Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 05, 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 | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
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 $0.0001 per share | |
Trading Symbol | AUID | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 10,920,851 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash | $ 14,407,393 | $ 10,177,099 |
Accounts receivable, net | 192,667 | 91,277 |
Deferred contract costs | 156,735 | 157,300 |
Other current assets, net | 771,755 | 476,004 |
Contract assets | 201,610 | |
Total current assets | 15,730,160 | 10,901,680 |
Intangible Assets, net | 255,171 | 327,001 |
Goodwill | 4,183,232 | 4,183,232 |
Total assets | 20,168,563 | 15,411,913 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 998,040 | 1,408,965 |
Deferred revenue | 243,772 | 131,628 |
Commission liability | 46,612 | 124,150 |
Accrued severance liability | 325,000 | |
Convertible debt, net | 232,654 | |
Total current liabilities | 1,846,078 | 1,664,743 |
Non-current Liabilities: | ||
Convertible debt, net | 224,424 | |
Accrued severance liability | 325,000 | |
Total liabilities | 1,846,078 | 2,214,167 |
Commitments and Contingencies (Note 7) | ||
Stockholders’ Equity: | ||
Common stock, $0.0001 par value, 150,000,000 and 250,000,000 shares authorized; 10,920,851 and 9,450,220 shares issued and outstanding as of June 30, 2024 and December 31, 2023 respectively | 1,092 | 945 |
Additional paid in capital | 184,164,638 | 172,714,712 |
Accumulated deficit | (165,849,353) | (159,530,535) |
Accumulated comprehensive income | 6,108 | 12,624 |
Total stockholders’ equity | 18,322,485 | 13,197,746 |
Total liabilities and stockholders’ equity | $ 20,168,563 | $ 15,411,913 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 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 | 150,000,000 | 250,000,000 |
Common stock, shares issued | 10,920,851 | 9,450,220 |
Common stock, shares outstanding | 10,920,851 | 9,450,220 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Revenues, net | $ 280,438 | $ 37,142 | $ 437,816 | $ 74,998 |
Operating Expenses: | ||||
General and administrative | 2,169,160 | 2,016,908 | 4,231,521 | 2,839,662 |
Research and development | 1,392,103 | 703,590 | 2,597,071 | 824,228 |
Depreciation and amortization | 44,004 | 76,019 | 87,412 | 152,036 |
Total operating expenses | 3,605,267 | 2,796,517 | 6,916,004 | 3,815,926 |
Loss from continuing operations | (3,324,829) | (2,759,375) | (6,478,188) | (3,740,928) |
Other Income (Expense): | ||||
Interest expense, net | (10,369) | (282,109) | (23,507) | (1,082,182) |
Interest income | 73,957 | 1,160 | 182,877 | 1,160 |
Loss on debt extinguishment | (380,741) | (380,741) | ||
Conversion expense | (7,476,000) | (7,476,000) | ||
Other income (expense), net | 63,588 | (8,137,690) | 159,370 | (8,937,763) |
Loss from continuing operations before income taxes | (3,261,241) | (10,897,065) | (6,318,818) | (12,678,691) |
Income tax expense | (3,255) | (3,255) | ||
Loss from continuing operations | (3,261,241) | (10,900,320) | (6,318,818) | (12,681,946) |
Gain from discontinued operations | 5,694 | 3,439 | ||
Gain on sale of discontinued operations | 216,069 | 216,069 | ||
Total gain from discontinued operations | 221,763 | 219,508 | ||
Net loss | $ (3,261,241) | $ (10,678,557) | $ (6,318,818) | $ (12,462,438) |
Net Loss Per Share - Basic and Diluted | ||||
Continuing operations, Basic (in Dollars per share) | $ (0.34) | $ (2.16) | $ (0.67) | $ (3.09) |
Discontinued operations, Basic (in Dollars per share) | $ 0.04 | $ 0.05 | ||
Weighted Average Shares Outstanding - Basic (in Shares) | 9,501,691 | 5,046,514 | 9,475,956 | 4,108,372 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Continuing operations, Diluted | $ (0.34) | $ (2.16) | $ (0.67) | $ (3.09) |
Discontinued operations, Diluted | $ 0.04 | $ 0.05 | ||
Weighted Average Shares Outstanding – Diluted (in Shares) | 9,501,691 | 5,046,514 | 9,475,956 | 4,108,372 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Loss | $ (3,261,241) | $ (10,678,557) | $ (6,318,818) | $ (12,462,438) |
Foreign currency translation loss | (10,594) | (132,071) | (6,516) | (156,137) |
Comprehensive loss | $ (3,271,835) | $ (10,810,628) | $ (6,325,334) | $ (12,618,575) |
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 |
Balance at Dec. 31, 2022 | $ 318 | $ 140,257,448 | $ (140,130,159) | $ 155,929 | $ 283,536 |
Balance (in Shares) at Dec. 31, 2022 | 3,179,789 | ||||
Stock-based compensation | (1,542,902) | (1,542,902) | |||
Warrants issued for services | 438,000 | 438,000 | |||
Shares issued in lieu of interest | $ 11 | 387,567 | 387,578 | ||
Shares issued in lieu of interest (in Shares) | 111,516 | ||||
Conversion of convertible notes into common stock | $ 235 | 15,331,776 | 15,332,011 | ||
Conversion of convertible notes into common stock (in Shares) | 2,348,347 | ||||
Conversion of credit facility borrowings into common stock | $ 24 | 899,976 | 900,000 | ||
Conversion of credit facility borrowings into common stock (in Shares) | 245,634 | ||||
Sale of common stock for cash, net of offering costs | $ 198 | 6,383,443 | 6,383,641 | ||
Sale of common stock for cash, net of offering costs (in Shares) | 1,989,676 | ||||
Net Loss | (12,462,438) | (12,462,438) | |||
Foreign currency translation | (156,137) | (156,137) | |||
Balance at Jun. 30, 2023 | $ 786 | 162,155,308 | (152,592,597) | (208) | 9,563,289 |
Balance (in Shares) at Jun. 30, 2023 | 7,874,962 | ||||
Balance at Mar. 31, 2023 | $ 325 | 137,881,276 | (141,914,040) | 131,863 | (3,900,576) |
Balance (in Shares) at Mar. 31, 2023 | 3,247,957 | ||||
Stock-based compensation | 1,055,690 | 1,055,690 | |||
Warrants issued for services | 438,000 | 438,000 | |||
Shares issued in lieu of interest | $ 4 | 165,147 | 165,151 | ||
Shares issued in lieu of interest (in Shares) | 43,348 | ||||
Conversion of convertible notes into common stock | $ 235 | 15,331,776 | 15,332,011 | ||
Conversion of convertible notes into common stock (in Shares) | 2,348,347 | ||||
Conversion of credit facility borrowings into common stock | $ 24 | 899,976 | 900,000 | ||
Conversion of credit facility borrowings into common stock (in Shares) | 245,634 | ||||
Sale of common stock for cash, net of offering costs | $ 198 | 6,383,443 | 6,383,641 | ||
Sale of common stock for cash, net of offering costs (in Shares) | 1,989,676 | ||||
Net Loss | (10,678,557) | (10,678,557) | |||
Foreign currency translation | (132,071) | (132,071) | |||
Balance at Jun. 30, 2023 | $ 786 | 162,155,308 | (152,592,597) | (208) | 9,563,289 |
Balance (in Shares) at Jun. 30, 2023 | 7,874,962 | ||||
Balance at Dec. 31, 2023 | $ 945 | 172,714,712 | (159,530,535) | 12,624 | $ 13,197,746 |
Balance (in Shares) at Dec. 31, 2023 | 9,450,220 | 9,450,220 | |||
Stock-based compensation | 1,448,675 | $ 1,448,675 | |||
Conversion of credit facility borrowings into common stock | |||||
Sale of common stock for cash, net of offering costs | $ 146 | 10,001,252 | 10,001,398 | ||
Sale of common stock for cash, net of offering costs (in Shares) | 1,464,965 | ||||
Cashless stock option exercise | $ 1 | (1) | |||
Cashless stock option exercise (in Shares) | 5,666 | ||||
Net Loss | (6,318,818) | (6,318,818) | |||
Foreign currency translation | (6,516) | (6,516) | |||
Balance at Jun. 30, 2024 | $ 1,092 | 184,164,638 | (165,849,353) | 6,108 | $ 18,322,485 |
Balance (in Shares) at Jun. 30, 2024 | 10,920,851 | 10,920,851 | |||
Balance at Mar. 31, 2024 | $ 945 | 173,437,683 | (162,588,112) | 16,702 | $ 10,867,218 |
Balance (in Shares) at Mar. 31, 2024 | 9,450,220 | ||||
Stock-based compensation | 725,704 | 725,704 | |||
Sale of common stock for cash, net of offering costs | $ 146 | 10,001,252 | 10,001,398 | ||
Sale of common stock for cash, net of offering costs (in Shares) | 1,464,965 | ||||
Cashless stock option exercise | $ 1 | (1) | |||
Cashless stock option exercise (in Shares) | 5,666 | ||||
Net Loss | (3,261,241) | (3,261,241) | |||
Foreign currency translation | (10,594) | (10,594) | |||
Balance at Jun. 30, 2024 | $ 1,092 | $ 184,164,638 | $ (165,849,353) | $ 6,108 | $ 18,322,485 |
Balance (in Shares) at Jun. 30, 2024 | 10,920,851 | 10,920,851 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (6,318,818) | $ (12,462,438) |
Adjustments to reconcile net loss with cash flows from operations: | ||
Stock-based compensation | 1,448,675 | (1,542,902) |
Depreciation and amortization expense | 87,412 | 152,036 |
Amortization of debt discounts and issuance costs | 8,230 | 689,305 |
Non-cash recruiting fees | 438,000 | |
Shares issued in lieu of interest | 387,578 | |
Gain from sale of discontinued operation | (216,069) | |
Loss on debt extinguishment | 380,741 | |
Conversion expense | 7,476,000 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (101,390) | 219,684 |
Deferred contract costs | (76,973) | |
Other current assets | (497,379) | (136,564) |
Accounts payable and accrued expenses | (411,552) | 63,546 |
Deferred revenue | 112,144 | (22,211) |
Other accrued liabilities | 290,000 | |
Adjustments relating to discontinued operations | 0 | 110,064 |
Net cash flows from operating activities | (5,749,651) | (4,173,230) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of intangible assets | (15,582) | |
Net cash flows from investing activities | (15,582) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of common stock, net of offering costs | 10,001,398 | 6,383,641 |
Credit facility drawdown, net of issuance costs | 543,760 | |
Net cash flows from financing activities | 10,001,398 | 6,927,401 |
Effect of Foreign Currencies | (5,871) | (12,206) |
Net Change in Cash | 4,230,294 | 2,741,965 |
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 | ||
Cash, End of the Period | 14,407,393 | 5,981,773 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for interest | 15,276 | |
Cash paid for income taxes - discontinued operations | 364 | |
Cash paid for income taxes | 3,255 | |
Cash paid for income taxes - discontinued operations | 1,254 | |
Schedule of Non-cash Investing and Financing Activities: | ||
Conversion of convertible note payable and accrued interest to common stock | 7,856,011 | |
Conversion of credit facility borrowings into common stock | 900,000 | |
Warrants for services with the sale of common stock | 877,392 | 725,889 |
Cashless option and warrant exercises | $ 1 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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 June 30, 2024, the Company had an accumulated deficit of approximately $165.8 million. For the three and six months ended June 30, 2024, the Company earned revenue from continuing operations of approximately $0.3 million and $0.4 million, used approximately $2.8 million and $5.7 million to fund its operations, and incurred a net loss of approximately $3.3 million and $6.3 million. The continuation of the Company as a going concern is dependent upon financial support from the Company’s stockholders, 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 June 2024, the Company raised approximately $10.0 million after expenses from existing and new stockholders through the sale of Common Stock pursuant to a registered direct offering. Going forward, 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, for the three and six months ended June 30, 2023, we reclassified approximately $64,000 and $93,000, respectively, in 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 and six months ended June 30, 2024 and 2023 because their effect was antidilutive: Security 2024 2023 Convertible notes payable 8,277 8,277 Warrants 697,446 497,895 Stock options 1,852,819 1,561,070 2,558,542 2,067,242 Revenue Recognition 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 $244,000 and $132,000 as of June 30, 2024 and December 31, 2023, respectively, for certain revenue that will be earned in future periods. All deferred revenue contract liabilities as of June 30, 2024 are expected to be earned over the next twelve months. Concentration of Revenue and Accounts Receivable For the six months ended June 30, 2024, two customers represented 59% of revenue, respectively. For the six months ended June 30, 2023, one customer represented 47% of revenue. For the three months ended June 30, 2024, three customers represented 76% of revenue, respectively. For the three months ended June 30, 2023, one customer represented 51% of revenue. As of June 30, 2024, three customers accounted for 80% respectively, of accounts receivable. As of December 31, 2023, two customers accounted for 67%, respectively, of accounts receivable. Remaining Performance Obligations As of June 30, 2024, the Company’s Remaining Performance Obligation (RPO) was $4.24 million, of which $0.24 million is held as deferred revenue and $4.00 million is related to other non-cancellable contracted amounts. The Company expects approximately 36% of the RPO to be recognized as revenue over the next twelve months ending June 30, 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 sufficient 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 8,294 Amortization (8,859 ) Carrying Value at June 30, 2024 $ 156,735 |
Other Current Assets
Other Current Assets | 6 Months Ended |
Jun. 30, 2024 | |
Other Current Assets [Abstract] | |
OTHER CURRENT ASSETS | NOTE 2 – OTHER CURRENT ASSETS Other current assets consisted of the following at June 30, 2024 (unaudited) and December 31, 2023: June 30, December 31, 2024 2023 Prepaid insurance $ 310,205 $ 184,492 Prepaid third party services 461,550 291,512 $ 771,755 $ 476,004 |
Intangible Assets, Net (Other t
Intangible Assets, Net (Other than Goodwill) | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 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 Additions - 15,582 15,582 Amortization (78,585 ) (8,827 ) (87,412 ) Carrying Value at June 30, 2024 $ 134,213 $ 120,958 $ 255,171 The following is a summary of intangible assets as of June 30, 2024 (unaudited): Acquired and Developed Software Patents Total Cost $ 1,734,662 $ 180,196 $ 1,914,858 Accumulated amortization (1,600,449 ) (59,238 ) (1,659,687 ) Carrying Value at June 30, 2024 $ 134,213 $ 120,958 $ 255,171 Amortization expense totaled approximately $87,000 and $152,000 for the six months ended June 30, 2024, and 2023, respectively. Future expected amortization of intangible assets is as follows: 2024 (Remainder of the Year) $ 87,595 2025 70,889 2026 20,786 2027 18,019 2028 18,019 Thereafter 39,863 $ 255,171 There were no impairment indicators noted with respect to Company’s long-lived assets, including intangible assets, as of June 30, 2024. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Jun. 30, 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 June 30, 2024 (unaudited) and December 31, 2023: June 30, December 31, 2024 2023 Trade payables $ 248,907 $ 235,606 Accrued payroll and related obligations 97,168 707,317 Insurance Premium Liability 245,542 104,226 Other accrued expenses 406,423 361,816 $ 998,040 $ 1,408,965 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 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. On March 25, 2024, Mr. Kunal Mehta was appointed as a Director of the Company, upon the standard terms for non-employee Directors. On May 20, 2024, Mr. Mehta was granted an option to purchase 13,282 shares of common stock at an exercise price of $7.78 per share. 12,500 of the shares vest annually in equal amounts over a three-year period commencing in 2025 and 782 shares vested monthly in equal amounts over a three-month period commencing March 2024. 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 June 30, 2024, the Company held a balance of approximately $117,000 in prepaid expenses related to this service agreement. In June 2024, the agreement with TPG was renewed for an additional year at a reduced fee rate of $70,000 per month. Total expense incurred under this contract during the three and six months ended June 30, 2024 was approximately $285,000 and $542,000, respectively. Total expense incurred under this contract during the three and six months ended June 30, 2023 was approximately $67,000 and $99,000, respectively. Employment Agreement Since June 2023, the Company has employed Dale Daguro, the brother of our CEO, Rhon Daguro as a VP Sales. Dale Daguro’s employment is at will and may be terminated at any time, with or without cause. On July 12, 2023, Dale was granted an option to purchase 25,000 shares of common stock at an exercise price of $7.36 and on December 21, 2023 he was granted a further option to purchase 4,000 shares of common stock at an exercise price of $9.25 per share. Dale’s compensation is commensurate with other executives employed by the Company at a similar level of seniority and experience. During the six months ended June 30, 2024, Dale Daguro earned approximately $148,000 in base salary and sales commission. Issuance of Common Stock On June 27, 2024, Michael Thompson, a Director of the Company purchased 12,254 shares of the Company’s common stock at an aggregate price of $100,000, as part of the Company’s Registered Direct offering (See Note 6 – Stockholders’ Equity). |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 6 STOCKHOLDERS’ EQUITY Common Stock On June 27, 2024, pursuant to Securities Purchase Agreements in a Registered Direct Offering, the Company issued 1,464,965 shares of common stock for cash gross proceeds of approximately $11.0 million (or approximately $10.0 million, net of offering costs). During the six months ended June 30, 2024 the Company issued 5,666 shares of common stock, upon the cashless exercise of a stock option. During the six months ended June 30, 2023, shares of common stock were issued as a result of the following transactions: ● On May 26, 2023, pursuant to Securities Purchase Agreements, the Company issued 1,989,676 shares of common stock for cash gross proceeds of approximately $7.3 million (or approximately $6.4 million, net of offering costs). ● On May 26, 2023, pursuant to a Securities Purchase Agreement, Mr. Garchik capitalized the outstanding principal balance of $900,000 under the Initial Promissory Note, into 245,634 shares of common stock. ● On May 26, 2023, pursuant to an exchange agreement with Holders of Convertible Notes payable, the Company issued 2,348,347 shares of common stock in exchange for Convertible Notes in the gross principal amount of approximately $8.9 million (approximately $7.9 million, net of debt issuance costs and discount). In addition, the Company recorded approximately $7.5 million of expense on conversion of convertible notes. ● The Company issued 111,516 shares of common stock for approximately $388,000 of interest accrued under the Convertible Notes and Credit Facility. Warrants On June 27, 2024, in connection with their placement agent services, the Company issued 102,547 common stock warrants to Madison Global Partners, LLC, with a term of 5 years and an exercise price of $7.50 per share. During the six months ended June 30, 2023, warrants were issued as a result of the following transactions: ● On May 26, 2023, in connection with their placement agent services, the Company issued 156,712 common stock warrants to Madison Global Partners, LLC, with a term of 5 years and an exercise price of $3.664 per share. ● On May 12, 2023, in connection with certain recruitment services, the Company issued 187,500 common stock warrants to Madison III, LLC with a term of 5 years and an exercise price of $3.164 per share. The following is a summary of the Company’s warrant activity for the six months ended June 30, 2024 (unaudited): Weighted Weighted Average Average Number of Exercise Remaining Shares Price Life Outstanding, December 31, 2023 598,267 $ 11.89 3.9 Years Granted 102,547 $ 7.50 5.0 Years Exercised/Cancelled (3,368 ) $ 21.12 - Outstanding, June 30, 2024 697,446 $ 11.20 3.7 Years Stock Options During the six months ended June 30, 2024, the Company granted Mr. Kunal Mehta 13,282 options to purchase common stock at an exercise price of $7.78 per share. During the six months ended June 30, 2024, the Company also 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 six months ended June 30, 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 resignation date of February 20, 2024 using the Black Scholes method. The Company determined the grant date fair value of options granted for the six months ended June 30, 2024, using the Black Scholes Method, as applicable, with the following assumptions: Expected volatility 122 – 123% Expected term 5 years Risk free rate 3.80% - 4.46% Dividend rate 0.00% Activity related to stock options for the six months ended June 30, 2024 (unaudited), is summarized as follows: Number Weighted Weighted Aggregate Outstanding at December 31, 2023 1,796,743 $ 25.20 6.5 $ 3,630,733 Granted 113,282 $ 9.19 10.0 $ 15,540 Exercised (15,625 ) $ 5.48 - $ - Forfeited/cancelled (41,581 ) $ 24.88 6.5 $ - Outstanding as of June 30, 2024 1,852,819 $ 24.43 6.2 $ 4,583,031 Exercisable as of June 30, 2024 1,227,820 $ 29.32 5.1 $ 2,422,237 The following table summarizes stock option information as of June 30, 2024 (unaudited): Weighted Average Contractual Exercise Price Outstanding Term (Yrs.) Exercisable $2.64 – $5.00 342,628 8.8 193,339 $5.01 – $10.00 651,381 9.1 269,719 $10.01 – $15.00 43,078 2.4 43,078 $15.01 – $20.00 252,084 1.3 252,084 $20.01 – $121.28 563,648 3.8 469,600 1,852,819 6.2 1,227,820 During the six months ended June 30, 2024, the Company recognized approximately $1.5 million of stock option-based compensation expense. As of June 30, 2024, there was approximately $1.8 million of unrecognized compensation costs related to stock options outstanding that will be expensed through 2027. On May 24, 2024, the Board of Directors adopted the 2024 Equity Incentive Plan (the “2024 Plan”). On June 26, 2024, the stockholders approved and ratified the 2024 Plan and the allocation of 395,000 shares of Common Stock to the 2024 Plan, in addition to the remaining shares not allocated to awards under the 2021 Equity Incentive Plan and any shares, which become available as a result of the forfeiture, or cancellation of any previous awards. As of June 30, 2024, there were 444,115 shares allocated to and available for issuance of awards under the 2024 Plan but no such awards have yet been granted. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 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. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Event [Abstract] | |
SUBSEQUENT EVENTS | NOTE 8 – SUBSEQUENT EVENTS In July 2024, the Company evaluated the rollout timelines for several customers who have delayed go-live adoption dates due to their respective corporate processes and timelines. The Company has come to a verbal agreement with one customer (who comprises $1.3 million of the Company’s RPO) to modify the terms of their contract to defer the timing of their minimum payment obligations by approximately 12 months. The Company expects this modification agreement to be finalized during the quarter ending September 30, 2024, resulting in a reduction in the future periodic recognition of the revenue associated with this performance obligation through the end of the initial contract period, December 31, 2027. The proposed modification is not expected to affect the overall RPO associated with this customer’s contract. In August 2024, the Board adopted a new policy on compensation for non-employee directors, which is summarized as follows Each non-employee director will receive: ● Total annual compensation equal to $125,000, payable in cash and equity. ● Annual cash compensation of $8,000, or $10,000 if they are a committee chair, payable quarterly in arrear. ● Annual equity compensation of $117,000 by way of an option grant to purchase common stock. The number of shares which will be the subject of each grant shall be determined by reference to the Black Scholes value of the grant based on the closing price of the common stock, as reported by the NASDAQ Stock Market (or such other principal securities exchange or market system on which the common stock is then listed,) on the date of the Annual Meeting, at which the director is re-elected by the stockholders to serve on the Board. Each stock option shall be a non-qualified stock option with a term of 10 years and shall become fully vested on the first anniversary of the grant date, with equal monthly vesting over a 12 month period, provided that such non-employee director remains as a director of the Company during such 12 month period. Each such option shall have an exercise price equal to the closing price of the common stock, as reported by the NASDAQ Stock Market, on the grant date. The grant date may be deferred in accordance with the Company’s Policy on Granting Equity Awards, if the Annual Meeting is held during a closed trading window. In accordance with this new policy, each non-employee director will receive an option grant of 15,627 shares, on the third day after the announcement of the Company’s results for the period ended June 30, 2024, at an exercise price equal to the closing price of the common stock on the NASDAQ Stock Market on that day. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (3,261,241) | $ (10,678,557) | $ (6,318,818) | $ (12,462,438) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
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) | 6 Months Ended |
Jun. 30, 2024 | |
Basis of Presentation [Abstract] | |
Going Concern | Going Concern As of June 30, 2024, the Company had an accumulated deficit of approximately $165.8 million. For the three and six months ended June 30, 2024, the Company earned revenue from continuing operations of approximately $0.3 million and $0.4 million, used approximately $2.8 million and $5.7 million to fund its operations, and incurred a net loss of approximately $3.3 million and $6.3 million. The continuation of the Company as a going concern is dependent upon financial support from the Company’s stockholders, 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 June 2024, the Company raised approximately $10.0 million after expenses from existing and new stockholders through the sale of Common Stock pursuant to a registered direct offering. Going forward, 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, for the three and six months ended June 30, 2023, we reclassified approximately $64,000 and $93,000, respectively, in 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 and six months ended June 30, 2024 and 2023 because their effect was antidilutive: Security 2024 2023 Convertible notes payable 8,277 8,277 Warrants 697,446 497,895 Stock options 1,852,819 1,561,070 2,558,542 2,067,242 |
Revenue Recognition | Revenue Recognition 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 $244,000 and $132,000 as of June 30, 2024 and December 31, 2023, respectively, for certain revenue that will be earned in future periods. All deferred revenue contract liabilities as of June 30, 2024 are expected to be earned over the next twelve months. |
Concentration of Revenue and Accounts Receivable | Concentration of Revenue and Accounts Receivable For the six months ended June 30, 2024, two customers represented 59% of revenue, respectively. For the six months ended June 30, 2023, one customer represented 47% of revenue. For the three months ended June 30, 2024, three customers represented 76% of revenue, respectively. For the three months ended June 30, 2023, one customer represented 51% of revenue. As of June 30, 2024, three customers accounted for 80% respectively, of accounts receivable. As of December 31, 2023, two customers accounted for 67%, respectively, of accounts receivable. |
Remaining Performance Obligations | Remaining Performance Obligations As of June 30, 2024, the Company’s Remaining Performance Obligation (RPO) was $4.24 million, of which $0.24 million is held as deferred revenue and $4.00 million is related to other non-cancellable contracted amounts. The Company expects approximately 36% of the RPO to be recognized as revenue over the next twelve months ending June 30, 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 sufficient 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 8,294 Amortization (8,859 ) Carrying Value at June 30, 2024 $ 156,735 |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2024 and 2023 because their effect was antidilutive: Security 2024 2023 Convertible notes payable 8,277 8,277 Warrants 697,446 497,895 Stock options 1,852,819 1,561,070 2,558,542 2,067,242 |
Schedule of Deferred Contract Cost Activity | The following table summarizes deferred contract cost activity for the six months ended June 30, 2024: Deferred Contract Costs Carrying Value at December 31, 2023 $ 157,300 Additions 8,294 Amortization (8,859 ) Carrying Value at June 30, 2024 $ 156,735 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following at June 30, 2024 (unaudited) and December 31, 2023: June 30, December 31, 2024 2023 Prepaid insurance $ 310,205 $ 184,492 Prepaid third party services 461,550 291,512 $ 771,755 $ 476,004 |
Intangible Assets, Net (Other_2
Intangible Assets, Net (Other than Goodwill) (Tables) | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 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 Additions - 15,582 15,582 Amortization (78,585 ) (8,827 ) (87,412 ) Carrying Value at June 30, 2024 $ 134,213 $ 120,958 $ 255,171 The following is a summary of intangible assets as of June 30, 2024 (unaudited): Acquired and Developed Software Patents Total Cost $ 1,734,662 $ 180,196 $ 1,914,858 Accumulated amortization (1,600,449 ) (59,238 ) (1,659,687 ) Carrying Value at June 30, 2024 $ 134,213 $ 120,958 $ 255,171 |
Schedule of Future Amortization of Intangible Assets | Future expected amortization of intangible assets is as follows: 2024 (Remainder of the Year) $ 87,595 2025 70,889 2026 20,786 2027 18,019 2028 18,019 Thereafter 39,863 $ 255,171 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2024 (unaudited) and December 31, 2023: June 30, December 31, 2024 2023 Trade payables $ 248,907 $ 235,606 Accrued payroll and related obligations 97,168 707,317 Insurance Premium Liability 245,542 104,226 Other accrued expenses 406,423 361,816 $ 998,040 $ 1,408,965 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders Equity [Abstract] | |
Schedule of Warrant Activity | The following is a summary of the Company’s warrant activity for the six months ended June 30, 2024 (unaudited): Weighted Weighted Average Average Number of Exercise Remaining Shares Price Life Outstanding, December 31, 2023 598,267 $ 11.89 3.9 Years Granted 102,547 $ 7.50 5.0 Years Exercised/Cancelled (3,368 ) $ 21.12 - Outstanding, June 30, 2024 697,446 $ 11.20 3.7 Years |
Schedule of Grant Date Fair Value of Options Granted | The Company determined the grant date fair value of options granted for the six months ended June 30, 2024, using the Black Scholes Method, as applicable, with the following assumptions: Expected volatility 122 – 123% Expected term 5 years Risk free rate 3.80% - 4.46% Dividend rate 0.00% |
Schedule of Stock Options | Activity related to stock options for the six months ended June 30, 2024 (unaudited), is summarized as follows: Number Weighted Weighted Aggregate Outstanding at December 31, 2023 1,796,743 $ 25.20 6.5 $ 3,630,733 Granted 113,282 $ 9.19 10.0 $ 15,540 Exercised (15,625 ) $ 5.48 - $ - Forfeited/cancelled (41,581 ) $ 24.88 6.5 $ - Outstanding as of June 30, 2024 1,852,819 $ 24.43 6.2 $ 4,583,031 Exercisable as of June 30, 2024 1,227,820 $ 29.32 5.1 $ 2,422,237 |
Schedule of Stock Option Information | The following table summarizes stock option information as of June 30, 2024 (unaudited): Weighted Average Contractual Exercise Price Outstanding Term (Yrs.) Exercisable $2.64 – $5.00 342,628 8.8 193,339 $5.01 – $10.00 651,381 9.1 269,719 $10.01 – $15.00 43,078 2.4 43,078 $15.01 – $20.00 252,084 1.3 252,084 $20.01 – $121.28 563,648 3.8 469,600 1,852,819 6.2 1,227,820 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Basis of Presentation (Details) [Line Items] | |||||
Accumulated deficit | $ (165,849,353) | $ (165,849,353) | $ (159,530,535) | ||
Revenue | 280,438 | $ 37,142 | 437,816 | $ 74,998 | |
Operations | (2,800,000) | (5,749,651) | (4,173,230) | ||
Operations, and incurred a net loss | (3,261,241) | (10,900,320) | (6,318,818) | (12,681,946) | |
Raised after expenses | 10,000,000 | ||||
Reclassification to general and administrative expenses | $ 64,000 | $ 93,000 | |||
Deferred revenue contract liabilities | 244,000 | 244,000 | 132,000 | ||
Remaining performance obligation | 4,240,000 | 4,240,000 | |||
Deferred revenue | $ 243,772 | 243,772 | $ 131,628 | ||
Non cancellable contracted amounts | $ 4,000,000 | ||||
Percentage of remaining performance obligation | 36% | 36% | |||
Customer Concentration Risk [Member] | Three Customer [Member] | Revenue Benchmark [Member] | |||||
Basis of Presentation (Details) [Line Items] | |||||
Concentration percentage | 76% | 59% | |||
Customer Concentration Risk [Member] | One Customer [Member] | Revenue Benchmark [Member] | |||||
Basis of Presentation (Details) [Line Items] | |||||
Concentration percentage | 51% | 47% | |||
Customer Concentration Risk [Member] | One Customer [Member] | Accounts Receivable [Member] | |||||
Basis of Presentation (Details) [Line Items] | |||||
Concentration percentage | 80% | 67% |
Basis of Presentation (Detail_2
Basis of Presentation (Details) - Schedule of Diluted Loss per Share - shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Diluted Loss per Share [Line Items] | ||
Total dilutive securities | 2,558,542 | 2,067,242 |
Convertible Notes Payable [Member] | ||
Schedule of Diluted Loss per Share [Line Items] | ||
Total dilutive securities | 8,277 | 8,277 |
Warrant [Member] | ||
Schedule of Diluted Loss per Share [Line Items] | ||
Total dilutive securities | 697,446 | 497,895 |
Stock options [Member] | ||
Schedule of Diluted Loss per Share [Line Items] | ||
Total dilutive securities | 1,852,819 | 1,561,070 |
Basis of Presentation (Detail_3
Basis of Presentation (Details) - Schedule of Deferred Contract Cost Activity | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Schedule of Deferred Contract Cost Activity [Abstract] | |
Carrying Value at December 31, 2023 | $ 157,300 |
Additions | 8,294 |
Amortization | (8,859) |
Carrying Value at June 30, 2024 | $ 156,735 |
Other Current Assets (Details)
Other Current Assets (Details) - Schedule of Other Current Assets - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Other Current Assets [Abstract] | ||
Prepaid insurance | $ 310,205 | $ 184,492 |
Prepaid third party services | 461,550 | 291,512 |
Total other current assets | $ 771,755 | $ 476,004 |
Intangible Assets, Net (Other_3
Intangible Assets, Net (Other than Goodwill) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Finite-Lived Intangible Assets [Member] | ||
Intangible Assets, Net (Other than Goodwill) (Details) [Line Items] | ||
Amortization expense | $ 87,000 | $ 152,000 |
Intangible Assets, Net (Other_4
Intangible Assets, Net (Other than Goodwill) (Details) - Schedule of Intangible Assets - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Schedule of Intangible Assets [Line Items] | ||
Carrying Value, Beginning | $ 327,001 | |
Additions | 15,582 | |
Amortization | (87,412) | |
Carrying Value, ending | 255,171 | |
Cost | 1,914,858 | |
Accumulated amortization | (1,659,687) | |
Carrying Value at June 30, 2024 | $ 255,171 | $ 327,001 |
Acquired and Developed Software [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Useful Lives | 5 years | |
Carrying Value, Beginning | $ 212,798 | |
Additions | ||
Amortization | (78,585) | |
Carrying Value, ending | 134,213 | |
Cost | 1,734,662 | |
Accumulated amortization | (1,600,449) | |
Carrying Value at June 30, 2024 | $ 134,213 | |
Patents [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Useful Lives | 10 years | |
Carrying Value, Beginning | $ 114,203 | |
Additions | 15,582 | |
Amortization | (8,827) | |
Carrying Value, ending | 120,958 | |
Cost | 180,196 | |
Accumulated amortization | (59,238) | |
Carrying Value at June 30, 2024 | $ 120,958 |
Intangible Assets, Net (Other_5
Intangible Assets, Net (Other than Goodwill) (Details) - Schedule of Future Amortization of Intangible Assets - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Future Amortization of Intangible Assets [Abstract] | ||
2024 (Remainder of the Year) | $ 87,595 | |
2025 | 70,889 | |
2026 | 20,786 | |
2027 | 18,019 | |
2028 | 18,019 | |
Thereafter | 39,863 | |
Total | $ 255,171 | $ 327,001 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - Schedule of Accounts Payable and Accrued Expenses - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts Payable and Accrued Expenses [Abstract] | ||
Trade payables | $ 248,907 | $ 235,606 |
Accrued payroll and related obligations | 97,168 | 707,317 |
Insurance Premium Liability | 245,542 | 104,226 |
Other accrued expenses | 406,423 | 361,816 |
Total | $ 998,040 | $ 1,408,965 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 27, 2024 | May 20, 2024 | Dec. 21, 2023 | Jul. 12, 2023 | Jun. 28, 2023 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Related Party Transactions [Line Items] | ||||||||||
Unvested option granted (in Shares) | 15,627 | |||||||||
Option to purchase shares of common stock (in Shares) | 12,254 | 4,000 | 25,000 | 12,500 | ||||||
Exercise price (in Dollars per share) | $ 7.78 | $ 9.25 | $ 7.36 | |||||||
Shares vested (in Shares) | 782 | |||||||||
Prepaid expenses | $ 117,000 | $ 117,000 | ||||||||
Fee rate | 70,000 | |||||||||
Other Expenses | $ 285,000 | $ 67,000 | 542,000 | $ 99,000 | ||||||
Salary and sales commission | $ 148,000 | |||||||||
Aggregate price | $ 100,000 | |||||||||
Mr. Trelin [Member] | ||||||||||
Related Party Transactions [Line Items] | ||||||||||
Unvested option granted (in Shares) | 6,511 | |||||||||
Mr. Kunal Mehta [Member] | ||||||||||
Related Party Transactions [Line Items] | ||||||||||
Option to purchase shares of common stock (in Shares) | 13,282 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 27, 2024 | May 26, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 26, 2024 | Dec. 31, 2023 | May 12, 2023 | |
Stockholders’ Equity [Line Items] | |||||||||
Common shares issued | 1,464,965 | 10,920,851 | 10,920,851 | 9,450,220 | |||||
Gross proceeds (in Dollars) | $ 11,000,000 | $ 7,300,000 | $ 10,001,398 | $ 6,383,641 | |||||
Offering costs (in Dollars) | $ 10,000,000 | $ 6,400,000 | |||||||
Exercised shares | 15,625 | ||||||||
Stock Issued During Period, Shares, New Issues | 1,989,676 | ||||||||
Outstanding principal balance (in Dollars) | $ 900,000 | ||||||||
Shares of common stock | 245,634 | ||||||||
Common stock exchange for Convertible Notes | 2,348,347 | ||||||||
Debt issuance costs and discount (in Dollars) | $ 7,900,000 | ||||||||
Expense on conversion of convertible notes (in Dollars) | $ 7,500,000 | ||||||||
Granted shares | 113,282 | ||||||||
Exercise price (in Dollars per share) | $ 9.19 | ||||||||
Option exercise price range shares | 1,852,819 | 1,852,819 | |||||||
Allocation of shares | 444,115 | 444,115 | 395,000 | ||||||
Warrant [Member] | |||||||||
Stockholders’ Equity [Line Items] | |||||||||
Granted total of stock options | 102,547 | 156,712 | 187,500 | ||||||
Maturity term of warrant | 5 years | 5 years | 5 years | ||||||
Warrant exercise price (in Dollars per share) | $ 7.5 | $ 3.664 | $ 3.164 | ||||||
Convertible Note Payable [Member] | |||||||||
Stockholders’ Equity [Line Items] | |||||||||
Gross principal amount (in Dollars) | $ 8,900,000 | ||||||||
Stock Options [Member] | |||||||||
Stockholders’ Equity [Line Items] | |||||||||
Option exercise price range shares | 100,000 | 100,000 | |||||||
Stock Options [Member] | Minimum [Member] | |||||||||
Stockholders’ Equity [Line Items] | |||||||||
Exercise price range lower (in Dollars per share) | $ 9.05 | ||||||||
Stock Options [Member] | Maximum [Member] | |||||||||
Stockholders’ Equity [Line Items] | |||||||||
Exercise price range upper (in Dollars per share) | $ 9.61 | ||||||||
Common Stock [Member] | |||||||||
Stockholders’ Equity [Line Items] | |||||||||
Exercised shares | 5,666 | ||||||||
Stock Issued During Period, Shares, New Issues | 1,464,965 | 1,989,676 | 1,464,965 | 1,989,676 | |||||
Common stock exchange for Convertible Notes | 2,348,347 | 2,348,347 | |||||||
Convertible notes shares issued | 111,516 | ||||||||
Interest accrued amount (in Dollars) | $ 388,000 | ||||||||
Stock Options [Member] | |||||||||
Stockholders’ Equity [Line Items] | |||||||||
Stock option based compensation expense (in Dollars) | 1,500,000 | ||||||||
Unrecognized compensation costs (in Dollars) | $ 1,800,000 | $ 1,800,000 | |||||||
Mr. Kunal Mehta [Member] | Stock Options [Member] | |||||||||
Stockholders’ Equity [Line Items] | |||||||||
Granted shares | 13,282 | ||||||||
Exercise price (in Dollars per share) | $ 7.78 | ||||||||
Mr. Joe Trelin [Member] | Stock Options [Member] | |||||||||
Stockholders’ Equity [Line Items] | |||||||||
Exercise price (in Dollars per share) | $ 5.48 | ||||||||
Accelerate vesting shares | 6,511 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Schedule of Warrant Activity - Warrant [Member] - $ / shares | 6 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2024 | |
Stockholders' Equity (Details) - Schedule of Warrant Activity [Line Items] | ||
Number of Shares, Outstanding | 598,267 | 697,446 |
Weighted Average Exercise Price, Outstanding | $ 11.89 | $ 11.2 |
Weighted Average Remaining Life, Outstanding | 3 years 10 months 24 days | 3 years 8 months 12 days |
Number of Shares, Granted | 102,547 | |
Weighted Average Exercise Price, Granted | $ 7.5 | |
Weighted Average Remaining Life, Granted | 5 years | |
Number of Shares, Exercised/Cancelled | (3,368) | |
Weighted Average Exercise Price, Exercised/Cancelled | $ 21.12 |
Stockholders' Equity (Details_2
Stockholders' Equity (Details) - Schedule of Grant Date Fair Value of Options Granted | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Expected term | 5 years |
Dividend rate | 0% |
Minimum [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Expected volatility | 122% |
Risk free rate | 3.80% |
Maximum [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Expected volatility | 123% |
Risk free rate | 4.46% |
Stockholders' Equity (Details_3
Stockholders' Equity (Details) - Schedule of Stock Options - USD ($) | 6 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2024 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of Shares, Outstanding | 1,796,743 | 1,852,819 |
Weighted Average Exercise Price, Outstanding | $ 25.2 | $ 24.43 |
Weighted Average Contractual Term (Yrs.), Outstanding | 6 years 6 months | 6 years 2 months 12 days |
Aggregate Intrinsic Value, Outstanding | $ 3,630,733 | $ 4,583,031 |
Number of Shares, Exercisable | 1,227,820 | |
Weighted Average Exercise Price, Exercisable | $ 29.32 | |
Weighted Average Contractual Term (Yrs.), Exercisable | 5 years 1 month 6 days | |
Aggregate Intrinsic Value, Exercisable | $ 2,422,237 | |
Number of Shares, Granted | 113,282 | |
Weighted Average Exercise Price, Granted | $ 9.19 | |
Weighted Average Contractual Term (Yrs.), Granted | 10 years | |
Aggregate Intrinsic Value, Granted | $ 15,540 | |
Number of Shares, Exercised | (15,625) | |
Weighted Average Exercise Price, Exercised | $ 5.48 | |
Weighted Average Contractual Term (Yrs.),Exercised | ||
Aggregate Intrinsic Value, Exercised | ||
Number of Shares, Forfeited/cancelled | (41,581) | |
Weighted Average Exercise Price, Forfeited/cancelled | $ 24.88 | |
Weighted Average Contractual Term (Yrs.), Forfeited/cancelled | 6 years 6 months | |
Aggregate Intrinsic Value, Forfeited/cancelled |
Stockholders' Equity (Details_4
Stockholders' Equity (Details) - Schedule of Stock Option Information | 6 Months Ended |
Jun. 30, 2024 shares | |
Schedule of Stock Option Information [Line Items] | |
Outstanding | 1,852,819 |
Weighted Average Contractual Term (Yrs.) | 6 years 2 months 12 days |
Exercisable | 1,227,820 |
$2.64 – $5.00 [Member] | |
Schedule of Stock Option Information [Line Items] | |
Outstanding | 342,628 |
Weighted Average Contractual Term (Yrs.) | 8 years 9 months 18 days |
Exercisable | 193,339 |
$5.01 – $10.00 [Member] | |
Schedule of Stock Option Information [Line Items] | |
Outstanding | 651,381 |
Weighted Average Contractual Term (Yrs.) | 9 years 1 month 6 days |
Exercisable | 269,719 |
$10.01 – $15.00 [Member] | |
Schedule of Stock Option Information [Line Items] | |
Outstanding | 43,078 |
Weighted Average Contractual Term (Yrs.) | 2 years 4 months 24 days |
Exercisable | 43,078 |
$15.01 – $20.00 [Member] | |
Schedule of Stock Option Information [Line Items] | |
Outstanding | 252,084 |
Weighted Average Contractual Term (Yrs.) | 1 year 3 months 18 days |
Exercisable | 252,084 |
$20.01 – $121.28 [Member] | |
Schedule of Stock Option Information [Line Items] | |
Outstanding | 563,648 |
Weighted Average Contractual Term (Yrs.) | 3 years 9 months 18 days |
Exercisable | 469,600 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 6 Months Ended | |
Jul. 31, 2024 | Jun. 30, 2024 | |
Subsequent Events (Details) [Line Items] | ||
Total Annual Compensation Equal | $ 125,000 | |
Annual cash compensation | 8,000 | |
Outstanding compensation payable in quarterly | 10,000 | |
Annual equity compensation | $ 117,000 | |
Stock option term | 10 years | |
Shares option (in Shares) | 15,627 | |
Subsequent Event [Member] | Remaining Performance Obligation [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Contract to defer minimum payment | $ 1,300,000 |