authID (AUID) 10-Q 15 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 10, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Information [Line Items]
Entity Registrant Name	authID Inc.
Entity Central Index Key	0001534154
Entity File Number	001-40747
Entity Tax Identification Number	46-2069547
Entity Incorporation, State or Country Code	DE
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Contact Personnel [Line Items]
Entity Address, Address Line One	1580 North Logan Street
Entity Address, Address Line Two	Suite 660, Unit 51767
Entity Address, City or Town	Denver
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80203
Entity Phone Fax Numbers [Line Items]
City Area Code	516
Local Phone Number	274-8700
Entity Listings [Line Items]
Title of 12(b) Security	Common Stock par value $0.0001 per share
Trading Symbol	AUID
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		9,450,220

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Current Assets:
Cash	$ 7,226,212	$ 10,177,099
Accounts receivable, net	328,782	91,277
Deferred contract costs	160,718	157,300
Other current assets, net	485,598	476,004
Contract assets	49,713
Total current assets	8,251,023	10,901,680
Intangible Assets, net	283,593	327,001
Goodwill	4,183,232	4,183,232
Total assets	12,717,848	15,411,913
Current Liabilities:
Accounts payable and accrued expenses	906,244	1,408,965
Deferred revenue	307,647	131,628
Commission liability	83,200	124,150
Convertible debt, net	228,539
Total current liabilities	1,525,630	1,664,743
Non-current Liabilities:
Convertible debt, net		224,424
Accrued severance liability	325,000	325,000
Total liabilities	1,850,630	2,214,167
Commitments and Contingencies (Note 10)
Stockholders’ Equity:
Common stock, $0.0001 par value, 250,000,000 shares authorized; 9,450,220 shares issued and outstanding as of March 31, 2024 and December 31, 2023	945	945
Additional paid in capital	173,437,683	172,714,712
Accumulated deficit	(162,588,112)	(159,530,535)
Accumulated comprehensive income	16,702	12,624
Total stockholders’ equity	10,867,218	13,197,746
Total liabilities and stockholders’ equity	$ 12,717,848	$ 15,411,913

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	9,450,220	9,450,220
Common stock, shares outstanding	9,450,220	9,450,220

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenues, net	$ 157,378	$ 37,856
Operating Expenses:
General and administrative	2,062,361	822,755
Research and development	1,204,968	120,638
Depreciation and amortization	43,408	76,017
Total operating expenses	3,310,737	1,019,410
Loss from continuing operations	(3,153,359)	(981,554)
Other Income (Expense):
Interest expense, net	(13,138)	(800,073)
Interest income	108,920
Other income (expense), net	95,782	(800,073)
Loss from continuing operations before income taxes	(3,057,577)	(1,781,627)
Income tax expense
Loss from continuing operations	(3,057,577)	(1,781,627)
Loss from discontinued operations		(2,255)
Net loss	$ (3,057,577)	$ (1,783,881)
Net Loss Per Share - Basic and Diluted
Continuing operations, Basic (in Dollars per share)	$ (0.32)	$ (0.56)
Discontinued operations, Basic (in Dollars per share)	$ 0	$ 0
Weighted Average Shares Outstanding - Basic (in Shares)	9,450,220	3,180,538

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Continuing operations, Diluted	$ (0.32)	$ (0.56)
Discontinued operations, Diluted	$ 0	$ 0
Weighted Average Shares Outstanding – Diluted (in Shares)	9,450,220	3,180,538

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net Loss	$ (3,057,577)	$ (1,783,881)
Foreign currency translation gain (loss)	4,078	(24,066)
Comprehensive loss	$ (3,053,499)	$ (1,807,947)

Condensed Consolidated Statem_4

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, 2022	$ 318	$ 140,257,448	$ (140,130,159)	$ 155,929	$ 283,536
Balances (in Shares) at Dec. 31, 2022	3,179,789
Stock-based compensation		(2,598,592)			(2,598,592)
Shares issued in lieu of interest	$ 7	222,420			222,427
Shares issued in lieu of interest (in Shares)	68,186
Net loss			(1,783,881)		(1,783,881)
Foreign currency translation				(24,066)	(24,066)
Balances at Mar. 31, 2023	$ 325	137,881,276	(141,914,040)	131,863	(3,900,576)
Balances (in Shares) at Mar. 31, 2023	3,247,975
Balances at Dec. 31, 2023	$ 945	172,714,712	(159,530,535)	12,624	$ 13,197,746
Balances (in Shares) at Dec. 31, 2023	9,450,220				9,450,220
Stock-based compensation		722,971			$ 722,971
Net loss			(3,057,577)		(3,057,577)
Foreign currency translation				4,078	4,078
Balances at Mar. 31, 2024	$ 945	$ 173,437,683	$ (162,588,112)	$ 16,702	$ 10,867,218
Balances (in Shares) at Mar. 31, 2024	9,450,220				9,450,220

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,057,577)	$ (1,783,881)
Adjustments to reconcile net loss with cash flows from operations:
Stock-based compensation	722,971	(2,598,592)
Depreciation and amortization expense	43,408	76,017
Amortization of debt discounts and issuance costs	4,115	567,287
Non-cash recruiting fees		492,000
Shares issued in lieu of interest		222,427
Other non-cash interest expense		8,250
Changes in operating assets and liabilities:
Accounts receivable	(237,506)	206,419
Deferred contract costs	(44,368)
Other assets	(59,233)	106,600
Accounts payable and accrued expenses	(495,357)	155,371
Deferred revenue	176,019	(7,449)
Other accrued liabilities		325,000
Adjustments relating to discontinued operations		60,494
Net cash flows from operating activities	(2,947,528)	(2,170,057)
CASH FLOWS FROM FINANCING ACTIVITIES:
Credit facility drawdown, net of issuance costs		543,760
Net cash flows from financing activities		543,760
Effect of Foreign Currencies	(3,359)	(22,505)
Net Change in Cash	(2,950,887)	(1,648,802)
Cash, Beginning of the Period	10,177,099	3,237,106
Cash, Beginning of the Period - Discontinued Operations		2,703
Cash, End of the Period - Discontinued Operations		(3,025)
Cash, End of the Period	7,226,212	1,587,982
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	9,023
Cash paid for income taxes - discontinued operations		$ 1,294

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2024
Basis of Presentation [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, 2023. The results of operations for the three months ended March 31, 2024 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 authID Inc. and its wholly-owned subsidiaries MultiPay S.A.S., ID Solutions, Inc., FIN Holdings Inc., Ipsidy Enterprises Limited and authID Gaming Inc. (collectively the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. Going Concern As of March 31, 2024, the Company had an accumulated deficit of approximately $162.6 million. For the three months ended March 31, 2024, the Company earned revenue from continuing operations of approximately $0.16 million, used approximately $2.9 million to fund its operations, and incurred a net loss of approximately $3.1 million. The continuation of the Company as a going concern is dependent upon financial support from the Company’s stockholders and noteholders, the ability of the Company to obtain additional debt or equity 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 acquiring new clients to generate revenues and cash flows. In 2024 and 2025, the Company plans to raise additional funds to support its operations and investments as it seeks to create a sustainable organization. Our growth-oriented business plan to offer products to our customers will require continued capital investment and there is no guarantee that such financing will be available, or available on acceptable terms. There is no assurance that the Company will ever be profitable. 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. As there can be no assurance that the Company will be able to achieve positive cash flows (become cash flow positive) and raise sufficient capital to maintain operations, there is substantial doubt about the Company’s ability to continue as a going concern. Reclassification Certain prior year expenses have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the previously reported loss from continuing operations and management does not believe that this reclassification is material to the consolidated financial statements taken as a whole. Specifically, we reclassified approximately $19,000 in Q1 2023 expenses from research and development expenses to general and administrative expenses. 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, 2024 and 2023 because their effect was antidilutive: Security 2024 2023 Convertible notes payable 8,277 308,287 Warrants 598,267 153,653 Stock options 1,880,971 993,208 2,487,515 1,455,148 Revenue Recognition Verified Software License For contracts with minimum annual fees, the Company generally recognizes the amount of revenue ratably over the contract year and records contract assets for the amount in excess of monthly contract billings relating to variable contract consideration. For certain contracts, the Company enters into an agreement which stipulates a minimum annual fee which is generally due at the end of the contract year, in excess of the amount of monthly billings. The Company may also require milestone payments of the minimum annual fee. The amount of any billed fees in excess of revenue recognized is recorded as deferred revenue. Any usage-based fees in excess of the minimum contract amount are charged to the customer and allocated to the annual period in which they are earned under the contract. At the beginning of each annual period in the contract, the Company estimates the variable amounts for the annual period subject to the constrained variable consideration (usage-based fees) and recognizes that amount on a time-elapsed basis over the annual period. At each reporting date within an annual period, the Company reassesses its estimate of the excess variable amounts for the annual period and updates the amount recognized on a time-elapsed basis over the remainder of the annual period. The Company had deferred revenue contract liabilities of approximately $308,000 and $132,000 as of March 31, 2024 and December 31, 2023, respectively, for certain revenue that will be earned in future periods. All deferred revenue contract liabilities as of March 31, 2024 are expected to be earned over the next twelve months. Remaining Performance Obligations As of March 31, 2024, the Company’s Remaining Performance Obligation (RPO) was $4.03 million, of which $0.31 million is held as deferred revenue and $3.73 million is related to other non-cancellable contracted amounts. The Company expects approximately 40% of the RPO to be recognized as revenue over the next twelve months ending March 31, 2025 based on contractual commitments and expected usage patterns. However, the amount and timing of revenue recognition are generally dependent upon customers’ future consumption, which is inherently variable at customers’ discretion. Furthermore, the Company does not have historical information to estimate the recognition of revenue due to its current operations and has approximated such amount based on discussions with the contracted parties. Deferred Contract Costs Deferred Contract Costs Carrying Value at December 31, 2023 $ 157,300 Additions 5,850 Amortization (2,432 ) Carrying Value at March 31, 2024 $ 160,718

Other Current Assets

Other Current Assets	3 Months Ended
	Mar. 31, 2024
Other Current Assets [Abstract]
OTHER CURRENT ASSETS	NOTE 2 – OTHER CURRENT ASSETS Other current assets consisted of the following at March 31, 2024 (unaudited) and December 31, 2023: March 31, December 31, 2024 2023 Prepaid insurance $ 73,797 $ 184,492 Prepaid third party services 411,801 291,512 $ 485,598 $ 476,004

Intangible Assets, Net (Other t

Intangible Assets, Net (Other than Goodwill)	3 Months Ended
	Mar. 31, 2024
Intangible Assets, Net (Other than Goodwill) [Abstract]
INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL)	NOTE 3 – INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL) The Company’s intangible assets primarily consist of acquired and developed software that is being 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, 2024 (unaudited): Acquired and Developed Software Patents Total Useful Lives 5 Years 10 Years Carrying Value at December 31, 2023 $ 212,798 $ 114,203 $ 327,001 Amortization (39,293 ) (4,115 ) (43,408 ) Carrying Value at March 31, 2024 $ 173,505 $ 110,088 $ 283,593 The following is a summary of intangible assets as of March 31, 2024 (unaudited): Acquired and Developed Software Patents Total Cost $ 1,734,662 $ 164,614 $ 1,899,276 Accumulated amortization (1,561,157 ) (54,526 ) (1,615,683 ) Carrying Value at March 31, 2024 $ 173,505 $ 110,088 $ 283,593 Amortization expense totaled approximately $43,000 and $76,000 for the three months ended March 31, 2024, and 2023, respectively. Future expected amortization of intangible assets is as follows: 2024 (Remainder of the Year) $ 130,224 2025 69,328 2026 19,230 2027 16,461 2028 16,461 Thereafter 31,889 $ 283,593 There was no impairment indicator identified for impairment of the Company’s intangible assets and goodwill as of March 31, 2024.

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	3 Months Ended
	Mar. 31, 2024
Accounts Payable and Accrued Expenses [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	NOTE 4 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consisted of the following as of March 31, 2024 (unaudited) and December 31, 2023: March 31, December 31, 2024 2023 Trade payables $ 239,376 $ 339,832 Accrued payroll and related obligations 412,965 707,317 Other accrued expenses 253,903 361,816 $ 906,244 $ 1,408,965

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 5 – RELATED PARTY TRANSACTIONS Board of Directors On February 15, 2024, Mr. Joe Trelin tendered his resignation as Chairman and a Director of the Company, effective immediately. On February 20, 2024, the board of directors of the Company (the “Board”) accepted his resignation and agreed to vest the unvested portion of an option granted to Mr. Trelin on June 28, 2023, amounting to 6,511 shares. Commercial Agreements On June 6, 2023, the Company entered into a services agreement with The Pipeline Group, Inc. (“TPG”). Ken Jisser, a director of the Company, is the founder and CEO of TPG, a technology-enabled services company that aims to deliver business results for companies looking to build a predictable and profitable pipeline. As of March 31, 2024, the Company held a balance of approximately $163,000 in prepaid expenses related to this service agreement.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 6 STOCKHOLDERS’ EQUITY On June 26, 2023, the Company filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation to effect a one-for-eight (1-for-8) reverse split (the “Reverse Split”) of the shares of the Company’s common stock. The Reverse Split became effective on July 7, 2023. As a result of the Reverse Split, every eight shares of the Company’s issued and outstanding common stock automatically converted into one share of common stock, without any change in the par value per share, and began trading on a post-split basis under the Company’s existing trading symbol, “AUID”, when the market opened on July 10, 2023. The Reverse Split affected all holders of common stock uniformly and did not affect any common stockholder’s percentage ownership interest in the Company, except for de minimis changes as a result of the elimination of fractional shares. A total of 62,816,330 shares of common stock were issued and outstanding immediately prior to the Reverse Split, and 7,874,962 shares of common stock were issued and outstanding immediately after the Reverse Split. No fractional shares were outstanding following the Reverse Split. Any holder who would have received a fractional share of common stock received an additional fraction of a share of common stock to round up their holding to the next whole share. In addition, effective as of the Reverse Split, proportionate adjustments were made to all then-outstanding options and warrants with respect to the number of shares of common stock subject to such options or warrants and the exercise prices thereof, as well as to the conversion price under the remaining Convertible Notes. The impact of this change in capital structure has been retroactively applied to all periods presented herein. Common Stock There was no During the quarter ended March 31, 2023, the Company issued 68,186 shares of common stock for approximately $222,000 of interest accrued under the Convertible Notes. Warrants There was no warrant activity for the three months ended March 31, 2024 and 2023. As of March 31, 2024, there are warrants to acquire 598,267 shares for a weighted average exercise price of $11.89 per share with weighted average remaining life of 3.7 Stock Options During the three months ended March 31, 2024, the Company granted a total of 100,000 options to certain new employees at exercise prices ranging from $9.05 to $9.61 per share. During the three months ended March 31, 2024 the Company agreed to accelerate the vesting of 6,511 options for Mr. Joe Trelin under the terms of his resignation with an exercise price of $5.48 per share. These accelerated options would not otherwise have vested prior to termination of service according to their Service conditions. Therefore, the Company recalculated the fair value of these options as of his termination date of February 20, 2024 using the Black Scholes method. The Company determined the grant date fair value of options granted for the three months ended March 31, 2024, using the Black Scholes Method, as applicable, with the following assumptions: Expected volatility 123% Expected term 5 years Risk free rate 3.80% – 4.03% Dividend rate 0.00% Activity related to stock options for the three months ended March 31, 2024 (unaudited), is summarized as follows: Weighted Weighted Average Average Aggregate Number of Exercise Contractual Intrinsic Shares Price Term (Yrs.) Value Outstanding at December 31, 2023 1,796,743 $ 25.20 6.5 $ 3,630,733 Granted 100,000 $ 9.38 10.0 $ - Exercised - $ - - $ - Forfeited/cancelled (15,772 ) $ 13.35 4.3 $ - Outstanding as of March 31, 2024 1,880,971 $ 24.23 6.4 $ 2,163,663 Exercisable as of March 31, 2024 1,158,568 $ 30.57 5.0 $ 1,085,676 The following table summarizes stock option information as of March 31, 2024 (unaudited): Weighted Average Contractual Exercise Price Outstanding Term (Yrs.) Exercisable $2.64 – $5.00 354,379 8.8 171,103 $5.01 – $10.00 661,189 9.1 224,949 $10.01 – $15.00 43,703 2.7 43,703 $15.01 – $20.00 252,084 1.5 252,084 $20.01 – $121.28 569,616 4.1 466,729 1,880,971 6.1 1,158,568 During the three months ended March 31, 2024, the Company recognized approximately $0.72 million of stock option-based compensation expense. As of March 31, 2024, there was approximately $2.6 million of unrecognized compensation costs related to stock options outstanding that will be expensed through 2027.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 7 – 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 that the outcome of such proceedings will have a material adverse effect on the financial condition or results of operations of the Company. Leases The Company has no remaining lease agreements as of July 2023. Rent expense included in general and administrative on the Consolidated Statements of Operations for the three months ended March 31, 2024 was approximately $1,000, compared with $5,000 for the three months ended March 31, 2023.

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2024
Subsequent Event [Abstract]
SUBSEQUENT EVENT	NOTE 8 – SUBSEQUENT EVENT Management of the Company has performed a review of all events and transactions occurring after the condensed consolidated balance sheet date and determined there were no events or transactions requiring adjustment to or disclosure in the accompanying condensed consolidated financial statements.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (3,057,577)	$ (1,783,881)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Retirement of Joseph Trelin and Appointment of Kunal Metha On February 15, 2024, Mr. Joe Trelin tendered his resignation as Chairman and a Director of the Company, effective immediately. On February 20, 2024, the Board of Directors of the Company accepted his resignation and agreed to vest the unvested portion of an option granted to Mr. Trelin June 28, 2023, amounting to 6,511 shares. On March 25, 2024, Kunal Mehta was appointed as an independent member of the Board of Directors of the Company. Mr. Mehta entered into a letter agreement with the Company pursuant to which, in addition to other compensation, he will be granted options to purchase common stock on the third trading day after the announcement of the Company’s results for the first quarter of 2024. Equity Grant Policy Recognizing the importance of adhering to appropriate practices and procedures when granting equity awards, on April 19, 2024, the Board of Directors adopted the Policy on Granting Equity Awards. Under this policy, the Compensation Committee of the Board of Directors may grant equity awards. The Compensation Committee may from time to time grant limited authority to the CEO to offer awards to new hires subject to Compensation Committee ratification. The policy established the following procedures for the Company to issue equity awards: ● Equity award grants to existing employees shall be made on a date when the Company’s insider trading window is “open” (i.e., when the Company is not in possession of material non-public information), and which is at least three business days after the most recent release of the Company’s quarterly or annual earnings, or Form 8-K Current Report that discloses material non-public information. ● With respect to grants made to named executive officers, the Company shall not grant and/or price of stock options or other incentive securities under any securities-based compensation arrangement of the Company during the period beginning four (4) business days before and ending one (1) business day after the filing by the Company of a Form 10-Q Quarterly Report, Form 10-K Annual Report or Form 8-K Current Report that discloses material non-public information. ● Grants of stock options to new hires (other than to new hires who will be Section 16 officers), or for promotions, retention or other special purposes will be described as subject to the approval of the Compensation Committee at its next scheduled meeting and the grant date of such stock options, if approved by the Compensation Committee, shall be the date of such meeting. ● Annual grants of equity awards to members of the Board of Directors shall be effective within three business days after the date of the Annual Stockholders Meeting at which such Director is elected or re-elected. We plan to monitor and periodically review our equity grant policy to ensure compliance with plan rules and applicable law.
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	3 Months Ended
	Mar. 31, 2024
Basis of Presentation [Abstract]
Going Concern	Going Concern As of March 31, 2024, the Company had an accumulated deficit of approximately $162.6 million. For the three months ended March 31, 2024, the Company earned revenue from continuing operations of approximately $0.16 million, used approximately $2.9 million to fund its operations, and incurred a net loss of approximately $3.1 million. The continuation of the Company as a going concern is dependent upon financial support from the Company’s stockholders and noteholders, the ability of the Company to obtain additional debt or equity 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 acquiring new clients to generate revenues and cash flows. In 2024 and 2025, the Company plans to raise additional funds to support its operations and investments as it seeks to create a sustainable organization. Our growth-oriented business plan to offer products to our customers will require continued capital investment and there is no guarantee that such financing will be available, or available on acceptable terms. There is no assurance that the Company will ever be profitable. 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. As there can be no assurance that the Company will be able to achieve positive cash flows (become cash flow positive) and raise sufficient capital to maintain operations, there is substantial doubt about the Company’s ability to continue as a going concern.
Reclassification	Reclassification Certain prior year expenses have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the previously reported loss from continuing operations and management does not believe that this reclassification is material to the consolidated financial statements taken as a whole. Specifically, we reclassified approximately $19,000 in Q1 2023 expenses from research and development expenses to general and administrative expenses.
Net Loss per Common Share	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, 2024 and 2023 because their effect was antidilutive: Security 2024 2023 Convertible notes payable 8,277 308,287 Warrants 598,267 153,653 Stock options 1,880,971 993,208 2,487,515 1,455,148
Revenue Recognition	Revenue Recognition Verified Software License For contracts with minimum annual fees, the Company generally recognizes the amount of revenue ratably over the contract year and records contract assets for the amount in excess of monthly contract billings relating to variable contract consideration. For certain contracts, the Company enters into an agreement which stipulates a minimum annual fee which is generally due at the end of the contract year, in excess of the amount of monthly billings. The Company may also require milestone payments of the minimum annual fee. The amount of any billed fees in excess of revenue recognized is recorded as deferred revenue. Any usage-based fees in excess of the minimum contract amount are charged to the customer and allocated to the annual period in which they are earned under the contract. At the beginning of each annual period in the contract, the Company estimates the variable amounts for the annual period subject to the constrained variable consideration (usage-based fees) and recognizes that amount on a time-elapsed basis over the annual period. At each reporting date within an annual period, the Company reassesses its estimate of the excess variable amounts for the annual period and updates the amount recognized on a time-elapsed basis over the remainder of the annual period. The Company had deferred revenue contract liabilities of approximately $308,000 and $132,000 as of March 31, 2024 and December 31, 2023, respectively, for certain revenue that will be earned in future periods. All deferred revenue contract liabilities as of March 31, 2024 are expected to be earned over the next twelve months.
Remaining Performance Obligations	Remaining Performance Obligations As of March 31, 2024, the Company’s Remaining Performance Obligation (RPO) was $4.03 million, of which $0.31 million is held as deferred revenue and $3.73 million is related to other non-cancellable contracted amounts. The Company expects approximately 40% of the RPO to be recognized as revenue over the next twelve months ending March 31, 2025 based on contractual commitments and expected usage patterns. However, the amount and timing of revenue recognition are generally dependent upon customers’ future consumption, which is inherently variable at customers’ discretion. Furthermore, the Company does not have historical information to estimate the recognition of revenue due to its current operations and has approximated such amount based on discussions with the contracted parties.
Deferred Contract Costs	Deferred Contract Costs Deferred Contract Costs Carrying Value at December 31, 2023 $ 157,300 Additions 5,850 Amortization (2,432 ) Carrying Value at March 31, 2024 $ 160,718

Basis of Presentation (Tables)

Basis of Presentation (Tables)	3 Months Ended
	Mar. 31, 2024
Basis of Presentation [Abstract]
Schedule of Diluted Loss per Share	The following potentially dilutive securities were excluded from the calculation of diluted loss per share for the three months ended March 31, 2024 and 2023 because their effect was antidilutive: Security 2024 2023 Convertible notes payable 8,277 308,287 Warrants 598,267 153,653 Stock options 1,880,971 993,208 2,487,515 1,455,148
Schedule of Deferred Contract Cost Activity	The following table summarizes deferred contract cost activity for the three months ended March 31, 2024: Deferred Contract Costs Carrying Value at December 31, 2023 $ 157,300 Additions 5,850 Amortization (2,432 ) Carrying Value at March 31, 2024 $ 160,718

Other Current Assets (Tables)

Other Current Assets (Tables)	3 Months Ended
	Mar. 31, 2024
Other Current Assets [Abstract]
Schedule of Other Current Assets	Other current assets consisted of the following at March 31, 2024 (unaudited) and December 31, 2023: March 31, December 31, 2024 2023 Prepaid insurance $ 73,797 $ 184,492 Prepaid third party services 411,801 291,512 $ 485,598 $ 476,004

Intangible Assets, Net (Other_2

Intangible Assets, Net (Other than Goodwill) (Tables)	3 Months Ended
	Mar. 31, 2024
Intangible Assets, Net (Other than Goodwill) [Abstract]
Schedule of Intangible Assets	The following is a summary of activity related to intangible assets for the three months ended March 31, 2024 (unaudited): Acquired and Developed Software Patents Total Useful Lives 5 Years 10 Years Carrying Value at December 31, 2023 $ 212,798 $ 114,203 $ 327,001 Amortization (39,293 ) (4,115 ) (43,408 ) Carrying Value at March 31, 2024 $ 173,505 $ 110,088 $ 283,593 Acquired and Developed Software Patents Total Cost $ 1,734,662 $ 164,614 $ 1,899,276 Accumulated amortization (1,561,157 ) (54,526 ) (1,615,683 ) Carrying Value at March 31, 2024 $ 173,505 $ 110,088 $ 283,593
Schedule of Future Amortization of Intangible Assets	Future expected amortization of intangible assets is as follows: 2024 (Remainder of the Year) $ 130,224 2025 69,328 2026 19,230 2027 16,461 2028 16,461 Thereafter 31,889 $ 283,593

Accounts Payable and Accrued _2

Accounts Payable and Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2024
Accounts Payable and Accrued Expenses [Abstract]
Schedule of Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses consisted of the following as of March 31, 2024 (unaudited) and December 31, 2023: March 31, December 31, 2024 2023 Trade payables $ 239,376 $ 339,832 Accrued payroll and related obligations 412,965 707,317 Other accrued expenses 253,903 361,816 $ 906,244 $ 1,408,965

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity [Abstract]
Schedule of Grant Date Fair Value of Options Granted	The Company determined the grant date fair value of options granted for the three months ended March 31, 2024, using the Black Scholes Method, as applicable, with the following assumptions: Expected volatility 123% Expected term 5 years Risk free rate 3.80% – 4.03% Dividend rate 0.00%
Schedule of Activity Related to Stock Options	Activity related to stock options for the three months ended March 31, 2024 (unaudited), is summarized as follows: Weighted Weighted Average Average Aggregate Number of Exercise Contractual Intrinsic Shares Price Term (Yrs.) Value Outstanding at December 31, 2023 1,796,743 $ 25.20 6.5 $ 3,630,733 Granted 100,000 $ 9.38 10.0 $ - Exercised - $ - - $ - Forfeited/cancelled (15,772 ) $ 13.35 4.3 $ - Outstanding as of March 31, 2024 1,880,971 $ 24.23 6.4 $ 2,163,663 Exercisable as of March 31, 2024 1,158,568 $ 30.57 5.0 $ 1,085,676
Schedule of Stock Option Information	The following table summarizes stock option information as of March 31, 2024 (unaudited): Weighted Average Contractual Exercise Price Outstanding Term (Yrs.) Exercisable $2.64 – $5.00 354,379 8.8 171,103 $5.01 – $10.00 661,189 9.1 224,949 $10.01 – $15.00 43,703 2.7 43,703 $15.01 – $20.00 252,084 1.5 252,084 $20.01 – $121.28 569,616 4.1 466,729 1,880,971 6.1 1,158,568

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Basis of Presentation [Abstract]
Accumulated deficit	$ (162,588,112)		$ (159,530,535)
Revenue from continuing operations	(160,000)
Loss from operation	(2,900,000)
Net loss from continuing operations	(3,057,577)	$ (1,781,627)
Reclassification of research and development expenses		$ 19,000
Deferred revenue contract liabilities	308,000		$ 132,000
Remaining performance obligation	4,030,000
Deferred revenue	310,000
Other non-cancellable contracted amounts	$ 3,730,000
Percentage of remaining performance obligation	40%

Basis of Presentation (Detail_2

Basis of Presentation (Details) - Schedule of Diluted Loss per Share - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Schedule of Diluted Loss per Share [Line Items]
Total dilutive securities	2,487,515	1,455,148
Convertible Notes Payable [Member]
Schedule of Diluted Loss per Share [Line Items]
Total dilutive securities	8,277	308,287
Warrant [Member]
Schedule of Diluted Loss per Share [Line Items]
Total dilutive securities	598,267	153,653
Stock options [Member]
Schedule of Diluted Loss per Share [Line Items]
Total dilutive securities	1,880,971	993,208

Basis of Presentation (Detail_3

Basis of Presentation (Details) - Schedule of Deferred Contract Cost Activity	3 Months Ended
	Mar. 31, 2024 USD ($)
Schedule of Deferred Contract Cost Activity [Abstract]
Carrying Value at December 31, 2023	$ 157,300
Additions	5,850
Amortization	(2,432)
Carrying Value at March 31, 2024	$ 160,718

Other Current Assets (Details)

Other Current Assets (Details) - Schedule of Other Current Assets - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Schedule of Other Current Assets [Abstract]
Prepaid insurance	$ 73,797	$ 184,492
Prepaid third party services	411,801	291,512
Total other current assets	$ 485,598	$ 476,004

Intangible Assets, Net (Other_3

Intangible Assets, Net (Other than Goodwill) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Intangible Assets, Net (Other than Goodwill) [Abstract]
Amortization expense	$ 43,000	$ 76,000

Intangible Assets, Net (Other_4

Intangible Assets, Net (Other than Goodwill) (Details) - Schedule of Intangible Assets	3 Months Ended
	Mar. 31, 2024 USD ($)
Schedule of Intangible Assets [Line Items]
Carrying Value, Beginning	$ 327,001
Amortization	(43,408)
Carrying Value, Ending	283,593
Cost	1,899,276
Accumulated amortization	$ (1,615,683)
Acquired and Developed Software [Member]
Schedule of Intangible Assets [Line Items]
Useful Lives	5 years
Carrying Value, Beginning	$ 212,798
Amortization	(39,293)
Carrying Value, Ending	173,505
Cost	1,734,662
Accumulated amortization	$ (1,561,157)
Patents [Member]
Schedule of Intangible Assets [Line Items]
Useful Lives	10 years
Carrying Value, Beginning	$ 114,203
Amortization	(4,115)
Carrying Value, Ending	110,088
Cost	164,614
Accumulated amortization	$ (54,526)

Intangible Assets, Net (Other_5

Intangible Assets, Net (Other than Goodwill) (Details) - Schedule of Future Amortization of Intangible Assets - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Schedule of Future Amortization of Intangible Assets [Abstract]
2024 (Remainder of the Year)	$ 130,224
2025	69,328
2026	19,230
2027	16,461
2028	16,461
Thereafter	31,889
Total	$ 283,593	$ 327,001

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses (Details) - Schedule of Accounts Payable and Accrued Expenses - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Accounts Payable and Accrued Expenses [Abstract]
Trade payables	$ 239,376	$ 339,832
Accrued payroll and related obligations	412,965	707,317
Other accrued expenses	253,903	361,816
Total	$ 906,244	$ 1,408,965

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	Jun. 28, 2023	Mar. 31, 2024
Related Party Transaction [Line Items]
Prepaid expenses		$ 163,000
Board of Directors [Member]
Related Party Transaction [Line Items]
Unvested option granted	6,511

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Jun. 26, 2023	Dec. 31, 2022
Stockholders' Equity [Line items]
Common stock, shares issued	9,450,220		9,450,220	7,874,962
Common stock, shares outstanding	9,450,220		9,450,220	7,874,962
Common stock, shares authorized	250,000,000		250,000,000
Exercise price (in Dollars per share)	$ 9.38
Warrants [Member]
Stockholders' Equity [Line items]
Common stock, warrant	598,267
Warrant exercise price (in Dollars per share)	$ 11.89
Maturity term of warrant	3 years 255 days
Convertible Notes [Member]
Stockholders' Equity [Line items]
Common stock, shares authorized		68,186
Accrued interest (in Dollars)		$ 222,000
Revision of Prior Period, Adjustment [Member]
Stockholders' Equity [Line items]
Common stock, shares issued				62,816,330
Common stock, shares outstanding				62,816,330
Common Stock [Member]
Stockholders' Equity [Line items]
Common stock, shares issued
Common stock, shares outstanding	9,450,220	3,247,975	9,450,220		3,179,789
Stock Options [Member]
Stockholders' Equity [Line items]
Common stock, warrant	100,000
Stock option based compensation expense (in Dollars)	$ 720,000
Unrecognized stock option based compensation expense (in Dollars)	$ 2,600,000
Stock Options [Member] | Minimum [Member]
Stockholders' Equity [Line items]
Exercise price (in Dollars per share)	$ 9.05
Stock Options [Member] | Maximum [Member]
Stockholders' Equity [Line items]
Exercise price (in Dollars per share)	$ 9.61
Mr. Joe Trelin [Member] | Stock Options [Member]
Stockholders' Equity [Line items]
Sale of stock	6,511
Stock price per share (in Dollars per share)	$ 5.48

Stockholders' Equity (Details)

Stockholders' Equity (Details) - Schedule of Grant Date Fair Value of Options Granted	3 Months Ended
	Mar. 31, 2024
Schedule of Grant Date Fair Value of Options Granted [Line Items]
Expected volatility	123%
Expected term	5 years
Dividend rate	0%
Minimum [Member]
Schedule of Grant Date Fair Value of Options Granted [Line Items]
Risk free rate	3.80%
Maximum [Member]
Schedule of Grant Date Fair Value of Options Granted [Line Items]
Risk free rate	4.03%

Stockholders' Equity (Details_2

Stockholders' Equity (Details) - Schedule of Activity Related to Stock Options - USD ($)		3 Months Ended
	Dec. 31, 2023	Mar. 31, 2024
Schedule of Activity Related to Stock Options [Abstract]
Number of Shares, Ending Outstanding	1,796,743	1,880,971
Weighted Average Exercise Price, Ending Outstanding	$ 25.2	$ 24.23
Weighted Average Contractual Life, Ending Outstanding	6 years 6 months	6 years 4 months 24 days
Aggregate Intrinsic Value, Ending Outstanding	$ 3,630,733	$ 2,163,663
Number of Shares, Exercisable		1,158,568
Weighted Average Exercise Price, Exercisable		$ 30.57
Weighted Average Contractual Life, Exercisable		5 years
Aggregate Intrinsic Value, Exercisable		$ 1,085,676
Number of Shares, Granted		100,000
Weighted Average Exercise Price, Granted		$ 9.38
Weighted Average Contractual Life, Granted		10 years
Aggregate Intrinsic Value, Granted
Number of Shares, Exercised
Weighted Average Exercise Price, Exercised
Weighted Average Contractual Life, Exercised
Aggregate Intrinsic Value, Exercised
Number of Shares, Forfeited/cancelled		(15,772)
Weighted Average Exercise Price, Forfeited/cancelled		$ 13.35
Weighted Average Contractual Life, Forfeited/cancelled		4 years 3 months 18 days
Aggregate Intrinsic Value, Forfeited/cancelled

Stockholders' Equity (Details_3

Stockholders' Equity (Details) - Schedule of Stock Option Information	3 Months Ended
	Mar. 31, 2024 shares
Schedule of Stock Option Information [Line Items]
Outstanding	1,880,971
Weighted Average Contractual Term (Yrs.)	6 years 1 month 6 days
Exercisable	1,158,568
$2.64 – $5.00 [Member]
Schedule of Stock Option Information [Line Items]
Outstanding	354,379
Weighted Average Contractual Term (Yrs.)	8 years 9 months 18 days
Exercisable	171,103
$5.01 – $10.00 [Member]
Schedule of Stock Option Information [Line Items]
Outstanding	661,189
Weighted Average Contractual Term (Yrs.)	9 years 1 month 6 days
Exercisable	224,949
$10.01 – $15.00 [Member]
Schedule of Stock Option Information [Line Items]
Outstanding	43,703
Weighted Average Contractual Term (Yrs.)	2 years 8 months 12 days
Exercisable	43,703
$15.01 – $20.00 [Member]
Schedule of Stock Option Information [Line Items]
Outstanding	252,084
Weighted Average Contractual Term (Yrs.)	1 year 6 months
Exercisable	252,084
$20.01 – $121.28 [Member]
Schedule of Stock Option Information [Line Items]
Outstanding	569,616
Weighted Average Contractual Term (Yrs.)	4 years 1 month 6 days
Exercisable	466,729

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Commitments and Contingencies [Line Items]
General and administrative	$ 1,000	$ 5,000