Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 14, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | INNOVATIVE PAYMENT SOLUTIONS, INC. | |
Trading Symbol | N/A | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 376,901,679 | |
Amendment Flag | false | |
Entity Central Index Key | 0001591913 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-55648 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 33-1230229 | |
Entity Address, Address Line One | 56B 5th Avenue | |
Entity Address, Address Line Two | Lot 1 #AT | |
Entity Address, City or Town | Carmel By The Sea | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 93921 | |
City Area Code | (866) | |
Local Phone Number | 477-4729 | |
Entity Interactive Data Current | Yes | |
Security Exchange Name | NONE | |
Title of 12(b) Security | N/A |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash | $ 1,352,983 | $ 5,449,751 |
Other current assets | 133,880 | 85,034 |
Total Current Assets | 1,486,863 | 5,534,785 |
Non-current assets | ||
Plant and equipment | 52,434 | 28,799 |
Intangible assets | 1,198,011 | 625,000 |
Security deposit | 47,592 | 34,800 |
Investment | 500,001 | 500,001 |
Total Non-Current Assets | 1,798,038 | 1,188,600 |
Total Assets | 3,284,901 | 6,723,385 |
Current Liabilities | ||
Accounts payable | 574,825 | 465,205 |
Convertible debt, net of unamortized discount of $0 and $263,200, respectively | 2,210,802 | 1,961,354 |
Derivative liability | 710,389 | 407,161 |
Total Current Liabilities | 3,496,016 | 2,833,720 |
Non-Current Liabilities | ||
Federal relief loans | 162,560 | 158,353 |
Total Non-Current Liabilities | 162,560 | 158,353 |
Total Liabilities | 3,658,576 | 2,992,073 |
Equity (Deficit) | ||
Preferred stock, $0.0001 par value, 25,000,000 shares authorized, and 0 shares issued and outstanding as of September 30, 2022 and December 31, 2021. | ||
Common stock, $0.0001 par value; 750,000,000 and 500,000,000 shares authorized, 376,901,679 and 367,901,679 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively. | 37,690 | 36,790 |
Additional paid-in-capital | 47,863,546 | 45,771,012 |
Accumulated deficit | (48,290,394) | (42,111,701) |
Total equity (deficit) attributable to Innovative Payment Solutions, Inc. Stockholders | (389,158) | 3,696,101 |
Non-controlling interest | 15,483 | 35,211 |
Total Equity (deficit) | (373,675) | 3,731,312 |
Total Liabilities and Equity (Deficit) | $ 3,284,901 | $ 6,723,385 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Convertible debt, net of unamortized discount (in Dollars) | $ 0 | $ 263,200 |
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 25,000,000 | 25,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 750,000,000 | 500,000,000 |
Common stock, issued | 376,901,679 | 367,901,679 |
Common stock, outstanding | 376,901,679 | 367,901,679 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Net Revenue | ||||
Cost of Goods Sold | ||||
Gross profit | ||||
General and administrative | 2,721,451 | 2,747,693 | 4,386,375 | 9,457,134 |
Depreciation and amortization | 20,500 | 4,642 | 29,493 | 13,293 |
Total Expense | 2,741,951 | 2,752,335 | 4,415,868 | 9,470,427 |
Loss from Operations | (2,741,951) | (2,752,335) | (4,415,868) | (9,470,427) |
Loss on debt conversion | (5,184,447) | |||
Penalty on convertible notes | (602,100) | (1,321,658) | ||
Interest expense | (51,340) | (53,903) | (142,302) | (174,587) |
Amortization of debt discount | (515,200) | (263,200) | (3,138,452) | |
Derivative liability movements | 84,895 | 1,578,361 | (65,046) | 4,714,451 |
Loss before Income Taxes | (3,310,496) | (1,743,077) | (6,208,074) | (13,253,462) |
Income Taxes | ||||
Net Loss | (3,310,496) | (1,743,077) | (6,208,074) | (13,253,462) |
Net loss attributable to non-controlling interest | 7,652 | 29,381 | ||
Net loss attributable to Innovative Payment Solutions, Inc. stockholders | $ (3,302,844) | $ (1,743,077) | $ (6,178,693) | $ (13,253,462) |
Basic and diluted loss per share (in Dollars per share) | $ (0.01) | $ 0 | $ (0.02) | $ (0.04) |
Weighted Average Number of Shares Outstanding – Basic and diluted (in Shares) | 375,956,027 | 364,722,331 | 370,615,966 | 323,034,956 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Basic and diluted loss per share | $ (0.01) | $ 0 | $ (0.02) | $ (0.04) |
Weighted Average Number of Shares Outstanding – Basic and diluted | 375,956,027 | 364,722,331 | 370,615,966 | 323,034,956 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Non-controlling shareholders interest | Total |
Balance at Dec. 31, 2020 | $ 19,363 | $ 23,179,399 | $ (27,629,575) | $ (4,430,813) | ||
Balance (in Shares) at Dec. 31, 2020 | 193,637,747 | |||||
Fair value of warrants issued as compensation | 4,327,899 | 4,327,899 | ||||
Warrants exercised | $ 4,407 | 2,199,307 | 2,203,714 | |||
Warrants exercised (in Shares) | 44,074,284 | |||||
Share subscriptions | $ 3,033 | 4,546,967 | 4,550,000 | |||
Share subscriptions (in Shares) | 30,333,334 | |||||
Share issue expenses | (501,100) | (501,100) | ||||
Conversion of debt to equity | $ 6,180 | 7,437,488 | 7,443,668 | |||
Conversion of debt to equity (in Shares) | 61,793,616 | |||||
Stock based compensation | $ 250 | 213,499 | 213,749 | |||
Stock based compensation (in Shares) | 2,500,000 | |||||
Net loss | (11,394,106) | (11,394,106) | ||||
Balance at Mar. 31, 2021 | $ 33,233 | 41,403,459 | (39,023,681) | 2,413,011 | ||
Balance (in Shares) at Mar. 31, 2021 | 332,338,981 | |||||
Balance at Dec. 31, 2020 | $ 19,363 | 23,179,399 | (27,629,575) | (4,430,813) | ||
Balance (in Shares) at Dec. 31, 2020 | 193,637,747 | |||||
Net loss | (13,253,462) | |||||
Balance at Sep. 30, 2021 | $ 36,789 | 45,299,411 | (40,883,037) | 4,453,163 | ||
Balance (in Shares) at Sep. 30, 2021 | 367,901,679 | |||||
Balance at Mar. 31, 2021 | $ 33,233 | 41,403,459 | (39,023,681) | 2,413,011 | ||
Balance (in Shares) at Mar. 31, 2021 | 332,338,981 | |||||
Shares issued for services | $ 800 | 775,200 | 776,000 | |||
Shares issued for services (in Shares) | 8,000,000 | |||||
Warrants exercised | $ 1,611 | 804,024 | 805,635 | |||
Warrants exercised (in Shares) | 16,112,698 | |||||
Stock based compensation | 72,141 | 72,141 | ||||
Net loss | (116,279) | (116,279) | ||||
Balance at Jun. 30, 2021 | $ 35,644 | 43,054,824 | (39,139,960) | 3,950,508 | ||
Balance (in Shares) at Jun. 30, 2021 | 356,451,679 | |||||
Shares issued for services | $ 565 | 442,485 | 443,050 | |||
Shares issued for services (in Shares) | 5,650,000 | |||||
Stock based compensation | $ 580 | 1,802,102 | 1,802,682 | |||
Stock based compensation (in Shares) | 5,800,000 | |||||
Net loss | (1,743,077) | (1,743,077) | ||||
Balance at Sep. 30, 2021 | $ 36,789 | 45,299,411 | (40,883,037) | 4,453,163 | ||
Balance (in Shares) at Sep. 30, 2021 | 367,901,679 | |||||
Balance at Dec. 31, 2021 | $ 36,790 | 45,771,012 | (42,111,701) | 35,211 | 3,731,312 | |
Balance (in Shares) at Dec. 31, 2021 | 367,901,679 | |||||
Stock based option expense | 94,466 | 94,466 | ||||
Restricted stock awards | 62,766 | 62,766 | ||||
Net loss | (1,801,494) | (8,752) | (1,810,246) | |||
Balance at Mar. 31, 2022 | $ 36,790 | 45,928,244 | (43,913,195) | 26,459 | 2,078,298 | |
Balance (in Shares) at Mar. 31, 2022 | 367,901,679 | |||||
Balance at Dec. 31, 2021 | $ 36,790 | 45,771,012 | (42,111,701) | 35,211 | 3,731,312 | |
Balance (in Shares) at Dec. 31, 2021 | 367,901,679 | |||||
Net loss | (6,208,074) | |||||
Balance at Sep. 30, 2022 | $ 37,690 | 47,863,546 | (48,290,394) | 15,483 | (373,675) | |
Balance (in Shares) at Sep. 30, 2022 | 376,901,679 | |||||
Balance at Mar. 31, 2022 | $ 36,790 | 45,928,244 | (43,913,195) | 26,459 | 2,078,298 | |
Balance (in Shares) at Mar. 31, 2022 | 367,901,679 | |||||
Contribution by minority shareholders | 9,653 | 9,653 | ||||
Stock based option expense | 94,462 | 94,462 | ||||
Restricted stock awards | 62,766 | 62,766 | ||||
Net loss | (1,074,355) | (12,977) | (1,087,332) | |||
Balance at Jun. 30, 2022 | $ 36,790 | 46,085,472 | (44,987,550) | 23,135 | 1,157,847 | |
Balance (in Shares) at Jun. 30, 2022 | 367,901,679 | |||||
Fair value of warrants issued as compensation | 322,918 | 322,918 | ||||
Shares issued for services | $ 700 | 332,300 | 333,000 | |||
Shares issued for services (in Shares) | 7,000,000 | |||||
Stock based option expense | 1,013,056 | 1,013,056 | ||||
Restricted stock awards | $ 200 | 109,800 | 110,000 | |||
Restricted stock awards (in Shares) | 2,000,000 | |||||
Net loss | (3,302,844) | (7,652) | (3,310,496) | |||
Balance at Sep. 30, 2022 | $ 37,690 | $ 47,863,546 | $ (48,290,394) | $ 15,483 | $ (373,675) | |
Balance (in Shares) at Sep. 30, 2022 | 376,901,679 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (6,208,074) | $ (13,253,462) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Derivative liability movements | 65,046 | (4,714,451) |
Depreciation | 29,493 | 13,293 |
Amortization of debt discount | 263,200 | 3,138,452 |
Loss on conversion of debt to equity | 5,184,447 | |
Penalty on convertible debt | 1,321,658 | |
Deposit forfeited | 4,000 | |
Shares issued for services | 333,000 | 1,219,050 |
Stock based compensation | 1,437,516 | 6,416,471 |
Fair value of warrants issued | 322,918 | |
Amortization of right of use asset | 17,857 | |
Changes in Assets and Liabilities | ||
Other current assets | (48,846) | (53,834) |
Accounts payable and accrued expenses | 109,621 | 17,545 |
Operating lease liabilities | (17,857) | |
Interest accruals | 54,042 | 144,773 |
CASH USED IN OPERATING ACTIVITIES | (2,320,426) | (1,883,716) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Investment in intangibles | (585,640) | (250,000) |
Investment in Frictionless Financial Technologies Inc. | (500,000) | |
Deposits paid | (12,792) | (4,800) |
Plant and equipment purchased | (40,500) | (9,234) |
NET CASH USED IN INVESTING ACTIVITIES | (638,932) | (764,034) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from minority shareholder contributions | 9,653 | |
Proceeds from share issuances | 4,550,000 | |
Share issue expenses | (501,100) | |
Pr0oceeds from warrants exercised | 3,009,349 | |
Repayment of loans payable | (22,049) | |
Repayment of convertible notes | (1,147,063) | (521,000) |
Proceeds from short term notes and convertible notes | 2,569,000 | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | (1,137,410) | 9,084,200 |
NET INCREASE (DECREASE) IN CASH | (4,096,768) | 6,436,450 |
CASH AT BEGINNING OF PERIOD | 5,449,751 | 94,703 |
CASH AT END OF PERIOD | 1,352,983 | 6,531,153 |
CASH PAID FOR INTEREST AND TAXES: | ||
Cash paid for income taxes | ||
Cash paid for interest | 88,260 | 29,813 |
NON CASH INVESTING AND FINANCING ACTIVITIES | ||
De-recognition of right of use lease on early termination | 34,070 | |
Conversion of convertible debt to equity | 2,259,221 | |
Debt discount on convertible debt |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 9 Months Ended |
Sep. 30, 2022 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | 1 ORGANIZATION AND DESCRIPTION OF BUSINESS a) Organizational History On May 12, 2016, Innovative Payment Solutions, Inc., a Nevada corporation (“IPSI” or the “Company”) (originally formed on September 23, 2013 under the name “Asiya Pearls, Inc.”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Qpagos Corporation, a Delaware corporation (“Qpagos Corporation”), and Qpagos Merge, Inc., a Delaware corporation and wholly owned subsidiary of the Company (“Merger Sub”). Pursuant to the Merger Agreement, on May 12, 2016, the merger was consummated, and Qpagos Corporation and Merger Sub merged (the “Merger”), with Qpagos Corporation continuing as the surviving corporation of the Merger. On May 27, 2016, the Company’s name was changed from “Asiya Pearls, Inc.” to “QPAGOS”. Pursuant to the Merger Agreement, upon consummation of the Merger, each share of Qpagos Corporation’s capital stock issued and outstanding immediately prior to the Merger was converted into the right to receive two shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”). Additionally, pursuant to the Merger Agreement, upon consummation of the Merger, the Company assumed all of Qpagos Corporation’s warrants issued and outstanding immediately prior to the Merger, which were exercisable for an aggregate of approximately 621,920 shares of Common Stock as of the date of the Merger. Prior to and as a condition to the closing of the Merger, a then-current holder of 500,000 shares of Common Stock agreed to return 497,500 shares of Common Stock held by such holder to the Company and such holder retained an aggregate of 2,500 shares of Common Stock. The other then stockholders of the Company retained 500,000 shares of Common Stock. Therefore, immediately following the Merger, Qpagos Corporation’s former stockholders held 4,992,900 shares of Common Stock which represented approximately 91% of the outstanding Common Stock. The Merger was treated as a reverse acquisition of the Company, then a public shell company, for financial accounting and reporting purposes. As such, Qpagos Corporation was treated as the acquirer for accounting and financial reporting purposes while the Company was treated as the acquired entity for accounting and financial reporting purposes. Qpagos Corporation was incorporated on May 1, 2015 under the laws of the state of Delaware to effectuate a reverse merger transaction with Qpagos, S.A.P.I. de C.V. (“Qpagos Mexico”) and Redpag Electrónicos S.A.P.I. de C.V. (“Redpag”). Each of the entities were incorporated in November 2013 in Mexico. Qpagos Mexico was formed to process payment transactions for service providers it contracts with, and Redpag was formed to deploy and operate kiosks as a distributor. On June 1, 2016, the board of directors of the Company (the “Board”) changed the Company’s fiscal year end from October 31 to December 31. On November 1, 2019, the Company changed its corporate name from “QPAGOS” to “Innovative Payment Solutions, Inc.” Additionally, and immediately following the name change, the Company filed a Certificate of Change with the Secretary of State of the State of Nevada to effect a reverse split of the then outstanding Common Stock at a ratio of 1-for-10, effective on November 1, 2019 (the “Reverse Stock Split”). As a result of the Reverse Stock Split, each ten pre-split shares of Common Stock outstanding automatically combined into one new share of Common Stock without any further action on the part of the holders, and the number of outstanding shares of Common Stock was reduced from 320,477,867 shares to 32,047,817 after rounding for fractional shares. On December 31, 2019, the Company consummated the disposal of Qpagos Corporation, Qpagos Mexico and Redpag in exchange for 2,250,000 shares (the “Vivi Shares”) of common stock of Vivi Holdings, Inc. (“Vivi” or “Vivi Holdings”) pursuant to a Stock Purchase Agreement dated August 5, 2019 (the “SPA”). Of the 2,250,000 shares of Vivi, nine percent (9%) was allocated as follows: Gaston Pereira (5%), Andrey Novikov (2.5%), and Joseph Abrams (1.5%). The transactions contemplated by the SPA closed on December 31, 2019 after the satisfaction of customary conditions, the receipt of a final fairness opinion and the approval of the Company’s shareholders. As a result, the Company no longer has any business operations in Mexico and has retained its U.S. operations, currently based in Carmel By The Sea, California. b) Description of current business The Company is presently focused on operating and developing e-wallets that enable consumers to deposit cash, convert it into a digital form and remit the funds to Mexico and other countries quickly and securely. The Company’s first e-wallet, Beyond Wallet, is currently operational and is focused on business customers. The Company’s flagship e-wallet, IPSIPay, is also fully operational. IPSIPay, which is focused on individual customers, was first launched in December 2021 and its commercial launch has continued during 2022. Previously the Company intended to invest in physical kiosks, which required the user presence at the kiosk location. The Company still intends to use its existing kiosks in certain target markets within Southern California, but its principal focus will be on downloadable apps used via smartphones. The Company acquired a 10% strategic interest in Frictionless Financial Technologies, Inc. (“Frictionless”) on June 22, 2021. Frictionless agreed to deliver to the Company, a live fully compliant financial payment Software as a Service solution for use by the Company as a digital payment platform that enables payments within the United States and abroad, including Mexico, together with a service agreement providing a full suite of product services to facilitate the Company’s anticipated product offerings. The Company has an irrevocable right to acquire up to an additional 41% of the outstanding common stock of Frictionless at a purchase price of $300,000 for each 1% acquired. On August 26, 2021, the Company formed a new subsidiary, Beyond Fintech, Inc. (“Beyond Fintech”), in which it owns a 51% stake, with Frictionless owning the remaining 49%. Beyond Fintech acquired an exclusive license to a product known as Beyond Wallet, to further its objective of providing virtual payment services allowing U.S. persons to transfer funds to Mexico and other countries. |
ACCOUNTING POLICIES AND ESTIMAT
ACCOUNTING POLICIES AND ESTIMATES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES AND ESTIMATES | 2 ACCOUNTING POLICIES AND ESTIMATES a) Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments (consisting only of normal recurring adjustments), which the Company considers necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the nine months ended September 30, 2022 may not necessarily be indicative of results that may be expected for any succeeding quarter or for the entire fiscal year. The information contained in this Quarterly Report on Form 10-Q (“Report”) should be read in conjunction with the audited financial statements of IPSI for the year ended December 31, 2021, included in the Annual Report on Form 10-K as filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2022. All amounts referred to in the notes to the unaudited condensed financial statements are in United States Dollars ($) unless stated otherwise. b) Principles of Consolidation The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiary in which it has a majority voting interest. All significant inter-company accounts and transactions have been eliminated in the unaudited condensed consolidated financial statements. The entities included in the accompanying unaudited condensed consolidated financial statements are as follows: Innovative Payment Solutions, Inc. - Parent Company Beyond Fintech Inc., 51% owned. c) Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to, the estimated useful lives for plant and equipment, the fair value of long-lived investments, the fair value of warrants and stock options granted for services or compensation, estimates of the probability and potential magnitude of contingent liabilities, derivative liabilities, the valuation allowance for deferred tax assets due to continuing operating losses and the allowance for doubtful accounts. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited condensed consolidated financial statements, which management considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates. d) Contingencies Certain conditions may exist as of the date the financial statements are issued, which may result in the generation of continuing losses by the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s unaudited condensed consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. e) Fair Value of Financial Instruments The Company adopted the guidance of Accounting Standards Codification (“ASC”) 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for the investment in Vivi Holdings was evaluated at fair value using Level 3 Inputs based on the Company’s estimate of the market value of the entities disposed to Vivi Holdings. Vivi Holdings does not have sufficient information available to assess the current market price of its equity. The carrying amounts reported in the balance sheets for cash, accounts receivable, other current assets, other assets, accounts payable, accrued liabilities, and notes payable, approximate fair value due to the relatively short period to maturity for these instruments. The Company has identified the short-term convertible notes and certain warrants attached to certain of the notes that are required to be presented on the balance sheets at fair value in accordance with the accounting guidance. ASC 825-10 “ Financial Instruments f) Risks and Uncertainties The Company’s operations are and will be subject to significant risks and uncertainties including financial, operational, regulatory, and other risks, including the potential risk of business failure. These risks include, without limitation, risks associated with (i) COVID-19 and its variants, (ii) launching and scaling the Company’s e-wallet and related products and the use by customers of such products, (iii) developing and implementing successful marketing campaigns and other strategic initiatives; (iv) competition, (iv) compliance with applicable laws, rules and regulations (including those related to fund remittance); (v) the Company’s outstanding indebtedness, including the Company’s ability to repay or extend the maturity of such indebtedness (see Note 8); (vi) inflation and other economic factors and (vii) the Company’s ability to obtain necessary financing. These conditions may not only limit the Company’s access to capital, but also make it difficult for its customers, vendors and the Company to accurately forecast and plan future business activities. The Company’s results may also be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things. Many of these risks are beyond the Company’s control and are unpredictable. The Company may be unable to adequately manage such risks and similar risks, which could impair the viability of the Company. g) Recent accounting pronouncements The Financial Accounting Standards Board (“FASB”) issued additional updates during the quarter ended September 30, 2022. None of these standards are either applicable to the Company or require adoption at a future date and none are expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption. h) Reporting by Segment No segmental information is required as the Company has not generated any revenue for the nine months ended September 30, 2022 and 2021 and only has one operating segment. i) Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. At September 30, 2022 and 2021, respectively, the Company had no cash equivalents. The Company minimizes credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution in the United States. The balance at times may exceed federally insured limits. At September 30, 2022 and December 31, 2021, the balance exceed the federally insured limit by $1,094,504 and $5,117,551, respectively. j) Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are reported at realizable value, net of allowances for doubtful accounts, which is estimated and recorded in the period the related revenue is recorded. The Company has a standardized approach to estimate and review the collectability of its receivables based on a number of factors, including the period they have been outstanding. Historical collection and payer reimbursement experience is an integral part of the estimation process related to allowances for doubtful accounts. In addition, the Company regularly assesses the state of its billing operations in order to identify issues, which may impact the collectability of these receivables or reserve estimates. Revisions to the allowance for doubtful accounts estimates are recorded as an adjustment to bad debt expense. Receivables deemed uncollectible are charged against the allowance for doubtful accounts at the time such receivables are written-off. Recoveries of receivables previously written-off are recorded as credits to the allowance for doubtful accounts. There were no recoveries during the period ended September 30, 2022 and December 31, 2021. k) Investments The Company’s non-marketable equity securities are investments in privately held companies without readily determinable market values. The carrying value of our non-marketable equity securities is adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment (referred to as the measurement alternative). All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in other income (expense), net. Non-marketable equity securities that have been remeasured during the period are classified within Level 3 in the fair value hierarchy because the Company estimates the value based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the securities the Company holds. The cost method is used when the Company has a passive, long-term investment that doesn’t result in influence over the Company. The cost method is used when the investment results in an ownership stake of less than 20%, and there is no substantial influence. Under the cost method, the stock purchased is recorded on a balance sheet as a non-current asset at the historical acquisition/purchase price, and is not modified unless shares are sold, additional shares are purchased or there is evidence of the fair market value of the investment declining below carrying value. Any dividends received are recorded as income. l) Plant and Equipment Plant and equipment is stated at cost, less accumulated depreciation. Plant and equipment with costs greater than $1,000 are capitalized and depreciated. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of the assets are as follows: Description Estimated Useful Life Kiosks (not used in the Company’s current business) 7 years Computer equipment 3 years Leasehold improvements Lesser of estimated useful life or life of lease Office equipment 10 years The cost of repairs and maintenance is expensed as incurred. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. m) Long-Term Assets Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. n) Revenue Recognition The Company’s revenue recognition policy is consistent with the requirements of FASB ASC 606, Revenue Recognition The Company’s revenues will be recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those services. The Company derives its revenues from the sale of its services, as defined below. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its revenue transactions: i. identify the contract with a customer; ii. identify the performance obligations in the contract; iii. determine the transaction price; iv. allocate the transaction price to performance obligations in the contract; and v. recognize revenue as the performance obligation is satisfied. The Company had no revenues during the nine months ended September 30, 2022 and 2021. o) Share-Based Payment Arrangements Generally, all forms of share-based payments, including stock option grants, restricted stock grants and stock appreciation rights are measured at their fair value on the awards’ grant date, based on the estimated number of awards that are ultimately expected to vest. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable. The expense resulting from share-based payments is recorded in operating expenses in the consolidated statement of operations. Prior to the Company’s reverse merger which took place on May 12, 2016, all share-based payments were based on management’s estimate of market value of the Company’s equity. The factors considered in determining managements estimate of market value includes, assumptions of future revenues, expected cash flows, market acceptability of our technology and the current market conditions. These assumptions are complex and highly subjective, compounded by the business being in its early stage of development in a new market with limited data available. Where equity transactions with arms-length third parties, who had applied their own assumptions and estimates in determining the market value of our equity, had taken place prior to and within a reasonable time frame of any share-based payments, the value of those share transactions have been used as the fair value for any share-based equity payments. Where equity transactions with arms-length third parties, included both shares and warrants, the value of the warrants have been eliminated from the unit price of the securities using a Black-Scholes valuation model to determine the value of the warrants. The assumptions used in the Black Scholes valuation model includes market related interest rates for risk-free government issued treasury securities with similar maturities; the expected volatility of the Common Stock based on companies operating in similar industries and markets; the estimated stock price of the Company; the expected dividend yield of the Company and; the expected life of the warrants being valued. Subsequent to the Company’s reverse merger which took place on May 12, 2016, the Company has utilized the market value of its Common Stock as quoted on the OTCQB, as an indicator of the fair value of its Common Stock in determining share- based payment arrangements. p) Derivative Liabilities ASC Topic 815, Derivatives and hedging q) Income Taxes The Company is based in the US and currently enacted US tax laws are used in the calculation of income taxes. Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A full valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of September 30, 2022 and December 31, 2021, there have been no interest or penalties incurred on income taxes. r) Comprehensive income Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. The Company does not have any comprehensive income (loss) for the periods presented. s) Reclassification of prior year presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. |
LIQUIDITY MATTERS
LIQUIDITY MATTERS | 9 Months Ended |
Sep. 30, 2022 | |
Liquidity Matters [Abstract] | |
LIQUIDITY MATTERS | 3 LIQUIDITY MATTERS The Company has incurred net losses since its inception and anticipates net losses and negative operating cash flows for the near future. For and as of the end of nine months ended September 30, 2022, the Company had a net loss of $6,208,074. In connection with preparing the unaudited condensed consolidated financial statements for the nine months ended September 30, 2022, management evaluated the risks described in Note 2(f) above on the Company’s business and its future liquidity for the next twelve months from the date of issuance of these financial statements. The Company had a cash balance of $1,352,983 available as of September 30, 2022. Based on its evaluation of the Compa However, given the Company’s losses, negative cash flows and existing indebtedness, the Company will be required to raise significant additional funds to progress its business as planned by issuing equity or equity-linked securities. Should this occur, the Company’s stockholders would experience dilution, perhaps significantly. Additional debt financing, if available, may involve covenants restricting the Company’s operations or its ability to incur additional debt. Any additional debt financing or additional equity that the Company raises may contain terms that are not favorable to the Company or its stockholders and require significant debt service payments, which diverts resources from other activities. Moreover, there is a risk that financing may be unavailable to support the Company’s operations on favorable terms, or at all. There is also a significant risk that none of the Company’s plans to raise financing will be implemented in a manner necessary to sustain the Company for an extended period of time. If adequate funds are not available to the Company when needed, the Company may be required to continue with reduced operations or to obtain funds through arrangements that may require the Company to relinquish rights to technologies or potential markets, any of which could have a material adverse effect on the Company. In addition, the Company’s inability to secure additional funding when needed could cause the Company’s business to fail or become bankrupt or force the Company to wind down or discontinue operations. |
INTANGIBLES
INTANGIBLES | 9 Months Ended |
Sep. 30, 2022 | |
Intangibles [Abstract] | |
INTANGIBLES | 4 INTANGIBLES On August 26, 2021, the Company formed a subsidiary, Beyond Fintech. to acquire a product known as Beyond Wallet from a third party for gross proceeds of $250,000, together with the logo, use of name and implementation of the product into the Company’s technology. The Company owns 51% of Beyond Fintech with the other 49% owned by Frictionless. During the year ended December 31, 2021, the Company paid gross proceeds of $375,000 to Frictionless for the development of the IPSIPay wallet, and during the nine months ended September 30, 2022, an additional $544,320 was spent by the Company to facilitate the functioning of the IPSIPay software in the cloud environment. Beyond Fintech spent an additional $41,320 on software to further enhance the Beyond Wallet product offering. September 30, December 31, Purchased Technology $ 1,210,640 $ 625,000 Accumulated amortization (12,629 ) - $ 1,198,011 $ 625,000 Amortization expense was $12,629 for the three and nine months ended September 30, 2022 and $0 for the three and the nine months ended September 30, 2021. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS | 5 INVESTMENTS Investment in Frictionless Financial Technologies Inc. On June 22, 2021, the Company entered into a Stock Purchase Agreement (the “SPA”) with Frictionless, to purchase 150 common shares for gross proceeds of $500,000, representing 10.0% of the outstanding common shares. In terms of the SPA, Frictionless agreed to deliver to the Company on or before August 30, 2021, a live fully compliant financial payment software as a service solution for use by the Company as a digital payment platform that enables payments within the United States and abroad, including Mexico, together with a service agreement providing a full suite of product services to facilitate to Company’s product offerings. The Company’s IPSIPay app is the digital payment platform developed by Frictionless for the Company, and currently Frictionless provides back-end technical services to the Company relating to IPSIPay. The Company has undertaken to issue Frictionless a non-restricted, non-dilutable 5 year warrant to purchase 30,000,000 shares of Common Stock at an exercise price of $0.15 per share, upon delivery of the financial payment software. Frictionless has delivered the IPSIPay-related software and the warrants will be issued in accordance with the agreement. The Company has the right to appoint, and has appointed, one member to the board of directors of Frictionless, which appointee will remain on the board as long as the Company is the holder of the Frictionless common stock. The Company has an irrevocable right to acquire up to an additional 41% of the outstanding common stock of Frictionless at a purchase price of $300,000 for each 1% acquired. The shares in Frictionless are unlisted as of September 30, 2022. Investment in Vivi Holdings, Inc. Effective December 31, 2019, the Company sold 100% of the outstanding common stock of its subsidiary, Qpagos Corporation, together with its 99.9% ownership interest of Qpagos Corporation’s two Mexican entities: Qpagos S.A.P.I. de C.V. and Redpag Electrónicos S.A.P.I. de C.V, to Vivi. As consideration for the disposal, Vivi issued an aggregate of 2,250,000 Vivi Shares as follows: 2,047,500 Vivi Shares to the Company; 56,250 Vivi Shares to the Company’s designee, Mr. Andrey Novikov; 33,750 Vivi Shares to the Company’s designee, the Joseph W. & Patricia G. Abrams Family Trust; and 112,500 Vivi Shares to the Company’s designee, Mr. Gaston Pereira. Due to the lack of available information, the Vivi Shares were valued by a modified market method, whereby the value of the assets disposed of were determined by management using the enterprise value of the entire Company less the liabilities and assets retained by the Company. As of September 30, 2022 and December 31, 2021, the Company maintained the impairment of the carrying value of the investment in Vivi Holdings based on no activity by Vivi’s management for its proposed initial public offering and fund raising activities. The total impairment as of September 30, 2022 and December 31, 2021 was $1,019,960. The shares in Vivi Holdings are unlisted as of September 30, 2022. September 30, December 31, Investment in Frictionless Financial Technologies, Inc. $ 500,000 $ 500,000 Investment in Vivi Holdings, Inc. 1 1 $ 500,001 $ 500,001 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
LEASES | 6 LEASES On March 22, 2021, the Company entered into a real property lease for an office located at 56B 5 th Total Lease Cost Individual components of the total lease cost incurred by the Company is as follows: Nine months Nine months Operating lease expense $ 43,200 $ 17,857 Other lease information: Nine 2022 Nine Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ (45,200 ) $ (60,403 ) Remaining lease term – operating lease - 6 months Maturity of Operating Leases The amount of future minimum lease payments under operating leases are as follows: Amount Undiscounted minimum future lease payments under leases with terms twelve months or less Total instalments due: 2022 $ - |
FEDERAL RELIEF LOANS
FEDERAL RELIEF LOANS | 9 Months Ended |
Sep. 30, 2022 | |
Federal Relief Loans [Abstract] | |
FEDERAL RELIEF LOANS | 7 FEDERAL RELIEF LOANS Small Business Administration Disaster Relief loan On July 7, 2020, the Company received a Small Business Economic Injury Disaster loan amounting to $150,000, bearing interest at 3.75% per annum and repayable in monthly installments of $731 commencing twelve months after inception with the balance of interest and principal repayable on July 7, 2050. The loan is secured by all tangible and intangible assets of the Company. The proceeds are to be used for working capital purposes to alleviate economic injury caused by the COVID-19 pandemic. The Company has accrued interest of $12,560 on this loan as of September 30, 2022. |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 9 Months Ended |
Sep. 30, 2022 | |
Convertible Notes Payable [Abstract] | |
CONVERTIBLE NOTES PAYABLE | 8 CONVERTIBLE NOTES PAYABLE Convertible notes payable consists of the following: Description Effective Interest Maturity date Principal Accrued Unamortized September 30, December 31, Cavalry Fund I LP 28.7 % November 16, 2022 $ 1,091,754 $ 13,647 $ - $ 1,105,401 $ 548,872 Mercer Street Global Opportunity Fund, LLC 28.7 % November 16, 2022 1,091,754 13,647 - 1,105,401 548,872 Bellridge Capital LP. 10 % February 16, 2022 - - - - 863,609 Total convertible notes payable $ 2,183,508 $ 27,294 $ - $ 2,210,802 $ 1,961,353 Interest expense totaled $49,912 and $52,236 and amortization of debt discount totaled $0 and $515,200 for the three months ended September 30, 2022 and 2021, respectively, and interest expense totaled $138,085 and $169,695 and amortization of debt discount totaled $263,200 and $3,138,452 for the nine months ended September 30, 2022 and 2021, respectively. Cavalry Fund I LP ● On February 16, 2021, the Company closed a transaction with Cavalry Fund I LP (“Cavalry”), pursuant to which the Company received net proceeds of $500,500, after an original issue discount of $71,500 in exchange for the issuance of a $572,000 Senior Secured Convertible Note, bearing interest at 10% per annum and maturing on February 16, 2022 (the “Cavalry Note”). The Cavalry Note is convertible into shares of Common Stock at an initial conversion price of $0.23 per share, in addition, the Company issued a warrant exercisable for 2,486,957 shares of Common Stock at an initial exercise price of $0.24 per share. On February 3, 2022, the Company extended the maturity date of its Cavalry Note from February 16, 2022 to August 16, 2022. The Cavalry Note was due to mature on February 16, 2022 and would have resulted in the accrual of a $157,499 prepayment penalty on the principal of $572,000 and interest of $57,994 outstanding, totaling $787,493. Cavalry agreed to extend the maturity date of the Cavalry Note to August 16, 2022 in consideration of the principal amount outstanding under the Cavalry Note being increased by an additional $78,749, thereby increasing the total principal outstanding to $866,242. On August 30, 2022, the Company further extended the maturity date of its Cavalry note from August 16, 2022 to November 16, 2022. In terms of the agreement entered into with Cavalry, the principal outstanding was increased by $181,959 and the interest outstanding as of August 31, 2022 of $43,553 was capitalized, resulting in a principal balance outstanding of $1,091,754. In addition, the Company granted Cavalry a warrant exercisable for 3,000,000 shares of Common Stock at an exercise price of $0.15 per share, maturing on August 30, 2027 and valued at $119,091 on the date of grant. This change to the maturity dates of the Cavalry Note from February 16, 2022 to August 31, 2022 and subsequently to November 16, 2022, was assessed in terms of ASC 470-50 as a debt extinguishment, which resulted in a penalty expense of $181,959 and $260,708 for the three months and nine months ended September 30, 2022, respectively, in addition the value of the warrant issued on the debt extension from August 16, 2022 to November 16, 2022, resulted in an additional penalty expense of $119,091 for the three and nine months ended September 30, 2022. The balance of the Cavalry Note plus accrued interest at September 30, 2022 was $1,105,401. Mercer Street Global Opportunity Fund, LLC ● On February 16, 2021, the Company closed a transaction with Mercer Street Global Opportunity Fund, LLC (“Mercer”), pursuant to which the Company received net proceeds of $500,500, after an original issue discount of $71,500 in exchange for the issuance of a $572,000 Senior Secured Convertible Note, bearing interest at 10% per annum and maturing on February 16, 2022 (the “Mercer Note”). The Mercer Note is convertible into shares of Common Stock at an initial conversion price of $0.23 per share, in addition, the Company issued a warrant exercisable for 2,486,957 shares of Common Stock at an initial exercise price of $0.24 per share. On February 3, 2022, the Company extended the maturity date of its Mercer Note from February 16, 2022 to August 16, 2022. The Mercer Note was due to mature on February 16, 2022 and would have resulted in the accrual of a $157,499 prepayment penalty on the principal of $572,000 and interest of $57,994 outstanding, totaling $787,493. Mercer agreed to extend the maturity date of the Mercer Note to August 16, 2022 in consideration of the principal amount outstanding under the Mercer Note being increased by an additional $78,749, thereby increasing the total principal outstanding to $866,242. On August 30, 2022, the Company further extended the maturity date of its Mercer note from August 16, 2022 to November 16, 2022. In terms of the agreement entered into with Mercer, the principal outstanding was increased by $181,959 and the interest outstanding as of August 31, 2022 of $43,553 was capitalized, resulting in a principal balance outstanding of $1,091,754. In addition, the Company granted Mercer a warrant exercisable for 3,000,000 shares of Common Stock at an exercise price of $0.15 per share, maturing on August 30, 2027 and valued at the date of grant at $119,091. This change to the maturity dates of the Mercer Note from February 16, 2022 to August 31, 2022 and subsequently to November 16, 2022, was assessed in terms of ASC 470-50 as a debt extinguishment, which resulted in a penalty expense of $181,959 and $260,708 for the three months and nine months ended September 30, 2022, respectively, in addition the value of the warrant issued on the debt extension from August 16, 2022 to November 16, 2022, resulted in an additional penalty expense of $119,091 for the three and nine months ended September 30, 2022. The balance of the Mercer Note plus accrued interest at September 30, 2022 was $1,105,401. Bellridge Capital LP. ● On February 16, 2021, the Company closed a transaction with Bellridge Capital LP., pursuant to which the Company received net proceeds of $787,500, after an original issue discount of $112,500 in exchange for the issuance of a $900,000 Senior Secured Convertible Note, bearing interest at 10% per annum and maturing on February 16, 2022 (the “Bellridge Note”). The Bellridge Note was convertible into shares of Common Stock at an initial conversion price of $0.23 per share, in addition, the Company issued a warrant exercisable for 3,913,044 shares of Common Stock at an initial exercise price of $0.24 per share. The Bellridge Note was repaid on February 4, 2022 for gross proceeds of $1,235,313, including interest thereon of $88,250, thereby extinguishing the Bellridge Note. |
DERIVATIVE LIABILITY
DERIVATIVE LIABILITY | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE LIABILITY | 9 DERIVATIVE LIABILITY Certain of the short-term convertible notes disclosed in note 8 above and certain warrants disclosed in note 10 below have fundamental transaction clauses which might result in cash settlement, due to these factors, all convertible notes and any warrants attached thereto are valued and give rise to a derivative financial liability, which was initially valued at inception of the convertible notes using a Black-Scholes valuation model. On August 30, 2022, the company extended the maturity date of convertible notes issued to Cavalry and Mercer and agreed to grant each note holder a warrant exercisable for 3,000,000 shares of Common Stock at an exercise price of $0.15 per share with a maturity date of August 30, 2027. The warrant has full ratchet anti-dilution clauses and have fundamental transaction clauses which may give rise to cash settlement which gives rise to a derivative financial liability, which was originally valued at the grant date using a Black--Scholes valuation model at $238,182. The value of this derivative financial liability was re-assessed at September 30, 2022 at $710,389, and $84,895 was credited and $65,046 was charged to the statement of operations for the three and nine months ended September 30, 2022, respectively. The value of the derivative liability will be re-assessed at each financial reporting period, with any movement thereon recorded in the statement of operations in the period in which it is incurred. The following assumptions were used in the Black-Scholes valuation model: Nine months September 30, Year ended Conversion price $ 0.05 to $0.15 $ 0.05 to $0.24 Risk free interest rate 0.79 to 4.25 % 0.05 to 1.12 % Expected life of derivative liability 1.5 to 59 months 1.6 to 49.6 months Expected volatility of underlying stock 120.49 to 258.3 % 161.19 to 215.33 % Expected dividend rate 0 % 0 % The movement in derivative liability is as follows: September 30, December 31, Opening balance $ 407,161 $ 2,966,416 Derivative financial liability arising from convertible note and warrants 238,182 2,569,000 Fair value adjustment to derivative liability 65,046 (5,128,255 ) $ 710,389 $ 407,161 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | 10 STOCKHOLDERS’ EQUITY a. Common Stock The Company has total authorized Common Stock of 750,000,000 shares with a par value of $0.0001 each. The Company had 376,901,679 and 367,901,679 shares of Common Stock issued and outstanding as of September 30, 2022 and December 31, 2021, respectively. On July 8, 2022, the Company entered into a consulting agreement with a third-party contractor for a period of twelve months to (i) review the Company’s business plan; (ii) analyze and assess the Company’s revenues, costs, and cash flow; and (iii) introduce the Company to and interface on the Company’s behalf with potential and actual commercial partners. The Company issued 2,000,000 shares of Common Stock as compensation for the services rendered which were fully earned on the date of issue. These shares were valued at $84,000 at the date of grant. In addition, the contractor will receive a monthly fee of $3,000 for the term of the Agreement, commencing on August 1, 2022. On July 8, 2022, the Company entered into a second consulting agreement with a separate third-party contractor for a period of twelve months to (i) review the Company’s business plan; (ii) analyze and assess the Company’s revenues, costs, and cash flow; and (iii) introduce the Company to and interface on the Company’s behalf with potential and actual commercial partners. The Company issued 2,000,000 shares of Common Stock as compensation for the services rendered which were fully earned on the date of issue. These shares were valued at $84,000 at the date of grant. On July 11, 2022, the Board approved the issuance of 2,000,000 restricted shares of Common Stock to Richard Rosenblum, the Company’s President and Chief Financial Officer. These shares were valued at $110,000 at the date of grant. On August 5, 2022, the Board approved the issuance of 3,000,000 shares of Common Stock to Samad Harake or his designees as compensation for the services rendered which were fully earned on the date of issue., Mr. Harake is the president and control person of Frictionless. These shares were valued at $165,000 at the date of grant. b. Restricted stock awards A summary of restricted stock activity during the period January 1, 2021 to September 30, 2022 is as follows: Total Weighted Total Weighted Total vested Weighted Outstanding January 1, 2021 20,495,000 $ 0.049 15,371,250 $ 0.049 5,123,750 $ 0.049 Granted and issued 2,500,000 0.050 2,500,000 0.050 - - Forfeited/Cancelled (1,500,000 ) (0.050 ) (1,500,000 ) (0.050 ) - - Vested - - (6,123,750 ) (0.049 ) 6,123,750 0.049 Outstanding December 31, 2021 21,495,000 $ 0.049 10,247,500 $ 0.049 11,247,500 $ 0.049 Granted and issued 2,000,000 0.055 - - 2,000,000 0.055 Forfeited/Cancelled - - - - - - Vested - - (5,123,750 ) (0.049 ) 5,123,750 0.049 Outstanding September 30, 2022 23,495,000 $ 0.050 5,123,750 $ 0.049 18,371,250 $ 0.050 The restricted stock granted, issued and exercisable at September 30, 2022 is as follows: Restricted Stock Granted Restricted Stock Vested Grant date Number Weighted Number Weighted $ 0.049 20,495,000 $ 0.049 15,371,250 $ 0.049 $ 0.050 1,000,000 0.050 1,000,000 0.050 $ 0.055 2,000,000 0.055 2,000,000 0.055 23,495,000 $ 0.050 18,371,250 $ 0.050 The Company has recorded an expense of $172,766 and $44,165 for the three months ended September 30, 2022 and 2021, respectively and $298,298 and $188,448 for the nine months ended September 30, 2022 and 2021, respectively. c. Preferred Stock The Company has authorized 25,000,000 shares of preferred stock with a par value of $0.0001 authorized. No preferred stock was issued and outstanding as of September 30, 2022 and December 31, 2021. d. Warrants Effective July 8, 2022 (the “Effective Date”), the Company entered into an Endorsement Agreement with Pez-Mar, Inc., a California corporation (“Pez-Mar”), to furnish the services of Mario Lopez (“Lopez”). Pursuant to the Endorsement Agreement, Lopez will act as a Company spokesperson in connection with the promotion, advertisement and endorsement of the Company’s physical and virtual payment processing and money remittance business and the Company’s related products and services. The Endorsement Agreement has a term of two (2) years from the Effective Date (the “Term”), which is subject to earlier termination on customary terms and conditions. The parties have agreed to certain deliverables of Lopez during the term of the agreement, including with respect to social media posts, television commercials, interviews and photo shoots. The Endorsement Agreement also contains other customary terms, covenants and conditions, including representations and warranties, restrictions on endorsements of competitive products during the term of the agreement, confidentiality, indemnification, and Pez-Mar and Lopez’s independent contractor status. As compensation for the services provided under the Endorsement Agreement, Lopez or their designees are entitled to the following payments: (i) a cash endorsement fee of Three Hundred Thousand U.S. Dollars ($300,000 USD), payable as follows: (i) One Hundred Twenty-Five Thousand Dollars ($125,000) upon execution of the Endorsement Agreement, (ii) One Hundred Twenty-Five Thousand Dollars ($125,000) quarterly during the Term, beginning on the 90 th On August 30, 2022, the Company extended the maturity date of convertible notes issued to Cavalry and Mercer and agreed to grant each note holder a warrant exercisable for 3,000,000 shares of Common Stock at an exercise price of $0.15 per share with an expiration date of August 30, 2027. The fair value of the warrants granted and issued, as described above, were determined by using a Black Scholes valuation model using the following assumptions: Nine months Exercise price $ 0.0345 to 0.15 Risk free interest rate 3.14 to 3.27 % Expected life 3 to 5 years Expected volatility of underlying stock 189.1 to 199.2 % Expected dividend rate 0 % A summary of warrant activity during the period January 1, 2021 to September 30, 2022 is as follows: Shares Exercise Weighted Outstanding January 1, 2021 51,188,572 $ 0.05 $ 0.05 Granted 66,302,515 0.05 to 0.24 0.16 Forfeited/Cancelled (20,000,000 ) 0.24 0.24 Exercised (60,186,982 ) 0.05 0.05 Outstanding December 31, 2021 37,304,105 $ 0.05 – 0.1875 $ 0.12 Granted 21,000,000 0.0345 – 0.15 0.07 Forfeited/Cancelled - - - Exercised - - - Outstanding September 30, 2022 58,304,105 $ 0.05 – 0.1875 $ 0.11 The warrants outstanding and exercisable at September 30, 2022 are as follows: Warrants Outstanding Warrants Exercisable Exercise Number Weighted Weighted Number Weighted Weighted $ 0.0345 15,000,000 2.77 8,437,500 2.77 $ 0.05 10,823,813 3.03 10,823,813 3.03 $ 0.15 30,053,625 3.73 30,053,625 3.73 $ 0.1875 2,426,667 3.46 2,426,667 3.46 58,304,105 3.34 $ 0.11 51,741,605 $ 0.11 3.42 The warrants outstanding have an intrinsic value of $0 as of September 30, 2022 and December 31, 2021. e. Stock options On June 18, 2018, the Company established its 2018 Stock Incentive Plan (the “Plan”). The purpose of the Plan is to promote the interests of the Company and the stockholders of the Company by providing directors, officers, employees and consultants of the Company with appropriate incentives and rewards to encourage them to enter into and continue in the employ or service of the Company, to acquire a proprietary interest in the long-term success of the Company and to reward the performance of individuals in fulfilling long-term corporate objectives. The Plan terminates after a period of ten years in June 2028. The Plan is administered by the Board or a committee appointed by the Board, who have the authority to administer the Plan and to exercise all the powers and authorities specifically granted to it under the Plan. The maximum number of securities available under the Plan is 800,000 shares of Common Stock. The maximum number of shares of Common Stock awarded to any individual during any fiscal year may not exceed 100,000 shares of Common Stock. On October 22, 2021, the Company established its 2021 Stock Incentive Plan (“2021 Plan”). The purpose of the Plan is to promote the interests of the Company and the stockholders of the Company by providing directors, officers, employees and consultants, advisors and service providers of the Company with appropriate incentives and rewards to encourage them to enter into and continue in the employ or service of the Company, to acquire a proprietary interest in the long-term success of the Company and to reward the performance of individuals in fulfilling long-term corporate objectives. The Plan terminates after a period of ten years in August 2031. The 2021 Plan is administered by the Board or a Compensation Committee appointed by the Board, who have the authority to administer the Plan and to exercise all the powers and authorities specifically granted to it under the Plan. The maximum number of securities available under the 2021 Plan is 53,000,000 shares of Common Stock. Under the 2021 Plan the company may award the following: (i) non-qualified stock options; (ii)) incentive stock options; (iii) stock appreciation rights; (iv) restricted stock; (v) restricted stock unit; and (vi) other stock-based awards. On July 11, 2022, the Board approved, granted and issued 15,000,000 ten-year incentive stock options, with immediate vesting, to the Company’s Chairman and Chief Executive Officer at an exercise price of $0.15 per share. This resulted in an immediate expense of $823,854 for the three and nine months ended September 30, 2022. On September 13, 2022, the Company granted ten-year options exercisable for 200,000 shares of Common Stock, with immediate vesting, to each of its four non-executive directors, totaling options exercisable for 800,000 shares of Common Stock at an exercise price of $0.04 per share. This resulted in an immediate expense of $31,970 for the three and nine months ended September 30, 2022. The fair value of the options granted and issued were determined by using a Black Scholes valuation model using the following assumptions: Nine months Exercise price $ 0.04 to 0.15 Risk free interest rate 2.99 to 3.42 % Expected life 10.0 years Expected volatility of underlying stock 206.4 to 208.4 % Expected dividend rate 0 % A summary of option activity during the period January 1, 2021 to September 30, 2022 is as follows: Shares Exercise Weighted Outstanding January 1, 2021 100,000 $ 0.40 $ 0.40 Granted 30,416,666 0.15 – 0.24 0.15 Forfeited/Cancelled - - - Exercised - - - Outstanding December 31, 2021 30,516,666 $ 0.15 to 0.40 $ 0.15 Granted 15,800,000 0.04 – 0.15 0.14 Forfeited/Cancelled - - - Exercised - - - Outstanding September 30, 2022 46,316,666 $ 0.04 to 0.40 $ 0.15 The options outstanding and exercisable at September 30, 2022 are as follows: Options Outstanding Options Exercisable Exercise Number Weighted Weighted Number Weighted Weighted 0.04 800,000 9.96 800,000 9.96 0.15 45,208,333 9.19 35,625,000 9.27 0.24 208,333 8.40 208,333 8.40 0.40 100,000 6.25 100,000 6.25 46,316,666 9.19 $ 0.15 36,733,333 $ 0.15 9.27 The options outstanding have an intrinsic value of $0 as of September 30, 2022 and December 31, 2021, respectively. The option expense was $950,290 and $1,196,566 for the three months ended September 30, 2022 and 2021, respectively and $1,139,220 and $1,288,174 for the nine months ended September 30, 2022 and 2021, respectively. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | 11 NET LOSS PER SHARE Basic loss per share is based on the weighted-average number of common shares outstanding during each period. Diluted loss per share is based on basic shares as determined above plus Common Stock equivalents. The computation of diluted net loss per share does not assume the issuance of common shares that have an anti-dilutive effect on net loss per share. For the three and nine months ended September 30, 2022 and 2021 all warrants, options and convertible debt securities were excluded from the computation of diluted net loss per share. Dilutive shares which could exist pursuant to the exercise of outstanding stock instruments and which were not included in the calculation because their affect would have been anti-dilutive for the three and nine months ended September 30 2022 and 2021 are as follows: Three and nine Three and nine Convertible debt 14,738,682 13,626,666 Stock options 46,316,666 30,516,666 Warrants to purchase shares of Common Stock 58,304,105 37,304,104 119,359,453 81,447,436 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 12 RELATED PARTY TRANSACTIONS The following transactions were entered into with related parties: James Fuller On February 22, 2021, the Board awarded James Fuller ( a director of the Company until November 2, 2022 when he voluntarily retired as a member of the Board) options under the Company’s 2018 Stock Incentive Plan to purchase 208,333 shares of Common Stock. The options are exercisable for a period of ten years from the date of grant, vest in full on the date of grant and have an exercise price of $0.24 per share. On July 22. 2021, the Company granted Mr. Fuller 2,000,000 shares of Common Stock, valued at $154,000. Additionally, the Board approved the repricing of the options exercisable for 208,333 shares of Common Stock granted to Mr. Fuller on February 22, 2021, from $0.24 per share to $0.15 per share. On September 13, 2022, the Company granted Mr. Fuller ten-year options exercisable for 200,000 shares of Common Stock at an exercise price of $0.04 per share. The option expense for Mr. Fuller for the three and the nine months ended September 30, 2022 was $7,993. Andrey Novikov On February 22, 2021, the Board awarded Andrey Novikov options under the Company’s 2018 Stock Incentive Plan to purchase 208,333 shares of Common Stock. The options are exercisable for a period of ten years from the date of grant, vest in full on the date of grant and have an exercise price of $0.24 per share. On May 31, 2021, Mr. Novikov notified the Board of his decision to resign as a member of the Board and as Secretary of the Company, effective as of June 1, 2021. Since August 2021, Mr. Novikov has been on suspension from service as the Company’s Chief Technology Officer. On November 11, 2022, with the recommendation of a special committee of disinterested members of the Board who had reviewed this matter, the Board approved the formal termination of Mr. Novikov’s employment with the Company for “cause.” William Corbett On February 22, 2021, the Board appointed William Corbett as the Company’s Chief Executive Officer and Interim Chief Financial Officer, as its Chairman of the Board and issued him a five-year warrant to purchase 20,000,000 shares of the Common Stock at an exercise price of $0.24 per share. The Board also agreed to increase Mr. Corbett’s monthly base salary to $30,000. The warrant expense for Mr. Corbett for the year ended December 31, 2021 was $4,327,899. On August 16, 2021, the Company and Mr. Corbett entered into an Executive Employment Agreement that replaced and superseded the previous executive employment agreement (the “August 2021 Corbett Employment Agreement”). The purpose of the August 2021 Corbett Employment Agreement was to provide a replacement grant for warrants previously granted to Mr. Corbett under the terms of his previous employment agreement with the Company. Pursuant to the August 2021 Corbett Employment Agreement, Mr. Corbett would continue to serve as the Company’s Chief Executive Officer on a full time basis effective as of the date of the August 2021 Corbett Employment Agreement until the close of business on December 31, 2024. Mr. Corbett’s base salary will be $30,000 per month, which shall be paid in accordance with the Company’s standard payroll practice for its executives, managers and salaried employees. In addition, the August 2021 Corbett Employment Agreement provides that: (1) Mr. Corbett will be eligible for a cash bonus as determined by the Board to the extent the Company achieves (or exceeds) annual revenue or other financial performance objectives established by the Board, in its sole discretion, from time to time; (2) the Company will grant to Mr. Corbett options to purchase 20,000,000 shares of Common Stock at a per share exercise price of $0.15; and (3) a car allowance for Mr. Corbett in the amount of $800 per month. Fifty percent (50%) of the shares subject to the options shall vest on the grant date and the other 50% of the shares subject to the option shall vest at the rate of 1/36 per month over a three-year period. The options will be exercisable for a period of ten years after the date of grant and the Company shall provide for cashless exercise of the option. The options are being granted pursuant to the Company’s 2021 Stock Incentive Plan which was approved by the Board in August 2021, subject to approval of the 2021 Plan by the shareholders, which approval was obtained at the annual general meeting held on October 22, 2021. In addition, the Company and Mr. Corbett entered into an Indemnification Agreement on August 16, 2021 (the “August 2021 Corbett Indemnification Agreement”), pursuant to which the Company agreed to indemnify Mr. Corbett to indemnify Indemnitee to the fullest extent permitted by or under the Nevada Corporation Law in respect of claims, including third-party claims and derivative claims and provides for advancement of expenses. The August 2021 Corbett Indemnification Agreement amends the indemnification agreement in effect prior to entering into the August 2021 Corbett Indemnification Agreement to provide that unless Company shall pay Mr. Corbett’s attorneys’ fees and costs, including the compensation and expenses of any arbitrator, unless the arbitrator or the court determines that (a) Company has no liability in such dispute, or (b) the action or claims by Executive are frivolous in nature. In any other case or matter, the Company and Mr. Corbett shall each bear its or his own attorney fees and costs. On July 11, 2022, the Company granted Mr. Corbett ten-year options exercisable for 15,000,000 shares of Common Stock at an exercise price of $0.15 per share. The option expense for Mr. Corbett for the three and the nine months ended September 30, 2022 was $890,442 and $1,023,614, respectively. Clifford Henry On May 1, 2021, the Company appointed Mr. Henry to the Board. On July 22, 2021, the Company granted Mr. Henry 2,000,000 shares of Common Stock, valued at $154,000. Mr. Henry has an oral consulting arrangement with the Company whereby he is paid $3,500 per month for financial and capital markets advice. This consulting agreement commenced in May, 2021 and was approved and ratified by the Board in March 2022. This consulting agreement and related payments were terminated in September 2022. On September 13, 2022, the Company granted Mr. Henry, immediately vesting, ten-year options exercisable for 200,000 shares of Common Stock at an exercise price of $0.04 per share, valued at $7,993 using a Black Scholes valuation model. The option expense for Mr. Henry for the three and the nine months ended September 30, 2022 was $7,993. Madisson Corbett On May 1, 2021, the Company appointed Ms. Corbett to the Board. Ms. Corbett is the daughter of Mr. William Corbett, the Company’s Chief Executive Officer and Chairman of the Board. On July 22, 2021, the Company granted Ms. Corbett 2,000,000 shares of Common Stock, valued at $154,000. On September 13, 2022, the Company granted Ms. Corbett, immediately vesting, ten-year options exercisable for 200,000 shares of Common Stock at an exercise price of $0.04 per share, valued at $7,993 using a Black Scholes valuation model. The option expense for Ms. Corbett for the three and the nine months ended September 30, 2022 was $7,993. David Rios On July 22, 2021, the Company appointed David Rios to the Board. On July 22, 2021, the Company granted Mr. Rios 1,000,000 shares of Common Stock, valued at $77,000. On September 13, 2022, the Company granted Mr. Rios, immediately vesting, ten The option expense for Mr. Rios for the three and the nine months ended September 30, 2022 was $7,993. Richard Rosenblum On July 22, 2021, the Company appointed Richard Rosenblum as President and Chief Financial Officer of the Company. In addition, Mr. Rosenblum was elected to the Board to serve until the Company’s next annual meeting of shareholders and was subsequently appointed as the Company’s Secretary. On July 27, 2021, the Company and Mr. Rosenblum entered into an Executive Employment Agreement (the “Employment Agreement”), pursuant to which Mr. Rosenblum will serve as the Company’s President and Chief Financial Officer on a full time basis effective as of July 1, 2021. The effectiveness of the Employment Agreement is subject to the approval of the Employment Agreement by the Board, unless earlier terminated as provided in the Employment Agreement. The term of the Employment Agreement is until December 31, 2024. Mr. Rosenblum’s base salary will be $18,000 per month. In addition, the Employment Agreement provides that: (1) Mr. Rosenblum will be eligible for a cash bonus as determined by the Board to the extent the Company achieves (or exceeds) annual revenue or other financial performance objectives established by the Board, in its sole discretion, from time to time; and (2) the Company will grant to Mr. Rosenblum options to purchase 10,000,000 shares of Common Stock at a per share exercise price equal to the fair market value of the Common Stock, as reflected in the closing price of the Common Stock on the OTC exchange or, in the event the stock is up listed, on a national stock exchange, on the date of grant (the “Options”)”. Fifty percent (50%) of the shares subject to the Options shall vest on the grant date and the other 50% of the shares subject to the Option shall vest at the rate of 1/36 per month over a three-year period. The Options will be exercisable for a period of ten (10) years after the date of grant and the Company shall provide for cashless exercise of the Option by Executive. The options are being granted pursuant to the Company’s 2021 Stock Incentive Plan which was approved by the Board in August 2021, subject to approval of the 2021 Plan by the shareholders, which approval was obtained at the annual general meeting held on October 22, 2021. The Options are being granted pursuant to the Company’s 2021 Stock Incentive Plan. If Mr. Rosenblum’s employment with Company is terminated at any time during the term of the Employment Agreement other than for Cause (as defined in the Employment Agreement), or due to voluntary termination, retirement, death or disability, then Mr. Rosenblum shall be entitled to severance equal to fifty percent (50%) of his annual base salary rate in effect as of the date of termination. If Mr. Rosenblum’s employment with Company is terminated at any time during the term of the Employment Agreement other than for Cause (as defined in the Employment Agreement), or due to voluntary termination, retirement, death or disability, within 12 months following an Acquisition (as defined in the Employment Agreement), then Mr. Rosenblum shall be entitled to severance equal to 100% of his annual base salary rate in effect as of the date of termination. Severance payments shall be subject to execution and delivery of a general release in favor of the Company. On August 16, 2021, the Company entered into an amendment to the Rosenblum Executive Employment Agreement (the “First Amendment”) with Mr. Rosenblum. Under the terms of the Executive Employment Agreement, the Company had agreed to grant to Mr. Rosenblum an option to purchase 10,000,000 (ten million) common shares of Company Stock at a per share exercise price equal to the fair market value of the Common Stock, as reflected in the closing price of the Common Stock on the OTC exchange or, in the event the stock is uplisted, on a national stock exchange, on the date of grant (the “Option”).” The First Amendment provided that the Option was granted on August 31, 2021 at an exercise price of $0.15 per share. In addition, the Company and Mr. Rosenblum entered into an Indemnification Agreement, pursuant to which the Company agreed to indemnify Mr. Rosenblum to indemnify Indemnitee to the fullest extent permitted by or under the Nevada Corporation Law in respect of claims, including third-party claims and derivative claims and provides for advancement of expenses. On July 11, 2022, the Company granted Mr. Rosenblum 2,000,000 restricted shares of Common Stock valued at $110,000, all of which are vested. The option expense for Mr. Rosenblum for the three months and nine months ended September 30, 2022 was $27,879 and $83,636, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 13 COMMITMENTS AND CONTINGENCIES The Company has convertible notes, disclosed under note 8 above, which mature on November 16, 2022. Should these notes not be converted to Common Stock prior to that date, the Company may need to repay the principal and interest outstanding on these notes. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 14 SUBSEQUENT EVENTS On November 2, 2022, the Company conducted its 2022 annual meeting of stockholders. At the Annual Meeting, the Company’s stockholders (i) elected each of William D. Corbett, Richard Rosenblum, Madisson Corbett, Clifford Henry and David Rios as directors’ of the Company until the next annual meeting or until their successors shall be elected and qualified, (ii) ratified the appointment of RBSM LLP as the Company’s independent registered public accounting firm for fiscal year ended December 31, 2022, (iii) approved an amendment to the Company’s Articles of Incorporation to effect a reverse stock split of the issued and outstanding shares of common stock at a ratio (to be determined in the discretion of the Company’s Board during a two year period ending on November 2, 2024) within a range of one (1) share of Common Stock for every two (2) to thirty (30) shares of Common Stock, and (iv) approved a potential adjournment of the annual meeting, The Company’s stockholders did not approve the proposed amendment to the Company’s Articles of Incorporation to provide the board of directors with the authority to, at its discretion, fix by resolution or resolutions, the designations, rights and privileges of the Company’s authorized preferred stock. Other than the above, the Company has evaluated subsequent events through the date the financial statements were issued, and did not identify any subsequent events that would have required adjustment or disclosure in the financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | a) Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments (consisting only of normal recurring adjustments), which the Company considers necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the nine months ended September 30, 2022 may not necessarily be indicative of results that may be expected for any succeeding quarter or for the entire fiscal year. The information contained in this Quarterly Report on Form 10-Q (“Report”) should be read in conjunction with the audited financial statements of IPSI for the year ended December 31, 2021, included in the Annual Report on Form 10-K as filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2022. All amounts referred to in the notes to the unaudited condensed financial statements are in United States Dollars ($) unless stated otherwise. |
Principles of Consolidation | b) Principles of Consolidation The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiary in which it has a majority voting interest. All significant inter-company accounts and transactions have been eliminated in the unaudited condensed consolidated financial statements. The entities included in the accompanying unaudited condensed consolidated financial statements are as follows: Innovative Payment Solutions, Inc. - Parent Company Beyond Fintech Inc., 51% owned. |
Use of Estimates | c) Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments. In particular, significant estimates and judgments include those related to, the estimated useful lives for plant and equipment, the fair value of long-lived investments, the fair value of warrants and stock options granted for services or compensation, estimates of the probability and potential magnitude of contingent liabilities, derivative liabilities, the valuation allowance for deferred tax assets due to continuing operating losses and the allowance for doubtful accounts. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited condensed consolidated financial statements, which management considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from our estimates. |
Contingencies | d) Contingencies Certain conditions may exist as of the date the financial statements are issued, which may result in the generation of continuing losses by the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s unaudited condensed consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. |
Fair Value of Financial Instruments | e) Fair Value of Financial Instruments The Company adopted the guidance of Accounting Standards Codification (“ASC”) 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for the investment in Vivi Holdings was evaluated at fair value using Level 3 Inputs based on the Company’s estimate of the market value of the entities disposed to Vivi Holdings. Vivi Holdings does not have sufficient information available to assess the current market price of its equity. The carrying amounts reported in the balance sheets for cash, accounts receivable, other current assets, other assets, accounts payable, accrued liabilities, and notes payable, approximate fair value due to the relatively short period to maturity for these instruments. The Company has identified the short-term convertible notes and certain warrants attached to certain of the notes that are required to be presented on the balance sheets at fair value in accordance with the accounting guidance. ASC 825-10 “ Financial Instruments |
Risks and Uncertainties | f) Risks and Uncertainties The Company’s operations are and will be subject to significant risks and uncertainties including financial, operational, regulatory, and other risks, including the potential risk of business failure. These risks include, without limitation, risks associated with (i) COVID-19 and its variants, (ii) launching and scaling the Company’s e-wallet and related products and the use by customers of such products, (iii) developing and implementing successful marketing campaigns and other strategic initiatives; (iv) competition, (iv) compliance with applicable laws, rules and regulations (including those related to fund remittance); (v) the Company’s outstanding indebtedness, including the Company’s ability to repay or extend the maturity of such indebtedness (see Note 8); (vi) inflation and other economic factors and (vii) the Company’s ability to obtain necessary financing. These conditions may not only limit the Company’s access to capital, but also make it difficult for its customers, vendors and the Company to accurately forecast and plan future business activities. The Company’s results may also be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things. Many of these risks are beyond the Company’s control and are unpredictable. The Company may be unable to adequately manage such risks and similar risks, which could impair the viability of the Company. |
Recent accounting pronouncements | g) Recent accounting pronouncements The Financial Accounting Standards Board (“FASB”) issued additional updates during the quarter ended September 30, 2022. None of these standards are either applicable to the Company or require adoption at a future date and none are expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption. |
Reporting by Segment | h) Reporting by Segment No segmental information is required as the Company has not generated any revenue for the nine months ended September 30, 2022 and 2021 and only has one operating segment. |
Cash and Cash Equivalents | i) Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. At September 30, 2022 and 2021, respectively, the Company had no cash equivalents. The Company minimizes credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution in the United States. The balance at times may exceed federally insured limits. At September 30, 2022 and December 31, 2021, the balance exceed the federally insured limit by $1,094,504 and $5,117,551, respectively. |
Accounts Receivable and Allowance for Doubtful Accounts | j) Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are reported at realizable value, net of allowances for doubtful accounts, which is estimated and recorded in the period the related revenue is recorded. The Company has a standardized approach to estimate and review the collectability of its receivables based on a number of factors, including the period they have been outstanding. Historical collection and payer reimbursement experience is an integral part of the estimation process related to allowances for doubtful accounts. In addition, the Company regularly assesses the state of its billing operations in order to identify issues, which may impact the collectability of these receivables or reserve estimates. Revisions to the allowance for doubtful accounts estimates are recorded as an adjustment to bad debt expense. Receivables deemed uncollectible are charged against the allowance for doubtful accounts at the time such receivables are written-off. Recoveries of receivables previously written-off are recorded as credits to the allowance for doubtful accounts. There were no recoveries during the period ended September 30, 2022 and December 31, 2021. |
Investments | k) Investments The Company’s non-marketable equity securities are investments in privately held companies without readily determinable market values. The carrying value of our non-marketable equity securities is adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment (referred to as the measurement alternative). All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in other income (expense), net. Non-marketable equity securities that have been remeasured during the period are classified within Level 3 in the fair value hierarchy because the Company estimates the value based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the securities the Company holds. The cost method is used when the Company has a passive, long-term investment that doesn’t result in influence over the Company. The cost method is used when the investment results in an ownership stake of less than 20%, and there is no substantial influence. Under the cost method, the stock purchased is recorded on a balance sheet as a non-current asset at the historical acquisition/purchase price, and is not modified unless shares are sold, additional shares are purchased or there is evidence of the fair market value of the investment declining below carrying value. Any dividends received are recorded as income. |
Plant and Equipment | l) Plant and Equipment Plant and equipment is stated at cost, less accumulated depreciation. Plant and equipment with costs greater than $1,000 are capitalized and depreciated. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of the assets are as follows: Description Estimated Useful Life Kiosks (not used in the Company’s current business) 7 years Computer equipment 3 years Leasehold improvements Lesser of estimated useful life or life of lease Office equipment 10 years The cost of repairs and maintenance is expensed as incurred. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. |
Long-Term Assets | m) Long-Term Assets Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. |
Revenue Recognition | n) Revenue Recognition The Company’s revenue recognition policy is consistent with the requirements of FASB ASC 606, Revenue Recognition The Company’s revenues will be recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those services. The Company derives its revenues from the sale of its services, as defined below. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its revenue transactions: i. identify the contract with a customer; ii. identify the performance obligations in the contract; iii. determine the transaction price; iv. allocate the transaction price to performance obligations in the contract; and v. recognize revenue as the performance obligation is satisfied. The Company had no revenues during the nine months ended September 30, 2022 and 2021. |
Share-Based Payment Arrangements | o) Share-Based Payment Arrangements Generally, all forms of share-based payments, including stock option grants, restricted stock grants and stock appreciation rights are measured at their fair value on the awards’ grant date, based on the estimated number of awards that are ultimately expected to vest. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable. The expense resulting from share-based payments is recorded in operating expenses in the consolidated statement of operations. Prior to the Company’s reverse merger which took place on May 12, 2016, all share-based payments were based on management’s estimate of market value of the Company’s equity. The factors considered in determining managements estimate of market value includes, assumptions of future revenues, expected cash flows, market acceptability of our technology and the current market conditions. These assumptions are complex and highly subjective, compounded by the business being in its early stage of development in a new market with limited data available. Where equity transactions with arms-length third parties, who had applied their own assumptions and estimates in determining the market value of our equity, had taken place prior to and within a reasonable time frame of any share-based payments, the value of those share transactions have been used as the fair value for any share-based equity payments. Where equity transactions with arms-length third parties, included both shares and warrants, the value of the warrants have been eliminated from the unit price of the securities using a Black-Scholes valuation model to determine the value of the warrants. The assumptions used in the Black Scholes valuation model includes market related interest rates for risk-free government issued treasury securities with similar maturities; the expected volatility of the Common Stock based on companies operating in similar industries and markets; the estimated stock price of the Company; the expected dividend yield of the Company and; the expected life of the warrants being valued. Subsequent to the Company’s reverse merger which took place on May 12, 2016, the Company has utilized the market value of its Common Stock as quoted on the OTCQB, as an indicator of the fair value of its Common Stock in determining share- based payment arrangements. |
Derivative Liabilities | p) Derivative Liabilities ASC Topic 815, Derivatives and hedging |
Income Taxes | q) Income Taxes The Company is based in the US and currently enacted US tax laws are used in the calculation of income taxes. Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A full valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of September 30, 2022 and December 31, 2021, there have been no interest or penalties incurred on income taxes. |
Comprehensive income | r) Comprehensive income Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. The Company does not have any comprehensive income (loss) for the periods presented. |
Reclassification of prior year presentation | s) Reclassification of prior year presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. |
ACCOUNTING POLICIES AND ESTIM_2
ACCOUNTING POLICIES AND ESTIMATES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of the assets | Description Estimated Useful Life Kiosks (not used in the Company’s current business) 7 years Computer equipment 3 years Leasehold improvements Lesser of estimated useful life or life of lease Office equipment 10 years |
INTANGIBLES (Tables)
INTANGIBLES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Intangibles Table [Abstract] | |
Schedule of facilitate the functioning of the IPSIPay software | September 30, December 31, Purchased Technology $ 1,210,640 $ 625,000 Accumulated amortization (12,629 ) - $ 1,198,011 $ 625,000 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, All Other Investments [Abstract] | |
Schedule of investment | September 30, December 31, Investment in Frictionless Financial Technologies, Inc. $ 500,000 $ 500,000 Investment in Vivi Holdings, Inc. 1 1 $ 500,001 $ 500,001 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of total lease cost | Nine months Nine months Operating lease expense $ 43,200 $ 17,857 |
Schedule of other lease information | Nine 2022 Nine Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ (45,200 ) $ (60,403 ) Remaining lease term – operating lease - 6 months |
Schedule of maturity of operating leases | Amount Undiscounted minimum future lease payments under leases with terms twelve months or less Total instalments due: 2022 $ - |
CONVERTIBLE NOTES PAYABLE (Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Convertible Notes Payable [Abstract] | |
Schedule of convertible notes payable | Description Effective Interest Maturity date Principal Accrued Unamortized September 30, December 31, Cavalry Fund I LP 28.7 % November 16, 2022 $ 1,091,754 $ 13,647 $ - $ 1,105,401 $ 548,872 Mercer Street Global Opportunity Fund, LLC 28.7 % November 16, 2022 1,091,754 13,647 - 1,105,401 548,872 Bellridge Capital LP. 10 % February 16, 2022 - - - - 863,609 Total convertible notes payable $ 2,183,508 $ 27,294 $ - $ 2,210,802 $ 1,961,353 |
DERIVATIVE LIABILITY (Tables)
DERIVATIVE LIABILITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of assumptions were used in the Black-Scholes valuation model | Nine months September 30, Year ended Conversion price $ 0.05 to $0.15 $ 0.05 to $0.24 Risk free interest rate 0.79 to 4.25 % 0.05 to 1.12 % Expected life of derivative liability 1.5 to 59 months 1.6 to 49.6 months Expected volatility of underlying stock 120.49 to 258.3 % 161.19 to 215.33 % Expected dividend rate 0 % 0 % |
Schedule of movement in derivative liability | September 30, December 31, Opening balance $ 407,161 $ 2,966,416 Derivative financial liability arising from convertible note and warrants 238,182 2,569,000 Fair value adjustment to derivative liability 65,046 (5,128,255 ) $ 710,389 $ 407,161 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of restricted stock activity | Total Weighted Total Weighted Total vested Weighted Outstanding January 1, 2021 20,495,000 $ 0.049 15,371,250 $ 0.049 5,123,750 $ 0.049 Granted and issued 2,500,000 0.050 2,500,000 0.050 - - Forfeited/Cancelled (1,500,000 ) (0.050 ) (1,500,000 ) (0.050 ) - - Vested - - (6,123,750 ) (0.049 ) 6,123,750 0.049 Outstanding December 31, 2021 21,495,000 $ 0.049 10,247,500 $ 0.049 11,247,500 $ 0.049 Granted and issued 2,000,000 0.055 - - 2,000,000 0.055 Forfeited/Cancelled - - - - - - Vested - - (5,123,750 ) (0.049 ) 5,123,750 0.049 Outstanding September 30, 2022 23,495,000 $ 0.050 5,123,750 $ 0.049 18,371,250 $ 0.050 |
Schedule of restricted stock granted and exercisable | Restricted Stock Granted Restricted Stock Vested Grant date Number Weighted Number Weighted $ 0.049 20,495,000 $ 0.049 15,371,250 $ 0.049 $ 0.050 1,000,000 0.050 1,000,000 0.050 $ 0.055 2,000,000 0.055 2,000,000 0.055 23,495,000 $ 0.050 18,371,250 $ 0.050 |
Schedule of fair value of the warrants and options granted and issued Black Scholes valuation model | Nine months Exercise price $ 0.0345 to 0.15 Risk free interest rate 3.14 to 3.27 % Expected life 3 to 5 years Expected volatility of underlying stock 189.1 to 199.2 % Expected dividend rate 0 % Nine months Exercise price $ 0.04 to 0.15 Risk free interest rate 2.99 to 3.42 % Expected life 10.0 years Expected volatility of underlying stock 206.4 to 208.4 % Expected dividend rate 0 % |
Schedule of warrant activity | Shares Exercise Weighted Outstanding January 1, 2021 51,188,572 $ 0.05 $ 0.05 Granted 66,302,515 0.05 to 0.24 0.16 Forfeited/Cancelled (20,000,000 ) 0.24 0.24 Exercised (60,186,982 ) 0.05 0.05 Outstanding December 31, 2021 37,304,105 $ 0.05 – 0.1875 $ 0.12 Granted 21,000,000 0.0345 – 0.15 0.07 Forfeited/Cancelled - - - Exercised - - - Outstanding September 30, 2022 58,304,105 $ 0.05 – 0.1875 $ 0.11 |
Schedule of warrants outstanding and exercisable | Warrants Outstanding Warrants Exercisable Exercise Number Weighted Weighted Number Weighted Weighted $ 0.0345 15,000,000 2.77 8,437,500 2.77 $ 0.05 10,823,813 3.03 10,823,813 3.03 $ 0.15 30,053,625 3.73 30,053,625 3.73 $ 0.1875 2,426,667 3.46 2,426,667 3.46 58,304,105 3.34 $ 0.11 51,741,605 $ 0.11 3.42 |
Schedule of option activity | Shares Exercise Weighted Outstanding January 1, 2021 100,000 $ 0.40 $ 0.40 Granted 30,416,666 0.15 – 0.24 0.15 Forfeited/Cancelled - - - Exercised - - - Outstanding December 31, 2021 30,516,666 $ 0.15 to 0.40 $ 0.15 Granted 15,800,000 0.04 – 0.15 0.14 Forfeited/Cancelled - - - Exercised - - - Outstanding September 30, 2022 46,316,666 $ 0.04 to 0.40 $ 0.15 |
Schedule of options outstanding and exercisable | Options Outstanding Options Exercisable Exercise Number Weighted Weighted Number Weighted Weighted 0.04 800,000 9.96 800,000 9.96 0.15 45,208,333 9.19 35,625,000 9.27 0.24 208,333 8.40 208,333 8.40 0.40 100,000 6.25 100,000 6.25 46,316,666 9.19 $ 0.15 36,733,333 $ 0.15 9.27 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of dilutive shares | Three and nine Three and nine Convertible debt 14,738,682 13,626,666 Stock options 46,316,666 30,516,666 Warrants to purchase shares of Common Stock 58,304,105 37,304,104 119,359,453 81,447,436 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Nov. 01, 2019 | Aug. 26, 2021 | Dec. 31, 2019 | Sep. 30, 2022 | Jun. 22, 2022 | |
Organization and Description of Business (Textual) | |||||
Reverse stock split, description | On November 1, 2019, the Company changed its corporate name from “QPAGOS” to “Innovative Payment Solutions, Inc.” Additionally, and immediately following the name change, the Company filed a Certificate of Change with the Secretary of State of the State of Nevada to effect a reverse split of the then outstanding Common Stock at a ratio of 1-for-10, effective on November 1, 2019 (the “Reverse Stock Split”). As a result of the Reverse Stock Split, each ten pre-split shares of Common Stock outstanding automatically combined into one new share of Common Stock without any further action on the part of the holders, and the number of outstanding shares of Common Stock was reduced from 320,477,867 shares to 32,047,817 after rounding for fractional shares. | ||||
Stock purchase agreement, description | On December 31, 2019, the Company consummated the disposal of Qpagos Corporation, Qpagos Mexico and Redpag in exchange for 2,250,000 shares (the “Vivi Shares”) of common stock of Vivi Holdings, Inc. (“Vivi” or “Vivi Holdings”) pursuant to a Stock Purchase Agreement dated August 5, 2019 (the “SPA”). Of the 2,250,000 shares of Vivi, nine percent (9%) was allocated as follows: Gaston Pereira (5%), Andrey Novikov (2.5%), and Joseph Abrams (1.5%). | ||||
Percentage of remaining shares owned | 49% | ||||
Common Stock [Member] | |||||
Organization and Description of Business (Textual) | |||||
Merger agreement, description | to the Merger Agreement, upon consummation of the Merger, each share of Qpagos Corporation’s capital stock issued and outstanding immediately prior to the Merger was converted into the right to receive two shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”). Additionally, pursuant to the Merger Agreement, upon consummation of the Merger, the Company assumed all of Qpagos Corporation’s warrants issued and outstanding immediately prior to the Merger, which were exercisable for an aggregate of approximately 621,920 shares of Common Stock as of the date of the Merger. Prior to and as a condition to the closing of the Merger, a then-current holder of 500,000 shares of Common Stock agreed to return 497,500 shares of Common Stock held by such holder to the Company and such holder retained an aggregate of 2,500 shares of Common Stock. The other then stockholders of the Company retained 500,000 shares of Common Stock. Therefore, immediately following the Merger, Qpagos Corporation’s former stockholders held 4,992,900 shares of Common Stock which represented approximately 91% of the outstanding Common Stock. | ||||
Frictionless Financial Technologies, Inc. [Member] | |||||
Organization and Description of Business (Textual) | |||||
Acquired percentage | 1% | ||||
Beyond Fintech [Member] | |||||
Organization and Description of Business (Textual) | |||||
Stake owned percentage | 51% | ||||
Frictionless [Member] | |||||
Organization and Description of Business (Textual) | |||||
Strategic interest | 10% | ||||
Common stock outstanding percentage | 41% | ||||
Purchase price (in Dollars) | $ 300,000 |
ACCOUNTING POLICIES AND ESTIM_3
ACCOUNTING POLICIES AND ESTIMATES (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounting Policies and Estimates (Textual) | ||
Beyond fintech inc owned percentage | 51% | |
Federally insured limit | $ 1,094,504 | $ 5,117,551 |
Ownership percentage | 20% | |
Plant and equipment costs | $ 1,000 |
ACCOUNTING POLICIES AND ESTIM_4
ACCOUNTING POLICIES AND ESTIMATES (Details) - Schedule of estimated useful lives of the assets | 9 Months Ended |
Sep. 30, 2022 | |
Kiosks [Member] | |
Estimated useful lives | 7 years |
Computer equipment [Member] | |
Estimated useful lives | 3 years |
Leasehold improvements [Member] | |
Estimated useful lives of property | Lesser of estimated useful life or life of lease |
Office equipment [Member] | |
Estimated useful lives | 10 years |
LIQUIDITY MATTERS (Details)
LIQUIDITY MATTERS (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Liquidity Matters (Textual) | |
Net loss | $ 6,208,074 |
Cash balance | $ 1,352,983 |
INTANGIBLES (Details)
INTANGIBLES (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Aug. 26, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Gross proceeds | $ 250,000 | $ 375,000 | ||||
Beyond fintech percentage | 51% | |||||
Owned frictionless percentage | 49% | |||||
Additional amount | $ 544,320 | $ 544,320 | ||||
Additional amount of software | 41,320 | |||||
Amortization expense | $ 12,629 | $ 0 | $ 12,629 | $ 0 |
INTANGIBLES (Details) - Schedul
INTANGIBLES (Details) - Schedule of facilitate the functioning of the IPSIPay software - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Facilitate The Functioning of The Ipsipay Software [Abstract] | ||
Purchased Technology | $ 1,210,640 | $ 625,000 |
Accumulated amortization | (12,629) | |
Total | $ 1,198,011 | $ 625,000 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 22, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | Aug. 30, 2022 | Feb. 16, 2021 | |
Investment (Textual) | ||||||
Exercise price (in Dollars per share) | $ 0.15 | $ 0.24 | ||||
Investment, description | Effective December 31, 2019, the Company sold 100% of the outstanding common stock of its subsidiary, Qpagos Corporation, together with its 99.9% ownership interest of Qpagos Corporation’s two Mexican entities: Qpagos S.A.P.I. de C.V. and Redpag Electrónicos S.A.P.I. de C.V, to Vivi. | |||||
Number of common stock issued | 2,047,500 | |||||
Impairment charges (in Dollars) | $ 1,019,960 | $ 1,019,960 | ||||
Vivi Holdings, Inc. [Member] | ||||||
Investment (Textual) | ||||||
Number of common stock issued | 2,250,000 | |||||
Mr. Andrey Novikov [Member] | ||||||
Investment (Textual) | ||||||
Number of common stock issued | 56,250 | |||||
Joseph W [Member] | ||||||
Investment (Textual) | ||||||
Number of common stock issued | 33,750 | |||||
Mr. Gaston Pereira [Member] | ||||||
Investment (Textual) | ||||||
Number of common stock issued | 112,500 | |||||
Frictionless Technologies, Inc. [Member] | ||||||
Investment (Textual) | ||||||
Warrants term | 5 years | |||||
Warrant purchase | 30,000,000 | |||||
Exercise price (in Dollars per share) | $ 0.15 | |||||
Right to acquire | 41% | |||||
Purchase price to acquire outstanding common stock for 1% acquired (in Dollars) | $ 300,000 | |||||
Frictionless Technologies, Inc. [Member] | Stock Purchase Agreement [Member] | ||||||
Investment (Textual) | ||||||
Purchase of common shares | 150 | |||||
Gross proceed (in Dollars) | $ 500,000 | |||||
Common shares outstanding percentage | 10% | |||||
Right to acquire | 1% |
INVESTMENTS (Details) - Schedul
INVESTMENTS (Details) - Schedule of investment - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
INVESTMENTS (Details) - Schedule of investment [Line Items] | ||
Investment | $ 500,001 | $ 500,001 |
Frictionless Financial Technologies, Inc. [Member] | ||
INVESTMENTS (Details) - Schedule of investment [Line Items] | ||
Investment | 500,000 | 500,000 |
Vivi Holdings, Inc. [Member] | ||
INVESTMENTS (Details) - Schedule of investment [Line Items] | ||
Investment | $ 1 | $ 1 |
LEASES (Details)
LEASES (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Leases (Textual) | |
Lease amount | $ 4,800 |
LEASES (Details) - Schedule of
LEASES (Details) - Schedule of total lease cost - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Total Lease Cost Abstract | ||
Operating lease expense | $ 43,200 | $ 17,857 |
LEASES (Details) - Schedule o_2
LEASES (Details) - Schedule of other lease information - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ (45,200) | $ (60,403) |
Remaining lease term – operating lease | 6 months |
LEASES (Details) - Schedule o_3
LEASES (Details) - Schedule of maturity of operating leases | Sep. 30, 2022 USD ($) |
Total instalments due: | |
2022 |
FEDERAL RELIEF LOANS (Details)
FEDERAL RELIEF LOANS (Details) - USD ($) | 9 Months Ended | |
Jul. 07, 2020 | Sep. 30, 2022 | |
Federal Relief Loans [Abstract] | ||
Disaster loan amount | $ 150,000 | |
Bearing interest, percentage | 3.75% | |
Repayable installments | $ 731 | |
Accrued interest | $ 12,560 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Feb. 03, 2022 | Feb. 16, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Aug. 30, 2022 | Jul. 08, 2022 | Feb. 04, 2022 | |
Convertible Notes Payable (Textual) | |||||||||
Interest expense | $ 49,912 | $ 52,236 | $ 138,085 | $ 169,695 | |||||
Amortization of debt discount | 0 | $ 515,200 | 263,200 | $ 3,138,452 | |||||
Warrant exercisable (in Shares) | 2,486,957 | ||||||||
Exercise price per share (in Dollars per share) | $ 0.24 | $ 0.15 | |||||||
Common stock shares (in Shares) | 2,000,000 | ||||||||
Cavalry Fund I LP [Member] | |||||||||
Convertible Notes Payable (Textual) | |||||||||
Net proceeds | $ 500,500 | ||||||||
Senior secured convertible note | 71,500 | ||||||||
Original issue discount | $ 572,000 | ||||||||
Original issue discount rate | 10% | ||||||||
initial conversion price per share (in Dollars per share) | $ 0.23 | ||||||||
Warrant exercisable (in Shares) | 2,486,957 | ||||||||
Exercise price per share (in Dollars per share) | $ 0.24 | ||||||||
Description of conversion terms | On February 3, 2022, the Company extended the maturity date of its Cavalry Note from February 16, 2022 to August 16, 2022. The Cavalry Note was due to mature on February 16, 2022 and would have resulted in the accrual of a $157,499 prepayment penalty on the principal of $572,000 and interest of $57,994 outstanding, totaling $787,493. Cavalry agreed to extend the maturity date of the Cavalry Note to August 16, 2022 in consideration of the principal amount outstanding under the Cavalry Note being increased by an additional $78,749, thereby increasing the total principal outstanding to $866,242. On August 30, 2022, the Company further extended the maturity date of its Cavalry note from August 16, 2022 to November 16, 2022. In terms of the agreement entered into with Cavalry, the principal outstanding was increased by $181,959 and the interest outstanding as of August 31, 2022 of $43,553 was capitalized, resulting in a principal balance outstanding of $1,091,754. In addition, the Company granted Cavalry a warrant exercisable for 3,000,000 shares of Common Stock at an exercise price of $0.15 per share, maturing on August 30, 2027 and valued at $119,091 on the date of grant. | ||||||||
Penalty expense | 181,959 | 260,708 | |||||||
Additional penalty expense | $ 119,091 | $ 119,091 | |||||||
Conversion price (in Dollars per share) | $ 1,105,401 | $ 1,105,401 | |||||||
Mercer Street Global Opportunity Fund, LLC [Member] | |||||||||
Convertible Notes Payable (Textual) | |||||||||
Net proceeds | $ 500,500 | ||||||||
Senior secured convertible note | 572,000 | ||||||||
Original issue discount | $ 71,500 | ||||||||
Description of conversion terms | On February 16, 2021, the Company closed a transaction with Mercer Street Global Opportunity Fund, LLC (“Mercer”), pursuant to which the Company received net proceeds of $500,500, after an original issue discount of $71,500 in exchange for the issuance of a $572,000 Senior Secured Convertible Note, bearing interest at 10% per annum and maturing on February 16, 2022 (the “Mercer Note”). The Mercer Note is convertible into shares of Common Stock at an initial conversion price of $0.23 per share, in addition, the Company issued a warrant exercisable for 2,486,957 shares of Common Stock at an initial exercise price of $0.24 per share.On February 3, 2022, the Company extended the maturity date of its Mercer Note from February 16, 2022 to August 16, 2022. The Mercer Note was due to mature on February 16, 2022 and would have resulted in the accrual of a $157,499 prepayment penalty on the principal of $572,000 and interest of $57,994 outstanding, totaling $787,493. Mercer agreed to extend the maturity date of the Mercer Note to August 16, 2022 in consideration of the principal amount outstanding under the Mercer Note being increased by an additional $78,749, thereby increasing the total principal outstanding to $866,242. On August 30, 2022, the Company further extended the maturity date of its Mercer note from August 16, 2022 to November 16, 2022. In terms of the agreement entered into with Mercer, the principal outstanding was increased by $181,959 and the interest outstanding as of August 31, 2022 of $43,553 was capitalized, resulting in a principal balance outstanding of $1,091,754. In addition, the Company granted Mercer a warrant exercisable for 3,000,000 shares of Common Stock at an exercise price of $0.15 per share, maturing on August 30, 2027 and valued at the date of grant at $119,091. This change to the maturity dates of the Mercer Note from February 16, 2022 to August 31, 2022 and subsequently to November 16, 2022, was assessed in terms of ASC 470-50 as a debt extinguishment, which resulted in a penalty expense of $181,959 and $260,708 for the three months and nine months ended September 30, 2022, respectively, in addition the value of the warrant issued on the debt extension from August 16, 2022 to November 16, 2022, resulted in an additional penalty expense of $119,091 for the three and nine months ended September 30, 2022. | ||||||||
Conversion price (in Dollars per share) | $ 0.23 | ||||||||
Interest rate | 10% | ||||||||
Accrued interest and penalty interest | $ 1,105,401 | ||||||||
Bellridge Capital LP. [Member] | |||||||||
Convertible Notes Payable (Textual) | |||||||||
Net proceeds | $ 787,500 | ||||||||
Senior secured convertible note | 900,000 | ||||||||
Original issue discount | $ 112,500 | ||||||||
Warrant exercisable (in Shares) | 3,913,044 | ||||||||
Exercise price per share (in Dollars per share) | $ 0.24 | ||||||||
Conversion price (in Dollars per share) | $ 0.23 | ||||||||
Interest rate | 10% | ||||||||
Aggregate principal amount | $ 1,235,313 | ||||||||
Common stock shares (in Shares) | 88,250 |
CONVERTIBLE NOTES PAYABLE (De_2
CONVERTIBLE NOTES PAYABLE (Details) - Schedule of convertible notes payable - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accrued Interest | $ 12,560 | |
Unamortized debt discount | $ 0 | $ (263,200) |
Cavalry Fund I LP [Member] | ||
Interest Rate | 28.70% | |
Maturity date | November 16, 2022 | |
Principal | $ 1,091,754 | |
Accrued Interest | 13,647 | |
Unamortized debt discount | ||
Convertible notes payable | $ 1,105,401 | 548,872 |
Mercer Street Global Opportunity Fund, LLC [Member] | ||
Interest Rate | 28.70% | |
Maturity date | November 16, 2022 | |
Principal | $ 1,091,754 | |
Accrued Interest | 13,647 | |
Unamortized debt discount | ||
Convertible notes payable | $ 1,105,401 | 548,872 |
Bellridge Capital LP., [Member] | ||
Interest Rate | 10% | |
Maturity date | February 16, 2022 | |
Principal | ||
Accrued Interest | ||
Unamortized debt discount | ||
Convertible notes payable | 863,609 | |
Total Convertible Notes Payable [Member] | ||
Principal | 2,183,508 | |
Accrued Interest | 27,294 | |
Unamortized debt discount | ||
Convertible notes payable | $ 2,210,802 | $ 1,961,353 |
DERIVATIVE LIABILITY (Details)
DERIVATIVE LIABILITY (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Aug. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | |
Derivative Liability (Textual) | |||
Shares of common stock (in Shares) | 3,000,000 | ||
Exercise price (in Dollars per share) | $ 0.15 | ||
Derivative financial liability | $ 238,182 | $ 710,389 | $ 710,389 |
Derivative liability credited | $ 84,895 | $ 65,046 |
DERIVATIVE LIABILITY (Details)
DERIVATIVE LIABILITY (Details) - Schedule of assumptions were used in the Black-Scholes valuation model - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Expected dividend rate | 0% | 0% |
Minimum [Member] | ||
Conversion price (in Dollars per share) | $ 0.05 | $ 0.05 |
Risk free interest rate | 0.79% | 0.05% |
Expected life of derivative liability | 1 year 6 months | 1 year 7 months 6 days |
Expected volatility of underlying stock | 120.49% | 161.19% |
Maximum [Member] | ||
Conversion price (in Dollars per share) | $ 0.15 | $ 0.24 |
Risk free interest rate | 4.25% | 1.12% |
Expected life of derivative liability | 59 months | 49 months 18 days |
Expected volatility of underlying stock | 258.30% | 215.33% |
DERIVATIVE LIABILITY (Details_2
DERIVATIVE LIABILITY (Details) - Schedule of movement in derivative liability - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Opening balance | $ 407,161 | $ 2,966,416 |
Derivative financial liability arising from convertible note and warrants | 238,182 | 2,569,000 |
Fair value adjustment to derivative liability | 65,046 | (5,128,255) |
Closing balance | $ 710,389 | $ 407,161 |
STOCKHOLDERS_ EQUITY (Details)
STOCKHOLDERS’ EQUITY (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 13, 2022 | Jul. 11, 2022 | Jul. 08, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Aug. 30, 2022 | Aug. 05, 2022 | Dec. 31, 2021 | Feb. 16, 2021 | |
Stockholders' Equity (Textual) | |||||||||||
Common stock, authorized (in Shares) | 750,000,000 | 750,000,000 | 500,000,000 | ||||||||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||
Common stock, shares issued (in Shares) | 376,901,679 | 376,901,679 | 367,901,679 | ||||||||
Common stock, shares outsatnding (in Shares) | 376,901,679 | 376,901,679 | 367,901,679 | ||||||||
Issued shares (in Shares) | 2,000,000 | ||||||||||
Value of grant date | $ 110,000 | $ 84,000 | |||||||||
Agreement fee | $ 3,000 | ||||||||||
Grant value | $ 165,000 | ||||||||||
Expense | $ 172,766 | $ 44,165 | $ 298,298 | $ 188,448 | |||||||
Preferred stock, authorized (in Shares) | 25,000,000 | 25,000,000 | 25,000,000 | ||||||||
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||
Description of compensation service | As compensation for the services provided under the Endorsement Agreement, Lopez or their designees are entitled to the following payments: (i) a cash endorsement fee of Three Hundred Thousand U.S. Dollars ($300,000 USD), payable as follows: (i) One Hundred Twenty-Five Thousand Dollars ($125,000) upon execution of the Endorsement Agreement, (ii) One Hundred Twenty-Five Thousand Dollars ($125,000) quarterly during the Term, beginning on the 90th day following the Effective Date, and (iii) Fifty Thousand Dollars ($50,000) on or prior to the first anniversary of the Effective Date and (ii) warrants exercisable for an aggregate of Fifteen Million (15,000,000) shares of the Common Stock at an exercise price of $0.0345 per share. | ||||||||||
Warrant exercisable (in Shares) | 3,000,000 | ||||||||||
Exercise price per share (in Dollars per share) | $ 0.15 | $ 0.24 | |||||||||
Warrants outstanding an intrinsic value | $ 0 | $ 0 | $ 0 | ||||||||
Incentive stock options (in Shares) | 58,304,105 | 58,304,105 | |||||||||
Amount of immediate expense | $ 31,970 | $ 31,970 | |||||||||
Description of granted options exercisable | On September 13, 2022, the Company granted ten-year options exercisable for 200,000 shares of Common Stock, with immediate vesting, to each of its four non-executive directors, totaling options exercisable for 800,000 shares of Common Stock at an exercise price of $0.04 per share. | ||||||||||
Intrinsic value outstanding options | 0 | 0 | $ 0 | ||||||||
Option expense | $ 950,290 | $ 1,196,566 | $ 1,139,220 | $ 1,288,174 | |||||||
Common Stock [Member] | |||||||||||
Stockholders' Equity (Textual) | |||||||||||
Issued shares (in Shares) | 2,000,000 | ||||||||||
Value of grant date | $ 84,000 | ||||||||||
Maximum [Member] | Common Stock [Member] | |||||||||||
Stockholders' Equity (Textual) | |||||||||||
Shares of Common Stock (in Shares) | 100,000 | 100,000 | |||||||||
Chief Executive Officer [Member] | |||||||||||
Stockholders' Equity (Textual) | |||||||||||
Incentive stock options (in Shares) | 15,000,000 | ||||||||||
Stock option exercise price (in Dollars per share) | $ 0.15 | ||||||||||
Amount of immediate expense | $ 823,854 | $ 823,854 | |||||||||
2021 Stock Incentive Plan [Member] | Maximum [Member] | |||||||||||
Stockholders' Equity (Textual) | |||||||||||
Shares of Common Stock (in Shares) | 53,000,000 | 53,000,000 | |||||||||
2018 Stock Incentive Plan [Member] | |||||||||||
Stockholders' Equity (Textual) | |||||||||||
Terminates period | 10 years | ||||||||||
2018 Stock Incentive Plan [Member] | Maximum [Member] | |||||||||||
Stockholders' Equity (Textual) | |||||||||||
Shares of Common Stock (in Shares) | 800,000 | 800,000 | |||||||||
2021 Stock Incentive Plan [Member] | |||||||||||
Stockholders' Equity (Textual) | |||||||||||
Terminates period | 10 years | ||||||||||
Richard Rosenblum [Member] | |||||||||||
Stockholders' Equity (Textual) | |||||||||||
Restricted shares (in Shares) | 2,000,000 | ||||||||||
Option expense | $ 27,879 | $ 83,636 | |||||||||
Samad Harake [Member] | |||||||||||
Stockholders' Equity (Textual) | |||||||||||
Issued shares (in Shares) | 3,000,000 |
STOCKHOLDERS_ EQUITY (Details)
STOCKHOLDERS’ EQUITY (Details) - Schedule of restricted stock activity - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Total restricted shares [Member] | ||
STOCKHOLDERS’ EQUITY (Details) - Schedule of restricted stock activity [Line Items] | ||
Total restricted shares, Outstanding at beginning (in Shares) | 21,495,000 | 20,495,000 |
Total restricted shares, Outstanding at ending (in Shares) | 23,495,000 | 21,495,000 |
Total restricted shares, Granted and issued (in Shares) | 2,000,000 | 2,500,000 |
Total restricted shares, Forfeited/Cancelled (in Shares) | (1,500,000) | |
Total restricted shares, Vested (in Shares) | ||
Weighted average fair market value per share [Member] | ||
STOCKHOLDERS’ EQUITY (Details) - Schedule of restricted stock activity [Line Items] | ||
Weighted average fair market value per share, Outstanding at beginning | $ 0.049 | $ 0.049 |
Weighted average fair market value per share, Outstanding at ending | 0.05 | 0.049 |
Weighted average fair market value per share, Granted and issued | 0.055 | 0.05 |
Weighted average fair market value per share, Forfeited/Cancelled | (0.05) | |
Weighted average fair market value per share, Vested | ||
Total unvested restricted shares [Member] | ||
STOCKHOLDERS’ EQUITY (Details) - Schedule of restricted stock activity [Line Items] | ||
Total unvested restricted shares, Outstanding at beginning (in Shares) | 10,247,500 | 15,371,250 |
Total unvested restricted shares, Outstanding at ending (in Shares) | 5,123,750 | 10,247,500 |
Total unvested restricted shares, Granted and issued (in Shares) | 2,500,000 | |
Total unvested restricted shares, Forfeited/Cancelled (in Shares) | (1,500,000) | |
Total unvested restricted shares, Vested (in Shares) | (5,123,750) | (6,123,750) |
Unvested restricted Weighted average fair market value per share [Member] | ||
STOCKHOLDERS’ EQUITY (Details) - Schedule of restricted stock activity [Line Items] | ||
Weighted average fair market value per share, Outstanding at beginning | $ 0.049 | $ 0.049 |
Weighted average fair market value per share, Outstanding at ending | 0.049 | 0.049 |
Weighted average fair market value per share, Granted and issued | 0.05 | |
Weighted average fair market value per share, Forfeited/Cancelled | (0.05) | |
Weighted average fair market value per share, Vested | (0.049) | (0.049) |
Total vested restricted shares [Member] | ||
STOCKHOLDERS’ EQUITY (Details) - Schedule of restricted stock activity [Line Items] | ||
Total vested restricted shares, Outstanding at beginning | 11,247,500 | 5,123,750 |
Total vested restricted shares, Outstanding at ending | 18,371,250 | 11,247,500 |
Total vested restricted shares, Granted and issued | 2,000,000 | |
Total vested restricted shares, Forfeited/Cancelled | ||
Total vested restricted shares, Vested | 5,123,750 | 6,123,750 |
Vested restricted Weighted average fair market value per share [Member] | ||
STOCKHOLDERS’ EQUITY (Details) - Schedule of restricted stock activity [Line Items] | ||
Weighted average fair market value per share, Outstanding at beginning | 0.049 | 0.049 |
Weighted average fair market value per share, Outstanding at ending | 0.05 | 0.049 |
Weighted average fair market value per share, Granted and issued | 0.055 | |
Weighted average fair market value per share, Forfeited/Cancelled | ||
Weighted average fair market value per share, Vested | $ 0.049 | $ 0.049 |
STOCKHOLDERS_ EQUITY (Details_2
STOCKHOLDERS’ EQUITY (Details) - Schedule of restricted stock granted and exercisable | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Restricted stock granted, number granted (in Shares) | shares | 23,495,000 |
Restricted stock granted, weighted average fair value per share | $ 0.05 |
Restricted stock vested, number vested (in Shares) | shares | 18,371,250 |
Restricted stock vested, weighted average fair value per share | $ 0.05 |
Grant date Price 0.049 [Member] | |
Restricted stock granted, grant date price | $ 0.049 |
Restricted stock granted, number granted (in Shares) | shares | 20,495,000 |
Restricted stock granted, weighted average fair value per share | $ 0.049 |
Restricted stock vested, number vested (in Shares) | shares | 15,371,250 |
Restricted stock vested, weighted average fair value per share | $ 0.049 |
Grant date Price 0.050 [Member] | |
Restricted stock granted, grant date price | $ 0.05 |
Restricted stock granted, number granted (in Shares) | shares | 1,000,000 |
Restricted stock granted, weighted average fair value per share | $ 0.05 |
Restricted stock vested, number vested (in Shares) | shares | 1,000,000 |
Restricted stock vested, weighted average fair value per share | $ 0.05 |
Grant date Price 0.055 [Member] | |
Restricted stock granted, grant date price | $ 0.055 |
Restricted stock granted, number granted (in Shares) | shares | 2,000,000 |
Restricted stock granted, weighted average fair value per share | $ 0.055 |
Restricted stock vested, number vested (in Shares) | shares | 2,000,000 |
Restricted stock vested, weighted average fair value per share | $ 0.055 |
STOCKHOLDERS_ EQUITY (Details_3
STOCKHOLDERS’ EQUITY (Details) - Schedule of fair value of the warrants and options granted and issued Black Scholes valuation model | 9 Months Ended |
Sep. 30, 2022 $ / shares | |
Warrants [Member] | |
STOCKHOLDERS’ EQUITY (Details) - Schedule of fair value of the warrants and options granted and issued Black Scholes valuation model [Line Items] | |
Expected dividend rate | 0% |
Warrants [Member] | Minimum [Member] | |
STOCKHOLDERS’ EQUITY (Details) - Schedule of fair value of the warrants and options granted and issued Black Scholes valuation model [Line Items] | |
Exercise price (in Dollars per share) | $ 0.0345 |
Risk free interest rate | 3.14% |
Expected life | 3 years |
Expected volatility of underlying stock | 189.10% |
Warrants [Member] | Maximum [Member] | |
STOCKHOLDERS’ EQUITY (Details) - Schedule of fair value of the warrants and options granted and issued Black Scholes valuation model [Line Items] | |
Exercise price (in Dollars per share) | $ 0.15 |
Risk free interest rate | 3.27% |
Expected life | 5 years |
Expected volatility of underlying stock | 199.20% |
Options [Member] | |
STOCKHOLDERS’ EQUITY (Details) - Schedule of fair value of the warrants and options granted and issued Black Scholes valuation model [Line Items] | |
Expected life | 10 years |
Expected dividend rate | 0% |
Options [Member] | Minimum [Member] | |
STOCKHOLDERS’ EQUITY (Details) - Schedule of fair value of the warrants and options granted and issued Black Scholes valuation model [Line Items] | |
Exercise price (in Dollars per share) | $ 0.04 |
Risk free interest rate | 2.99% |
Expected volatility of underlying stock | 206.40% |
Options [Member] | Maximum [Member] | |
STOCKHOLDERS’ EQUITY (Details) - Schedule of fair value of the warrants and options granted and issued Black Scholes valuation model [Line Items] | |
Exercise price (in Dollars per share) | $ 0.15 |
Risk free interest rate | 3.42% |
Expected volatility of underlying stock | 208.40% |
STOCKHOLDERS_ EQUITY (Details_4
STOCKHOLDERS’ EQUITY (Details) - Schedule of warrant activity - Warrant [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Shares Underlying Warrants, Outstanding at beginning (in Shares) | 37,304,105 | 51,188,572 |
Exercise price per share, Outstanding at beginning | $ 0.05 | |
Weighted average exercise price, Outstanding at beginning | $ 0.12 | $ 0.05 |
Shares Underlying Warrants, Outstanding at ending (in Shares) | 58,304,105 | 37,304,105 |
Weighted average exercise price, Outstanding at ending | $ 0.11 | $ 0.12 |
Shares Underlying Warrants, Granted (in Shares) | 21,000,000 | 66,302,515 |
Exercise price per share, Granted | ||
Weighted average exercise price, Granted | $ 0.07 | $ 0.16 |
Shares Underlying Warrants, Forfeited/Cancelled (in Shares) | (20,000,000) | |
Exercise price per share, Forfeited/Cancelled | $ 0.24 | |
Weighted average exercise price, Forfeited/Cancelled | $ 0.24 | |
Shares Underlying Warrants, Exercised (in Shares) | (60,186,982) | |
Exercise price per share, Exercised | $ 0.05 | |
Weighted average exercise price, Exercised | 0.05 | |
Minimum [Member] | ||
Exercise price per share, Outstanding at beginning | 0.05 | |
Exercise price per share, Outstanding at ending | 0.05 | 0.05 |
Exercise price per share, Granted | 0.0345 | 0.05 |
Maximum [Member] | ||
Exercise price per share, Outstanding at beginning | 0.1875 | |
Exercise price per share, Outstanding at ending | 0.1875 | 0.1875 |
Exercise price per share, Granted | $ 0.15 | $ 0.24 |
STOCKHOLDERS_ EQUITY (Details_5
STOCKHOLDERS’ EQUITY (Details) - Schedule of warrants outstanding and exercisable | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Warrants Outstanding, Number Outstanding | 58,304,105 |
Warrants Outstanding, Weighted Average Remaining Contractual life in years | 3 years 4 months 2 days |
Warrants Outstanding, Weighted Average Exercise Price | $ / shares | $ 0.11 |
Warrants Exercisable, Number Exercisable | 51,741,605 |
Warrants Exercisable ,Weighted Average Exercise Price | $ / shares | $ 0.11 |
Warrants Exercisable, Weighted Average Remaining Contractual life in years | 3 years 5 months 1 day |
Exercise Price 0.0345 [Member] | |
Warrants Outstanding, Exercise Price | $ / shares | $ 0.0345 |
Warrants Outstanding, Number Outstanding | 15,000,000 |
Warrants Outstanding, Weighted Average Remaining Contractual life in years | 2 years 9 months 7 days |
Warrants Exercisable, Number Exercisable | 8,437,500 |
Warrants Exercisable, Weighted Average Remaining Contractual life in years | 2 years 9 months 7 days |
Exercise Price 0.05 [Member] | |
Warrants Outstanding, Exercise Price | $ / shares | $ 0.05 |
Warrants Outstanding, Number Outstanding | 10,823,813 |
Warrants Outstanding, Weighted Average Remaining Contractual life in years | 3 years 10 days |
Warrants Exercisable, Number Exercisable | 10,823,813 |
Warrants Exercisable, Weighted Average Remaining Contractual life in years | 3 years 10 days |
Exercise Price 0.15 [Member] | |
Warrants Outstanding, Exercise Price | $ / shares | $ 0.15 |
Warrants Outstanding, Number Outstanding | 30,053,625 |
Warrants Outstanding, Weighted Average Remaining Contractual life in years | 3 years 8 months 23 days |
Warrants Exercisable, Number Exercisable | 30,053,625 |
Warrants Exercisable, Weighted Average Remaining Contractual life in years | 3 years 8 months 23 days |
Exercise Price 0.1875 [Member] | |
Warrants Outstanding, Exercise Price | $ / shares | $ 0.1875 |
Warrants Outstanding, Number Outstanding | 2,426,667 |
Warrants Outstanding, Weighted Average Remaining Contractual life in years | 3 years 5 months 15 days |
Warrants Exercisable, Number Exercisable | 2,426,667 |
Warrants Exercisable, Weighted Average Remaining Contractual life in years | 3 years 5 months 15 days |
STOCKHOLDERS_ EQUITY (Details_6
STOCKHOLDERS’ EQUITY (Details) - Schedule of option activity - Stock Options [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Shares Underlying options, Outstanding at beginning (in Shares) | 30,516,666 | 100,000 |
Exercise price per share, Outstanding at beginning | $ 0.4 | |
Weighted average exercise price, Outstanding at beginning | $ 0.15 | $ 0.4 |
Shares Underlying options, Outstanding at ending (in Shares) | 46,316,666 | 30,516,666 |
Weighted average exercise price, Outstanding at ending | $ 0.15 | $ 0.15 |
Shares Underlying options, Granted (in Shares) | 15,800,000 | 30,416,666 |
Exercise price per share, Granted | ||
Weighted average exercise price, Granted | $ 0.14 | $ 0.15 |
Shares Underlying options, Forfeited/Cancelled (in Shares) | ||
Exercise price per share, Forfeited/Cancelled | ||
Weighted average exercise price, Forfeited/Cancelled | ||
Shares Underlying options, Exercised (in Shares) | ||
Exercise price per share, Exercised | ||
Weighted average exercise price, Exercised | ||
Minimum [Member] | ||
Exercise price per share, Outstanding at beginning | 0.15 | |
Exercise price per share, Outstanding at ending | 0.04 | 0.15 |
Exercise price per share, Granted | 0.04 | 0.15 |
Maximum [Member] | ||
Exercise price per share, Outstanding at beginning | 0.4 | |
Exercise price per share, Outstanding at ending | 0.4 | 0.4 |
Exercise price per share, Granted | $ 0.15 | $ 0.24 |
STOCKHOLDERS_ EQUITY (Details_7
STOCKHOLDERS’ EQUITY (Details) - Schedule of options outstanding and exercisable | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Options Outstanding, Number Outstanding | 46,316,666 |
Options Outstanding, Weighted Average Remaining Contractual life in years | 9 years 2 months 8 days |
Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 0.15 |
Options Exercisable, Number Exercisable | 36,733,333 |
Options Exercisable ,Weighted Average Exercise Price | $ / shares | $ 0.15 |
Options Exercisable, Weighted Average Remaining Contractual life in years | 9 years 3 months 7 days |
Exercise Price 0.04 [Member] | |
Options Outstanding, Exercise Price | $ / shares | $ 0.04 |
Options Outstanding, Number Outstanding | 800,000 |
Options Outstanding, Weighted Average Remaining Contractual life in years | 9 years 11 months 15 days |
Options Exercisable, Number Exercisable | 800,000 |
Options Exercisable, Weighted Average Remaining Contractual life in years | 9 years 11 months 15 days |
Exercise Price 0.15 [Member] | |
Options Outstanding, Exercise Price | $ / shares | $ 0.15 |
Options Outstanding, Number Outstanding | 45,208,333 |
Options Outstanding, Weighted Average Remaining Contractual life in years | 9 years 2 months 8 days |
Options Exercisable, Number Exercisable | 35,625,000 |
Options Exercisable, Weighted Average Remaining Contractual life in years | 9 years 3 months 7 days |
Exercise Price 0.24 [Member] | |
Options Outstanding, Exercise Price | $ / shares | $ 0.24 |
Options Outstanding, Number Outstanding | 208,333 |
Options Outstanding, Weighted Average Remaining Contractual life in years | 8 years 4 months 24 days |
Options Exercisable, Number Exercisable | 208,333 |
Options Exercisable, Weighted Average Remaining Contractual life in years | 8 years 4 months 24 days |
Exercise Price 0.40 [Member] | |
Options Outstanding, Exercise Price | $ / shares | $ 0.4 |
Options Outstanding, Number Outstanding | 100,000 |
Options Outstanding, Weighted Average Remaining Contractual life in years | 6 years 3 months |
Options Exercisable, Number Exercisable | 100,000 |
Options Exercisable, Weighted Average Remaining Contractual life in years | 6 years 3 months |
NET LOSS PER SHARE (Details) -
NET LOSS PER SHARE (Details) - Schedule of dilutive shares - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Anti-dilutive shares | 119,359,453 | 81,447,436 | 119,359,453 | 81,447,436 |
Convertible debt [Member] | ||||
Anti-dilutive shares | 14,738,682 | 13,626,666 | 14,738,682 | 13,626,666 |
Stock options [Member] | ||||
Anti-dilutive shares | 46,316,666 | 30,516,666 | 46,316,666 | 30,516,666 |
Warrants to purchase shares of common stock [Member] | ||||
Anti-dilutive shares | 58,304,105 | 37,304,104 | 58,304,105 | 37,304,104 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 13, 2022 | Jul. 11, 2022 | Aug. 31, 2021 | Aug. 16, 2021 | Jul. 27, 2021 | Jul. 22, 2021 | Feb. 22, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Related Party Transactions (Textual) | ||||||||||||
Shares of common stock (in Shares) | 208,333 | |||||||||||
Option expense | $ 950,290 | $ 1,196,566 | $ 1,139,220 | $ 1,288,174 | ||||||||
Exercise price (in Dollars per share) | $ 0.24 | |||||||||||
Salary rate | 100% | |||||||||||
James Fuller [Member] | ||||||||||||
Related Party Transactions (Textual) | ||||||||||||
Shares of common stock (in Shares) | 200,000 | 2,000,000 | 208,333 | |||||||||
Exercise price (in Dollars per share) | $ 0.04 | $ 0.24 | ||||||||||
Common stock, value | $ 154,000 | |||||||||||
Option expense | 7,993 | $ 7,993 | ||||||||||
James Fuller [Member] | Maximum [Member] | ||||||||||||
Related Party Transactions (Textual) | ||||||||||||
Common stock, per share (in Dollars per share) | 0.24 | |||||||||||
James Fuller [Member] | Minimum [Member] | ||||||||||||
Related Party Transactions (Textual) | ||||||||||||
Common stock, per share (in Dollars per share) | $ 0.15 | |||||||||||
Andrey Novikov [Member] | ||||||||||||
Related Party Transactions (Textual) | ||||||||||||
Shares of common stock (in Shares) | 208,333 | |||||||||||
William Corbett [Member] | ||||||||||||
Related Party Transactions (Textual) | ||||||||||||
Shares of common stock (in Shares) | 15,000,000 | 20,000,000 | ||||||||||
Exercise price (in Dollars per share) | $ 0.15 | $ 0.24 | ||||||||||
Option expense | 890,442 | 1,023,614 | ||||||||||
Salary amount | $ 30,000 | $ 30,000 | ||||||||||
Warrant expense | $4,327,899 | |||||||||||
Related party transactions, description | the August 2021 Corbett Employment Agreement provides that: (1) Mr. Corbett will be eligible for a cash bonus as determined by the Board to the extent the Company achieves (or exceeds) annual revenue or other financial performance objectives established by the Board, in its sole discretion, from time to time; (2) the Company will grant to Mr. Corbett options to purchase 20,000,000 shares of Common Stock at a per share exercise price of $0.15; and (3) a car allowance for Mr. Corbett in the amount of $800 per month. Fifty percent (50%) of the shares subject to the options shall vest on the grant date and the other 50% of the shares subject to the option shall vest at the rate of 1/36 per month over a three-year period. The options will be exercisable for a period of ten years after the date of grant and the Company shall provide for cashless exercise of the option. The options are being granted pursuant to the Company’s 2021 Stock Incentive Plan which was approved by the Board in August 2021, subject to approval of the 2021 Plan by the shareholders, which approval was obtained at the annual general meeting held on October 22, 2021. | |||||||||||
Clifford Henry [Member] | ||||||||||||
Related Party Transactions (Textual) | ||||||||||||
Shares of common stock (in Shares) | 200,000 | 2,000,000 | ||||||||||
Exercise price (in Dollars per share) | $ 0.04 | |||||||||||
Common stock, value | $ 7,993 | $ 154,000 | ||||||||||
Option expense | 7,993 | 7,993 | ||||||||||
Financial and capital markets advice | 3,500 | |||||||||||
Madisson Corbett [Member] | ||||||||||||
Related Party Transactions (Textual) | ||||||||||||
Shares of common stock (in Shares) | 200,000 | 2,000,000 | ||||||||||
Exercise price (in Dollars per share) | $ 0.04 | |||||||||||
Common stock, value | $ 7,993 | $ 154,000 | ||||||||||
Option expense | 7,993 | 7,993 | ||||||||||
David Rios [Member] | ||||||||||||
Related Party Transactions (Textual) | ||||||||||||
Shares of common stock (in Shares) | 200,000 | 1,000,000 | ||||||||||
Exercise price (in Dollars per share) | $ 0.04 | |||||||||||
Common stock, value | $ 7,993 | $ 77,000 | ||||||||||
Option expense | 7,993 | 7,993 | ||||||||||
Vesting term | 10 years | |||||||||||
Mr. Rosenblum [Member] | ||||||||||||
Related Party Transactions (Textual) | ||||||||||||
Shares of common stock (in Shares) | 2,000,000 | 10,000,000 | ||||||||||
Exercise price (in Dollars per share) | $ 0.15 | |||||||||||
Common stock, value | $ 110,000 | |||||||||||
Option expense | $ 27,879 | $ 83,636 | ||||||||||
Employment agreement, description | The term of the Employment Agreement is until December 31, 2024. Mr. Rosenblum’s base salary will be $18,000 per month. In addition, the Employment Agreement provides that: (1) Mr. Rosenblum will be eligible for a cash bonus as determined by the Board to the extent the Company achieves (or exceeds) annual revenue or other financial performance objectives established by the Board, in its sole discretion, from time to time; and (2) the Company will grant to Mr. Rosenblum options to purchase 10,000,000 shares of Common Stock at a per share exercise price equal to the fair market value of the Common Stock, as reflected in the closing price of the Common Stock on the OTC exchange or, in the event the stock is up listed, on a national stock exchange, on the date of grant (the “Options”)”. Fifty percent (50%) of the shares subject to the Options shall vest on the grant date and the other 50% of the shares subject to the Option shall vest at the rate of 1/36 per month over a three-year period. The Options will be exercisable for a period of ten (10) years after the date of grant and the Company shall provide for cashless exercise of the Option by Executive. | |||||||||||
Salary rate | 50% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Annual meeting of stockholders description | At the Annual Meeting, the Company’s stockholders (i) elected each of William D. Corbett, Richard Rosenblum, Madisson Corbett, Clifford Henry and David Rios as directors’ of the Company until the next annual meeting or until their successors shall be elected and qualified, (ii) ratified the appointment of RBSM LLP as the Company’s independent registered public accounting firm for fiscal year ended December 31, 2022, (iii) approved an amendment to the Company’s Articles of Incorporation to effect a reverse stock split of the issued and outstanding shares of common stock at a ratio (to be determined in the discretion of the Company’s Board during a two year period ending on November 2, 2024) within a range of one (1) share of Common Stock for every two (2) to thirty (30) shares of Common Stock, and (iv) approved a potential adjournment of the annual meeting, |