 Total operating lease assets $ 107,814 Liabilities: Current portion of ROU liabilities – included in Accounts payable and accrued expenses $ 52,858 Long-term portion of ROU liabilities – included in Other liabilities 59,506 Total operating lease liabilities $ 112,364 |
Schedule of future minimum lease payments required under convertible operating leases | Remainder of 2021 $ 72,455 2022 49,716 Total operating lease payments 122,171 Less: Imputed interest (9,807 ) Total operating lease liabilities $ 112,364 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of geographic region and reconciliation to consolidated revenue, gross profit, and net loss | (unaudited) March 31, March 31, Net Revenues: North America $ 148,060 $ 133,554 South America 96,183 113,624 Africa 344,756 546,611 588,999 793,789 Identity Management 492,816 680,165 Payment Processing 96,183 113,624 588,999 793,789 Loss From Operations: North America (1,270,403 ) (407,392 ) South America (731,688 ) (1,212,152 ) Africa (184,819 ) (1,053,064 ) (2,186,910 ) (2,672,608 ) Identity Management (1,455,222 ) (1,460,456 ) Payment Processing (731,688 ) (1,212,152 ) (2,186,910 ) (2,672,608 ) Interest Expense (297,438 ) (179,050 ) Other income/(expense) 1,537 (975,889 ) Loss before income taxes (2,482,811 ) (3,827,547 ) Income tax expense (7,188 ) (8,874 ) Net loss $ (2,489,999 ) $ (3,836,421 ) |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Oct. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jan. 31, 2021 | |
Basis of Presentation (Details) [Line Items] | |||||
Accumulated deficit | $ 100,700,000 | ||||
Revenue | 588,999 | $ 793,789 | |||
Loss from operations | (2,186,910) | $ (2,672,608) | |||
Loans receivable | $ 486,000 | ||||
Inventory valuation allowance | 18,000 | $ 18,000 | |||
Cards Plus | 24,000 | 88,000 | |||
Deferred revenue contract liability | 530,000 | 150,000 | |||
Contract liability | $ 533,000 | $ 150,000 | |||
Securities Purchase Agreements [Member] | |||||
Basis of Presentation (Details) [Line Items] | |||||
Number of common stock purchased, shares (in Shares) | 52,435,000 | ||||
Securities Purchase Agreements [Member] | Warrant [Member] | |||||
Basis of Presentation (Details) [Line Items] | |||||
Number of common stock purchased, shares (in Shares) | 26,217,500 | ||||
Term Of Warrant | 5 years | ||||
Warrant exercise price (in Dollars per share) | $ 0.15 | ||||
Aggregate purchase price (in Dollars per share) | $ 5,240,000 |
Basis of Presentation (Detail_2
Basis of Presentation (Details) - Schedule of potentially dilutive securities - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Basis of Presentation (Details) - Schedule of potentially dilutive securities [Line Items] | ||
Number of shares | 238,692,129 | 192,753,272 |
Convertible Notes Payable [Member] | ||
Basis of Presentation (Details) - Schedule of potentially dilutive securities [Line Items] | ||
Number of shares | 34,047,500 | 35,476,705 |
Warrant [Member] | ||
Basis of Presentation (Details) - Schedule of potentially dilutive securities [Line Items] | ||
Number of shares | 42,339,235 | 47,453,227 |
Stock options [Member] | ||
Basis of Presentation (Details) - Schedule of potentially dilutive securities [Line Items] | ||
Number of shares | 162,305,394 | 109,823,340 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 11,734 | $ 14,525 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 461,246 | $ 461,246 |
Less Accumulated depreciation | (373,111) | (363,417) |
Property and equipment, net | 88,135 | 97,829 |
Property and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 297,839 | 297,839 |
Equipment under finance lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 163,407 | $ 163,407 |
Other Assets (Details) - Schedu
Other Assets (Details) - Schedule of other assets - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of other assets [Abstract] | ||
Operating lease right of use assets | $ 44,489 | $ 49,856 |
Other | 176,889 | 190,367 |
Total other assets | $ 221,378 | $ 240,223 |
Intangible Assets, Net (Other_3
Intangible Assets, Net (Other Than Goodwill) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 298,095 | $ 289,686 |
Intangible Assets, Net (Other_4
Intangible Assets, Net (Other Than Goodwill) (Details) - Schedule of intangible assets, net (other than goodwill) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Carrying Value at beginning | $ 4,527,476 |
Additions | 4,424 |
Amortization | (298,095) |
Carrying Value at ending | 4,233,805 |
Cost | 7,028,032 |
Accumulated amortization | $ (2,794,227) |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Lives | 10 years |
Carrying Value at beginning | $ 811,303 |
Additions | |
Amortization | (41,196) |
Carrying Value at ending | 770,107 |
Cost | 1,587,159 |
Accumulated amortization | $ (817,052) |
Acquired And Developed Software [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Lives | 5 years |
Carrying Value at beginning | $ 3,171,394 |
Additions | |
Amortization | (233,220) |
Carrying Value at ending | 2,938,174 |
Cost | 4,476,271 |
Accumulated amortization | $ (1,538,097) |
Intellectual Property [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Lives | 10 years |
Carrying Value at beginning | $ 416,471 |
Additions | |
Amortization | (20,351) |
Carrying Value at ending | 396,120 |
Cost | 828,580 |
Accumulated amortization | $ (432,460) |
Patents [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Lives | |
Carrying Value at beginning | $ 128,308 |
Additions | 4,424 |
Amortization | (3,328) |
Carrying Value at ending | 129,404 |
Cost | 136,022 |
Accumulated amortization | $ (6,618) |
Intangible Assets, Net (Other_5
Intangible Assets, Net (Other Than Goodwill) (Details) - Schedule of future amortization expense of intangible assets - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of future amortization expense of intangible assets [Abstract] | ||
Remainder of 2021 | $ 1,162,977 | |
2022 | 1,092,977 | |
2023 | 1,007,995 | |
2024 | 662,007 | |
2025 | 246,454 | |
Thereafter | 61,395 | |
Total | $ 4,233,805 | $ 4,527,476 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accounts payable and accrued expenses | $ 392,000 | $ 349,000 |
Accounts Payable and Accrued _4
Accounts Payable and Accrued Expenses (Details) - Schedule of accounts payable and accrued expenses - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | ||
Schedule of accounts payable and accrued expenses [Abstract] | |||
Trade payables | $ 183,450 | $ 311,024 | |
Accrued interest | 704,624 | 554,755 | |
Accrued payroll and related obligations | 799,377 | 891,790 | |
Current portion of operating lease liabilities | 52,858 | 117,414 | |
Other | [1] | 797,152 | 790,149 |
Total | $ 2,537,461 | $ 2,665,132 | |
[1] | Included in Other expenses is accrued non-employee Directors’ Compensation of approximately $392,000 and $349,000 as of March 31, 2021 and December 31, 2020, respectively. In May 2021, the Non-employee Directors were compensated for their service through a grant of stock options. See Note 9. |
Notes Payable, Net (Details)
Notes Payable, Net (Details) - Senior Unsecured Note [Member] - USD ($) | 1 Months Ended | |
Jan. 31, 2021 | May 31, 2020 | |
Notes Payable, Net (Details) [Line Items] | ||
Loan amount | $ 486,000 | $ 486,000 |
Maturity date | Jan. 31, 2023 | May 5, 2022 |
Interest rate | 1.00% | 1.00% |
Notes Payable, Net (Details) -
Notes Payable, Net (Details) - Schedule of notes payable - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of notes payable [Abstract] | ||
Paycheck Protection Program Loans | $ 971,520 | $ 485,760 |
Installment loan payable related to a vehicle acquisition payable in monthly payments of $539 per month at an interest rate of 10.8% per annum payable for 36 months | 6,098 | 7,526 |
Notes Payable, Net | 977,618 | 493,286 |
Notes Payable, current portion, | 6,098 | 5,947 |
Notes Payable, net of current portion | 971,520 | 487,339 |
Total | $ 977,618 | $ 493,286 |
Notes Payable, Net (Details) _2
Notes Payable, Net (Details) - Schedule of notes payable (Parentheticals) - Vehicle [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Notes Payable, Net (Details) - Schedule of notes payable (Parentheticals) [Line Items] | ||
Monthly payments | $ 539 | $ 539 |
Interest rate | 10.80% | 10.80% |
Debt term | 36 months | 36 months |
Convertible Notes Payable (Deta
Convertible Notes Payable (Details) - USD ($) | Dec. 13, 2019 | Feb. 29, 2020 | Feb. 14, 2020 | Mar. 31, 2021 |
Convertible Notes Payable (Details) [Line Items] | ||||
Interest rate | 15.00% | 15.00% | ||
Amendment agreement, description | the Company and the holders of the 8% Notes entered into an amendment agreement pursuant to which the principal and interest due under the 8% Notes will remain due and payable on the same terms as exist in the 8% Notes prior to modification, that the maturity shall be extended to the same maturity date as the 2020 Notes, namely February 28, 2022, and the 8% Notes became a secured obligation of the Company. | the Company’s subsidiaries, entered into a security agreement with the 2020 Note Investors (“Security Agreement”), the holders of the 8% Notes and the Stern Trust, which is the holder of the Promissory Note in the principal amount of $2,000,000 (the “Stern Note”). The Security Agreement provides that until the principal and accrued but unpaid interest under the 2020 Notes, 8% Notes and Stern Note is paid in full or converted pursuant to their terms, the Company’s obligations under the 2020 Notes, 8% Notes and Stern Note will be secured by a lien on all assets of the Company. The security interest granted to the holders of the 2020 Notes, 8% Notes and Stern Note ranks pari passu. The Security Agreement permits sales of assets up to a value of $1,000,000 which proceeds may be used for working capital purposes and the secured parties will take such steps as may be reasonably necessary to release its security interest and enable such sales in such circumstances. Each of the secured parties appointed Mr. Stern and a third-party investor as joint collateral agents. Mr. Stern, a director of the Company, is the trustee of the Stern Trust. Further, the Company and the Stern Trust entered an Amended and Restated Promissory Note (the “Restated Stern Note”) providing that the $2,000,000 principal of the Stern Note will be due and payable on the same terms (bearing interest at 15% per annum) and on the same maturity date as the 2020 Notes. The interest due under the Stern Note as of January 31, 2020 in the amount of $662,000 has been capitalized and will earn interest at 10% per annum, which at the election of the Stern Trust can be paid in shares of common stock at a conversion price of $0.20 and the maturity of such interest shall be extended to the same maturity date as the 2020 Notes. | ||
Aggregate amount | $ 1,510,000 | |||
Principal prepaid amount | 150.00% | |||
Required to pay | 150.00% | |||
Conversion price per share (in Dollars per share) | $ 0.20 | |||
Weighted average price, description | if the Company’s volume weighted average price for any preceding 20-day period is equal to or greater than $0.30. | |||
Cash fee of approximately | $ 104,800 | |||
Conversion of stock, shares converted (in Shares) | 989,000 | |||
Convertible Debt [Member] | ||||
Convertible Notes Payable (Details) [Line Items] | ||||
Convertible notes aggregate amount | $ 120,000 | |||
Investor [Member] | ||||
Convertible Notes Payable (Details) [Line Items] | ||||
Interest rate | 8.00% | |||
Convertible notes aggregate amount | $ 428,000 | |||
Notes maturity date | Nov. 30, 2021 | |||
Convertible note description | The Company can prepay all or a portion of the 8% Notes at any time. The Company shall pay any interest on the 8% Notes at the rate of 8.0% per annum payable at the earlier of the maturity date or conversion date, in cash or, at the holder’s option, shares of common stock of the Company. At the option of the 8% Note investors, all or a portion of the 8% Notes may be converted into shares of common stock of the Company at a conversion price of $0.08 per share. If the holders of the 8% Notes owning outstanding 8.0% Notes representing in excess of half of the aggregate outstanding principal amount of all 8% Notes provide notice to the Company of their intent to convert their 8% Notes, then all 8% Notes plus unpaid interest and other amounts owing to each of the holders shall be automatically converted. | |||
Philip D. Beck [Member] | ||||
Convertible Notes Payable (Details) [Line Items] | ||||
Consideration amount | 50,000 | |||
Principal amount | 50,000 | |||
Theodore Stern [Member] | ||||
Convertible Notes Payable (Details) [Line Items] | ||||
Consideration amount | 50,000 | |||
Principal amount | 50,000 | |||
Herbert Selzer [Member] | ||||
Convertible Notes Payable (Details) [Line Items] | ||||
Consideration amount | 100,000 | |||
Principal amount | 100,000 | |||
Mr. Selzer [Member] | ||||
Convertible Notes Payable (Details) [Line Items] | ||||
Principal amount | $ 50,000 |
Convertible Notes Payable (De_2
Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding | Mar. 31, 2021USD ($) |
Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding [Line Items] | |
Convertible notes payable | $ 5,812,650 |
Unamortized discount on convertible notes | (376,876) |
Unamortized debt issuance costs | (45,474) |
8% convertible notes payable issued December 2019 [Member] | |
Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding [Line Items] | |
Convertible notes payable | 383,000 |
15% convertible notes payable issued February 2020 [Member] | |
Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding [Line Items] | |
Convertible notes payable | 5,190,000 |
10% convertible notes payable issued February 2020 [Member] | |
Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding [Line Items] | |
Convertible notes payable | $ 662,000 |
Convertible Notes Payable (De_3
Convertible Notes Payable (Details) - Schedule of future maturities of convertible debt | Mar. 31, 2021USD ($) |
Schedule of future maturities of convertible debt [Abstract] | |
2021 | |
2022 | 6,235,000 |
Total convertible notes payable | $ 6,235,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Jan. 31, 2020 | |
Related Party Transactions (Details) [Line Items] | |||
Principal amount | $ 100,000 | ||
Remain due and payable amount | 5,812,650 | ||
Network 1 Financial Securities Inc [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Cash fee | 104,800 | ||
Theodore Stern and Philip Beck [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Invested in consideration | 50,000 | ||
Herbert Selzer [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Invested in consideration | 100,000 | ||
Stern Trust [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Principal amount | $ 2,000,000 | ||
Bearing interest rate | 15.00% | ||
Remain due and payable amount | $ 662,000 | ||
Repayment premium | 50.00% | ||
Phillip Kumnick [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Restricted common stock (in Shares) | 1,500,000 | ||
Philip Broenniman [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Restricted common stock (in Shares) | 1,500,000 |
Stockholder's Equity (Details)
Stockholder's Equity (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
May 05, 2021 | Mar. 31, 2021USD ($)shares | Mar. 31, 2020USD ($)shares | Dec. 31, 2020 | Mar. 22, 2021shares | |
Stockholder's Equity (Details) [Line Items] | |||||
Number of common shares issued for convertible notes, amount (in Dollars) | $ | $ 120,000 | ||||
Number of common shares issued for convertible notes, shares | 989,000 | ||||
Common stock issued for warrants exercised | 13,226,000 | ||||
Number of common shares issued for services, shares | 106,000 | ||||
Stock-based compensation expense (in Dollars) | $ | $ 626,579 | $ 169,110 | |||
Exercise period | 7 years 6 months | ||||
2017 Incentive Stock Plan [Member] | |||||
Stockholder's Equity (Details) [Line Items] | |||||
Increase in shares of common stock | 75,000,000 | ||||
Subsequent Event [Member] | Stock Options [Member] | |||||
Stockholder's Equity (Details) [Line Items] | |||||
Exercise period | 10 years | ||||
Stock options, description | ●17,500,000 Stock Options to each of Mr. Kumnick and Mr. Broenniman subject to tranche vesting upon achieving certain corporate performance measures. ●11,500,000 Stock Options to certain officers and employees that vest over a three-year period, subject to continued service. ●Approximately 2,700,000 fully vested Stock Options for present and former non-employees Directors compensation for services from 2019 through April 30, 2021. ●Approximately 1,300,000 Stock Options to two present non-employee Director that vest over a twelve-month period. | ||||
Employment Compensation [Member] | |||||
Stockholder's Equity (Details) [Line Items] | |||||
Number of common shares issued for services, shares | 1,500,000 | ||||
Restricted Common Stock [Member] | |||||
Stockholder's Equity (Details) [Line Items] | |||||
Number of common shares issued for services, shares | 4,500,000 | ||||
Employee Stock Option [Member] | |||||
Stockholder's Equity (Details) [Line Items] | |||||
Stock-based compensation expense (in Dollars) | $ | 614,000 | ||||
Unrecognized compensation costs (in Dollars) | $ | 1,154,000 | ||||
Restricted stock expense (in Dollars) | $ | 13,000 | ||||
Board of Directors [Member] | |||||
Stockholder's Equity (Details) [Line Items] | |||||
Number of common shares issued for services, shares | 3,000,000 | ||||
Number of directors | 2 | ||||
Director/officers [Member] | |||||
Stockholder's Equity (Details) [Line Items] | |||||
Stock-based compensation expense (in Dollars) | $ | $ 452,000 |
Stockholder's Equity (Details)
Stockholder's Equity (Details) - Schedule of warrant activity - Warrant [Member] - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Class of Warrant or Right [Line Items] | ||
Number of Shares, Outstanding balance at beginning | 54,697,021 | |
Weighted Average Exercise Price, Outstanding balance at beginning | $ 0.14 | |
Weighted Average Remaining Life, Outstanding balance at beginning | 3 years 146 days | |
Number of Shares, Exercised/cancelled | (12,357,786) | |
Weighted Average Exercise Price, Exercised/cancelled | $ 0.10 | |
Number of Shares, Outstanding balance at ending | 42,339,235 | |
Weighted Average Exercise Price, Outstanding balance at ending | $ 0.15 | |
Weighted Average Remaining Life, Outstanding balance at ending | 4 years |
Stockholder's Equity (Details_2
Stockholder's Equity (Details) - Schedule of outstanding stock options - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Schedule of outstanding stock options [Abstract] | ||
Number of Shares, Outstanding at beginning | 169,374,061 | |
Weighted Average Exercise Price, Outstanding at beginning | $ 0.15 | |
Weighted Average Contractual Term (Yrs.), Outstanding at beginning | 7 years 6 months | |
Aggregate Intrinsic Value, Outstanding at beginning | $ 8,283,639 | |
Number of Shares, Granted | ||
Weighted Average Exercise Price, Granted | ||
Weighted Average Contractual Term (Yrs.), Granted | ||
Aggregate Intrinsic Value, Granted | ||
Number of Shares, Exercised/cancelled | (7,068,667) | |
Weighted Average Exercise Price, Exercised/cancelled | $ 0.05 | |
Weighted Average Contractual Term (Yrs.), Exercised/cancelled | ||
Aggregate Intrinsic Value, Exercised/cancelled | ||
Number of Shares, Outstanding at ending | 162,305,394 | |
Weighted Average Exercise Price, Outstanding at ending | $ 0.15 | |
Weighted Average Contractual Term (Yrs.), Outstanding at ending | 7 years 73 days | |
Aggregate Intrinsic Value, Outstanding at ending | $ 29,442,247 | |
Number of Shares, Exercisable at ending | 123,108,727 | |
Weighted Average Exercise Price, Exercisable at ending | $ 0.18 | |
Weighted Average Contractual Term (Yrs.), Exercisable at ending | 6 years 255 days | |
Aggregate Intrinsic Value, Exercisable at ending | $ 20,362,319 |
Stockholder's Equity (Details_3
Stockholder's Equity (Details) - Schedule of stock option | 3 Months Ended |
Mar. 31, 2021shares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 162,305,394 |
Weighted Average Contractual Life (Yrs). | 7 years 73 days |
Exercisable | 123,108,727 |
Exercise Price $0.0001 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 3,500,000 |
Weighted Average Contractual Life (Yrs). | 5 years 109 days |
Exercisable | 3,500,000 |
Exercise Price $0.05 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 26,700,006 |
Weighted Average Contractual Life (Yrs). | 6 years 73 days |
Exercisable | 23,950,006 |
Exercise Price $0.06 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 1,042,054 |
Weighted Average Contractual Life (Yrs). | 9 years 73 days |
Exercisable | 1,042,054 |
Exercise Price $0.07 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 50,000,000 |
Weighted Average Contractual Life (Yrs). | 9 years 73 days |
Exercisable | 26,000,000 |
Exercise Price $0.09 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 11,630,000 |
Weighted Average Contractual Life (Yrs). | 9 years 6 months |
Exercisable | |
Exercise Price $0.10 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 27,200,000 |
Weighted Average Contractual Life (Yrs). | 6 years 109 days |
Exercisable | 27,200,000 |
Exercise Price $0.12 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 933,334 |
Weighted Average Contractual Life (Yrs). | 8 years 6 months |
Exercisable | 616,667 |
Exercise Price $0.13 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 250,000 |
Weighted Average Contractual Life (Yrs). | 7 years 146 days |
Exercisable | 250,000 |
Exercise Price $0.15 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 2,800,000 |
Weighted Average Contractual Life (Yrs). | 5 years 146 days |
Exercisable | 2,800,000 |
Exercise Price $0.22 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 2,583,333 |
Weighted Average Contractual Life (Yrs). | 7 years 219 days |
Exercisable | 2,083,333 |
Exercise Price $0.25 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 2,500,000 |
Weighted Average Contractual Life (Yrs). | 7 years 146 days |
Exercisable | 2,500,000 |
Exercise Price $0.26 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 166,667 |
Weighted Average Contractual Life (Yrs). | 7 years 328 days |
Exercisable | 166,667 |
Exercise Price $0.29 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 1,000,000 |
Weighted Average Contractual Life (Yrs). | 6 years 328 days |
Exercisable | 1,000,000 |
Exercise Price $0.40 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 1,000,000 |
Weighted Average Contractual Life (Yrs). | 5 years 255 days |
Exercisable | 1,000,000 |
Exercise Price $0.45 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Outstanding | 31,000,000 |
Weighted Average Contractual Life (Yrs). | 5 years 146 days |
Exercisable | 31,000,000 |
Direct Financing Lease (Details
Direct Financing Lease (Details) - USD ($) | 1 Months Ended | 3 Months Ended |
Sep. 30, 2015 | Mar. 31, 2021 | |
Direct Financing Lease (Details) [Line Items] | ||
Incremental revenue | $ 13,000 | |
Estimated under direct lease | 748,000 | |
Aggregate minimum future lease payments | 1,422,000 | |
Unearned income | $ 474,000 | |
Cash Collection Services (the "Contract") [Member] | ||
Direct Financing Lease (Details) [Line Items] | ||
Lease contract term | 10 years | |
Lease monthly rental | $ 11,900 | |
Purchase price at the end of lease term (in Dollars per share) | $ 40 | |
Receive monthly payments | $ 11,856 | |
Lease rent expense | 142,272 | |
Estimated executory costs | $ 1,677 |
Direct Financing Lease (Detai_2
Direct Financing Lease (Details) - Schedule of future minimum lease payments to be received | Dec. 31, 2021USD ($) |
Schedule of future minimum lease payments to be received [Abstract] | |
Remainder of 2021 | $ 91,611 |
2022 | 122,148 |
2023 | 122,148 |
2024 | 122,148 |
2025 | 122,148 |
Thereafter | 40,716 |
Sub-total | 620,919 |
Less deferred revenue | (143,666) |
Net investment in lease | $ 477,253 |
Lease Obligation Payable (Detai
Lease Obligation Payable (Details) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Leases [Abstract] | |
Lease equipment | $ 163,407 |
Accumulated amortization | $ 131,261 |
Lease obligation interest rate | 12.00% |
Lease Obligation Payable (Det_2
Lease Obligation Payable (Details) - Schedule of lease obligation payable | Mar. 31, 2021USD ($) |
Schedule of lease obligation payable [Abstract] | |
2021 | $ 32,322 |
2022 | 10,774 |
Total minimum lease payments | 43,096 |
Less: Amount representing interest | (2,675) |
Present value of minimum lease payments | $ 40,421 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2017 | Mar. 31, 2021 | |
Commitments and Contingencies (Details) [Line Items] | |||
Short term lease expense | $ 63,000 | ||
Weighted average lease term | 1 year 292 days | ||
Weighted average discount rate | 13.55% | ||
New Office Facilities [Member] | Subsequent Event [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Monthly rental payments | $ 1,375 | ||
Long Beach, New York [Member] | New Office Facilities [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Monthly rental payments | $ 2,500 | ||
Agreement term | 30 years | ||
South Africa [Member] | New Office Facilities [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Monthly rental payments | $ 8,000 | ||
Lease term | Jun. 30, 2022 | ||
MultiPay S.A.S [Member] | COLOMBIA [Member] | New Office Facilities [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Monthly rental payments | $ 8,500 | ||
Agreement term | 1 year | ||
Extended agreement term | 1 year |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of related lease balance | Mar. 31, 2021USD ($) |
Assets: | |
Current portion of operating lease ROU assets - included in other current assets | $ 63,325 |
Operating lease ROU assets – included in Other Assets | 44,489 |
Total operating lease assets | 107,814 |
Liabilities: | |
Current portion of ROU liabilities – included in Accounts payable and accrued expenses | 52,858 |
Long-term portion of ROU liabilities – included in Other liabilities | 59,506 |
Total operating lease liabilities | $ 112,364 |
Commitments and Contingencies_4
Commitments and Contingencies (Details) - Schedule of future minimum lease payments required under convertible operating leases | Mar. 31, 2021USD ($) |
Schedule of future minimum lease payments required under convertible operating leases [Abstract] | |
Remainder of 2021 | $ 72,455 |
2022 | 49,716 |
Total operating lease payments | 122,171 |
Less: Imputed interest | (9,807) |
Total operating lease liabilities | $ 112,364 |
Impairment Loss (Details)
Impairment Loss (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Restructuring and Related Activities [Abstract] | |
Goodwill impairment loss | $ 0.9 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Segment Information (Details) [Line Items] | |
Number of reportable segments | 2 |
North America [Member] | |
Segment Information (Details) [Line Items] | |
Gross long lived assets | $ 7.3 |
South America [Member] | |
Segment Information (Details) [Line Items] | |
Gross long lived assets | 0.7 |
Africa [Member] | |
Segment Information (Details) [Line Items] | |
Gross long lived assets | $ 1.3 |
Segment Information (Details) -
Segment Information (Details) - Schedule of geographic region and reconciliation consolidated revenue, gross profit, and net loss - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Revenues: | ||
Revenues, net | $ 588,999 | $ 793,789 |
Loss From Operations: | ||
Loss From Operations | (2,186,910) | (2,672,608) |
Interest Expense | (297,438) | (179,050) |
Other income/(expense) | 1,537 | (975,889) |
Loss before income taxes | (2,482,811) | (3,827,547) |
Income tax expense | (7,188) | (8,874) |
Net loss | (2,489,999) | (3,836,421) |
North America [Member] | ||
Net Revenues: | ||
Revenues, net | 148,060 | 133,554 |
Loss From Operations: | ||
Loss From Operations | (1,270,403) | (407,392) |
South America [Member] | ||
Net Revenues: | ||
Revenues, net | 96,183 | 113,624 |
Loss From Operations: | ||
Loss From Operations | (731,688) | (1,212,152) |
Africa [Member] | ||
Net Revenues: | ||
Revenues, net | 344,756 | 546,611 |
Loss From Operations: | ||
Loss From Operations | (184,819) | (1,053,064) |
Identity Management [Member] | ||
Net Revenues: | ||
Revenues, net | 492,816 | 680,165 |
Loss From Operations: | ||
Loss From Operations | (1,455,222) | (1,460,456) |
Payment Processing [Member] | ||
Net Revenues: | ||
Revenues, net | 96,183 | 113,624 |
Loss From Operations: | ||
Loss From Operations | $ (731,688) | $ (1,212,152) |